[Rev. 2/6/2019 4:17:59 PM]
κ2003 Statutes of Nevada, Page 3193κ
Senate Bill No. 449Committee on Government Affairs
CHAPTER 486
AN ACT relating to elections; requiring advisory questions to be specifically identified as such on the ballot and sample ballot; setting forth the order in which advisory questions must be listed on a ballot; restricting the entities that may submit an advisory question for appearance on a ballot for a general election or general city election; requiring that advisory questions be accompanied by a fiscal note if the particular advisory question pertains to certain topics relating to bonds, taxes, fees and expenses; setting forth the required contents of a fiscal note; requiring the Committee on Local Government Finance to prepare certain sample advisory ballot questions to demonstrate the preparation of required fiscal notes; and providing other matters properly relating thereto.
[Approved: June 11, 2003]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 293.268 is hereby amended to read as follows:
293.268 The offices for which there are candidates, the names of the candidates therefor, and the questions to be voted upon must be printed on ballots in the following order:
1. President and Vice President of the United States.
2. United States Senator and Representative in Congress, in that sequence.
3. Governor, Lieutenant Governor, Secretary of State, Treasurer, Controller and Attorney General, in that sequence.
4. State senators and assemblymen.
5. County and township partisan offices.
6. Statewide nonpartisan offices.
7. District nonpartisan offices.
8. County nonpartisan offices.
9. City offices:
(a) Mayor;
(b) Councilmen according to ward in numerical order, if no wards, in alphabetical order; and
(c) Municipal judges.
10. Township nonpartisan offices.
11. Questions presented to the voters of the State [.] with advisory questions listed in consecutive order after any other questions presented to the voters of the State.
12. Questions presented only to the voters of a special district or political subdivision of the State [.] with advisory questions listed in consecutive order after any other questions presented only to the voters of a special district or political subdivision of the State.
Sec. 2. NRS 293.481 is hereby amended to read as follows:
293.481 1. Except as otherwise provided in subsection 2 or NRS 295.121 or 295.217, every governing body of a political subdivision, public or quasi-public corporation, or other local agency authorized by law to submit questions to the qualified electors or registered voters of a designated territory, when the governing body decides to submit a question:
κ2003 Statutes of Nevada, Page 3194 (CHAPTER 486, SB 449)κ
or quasi-public corporation, or other local agency authorized by law to submit questions to the qualified electors or registered voters of a designated territory, when the governing body decides to submit a question:
(a) At a general election, shall provide [a copy of the question, including an explanation of and arguments for and against the question,] to each county clerk within the designated territory on or before the third Monday in July preceding the election [.] :
(1) A copy of the question, including an explanation of the question;
(2) Arguments for and against the question; and
(3) If the question is an advisory question that proposes a bond, tax, fee or expense, a fiscal note prepared by the governing body in accordance with subsection 4 of NRS 293.482.
(b) At a primary election, shall provide [a copy of the question, including an explanation of and arguments for and against the question,] to each county clerk within the designated territory on or before the third Monday in May preceding the election [.] :
(1) A copy of the question, including an explanation of the question;
(2) Arguments for and against the question; and
(3) If the question is an advisory question that proposes a bond, tax, fee or expense, a fiscal note prepared by the governing body in accordance with subsection 4 of NRS 293.482.
(c) At any election other than a primary or general election at which the county clerk gives notice of the election or otherwise performs duties in connection therewith other than the registration of electors and the making of records of registered voters available for the election, shall provide [a copy of the question, including an explanation of and arguments for and against the question,] to each county clerk at least 60 days before the election [.] :
(1) A copy of the question, including an explanation of the question;
(2) Arguments for and against the question; and
(3) If the question is an advisory question that proposes a bond, tax, fee or expense, a fiscal note prepared by the governing body in accordance with subsection 4 of NRS 293.482.
(d) At any city election at which the city clerk gives notice of the election or otherwise performs duties in connection therewith, shall provide [a copy of the question, including an explanation of and arguments for and against the question,] to the city clerk at least 60 days before the election [.] :
(1) A copy of the question, including an explanation of the question;
(2) Arguments for and against the question; and
(3) If the question is an advisory question that proposes a bond, tax, fee or expense, a fiscal note prepared by the governing body in accordance with subsection 4 of NRS 293.482.
2. A question may be submitted after the dates specified in subsection 1 if the question is expressly privileged or required to be submitted pursuant to the provisions of Article 19 of the Constitution of the State of Nevada, or pursuant to the provisions of chapter 295 of NRS or any other statute except NRS 293.482, 354.59817, 354.5982, 387.3285 or 387.3287 or any statute that authorizes the governing body to issue bonds upon the approval of the voters.
κ2003 Statutes of Nevada, Page 3195 (CHAPTER 486, SB 449)κ
3. A county or city clerk may charge any political subdivision, public or quasi-public corporation or other local agency which submits a question a reasonable fee sufficient to pay for the increased costs incurred in including the question, explanation , [and] arguments and fiscal note on the ballot.
Sec. 3. NRS 293.482 is hereby amended to read as follows:
293.482 1. The governing body of [any] a county or city may, at any general election or general city election, ask the advice of the registered voters within its jurisdiction on any question which it has under consideration . [by adopting] No other political subdivision, public or quasi-public corporation or other local agency may ask the advice of the registered voters within its jurisdiction on any question which it has under consideration.
2. To place an advisory question on the ballot at a general election or general city election, the governing body of a county or city must:
(a) Adopt a resolution [which:
(a) Except as otherwise provided in NRS 295.121 and 295.217, sets forth the advisory question, including an] that:
(1) Sets forth:
(I) The question, in language indicating clearly that the question is advisory only;
(II) An explanation of [and arguments] the question;
(III) Except as otherwise provided in NRS 295.121 and 295.217, arguments for and against the question [, to be submitted to the voters; and
(b)] ; and
(IV) If the question is an advisory question that proposes a bond, tax, fee or expense, a fiscal note prepared by the governing body in accordance with subsection 4; and
(2) States that the result of the voting on the question does not place any legal requirement on the governing body , any member of the governing body or any officer of the political subdivision [.
2.] ; and
(b) Comply with the requirements of paragraph (a) or (d) of subsection 1 of NRS 293.481.
3. A governing body may, at any general election, ask the advice of the registered voters of part of its territory if:
(a) The advisory question to be submitted affects only that part of its territory; and
(b) The resolution adopted pursuant to subsection [1] 2 sets forth the boundaries of the area in which the advice of the registered voters will be asked.
4. With respect to a fiscal note that is required in connection with an advisory question:
(a) If, in the advisory question, the governing body seeks advice on whether bonds should be issued, the fiscal note must include any information that is required by law to be included on the sample ballot pursuant to the provisions of law that govern the procedure for issuance of the applicable type of bond.
(b) If, in the advisory question, the governing body seeks advice on whether a limitation upon revenue from taxes ad valorem should be exceeded, the fiscal note must include any information that is required by law to be included on the sample ballot pursuant to the provisions of law that govern the procedure for exceeding that limitation.
κ2003 Statutes of Nevada, Page 3196 (CHAPTER 486, SB 449)κ
(c) If, in the advisory question, the governing body seeks advice on whether a tax other than a property tax described in paragraph (b) should be levied, the fiscal note must:
(1) Identify the average annual cost that is expected to be incurred by the affected taxpayers if the tax were to be levied;
(2) Specify the period over which the tax is proposed to be levied;
(3) Disclose whether, in connection with the levy of the tax, revenue bonds are to be sold which will be backed by the full faith and credit of the assessed value of the applicable local government; and
(4) If applicable, specify whether, in connection with or following the levy of the tax, additional expenses are expected to be incurred to pay for the operation or maintenance of any program or service to be provided from the proceeds of the tax or to pay for the operation or maintenance of any building, equipment, facility, machinery, property, structure, vehicle or other thing of value to be purchased, improved or repaired with the proceeds of the tax.
(d) If, in the advisory question, the governing body seeks advice on whether a fee should be imposed, the fiscal note must:
(1) Identify the average annual cost that is expected to be incurred by the affected users if the fee were to be imposed;
(2) Specify the period over which the fee is proposed to be imposed; and
(3) If applicable, specify whether, in connection with or following the imposition of the fee, additional expenses are expected to be incurred to pay for the program or service to be provided from the proceeds of the fee or to pay for the operation or maintenance of any building, equipment, facility, machinery, property, structure, vehicle or other thing of value to be purchased, improved or repaired with the proceeds of the fee.
(e) If, in the advisory question, the governing body seeks advice on whether the applicable local government should incur an expense, the fiscal note must:
(1) Identify the source of revenue that will be used to pay the expense;
(2) Disclose whether it is expected that the incurring of the expense will require the levy or imposition of a new tax or fee or the increase of an existing tax or fee; and
(3) If a tax or fee is proposed to be levied or imposed or increased to pay the expense, contain the information required pursuant to paragraph (c) or (d), as applicable.
5. On the sample ballot for the general election or general city election, each advisory question must appear:
(a) With a title in substantially the following form: Advisory Ballot Question No. ....; and
(b) With its explanation, arguments and, if required, fiscal note.
6. The Committee on Local Government Finance shall prepare sample advisory ballot questions to demonstrate, for each situation enumerated in paragraphs (a) to (e), inclusive, of subsection 4, examples of the manner in which fiscal notes should be prepared.
Sec. 4. NRS 293.565 is hereby amended to read as follows:
293.565 1. Except as otherwise provided in subsection 2, sample ballots must include:
κ2003 Statutes of Nevada, Page 3197 (CHAPTER 486, SB 449)κ
(a) The fiscal note, as provided pursuant to NRS 218.443 , [or] 293.250, 293.481 or 293.482, for each proposed constitutional amendment [or statewide measure;] , statewide measure, measure to be voted upon only by a special district or political subdivision and advisory question;
(b) An explanation, as provided pursuant to NRS 218.443, 293.250, 293.481, 293.482 or 295.121, of each proposed constitutional amendment [or statewide measure,] , statewide measure, measure to be voted upon only by a special district or political subdivision and advisory question, including arguments for and against it; and
(c) The full text of each proposed constitutional amendment.
2. Sample ballots that are mailed to registered voters may be printed without the full text of each proposed constitutional amendment if:
(a) The cost of printing the sample ballots would be significantly reduced if the full text of each proposed constitutional amendment were not included;
(b) The county clerk ensures that a sample ballot that includes the full text of each proposed constitutional amendment is provided at no charge to each registered voter who requests such a sample ballot; and
(c) The sample ballots provided to each polling place include the full text of each proposed constitutional amendment.
3. At least 10 days before any election, the county clerk shall cause to be mailed to each registered voter in the county a sample ballot for his precinct with a notice informing the voter of the location of his polling place. If the location of the polling place has changed since the last election:
(a) The county clerk shall mail a notice of the change to each registered voter in the county not sooner than 10 days before mailing the sample ballots; or
(b) The sample ballot must also include a notice in bold type immediately above the location which states:
NOTICE: THE LOCATION OF YOUR POLLING PLACE
HAS CHANGED SINCE THE LAST ELECTION
4. Except as otherwise provided in subsection 5, a sample ballot required to be mailed pursuant to this section must:
(a) Be printed in at least 12-point type; and
(b) Include on the front page, in a separate box created by bold lines, a notice printed in at least 20-point bold type that states:
NOTICE: TO RECEIVE A SAMPLE BALLOT IN
LARGE TYPE, CALL (Insert appropriate telephone number)
5. A portion of a sample ballot that contains a facsimile of the display area of a voting device may include material in less than 12-point type to the extent necessary to make the facsimile fit on the pages of the sample ballot.
6. The sample ballot mailed to a person who requests a sample ballot in large type by exercising the option provided pursuant to NRS 293.508, or in any other manner, must be printed in at least 14-point type, or larger when practicable.
7. If a person requests a sample ballot in large type, the county clerk shall ensure that all future sample ballots mailed to that person from the county are in large type.
κ2003 Statutes of Nevada, Page 3198 (CHAPTER 486, SB 449)κ
8. The county clerk shall include in each sample ballot a statement indicating that the county clerk will, upon request of a voter who is elderly or disabled, make reasonable accommodations to allow the voter to vote at his polling place and provide reasonable assistance to the voter in casting his vote, including, without limitation, providing appropriate materials to assist the voter.
9. The cost of mailing sample ballots for any election other than a primary or general election must be borne by the political subdivision holding the election.
Sec. 5. NRS 293C.262 is hereby amended to read as follows:
293C.262 1. The offices for which there are candidates, the names of the candidates therefor and the questions to be voted upon must be printed on ballots for a city election in the following order:
(a) City offices:
(1) Mayor;
(2) Councilmen according to ward in numerical order, if no wards, in alphabetical order; and
(3) Municipal judges.
(b) Questions presented to the voters of a city or a portion of a city [.] with advisory questions listed in consecutive order after any other questions presented to the voters of the city.
2. The city clerk:
(a) May divide paper ballots into two sheets in a manner that provides a clear understanding and grouping of all measures and candidates.
(b) Shall prescribe the color or colors of the ballots and voting receipts used in any election which the clerk is required to conduct.
Sec. 6. NRS 293C.530 is hereby amended to read as follows:
293C.530 1. At least 10 days before an election, the city clerk shall cause to be mailed to each registered voter in the city a sample ballot for his precinct with a notice informing the voter of the location of his polling place. If the location of the polling place has changed since the last election:
(a) The city clerk shall mail a notice of the change to each registered voter in the city not sooner than 10 days before mailing the sample ballots; or
(b) The sample ballot must also include a notice in bold type immediately above the location which states:
NOTICE: THE LOCATION OF YOUR POLLING PLACE
HAS CHANGED SINCE THE LAST ELECTION
2. Except as otherwise provided in subsection 3, a sample ballot required to be mailed pursuant to this section must:
(a) Be printed in at least 12-point type; [and]
(b) Include the fiscal note and explanation, as required pursuant to NRS 293.481 or 293.482, of each citywide measure and advisory question, including arguments for and against it; and
(c) Include on the front page, in a separate box created by bold lines, a notice printed in at least 20-point bold type that states:
NOTICE: TO RECEIVE A SAMPLE BALLOT IN
LARGE TYPE, CALL (Insert appropriate telephone number)
κ2003 Statutes of Nevada, Page 3199 (CHAPTER 486, SB 449)κ
3. A portion of a sample ballot that contains a facsimile of the display area of a voting device may include material in less than 12-point type to the extent necessary to make the facsimile fit on the pages of the sample ballot.
4. The sample ballot mailed to a person who requests a sample ballot in large type by exercising the option provided pursuant to NRS 293.508, or in any other manner, must be printed in at least 14-point type, or larger when practicable.
5. If a person requests a sample ballot in large type, the city clerk shall ensure that all future sample ballots mailed to that person from the city are in large type.
6. The city clerk shall include in each sample ballot a statement indicating that the city clerk will, upon request of a voter who is elderly or disabled, make reasonable accommodations to allow the voter to vote at his polling place and provide reasonable assistance to the voter in casting his vote, including, without limitation, providing appropriate materials to assist the voter.
7. The cost of mailing sample ballots for a city election must be borne by the city holding the election.
Sec. 7. NRS 295.121 is hereby amended to read as follows:
295.121 1. In a county whose population is [100,000] 40,000 or more, for each initiative, referendum or other question to be placed on the ballot by the board or county clerk, including, without limitation, pursuant to NRS 293.482, 295.115 or 295.160, the board shall, in consultation with the county clerk pursuant to subsection 4, appoint two committees. Except as otherwise provided in subsection 2, one committee must be composed of three persons who favor approval by the voters of the initiative, referendum or other question and the other committee must be composed of three persons who oppose approval by the voters of the initiative, referendum or other question.
2. If, after consulting with the county clerk pursuant to subsection 4, the board is unable to appoint three persons who are willing to serve on a committee, the board may appoint fewer than three persons to that committee, but the board must appoint at least one person to each committee appointed pursuant to this section.
3. With respect to a committee appointed pursuant to this section:
(a) A person may not serve simultaneously on the committee that favors approval by the voters of an initiative, referendum or other question and the committee that opposes approval by the voters of that initiative, referendum or other question.
(b) Members of the committee serve without compensation.
(c) The term of office for each member commences upon appointment and expires upon the publication of the sample ballot containing the initiative, referendum or other question.
4. Before the board appoints a committee pursuant to this section, the county clerk shall:
(a) Recommend to the board persons to be appointed to the committee; and
(b) Consider recommending pursuant to paragraph (a):
(1) Any person who has expressed an interest in serving on the committee; and
(2) A person who is a member of an organization that has expressed an interest in having a member of the organization serve on the committee.
κ2003 Statutes of Nevada, Page 3200 (CHAPTER 486, SB 449)κ
5. If the board of a county whose population is [100,000] 40,000 or more fails to appoint a committee as required pursuant to this section, the county clerk shall appoint the committee.
6. A committee appointed pursuant to this section:
(a) Shall elect a chairman for the committee;
(b) Shall meet and conduct its affairs as necessary to fulfill the requirements of this section;
(c) May seek and consider comments from the general public;
(d) Shall [, based on whether the members were appointed to advocate or oppose approval by the voters of the initiative, referendum or other question,] prepare an argument either advocating or opposing approval by the voters of the initiative, referendum or other question [;] , based on whether the members were appointed to advocate or oppose approval by the voters of the initiative, referendum or other question;
(e) Shall prepare a rebuttal to the argument prepared by the other committee appointed pursuant to this section; and
(f) Shall submit the argument and rebuttal prepared pursuant to paragraphs (d) and (e) to the county clerk not later than the date prescribed by the county clerk pursuant to subsection 7.
7. The county clerk of a county whose population is [100,000] 40,000 or more shall provide, by rule or regulation:
(a) The maximum permissible length of an argument or rebuttal prepared pursuant to this section; and
(b) The date by which an argument or rebuttal prepared pursuant to this section must be submitted by the committee to the county clerk.
8. Upon receipt of an argument or rebuttal prepared pursuant to this section, the county clerk:
(a) May consult with persons who are generally recognized by a national or statewide organization as having expertise in the field or area to which the initiative, referendum or other question pertains; and
(b) Shall reject each statement in the argument or rebuttal that he believes is libelous or factually inaccurate.
Not later than 5 days after the county clerk rejects a statement pursuant to this subsection, the committee may appeal that rejection to the district attorney. The district attorney shall review the statement and the reasons for its rejection and may receive evidence, documentary or testimonial, to aid him in his decision. Not later than 3 business days after the appeal by the committee, the district attorney shall issue his decision rejecting or accepting the statement. The decision of the district attorney is a final decision for the purposes of judicial review.
9. The county clerk shall place in the sample ballot provided to the registered voters of the county each argument and rebuttal prepared pursuant to this section, containing all statements that were not rejected pursuant to subsection 8. The county clerk may revise the language submitted by the committee so that it is clear, concise and suitable for incorporation in the sample ballot, but shall not alter the meaning or effect without the consent of the committee.
10. In a county whose population is less than [100,000:] 40,000:
(a) The board may appoint committees pursuant to this section.
(b) If the board appoints committees pursuant to this section, the county clerk shall provide for rules or regulations pursuant to subsection 7.
κ2003 Statutes of Nevada, Page 3201 (CHAPTER 486, SB 449)κ
Sec. 8. NRS 295.217 is hereby amended to read as follows:
295.217 1. In a city whose population is [60,000] 10,000 or more, for each initiative, referendum or other question to be placed on the ballot by the council, including, without limitation, pursuant to NRS 293.482 or 295.215, the council shall, in consultation pursuant to subsection 4 with the city clerk [pursuant to subsection 4,] or other city officer authorized to perform the duties of the city clerk, appoint two committees. Except as otherwise provided in subsection 2, one committee must be composed of three persons who favor approval by the voters of the initiative, referendum or other question and the other committee must be composed of three persons who oppose approval by the voters of the initiative, referendum or other question.
2. If, after consulting with the city clerk pursuant to subsection 4, the council is unable to appoint three persons willing to serve on a committee, the council may appoint fewer than three persons to that committee, but the council must appoint at least one person to each committee appointed pursuant to this section.
3. With respect to a committee appointed pursuant to this section:
(a) A person may not serve simultaneously on the committee that favors approval by the voters of an initiative, referendum or other question and the committee that opposes approval by the voters of that initiative, referendum or other question.
(b) Members of the committee serve without compensation.
(c) The term of office for each member commences upon appointment and expires upon the publication of the sample ballot containing the initiative, referendum or other question.
4. Before the council appoints a committee pursuant to this section, the city clerk shall:
(a) Recommend to the council persons to be appointed to the committee; and
(b) Consider recommending pursuant to paragraph (a):
(1) Any person who has expressed an interest in serving on the committee; and
(2) A person who is a member of an organization that has expressed an interest in having a member of the organization serve on the committee.
5. If the council of a city whose population is [60,000] 10,000 or more fails to appoint a committee as required pursuant to this section, the city clerk shall appoint the committee.
6. A committee appointed pursuant to this section:
(a) Shall elect a chairman for the committee;
(b) Shall meet and conduct its affairs as necessary to fulfill the requirements of this section;
(c) May seek and consider comments from the general public;
(d) Shall [, based on whether the members were appointed to advocate or oppose approval by the voters of the initiative, referendum or other question,] prepare an argument either advocating or opposing approval by the voters of the initiative, referendum or other question [;] , based on whether the members were appointed to advocate or oppose approval by the voters of the initiative, referendum or other question;
(e) Shall prepare a rebuttal to the argument prepared by the other committee appointed pursuant to this section; and
κ2003 Statutes of Nevada, Page 3202 (CHAPTER 486, SB 449)κ
(f) Shall submit the argument and rebuttal prepared pursuant to paragraphs (d) and (e) to the city clerk not later than the date prescribed by the city clerk pursuant to subsection 7.
7. The city clerk of a city whose population is [60,000] 10,000 or more shall provide, by rule or regulation:
(a) The maximum permissible length of an argument or rebuttal prepared pursuant to this section; and
(b) The date by which an argument or rebuttal prepared pursuant to this section must be submitted by the committee to the city clerk.
8. Upon receipt of an argument or rebuttal prepared pursuant to this section, the city clerk:
(a) May consult with persons who are generally recognized by a national or statewide organization as having expertise in the field or area to which the initiative, referendum or other question pertains; and
(b) Shall reject each statement in the argument or rebuttal that he believes is libelous or factually inaccurate.
Not later than 5 days after the city clerk rejects a statement pursuant to this subsection, the committee may appeal that rejection to the city attorney [.] or other city officer appointed to hear the appeal by the city council. The city attorney or other city officer appointed to hear the appeal shall review the statement and the reasons for its rejection and may receive evidence, documentary or testimonial, to aid him in his decision. Not later than 3 business days after the appeal by the committee, the city attorney or other city officer appointed to hear the appeal shall issue his decision rejecting or accepting the statement. The decision of the city attorney or other city officer appointed to hear the appeal is a final decision for the purposes of judicial review.
9. The city clerk shall place in the sample ballot provided to the registered voters of the city each argument and rebuttal prepared pursuant to this section, containing all statements that were not rejected pursuant to subsection 8. The city clerk may revise the language submitted by the committee so that it is clear, concise and suitable for incorporation in the sample ballot, but shall not alter the meaning or effect without the consent of the committee.
10. In a city whose population is less than [60,000:] 10,000:
(a) The council may appoint committees pursuant to this section.
(b) If the council appoints committees pursuant to this section, the city clerk shall provide for rules or regulations pursuant to subsection 7.
________
κ2003 Statutes of Nevada, Page 3203κ
Senate Bill No. 470Committee on Taxation
CHAPTER 487
AN ACT relating to taxation; authorizing cities that own or operate airports in certain counties to impose certain taxes on aviation fuel and fuel for jet or turbine-powered aircraft; revising the method for the distribution of and certain restrictions on the expenditure of the proceeds of certain taxes on aviation fuel and fuel for jet or turbine-powered aircraft; and providing other matters properly relating thereto.
[Approved: June 11, 2003]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 365 of NRS is hereby amended by adding thereto a new section to read as follows:
Governmental entity includes, without limitation, an airport authority created by special legislative act.
Sec. 2. NRS 365.010 is hereby amended to read as follows:
365.010 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 365.015 to 365.088, inclusive, and section 1 of this act have the meanings ascribed to them in those sections.
Sec. 3. NRS 365.170 is hereby amended to read as follows:
365.170 1. Except as otherwise provided in NRS 365.135, every dealer shall, not later than the last day of each calendar month:
(a) Render to the Department a statement of all aviation fuel and fuel for jet or turbine-powered aircraft sold, distributed or used by him in this state, as well as all such fuel sold, distributed or used in this state by a purchaser thereof upon which sale, distribution or use the dealer has assumed liability for the tax thereon pursuant to NRS 365.020, during the preceding calendar month; and
(b) Pay an excise tax on:
(1) All fuel for jet or turbine-powered aircraft in the amount of 1 cent per gallon, plus any applicable amount imposed [by the county in which the fuel is sold, distributed or used] pursuant to NRS 365.203; and
(2) Aviation fuel in the amount of 2 cents per gallon, plus any applicable amount imposed [by the county in which the fuel is sold, distributed or used] pursuant to NRS 365.203,
so sold, distributed or used, in the manner and within the time prescribed in this chapter.
2. A dealer shall hold the amount of all taxes collected pursuant to this chapter in a separate account in trust for the State.
Sec. 4. NRS 365.203 is hereby amended to read as follows:
365.203 1. The governing body of a city may by ordinance, but not as in a case of emergency, impose a tax of not more than:
(a) Four cents per gallon on fuel for jet or turbine-powered aircraft; and
(b) Eight cents per gallon on aviation fuel,sold, distributed or used at an airport which is owned or operated by the city in a county whose population is less than 100,000.
κ2003 Statutes of Nevada, Page 3204 (CHAPTER 487, SB 470)κ
sold, distributed or used at an airport which is owned or operated by the city in a county whose population is less than 100,000.
2. A board of county commissioners may by ordinance, but not as in a case of emergency, impose a tax of not more than:
(a) Four cents per gallon on fuel for jet or turbine-powered aircraft ; [sold, distributed or used in the county;] and
(b) Eight cents per gallon on aviation fuel [.
2.] ,
sold, distributed or used in the county, except at an airport where a tax is imposed pursuant to subsection 1.
3. A tax imposed pursuant to this section must be imposed on all taxpayers at the same rate. The city or county shall not allow any discounts, exemptions or other variance of the rate of the tax for any taxpayer except for the State or a political subdivision of the State.
[3.] 4. Collection of the tax imposed pursuant to this section must not commence earlier than the first day of the second calendar month after adoption of the ordinance imposing the tax.
Sec. 5. NRS 365.545 is hereby amended to read as follows:
365.545 1. The proceeds of all taxes on fuel for jet or turbine-powered aircraft imposed pursuant to the provisions of NRS 365.170 or 365.203 must be deposited in the Account for Taxes on Fuel for Jet or Turbine-Powered Aircraft in the State General Fund and must be allocated monthly by the Department to the [governmental] :
(a) Governmental entity which operates the airport at which the tax was collected, if the airport is operated by a governmental entity;
(b) Governmental entity which owns the airport at which the tax was collected, [or if the airport is privately owned , to the county] if the airport is owned but not operated by a governmental entity; or
(c) County in which is located the airport [is located .] at which the tax was collected, if the airport is neither owned nor operated by a governmental entity.
2. The money so received must be used by the governmental entity receiving it to pay the cost of:
(a) Transportation projects related to airports, including access on the ground to airports;
(b) Payment of principal and interest on notes, bonds or other obligations incurred to fund projects described in paragraph (a);
(c) Promoting the use of an airport [,] located in a county whose population is less than 400,000, including, without limitation, increasing the number and availability of flights at the airport;
(d) Contributing money to the Trust Fund for Aviation created by NRS 494.048; or
(e) Any combination of those purposes.
3. Money so received may also be pledged for the payment of general or special obligations issued to fund projects described in paragraph (a) of subsection 2.
4. Any money pledged pursuant to the provisions of subsection 3 may be treated as pledged revenues of the project for the purposes of subsection 3 of NRS 350.020.
κ2003 Statutes of Nevada, Page 3205 (CHAPTER 487, SB 470)κ
Sec. 6. NRS 365.565 is hereby amended to read as follows:
365.565 1. The tax derived from aviation fuel must be distributed quarterly from the Account for Taxes on Aviation Fuel in the following manner:
[1. There]
(a) The amount of any optional tax must be remitted to the:
(1) Governmental entity which operates the airport at which the optional tax was collected, if the airport is operated by a governmental entity;
(2) Governmental entity which owns the airport at which the optional tax was collected, if the airport is owned but not operated by a governmental entity; or
(3) County in which is located the airport at which the optional tax was collected, if the airport is neither owned nor operated by a governmental entity.
(b) After deducting the amount allocated pursuant to paragraph (a), there must be transferred to the Civil Air Patrol Account, which is hereby created, [from the Account for Taxes on Aviation Fuel,] for the ensuing fiscal year, a sum not to exceed $130,000 or the total amount remaining in the [Account,] Account for Taxes on Aviation Fuel, whichever is less.
(c) After deducting the amounts allocated pursuant to paragraphs (a) and (b), any remaining balance in the Account for Taxes on Aviation Fuel must be remitted, in proportion to the amount of the mandatory tax collected at each airport, to the:
(1) Governmental entity which operates the airport at which the mandatory tax was collected, if the airport is operated by a governmental entity;
(2) Governmental entity which owns the airport at which the mandatory tax was collected, if the airport is owned but not operated by a governmental entity; or
(3) County in which is located the airport at which the mandatory tax was collected, if the airport is neither owned nor operated by a governmental entity.
2. Any money received by a governmental entity pursuant to subsection 1, except for the money transferred to the Civil Air Patrol Account, must be used by that governmental entity in the same manner as money allocated to a governmental entity pursuant to NRS 365.545.
3. The amount [so] transferred to the Civil Air Patrol Account pursuant to this section must be expended for the support of the Nevada Wing of the Civil Air Patrol and is in addition to and separate from any legislative appropriations made to the Civil Air Patrol Account for the support of that wing.
[2.] 4. Money in the Civil Air Patrol Account may be paid out only upon claims certified by the Wing Commander and the Wing Finance Officer and approved by the State Board of Examiners, in the same manner as other claims against the State are paid.
[3.] 5. Money in the Civil Air Patrol Account may be used only by the wing to:
(a) Carry out its search, rescue and emergency operations;
(b) Maintain a headquarters; and
(c) Purchase, maintain and repair emergency and training equipment.
[4.] 6. No money in the Civil Air Patrol Account may be expended for:
κ2003 Statutes of Nevada, Page 3206 (CHAPTER 487, SB 470)κ
(a) The purchase of any aircraft;
(b) Travel expenses;
(c) Training expenses; or
(d) Fuel for vehicles or aircraft used in an official mission of the United States Air Force.
[5.] 7. Any person who makes a claim against the Civil Air Patrol Account shall reimburse the Account if payment for the claim is also received from another source.
[6. There must be remitted to the treasurer of each county such portion of the remaining balance in the Account for Taxes on Aviation Fuel as is proportional to the excise taxes remitted by dealers or users in his county.]
8. As used in this section:
(a) Mandatory tax means the tax on aviation fuel collected pursuant to NRS 365.170 without regard to any optional tax.
(b) Optional tax means a tax on aviation fuel imposed pursuant to NRS 365.203.
Sec. 7. NRS 494.046 is hereby repealed.
Sec. 8. The provisions of this act do not apply to the administration and use of any money remitted to a county treasurer pursuant to NRS 365.565 before July 1, 2003.
Sec. 9. This act becomes effective on July 1, 2003.
________
Assembly Bill No. 518Committee on Transportation
CHAPTER 488
AN ACT relating to transportation; imposing certain fees for the operation of livery and traditional limousines; prohibiting certain motor carriers from engaging in certain types of misleading advertising; providing for the impoundment of certain vehicles under certain circumstances; making various changes regarding the filing of certain applications; making various changes regarding the disposition of money paid for the special license plate for veterans; temporarily prohibiting the Transportation Services Authority from accepting certain applications relating to certificates of public convenience and necessity for the operation of limousines; temporarily prohibiting fully regulated carriers from increasing the number of limousines which they operate; directing the Legislative Commission to conduct a study of issues relating to the allocation of limousines; authorizing the Transportation Services Authority under certain circumstances to adopt regulations providing for a system of allocations for limousines; providing penalties; and providing other matters properly relating thereto.
[Approved: June 11, 2003]
Whereas, In Southern Nevada an excessive number of limousines may negatively affect the integrity and viability of the limousine industry and may negatively affect the taxi industry, as well as cause conflict between taxi and limousine drivers and companies which could negatively impact the tourism industries; now, thereforeTHE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
κ2003 Statutes of Nevada, Page 3207 (CHAPTER 488, AB 518)κ
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 706 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.
Sec. 2. 1. An operator of a limousine shall, beginning on July 1, 2003, and on July 1 of each year thereafter, pay to the Authority a fee of $100 for each limousine that the Authority has authorized the operator to operate.
2. As used in this section, limousine includes:
(a) A livery limousine; and
(b) A traditional limousine.
Sec. 3. 1. It is unlawful for any person to advertise services for which a certificate of public convenience and necessity or a contract carriers permit is required pursuant to NRS 706.011 to 706.791, inclusive, and sections 2 and 3 of this act, unless the person has been issued such a certificate or permit.
2. If, after notice and a hearing, the Authority determines that a person has engaged in advertising in a manner that violates the provisions of this section, the Authority may, in addition to any penalty, punishment or disciplinary action authorized by the provisions of NRS 706.011 to 706.791, inclusive, and sections 2 and 3 of this act, issue an order to the person to cease and desist the unlawful advertising and to:
(a) Cause any telephone number included in the advertising, other than a telephone number to a provider of paging services, to be disconnected.
(b) Request the provider of paging services to change the number of any beeper which is included in the advertising or disconnect the paging services to such a beeper, and to inform the provider of paging services that the request is made pursuant to this section.
3. If a person fails to comply with paragraph (a) of subsection 2 within 5 days after the date that he receives an order pursuant to subsection 2, the Authority may request the Commission to order the appropriate provider of telephone service to disconnect any telephone number included in the advertisement, except for a telephone number to a provider of paging services. If a person fails to comply with paragraph (b) of subsection 2 within 5 days after the date he receives an order pursuant to subsection 2, the Authority may request the provider of paging services to switch the beeper number or disconnect the paging services provided to the person, whichever the provider deems appropriate.
4. If the provider of paging services receives a request from a person pursuant to subsection 2 or a request from the Authority pursuant to subsection 3, it shall:
(a) Disconnect the paging service to the person; or
(b) Switch the beeper number of the paging service provided to the person.
If the provider of paging services elects to switch the number pursuant to paragraph (b), the provider shall not forward or offer to forward the paging calls from the previous number, or provide or offer to provide a recorded message that includes the new beeper number.
5. As used in this section:
κ2003 Statutes of Nevada, Page 3208 (CHAPTER 488, AB 518)κ
(a) Advertising includes, but is not limited to, the issuance of any sign, card or device, or the permitting or allowing of any sign or marking on a motor vehicle, in any building, structure, newspaper, magazine or airway transmission, on the Internet or in any directory under the listing of fully regulated carrier with or without any limiting qualifications.
(b) Beeper means a portable electronic device which is used to page the person carrying it by emitting an audible or a vibrating signal when the device receives a special radio signal.
(c) Provider of paging services means an entity, other than a public utility, that provides paging service to a beeper.
(d) Provider of telephone service has the meaning ascribed to it in NRS 707.355.
Sec. 4. NRS 706.011 is hereby amended to read as follows:
706.011 As used in NRS 706.011 to 706.791, inclusive, and sections 2 and 3 of this act, unless the context otherwise requires, the words and terms defined in NRS 706.013 to 706.146, inclusive, have the meanings ascribed to them in those sections.
Sec. 5. NRS 706.391 is hereby amended to read as follows:
706.391 1. Upon the filing of an application for a certificate of public convenience and necessity to operate as a common motor carrier , other than an operator of a tow car, or an application for modification of such a certificate, the Authority shall fix a time and place for a hearing [thereon.] on the application.
2. The Authority shall [issue such a] grant the certificate or modification if it finds that:
(a) The applicant is financially and operationally fit, willing and able to perform the services of a common motor carrier [;] and that the operation of, and the provision of such services by, the applicant as a common motor carrier will foster sound economic conditions within the applicable industry;
(b) The proposed operation or the proposed modification will be consistent with the legislative policies set forth in NRS 706.151;
(c) The granting of the certificate or modification will not unreasonably and adversely affect other carriers operating in the territory for which the certificate or modification is sought; [and]
(d) The proposed [service] operation or the proposed modification will benefit and protect the safety and convenience of the traveling and shipping public and the motor carrier business in this state [.] ;
(e) The proposed operation, or service under the proposed modification, will be provided on a continuous basis;
(f) The market identified by the applicant as the market which the applicant intends to serve will support the proposed operation or proposed modification; and
(g) The applicant has paid all fees and costs related to the application.
3. The Authority shall not find that the potential creation of competition in a territory which may be caused by the granting of [a certificate,] the certificate or modification, by itself, will unreasonably and adversely affect other carriers operating in the territory for the purposes of paragraph (c) of subsection 2.
4. [An] In determining whether the applicant is fit to perform the services of a common motor carrier pursuant to paragraph (a) of subsection 2, the Authority shall consider whether the applicant has violated any provision of this chapter or any regulations adopted pursuant thereto.
κ2003 Statutes of Nevada, Page 3209 (CHAPTER 488, AB 518)κ
violated any provision of this chapter or any regulations adopted pursuant thereto.
5. The applicant for [such a certificate has] the certificate or modification:
(a) Has the burden of proving to the Authority that the proposed operation will meet the requirements of subsection 2 [.
5.] ; and
(b) Must pay the amounts billed to the applicant by the Authority for the costs incurred by the Authority in conducting any investigation regarding the applicant and the application.
6. The Authority may issue or modify a certificate of public convenience and necessity to operate as a common motor carrier, or issue or modify it for:
(a) The exercise of the privilege sought.
(b) The partial exercise of the privilege sought.
[6.] 7. The Authority may attach to the certificate such terms and conditions as, in its judgment, the public interest may require.
[7.] 8. The Authority may dispense with the hearing on the application if, upon the expiration of the time fixed in the notice thereof, no petition to intervene has been filed on behalf of any person who has filed a protest against the granting of the certificate [.] or modification.
Sec. 6. NRS 706.756 is hereby amended to read as follows:
706.756 1. Except as otherwise provided in subsection 2, any person who:
(a) Operates a vehicle or causes it to be operated in any carriage to which the provisions of NRS 706.011 to 706.861, inclusive, and sections 2 and 3 of this act, apply without first obtaining a certificate, permit or license, or in violation of the terms thereof;
(b) Fails to make any return or report required by the provisions of NRS 706.011 to 706.861, inclusive, and sections 2 and 3 of this act, or by the Authority or the Department pursuant to the provisions of NRS 706.011 to 706.861, inclusive [;] , and sections 2 and 3 of this act;
(c) Violates, or procures, aids or abets the violating of, any provision of NRS 706.011 to 706.861, inclusive [;] , and sections 2 and 3 of this act;
(d) Fails to obey any order, decision or regulation of the Authority or the Department;
(e) Procures, aids or abets any person in his failure to obey such an order, decision or regulation of the Authority or the Department;
(f) Advertises, solicits, proffers bids or otherwise holds himself out to perform transportation as a common or contract carrier in violation of any of the provisions of NRS 706.011 to 706.861, inclusive [;] , and sections 2 and 3 of this act;
(g) Advertises as providing:
(1) The services of a fully regulated carrier; or
(2) Towing services,
without including the number of his certificate of public convenience and necessity or contract carriers permit in each advertisement;
(h) Knowingly offers, gives, solicits or accepts any rebate, concession or discrimination in violation of the provisions of this chapter;
(i) Knowingly, willfully and fraudulently seeks to evade or defeat the purposes of this chapter;
κ2003 Statutes of Nevada, Page 3210 (CHAPTER 488, AB 518)κ
(j) Operates or causes to be operated a vehicle which does not have the proper identifying device;
(k) Displays or causes or permits to be displayed a certificate, permit, license or identifying device, knowing it to be fictitious or to have been cancelled, revoked, suspended or altered;
(l) Lends or knowingly permits the use of by one not entitled thereto any certificate, permit, license or identifying device issued to the person so lending or permitting the use thereof; or
(m) Refuses or fails to surrender to the Authority or Department any certificate, permit, license or identifying device which has been suspended, cancelled or revoked pursuant to the provisions of this chapter,
is guilty of a misdemeanor, and upon conviction thereof shall be punished by a fine of not less than $100 nor more than $1,000, or by imprisonment in the county jail for not more than 6 months, or by both fine and imprisonment.
2. [A person convicted of a misdemeanor for a] Any person who, in violation of the provisions of NRS 706.386 , operates as a fully regulated common motor carrier without first obtaining a certificate of public convenience and necessity or any person who, in violation of the provisions of NRS 706.421 , operates as a contract motor carrier without first obtaining a permit is guilty of a misdemeanor and shall be punished:
(a) For [the] a first offense [,] within a period of 12 consecutive months, by a fine of not less than $500 nor more than $1,000 . [;] In addition to the fine, the person may be punished by imprisonment in the county jail for not more than 6 months.
(b) For a second offense within a period of 12 consecutive months and for each subsequent offense [,] that is committed within a period of 12 consecutive months of any prior offense under this subsection, by a fine of $1,000 . [; or
(c) For any offense,] In addition to the fine, the person may be punished by imprisonment in the county jail for not more than 6 months . [, or by both the prescribed fine and imprisonment.]
3. Any person who , in violation of the provisions of NRS 706.386, operates or permits the operation of a vehicle in passenger service without first obtaining a certificate of public convenience and necessity [issued pursuant to NRS 706.391] is guilty of a gross misdemeanor.
4. If a law enforcement officer witnesses a violation of [this subsection, he] any provision of subsection 2 or 3, the law enforcement officer may cause the vehicle to be towed immediately from the scene [.
4.] and impounded in accordance with NRS 706.476.
5. The fines provided in this section are mandatory and must not be reduced under any circumstances by the court.
[5.] 6. Any bail allowed must not be less than the appropriate fine provided for by this section.
Sec. 7. NRS 417.145 is hereby amended to read as follows:
417.145 1. The Veterans Home Account is hereby established in the State General Fund.
2. Money received by the Executive Director or the Deputy Executive Director from:
(a) Payments by the Department of Veterans Affairs for veterans who receive care in a veterans home;
(b) Other payments for medical care and services;
(c) Appropriations made by the Legislature for veterans homes; and
κ2003 Statutes of Nevada, Page 3211 (CHAPTER 488, AB 518)κ
(d) Except as otherwise provided in subsection 7, gifts of money and proceeds derived from the sale of gifts of personal property he is authorized to accept for the use of veterans homes, if the use of such gifts has not been restricted by the donor,
must be deposited with the State Treasurer for credit to the Veterans Home Account.
3. Interest and income must not be computed on the money in the Veterans Home Account.
4. The Veterans Home Account must be administered by the Executive Director, with the advice of the Deputy Executive Director and the Nevada Veterans Services Commission, and the money deposited in the Veterans Home Account may only be expended for:
(a) The operation of veterans homes;
(b) A program or service related to a veterans home;
(c) The solicitation of other sources of money to fund a veterans home; and
(d) The purpose of informing the public about issues concerning the establishment and uses of a veterans home.
5. Except as otherwise provided in subsection 7, gifts of personal property which the Executive Director or the Deputy Executive Director is authorized to receive for the use of veterans homes:
(a) May be sold or exchanged if the sale or exchange is approved by the State Board of Examiners; or
(b) May be used in kind if the gifts are not appropriate for conversion to money.
6. All money in the Veterans Home Account must be paid out on claims approved by the Executive Director as other claims against the State are paid.
7. The Gift Account for Veterans Homes is hereby established in the State General Fund. The Executive Director or the Deputy Executive Director shall use gifts of money or personal property that he is authorized to accept and which the donor has restricted to one or more uses at a veterans home, only in the manner designated by the donor. Gifts of money that the Executive Director or Deputy Executive Director is authorized to accept and which the donor has restricted to one or more uses at a veterans home must be deposited with the State Treasurer for credit to the Gift Account for Veterans Homes. The interest and income earned on the money in the Gift Account for Veterans Homes, after deducting any applicable charges, must be credited to the Gift Account for Veterans Homes. Any money remaining in the Gift Account for Veterans Homes at the end of each fiscal year does not lapse to the State General Fund, but must be carried forward into the next fiscal year.
8. The Executive Director shall, on or before August 1 of each year, prepare and submit to the Interim Finance Committee a report detailing the expenditures made from the Gift Account for Veterans Homes that are attributable to the money deposited in that account pursuant to subsection 2 of NRS 482.3764.
Sec. 8. NRS 482.3764 is hereby amended to read as follows:
482.3764 1. Before the Department issues to any person, pursuant to NRS 482.3763:
(a) An initial set of special license plates, it shall:
κ2003 Statutes of Nevada, Page 3212 (CHAPTER 488, AB 518)κ
(1) Collect a special fee for a veterans home in the amount of $25; and
(2) Affix a decal to each plate if requested by an applicant who meets the requirements set forth in NRS 482.37635.
(b) An annual renewal sticker, it shall:
(1) Collect a special fee for a veterans home in the amount of $20; and
(2) Affix a decal to each plate if requested by an applicant who meets the requirements set forth in NRS 482.37635.
2. The Department shall deposit [any money] the first $100,000 collected pursuant to this section each year with the State Treasurer for credit to the [Veterans Home Account.] Gift Account for Veterans Homes, established by subsection 7 of NRS 417.145. Thereafter, any additional amount collected pursuant to this section during the year must be deposited in the State General Fund.
Sec. 9. 1. Except as otherwise provided in subsection 2, for the period beginning on June 1, 2003, and ending on July 1, 2004, the Transportation Services Authority shall not accept the submission or filing of any application for the modification of a certificate of public convenience and necessity issued to a fully regulated carrier of passengers for the operation of a livery or traditional limousine if the application for modification is to increase the number of limousines to be operated pursuant to the certificate of public convenience and necessity in a county whose population is 400,000 or more.
2. The Transportation Services Authority:
(a) Shall first publicly notice and then process, in the order in which it was received, each application for any new or modified certificate of public convenience and necessity that is received by the Authority before June 1, 2003.
(b) Except as otherwise provided in this paragraph, during the period beginning on June 1, 2003, and ending on July 1, 2004, shall accept the submission and filing of applications for a new certificate of public convenience and necessity for the operation of a livery or traditional limousine in a county whose population is 400,000 or more. Applications submitted and filed as described in this paragraph must be processed in the ordinary course of business and without undue delay. The Authority shall not, during that period:
(1) Accept the submission and filing of more than one application by any one applicant.
(2) Approve the operation of more than two livery or traditional limousines per each such application.
3. An unlimited certificate of public convenience and necessity for the operation of a livery or traditional limousine issued to a fully regulated carrier of passengers by the Transportation Services Authority is void and revoked for the period from June 1, 2003, to July 1, 2004, to the extent that the carrier has not, before June 1, 2003, registered in this state each authorized limousine covered by the certificate of public convenience and necessity.
4. As used in this section:
(a) Fully regulated carrier has the meaning ascribed to it in NRS 706.072.
κ2003 Statutes of Nevada, Page 3213 (CHAPTER 488, AB 518)κ
(b) Livery limousine means a motor vehicle that is engaged in the general transportation of persons for compensation and not operated on a regular schedule or over regular routes and:
(1) Was a light truck, as that term is defined in 49 C.F.R. § 523.5, at the time of its manufacture; or
(2) Was originally manufactured as having a capacity of 9 or more persons but less than 16 persons, including the driver.
The term does not include a limousine for which the operator is not required to obtain a certificate of public convenience and necessity from the Transportation Services Authority.
(c) Traditional limousine means a motor vehicle that is engaged in the general transportation of persons for compensation and not operated on a regular schedule or over regular routes and:
(1) Was a passenger automobile, as that term is defined in 49 C.F.R. § 523.4, at the time of its manufacture and was later modified to increase its length; or
(2) Has a capacity of less than nine persons, including the driver.
Sec. 10. 1. The Legislative Commission shall direct a study of issues relating to the allocation of limousines.
2. The study must consider:
(a) Whether an allocation system is appropriate for the issuance of certificates of public convenience and necessity for limousines operated in a county whose population is 400,000 or more;
(b) Whether the budgetary needs of the Transportation Services Authority are being met at a level that will ensure optimum regulation of limousines, combined with an assessment of the probable effect on operators of any additional regulatory fees; and
(c) Such other issues regarding the regulation of limousines as the Commission deems appropriate.
3. The Commission may apply for any available grants and accept gifts, grants or donations to assist the Commission in conducting the study.
4. The Commission may contract with or enter into an agreement with a public or private agency that has the experience necessary to conduct a study of the type described in subsection 2.
5. The Commission shall, on or before April 30, 2004, submit the final results of the study to the Transportation Services Authority. The Commission shall submit a report of the results of the study and any recommendations for legislation to the 73rd Session of the Nevada Legislature.
Sec. 11. 1. On or before May 28, 2004, the Legislative Commission shall, based upon information gathered during the study described in section 10 of this act, provide to the Transportation Services Authority the recommendation of the Commission as to whether the Authority should establish by regulation a system of allocations for limousines.
2. The Authority shall consider the recommendation of the Commission and if the Authority determines, based upon information gathered during the study, that it would be advisable to establish a system of allocations for limousines, the Authority may, except as otherwise provided in subsection 3, adopt regulations in accordance with chapter 233B of NRS establishing a system of allocations for limousines. If established, such a system must set forth the number of limousines that may be operated by a person who holds a certificate of public convenience and necessity for the operation of a livery or traditional limousine, as applicable.
κ2003 Statutes of Nevada, Page 3214 (CHAPTER 488, AB 518)κ
certificate of public convenience and necessity for the operation of a livery or traditional limousine, as applicable.
3. On or before June 15, 2004, the Authority shall publicly announce whether it will establish by regulation a system of allocations for limousines.
4. As used in this section:
(a) Livery limousine has the meaning ascribed to it in section 9 of this act.
(b) Traditional limousine has the meaning ascribed to it in section 9 of this act.
Sec. 12. The provisions of this act do not limit, prohibit, restrict or otherwise affect the consideration of or processing of any application for:
1. A new certificate of public convenience and necessity; or
2. The modification of a certificate of public convenience and necessity,
that is filed with or submitted to the Transportation Services Authority before June 1, 2003.
Sec. 13. 1. This section, sections 1 to 6, inclusive, and 9 to 12, inclusive, of this act become effective upon passage and approval.
2. Sections 7 and 8 of this act become effective on July 1, 2005.
________
Senate Bill No. 59Senator Rhoads
CHAPTER 489
AN ACT relating to education; revising provisions governing approval by the Superintendent of Public Instruction for the board of trustees of a school district to provide a program of instruction based on an alternative schedule; requiring certain reports regarding alternative schedules to be prepared by the boards of trustees of certain school districts and the Superintendent of Public Instruction; and providing other matters properly relating thereto.
[Approved: June 11, 2003]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 387.123 is hereby amended to read as follows:
387.123 1. The count of pupils for apportionment purposes includes all pupils who are enrolled in programs of instruction of the school district, including, without limitation, a program of distance education provided by the school district, or pupils who reside in the county in which the school district is located and are enrolled in any charter school, including, without limitation, a program of distance education provided by a charter school, for:
(a) Pupils in the kindergarten department.
(b) Pupils in grades 1 to 12, inclusive.
(c) Pupils not included under paragraph (a) or (b) who are receiving special education pursuant to the provisions of NRS 388.440 to 388.520, inclusive.
(d) Pupils who reside in the county and are enrolled part time in a program of distance education if an agreement is filed with the Superintendent of Public Instruction pursuant to NRS 388.854 or 388.858, as applicable.
κ2003 Statutes of Nevada, Page 3215 (CHAPTER 489, SB 59)κ
Superintendent of Public Instruction pursuant to NRS 388.854 or 388.858, as applicable.
(e) Children detained in detention homes, alternative programs and juvenile forestry camps receiving instruction pursuant to the provisions of NRS 388.550, 388.560 and 388.570.
(f) Pupils who are enrolled in classes pursuant to subsection 4 of NRS 386.560 and pupils who are enrolled in classes pursuant to subsection 4 of NRS 386.580.
(g) Pupils who are enrolled in classes pursuant to subsection 3 of NRS 392.070.
(h) Pupils who are enrolled in classes and taking courses necessary to receive a high school diploma, excluding those pupils who are included in paragraphs (d), (f) and (g).
2. The State Board shall establish uniform regulations for counting enrollment and calculating the average daily attendance of pupils. In establishing such regulations for the public schools, the State Board:
(a) Shall divide the school year into 10 school months, each containing 20 or fewer school days [.] , or its equivalent for those public schools operating under an alternative schedule authorized pursuant to NRS 388.090.
(b) May divide the pupils in grades 1 to 12, inclusive, into categories composed respectively of those enrolled in elementary schools and those enrolled in secondary schools.
(c) Shall prohibit the counting of any pupil specified in subsection 1 more than once.
3. Except as otherwise provided in subsection 4 and NRS 388.700, the State Board shall establish by regulation the maximum pupil-teacher ratio in each grade, and for each subject matter wherever different subjects are taught in separate classes, for each school district of this state which is consistent with:
(a) The maintenance of an acceptable standard of instruction;
(b) The conditions prevailing in the school district with respect to the number and distribution of pupils in each grade; and
(c) Methods of instruction used, which may include educational television, team teaching or new teaching systems or techniques.
If the Superintendent of Public Instruction finds that any school district is maintaining one or more classes whose pupil-teacher ratio exceeds the applicable maximum, and unless he finds that the board of trustees of the school district has made every reasonable effort in good faith to comply with the applicable standard, he shall, with the approval of the State Board, reduce the count of pupils for apportionment purposes by the percentage which the number of pupils attending those classes is of the total number of pupils in the district, and the State Board may direct him to withhold the quarterly apportionment entirely.
4. The provisions of subsection 3 do not apply to a charter school or a program of distance education provided pursuant to NRS 388.820 to 388.874, inclusive.
Sec. 2. NRS 388.090 is hereby amended to read as follows:
388.090 1. Except as otherwise [permitted pursuant to] provided in this section, boards of trustees of school districts shall schedule and provide a minimum of 180 days of free school in the districts under their charge.
κ2003 Statutes of Nevada, Page 3216 (CHAPTER 489, SB 59)κ
2. Except for an alternative schedule described in subsection 3, the Superintendent of Public Instruction may, upon application by the board of trustees of a school district, authorize the school district to provide a program of instruction based on an alternative schedule if the number of minutes of instruction to be provided is equal to or greater than the number of minutes of instruction that would be provided in a program of instruction consisting of 180 school days. The Superintendent of Public Instruction shall notify the board of trustees of the school district of the approval or denial of the application not later than 30 days after the Superintendent of Public Instruction receives the application. An alternative schedule proposed pursuant to this subsection must be developed in accordance with chapter 288 of NRS. If a school district is located in a county whose population is 100,000 or more, the school district may not submit an application pursuant to this subsection unless the proposed alternative schedule of the school district will apply only to a rural portion or a remote portion of the county in which the school district is located, as defined by the State Board pursuant to subsection 8.
3. The Superintendent of Public Instruction may, upon application by [a] the board of trustees [,] of a school district, authorize a reduction of not more than 15 school days in [a] that particular district to establish or maintain an alternative schedule consisting of a 12-month school program [or a program involving alternative scheduling,] if the board of trustees demonstrates that the proposed alternative schedule for the program provides for a [greater] number of minutes of instruction that is equal to or greater than that which would be provided under a program consisting of 180 school days. Before authorizing a reduction in the number of required school days pursuant to this subsection, the Superintendent of Public Instruction must find that the proposed alternative schedule will be used to alleviate problems associated with a growth in enrollment or overcrowding . [, or to establish and maintain a program of alternative schooling, including, without limitation, a program of distance education provided by the board of trustees pursuant to NRS 388.820 to 388.874, inclusive.
3.] 4. The Superintendent of Public Instruction may, upon application by a board of trustees, authorize the addition of minutes of instruction to any scheduled day of free school if days of free school are lost because of any interscholastic activity. Not more than 5 days of free school so lost may be rescheduled in this manner.
[4.] The provisions of this subsection do not apply to an alternative schedule approved pursuant to subsection 2.
5. The number of minutes of instruction required for a particular group of pupils in a program of instruction based on an alternative schedule approved pursuant to this section must be determined by multiplying the appropriate minimum daily period of instruction established by the State Board by regulation for that particular group of pupils by 180.
6. Each school district shall schedule at least 3 contingent days of school , or its equivalent if the school district operates under an alternative schedule authorized pursuant to this section, in addition to the number of days required by this section, which must be used if a natural disaster, inclement weather or an accident necessitates the closing of a majority of the facilities within the district.
κ2003 Statutes of Nevada, Page 3217 (CHAPTER 489, SB 59)κ
[5.] 7. If more than 3 days of free school , or its equivalent if the school district operates under an alternative schedule authorized pursuant to this section, are lost because a natural disaster, inclement weather or an accident necessitates the closing of a majority of the facilities within a school district, the Superintendent of Public Instruction, upon application by the school district, may permit the additional days lost to be counted as school days in session. The application must be submitted in the manner prescribed by the Superintendent of Public Instruction.
[6.] 8. The State Board shall adopt regulations [providing] :
(a) Providing procedures for changing schedules of instruction to be used if a natural disaster, inclement weather or an accident necessitates the closing of a particular school within a school district.
(b) Defining a rural portion of a county and a remote portion of a county for the purposes of subsection 2.
Sec. 3. NRS 391.3115 is hereby amended to read as follows:
391.3115 1. The demotion, suspension, dismissal and nonreemployment provisions of NRS 391.311 to 391.3197, inclusive, do not apply to:
(a) Substitute teachers; or
(b) Adult education teachers.
2. A licensed employee who is employed in a position fully funded by a federal or private categorical grant or to replace another licensed employee during that employees leave of absence is employed only for the duration of the grant or leave. Such a licensed employee and licensed employees who are employed on temporary contracts for 90 school days or less , or its equivalent in a school district operating under an alternative schedule authorized pursuant to NRS 388.090, to replace licensed employees whose employment has terminated after the beginning of the school year are entitled to credit for that time in fulfilling any period of probation and during that time the provisions of NRS 391.311 to 391.3197, inclusive, for demotion, suspension or dismissal apply to them.
Sec. 4. NRS 392.019 is hereby amended to read as follows:
392.019 1. Except as otherwise provided in this subsection, if a child is exempt from compulsory attendance pursuant to NRS 392.070, 392.100 or 392.110, and the child is employed to work in the entertainment industry pursuant to a written contract for a period of more than 91 school days, or its equivalent if the child resides in a school district operating under an alternative schedule authorized pursuant to NRS 388.090, including, without limitation, employment with a motion picture company or employment with a production company hired by a casino or resort hotel, the entity that employs the child shall, upon the request of the parent or legal guardian of the child, pay the costs for the child to receive at least 3 hours of tutoring per day for at least 5 days per week. In lieu of tutoring, the parent or legal guardian of such a child may agree with the entity that employs the child that the entity will pay the costs for the child to receive other educational or instructional services which are equivalent to tutoring. The provisions of this subsection apply during the period of a childs employment with an entity, regardless of whether the child has obtained the appropriate exemption from compulsory attendance at the time his contract with the entity is under negotiation.
2. If such a child is exempt from compulsory attendance pursuant to NRS 392.100 or 392.110, the tutoring or other educational or instructional services received by the child pursuant to subsection 1 must be approved by the board of trustees of the school district in which the child resides.
κ2003 Statutes of Nevada, Page 3218 (CHAPTER 489, SB 59)κ
services received by the child pursuant to subsection 1 must be approved by the board of trustees of the school district in which the child resides.
Sec. 5. NRS 392.435 is hereby amended to read as follows:
392.435 1. Unless excused because of religious belief or medical condition, a child may not be enrolled in a public school within this state unless his parents or guardian submit to the board of trustees of the school district in which the child resides or the governing body of the charter school in which the child has been accepted for enrollment a certificate stating that the child has been immunized and has received proper boosters for that immunization or is complying with the schedules established by regulation pursuant to NRS 439.550 for the following diseases:
(a) Diphtheria;
(b) Tetanus;
(c) Pertussis if the child is under 6 years of age;
(d) Poliomyelitis;
(e) Rubella;
(f) Rubeola; and
(g) Such other diseases as the local board of health or the State Board of Health may determine.
2. The certificate must show that the required vaccines and boosters were given and must bear the signature of a licensed physician or his designee or a registered nurse or his designee, attesting that the certificate accurately reflects the childs record of immunization.
3. If the requirements of subsection 1 can be met with one visit to a physician or clinic, procedures for conditional enrollment do not apply.
4. A child may enter school conditionally if the parent or guardian submits a certificate from a physician or local health officer that the child is receiving the required immunizations. If a certificate from the physician or local health officer showing that the child has been fully immunized is not submitted to the appropriate school officers within 90 school days , or its equivalent in a school district operating under an alternative schedule authorized pursuant to NRS 388.090, after the child was conditionally admitted, the child must be excluded from school and may not be readmitted until the requirements for immunization have been met. A child who is excluded from school pursuant to this section is a neglected child for the purposes of NRS 432.100 to 432.130, inclusive, and chapter 432B of NRS.
5. Before December 31 of each year, each school district and the governing body of each charter school shall report to the Health Division of the Department of Human Resources, on a form furnished by the Division, the exact number of pupils who have completed the immunizations required by this section.
6. The certificate of immunization must be included in the pupils academic or cumulative record and transferred as part of that record upon request.
Sec. 6. NRS 62.224 is hereby amended to read as follows:
62.224 1. In addition to any other action authorized pursuant to the provisions of this chapter, if a child is found to be in need of supervision because he is a habitual truant, the court shall:
(a) The first time the child is found to be in need of supervision because he is a habitual truant:
(1) Order the child to:
κ2003 Statutes of Nevada, Page 3219 (CHAPTER 489, SB 59)κ
(I) Pay a fine of not more than $100 pursuant to paragraph (l) of subsection 1 of NRS 62.211 and the administrative assessment required by NRS 62.2175; or
(II) Perform not less than 8 hours but not more than 16 hours of community service in compliance with the provisions of subsection 3; and
(2) If the child is 14 years of age or older, order the suspension of the childs drivers license for at least 30 days but not more than 6 months. If the child does not possess a drivers license, the court shall prohibit the child from applying for a drivers license for 30 days:
(I) Immediately following the date of the order if the child is eligible to apply for a drivers license; or
(II) After the date he becomes eligible to apply for a drivers license if the child is not eligible to apply for a drivers license.
(b) The second or any subsequent time the child is found to be in need of supervision because he is a habitual truant:
(1) Order the child to:
(I) Pay a fine of not more than $200 pursuant to paragraph (l) of subsection 1 of NRS 62.211 and the administrative assessment required by NRS 62.2175;
(II) Perform not more than 10 hours of community service in compliance with the provisions of subsection 3; or
(III) Comply with the requirements set forth in both sub‑subparagraphs (I) and (II); and
(2) If the child is 14 years of age or older, order the suspension of the childs drivers license for at least 60 days but not more than 1 year. If the child does not possess a drivers license, the court shall prohibit the child from applying for a drivers license for 60 days:
(I) Immediately following the date of the order if the child is eligible to apply for a drivers license; or
(II) After the date he becomes eligible to apply for a drivers license if the child is not eligible to apply for a drivers license.
2. The court may suspend the payment of a fine ordered pursuant to paragraph (a) of subsection 1 if the child attends school for 60 consecutive school days , or its equivalent in a school district operating under an alternative schedule authorized pursuant to NRS 388.090, after the imposition of the fine, or has a valid excuse acceptable to his teacher or the principal for any absence from school within that period.
3. The community service ordered pursuant to paragraph (a) or (b) of subsection 1 must be performed:
(a) For and under the supervising authority of a county, city, town or other political subdivision or agency of this state or a charitable organization that renders service to the community or its residents; and
(b) At the childs school of attendance, if practicable.
4. If the court issues an order suspending a childs drivers license pursuant to subsection 1, the court shall require the child to surrender to the court all drivers licenses then held by the child.
Sec. 7. 1. If the board of trustees of a school district provides a program of instruction based upon an alternative schedule pursuant to subsection 2 of section 2 of this act, the board of trustees shall, on or before December 31, 2004, submit a written report to the Superintendent of Public Instruction. The report must include:
(a) A description of the alternative schedule; and
κ2003 Statutes of Nevada, Page 3220 (CHAPTER 489, SB 59)κ
(b) An evaluation of the effect of the alternative schedule on the pupils, parents and legal guardians and community.
2. The Superintendent of Public Instruction shall:
(a) Compile the reports, if any, submitted pursuant to subsection 1; and
(b) On or before February 1, 2005, submit a written report of the compilation to the Director of the Legislative Counsel Bureau for transmission to the 73rd Session of the Nevada Legislature.
Sec. 8. This act becomes effective on July 1, 2003.
________
Senate Bill No. 144Committee on Government Affairs
CHAPTER 490
AN ACT relating to the Division of State Parks of the State Department of Conservation and Natural Resources; authorizing, under certain circumstances, the Administrator of the Division to charge and collect a fee for administering certain federal grants for the planning, acquisition or development of outdoor recreational projects; requiring the Legislature to approve any change to the name of a state park, monument or recreational area; requiring the Administrator of the Division to provide an annual permit to enter all state parks and recreational areas; authorizing the Division to enter into cooperative agreements with certain political subdivisions of this state to establish and maintain certain parks; providing for the allocation of certain bonds proceeds for historic restoration projects in Virginia City and Lincoln County; and providing other matters properly relating thereto.
[Approved: June 11, 2003]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 407 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.
Sec. 2. 1. The Administrator, subject to the approval of the Director, may charge and collect from each grant recipient a fee for administering the federal grants provided to the State of Nevada and its political subdivisions for the planning, acquisition or development of outdoor recreational projects pursuant to the Land and Water Conservation Fund established by 16 U.S.C. § 460l-5 to the extent that such a fee does not violate the terms of such a federal grant.
2. If a fee is charged pursuant to subsection 1:
(a) The fee must by charged only once annually.
(b) The total of all fees collected annually pursuant to subsection 1 must not exceed an amount equal to the annual salary of a half-time position the duty of which is to administer the federal grants.
3. Notwithstanding any other specific provision to the contrary, if a fee is charged to the Division pursuant to subsection 1, the fee may be paid from money received by the Division for the planning, acquisition or development of outdoor recreational projects regardless of the source of the money to the extent that such payment of the fee does not violate the terms of any federal grant awarded to the State of Nevada.
κ2003 Statutes of Nevada, Page 3221 (CHAPTER 490, SB 144)κ
development of outdoor recreational projects regardless of the source of the money to the extent that such payment of the fee does not violate the terms of any federal grant awarded to the State of Nevada.
Sec. 3. 1. Any money the Administrator receives pursuant to section 2 of this act:
(a) Must be deposited in the State Treasury and accounted for separately in the State General Fund;
(b) Does not revert to the State General Fund at the end of any fiscal year; and
(c) May be used by the Administrator only to pay the costs of administering the federal grants provided for the planning, acquisition or development of outdoor recreational projects pursuant to the Land and Water Conservation Fund established by 16 U.S.C. § 460l-5. The costs of administering those federal grants include, without limitation, costs for the salary, travel expenses and per diem allowances of the person whose duty is to administer the federal grants.
2. Any interest or income earned on the money in the account, after deducting applicable charges, must be credited to the account. Any claims against the account must be paid in the manner that other claims against the State are paid.
Sec. 4. NRS 407.065 is hereby amended to read as follows:
407.065 1. The Administrator, subject to the approval of the Director:
(a) [May] Except as otherwise provided in this paragraph, may establish, name, plan, operate, control, protect, develop and maintain state parks, monuments and recreational areas for the use of the general public. The name of an existing state park, monument or recreational area may not be changed unless the Legislature approves the change by statute.
(b) Shall protect state parks and property controlled or administered by the Division from misuse or damage and preserve the peace within those areas. The Administrator may appoint or designate certain employees of the Division to have the general authority of peace officers.
(c) May allow multiple use of state parks and real property controlled or administered by the Division for any lawful purpose, including, but not limited to, grazing, mining, development of natural resources, hunting and fishing, in accordance with such regulations as may be adopted in furtherance of the purposes of the Division.
(d) Shall impose and collect reasonable fees for entering, camping and boating in state parks and recreational areas. The Division shall issue, upon application therefor and proof of residency and age, an annual permit for entering, camping and boating in all state parks and recreational areas in this state to any person who is 65 years of age or older and has resided in this state for at least 5 years immediately preceding the date on which the application is submitted. The permit must be issued without charge, except that the Division shall charge and collect an administrative fee for the issuance of the permit in an amount sufficient to cover the costs of issuing the permit.
(e) May conduct and operate such special services as may be necessary for the comfort and convenience of the general public, and impose and collect reasonable fees for such special services.
(f) May rent or lease concessions located within the boundaries of state parks or of real property controlled or administered by the Division to public or private corporations, to groups of natural persons, or to natural persons for a valuable consideration upon such terms and conditions as the Division deems fit and proper, but no concessionaire may dominate any state park operation.
κ2003 Statutes of Nevada, Page 3222 (CHAPTER 490, SB 144)κ
a valuable consideration upon such terms and conditions as the Division deems fit and proper, but no concessionaire may dominate any state park operation. Rental and lease payments must be deposited in the State General Fund.
(g) May establish such capital projects construction funds as are necessary to account for the parks improvements program approved by the Legislature. The money in these funds must be used for the construction and improvement of those parks which are under the supervision of the Administrator.
2. The Administrator:
(a) Shall issue an annual permit to a person who pays a reasonable fee as prescribed by regulation which authorizes the holder of the permit to enter each state park and each recreational area in this state and, except as otherwise provided in subsection 3, use the facilities of the state park or recreational area without paying the entrance fee; and
(b) May issue an annual permit to a person who pays a reasonable fee as prescribed by regulation which authorizes the holder of the permit to enter a specific state park or specific recreational area in this state and, except as otherwise provided in subsection 3, use the facilities of the state park or recreational area without paying the entrance fee.
3. An annual permit issued pursuant to subsection 2 does not authorize the holder of the permit to engage in camping or boating, or to attend special events. The holder of such a permit who wishes to engage in camping or boating, or to attend special events, must pay any fee established for the respective activity.
4. Except as otherwise provided in subsection 1 of NRS 407.0762 and subsection 1 of NRS 407.0765, the fees collected pursuant to paragraphs (d) and (e) of subsection 1 or subsection 2 must be deposited in the State General Fund.
Sec. 5. NRS 407.068 is hereby amended to read as follows:
407.068 1. As used in this section:
(a) Controlling subdivision means any political subdivision of this state, including irrigation, water conservancy and other districts, which owns or controls a site suited to a public park.
(b) Other state agency means any other agency of this state which owns or controls a site suited to a public park or is engaged in park and recreation development.
(c) Park includes any recreational facility.
(d) Using subdivision means any political subdivision of this state which is authorized to establish and maintain public parks.
2. The Administrator, subject to the approval of the Director, may enter into cooperative agreements for the operation of parks, not a part of the Division but which are of state park caliber, with any other state agency, controlling subdivision or using subdivision, for the primary purpose of establishing or maintaining a park where:
(a) A controlling subdivision is not authorized to establish or maintain parks; or
(b) A using subdivision would be subjected to an unfair financial burden through extensive use of the park by nonresidents of the using subdivision.
3. Such an agreement [shall] must include:
(a) The Division;
(b) The using subdivision in which the site is located; and
κ2003 Statutes of Nevada, Page 3223 (CHAPTER 490, SB 144)κ
(c) The controlling subdivision or other state agency.
The agreement may include any other using subdivision whose residents may be expected to make substantial use of the park.
4. The Division shall apportion the cost of operation, or the combined state and local shares of the cost if federal funds are also received, as follows:
(a) As between the State and the using subdivision or subdivisions, on the basis of the number of persons residing outside the using subdivisions, as against the number of residents of such subdivisions, who are estimated or anticipated by the Division to use the park.
(b) As between two or more using subdivisions, on the basis of the number of residents of each so estimated or anticipated to use the park.
5. In addition to the cooperative agreements authorized pursuant to subsection 2, the Administrator, subject to the approval of the Director, may enter into a cooperative agreement with a using subdivision for the purpose of establishing and maintaining a park that:
(a) Is under the jurisdiction of the Division; and
(b) Will be used primarily by residents of the using subdivision.
Sec. 6. NRS 407.0762 is hereby amended to read as follows:
407.0762 1. The Account for Maintenance of State Parks within the Division of State Parks is hereby created in the State General Fund. Except as otherwise provided in NRS 407.0765, any amount of fees collected pursuant to paragraphs (d) and (e) of subsection 1 or subsection 2 of NRS 407.065 in a calendar year, which is in excess of the amounts authorized for expenditure from that revenue source in the Divisions budget for the fiscal year beginning in that calendar year, must be deposited in the Account. The interest and income earned on the money in the Account, after deducting any applicable charges, must be credited to the Account.
2. The money in the Account does not lapse to the State General Fund at the end of any fiscal year.
3. The money deposited in the Account pursuant to subsection 1 must only be used to repair and maintain state parks, monuments and recreational areas.
4. Before the Administrator may expend money pursuant to subsection 3:
(a) For emergency repairs and projects with a cost of less than $25,000, he must first receive the approval of the Director.
(b) For projects with a cost of $25,000 or more, other than emergency repairs, he must first receive the approval of the Director and of the Interim Finance Committee.
Sec. 7. NRS 407.209 is hereby amended to read as follows:
407.209 The Administrator, subject to the approval of the director, shall make no commitment, nor shall he enter into any agreement pursuant to NRS 407.205 [to 407.209, inclusive,] , 407.207 and 407.209 and sections 2 and 3 of this act until he has determined that sufficient funds are available to the Division for meeting the States share, if any, of project costs. It is the legislative intent that, to such extent as may be necessary to assure the proper operation and maintenance of areas and facilities acquired or developed pursuant to any program participated in by this state under NRS 407.205 [to 407.209, inclusive,] , 407.207 and 407.209 and sections 2 and 3 of this act such areas and facilities [shall] must be publicly maintained for outdoor recreation purposes. The Administrator, subject to the approval of the Director, may enter into and administer agreements with the United States or any appropriate agency thereof for planning, acquisition and development projects involving participating federal aid funds on behalf of any political subdivision or subdivisions of this state if such subdivision or subdivisions give necessary assurances to the Division that they have available sufficient funds to meet their shares, if any, of the cost of the project and that the acquired or developed areas will be operated and maintained at the expense of such subdivision or subdivisions for public outdoor recreation use.
κ2003 Statutes of Nevada, Page 3224 (CHAPTER 490, SB 144)κ
Director, may enter into and administer agreements with the United States or any appropriate agency thereof for planning, acquisition and development projects involving participating federal aid funds on behalf of any political subdivision or subdivisions of this state if such subdivision or subdivisions give necessary assurances to the Division that they have available sufficient funds to meet their shares, if any, of the cost of the project and that the acquired or developed areas will be operated and maintained at the expense of such subdivision or subdivisions for public outdoor recreation use.
Sec. 8. Notwithstanding the provisions of chapter 6, Statutes of Nevada 2001, Special Session, from the $20,000,000 in general obligation bonds allocated to the State Department of Conservation and Natural Resources to be administered by the Division of State Lands pursuant to subparagraph (5) of paragraph (a) of subsection 7 of section 2 of that act:
1. The sum of $150,000 must be allocated to Virginia City for distribution to the Comstock Cemetery Foundation for restoration of historic Virginia City cemetery if a commitment for at least a 100 percent matching amount of money from one or more federal grants is obtained for the cost of the restoration project. This allocation must be made from the first bonds sold pursuant to chapter 6 of Statutes of Nevada 2001, Special Session.
2. The sum of $136,000 must be allocated to Lincoln County for the restoration of the historic fairgrounds in Panaca, Nevada, if a commitment is received from Lincoln County to match the allocated money through the provision of all labor for the restoration project. This allocation must be made from the second group of bonds sold pursuant to chapter 6 of Statutes of Nevada 2001, Special Session.
Sec. 9. This act becomes effective upon passage and approval.
________
κ2003 Statutes of Nevada, Page 3225κ
Assembly Bill No. 493Committee on Commerce and Labor
CHAPTER 491
AN ACT relating to state financial administration; providing that certain money collected by the Commissioner of Financial Institutions and the Division of Financial Institutions of the Department of Business and Industry must be deposited in the State Treasury and accounted for separately in the State General Fund; providing that the money deposited in the State Treasury by the Commissioner and the Division and accounted for separately in the State General Fund must be used to carry out the programs and pay for the expenses of the Commissioner and the Division; providing that the Commissioner shall collect an assessment from certain financial institutions for the purpose of recovering the cost to the Commissioner for legal services provided by the Attorney General to the Commissioner and the Division; and providing other matters properly relating thereto.
[Approved: June 11, 2003]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 658 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.
Sec. 2. 1. Except as otherwise provided by law, any money appropriated to the Commissioner or the Division and any money collected by the Commissioner or Division pursuant to law:
(a) Must be deposited in the State Treasury and accounted for separately in the State General Fund; and
(b) May only be used to:
(1) Carry out the programs and laws administered by the Commissioner and the Division; and
(2) Pay the expenses related to the operations of the Commissioner and the Division.
2. Except as otherwise provided by law, any money that remains in the account at the end of the fiscal year, does not revert to the State General Fund, and the balance of the account must be carried forward to the next fiscal year.
3. The Commissioner shall administer the account. Any interest or income earned on the money in the account must be credited to the account, after deducting any applicable charges. Any claims against the account must be paid as other claims against the State are paid.
Sec. 3. 1. On a quarterly or other regular basis, the Commissioner shall collect an assessment pursuant to this section from each:
(a) Check-cashing service or deferred deposit service that is supervised pursuant to chapter 604 of NRS;
(b) Escrow agent that is supervised pursuant to chapter 645A of NRS;
(c) Mortgage broker that is supervised pursuant to chapter 645B of NRS;
κ2003 Statutes of Nevada, Page 3226 (CHAPTER 491, AB 493)κ
(d) Mortgage company that is supervised pursuant to chapter 645E of NRS;
(e) Collection agency that is supervised pursuant to chapter 649 of NRS;
(f) Bank that is supervised pursuant to chapters 657 to 668, inclusive, of NRS;
(g) Trust company that is supervised pursuant to chapter 669 of NRS;
(h) Development corporation that is supervised pursuant to chapter 670 of NRS;
(i) Corporation for economic revitalization and diversification that is supervised pursuant to chapter 670A of NRS;
(j) Person engaged in the business of selling or issuing checks or of receiving for transmission or transmitting money or credits that is supervised pursuant to chapter 671 of NRS;
(k) Savings and loan association that is supervised pursuant to chapter 673 of NRS;
(l) Person engaged in the business of lending that is supervised pursuant to chapter 675 of NRS;
(m) Person engaged in the business of debt adjusting that is supervised pursuant to chapter 676 of NRS;
(n) Thrift company that is supervised pursuant to chapter 677 of NRS; and
(o) Credit union that is supervised pursuant to chapter 678 of NRS.
2. The Commissioner shall determine the total amount of all assessments to be collected from the entities identified in subsection 1, but that amount must not exceed the amount necessary to recover the cost of legal services provided by the Attorney General to the Commissioner and to the Division. The total amount of all assessments collected must be reduced by any amounts collected by the Commissioner from an entity for the recovery of the costs of legal services provided by the Attorney General in a specific case.
3. The Commissioner shall collect from each entity identified in subsection 1 an assessment that is based on:
(a) A portion of the total amount of all assessments as determined pursuant to subsection 2, such that the assessment collected from an entity identified in subsection 1 shall bear the same relation to the total amount of all assessments as the total assets of that entity bear to the total of all assets of all entities identified in subsection 1; or
(b) Any other reasonable basis adopted by the Commissioner.
4. The assessment required by this section is in addition to any other assessment, fee or cost required by law to be paid by an entity identified in subsection 1.
5. Money collected by the Commissioner pursuant to this section must be deposited in the State Treasury pursuant to the provisions of section 2 of this act.
Sec. 4. (Deleted by amendment.)
Sec. 5. NRS 658.096 is hereby amended to read as follows:
658.096 1. The Commissioner shall charge and collect the following fees in connection with his official duties:
(a) For licensing of state banks:
(1) A fee of $200 for each parent bank, payable on June 30 of each year.
κ2003 Statutes of Nevada, Page 3227 (CHAPTER 491, AB 493)κ
(2) A fee of $100 for each branch bank or trust office, payable on June 30 of each year.
The fees must accompany the application for renewal of the license. A penalty of 10 percent of the fee must be charged for each month or part of a month that the fees are not paid after June 30 of each year.
(b) For applications for new branch banks or trust offices, a nonrefundable fee of $200 for the application and survey, to be paid by the applicant at the time of making the application. The applicant must also pay such additional expenses incurred in the process of investigation as the Commissioner deems necessary. All money received by the Commissioner pursuant to this paragraph must be placed in the Investigative Account created by NRS 232.545.
(c) For examinations and the examination of trust departments of state banks or trust offices, a fee for conducting the examination and for preparing and typing the report of the examination at the rate established pursuant to NRS 658.101.
2. Except as otherwise provided in paragraph (b) of subsection 1, all money collected pursuant to this section must be [paid into] deposited in the State [General Fund.] Treasury pursuant to the provisions of section 2 of this act.
3. As used in this section, trust office has the meaning ascribed to it in subsection 4 of NRS 662.239.
Sec. 6. NRS 658.145 is hereby amended to read as follows:
658.145 1. The Commissioner may offer, under such conditions as he may deem proper, rewards not to exceed the sum of $500 in any one case for the arrest and conviction of any officer, director, agent or employee of any bank charged with violating any of the laws of this state relating to banks and banking for which a criminal penalty is provided, or for the arrest and conviction of any person charged with stealing, with or without force, any money, property or thing of value of any bank.
2. The [State Treasurer] Commissioner shall pay out of the money deposited to the State [General Fund] Treasury pursuant to the provisions of section 2 of this act all such rewards . [when they are approved by the State Board of Examiners in the usual manner for allowing other claims against the State.]
Sec. 7. NRS 669.190 is hereby amended to read as follows:
669.190 1. The initial fee to be paid for a trust company license must be in proportion to the initial stockholders equity of the trust company as follows:
(a) A trust company with an initial stockholders equity of not less than $300,000 but not more than $500,000 must pay a license fee of $500.
(b) A trust company with an initial stockholders equity of more than $500,000 but not more than $1,000,000 must pay a license fee of $750.
(c) A trust company with an initial stockholders equity of more than $1,000,000 must pay a license fee of $1,000.
2. In addition, every trust company must pay an initial license fee of $100 for each branch office that is authorized by the Commissioner.
3. Thereafter, every trust company must pay annually on or before April 1 of each year a license fee which must be in proportion to its existing stockholders equity as follows:
(a) A trust company with an existing stockholders equity of not less than $300,000 but not more than $500,000 must pay a license fee of $500.
κ2003 Statutes of Nevada, Page 3228 (CHAPTER 491, AB 493)κ
(b) A trust company with an existing stockholders equity of more than $500,000 but not more than $1,000,000 must pay a license fee of $750.
(c) A trust company with an existing stockholders equity of more than $1,000,000 must pay a license fee of $1,000.
4. All money collected under the provisions of this section must be [paid into] deposited in the State [General Fund and the State Treasurer shall issue a receipt therefor.] Treasury pursuant to the provisions of section 2 of this act.
Sec. 8. NRS 669.250 is hereby amended to read as follows:
669.250 1. For each examination of a trust companys books and records required or authorized under this chapter, the Commissioner shall charge and collect from the trust company a fee for conducting the examination and in preparing and typing the report of the examination at the rate established pursuant to NRS 658.101.
2. All money collected under this section must be [paid into] deposited in the State [General Fund.] Treasury pursuant to the provisions of section 2 of this act.
3. The Commissioner shall examine a licensee as often as he deems necessary.
Sec. 9. NRS 670.310 is hereby amended to read as follows:
670.310 Except as otherwise provided in NRS 670.115, all money collected pursuant to the provisions of this chapter must be [paid into] deposited in the State [General Fund] Treasury pursuant to the provisions of section 2 of this act.
Sec. 10. NRS 671.070 is hereby amended to read as follows:
671.070 1. A license issued pursuant to this chapter expires on June 30 of the year following its issuance and thereafter expires on June 30 of each year, unless it is earlier surrendered, suspended or revoked.
2. The license may be renewed from year to year upon the approval of the Commissioner if the licensee files an application conforming to the requirements for an initial application at least 60 days before the expiration of his current license.
3. An application for the renewal of the license must be accompanied by a fee of $200. No investigation fee may be charged for the renewal of the license. If the application or fee for renewal is not filed within the required time, the Commissioner may renew the expired license upon receipt of the application and fee for renewal, and a fee of $200 for late renewal.
4. All fees collected pursuant to this section must be deposited in the State Treasury [for credit to the State General Fund.] pursuant to the provisions of section 2 of this act.
Sec. 11. (Deleted by amendment.)
Sec. 12. NRS 645A.040 is hereby amended to read as follows:
645A.040 1. Every license issued pursuant to the provisions of this chapter expires on July 1 of each year if it is not renewed. A license may be renewed by filing an application for renewal and paying the annual fee for the succeeding year.
2. The fees for the issuance or renewal of a license for an escrow agency are:
(a) For filing an application for an initial license, $500 for the principal office and $100 for each branch office. All money received by the Commissioner pursuant to this paragraph must be placed in the Investigative Account created by NRS 232.545.
κ2003 Statutes of Nevada, Page 3229 (CHAPTER 491, AB 493)κ
(b) If the license is approved for issuance, $200 for the principal office and $100 for each branch office. The fee must be paid before issuance of the license.
(c) For filing an application for renewal, $200 for the principal office and $100 for each branch office.
3. The fees for the issuance or renewal of a license for an escrow agent are:
(a) For filing an application for an initial license or for the renewal of a license, $100.
(b) If a license is approved for issuance or renewal, $25. The fee must be paid before the issuance or renewal of the license.
4. If a licensee fails to pay the fee for the annual renewal of his license before its expiration, his license may be renewed only upon the payment of a fee 1 1/2 times the amount otherwise required for renewal. A license may be renewed pursuant to this subsection only if all the fees are paid within 1 year after the date on which the license expired.
5. In addition to the other fees set forth in this section, each applicant or licensee shall pay:
(a) For filing an application for a duplicate copy of any license, upon satisfactory showing of its loss, $10.
(b) For filing any change of information contained in the application, $10.
(c) For each change of association with an escrow agency, $25.
6. Except as otherwise provided in this chapter, all fees received pursuant to this chapter must be deposited in the State Treasury [for credit to the State General Fund.] pursuant to the provisions of section 2 of this act.
Sec. 13. NRS 645B.050 is hereby amended to read as follows:
645B.050 1. A license issued pursuant to this chapter expires each year on June 30, unless it is renewed. To renew a license, the licensee must submit to the Commissioner on or before June 30 of each year:
(a) An application for renewal;
(b) The fee required to renew the license pursuant to this section; and
(c) The information required pursuant to NRS 645B.051.
2. If the licensee fails to submit any item required pursuant to subsection 1 to the Commissioner on or before June 30 of any year, the license is cancelled. The Commissioner may reinstate a cancelled license if the licensee submits to the Commissioner:
(a) An application for renewal;
(b) The fee required to renew the license pursuant to this section;
(c) The information required pursuant to NRS 645B.051; and
(d) Except as otherwise provided in this section, a reinstatement fee of $200.
3. Except as otherwise provided in NRS 645B.016, a certificate of exemption issued pursuant to this chapter expires each year on December 31, unless it is renewed. To renew a certificate of exemption, a person must submit to the Commissioner on or before December 31 of each year:
(a) An application for renewal that includes satisfactory proof that the person meets the requirements for an exemption from the provisions of this chapter; and
(b) The fee required to renew the certificate of exemption.
4. If the person fails to submit any item required pursuant to subsection 3 to the Commissioner on or before December 31 of any year, the certificate of exemption is cancelled.
κ2003 Statutes of Nevada, Page 3230 (CHAPTER 491, AB 493)κ
of exemption is cancelled. Except as otherwise provided in NRS 645B.016, the Commissioner may reinstate a cancelled certificate of exemption if the person submits to the Commissioner:
(a) An application for renewal that includes satisfactory proof that the person meets the requirements for an exemption from the provisions of this chapter;
(b) The fee required to renew the certificate of exemption; and
(c) Except as otherwise provided in this section, a reinstatement fee of $100.
5. Except as otherwise provided in this section, a person must pay the following fees to apply for, to be issued or to renew a license as a mortgage broker pursuant to this chapter:
(a) To file an original application for a license, $1,500 for the principal office and $40 for each branch office. The person must also pay such additional expenses incurred in the process of investigation as the Commissioner deems necessary. All money received by the Commissioner pursuant to this paragraph must be placed in the Investigative Account created by NRS 232.545.
(b) To be issued a license, $1,000 for the principal office and $60 for each branch office.
(c) To renew a license, $500 for the principal office and $100 for each branch office.
6. Except as otherwise provided in this section, a person must pay the following fees to apply for or to renew a certificate of exemption pursuant to this chapter:
(a) To file an application for a certificate of exemption, $200.
(b) To renew a certificate of exemption, $100.
7. To be issued a duplicate copy of any license or certificate of exemption, a person must make a satisfactory showing of its loss and pay a fee of $10.
8. Except as otherwise provided in this chapter, all fees received pursuant to this chapter must be deposited in the State Treasury [for credit to the State General Fund.] pursuant to the provisions of section 2 of this act.
9. The Commissioner may, by regulation, increase any fee set forth in this section if the Commissioner determines that such an increase is necessary for the Commissioner to carry out his duties pursuant to this chapter. The amount of any increase in a fee pursuant to this subsection must not exceed the amount determined to be necessary for the Commissioner to carry out his duties pursuant to this chapter.
Sec. 14. NRS 645E.280 is hereby amended to read as follows:
645E.280 1. A license issued to a mortgage company pursuant to this chapter expires each year on December 31, unless it is renewed. To renew a license, the licensee must submit to the Commissioner on or before December 31 of each year:
(a) An application for renewal that complies with the requirements of this chapter; and
(b) The fee required to renew the license pursuant to this section.
2. If the licensee fails to submit any item required pursuant to subsection 1 to the Commissioner on or before December 31 of any year, the license is cancelled. The Commissioner may reinstate a cancelled license if the licensee submits to the Commissioner:
κ2003 Statutes of Nevada, Page 3231 (CHAPTER 491, AB 493)κ
(a) An application for renewal that complies with the requirements of this chapter;
(b) The fee required to renew the license pursuant to this section; and
(c) A reinstatement fee of $200.
3. Except as otherwise provided in NRS 645E.160, a certificate of exemption issued pursuant to this chapter expires each year on December 31, unless it is renewed. To renew a certificate of exemption, a person must submit to the Commissioner on or before December 31 of each year:
(a) An application for renewal that complies with the requirements of this chapter; and
(b) The fee required to renew the certificate of exemption.
4. If the person fails to submit any item required pursuant to subsection 3 to the Commissioner on or before December 31 of any year, the certificate of exemption is cancelled. Except as otherwise provided in NRS 645E.160, the Commissioner may reinstate a cancelled certificate of exemption if the person submits to the Commissioner:
(a) An application for renewal that complies with the requirements of this chapter;
(b) The fee required to renew the certificate of exemption; and
(c) A reinstatement fee of $100.
5. A person must pay the following fees to apply for, to be issued or to renew a license as a mortgage company pursuant to this chapter:
(a) To file an original application for a license, $1,500 for the principal office and $40 for each branch office. The person must also pay such additional expenses incurred in the process of investigation as the Commissioner deems necessary. All money received by the Commissioner pursuant to this paragraph must be placed in the Investigative Account created by NRS 232.545.
(b) To be issued a license, $1,000 for the principal office and $60 for each branch office.
(c) To renew a license, $500 for the principal office and $100 for each branch office.
6. A person must pay the following fees to apply for or to renew a certificate of exemption pursuant to this chapter:
(a) To file an application for a certificate of exemption, $200.
(b) To renew a certificate of exemption, $100.
7. To be issued a duplicate copy of any license or certificate of exemption, a person must make a satisfactory showing of its loss and pay a fee of $10.
8. Except as otherwise provided in this chapter, all fees received pursuant to this chapter must be deposited in the State Treasury [for credit to the State General Fund.] pursuant to the provisions of section 2 of this act.
Sec. 15. NRS 649.295 is hereby amended to read as follows:
649.295 1. A nonrefundable fee of $250 for the application and survey must accompany each new application for a license as a collection agency. The applicant shall also pay such additional expenses incurred in the process of investigation as the Commissioner deems necessary. All money received by the Commissioner pursuant to this subsection must be placed in the Investigative Account created by NRS 232.545.
2. A fee of not less than $100 nor more than $300, prorated on the basis of the licensing year as provided by the Commissioner, must be charged for each original license issued.
κ2003 Statutes of Nevada, Page 3232 (CHAPTER 491, AB 493)κ
each original license issued. A fee of $200 must be charged for each annual renewal of a license.
3. A fee of $10 must be charged for each duplicate license or license for a transfer of location issued.
4. A nonrefundable investigation fee of $75 must accompany each application for a managers certificate unless the applicant is the holder of or an applicant for a license as a collection agency.
5. A fee of $20 must be charged for each managers certificate issued and for each annual renewal of such a certificate.
6. A fee of $30 must be charged for the reinstatement of a managers certificate.
7. A fee of $5 must be charged for each day an application for the renewal of a license or certificate, or a required report, is filed late, unless the fee or portion thereof is excused by the Commissioner for good cause shown.
8. A nonrefundable fee of $125 for the application and an examination must accompany each application for a permit to operate a branch office of a licensed collection agency. A fee of $100 must be charged for each annual renewal of such a permit.
9. For each examination the Commissioner shall charge and collect from the licensee a fee for conducting the examination and preparing and typing the report of the examination at the rate established pursuant to NRS 658.101. Failure to pay the fee within 30 days after receipt of the bill is a ground for revoking the collection agencys license.
10. Except as otherwise provided in subsection 1, all money received by the Commissioner pursuant to this chapter must be deposited in the State Treasury [for credit to the State General Fund.] pursuant to the provisions of section 2 of this act.
Sec. 16. NRS 673.060 is hereby amended to read as follows:
673.060 Except as otherwise provided in NRS 673.080, 673.112 and 673.595:
1. All fees, charges for expenses, assessments and other money collected under the provisions of this chapter from foreign and domestic associations, companies and corporations governed by this chapter must be [paid into the State General Fund.] deposited in the State Treasury pursuant to the provisions of section 2 of this act.
2. The compensation provided for by this chapter and all expenses incurred under this chapter must be paid from the money deposited in the State [General Fund.] Treasury pursuant to the provisions of section 2 of this act.
Sec. 17. NRS 673.260 is hereby amended to read as follows:
673.260 1. The license mentioned in NRS 673.250 authorizes the company, association or corporation to whom it is issued to sell its approved securities and contracts within this state for the remainder of the fiscal year ending on June 30 next succeeding. Each license is renewable, under like restrictions, annually thereafter.
2. For the issuing of any license provided for in NRS 673.250 and for any renewal thereof, the fee of the Commissioner is:
(a) For each home office, $200.
(b) For each branch office, $100.
3. The fees must accompany the license renewal application. A penalty of 10 percent of the fee payable must be charged for each month or part thereof that the fees are not paid after June 30 of each year.
κ2003 Statutes of Nevada, Page 3233 (CHAPTER 491, AB 493)κ
4. All sums so received by the Commissioner must be [forthwith delivered to the State Treasurer and must be paid into] deposited in the State [General Fund.] Treasury pursuant to the provisions of section 2 of this act.
Sec. 18. NRS 673.270 is hereby amended to read as follows:
673.270 1. No person may, as a soliciting agent, soliciting representative or employee of any foreign or domestic company, association or corporation, or in any other capacity, sell or solicit sales for any securities such as investment certificates or savings accounts or contract for the sale of securities until he is first licensed as a salesman or solicitor for sales of those securities by the Commissioner.
2. No person may be licensed for a period of more than 1 year, and he may not be licensed until he has first satisfied the Commissioner as to his personal integrity.
3. For the issuing of any license provided for in this section and for any renewal thereof, the fee of the Commissioner is $5. All sums so received by the Commissioner must be [delivered to the State Treasurer and must be paid into] deposited in the State [General Fund.] Treasury pursuant to the provisions of section 2 of this act.
4. Tellers or other employees of an insured savings and loan association are exempt from the licensing requirements unless their employment entails soliciting sales outside their respective offices as commission salesmen.
Sec. 19. NRS 673.318 is hereby amended to read as follows:
673.318 Every association shall appraise each parcel of real estate at the time of acquisition thereof. The report of each appraisal must be submitted in writing to the board of directors and must be kept in the records of the association. The Commissioner may require the appraisal of real estate securing loans by an appraiser selected by the Commissioner. The association whose securities are appraised under this section shall pay the expense of the appraisal to the Commissioner upon demand. Money so received must be [paid into] deposited in the State [General Fund.] Treasury pursuant to the provisions of section 2 of this act. Copies of appraisals must be furnished to the association.
Sec. 20. NRS 673.430 is hereby amended to read as follows:
673.430 1. Each association doing business in this state shall file annually with the Commissioner on or before March 1, a sworn statement in two sections.
2. One section of the annual report must contain, in such form and detail as the Commissioner may prescribe, the following:
(a) The amount of authorized capital by classes and the par value of each class of stock.
(b) A statement of its assets, liabilities and capital accounts as of the immediately preceding December 31.
(c) Any other facts which the Commissioner requires.
This section must be furnished in duplicate, one certified copy to be returned for publication at least two times in a newspaper having a general circulation in each county in which the association maintains an office. Publication must be completed on or before May 1, and proof of publication must be filed in the office of the Commissioner.
3. One section of the annual report must contain such other information as the Commissioner may require to be furnished. This section need not be published and must be treated as confidential by the Commissioner.
κ2003 Statutes of Nevada, Page 3234 (CHAPTER 491, AB 493)κ
4. The Commissioner may impose and collect a penalty of $5 for each day the annual report is overdue, up to a maximum of $500. Every association shall pay to the Commissioner for supervision and examination a fee based on the rate established pursuant to NRS 658.101.
5. All sums so received by the Commissioner must be [delivered to the State Treasurer and paid into] deposited in the State [General Fund.] Treasury pursuant to the provisions of section 2 of this act.
Sec. 21. NRS 673.460 is hereby amended to read as follows:
673.460 1. Whenever in connection with an examination it is necessary or expedient that the Commissioner or his deputy, or both, leave this state, there must be assessed against the organization under examination a fee of $25 per day for each person while without the State in connection with an examination, together with all actual and necessary expenses.
2. The fee charged must be remitted to the Commissioner, who shall [deliver it to the State Treasurer. The fees shall be paid into] deposit the fees in the State [General Fund.] Treasury pursuant to the provisions of section 2 of this act.
Sec. 22. NRS 675.160 is hereby amended to read as follows:
675.160 Except as otherwise provided in NRS 675.100, all fees and charges collected under the provisions of this chapter must be [paid into] deposited in the State [General Fund, and the State Treasurer shall issue his receipt therefor.] Treasury pursuant to the provisions of section 2 of this act.
Sec. 23. NRS 675.400 is hereby amended to read as follows:
675.400 1. At least once each year, the Commissioner or his authorized representatives shall make an examination of the place of business of each licensee and of the loans, transactions, books, papers and records of the licensee so far as they pertain to the business licensed under this chapter.
2. For each examination the Commissioner shall charge and collect from the licensee a fee for conducting the examination and preparing and typing the report of the examination at the rate established pursuant to NRS 658.101.
3. All money collected by the Commissioner pursuant to subsection 2 must be deposited in the State [General Fund.] Treasury pursuant to the provisions of section 2 of this act.
Sec. 24. NRS 676.170 is hereby amended to read as follows:
676.170 Except as otherwise provided in NRS 676.130, all fees and charges collected under the provisions of this chapter must be [paid into] deposited in the State [General Fund.] Treasury pursuant to the provisions of section 2 of this act.
Sec. 25. NRS 677.390 is hereby amended to read as follows:
677.390 Except as otherwise provided in NRS 677.160, all fees and charges collected under the provisions of this chapter must be deposited in the State [General Fund.] Treasury pursuant to the provisions of section 2 of this act.
Sec. 26. NRS 678.260 is hereby amended to read as follows:
678.260 The Commissioner shall:
1. Adopt a regulation establishing the minimum surety bond required of credit unions in relation to the amount of property under their control.
2. Adopt a regulation that sets forth the records a credit union must keep and prescribes the period for which those records must be retained.
κ2003 Statutes of Nevada, Page 3235 (CHAPTER 491, AB 493)κ
3. Maintain the original application of every credit union in a permanent file.
4. Maintain for at least 6 years, every report filed by a credit union with the Division of Financial Institutions.
5. Except as otherwise provided in NRS 678.800 and 678.810, deposit all fees, charges for expenses, assessments and other money which is collected pursuant to the provisions of this chapter or any regulation adopted [thereunder,] pursuant thereto in the State Treasury [for credit to the State General Fund.] pursuant to the provisions of section 2 of this act.
6. Prepare copies of articles of incorporation and bylaws consistent with the provisions of this chapter which may be used by persons interested in organizing a credit union.
Secs. 27 and 28. (Deleted by amendment.)
Sec. 29. 1. This act becomes effective upon passage and approval for the purposes of performing any preparatory administrative tasks and adopting any regulations necessary to carry out the provisions of this act and on July 1, 2003, for all other purposes.
2. Sections 12 and 13 of this act expire by limitation on the date on which the provisions of 42 U.S.C. § 666 requiring each state to establish procedures under which the state has authority to withhold or suspend, or to restrict the use of professional, occupational and recreational licenses of persons who:
(a) Have failed to comply with a subpoena or warrant relating to a procedure to determine the paternity of a child or to establish or enforce an obligation for the support of a child; or
(b) Are in arrears in the payment for the support of one or more children,
are repealed by the Congress of the United States.
________
κ2003 Statutes of Nevada, Page 3236κ
Assembly Bill No. 444Committee on Transportation
CHAPTER 492
AN ACT relating to transportation; authorizing vehicles used by the Department of Transportation in the construction, maintenance or repair of highways to be equipped with tail lamps that emit nonflashing blue light under certain circumstances; providing an additional penalty for a violation of certain traffic laws in an area designated as a temporary traffic control zone for construction, maintenance or repair of a highway; requiring prosecution of a failure to comply with signals of flagmen under certain circumstances; exempting certain benches, shelters and stations for passengers of public mass transportation for which a franchise has been granted from certain prohibitions against outdoor advertising; requiring a franchisee to use revenues it receives from such authorized advertising for the repayment of certain financial obligations; extending the prohibition against the driver of a motor vehicle allowing a person to ride upon or within certain portions of the motor vehicle under certain circumstances; providing penalties; and providing other matters properly relating thereto.
[Approved: June 11, 2003]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 484 of NRS is hereby amended by adding thereto a new section to read as follows:
An authorized vehicle used by the Department of Transportation for the construction, maintenance or repair of highways may be equipped with tail lamps that emit nonflashing blue light which may be used:
1. For vehicles that perform construction, maintenance or repair of highways, including, without limitation, vehicles used for the removal of snow, when the vehicle is engaged in such construction, maintenance or repair; and
2. For all other authorized vehicles of the Department of Transportation used in the construction, maintenance or repair of highways:
(a) In an area designated as a temporary traffic control zone in which construction, maintenance or repair of a highway is conducted; and
(b) At a time when the workers who are performing the construction, maintenance or repair of the highway are present.
Sec. 1.5. NRS 484.254 is hereby amended to read as follows:
484.254 1. It is unlawful for a driver of a vehicle to fail or refuse to comply with any signal of an authorized flagman serving in a traffic control capacity in a clearly marked area of highway construction or maintenance.
2. A district attorney shall prosecute all violations of subsection 1 which occur in his jurisdiction and which result in injury to any person performing highway construction or maintenance unless the district attorney has good cause for not prosecuting the violation. In addition to any other penalty, if a driver violates any provision of subsection 1 and the violation results in injury to any person performing highway construction or maintenance, or in damage to property in an amount of not less than $1,000, the driver shall be punished by a fine of not less than $1,000 or more than $2,000, and ordered to perform 120 hours of community service.
κ2003 Statutes of Nevada, Page 3237 (CHAPTER 492, AB 444)κ
violation results in injury to any person performing highway construction or maintenance, or in damage to property in an amount of not less than $1,000, the driver shall be punished by a fine of not less than $1,000 or more than $2,000, and ordered to perform 120 hours of community service.
3. A person who violates any provision of subsection 1 may be subject to the additional penalty set forth in NRS 484.3667.
4. As used in this section, authorized flagman serving in a traffic control capacity means [an] :
(a) An employee of the Department of Transportation or of a contractor performing highway construction or maintenance for the Department of Transportation while he is carrying out the duties of his employment [.] ;
(b) An employee of any other governmental entity or of a contractor performing highway construction or maintenance for the governmental entity while he is carrying out the duties of his employment; or
(c) Any other person employed by a private entity performing highway construction or maintenance while he is carrying out the duties of his employment if the person has satisfactorily completed training as a flagman approved or recognized by the Department of Transportation.
Sec. 2. NRS 484.278 is hereby amended to read as follows:
484.278 1. It is unlawful for any driver to disobey the instructions of any official traffic-control device placed in accordance with the provisions of this chapter, unless at the time otherwise directed by a police officer.
2. No provision of this chapter for which such devices are required [shall] may be enforced against an alleged violator if at the time and place of the alleged violation [such] the device is not in proper position and sufficiently legible to be seen by an ordinarily observant person. Whenever a particular provision of this chapter does not state that such devices are required, [such provision shall be] the provision is effective even though no devices are erected or in place.
3. Whenever devices are placed in position approximately conforming to the requirements of this chapter, such devices [shall be] are presumed to have been so placed by the official act or direction of a public authority, unless the contrary is established by competent evidence.
4. Any device placed pursuant to the provisions of this chapter and purporting to conform to the lawful requirements pertaining to such devices [shall be] is presumed to comply with the requirements of this chapter unless the contrary is established by competent evidence.
5. A person who violates any provision of subsection 1 may be subject to the additional penalty set forth in NRS 484.3667.
Sec. 2.5. NRS 484.287 is hereby amended to read as follows:
484.287 1. It is unlawful for any person to place, maintain or display upon or in view of any highway any unauthorized sign, signal, marking or device which purports to be or is an imitation of or resembles an official traffic-control device or railroad sign or signal, or which attempts to direct the movement of traffic, or which hides from view or interferes with the effectiveness of any such device, sign or signal, and except as otherwise provided in subsection 4, a person shall not place or maintain nor may any public authority permit upon any highway any sign, signal or marking bearing thereon any commercial advertising except on benches and shelters for passengers of public mass transportation for which a franchise has been granted pursuant to NRS 244.187 and 244.188, 268.081 and 268.083 , [or] 269.128 and 269.129 [.] , or on monorail stations.
κ2003 Statutes of Nevada, Page 3238 (CHAPTER 492, AB 444)κ
2. Every such prohibited sign, signal or marking is hereby declared to be a public nuisance, and the proper public authority may remove the same or cause it to be removed without notice.
3. This section does not prohibit the erection upon private property adjacent to highways of signs giving useful directional information and of a type that cannot be mistaken for official traffic-control devices.
4. A person may place and maintain commercial advertising in an airspace above a highway under the conditions specified pursuant to subsection 3 of NRS 405.110, and a public authority may permit commercial advertising that has been placed in an airspace above a highway under the conditions specified pursuant to subsection 3 of NRS 405.110.
5. If a franchisee receives revenues from commercial advertising authorized by subsection 1 and the franchisee is obligated to repay a bond issued by the State of Nevada, the franchisee shall use all revenue generated by the advertising authorized by subsection 1 to meet its obligations to the State of Nevada as set forth in the financing agreement and bond indenture, including, without limitation, the payment of operations and maintenance obligations, the funding of reserves and the payment of debt service. To the extent that any surplus revenue remains after the payment of all such obligations, the surplus revenue must be used solely to repay the bond until the bond is repaid.
6. As used in this section, monorail station means:
(a) A structure for the loading and unloading of passengers from a monorail for which a franchise has been granted pursuant to NRS 705.695 or an agreement has been entered into pursuant to NRS 705.695; and
(b) Any facilities or appurtenances within such a structure.
Sec. 3. NRS 484.289 is hereby amended to read as follows:
484.289 1. A person shall not, without lawful authority, attempt to or alter, deface, injure, knock down or remove any official traffic-control device or any railroad sign or signal or any inscription, shield or insigne thereon, or any other part thereof.
2. A person who violates any provision of this section may be subject to the additional penalty set forth in NRS 484.3667.
Sec. 4. NRS 484.291 is hereby amended to read as follows:
484.291 1. Upon all highways of sufficient width a vehicle [shall] must be driven upon the right half of the highway, except as follows:
[1.] (a) When overtaking and passing another vehicle proceeding in the same direction under the laws governing such movements;
[2.] (b) When the right half of the highway is closed to traffic;
[3.] (c) Upon a highway divided into three lanes for traffic under the laws applicable thereon;
[4.] (d) Upon a highway designated and posted for one-way traffic; or
[5.] (e) When the highway is not of sufficient width.
2. A person who violates any provision of this section may be subject to the additional penalty set forth in NRS 484.3667.
Sec. 5. NRS 484.293 is hereby amended to read as follows:
484.293 1. Drivers of vehicles proceeding in opposite directions shall pass each other keeping to the right, and upon highways having width for not more than one line of traffic in each direction, each driver shall give to the other at least one-half of the paved portion of the highway as nearly as possible.
κ2003 Statutes of Nevada, Page 3239 (CHAPTER 492, AB 444)κ
2. A person who violates any provision of this section may be subject to the additional penalty set forth in NRS 484.3667.
Sec. 6. NRS 484.295 is hereby amended to read as follows:
484.295 1. The driver of a vehicle overtaking another vehicle proceeding in the same direction shall pass to the left thereof at a safe distance and shall not again drive to the right side of the highway until safely clear of the overtaken vehicle.
2. Except when overtaking and passing on the right is permitted, the driver of an overtaken vehicle shall give way to the right in favor of the overtaking vehicle upon observing the overtaking vehicle or hearing a signal. The driver of an overtaken vehicle shall not increase the speed of his vehicle until completely passed by the overtaking vehicle.
3. A person who violates any provision of this section may be subject to the additional penalty set forth in NRS 484.3667.
Sec. 7. NRS 484.297 is hereby amended to read as follows:
484.297 1. The driver of a vehicle may overtake and pass upon the right of another vehicle only under the following conditions:
(a) When the driver of the vehicle overtaken is making or signaling to make a left turn.
(b) Upon a highway with unobstructed pavement, not occupied by parked vehicles, of sufficient width for two or more lines of moving vehicles in each direction.
(c) Upon any highway on which traffic is restricted to one direction of movement, where the highway is free from obstructions and of sufficient width for two or more lines of moving vehicles.
2. The driver of a vehicle may overtake and pass another vehicle upon the right only under conditions permitting such movement in safety.
3. The driver of a vehicle shall not overtake and pass another vehicle upon the right when such movement requires driving off the paved portion of the highway.
4. A person who violates any provision of this section may be subject to the additional penalty set forth in NRS 484.3667.
Sec. 8. NRS 484.299 is hereby amended to read as follows:
484.299 1. A vehicle [shall] must not be driven to the left side of the center of a two-lane, two-directional highway and overtaking and passing another vehicle proceeding in the same direction, unless such left side is clearly visible and is free of oncoming traffic for a sufficient distance ahead to permit such overtaking and passing to be completely made without interfering with the safe operation of any vehicle approaching from the opposite direction or any vehicle overtaken.
2. A vehicle [shall] must not be driven to the left side of the highway at any time:
(a) When approaching the crest of a grade or upon a curve in the highway where the drivers view is obstructed within such distance as to create a hazard in the event another vehicle might approach from the opposite direction.
(b) When approaching within 100 feet or traversing any intersection or railroad grade crossing.
(c) When the view is obstructed upon approaching within 100 feet of any bridge, viaduct or tunnel.
3. Subsection 2 does not apply upon a one-way highway.
κ2003 Statutes of Nevada, Page 3240 (CHAPTER 492, AB 444)κ
4. A person who violates any provision of this section may be subject to the additional penalty set forth in NRS 484.3667.
Sec. 9. NRS 484.301 is hereby amended to read as follows:
484.301 1. The Department of Transportation with respect to highways constructed under the authority of chapter 408 of NRS, and local authorities with respect to highways under their jurisdiction, may determine those zones of highways where overtaking and passing to the left or making a left-hand turn would be hazardous, and may by the erection of official traffic-control devices indicate such zones. When such devices are in place and clearly visible to an ordinarily observant person , every driver of a vehicle shall obey the directions thereof.
2. Except as otherwise provided in subsections 3 and 4, a driver shall not drive on the left side of the highway within such zone or drive across or on the left side of any pavement striping designed to mark such zone throughout its length.
3. A driver may drive across a pavement striping marking such zone to an adjoining highway if he has first given the appropriate turn signal and there will be no impediment to oncoming or following traffic.
4. Except where otherwise provided, a driver may drive across a pavement striping marking such a zone to make a left-hand turn if he has first given the appropriate turn signal in compliance with NRS 484.343, if it is safe and if it would not be an impediment to oncoming or following traffic.
5. A person who violates any provision of this section may be subject to the additional penalty set forth in NRS 484.3667.
Sec. 10. NRS 484.305 is hereby amended to read as follows:
484.305 1. If a highway has two or more clearly marked lanes for traffic traveling in one direction, vehicles must:
(a) Be driven as nearly as practicable entirely within a single lane; and
(b) Not be moved from that lane until the driver has given the appropriate turn signal and ascertained that such movement can be made with safety.
2. Upon a highway which has been divided into three clearly marked lanes a vehicle must not be driven in the extreme left lane at any time. A vehicle on such a highway must not be driven in the center lane except:
(a) When overtaking and passing another vehicle where the highway is clearly visible and the center lane is clear of traffic for a safe distance;
(b) In preparation for a left turn; or
(c) When the center lane is allocated exclusively to traffic moving in the direction in which the vehicle is proceeding and a sign is posted to give notice of such allocation.
3. If a highway has been designed to provide a single center lane to be used only for turning by traffic moving in both directions, the following rules apply:
(a) A vehicle may be driven in the center turn lane only for the purpose of making a left-hand turn.
(b) A vehicle must not travel more than 200 feet in a center turn lane before making a left-hand turn.
4. If a highway has been designed to provide a single right lane to be used only for turning, a vehicle must:
(a) Be driven in the right turn lane only for the purpose of making a right turn; and
κ2003 Statutes of Nevada, Page 3241 (CHAPTER 492, AB 444)κ
(b) While being driven in the right turn lane, not travel through an intersection.
5. A person who violates any provision of this section may be subject to the additional penalty set forth in NRS 484.3667.
Sec. 11. NRS 484.309 is hereby amended to read as follows:
484.309 1. Every vehicle driven upon a divided highway [shall] must be driven only upon the right-hand roadway and [shall] must not be driven over, across or within any dividing space, barrier or section [nor] or make any left turn, semicircular turn or U-turn, except through an opening in the barrier or dividing section or space or at a crossover or intersection established by a public authority.
2. A person who violates any provision of this section may be subject to the additional penalty set forth in NRS 484.3667.
Sec. 12. NRS 484.311 is hereby amended to read as follows:
484.311 1. When official traffic-control devices are erected giving notice thereof, a person shall not drive a vehicle onto or from any controlled-access highway except at those entrances and exits which are indicated by such devices.
2. A person who violates any provision of this section may be subject to the additional penalty set forth in NRS 484.3667.
Sec. 13. NRS 484.335 is hereby amended to read as follows:
484.335 1. Whenever official traffic-control devices are erected indicating that no right or left turn is permitted, it is unlawful for any driver of a vehicle to disobey the directions of any such [sign.] devices.
2. A person who violates any provision of this section may be subject to the additional penalty set forth in NRS 484.3667.
Sec. 14. NRS 484.337 is hereby amended to read as follows:
484.337 1. A U-turn may be made on any road where the turn can be made with safety, except as prohibited by this section and by the provisions of NRS 484.309 and 484.339.
2. If an official traffic-control device indicates that a U-turn is prohibited, the driver shall obey the directions of the device.
3. The driver of a vehicle shall not make a U-turn in a business district, except at an intersection or on a divided highway where an appropriate opening or crossing place exists.
4. Notwithstanding the foregoing provisions of this section, local authorities and the Department of Transportation may prohibit U-turns at any location within their respective jurisdictions.
5. A person who violates any provision of this section may be subject to the additional penalty set forth in NRS 484.3667.
Sec. 15. NRS 484.361 is hereby amended to read as follows:
484.361 1. It is unlawful for any person to drive or operate a vehicle of any kind or character at:
[1.] (a) A rate of speed greater than is reasonable or proper, having due regard for the traffic, surface and width of the highway, the weather and other highway conditions.
[2.] (b) Such a rate of speed as to endanger the life, limb or property of any person.
[3.] (c) A rate of speed greater than that posted by a public authority for the particular portion of highway being traversed.
[4.] (d) In any event, a rate of speed greater than 75 miles per hour.
κ2003 Statutes of Nevada, Page 3242 (CHAPTER 492, AB 444)κ
2. A person who violates any provision of this section may be subject to the additional penalty set forth in NRS 484.3667.
Sec. 16. NRS 484.363 is hereby amended to read as follows:
484.363 1. The fact that the speed of a vehicle is lower than the prescribed limits does not relieve a driver from the duty to decrease speed when approaching and crossing an intersection, when approaching and going around a curve, when approaching a hill crest, when traveling upon any narrow or winding highway, or when special hazards exist or may exist with respect to pedestrians or other traffic, or by reason of weather or other highway conditions, and speed [shall] must be decreased as may be necessary to avoid colliding with any person, vehicle or other conveyance on or entering a highway in compliance with legal requirements and the duty of all persons to use due care.
2. Any person who fails to use due care as required by subsection 1 may be subject to the additional penalty set forth in NRS 484.3667.
Sec. 17. NRS 484.3667 is hereby amended to read as follows:
484.3667 1. Except as otherwise provided in subsection 2, a person who is convicted of a violation of a speed limit [:] , or of NRS 484.254, 484.278, 484.289, 484.291 to 484.301, inclusive, 484.305, 484.309, 484.311, 484.335, 484.337, 484.361, 484.363, 484.3765, 484.377, 484.379, 484.448, 484.453 or 484.479, that occurred:
(a) In an area designated as a temporary traffic control zone in which construction, maintenance or repair of a highway is conducted; and
(b) At a time when the workers who are performing the construction, maintenance or repair of the highway are present, or when the effects of the act may be aggravated because of the condition of the highway caused by construction, maintenance or repair, including, without limitation, reduction in lane width, reduction in the number of lanes, shifting of lanes from the designated alignment and uneven or temporary surfaces, including, without limitation, modifications to road beds, cement-treated bases, chip seals and other similar conditions,
shall be punished by imprisonment or by a fine, or both, for a term or an amount equal to and in addition to the term of imprisonment or amount of the fine, or both, that the court imposes for the primary offense. Any term of imprisonment imposed pursuant to this subsection runs consecutively with the sentence prescribed by the court for the crime. This subsection does not create a separate offense, but provides an additional penalty for the primary offense, whose imposition is contingent upon the finding of the prescribed fact.
2. The [penalty imposed for the primary offense and the] additional penalty imposed pursuant to subsection 1 must not exceed a total of $1,000, 6 months of imprisonment or 120 hours of community service.
3. A governmental entity that designates an area as a temporary traffic control zone in which construction, maintenance or repair of a highway is conducted, or the person with whom the governmental entity contracts to provide such service shall cause to be erected:
(a) A sign located before the beginning of such an area [which states that] stating DOUBLE PENALTIES IN WORK ZONES to indicate a double penalty [will] may be imposed [upon a person who is convicted of violating the speed limit within the temporary traffic control zone;] pursuant to this section;
κ2003 Statutes of Nevada, Page 3243 (CHAPTER 492, AB 444)κ
(b) A sign to mark the beginning of the temporary traffic control zone; and
(c) A sign to mark the end of the temporary traffic control zone.
4. A person who otherwise would be subject to an additional penalty pursuant to this section is not relieved of any criminal liability because signs are not erected as required by subsection 3 if the violation results in injury to any person performing highway construction or maintenance in the temporary traffic control zone or in damage to property in an amount equal to $1,000 or more.
Sec. 18. NRS 484.367 is hereby amended to read as follows:
484.367 1. Except as otherwise provided in subsection 2 and pursuant to the power granted in NRS 269.185, the town board or board of county commissioners may, by ordinance, limit the speed of motor vehicles in any unincorporated town in the county as may be deemed proper.
2. The Department of Transportation may establish the speed limits for motor vehicles on highways within the boundaries of any unincorporated town which are constructed and maintained under the authority granted by chapter 408 of NRS.
3. A person who violates any speed limit established pursuant to this section may be subject to the additional penalty set forth in NRS 484.3667.
Sec. 19. NRS 484.368 is hereby amended to read as follows:
484.368 1. The Department of Transportation may establish the speed limits for motor vehicles on highways which are constructed and maintained by the Department of Transportation under the authority granted to it by chapter 408 of NRS.
2. Except as otherwise provided by federal law, the Department of Transportation may establish a speed limit on such highways not to exceed 75 miles per hour and may establish a lower speed limit:
(a) Where necessary to protect public health and safety.
(b) For trucks, overweight and oversized vehicles, trailers drawn by motor vehicles and buses.
3. A person who violates any speed limit established pursuant to this section may be subject to the additional penalty set forth in NRS 484.3667.
Sec. 20. NRS 484.3765 is hereby amended to read as follows:
484.3765 1. A driver commits an offense of aggressive driving if, during any single, continuous period of driving within the course of 1 mile, the driver does all the following, in any sequence:
(a) Commits one or more acts of speeding in violation of NRS 484.361 or 484.366.
(b) Commits two or more of the following acts, in any combination, or commits any of the following acts more than once:
(1) Failing to obey an official traffic-control device in violation of NRS 484.278.
(2) Overtaking and passing another vehicle upon the right by driving off the paved portion of the highway in violation of NRS 484.297.
(3) Improper or unsafe driving upon a highway that has marked lanes for traffic in violation of NRS 484.305.
(4) Following another vehicle too closely in violation of NRS 484.307.
(5) Failing to yield the right-of-way in violation of any provision of NRS 484.315 to 484.323, inclusive.
κ2003 Statutes of Nevada, Page 3244 (CHAPTER 492, AB 444)κ
(c) Creates an immediate hazard, regardless of its duration, to another vehicle or to another person, whether or not the other person is riding in or upon the vehicle of the driver or any other vehicle.
2. A driver may be prosecuted and convicted of an offense of aggressive driving in violation of subsection 1 whether or not the driver is prosecuted or convicted for committing any of the acts described in paragraphs (a) and (b) of subsection 1.
3. A driver who commits an offense of aggressive driving in violation of subsection 1 is guilty of a misdemeanor. In addition to any other penalty:
(a) For the first offense within 2 years, the court shall order the driver to attend, at his own expense, a course of traffic safety approved by the Department and may issue an order suspending the drivers license of the driver for a period of not more than 30 days.
(b) For a second or subsequent offense within 2 years, the court shall issue an order revoking the drivers license of the driver for a period of 1 year.
4. To determine whether the provisions of paragraph (a) or (b) of subsection 3 apply to one or more offenses of aggressive driving, the court shall use the date on which each offense of aggressive driving was committed.
5. If the driver is already the subject of any other order suspending or revoking his drivers license, the court shall order the additional period of suspension or revocation, as appropriate, to apply consecutively with the previous order.
6. If the court issues an order suspending or revoking the drivers license of the driver pursuant to this section, the court shall require the driver to surrender to the court all drivers licenses then held by the driver. The court shall, within 5 days after issuing the order, forward the drivers licenses and a copy of the order to the Department.
7. If the driver successfully completes a course of traffic safety ordered pursuant to this section, the Department shall cancel three demerit points from his driving record in accordance with NRS 483.475, unless the driver would not otherwise be entitled to have those demerit points cancelled pursuant to the provisions of that section.
8. This section does not preclude the suspension or revocation of the drivers license of the driver pursuant to any other provision of law.
9. A person who violates any provision of subsection 1 may be subject to the additional penalty set forth in NRS 484.3667.
Sec. 21. NRS 484.377 is hereby amended to read as follows:
484.377 1. It is unlawful for a person to:
(a) Drive a vehicle in willful or wanton disregard of the safety of persons or property.
(b) Drive a vehicle in an unauthorized speed contest on a public highway.
A violation of this subsection or subsection 1 of NRS 484.348 constitutes reckless driving.
2. A person who does any act or neglects any duty imposed by law while driving or in actual physical control of any vehicle in willful or wanton disregard of the safety of persons or property, if the act or neglect of duty proximately causes the death of or substantial bodily harm to a person other than himself, is guilty of a category B felony and shall be punished by imprisonment in the state prison for a minimum term of not less than 1 year and a maximum term of not more than 6 years, or by a fine of not more than $5,000, or by both fine and imprisonment.
κ2003 Statutes of Nevada, Page 3245 (CHAPTER 492, AB 444)κ
and a maximum term of not more than 6 years, or by a fine of not more than $5,000, or by both fine and imprisonment.
3. A person who violates any provision of this section may be subject to the additional penalty set forth in NRS 484.3667 unless the person is subject to the penalty provided pursuant to subsection 4 of NRS 484.348.
Sec. 22. NRS 484.379 is hereby amended to read as follows:
484.379 1. It is unlawful for any person who:
(a) Is under the influence of intoxicating liquor;
(b) Has a concentration of alcohol of 0.10 or more in his blood or breath; or
(c) Is found by measurement within 2 hours after driving or being in actual physical control of a vehicle to have a concentration of alcohol of 0.10 or more in his blood or breath,
to drive or be in actual physical control of a vehicle on a highway or on premises to which the public has access.
2. It is unlawful for any person who:
(a) Is under the influence of a controlled substance;
(b) Is under the combined influence of intoxicating liquor and a controlled substance; or
(c) Inhales, ingests, applies or otherwise uses any chemical, poison or organic solvent, or any compound or combination of any of these, to a degree which renders him incapable of safely driving or exercising actual physical control of a vehicle,
to drive or be in actual physical control of a vehicle on a highway or on premises to which the public has access. The fact that any person charged with a violation of this subsection is or has been entitled to use that drug under the laws of this state is not a defense against any charge of violating this subsection.
3. It is unlawful for any person to drive or be in actual physical control of a vehicle on a highway or on premises to which the public has access with an amount of a prohibited substance in his blood or urine that is equal to or greater than:
Prohibited substance Urine Blood
Nanograms Nanograms
per milliliter per milliliter
(a) Amphetamine 500 100
(b) Cocaine 150 50
(c) Cocaine metabolite 150 50
(d) Heroin 2,000 50
(e) Heroin metabolite:
(1) Morphine 2,000 50
(2) 6-monoacetyl morphine 10 10
(f) Lysergic acid diethylamide 25 10
(g) Marijuana 10 2
(h) Marijuana metabolite 15 5
(i) Methamphetamine 500 100
(j) Phencyclidine 25 10
4. If consumption is proven by a preponderance of the evidence, it is an affirmative defense under paragraph (c) of subsection 1 that the defendant consumed a sufficient quantity of alcohol after driving or being in actual physical control of the vehicle, and before his blood or breath was tested, to cause him to have a concentration of alcohol of 0.10 or more in his blood or breath.
κ2003 Statutes of Nevada, Page 3246 (CHAPTER 492, AB 444)κ
consumed a sufficient quantity of alcohol after driving or being in actual physical control of the vehicle, and before his blood or breath was tested, to cause him to have a concentration of alcohol of 0.10 or more in his blood or breath. A defendant who intends to offer this defense at a trial or preliminary hearing must, not less than 14 days before the trial or hearing or at such other time as the court may direct, file and serve on the prosecuting attorney a written notice of that intent.
5. A person who violates any provision of this section may be subject to the additional penalty set forth in NRS 484.3667.
Sec. 23. NRS 484.448 is hereby amended to read as follows:
484.448 1. It is unlawful for a person to drink an alcoholic beverage while he is driving or in actual physical control of a motor vehicle upon a highway.
2. Except as otherwise provided in this subsection, it is unlawful for a person to have an open container of an alcoholic beverage within the passenger area of a motor vehicle while the motor vehicle is upon a highway. This subsection does not apply to a motor vehicle which is designed, maintained or used primarily for the transportation of persons for compensation, or to the living quarters of a house coach or house trailer.
3. A person who violates any provision of this section may be subject to the additional penalty set forth in NRS 484.3667.
4. As used in this section:
(a) Alcoholic beverage has the meaning ascribed to it in NRS 202.015.
(b) Open container means a container which has been opened or the seal of which has been broken.
(c) Passenger area means that area of a vehicle which is designed for the seating of the driver or a passenger.
Sec. 24. NRS 484.453 is hereby amended to read as follows:
484.453 1. A person shall not drive a vehicle when it is so loaded, or when there are in the front seat such number of persons, exceeding three, as to obstruct the view of the driver to the front or sides of the vehicle or as to interfere with the drivers control over the driving mechanism of the vehicle.
2. A passenger in a vehicle shall not ride in such position as to interfere with the drivers view ahead or to the sides, or to interfere with his control over the driving mechanism of the vehicle.
3. Except as otherwise provided in NRS 484.6195, a vehicle must not be operated upon any highway unless the drivers vision through any required glass equipment is normal.
4. A person who violates any provision of this section may be subject to the additional penalty set forth in NRS 484.3667.
Sec. 24.5. NRS 484.473 is hereby amended to read as follows:
484.473 1. Except as otherwise provided in subsections 2 and 4, a driver shall not permit a person, with regard to a motor vehicle being operated on a paved highway , [within a county whose population is 100,000 or more,] to ride upon or within any portion of the vehicle that is primarily designed or intended for carrying goods or other cargo or that is otherwise not designed or intended for the use of passengers, including, without limitation:
(a) Upon the bed of a flatbed truck; or
(b) Within the bed of a pickup truck.
κ2003 Statutes of Nevada, Page 3247 (CHAPTER 492, AB 444)κ
2. A driver may permit a person to ride upon the bed of a flatbed truck or within the bed of a pickup truck if the person is:
(a) Eighteen years of age or older; or
(b) Under 18 years of age and the motor vehicle is:
(1) [Not being operated on a freeway or other road that has two or more lanes for traffic traveling in one direction;
(2)] Being used in the course of farming or ranching; or
[(3)] (2) Being driven in a parade authorized by a local authority.
3. A citation must be issued to a driver who permits a person to ride upon [the bed of a flatbed truck] or within [the bed of a pickup truck] a vehicle in violation of subsection 1. A driver who is cited pursuant to this subsection shall be punished by a fine of at least $35 but not more than $100.
4. The provisions of subsection 1 do not apply to the portion of the bed of a truck that is covered by a camper shell or slide-in camper.
5. A violation of this section:
(a) Is not a moving traffic violation for the purposes of NRS 483.473; and
(b) May not be considered as:
(1) Negligence or causation in a civil action; or
(2) Negligent or reckless driving for the purposes of NRS 484.377.
6. As used in this section:
(a) Camper shell has the meaning ascribed to it in NRS 361.017.
(b) [Freeway has the meaning ascribed to it in NRS 408.060.
(c)] Slide-in camper has the meaning ascribed to it in NRS 482.113.
Sec. 25. NRS 484.479 is hereby amended to read as follows:
484.479 1. It [shall be] is unlawful for any person to remove any barrier or sign stating that a highway is closed to traffic.
2. It [shall be] is unlawful to pass over a highway that is marked, signed or barricaded to indicate that it is closed to traffic. A person who violates any provision of this subsection may be subject to the additional penalty set forth in NRS 484.3667.
Sec. 26. NRS 405.030 is hereby amended to read as follows:
405.030 1. Except as otherwise provided in subsection 3 and except within the limits of any city or town through which the highway may run, and on benches and shelters for passengers of public mass transportation built pursuant to a franchise granted pursuant to NRS 244.187 and 244.188, 268.081 and 268.083 , [or] 269.128 and 269.129 [,] , or on monorail stations, it is unlawful for any person, firm or corporation to paste, paint, print or in any manner whatever place or attach to any building, fence, gate, bridge, rock, tree, board, structure or anything whatever, any written, printed, painted or other outdoor advertisement, bill, notice, sign, picture, card or poster:
(a) Within any right-of-way of any state highway or road which is owned or controlled by the Department of Transportation.
(b) Within 20 feet of the main traveled way of any unimproved highway.
(c) On the property of another within view of any such highway, without the owners written consent.
2. Nothing in this section prevents the posting or maintaining of any notices required by law to be posted or maintained, or the placing or maintaining of highway signs giving directions and distances for the information of the traveling public if the signs are approved by the Department of Transportation.
κ2003 Statutes of Nevada, Page 3248 (CHAPTER 492, AB 444)κ
3. A tenant of a mobile home park may exhibit a political sign within a right-of-way of a state highway or road which is owned or controlled by the Department of Transportation if the tenant exhibits the sign within the boundary of his lot and in accordance with the requirements and limitations set forth in NRS 118B.145. As used in this subsection, the term political sign has the meaning ascribed to it in NRS 118B.145.
4. If a franchisee receives revenues from an advertisement, bill, notice, sign, picture, card or poster authorized by subsection 1 and the franchisee is obligated to repay a bond issued by the State of Nevada, the franchisee shall use all revenue generated by the advertisement, bill, notice, sign, picture, card or poster authorized by subsection 1 to meet its obligations to the State of Nevada as set forth in the financing agreement and bond indenture, including, without limitation, the payment of operations and maintenance obligations, the funding of reserves and the payment of debt service. To the extent that any surplus revenue remains after the payment of all such obligations, the surplus revenue must be used solely to repay the bond, until the bond is repaid.
5. As used in this section, monorail station means:
(a) A structure for the loading and unloading of passengers from a monorail for which a franchise has been granted pursuant to NRS 705.695 or an agreement has been entered into pursuant to NRS 705.695; and
(b) Any facilities or appurtenances within such a structure.
Sec. 27. NRS 405.110 is hereby amended to read as follows:
405.110 1. Except on benches and shelters for passengers of public mass transportation for which a franchise has been granted pursuant to NRS 244.187 and 244.188, 268.081 and 268.083 , [or] 269.128 and 269.129 [,] , or on monorail stations, no advertising signs, signboards, boards or other materials containing advertising matter may:
(a) Except as otherwise provided in subsection 3, be placed upon or over any state highway.
(b) Except as otherwise provided in subsections 3 and 4, be placed within the highway right-of-way.
(c) Except as otherwise provided in subsection 3, be placed upon any bridge or other structure thereon.
(d) Be so situated with respect to any public highway as to obstruct clear vision of an intersecting highway or highways or otherwise so situated as to constitute a hazard upon or prevent the safe use of the state highway.
2. With the permission of the Department of Transportation, counties, towns or cities of this state may place at such points as are designated by the Director of the Department of Transportation suitable signboards advertising the counties, towns or municipalities.
3. A person may place an advertising sign, signboard, board or other material containing advertising matter in any airspace above a highway if:
(a) The Department of Transportation has leased the airspace to the person pursuant to subsection 2 of NRS 408.507, the airspace is over an interstate highway and:
(1) The purpose of the sign, signboard, board or other material is to identify a commercial establishment that is entirely located within the airspace, services rendered, or goods produced or sold upon the commercial establishment or that the facility or property that is located within the airspace is for sale or lease; and
κ2003 Statutes of Nevada, Page 3249 (CHAPTER 492, AB 444)κ
(2) The size, location and design of the sign, signboard, board or other material and the quantity of signs, signboards, boards or other materials have been approved by the Department of Transportation; or
(b) The person owns real property adjacent to an interstate highway and:
(1) The person has dedicated to a public authority a fee or perpetual easement interest in at least 1 acre of the property for the construction or maintenance, or both, of the highway over which he is placing the sign, signboard, board or other material and the person retained the air rights in the airspace above the property for which the person has dedicated the interest;
(2) The sign, signboard, board or other material is located in the airspace for which the person retained the air rights;
(3) The structure that supports the sign, signboard, board or other material is not located on the property for which the person dedicated the fee or easement interest to the public authority, and the public authority determines that the location of the structure does not create a traffic hazard; and
(4) The purpose of the sign, signboard, board or other material is to identify an establishment or activity that is located on the real property adjacent to the interstate highway, or services rendered or goods provided or sold on that property.
4. A tenant of a mobile home park may exhibit a political sign within a right-of-way of a state highway or road which is owned or controlled by the Department of Transportation if the tenant exhibits the sign within the boundary of his lot and in accordance with the requirements and limitations set forth in NRS 118B.145. As used in this subsection, the term political sign has the meaning ascribed to it in NRS 118B.145.
5. If any such sign is placed in violation of this section, it is thereby declared a public nuisance and may be removed forthwith by the Department of Transportation or the public authority.
6. Any person placing any such sign in violation of the provisions of this section shall be punished by a fine of not more than $250, and is also liable in damages for any injury or injuries incurred or for injury to or loss of property sustained by any person by reason of the violation.
7. If a franchisee receives revenues from an advertising sign, signboard, board or other material containing advertising matter authorized by subsection 1 and the franchisee is obligated to repay a bond issued by the State of Nevada, the franchisee shall use all revenue generated by the advertising sign, signboard, board or other material containing advertising matter authorized by subsection 1 to meet its obligations to the State of Nevada as set forth in the financing agreement and bond indenture, including, without limitation, the payment of operations and maintenance obligations, the funding of reserves and the payment of debt service. To the extent that any surplus revenue remains after the payment of all such obligations, the surplus revenue must be used solely to repay the bond until the bond is repaid.
8. As used in this section, monorail station means:
(a) A structure for the loading and unloading of passengers from a monorail for which a franchise has been granted pursuant to NRS 705.695 or an agreement has been entered into pursuant to NRS 705.695; and
(b) Any facilities or appurtenances within such a structure.
________
κ2003 Statutes of Nevada, Page 3250κ
Assembly Bill No. 286Assemblymen Koivisto, McClain, Knecht, Chowning, Ohrenschall, Anderson, Atkinson, Buckley, Carpenter, Claborn, Collins, Conklin, Giunchigliani, Goicoechea, Manendo, McCleary, Oceguera, Parks, Pierce and Williams
CHAPTER 493
AN ACT relating to programs for public personnel; requiring the governing body of a local government to pay a certain portion of the costs of coverage under the Public Employees Benefits Program for persons retired from the service of the local government who join the Program upon retirement; requiring each governing body of a local government to ensure that rates established for coverage for their programs of group insurance are the same for all participants; requiring the Board of the Public Employees Benefits Program to establish rates and coverage for active and retired officers and employees of local governments that participate in the Program and their dependents based on the separate commingled claims experience of those active and retired officers and employees and their dependents; providing a period of open enrollment in which retired public officers and employees of local governments who joined the Public Employees Benefits Program upon retirement may join the group insurance or medical and hospital service of their last public employer; and providing other matters properly relating thereto.
[Approved: June 11, 2003]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 287.023 is hereby amended to read as follows:
287.023 1. Whenever an officer or employee of the governing body of any county, school district, municipal corporation, political subdivision, public corporation or other public agency of the State of Nevada retires under the conditions set forth in NRS 1A.350 or 1A.480, or 286.510 or 286.620 and, at the time of his retirement, was covered or had his dependents covered by any group insurance or medical and hospital service established pursuant to NRS 287.010 [and] or 287.020, the officer or employee has the option upon retirement to cancel or continue any such group insurance or medical and hospital service coverage or join the Public Employees Benefits Program to the extent that such coverage is not provided to him or a dependent by the Health Insurance for the Aged Act, 42 U.S.C. §§ 1395 et seq.
2. A retired person who joins the Public Employees Benefits Program upon retirement pursuant to subsection 1 or continues coverage under the Public Employees Benefits Program shall assume the portion of the premium or [membership] contribution costs for the coverage [continued] which the governing body or the State does not pay on behalf of retired officers or employees. [A person who joins the Public Employees Benefits Program for the first time upon retirement shall assume all costs for the coverage.]
κ2003 Statutes of Nevada, Page 3251 (CHAPTER 493, AB 286)κ
coverage.] A dependent of such a retired person has the option, which may be exercised to the same extent and in the same manner as the retired person, to cancel or continue coverage in effect on the date the retired person dies. The dependent is not required to continue to receive retirement payments from the Public Employees Retirement System to continue coverage.
3. Except as otherwise provided in NRS 287.0235, notice of the selection of the option must be given in writing to the last public employer of the officer or employee within 60 days after the date of retirement or death, as the case may be. If no notice is given by that date, the retired employee and his dependents shall be deemed to have selected the option to cancel the coverage or not to join the Public Employees Benefits Program, as the case may be.
4. The governing body of any county, school district, municipal corporation, political subdivision, public corporation or other public agency of this state [may] :
(a) May pay the cost, or any part of the cost, of group insurance and medical and hospital service coverage established pursuant to NRS 287.010 or 287.020 for persons [eligible for] who continue that coverage pursuant to subsection 1, but it must not pay a greater portion than it does for its current officers and employees.
(b) Shall pay the same portion of the cost of coverage under the Public Employees Benefits Program for persons who join the Program upon retirement pursuant to subsection 1 as the State pays pursuant to subsection 2 of NRS 287.046 for persons retired from state service who have continued to participate in the Program.
5. The governing body of any county, school district, municipal corporation, political subdivision, public corporation or other public agency of this state shall, for the purpose of establishing actuarial data to determine rates and coverage for persons who continue coverage for group insurance or medical and hospital service with the governing body pursuant to subsection 1, commingle the claims experience of those persons with the claims experience of active officers and employees and their dependents who participate in the group insurance or medical and hospital service.
Sec. 2. NRS 287.040 is hereby amended to read as follows:
287.040 The provisions of NRS 287.010 to 287.040, inclusive, do not make it compulsory upon any governing body of any county, school district, municipal corporation, political subdivision, public corporation or other public agency of the State of Nevada to, except as otherwise provided in NRS 287.021, [make any contributions for the payment of] pay any premiums , contributions or other costs for group insurance or medical or hospital services [,] established pursuant to NRS 287.010 or 287.020 or upon any officer or employee of any county, school district, municipal corporation, political subdivision, public corporation or other public agency of this state to accept or join any plan of group insurance or to assign his wages or salary or to authorize deductions from his wages or salary in payment of premiums or contributions therefor.
Sec. 3. NRS 287.043 is hereby amended to read as follows:
287.043 1. The Board shall:
(a) Establish and carry out a program to be known as the Public Employees Benefits Program which:
κ2003 Statutes of Nevada, Page 3252 (CHAPTER 493, AB 286)κ
(1) Must include a program relating to group life, accident or health insurance, or any combination of these; and
(2) May include a program to reduce taxable compensation or other forms of compensation other than deferred compensation,
for the benefit of all state officers and employees and other persons who participate in the Program.
(b) Ensure that the Program is funded on an actuarially sound basis and operated in accordance with sound insurance and business practices.
2. In establishing and carrying out the Program, the Board shall:
(a) For the purpose of establishing actuarial data to determine rates and coverage for active and retired state officers and employees and their dependents, commingle the claims experience of such active and retired officers and employees and their dependents.
(b) Except as otherwise provided in this paragraph, negotiate and contract with the governing body of any public agency enumerated in NRS 287.010 that wishes to obtain group insurance for its active and retired officers [, employees and retired] and employees and their dependents by participation in the Program. The Board shall establish separate rates and coverage for [those officers, employees and retired] active and retired officers and employees of those public agencies and their dependents based on actuarial reports [.] that commingle the claims experience of such active and retired officers and employees and their dependents.
(c) Except as otherwise provided in paragraph (d), provide public notice in writing of any proposed changes in rates or coverage to each participating public employer who may be affected by the changes. Notice must be provided at least 30 days before the effective date of the changes.
(d) If a proposed change is a change in the premium or contribution charged for or coverage of health insurance, provide written notice of the proposed change to all [state officers, employees, retired employees and other persons who participate] participants in the Program . [who may be affected by the proposed change.] The notice must be provided at least 60 days before the date a [state officer, employee, retired employee or other person] participant in the Program is required to select or change his policy of health insurance.
(e) Purchase policies of life, accident or health insurance, or any combination of these, or, if applicable, a program to reduce the amount of taxable compensation pursuant to 26 U.S.C. § 125, from any company qualified to do business in this state or provide similar coverage through a plan of self-insurance established pursuant to NRS 287.0433 for the benefit of all eligible [public officers, employees and retired employees who participate] participants in the Program.
(f) Except as otherwise provided in this title, develop and establish other employee benefits as necessary.
(g) Investigate and approve or disapprove any contract proposed pursuant to NRS 287.0479.
(h) Adopt such regulations and perform such other duties as are necessary to carry out the provisions of NRS 287.0402 to 287.049, inclusive, including, without limitation, the establishment of:
(1) Fees for applications for participation in the Program and for the late payment of premiums or contributions;
(2) Conditions for entry and reentry into the Program by public agencies enumerated in NRS 287.010;
κ2003 Statutes of Nevada, Page 3253 (CHAPTER 493, AB 286)κ
(3) [The levels of participation in the Program required for employees of participating public agencies;
(4)] Procedures by which a group of participants in the Program may leave the Program pursuant to NRS 287.0479 and conditions and procedures for reentry into the Program by those participants; and
[(5)] (4) Specific procedures for the determination of contested claims.
(i) Appoint an independent certified public accountant. The accountant shall:
(1) Provide an annual audit of the Program; and
(2) Report to the Board and the Interim Retirement and Benefits Committee of the Legislature created pursuant to NRS 218.5373.
(j) Appoint an attorney who specializes in employee benefits. The attorney shall:
(1) Perform a biennial review of the Program to determine whether the Program complies with federal and state laws relating to taxes and employee benefits; and
(2) Report to the Board and the Interim Retirement and Benefits Committee of the Legislature created pursuant to NRS 218.5373.
3. The Board shall submit an annual report regarding the administration and operation of the Program to the Director of the Legislative Counsel Bureau not more than 6 months before the Board establishes rates and coverage for [members] participants for the following calendar year. The report must include, without limitation:
(a) The amount paid by the Program in the preceding calendar year for the claims of active and retired [state officers and employees;] participants in the Program; and
(b) The amount paid by the Program in the preceding calendar year for the claims of retired [members of] participants in the Program who were provided coverage for medical or hospital service, or both, by the Health Insurance for the Aged Act, 42 U.S.C. §§ 1395 et seq., or a plan that provides similar coverage.
4. The Board may use any services provided to state agencies and shall use the services of the Purchasing Division of the Department of Administration to establish and carry out the Program.
5. The Board may make recommendations to the Legislature concerning legislation that it deems necessary and appropriate regarding the Program.
6. The State and any other public employers that participate in the Program are not liable for any obligation of the Program other than indemnification of the Board and its employees against liability relating to the administration of the Program, subject to the limitations specified in NRS 41.0349.
7. As used in this section, employee benefits includes any form of compensation provided to a public employee except federal benefits, wages earned, legal holidays, deferred compensation and benefits available pursuant to chapter 286 of NRS.
Sec. 4. NRS 287.0434 is hereby amended to read as follows:
287.0434 The Board may:
1. Use its assets to pay the expenses of health care for its members and covered dependents, to pay its employees salaries and to pay administrative and other expenses.
κ2003 Statutes of Nevada, Page 3254 (CHAPTER 493, AB 286)κ
2. Enter into contracts relating to the administration of the Program, including, without limitation, contracts with licensed administrators and qualified actuaries. Each such contract with a licensed administrator:
(a) Must be submitted to the Commissioner of Insurance not less than 30 days before the date on which the contract is to become effective for approval as to the reasonableness of administrative charges in relation to contributions collected and benefits provided.
(b) Does not become effective unless approved by the Commissioner.
(c) Shall be deemed to be approved if not disapproved by the Commissioner of Insurance within 30 days after its submission.
3. Enter into contracts with physicians, surgeons, hospitals, health maintenance organizations and rehabilitative facilities for medical, surgical and rehabilitative care and the evaluation, treatment and nursing care of members and covered dependents. The Board shall not enter into a contract pursuant to this subsection unless:
(a) Provision is made by the Board to offer all the services specified in the request for proposals, either by a health maintenance organization or through separate action of the Board.
(b) The rates set forth in the contract are based on :
(1) For active and retired state officers and employees and their dependents, the commingled claims experience of such active and retired [state] officers and employees and their dependents; and
(2) For active and retired officers and employees of public agencies enumerated in NRS 287.010 that contract with the Program to obtain group insurance by participation in the Program and their dependents, the commingled claims experience of such active and retired officers and employees and their dependents.
4. Enter into contracts for the services of other experts and specialists as required by the Program.
5. Charge and collect from an insurer, health maintenance organization, organization for dental care or nonprofit medical service corporation, a fee for the actual expenses incurred by the Board, the State or a participating public employer in administering a plan of insurance offered by that insurer, organization or corporation.
Sec. 5. NRS 287.045 is hereby amended to read as follows:
287.045 1. Except as otherwise provided in this section, every officer or employee of the State is eligible to participate in the Program on the first day of the month following the completion of 90 days of full-time employment.
2. Professional employees of the University and Community College System of Nevada who have annual employment contracts are eligible to participate in the Program on:
(a) The effective dates of their respective employment contracts, if those dates are on the first day of a month; or
(b) The first day of the month following the effective dates of their respective employment contracts, if those dates are not on the first day of a month.
3. Every officer or employee who is employed by a participating public agency on a permanent and full-time basis on the date the agency enters into an agreement to participate in the Program, and every officer or employee who commences his employment after that date , is eligible to participate in the Program on the first day of the month following the completion of 90 days of full-time employment.
κ2003 Statutes of Nevada, Page 3255 (CHAPTER 493, AB 286)κ
the Program on the first day of the month following the completion of 90 days of full-time employment.
4. Every Senator and Assemblyman is eligible to participate in the Program on the first day of the month following the 90th day after his initial term of office begins.
5. An officer or employee of the governing body of any county, school district, municipal corporation, political subdivision, public corporation or other public agency of the State of Nevada who retires under the conditions set forth in NRS 1A.350 or 1A.480, or 286.510 or 286.620 and was not participating in the Program at the time of his retirement is eligible to participate in the Program 60 days after notice of the selection to participate is given pursuant to NRS 287.023 or 287.0235. [The Board shall make a separate accounting for these retired persons. For the first year following enrollment, the rates charged must be the full actuarial costs determined by the actuary based upon the expected claims experience with these retired persons. The claims experience of these retired persons must not be commingled with the retired persons who were members of the Program before their retirement, nor with active employees of the State. After the first year following enrollment, the rates charged must be the full actuarial costs determined by the actuary based upon the past claims experience of these retired persons since enrolling.]
6. Notwithstanding the provisions of subsections 1, 3 and 4, if the Board does not, pursuant to NRS 689B.580, elect to exclude the Program from compliance with NRS 689B.340 to 689B.590, inclusive, and if the coverage under the Program is provided by a health maintenance organization authorized to transact insurance in this state pursuant to chapter 695C of NRS, any affiliation period imposed by the Program may not exceed the statutory limit for an affiliation period set forth in NRS 689B.500.
Sec. 6. NRS 287.046 is hereby amended to read as follows:
287.046 1. Except as otherwise provided in subsection 6, any state or other participating officer or employee who elects to participate in the Program may participate, and the department, agency, commission or public agency that employs the officer or employee shall pay the States share of the cost of the premiums or contributions for the Program from money appropriated or authorized as provided in NRS 287.044. Employees who elect to participate in the Program must authorize deductions from their compensation for the payment of premiums or contributions for the Program. Any deduction from the compensation of an employee for the payment of a premium or contribution for health insurance must be based on the actual [cost of providing that health insurance] amount of the premium or contribution after deducting any amount of the premium or contribution which is paid by the department, agency, commission or public agency that employs the employee. [As used in this subsection, actual cost includes any amount which has been approved by the Board and which is paid by any department, agency, commission or public agency of this state for:
(a) A program of supplemental insurance;
(b) Subsidization of premiums for health insurance for dependents and retired participants;
(c) Administrative costs relating to the provision of the health insurance; and
(d) Costs required to maintain adequate reserves.]
κ2003 Statutes of Nevada, Page 3256 (CHAPTER 493, AB 286)κ
2. The Department of Personnel shall pay a percentage of the base amount provided by law for that fiscal year toward the cost of the premiums or contributions for the Program for persons retired from the service of the State who have continued to participate in the Program. Except as otherwise provided in subsection 3, the percentage to be paid must be calculated as follows:
(a) For those persons who retire before January 1, 1994, 100 percent of the base amount provided by law for that fiscal year.
(b) For those persons who retire on or after January 1, 1994, with at least 5 years of state service, 25 percent plus an additional 7.5 percent for each year of service in excess of 5 years to a maximum of 137.5 percent, excluding service purchased pursuant to NRS 1A.310 or 286.300, of the base amount provided by law for that fiscal year.
3. If the amount calculated pursuant to subsection 2 exceeds the actual premium or contribution for the plan of the Program that the retired participant selects, the balance must be credited to the Fund for the Public Employees Benefits Program created pursuant to NRS 287.0435.
4. For the purposes of subsection 2:
(a) Credit for service must be calculated in the manner provided by chapter 286 of NRS.
(b) No proration may be made for a partial year of service.
5. The Department shall agree through the Board with the insurer for billing of remaining premiums or contributions for the retired participant and his dependents to the retired participant and to his dependents who elect to continue coverage under the Program after his death.
6. A Senator or Assemblyman who elects to participate in the Program shall pay the entire premium or contribution for his insurance.
Sec. 7. NRS 287.0475 is hereby amended to read as follows:
287.0475 1. A public officer or employee who has retired pursuant to NRS 1A.350 or 1A.480, or 286.510 or 286.620, or a retirement program provided pursuant to NRS 286.802, or the surviving spouse of such a retired public officer or employee who is deceased may, in any even-numbered year, reinstate any insurance, except life insurance, which was provided to him and his dependents at the time of his retirement pursuant to NRS 287.010 or 287.020 or the program as a public officer or employee by:
(a) Giving written notice of his intent to reinstate the insurance to [the employees] his last public employer not later than January 31, of an even-numbered year;
(b) Accepting the public employers current program or plan of insurance and any subsequent changes thereto; and
(c) Paying any portion of the premiums or contributions of the public employers program or plan of insurance, in the manner set forth in NRS 1A.470 or 286.615, which are due from the date of reinstatement and not paid by the public employer.
The last public employer shall give the insurer notice of the reinstatement no later than March 31, of the year in which the public officer or employee or surviving spouse gives notice of his intent to reinstate the insurance. [The insurer shall approve or disapprove the request for reinstatement within 90 days after the date of the request.]
2. Reinstatement of insurance excludes claims for expenses for any condition for which medical advice, treatment or consultation was rendered within 6 months before reinstatement unless:
κ2003 Statutes of Nevada, Page 3257 (CHAPTER 493, AB 286)κ
(a) The person has not received any medical advice, treatment or consultation for a period of 6 consecutive months after the reinstatement; or
(b) The reinstated insurance has been in effect more than 12 consecutive months.
3. The last public employer of a retired officer or employee who reinstates insurance, except life insurance, which was provided to him and his dependents at the time of his retirement pursuant to NRS 287.010 or 287.020, shall, for the purpose of establishing actuarial data to determine rates and coverage for such persons, commingle the claims experience of such persons with the claims experience of active and retired officers and employees and their dependents who participate in that group insurance or medical and hospital service.
Sec. 8. 1. Notwithstanding the provisions of NRS 287.0475, an officer or employee of a governing body of a county, school district, municipal corporation, political subdivision, public corporation or other public agency of the State of Nevada who joined the Public Employees Benefits Program upon retirement pursuant NRS 287.023 or 287.0235 may join the group insurance or medical and hospital service established by the governing body pursuant to NRS 287.010 or 287.020 to the extent that such coverage is not provided to him or a dependent by the Health Insurance for the Aged Act, 42 U.S.C. §§ 1395 et seq., upon notifying the governing body during the period established pursuant to subsection 2 and assuming the costs of that coverage that are not paid by the governing body.
2. Each governing body shall have a period of open enrollment between September 1, 2003, and January 31, 2004, during which eligible retired persons described in subsection 1 may join the group insurance or medical and hospital service established by the governing body pursuant to NRS 287.010 or 287.020.
3. The governing body shall, on or before September 1, 2003, notify eligible retired persons of the period of open enrollment by:
(a) Mailing a notice regarding the period of open enrollment to all retired persons who are, according to its records, eligible to join its program of group insurance or medical and hospital service;
(b) Posting a notice of the period of open enrollment at its principal office and at least three other separate prominent places, such as a library, community center or courthouse; and
(c) Publicizing the period of open enrollment in any other manner reasonably calculated to inform additional eligible retired persons.
4. For the purpose of establishing actuarial data to determine rates and coverage for persons who enroll in the group insurance or medical and hospital service of a governing body pursuant to this section, the governing body shall commingle the claims experiences of those persons with the claims experience of active and retired officers and employees and their dependents who participate in the group insurance or medical and hospital service.
Sec. 9. The provisions of NRS 354.599 do not apply to any additional expenses of a local government that are related to the provisions of this act.
Sec. 10. 1. This section and section 8 of this act become effective on July 1, 2003.
2. Sections 1 to 7, inclusive, and 9 of this act become effective on October 1, 2003.
________
κ2003 Statutes of Nevada, Page 3258κ
Assembly Bill No. 249Committee on Government Affairs
CHAPTER 494
AN ACT relating to the Public Employees Benefits Program; requiring certain agencies to use the amounts specified by the Public Employees Benefits Program for coverage by the Program for payroll deductions from the salaries of participating officers and employees; requiring the Public Employees Retirement System and each public employer that participates in the Program to provide information to the Program concerning the change in status of an active or retired officer or employee; eliminating the requirement that certain retired persons show evidence of good health as a condition of enrollment in the Program; providing that the subsidy paid by the State of Nevada for coverage by the Program of retirees applies to any retired public officer or employee with state service; limiting that subsidy to years of state service; repealing the prospective expiration of two positions on the Board of the Program; repealing the period of open enrollment for certain retired persons to join the Program; and providing other matters properly relating thereto.
[Approved: June 11, 2003]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 281.129 is hereby amended to read as follows:
281.129 1. Any officer of the State, except the Legislative Fiscal Officer, who disburses money in payment of salaries and wages of officers and employees of the State [may,] :
(a) May, upon written requests of the officer or employee specifying amounts, withhold those amounts and pay them to:
[1.] (1) Charitable organizations;
[2.] (2) Employee credit unions;
[3. Insurers, if the Board of the Public Employees Benefits Program has approved the request;
4.] (3) Except as otherwise provided in paragraph (b), insurers;
(4) The United States for the purchase of savings bonds and similar obligations of the United States; and
[5.] (5) Employee organizations and labor organizations.
(b) Shall, upon receipt of information from the Public Employees Benefits Program specifying amounts of premiums or contributions for coverage by the Program, withhold those amounts from the salaries or wages of officers and employees who participate in the Program and pay those amounts to the Program.
2. The State Controller may adopt regulations necessary to withhold money from the salaries or wages of officers and employees of the executive department.
κ2003 Statutes of Nevada, Page 3259 (CHAPTER 494, AB 249)κ
Sec. 2. Chapter 286 of NRS is hereby amended by adding thereto a new section to read as follows:
The System shall provide to the Public Employees Benefits Program written notice regarding a change in the payment status of a recipient of benefits provided pursuant to this chapter that affects the eligibility of the recipient to participate in the Program. Such notice must be provided by the System to the Program, in a format agreed upon by the System and the Program, within 30 calendar days after the System is notified of the change in payment status.
Sec. 3. NRS 286.615 is hereby amended to read as follows:
286.615 1. In addition to the options provided in NRS 287.023 and subject to the requirements of that section, any officer or employee of [the governing body of any county, school district, municipal corporation, political subdivision, public corporation or other public agency of the State of Nevada,] a governmental entity enumerated in subsection 1 of NRS 287.023, who retires under the conditions set forth in NRS 1A.350, 1A.480, 286.510 or 286.620 and, at the time of his retirement, was covered or had his dependents covered by any group insurance or medical and hospital service established pursuant to NRS 287.010 [and 287.020,] , 287.020 or paragraph (b), (c) or (d) of subsection 1 of NRS 287.025, has the option of having the Executive Officer deduct and pay his premium or contribution for that [group insurance or medical and hospital service] coverage, as well as the amount due or to become due upon any obligation designated by the Board pursuant to subsection 2, from his monthly retirement allowance until:
(a) He notifies the Executive Officer to discontinue the deduction; or
(b) Any of his dependents elect to assume the premium or contribution applicable to the dependents coverage before the death of such a retired person and continue coverage pursuant to NRS 287.023 after his death.
2. The Board may adopt regulations to carry out the provisions of subsection 1, including, but not limited to, regulations governing the number and types of obligations, amounts for the payment of which may be deducted and paid by the Board at the option of the officer or employee pursuant to this section.
3. The Executive Officer, Board and System are not liable for any damages resulting from errors or omissions concerning the deductions and payment of premiums or contributions authorized pursuant to this section unless willful neglect or gross negligence is proven.
Sec. 4. Chapter 287 of NRS is hereby amended by adding thereto the provisions set forth as sections 5, 6 and 7 of this act.
Sec. 5. Participating local governmental agency means a county, school district, municipal corporation, political subdivision, public corporation or other local governmental agency that has an agreement in effect with the Program pursuant to paragraph (a) of subsection 1 of NRS 287.025 to obtain group insurance from the Program.
Sec. 6. Participating public agency means any participating local governmental agency and participating state agency.
Sec. 7. Participating state agency means a department, commission, board, bureau or other agency of the Executive, Legislative and Judicial Branches of State Government, including, without limitation, the Public Employees Retirement System and the University and Community College System of Nevada.
κ2003 Statutes of Nevada, Page 3260 (CHAPTER 494, AB 249)κ
Sec. 8. NRS 287.010 is hereby amended to read as follows:
287.010 1. The governing body of any county, school district, municipal corporation, political subdivision, public corporation or other [public] local governmental agency of the State of Nevada may:
(a) Adopt and carry into effect a system of group life, accident or health insurance, or any combination thereof, for the benefit of its officers and employees, and the dependents of officers and employees who elect to accept the insurance and who, where necessary, have authorized the governing body to make deductions from their compensation for the payment of premiums on the insurance.
(b) Purchase group policies of life, accident or health insurance, or any combination thereof, for the benefit of such officers and employees, and the dependents of such officers and employees, as have authorized the purchase, from insurance companies authorized to transact the business of such insurance in the State of Nevada, and, where necessary, deduct from the compensation of officers and employees the premiums upon insurance and pay the deductions upon the premiums.
(c) Provide group life, accident or health coverage through a self-insurance reserve fund and, where necessary, deduct contributions to the maintenance of the fund from the compensation of officers and employees and pay the deductions into the fund. The money accumulated for this purpose through deductions from the compensation of officers and employees and contributions of the governing body must be maintained as an internal service fund as defined by NRS 354.543. The money must be deposited in a state or national bank or credit union authorized to transact business in the State of Nevada. Any independent administrator of a fund created under this section is subject to the licensing requirements of chapter 683A of NRS, and must be a resident of this state. Any contract with an independent administrator must be approved by the Commissioner of Insurance as to the reasonableness of administrative charges in relation to contributions collected and benefits provided. The provisions of NRS 689B.030 to 689B.050, inclusive, and 689B.575 apply to coverage provided pursuant to this paragraph, except that the provisions of NRS 689B.0359 do not apply to such coverage.
(d) Defray part or all of the cost of maintenance of a self-insurance fund or of the premiums upon insurance. The money for contributions must be budgeted for in accordance with the laws governing the county, school district, municipal corporation, political subdivision, public corporation or other [public] local governmental agency of the State of Nevada.
2. If a school district offers group insurance to its officers and employees pursuant to this section, members of the board of trustees of the school district must not be excluded from participating in the group insurance. If the amount of the deductions from compensation required to pay for the group insurance exceeds the compensation to which a trustee is entitled, the difference must be paid by the trustee.
Sec. 9. NRS 287.020 is hereby amended to read as follows:
287.020 1. The governing body of any county, school district, municipal corporation, political subdivision, public corporation or other [public] local governmental agency of the State of Nevada may adopt and carry into effect a system of medical or hospital service, or a combination thereof, through nonprofit membership corporations defraying the cost of medical service or hospital care, or both, open to participation by all licentiates of the particular class , [(] whether doctors of medicine, doctors of osteopathy or doctors of chiropractic , [)] offering services through such a nonprofit membership corporation, for the benefit of such of their officers and employees, and the dependents of such officers and employees, as may elect to accept membership in such nonprofit corporation and who have authorized the governing body to make deductions from their compensation for the payment of membership dues.
κ2003 Statutes of Nevada, Page 3261 (CHAPTER 494, AB 249)κ
licentiates of the particular class , [(] whether doctors of medicine, doctors of osteopathy or doctors of chiropractic , [)] offering services through such a nonprofit membership corporation, for the benefit of such of their officers and employees, and the dependents of such officers and employees, as may elect to accept membership in such nonprofit corporation and who have authorized the governing body to make deductions from their compensation for the payment of membership dues.
2. A part, not to exceed 50 percent, of the cost of such membership dues may be defrayed by such governing body by contribution. The money for such contributions must be budgeted for in accordance with the laws governing such county, school district, municipal corporation, political subdivision, public corporation or other [public] local governmental agency of the State of Nevada.
3. The power conferred in this section, with respect to the rendition of medical or hospital service, or a combination thereof, is coextensive with the power conferred in NRS 287.010 with respect to insurance companies.
4. If a school district offers coverage for medical service or hospital care, or both, to its officers and employees pursuant to this section, members of the board of trustees of the school district must not be excluded from participating in the coverage. If the amount of the deductions from compensation required to pay for the coverage exceeds the compensation to which a trustee is entitled, the difference must be paid by the trustee.
Sec. 10. NRS 287.021 is hereby amended to read as follows:
287.021 1. Except as otherwise provided in subsection 3, the surviving spouse and any surviving child of a police officer or fireman who was:
(a) Employed by a public agency that had established group insurance or medical and hospital service pursuant to NRS 287.010, 287.020 or paragraph (b), (c) or (d) of subsection 1 of 287.025; and
(b) Killed in the line of duty,
may elect to accept or continue coverage under that group insurance or medical and hospital service if the police officer or fireman was a participant or would have been eligible to participate in the group insurance or medical and hospital service on the date of the death of the police officer or fireman. If the surviving spouse or child elects to accept coverage under the group insurance or medical and hospital service in which the police officer or fireman would have been eligible to participate or to discontinue coverage under the group insurance or medical and hospital service in which the police officer or fireman was a participant, the spouse, child or legal guardian of the child must notify in writing the public agency that employed the police officer or fireman within 60 days after the date of death of the police officer or fireman.
2. The public agency that employed the police officer or fireman shall pay the entire cost of the premiums or contributions for the group insurance or medical and hospital service for the surviving spouse or child who meets the requirements set forth in subsection 1.
3. A surviving spouse is eligible to receive coverage pursuant to this section for the duration of the life of the surviving spouse. A surviving child is eligible to receive coverage pursuant to this section until the child reaches:
(a) The age of 18 years; or
(b) The age of 23 years, if the child is enrolled as a full-time student in an accredited university, college or trade school.
κ2003 Statutes of Nevada, Page 3262 (CHAPTER 494, AB 249)κ
4. As used in this section police officer has the meaning ascribed to it in NRS 617.135.
Sec. 11. NRS 287.023 is hereby amended to read as follows:
287.023 1. Whenever an officer or employee of the governing body of any county, school district, municipal corporation, political subdivision, public corporation or other [public] local governmental agency of the State of Nevada retires under the conditions set forth in NRS 1A.350 or 1A.480, or 286.510 or 286.620 and, at the time of his retirement, was covered or had his dependents covered by any group insurance or medical and hospital service established pursuant to NRS 287.010 [and 287.020,] , 287.020 or paragraph (b), (c) or (d) of subsection 1 of NRS 287.025, the officer or employee has the option upon retirement to cancel or continue any such group insurance or medical and hospital service coverage or join the Public Employees Benefits Program to the extent that such coverage is not provided to him or a dependent by the Health Insurance for the Aged Act, 42 U.S.C. §§ 1395 et seq.
2. A retired person who continues coverage under the Public Employees Benefits Program shall assume the portion of the premium or [membership] contribution costs for the coverage continued which the governing body does not pay on behalf of retired officers or employees. A person who joins the Public Employees Benefits Program for the first time upon retirement shall assume all costs for the coverage. A dependent of such a retired person has the option, which may be exercised to the same extent and in the same manner as the retired person, to cancel or continue coverage in effect on the date the retired person dies. The dependent is not required to continue to receive retirement payments from the Public Employees Retirement System to continue coverage.
3. [Except as otherwise provided in NRS 287.0235, notice] Notice of the selection of the option must be given in writing to the last public employer of the officer or employee within 60 days after the date of retirement or death, as the case may be. If no notice is given by that date, the retired officer or employee and his dependents shall be deemed to have selected the option to cancel the coverage for the group insurance or medical and hospital service established pursuant to NRS 287.010, 287.020 or paragraph (b), (c) or (d) of subsection 1 of NRS 287.025 or not to join the Public Employees Benefits Program, as the case may be.
4. The governing body of any county, school district, municipal corporation, political subdivision, public corporation or other [public] local governmental agency of this state may pay the cost, or any part of the cost, of group insurance and medical and hospital service coverage provided pursuant to NRS 287.010, 287.020 or paragraph (b), (c) or (d) of subsection 1 of NRS 287.025 for persons eligible for that coverage pursuant to subsection 1, but it must not pay a greater portion than it does for its current officers and employees.
Sec. 12. NRS 287.0235 is hereby amended to read as follows:
287.0235 1. Notwithstanding the provisions of NRS 287.023 and 287.045, a person or the surviving spouse of a person who did not, at the time of his retirement pursuant to the conditions set forth in NRS 1A.350 or 1A.480, or 286.510 or 286.620, have the option to participate in the Public Employees Benefits Program may join the Public Employees Benefits Program, to the extent that such coverage is not provided to him or a dependent by the Health Insurance for the Aged Act, 42 U.S.C. §§ 1395 et seq.,
κ2003 Statutes of Nevada, Page 3263 (CHAPTER 494, AB 249)κ
dependent by the Health Insurance for the Aged Act, 42 U.S.C. §§ 1395 et seq., by:
(a) Providing the Public Employees Retirement Board with written notice of his intention to enroll in the Public Employees Benefits Program during a period of open enrollment;
(b) [Showing evidence of his good health as a condition of enrollment;
(c)] Accepting the current plan of insurance of the Public Employees Benefits Program and any subsequent changes to the plan; and
[(d)] (c) Paying any portion of the premiums or contributions for the Program in the manner set forth in NRS 1A.470 or 286.615, which are due after the date of enrollment.
The Public Employees Retirement Board shall, beginning on September 1, 1997, have a biennial period of open enrollment between September 1 of each odd-numbered year and January 31 of each even-numbered year during which eligible retired persons may join the Public Employees Benefits Program pursuant to this section.
2. The Public Employees Retirement Board shall, on or before September 1, 1997, and every September 1 of each odd-numbered year thereafter, notify eligible retired persons described in subsection 1 of the period of open enrollment by:
(a) Mailing a notice regarding the period of open enrollment to all retired persons who are, according to its records, eligible to join the Public Employees Benefits Program;
(b) Posting a notice of the period of open enrollment at its principal office and at least three other separate prominent places, such as a library, community center or courthouse; and
(c) Publicizing the period of open enrollment in any other manner reasonably calculated to inform additional eligible retired persons.
3. The Public Employees Retirement Board shall notify the Board of the Public Employees Benefits Program of the enrollment of any person on or before March 1 immediately following the period of open enrollment. The Board of the Public Employees Benefits Program shall approve or disapprove the request for enrollment within 90 days after receipt of the request. Enrollment shall be deemed to occur on the day the request is approved.
4. Enrollment in the Public Employees Benefits Program pursuant to this section excludes claims for expenses for any condition for which medical advice, treatment or consultation was rendered within 12 months before enrollment unless [:
(a) The person has not received any medical advice, treatment or consultation for a period of 6 consecutive months after enrollment; or
(b) The] the insurance coverage has been in effect more than 12 consecutive months.
Sec. 13. NRS 287.024 is hereby amended to read as follows:
287.024 1. If a member of the board of trustees of a school district who has served at least one full term of office does not seek reelection or is defeated for reelection and, upon the expiration of his term of office, was covered or had his dependents covered by any group insurance or medical and hospital service established pursuant to NRS 287.010 [and 287.020,] , 287.020 or paragraph (b), (c) or (d) of subsection 1 of NRS 287.025, the board member has the option upon the expiration of his term of office to cancel or continue any such group insurance to the extent that such coverage is not provided to him or a dependent by the Health Insurance for the Aged Act, 42 U.S.C. §§ 1395 et seq.
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is not provided to him or a dependent by the Health Insurance for the Aged Act, 42 U.S.C. §§ 1395 et seq. A board member who continues coverage under the program of group insurance shall assume all costs for the continued coverage. A dependent of such a board member has the option, which may be exercised to the same extent and in the same manner as the board member, to cancel or continue coverage in effect on the date the board member dies.
2. Notice of the selection of the option must be given in writing to the board of trustees of the school district within 30 days after the expiration of the board members term of office or the date of his death, as the case may be. If no notice is given by that date, the board member and his dependents shall be deemed to have selected the option to cancel the coverage.
Sec. 14. NRS 287.025 is hereby amended to read as follows:
287.025 1. The governing body of any county, school district, municipal corporation, political subdivision, public corporation or other [public] local governmental agency of the State of Nevada may, in addition to the other powers granted in NRS 287.010 and 287.020:
[1.] (a) Negotiate and contract with [any other such agency or with] the Board of the Public Employees Benefits Program to secure group insurance for its officers and employees and their dependents by participation in [any group insurance plan established or to be established or in] the Public Employees Benefits Program. [Each such contract:
(a) Must be submitted to the Commissioner of Insurance not less than 30 days before the date on which the contract is to become effective for approval.
(b) Does not become effective unless approved by the Commissioner.
(c) Shall be deemed to be approved if not disapproved by the Commissioner of Insurance within 30 days after its submission.
2.] (b) Negotiate and contract with another county, school district, municipal corporation, political subdivision, public corporation or other local governmental agency of the State of Nevada to secure group insurance for its officers and employees and their dependents by participation in any group insurance plan established or to be established by the other local governmental agency.
(c) To secure group health, life or workers compensation insurance for its officers and employees and their dependents, participate as a member of a nonprofit cooperative association or nonprofit corporation that has been established in this state to secure such insurance for its members from an insurer licensed pursuant to the provisions of title 57 of NRS.
[3.] (d) In addition to the provisions of [subsection 2,] paragraph (c), participate as a member of a nonprofit cooperative association or nonprofit corporation that has been established in this state to:
[(a)] (1) Facilitate contractual arrangements for the provision of medical services to its members officers and employees and their dependents and for related administrative services.
[(b)] (2) Procure health-related information and disseminate that information to its members officers and employees and their dependents.
2. Each contract negotiated pursuant to paragraph (a) or (b) of subsection 1:
(a) Must be submitted to the Commissioner of Insurance for approval not less than 30 days before the date on which the contract is to become effective.
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(b) Does not become effective unless approved by the Commissioner of Insurance.
(c) Shall be deemed to be approved if not disapproved by the Commissioner of Insurance within 30 days after its submission.
Sec. 15. NRS 287.030 is hereby amended to read as follows:
287.030 No provisions of law prohibiting, restricting or limiting the assignment of or order for wages or salary shall be deemed in any way to prohibit, restrict or limit the powers enumerated in NRS 287.010 [and 287.020,] , 287.020 or 287.025 nor the right and power of officers or employees to authorize and approve payment of premiums or contributions by wage and salary deductions.
Sec. 16. NRS 287.040 is hereby amended to read as follows:
287.040 The provisions of NRS 287.010 to 287.040, inclusive, do not make it compulsory upon any governing body of any county, school district, municipal corporation, political subdivision, public corporation or other [public] local governmental agency of the State of Nevada to, except as otherwise provided in NRS 287.021, make any contributions for the payment of any premiums or other costs for group insurance or medical or hospital services, or upon any officer or employee of any county, school district, municipal corporation, political subdivision, public corporation or other [public agency] local governmental agency of this state to accept or join any plan of group insurance or to assign his wages or salary [or to authorize deductions from his wages or salary] in payment of premiums or contributions therefor.
Sec. 17. NRS 287.0402 is hereby amended to read as follows:
287.0402 As used in NRS 287.0402 to 287.049, inclusive, and sections 5, 6 and 7 of this act, unless the context otherwise requires, the words and terms defined in NRS 287.0404 and 287.0406 and sections 5, 6 and 7 of this act have the meanings ascribed to them in those sections.
Sec. 18. NRS 287.043 is hereby amended to read as follows:
287.043 1. The Board shall:
(a) Establish and carry out a program to be known as the Public Employees Benefits Program which:
(1) Must include a program relating to group life, accident or health insurance, or any combination of these; and
(2) May include a program to reduce taxable compensation or other forms of compensation other than deferred compensation,
for the benefit of all state officers and employees and other persons who participate in the Program.
(b) Ensure that the Program is funded on an actuarially sound basis and operated in accordance with sound insurance and business practices.
2. In establishing and carrying out the Program, the Board shall:
(a) For the purpose of establishing actuarial data to determine rates and coverage for active and retired state officers and employees and their dependents, commingle the claims experience of such active and retired officers and employees and their dependents.
(b) Except as otherwise provided in this paragraph, negotiate and contract pursuant to paragraph (a) of subsection 1 of NRS 287.025 with the governing body of any [public agency enumerated in NRS 287.010] county, school district, municipal corporation, political subdivision, public corporation or other local governmental agency of the State of Nevada that wishes to obtain group insurance for its active and retired officers [, employees and retired] and employees and their dependents by participation in the Program.
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employees and retired] and employees and their dependents by participation in the Program. The Board shall establish separate rates and coverage for those active and retired officers [, employees and retired] and employees and their dependents based on actuarial reports.
(c) Except as otherwise provided in paragraph (d), provide public notice in writing of any proposed changes in rates or coverage to each participating public [employer who] agency that may be affected by the changes. Notice must be provided at least 30 days before the effective date of the changes.
(d) If a proposed change is a change in the premium or contribution charged for , or coverage of , health insurance, provide written notice of the proposed change to all [state officers, employees, retired employees and other persons who participate in the Program who may be affected by the proposed change.] participating active and retired public officers and employees. The notice must be provided at least 60 days before the date [a state officer, employee, retired employee or other person] on which a participating active or retired public officer or employee is required to select or change his policy of health insurance.
(e) Purchase policies of life, accident or health insurance, or any combination of these, or, if applicable, a program to reduce the amount of taxable compensation pursuant to 26 U.S.C. § 125, from any company qualified to do business in this state or provide similar coverage through a plan of self-insurance established pursuant to NRS 287.0433 for the benefit of all eligible active and retired public officers [, employees and retired] and employees who participate in the Program.
(f) Except as otherwise provided in this title, develop and establish other employee benefits as necessary.
(g) Investigate and approve or disapprove any contract proposed pursuant to NRS 287.0479.
(h) Adopt such regulations and perform such other duties as are necessary to carry out the provisions of NRS 287.0402 to 287.049, inclusive, and sections 5, 6 and 7 of this act, including, without limitation, the establishment of:
(1) Fees for applications for participation in the Program and for the late payment of premiums or contributions;
(2) Conditions for entry and reentry into the Program by [public agencies enumerated in NRS 287.010;] local governmental agencies that wish to enter or reenter the Program pursuant to paragraph (a) of subsection 1 of NRS 287.025;
(3) The levels of participation in the Program required for officers and employees of participating public agencies;
(4) Procedures by which a group of participants in the Program may leave the Program pursuant to NRS 287.0479 and conditions and procedures for reentry into the Program by those participants; and
(5) Specific procedures for the determination of contested claims.
(i) Appoint an independent certified public accountant. The accountant shall:
(1) Provide an annual audit of the Program; and
(2) Report to the Board and the Interim Retirement and Benefits Committee of the Legislature created pursuant to NRS 218.5373.
(j) Appoint an attorney who specializes in employee benefits. The attorney shall:
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(1) Perform a biennial review of the Program to determine whether the Program complies with federal and state laws relating to taxes and employee benefits; and
(2) Report to the Board and the Interim Retirement and Benefits Committee of the Legislature created pursuant to NRS 218.5373.
3. The Board shall submit an annual report regarding the administration and operation of the Program to the Director of the Legislative Counsel Bureau not more than 6 months before the Board establishes rates and coverage for members for the following [calendar] plan year. The report must include, without limitation:
(a) The amount paid by the Program in the preceding [calendar] plan year for the claims of active and retired state officers and employees [;] who participated in the Program; and
(b) The amount paid by the Program in the preceding [calendar] plan year for the claims of retired members of the Program who were provided coverage for medical or hospital service, or both, by the Health Insurance for the Aged Act, 42 U.S.C. §§ 1395 et seq., or a plan that provides similar coverage.
4. The Board may use any services provided to state agencies and shall use the services of the Purchasing Division of the Department of Administration to establish and carry out the Program.
5. The Board may make recommendations to the Legislature concerning legislation that it deems necessary and appropriate regarding the Program.
6. [The State and any other public employers that participate in the Program are] A participating public agency is not liable for any obligation of the Program other than indemnification of the Board and its employees against liability relating to the administration of the Program, subject to the limitations specified in NRS 41.0349.
7. As used in this section, employee benefits includes any form of compensation provided to a public employee except federal benefits, wages earned, legal holidays, deferred compensation and benefits available pursuant to chapter 286 of NRS.
Sec. 19. NRS 287.0434 is hereby amended to read as follows:
287.0434 The Board may:
1. Use its assets to pay the expenses of health care for its members and covered dependents, to pay its employees salaries and to pay administrative and other expenses.
2. Enter into contracts relating to the administration of the Program, including, without limitation, contracts with licensed administrators and qualified actuaries. Each such contract with a licensed administrator:
(a) Must be submitted to the Commissioner of Insurance not less than 30 days before the date on which the contract is to become effective for approval as to the reasonableness of administrative charges in relation to contributions collected and benefits provided.
(b) Does not become effective unless approved by the Commissioner.
(c) Shall be deemed to be approved if not disapproved by the Commissioner [of Insurance] within 30 days after its submission.
3. Enter into contracts with physicians, surgeons, hospitals, health maintenance organizations and rehabilitative facilities for medical, surgical and rehabilitative care and the evaluation, treatment and nursing care of members and covered dependents.
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members and covered dependents. The Board shall not enter into a contract pursuant to this subsection unless:
(a) Provision is made by the Board to offer all the services specified in the request for proposals, either by a health maintenance organization or through separate action of the Board.
(b) The rates set forth in the contract are based on the commingled claims experience of active and retired state officers and employees and their dependents.
4. Enter into contracts for the services of other experts and specialists as required by the Program.
5. Charge and collect from an insurer, health maintenance organization, organization for dental care or nonprofit medical service corporation, a fee for the actual expenses incurred by the Board [, the State] or a participating public [employer] agency in administering a plan of insurance offered by that insurer, organization or corporation.
Sec. 20. NRS 287.0439 is hereby amended to read as follows:
287.0439 1. A participating public [employer shall, on request,] agency shall furnish to the Board [any] :
(a) Written notice regarding a change in the status of an employee of the participating public agency or a dependent of such an employee that affects the eligibility of the employee or dependent to participate in the Program. Such notice must be provided to the Program, on a form prescribed by the Program, within 15 calendar days after the participating public agency is notified or otherwise becomes aware of the change in status.
(b) Upon request, any other information necessary to carry out the provisions of this chapter.
2. Members of the Board and its employees or agents may examine under oath any officer, agent or employee of a participating public [employer] agency concerning the information [.
2.] required pursuant to this section.
3. The books, records and payrolls of a participating public [employer] agency must be available for inspection by members of the Board and its employees and agents to obtain any information necessary for the administration of the Program, including, without limitation, the accuracy of the payroll and identity of employees.
4. A participating public agency shall reimburse the Program for any premium or contribution that was not paid to the Program as a result of the failure of the participating public agency to furnish the notice required pursuant to paragraph (a) of subsection 1. The participating public agency shall not require any employee or his dependent to reimburse the participating public agency for the amount of any premium or contribution for which the participating public agency is liable to the Program pursuant to this subsection.
Sec. 21. NRS 287.044 is hereby amended to read as follows:
287.044 1. A part of the cost of the premiums or contributions for [that] group insurance [,] provided by the Program, not to exceed the amount specified by law, applied to both group life and group accident or health coverage, for each [public] state officer, except a Senator or Assemblyman, or employee electing to participate in the Program, may be paid by the [department, agency, commission or public] participating state agency which employs the officer or employee in whose behalf that part is paid from money appropriated to or authorized for that [department, agency, commission or public] participating state agency for that purpose.
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money appropriated to or authorized for that [department, agency, commission or public] participating state agency for that purpose. Participation by the State in the cost of premiums or contributions must not exceed the amounts specified by law. If [an] a state officer or employee chooses to cover his dependents, whenever this option is made available by the Board, except as otherwise provided in NRS 287.021 and 287.0477, he must pay the difference between the amount of the premium or contribution for the coverage for himself and his dependents and the amount paid by the [State.] participating state agency that employs the officer or employee.
2. A [department, agency, commission or public] participating state agency shall not pay any part of those premiums or contributions if the group life insurance or group accident or health insurance is not approved by the Board.
Sec. 22. NRS 287.0445 is hereby amended to read as follows:
287.0445 The [department, agency, commission or public] participating state agency which employed [an] a state officer or employee who:
1. Was injured in the course of that employment;
2. Receives compensation for a temporary total disability pursuant to NRS 616C.475; and
3. Was a member of the Program at the time of the injury,
shall pay the States share of the cost of the premiums or contributions for the Program for that officer or employee for not more than 9 months after the injury or until the officer or employee is able to return to work, whichever is less. If the previous injury recurs within 1 month after the employee returns to work and the employee again receives compensation pursuant to NRS 616C.475 as a result of the previous injury, the [department, agency, commission or public] participating state agency shall not, except as otherwise provided in this subsection, pay the states share of the cost of the premiums or contributions for the period during which the employee is unable to work as a result of the recurring previous injury. If the initial period of disability was less than 9 months, the [department, agency, commission or public] participating state agency shall pay, during the recurrence, the States share of the costs of the premiums or contributions for a period which, when added to the initial period, equals not more than 9 months.
Sec. 23. NRS 287.045 is hereby amended to read as follows:
287.045 1. Except as otherwise provided in this section, every state officer or employee [of the State] is eligible to participate in the Program on the first day of the month following the completion of 90 days of full-time employment.
2. Professional employees of the University and Community College System of Nevada who have annual employment contracts are eligible to participate in the Program on:
(a) The effective dates of their respective employment contracts, if those dates are on the first day of a month; or
(b) The first day of the month following the effective dates of their respective employment contracts, if those dates are not on the first day of a month.
3. Every officer or employee who is employed by a participating [public] local governmental agency on a permanent and full-time basis on the date on which the participating local governmental agency enters into an agreement to participate in the Program [,] pursuant to paragraph (a) of subsection 1 of NRS 287.025, and every officer or employee who commences his employment with that participating local governmental agency after that date is eligible to participate in the Program on the first day of the month following the completion of 90 days of full-time employment.
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an agreement to participate in the Program [,] pursuant to paragraph (a) of subsection 1 of NRS 287.025, and every officer or employee who commences his employment with that participating local governmental agency after that date is eligible to participate in the Program on the first day of the month following the completion of 90 days of full-time employment.
4. Every Senator and Assemblyman is eligible to participate in the Program on the first day of the month following the 90th day after his initial term of office begins.
5. An officer or employee of the governing body of any county, school district, municipal corporation, political subdivision, public corporation or other [public] local governmental agency of the State of Nevada who retires under the conditions set forth in NRS 1A.350 or 1A.480, or 286.510 or 286.620 and was not participating in the Program at the time of his retirement is eligible to participate in the Program 60 days after notice of the selection to participate is given pursuant to NRS 287.023 . [or 287.0235.] The Board shall make a separate accounting for these retired persons. For the first year following enrollment, the rates charged must be the full actuarial costs determined by the actuary based upon the expected claims experience with these retired persons. The claims experience of these retired persons must not be commingled with the retired persons who [were members of] participated in the Program before their retirement, nor with active state officers and employees [of the State.] who participate in the Program. After the first year following enrollment, the rates charged must be the full actuarial costs determined by the actuary based upon the past claims experience of these retired persons since enrolling.
6. Notwithstanding the provisions of subsections 1, 3 and 4, if the Board does not, pursuant to NRS 689B.580, elect to exclude the Program from compliance with NRS 689B.340 to 689B.590, inclusive, and if the coverage under the Program is provided by a health maintenance organization authorized to transact insurance in this state pursuant to chapter 695C of NRS, any affiliation period imposed by the Program may not exceed the statutory limit for an affiliation period set forth in NRS 689B.500.
Sec. 24. NRS 287.046 is hereby amended to read as follows:
287.046 1. Except as otherwise provided in subsection 6, any active state [or other participating] officer or employee who elects to participate in the Program may participate, and the [department, agency, commission or public] participating state agency that employs the officer or employee shall pay the States share of the cost of the premiums or contributions for the program from money appropriated or authorized as provided in NRS 287.044. [Employees] State officers and employees who elect to participate in the Program must authorize deductions from their compensation for the payment of premiums or contributions for the Program. Any deduction from the compensation of [an] a state officer or employee for the payment of a premium or contribution for health insurance must be based on the actual cost of providing that health insurance after deducting any amount of the premium or contribution which is paid by the [department, agency, commission or public] participating state agency that employs the employee. As used in this subsection, actual cost includes any amount which has been approved by the Board and which is paid by any [department, agency, commission or public agency of this state] participating state agency for:
(a) A program of supplemental insurance;
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(b) Subsidization of premiums or contributions for health insurance for dependents and retired participants;
(c) Administrative costs relating to the provision of the health insurance; and
(d) Costs required to maintain adequate reserves.
2. The Department of Personnel shall pay a percentage of the base amount provided by law for that fiscal year toward the cost of the premiums or contributions for the Program for persons who have retired [from the service of the State who have continued] with state service and who elect to participate in the Program. Except as otherwise provided in subsection 3, the percentage to be paid must be calculated as follows:
(a) For those persons who retire before January 1, 1994, 100 percent of the base amount provided by law for that fiscal year.
(b) For those persons who retire on or after January 1, 1994, with at least 5 years of state service, 25 percent plus an additional 7.5 percent for each year of state service in excess of 5 years to a maximum of 137.5 percent, excluding service purchased pursuant to NRS 1A.310 or 286.300, of the base amount provided by law for that fiscal year.
3. If the amount calculated pursuant to subsection 2 exceeds the actual premium or contribution for the plan of the Program that the retired participant selects, the balance must be credited to the Fund for the Public Employees Benefits Program created pursuant to NRS 287.0435.
4. For the purposes of subsection 2:
(a) Credit for service must be calculated in the manner provided by chapter 286 of NRS.
(b) No proration may be made for a partial year of state service.
5. The Department shall agree through the Board with the insurer for billing of remaining premiums or contributions for the retired participant and his dependents to the retired participant and to his dependents who elect to continue coverage under the Program after his death.
6. A Senator or Assemblyman who elects to participate in the Program shall pay the entire premium or contribution for his insurance.
Sec. 25. NRS 287.047 is hereby amended to read as follows:
287.047 If the retention is consistent with the terms of any agreement between the State and the insurance company which issued the policies pursuant to the Program or with the plan of self-insurance of the Program:
1. A participating state officer or employee who retires on or after July 1, 1985, may retain his membership in and his dependents coverage by the Program.
2. A participating Legislator who retires from the service of the State or who completes 8 years of service as such may retain his membership in and his dependents coverage by the Program.
Sec. 26. NRS 287.0475 is hereby amended to read as follows:
287.0475 1. A public officer or employee who has retired pursuant to NRS 1A.350 or 1A.480, or 286.510 or 286.620, or a retirement program provided pursuant to NRS 286.802, or the surviving spouse of such a retired public officer or employee who is deceased may, in any even-numbered year, reinstate any insurance, except life insurance, which was provided to him and his dependents at the time of his retirement pursuant to NRS 287.010 , [or] 287.020 or 287.025 or the program as a public officer or employee by:
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(a) Giving written notice of his intent to reinstate the insurance to the [employees] last public employer of the public officer or employee not later than January 31, of an even-numbered year;
(b) Accepting the public employers current program or plan of insurance and any subsequent changes thereto; and
(c) Paying any portion of the premiums or contributions of the public employers program or plan of insurance, in the manner set forth in NRS 1A.470 or 286.615, which are due from the date of reinstatement and not paid by the public employer.
The last public employer shall give the insurer notice of the reinstatement no later than March 31 [,] of the year in which the public officer or employee or surviving spouse gives notice of his intent to reinstate the insurance. The insurer shall approve or disapprove the request for reinstatement within 90 days after the date of the request.
2. Reinstatement of insurance excludes claims for expenses for any condition for which medical advice, treatment or consultation was rendered within [6] 12 months before reinstatement unless [:
(a) The person has not received any medical advice, treatment or consultation for a period of 6 consecutive months after the reinstatement; or
(b) The] the reinstated insurance has been in effect more than 12 consecutive months.
Sec. 27. NRS 287.0479 is hereby amended to read as follows:
287.0479 1. If approved by the Board pursuant to this section, a group of not less than 300 active state officers [,] or employees or retired state officers or employees, or any combination thereof, that participate in the Program may leave the Program and secure life, accident or health insurance, or any combination thereof, for the group from an:
(a) Insurer that is authorized by the Commissioner of Insurance to provide such insurance; or
(b) Employee benefit plan, as defined in 29 U.S.C. § 1002(3), that has been approved by the Board. The Board may approve an employee benefit plan unless the Board finds that the plan is not operated pursuant to such sound accounting and financial management practices as to ensure that the group will continue to receive adequate benefits.
2. Before entering into a contract with the insurer or approved employee benefit plan, the group shall submit the proposed contract to the Board for approval. The Board may approve the contract unless the departure of the group from the Program would cause an increase of more than 5 percent in the costs of premiums or contributions for the remaining participants in the Program. In determining whether to approve a proposed contract, the Board shall follow the criteria set forth in the regulations adopted by the Board pursuant to subsection 4 and may consider the cumulative impact of groups that have left or are proposing to leave the Program. Except as otherwise provided in this section, the Board has discretion in determining whether to approve a contract. If the Board approves a proposed contract pursuant to this subsection, the group that submitted the proposed contract is not authorized to leave the Program until 120 days after the date on which the Board approves the proposed contract.
3. The Board shall disburse periodically to the insurer or employee benefit plan with which a group contracts pursuant to this section the total amount set forth in the contract for premiums or contributions for the members of the group for that period but not to exceed the amount appropriated to or authorized for the [department, agency, commission or public] participating state agency that employs the members of the group for premiums or contributions for the members of the group for that period, after deducting any administrative costs related to the group.
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appropriated to or authorized for the [department, agency, commission or public] participating state agency that employs the members of the group for premiums or contributions for the members of the group for that period, after deducting any administrative costs related to the group.
4. The Board shall adopt regulations establishing the criteria pursuant to which the Board will approve proposed contracts pursuant to subsection 2.
Sec. 28. NRS 287.048 is hereby amended to read as follows:
287.048 NRS 287.0402 to 287.047, inclusive, do not require any officer or employee of the State of Nevada to accept or join the Program, or to assign his wages or salary [to or authorize deductions from his wages or salary] in payment of premiums or contributions for the Program.
Sec. 29. NRS 1A.470 is hereby amended to read as follows:
1A.470 1. In addition to the options provided in NRS 287.023 and subject to the requirements of that section, any justice of the Supreme Court or district judge who retires under the conditions set forth in NRS 1A.350 and, at the time of his retirement, was covered or had his dependents covered by any group insurance or medical and hospital service established pursuant to NRS 287.010 [and 287.020,] , 287.020 or paragraph (b), (c) or (d) of subsection 1 of NRS 287.025, has the option of having the Executive Officer of the Board deduct and pay his premium or contribution for that group insurance or medical and hospital service coverage, as well as the amount due or to become due upon any obligation designated by the Board pursuant to subsection 2, from his monthly retirement allowance until:
(a) He notifies the Executive Officer of the Board to discontinue the deduction; or
(b) Any of his dependents elect to assume the premium or contribution applicable to the dependents coverage before the death of such a retired justice or judge and continue coverage pursuant to NRS 287.023 after his death.
2. The Board may adopt regulations to carry out the provisions of subsection 1, including, without limitation, regulations governing the number and types of obligations, amounts for the payment of which may be deducted and paid by the Board at the option of the retired justice or judge pursuant to this section.
3. The Executive Officer of the Board, the Board and the System are not liable for any damages resulting from errors or omissions concerning the deductions and payment of premiums or contributions authorized pursuant to this section unless willful neglect or gross negligence is proven.
Sec. 30. NRS 218.6853 is hereby amended to read as follows:
218.6853 1. The Chief of the Administrative Division is ex officio Legislative Fiscal Officer. As such Officer, he shall keep a complete, accurate and adequate set of accounting records and reports for all legislative operations, including any records and reports required by the Federal Government for the administration of federal revenue and income tax laws.
2. The Chief shall withhold from the pay of each Legislator, employee of the Legislature and employee of the Legislative Counsel Bureau the amount of tax specified by the Federal Government and shall transmit the amount deducted to the Internal Revenue Service of the United States Department of the Treasury.
3. The Chief shall, upon receipt of information from the Public Employees Benefits Program specifying amounts of premiums or contributions for coverage by the Program, withhold from the pay of each employee of the Legislature and employee of the Legislative Counsel Bureau who participates in the Public Employees Benefits Program those amounts and pay those amounts to the Program.
κ2003 Statutes of Nevada, Page 3274 (CHAPTER 494, AB 249)κ
employee of the Legislature and employee of the Legislative Counsel Bureau who participates in the Public Employees Benefits Program those amounts and pay those amounts to the Program.
4. The Chief may provide for the purchase of United States savings bonds or similar United States obligations by salary deduction for any Legislator, legislative employee or employee of the Legislative Counsel Bureau who submits a written request for these deductions and purchases. The Chief shall provide forms authorizing deductions for and purchases of these United States obligations.
[4.] 5. The Chief may withhold from the pay of a Legislator, employee of the Legislature or employee of the Legislative Counsel Bureau such amount as the claimant specifies in writing for payment to his credit union. Any money which is withheld must be transmitted by the Chief in accordance with the claimants written instructions. The Chief may adopt regulations necessary to carry out the provisions of this subsection.
Sec. 31. Section 49 of chapter 573, Statutes of Nevada 1999, at page 3048, is hereby amended to read as follows:
Sec. 49. 1. This section and sections 41, 47 and 48 of this act become effective upon passage and approval.
2. Sections 1 to 12, inclusive, 13 to 28, inclusive, 30 to 40, inclusive, 42, 42.7, 47.2, 48.5 and 50 of this act become effective on July 1, 1999.
3. Section 29 of this act becomes effective at 12:01 a.m. on July 1, 1999.
4. Sections 12.5 and 47.3 of this act become effective on July 1, 1999, for the purpose of adopting regulations, and on January 1, 2001, for all other purposes.
[5. Section 18 of this act expires by limitation on July 1, 2003.
6. Section 42.5 of this act becomes effective on July 1, 2003.]
Sec. 32. 1. NRS 287.0235 is hereby repealed.
2. Section 42.5 of chapter 573, Statutes of Nevada 1999, at page 3043, is hereby repealed.
Sec. 33. 1. This section and sections 1 to 10, inclusive, 12 to 22, inclusive, and 25 to 31, inclusive, of this act become effective on July 1, 2003.
2. Sections 11, 23, 24 and 32 of this act become effective on July 1, 2004.
________
κ2003 Statutes of Nevada, Page 3275κ
Assembly Bill No. 453Committee on Commerce and Labor
CHAPTER 495
AN ACT relating to insurance; expanding the authority of the Commissioner of Insurance to enter into cooperative agreements and to share certain information; authorizing the Commissioner to examine the accounts, records, documents and transactions of an external review organization for certain purposes; revising the requirements for a person to act as a broker for reinsurance; authorizing an insurance consultant to qualify for a license in certain lines of authority; increasing the amount of surplus required to accept surplus lines; requiring an essential insurance association to qualify as a domestic mutual insurer if requested to do so by the Commissioner; clarifying that underinsured vehicle coverage includes coverage for certain damages to the extent those damages exceed a limitation of liability for a governmental agency; revising the amount of money that the Nevada Insurance Guaranty Association and the Nevada Life and Health Insurance Guaranty Association are obligated to pay for a covered claim; requiring an insurer that issues a policy of insurance covering the liability of certain physicians to submit a report to the Commissioner within a certain period after closing a claim under the policy; revising the order of distribution of certain claims from the estate of an insurer on liquidation of the insurer; prohibiting a bail agent from acting as an attorney-in-fact for an insurer on an undertaking unless the bail agent registers in the office of the sheriff and with the clerk of the district court in which the bail agent resides; requiring a member of an association of self-insured public or private employers to include certain information in a notice of intent to withdraw from the association; providing penalties; and providing other matters properly relating thereto.
[Approved: June 11, 2003]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 679B of NRS is hereby amended by adding thereto a new section to read as follows:
1. In addition to the authority conferred upon him pursuant to NRS 679B.120, the Commissioner may:
(a) Enter into and comply with any cooperative or coordination agreement with any governmental entity within or outside this state relating to the regulation and administration of insurance and persons who are materially involved in the business of insurance;
(b) Share any document, material or other information, including any document, material or information that is confidential or privileged, with any state, federal or international regulatory, law enforcement or legislative agency, and the National Association of Insurance Commissioners and any of its affiliates or subsidiaries, if the recipient of the document, material or other information agrees:
κ2003 Statutes of Nevada, Page 3276 (CHAPTER 495, AB 453)κ
(1) To ensure that the document, material or other information remains confidential and privileged; and
(2) To submit to the jurisdiction of the courts of this state if the recipient violates a provision of subparagraph (1); and
(c) Receive any document, material or other information from any agency, association, affiliate or subsidiary specified in paragraph (b). The Commissioner shall ensure that any document, material or information received pursuant to this paragraph remains confidential if the document, material or information is provided to the Commissioner with a notice or the understanding that it is confidential or privileged under the laws of the jurisdiction from which it is submitted.
2. The sharing or receipt of any document, material or other information by the Commissioner pursuant to this section does not waive any applicable privilege or claim of confidentiality in the document, material or other information.
Sec. 2. NRS 679B.130 is hereby amended to read as follows:
679B.130 1. The Commissioner may adopt reasonable regulations [for] :
(a) For the administration of any provision of this Code, NRS 287.04335 or chapters 616A to 617, inclusive, of NRS [.] ; or
(b) As required to ensure compliance by the Commissioner with any federal law or regulation relating to insurance.
2. A person who willfully violates any regulation of the Commissioner is subject to such suspension or revocation of a certificate of authority or license, or administrative fine in lieu of such suspension or revocation, as may be applicable under this Code or chapter 616A, 616B, 616C, 616D or 617 of NRS for violation of the provision to which the regulation relates. No penalty applies to any act done or omitted in good faith in conformity with any such regulation, notwithstanding that the regulation may, after the act or omission, be amended, rescinded or determined by a judicial or other authority to be invalid for any reason.
Sec. 3. NRS 679B.144 is hereby amended to read as follows:
679B.144 1. The Commissioner shall collect and maintain the information provided by insurers pursuant to NRS 690B.050 regarding each closed claim for medical malpractice filed against [physicians and surgeons] a person who is covered by a policy of insurance for medical malpractice in this state, including, without limitation:
(a) The cause of the loss;
(b) A description of the injury for which the claim was filed;
(c) The sex of the injured person;
(d) The names and number of defendants in each claim;
(e) The type of coverage provided;
(f) The amount of the initial, highest and last reserves of an insurer for each claim before final resolution of the claim by settlement or trial;
(g) The disposition of each claim;
(h) The amount of money awarded through settlement or by verdict;
(i) The sum of money paid to each claimant and the source of that sum; [and]
(j) Any sum of money allocated to expenses for the adjustment of losses [.] ; and
(k) Any other information the Commissioner determines to be necessary or appropriate.
κ2003 Statutes of Nevada, Page 3277 (CHAPTER 495, AB 453)κ
2. The Commissioner shall submit with his report to the Legislature required pursuant to NRS 679B.410 [,] a summary of the information collected pursuant to this section.
3. The Commissioner shall adopt regulations necessary to carry out the provisions of this section.
4. As used in this section, policy of insurance for medical malpractice means a policy that provides coverage for any medical professional liability of the insured under the policy.
Sec. 3.3. NRS 679B.240 is hereby amended to read as follows:
679B.240 To ascertain compliance with law, or relationships and transactions between any person and any insurer or proposed insurer, the Commissioner may, as often as he deems advisable, examine the accounts, records, documents and transactions relating to such compliance or relationships of:
1. Any insurance agent, solicitor, broker, surplus lines broker, general agent, adjuster, insurer representative, bail agent, motor club agent or any other licensee or any other person the Commissioner has reason to believe may be acting as or holding himself out as any of the foregoing.
2. Any person having a contract under which he enjoys in fact the exclusive or dominant right to manage or control an insurer.
3. Any insurance holding company or other person holding the shares of voting stock or the proxies of policyholders of a domestic insurer, to control the management thereof, as voting trustee or otherwise.
4. Any subsidiary of the insurer.
5. Any person engaged in this state in, or proposing to be engaged in this state in, or holding himself out in this state as so engaging or proposing, or in this state assisting in, the promotion, formation or financing of an insurer or insurance holding corporation, or corporation or other group to finance an insurer or the production of its business.
6. Any external review organization, as defined in section 19 of Assembly Bill No. 79 of this session.
Sec. 3.7. NRS 679B.290 is hereby amended to read as follows:
679B.290 1. Except as otherwise provided in subsection 2:
(a) The expense of examination of an insurer, or of any person referred to in subsection 1, 2 , [or] 5 or 6 of NRS 679B.240, must be borne by the person examined. Such expense includes only the reasonable and proper hotel and travel expenses of the Commissioner and his examiners and assistants, including expert assistance, reasonable compensation as to such examiners and assistants and incidental expenses as necessarily incurred in the examination. As to expense and compensation involved in any such examination the Commissioner shall give due consideration to scales and limitations recommended by the National Association of Insurance Commissioners and outlined in the examination manual sponsored by that association.
(b) The person examined shall promptly pay to the Commissioner the expenses of the examination upon presentation by the Commissioner of a reasonably detailed written statement thereof.
2. The Commissioner may bill an insurer for the examination of any person referred to in subsection 1 of NRS 679B.240 and shall adopt regulations governing such billings.
κ2003 Statutes of Nevada, Page 3278 (CHAPTER 495, AB 453)κ
Sec. 4. NRS 679B.440 is hereby amended to read as follows:
679B.440 1. The Commissioner may require that reports submitted pursuant to NRS 679B.430 include, without limitation, information regarding:
(a) Liability insurance provided to:
(1) Governmental agencies and political subdivisions of this state, reported separately for:
(I) Cities and towns;
(II) School districts; and
(III) Other political subdivisions;
(2) Public officers;
(3) Establishments where alcoholic beverages are sold;
(4) Facilities for the care of children;
(5) Labor, fraternal or religious organizations; and
(6) Officers or directors of organizations formed pursuant to title 7 of NRS, reported separately for nonprofit entities and entities organized for profit;
(b) Liability insurance for:
(1) Defective products;
(2) Medical or dental malpractice [;] of:
(I) A practitioner licensed pursuant to chapter 630, 630A, 631, 632, 633, 634, 634A, 635, 636, 637, 637A, 637B, 639 or 640 of NRS;
(II) A hospital or other health care facility; or
(III) Any related corporate entity.
(3) Malpractice of attorneys;
(4) Malpractice of architects and engineers; and
(5) Errors and omissions by other professionally qualified persons;
(c) Vehicle insurance, reported separately for:
(1) Private vehicles;
(2) Commercial vehicles;
(3) Liability insurance; and
(4) Insurance for property damage; [and]
(d) Workers compensation insurance [.] ; and
(e) In addition to any information provided pursuant to subparagraph (2) of paragraph (b) or NRS 690B.050, a policy of insurance for medical malpractice. As used in this paragraph, policy of insurance for medical malpractice has the meaning ascribed to it in NRS 679B.144.
2. The Commissioner may require that the report include, without limitation, information specifically pertaining to this state or to an insurer in its entirety, in the aggregate or by type of insurance, and for a previous or current year, regarding:
(a) Premiums directly written;
(b) Premiums directly earned;
(c) Number of policies issued;
(d) Net investment income, using appropriate estimates when necessary;
(e) Losses paid;
(f) Losses incurred;
(g) Loss reserves, including:
(1) Losses unpaid on reported claims; and
(2) Losses unpaid on incurred but not reported claims;
(h) Number of claims, including:
(1) Claims paid; and
κ2003 Statutes of Nevada, Page 3279 (CHAPTER 495, AB 453)κ
(2) Claims that have arisen but are unpaid;
(i) Expenses for adjustment of losses, including allocated and unallocated losses;
(j) Net underwriting gain or loss;
(k) Net operation gain or loss, including net investment income; and
(l) Any other information requested by the Commissioner.
3. The Commissioner may also obtain, based upon an insurer in its entirety, information regarding:
(a) Recoverable federal income tax;
(b) Net unrealized capital gain or loss; and
(c) All other expenses not included in subsection 2.
Sec. 5. NRS 679B.460 is hereby amended to read as follows:
679B.460 1. An insurer who willfully or repeatedly violates or fails to comply with a provision of NRS 679B.400 to 679B.450, inclusive, or 690B.050 or a regulation adopted pursuant to NRS 679B.430 is subject, after notice and a hearing held pursuant to NRS 679B.310 to 679B.370, inclusive, to payment of an administrative fine of not more than $1,000 for each day of the violation or failure to comply, up to a maximum fine of $50,000.
2. An insurer who fails or refuses to comply with an order issued by the Commissioner pursuant to NRS 679B.430 is subject, after notice and a hearing held pursuant to NRS 679B.310 to 679B.370, inclusive, to suspension or revocation of his certificate of authority to transact insurance in this state.
3. The imposition of an administrative fine pursuant to this section must not be considered by the Commissioner in any other administrative proceeding unless the fine has been paid or a court order for payment of the fine has become final.
Sec. 6. NRS 680A.270 is hereby amended to read as follows:
680A.270 1. Each authorized insurer shall annually on or before March 1, or within any reasonable extension of time therefor which the Commissioner for good cause may have granted on or before that date, file with the Commissioner a full and true statement of its financial condition, transactions and affairs as of December 31 preceding. The statement must be [in] :
(a) In the general form and context of, and require information as called for by, [the form of] an annual statement as is currently in general and customary use in the United States for the type of insurer and kinds of insurance to be reported upon, with any useful or necessary modification or adaptation thereof, supplemented by additional information required by the Commissioner [. The statement must be verified] ;
(b) Prepared in accordance with:
(1) The Annual Statement Instructions for the type of insurer to be reported on as adopted by the National Association of Insurance Commissioners for the year in which the insurer files the statement; and
(2) The Accounting Practices and Procedures Manual adopted by the National Association of Insurance Commissioners and effective on January 1, 2001, and as amended by the National Association of Insurance Commissioners after that date; and
(c) Verified by the oath of the insurers president or vice president and secretary or actuary, as applicable, or, in the absence of the foregoing, by two other principal officers, or if a reciprocal insurer, by the oath of the attorney-in-fact, or its like officers if a corporation.
κ2003 Statutes of Nevada, Page 3280 (CHAPTER 495, AB 453)κ
2. The statement of an alien insurer must be verified by its United States manager or other officer [duly authorized,] who is authorized to do so, and may relate only to the insurers transactions and affairs in the United States unless the Commissioner requires otherwise. If the Commissioner requires a statement as to [such an] the insurers affairs throughout the world, the insurer shall file the statement with the Commissioner as soon as reasonably possible.
3. The Commissioner may refuse to continue, or may suspend or revoke, the certificate of authority of any insurer failing to file its annual statement when due.
4. At the time of filing, the insurer shall pay the fee for filing its annual statement as prescribed by NRS 680B.010.
5. The Commissioner may adopt regulations requiring each domestic, foreign and alien insurer which is authorized to transact insurance in this state to file the insurers annual statement with the National Association of Insurance Commissioners or its successor organization.
6. All ratios of financial analyses and synopses of examinations concerning insurers that are submitted to the Division by the National Association of Insurance Commissioners Insurance Regulatory Information System are confidential and may not be disclosed by the Division.
Sec. 7. NRS 680B.010 is hereby amended to read as follows:
680B.010 The Commissioner shall collect in advance and receipt for, and persons so served must pay to the Commissioner, fees and miscellaneous charges as follows:
1. Insurers certificate of authority:
(a) Filing initial application..................................................................... $2,450
(b) Issuance of certificate:
(1) For any one kind of insurance as defined in NRS 681A.010 to 681A.080, inclusive 283
(2) For two or more kinds of insurance as so defined....................... 578
(3) For a reinsurer................................................................................. 2,450
(c) Each annual continuation of a certificate....................................... 2,450
(d) Reinstatement pursuant to NRS 680A.180, 50 percent of the annual continuation fee otherwise required.
(e) Registration of additional title pursuant to NRS 680A.240................ 50
(f) Annual renewal of the registration of additional title pursuant to NRS 680A.240 25
2. Charter documents, other than those filed with an application for a certificate of authority. Filing amendments to articles of incorporation, charter, bylaws, power of attorney and other constituent documents of the insurer, each document $10
3. Annual statement or report. For filing annual statement or report $25
4. Service of process:
(a) Filing of power of attorney....................................................................... $5
(b) Acceptance of service of process............................................................ 30
5. Licenses, appointments and renewals for producers of insurance:
(a) Application and license........................................................................ $125
(b) Appointment fee for each insurer........................................................... 15
(c) Triennial renewal of each license.......................................................... 125
(d) Temporary license...................................................................................... 10
κ2003 Statutes of Nevada, Page 3281 (CHAPTER 495, AB 453)κ
(e) Modification of an existing license....................................................... $50
6. Surplus lines brokers:
(a) Application and license ....................................................................... $125
(b) Triennial renewal of each license.......................................................... 125
7. Managing general agents licenses, appointments and renewals:
(a) Application and license........................................................................ $125
(b) Appointment fee for each insurer........................................................... 15
(c) Triennial renewal of each license.......................................................... 125
8. Adjusters licenses and renewals:
(a) Independent and public adjusters:
(1) Application and license ................................................................. $125
(2) Triennial renewal of each license.................................................... 125
(b) Associate adjusters:
(1) Application and license ................................................................... 125
(2) Triennial renewal of each license.................................................... 125
9. Licenses and renewals for appraisers of physical damage to motor vehicles:
(a) Application and license ....................................................................... $125
(b) Triennial renewal of each license.......................................................... 125
10. Additional title and property insurers pursuant to NRS 680A.240:
(a) Original registration.................................................................................. $50
(b) Annual renewal........................................................................................... 25
11. Insurance vending machines:
(a) Application and license, for each machine....................................... $125
(b) Triennial renewal of each license.......................................................... 125
12. Permit for solicitation for securities:
(a) Application for permit.......................................................................... $100
(b) Extension of permit................................................................................... 50
13. Securities salesmen for domestic insurers:
(a) Application and license .......................................................................... $25
(b) Annual renewal of license......................................................................... 15
14. Rating organizations:
(a) Application and license ....................................................................... $500
(b) Annual renewal........................................................................................ 500
15. Certificates and renewals for administrators licensed pursuant to chapter 683A of NRS:
(a) Application and certificate of registration ....................................... $125
(b) Triennial renewal...................................................................................... 125
16. For copies of the insurance laws of Nevada, a fee which is not less than the cost of producing the copies.
17. Certified copies of certificates of authority and licenses issued pursuant to the Insurance Code $10
18. For copies and amendments of documents on file in the Division, a reasonable charge fixed by the Commissioner, including charges for duplicating or amending the forms and for certifying the copies and affixing the official seal.
19. Letter of clearance for a producer of insurance or other licensee [,] if requested by someone other than the licensee $10
20. Certificate of status as a producer of insurance or other licensee [,] if requested by someone other than the licensee $10
κ2003 Statutes of Nevada, Page 3282 (CHAPTER 495, AB 453)κ
21. Licenses, appointments and renewals for bail agents:
(a) Application and license ....................................................................... $125
(b) Appointment for each surety insurer...................................................... 15
(c) Triennial renewal of each license.......................................................... 125
22. Licenses and renewals for bail enforcement agents:
(a) Application and license ....................................................................... $125
(b) Triennial renewal of each license.......................................................... 125
23. Licenses, appointments and renewals for general agents for bail:
(a) Application and license ....................................................................... $125
(b) Initial appointment by each insurer........................................................ 15
(c) Triennial renewal of each license.......................................................... 125
24. Licenses and renewals for bail solicitors:
(a) Application and license........................................................................ $125
(b) Triennial renewal of each license.......................................................... 125
25. Licenses and renewals for title agents and escrow officers:
(a) Application and license ....................................................................... $125
(b) Triennial renewal of each license.......................................................... 125
(c) Appointment fee for each title insurer.................................................... 15
(d) Change in name or location of business or in association.................. 10
26. Certificate of authority and renewal for a seller of prepaid funeral contracts $125
27. Licenses and renewals for agents for prepaid funeral contracts:
(a) Application and license ....................................................................... $125
(b) Triennial renewal of each license.......................................................... 125
28. Licenses, appointments and renewals for agents for fraternal benefit societies:
(a) Application and license ....................................................................... $125
(b) Appointment for each insurer.................................................................. 15
(c) Triennial renewal of each license.......................................................... 125
29. Reinsurance intermediary broker or manager:
(a) Application and license........................................................................ $125
(b) Triennial renewal of each license.......................................................... 125
30. Agents for and sellers of prepaid burial contracts:
(a) Application and certificate or license................................................. $125
(b) Triennial renewal...................................................................................... 125
31. Risk retention groups:
(a) Initial registration and review of an application........................... $2,450
(b) Each annual continuation of a certificate of registration............. 2,450
32. Required filing of forms:
(a) For rates and policies............................................................................... $25
(b) For riders and endorsements.................................................................... 10
33. Viatical settlements:
(a) Provider of viatical settlements:
(1) Application and license............................................................... $1,000
(2) Annual renewal............................................................................... 1,000
(b) Broker of viatical settlements:
(1) Application and license.................................................................... 500
(2) Annual renewal.................................................................................. 500
34. Insurance consultants:
(a) Application and license........................................................................ $125
κ2003 Statutes of Nevada, Page 3283 (CHAPTER 495, AB 453)κ
(b) Triennial renewal................................................................................... $125
35. Licensees association with or appointment or sponsorship by an organization:
(a) Initial appointment, association or sponsorship, for each organization $50
(b) Renewal of each association or sponsorship........................................ 50
(c) Annual renewal of appointment.............................................................. 15
36. Purchasing groups:
(a) Initial registration and review of an application.......................... $100
(b) Each annual continuation of registration......................................... 100
Sec. 8. NRS 680B.070 is hereby amended to read as follows:
680B.070 1. Each authorized insurer, fraternal benefit society, health maintenance organization, organization for dental care , prepaid limited health service organization and motor club shall on or before March 1 of each year pay to the Commissioner [the] a reasonable uniform amount, not to exceed [$15,] $30, as the Commissioner requires, to cover the assessment levied upon this state in the same calendar year by the National Association of Insurance Commissioners to defray:
(a) The general expenses of the Association; and
(b) Reasonable and necessary travel and related expenses incurred by the Commissioner and members of his staff, without limitation as to number, in attending meetings of the Association and its committees, subcommittees, hearings and other official activities.
The Commissioner shall give written notice of the required amount.
2. Expenses incurred for the purposes described in paragraphs (a) and (b) of subsection 1 must be paid in full and are not subject to the limitations expressed in NRS 281.160 or in the regulations of any state agency.
3. All money received by the Commissioner pursuant to subsection 1 must be deposited in the State Treasury for credit to the National Association Account of the Division of Insurance, which is hereby created in the State General Fund. Except as otherwise provided in subsection 2, all claims against the Account must be paid as other claims against the State are paid.
Sec. 9. NRS 681A.160 is hereby amended to read as follows:
681A.160 1. Except as otherwise provided in subsection 2, credit must be allowed if reinsurance is ceded to an assuming insurer which is accredited as a reinsurer in this state. An accredited reinsurer is one which:
(a) Files with the Commissioner an executed form approved by the Commissioner as evidence of its submission to this states jurisdiction;
(b) Submits to this states authority to examine its books and records;
(c) [Is] Files with the Commissioner a certified copy of a certificate of authority or other evidence approved by the Commissioner indicating that it is licensed to transact insurance or reinsurance in at least one state, or in the case of a branch in the United States of an alien assuming insurer is entered through and licensed to transact insurance or reinsurance in at least one state;
(d) Files annually with the Commissioner a copy of its annual statement filed with the Division of its state of domicile or entry and a copy of its most recent audited financial statement; and
(e) Maintains a surplus as regards policyholders in an amount which is not less than $20,000,000 and whose accreditation:
(1) Has not been denied by the Commissioner within 90 days after its submission; or
κ2003 Statutes of Nevada, Page 3284 (CHAPTER 495, AB 453)κ
(2) Has been approved by the Commissioner.
2. No credit may be allowed for a domestic ceding insurer if the assuming insurers accreditation has been revoked by the Commissioner after notice and a hearing.
Sec. 10. NRS 681A.180 is hereby amended to read as follows:
681A.180 1. [Credit] Except as otherwise provided in subsection 4, credit must be allowed if reinsurance is ceded to an assuming insurer which maintains a trust fund in a qualified financial institution in the United States for the payment of the valid claims of its policyholders and ceding insurers in the United States, their assigns and successors in interest. The assuming insurer shall report annually to the Commissioner information substantially the same as that required to be reported on the National Association of Insurance Commissioners form of annual statement by licensed insurers to enable the Commissioner to determine the sufficiency of the trust fund.
2. In the case of a single assuming insurer, the trust must consist of an account in trust equal to the assuming insurers liabilities attributable to business written in the United States and the assuming insurer shall maintain a surplus in trust of not less than $20,000,000.
3. In the case of a group of incorporated and individual unincorporated underwriters, the trust must consist of an account in trust equal to the groups liabilities attributable to business written in the United States and the group shall maintain a surplus in trust of which $100,000,000 must be held jointly for the benefit of ceding insurers in the United States to any member of the group, and the group shall make available to the Commissioner an annual certification of the solvency of each underwriter by the groups domiciliary regulator and its independent public accountants.
4. If the assuming insurer does not meet the requirements of NRS 681A.110, 681A.160 or 681A.170, credit must not be allowed unless the assuming insurer has agreed to the following conditions set forth in the trust agreement:
(a) Notwithstanding any provision to the contrary in the trust instrument, if the trust fund consists of an amount that is less than the amount required pursuant to this section, or if the grantor of the trust fund is declared to be insolvent or placed into receivership, rehabilitation, liquidation or a similar proceeding in accordance with the laws of the grantors state or country of domicile, the trustee of the trust fund must comply with an order of the commissioner of insurance or other appropriate person with regulatory authority over the trust fund in that state or country or a court of competent jurisdiction requiring the trustee to transfer to that commissioner or person all the assets of the trust fund;
(b) The assets of the trust fund must be distributed by and claims filed with and valued by the commissioner of insurance or other appropriate person with regulatory authority over the trust fund in accordance with the laws of the state in which the trust fund is domiciled that are applicable to the liquidation of domestic insurers in that state;
(c) If the commissioner of insurance or other appropriate person with regulatory authority over the trust fund determines that the assets of the trust fund or any portion of the trust fund are not required to satisfy any claim of any ceding insurer of the grantor of the trust fund in the United States, the assets must be returned by that commissioner or person to the trustee of the trust fund for distribution in accordance with the trust agreement; and
κ2003 Statutes of Nevada, Page 3285 (CHAPTER 495, AB 453)κ
(d) The grantor of the trust must waive any right that:
(1) Is otherwise available to him under the laws of the United States; and
(2) Is inconsistent with the provisions of this subsection.
Sec. 11. NRS 681A.190 is hereby amended to read as follows:
681A.190 1. Credit must be allowed if reinsurance is ceded to a group of incorporated insurers under common administration which:
(a) Does not engage in any business other than underwriting as a member of the group;
(b) Is subject to the same amount of regulation and solvency control by the groups domiciliary regulator as are the unincorporated members of the group;
(c) Reports annually to the Commissioner the information required by subsection 1 of NRS 681A.180;
[(b)] (d) Has continuously transacted insurance outside the United States for at least 3 years immediately before making an application for accreditation;
[(c)] (e) Submits to this states authority to examine its books and records and bears the expense of the examination;
[(d)] (f) Has aggregate policyholders surplus of $10,000,000,000; and
[(e)] (g) Maintains a trust pursuant to subsection 2.
2. The trust must be in an amount equal to the groups several liabilities attributable to business ceded by ceding insurers in the United States to any member of the group pursuant to contracts of reinsurance issued in the name of the group, and the group shall maintain a joint surplus in trust of which $100,000,000 must be held jointly for the benefit of ceding insurers in the United States to any member of the group as additional security for any such liabilities.
3. Each member of the group shall , within 90 days after the date its financial statements must be filed with the groups domiciliary regulator, make available to the Commissioner an annual certification of the members solvency by the members domiciliary regulator and its independent public accountant.
Sec. 12. NRS 681A.200 is hereby amended to read as follows:
681A.200 1. A trust for the purposes of NRS 681A.180 or 681A.190 , and any amendment to the trust, must be established or amended in a form approved by [the Commissioner.] :
(a) The Commissioner; and
(b) The commissioner of insurance or other appropriate person of:
(1) The state in which the trust is domiciled; or
(2) Any other state that, pursuant to the trust instrument, accepts regulatory authority over the trust.
2. The form of the trust and any amendment to the trust must be filed with the commissioner of insurance or other appropriate person of each state in which the policyholders of the ceding insurer who are the beneficiaries of the trust are domiciled.
3. The trust instrument must provide that contested claims become valid [and enforceable upon] , enforceable and payable from money held in the trust fund to the extent that the contested claims remain unsatisfied, within 30 days after the entry of the final order of any court of competent jurisdiction in the United States. The trust must vest legal title to its assets in the trustees of the trust for its policyholders and ceding insurers in the United States, their assigns and successors in interest.
κ2003 Statutes of Nevada, Page 3286 (CHAPTER 495, AB 453)κ
States, their assigns and successors in interest. The trust and the assuming insurer are subject to examination as determined by the Commissioner. The trust must remain in effect for as long as the assuming insurer or any member or former member of the group of insurers has outstanding obligations due under the agreements for reinsurance subject to the trust.
[2. No]
4. Not later than February 28 of each year the trustees of the trust shall report to the Commissioner in writing setting forth the balance of the trust and listing the trusts investments at the end of the preceding year and shall certify the date of termination of the trust, if so planned, or certify that the trust will not expire before the next following December 31.
Sec. 13. NRS 681A.210 is hereby amended to read as follows:
681A.210 1. Except as otherwise provided in subsection 2, if the assuming insurer is not licensed or accredited to transact insurance or reinsurance in this state, the credit permitted by NRS 681A.170 or 681A.180 must not be allowed unless the assuming insurer agrees in the agreements for reinsurance:
(a) That in the event of the failure of the assuming insurer to perform its obligations under the terms of the agreement, the assuming insurer, at the request of the ceding insurer, will submit to the jurisdiction of any court of competent jurisdiction in any state of the United States, will comply with all requirements necessary to give the court jurisdiction, and will abide by the final decision of the court or of any appellate court in the event of an appeal; [and]
(b) To designate the Commissioner or a designated attorney as its true and lawful attorney upon whom may be served any lawful process in an action, suit or proceeding instituted by or on behalf of the ceding company [.] ; and
(c) To comply with the conditions set forth in subsection 4 of NRS 681A.180.
2. This section does not conflict with or override the obligation of the parties to an agreement for reinsurance to arbitrate their disputes [,] if such an obligation is created in the agreement.
Sec. 14. NRS 681A.420 is hereby amended to read as follows:
681A.420 1. A person shall not act as a broker for reinsurance [if he maintains an office, directly or as a member or employee of a firm or association or as an officer, director or employee of a corporation:
(a) In this state,] for a domestic insurer or reinsurer unless he is [a] :
(a) A licensed producer in this state; or
(b) [In another state, unless he is a licensed producer] Licensed as a nonresident intermediary for reinsurance in this state . [or in another state having a law substantially similar to this title or he is licensed in this state as a nonresident intermediary.]
2. A person shall not act as a [manager] broker for reinsurance [:
(a) For] for a foreign or alien insurer or reinsurer [domiciled] if he maintains an office, directly or as a member or employee of a firm or association or as an officer, director or employee of a corporation in this state, unless he is [a] :
(a) A licensed producer in this state; or
(b) [In] Licensed as a nonresident intermediary for reinsurance in this state . [, if he maintains an office individually or as a member or employee of a firm or association or as an officer, director or employee of a corporation in this state, unless he is a licensed producer in this state; or
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a firm or association or as an officer, director or employee of a corporation in this state, unless he is a licensed producer in this state; or
(c) In another state for a foreign insurer, unless he is a licensed producer in this state or in another state having a law substantially similar to this title or he is licensed in this state as a nonresident intermediary.]
3. A person shall not act as a manager for reinsurance [shall:] for a domestic insurer or reinsurer unless he is:
(a) A licensed producer in this state; or
(b) Licensed as a nonresident manager for reinsurance in this state.
4. A person shall not act as a manager for reinsurance for any foreign or alien insurer or reinsurer if he maintains an office, directly or as a member or employee of a firm or association or as an officer, director or employee of a corporation in this state, unless he is:
(a) A licensed producer in this state; or
(b) Licensed as a nonresident manager for reinsurance in this state.
5. A manager for reinsurance shall:
(a) File a bond from an insurer in an amount that is acceptable to the Commissioner for the protection of the reinsurer; and
(b) Maintain a policy covering errors and omissions in an amount that is acceptable to the Commissioner.
Sec. 15. NRS 681B.160 is hereby amended to read as follows:
681B.160 1. [All] Except as otherwise provided in subsection 5, all bonds or other evidences of debt having a fixed term and rate of interest held by an insurer may, if amply secured and not in default as to principal or interest, be valued as follows:
(a) If purchased at par, at the par value.
(b) If purchased above or below par, on the basis of the purchase price adjusted so as to bring the value to par at maturity and so as to yield in the meantime the effective rate of interest at which the purchase was made [,] or , in lieu of [such] that method, according to [such] an accepted method of valuation [as] that is approved by the Commissioner.
2. The purchase price [shall in no case] must not be taken at a higher figure than the actual market value at the time of purchase, plus actual brokerage, transfer, postage or express charges paid in the acquisition of such securities.
3. Unless otherwise provided by a valuation established or approved by the Commissioner, [no such security shall] the security must not be carried at above the call price for the entire issue during any period within which the security may be so called.
4. The Commissioner [shall have] has full discretion in determining the method of calculating values [according to the rules set forth in] pursuant to this section.
5. A valuation determined pursuant to this section must not be inconsistent with any applicable valuation or method then currently formulated or approved by the National Association of Insurance Commissioners or its successor organization.
Sec. 16. NRS 681B.170 is hereby amended to read as follows:
681B.170 1. [Securities,] Except as otherwise provided in subsection 4, securities, other than those [referred to] specified in NRS 681B.160, held by an insurer [shall] must be valued, in the discretion of the Commissioner, at their market value, or at their appraised value, or at prices determined by him as representing their fair market value.
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2. Preferred or guaranteed stocks or shares while paying full dividends may be carried at a fixed value in lieu of market value, at the discretion of the Commissioner and in accordance with [such] a method of computation [as he may approve.] approved by the Commissioner.
3. The stock of a subsidiary of an insurer [shall] must be valued on the basis of the value of only [such of the] those assets of [such] the subsidiary as would constitute lawful investments of the insurer if acquired or held directly by the insurer.
4. A valuation determined pursuant to this section must not be inconsistent with any applicable valuation or method then currently formulated or approved by the National Association of Insurance Commissioners or its successor organization.
Sec. 17. NRS 682A.080 is hereby amended to read as follows:
682A.080 1. An insurer may invest any of its funds in obligations other than those eligible for investment under NRS 682A.230 [(] , relating to real property mortgages , [),] if they are issued, assumed or guaranteed by any solvent institution [created or existing under the laws of the United States of America, Canada or Mexico, or of any state, district, province or territory thereof,] and are qualified under any of the following:
(a) Obligations which are secured by adequate collateral security and bear fixed interest if , during each of any 3, including the last 2, of the 5 fiscal years next preceding the date of acquisition by the insurer, the net earnings of the issuing, assuming or guaranteeing institution available for its fixed charges, as defined in NRS 682A.090, have been not less than 1 1/2 times the total of its fixed charges for [such] that year. In determining the adequacy of collateral security , not more than one-third of the total value of [such] the required collateral may consist of stock other than stock meeting the requirements of NRS 682A.100 [(] , relating to preferred or guaranteed stock . [).]
(b) Fixed interest-bearing obligations, other than those described in paragraph (a), if the net earnings of the issuing, assuming or guaranteeing institution available for its fixed charges for a period of 5 fiscal years next preceding the date of acquisition by the insurer have averaged per year not less than 1 1/2 times its average annual fixed charges applicable to [such] that period and if , during the last year of [such period such] that period, the net earnings have been not less than 1 1/2 times its fixed charges for [such] that year.
(c) Adjustment, income or other contingent interest obligations if the net earnings of the issuing, assuming or guaranteeing institution available for its fixed charges for a period of 5 fiscal years next preceding the date of acquisition by the insurer have averaged per year not less than 1 1/2 times the sum of its average annual fixed charges and its average annual maximum contingent interest applicable to such period and if , during each of the last 2 years of [such period such] that period, the net earnings have not been less than 1 1/2 times the sum of its fixed charges and maximum contingent interest for such year.
(d) Capital stock and other securities of:
(1) A state development corporation organized under the provisions of chapter 670 of NRS.
(2) A corporation for economic revitalization and diversification organized under the provisions of chapter 670A of NRS, if the insurer is a member of the corporation, and to the extent of its loan limit established under NRS 670A.200.
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member of the corporation, and to the extent of its loan limit established under NRS 670A.200.
2. No insurer may invest in any such bonds or evidences of indebtedness in excess of 10 percent of any issue of such bonds or evidences of indebtedness or, subject to subsection 1 of NRS 682A.050 [(diversification),] , relating to diversification, more than an amount equal to 10 percent of the insurers admitted assets in any issue.
Sec. 18. NRS 682A.100 is hereby amended to read as follows:
682A.100 1. An insurer may invest in preferred or guaranteed stocks or shares of any solvent institution [existing under the laws of the United States of America, Canada or Mexico, or of any state or province thereof,] if all of the prior obligations and prior preferred stocks, if any, of the institution at the date of acquisition of the investment by the insurer are eligible as investments under this chapter and if the net earnings of the institution available for its fixed charges during either of the last 2 years have been, and during each of the last 5 years have averaged, not less than 1 1/2 times the sum of its average annual fixed charges, if any, its average annual maximum contingent interest, if any, and its average annual preferred dividend requirements. For the purposes of this section, the computation refers to the fiscal years immediately preceding the date of acquisition of the investment by the insurer, and the term preferred dividend requirement means cumulative or noncumulative dividends, whether paid or not.
2. No insurer may invest in any such preferred or guaranteed stocks in an amount in excess of 35 percent of the particular issue of guaranteed or preferred stock or, subject to subsection 1 of NRS 682A.050 , more than an amount equal to 10 percent of the insurers admitted assets in any one issue.
Sec. 19. NRS 682A.110 is hereby amended to read as follows:
682A.110 1. An insurer may invest up to 35 percent of its assets in nonassessable common stocks, other than insurance stocks, of any solvent corporation , [organized and existing under the laws of the United States of America, Canada or Mexico, or of any state or province thereof,] except that bank or trust company stocks may be assessable and any stocks may be assessable for taxes [,] if the corporation has had net earnings available for dividends on the stock in each of the 5 fiscal years next preceding acquisition by the insurer. If the issuing corporation has not been in legal existence for all of the 5 fiscal years but was formed as a consolidation or merger of two or more businesses of which at least one was in operation on a date 5 years before the investment, the test of eligibility of its common stock under this section must be based upon consolidated pro forma statements of the predecessor or constituent institutions.
2. Any amount invested in a fund or trust under NRS 682A.140 must not be included in computing the amounts prescribed in subsection 1.
Sec. 20. NRS 683A.08524 is hereby amended to read as follows:
683A.08524 1. Except as otherwise provided [by] in subsection 2, the Commissioner shall issue a certificate of registration as an administrator to an applicant who:
(a) Submits an application on a form prescribed by the Commissioner;
(b) Has complied with the provisions of NRS 683A.08522; and
(c) Pays the fee for the issuance of a certificate of registration prescribed in NRS 680B.010.
2. The Commissioner may refuse to issue a certificate of registration as an administrator to an applicant if the Commissioner determines that the applicant or any person who has completed an affidavit pursuant to subsection 6 of NRS 683A.08522:
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applicant or any person who has completed an affidavit pursuant to subsection 6 of NRS 683A.08522:
(a) Is not competent to act as an administrator;
(b) Is not trustworthy or financially responsible;
(c) Does not have a good personal or business reputation;
(d) Has had a license or certificate to transact insurance denied for cause, suspended or revoked in this state or any other state; [or]
(e) Has failed to comply with any provision of this chapter [.] ; or
(f) Is financially unsound.
Sec. 21. NRS 683A.08528 is hereby amended to read as follows:
683A.08528 1. Not later than [March] July 1 of each year, each holder of a certificate of registration as an administrator shall file [a financial statement] with the Commissioner [on a form approved by the Commissioner.] an annual report for the most recently completed fiscal year of the administrator. Each annual report must be verified by at least two officers of the administrator.
2. Each annual report filed pursuant to this section must include all the following:
(a) Except as otherwise provided in this paragraph, a financial statement of the administrator that has been audited and prepared by an independent certified public accountant. In lieu of a financial statement that has been audited and prepared by an independent certified public accountant, the administrator may include with the annual report a financial statement that has been reviewed by an independent certified public accountant if:
(1) The total business assets of the administrator were less than $100,000 at the end of the most recently completed fiscal year of the administrator; or
(2) The administrator did not have any agreements to act as an administrator during the most recently completed fiscal year of the administrator.
(b) The complete name and address of each person, if any, for whom the administrator agreed to act as an administrator during the most recently completed fiscal year of the administrator.
(c) Any other information required by the Commissioner.
3. In addition to the information required pursuant to subsection 2, if an annual report is prepared on a consolidated basis, the annual report must include a columnar or combining worksheet that:
(a) Includes the amounts shown on the consolidated financial statement accompanying the annual report;
(b) Separately sets forth the amounts for each entity included in the worksheet; and
(c) Includes an explanation of each consolidating and eliminating entry included in the worksheet.
4. Each administrator who files an annual report pursuant to this section shall, at the time of filing the annual report, pay a filing fee in an amount determined by the Commissioner.
5. On or before September 1 of each year, the Commissioner shall, for each administrator, review the annual report that is most recently filed by the administrator. As soon as practicable after reviewing the report, the Commissioner shall:
(a) Issue a certificate to the administrator:
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(1) Indicating that, based on the annual report and accompanying financial statement, the administrator has a positive net worth and is currently licensed and in good standing in this state; or
(2) Setting forth any deficiency found by the Commissioner in the annual report and accompanying financial statement; or
(b) Submit a statement to any electronic database maintained by the National Association of Insurance Commissioners or any affiliate or subsidiary of the Association:
(1) Indicating that, based on the annual report and accompanying financial statement, the administrator has a positive net worth and is in compliance with existing law; or
(2) Setting forth any deficiency found by the Commissioner in the annual report and accompanying financial statement.
Sec. 22. NRS 683A.0892 is hereby amended to read as follows:
683A.0892 1. The Commissioner:
[1.] (a) Shall suspend or revoke the certificate of registration of an administrator if the Commissioner has determined, after notice and a hearing, that the administrator:
[(a)] (1) Is in an unsound financial condition;
[(b)] (2) Uses methods or practices in the conduct of his business that are hazardous or injurious to insured persons or members of the general public; or
[(c)] (3) Has failed to pay any judgment against him in this state within 60 days after the judgment became final.
[2.] (b) May suspend or revoke the certificate of registration of an administrator if the Commissioner determines, after notice and a hearing, that the administrator:
[(a)] (1) Has willfully violated or failed to comply with any provision of this Code, any regulation adopted pursuant to this Code or any order of the Commissioner;
[(b)] (2) Has refused to be examined by the Commissioner or has refused to produce accounts, records or files for examination upon the request of the Commissioner;
[(c)] (3) Has, without just cause, refused to pay claims or perform services pursuant to his contracts or has, without just cause, caused persons to accept less than the amount of money owed to them pursuant to the contracts, or has caused persons to employ an attorney or bring a civil action against him to receive full payment or settlement of claims;
[(d)] (4) Is affiliated with, managed by or owned by another administrator or an insurer who transacts insurance in this state without a certificate of authority or certificate of registration;
[(e)] (5) Fails to comply with any of the requirements for a certificate of registration;
[(f)] (6) Has been convicted of [,] or has entered a plea of guilty or nolo contendere to a felony, whether or not adjudication was withheld; [or
(g)] (7) Has had his authority to act as an administrator in another state limited, suspended or revoked [.
3. May,] ; or
(8) Has failed to file an annual report in accordance with NRS 683A.08528.
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(c) May suspend or revoke the certificate of registration of an administrator if the Commissioner determines, after notice and a hearing, that a responsible person:
(1) Has refused to provide any information relating to the administrators affairs or refused to perform any other legal obligation relating to an examination upon request by the Commissioner; or
(2) Has been convicted of or has entered a plea of guilty or nolo contendere to a felony committed on or after October 1, 2003, whether or not adjudication was withheld.
(d) May, upon notice to the administrator, suspend the certificate of registration of the administrator pending a hearing if:
[(a)] (1) The administrator is impaired or insolvent;
[(b)] (2) A proceeding for receivership, conservatorship or rehabilitation has been commenced against the administrator in any state; or
[(c)] (3) The financial condition or the business practices of the administrator represent an imminent threat to the public health, safety or welfare of the residents of this state.
[4.] (e) May, in addition to or in lieu of the suspension or revocation of the certificate of registration of the administrator, impose a fine of $2,000 for each act or violation.
2. As used in this section, responsible person means any person who is responsible for or controls or is authorized to control or advise the affairs of an administrator, including, without limitation:
(a) A member of the board of directors, board of trustees, executive committee or other governing board or committee of the administrator;
(b) The president, vice president, chief executive officer, chief operating officer or any other principal officer of an administrator, if the administrator is a corporation;
(c) A partner or member of the administrator, if the administrator is a partnership, association or limited-liability company; and
(d) Any shareholder or member of the administrator who directly or indirectly holds 10 percent or more of the voting stock, voting securities or voting interest of the administrator.
Sec. 23. NRS 683A.201 is hereby amended to read as follows:
683A.201 1. A person shall not sell, solicit or negotiate insurance in this state for any class of insurance unless he is licensed for that class of insurance.
2. An insurer is exempt from the requirement for licensure as a producer of insurance, but this exemption does not extend to an insurers officers, directors, employees, subsidiaries or affiliates [.] who sell, solicit or negotiate insurance.
3. A person required to be licensed in this state who transacts insurance without a license is subject to an administrative fine of not more that $1,000 for each violation.
Sec. 24. NRS 683A.211 is hereby amended to read as follows:
683A.211 The following persons need not be licensed as producers of insurance:
1. An officer, director or employee of an insurer or of a producer of insurance if the officer, director or employee does not receive any commission on policies written or sold to insure risks residing, located or to be performed in this state and:
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(a) The officer, director or employees activities are executive, administrative, managerial [,] or clerical , or a combination [of these,] thereof, and are only indirectly related to the sale, solicitation or negotiation of insurance;
(b) The officer, director or employees function relates to underwriting, control of losses, inspection or the processing, adjusting, investigating or settling of claims on contracts of insurance; or
(c) The officer, director or employee is acting in the capacity of a special agent or supervisor of an agency assisting producers of insurance where his activities are limited to providing technical advice and assistance to licensed producers and do not include sale, solicitation or negotiation of insurance.
2. A person who secures and furnishes information for the purpose of group life insurance, group property and casualty insurance, group annuities, or group or blanket accident and health insurance, or for the purpose of enrolling natural persons under plans, issuing certificates under plans or otherwise assisting in administering plans, or who performs administrative services related to mass marketed property and casualty insurance, if no commission is paid to him for the service [.] and he does not sell, solicit or negotiate insurance. As used in this subsection, blanket accident and health insurance has the meaning ascribed to it in NRS 689B.070.
3. An employer or association or its officers, directors or employees, or the trustees of an employees trust plan, to the extent that the employer, association, officers, directors, employees or trustees are engaged in the administration or operation of a program of employees benefits for the employers or associations own employees or the employees of its subsidiaries or affiliates, if the program involves the use of insurance issued by an insurer and the employer, association, officers, directors, employees or trustees are not compensated by the insurer issuing the contracts.
4. Employees of insurers or organizations employed by insurers who are engaged in the inspection, rating or classification of risks or in the supervision of the training of producers of insurance and are not individually engaged in the sale, solicitation or negotiation of insurance.
5. A person whose activities in this state are limited to advertising, without the intent to solicit insurance in this state, through communications in printed publications or electronic mass media whose distribution is not limited to residents of this state, if he does not sell, solicit or negotiate insurance of risks residing, located or to be performed in this state.
6. A salaried full-time employee who counsels or advises his employer concerning the interests of the employer, or of the subsidiaries or affiliates of the employer, in insurance, if the employee does not sell or solicit insurance or receive a commission.
7. An employee of a producer of insurance or an insurer who responds to requests from holders of policies previously issued, if the employee is not directly compensated according to the volume of premiums that may result from those services and does not solicit insurance or offer advice concerning terms or conditions of policies.
Sec. 25. NRS 683A.251 is hereby amended to read as follows:
683A.251 1. The Commissioner shall prescribe the form of application by a natural person for a license as a resident producer of insurance. The applicant must declare, under penalty of refusal to issue, or suspension or revocation of, the license, that the statements made in the application are true, correct and complete to the best of his knowledge and belief.
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belief. Before approving the application, the Commissioner must find that the applicant has:
(a) Attained the age of 18 years;
(b) Not committed any act that is a ground for refusal to issue, or suspension or revocation of, a license;
(c) Completed a course of study for the lines of authority for which the application is made, unless the applicant is exempt from this requirement;
(d) Paid the fee prescribed for the license and a fee of $15 for deposit in the Insurance Recovery Account, neither of which may be refunded; and
(e) Successfully passed the examinations for the lines of authority for which application is made, unless the applicant is exempt from this requirement.
2. A business organization must be licensed as a producer of insurance in order to act as such. Application must be made on a form prescribed by the Commissioner. Before approving the application, the Commissioner must find that the applicant has:
(a) Paid the fee prescribed for the license and a fee of $15 for deposit in the Insurance Recovery Account, neither of which may be refunded; and
(b) Designated a natural person who is licensed as a producer of insurance and who is affiliated with the business organization to be responsible for the organizations compliance with the laws and regulations of this state relating to insurance.
3. A natural person who is a resident of this state applying for a license must furnish a copy of a search concerning him conducted by the Federal Bureau of Investigation in its national criminal records [,] and of a search concerning him of the Central Repository for Nevada Records of Criminal History. The Commissioner shall adopt regulations concerning the procedures for obtaining this information.
4. The Commissioner may require any document reasonably necessary to verify information contained in an application.
Sec. 26. NRS 683A.261 is hereby amended to read as follows:
683A.261 1. Unless the Commissioner refuses to issue the license under NRS 683A.451, he shall issue a license as a producer of insurance to a person who has satisfied the requirements of NRS 683A.241 and 683A.251. A producer of insurance may qualify for a license in one or more of the lines of authority permitted by statute or regulation, including:
(a) Life insurance on human lives, which includes benefits from endowments and annuities and may include additional benefits from death by accident and benefits for dismemberment by accident and for disability.
(b) Health insurance for sickness, bodily injury or accidental death, which may include benefits for disability.
(c) Property insurance for direct or consequential loss or damage to property of every kind.
(d) Casualty insurance against legal liability, including liability for death, injury or disability and damage to real or personal property.
(e) Surety indemnifying financial institutions or providing bonds for fidelity, performance of contracts [,] or financial guaranty.
(f) Variable annuities [,] and variable life insurance, including coverage reflecting the results of a separate investment account.
(g) Credit insurance, including life, disability, property, unemployment, involuntary unemployment, mortgage life, mortgage guaranty, mortgage disability, guaranteed protection of assets, and any other form of insurance offered in connection with an extension of credit that is limited to wholly or partially extinguishing the obligation which the Commissioner determines should be considered as limited-line credit insurance.
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offered in connection with an extension of credit that is limited to wholly or partially extinguishing the obligation which the Commissioner determines should be considered as limited-line credit insurance.
(h) Personal lines, consisting of automobile and motorcycle insurance and residential property insurance, including coverage for flood, of personal watercraft and of excess liability, written over one or more underlying policies of automobile or residential property insurance.
(i) Fixed annuities as a limited line.
(j) Travel and baggage as a limited line.
(k) Rental car agency as a limited line.
2. A license as a producer of insurance remains in effect unless revoked, suspended [, allowed to expire] or otherwise terminated [, if the license is renewed when due,] if a request for a renewal is submitted on or before the date for the renewal specified on the license, the fee for renewal and a fee of $15 for deposit in the Insurance Recovery Account are paid for each license and each affiliation with a business organization licensed pursuant to subsection 2 of NRS 683A.251 , and any requirement for education or any other requirement to renew the license is satisfied by the [due date.] date specified on the license for the renewal. A producer of insurance may submit a request for a renewal of his license within 30 days after the date specified on the license for the renewal if the producer of insurance otherwise complies with the provisions of this subsection and pays, in addition to any fee paid pursuant to this subsection, a penalty of 50 percent of the renewal fee. A license as a producer of insurance expires if the Commissioner receives a request for a renewal of the license more than 30 days after the date specified on the license for the renewal. A fee paid pursuant to this subsection is nonrefundable.
3. A natural person who allows his license as a producer of insurance to expire may reapply for the same license within 12 months after the date specified on the license for a renewal [was due] without passing a written examination [,] or completing a course of study required by paragraph (c) of subsection 1 of NRS 683A.251, but a penalty of twice the [unpaid] renewal fee is required for any request for a renewal [fee] of the license that is received after the [due date.] date specified on the license for the renewal.
4. A licensed producer of insurance who is unable to renew his license because of military service, extended medical disability or other extenuating circumstance may request a waiver of the time limit and of [an examination,] any fine or sanction otherwise required or imposed because of the failure to renew.
5. A license must state the licensees name, address, personal identification number, the date of issuance, the lines of authority and the date of expiration and must contain any other information the Commissioner considers necessary. A resident producer of insurance shall maintain a place of business in this state which is accessible to the public and where he principally conducts transactions under his license. The place of business may be in his residence. The license must be conspicuously displayed in an area of the place of business which is open to the public.
6. A licensee shall inform the Commissioner of [a] each change of location from which he conducts business as a producer of insurance and each change of business or residence address, in writing or by other means acceptable to the Commissioner , within 30 days after the change. If a licensee changes [his] the location from which he conducts business as a producer of insurance or his business or residence address without giving written notice and the Commissioner is unable to locate the licensee after diligent effort, he may revoke the license without a hearing.
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producer of insurance or his business or residence address without giving written notice and the Commissioner is unable to locate the licensee after diligent effort, he may revoke the license without a hearing. The mailing of a letter by certified mail, return receipt requested, addressed to the licensee at his last mailing address appearing on the records of the Division, and the return of the letter undelivered, constitutes a diligent effort by the Commissioner.
Sec. 27. NRS 683A.301 is hereby amended to read as follows:
683A.301 1. An applicant for a license as a producer of insurance or a licensee who desires to use a name other than his true name as shown on the license shall submit a request for approval of the name and file with the Commissioner a certified copy of the certificate or any renewal certificate filed pursuant to chapter 602 of NRS. An incorporated applicant or licensee shall file with the Commissioner a document showing the corporations true name and all fictitious names under which it conducts or intends to conduct business. A licensee shall file promptly with the Commissioner a written notice of any change in or discontinuance of the use of a fictitious name.
2. The Commissioner may disapprove in writing the use of a true name, other than the true name of a natural person who is the applicant or licensee, or a fictitious name of any applicant or licensee, on any of the following grounds:
(a) The name interferes with or is deceptively similar to a name already filed and in use by another licensee.
(b) Use of the name may mislead the public in any respect.
(c) The name states or implies that the applicant or licensee is an insurer, motor club or hospital service plan or is entitled to engage in activities related to insurance not permitted under the license applied for or held.
(d) The name states or implies that the licensee is an underwriter, but:
(1) A natural person licensed as an agent or broker for life insurance may describe himself as an underwriter or chartered life underwriter if entitled to do so;
(2) A natural person licensed for property and casualty insurance may use the designation chartered property and casualty underwriter if entitled thereto; and
(3) An insurance agent or brokers trade association may use a name containing the word underwriter.
(e) The licensee [has already filed and not discontinued the use of] submits a request to use more than [two names, including the true name.] one fictitious name at a single business location.
3. A licensee shall not use a name after written notice from the Commissioner indicates that its use violates the provisions of this section. If the Commissioner determines that the use is justified by mitigating circumstances, he may permit, in writing, the use of the name to continue for a specified reasonable period upon conditions imposed by him for the protection of the public consistent with this section.
4. Paragraphs (a), (c) and (d) of subsection 2 do not apply to the true name of an organization which on July 1, 1965, held under that name a type of license similar to those governed by this chapter, or to a fictitious name used on July 1, 1965, by a natural person or organization holding such a license, if the fictitious name was filed with the Commissioner on or before July 1, 1965.
κ2003 Statutes of Nevada, Page 3297 (CHAPTER 495, AB 453)κ
Sec. 28. NRS 683A.351 is hereby amended to read as follows:
683A.351 1. Every producer of insurance shall keep complete records of transactions under his license. The records must show, for each insurance policy placed or countersigned by or through the licensee, not less than the names of the insurer and insured, the number and expiration date of, and premium payable as to, the policy or contract, the names of all other persons from whom business is accepted or to whom commissions are promised or paid, all premiums collected, and such additional information as the Commissioner may reasonably require.
2. The records must be open to examination of the Commissioner at all times, and the Commissioner may at any time require the licensee to furnish to him, in such a manner or form as he requires, any information kept or required to be kept in those records. The records may be kept in an electronic format if, using the electronic format, the records are retained in accordance with this section.
3. Records of a particular policy or contract may be destroyed 3 years after expiration of the policy or contract.
Sec. 29. Chapter 683C of NRS is hereby amended by adding thereto the provisions set forth as sections 30 and 31 of this act.
Sec. 30. The provisions of chapters 679A and 679B of NRS and NRS 683A.301, 683A.341 and 683A.351 apply to an insurance consultant.
Sec. 31. A licensee shall inform the Commissioner of all locations from which business is conducted and of any change of business or residence address, in writing or by any other means acceptable to the Commissioner, within 30 days after the change. If a licensee changes his address without giving written notice and the Commissioner is unable to locate the licensee after making a diligent effort, the Commissioner may revoke the license without a hearing. The mailing of a letter by certified mail, return receipt requested, addressed to the licensee at his last mailing address appearing on the records of the Division, and the return of the letter undelivered, constitutes a diligent effort by the Commissioner.
Sec. 32. NRS 683C.020 is hereby amended to read as follows:
683C.020 1. Except as otherwise provided in subsection 2, no person may engage in the business of an insurance consultant unless a license has been issued to him by the Commissioner.
2. An insurance consultants license is not required for:
(a) An attorney licensed to practice law in this state who is acting in his professional capacity;
(b) A licensed insurance agent, broker or surplus lines broker;
(c) A trust officer of a bank who is acting in the normal course of his employment; or
(d) An actuary or a certified public accountant who provides information, recommendations, advice or services in his professional capacity.
3. A person required to be licensed in this state who acts as an insurance consultant without a license is subject to an administrative fine of not more than $1,000 for each act or violation.
Sec. 33. NRS 683C.030 is hereby amended to read as follows:
683C.030 1. An application for a license to act as an insurance consultant must be submitted to the Commissioner on forms prescribed by the Commissioner and must be accompanied by [a] the applicable license fee [of $78] set forth in NRS 680B.010 and an additional fee of $15 which must be deposited in the Insurance Recovery Account created pursuant to NRS 679B.305.
κ2003 Statutes of Nevada, Page 3298 (CHAPTER 495, AB 453)κ
must be deposited in the Insurance Recovery Account created pursuant to NRS 679B.305. The license fee and the additional fee are not refundable. If the applicant is a natural person, the application must include the social security number of the applicant.
2. An applicant for an insurance consultants license must successfully complete an examination and a course of instruction which the Commissioner shall establish by regulation.
3. Each license issued pursuant to this chapter is valid for 3 years from the date of issuance [,] or until it is suspended, revoked or otherwise terminated.
Sec. 34. NRS 683C.035 is hereby amended to read as follows:
683C.035 1. The Commissioner shall prescribe the form of application by a natural person for a license as an insurance consultant. The applicant must declare, under penalty of refusal to issue, or suspension or revocation of, the license, that the statements made in the application are true, correct and complete to the best of his knowledge and belief. Before approving the application, the Commissioner must find that the applicant has:
(a) Attained the age of 18 years.
(b) Not committed any act that is a ground for refusal to issue, or suspension or revocation of, a license [.] pursuant to NRS 683A.451.
(c) Paid the fee prescribed for the license and a fee of $15 for deposit in the Insurance Recovery Account, neither of which may be refunded.
(d) Passed each examination required for the license and successfully completed each course of instruction which the Commissioner requires by regulation, unless he is a resident of another state and holds a similar license in that state.
2. A business organization must be licensed as an insurance consultant in order to act as such. Application must be made on a form prescribed by the Commissioner. Before approving the application, the Commissioner must find that the applicant has:
(a) Paid the fee prescribed for the license and a fee of $15 for deposit in the Insurance Recovery Account, neither of which may be refunded; and
(b) Designated a natural person who is licensed as an insurance consultant in this state and who is affiliated with the business organization to be responsible for the organizations compliance with the laws and regulations of this state relating to insurance.
3. The Commissioner may require any document reasonably necessary to verify information contained in an application.
4. A license issued pursuant to this chapter is valid for 3 years after the date of issuance or until it is suspended, revoked or otherwise terminated.
5. An insurance consultant may qualify for a license pursuant to this chapter in one or more of the lines of authority set forth in paragraphs (a) to (d), inclusive, of subsection 1 of NRS 683A.261.
Sec. 35. NRS 683C.040 is hereby amended to read as follows:
683C.040 1. A license may be renewed for additional 3-year periods by submitting to the Commissioner an application for renewal and:
[1.] (a) If the application is made:
[(a)] (1) On or before the expiration date of the license, the applicable renewal fee and an additional fee of $15 for deposit in the Insurance Recovery Account; or
κ2003 Statutes of Nevada, Page 3299 (CHAPTER 495, AB 453)κ
[(b)] (2) Not more than 30 days after the expiration date of the license, the applicable renewal fee plus any late fee required and an additional fee of $15 for deposit in the Insurance Recovery Account;
[2.] (b) If the applicant is a natural person, the statement required pursuant to NRS 683C.043; and
[3.] (c) If the applicant is a resident, proof of the successful completion of appropriate courses of study required for renewal, as established by the Commissioner by regulation.
2. The fees specified in this section are not refundable.
Sec. 36. NRS 683C.070 is hereby amended to read as follows:
683C.070 [No] A person licensed pursuant to this chapter may not concurrently hold [an insurance agents license, brokers] a license as a producer of insurance or a surplus lines brokers license in any line.
Sec. 37. NRS 683C.080 is hereby amended to read as follows:
683C.080 [No] A licensed insurance consultant [may] shall not employ, be employed by or be in partnership with, or receive any remuneration arising out of his activities as an insurance consultant from, any licensed producer of insurance [agent, broker] or surplus lines broker or insurer.
Sec. 38. NRS 685A.070 is hereby amended to read as follows:
685A.070 1. A broker shall not knowingly place surplus lines insurance with an insurer which is unsound financially or ineligible pursuant to this section.
2. Except as otherwise provided in this section, [no] an insurer is not eligible [for the acceptance of] to accept surplus lines risks pursuant to this chapter unless it has surplus as to policyholders in an amount of not less than [$5,000,000] $15,000,000 and, if an alien insurer, unless it has and maintains in a bank or trust company which is a member of the United States Federal Reserve System a trust fund established pursuant to terms that are reasonably adequate [for the protection of] to protect all of its policyholders in the United States . [in an amount of not less than $1,500,000.] Such a trust fund must not have an expiration date which is at any time less than 5 years in the future, on a continuing basis. In the case of:
(a) A single alien insurer, such a trust fund must not be less than the greater of $5,400,000 or 30 percent of the gross liabilities of the alien insurer for surplus lines in the United States, excluding any liabilities for aviation, wet marine and transportation insurance, not to exceed $60,000,000, to be determined annually on the basis of accounting practices and procedures that are substantially equivalent to the accounting practices and procedures applicable in this state as of December 31 of the year immediately preceding the date of the determination where:
(1) The liabilities are maintained in an irrevocable trust account in a qualified financial institution in the United States, on behalf of policyholders in the United States, consisting of cash, securities, letters of credit or any other investments of substantially the same character and quality as investments that are eligible investments pursuant to chapter 682A of NRS for the capital and statutory reserves of admitted insurers to write like kinds of insurance in this state. The trust fund, which must be included in any calculation of capital and surplus or its equivalent, must comply with the requirements set forth in the Standard Trust Agreement required for listing with the International Insurers Department of the National Association of Insurance Commissioners;
κ2003 Statutes of Nevada, Page 3300 (CHAPTER 495, AB 453)κ
required for listing with the International Insurers Department of the National Association of Insurance Commissioners;
(2) The alien insurer may request approval by the Commissioner to use the trust fund to pay any valid claim against a surplus line if the balance of the trust fund is not, during any period, less than $5,400,000 or 30 percent of the alien insurers current gross liabilities for surplus lines in the United States, excluding any liabilities for aviation, wet marine and transportation insurance; and
(3) In calculating the amount of the trust fund required by this subsection, credit must be given for any deposits for any surplus lines that are separately required and maintained within a state or territory of the United States, not to exceed the amount of the alien insurers loss and loss adjustment reserves maintained in that state or territory.
(b) A group of insurers which includes individual unincorporated insurers, such a trust fund must not be less than $100,000,000.
[(b)] (c) A group of incorporated insurers under common administration, such a trust fund must not be less than $100,000,000. Each insurer within the group must individually maintain capital and surplus of not less than $25,000,000. The group of incorporated insurers must:
(1) Operate under the supervision of the Department of Trade and Industry of the United Kingdom;
(2) Possess aggregate policyholders surplus of $10,000,000,000, which must consist of money in trust in an amount not less than the assuming insurers liabilities attributable to insurance written in the United States; and
(3) Maintain a joint trusteed surplus of which $100,000,000 must be held jointly for the benefit of United States ceding insurers of any member of the group.
[(c)] (d) An insurance exchange created by the laws of a state, the insurance exchange shall have and maintain a trust fund in an amount of not less than [$50,000,000] $75,000,000 or have a surplus as to policyholders in an amount of not less than [$50,000,000.] $75,000,000. If an insurance exchange maintains money for the protection of all policyholders, each syndicate shall maintain minimum capital and surplus of not less than [$5,000,000] $15,000,000 and must qualify separately to be eligible for the acceptance of surplus lines risks pursuant to this chapter.
The Commissioner may require larger trust funds or surplus as to policyholders than those set forth in this section if, in his judgment, the volume of business being transacted or proposed to be transacted warrants larger amounts.
3. [No] An insurer is not eligible to write surplus lines of insurance unless it has established a reputation for financial integrity and satisfactory practices in underwriting and handling claims. In addition, a foreign insurer must be authorized in the state of its domicile to write the kinds of insurance which it intends to write in Nevada.
4. The Commissioner may from time to time compile or approve a list of all surplus lines insurers deemed by him to be eligible currently, and may mail a copy of the list to each broker at his office last of record with the Commissioner. To be placed on the list, a surplus lines insurer must file an application with the Commissioner. The application must be accompanied by a nonrefundable fee of $2,450. This subsection does not require the Commissioner to determine the actual financial condition or claims practices of any unauthorized insurer. The status of eligibility, if granted by the Commissioner, indicates only that the insurer appears to be sound financially and to have satisfactory claims practices, and that the Commissioner has no credible evidence to the contrary.
κ2003 Statutes of Nevada, Page 3301 (CHAPTER 495, AB 453)κ
Commissioner, indicates only that the insurer appears to be sound financially and to have satisfactory claims practices, and that the Commissioner has no credible evidence to the contrary. While any such list is in effect, the broker shall restrict to the insurers so listed all surplus lines business placed by him.
Sec. 38.3. NRS 685A.080 is hereby amended to read as follows:
685A.080 1. Upon placing a surplus lines coverage, the broker shall promptly issue and deliver to the insured evidence of the insurance consisting either of the policy as issued by the insurer, or, if such a policy is not then available, the surplus lines brokers certificate executed by the broker or a cover note . [endorsed by the broker.] Such a certificate or [endorsed] cover note must show the description and location of the subject of the insurance, coverage, conditions and term of the insurance, the premium and rate charged and taxes collected from the insured, and the name and address of the insured and insurer and must state that the broker has verified that the insurance described has been granted or issued. If the direct risk is assumed by more than one insurer, the certificate must state the name and address and proportion of the entire direct risk assumed by each such insurer.
2. A broker shall not issue any such certificate or any cover note, or purport to insure or represent that insurance will be or has been granted by any unauthorized insurer, unless he has prior written authority from the insurer for the insurance, or has received information from the insurer in the regular course of business that the insurance has been granted, or an insurance policy providing the insurance actually has been issued by the insurer and delivered to the insured.
3. If after the issuance and delivery of any such certificate there is any change as to the identity of the insurers, or the proportion of the direct risk assumed by an insurer as stated in the brokers original certificate, or in any other material respect as to the insurance evidenced by the certificate, the broker shall promptly issue and deliver to the insured a substitute certificate accurately showing the current status of the coverage and the insurers responsible thereunder.
4. If a policy issued by the insurer is not available upon placement of the insurance and the broker has issued and delivered his certificate as provided in this section, upon request therefor by the insured the broker shall as soon as reasonably possible procure from the insurer its policy evidencing the insurance and deliver the policy to the insured in replacement of the brokers certificate theretofore issued.
5. Any surplus lines broker who knowingly or negligently issues a false certificate of insurance or who fails promptly to notify the insured of any material change with respect to the insurance by delivery to the insured of a substitute certificate as provided in subsection 3 is subject to the penalty provided by NRS 679A.180 or to any greater applicable penalty otherwise provided by law.
Sec. 38.7. NRS 685A.090 is hereby amended to read as follows:
685A.090 [Every] Each insurance contract procured and delivered as a surplus lines coverage pursuant to this chapter must [be countersigned by the broker who procured it, and must] have conspicuously stamped upon it:
This insurance contract is issued pursuant to the Nevada insurance laws by an insurer neither licensed by nor under the supervision of the Division of Insurance of the Department of Business and Industry of the State of Nevada.
κ2003 Statutes of Nevada, Page 3302 (CHAPTER 495, AB 453)κ
the State of Nevada. If the insurer is found insolvent, a claim under this contract is not covered by the Nevada Insurance Guaranty Association Act.
Sec. 39. NRS 685A.120 is hereby amended to read as follows:
685A.120 1. No person [in this state] may act as, hold himself out as [,] or be a surplus lines broker with respect to subjects of insurance resident, located or to be performed in this state or elsewhere unless he is licensed as such by the Commissioner pursuant to this chapter.
2. Any person who has been licensed by this state as a [broker] producer of insurance for general lines for at least 6 months, or has been licensed in another state as a surplus lines broker [for at least 1 year] and continues to be licensed in that state, and who is deemed by the Commissioner to be competent and trustworthy with respect to the handling of surplus lines may be licensed as a surplus lines broker upon:
(a) Application for a license and payment of the applicable fee for a license and a fee of $15 for deposit in the Insurance Recovery Account created by NRS 679B.305;
(b) Submitting the statement required pursuant to NRS 685A.127; and
(c) Passing any examination prescribed by the Commissioner on the subject of surplus lines.
3. An application for a license must be submitted to the Commissioner on a form designated and furnished by him. The application must include the social security number of the applicant.
4. A license issued pursuant to this chapter continues in force for 3 years unless it is suspended, revoked or otherwise terminated. The license may be renewed upon submission of the statement required pursuant to NRS 685A.127 and payment of the applicable fee for renewal and a fee of $15 for deposit in the Insurance Recovery Account created by NRS 679B.305 to the Commissioner on or before the last day of the month in which the license is renewable.
5. A license which is not renewed expires at midnight on the last day specified for its renewal. The Commissioner may accept a request for renewal received by him within 30 days after the expiration of the license if the request is accompanied by [the] :
(a) The statement required pursuant to NRS 685A.127 [, a] ;
(b) The applicable fee for renewal [of 150] ;
(c) A penalty in an amount that is equal to 50 percent of the applicable fee [otherwise required and a] for renewal; and
(d) A fee of $15 for deposit in the Insurance Recovery Account created by NRS 679B.305.
Sec. 39.5. NRS 685A.180 is hereby amended to read as follows:
685A.180 1. On or before March 1 of each year each broker shall pay to the Commissioner a tax on surplus lines coverages written by him in unauthorized insurers during the preceding calendar year at the same rate of tax as imposed by law on the premiums of similar coverages written by authorized insurers. If a broker has paid any taxes pursuant to NRS 685A.175, he shall deduct the total paid from the tax due and pay the remainder, if any.
2. For the purposes of this section, the premium on surplus lines coverages includes:
κ2003 Statutes of Nevada, Page 3303 (CHAPTER 495, AB 453)κ
(a) The gross amount charged by the insurer for the insurance, less any return premium;
(b) Any fee allowed by NRS 685A.155;
(c) Any policy fee;
(d) Any membership fee; [and]
(e) Any inspection fee; and
(f) Any other fees or assessments charged by the insurer as consideration for the insurance.
Premium does not include any additional amount charged for state or federal tax, or for filing affidavits or reports of coverage . [, inspection fee or the communication expenses of the broker.]
3. If a contract for surplus lines insurance covers risks or exposures only partially in this state, the tax so payable must be computed on that portion of the premium properly allocable to the risks or exposures located in this state. The Commissioner may adopt regulations which establish standards for allocating premiums for risks located in this state in the same manner as premiums are allocated pursuant to NRS 680B.030.
4. The Commissioner shall promptly deposit all taxes collected by him pursuant to this section with the State Treasurer, to the credit of the State General Fund.
5. A broker who receives a credit for tax paid shall refund to each insured the amount of the credit attributable to the insured when the insurer pays a return premium or within 30 days, whichever is earlier.
Sec. 40. NRS 685B.080 is hereby amended to read as follows:
685B.080 1. Any unauthorized insurer who transacts any unauthorized act of an insurance business as set forth in the Unauthorized Insurers Act may be fined not more than $10,000 for each act or violation.
2. In addition to any other penalties provided in this Code:
(a) Any producer of insurance or surplus lines broker licensed in this state who in this state knowingly represents or aids an unauthorized insurer in violation of the Unauthorized Insurers Act is guilty of a category C felony and shall be punished as provided in NRS 193.130.
(b) Any person other than a producer of insurance or surplus lines broker licensed in this state who in this state represents or aids an unauthorized insurer in violation of the Unauthorized Insurers Act is guilty of a category C felony and shall be punished as provided in NRS 193.130.
(c) Any person who commits a second or subsequent violation of this section is guilty of a category B felony and shall be punished by imprisonment in the state prison for a minimum term of not less than 1 year and a maximum term of not more than 20 years.
3. In addition to the penalties provided in subsection 2, such a violator is liable, personally, jointly and severally with any other person liable therefor, for the payment of premium taxes at the same rate of tax as imposed by law on the premiums of similar coverages written by authorized insurers.
Sec. 41. Chapter 686B of NRS is hereby amended by adding thereto the provisions set forth as sections 42 to 46, inclusive, of this act.
Sec. 42. As used in sections 42 to 46, inclusive, of this act, unless the context otherwise requires, insured has the meaning ascribed to it in NRS 686B.260.
κ2003 Statutes of Nevada, Page 3304 (CHAPTER 495, AB 453)κ
Sec. 43. The provisions of NRS 81.130 and 81.510 do not apply to the conversion of an essential insurance association to a domestic mutual insurer or a domestic reciprocal insurer as provided in sections 42 to 46, inclusive, of this act.
Sec. 44. 1. An essential insurance association shall, if requested to do so by the Commissioner, file a notice of intent to qualify as a domestic mutual insurer or a domestic reciprocal insurer. In the absence of a request by the Commissioner, an essential insurance association may file such a notice at such time as the association determines appropriate.
2. The notice must be filed with the Commissioner at least 4 months before the date the association is to become a domestic mutual insurer or a domestic reciprocal insurer and must include:
(a) An application prepared pursuant to chapter 680A of NRS for a certificate of authority to transact business in Nevada as a domestic mutual insurer or a domestic reciprocal insurer;
(b) A valuation of the policyholders surplus according to both market and amortized value based on the associations annual financial statement for the previous year; and
(c) A provision for the return of any unused portion of the insureds capital stabilization charges.
Sec. 45. 1. At the time the association files a notice of intent to qualify as a domestic mutual insurer or domestic reciprocal insurer, it must give a notice of intent to all participating insurers and all insureds on a form approved by the Commissioner.
2. Any participating insurer or insured may, within 30 days after the date of the notice, apply to the Division for a hearing concerning the associations ability to qualify as a domestic mutual insurer or domestic reciprocal insurer.
3. An association must comply with the provisions of:
(a) Chapter 692B of NRS, as applicable to mutual insurers, to qualify as a domestic mutual insurer; or
(b) Chapter 694B of NRS, as applicable to reciprocal insurers, to qualify as a domestic reciprocal insurer.
Sec. 46. Upon determining that an association has complied with sections 42 to 46, inclusive, of this act and all other requirements applicable to domestic mutual insurers, if the association is qualifying as a domestic mutual insurer, or to domestic reciprocal insurers, if the association is qualifying as a domestic reciprocal insurer, the Commissioner may issue to the association a certificate of authority to transact business as a domestic mutual insurer or a domestic reciprocal insurer.
Sec. 47. NRS 686B.030 is hereby amended to read as follows:
686B.030 1. Except as otherwise provided in subsection 2, NRS 686B.010 to 686B.1799, inclusive, apply to all kinds and lines of direct insurance written on risks or operations in this state by any insurer authorized to do business in this state, except:
(a) Ocean marine insurance;
(b) Contracts issued by fraternal benefit societies;
(c) Life insurance and credit life insurance;
(d) Variable and fixed annuities;
(e) Group and blanket health insurance and credit health insurance;
(f) Property insurance for business and commercial risks; [and]
κ2003 Statutes of Nevada, Page 3305 (CHAPTER 495, AB 453)κ
(g) Casualty insurance for business and commercial risks other than insurance covering the liability of a practitioner licensed pursuant to chapters 630 to 640, inclusive, of NRS [.] ; and
(h) Surety insurance.
2. The exclusions set forth in paragraphs (f) and (g) of subsection 1 extend only to issues related to the determination or approval of premium rates.
Sec. 48. NRS 686B.1781 is hereby amended to read as follows:
686B.1781 [NRS 686B.1751 to 686B.1799, inclusive, do not prohibit or regulate the payment of dividends, savings, unearned premiums deposits or an equivalent abatement of premiums allowed or returned by insurers to their policyholders, members or subscribers.]
1. An insurer shall not unfairly discriminate among its policyholders in paying a dividend [.] , savings, unearned premium deposits or an equivalent abatement of premiums allowed or returned by an insurer for a policy of industrial insurance.
2. A plan for the payment of dividends [is not a rating system or plan.] for industrial insurance must be filed before there is a dividend payment. The plan shall be deemed approved unless the Commissioner disapproves the plan within 30 days after it is filed and received by the Commissioner. An insurer shall not condition the payment of [such] a dividend upon the renewal of a policy or contract by the policyholder, member or subscriber.
3. An insurer paying savings, unearned premium deposits or an equivalent abatement for premiums allowed or returned for a policy of industrial insurance must receive prior approval.
Sec. 49. NRS 686B.230 is hereby amended to read as follows:
686B.230 1. The Nevada Essential Insurance Association has, for purposes of this section and to the extent approved by the Commissioner, the general powers and authority granted under the laws of this state to carriers licensed to transact the kinds of insurance defined in NRS 681A.020 to 681A.080, inclusive.
2. The Association may take any necessary action to make available necessary insurance, including , but not limited to , the following:
(a) Assess participating insurers amounts necessary to pay the obligations of the Association, administration expenses, the cost of examinations conducted pursuant to NRS 687A.110 and other expenses authorized by this chapter. The assessment of each member insurer for the kind or kinds of insurance designated in the plan [shall] must be in the proportion that the net direct written premiums of the member insurer for the preceding calendar year bear to the net direct written premiums of all member insurers for the preceding calendar year. A member insurer may not be assessed in any year an amount greater than 5 percent of his net direct written premiums for the preceding calendar year. Each member insurer [shall] must be allowed a premium tax credit at the rate of 20 percent per year for 5 successive years [following termination of the Association.] beginning on the first day of the calendar year after the calendar year in which the insurer pays the assessment pursuant to this subsection.
(b) Enter into such contracts as are necessary or proper to carry out the provisions and purposes of this section.
(c) Sue or be sued, including taking any legal action necessary to recover any assessments for, on behalf of or against participating carriers.
κ2003 Statutes of Nevada, Page 3306 (CHAPTER 495, AB 453)κ
(d) Investigate claims brought against the fund and adjust, compromise, settle and pay covered claims to the extent of the associations obligation and deny all other claims. Process claims through its employees or through one or more member insurers or other persons designated as servicing facilities. Designation of a service facility is subject to the approval of the Commissioner , but such a designation may be declined by a member insurer.
(e) Classify risks as may be applicable and equitable.
(f) Establish appropriate rates, rate classifications and rating adjustments and file [such] those rates with the Commissioner in accordance with this chapter.
(g) Administer any type of reinsurance program for or on behalf of the Association or any participating carriers.
(h) Pool risks among participating carriers.
(i) Issue and market, through agents, policies of insurance providing the coverage required by this section in its own name or on behalf of participating carriers.
(j) Administer separate pools, separate accounts or other plans as may be deemed appropriate for separate carriers or groups of carriers.
(k) Invest, reinvest and administer all funds and moneys held by the Association.
(l) Borrow funds needed by the Association to [effect] carry out the purposes of this section.
(m) Develop, effectuate and promulgate any loss-prevention programs aimed at the best interests of the Association and the insuring public.
(n) Operate and administer any combination of plans, pools, reinsurance arrangements or other mechanisms as deemed appropriate to best accomplish the fair and equitable operation of the Association for the purposes of making available essential insurance coverage.
3. In providing for the recoupment of a deficit of the Association, an option [shall] must be offered to an insured each policy year to pay a capital stabilization charge which [shall] must not exceed 100 percent of the premium charged to the insured in that year. The Board of Directors shall determine the amount of the charge from appropriate factors of loss experience and risk associated with the Association and the insured. An insured who pays the stabilization charge [shall] must not be required to pay any assessment to recoup a deficit of the Association incurred in any policy year for which the charge is paid. The Associations plan of operation [shall] must provide for the return to the insured of so much of his payment as remains after all actual or potential liabilities under the policy have been discharged.
Sec. 50. NRS 686B.240 is hereby amended to read as follows:
686B.240 The Commissioner and the Nevada Essential Insurance Association may:
1. Give consideration to the need for adequate and readily accessible coverage, to alternative methods of improving the market affected, to the preferences of the insurers and agents, to the inherent limitations of the insurance mechanism, to the need for reasonable underwriting standards and to the requirement of reasonable loss-prevention measures.
2. Establish procedures that will create minimum interference with the voluntary market.
3. Spread the burden imposed by the facility equitably and efficiently.
κ2003 Statutes of Nevada, Page 3307 (CHAPTER 495, AB 453)κ
4. Establish procedures for applicants and participants to have grievances reviewed.
5. Take all reasonable and necessary steps to dissolve the Association at the earliest date when essential insurance becomes readily available in the private market. The dissolution of the Association, including its assets and liabilities, [shall] must be accomplished under the supervision of the Commissioner in an equitable and reasonable manner. The dissolution must, if determined to be appropriate by the Commissioner, provide for the repayment of any loans or other money provided or contributed by the State of Nevada for the formation or continuance of the Association.
Sec. 51. NRS 686B.290 is hereby amended to read as follows:
686B.290 1. At the time the Association files a notice of intent to qualify as a domestic stock insurer, it must give notice of its intent to all participating insurers and all insureds [in] on a form approved by the Commissioner. The notice to each insured must state the total amount of stock to be issued and the amount of shares to which he is entitled.
2. Any participating insurer or insured may, within 30 days after the date of the notice, apply to the Division for a hearing concerning the Associations ability to qualify as a domestic insurer, the valuation of capital and surplus , or the proposed number and distribution of shares of stock.
Sec. 52. NRS 686B.320 is hereby amended to read as follows:
686B.320 Upon determining that [an] the Association has complied with NRS 686B.280 to 686B.310, inclusive, and all other requirements applicable to domestic stock insurers, the Commissioner may issue to the Association a certificate of authority to transact business as a domestic stock insurer . [to become effective the next following January 1.]
Sec. 53. NRS 687A.033 is hereby amended to read as follows:
687A.033 1. Covered claim means an unpaid claim or judgment, including a claim for unearned premiums, which arises out of and is within the coverage of an insurance policy to which this chapter applies issued by an insurer which becomes an insolvent insurer, if one of the following conditions exists:
(a) The claimant or insured, if a natural person, is a resident of this state at the time of the insured event.
(b) The claimant or insured, if other than a natural person, maintains its principal place of business in this state at the time of the insured event.
(c) The property from which the first party property damage claim arises is permanently located in this state.
(d) The claim is not a covered claim pursuant to the laws of any other state and the premium tax imposed on the insurance policy is payable in this state pursuant to NRS 680B.027.
2. The term does not include:
(a) An amount that is directly or indirectly due a reinsurer, insurer, insurance pool or underwriting association, as recovered by subrogation, indemnity or contribution, or otherwise.
(b) That part of a loss which would not be payable because of a provision for a deductible or a self-insured retention specified in the policy.
(c) Except as otherwise provided in this paragraph, any claim filed with the Association [after:
(1) Eighteen] :
(1) More than 18 months after the date of the order of liquidation; or
κ2003 Statutes of Nevada, Page 3308 (CHAPTER 495, AB 453)κ
(2) [The] After the final date set by the court for the filing of claims against the liquidator or receiver of the insolvent insurer,
whichever is earlier. The provisions of this paragraph do not apply to a claim for workers compensation that is reopened pursuant to the provisions of NRS 616C.390.
(d) A claim filed with the Association for a loss that is incurred but is not reported to the Association before the expiration of the period specified in subparagraph (1) or (2) of paragraph (c).
(e) An obligation to make a supplementary payment for adjustment or attorneys fees and expenses, court costs or interest and bond premiums incurred by the insolvent insurer before the appointment of a liquidator, unless the expenses would also be a valid claim against the insured.
(f) A first party or third party claim brought by or against an insured, if the aggregate net worth of the insured and any affiliate of the insured, as determined on a consolidated basis, is more than $25,000,000 on December 31 of the year immediately preceding the date the insurer becomes an insolvent insurer. The provisions of this paragraph do not apply to a claim for workers compensation. As used in this paragraph, affiliate means a person who directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or control with, another person. For the purpose of this definition, the terms owns, is owned and ownership mean ownership of an equity interest, or the equivalent thereof, of 10 percent or more.
Sec. 54. NRS 687A.060 is hereby amended to read as follows:
687A.060 1. The Association:
(a) Is obligated to the extent of the covered claims existing before the determination of insolvency and arising within 30 days after the determination of insolvency, or before the expiration date of the policy if that date is less than 30 days after the determination, or before the insured replaces the policy or on request cancels the policy if he does so within 30 days after the determination. The obligation of the Association to pay a covered claim is limited to the payment of:
(1) The entire amount of the claim, if the claim is for workers compensation pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS;
(2) [More than $100 but not] Not more than $300,000 for each policy [,] if the claim is for the return of unearned premiums; or
(3) The limit specified in a policy or $300,000, whichever is less, for each occurrence for any covered claim other than a covered claim specified in subparagraph (1) or (2).
(b) Shall be deemed the insurer to the extent of its obligations on the covered claims and to that extent has any rights, duties and obligations of the insolvent insurer as if the insurer had not become insolvent. The rights include, without limitation, the right to seek and obtain any recoverable salvage and to subrogate a covered claim, to the extent that the Association has paid its obligation under the claim.
(c) Shall assess member insurers amounts necessary to pay the obligations of the Association pursuant to paragraph (a) after an insolvency, the expenses of handling covered claims subsequent to an insolvency, the cost of examinations pursuant to NRS 687A.110 [,] and other expenses authorized by this chapter. The assessment of each member insurer must be in the proportion that the net direct written premiums of the member insurer for the calendar year preceding the assessment bear to the net direct written premiums of all member insurers for the same calendar year.
κ2003 Statutes of Nevada, Page 3309 (CHAPTER 495, AB 453)κ
for the calendar year preceding the assessment bear to the net direct written premiums of all member insurers for the same calendar year. Each member insurer must be notified of the assessment not later than 30 days before it is due. No member insurer may be assessed in any year an amount greater than 2 percent of the net direct written premiums of that member insurer for the calendar year preceding the assessment. If the maximum assessment, together with the other assets of the Association, does not provide in any 1 year an amount sufficient to make all necessary payments, the money available may be prorated and the unpaid portion must be paid as soon as money becomes available. The Association may pay claims in any order, including the order in which the claims are received or in groups or categories. The Association may exempt or defer, in whole or in part, the assessment of any member insurer if the assessment would cause the financial statement of the member insurer to reflect amounts of capital or surplus less than the minimum amounts required for a certificate of authority by any jurisdiction in which the member insurer is authorized to transact insurance. During the period of deferment, no dividends may be paid to shareholders or policyholders. Deferred assessments must be paid when payment will not reduce capital or surplus below required minimums. Payments must be refunded to those companies receiving larger assessments because of deferment, or, in the discretion of the company, credited against future assessments. Each member insurer must be allowed a premium tax credit for any amounts paid pursuant to the provisions of this chapter:
(1) For assessments made before January 1, 1993, at the rate of 10 percent per year for 10 successive years beginning March 1, 1996; or
(2) For assessments made on or after January 1, 1993, at the rate of 20 percent per year for 5 successive years beginning with the calendar year following the calendar year in which the assessments are paid.
(d) Shall investigate claims brought against the fund and adjust, compromise, settle and pay covered claims to the extent of the obligation of the Association and deny any other claims.
(e) Shall notify such persons as the Commissioner directs pursuant to paragraph (a) of subsection 2 of NRS 687A.080.
(f) Shall act on claims through its employees or through one or more member insurers or other persons designated as servicing facilities. Designation of a servicing facility is subject to the approval of the Commissioner, but the designation may be declined by a member insurer.
(g) Shall reimburse each servicing facility for obligations of the Association paid by the facility and for expenses incurred by the facility while handling claims on behalf of the Association [,] and pay the other expenses of the Association authorized by this chapter.
2. The Association may:
(a) Appear in, defend and appeal any action on a claim brought against the Association.
(b) Employ or retain persons necessary to handle claims and perform other duties of the Association.
(c) Borrow money necessary to carry out the purposes of this chapter in accordance with the plan of operation.
(d) Sue or be sued.
(e) Negotiate and become a party to contracts necessary to carry out the purposes of this chapter.
κ2003 Statutes of Nevada, Page 3310 (CHAPTER 495, AB 453)κ
(f) Perform other acts necessary or proper to effectuate the purposes of this chapter.
(g) If, at the end of any calendar year, the Board of Directors finds that the assets of the Association exceed its liabilities as estimated by the Board of Directors for the coming year, refund to the member insurers in proportion to the contribution of each that amount by which the assets of the Association exceed the liabilities.
(h) Assess each member insurer equally not more than $100 per year for administrative expenses not related to the insolvency of any insurer.
Sec. 55. NRS 687A.090 is hereby amended to read as follows:
687A.090 1. Any person recovering under this chapter shall be deemed to have assigned his rights under the policy to the Association to the extent of his recovery from the Association. Every insured or claimant seeking the protection of this chapter shall cooperate with the Association to the same extent as [such] the person would have been required to cooperate with the insolvent insurer. [The Association shall have no] Except as otherwise provided in subsection 2, the Association does not have a cause of action against the insured of the insolvent insurer for any sums it has paid out.
2. The Association may recover the amount of money paid to or on behalf of an insured of an insolvent insurer:
(a) If the aggregate net worth of the insured and any affiliate of the insured, as determined on a consolidated basis, is more than $25,000,000 on December 31 of the year immediately preceding the date the insurer becomes an insolvent insurer; or
(b) If the Association paid the money in error.
3. The receiver, liquidator or statutory successor of an insolvent insurer [shall be] is bound by any settlements of covered claims by the Association or a similar organization in another state. The court having jurisdiction shall grant [such] those claims priority equal to that to which the claimant would have been entitled in the absence of this chapter against the assets of the insolvent insurer. The expenses of the Association or similar organization in handling claims [shall] must be accorded the same priority as the liquidators expenses.
[3.] 4. The Association shall periodically file with the receiver or liquidator of the insolvent insurer statements of the covered claims paid by the Association and estimates of anticipated claims on the Association, which statements shall preserve the rights of the Association against the assets of the insolvent insurer.
5. As used in this section, affiliate means a person who directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or control with, another person. For the purpose of this definition, the terms owns, is owned and ownership mean ownership of an equity interest, or the equivalent thereof, of 10 percent or more.
Sec. 55.2. Chapter 687B of NRS is hereby amended by adding thereto a new section to read as follows:
1. No policy of industrial insurance that has been in effect for at least 70 days or that has been renewed may be cancelled by the insurer before the expiration of the agreed term or 1 year from the effective date of the policy or renewal, whichever occurs first, except on any one of the following grounds:
κ2003 Statutes of Nevada, Page 3311 (CHAPTER 495, AB 453)κ
(a) A failure by the policyholder to pay a premium for the policy of industrial insurance when due;
(b) A failure by the policyholder to:
(1) Report any payroll;
(2) Allow the insurer to audit any payroll in accordance with the terms of the policy or any previous policy issued by the insurer; or
(3) Pay any additional premium charged because of an audit of any payroll as required by the terms of the policy or any previous policy issued by the insurer;
(c) A material failure by the policyholder to comply with any federal or state order concerning safety or any written recommendation of the insurers designated representative for loss control;
(d) A material change in ownership of the policyholder or any change in the policyholders business or operations that:
(1) Materially increases the hazard for frequency or severity of loss;
(2) Requires additional or different classifications for the calculation of premiums; or
(3) Contemplates an activity that is excluded by any reinsurance treaty of the insurer;
(e) A material misrepresentation made by the policyholder; or
(f) A failure by the policyholder to cooperate with the insurer in conducting an investigation of a claim.
2. An insurer shall not cancel a policy of industrial insurance pursuant to paragraph (a), (b), (e) or (f) of subsection 1 except upon 10 days written notice submitted by the insurer to the policyholder.
3. Except as otherwise provided in this subsection, an insurer shall not cancel a policy of industrial insurance pursuant to paragraph (c) or (d) of subsection 1 except upon 30 days written notice by the insurer to the policyholder. An insurer is not required to provide a written notice to a policyholder pursuant to this subsection if the policyholder and the insurer consent to the cancellation of the policy of industrial insurance and to the reissuance of another policy of industrial insurance effective upon a material change in the ownership or operations of the insured. If the policyholder corrects the condition to the satisfaction of the insurer within the period specified in the policy of insurance, the insurer shall not cancel the policy.
4. Any written notice submitted to a policyholder pursuant to this section must be given by first class mail addressed to the policyholder at the address of the policyholder set forth in the policy of industrial insurance. Evidence indicating that a written notice specified in this section has been mailed is sufficient proof of notice.
5. The provisions of this section do not prohibit, during any period in which a policy of industrial insurance is in force, any change in the premium rate required or authorized by any law, regulation or order of the Commissioner, or otherwise agreed upon by the policyholder and the insurer.
6. For the purposes of this section, any policy of industrial insurance that is written for a term of more than 1 year, or any policy of industrial insurance with no fixed date of expiration, shall be deemed to be written for successive periods of 1 year.
κ2003 Statutes of Nevada, Page 3312 (CHAPTER 495, AB 453)κ
Sec. 55.4. NRS 687B.145 is hereby amended to read as follows:
687B.145 1. Any policy of insurance or endorsement providing coverage under the provisions of NRS 690B.020 or other policy of casualty insurance may provide that if the insured has coverage available to him under more than one policy or provision of coverage, any recovery or benefits may equal but not exceed the higher of the applicable limits of the respective coverages, and the recovery or benefits must be prorated between the applicable coverages in the proportion that their respective limits bear to the aggregate of their limits. Any provision which limits benefits pursuant to this section must be in clear language and be prominently displayed in the policy, binder or endorsement. Any limiting provision is void if the named insured has purchased separate coverage on the same risk and has paid a premium calculated for full reimbursement under that coverage.
2. Except as otherwise provided in subsection 5, insurance companies transacting motor vehicle insurance in this state must offer, on a form approved by the Commissioner, uninsured and underinsured vehicle coverage in an amount equal to the limits of coverage for bodily injury sold to an insured under a policy of insurance covering the use of a passenger car. The insurer is not required to reoffer the coverage to the insured in any replacement, reinstatement, substitute or amended policy, but the insured may purchase the coverage by requesting it in writing from the insurer. Each renewal must include a copy of the form offering such coverage. Uninsured and underinsured vehicle coverage must include a provision which enables the insured to recover up to the limits of his own coverage any amount of damages for bodily injury from his insurer which he is legally entitled to recover from the owner or operator of the other vehicle to the extent that those damages exceed the limits of the coverage for bodily injury carried by that owner or operator. If an insured suffers actual damages subject to the limitation of liability provided pursuant to NRS 41.035, underinsured vehicle coverage must include a provision which enables the insured to recover up to the limits of his own coverage any amount of damages for bodily injury from his insurer for the actual damages suffered by the insured that exceed that limitation of liability.
3. An insurance company transacting motor vehicle insurance in this state must offer an insured under a policy covering the use of a passenger car, the option of purchasing coverage in an amount of at least $1,000 for the payment of reasonable and necessary medical expenses resulting from an accident. The offer must be made on a form approved by the Commissioner. The insurer is not required to reoffer the coverage to the insured in any replacement, reinstatement, substitute or amended policy, but the insured may purchase the coverage by requesting it in writing from the insurer. Each renewal must include a copy of the form offering such coverage.
4. An insurer who makes a payment to an injured person on account of underinsured vehicle coverage as described in subsection 2 is not entitled to subrogation against the underinsured motorist who is liable for damages to the injured payee. This subsection does not affect the right or remedy of an insurer under subsection 5 of NRS 690B.020 with respect to uninsured vehicle coverage. As used in this subsection, damages means the amount for which the underinsured motorist is alleged to be liable to the claimant in excess of the limits of bodily injury coverage set by the underinsured motorists policy of casualty insurance.
κ2003 Statutes of Nevada, Page 3313 (CHAPTER 495, AB 453)κ
5. An insurer need not offer, provide or make available uninsured or underinsured vehicle coverage in connection with a general commercial liability policy, an excess policy, an umbrella policy or other policy that does not provide primary motor vehicle insurance for liabilities arising out of the ownership, maintenance, operation or use of a specifically insured motor vehicle.
6. As used in this section:
(a) Excess policy means a policy that protects a person against loss in excess of a stated amount or in excess of coverage provided pursuant to another insurance contract.
(b) Passenger car has the meaning ascribed to it in NRS 482.087.
(c) Umbrella policy means a policy that protects a person against losses in excess of the underlying amount required to be covered by other policies.
Sec. 55.6. NRS 687B.310 is hereby amended to read as follows:
687B.310 1. NRS 687B.310 to 687B.420, inclusive, and section 55.2 of this act apply to all binders and all contracts of insurance the general terms of which are required to be approved or are subject to disapproval by the Commissioner, except as otherwise provided by statute or by rule pursuant to subsection 3.
2. The contract may provide terms more favorable to policyholders than are required by NRS 687B.310 to 687B.420, inclusive [.] , and section 55.2 of this act.
3. The Commissioner may by rule exempt from NRS 687B.310 to 687B.420, inclusive, and section 55.2 of this act classes of insurance contracts where the policyholders do not need protection against arbitrary termination.
4. The rights provided by NRS 687B.310 to 687B.420, inclusive, and section 55.2 of this act are in addition to and do not prejudice any other rights the policyholder may have at common law or under other statutes.
5. NRS 687B.310 to 687B.420, inclusive, and section 55.2 of this act do not prevent the rescission or reformation of any life or health insurance contract not otherwise denied by the terms of the contract or by any other statute.
6. Any notice to an insured required pursuant to NRS 687B.320 to 687B.350, inclusive, and section 55.2 of this act must be personally delivered to the insured or mailed first class or certified to the insured at his address last known by the insurer. The notice must state the effective date of the cancellation or nonrenewal and be accompanied by a written explanation of the specific reasons for the cancellation or nonrenewal.
Sec. 55.8. NRS 687B.320 is hereby amended to read as follows:
687B.320 1. [No] Except as otherwise provided in subsection 3, no insurance policy that has been in effect for at least 70 days or that has been renewed may be cancelled by the insurer [prior to] before the expiration of the agreed term or 1 year from the effective date of the policy or renewal, whichever [is less,] occurs first, except on any one of the following grounds:
(a) Failure to pay a premium when due;
(b) Conviction of the insured of a crime arising out of acts increasing the hazard insured against;
(c) Discovery of fraud or material misrepresentation in the obtaining of the policy or in the presentation of a claim thereunder;
(d) Discovery of:
κ2003 Statutes of Nevada, Page 3314 (CHAPTER 495, AB 453)κ
(1) An act or omission; or
(2) A violation of any condition of the policy,
which occurred after the first effective date of the current policy and substantially and materially increases the hazard insured against;
(e) A material change in the nature or extent of the risk, occurring after the first effective date of the current policy, which causes the risk of loss to be substantially and materially increased beyond that contemplated at the time the policy was issued or last renewed;
(f) A determination by the Commissioner that continuation of the insurers present volume of premiums would jeopardize the insurers solvency or be hazardous to the interests of policyholders of the insurer, its creditors or the public; or
(g) A determination by the Commissioner that the continuation of the policy would violate, or place the insurer in violation of, any provision of the Code.
2. No cancellation under subsection 1 is effective until in the case of paragraph (a) of subsection 1 at least 10 days and in the case of any other paragraph of subsection 1 at least 30 days after the notice is delivered or mailed to the policyholder.
3. The provisions of this section do not apply to a policy of industrial insurance.
Sec. 56. NRS 687B.350 is hereby amended to read as follows:
687B.350 1. [An] Except as otherwise provided in subsection 2, an insurer shall not renew a policy on different terms, including different rates, unless the insurer notifies the insured in writing of the different terms or rates at least 30 days before [those terms or rates become effective.] the expiration of the policy. If the insurer [offers or purports to] fails to provide adequate and timely notice, the insurer shall renew the policy [but on different terms, including different rates, the policyholder may, for 30 days after he receives notice of the changes in the policy, cancel the policy. If he elects to cancel, the insurer shall refund to him the excess of the premium paid by him above the pro rata premium for the expired portion of the new term.] at the expiring terms and rates:
(a) For a period that is equal to the expiring term if the agreed term is 1 year or less; or
(b) For 1 year if the agreed term is more than 1 year.
2. The provisions of this section do not apply to a policy of industrial insurance.
Sec. 56.1. NRS 687B.360 is hereby amended to read as follows:
687B.360 If a notice of cancellation or nonrenewal under NRS 687B.310 to 687B.420, inclusive, and section 55.2 of this act does not state with reasonable precision the facts on which the insurers decision is based, the insurer shall supply that information within 6 days after receipt of a written request by the policyholder. No notice is effective unless it contains adequate information about the policyholders right to make such a request.
Sec. 56.3. NRS 687B.370 is hereby amended to read as follows:
687B.370 Except for a notice of cancellation for the failure to pay a premium when due, no notice required pursuant to NRS 687B.310 to 687B.420, inclusive, and section 55.2 of this act is effective unless it contains adequate instructions enabling the policyholder to apply for insurance through any voluntary or mandatory risk-sharing plan established pursuant to NRS 686B.180 and 686B.200 existing at the time of the notice, for which the policyholder may be eligible.
κ2003 Statutes of Nevada, Page 3315 (CHAPTER 495, AB 453)κ
pursuant to NRS 686B.180 and 686B.200 existing at the time of the notice, for which the policyholder may be eligible.
Sec. 56.5. NRS 687B.380 is hereby amended to read as follows:
687B.380 There is no liability on the part of and no cause of action of any nature may arise against any insurer, its authorized representative, its agents, its employees, or any person furnishing to the insurer information as to reasons for cancellation or nonrenewal, for any statement made by them in complying with NRS 687B.310 to 687B.420, inclusive, and section 55.2 of this act or for the providing of information pertaining thereto.
Sec. 56.7. NRS 688A.361 is hereby amended to read as follows:
688A.361 No contract of annuity may be delivered or issued for delivery in this state unless it contains in substance the following provisions, or corresponding provisions which in the opinion of the Commissioner are at least as favorable to the contract holder:
1. A statement that upon cessation of payment of considerations under a contract, or upon receipt of a written request submitted by an owner of a contract, the company will grant a paid-up annuity benefit on a plan stipulated in the contract of such value as is specified in NRS 688A.3631 to 688A.3637, inclusive, and 688A.366;
2. If a contract provides for a lump-sum settlement at maturity or any other time, a statement that upon surrender of the contract at or before the commencement of any annuity payments, the company will pay in lieu of any paid-up annuity benefit a cash surrender benefit of an amount specified in NRS 688A.3631, 688A.3633, 688A.3637 and 688A.366, and that the company [reserves] may reserve the right to defer the payment of such cash surrender benefit for a period of not more than 6 months after demand therefor with surrender of the contract [;] if the company submits a written request to and receives written approval for the deferral from the Commissioner. The request must address the necessity and equitability to all policyholders of the deferral;
3. A statement of the mortality table, if any, and interest rates used in calculating any minimum paid-up annuity, cash surrender or death benefits which are guaranteed under the contract, together with sufficient information to determine the amounts of those benefits; and
4. A statement that any paid-up annuity, cash surrender or death benefits which may be available under the contract are not less than the minimum benefits required by any statute of the state in which the contract is delivered and an explanation of the manner in which such benefits are altered by the existence of any additional amounts credited by the company to the contract, any indebtedness to the company on the contract or any prior withdrawals from or partial surrenders of the contract,
except that any deferred annuity contract may provide that if no considerations have been received under a contract for a period of 2 full years, and the portion of the paid-up annuity benefit at maturity on the plan stipulated in the contract arising from considerations paid before that period would be less than $20 monthly, the company may terminate the contract by payment in cash of the then present value of such portion of the paid-up annuity benefit, calculated on the basis of the mortality table, if any, and interest rate specified in the contract for determining the paid-up annuity benefit, and by such payment shall be relieved of any further obligation under the contract.
κ2003 Statutes of Nevada, Page 3316 (CHAPTER 495, AB 453)κ
Sec. 56.9. NRS 688A.363 is hereby amended to read as follows:
688A.363 1. The minimum values, specified in NRS 688A.3631 to 688A.3637, inclusive, and 688A.366, of any paid-up annuity, cash surrender or death benefits available under an annuity contract [shall] must be based upon minimum nonforfeiture amounts as defined in this section.
[1.] 2. With respect to contracts providing for flexible considerations, the minimum nonforfeiture amount for any time at or before the commencement of any annuity payments is equal to an accumulation up to such time at a rate of interest [of 3 percent per annum of percentages of the net considerations paid before such time,] calculated pursuant to subsection 3, which must be decreased by the sum of:
(a) Any prior withdrawals from or partial surrenders of the contract, accumulated at a rate of interest [of 3 percent per annum; and] calculated pursuant to subsection 3;
(b) An annual charge in the amount of $50, accumulated at rates of interest calculated pursuant to subsection 3;
(c) Any premium tax paid by the company for the contract, accumulated at rates of interest calculated pursuant to subsection 3; and
(d) The amount of any indebtedness to the company on the contract, including interest due and accrued . [, and increased by any existing additional amounts credited by the company to the contract.]
The net considerations for a given contract year used to define the minimum nonforfeiture amount [shall] must be an amount [not less than zero and shall be] that is equal to 87.5 percent of the [corresponding] gross considerations credited to the contract during that contract year . [less an annual contract charge of $30 and a collection charge of $1.25 per consideration credited to the contract during that contract year. The percentages of net considerations shall be 65 percent of the net consideration for the first contract year and 87.5 percent of the net considerations for the second and later contract years, except that the percentage shall be 65 percent of the portion of the total net consideration for any renewal contract year which exceeds by not more than 2 times the sum of those portions of the net considerations in all prior contract years for which the percentage was 65 percent.
2. With respect to contracts providing for fixed scheduled considerations, minimum nonforfeiture amounts shall be calculated on the assumption that considerations are paid annually in advance and shall be defined as for contracts with flexible considerations which are paid annually, with the following exceptions:
(a) The portion of the net consideration for the first contract year to be accumulated shall be the sum of 65 percent of the net consideration for the first contract year plus 22.5 percent of the excess of the net consideration for the first contract year over the lesser of the net considerations for the second and third contract years.
(b) The annual contract charge shall be the lesser of:
(1) Thirty dollars; or
(2) Ten percent of the gross annual consideration.
3. With respect to contracts providing for a single consideration, minimum nonforfeiture amounts shall be defined as for contracts with flexible considerations except that the percentage of net consideration used to determine the minimum nonforfeiture amount shall be equal to 90 percent and the net consideration shall be the gross consideration less a contract charge of $75.]
κ2003 Statutes of Nevada, Page 3317 (CHAPTER 495, AB 453)κ
3. For the purpose of this section, the rate of interest used to determine the minimum nonforfeiture amounts must be an annual rate of interest determined as the lesser of 3 percent per annum or a rate specified in the contract if the rate is calculated in accordance with regulations adopted by the Commissioner, except that at no time may the resulting rate be less than 1 percent per annum.
Sec. 57. NRS 690B.050 is hereby amended to read as follows:
690B.050 1. Each insurer which issues a policy of insurance covering the liability of a physician licensed under chapter 630 of NRS or an osteopathic physician licensed under chapter 633 of NRS for a breach of his professional duty toward a patient shall , within 30 days after a claim is closed under the policy, submit a report to the Commissioner [within 30 days each settlement or award made or judgment rendered by reason of a claim, giving the] concerning the claim. The report must include, without limitation:
(a) The name and address of the claimant and [physician and] the insured under the policy;
(b) A statement setting forth the circumstances of the case [.
2.] ;
(c) Information indicating whether any payment was made on the claim and the amount of the payment, if any; and
(d) The information specified in subsection 2 of NRS 679B.144.
2. An insurer who fails to comply with the provisions of subsection 1 is subject to the imposition of an administrative fine pursuant to NRS 679B.460.
3. The Commissioner shall , within 30 days after receiving a report from an insurer pursuant to this section, submit a report to the Board of Medical Examiners or the state board of osteopathic medicine, as applicable, [within 30 days after receiving the report of the insurer, each claim made and each settlement, award or judgment.] setting forth the information provided to the Commissioner by the insurer pursuant to this section.
Sec. 57.5. NRS 690B.100 is hereby amended to read as follows:
690B.100 As used in NRS 690B.100 to 690B.180, inclusive, unless the context otherwise requires:
1. Home means a structure used primarily for residential purposes and includes, without limitation:
(a) A single-family dwelling;
(b) A unit in a multiple-family structure;
(c) A mobile home; and
(d) The common elements of a common-interest community, as defined in NRS 116.110318, and any appurtenance to the common elements.
2. Insurance for home protection means a contract of insurance, which affords coverage over a specified term for a predetermined fee, under which a person, other than the manufacturer, builder, seller or lessor of the home, agrees to repair, replace or indemnify from the cost of repair or replacement based upon the failure of any structure, component, system or appliance of the home. The term does not include [a] :
(a) A contract which insures against any consequential losses caused by the defects or failures.
(b) An annual home service agreement on household appliances, systems and components if the agreement principally provides for service, repair or replacement due to normal wear and tear or inherent defect.
κ2003 Statutes of Nevada, Page 3318 (CHAPTER 495, AB 453)κ
Such agreements may include provisions for incidental indemnity or for service or repair of roof leaks.
Sec. 58. Chapter 692C of NRS is hereby amended by adding thereto the provisions set forth as sections 59 to 65, inclusive, of this act.
Sec. 59. Acquisition means any agreement, arrangement or activity, the consummation of which results in a person directly or indirectly acquiring the control of another person. The term includes, but is not limited to:
1. The acquiring of a voting security;
2. The acquiring of any asset;
3. Bulk reinsurance; and
4. A merger.
Sec. 60. Involved insurer includes an insurer that:
1. Acquires a person or is acquired by a person;
2. Is affiliated with an insurer that acquires a person or is acquired by a person; or
3. Is the result of a merger.
Sec. 61. The provisions of this chapter apply to any acquisition in which a change in control of an insurer who is authorized to do business in this state occurs, except:
1. An acquisition that is subject to approval or disapproval by the Commissioner pursuant to NRS 692C.180 to 692C.250, inclusive.
2. A purchase of securities solely for investment purposes if the securities are not used for voting or not otherwise used to cause or attempt to cause a substantial lessening of competition in any insurance market in this state, except that, if a purchase of securities creates a presumption of control of the insurer pursuant to subsection 2 of NRS 692C.050, the purchase is not solely for investment purposes unless the Commissioner of insurance of the insurers state of domicile:
(a) Accepts a disclaimer of control or affirmatively finds that control does not exist; and
(b) Submits the accepted disclaimer or a statement setting forth the affirmative finding to the Commissioner.
3. An acquisition of a person by another person if:
(a) Each of those persons is not directly or through an affiliate primarily engaged in the business of insurance; and
(b) At least 30 days before the effective date of the acquisition, a notice is filed with the Commissioner in accordance with section 62 of this act, if required.
4. An acquisition by a person of an affiliate of that person.
5. An acquisition that does not immediately cause:
(a) The combined market share of the involved insurers to exceed 5 percent of the total market;
(b) An increase in any market share; or
(c) For any market:
(1) The combined market share of the involved insurers to exceed 12 percent of the total market; and
(2) The market share to increase by more than 2 percent of the total market.
As used in this subsection, market means direct written premiums in this state for a line of authority set forth in the annual statement required to be filed by insurers authorized to do business in this state.
κ2003 Statutes of Nevada, Page 3319 (CHAPTER 495, AB 453)κ
6. An acquisition for which, solely because of the effect of the acquisition on ocean marine insurance, a notification is required pursuant to this section.
7. An acquisition of an insurer whose domiciliary commissioner of insurance:
(a) Determines that:
(1) The insurer is in a failing condition;
(2) A feasible alternative for improving that condition does not exist; and
(3) The public benefit received from improving that condition through the acquisition of the insurer outweighs the public benefit received from increasing competition; and
(b) Submits his determination made pursuant to paragraph (a) to the Commissioner.
Sec. 62. 1. An acquisition to which the provisions of section 61 of this act apply is subject to an order issued pursuant to section 64 of this act unless:
(a) The acquiring person files a notice of acquisition pursuant to this section; and
(b) The waiting period specified in subsection 4 has expired.
2. The Commissioner shall prescribe the form of the notice required pursuant to subsection 1. A notice of acquisition filed pursuant to this section must include:
(a) The information required by the National Association of Insurance Commissioners relating to any market that, pursuant to subsection 5 of section 61 of this act, causes the acquisition not to be exempted from the provisions of this section; and
(b) Any other material or information required by the Commissioner to determine whether or not the proposed acquisition, if consummated, would violate the provisions of section 63 of this act.
3. The information required pursuant to subsection 2 may include the opinion of an economist relating to the competitive effect of the acquisition on the business of insurance in this state if the opinion is accompanied by a summary of the education and experience of the economist and a statement indicating his ability to provide an informed opinion.
4. Except as otherwise provided in subsection 5, the waiting period for an acquisition required pursuant to subsection 1 begins on the date the Commissioner receives the notice filed pursuant to subsection 1 and ends on the expiration of 30 days after that date or on the expiration of a shorter period prescribed by the Commissioner, whichever is earlier.
5. Before the expiration of the waiting period specified in subsection 4, the Commissioner may, not more than once, require a person to submit additional information relating to the proposed acquisition. If the Commissioner requires the submission of additional information, the waiting period for the acquisition ends upon the expiration of 30 days after the Commissioner receives the additional information or upon the expiration of a shorter period prescribed by the Commissioner, whichever is earlier.
Sec. 63. 1. The Commissioner may issue an order pursuant to section 64 of this act relating to an acquisition if:
(a) The effect of the acquisition may substantially lessen competition in any line of insurance in this state or tend to create a monopoly; or
κ2003 Statutes of Nevada, Page 3320 (CHAPTER 495, AB 453)κ
(b) The acquiring person fails to file sufficient materials or information pursuant to section 62 of this act.
2. In determining whether to issue an order pursuant to subsection 1, the Commissioner shall consider the standards set forth in the Horizontal Merger Guidelines issued by the United States Department of Justice and the Federal Trade Commission and in effect at the time the Commissioner receives the notice required pursuant to section 62 of this act.
3. The Commissioner shall not issue an order specified in subsection 1:
(a) If:
(1) The acquisition creates substantial economies of scale or economies in the use of resources that may not be created in any other manner; and
(2) The public benefit received from those economies exceeds the public benefit received from not lessening competition; or
(b) If:
(1) The acquisition substantially increases the availability of insurance; and
(2) The public benefit received by that increase exceeds the public benefit received from not lessening competition.
4. The public benefits set forth in subparagraph 2 of paragraphs (a) and (b) of subsection 3 may be considered together, as applicable, in assessing whether the public benefits received from the acquisition exceed any benefit to competition that would arise from disapproving the acquisition.
5. The Commissioner has the burden of establishing a violation of the competitive standard set forth in subsection 1.
Sec. 64. 1. Except as otherwise provided in this section, if the Commissioner determines that an acquisition may substantially lessen competition in any line of insurance in this state or tends to create a monopoly, he may issue an order:
(a) Requiring an involved insurer to cease and desist from doing business in this state relating to that line of insurance; or
(b) Denying the application of an acquired or acquiring insurer for a license or authority to do business in this state.
2. The Commissioner shall not issue an order pursuant to subsection 1 unless:
(a) He conducts a hearing concerning the acquisition in accordance with NRS 679B.310 to 679B.370, inclusive;
(b) A notice of the hearing is issued before the expiration of the waiting period for the acquisition specified in section 62 of this act, but not less than 15 days before the hearing; and
(c) The hearing is conducted and the order is issued not later than 60 days after the expiration of the waiting period.
3. Each order issued pursuant to subsection 1 must include a written decision of the Commissioner setting forth his findings of fact and conclusions of law relating to the acquisition.
4. An order issued pursuant to this section does not become final until 30 days after it is issued, during which time the involved insurer may submit to the Commissioner a plan to remedy, within a reasonable period, the anticompetitive effect of the acquisition. As soon as practicable after receiving the plan, the Commissioner shall, based upon the plan and any information included in the plan, issue a written determination setting forth:
κ2003 Statutes of Nevada, Page 3321 (CHAPTER 495, AB 453)κ
information included in the plan, issue a written determination setting forth:
(a) The conditions or actions, if any, required to:
(1) Eliminate the anticompetitive effect of the acquisition; and
(2) Vacate or modify the order; and
(b) The period in which the conditions or actions specified in paragraph (a) must be performed.
5. An order issued pursuant to subsection 1 does not apply to an acquisition that is not consummated.
6. A person who violates a cease and desist order issued pursuant to this section during any period in which the order is in effect is subject, at the discretion of the Commissioner, to:
(a) The imposition of a civil penalty of not more than $10,000 per day for each day the violation continues;
(b) The suspension or revocation of the persons license or certificate of authority; or
(c) Both the imposition of a civil penalty pursuant to paragraph (a) and the suspension or revocation of the persons license or certificate of authority pursuant to paragraph (b).
7. In addition to any fine imposed pursuant to NRS 692C.480, any insurer or other person who fails to make any filing required by sections 61 to 64, inclusive, of this act and who fails to make a good faith effort to comply with any such requirement is subject to a fine of not more than $50,000.
8. The provisions of NRS 692C.430, 692C.440 and 692C.460 do not apply to an acquisition to which the provisions of section 61 of this act apply.
Sec. 65. 1. A director or officer of an insurance holding company system who knowingly violates, or knowingly participates in or assents to a violation of, NRS 692C.350, 692C.360, 692C.363 or 692C.390, or who knowingly permits any officer or agent of the insurance holding company to engage in a transaction in violation of NRS 692C.360 or 692C.363 or to pay a dividend or make an extraordinary distribution in violation of NRS 692C.390 shall pay, after receiving notice and a hearing before the Commissioner, a fine of not more than $10,000 for each violation. In determining the amount of the fine, the Commissioner shall consider the appropriateness of the fine in relation to:
(a) The gravity of the violation;
(b) The history of any previous violations committed by the director or officer; and
(c) Any other matters as justice may require.
2. Whenever it appears to the Commissioner that an insurer or any director, officer, employee or agent of the insurer has engaged in a transaction or entered into a contract to which the provisions of NRS 692C.363 apply and for which the insurer has not obtained the Commissioners approval, the Commissioner may order the insurer to cease and desist immediately from engaging in any further activity relating to the transaction or contract. In addition to issuing such an order, the Commissioner may order the insurer to rescind the contract and return each party to the contract to the position he was in before the execution of the contract if the issuing of the order is in the best interest of:
(a) The policyholders or creditors of the insurer; or
κ2003 Statutes of Nevada, Page 3322 (CHAPTER 495, AB 453)κ
(b) The members of the general public.
Sec. 66. NRS 692C.020 is hereby amended to read as follows:
692C.020 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 692C.030 to 692C.110, inclusive, and sections 59 and 60 of this act, have the meanings ascribed to them in those sections.
Sec. 67. NRS 692C.080 is hereby amended to read as follows:
692C.080 Person includes an individual, corporation, limited-liability company, partnership, association, joint stock company, trust, unincorporated organization or any similar entity, or any combination thereof acting in concert. The term does not include [any] :
1. Any joint venture partnership that is exclusively engaged in owning, managing, leasing or developing any real or tangible personal property; or
2. Any securities broker performing no more than the usual and customary brokers function.
Sec. 68. NRS 692C.140 is hereby amended to read as follows:
692C.140 In addition to making investments in common stock, preferred stock, debt obligations and other securities permitted under chapter 682A of NRS, a domestic insurer may invest:
1. In common stock, preferred stock, debt obligations and other securities of one or more subsidiaries, amounts which do not exceed the lesser of 10 percent of the insurers assets or 50 percent of its surplus as regards policyholders, if the insurers surplus as regards policyholders remains at a reasonable level in relation to the insurers outstanding liabilities and adequate to its financial needs. In calculating the amount of such investments, the following must be included:
(a) Total money or other consideration expended and obligations assumed in the acquisition or formation of a subsidiary, including all organizational expenses and contributions to capital and surplus of the subsidiary whether or not represented by the purchase of capital stock or issuance of other securities; and
(b) All amounts expended in acquiring additional common stock, preferred stock, debt obligations and other securities and all contributions to the capital or surplus of a subsidiary after its acquisition or formation.
2. Any amount in common stock, preferred stock, debt obligations and other securities of one or more subsidiaries, if [the insurers total liabilities, as calculated for the National Association of Insurance Commissioners annual statement purposes, are less than 10 percent of assets and if the insurers surplus remains as regards policyholders, considering such investment as if it were a disallowed asset, at a reasonable level in relation to the insurers outstanding liabilities and adequate to its financial needs.
3. Any amount in common stock, preferred stock, debt obligations and other securities of one or more subsidiaries if] each subsidiary agrees to limit its investments in any asset so that those investments will not cause the amount of the total investment of the insurer to exceed any of the investment limitations specified in subsection 1 or in chapter 682A of NRS. For the purpose of this subsection, total investment of the insurer includes any direct investment by the insurer in an asset and the insurers proportionate share of any investment in an asset by any subsidiary of the insurer, which must be calculated by multiplying the amount of the subsidiarys investment by the percentage of the insurers ownership of the subsidiary.
κ2003 Statutes of Nevada, Page 3323 (CHAPTER 495, AB 453)κ
[4.] 3. Any amount in common stock, preferred stock, debt obligations or other securities of one or more subsidiaries, with the approval of the Commissioner, if the insurers surplus as regards policyholders remains at a reasonable level in relation to the insurers outstanding liabilities and adequate to its financial needs.
[5. Any amount in the common stock, preferred stock, debt obligations or other securities of any subsidiary exclusively engaged in holding title to or holding title to and managing or developing real or personal property, if after considering as a disallowed asset so much of the investment as is represented by subsidiary assets which if held directly by the insurer would be considered as a disallowed asset, the insurers surplus as regards policyholders will remain at a reasonable level in relation to the insurers outstanding liabilities and adequate to its financial needs, and if after the investment all voting securities of the subsidiary are owned by the insurer.]
Sec. 69. NRS 692C.180 is hereby amended to read as follows:
692C.180 1. No person other than the issuer may make a tender for or a request or invitation for tenders of, or enter into any agreement to exchange securities for, seek to acquire or acquire in the open market or otherwise, any voting security of a domestic insurer if, after the consummation thereof, he would directly or indirectly, or by conversion or by exercise of any right to acquire, be in control of the insurer , nor may any person enter into an agreement to merge with or otherwise acquire control of a domestic insurer, unless, at the time any such offer, request or invitation is made or any such agreement is entered into, or before the acquisition of those securities if no offer or agreement is involved, he has filed with the Commissioner and has sent to the insurer, and the insurer has sent to its shareholders, a statement containing the information required by NRS 692C.180 to 692C.250, inclusive, and the offer, request, invitation, agreement or acquisition has been approved by the Commissioner in the manner prescribed in this chapter.
2. For purposes of this section, a domestic insurer includes any other person controlling a domestic insurer unless the other person is [either] directly or through [its] his affiliates primarily engaged in a business other than the business of insurance. [However,] If a person is directly or through his affiliates primarily engaged in [another] a business other than the business of insurance, he shall , at least 60 days before the proposed effective date of the acquisition, file a notice of intent to acquire [, on a form prescribed by] with the Commissioner [, at least 60 days before the proposed effective date of the acquisition.] setting forth the information required by section 62 of this act.
Sec. 70. NRS 692C.210 is hereby amended to read as follows:
692C.210 1. [The] Except as otherwise provided in subsection 5, the Commissioner shall approve any merger or other acquisition of control referred to in NRS 692C.180 unless, after a public hearing thereon, he finds that:
(a) After the change of control , the domestic insurer [referred to] specified in NRS 692C.180 would not be able to satisfy the requirements for the issuance of a license to write the line or lines of insurance for which it is presently licensed;
(b) The effect of the merger or other acquisition of control would be substantially to lessen competition in insurance in this state or tend to create a monopoly ; [therein;]
κ2003 Statutes of Nevada, Page 3324 (CHAPTER 495, AB 453)κ
(c) The financial condition of any acquiring party [is such as might] may jeopardize the financial stability of the insurer, or prejudice the interest of its policyholders or the interests of any remaining security holders who are unaffiliated with the acquiring party;
(d) The terms of the offer, request, invitation, agreement or acquisition referred to in NRS 692C.180 are unfair and unreasonable to the security holders of the insurer;
(e) The plans or proposals which the acquiring party has to liquidate the insurer, sell its assets or consolidate or merge it with any person, or to make any other material change in its business or corporate structure or management, are unfair and unreasonable to policyholders of the insurer and not in the public interest; [or]
(f) The competence, experience and integrity of those persons who would control the operation of the insurer are such that it would not be in the interest of policyholders of the insurer and of the public to permit the merger or other acquisition of control [.] ; or
(g) If approved, the merger or acquisition of control would likely be harmful or prejudicial to the members of the public who purchase insurance.
2. The public hearing [referred to] specified in subsection 1 must be held within 30 days after the statement required by NRS 692C.180 has been filed, and at least 20 days notice thereof must be given by the Commissioner to the person filing the statement. Not less than 7 days notice of the public hearing must be given by the person filing the statement to the insurer and to [such other persons as may be] any other person designated by the Commissioner. The insurer shall give such notice to its security holders. The Commissioner shall make a determination within 30 days after the conclusion of the hearing. If he determines that an infusion of capital to restore capital in connection with the change in control is required, the requirement must be met within 60 days after notification is given of the determination. At the hearing, the person filing the statement, the insurer, any person to whom notice of hearing was sent [,] and any other person whose interests may be affected thereby may present evidence, examine and cross-examine witnesses, and offer oral and written arguments and , in connection therewith , may conduct discovery proceedings in the same manner as is presently allowed in the district court of this state. All discovery proceedings must be concluded not later than 3 days before the commencement of the public hearing.
3. The Commissioner may retain at the acquiring partys expense attorneys, actuaries, accountants and other experts not otherwise a part of his staff as may be reasonably necessary to assist him in reviewing the proposed acquisition of control.
4. The period for review by the Commissioner must not exceed the 60 days allowed between the filing of the notice of intent to acquire required pursuant to subsection 2 of NRS 692C.180 and the date of the proposed acquisition if the proposed affiliation or change of control involves a financial institution, or an affiliate of a financial institution, and an insured.
5. When making a determination pursuant to paragraph (b) of subsection 1, the Commissioner:
(a) Shall require the submission of the information specified in subsection 2 of section 62 of this act;
κ2003 Statutes of Nevada, Page 3325 (CHAPTER 495, AB 453)κ
(b) Shall not disapprove the merger or acquisition of control if he finds that any of the circumstances specified in subsection 3 of section 63 of this act exist; and
(c) May condition his approval of the merger or acquisition of control in the manner provided in subsection 4 of section 64 of this act.
6. If, in connection with a change of control of a domestic insurer, the Commissioner determines that the person who is acquiring control of the domestic insurer must maintain or restore the capital of the domestic insurer in an amount that is required by the laws and regulations of this state, the Commissioner shall make the determination not later than 60 days after the notice of intent to acquire required pursuant to subsection 2 of NRS 692C.180 is filed with the Commissioner.
Sec. 71. NRS 692C.260 is hereby amended to read as follows:
692C.260 1. Every insurer which is authorized to do business in this state and which is a member of an insurance holding company system shall register with the Commissioner, except a foreign insurer subject to disclosure requirements and standards adopted by a statute or regulation in the jurisdiction of its domicile which are substantially similar to those contained in NRS 692C.260 to 692C.350, inclusive.
2. Any insurer which is subject to registration under NRS 692C.260 to 692C.350, inclusive, shall register [no] not later than September 1, 1973, or 15 days after it becomes subject to registration, whichever is later, unless the Commissioner for good cause shown extends the time for registration. The Commissioner may require any authorized insurer which is a member of a holding company system which is not subject to registration under this section to furnish a copy of the registration statement or other information filed by [such] the insurance company with the insurance regulatory authority of domiciliary jurisdiction.
3. Any person within an insurance holding company system subject to registration shall, upon request by an insurer, provide complete and accurate information to the insurer if the information is reasonably necessary to enable the insurer to comply with the provisions of this section.
Sec. 72. NRS 692C.270 is hereby amended to read as follows:
692C.270 Every insurer subject to registration shall file a registration statement on a form provided by the Commissioner, which [shall] must contain current information about:
1. The capital structure, general financial condition, ownership and management of the insurer and any person controlling the insurer.
2. The identity of every member of the insurance holding company system.
3. The following agreements in force, relationships subsisting and transactions currently outstanding between [such] the insurer and its affiliates:
(a) Loans, other investments or purchases, sales or exchanges of securities of the affiliates by the insurer or of the insurer by its affiliates.
(b) Purchases, sales or exchanges of assets.
(c) Transactions not in the ordinary course of business.
(d) Guarantees or undertakings for the benefit of an affiliate which result in an actual contingent exposure of the insurers assets to liability, other than insurance contracts entered into in the ordinary course of the insurers business.
κ2003 Statutes of Nevada, Page 3326 (CHAPTER 495, AB 453)κ
(e) All management and service contracts and all cost-sharing arrangements, other than cost allocation arrangements based upon generally accepted accounting principles.
(f) Reinsurance agreements covering all or substantially all of one or more lines of insurance of the ceding company.
(g) Any dividend or other distribution made to a shareholder.
(h) Any consolidated agreement to allocate taxes.
4. [Other] Any pledge of the insurers stock, including the stock of any subsidiary or controlling affiliate of the insurer, for a loan made to any member of the insurance holding company system.
5. Any other matters concerning transactions between registered insurers and any affiliates as may be included from time to time in any registration forms adopted or approved by the Commissioner.
Sec. 73. NRS 692C.330 is hereby amended to read as follows:
692C.330 1. Any person may file with the Commissioner [a] :
(a) A disclaimer of affiliation with any authorized insurer specified in the disclaimer; or [such a]
(b) A request for a termination of registration on the basis that the person does not, or will not after taking an action specified in the request for termination, control another person specified in the request.
2. A disclaimer of affiliation or request for a termination of registration specified in subsection 1 may be filed by [such] the authorized insurer or any member of an insurance holding company system. [The disclaimer shall fully disclose] A disclaimer of affiliation or request for a termination of registration filed pursuant to subsection 1 must include:
(a) A statement indicating the number of authorized, issued and outstanding voting securities of the person specified in the disclaimer of affiliation or request for a termination of registration;
(b) A statement indicating the number and percentage of shares of the person specified in the disclaimer of affiliation or request for a termination of registration that are owned or beneficially owned by the person disclaiming control, and the number of those shares for which the person disclaiming control has a direct or indirect right to acquire;
(c) A statement setting forth all material relationships and bases for affiliation between [such person and such insurer as well as the basis for disclaiming such affiliation.
2.] the person specified in the disclaimer of affiliation or request for a termination of registration and the person and any affiliate of the person who is disclaiming control of the person specified in the disclaimer of affiliation or request for a termination of registration; and
(d) An explanation of why the person who is disclaiming control does not control the person specified in the disclaimer of affiliation or request for a termination of registration.
3. A request for a termination of registration filed pursuant to subsection 1 shall be deemed granted upon filing unless the Commissioner, within 30 days after receipt of the request for a termination of registration, notifies the person, authorized insurer or member of an insurance holding company system that the request is denied.
4. After a disclaimer of affiliation has been filed, the insurer [shall be] is relieved of any duty to register or report under NRS 692C.260 to 692C.350, inclusive, which may arise out of the insurers relationship with [such] the person unless the Commissioner disallows [such a] the disclaimer.
κ2003 Statutes of Nevada, Page 3327 (CHAPTER 495, AB 453)κ
The Commissioner [shall disallow such a] may disallow the disclaimer only after furnishing all parties in interest with a notice and opportunity to be heard and after making specific findings of fact to support [such] the disallowance.
Sec. 74. NRS 692C.350 is hereby amended to read as follows:
692C.350 1. The failure to file a registration statement or any amendment thereto required by NRS 692C.260 to 692C.350, inclusive, within the time specified for [such filing, shall be] the filing is a violation of NRS 692C.260 to 692C.350, inclusive.
2. Except as otherwise provided in subsection 3, if an insurer fails, without just cause, to file a registration statement required pursuant to NRS 692C.270, the insurer shall, after receiving notice and a hearing, pay a civil penalty of $100 for each day the insurer fails to file the registration statement. The civil penalty may be recovered in a civil action brought by the Commissioner. Any civil penalty paid pursuant to this subsection must be deposited in the State General Fund.
3. The maximum civil penalty that may be imposed pursuant to subsection 2 is $20,000. The Commissioner may reduce the amount of the civil penalty if the insurer demonstrates to the satisfaction of the Commissioner that the payment of the civil penalty would impose a financial hardship on the insurer.
4. Any officer, director or employee of an insurance holding company system who willfully and knowingly subscribes to or makes or causes to be made any false statement, false report or false filing with the intent to deceive the Commissioner in the performance of his duties pursuant to NRS 692C.260 to 692C.350, inclusive, is guilty of a category D felony and shall be punished as provided in NRS 193.130. The officer, director or employee is personally liable for any fine imposed against him pursuant to that section.
Sec. 75. NRS 692C.363 is hereby amended to read as follows:
692C.363 1. A domestic insurer shall not enter into any of the following transactions with an affiliate unless the insurer has notified the Commissioner in writing of its intention to enter into the transaction at least 60 days previously, or such shorter period as the Commissioner may permit, and the Commissioner has not disapproved it within that period:
(a) A sale, purchase, exchange, loan or extension of credit, guaranty or investment if the transaction equals at least:
(1) With respect to an insurer other than a life insurer, the lesser of 3 percent of the insurers admitted assets or 25 percent of surplus as regards policyholders; or
(2) With respect to a life insurer, 3 percent of the insurers admitted assets,
computed as of December 31 next preceding the transaction.
(b) A loan or extension of credit to any person who is not an affiliate, if the insurer makes the loan or extension of credit with the agreement or understanding that the proceeds of the transaction, in whole or in substantial part, are to be used to make loans or extensions of credit to, to purchase assets of, or to make investments in, any affiliate of the insurer if the transaction equals at least:
(1) With respect to insurers other than life insurers, the lesser of 3 percent of the insurers admitted assets or 25 percent of surplus as regards policyholders; or
κ2003 Statutes of Nevada, Page 3328 (CHAPTER 495, AB 453)κ
(2) With respect to life insurers, 3 percent of the insurers admitted assets,
computed as of December 31 next preceding the transaction.
(c) An agreement for reinsurance or a modification thereto in which the premium for reinsurance or a change in the insurers liabilities equals at least 5 percent of the insurers surplus as regards policyholders as of December 31 next preceding the transaction, including an agreement which requires as consideration the transfer of assets from an insurer to a nonaffiliate, if an agreement or understanding exists between the insurer and nonaffiliate that any portion of those assets will be transferred to an affiliate of the insurer.
(d) An agreement for management, contract for service, guarantee or arrangement to share costs.
(e) A guaranty made by a domestic insurer, except that a guaranty that is quantifiable as to amount is not subject to the provisions of this subsection unless the guaranty exceeds the lesser of one-half of 1 percent of the admitted assets of the domestic insurer or 10 percent of its surplus as regards policyholders as of December 31 next preceding the guaranty.
(f) Except as otherwise provided in subsection 3, a direct or indirect acquisition of or investment in a person who controls the domestic insurer or an affiliate of the domestic insurer in an amount that, when added to its present holdings, exceeds 2.5 percent of the domestic insurers surplus to policyholders.
(g) A material transaction, specified by regulation, which the Commissioner determines may adversely affect the interest of the insurers policyholders.
2. This section does not authorize or permit any transaction which, in the case of an insurer not an affiliate, would be contrary to law.
3. The provisions of paragraph (f) of subsection 1 do not apply to a direct or indirect acquisition of or investment in:
(a) A subsidiary acquired in accordance with this section or NRS 692C.140; or
(b) A nonsubsidiary insurance affiliate that is subject to the provisions of this chapter.
Sec. 76. (Deleted by amendment.)
Sec. 77. NRS 692C.390 is hereby amended to read as follows:
692C.390 [No]
1. An insurer subject to registration under NRS 692C.260 to 692C.350, inclusive, shall not pay any extraordinary dividend or make any other extraordinary distribution to its shareholders until:
[1.] (a) Thirty days after the Commissioner has received notice of the declaration thereof and has not within [such] that period disapproved [such] the payment; or
[2.] (b) The Commissioner [shall have approved such] approves the payment within [such] the 30-day period.
2. A request for approval of an extraordinary dividend or any other extraordinary distribution pursuant to subsection 1 must include:
(a) A statement indicating the amount of the proposed dividend or distribution;
(b) The date established for the payment of the proposed dividend or distribution;
(c) A statement indicating whether the proposed dividend or distribution is to be paid in the form of cash or property and, if it is to be paid in the form of property, a description of the property, its cost and its fair market value together with an explanation setting forth the basis for determining its fair market value;
κ2003 Statutes of Nevada, Page 3329 (CHAPTER 495, AB 453)κ
paid in the form of property, a description of the property, its cost and its fair market value together with an explanation setting forth the basis for determining its fair market value;
(d) A copy of a work paper or other document setting forth the calculations used to determine that the proposed dividend or distribution is extraordinary, including:
(1) The amount, date and form of payment of each regular dividend or distribution paid by the insurer, other than any distribution of a security of the insurer, within the 12 consecutive months immediately preceding the date established for the payment of the proposed dividend or distribution;
(2) The amount of surplus, if any, as regards policyholders, including total capital and surplus, as of December 31 next preceding;
(3) If the insurer is a life insurer, the amount of any net gains obtained from the operations of the insurer for the 12-month period ending December 31 next preceding;
(4) If the insurer is not a life insurer, the amount of net income of the insurer less any realized capital gains for the 12-month period ending on the December 31 of the year next preceding and the two consecutive 12-month periods immediately preceding that period; and
(5) If the insurer is not a life insurer, the amount of each dividend paid by the insurer to shareholders, other than a distribution of any securities of the insurer, during the preceding 2 calendar years;
(e) A balance sheet and statement of income for the period beginning on the date of the last annual statement filed by the insurer with the Commissioner and ending on the last day of the month immediately preceding the month in which the insurer files the request for approval; and
(f) A brief statement setting forth:
(1) The effect of the proposed dividend or distribution upon the insurers surplus;
(2) The reasonableness of the insurers surplus in relation to the insurers outstanding liabilities; and
(3) The adequacy of the insurers surplus in relation to the insurers financial requirements.
3. Each insurer specified in subsection 1 that pays an extraordinary dividend or makes any other extraordinary distribution to its shareholders shall, within 15 days after declaring the dividend or making the distribution, report that fact to the Commissioner. The report must include the information specified in paragraph (d) of subsection 2.
Sec. 78. NRS 692C.420 is hereby amended to read as follows:
692C.420 1. All information, documents and copies thereof obtained by or disclosed to the Commissioner or any other person in the course of an examination or investigation made pursuant to NRS 692C.410, and all information reported pursuant to NRS 692C.260 to 692C.350, inclusive, [shall] must be given confidential treatment and [shall not be] is not subject to subpoena and [shall] must not be made public by the Commissioner or any other person, except to insurance departments of other states, without the prior written consent of the insurer to which it pertains unless the Commissioner, after giving the insurer and its affiliates who would be affected thereby [,] notice and an opportunity to be heard, determines that the interests of policyholders, shareholders or the public will be served by the publication thereof, in which event he may publish all or any part thereof in [such] any manner as he may deem appropriate.
κ2003 Statutes of Nevada, Page 3330 (CHAPTER 495, AB 453)κ
publication thereof, in which event he may publish all or any part thereof in [such] any manner as he may deem appropriate.
2. The Commissioner or any person who receives any documents, materials or other information while acting under the authority of the Commissioner must not be permitted or required to testify in a private civil action concerning any information, document or copy thereof specified in subsection 1.
3. The Commissioner may share or receive any information, document or copy thereof specified in subsection 1 in accordance with section 1 of this act. The sharing or receipt of the information, document or copy pursuant to this subsection does not waive any applicable privilege or claim of confidentiality in the information, document or copy.
Sec. 78.3. NRS 693A.495 is hereby amended to read as follows:
693A.495 1. No director, officer, employee or agent of the converting mutual, or any other person, may receive any fee, commission or other valuable consideration, other than his usual regular salary and compensation, for aiding, promoting or assisting in a plan of conversion except as set forth in the plan of conversion approved by the Commissioner.
2. Subsection 1 does not prohibit a management or employee incentive compensation program that is contained in the plan of conversion and approved by the Commissioner to be adopted upon conversion to the new stock insurer or prohibit such a program to be adopted later by the new stock insurer.
3. Subsection 1 does not prohibit the payment of reasonable fees and compensation to attorneys, accountants, actuaries and investment bankers for services performed in the independent practice of their professions if the person is also a member of the board of directors of the converting mutual.
Sec. 78.5. NRS 693A.625 is hereby amended to read as follows:
693A.625 1. All the initial shares of the capital stock of a reorganized stock insurer must be issued to the mutual insurance holding company or to [a single] one or more intermediate stock holding [company.] companies.
2. Policyholders of a domestic mutual insurer that has been reorganized are members of the mutual insurance holding company, and their voting rights must be determined in accordance with the articles of incorporation and bylaws of the mutual insurance holding company. The mutual insurance holding company shall provide its members with the same membership rights as were provided to policyholders of the mutual insurer immediately before reorganization. The reorganization must not reduce, limit or otherwise affect the number or identity of the policyholders who may become members of the mutual insurance holding company or secure for managerial personnel any unfair advantage through or connected with the reorganization.
3. A mutual insurance holding company or an intermediate stock holding company formed pursuant to NRS 693A.550 to 693A.665, inclusive:
(a) Must not be authorized to transact the business of insurance;
(b) Is subject to the jurisdiction of the Commissioner, who shall ensure that policyholder interests are protected; and
(c) Shall be deemed to be an insurer for the purposes of chapter 696B of NRS.
4. An intermediate stock holding company formed pursuant to NRS 693A.550 to 693A.665, inclusive, shall be deemed to be a mutual insurance holding company subject to the provisions of NRS 693A.400 to 693A.540, inclusive.
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5. A mutual insurance holding company formed pursuant to NRS 693A.550 to 693A.665, inclusive:
(a) Shall not issue stock.
(b) Shall invest in insurers not less than 50 percent of its net worth as determined by generally accepted accounting practices.
6. The aggregate pledges and encumbrances of the assets of a mutual insurance holding company must not affect more than 49 percent of the mutual insurance holding companys stock in an intermediate stock holding company or a reorganized stock insurer.
7. If any proceeding under chapter 696B of NRS is brought against a reorganized stock insurer, the mutual insurance holding company and each intermediate stock holding company must be named parties to the proceeding. All the assets of the mutual insurance holding company and [the] each intermediate stock holding company shall be deemed assets of the estate of the reorganized stock insurer to the extent necessary to satisfy claims against the reorganized stock insurer.
8. No distribution to members of a mutual insurance holding company may occur without the prior written approval of the Commissioner. The Commissioner may give such approval only if he is satisfied that the distribution is fair and equitable to policyholders as members of the mutual insurance holding company.
9. No solicitation for the sale of the stock of an intermediate stock holding company or a reorganized stock insurer may be made without the prior written approval of the Commissioner.
10. A mutual insurance holding company or an intermediate stock holding company may not voluntarily dissolve without the approval of the Commissioner.
Sec. 78.7. NRS 693A.640 is hereby amended to read as follows:
693A.640 1. No director, officer, employee or agent of the mutual insurer, or any other person, may receive any fee, commission or other valuable consideration, other than his usual regular salary and compensation, for aiding, promoting or assisting in a plan of reorganization except as set forth in the plan of reorganization approved by the Commissioner.
2. Subsection 1 does not prohibit a management or employee incentive compensation program that is contained in the plan of reorganization and approved by the Commissioner to be adopted upon reorganization to the reorganized stock insurer or prohibit such a program to be adopted later by the reorganized stock insurer.
3. Subsection 1 does not prohibit the payment of reasonable fees and compensation to attorneys, accountants, actuaries and investment bankers for services performed in the independent practice of their professions if the person is also a member of the board of directors of the mutual insurer.
Sec. 79. NRS 694C.050 is hereby amended to read as follows:
694C.050 Association captive insurer means a captive insurer that only insures risks of the member organizations of an association and the affiliated companies of those members, including groups formed pursuant to the Product Liability Risk Retention Act of 1981, as amended, 15 U.S.C. §§ 3901 et seq. , if:
1. The association or the member organizations of the association:
(a) Own, control or hold with the power to vote all the outstanding voting securities of the association captive insurer, if the association captive insurer is incorporated as a stock insurer; or
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(b) Have complete voting control over the captive insurer, if the captive insurer is formed as a mutual insurer; and
2. The member organizations of the association collectively constitute all the subscribers of the captive insurer, if the captive insurer is formed as a reciprocal insurer.
Sec. 80. NRS 694C.450 is hereby amended to read as follows:
694C.450 1. Except as otherwise provided in this section, a captive insurer shall pay to the Division, not later than March 1 of each year, a tax at the rate of:
(a) Two-fifths of 1 percent on the first $20,000,000 of its net direct premiums;
(b) One-fifth of 1 percent on the next $20,000,000 of its net direct premiums; and
(c) Seventy-five thousandths of 1 percent on each additional dollar of its net direct premiums.
2. Except as otherwise provided in this section, a captive insurer shall pay to the Division, not later than March 1 of each year, a tax at a rate of:
(a) Two hundred twenty-five thousandths of 1 percent on the first $20,000,000 of revenue from assumed reinsurance premiums;
(b) One hundred fifty thousandths of 1 percent on the next $20,000,000 of revenue from assumed reinsurance premiums; and
(c) Twenty-five thousandths of 1 percent on each additional dollar of revenue from assumed reinsurance premiums.
The tax on reinsurance premiums pursuant to this subsection must not be levied on premiums for risks or portions of risks which are subject to taxation on a direct basis pursuant to subsection 1. A captive insurer is not required to pay any reinsurance premium tax pursuant to this subsection on revenue related to the receipt of assets by the captive insurer in exchange for the assumption of loss reserves and other liabilities of another insurer that is under common ownership and control with the captive insurer, if the transaction is part of a plan to discontinue the operation of the other insurer and the intent of the parties to the transaction is to renew or maintain such business with the captive insurer.
3. If the sum of the taxes to be paid by a captive insurer calculated pursuant to subsections 1 and 2 is less than $5,000 in any given year, the captive insurer shall pay a tax of $5,000 for that year.
4. Two or more captive insurers under common ownership and control must be taxed as if they were a single captive insurer.
5. Notwithstanding any specific statute to the contrary and except as otherwise provided in this subsection, the tax provided for by this section constitutes all the taxes collectible pursuant to the laws of this state from a captive insurer, and no occupation tax or other taxes may be levied or collected from a captive insurer by this state or by any county, city or municipality within this state, except for ad valorem taxes on real or personal property located in this state used in the production of income by the captive insurer.
6. Ten percent of the revenues collected from the tax imposed pursuant to this section must be deposited with the State Treasurer for credit to the Account for the Regulation and Supervision of Captive Insurers created pursuant to NRS 694C.460. The remaining 90 percent of the revenues collected must be deposited with the State Treasurer for credit to the State General Fund.
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7. A captive insurer that is issued a license pursuant to this chapter after July 1, 2003, is entitled to receive a nonrefundable credit of $5,000 applied against the aggregate taxes owed by the captive insurer for the first year in which the captive insurer incurs any liability for the payment of taxes pursuant to this section. A captive insurer is entitled to a nonrefundable credit pursuant to this section not more than once after the captive insurer is initially licensed pursuant to this chapter.
8. As used in this section, unless the context otherwise requires:
(a) Common ownership and control means:
(1) In the case of a stock insurer, the direct or indirect ownership of 80 percent or more of the outstanding voting stock of two or more corporations by the same member or members.
(2) In the case of a mutual insurer, the direct or indirect ownership of 80 percent or more of the surplus and the voting power of two or more corporations by the same member or members.
(b) Net direct premiums means the direct premiums collected or contracted for on policies or contracts of insurance written by a captive insurer during the preceding calendar year, less the amounts paid to policyholders as return premiums, including dividends on unabsorbed premiums or premium deposits returned or credited to policyholders.
Sec. 80.5. NRS 695C.055 is hereby amended to read as follows:
695C.055 1. The provisions of NRS 449.465, 679B.700, subsections 2, 4, 18, 19 and 32 of NRS 680B.010, NRS [680B.025] 680B.020 to 680B.060, inclusive, and chapter 695G of NRS apply to a health maintenance organization.
2. For the purposes of subsection 1, unless the context requires that a provision apply only to insurers, any reference in those sections to insurer must be replaced by health maintenance organization.
Sec. 81. NRS 696B.415 is hereby amended to read as follows:
696B.415 1. Upon the issuance of an order of liquidation with a finding of insolvency against a domestic insurer, the Commissioner shall apply to the district court for authority to disburse money to the Nevada Insurance Guaranty Association or the Nevada Life and Health Insurance Guaranty Association out of the marshaled assets of the insurer, as money becomes available, in amounts equal to disbursements made or to be made by the Association for claims-handling expense and covered-claims obligations upon the presentation of evidence that disbursements have been made by the Association. The Commissioner shall apply to the district court for authority to make similar disbursements to insurance guaranty associations in other jurisdictions if one of the Nevada Associations is entitled to like payment pursuant to the laws relating to insolvent insurers in the jurisdiction in which the organization is domiciled.
2. The Commissioner, in determining the amounts available for disbursement to the Nevada Insurance Guaranty Association, the Nevada Life and Health Insurance Guaranty Association [,] and similar organizations in other jurisdictions, shall reserve sufficient assets for the payment of the expenses of administration.
3. The Commissioner shall establish procedures for the ratable allocation of disbursements to the Nevada Insurance Guaranty Association, the Nevada Life and Health Insurance Guaranty Association [,] and similar organizations in other jurisdictions, and shall secure from each organization to which money is paid as a condition to advances in reimbursement of covered-claims obligations an agreement to return to the Commissioner, on demand, amounts previously advanced which are required to pay claims of secured creditors and claims falling within the priorities established in paragraph (a) or (b) of subsection 1 of NRS 696B.420.
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covered-claims obligations an agreement to return to the Commissioner, on demand, amounts previously advanced which are required to pay claims of secured creditors and claims falling within the priorities established in paragraph (a) or (b) of subsection 1 of NRS 696B.420.
4. The Commissioner, as receiver for an insolvent insurer, may file a claim on behalf of all insureds for any unearned premiums. The Nevada Insurance Guaranty Association, the Nevada Life and Health Insurance Guaranty Association and similar organizations in other jurisdictions shall accept the claim in lieu of requiring each insured to file a claim for the unearned premium.
Sec. 82. NRS 696B.420 is hereby amended to read as follows:
696B.420 1. The order of distribution of claims from the estate of the insurer on liquidation of the insurer must be as set forth in this section. Each claim in each class must be paid in full or adequate money retained for the payment before the members of the next class receive any payment. No subclasses may be established within any class. Except as otherwise provided in subsection 2, the order of distribution and of priority must be as follows:
(a) Administration costs and expenses, including, but not limited to, the following:
(1) The actual and necessary costs of preserving or recovering the assets of the insurer;
(2) Compensation for any services rendered in the liquidation;
(3) Any necessary filing fees;
(4) The fees and mileage payable to witnesses; and
(5) Reasonable attorneys fees.
(b) [Loss claims, including any] All claims under policies , [for losses incurred, including third-party claims,] any claims against [the insurer] an insured for liability for bodily injury or for injury to or destruction of tangible property which are [not] covered claims under policies, including any such claims of the Federal Government or any state or local government, and any claims of the Nevada Insurance Guaranty Association, the Nevada Life and Health Insurance Guaranty Association [,] and other similar statutory organizations in other jurisdictions. Any claims under life insurance and annuity policies, whether for death proceeds, annuity proceeds or investment values, must be treated as loss claims. That portion of any loss for which indemnification is provided by other benefits or advantages recovered or recoverable by the claimant may not be included in this class, other than benefits or advantages recovered or recoverable in discharge of familial obligations of support or because of succession at death or as proceeds of life insurance, or as gratuities. No payment made by an employer to his employee may be treated as a gratuity.
(c) Unearned premiums and small loss claims, including claims under nonassessable policies for unearned premiums or other premium refunds.
(d) [Claims] Except as otherwise provided in paragraph (b), claims of the Federal Government.
(e) [Claims] Except as otherwise provided in paragraph (b), claims of any state or local government, including, but not limited to, a claim of a state or local government for a penalty or forfeiture.
(f) Wage debts due employees for services performed, not to exceed [$1,000 to] an amount equal to 2 months of monetary compensation for each employee [, that have been earned] for services performed within 6 months before the filing of the petition for liquidation or, if rehabilitation preceded liquidation, within 1 year before the filing of the petition for [liquidation.]
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preceded liquidation, within 1 year before the filing of the petition for [liquidation.] rehabilitation. Officers of the insurer are not entitled to the benefit of this priority. The priority set forth in this paragraph must be in lieu of any other similar priority authorized by law as to wages or compensation of employees.
(g) Residual classification, including any other claims not falling within other classes pursuant to the provisions of this section. Claims for a penalty or forfeiture must be allowed in this class only to the extent of the pecuniary loss sustained from the act, transaction or proceeding out of which the penalty or forfeiture arose, with reasonable and actual costs occasioned thereby. The remainder of the claims must be postponed to the class of claims specified in paragraph (j).
(h) Judgment claims based solely on judgments. If a claimant files a claim and bases the claim on the judgment and on the underlying facts, the claim must be considered by the liquidator, who shall give the judgment such weight as he deems appropriate. The claim as allowed must receive the priority it would receive in the absence of the judgment. If the judgment is larger than the allowance on the underlying claim, the remaining portion of the judgment must be treated as if it were a claim based solely on a judgment.
(i) Interest on claims already paid, which must be calculated at the legal rate compounded annually on any claims in the classes specified in paragraphs (a) to (h), inclusive, from the date of the petition for liquidation or the date on which the claim becomes due, whichever is later, until the date on which the dividend is declared. The liquidator, with the approval of the court, may:
(1) Make reasonable classifications of claims for purposes of computing interest;
(2) Make approximate computations; and
(3) Ignore certain classifications and periods as de minimis.
(j) Miscellaneous subordinated claims, with interest as provided in paragraph (i):
(1) Claims subordinated by NRS 696B.430;
(2) Claims filed late;
(3) Portions of claims subordinated pursuant to the provisions of paragraph (g);
(4) Claims or portions of claims the payment of which is provided by other benefits or advantages recovered or recoverable by the claimant; and
(5) Claims not otherwise provided for in this section.
(k) Preferred ownership claims, including surplus or contribution notes, or similar obligations, and premium refunds on assessable policies. Interest at the legal rate must be added to each claim, as provided in paragraphs (i) and (j).
(l) Proprietary claims of shareholders or other owners.
2. If there are no existing or potential claims of the government against the estate, claims for wages have priority over any claims set forth in paragraphs (c) to (k), inclusive, of subsection 1. The provisions of this subsection must not be construed to require the accumulation of interest for claims as described in paragraph (i) of subsection 1.
Sec. 82.5. NRS 697.270 is hereby amended to read as follows:
697.270 A bail agent shall not [become a surety] act as an attorney-in-fact for an insurer on an undertaking unless he has registered in the office of the sheriff and with the clerk of the district court in which the agent resides, and he may register in the same manner in any other county.
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the sheriff and with the clerk of the district court in which the agent resides, and he may register in the same manner in any other county. Any bail agent shall file a certified copy of his appointment by power of attorney from each insurer which he represents as agent with each of such officers. The bail agent shall register and file a certified copy of renewed power of attorney annually on July 1. The clerk of the district court and the sheriff shall not permit the registration of a bail agent unless the agent is licensed by the Commissioner.
Sec. 83. NRS 697.290 is hereby amended to read as follows:
697.290 Every bail agent must maintain in his office such records of bail bonds, and such additional information as the Commissioner may reasonably require, executed or countersigned by him to enable the public to obtain all necessary information concerning the bail bonds for at least [1 year] 3 years after the liability of the surety has been terminated. The records must be open to examination by the Commissioner or his representatives at all times, and the Commissioner at any time may require the licensee to furnish to him, in such manner or form as he requires, any information kept or required to be kept in the records.
Sec. 83.5. NRS 697.300 is hereby amended to read as follows:
697.300 1. A bail agent shall not, in any bail transaction or in connection therewith, directly or indirectly, charge or collect money or other valuable consideration from any person except for the following purposes:
(a) To pay the premium at the rates established by the insurer, in accordance with chapter 686B of NRS, or to pay the charges for the bail bond filed in connection with the transaction at the rates filed in accordance with the provisions of this Code. The rates must be [not less than 10 percent or more than] 15 percent of the amount of the bond or $50, whichever is greater.
(b) To provide collateral.
(c) To reimburse himself for actual expenses incurred in connection with the transaction. Such expenses are limited to:
(1) Guard fees.
(2) Notary public fees, recording fees, expenses incurred for necessary long distance telephone calls and charges for telegrams.
(3) Travel expenses incurred more than 25 miles from the agents principal place of business. Such expenses:
(I) May be billed at the rate provided for state officers and employees generally; and
(II) May not be charged in areas where bail agents advertise a local telephone number.
(4) Expenses incurred to verify underwriting information.
(5) Any other actual expenditure necessary to the transaction which is not usually and customarily incurred in connection with bail transactions.
(d) To reimburse himself, or have a right of action against the principal or any indemnitor, for actual expenses incurred in good faith, by reason of breach by the defendant of any of the terms of the written agreement under which and pursuant to which the undertaking of bail or bail bond was written. If there is no written agreement, or an incomplete writing, the surety may, at law, enforce its equitable rights against the principal and his indemnitors, in exoneration. Such reimbursement or right of action must not exceed the principal sum of the bond or undertaking, plus any reasonable expenses that may be verified by receipt in a total amount of not more than the principal sum of the bond or undertaking, incurred in good faith by the surety, its agents, licensees and employees by reason of the principals breach.
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the principal sum of the bond or undertaking, incurred in good faith by the surety, its agents, licensees and employees by reason of the principals breach.
2. This section does not prevent the full and unlimited right of a bail agent to execute undertaking of bail on behalf of a nonresident agent of the surety he represents. The licensed resident bail agent is entitled to a minimum countersignature fee of $5, with a maximum countersignature fee of $100, plus expenses incurred in accordance with paragraphs (c) and (d) of subsection 1. Such countersignature fees may be charged in addition to the premium of the undertaking.
Sec. 84. NRS 697.320 is hereby amended to read as follows:
697.320 1. A bail agent may accept collateral security in connection with a bail transaction if the collateral security is reasonable in relation to the face amount of the bond. The bail agent shall not transfer the collateral to any person other than a bail agent licensed pursuant to this chapter or a surety insurer holding a valid certificate of authority issued by the Commissioner. The collateral must not be transported or otherwise removed from this state. Any person who receives the collateral:
(a) Shall be deemed to hold the collateral in a fiduciary capacity to the same extent as a bail agent; and
(b) Shall retain, return and otherwise possess the collateral in accordance with the provisions of this chapter.
2. The collateral security must be received by the bail agent in his fiduciary capacity, and before any forfeiture of bail must be kept separate and apart from any other funds or assets of the licensee. Any collateral received must be returned to the person who deposited it with the bail agent or any assignee other than the bail agent as soon as the obligation, the satisfaction of which was secured by the collateral, is discharged and all fees owed to the bail agent have been paid. The bail agent or any surety insurer having custody of the collateral shall, immediately after the bail agent or surety insurer receives a request for return of the collateral from the person who deposited the collateral, determine whether the bail agent or surety insurer has received notice that the obligation is discharged. If the collateral is deposited to secure the obligation of a bond, it must be returned [within 30 days] immediately after receipt of the request for return of the collateral and notice of the entry of any order by an authorized official by virtue of which liability under the bond is terminated or upon payment of all fees owed to the bail agent, whichever is later. A certified copy of the minute order from the court wherein the bail or undertaking was ordered exonerated shall be deemed prima facie evidence of exoneration or termination of liability.
3. If a bail agent receives as collateral in a bail transaction, whether on his or another persons behalf, any document conveying title to real property, the bail agent shall not accept the document unless it indicates on its face that it is executed as part of a security transaction. If the document is recorded, the bail agent or any surety insurer having possession of the document shall, immediately after the bail agent or surety insurer receives a request for return of the collateral from the person who executed the document:
(a) Determine whether the bail agent or surety insurer has received notice that the obligation for which the document was accepted is discharged; and
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(b) If the obligation has been discharged, reconvey the real property by delivering a deed or other document of conveyance to the person or to his heirs, legal representative or successor in interest. The deed or other document of conveyance must be prepared in such a manner that it may be recorded.
4. If the amount of any collateral received in a bail transaction exceeds the amount of any bail forfeited by the defendant for whom the collateral was accepted, the bail agent or any surety insurer having custody of the collateral shall, immediately after the bail is forfeited, return to the person who deposited the collateral the amount by which the collateral exceeds the amount of the bail forfeited. Any collateral returned to a person pursuant to this subsection is subject to a claim for fees, if any, owed to the bail agent returning the collateral.
5. If a bail agent accepts collateral, he shall give a written receipt for the collateral. The receipt must include in detail a full account of the collateral received.
Sec. 85. NRS 697.360 is hereby amended to read as follows:
697.360 Licensed bail agents, bail solicitors and bail enforcement agents, and general agents are also subject to the following provisions of this Code, to the extent reasonably applicable:
1. Chapter 679A of NRS.
2. Chapter 679B of NRS.
3. NRS 683A.261.
4. NRS 683A.301.
[4.] 5. NRS 683A.311.
[5.] 6. NRS 683A.341.
[6.] 7. NRS 683A.361.
[7.] 8. NRS 683A.400.
[8.] 9. NRS 683A.451.
[9.] 10. NRS 683A.461.
[10.] 11. NRS 683A.480.
[11.] 12. NRS 683A.500.
13. NRS 683A.520.
[12.] 14. NRS 686A.010 to 686A.310, inclusive.
Sec. 85.5. NRS 178.512 is hereby amended to read as follows:
178.512 The court shall not set aside a forfeiture unless:
1. The surety submits an application to set it aside on the ground that the defendant:
(a) Has appeared before the court since the date of the forfeiture and has presented [a] :
(1) A satisfactory excuse for his absence; or
(2) Satisfactory evidence that the surety did not in any way cause or aid the absence of the defendant;
(b) Was dead before the date of the forfeiture but the surety did not know and could not reasonably have known of his death before that date;
(c) Was unable to appear before the court before the date of the forfeiture because of his illness or his insanity, but the surety did not know and could not reasonably have known of his illness or insanity before that date;
(d) Was unable to appear before the court before the date of the forfeiture because he was being detained by civil or military authorities, but the surety did not know and could not reasonably have known of his detention before that date; or
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the surety did not know and could not reasonably have known of his detention before that date; or
(e) Was unable to appear before the court before the date of the forfeiture because he was deported, but the surety did not know and could not reasonably have known of his deportation before that date,
and the court, upon hearing the matter, determines that one or more of the grounds described in this subsection exist and that the surety did not in any way cause or aid the absence of the defendant; and
2. The court determines that justice does not require the enforcement of the forfeiture.
Sec. 86. NRS 616B.318 is hereby amended to read as follows:
616B.318 1. The Commissioner shall impose an administrative fine, not to exceed $1,000 for each violation, and:
(a) Shall withdraw the certification of a self-insured employer if:
(1) The deposit required pursuant to NRS 616B.300 is not sufficient and the employer fails to increase the deposit after he has been ordered to do so by the Commissioner;
(2) The self-insured employer fails to provide evidence of excess insurance pursuant to NRS 616B.300 within 45 days after he has been so ordered; or
(3) [The] Except as otherwise provided in subsection 4, the employer becomes insolvent, institutes any voluntary proceeding under the Bankruptcy Act or is named in any involuntary proceeding thereunder.
(b) May withdraw the certification of a self-insured employer if:
(1) The employer intentionally fails to comply with regulations of the Commissioner regarding reports or other requirements necessary to carry out the purposes of chapters 616A to 616D, inclusive, and chapter 617 of NRS;
(2) The employer violates the provisions of subsection 2 of NRS 616B.500 or any regulation adopted by the Commissioner or the Administrator concerning the administration of the employers plan of self-insurance; or
(3) The employer makes a general or special assignment for the benefit of creditors or fails to pay compensation after an order for payment of any claim becomes final.
2. Any employer whose certification as a self-insured employer is withdrawn must, on the effective date of the withdrawal, qualify as an employer pursuant to NRS 616B.650.
3. The Commissioner may, upon the written request of an employer whose certification as a self-insured employer is withdrawn pursuant to subparagraph (3) of paragraph (a) of subsection 1, reinstate the employers certificate for a reasonable period to allow the employer sufficient time to provide industrial insurance for his employees.
4. The Commissioner may authorize an employer to retain his certification as a self-insured employer during the pendency of a proceeding specified in subparagraph (3) of paragraph (a) of subsection 1 if the employer establishes to the satisfaction of the Commissioner that the employer is able to pay all claims for compensation during the pendency of the proceeding.
Sec. 87. NRS 616B.336 is hereby amended to read as follows:
616B.336 1. Each self-insured employer shall furnish audited financial statements, certified by an auditor licensed to do business in this state, to the Commissioner [of Insurance annually.]
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state, to the Commissioner [of Insurance annually.] annually within 120 days after the expiration of the self-insured employers fiscal year.
2. The Commissioner [of Insurance] may examine the records and interview the employees of each self-insured employer as often as he deems advisable to determine the adequacy of the deposit which the employer has made with the Commissioner, the sufficiency of reserves and the reporting, handling and processing of injuries or claims. The Commissioner shall examine the records for that purpose at least once every 3 years. The self-insured employer shall reimburse the Commissioner for the cost of the examination.
Sec. 88. NRS 616B.359 is hereby amended to read as follows:
616B.359 1. The Commissioner shall grant or deny an application for certification as an association of self-insured public or private employers within 60 days after receiving the application. If the application is materially incomplete or does not comply with the applicable provisions of the law, the Commissioner shall notify the applicant of the additional information or changes required. Under such circumstances, if the Commissioner is unable to act upon the application within this 60-day period, he may extend the period for granting or denying the application, but for not longer than an additional 90 days.
2. Upon determining that an association is qualified as an association of self-insured public or private employers, the Commissioner shall issue a certificate to that effect to the association and the Administrator. No certificate may be issued to an association that, within the 2 years immediately preceding its application, has had its certification as an association of self-insured public or private employers involuntarily withdrawn by the Commissioner.
3. A certificate issued pursuant to this section must include, without limitation:
(a) The name of the association;
(b) The name of each employer who the Commissioner determines is a member of the association at the time of the issuance of the certificate;
(c) An identification number assigned to the association by the Commissioner; and
(d) The date on which the certificate was issued.
4. A certificate issued pursuant to this section remains in effect until withdrawn by the Commissioner or cancelled at the request of the association. Coverage for an association granted a certificate becomes effective on the date of certification or the date specified in the certificate.
5. The Commissioner shall not grant a request to cancel a certificate unless the association has insured or reinsured all incurred obligations with an insurer authorized to do business in this state pursuant to an agreement filed with and approved by the Commissioner. The agreement must include coverage for actual claims and claims [filed with the association] incurred but not reported, and the expenses associated with those claims.
Sec. 89. NRS 616B.386 is hereby amended to read as follows:
616B.386 1. If an employer wishes to become a member of an association of self-insured public or private employers, the employer must:
(a) Submit an application for membership to the board of trustees or third-party administrator of the association; and
(b) Enter into an indemnity agreement as required by NRS 616B.353.
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2. The membership of the applicant becomes effective when each member of the association approves the application or on a later date specified by the association. The application for membership and the action taken on the application must be maintained as permanent records of the board of trustees.
3. Each member who is a member of an association during the 12 months immediately following the formation of the association must:
(a) Have a tangible net worth of at least $500,000; or
(b) Have had a reported payroll for the previous 12 months which would have resulted in a manual premium of at least $15,000, calculated in accordance with a manual prepared pursuant to subsection 4 of NRS 686B.1765.
4. An employer who seeks to become a member of the association after the 12 months immediately following the formation of the association must meet the requirement set forth in paragraph (a) or (b) of subsection 3 unless the Commissioner adjusts the requirement for membership in the association after conducting an annual review of the actuarial solvency of the association pursuant to subsection 1 of NRS 616B.353.
5. An association of self-insured private employers may apply to the Commissioner for authority to determine the amount of tangible net worth and manual premium that an employer must have to become a member of the association. The Commissioner shall approve the application if the association:
(a) Has been certified to act as an association for at least the 3 consecutive years immediately preceding the date on which the association filed the application with the Commissioner;
(b) Has a combined tangible net worth of all members in the association of at least $5,000,000;
(c) Has at least 15 members; and
(d) Has not been required to meet informally with the Commissioner pursuant to subsection 1 of NRS 616B.431 during the 18-month period immediately preceding the date on which the association filed the application with the Commissioner or, if the association has been required to attend such a meeting during that period, has not had its certificate withdrawn before the date on which the association filed the application.
6. An association of self-insured private employers may apply to the Commissioner for authority to determine the documentation demonstrating solvency that an employer must provide to become a member of the association. The Commissioner shall approve the application if the association:
(a) Has been certified to act as an association for at least the 3 consecutive years immediately preceding the date on which the association filed the application with the Commissioner;
(b) Has a combined tangible net worth of all members in the association of at least $5,000,000; and
(c) Has at least 15 members.
7. The Commissioner may withdraw his approval of an application submitted pursuant to subsection 5 or 6 if he determines the association has ceased to comply with any of the requirements set forth in subsection 5 or 6, as applicable.
8. A member of an association may terminate his membership at any time. To terminate his membership, a member must submit to the associations administrator a notice of intent to withdraw from the association at least 120 days before the effective date of withdrawal.
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associations administrator a notice of intent to withdraw from the association at least 120 days before the effective date of withdrawal. The [associations administrator shall, within 10 days after receipt of the notice, notify the Commissioner of the employers] notice of intent to withdraw [from the association.] must include a statement indicating that the member has:
(a) Been certified as a self-insured employer pursuant to NRS 616B.312;
(b) Become a member of another association of self-insured public or private employers; or
(c) Become insured by a private carrier.
9. The members of an association may cancel the membership of any member of the association in accordance with the bylaws of the association.
10. The association shall:
(a) Within 30 days after the addition of an employer to the membership of the association, notify the Commissioner of the addition and:
(1) If the association has not received authority from the Commissioner pursuant to subsection 5 or 6, as applicable, provide to the Commissioner all information and assurances for the new member that were required from each of the original members of the association upon its organization; or
(2) If the association has received authority from the Commissioner pursuant to subsection 5 or 6, as applicable, provide to the Commissioner evidence that is satisfactory to the Commissioner that the new member is a member or associate member of the bona fide trade association as required pursuant to paragraph (a) of subsection 2 of NRS 616B.350, a copy of the indemnity agreement that jointly and severally binds the new member, the other members of the association and the association that is required to be executed pursuant to paragraph (a) of subsection 1 of NRS 616B.353 and any other information the Commissioner may reasonably require to determine whether the amount of security deposited with the Commissioner pursuant to paragraph (d) or (e) of subsection 1 of NRS 616B.353 is sufficient, but such information must not exceed the information required to be provided to the Commissioner pursuant to subparagraph (1);
(b) Notify the Commissioner and the Administrator of the termination or cancellation of the membership of any member of the association within 10 days after the termination or cancellation; and
(c) At the expense of the member whose membership is terminated or cancelled, maintain coverage for that member for 30 days after a notice is given pursuant to paragraph (b), unless the association first receives notice from the Administrator that the member has:
(1) Been certified as a self-insured employer pursuant to NRS 616B.312;
(2) Become a member of another association of self-insured public or private employers; or
(3) Become insured by a private carrier.
11. If a member of an association changes his name or form of organization, the member remains liable for any obligations incurred or any responsibilities imposed pursuant to chapters 616A to 617, inclusive, of NRS under his former name or form of organization.
12. An association is liable for the payment of any compensation required to be paid by a member of the association pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS during his period of membership.
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to 616D, inclusive, or chapter 617 of NRS during his period of membership. The insolvency or bankruptcy of a member does not relieve the association of liability for the payment of the compensation.
Sec. 90. NRS 616B.404 is hereby amended to read as follows:
616B.404 1. An association of self-insured public or private employers shall file with the Commissioner an audited statement of financial condition prepared by an independent certified public accountant. The statement must be filed on or before [April] May 1 of each year or within [90] 120 days after the conclusion of the associations fiscal year [,] and must contain information for the previous fiscal year.
2. The statement required by subsection 1 must be in a form prescribed by the Commissioner and include, without limitation:
(a) A statement of the reserves for:
(1) Actual claims and expenses;
(2) Claims [filed with the association] incurred but not reported, and the expenses associated with those claims;
(3) Assessments that are due, but not paid; and
(4) Unpaid debts, which must be shown as liabilities.
(b) An actuarial opinion regarding reserves that is prepared by a member of the American Academy of Actuaries or another specialist in loss reserves identified in the annual statement adopted by the National Association of Insurance Commissioners. The actuarial opinion must include a statement of:
(1) Actual claims and the expenses associated with those claims; and
(2) Claims [filed with the association] incurred but not reported, and the expenses associated with those claims.
3. The Commissioner may adopt a uniform financial reporting system for associations of self-insured public and private employers to ensure the accurate and complete reporting of financial information.
4. The Commissioner may require the filing of such other reports as he deems necessary to carry out the provisions of this section, including, without limitation:
(a) Audits of the payrolls of the members of an association of self-insured public or private employers;
(b) Reports of losses; and
(c) Quarterly financial statements.
Sec. 91. NRS 616B.413 is hereby amended to read as follows:
616B.413 1. If the assets of an association of self-insured public or private employers exceed the amount necessary for the association to:
(a) Pay its obligations and administrative expenses;
(b) Carry reasonable reserves; and
(c) Provide for contingencies,
the board of trustees of the association may, after obtaining the approval of the Commissioner, declare and distribute dividends to the members of the association.
2. Any dividend declared pursuant to subsection 1 must be distributed not less than 12 months after the end of the [fiscal] fund year.
3. A dividend may be paid only to those members who are members of the association for the entire [fiscal] fund year. The payment of a dividend must not be conditioned upon the member continuing his membership in the association after the [fiscal] fund year.
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4. An association shall give to each prospective member of the association a written description of its plan for distributing dividends when he applies for membership in the association.
Sec. 92. (Deleted by amendment.)
Sec. 93. NRS 616B.419 is hereby amended to read as follows:
616B.419 Each association of self-insured public or private employers shall maintain:
1. Actuarially appropriate loss reserves. Such reserves must include reserves for:
(a) Actual claims and the expenses associated with those claims; and
(b) Claims [filed with the association] incurred but not reported, and the expenses associated with those claims.
2. Reserves for uncollected debts based on the experience of the association or other associations.
Sec. 94. NRS 616B.422 is hereby amended to read as follows:
616B.422 1. If the assets of an association of self-insured public or private employers are insufficient to make certain the prompt payment of all compensation under chapters 616A to 617, inclusive, of NRS and to maintain the reserves required by NRS 616B.419, the association shall immediately notify the Commissioner of the deficiency and:
(a) Transfer any surplus acquired from a previous [fiscal] fund year to the current [fiscal] fund year to make up the deficiency;
(b) Transfer money from its administrative account to its claims account;
(c) Collect an additional assessment from its members in an amount required to make up the deficiency; or
(d) Take any other action to make up the deficiency which is approved by the Commissioner.
2. If the association wishes to transfer any surplus from one [fiscal] fund year to another, the association must first notify the Commissioner of the transfer.
3. The Commissioner shall order the association to make up any deficiency pursuant to subsection 1 if the association fails to do so within 30 days after notifying the Commissioner of the deficiency. The association shall be deemed insolvent if it fails to:
(a) Collect an additional assessment from its members within 30 days after being ordered to do so by the Commissioner; or
(b) Make up the deficiency in any other manner within 60 days after being ordered to do so by the Commissioner.
Sec. 95. The amendatory provisions of sections 56.7 and 56.9 of this act:
1. Do not apply to any contract of annuity that is delivered or issued for delivery in this state before October 1, 2003.
2. Do not apply to any contract of annuity that is delivered or issued for delivery in this state on or after October 1, 2003, and before October 1, 2005, unless the company elects to incorporate the substance of those amendatory provisions into the contract.
3. Apply to any contract of annuity that is delivered or issued for delivery in this state on or after October 1, 2005.
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Sec. 96. 1. The Governor or his designee shall conduct a study of the feasibility and potential benefits of consolidating the powers and duties of the Division of Insurance of the Department of Business and Industry and the Division of Industrial Relations of the Department of Business and Industry into a single division within the Department of Business and Industry.
2. The study must include, without limitation:
(a) An assessment of whether such a consolidation would increase administrative efficiency, improve regulation and result in cost savings.
(b) An assessment of whether such a consolidation would benefit the businesses and industries regulated by the Division of Insurance and the Division of Industrial Relations.
3. Not later than October 1, 2004, the Governor or his designee shall prepare a report that contains the findings of the study and submit the report and any recommendations for legislation to the Director of the Legislative Counsel Bureau for transmittal to:
(a) The Senators who served as members of the Senate Standing Committee on Commerce and Labor during the 72nd Session of the Nevada Legislature;
(b) The Assemblymen who served as members of the Assembly Standing Committee on Commerce and Labor during the 72nd Session of the Nevada Legislature; and
(c) Any other Senators or Assemblymen upon request.
Sec. 97. 1. This section and section 96 of this act become effective upon passage and approval.
2. Sections 3.3 and 3.7 of this act become effective:
(a) Upon passage and approval of this act, if Assembly Bill No. 79 of this session is enacted into law before passage and approval of this act; or
(b) Upon passage and approval of Assembly Bill No. 79 of this session, if Assembly Bill No. 79 of this session is enacted into law after passage and approval of this act.
3. Sections 56.7 and 56.9 of this act become effective on July 1, 2003, for the purpose of adopting regulations and on October 1, 2003, for all other purposes.
4. Sections 1, 2, 3, 4 to 56.5, inclusive, and 57 to 95, inclusive, of this act become effective on October 1, 2003.
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