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κ2011 Statutes of Nevada, Page 3259κ

 

CHAPTER 499, SB 24

Senate Bill No. 24–Committee on Judiciary

 

CHAPTER 499

 

[Approved: June 17, 2011]

 

AN ACT relating to courts; revising provisions concerning writs of execution in justice courts; and providing other matters properly relating thereto.

 

Legislative Counsel’s Digest:

      Existing law provides that a writ of execution in a justice court may be issued by the justice of the peace who entered the judgment or any successor in office. (NRS 70.010) A justice of the peace may also renew such a writ of execution. (NRS 70.030) Additionally, existing law requires that a writ of execution in a justice court must contain certain information. (NRS 70.020)

      Sections 1 and 2 of this bill authorize a justice of the peace or the clerk of the justice court, under the direction and supervision of a justice of the peace, to issue writs of execution in the justice court. Section 2 also revises the required information that such a writ of execution must contain. Section 3 of this bill provides that in addition to issuing writs of execution, a justice of the peace or the clerk of the justice court, under the direction and supervision of a justice of the peace, may also renew writs of execution.

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. NRS 70.010 is hereby amended to read as follows:

      70.010  1.  Execution for the enforcement of a judgment of a justice court may be issued by [the] a justice [who entered the judgment, or any successor in office,] or the clerk of the court, under the direction and supervision of a justice, on the application of the party entitled thereto, at any time within 6 years from the entry of judgment.

      2.  The court, or any justice thereof, may stay the execution of any judgment, including any judgment in a case of forcible or unlawful detainer, for a period not exceeding 10 days.

      Sec. 2. NRS 70.020 is hereby amended to read as follows:

      70.020  The execution must:

      1.  Be directed to a sheriff of any county in the State or to a constable of the county in which the justice court is located.

      2.  Be [subscribed by the justice.] issued in the name of the State of Nevada, sealed with the seal of the court and subscribed by a justice or the clerk of the justice court, under the direction and supervision of a justice.

      3.  [Bear date the day of its delivery to the officer.

      4.]  Intelligibly refer to the judgment, by stating the [names] :

      (a) Justice court in which the judgment was entered;

      (b) Date when the judgment was entered;

      (c) Names of the parties [, and the name] ;

      (d) Name of the justice [before whom, and of the county] who entered the judgment; and

 


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      (e) County and the township or city where [, and the time when it was rendered.

      5.] the judgment was entered.

      4.  State the [amount of] judgment, and if it [be] is for money, [and, if less than the whole is due,] the [true] amount thereof, and the amount actually due thereon.

      [6.]5.  Contain, in like cases, similar directions to the sheriff or constable, as are required by the provisions of chapter 21 of NRS, in an execution to the sheriff.

      Sec. 3. NRS 70.030 is hereby amended to read as follows:

      70.030  An execution may, at the request of the judgment creditor, be renewed before the expiration of the time fixed for its return, by the word “renewed” written thereon, with the date thereof, and subscribed by [the justice.] a justice or the clerk of the justice court, under the direction and supervision of a justice. Such renewal has the effect of an original issue [,] and may be repeated as often as necessary. If an execution is returned unsatisfied, another may be afterwards issued.

      Sec. 4. NRS 70.050 is hereby amended to read as follows:

      70.050  [The] Except as otherwise provided in this chapter, the provisions of chapter 21 of NRS are applicable to justice courts, the word “justice” being inserted in lieu of the [words] word “judge” [and “clerk” whenever they occur,] wherever the word appears and the word “constable” being [substituted to that end for] inserted in lieu of the word [“sheriff.”] “sheriff” wherever the word appears.

      Sec. 5.  This act becomes effective upon passage and approval.

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κ2011 Statutes of Nevada, Page 3261κ

 

CHAPTER 500, AB 577

Assembly Bill No. 577–Committee on Legislative Operations and Elections

 

CHAPTER 500

 

[Approved: June 17, 2011]

 

AN ACT relating to the Legislature; establishing deadlines by which sufficient detail must be submitted concerning bill draft requests submitted by Legislators and legislative committees; providing that bill draft requests submitted by Legislators who will not be returning to the Legislature count against limitations on requests for Legislators or standing committees that become primary sponsors of the requests; restricting bill draft requests of nonreturning Legislators; and providing other matters properly relating thereto.

 

Legislative Counsel’s Digest:

      Existing law establishes various deadlines for Legislators and legislative committees to submit bill draft requests. (NRS 218D.150, 218D.155, 218D.160, 218E.205) Sections 4-7 of this bill establish deadlines by which Legislators must submit sufficient detail to allow complete drafting of the requests. Section 2 of this bill requires the Legislative Counsel to give priority to bill draft requests for which sufficient detail was submitted in a timely manner.

      Existing law provides that a Legislator or standing committee may become the primary sponsor of measures requested by a Legislator who will not be returning to the Legislature, but does not specify whether such measures count against limitations on bill draft requests. (NRS 218D.130) Section 3 of this bill provides that such measures count against limitations on requests for the Legislator or standing committee that becomes the primary sponsor of the measure.

      Section 4 of this bill restricts a Legislator in the final year of his or her term from submitting individual bill draft requests on or after the date on which he or she becomes a nonreturning Legislator.

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. NRS 218D.100 is hereby amended to read as follows:

      218D.100  1.  Except as otherwise provided by specific statute, joint rule or concurrent resolution of the Legislature, the Legislative Counsel shall honor:

      (a) The number of requests for the drafting of a bill or resolution for a regular session of the Legislature only as provided in NRS 218D.050 to 218D.215, inclusive.

      (b) A request for the drafting of a bill or resolution for any session of the Legislature which is submitted by a state agency, board or department, a local government, the judiciary or another authorized nonlegislative requester only if the request is in a subject related to the function of the requester.

      2.  The Legislative Counsel shall not:

      (a) [Assign] Except as otherwise provided in NRS 218D.150, 218D.155 and 218D.160, assign a number to a request for the drafting of a bill or resolution for any session of the Legislature to establish the priority of the request until sufficient detail has been received to allow complete drafting of the legislative measure.

 


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resolution for any session of the Legislature to establish the priority of the request until sufficient detail has been received to allow complete drafting of the legislative measure.

      (b) Honor a request to change the subject matter of a request for the drafting of a bill or resolution for any session of the Legislature after it has been submitted for drafting.

      (c) Honor a request for the drafting of a bill or resolution for any session of the Legislature which has been combined in violation of Section 17 of Article 4 of the Nevada Constitution.

      Sec. 2. NRS 218D.110 is hereby amended to read as follows:

      218D.110  1.  Upon request, within the limits established pursuant to NRS 218D.050 to 218D.215, inclusive, or by the Legislature by concurrent resolution, the Legislative Counsel shall assist any Legislator in the preparation of bills and resolutions, drafting them in proper form, and furnishing the Legislator the fullest information upon all matters within the scope of the Legislative Counsel’s duties.

      2.  [The] Except as otherwise provided in this section, the Legislative Counsel shall, insofar as is possible, act upon all Legislators’ requests for legislative measures in the order in which they are received.

      3.  To assure the greatest possible equity in the handling of requests, drafting must proceed as follows:

      (a) If a Legislator so desires, the Legislator may designate a different priority for his or her bills and resolutions which the Legislative Counsel shall observe, insofar as is possible.

      (b) The drafting of requests for legislative measures from chairs or members of standing committees or special committees, on behalf of those committees, must not, except where urgency is recognized, take precedence over the priority established or designated for individual Legislators’ bills and resolutions.

      (c) The Legislative Counsel shall give priority to the drafting of bills and resolutions for which sufficient detail to allow complete drafting of the legislative measure was submitted within the period required by statute.

      Sec. 3. NRS 218D.130 is hereby amended to read as follows:

      218D.130  1.  On July 1 preceding each regular session of the Legislature, and each week thereafter until the adjournment of the Legislature sine die, the Legislative Counsel shall prepare a list of all requests received by the Legislative Counsel, for the preparation of measures to be submitted to the Legislature. The requests must be listed numerically by a unique serial number which must be assigned to the measures by the Legislative Counsel for the purposes of identification in the order that the Legislative Counsel received the requests. Except as otherwise provided in subsections 3 and 4, the list must only contain the name of each requester, the date and a brief summary of the request.

      2.  The Legislative Counsel Bureau shall make copies of the list available to the public for a reasonable sum fixed by the Director of the Legislative Counsel Bureau.

      3.  In preparing the list, the Legislative Counsel shall, if a standing or special committee of the Legislature requests a measure on behalf of a Legislator or organization, include the name of the standing or special committee and the name of the Legislator or organization on whose behalf the measure was originally requested.

 


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      4.  Upon the request of a Legislator who has requested the preparation of a measure, the Legislative Counsel shall add the name of one or more Legislators from either or both Houses of the Legislature as joint requesters. The Legislative Counsel shall not add the name of a joint requester to the list until the Legislative Counsel has received confirmation of the joint request from the primary requester of the measure and from the Legislator to be added as a joint requester. The Legislative Counsel shall remove the name of a joint requester upon receipt of a request to do so made by the primary requester or the joint requester. The names must appear on the list in the order in which the names were received by the Legislative Counsel beginning with the primary requester. The Legislative Counsel shall not act upon the direction of a joint requester to withdraw the requested measure or modify its substance until the Legislative Counsel has received confirmation of the withdrawal or modification from the primary requester.

      5.  If the primary requester of a measure will not be returning to the Legislature for the [legislative] session of the Legislature in which the measure is to be considered, the primary requester may authorize a Legislator who will be serving during that session to become the primary sponsor of the measure, either individually or as the chair on behalf of a standing committee. If the Legislator who will be serving during that session agrees to become or have the committee become the primary sponsor of the measure, that Legislator shall notify the Legislative Counsel of that fact. Upon receipt of such notification, the Legislative Counsel shall list the name of that Legislator or the name of the committee as the primary requester of the measure on the list.

      6.  For the purposes of all limitations on the number of legislative measures that may be requested by a Legislator [, a] :

      (a) A legislative measure with joint requesters must only be counted as a request of the primary requester.

      (b) A legislative measure for which a Legislator or standing committee becomes the primary sponsor pursuant to subsection 5 must be counted as a request of that Legislator or committee.

      Sec. 4. NRS 218D.150 is hereby amended to read as follows:

      218D.150  1.  [Each:] Except as otherwise provided in subsection 2, each:

      (a) Incumbent member of the Assembly may request the drafting of not more than 6 legislative measures submitted to the Legislative Counsel on or before September 1 preceding the commencement of a regular session of the Legislature and not more than 5 legislative measures submitted to the Legislative Counsel after September 1 but on or before December 15 preceding the commencement of a regular session of the Legislature.

      (b) Incumbent member of the Senate may request the drafting of not more than 12 legislative measures submitted to the Legislative Counsel on or before September 1 preceding the commencement of a regular session of the Legislature and not more than 10 legislative measures submitted to the Legislative Counsel after September 1 but on or before December 15 preceding the commencement of a regular session of the Legislature.

      (c) Newly elected member of the Assembly may request the drafting of not more than 5 legislative measures submitted to the Legislative Counsel on or before December 15 preceding the commencement of a regular session of the Legislature.

 


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      (d) Newly elected member of the Senate may request the drafting of not more than 10 legislative measures submitted to the Legislative Counsel on or before December 15 preceding the commencement of a regular session of the Legislature.

      2.  A Legislator may not request the drafting of a legislative measure pursuant to subsection 1 on or after the date on which the Legislator becomes a nonreturning Legislator. For the purposes of this subsection, “nonreturning Legislator” means a Legislator who, in the year that the Legislator’s term of office expires:

      (a) Has not filed a declaration or an acceptance of candidacy within the time allowed for filing for election as a member of the Senate or the Assembly;

      (b) Has failed to win nomination as a candidate for the Senate or the Assembly at the primary election; or

      (c) Has withdrawn as a candidate for the Senate or the Assembly.

      3.  If a request made pursuant to subsection 1 is submitted:

      (a) On or before September 1 preceding the commencement of a regular session of the Legislature, sufficient detail to allow complete drafting of the legislative measure must be submitted on or before December 1 preceding the commencement of the regular session of the Legislature.

      (b) After September 1 but on or before December 15 preceding the commencement of a regular session of the Legislature, sufficient detail to allow complete drafting of the legislative measure must be submitted on or before January 15 preceding the commencement of the regular session of the Legislature.

      4.  In addition to the number of requests authorized pursuant to subsection 1:

      (a) The chair of each standing committee of the immediately preceding regular [legislative session,] session of the Legislature, or a person designated in the place of the chair by the Speaker of the Assembly or the Majority Leader of the Senate, as the case may be, may request before the date of the general election preceding the commencement of [the next regular legislative] a regular session of the Legislature the drafting of not more than 1 legislative measure for introduction by the committee in a subject within the jurisdiction of the committee for every 15 legislative measures that were referred to the respective standing committee during the immediately preceding regular [legislative session.] session of the Legislature.

      (b) A person designated after a general election as a chair of a standing committee for the next regular [legislative session,] session of the Legislature, or a person designated in the place of a chair by the person designated as the Speaker of the Assembly or the Majority Leader of the Senate for the next regular [legislative session,] session of the Legislature, may request on or before December 15 preceding the commencement of the [next regular legislative] regular session of the Legislature the drafting of the remaining number of the legislative measures allowed for the respective standing committee that were not requested by the previous chair or designee.

      [3.]5. If a request made pursuant to subsection 4 is submitted:

      (a) Before the date of the general election preceding the commencement of a regular session of the Legislature, sufficient detail to allow complete drafting of the legislative measure must be submitted on or before December 10 preceding the commencement of the regular session of the Legislature.

 


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κ2011 Statutes of Nevada, Page 3265 (CHAPTER 500, AB 577)κ

 

allow complete drafting of the legislative measure must be submitted on or before December 10 preceding the commencement of the regular session of the Legislature.

      (b) After the date of the general election but on or before December 15 preceding the commencement of a regular session of the Legislature, sufficient detail to allow complete drafting of the legislative measure must be submitted on or before January 15 preceding the commencement of the regular session of the Legislature.

      6. Each request made pursuant to this section must be on a form prescribed by the Legislative Counsel.

      Sec. 5. NRS 218D.155 is hereby amended to read as follows:

      218D.155  1.  In addition to the number of requests authorized pursuant to NRS 218D.150:

      (a) The Speaker of the Assembly and the Majority Leader of the Senate may each request before the date of the general election preceding the commencement of [the next regular legislative session,] a regular session of the Legislature, without limitation, the drafting of not more than 15 legislative measures for that session.

      (b) The Minority Leader of the Assembly and the Minority Leader of the Senate may each request before the date of the general election preceding the commencement of [the next regular legislative session,] a regular session of the Legislature, without limitation, the drafting of not more than 10 legislative measures for that session.

      (c) A person designated after a general election as the Speaker of the Assembly, the Majority Leader of the Senate, the Minority Leader of the Assembly or the Minority Leader of the Senate for the next regular [legislative] session of the Legislature may request before the commencement of the [next regular legislative] regular session of the Legislature the drafting of the remaining number of the legislative measures allowed for the respective officer that were not requested by the previous officer.

      2.  If a request made pursuant to subsection 1 is submitted:

      (a) Before the date of the general election preceding the commencement of a regular session of the Legislature, sufficient detail to allow complete drafting of the legislative measure must be submitted on or before December 10 preceding the commencement of the regular session of the Legislature.

      (b) After the date of the general election but before the commencement of a regular session of the Legislature, sufficient detail to allow complete drafting of the legislative measure must be submitted on or before March 1 following the commencement of the regular session of the Legislature.

      3.  The Legislative Counsel, the Secretary of the Senate and the Chief Clerk of the Assembly may request before or during a regular [legislative session,] session of the Legislature, without limitation, the drafting of as many legislative measures as are necessary or convenient for the proper exercise of their duties.

      Sec. 6. NRS 218D.160 is hereby amended to read as follows:

      218D.160  1.  The Chair of the Legislative Commission may request the drafting of not more than 15 legislative measures before the commencement of a regular [legislative session,] session of the Legislature, with the approval of the Commission, which relate to the affairs of the Legislature or its employees, including measures requested by the legislative staff.

 


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with the approval of the Commission, which relate to the affairs of the Legislature or its employees, including measures requested by the legislative staff.

      2.  The Chair of the Interim Finance Committee may request the drafting of not more than 10 legislative measures before the commencement of a regular [legislative session,] session of the Legislature, with the approval of the Committee, which relate to matters within the scope of the Committee.

      3.  If a request made pursuant to subsection 1 or 2 is submitted before the commencement of a regular session of the Legislature, sufficient detail to allow complete drafting of the legislative measure must be submitted on or before March 1 following the commencement of the regular session of the Legislature.

      4.  Except as otherwise provided by a specific statute , joint rule or concurrent resolution of the Legislature:

      (a) Any [other] legislative committee created by a statute , other than an interim legislative committee, may request the drafting of not more than 10 legislative measures which relate to matters within the scope of the committee.

      (b) [An interim committee which conducts a study or investigation] Any committee or subcommittee established by an order of the Legislative Commission pursuant to NRS 218E.200 may request the drafting of not more than 5 legislative measures which relate to matters within the scope of the study or investigation, except that such a committee or subcommittee may request the drafting of additional legislative measures if the Legislative Commission approves each additional request by a majority vote.

      (c) Any other committee established by the Legislature which conducts an interim legislative study or investigation may request the drafting of not more than 5 legislative measures which relate to matters within the scope of the study [.] or investigation.

Κ [Except as otherwise provided in NRS 218E.205, measures] The requests authorized [to be requested] pursuant to this subsection must be submitted to the Legislative Counsel on or before September 1 preceding the commencement of a regular session of the Legislature unless the Legislative Commission authorizes submitting a request after that date.

      [4.]5. If a request made pursuant to subsection 4 is submitted on or before September 1 preceding the commencement of a regular session of the Legislature, sufficient detail to allow complete drafting of the legislative measure must be submitted on or before December 1 preceding the commencement of the regular session of the Legislature.

      6. Each request made pursuant to this section must be on a form prescribed by the Legislative Counsel.

      Sec. 7. NRS 218E.205 is hereby amended to read as follows:

      218E.205  1.  The Legislative Commission shall, between sessions of the Legislature, fix the work priority of all studies and investigations assigned to it by concurrent resolutions of the Legislature, or directed by an order of the Legislative Commission, within the limits of available time, money and staff. The Legislative Commission shall not make studies or investigations directed by resolutions of only one House of the Legislature or studies or investigations proposed but not approved during the preceding [legislative session.] session of the Legislature.

 


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κ2011 Statutes of Nevada, Page 3267 (CHAPTER 500, AB 577)κ

 

      2.  All requests for the drafting of [legislation] legislative measures to be recommended as the result of a study or investigation [, except a study or investigation directed by an order of the Legislative Commission,] must be made [before July 1 of the year preceding a legislative session.] in accordance with NRS 218D.160.

      3.  Except as otherwise provided by NRS 218E.210, between sessions of the Legislature no study or investigation may be initiated or continued by the Fiscal Analysts, the Legislative Auditor, the Legislative Counsel or the Research Director and their staffs except studies and investigations which have been specifically authorized by concurrent resolutions of the Legislature or by an order of the Legislative Commission.

      4.  No study or investigation may be carried over from one session of the Legislature to the next without additional authorization by a concurrent resolution of the Legislature, except audits in progress, whose carryover has been approved by the Legislative Commission.

      5.  Except as otherwise provided by specific statute, the staff of the Legislative Counsel Bureau shall not serve as primary administrative or professional staff for a committee unless the chair of the committee is required by statute or resolution to be a Legislator.

      6.  The Legislative Commission shall review and approve the budget and work program and any changes to the budget or work program for each study or investigation conducted by the Legislative Commission or a committee or subcommittee established by the Legislative Commission.

      7.  A committee or subcommittee established to conduct a study or investigation assigned to the Legislative Commission by concurrent resolution of the Legislature or directed by order of the Legislative Commission must, unless otherwise ordered by the Legislative Commission, meet not earlier than January 1 of the even-numbered year and not later than June 30 of that year.

      Sec. 8.  This act becomes effective on July 1, 2011.

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κ2011 Statutes of Nevada, Page 3268κ

 

CHAPTER 501, AB 81

Assembly Bill No. 81–Committee on Legislative Operations and Elections

 

CHAPTER 501

 

[Approved: June 17, 2011]

 

AN ACT relating to elections; clarifying how a minor political party may be organized; revising certain requirements for petitions of referendum; revising provisions relating to counting ballots, posting voting results and recounts; providing that the residency of spouses of certain military personnel is not changed whether absent or present in this State; making various changes concerning campaign contributions and expenditures; making various other changes to provisions governing elections; providing a penalty; and providing other matters properly relating thereto.

 

Legislative Counsel’s Digest:

      In order to qualify to place the names of candidates on the ballot, under existing law, a minor political party must have filed with the Secretary of State a certificate of existence and a list of candidates. Also, the minor political party must have: (1) at the last preceding general election, polled for any of its candidates for partisan office a number of votes equal to or more than 1 percent of the total number of votes cast for the offices of Representative in Congress; (2) been designated as the political party on the applications to register to vote of at least 1 percent of the total number of registered voters in this State; or (3) filed a petition with the Secretary of State which is signed by a number of registered voters equal to at least 1 percent of the total number of votes cast at the last preceding election for the offices of Representative of Congress. Alternatively, the minor political party may place the name of a candidate on the ballot if the minor political party has filed with the Secretary of State a certificate of existence and a petition on behalf of the candidate that it wants to place on the ballot containing a certain number of signatures. (NRS 293.1715) Sections 16, 16.2 and 16.4 of this bill remove the option of a minor political party to place a candidate on the ballot by filing a petition on behalf of the candidate. Sections 6 and 15-18 of this bill clarify that an organization is organized as a minor political party when it files a certificate of existence. A minor political party must still meet the other requirements in order to qualify to place candidates on the ballot.

      Sections 7-12 and 64 of this bill provide that the signature and verification requirements for initiative petitions also apply to petitions for referendum.

      Existing law provides the requirements for nominating candidates for office and placing candidates on the ballot for the general election. (NRS 293.165, 293.166, 293.368) Sections 13, 14 and 25 of this bill move the date after which no change may be made on the ballot for the general election from the first Tuesday after the primary election to the fourth Friday in June of the year in which the general election is held.

      Existing law provides that if a person willfully files a declaration or acceptance of candidacy that contains a false statement, the name of the person must not appear on the ballot for the election for which the person filed the declaration or acceptance of candidacy. (NRS 293.184, 293C.1865) Sections 19 and 32 of this bill further require that if the name of such a person appears on the ballot because the deadline for making changes to the ballot has passed, the Secretary of State, county clerk or city clerk must inform voters by posting signs at polling places that the person is disqualified from entering upon the duties of office.

 


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      Section 21 of this bill allows a person to cast a primary ballot for a major political party only if the person is a member of that major political party.

      Existing law sets forth procedures for depositing absent ballots in the ballot box, including verifying the absent voter’s signature that appears on the back of the return envelope or facsimile. (NRS 293.333, 293C.332) Because certain military personnel and overseas citizens may return special absent ballots via approved electronic transmission other than facsimile, sections 23 and 33 of this bill authorize the verification of the signature of these voters by comparing the signature from the special absent ballot or the oath of the voter that must be included in the special absent ballot with that on the original application to register to vote.

      Existing law sets forth the period for early voting by personal appearance at a primary or general election, which excludes Sundays and state and federal holidays. (NRS 293.3568, 293C.3568) Sections 24 and 34 of this bill provide that state holidays are not excluded from that period.

      Section 26 of this bill prohibits a county clerk from posting voting results for a statewide or multicounty race or ballot question until the Secretary of State notifies the county clerk that all polling places are closed and all votes have been cast.

      Section 27 of this bill revises the procedure for demands for an election recount in a county or city using a mechanical voting system and for recounts affecting more than one county.

      Existing law provides that a person does not gain or lose residence in the State by reason of his or her presence or absence while being employed in the military, naval or civil service of the United States or the State of Nevada or while engaged in the navigation of the waters of the United States or of the high seas. (NRS 293.487) Section 30 of this bill provides that the spouse of such a person also does not gain or lose residence in the State.

      Sections 36.5 and 39.5 of this bill differentiate between “campaign expenses” and “expenditures” for purposes of campaign reporting requirements.

      Section 37 of this bill requires certain persons, committees for political action, political parties and committees of political parties that expend more than $100 for the purpose of financing certain public communications to disclose on the communication the name of the person, committee or political party that paid for the communication.

      Section 41.5 of this bill prohibits a person from making a contribution to a committee for political action with the knowledge and intent that the committee for political action will contribute that money to a specific candidate which, in combination with the total contributions already made by the person for the same election, would violate the limitations on contributions in existing law.

      Section 49 of this bill provides that if a committee for political action fails to register with the Secretary of State before engaging in any activity within the State, the Secretary of State may impose on the committee a civil penalty for each time the committee engages in activity without being registered.

      Sections 40, 44, 45, 47, 48, 50-53, 55, 59-62 and 69 of this bill repeal the term “business entity” and remove the term from provisions governing registration and campaign contribution and expenditure reporting. These entities, however, are not exempt from the provisions because they are business organizations included within the term “person” as defined in existing law. (NRS 294A.009)

      Section 54 of this bill: (1) prohibits a candidate or public officer from using campaign contributions to pay civil or criminal penalties; and (2) authorizes a candidate or public officer to use campaign contributions to pay for legal expenses that the candidate or public officer incurred in relation to a campaign or while serving in public office. Any such candidate or public officer is not required to establish a legal defense fund in order to use campaign contributions to pay for legal expenses, but sections 29, 54, 56, 58, 59, 61 and 62 of this bill require the candidate or public officer to report the expenditure of such money on his or her campaign expenditure reports.

 


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κ2011 Statutes of Nevada, Page 3270 (CHAPTER 501, AB 81)κ

 

      Section 58 of this bill adds contributions made to another candidate, a nonprofit corporation, a committee for political action or a committee for the recall of a public officer to the categories of expenditures that must be reported on campaign expenditure reports.

      Section 65 of this bill requires the affidavit executed by a circulator of a petition for initiative or referendum to include the contact information of the circulator and a statement that the circulator is at least 18 years of age.

      Sections 65.5 and 66 of this bill: (1) clarify that a candidate for or person appointed to the office of Legislator is required to file a statement of financial disclosure with the Secretary of State; and (2) requires a public officer who leaves office to file a statement of financial disclosure on January 15th of the year immediately following the year in which the public officer leaves office unless the public officer leaves office before January 15 in the prior year.

      Sections 67 and 68 of this bill require that candidates for city office in the cities of Carlin and Wells file declarations of candidacy at the same time as candidates for statewide office.

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. Chapter 293 of NRS is hereby amended by adding thereto the provisions set forth as sections 2, 3 and 4 of this act.

      Sec. 2. “Central counting place” means the location designated by the county or city clerk for the compilation of election returns.

      Sec. 3. “Undervote” means a ballot that has been cast by a voter but shows no legally valid selection for any candidate for a particular office or for a ballot question.

      Sec. 4. (Deleted by amendment.)

      Sec. 5. NRS 293.010 is hereby amended to read as follows:

      293.010  As used in this title, unless the context otherwise requires, the words and terms defined in NRS 293.013 to 293.121, inclusive, and sections 2 and 3 of this act have the meanings ascribed to them in those sections.

      Sec. 6. NRS 293.066 is hereby amended to read as follows:

      293.066  “Minor political party” means any organization which [qualifies] is organized as such pursuant to NRS 293.171.

      Sec. 7. NRS 293.127561 is hereby amended to read as follows:

      293.127561  1.  The Legislature shall establish petition districts from which signatures for a petition for initiative or referendum that proposes a [statute, an amendment to a statute or an amendment to the Constitution of this State] constitutional amendment or statewide measure must be gathered. The petition districts must be established in a manner that is fair to all residents of the State, represent approximately equal populations and ensure that each signature is afforded the same weight.

      2.  Petition districts must be:

      (a) Based on the population databases compiled by the Bureau of the Census of the United States Department of Commerce as validated and incorporated into the geographic information system by the Legislative Counsel Bureau for use by the Nevada Legislature.

 


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      (b) Designated in the maps filed with the Office of the Secretary of State pursuant to NRS 293.127562.

      Sec. 8. NRS 293.127563 is hereby amended to read as follows:

      293.127563  1.  As soon as practicable after each general election, the Secretary of State shall determine the number of signatures required to be gathered from each petition district within the State for a petition for initiative or referendum that proposes a [statute, an amendment to a statute or an amendment to the Constitution of this State.] constitutional amendment or statewide measure.

      2.  To determine the number of signatures required to be gathered from a petition district, the Secretary of State shall calculate the amount that equals 10 percent of the voters who voted in that petition district at the last preceding general election.

      Sec. 9. NRS 293.1276 is hereby amended to read as follows:

      293.1276  1.  Within 4 days, excluding Saturdays, Sundays and holidays, after the submission of a petition containing signatures which are required to be verified pursuant to NRS 293.128, 293.165, 293.172, 293.200, 295.056, 298.109, 306.035 or 306.110, the county clerk shall determine the total number of signatures affixed to the documents and, in the case of a petition for initiative or referendum proposing a [statute, an amendment to a statute or an amendment to the Constitution,] constitutional amendment or statewide measure, shall tally the number of signatures for each petition district contained fully or partially within the county and forward that information to the Secretary of State.

      2.  If the Secretary of State finds that the total number of signatures filed with all the county clerks is less than 100 percent of the required number of registered voters, the Secretary of State shall so notify the person who submitted the petition and the county clerks and no further action may be taken in regard to the petition. If the petition is a petition to recall a county, district or municipal officer, the Secretary of State shall also notify the officer with whom the petition is to be filed.

      3.  After the petition is submitted to the county clerk, it must not be handled by any other person except by an employee of the county clerk’s office until it is filed with the Secretary of State.

      Sec. 10. NRS 293.1277 is hereby amended to read as follows:

      293.1277  1.  If the Secretary of State finds that the total number of signatures submitted to all the county clerks is 100 percent or more of the number of registered voters needed to declare the petition sufficient, the Secretary of State shall immediately so notify the county clerks. Within 9 days, excluding Saturdays, Sundays and holidays, after notification, each of the county clerks shall determine the number of registered voters who have signed the documents submitted in the county clerk’s county and, in the case of a petition for initiative or referendum proposing a [statute, an amendment to a statute or an amendment to the Constitution,] constitutional amendment or statewide measure, shall tally the number of signatures for each petition district contained or fully contained within the county clerk’s county.

      2.  If more than 500 names have been signed on the documents submitted to a county clerk, the county clerk shall examine the signatures by sampling them at random for verification.

 


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sampling them at random for verification. The random sample of signatures to be verified must be drawn in such a manner that every signature which has been submitted to the county clerk is given an equal opportunity to be included in the sample. The sample must include an examination of at least 500 or 5 percent of the signatures, whichever is greater.

      3.  In determining from the records of registration the number of registered voters who signed the documents, the county clerk may use the signatures contained in the file of applications to register to vote. If the county clerk uses that file, the county clerk shall ensure that every application in the file is examined, including any application in his or her possession which may not yet be entered into the county clerk’s records. The county clerk shall rely only on the appearance of the signature and the address and date included with each signature in making his or her determination.

      4.  In the case of a petition for initiative or referendum proposing a [statute, an amendment to a statute or an amendment to the Constitution,] constitutional amendment or statewide measure, when the county clerk is determining the number of registered voters who signed the documents from each petition district contained fully or partially within the county clerk’s county, he or she must use the statewide voter registration list available pursuant to NRS 293.675.

      5.  Except as otherwise provided in subsection 7, upon completing the examination, the county clerk shall immediately attach to the documents a certificate properly dated, showing the result of the examination, including the tally of signatures by petition district, if required, and transmit the documents with the certificate to the Secretary of State. [If] In the case of a petition for initiative or referendum proposing a constitutional amendment or statewide measure, if a petition district comprises more than one county , [and the petition proposes a statute, an amendment to a statute or an amendment to the Constitution,] the appropriate county clerks shall comply with the regulations adopted by the Secretary of State pursuant to this section to complete the certificate. A copy of this certificate must be filed in the clerk’s office. When the county clerk transmits the certificate to the Secretary of State, the county clerk shall notify the Secretary of State of the number of requests to remove a name received by the county clerk pursuant to NRS 295.055 or 306.015.

      6.  A person who submits a petition to the county clerk which is required to be verified pursuant to NRS 293.128, 293.165, 293.172, 293.200, 295.056, 298.109, 306.035 or 306.110 must be allowed to witness the verification of the signatures. A public officer who is the subject of a recall petition must also be allowed to witness the verification of the signatures on the petition.

      7.  For any petition containing signatures which are required to be verified pursuant to the provisions of NRS 293.165, 293.200, 306.035 or 306.110 for any county, district or municipal office within one county, the county clerk shall not transmit to the Secretary of State the documents containing the signatures of the registered voters.

      8.  The Secretary of State shall by regulation establish further procedures for carrying out the provisions of this section.

 


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      Sec. 11. NRS 293.1278 is hereby amended to read as follows:

      293.1278  1.  If the certificates received by the Secretary of State from all the county clerks establish that the number of valid signatures is less than 90 percent of the required number of registered voters, the petition shall be deemed to have failed to qualify, and the Secretary of State shall immediately so notify the petitioners and the county clerks.

      2.  If those certificates establish that the number of valid signatures is equal to or more than the sum of 100 percent of the number of registered voters needed to make the petition sufficient plus the total number of requests to remove a name received by the county clerks pursuant to NRS 295.055 or 306.015 and, in the case of a petition for initiative or referendum proposing a [statute, an amendment to a statute or an amendment to the Constitution,] constitutional amendment or statewide measure, that the petition has the minimum number of signatures required for each petition district, the petition shall be deemed to qualify as of the date of receipt by the Secretary of State of those certificates, and the Secretary of State shall immediately so notify the petitioners and the county clerks.

      3.  If the certificates establish that the petitioners have 100 percent or more of the number of registered voters needed to make the petition sufficient but the petition fails to qualify pursuant to subsection 2, each county clerk who received a request to remove a name pursuant to NRS 295.055 or 306.015 shall remove each name as requested, amend the certificate and transmit the amended certificate to the Secretary of State. If the amended certificates establish that the petitioners have 100 percent or more of the number of registered voters needed to make the petition sufficient and, in the case of a petition for initiative or referendum proposing a [statute, an amendment to a statute or an amendment to the Constitution,] constitutional amendment or statewide measure, that the petition has the minimum number of signatures required for each petition district, the petition shall be deemed to qualify as of the date of receipt by the Secretary of State of the amended certificates, and the Secretary of State shall immediately so notify the petitioners and the county clerks.

      Sec. 12. NRS 293.1279 is hereby amended to read as follows:

      293.1279  1.  If the statistical sampling shows that the number of valid signatures filed is 90 percent or more, but less than the sum of 100 percent of the number of signatures of registered voters needed to declare the petition sufficient plus the total number of requests to remove a name received by the county clerks pursuant to NRS 295.055 or 306.015, the Secretary of State shall order the county clerks to examine the signatures for verification. The county clerks shall examine the signatures for verification until they determine that 100 percent of the number of signatures of registered voters needed to declare the petition sufficient are valid. If the county clerks received a request to remove a name pursuant to NRS 295.055 or 306.015, the county clerks may not determine that 100 percent of the number of signatures of registered voters needed to declare the petition sufficient are valid until they have removed each name as requested pursuant to NRS 295.055 or 306.015.

      2.  Except as otherwise provided in this subsection, if the statistical sampling shows that the number of valid signatures filed in any county is 90 percent or more but less than the sum of 100 percent of the number of signatures of registered voters needed to constitute 10 percent of the number of voters who voted at the last preceding general election in that county plus the total number of requests to remove a name received by the county clerk in that county pursuant to NRS 295.055 or 306.015, the Secretary of State may order the county clerk in that county to examine every signature for verification.

 


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percent or more but less than the sum of 100 percent of the number of signatures of registered voters needed to constitute 10 percent of the number of voters who voted at the last preceding general election in that county plus the total number of requests to remove a name received by the county clerk in that county pursuant to NRS 295.055 or 306.015, the Secretary of State may order the county clerk in that county to examine every signature for verification. If the county clerk received a request to remove a name pursuant to NRS 295.055 or 306.015, the county clerk may not determine that 100 percent or more of the number of signatures of registered voters needed to constitute 10 percent of the number of voters who voted at the last preceding general election in that county are valid until the county clerk has removed each name as requested pursuant to NRS 295.055 or 306.015. In the case of a petition for initiative or referendum that proposes a [statute, an amendment to a statute or an amendment to the Constitution of this State,] constitutional amendment or statewide measure, if the statistical sampling shows that the number of valid signatures in any petition district is 90 percent or more but less than the sum of 100 percent of the number of signatures of registered voters required for that petition district pursuant to NRS 295.012 plus the total number of requests to remove a name received by the county clerk or county clerks, if the petition district comprises more than one county, pursuant to NRS 295.055, the Secretary of State may order a county clerk to examine every signature for verification.

      3.  Within 12 days, excluding Saturdays, Sundays and holidays, after receipt of such an order, the county clerk or county clerks shall determine from the records of registration what number of registered voters have signed the petition and, if appropriate, tally those signatures by petition district. If necessary, the board of county commissioners shall allow the county clerk additional assistants for examining the signatures and provide for their compensation. In determining from the records of registration what number of registered voters have signed the petition and in determining in which petition district the voters reside, the county clerk must use the statewide voter registration list. The county clerk may rely on the appearance of the signature and the address and date included with each signature in determining the number of registered voters that signed the petition.

      4.  Except as otherwise provided in subsection 5, upon completing the examination, the county clerk or county clerks shall immediately attach to the documents of the petition an amended certificate, properly dated, showing the result of the examination and shall immediately forward the documents with the amended certificate to the Secretary of State. A copy of the amended certificate must be filed in the county clerk’s office. In the case of a petition for initiative or referendum to propose a [statute, an amendment to a statute or an amendment to the Constitution,] constitutional amendment or statewide measure, if a petition district comprises more than one county, the county clerks shall comply with the regulations adopted by the Secretary of State pursuant to this section to complete the amended certificate.

      5.  For any petition containing signatures which are required to be verified pursuant to the provisions of NRS 293.165, 293.200, 306.035 or 306.110 for any county, district or municipal office within one county, the county clerk shall not forward to the Secretary of State the documents containing the signatures of the registered voters.

 


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or 306.110 for any county, district or municipal office within one county, the county clerk shall not forward to the Secretary of State the documents containing the signatures of the registered voters.

      6.  Except for a petition to recall a county, district or municipal officer, the petition shall be deemed filed with the Secretary of State as of the date on which the Secretary of State receives certificates from the county clerks showing the petition to be signed by the requisite number of voters of the State.

      7.  If the amended certificates received from all county clerks by the Secretary of State establish that the petition is still insufficient, the Secretary of State shall immediately so notify the petitioners and the county clerks. If the petition is a petition to recall a county, district or municipal officer, the Secretary of State shall also notify the officer with whom the petition is to be filed.

      8.  The Secretary of State shall adopt regulations to carry out the provisions of this section.

      Sec. 13. NRS 293.165 is hereby amended to read as follows:

      293.165  1.  Except as otherwise provided in NRS 293.166, a vacancy occurring in a major or minor political party nomination for a partisan office may be filled by a candidate designated by the party central committee of the county or State, as the case may be, of the major political party or by the executive committee of the minor political party subject to the provisions of subsections 4 and 5.

      2.  A vacancy occurring in a nonpartisan nomination after the close of filing and on or before 5 p.m. of the second Tuesday in April must be filled by filing a nominating petition that is signed by registered voters of the State, county, district or municipality who may vote for the office in question. The number of registered voters who sign the petition must not be less than 1 percent of the number of persons who voted for the office in question in the State, county, district or municipality at the last preceding general election. The petition must be filed not earlier than the first Tuesday in March and not later than the fourth Tuesday in April. The petition may consist of more than one document. Each document must bear the name of one county and must be signed only by a person who is a registered voter of that county and who may vote for the office in question. Each document of the petition must be submitted for verification pursuant to NRS 293.1276 to 293.1279, inclusive, to the county clerk of the county named on the document. A candidate nominated pursuant to the provisions of this subsection:

      (a) Must file a declaration of candidacy or acceptance of candidacy and pay the statutory filing fee on or before the date the petition is filed; and

      (b) May be elected only at a general election, and the candidate’s name must not appear on the ballot for a primary election.

      3.  A vacancy occurring in a nonpartisan nomination after 5 p.m. of the second Tuesday in April and on or before 5 p.m. on the [first Tuesday after the primary election] fourth Friday in June of the year in which the general election is held must be filled by the person who receives the next highest vote for the nomination in the primary.

      4.  No change may be made on the ballot for the general election after 5 p.m. on the [first Tuesday after the primary election.] fourth Friday in June of the year in which the general election is held.

 


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of the year in which the general election is held. If a nominee dies after that time and date, the nominee’s name must remain on the ballot for the general election and, if elected, a vacancy exists.

      5.  All designations provided for in this section must be filed on or before 5 p.m. on the [first Tuesday after the primary election.] fourth Friday in June of the year in which the general election is held. In each case, the statutory filing fee must be paid and an acceptance of the designation must be filed on or before 5 p.m. on the date the designation is filed.

      Sec. 14. NRS 293.166 is hereby amended to read as follows:

      293.166  1.  A vacancy occurring in a party nomination for the office of State Senator, Assemblyman or Assemblywoman from a legislative district comprising more than one county may be filled as follows, subject to the provisions of subsections 2 and 3. The county commissioners of each county, all or part of which is included within the legislative district, shall meet to appoint a person who is of the same political party as the former nominee and who actually, as opposed to constructively, resides in the district to fill the vacancy, with the chair of the board of county commissioners of the county whose population residing within the district is the greatest presiding. Each board of county commissioners shall first meet separately and determine the single candidate it will nominate to fill the vacancy. Then, the boards shall meet jointly and the chairs on behalf of the boards shall cast a proportionate number of votes according to the percent, rounded to the nearest whole percent, which the population of its county is of the population of the entire district. Populations must be determined by the last decennial census or special census conducted by the Bureau of the Census of the United States Department of Commerce. The person who receives a plurality of these votes is appointed to fill the vacancy. If no person receives a plurality of the votes, the boards of county commissioners of the respective counties shall each as a group select one candidate, and the nominee must be chosen by drawing lots among the persons so selected.

      2.  No change may be made on the ballot after the [first Tuesday after the primary election] fourth Friday in June of the year in which the general election is held. If a nominee dies after that date, the nominee’s name must remain on the ballot and, if elected, a vacancy exists.

      3.  The designation of a nominee pursuant to this section must be filed with the Secretary of State on or before 5 p.m. on the [first Tuesday after the primary election,] fourth Friday in June of the year in which the general election is held, and the statutory filing fee must be paid with the designation.

      Sec. 15. NRS 293.171 is hereby amended to read as follows:

      293.171  1.  To [qualify] be organized as a minor political party, an organization must file with the Secretary of State a certificate of existence which includes the:

      (a) Name of the political party;

      (b) Names of its officers;

      (c) Names of the members of its executive committee; and

      (d) Name of the person authorized to file the list of its candidates for partisan office with the Secretary of State.

 


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      2.  A copy of the constitution or bylaws of the party must be affixed to the certificate.

      3.  A minor political party shall file with the Secretary of State an amended certificate of existence within 5 days after any change in the information contained in the certificate.

      4.  The constitution or bylaws of a minor political party must provide a procedure for the nomination of its candidates in such a manner that only one candidate may be nominated for each office.

      5.  A minor political party whose candidates for partisan office do not appear on the ballot for the general election must file a notice of continued existence with the Secretary of State not later than the second Friday in August preceding the general election.

      6.  A minor political party which fails to file a notice of continued existence as required by subsection 5 ceases to exist as a minor political party in this State.

      Sec. 16. NRS 293.1715 is hereby amended to read as follows:

      293.1715  1.  The names of the candidates for partisan office of a minor political party must not appear on the ballot for a primary election.

      2.  The names of the candidates for partisan office of a minor political party must be placed on the ballot for the general election if the minor political party [has] is qualified. To qualify as a minor political party, the minor political party must have filed a certificate of existence and be organized pursuant to NRS 293.171, must have filed a list of its candidates for partisan office pursuant to the provisions of NRS 293.1725 with the Secretary of State and:

      (a) At the last preceding general election, the minor political party must have polled for any of its candidates for partisan office a number of votes equal to or more than 1 percent of the total number of votes cast for the offices of Representative in Congress;

      (b) On January 1 preceding a primary election, the minor political party [has] must have been designated as the political party on the applications to register to vote of at least 1 percent of the total number of registered voters in this State; or

      (c) Not later than the [second] third Friday in [June] May preceding the general election, [files] must file a petition with the Secretary of State which is signed by a number of registered voters equal to at least 1 percent of the total number of votes cast at the last preceding general election for the offices of Representative in Congress.

      3.  [The name of a candidate for partisan office for a minor political party other than a candidate for the office of President or Vice President of the United States must be placed on the ballot for the general election if the party has filed:

      (a) A certificate of existence;

      (b) A list of candidates for partisan office containing the name of the candidate pursuant to the provisions of NRS 293.1725 with the Secretary of State; and

      (c) Not earlier than the first Monday in March preceding the general election and not later than 5 p.m. on the second Friday after the first Monday in March, a petition on behalf of the candidate with the Secretary of State containing not less than:

 


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             (1) Two hundred fifty signatures of registered voters if the candidate is to be nominated for a statewide office; or

             (2) One hundred signatures of registered voters if the candidate is to be nominated for any office except a statewide office.

Κ A minor political party that places names of one or more candidates for partisan office on the ballot pursuant to this subsection may also place the names of one or more candidates for partisan office on the ballot pursuant to subsection 2.

      4.]  The name of only one candidate of each minor political party for each partisan office may appear on the ballot for a general election.

      [5.]4.  A minor political party must file a copy of the petition required by paragraph (c) of subsection 2 [or paragraph (c) of subsection 3] with the Secretary of State before the petition may be circulated for signatures.

      Sec. 16.2. NRS 293.172 is hereby amended to read as follows:

      293.172  1.  A petition filed pursuant to subsection 2 [or 3] of NRS 293.1715 may consist of more than one document. Each document of the petition must:

      (a) Bear the name of the minor political party and, if applicable, the candidate and office to which the candidate is to be nominated.

      (b) Include the affidavit of the person who circulated the document verifying that the signers are registered voters in this State according to his or her best information and belief and that the signatures are genuine and were signed in his or her presence.

      (c) Bear the name of a county and be submitted to the county clerk of that county for verification in the manner prescribed in NRS 293.1276 to 293.1279, inclusive, not later than 25 working days before the last day to file the petition. A challenge to the form of a document must be made in a district court in the county that is named on the document.

      (d) Be signed only by registered voters of the county that is named on the document.

      2.  If the office to which the candidate is to be nominated is a county office, only the registered voters of that county may sign the petition. If the office to which the candidate is to be nominated is a district office, only the registered voters of that district may sign the petition.

      3.  Each person who signs a petition shall also provide the address of the place where he or she resides, the date that he or she signs and the name of the county in which he or she is registered to vote.

      4.  The county clerk shall not disqualify the signature of a voter who failed to provide all the information required by subsection 3 if the voter is registered in the county named on the document.

      Sec. 16.4. NRS 293.1725 is hereby amended to read as follows:

      293.1725  1.  Except as otherwise provided in subsection 4, a minor political party that wishes to place its candidates for partisan office on the ballot for a general election and:

      (a) Is entitled to do so pursuant to paragraph (a) or (b) of subsection 2 of NRS 293.1715; or

      (b) Files or will file a petition pursuant to paragraph (c) of subsection 2 of NRS 293.1715 , [; or

 


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      (c) Whose candidates are entitled to appear on the ballot pursuant to subsection 3 of NRS 293.1715,]

Κ must file with the Secretary of State a list of its candidates for partisan office not earlier than the first Monday in March preceding the election nor later than 5 p.m. on the second Friday after the first Monday in March. The list must be signed by the person so authorized in the certificate of existence of the minor political party before a notary public or other person authorized to take acknowledgments. [The Secretary of State shall strike from the list each candidate who is not entitled to appear on the ballot pursuant to subsection 3 of NRS 293.1715 if the minor political party is not entitled to place candidates on the ballot pursuant to subsection 2 of NRS 293.1715.] The list may be amended not later than 5 p.m. on the second Friday after the first Monday in March.

      2.  The Secretary of State shall immediately forward a certified copy of the list of candidates for partisan office of each minor political party to the filing officer with whom each candidate must file his or her declaration of candidacy.

      3.  Each candidate on the list must file his or her declaration of candidacy with the appropriate filing officer and pay the fee required by NRS 293.193 not earlier than the date on which the list of candidates for partisan office of the minor political party is filed with the Secretary of State nor later than 5 p.m. on the second Friday after the first Monday in March.

      4.  A minor political party that wishes to place candidates for the offices of President and Vice President of the United States on the ballot and has qualified to place the names of its candidates for partisan office on the ballot for the general election pursuant to subsection 2 of NRS 293.1715 must file with the Secretary of State a certificate of nomination for these offices not later than the first Tuesday in September.

      Sec. 17. NRS 293.174 is hereby amended to read as follows:

      293.174  [1.]  If the qualification of a minor political party to place the names of candidates on the ballot pursuant to NRS 293.1715 is challenged, all affidavits and documents in support of the challenge must be filed not later than 5 p.m. on the third Friday in June. Any judicial proceeding resulting from the challenge must be set for hearing not more than 5 days after the third Friday in June. A challenge pursuant to this [subsection] section must be filed with the First Judicial District Court if the petition was filed with the Secretary of State.

      [2.  If the qualification of a candidate of a minor political party other than a candidate for the office of President or Vice President of the United States is challenged, all affidavits and documents in support of the challenge must be filed not later than 5 p.m. on the fourth Monday in March. Any judicial proceeding resulting from the challenge must be set for hearing not more than 5 days after the fourth Monday in March. A challenge pursuant to this subsection must be filed with:

      (a) The First Judicial District Court; or

      (b) If a candidate who filed a declaration of candidacy with a county clerk is challenged, the district court for the county where the declaration of candidacy was filed.]

 


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      Sec. 18. NRS 293.176 is hereby amended to read as follows:

      293.176  1.  Except as otherwise provided in subsection 2, no person may be a candidate of a major political party for partisan office in any election if the person has changed:

      (a) The designation of his or her political party affiliation; or

      (b) His or her designation of political party from nonpartisan to a designation of a political party affiliation,

Κ on an application to register to vote in the State of Nevada or in any other state during the time beginning on December 31 preceding the closing filing date for that election and ending on the date of that election whether or not the person’s previous registration was still effective at the time of the change in party designation.

      2.  The provisions of subsection 1 do not apply to any person who is a candidate of a political party that [was] is not [qualified] organized pursuant to NRS 293.171 on the December 31 next preceding the closing filing date for the election.

      Sec. 19. NRS 293.184 is hereby amended to read as follows:

      293.184  1.  In addition to any other penalty provided by law, if a person [knowingly and] willfully files a declaration of candidacy or acceptance of candidacy [which] knowing that the declaration of candidacy or acceptance of candidacy contains a false statement:

      [1.  The]

      (a) Except as otherwise provided in NRS 293.165 and 293.166, the name of the person must not appear on any ballot for the election for which the person filed the declaration of candidacy or acceptance of candidacy; and

      [2.](b) The person is disqualified from entering upon the duties of the office for which he or she was a candidate.

      2.  If the name of a person who is disqualified from entering upon the duties of an office pursuant to subsection 1 appears on a ballot for the election is disqualified because the deadline set forth in NRS 293.165 and 293.166 for making changes to the ballot has passed, the Secretary of State and county clerk must post a sign at each polling place where the person’s name will appear on the ballot informing voters that the person is disqualified from entering upon the duties of office.

      Sec. 20. (Deleted by amendment.)

      Sec. 21. NRS 293.257 is hereby amended to read as follows:

      293.257  1.  There must be a separate primary ballot for each major political party. The names of candidates for partisan offices who have designated a major political party in the declaration of candidacy or acceptance of candidacy must appear on the primary ballot of the major political party designated.

      2.  The county clerk may choose to place the names of candidates for nonpartisan offices on the ballots for each major political party or on a separate nonpartisan primary ballot, but the arrangement which the county clerk selects must permit all registered voters to vote on them.

      3.  A registered voter may cast a primary ballot for a major political party at a primary election only if the registered voter designated on his or her application to register to vote an affiliation with that major political party.

 


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      Sec. 22. (Deleted by amendment.)

      Sec. 23. NRS 293.333 is hereby amended to read as follows:

      293.333  On the day of an election, the precinct or district election boards receiving the absent voters’ ballots from the county clerk shall, in the presence of a majority of the election board officers, remove the ballots from the ballot box and the containers in which the ballots were transported pursuant to NRS 293.325 and deposit the ballots in the regular ballot box in the following manner:

      1.  The name of the voter, as shown on the return envelope , [or] facsimile, special absent ballot or oath of the voter required pursuant to NRS 293.3157, as applicable, must be called and checked as if the voter were voting in person;

      2.  The signature on the back of the return envelope or on the facsimile , special absent ballot or oath of the voter required pursuant to NRS 293.3157, as applicable, must be compared with that on the original application to register to vote;

      3.  If the board determines that the absent voter is entitled to cast a ballot, the envelope must be opened, the numbers on the ballot and envelope compared, the number strip or stub detached from the ballot and, if the numbers are the same, the ballot deposited in the regular ballot box; and

      4.  The election board officers shall mark in the roster opposite the name of the voter the word “Voted.”

      Sec. 24. NRS 293.3568 is hereby amended to read as follows:

      293.3568  1.  The period for early voting by personal appearance begins the third Saturday preceding a primary or general election and extends through the Friday before election day, Sundays and federal holidays excepted.

      2.  The county clerk may:

      (a) Include any Sunday or federal holiday that falls within the period for early voting by personal appearance.

      (b) Require a permanent polling place for early voting to remain open until 8 p.m. on any Saturday that falls within the period for early voting.

      3.  A permanent polling place for early voting must remain open:

      (a) On Monday through Friday:

             (1) During the first week of early voting, from 8 a.m. until 6 p.m.

             (2) During the second week of early voting, from 8 a.m. until 6 p.m., or until 8 p.m. if the county clerk so requires.

      (b) On any Saturday that falls within the period for early voting, for at least 4 hours between 10 a.m. and 6 p.m.

      (c) If the county clerk includes a Sunday that falls within the period for early voting pursuant to subsection 2, during such hours as the county clerk may establish.

      Sec. 25. NRS 293.368 is hereby amended to read as follows:

      293.368  1.  Whenever a candidate whose name appears upon the ballot at a primary election dies after 5 p.m. of the second Tuesday in April, the deceased candidate’s name must remain on the ballot and the votes cast for the deceased candidate must be counted in determining the nomination for the office for which the decedent was a candidate.

 


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      2.  If the deceased candidate on the ballot at the primary election receives the number of votes required to receive the nomination to the office for which he or she was a candidate, except as otherwise provided in subsection 3 of NRS 293.165, the deceased candidate shall be deemed nominated and the vacancy in the nomination must be filled as provided in NRS 293.165 or 293.166. If the deceased person was a candidate for a nonpartisan office, the nomination must be filled pursuant to subsection 2 of NRS 293.165.

      3.  Whenever a candidate whose name appears upon the ballot at a general election dies after 5 p.m. on the [first Tuesday after the primary election,] fourth Friday in June of the year in which the general election is held, the votes cast for the deceased candidate must be counted in determining the results of the election for the office for which the decedent was a candidate.

      4.  If the deceased candidate on the ballot at the general election receives the majority of the votes cast for the office, the deceased candidate shall be deemed elected and the office to which he or she was elected shall be deemed vacant at the beginning of the term for which he or she was elected. The vacancy thus created must be filled in the same manner as if the candidate had died after taking office for that term.

      Sec. 26. NRS 293.383 is hereby amended to read as follows:

      293.383  1.  Except as otherwise provided in [subsection 2,] this section, each counting board, before it adjourns, shall post a copy of the voting results in a conspicuous place on the outside of the place where the votes were counted.

      2.  [When] Except as otherwise provided in subsection 3, when votes are cast on ballots which are mechanically or electronically tabulated in accordance with the provisions of chapter 293B of NRS, the county clerk shall, as soon as possible, post copies of the tabulated voting results in a conspicuous place on the outside of the counting facility or courthouse.

      3.  The Secretary of State shall notify each county clerk as soon as is reasonably practicable when every polling place is closed and all votes have been cast. A county clerk shall not post copies of the tabulated voting results for a statewide or multicounty race or ballot question until the county clerk has received notification from the Secretary of State that all polling places are closed and all votes have been cast.

      4.  Each copy of the voting results posted in accordance with subsections 1 , [and] 2 and 3 must set forth the accumulative total of all the votes cast within the county or other political subdivision conducting the election and must be signed by the members of the counting board or the computer program and processing accuracy board.

      Sec. 27. NRS 293.404 is hereby amended to read as follows:

      293.404  1.  Where a recount is demanded pursuant to the provisions of NRS 293.403, the:

      (a) County clerk of each county affected by the recount shall employ a recount board to conduct the recount in the county, and shall act as chair of the recount board unless the recount is for the office of county clerk, in which case the registrar of voters of the county, if a registrar of voters has been appointed for the county, shall act as chair of the recount board. If a registrar of voters has not been appointed for the county, the chair of the board of county commissioners, if the chair is not a candidate on the ballot, shall act as chair of the recount board.

 


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registrar of voters has not been appointed for the county, the chair of the board of county commissioners, if the chair is not a candidate on the ballot, shall act as chair of the recount board. If the recount is for the office of county clerk, a registrar of voters has not been appointed for the county and the chair of the board of county commissioners is a candidate on the ballot, the chair of the board of county commissioners shall appoint another member of the board of county commissioners who is not a candidate on the ballot to act as chair of the recount board. A member of the board of county commissioners who is a candidate on the ballot may not serve as a member of the recount board.

      (b) City clerk shall employ a recount board to conduct the recount in the city, and shall act as chair of the recount board unless the recount is for the office of city clerk, in which case the mayor of the city, if the mayor is not a candidate on the ballot, shall act as chair of the recount board. If the recount is for the office of city clerk and the mayor of the city is a candidate on the ballot, the mayor of the city shall appoint another member of the city council who is not a candidate on the ballot to act as chair of the recount board. A member of the city council who is a candidate on the ballot may not serve as a member of the recount board.

      2.  Each candidate for the office affected by the recount and the voter who demanded the recount, if any, may be present in person or by an authorized representative, but may not be a member of the recount board.

      3.  Except in counties or cities using a mechanical voting system, the recount must include a count and inspection of all ballots, including rejected ballots, and must determine whether those ballots are marked as required by law.

      4.  If a recount is demanded in a county or city using a mechanical voting system, the person who demanded the recount shall select the ballots for the office or ballot question affected from 5 [:] percent of the total number of precincts [,] for that particular office or ballot question, but in no case fewer than three precincts, after notification to each candidate for the office or the candidate’s authorized representative.

      5.  The recount board shall examine the selected ballots, including any duplicate or rejected ballots, shall determine whether the ballots have been voted in accordance with this title and shall [count] recount the valid ballots [by hand. In addition, a recount by computer must be made of all the selected ballots.] in the same manner in which the ballots were originally tabulated. If the [count by hand or the] recount [by computer] of the selected ballots for all 5 percent of the precincts selected shows a total combined discrepancy of all precincts selected equal to or greater than 1 percent or five votes, whichever is greater, for the candidate demanding the recount or the candidate who won the election according to the original canvass of the returns, or in favor of or against a ballot question, according to the original canvass of the returns, the county or city clerk , as applicable, shall determine whether the person who demanded the recount is entitled to a recount and, if so, shall order a [count by hand] recount of all the ballots for that office or ballot question. [Otherwise, the county or city clerk shall order a recount by computer of all the ballots for all candidates for the office or all the ballots for the ballot question.]

 


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      [5.]6.  The county or city clerk shall unseal and give to the recount board all ballots to be counted.

      [6.]7. In the case of a demand for a recount affecting more than one county, including, without limitation, a statewide office or a ballot question, the demand must be made to the Secretary of State . The person who demanded the recount shall select the ballots for the statewide office or ballot question affected from 5 percent of the total number of precincts for that particular office or ballot question after notification to each candidate for the office or the candidate’s representative. The Secretary of State shall notify the county clerks [to proceed with the recount.] of the 5 percent of statewide precincts selected by the person who demanded the recount to examine the ballots in accordance with the provisions of this section and to notify the Secretary of State of the results of the recount in their respective precincts. If the separate examinations, when combined, show a total discrepancy equal to or greater than 1 percent for the candidate demanding the recount or the candidate who won the election, according to the original canvass of the returns, or in favor of or against a ballot question, according to the original canvass of the returns, the Secretary of State shall determine whether the person who demanded the recount is entitled to a recount and, if so, shall order the county or city clerk, as applicable, to recount all the ballots for that office or ballot question.

      8.  The Secretary of State may adopt regulations to carry out the provisions of this section.

      Sec. 28. (Deleted by amendment.)

      Sec. 29. NRS 293.4687 is hereby amended to read as follows:

      293.4687  1.  The Secretary of State shall maintain a website on the Internet for public information maintained, collected or compiled by the Secretary of State that relates to elections, which must include, without limitation:

      (a) The Voters’ Bill of Rights required to be posted on the Secretary of State’s Internet website pursuant to the provisions of NRS 293.2549;

      (b) The abstract of votes required to be posted on a website pursuant to the provisions of NRS 293.388;

      (c) A current list of the registered voters in this State that also indicates the petition district in which each registered voter resides;

      (d) A map or maps indicating the boundaries of each petition district; and

      (e) All reports on campaign contributions and expenditures submitted to the Secretary of State pursuant to the provisions of NRS 294A.120, 294A.125, 294A.140, 294A.150, 294A.200, 294A.210, 294A.220, 294A.270, 294A.280, 294A.283, 294A.360 and 294A.362 and all reports on contributions received by and expenditures made from a legal defense fund or used to pay for legal expenses submitted to the Secretary of State pursuant to NRS 294A.286.

      2.  The abstract of votes required to be maintained on the website pursuant to paragraph (b) of subsection 1 must be maintained in such a format as to permit the searching of the abstract of votes for specific information.

 


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      3.  If the information required to be maintained by the Secretary of State pursuant to subsection 1 may be obtained by the public from a website on the Internet maintained by a county clerk or city clerk, the Secretary of State may provide a hyperlink to that website to comply with the provisions of subsection 1 with regard to that information.

      Sec. 30. NRS 293.487 is hereby amended to read as follows:

      293.487  No person may gain or lose residence by reason of his or her presence or absence while [employed] :

      1.  Employed in the military, naval or civil service of the United States or of the State of Nevada, or while engaged in the navigation of the waters of the United States or of the high seas [, or while a] or while married to another person who is so employed or engaged;

      2.  A student at any seminary or other institution of learning [, or while an] ; or

      3.  An inmate of any public institution.

      Sec. 31. (Deleted by amendment.)

      Sec. 32. NRS 293C.1865 is hereby amended to read as follows:

      293C.1865  1.  In addition to any other penalty provided by law, if a person [knowingly and] willfully files a declaration of candidacy or acceptance of candidacy [which] knowing that the declaration of candidacy or acceptance of candidacy contains a false statement:

      [1.  The]

      (a) Except as otherwise provided in NRS 293.165 or 293.166, the name of the person must not appear on any ballot for the election for which the person filed the declaration of candidacy or acceptance of candidacy; and

      [2.](b) The person is disqualified from entering upon the duties of the office for which he or she was a candidate.

      2.  If the name of a person who is disqualified from entering upon the duties of an office pursuant to subsection 1 appears on a ballot for the election is disqualified because the deadline set forth in NRS 293.165 and 293.166 for making changes to the ballot has passed, the Secretary of State and city clerk must post a sign at each polling place where the person’s name will appear on the ballot informing voters that the person is disqualified from entering upon the duties of office.

      Sec. 33. NRS 293C.332 is hereby amended to read as follows:

      293C.332  On the day of an election, the precinct or district election boards receiving the absent voters’ ballots from the city clerk shall, in the presence of a majority of the election board officers, remove the ballots from the ballot box and the containers in which the ballots were transported pursuant to NRS 293C.325 and deposit the ballots in the regular ballot box in the following manner:

      1.  The name of the voter, as shown on the return envelope , [or] facsimile, special absent ballot or oath of the voter required pursuant to NRS 293.3157, as applicable, must be called and checked as if the voter were voting in person;

      2.  The signature on the back of the return envelope or on the facsimile , special absent ballot or oath of the voter required pursuant to NRS 293.3157, as applicable, must be compared with that on the original application to register to vote;

 


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      3.  If the board determines that the absent voter is entitled to cast a ballot, the envelope must be opened, the numbers on the ballot and envelope compared, the number strip or stub detached from the ballot and, if the numbers are the same, the ballot deposited in the regular ballot box; and

      4.  The election board officers shall mark in the roster opposite the name of the voter the word “Voted.”

      Sec. 34. NRS 293C.3568 is hereby amended to read as follows:

      293C.3568  1.  The period for early voting by personal appearance begins the third Saturday preceding a primary city election or general city election, and extends through the Friday before election day, Sundays and federal holidays excepted.

      2.  The city clerk may:

      (a) Include any Sunday or federal holiday that falls within the period for early voting by personal appearance.

      (b) Require a permanent polling place for early voting to remain open until 8 p.m. on any Saturday that falls within the period for early voting.

      3.  A permanent polling place for early voting must remain open:

      (a) On Monday through Friday:

             (1) During the first week of early voting, from 8 a.m. until 6 p.m.

             (2) During the second week of early voting, from 8 a.m. until 6 p.m., or until 8 p.m. if the city clerk so requires.

      (b) On any Saturday that falls within the period for early voting, for at least 4 hours between 10 a.m. and 6 p.m.

      (c) If the city clerk includes a Sunday that falls within the period for early voting pursuant to subsection 2, during such hours as the city clerk may establish.

      Sec. 35. Chapter 294A of NRS is hereby amended by adding thereto the provisions set forth as sections 36 to 38, inclusive, of this act.

      Sec. 36. “Advocates expressly” or “expressly advocates” means that a communication, taken as a whole, is susceptible to no other reasonable interpretation other than as an appeal to vote for or against a clearly identified candidate or group or candidates or a question or group of questions on the ballot at a primary election, primary city election, general election, general city election or special election. A communication does not have to include the words “vote for,” “vote against,” “elect,” “support” or other similar language to be considered a communication that expressly advocates the passage or defeat of a candidate or a question.

      Sec. 36.5. “Campaign expenses” means:

      1.  All expenses incurred by a candidate for a campaign, including, without limitation:

      (a) Office expenses;

      (b) Expenses related to volunteers;

      (c) Expenses related to travel;

      (d) Expenses related to advertising;

      (e) Expenses related to paid staff;

      (f) Expenses related to consultants;

      (g) Expenses related to polling;

      (h) Expenses related to special events;

      (i) Expenses related to a legal defense fund; and

 


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      (j)Contributions made to another candidate, a nonprofit corporation that is registered or required to be registered pursuant to NRS 294A.225, a committee for political action that is registered or required to be registered pursuant to NRS 294A.230 or a committee for the recall of a public officer that is registered or required to be registered pursuant to NRS 294A.250.

      2.  Expenditures, as defined in NRS 294A.004.

      Sec. 37. 1.  A person, committee for political action, political party or committee sponsored by a political party that expends more than $100 for the purpose of financing a communication through any television or radio broadcast, newspaper, magazine, outdoor advertising facility, mailing or any other type of general public political advertising that:

      (a) Advocates expressly the election or defeat of a clearly identified candidate or group of candidates; or

      (b) Solicits a contribution through any television or radio broadcast, newspaper, magazine, outdoor advertising facility, mailing or any other type of general public political advertising,

Κ shall disclose on the communication the name of the person, committee for political action, political party or committee sponsored by a political party that paid for the communication.

      2.  If a communication described in subsection 1 is approved by a candidate, in addition to the requirements of subsection 1, the communication must state that the candidate approved the communication and disclose the street address, telephone number and Internet address, if any, of the person, committee for political action, political party or committee sponsored by a political party that paid for the communication.

      3.  A person, committee for political action, political party or committee sponsored by a political party that has an Internet website available for viewing by the general public or that sends out an electronic mailing to more than 500 people that:

      (a) Advocates expressly the election or defeat of a clearly identified candidate or group of candidates; or

      (b) Solicits a contribution through any television or radio broadcast, newspaper, magazine, outdoor advertising facility, mailing or any other type of general public political advertising,

Κ shall disclose on the Internet website or electronic mailing, as applicable, the name of the person, committee for political action, political party or committee sponsored by a political party.

      4.  The disclosures and statements required pursuant to this section must be clear and conspicuous, and easy to read or hear, as applicable.

      Sec. 38. (Deleted by amendment.)

      Sec. 39. NRS 294A.002 is hereby amended to read as follows:

      294A.002  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS [294A.003] 294A.004 to 294A.009, inclusive, and sections 36 and 36.5 of this act have the meanings ascribed to them in those sections.

      Sec. 39.5. NRS 294A.004 is hereby amended to read as follows:

      294A.004  [“Campaign expenses” and “expenditures” mean:] “Expenditures” means:

 


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      1.  Those expenditures made for advertising on television, radio, billboards, posters and in newspapers; and

      2.  All other expenditures made,

Κ to advocate expressly the election or defeat of a clearly identified candidate or group of candidates or the passage or defeat of a clearly identified question or group of questions on the ballot, including any payments made to a candidate or any person who is related to the candidate within the second degree of consanguinity or affinity.

      Sec. 40. NRS 294A.007 is hereby amended to read as follows:

      294A.007  1.  “Contribution” means a gift, loan, conveyance, deposit, payment, transfer or distribution of money or of anything of value other than the services of a volunteer, and includes:

      (a) The payment by any person, other than a candidate, of compensation for the personal services of another person which are rendered to a:

             (1) Candidate;

             (2) Person who is not under the direction or control of a candidate or group of candidates or of any person involved in the campaign of the candidate or group who makes an expenditure on behalf of the candidate or group which is not solicited or approved by the candidate or group;

             (3) Committee for political action, political party [,] or committee sponsored by a political party [or business entity] which makes an expenditure on behalf of a candidate or group of candidates; or

             (4) Person or group of persons organized formally or informally [, including a business entity,] who advocates the passage or defeat of a question or group of questions on the ballot,

Κ without charge to the candidate, person, committee or political party.

      (b) The value of services provided in kind for which money would have otherwise been paid, such as paid polling and resulting data, paid direct mail, paid solicitation by telephone, any paid paraphernalia that was printed or otherwise produced to promote a campaign and the use of paid personnel to assist in a campaign.

      2.  As used in this section, “volunteer” means a person who does not receive compensation of any kind, directly or indirectly, for the services provided to a campaign.

      Sec. 41. (Deleted by amendment.)

      Sec. 41.5. NRS 294A.112 is hereby amended to read as follows:

      294A.112  1.  A person shall not:

      (a) Make a contribution in the name of another person;

      (b) Knowingly allow his or her name to be used to cause a contribution to be made in the name of another person or assist in the making of a contribution in the name of another person;

      (c) Knowingly assist a person to make a contribution in the name of another person; [or]

      (d) Knowingly accept a contribution made by a person in the name of another person [.] ; or

      (e) Make a contribution to a committee for political action with the knowledge and intent that the committee for political action will contribute that money to a specific candidate which, in combination with the total contributions already made by the person for the same election, would violate the limitations on contributions set forth in this chapter.

 


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      2.  As used in this section, “make a contribution in the name of another person” includes, without limitation:

      (a) Giving money or an item of value, all or part of which was provided or reimbursed to the contributor by another person, without disclosing the source of the money or item of value to the recipient at the time the contribution is made; and

      (b) Giving money or an item of value, all or part of which belongs to the person who is giving the money or item of value, and claiming that the money or item of value belongs to another person.

      Sec. 42. (Deleted by amendment.)

      Sec. 43. (Deleted by amendment.)

      Sec. 44. NRS 294A.140 is hereby amended to read as follows:

      294A.140  1.  Every person who is not under the direction or control of a candidate for office at a primary election, primary city election, general election or general city election, of a group of such candidates or of any person involved in the campaign of that candidate or group who makes an expenditure on behalf of the candidate or group which is not solicited or approved by the candidate or group, and every committee for political action, political party [,] and committee sponsored by a political party [and business entity] which receives contributions in excess of $100 or makes an expenditure on behalf of such a candidate or group of candidates shall, not later than January 15 of each year that the provisions of this subsection apply to the person, committee [,] or political party , [or business entity,] for the period from January 1 of the previous year through December 31 of the previous year, report each campaign contribution in excess of $100 received during the period and contributions received during the period from a contributor which cumulatively exceed $100. The provisions of this subsection apply to the person, committee [,] or political party [or business entity] beginning the year of the general election or general city election for that office through the year immediately preceding the next general election or general city election for that office.

      2.  Every person, committee [,] or political party [or business entity] described in subsection 1 which makes an expenditure on behalf of the candidate for office at a primary election, primary city election, general election or general city election or on behalf of a group of such candidates shall, if the general election or general city election for the office for which the candidate or a candidate in the group of candidates seeks election is held on or after January 1 and before the July 1 immediately following that January 1, not later than:

      (a) Seven days before the primary election or primary city election for that office, for the period from the January 1 immediately preceding the primary election or primary city election through 12 days before the primary election or primary city election;

      (b) Seven days before the general election or general city election for that office, for the period from 11 days before the primary election or primary city election through 12 days before the general election or general city election; and

      (c) July 15 of the year of the general election or general city election for that office, for the period from 11 days before the general election or general city election through June 30 of that year,

 


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Κ report each campaign contribution in excess of $100 received during the period and contributions received during the period from a contributor which cumulatively exceed $100. The report must be completed on the form designed and provided by the Secretary of State pursuant to NRS 294A.373. The form must be signed by the person or a representative of the committee [,] or political party [or business entity] under penalty of perjury.

      3.  The name and address of the contributor and the date on which the contribution was received must be included on the report for each contribution in excess of $100 and contributions which a contributor has made cumulatively in excess of $100 since the beginning of the current reporting period.

      4.  Every person, committee [,] or political party [or business entity] described in subsection 1 which makes an expenditure on behalf of a candidate for office at a primary election, primary city election, general election or general city election or on behalf of a group of such candidates shall, if the general election or general city election for the office for which the candidate or a candidate in the group of candidates seeks election is held on or after July 1 and before the January 1 immediately following that July 1, not later than:

      (a) Seven days before the primary election or primary city election for that office, for the period from the January 1 immediately preceding the primary election or primary city election through 12 days before the primary election or primary city election; and

      (b) Seven days before the general election or general city election for that office, for the period from 11 days before the primary election or primary city election through 12 days before the general election or general city election,

Κ report each campaign contribution in excess of $100 received during the period and contributions received during the period from a contributor which cumulatively exceed $100. The report must be completed on the form designed and provided by the Secretary of State pursuant to NRS 294A.373. The form must be signed by the person or a representative of the committee [,] or political party [or business entity] under penalty of perjury.

      5.  Except as otherwise provided in subsection 6, every person, committee [,] or political party [or business entity] described in subsection 1 which makes an expenditure on behalf of a candidate for office at a special election or on behalf of a group of such candidates shall, not later than:

      (a) Seven days before the special election for the office for which the candidate or a candidate in the group of candidates seeks election, for the period from the nomination of the candidate through 12 days before the special election; and

      (b) Thirty days after the special election, for the remaining period through the special election,

Κ report each campaign contribution in excess of $100 received during the period and contributions received during the period from a contributor which cumulatively exceed $100. The report must be completed on the form designed and provided by the Secretary of State pursuant to NRS 294A.373. The form must be signed by the person or a representative of the committee [,] or political party [or business entity] under penalty of perjury.

 


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      6.  Every person, committee [,] or political party [or business entity] described in subsection 1 which makes an expenditure on behalf of a candidate for office at a special election to determine whether a public officer will be recalled or on behalf of a group of candidates for offices at such special elections shall report each contribution in excess of $100 received during the period and contributions received during the period from a contributor which cumulatively exceed $100. The report must be completed on the form designed and provided by the Secretary of State pursuant to NRS 294A.373 and signed by the person or a representative of the committee [,] or political party [or business entity] under penalty of perjury, 30 days after:

      (a) The special election, for the period from the filing of the notice of intent to circulate the petition for recall through the special election; or

      (b) If the special election is not held because a district court determines that the petition for recall is legally insufficient pursuant to subsection 6 of NRS 306.040, for the period from the filing of the notice of intent to circulate the petition for recall through the date of the district court’s decision.

      7.  The reports of contributions required pursuant to this section must be filed with:

      (a) If the candidate is elected from one county, the county clerk of that county;

      (b) If the candidate is elected from one city, the city clerk of that city; or

      (c) If the candidate is elected from more than one county or city, the Secretary of State.

      8.  A person [or entity] , committee or political party may file the report with the appropriate officer by regular mail, certified mail, facsimile machine or electronic means. A report shall be deemed to be filed with the officer:

      (a) On the date that it was mailed if it was sent by certified mail; or

      (b) On the date that it was received by the officer if the report was sent by regular mail, transmitted by facsimile machine or electronic means, or delivered personally.

      9.  Each county clerk or city clerk who receives a report pursuant to this section shall file a copy of the report with the Secretary of State within 10 working days after receiving the report.

      10.  Every person, committee [,] or political party [or business entity] described in subsection 1 shall file a report required by this section even if the person, committee [,] or political party [or business entity] receives no contributions.

      Sec. 45. NRS 294A.150 is hereby amended to read as follows:

      294A.150  1.  Except as otherwise provided in NRS 294A.283, every person or group of persons organized formally or informally [, including a business entity,] who advocates the passage or defeat of a question or group of questions on the ballot at a primary election, primary city election, general election or general city election and who receives or expends money in an amount in excess of $10,000 to advocate the passage or defeat of such question or group of questions shall, not later than January 15 of each year that the provisions of this subsection apply to the person [,] or group of persons , [or business entity,] for the period from January 1 of the previous year through December 31 of the previous year, report each campaign contribution in excess of $1,000 received during that period and contributions received during the period from a contributor which cumulatively exceed $1,000.

 


…………………………………………………………………………………………………………………

κ2011 Statutes of Nevada, Page 3292 (CHAPTER 501, AB 81)κ

 

year through December 31 of the previous year, report each campaign contribution in excess of $1,000 received during that period and contributions received during the period from a contributor which cumulatively exceed $1,000. The report must be completed on the form designed and provided by the Secretary of State pursuant to NRS 294A.373. The form must be signed by the person or a representative of the group [or business entity] under penalty of perjury. The provisions of this subsection apply to the person [,] or group of persons : [or business entity:]

      (a) Each year in which:

             (1) An election or city election is held for each question for which the person [,] or group of persons [or business entity] advocates passage or defeat; or

             (2) A person [,] or group of persons [or business entity] receives or expends money in excess of $10,000 to advocate the passage or defeat of a question or group of questions on the ballot at a primary election, primary city election, general election or general city election; and

      (b) The year after each year described in paragraph (a).

      2.  If a question is on the ballot at a primary election or primary city election and the general election or general city election immediately following that primary election or primary city election is held on or after January 1 and before the July 1 immediately following that January 1, every person or group of persons organized formally or informally [, including a business entity,] who advocates the passage or defeat of the question or a group of questions that includes the question and who receives or expends money in an amount in excess of $10,000 to advocate the passage or defeat of such question or group of questions shall comply with the requirements of this subsection. If a question is on the ballot at a general election or general city election held on or after January 1 and before the July 1 immediately following that January 1, every person or group of persons organized formally or informally [, including a business entity,] who advocates the passage or defeat of the question or a group of questions that includes the question and who receives or expends money in an amount in excess of $10,000 to advocate the passage or defeat of such question or group of questions shall comply with the requirements of this subsection. A person [,] or group of persons [or business entity] described in this subsection shall, not later than:

      (a) Seven days before the primary election or primary city election, for the period from the January 1 immediately preceding the primary election or primary city election through 12 days before the primary election or primary city election;

      (b) Seven days before the general election or general city election, for the period from 11 days before the primary election or primary city election through 12 days before the general election or general city election; and

      (c) July 15 of the year of the general election or general city election, for the period from 11 days before the general election or general city election through June 30 of that year,

Κ report each campaign contribution in excess of $1,000 received during the period and contributions received during the period from a contributor which cumulatively exceed $1,000. The report must be completed on the form designed and provided by the Secretary of State pursuant to NRS 294A.373 and signed by the person or a representative of the group [or business entity] under penalty of perjury.

 


…………………………………………………………………………………………………………………

κ2011 Statutes of Nevada, Page 3293 (CHAPTER 501, AB 81)κ

 

      3.  The name and address of the contributor and the date on which the contribution was received must be included on the report for each contribution in excess of $1,000 and contributions which a contributor has made cumulatively in excess of that amount since the beginning of the current reporting period.

      4.  If a question is on the ballot at a primary election or primary city election and the general election or general city election immediately following that primary election or primary city election is held on or after July 1 and before the January 1 immediately following that July 1, every person or group of persons organized formally or informally [, including a business entity,] who advocates the passage or defeat of the question or a group of questions that includes the question and who receives or expends money in an amount in excess of $10,000 to advocate the passage or defeat of such question or group of questions shall comply with the requirements of this subsection. Except as otherwise provided in NRS 294A.283, if a question is on the ballot at a general election or general city election held on or after July 1 and before the January 1 immediately following that July 1, every person or group of persons organized formally or informally [, including a business entity,] who advocates the passage or defeat of the question or a group of questions that includes the question and who receives or expends money in an amount in excess of $10,000 to advocate the passage or defeat of such question or group of questions shall comply with the requirements of this subsection. A person [,] or group of persons [or business entity] described in this subsection shall, not later than:

      (a) Seven days before the primary election or primary city election, for the period from the January 1 immediately preceding the primary election or primary city election through 12 days before the primary election or primary city election; and

      (b) Seven days before the general election or general city election, for the period from 11 days before the primary election or primary city election through 12 days before the general election or general city election,

Κ report each campaign contribution in excess of $1,000 received during the period and contributions received during the period from a contributor which cumulatively exceed $1,000. The report must be completed on the form designed and provided by the Secretary of State pursuant to NRS 294A.373. The form must be signed by the person or a representative of the group [or business entity] under penalty of perjury.

      5.  Except as otherwise provided in subsection 6, every person or group of persons organized formally or informally [, including a business entity,] who advocates the passage or defeat of a question or group of questions on the ballot at a special election and who receives or expends money in an amount in excess of $10,000 to advocate the passage or defeat of such question or group of questions shall, not later than:

      (a) Seven days before the special election, for the period from the date that the question qualified for the ballot through 12 days before the special election; and

      (b) Thirty days after the special election, for the remaining period through the special election,

Κ report each campaign contribution in excess of $1,000 received during the period and contributions received during the period from a contributor which cumulatively exceed $1,000.

 


…………………………………………………………………………………………………………………

κ2011 Statutes of Nevada, Page 3294 (CHAPTER 501, AB 81)κ

 

cumulatively exceed $1,000. The report must be completed on the form designed and provided by the Secretary of State pursuant to NRS 294A.373. The form must be signed by the person or a representative of the group [or business entity] under penalty of perjury.

      6.  Every person or group of persons organized formally or informally [, including a business entity,] who advocates the passage or defeat of a question or group of questions on the ballot at a special election to determine whether a public officer will be recalled and who receives or expends money in an amount in excess of $10,000 to advocate the passage or defeat of such question or group of questions shall report each of the contributions received on the form designed and provided by the Secretary of State pursuant to NRS 294A.373 and signed by the person or a representative of the group [or business entity] under penalty of perjury, 30 days after:

      (a) The special election, for the period from the filing of the notice of intent to circulate the petition for recall through the special election; or

      (b) If the special election is not held because a district court determines that the petition for recall is legally insufficient pursuant to subsection 6 of NRS 306.040, for the period from the filing of the notice of intent to circulate the petition for recall through the date of the district court’s decision.

      7.  The reports required pursuant to this section must be filed with:

      (a) If the question is submitted to the voters of one county, the county clerk of that county;

      (b) If the question is submitted to the voters of one city, the city clerk of that city; or

      (c) If the question is submitted to the voters of more than one county or city, the Secretary of State.

      8.  A person may mail or transmit the report to the appropriate officer by regular mail, certified mail, facsimile machine or electronic means. A report shall be deemed to be filed with the officer:

      (a) On the date that it was mailed if it was sent by certified mail; or

      (b) On the date that it was received by the officer if the report was sent by regular mail, transmitted by facsimile machine or electronic means, or delivered personally.

      9.  If the person or group of persons [, including a business entity,] is advocating passage or defeat of a group of questions, the reports must be itemized by question or petition.

      10.  Each county clerk or city clerk who receives a report pursuant to this section shall file a copy of the report with the Secretary of State within 10 working days after receiving the report.

      Sec. 46. (Deleted by amendment.)

      Sec. 47. NRS 294A.210 is hereby amended to read as follows:

      294A.210  1.  Every person who is not under the direction or control of a candidate for an office at a primary election, primary city election, general election or general city election, of a group of such candidates or of any person involved in the campaign of that candidate or group who makes an expenditure on behalf of the candidate or group which is not solicited or approved by the candidate or group, and every committee for political action, political party [,] or committee sponsored by a political party [or business entity] which receives contributions in excess of $100 or makes an expenditure on behalf of such a candidate or group of candidates shall, not later than January 15 of each year that the provisions of this subsection apply to the person, committee [,] or political party , [or business entity,] for the period from January 1 of the previous year through December 31 of the previous year, report each expenditure made during the period on behalf of the candidate, the group of candidates or a candidate in the group of candidates in excess of $100 on the form designed and provided by the Secretary of State pursuant to NRS 294A.373.

 


…………………………………………………………………………………………………………………

κ2011 Statutes of Nevada, Page 3295 (CHAPTER 501, AB 81)κ

 

later than January 15 of each year that the provisions of this subsection apply to the person, committee [,] or political party , [or business entity,] for the period from January 1 of the previous year through December 31 of the previous year, report each expenditure made during the period on behalf of the candidate, the group of candidates or a candidate in the group of candidates in excess of $100 on the form designed and provided by the Secretary of State pursuant to NRS 294A.373. The form must be signed by the person or a representative of the committee [,] or political party [or business entity] under penalty of perjury. The provisions of this subsection apply to the person, committee [,] or political party [or business entity] beginning the year of the general election or general city election for that office through the year immediately preceding the next general election or general city election for that office.

      2.  Every person, committee [,] or political party [or business entity] described in subsection 1 which makes an expenditure on behalf of a candidate for office at a primary election, primary city election, general election or general city election or a group of such candidates shall, if the general election or general city election for the office for which the candidate or a candidate in the group of candidates seeks election is held on or after January 1 and before the July 1 immediately following that January 1, not later than:

      (a) Seven days before the primary election or primary city election for that office, for the period from the January 1 immediately preceding the primary election or primary city election through 12 days before the primary election or primary city election;

      (b) Seven days before the general election or general city election for that office, for the period from 11 days before the primary election or primary city election through 12 days before the general election or general city election; and

      (c) July 15 of the year of the general election or general city election for that office, for the period from 11 days before the general election or general city election through the June 30 of that year,

Κ report each expenditure made during the period on behalf of the candidate, the group of candidates or a candidate in the group of candidates in excess of $100 on the form designed and provided by the Secretary of State pursuant to NRS 294A.373. The form must be signed by the person or a representative of the committee [,] or political party [or business entity] under penalty of perjury.

      3.  Every person, committee [,] or political party [or business entity] described in subsection 1 which makes an expenditure on behalf of a candidate for office at a primary election, primary city election, general election or general city election or on behalf of a group of such candidates shall, if the general election or general city election for the office for which the candidate or a candidate in the group of candidates seeks election is held on or after July 1 and before the January 1 immediately following that July 1, not later than:

      (a) Seven days before the primary election or primary city election for that office, for the period from the January 1 immediately preceding the primary election or primary city election through 12 days before the primary election or primary city election; and

 


…………………………………………………………………………………………………………………

κ2011 Statutes of Nevada, Page 3296 (CHAPTER 501, AB 81)κ

 

      (b) Seven days before the general election or general city election for that office, for the period from 11 days before the primary election or primary city election through 12 days before the general election or general city election,

Κ report each expenditure made during the period on behalf of the candidate, the group of candidates or a candidate in the group of candidates in excess of $100 on the form designed and provided by the Secretary of State pursuant to NRS 294A.373. The form must be signed by the person or a representative of the committee [,] or political party [or business entity] under penalty of perjury.

      4.  Except as otherwise provided in subsection 5, every person, committee [,] or political party [or business entity] described in subsection 1 which makes an expenditure on behalf of a candidate for office at a special election or on behalf of a group of such candidates shall, not later than:

      (a) Seven days before the special election for the office for which the candidate or a candidate in the group of candidates seeks election, for the period from the nomination of the candidate through 12 days before the special election; and

      (b) Thirty days after the special election, for the remaining period through the special election,

Κ report each expenditure made during the period on behalf of the candidate, the group of candidates or a candidate in the group of candidates in excess of $100 on the form designed and provided by the Secretary of State pursuant to NRS 294A.373. The form must be signed by the person or a representative of the committee [,] or political party [or business entity] under penalty of perjury.

      5.  Every person, committee [,] or political party [or business entity] described in subsection 1 which makes an expenditure on behalf of a candidate for office at a special election to determine whether a public officer will be recalled or on behalf of a group of such candidates shall list each expenditure made on behalf of the candidate, the group of candidates or a candidate in the group of candidates in excess of $100 on the form designed and provided by the Secretary of State pursuant to NRS 294A.373 and signed by the person or a representative of the committee [,] or political party [or business entity] under penalty of perjury, 30 days after:

      (a) The special election, for the period from the filing of the notice of intent to circulate the petition for recall through the special election; or

      (b) If the special election is not held because a district court determines that the petition for recall is legally insufficient pursuant to subsection 6 of NRS 306.040, for the period from the filing of the notice of intent to circulate the petition for recall through the date of the district court’s decision.

      6.  Expenditures made within the State or made elsewhere but for use within the State, including expenditures made outside the State for printing, television and radio broadcasting or other production of the media, must be included in the report.

      7.  The reports must be filed with:

      (a) If the candidate is elected from one county, the county clerk of that county;

      (b) If the candidate is elected from one city, the city clerk of that city; or

      (c) If the candidate is elected from more than one county or city, the Secretary of State.

 


…………………………………………………………………………………………………………………

κ2011 Statutes of Nevada, Page 3297 (CHAPTER 501, AB 81)κ

 

      8.  If an expenditure is made on behalf of a group of candidates, the reports must be itemized by the candidate. A person may mail or transmit the report to the appropriate officer by regular mail, certified mail, facsimile machine or electronic means. A report shall be deemed to be filed with the officer:

      (a) On the date that it was mailed if it was sent by certified mail; or

      (b) On the date that it was received by the officer if the report was sent by regular mail, transmitted by facsimile machine or electronic means, or delivered personally.

      9.  Each county clerk or city clerk who receives a report pursuant to this section shall file a copy of the report with the Secretary of State within 10 working days after receiving the report.

      10.  Every person, committee [,] or political party [or business entity] described in subsection 1 shall file a report required by this section even if the person, committee [,] or political party [or business entity] receives no contributions.

      Sec. 48. NRS 294A.220 is hereby amended to read as follows:

      294A.220  1.  Except as otherwise provided in NRS 294A.283, every person or group of persons organized formally or informally [, including a business entity,] who advocates the passage or defeat of a question or group of questions on the ballot at a primary election, primary city election, general election or general city election and who receives or expends money in an amount in excess of $10,000 to advocate the passage or defeat of such question or group of questions shall, not later than January 15 of each year that the provisions of this subsection apply to the person or group of persons, for the period from January 1 of the previous year through December 31 of the previous year, report each expenditure made during the period on behalf of or against the question, the group of questions or a question in the group of questions on the ballot in excess of $1,000 on the form designed and provided by the Secretary of State pursuant to NRS 294A.373. The form must be signed by the person or a representative of the group [or business entity] under penalty of perjury. The provisions of this subsection apply to the person [,] or group of persons : [or business entity:]

      (a) Each year in which:

             (1) An election or city election is held for a question for which the person [,] or group of persons [or business entity] advocates passage or defeat; or

             (2) A person [,] or group of persons [or business entity] receives or expends money in excess of $10,000 to advocate the passage or defeat of a question or group of questions on the ballot at a primary election, primary city election, general election or general city election; and

      (b) The year after each year described in paragraph (a).

      2.  If a question is on the ballot at a primary election or primary city election and the general election or general city election immediately following that primary election or primary city election is held on or after January 1 and before the July 1 immediately following that January 1, every person or group of persons organized formally or informally [, including a business entity,] who advocates the passage or defeat of the question or a group of questions that includes the question and who receives or expends money in an amount in excess of $10,000 to advocate the passage or defeat of such question or group of questions shall comply with the requirements of this subsection. If a question is on the ballot at a general election or general city election held on or after January 1 and before the July 1 immediately following that January 1, every person or group of persons organized formally or informally [, including a business entity,] who advocates the passage or defeat of the question or a group of questions that includes the question and who receives or expends money in an amount in excess of $10,000 to advocate the passage or defeat of such question or group of questions shall comply with the requirements of this subsection.

 


…………………………………………………………………………………………………………………

κ2011 Statutes of Nevada, Page 3298 (CHAPTER 501, AB 81)κ

 

city election held on or after January 1 and before the July 1 immediately following that January 1, every person or group of persons organized formally or informally [, including a business entity,] who advocates the passage or defeat of the question or a group of questions that includes the question and who receives or expends money in an amount in excess of $10,000 to advocate the passage or defeat of such question or group of questions shall comply with the requirements of this subsection. A person [,] or group of persons [or business entity] described in this subsection shall, not later than:

      (a) Seven days before the primary election or primary city election, for the period from the January 1 immediately preceding the primary election or primary city election through 12 days before the primary election or primary city election;

      (b) Seven days before the general election or general city election, for the period from 11 days before the primary election or primary city election through 12 days before the general election or general city election; and

      (c) July 15 of the year of the general election or general city election, for the period from 11 days before the general election or general city election through the June 30 immediately preceding that July 15,

Κ report each expenditure made during the period on behalf of or against the question, the group of questions or a question in the group of questions on the ballot in excess of $1,000 on the form designed and provided by the Secretary of State pursuant to NRS 294A.373 and signed by the person or a representative of the group [or business entity] under penalty of perjury.

      3.  If a question is on the ballot at a primary election or primary city election and the general election or general city election immediately following that primary election or primary city election is held on or after July 1 and before the January 1 immediately following that July 1, every person or group of persons organized formally or informally [, including a business entity,] who advocates the passage or defeat of the question or a group of questions that includes the question and who receives or expends money in an amount in excess of $10,000 to advocate the passage or defeat of such question or group of questions shall comply with the requirements of this subsection. Except as otherwise provided in NRS 294A.283, if a question is on the ballot at a general election or general city election held on or after July 1 and before the January 1 immediately following that July 1, every person or group of persons organized formally or informally [, including a business entity,] who advocates the passage or defeat of the question or a group of questions that includes the question and who receives or expends money in an amount in excess of $10,000 to advocate the passage or defeat of such question or group of questions shall comply with the requirements of this subsection. A person [,] or group of persons [or business entity] described in this subsection shall, not later than:

      (a) Seven days before the primary election or primary city election, for the period from the January 1 immediately preceding the primary election or primary city election through 12 days before the primary election or primary city election; and

      (b) Seven days before the general election or general city election, for the period from 11 days before the primary election or primary city election through 12 days before the general election or general city election,

 


…………………………………………………………………………………………………………………

κ2011 Statutes of Nevada, Page 3299 (CHAPTER 501, AB 81)κ

 

Κ report each expenditure made during the period on behalf of or against the question, the group of questions or a question in the group of questions on the ballot in excess of $1,000 on the form designed and provided by the Secretary of State pursuant to NRS 294A.373. The form must be signed by the person or a representative of the group [or business entity] under penalty of perjury.

      4.  Except as otherwise provided in subsection 5, every person or group of persons organized formally or informally [, including a business entity,] who advocates the passage or defeat of a question or group of questions on the ballot at a special election shall, not later than:

      (a) Seven days before the special election, for the period from the date the question qualified for the ballot through 12 days before the special election; and

      (b) Thirty days after the special election, for the remaining period through the special election,

Κ report each expenditure made during the period on behalf of or against the question, the group of questions or a question in the group of questions on the ballot in excess of $1,000 on the form designed and provided by the Secretary of State pursuant to NRS 294A.373. The form must be signed by the person or a representative of the group [or business entity] under penalty of perjury.

      5.  Every person or group of persons organized formally or informally [, including a business entity,] who advocates the passage or defeat of a question or group of questions on the ballot at a special election to determine whether a public officer will be recalled and who receives or expends money in an amount in excess of $10,000 to advocate the passage or defeat of such question or group of questions shall list each expenditure made during the period on behalf of or against the question, the group of questions or a question in the group of questions on the ballot in excess of $1,000 on the form designed and provided by the Secretary of State pursuant to NRS 294A.373 and signed by the person or a representative of the group [or business entity] under penalty of perjury, 30 days after:

      (a) The special election, for the period from the filing of the notice of intent to circulate the petition for recall through the special election; or

      (b) If the special election is not held because a district court determines that the petition for recall is legally insufficient pursuant to subsection 6 of NRS 306.040, for the period from the filing of the notice of intent to circulate the petition for recall through the date of the district court’s decision.

      6.  Expenditures made within the State or made elsewhere but for use within the State, including expenditures made outside the State for printing, television and radio broadcasting or other production of the media, must be included in the report.

      7.  The reports required pursuant to this section must be filed with:

      (a) If the question is submitted to the voters of one county, the county clerk of that county;

      (b) If the question is submitted to the voters of one city, the city clerk of that city; or

      (c) If the question is submitted to the voters of more than one county or city, the Secretary of State.

 


…………………………………………………………………………………………………………………

κ2011 Statutes of Nevada, Page 3300 (CHAPTER 501, AB 81)κ

 

      8.  If an expenditure is made on behalf of a group of questions, the reports must be itemized by question or petition. A person may mail or transmit the report to the appropriate filing officer by regular mail, certified mail, facsimile machine or electronic means. A report shall be deemed to be filed with the filing officer:

      (a) On the date that it was mailed if it was sent by certified mail; or

      (b) On the date that it was received by the filing officer if the report was sent by regular mail, transmitted by facsimile machine or electronic means, or delivered personally.

      9.  Each county clerk or city clerk who receives a report pursuant to this section shall file a copy of the report with the Secretary of State within 10 working days after receiving the report.

      Sec. 49. NRS 294A.230 is hereby amended to read as follows:

      294A.230  1.  Each committee for political action shall, before it engages in any activity in this State, register with the Secretary of State on forms supplied by the Secretary of State.

      2.  The form must require:

      (a) The name of the committee;

      (b) The purpose for which it was organized;

      (c) The names, addresses and telephone numbers of its officers;

      (d) If the committee for political action is affiliated with any other organizations, the name, address and telephone number of each organization;

      (e) The name, address and telephone number of its registered agent; and

      (f) Any other information deemed necessary by the Secretary of State.

      3.  A committee for political action shall file with the Secretary of State an amended form for registration within 30 days after any change in the information contained in the form for registration.

      4.  The Secretary of State shall include on the Secretary of State’s Internet website the information required pursuant to subsection 2.

      5.  For purposes of the civil penalty that the Secretary of State may impose pursuant to NRS 294A.420 for violating the provisions of subsection 1, if a committee for political action fails to register with the Secretary of State pursuant to subsection 1, each time a committee for political action engages in any activity in this State constitutes a separate violation of subsection 1 for which the Secretary of State may impose a civil penalty.

      Sec. 50. NRS 294A.281 is hereby amended to read as follows:

      294A.281  1.  Each person or group of persons organized formally or informally [, including a business entity,] who advocates the passage or defeat of a constitutional amendment or statewide measure proposed by an initiative or referendum, before engaging in any such advocacy in this State, shall file a statement of organization with the Secretary of State as provided in subsection 2.

      2.  Each statement of organization must include:

      (a) The name of the person [,] or group of persons ; [or business entity;]

      (b) The purpose for which the person [,] or group of persons [or business entity] is organized;

      (c) The names and addresses of any officers of the person [,] or group of persons ; [or business entity;]

      (d) If the person [,] or group of persons [or business entity] is affiliated with or is retained by any other person [,] or group [or business entity] for the purpose of advocating the passage or defeat of a constitutional amendment or statewide measure proposed by initiative or referendum, the name and address of each such other person [,] or group ; [or business entity;] and

 


…………………………………………………………………………………………………………………

κ2011 Statutes of Nevada, Page 3301 (CHAPTER 501, AB 81)κ

 

amendment or statewide measure proposed by initiative or referendum, the name and address of each such other person [,] or group ; [or business entity;] and

      (e) The name, address and telephone number of the registered agent of the person [,] or group of persons . [or business entity.]

      3.  A person [,] or group of persons [or business entity] which has filed a statement of organization pursuant to this section shall file an amended statement with the Secretary of State within 30 days of any changes to the information required pursuant to subsection 2.

      Sec. 51. NRS 294A.282 is hereby amended to read as follows:

      294A.282  Each person or group of persons organized formally or informally [, including a business entity,] who advocates the passage or defeat of a constitutional amendment or statewide measure proposed by an initiative or referendum shall appoint and keep within this State a registered agent, as provided in NRS 14.020, who must be a natural person who resides in this State.

      Sec. 52. NRS 294A.283 is hereby amended to read as follows:

      294A.283  1.  Every person or group of persons organized formally or informally [, including a business entity,] who advocates the passage or defeat of a constitutional amendment or statewide measure proposed by an initiative or referendum, including, without limitation, the initiation or circulation thereof, and who receives or expends money in an amount in excess of $10,000 for such advocacy shall, not later than the dates listed in subsection 2, report:

      (a) Each campaign contribution in excess of $1,000 received during each period described in subsection 2;

      (b) Contributions received during each period described in subsection 2 from a contributor which cumulatively exceed $1,000;

      (c) Each expenditure in excess of $1,000 the person [,] or group of persons [or business entity] makes during each period described in subsection 2; and

      (d) The total amount of money the person [,] or group of persons [or business entity] has at the beginning of each period described in subsection 2, accounting for all contributions received and expenditures made during each previous period.

      2.  Every person [,] or group of persons [or business entity] required to report pursuant to subsection 1 shall file that report with the Secretary of State:

      (a) For the period beginning on the first day a copy of the petition may be filed with the Secretary of State before it is circulated for signatures pursuant to Section 1 or Section 2 of Article 19 of the Nevada Constitution, as applicable, and ending on the following March 31, not later than April 15;

      (b) For the period beginning on April 1 and ending on July 31, not later than August 15;

      (c) For the period beginning on August 1 and ending on September 30, not later than October 15; and

      (d) For the period beginning on October 1 and ending on December 31, not later than the following January 15.

      3.  The name and address of the contributor and the date on which the contribution was received must be included on each report for each contribution in excess of $1,000 and contributions which a contributor has made cumulatively in excess of that amount since the beginning of the applicable reporting period.

 


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contribution in excess of $1,000 and contributions which a contributor has made cumulatively in excess of that amount since the beginning of the applicable reporting period.

      4.  Expenditures made within the State or made elsewhere but for use within the State, including expenditures made outside the State for printing, television and radio broadcasting or other production of the media, must be included in each report.

      5.  Each report required pursuant to this section must:

      (a) Be on the form designed and provided by the Secretary of State pursuant to NRS 294A.373; and

      (b) Be signed by the person or a representative of the group of persons [or business entity] under penalty of perjury.

      6.  A person [,] or group of persons [or business entity] may mail or transmit each report to the Secretary of State by certified mail, regular mail, facsimile machine or electronic means or may deliver the report personally.

      7.  A report shall be deemed to be filed with the Secretary of State:

      (a) On the date that it was mailed if it was sent by certified mail; or

      (b) On the date that it was received by the Secretary of State if the report was sent by regular mail, transmitted by facsimile machine or electronic means, or delivered personally.

      Sec. 53. NRS 294A.284 is hereby amended to read as follows:

      294A.284  1.  Each person or group of persons organized formally or informally [, including a business entity,] who advocates the passage or defeat of a constitutional amendment or statewide measure proposed by an initiative or referendum that provides compensation to persons to circulate petitions shall report to the Secretary of State:

      (a) The number of persons to whom such compensation is provided;

      (b) The least amount of such compensation that is provided and the greatest amount of such compensation that is provided; and

      (c) The total amount of compensation provided.

      2.  The Secretary of State shall make public any information received pursuant to this section.

      Sec. 54. NRS 294A.286 is hereby amended to read as follows:

      294A.286  1.  Any candidate or public officer may establish a legal defense fund. A person who administers a legal defense fund shall:

      (a) Within 5 days after the creation of the legal defense fund, notify the Secretary of State of the creation of the fund on a form provided by the Secretary of State; and

      (b) For the same period covered by the report filed pursuant to NRS 294A.120, 294A.200 or 294A.360, report any contribution received by or expenditure made from the legal defense fund.

      2.  The reports required by paragraph (b) of subsection 1 must be submitted on the form designed and provided by the Secretary of State pursuant to NRS 294A.373. Each form must be signed by the administrator of the legal defense fund under penalty of perjury.

      3.  The reports required by paragraph (b) of subsection 1 must be filed in the same manner and at the same time as the report filed pursuant to NRS 294A.120, 294A.200 or 294A.360.

      4.  Notwithstanding the provisions of this section, a candidate or public officer may use campaign contributions to pay for any legal expenses that the candidate or public officer incurs in relation to a campaign or serving in public office without establishing a legal defense fund.

 


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fund. Any such candidate or public officer shall report any expenditure of campaign contributions to pay for legal expenses in the same manner and at the same time as the report filed pursuant to NRS 294A.120, 294A.200 or 294A.360. A candidate or public officer shall not use campaign contributions to satisfy a civil or criminal penalty imposed by law.

      Sec. 55. NRS 294A.347 is hereby amended to read as follows:

      294A.347  1.  A statement which:

      (a) Is published within 60 days before a general election, general city election or special election or 30 days before a primary election or primary city election;

      (b) Expressly advocates the election or defeat of a clearly identified candidate for a state or local office; and

      (c) Is published by a person who receives compensation from the candidate, an opponent of the candidate, or a person, party [,] or committee [or business entity] required to report expenditures pursuant to NRS 294A.210,

Κ must contain a disclosure of the fact that the person receives compensation pursuant to paragraph (c) and the name of the person, party [,] or committee [or business entity] providing that compensation.

      2.  A statement which:

      (a) Is published by a candidate within 60 days before a general election, general city election or special election or 30 days before a primary election or primary city election; and

      (b) Contains the name of the candidate,

Κ shall be deemed to comply with the provisions of this section.

      3.  As used in this section, “publish” means the act of:

      (a) Printing, posting, broadcasting, mailing or otherwise disseminating; or

      (b) Causing to be printed, posted, broadcasted, mailed or otherwise disseminated.

      Sec. 56. NRS 294A.350 is hereby amended to read as follows:

      294A.350  1.  Every candidate for state, district, county, municipal or township office shall file the reports of campaign contributions and expenses required by NRS 294A.120, 294A.128, 294A.200 and 294A.360 and reports of contributions received by and expenditures made from a legal defense fund or used to pay legal expenses required by NRS 294A.286, even though the candidate:

      (a) Withdraws his or her candidacy;

      (b) Receives no campaign contributions;

      (c) Has no campaign expenses;

      (d) Is removed from the ballot by court order; or

      (e) Is the subject of a petition to recall and the special election is not held.

      2.  A candidate who withdraws his or her candidacy pursuant to NRS 293.202 may file simultaneously all the reports of campaign contributions and expenses required by NRS 294A.120, 294A.128, 294A.200 and 294A.360 and the report of contributions received by and expenditures made from a legal defense fund or used to pay legal expenses required by NRS 294A.286, so long as each report is filed on or before the last day for filing the respective report pursuant to NRS 294A.120, 294A.200 or 294A.360.

      Sec. 57. (Deleted by amendment.)

 


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      Sec. 58. NRS 294A.365 is hereby amended to read as follows:

      294A.365  1.  Each report of expenditures required pursuant to NRS 294A.210, 294A.220, 294A.280 and 294A.283 must consist of a list of each expenditure in excess of $100 or $1,000, as is appropriate, that was made during the periods for reporting. Each report of expenses required pursuant to NRS 294A.125 and 294A.200 must consist of a list of each expense in excess of $100 that was incurred during the periods for reporting. The list in each report must state the category and amount of the expense or expenditure and the date on which the expense was incurred or the expenditure was made.

      2.  The categories of expense or expenditure for use on the report of expenses or expenditures are:

      (a) Office expenses;

      (b) Expenses related to volunteers;

      (c) Expenses related to travel;

      (d) Expenses related to advertising;

      (e) Expenses related to paid staff;

      (f) Expenses related to consultants;

      (g) Expenses related to polling;

      (h) Expenses related to special events;

      (i) Expenses related to a legal defense fund;

      (j) Except as otherwise provided in NRS 294A.362, goods and services provided in kind for which money would otherwise have been paid;

      (k) Contributions made to another candidate, a nonprofit corporation that is registered or required to be registered pursuant to NRS 294A.225, a committee for political action that is registered or required to be registered pursuant to NRS 294A.230 or a committee for the recall of a public officer that is registered or required to be registered pursuant to NRS 294A.250; and

      [(j)](l)Other miscellaneous expenses.

      3.  Each report of expenses or expenditures described in subsection 1 must list the disposition of any unspent campaign contributions using the categories set forth in subsection 2 of NRS 294A.160.

      Sec. 59. NRS 294A.373 is hereby amended to read as follows:

      294A.373  1.  The Secretary of State shall design a single form to be used for all reports of campaign contributions and expenses or expenditures that are required to be filed pursuant to NRS 294A.120, 294A.125, 294A.128, 294A.140, 294A.150, 294A.200, 294A.210, 294A.220, 294A.270, 294A.280, 294A.283, 294A.360 and 294A.362 and reports of contributions received by and expenditures made from a legal defense fund or used to pay legal expenses that are required to be filed pursuant to NRS 294A.286.

      2.  The form designed by the Secretary of State pursuant to this section must only request information specifically required by statute.

      3.  Upon request, the Secretary of State shall provide a copy of the form designed pursuant to this section to each person, committee, political party [,] and group [and business entity] that is required to file a report described in subsection 1.

      4.  The Secretary of State must obtain the advice and consent of the Legislative Commission before providing a copy of a form designed or revised by the Secretary of State pursuant to this section to a person, committee, political party [,] or group [or business entity] that is required to use the form.

 


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κ2011 Statutes of Nevada, Page 3305 (CHAPTER 501, AB 81)κ

 

revised by the Secretary of State pursuant to this section to a person, committee, political party [,] or group [or business entity] that is required to use the form.

      Sec. 60. NRS 294A.382 is hereby amended to read as follows:

      294A.382  The Secretary of State shall not request or require a candidate, person, group of persons, committee [,] or political party [or business entity] to list each of the expenditures or campaign expenses of $100 or less on a form designed and provided pursuant to NRS 294A.373.

      Sec. 61. NRS 294A.390 is hereby amended to read as follows:

      294A.390  The officer from whom a candidate or entity requests a form for:

      1.  A declaration of candidacy;

      2.  An acceptance of candidacy;

      3.  The registration of a committee for political action pursuant to NRS 294A.230 [,] or a committee for the recall of a public officer pursuant to NRS 294A.250 ; [or a business entity that wishes to engage in certain political activity pursuant to NRS 294A.377;]

      4.  The reporting of the creation of a legal defense fund pursuant to NRS 294A.286; or

      5.  The reporting of campaign contributions, expenses or expenditures pursuant to NRS 294A.120, 294A.128, 294A.140, 294A.150, 294A.200, 294A.210, 294A.220, 294A.270, 294A.280, 294A.283 or 294A.360 and the reporting of contributions received by and expenditures made from a legal defense fund or used to pay legal expenses pursuant to NRS 294A.286,

Κ shall furnish the candidate with the necessary forms for reporting and copies of the regulations adopted by the Secretary of State pursuant to this chapter. An explanation of the applicable provisions of NRS 294A.100, 294A.120, 294A.128, 294A.140, 294A.150, 294A.200, 294A.210, 294A.220, 294A.270, 294A.280, 294A.283 or 294A.360 or section 37 of this act relating to the making, accepting or reporting of campaign contributions, expenses or expenditures and the penalties for a violation of those provisions as set forth in NRS 294A.100 or 294A.420, and an explanation of NRS 294A.286 and 294A.287 relating to the accepting or reporting of contributions received by and expenditures made from a legal defense fund or used to pay legal expenses and the penalties for a violation of those provisions as set forth in NRS 294A.287 and 294A.420, must be developed by the Secretary of State and provided upon request. The candidate or entity shall acknowledge receipt of the material.

      Sec. 62. NRS 294A.400 is hereby amended to read as follows:

      294A.400  The Secretary of State shall, within 30 days after receipt of the reports required by NRS 294A.120, 294A.125, 294A.128, 294A.140, 294A.150, 294A.200, 294A.210, 294A.220, 294A.270, 294A.280, 294A.283 and 294A.286, and section 37 of this act, prepare and make available for public inspection a compilation of:

      1.  The total campaign contributions, the contributions which are in excess of $100 and the total campaign expenses of each of the candidates from whom reports of those contributions and expenses are required.

      2.  The total amount of loans to a candidate guaranteed by a third party, the total amount of loans made to a candidate that have been forgiven and the total amount of written commitments for contributions received by a candidate.

 


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κ2011 Statutes of Nevada, Page 3306 (CHAPTER 501, AB 81)κ

 

      3.  The contributions made to a committee for the recall of a public officer in excess of $100.

      4.  The expenditures exceeding $100 made by a:

      (a) Person on behalf of a candidate other than the person.

      (b) Group of persons [or business entity] advocating the election or defeat of a candidate.

      (c) Committee for the recall of a public officer.

      5.  The contributions in excess of $100 made to:

      (a) A person who is not under the direction or control of a candidate or group of candidates or of any person involved in the campaign of the candidate or group who makes an expenditure on behalf of the candidate or group which is not solicited or approved by the candidate or group.

      (b) A committee for political action, political party [,] or committee sponsored by a political party [or business entity] which makes an expenditure on behalf of a candidate or group of candidates.

      6.  The contributions in excess of $1,000 made to and the expenditures exceeding $1,000 made by a:

      (a) Person or group of persons organized formally or informally [, including a business entity] who advocates the passage or defeat of a question or group of questions on the ballot and who receives or expends money in an amount in excess of $10,000 for such advocacy, except as otherwise provided in paragraph (b).

      (b) Person or group of persons organized formally or informally [, including a business entity,] who advocates the passage or defeat of a constitutional amendment or statewide measure proposed by an initiative or referendum, including, without limitation, the initiation or circulation thereof, and who receives or expends money in an amount in excess of $10,000 for such advocacy.

      7.  The total contributions received by and expenditures made from a legal defense fund [.] or used to pay legal expenses.

      Sec. 63. NRS 294A.420 is hereby amended to read as follows:

      294A.420  1.  If the Secretary of State receives information that a person or entity that is subject to the provisions of NRS 294A.120, 294A.128, 294A.140, 294A.150, 294A.200, 294A.210, 294A.220, [294A.227,] 294A.230, 294A.270, 294A.280, 294A.283, 294A.286 or 294A.360 or section 37 of this act has not filed a report or form for registration pursuant to the applicable provisions of those sections, the Secretary of State may, after giving notice to that person or entity, cause the appropriate proceedings to be instituted in the First Judicial District Court.

      2.  Except as otherwise provided in this section, a person or entity that violates an applicable provision of [NRS 294A.112, 294A.120, 294A.128, 294A.130, 294A.140, 294A.150, 294A.160, 294A.200, 294A.210, 294A.220, 294A.227, 294A.230, 294A.270, 294A.280, 294A.283, 294A.286, 294A.300, 294A.310 or 294A.360] this chapter is subject to a civil penalty of not more than $5,000 for each violation and payment of court costs and attorney’s fees. The civil penalty must be recovered in a civil action brought in the name of the State of Nevada by the Secretary of State in the First Judicial District Court and deposited by the Secretary of State for credit to the State General Fund in the bank designated by the State Treasurer.

 


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κ2011 Statutes of Nevada, Page 3307 (CHAPTER 501, AB 81)κ

 

      3.  If a civil penalty is imposed because a person or entity has reported its contributions, expenses or expenditures after the date the report is due, except as otherwise provided in this subsection, the amount of the civil penalty is:

      (a) If the report is not more than 7 days late, $25 for each day the report is late.

      (b) If the report is more than 7 days late but not more than 15 days late, $50 for each day the report is late.

      (c) If the report is more than 15 days late, $100 for each day the report is late.

Κ A civil penalty imposed pursuant to this subsection against a public officer who by law is not entitled to receive compensation for his or her office or a candidate for such an office must not exceed a total of $100 if the public officer or candidate received no contributions and made no expenditures during the relevant reporting periods.

      4.  For good cause shown, the Secretary of State may waive a civil penalty that would otherwise be imposed pursuant to this section. If the Secretary of State waives a civil penalty pursuant to this subsection, the Secretary of State shall:

      (a) Create a record which sets forth that the civil penalty has been waived and describes the circumstances that constitute the good cause shown; and

      (b) Ensure that the record created pursuant to paragraph (a) is available for review by the general public.

      Sec. 64. NRS 295.012 is hereby amended to read as follows:

      295.012  A petition for initiative or referendum that proposes a [statute, an amendment to a statute or an amendment to the Constitution] constitutional amendment or statewide measure must be proposed by a number of registered voters from each petition district in the State that is at least equal to 10 percent of the voters who voted in that petition district at the last preceding general election.

      Sec. 65. NRS 295.0575 is hereby amended to read as follows:

      295.0575  A petition for a constitutional amendment or a petition for a statewide measure proposed by an initiative or referendum may consist of more than one document. Each document of a petition must have attached to it when submitted an affidavit executed by the circulator thereof stating:

      1.  That the circulator personally circulated the document;

      2.  The number of signatures thereon;

      3.  That all the signatures were affixed in the circulator’s presence; [and]

      4.  That each signer had an opportunity before signing to read the full text of the act or resolution on which the initiative or referendum is demanded [.] ;

      5.  The address and contact information of the circulator; and

      6.  That the circulator is 18 years of age or older.

      Sec. 65.5. NRS 281A.600 is hereby amended to read as follows:

      281A.600  1.  Except as otherwise provided in subsection 2, if a public officer who was appointed to the office for which the public officer is serving is entitled to receive annual compensation of $6,000 or more for serving in that office [,] or if the public officer was appointed to the office of Legislator, the public officer shall file with the Commission a statement of financial disclosure, as follows:

 


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κ2011 Statutes of Nevada, Page 3308 (CHAPTER 501, AB 81)κ

 

      (a) A public officer appointed to fill the unexpired term of an elected or appointed public officer shall file a statement of financial disclosure within 30 days after the public officer’s appointment.

      (b) Each public officer appointed to fill an office shall file a statement of financial disclosure on or before January 15 of [each] :

             (1) Each year of the term, including the year [the term expires.] in which the public officer leaves office; and

             (2) The year immediately following the year in which the public officer leaves office, unless the public officer leaves office before January 15 in the prior year.

Κ The statement must disclose the required information for the full calendar year immediately preceding the date of filing.

      2.  If a person is serving in a public office for which the person is required to file a statement pursuant to subsection 1, the person may use the statement the person files for that initial office to satisfy the requirements of subsection 1 for every other public office to which the person is appointed and in which the person is also serving.

      3.  A judicial officer who is appointed to fill the unexpired term of a predecessor or to fill a newly created judgeship shall file a statement of financial disclosure pursuant to the requirements of Canon 4I of the Nevada Code of Judicial Conduct. Such a statement of financial disclosure must include, without limitation, all information required to be included in a statement of financial disclosure pursuant to NRS 281A.620.

      4.  The Commission shall provide written notification to the Secretary of State of the public officers who failed to file the statements of financial disclosure required by subsection 1 or who failed to file those statements in a timely manner. The notice must be sent within 30 days after the deadlines set forth in subsection 1 and must include:

      (a) The name of each public officer who failed to file a statement of financial disclosure within the period before the notice is sent;

      (b) The name of each public officer who filed a statement of financial disclosure after the deadlines set forth in subsection 1 but within the period before the notice is sent;

      (c) For the first notice sent after the public officer filed a statement of financial disclosure, the name of each public officer who filed a statement of financial disclosure after the deadlines set forth in subsection 1 but within the period before the notice is sent; and

      (d) For each public officer listed in paragraph (c), the date on which the statement of financial disclosure was due and the date on which the public officer filed the statement.

      5.  In addition to the notice provided pursuant to subsection 4, the Commission shall notify the Secretary of State of each public officer who files a statement of financial disclosure more than 30 days after the deadlines set forth in subsection 1. The notice must include the information described in paragraphs (c) and (d) of subsection 4.

      6.  A statement of financial disclosure shall be deemed to be filed with the Commission:

      (a) On the date that it was mailed if it was sent by certified mail; or

      (b) On the date that it was received by the Commission if the statement was sent by regular mail, transmitted by facsimile machine or electronic means, or delivered personally.

 


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κ2011 Statutes of Nevada, Page 3309 (CHAPTER 501, AB 81)κ

 

      Sec. 66. NRS 281A.610 is hereby amended to read as follows:

      281A.610  1.  Except as otherwise provided in subsection 2, each candidate for public office who will be entitled to receive annual compensation of $6,000 or more for serving in the office that the candidate is seeking , each candidate for the office of Legislator and, except as otherwise provided in subsection 3, each public officer who was elected to the office for which the public officer is serving shall file with the Secretary of State a statement of financial disclosure, as follows:

      (a) A candidate for nomination, election or reelection to public office shall file a statement of financial disclosure no later than the 10th day after the last day to qualify as a candidate for the office. The statement must disclose the required information for the full calendar year immediately preceding the date of filing and for the period between January 1 of the year in which the election for the office will be held and the last day to qualify as a candidate for the office. The filing of a statement of financial disclosure for a portion of a calendar year pursuant to this paragraph does not relieve the candidate of the requirement of filing a statement of financial disclosure for the full calendar year pursuant to paragraph (b) in the immediately succeeding year, if the candidate is elected to the office.

      (b) Each public officer shall file a statement of financial disclosure on or before January 15 of [each] :

             (1) Each year of the term, including the year [the term expires.] in which the public officer leaves office; and

             (2) The year immediately following the year in which the public officer leaves office, unless the public officer leaves office before January 15 in the prior year.

Κ The statement must disclose the required information for the full calendar year immediately preceding the date of filing.

      2.  Except as otherwise provided in this subsection, if a candidate for public office is serving in a public office for which the candidate is required to file a statement pursuant to paragraph (b) of subsection 1 or subsection 1 of NRS 281A.600, the candidate need not file the statement required by subsection 1 for the full calendar year for which the candidate previously filed a statement. The provisions of this subsection do not relieve the candidate of the requirement pursuant to paragraph (a) of subsection 1 to file a statement of financial disclosure for the period between January 1 of the year in which the election for the office will be held and the last day to qualify as a candidate for the office.

      3.  A person elected pursuant to NRS 548.285 to the office of supervisor of a conservation district is not required to file a statement of financial disclosure relative to that office pursuant to subsection 1.

      4.  A candidate for judicial office or a judicial officer shall file a statement of financial disclosure pursuant to the requirements of Canon 4I of the Nevada Code of Judicial Conduct. Such a statement of financial disclosure must include, without limitation, all information required to be included in a statement of financial disclosure pursuant to NRS 281A.620.

      5.  A statement of financial disclosure shall be deemed to be filed with the Secretary of State:

      (a) On the date that it was mailed if it was sent by certified mail; or

      (b) On the date that it was received by the Secretary of State if the statement was sent by regular mail, transmitted by facsimile machine or electronic means, or delivered personally.

 


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κ2011 Statutes of Nevada, Page 3310 (CHAPTER 501, AB 81)κ

 

      6.  The statement of financial disclosure filed pursuant to this section must be filed on the form prescribed by the Commission pursuant to NRS 281A.290.

      7.  The Secretary of State shall prescribe, by regulation, procedures for the submission of statements of financial disclosure filed pursuant to this section, maintain files of such statements and make the statements available for public inspection.

      Sec. 67. Section 5.015 of the Charter of the City of Carlin, being chapter 344, Statutes of Nevada 1971, as added by chapter 493, Statutes of Nevada 2009, at page 2937, is hereby amended to read as follows:

      Sec. 5.015  Filing of declarations of candidacy.

       1.  A candidate to be voted for at the general election must file a declaration of candidacy with the City Clerk [not less than 5 days or more than 15 days before the day of the primary election held pursuant to the provisions of NRS 293.175.] as provided by the election laws of this State. The City Clerk shall charge and collect from the candidate and the candidate must pay to the City Clerk, at the time of filing the declaration of candidacy, a filing fee in an amount fixed by the City Council by ordinance or resolution.

      2.  If, due to the death or ineligibility of or withdrawal by a candidate, a vacancy occurs in a nomination after the close of filing and any applicable period for withdrawal of candidacy, the candidate’s name must remain on the ballot for the general election and, if elected, a vacancy exists.

      Sec. 68. Section 5.015 of the Charter of the City of Wells, being chapter 275, Statutes of Nevada 1971, as added by chapter 493, Statutes of Nevada 2009, at page 2938, is hereby amended to read as follows:

      Sec. 5.015  Filing of declarations of candidacy.

      1.  A candidate to be voted for at the general election must file a declaration of candidacy with the City Clerk [not less than 5 days or more than 15 days before the day of the primary election held pursuant to the provisions of NRS 293.175.] as provided by the election laws of this State. The City Clerk shall charge and collect from the candidate and the candidate must pay to the City Clerk, at the time of filing the declaration of candidacy, a filing fee in an amount fixed by the City Council by ordinance or resolution.

      2.  If, due to the death or ineligibility of or withdrawal by a candidate, a vacancy occurs in a nomination after the close of filing and any applicable period for withdrawal of candidacy, the candidate’s name must remain on the ballot for the general election and, if elected, a vacancy exists.

      Sec. 69. NRS 294A.003 and 294A.227 are hereby repealed.

________

 


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κ2011 Statutes of Nevada, Page 3311κ

 

CHAPTER 502, AB 562

Assembly Bill No. 562–Committee on Ways and Means

 

CHAPTER 502

 

[Approved: June 17, 2011]

 

AN ACT relating to the Public Employees’ Benefits Program; revising provisions governing the subsidy for coverage of certain retired persons under the Program; and providing other matters properly relating thereto.

 

Legislative Counsel’s Digest:

      Existing law provides for the payment of a subsidy to cover a portion of the cost of coverage under the Public Employees’ Benefits Program for certain retired officers and employees with state service. (NRS 287.046) This bill specifies the subsidy for a retired person whose coverage is provided through the Program by an individual medical plan offered pursuant to the Health Insurance for the Aged Act, 42 U.S.C. §§ 1395 et seq., which is commonly known as Medicare.

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. NRS 287.046 is hereby amended to read as follows:

      287.046  1.  The Department of Administration shall establish an assessment that is to be used to pay for a portion of the cost of premiums or contributions for the Program for persons who have retired with state service . [before January 1, 1994, or under the circumstances set forth in paragraph (a), (b) or (c) of subsection 3.]

      2.  The money assessed pursuant to subsection 1 must be deposited into the Retirees’ Fund and must be based upon an amount approved by the Legislature each session to pay for a portion of the current and future health and welfare benefits for such retirees.

      3.  Except as otherwise provided in [subsection 4,] subsections 7 and 8, the portion to be paid to the Program from the Retirees’ Fund on behalf of such persons must be equal to a portion of the cost for each retiree and the retiree’s dependents who are enrolled in the plan, as defined for each year of the plan by the Program.

      [3.  Adjustments]

      4.  Except as otherwise provided in subsection 6, the portion of the amount approved by the Legislature as described in subsection 2 to be paid to the Program from the Retirees’ Fund for persons who retired before January 1, 1994, with state service is the base funding level defined for each year of the plan by the Program.

      5.  Except as otherwise provided in subsection 6, adjustments to the portion of the amount approved by the Legislature as described in subsection 2 to be paid by the Retirees’ Fund [must be as follows:

      (a) For] for persons who retire on or after January 1, 1994, with state service [:

 


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κ2011 Statutes of Nevada, Page 3312 (CHAPTER 502, AB 562)κ

 

             (1)] must be as follows:

      (a) For each year of service less than 15 years, excluding service purchased pursuant to NRS 1A.310 or 286.300, the portion paid by the Retirees’ Fund must be reduced by an amount equal to 7.5 percent of the base funding level defined by the Legislature. In no event may the adjustment exceed 75 percent of the base funding level defined by the Legislature.

             [(2)] (b) For each year of service greater than 15 years, excluding service purchased pursuant to NRS 1A.310 or 286.300, the portion paid by the Retirees’ Fund must be increased by an amount equal to 7.5 percent of the base funding level defined by the Legislature. In no event may the adjustment exceed 37.5 percent of the base funding level defined by the Legislature.

      [(b) For persons who are]

      6. The portion to be paid to the Program from the Retirees’ Fund on behalf of a retired person whose coverage is provided through the Program by an individual medical plan offered pursuant to the Health Insurance for the Aged Act, 42 U.S.C. §§ 1395 et seq., must be:

      (a) For persons who retired before January 1, 1994, the base funding level defined by the Legislature multiplied by 15.

      (b) For persons who retired on or after January 1, 1994, the base funding level defined by the Legislature multiplied by the number of years of service of the person, excluding service purchased pursuant to NRS 1A.310 or 286.300, up to a maximum of 20 years of service.

      7.  No money may be paid by the Retirees’ Fund on behalf of a retired person who is initially hired by the State on or after January 1, 2010, and who [retire with at least 15 years of service credit, which must include state service and may include local governmental service, and who have] :

      (a) Has not participated in the Program on a continuous basis since [their] retirement from such employment [, for each year of service greater than 15 years, excluding service purchased pursuant to NRS 1A.310 or 286.300, the portion paid by the Retirees’ Fund must be increased by an amount equal to 7.5 percent of the base funding level defined by the Legislature. In no event may the adjustment exceed 37.5 percent of the base funding level defined by the Legislature.

      (c) For persons who are initially hired by the State on or after January 1, 2010, and who retire with at least 5 years of service credit, which must include state service and may include local governmental service, who do] ; or

      (b) Does not have at least 15 years of service [credit to qualify under paragraph (b) as] , unless the retired person does not have at least 15 years of service as a result of a disability for which disability benefits are received under the Public Employees’ Retirement System or a retirement program for professional employees offered by or through the Nevada System of Higher Education, and [who have] has participated in the Program on a continuous basis since [their] retirement from such employment . [:

 


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κ2011 Statutes of Nevada, Page 3313 (CHAPTER 502, AB 562)κ

 

             (1) For each year of service less than 15 years, excluding service purchased pursuant to NRS 1A.310 or 286.300, the portion paid by the Retirees’ Fund must be reduced by an amount equal to 7.5 percent of the base funding level defined by the Legislature. In no event may the adjustment exceed 75 percent of the base funding level defined by the Legislature.

             (2) For each year of service greater than 15 years, excluding service purchased pursuant to NRS 1A.310 or 286.300, the portion paid by the Retirees’ Fund must be increased by an amount equal to 7.5 percent of the base funding level defined by the Legislature. In no event may the adjustment exceed 37.5 percent of the base funding level defined by the Legislature.

      4.]8. If the amount calculated pursuant to subsection [3] 5 or 6 exceeds the actual premium or contribution for the plan of the Program that the retired participant selects, the balance must be credited to the Program Fund.

      [5.]9. For the purposes of [subsection 1:] this section:

      (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.

      [6.] 10.  The Department shall agree through the Board with the insurer for billing of remaining premiums or contributions for the retired participant and the retired participant’s dependents to the retired participant and to the retired participant’s dependents who elect to continue coverage under the Program after the retired participant’s death.

      Sec. 2.  This act becomes effective on July 1, 2011.

________

 


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κ2011 Statutes of Nevada, Page 3314κ

 

CHAPTER 503, AB 553

Assembly Bill No. 553–Committee on Ways and Means

 

CHAPTER 503

 

[Approved: June 17, 2011]

 

AN ACT relating to the Public Employees’ Benefits Program; revising provisions governing subsidies for the coverage of certain persons under the Program; and providing other matters properly relating thereto.

 

Legislative Counsel’s Digest:

      Existing law provides for the payment of a subsidy to cover a portion of the cost of coverage under the Public Employees’ Benefits Program for certain retired officers and employees with state service. (NRS 287.046) Section 2 of this bill provides that officers and employees initially hired on or after January 1, 2012, by the State are not eligible for a subsidy upon retirement. Such persons may participate in the Program, paying the entire cost of that coverage, until they are eligible for coverage under an individual medical plan offered by Medicare.

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. (Deleted by amendment.)

      Sec. 2. NRS 287.046 is hereby amended to read as follows:

      287.046  1.  The Department of Administration shall establish an assessment that is to be used to pay for a portion of the cost of premiums or contributions for the Program for persons who were initially hired before January 1, 2012, and have retired with state service . [before January 1, 1994, or under the circumstances set forth in paragraph (a), (b) or (c) of subsection 3.]

      2.  The money assessed pursuant to subsection 1 must be deposited into the Retirees’ Fund and must be based upon an amount approved by the Legislature each session to pay for a portion of the current and future health and welfare benefits for such retirees.

      3.  Except as otherwise provided in [subsection 4,] subsections 7 and 8, the portion to be paid to the Program from the Retirees’ Fund on behalf of such persons must be equal to a portion of the cost for each retiree and the retiree’s dependents who are enrolled in the plan, as defined for each year of the plan by the Program.

      [3.  Adjustments]

      4.  Except as otherwise provided in subsection 6, the portion of the amount approved by the Legislature as described in subsection 2 to be paid to the Program from the Retirees’ Fund for persons who retired before January 1, 1994, with state service is the base funding level defined for each year of the plan by the Program.

 


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κ2011 Statutes of Nevada, Page 3315 (CHAPTER 503, AB 553)κ

 

      5.  Except as otherwise provided in subsection 6, adjustments to the portion of the amount approved by the Legislature as described in subsection 2 to be paid by the Retirees’ Fund [must be as follows:

      (a) For] for persons who retire on or after January 1, 1994, with state service [:

             (1)]must be as follows:

      (a) For each year of service less than 15 years, excluding service purchased pursuant to NRS 1A.310 or 286.300, the portion paid by the Retirees’ Fund must be reduced by an amount equal to 7.5 percent of the base funding level defined by the Legislature. In no event may the adjustment exceed 75 percent of the base funding level defined by the Legislature.

             [(2)] (b) For each year of service greater than 15 years, excluding service purchased pursuant to NRS 1A.310 or 286.300, the portion paid by the Retirees’ Fund must be increased by an amount equal to 7.5 percent of the base funding level defined by the Legislature. In no event may the adjustment exceed 37.5 percent of the base funding level defined by the Legislature.

      [(b) For persons who are]

      6.  No money may be paid by the Retirees’ Fund on behalf of a retired person who is initially hired by the State [on] :

      (a) On or after January 1, 2010, but before January 1, 2012, and who [retire with at least 15 years of service credit, which must include state service and may include local governmental service, and who have] :

             (1) Has not participated in the Program on a continuous basis since [their] retirement from such employment [, for each year of service greater than 15 years, excluding service purchased pursuant to NRS 1A.310 or 286.300, the portion paid by the Retirees’ Fund must be increased by an amount equal to 7.5 percent of the base funding level defined by the Legislature. In no event may the adjustment exceed 37.5 percent of the base funding level defined by the Legislature.

      (c)For persons who are initially hired by the State on or after January 1, 2010, and who retire with at least 5 years of service credit, which must include state service and may include local governmental service, who do] ; or

             (2) Does not have at least 15 years of service [credit to qualify under paragraph (b) as] , unless the retired person does not have at least 15 years of service as a result of a disability for which disability benefits are received under the Public Employees’ Retirement System or a retirement program for professional employees offered by or through the Nevada System of Higher Education, and [who have] has participated in the Program on a continuous basis since [their] retirement from such employment . [:

             (1) For each year of service less than 15 years, excluding service purchased pursuant to NRS 1A.310 or 286.300, the portion paid by the Retirees’ Fund must be reduced by an amount equal to 7.5 percent of the base funding level defined by the Legislature. In no event may the adjustment exceed 75 percent of the base funding level defined by the Legislature.

 


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κ2011 Statutes of Nevada, Page 3316 (CHAPTER 503, AB 553)κ

 

             (2)For each year of service greater than 15 years, excluding service purchased pursuant to NRS 1A.310 or 286.300, the portion paid by the Retirees’ Fund must be increased by an amount equal to 7.5 percent of the base funding level defined by the Legislature. In no event may the adjustment exceed 37.5 percent of the base funding level defined by the Legislature.

      4.]  (b) On or after January 1, 2012. The provisions of this paragraph must not be construed to prohibit a retired person who was hired on or after January 1, 2012, from participating in the Program until the retired person is eligible for coverage under an individual medical plan offered pursuant to the Health Insurance for the Aged Act, 42 U.S.C. §§ 1395 et seq. The retired person shall pay the entire premium or contribution for his or her participation in the Program.

      7.  If the amount calculated pursuant to subsection 3 or 4 exceeds the actual premium or contribution for the plan of the Program that the retired participant selects, the balance must be credited to the Program Fund.

      [5.] 8.  For the purposes of [subsection 1:] this section:

      (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.

      [6.] 9.  The Department shall agree through the Board with the insurer for billing of remaining premiums or contributions for the retired participant and the retired participant’s dependents to the retired participant and to the retired participant’s dependents who elect to continue coverage under the Program after the retired participant’s death.

      Sec. 3.  This act becomes effective on July 1, 2011.

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κ2011 Statutes of Nevada, Page 3317κ

 

CHAPTER 504, SB 432

Senate Bill No. 432–Committee on Finance

 

CHAPTER 504

 

[Approved: June 17, 2011]

 

AN ACT relating to governmental financing; authorizing regional transportation commissions in certain counties to issue revenue bonds and other securities to finance certain projects under certain circumstances; providing an exception to certain limitations on the issuance of such bonds and other securities by certain counties under certain circumstances; extending the period within which the repayment of certain bonds or other securities must commence; extending the period within which certain general obligation bonds issued for a water facility or wastewater facility must mature; and providing other matters properly relating thereto.

 

Legislative Counsel’s Digest:

      Existing law authorizes counties to impose a county tax on the sale of motor vehicle fuel. (NRS 373.030, 373.065, 373.066) Existing law also authorizes counties to issue revenue bonds and other revenue securities to obtain money for the payment of the cost of a street and highway construction project, subject to the limitation that the total of all such revenue bonds and other revenue securities issued and outstanding by a county must not be in an amount requiring a total debt service in excess of the estimated receipts to be derived from the county tax on sales of motor vehicle fuel in the county. (NRS 373.028, 373.131) Sections 1-4 of this bill authorize a regional transportation commission in a county whose population is 100,000 or more (currently Clark and Washoe Counties) to issue revenue bonds and other revenue securities to finance such a project if the commission has executed an interlocal agreement with the county relating to the issuance of such bonds and other securities by the commission.

      Existing law authorizes counties to impose a special tax for a public transit system, for the construction, maintenance and repair of public roads or for the improvement of air quality. (NRS 377A.020) Existing law also authorizes counties to issue bonds and other securities to obtain money to pay for the cost of establishing and maintaining a public transit system, for the construction, maintenance and repair of public roads or for the improvement of air quality. (NRS 377A.090) Sections 5-7 of this bill authorize a regional transportation commission in a county whose population is 100,000 or more (currently Clark and Washoe Counties) to issue revenue bonds and other revenue securities to finance such a project if the commission has executed an interlocal agreement with the county relating to the issuance of such bonds and other securities by the commission.

      Existing law authorizes counties to impose a tax for infrastructure upon the gross receipts of retail sales. (NRS 377B.100, 377B.110) Existing law also authorizes counties to issue bonds and other securities to obtain money to pay for the cost of one or more projects for which the tax was imposed. (NRS 377B.190) Section 8 of this bill provides for the continuation of such a tax in a county whose population is 400,000 or more (currently Clark County) after the date of cessation of the tax specified in the ordinance creating the tax if the board of county commissioners determines by a two-thirds majority vote that the cessation of the tax is not advisable. Section 9 of this bill similarly provides for the continued issuance of such bonds or securities in such a county after the date of cessation of the tax specified in the ordinance creating the tax if the board of county commissioners pursuant to section 8 has determined by a two-thirds majority vote that the cessation of the tax is not advisable.

 


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κ2011 Statutes of Nevada, Page 3318 (CHAPTER 504, SB 432)κ

 

      Section 10 of this bill extends the period within which the repayment of bonds or other securities that are issued by a political subdivision of this State and that pay compound interest must commence from not later than the fifth year after issuance to not later than the fifteenth year after issuance. Section 11 of this bill extends the period within which general obligation bonds issued for a water facility or wastewater facility must mature to not later than 40 years from their respective dates.

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. NRS 373.024 is hereby amended to read as follows:

      373.024  “Cost of the project,” or any phrase of similar import, means all or any part designated by the board or, in the case of a project financed with bonds or other securities issued by a commission, the commission, of the cost of any project, or interest therein, being acquired, which cost, at the option of the board or, in the case of a project financed with bonds or other securities issued by a commission, the commission, may include all or any part of the incidental costs pertaining to the project, including, without limitation, preliminary expenses advanced by the county or, in the case of a project financed with bonds or other securities issued by a commission, the commission, from money available for use therefor or any other source, or advanced by any city with the approval of the county from money available therefor or from any other source, or advanced by the State of Nevada or the Federal Government, or any corporation, agency or instrumentality thereof, with the approval of the county, or any combination thereof, in the making of surveys, preliminary plans, estimates of costs, other preliminaries, the costs of appraising, printing, estimates, advice, contracting for the services of engineers, architects, financial consultants, attorneys at law, clerical help, other agents or employees, the costs of making, publishing, posting, mailing and otherwise giving any notice in connection with the project, the taking of options, the issuance of bonds and other securities, contingencies, the capitalization with bond proceeds of any interest on the bonds for any period not exceeding 1 year and of any reserves for the payment of the principal of an interest on the bonds, the filing or recordation of instruments, the costs of medium-term obligations, construction loans and other temporary loans of not exceeding 10 years appertaining to the project and of the incidental expenses incurred in connection with such financing or loans, and all other expenses necessary or desirable and appertaining to any project, as estimated or otherwise ascertained by the board [.] or, in the case of a project financed with bonds or other securities issued by a commission, the commission.

      Sec. 2. NRS 373.131 is hereby amended to read as follows:

      373.131  1.  Money for the payment of the cost of a project within the area embraced by a regional plan for transportation established pursuant to NRS 277A.210 may be obtained by the issuance of revenue bonds and other revenue securities as provided in subsection 2 or, subject to any pledges, liens and other contractual limitations made pursuant to the provisions this chapter and chapter 277A of NRS, may be obtained by direct distribution from the regional street and highway fund, except to the extent any such use is prevented by the provisions of NRS 373.150, or may be obtained both by the issuance of such securities and by such direct distribution, as the board may determine.

 


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κ2011 Statutes of Nevada, Page 3319 (CHAPTER 504, SB 432)κ

 

may determine. Money for street and highway construction outside the area embraced by the plan may be distributed directly from the regional street and highway fund as provided in NRS 373.150.

      2.  The board or, in a county whose population is 100,000 or more, a commission, may, after the enactment of any ordinance authorized by the provisions of NRS 373.030, paragraph (d) of subsection 1 of NRS 373.065 or paragraphs (d) to (m), inclusive, of subsection 1 of NRS 373.066, issue revenue bonds and other revenue securities, on the behalf and in the name of the county [:] or the commission, as the case may be:

      (a) The total of all of which, issued and outstanding at any one time, must not be in an amount requiring a total debt service in excess of the estimated receipts to be derived from the taxes imposed pursuant to the provisions of NRS 373.030, paragraph (d) of subsection 1 of NRS 373.065 and paragraphs (d) to (m), inclusive, of subsection 1 of NRS 373.066;

      (b) Which must not be general obligations of the county or the commission or a charge on any real estate [therein;] within the county; and

      (c) Which may be secured as to principal and interest by a pledge authorized by this chapter of the receipts from the fuel taxes designated in this chapter, except such portion of the receipts as may be required for the direct distributions authorized by NRS 373.150.

      3.  A county or a commission as provided in subsection 2 is authorized to issue bonds or other securities without the necessity of their being authorized at any election in such manner and with such terms as provided in this chapter.

      4.  Subject to the provisions of this chapter and chapter 277A of NRS, for any project authorized therein, the board of any county may, on the behalf and in the name of the county, or, in a county whose population is 100,000 or more, a commission may, on behalf and in the name of the commission, borrow money, otherwise become obligated, and evidence obligations by the issuance of bonds and other county or commission securities, and in connection with the undertaking or project, the board or the commission, as the case may be, may otherwise proceed as provided in the Local Government Securities Law.

      5.  All such securities constitute special obligations payable from the net receipts of the fuel taxes designated in this chapter except as otherwise provided in NRS 373.150, and the pledge of revenues to secure the payment of the securities must be limited to those net receipts.

      6.  Except for:

      (a) Any notes or warrants which are funded with the proceeds of interim debentures or bonds;

      (b) Any interim debentures which are funded with the proceeds of bonds;

      (c) Any temporary bonds which are exchanged for definitive bonds;

      (d) Any bonds which are reissued or which are refunded; and

      (e) The use of any profit from any investment and reinvestment for the payment of any bonds or other securities issued pursuant to the provisions of this chapter,

Κ all bonds and other securities issued pursuant to the provisions of this chapter must be payable solely from the proceeds of fuel taxes collected by or remitted to the county pursuant to chapter 365 of NRS, as supplemented by this chapter. Receipts of the taxes levied in NRS 365.180 and 365.190 and pursuant to the provisions of paragraphs (a) and (b) of subsection 1 of NRS 373.065 and paragraphs (a) and (b) of subsection 1 of NRS 373.066 may be used by the county for the payment of securities issued pursuant to the provisions of this chapter and may be pledged therefor.

 


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κ2011 Statutes of Nevada, Page 3320 (CHAPTER 504, SB 432)κ

 

NRS 373.065 and paragraphs (a) and (b) of subsection 1 of NRS 373.066 may be used by the county for the payment of securities issued pursuant to the provisions of this chapter and may be pledged therefor. Such taxes may also be used by a commission in a county whose population is 100,000 or more for the payment of bonds or other securities issued pursuant to the provisions of this chapter and may be pledged therefor if the board of the county consents to such use. If during any period any securities payable from these tax proceeds are outstanding, the tax receipts must not be used directly for the construction, maintenance and repair of any streets, roads or other highways nor for any purchase of equipment therefor, and the receipts of the tax levied in NRS 365.190 must not be apportioned pursuant to subsection 2 of NRS 365.560 unless, at any time the tax receipts are so apportioned, provision has been made in a timely manner for the payment of such outstanding securities as to the principal of, any prior redemption premiums due in connection with, and the interest on the securities as they become due, as provided in the securities, the ordinance , in the case of securities issued by a county, or the resolution, in the case of securities issued by a commission, authorizing their issuance and any other instrument appertaining to the securities.

      7.  The ordinance , in the case of securities issued by a county, or the resolution, in the case of securities issued by a commission, authorizing the issuance of any bond or other revenue security under this section must describe the purpose for which it is issued at least in general terms and may describe the purpose in detail. This section does not require the purpose so stated to be set forth in the detail in which the project approved by the commission pursuant to subsection 2 of NRS 373.140 is stated, or prevent the modification by the board or commission, as the case may be, of details as to the purpose stated in the ordinance authorizing the issuance of any bond or other security after its issuance, subject to approval by the commission of the project as so modified [.] , if such bond or other security is issued by the county and not the commission.

      8.  Notwithstanding any other provision of this chapter, no commission has authority to issue bonds or other securities pursuant to this chapter unless the commission has executed an interlocal agreement with the county relating to the issuance of bonds or other securities by the commission. Any such interlocal agreement must include an acknowledgment of the authority of the commission to issue bonds and other securities and contain provisions relating to the pledge of revenues for the repayment of the bonds or other securities, the lien priority of the pledge of revenues securing the bonds or other securities, and related matters.

      Sec. 3. NRS 373.160 is hereby amended to read as follows:

      373.160  1.  The ordinance or ordinances , or the resolution or resolutions, providing for the issuance of any bonds or other securities issued under this chapter payable from the receipts from the fuel excise taxes designated in this chapter may at the discretion of the board [,] or, in the case of bonds or other securities issued by a commission, the commission, in addition to covenants and other provisions authorized in the Local Government Securities Law, contain covenants or other provisions as to the pledge of and the creation of a lien upon the receipts of the taxes collected for the county pursuant to the provisions of NRS 373.030, paragraph (d) of subsection 1 of NRS 373.065 and paragraphs (d) to (m), inclusive, of subsection 1 of NRS 373.066, excluding any tax proceeds to be distributed directly under the provisions of NRS 373.150, or the proceeds of the bonds or other securities pending their application to defray the cost of the project, or both such tax proceeds and security proceeds, to secure the payment of revenue bonds or other securities issued under this chapter.

 


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κ2011 Statutes of Nevada, Page 3321 (CHAPTER 504, SB 432)κ

 

for the county pursuant to the provisions of NRS 373.030, paragraph (d) of subsection 1 of NRS 373.065 and paragraphs (d) to (m), inclusive, of subsection 1 of NRS 373.066, excluding any tax proceeds to be distributed directly under the provisions of NRS 373.150, or the proceeds of the bonds or other securities pending their application to defray the cost of the project, or both such tax proceeds and security proceeds, to secure the payment of revenue bonds or other securities issued under this chapter.

      2.  If the board or, in the case of bonds or other securities issued by a commission, the commission, determines in any ordinance or resolution authorizing the issuance of any bonds or other securities under this chapter that the proceeds of the taxes levied and collected pursuant to the provisions of NRS 373.030, paragraph (d) of subsection 1 of NRS 373.065 and paragraphs (d) to (m), inclusive, of subsection 1 of NRS 373.066 are sufficient to pay all bonds and securities, including the proposed issue, from the proceeds thereof, the board or, in the case of bonds or other securities issued by a commission, the commission with the consent of the board as provided in subsection 6 of NRS 373.131, may additionally secure the payment of any bonds or other securities issued pursuant to the ordinance or resolution under this chapter by a pledge of and the creation of a lien upon not only the proceeds of any fuel tax authorized at the time of the issuance of such securities to be used for such payment in subsection 6 of NRS 373.131, but also the proceeds of any such tax thereafter authorized to be used or pledged, or used and pledged, for the payment of such securities, whether such tax be levied or collected by the county, the State of Nevada, or otherwise, or be levied in at least an equivalent value in lieu of any such tax existing at the time of the issuance of such securities or be levied in supplementation thereof.

      3.  The pledges and liens authorized by subsections 1 and 2 extend to the proceeds of any tax collected for use by the county on any fuel so long as any bonds or other securities issued under this chapter remain outstanding and are not limited to any type or types of fuel in use when the bonds or other securities are issued.

      Sec. 4. NRS 373.190 is hereby amended to read as follows:

      373.190  The board , or a commission authorized to issue bonds or other securities pursuant to subsection 2 of NRS 373.131, is authorized to sell such bonds or other securities from time to time at public or private sale as the board or the commission, as the case may be, may determine.

      Sec. 5. NRS 377A.090 is hereby amended to read as follows:

      377A.090  1.  Money for the payment of the cost of establishing and maintaining a public transit system, for the construction, maintenance and repair of public roads, for the improvement of air quality or for any combination of those purposes may be obtained by the issuance of bonds and other securities as provided in subsection 2 or 3 or, subject to any pledges, liens and other contractual limitations made pursuant to this chapter, may be obtained by direct distribution from the public transit fund, or may be obtained both by the issuance of such securities and by such direct distribution as the board or, in the case of securities issued by a regional transportation commission, the regional transportation commission, may determine.

 


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κ2011 Statutes of Nevada, Page 3322 (CHAPTER 504, SB 432)κ

 

      2.  The board may, after the enactment of an ordinance authorized by paragraph (a) of subsection 1 of NRS 377A.020, from time to time issue bonds and other securities, which are general or special obligations of the county and which may be secured as to principal and interest by a pledge authorized by this chapter of the receipts from the tax imposed by that ordinance.

      3.  A regional transportation commission authorized to issue bonds or other securities pursuant to subsection 2 of NRS 373.131 may, after the enactment by a board of county commissioners of an ordinance authorized by paragraph (a) of subsection 1 of NRS 377A.020, from time to time issue bonds and other securities, which are special obligations of the regional transportation commission and which may be secured as to principal and interest by a pledge authorized by this chapter or the receipts from the tax imposed by that ordinance.

      4.  Notwithstanding any other provision of this chapter, no regional transportation commission may issue bonds or other securities pursuant to this chapter unless the regional transportation commission has executed an interlocal agreement with the county relating to the issuance of bonds or other securities by the regional transportation commission. Any such interlocal agreement must include an acknowledgment of the authority of the regional transportation commission to issue bonds or other securities and contain provisions relating to the pledge of revenues for the repayment of the bonds or other securities, the lien priority of the pledge of revenues securing the bonds or other securities, and related matters.

      5.  The ordinance or resolution authorizing the issuance of any bond or other security must describe the purpose for which it is issued.

      Sec. 6. NRS 377A.100 is hereby amended to read as follows:

      377A.100  1.  Each ordinance or resolution providing for the issuance of any bond or security issued under this chapter payable from the receipts of the tax imposed pursuant to paragraph (b) of subsection 1 of NRS 377A.030 may, in addition to covenants and other provisions authorized in the Local Government Securities Law, contain a covenant or other provision to pledge and create a lien upon the receipts of the tax or upon the proceeds of any bond or security pending their application to defray the cost of establishing or operating a public transit system, constructing, maintaining or repairing public roads or improving air quality, or both tax proceeds and security proceeds, to secure the payment of any bond or security issued under this chapter.

      2.  Each ordinance providing for the issuance of any bond or security issued under this chapter payable from the receipts of the tax imposed pursuant to paragraph (d) of subsection 1 of NRS 377A.030 may, in addition to covenants and other provisions authorized in the Local Government Securities Law, contain a covenant or other provision to pledge and create a lien upon:

      (a) The receipts of the tax;

      (b) The proceeds of any bond or security pending their application to defray the cost of acquiring, developing, constructing, equipping, operating, maintaining, improving and managing libraries, parks, recreational programs and facilities, and facilities and services for senior citizens, and for preserving and protecting agriculture, or for any combination of those purposes; or

      (c) Both tax proceeds and security proceeds,

 


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Κ to secure the payment of any bond or security issued under this chapter. The provisions of this subsection do not authorize the board of county commissioners of a county to obtain money to acquire, develop, construct, equip, operate, maintain, improve and manage recreational programs by the issuance of bonds.

      3.  Any money pledged to the payment of bonds or other securities pursuant to subsection 1 or 2 may be treated as pledged revenues of the project for the purposes of subsection 3 of NRS 350.020.

      Sec. 7. NRS 377A.110 is hereby amended to read as follows:

      377A.110  1.  Subject to the provisions of subsection 2, the board may gradually reduce the amount of any tax imposed pursuant to this chapter for a public transit system, for the construction, maintenance and repair of public roads, for the improvement of air quality or for any combination of those purposes as revenue from the operation of those projects permits. The date on which any reduction in the tax becomes effective must be the first day of the first calendar quarter that begins at least 120 days after the effective date of the ordinance reducing the amount of tax imposed.

      2.  No such taxing ordinance may be repealed or amended or otherwise directly or indirectly modified in such a manner as to impair any outstanding bonds issued under this chapter, or other obligations incurred under this chapter, until all obligations, for which revenues from the ordinance have been pledged or otherwise made payable from such revenues pursuant to this chapter, have been discharged in full, but the board may at any time dissolve the regional transportation commission as provided in NRS 373.120 and provide that no further obligations be incurred thereafter.

      Sec. 8. NRS 377B.100 is hereby amended to read as follows:

      377B.100  1.  The board of county commissioners of any county may by ordinance, but not as in a case of emergency, impose a tax for infrastructure pursuant to this section and NRS 377B.110.

      2.  An ordinance enacted pursuant to this chapter may not become effective before a question concerning the imposition of the tax is approved by a two-thirds majority of the members of the board of county commissioners. Any proposal to increase the rate of the tax or change the previously approved uses for the proceeds of the tax must be approved by a two-thirds majority of the members of the board of county commissioners. The board of county commissioners shall not change a previously approved use for the proceeds of the tax to a use that is not authorized for that county pursuant to NRS 377B.160.

      3.  An ordinance enacted pursuant to this section must:

      (a) Specify the date on which the tax must first be imposed or on which an increase in the rate of the tax becomes effective, which must occur on the first day of the first month of the next calendar quarter that is at least 120 days after the date on which a two-thirds majority of the board of county commissioners approved the question.

      (b) In a county whose population is 400,000 or more, provide for the cessation of the tax not later than:

             (1) The last day of the month in which the Department determines that the total sum collected since the tax was first imposed, exclusive of any penalties and interest, exceeds $2.3 billion; or

             (2) June 30, 2025,

Κ whichever occurs earlier.

 


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      4.  Notwithstanding the provisions of an ordinance described in subsection 3, in a county whose population is 400,000 or more, the tax may continue to be imposed after the date set forth in the ordinance for the cessation of the tax if the board of county commissioners determines by an affirmative vote of at least two-thirds of its members that the cessation of the tax is not advisable.

      5.  The board of county commissioners in a county whose population is 400,000 or more and in which a water authority exists shall review the necessity for the continued imposition of the tax authorized pursuant to this chapter at least once every 10 years.

      [5.]6. Before enacting an ordinance pursuant to this chapter, the board of county commissioners shall hold a public hearing regarding the imposition of a tax for infrastructure. In a county whose population is 400,000 or more and in which a water authority exists, the water authority shall also hold a public hearing regarding the tax for infrastructure. Notice of the time and place of each hearing must be:

      (a) Published in a newspaper of general circulation in the county at least once a week for the 2 consecutive weeks immediately preceding the date of the hearing. Such notice must be a display advertisement of not less than 3 inches by 5 inches.

      (b) Posted at the building in which the meeting is to be held and at not less than three other separate, prominent places within the county at least 2 weeks before the date of the hearing.

      [6.]7. Before enacting an ordinance pursuant to this chapter, the board of county commissioners of a county whose population is less than 400,000 or a county whose population is 400,000 or more and in which no water authority exists, shall develop a plan for the expenditure of the proceeds of a tax imposed pursuant to this chapter for the purposes set forth in NRS 377B.160. The plan may include a regional project for which two or more such counties have entered into an interlocal agreement to expend jointly all or a portion of the proceeds of a tax imposed in each county pursuant to this chapter. Such a plan must include, without limitation, the date on which the plan expires, a description of each proposed project, the method of financing each project and the costs related to each project. Before adopting a plan pursuant to this subsection, the board of county commissioners of a county in which a regional planning commission has been established pursuant to NRS 278.0262 shall transmit to the regional planning commission a list of the proposed projects for which a tax for infrastructure may be imposed. The regional planning commission shall hold a public hearing at which it shall rank each project in relative priority. The regional planning commission shall transmit its rankings to the board of county commissioners. The recommendations of the regional planning commission regarding the priority of the proposed projects are not binding on the board of county commissioners. The board of county commissioners shall hold at least one public hearing on the plan. Notice of the time and place of the hearing must be provided in the manner set forth in subsection [5.] 6. The plan must be approved by the board of county commissioners at a public hearing. Subject to the provisions of subsection [7,] 8, on or before the date on which a plan expires, the board of county commissioners shall determine whether a necessity exists for the continued imposition of the tax. If the board determines that such a necessity does not exist, the board shall repeal the ordinance that enacted the tax. If the board of county commissioners determines that the tax must be continued for a purpose set forth in NRS 377B.160, the board shall adopt, in the manner prescribed in this subsection, a new plan for the expenditure of the proceeds of the tax for such a purpose.

 


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determines that the tax must be continued for a purpose set forth in NRS 377B.160, the board shall adopt, in the manner prescribed in this subsection, a new plan for the expenditure of the proceeds of the tax for such a purpose.

      [7.]8. No ordinance imposing a tax which is enacted pursuant to this chapter may be repealed or amended or otherwise directly or indirectly modified in such a manner as to impair any outstanding bonds or other obligations which are payable from or secured by a pledge of a tax enacted pursuant to this chapter until those bonds or other obligations have been discharged in full.

      Sec. 8.3. NRS 377B.150 is hereby amended to read as follows:

      377B.150  1.  In a county whose population is less than 400,000 or a county whose population is 400,000 or more and in which no water authority exists, the county treasurer shall deposit the money received from the State Controller pursuant to NRS 377B.130 in the county treasury for credit to a fund to be known as the infrastructure fund. The infrastructure fund must be accounted for as a separate fund and not as a part of any other fund. The money for each project included in the plan adopted pursuant to subsection [6] 7 of NRS 377B.100 must be accounted for separately in the fund.

      2.  In a county whose population is 400,000 or more and in which a water authority exists, the water authority shall deposit the money received from the State Controller pursuant to NRS 377B.130 in a separate account of the water authority to be known as the infrastructure fund. This fund must be accounted for as a separate fund and not as part of any other fund of the water authority.

      Sec. 8.7. NRS 377B.160 is hereby amended to read as follows:

      377B.160  The money in the infrastructure fund, including interest and any other income from the fund:

      1.  In a county whose population is 400,000 or more, must only be expended by the water authority, distributed by the water authority to its members, distributed by the water authority pursuant to NRS 377B.170 to a city or town located in the county whose territory is not within the boundaries of the area served by the water authority or to a public entity in the county which provides water or wastewater services and which is not a member of the water authority or, if no water authority exists in the county, expended by the board of county commissioners for:

      (a) The acquisition, establishment, construction, improvement or equipping of water and wastewater facilities;

      (b) The payment of principal and interest on notes, bonds or other securities issued to provide money for the cost of projects described in paragraph (a); or

      (c) Any combination of those purposes.

Κ The board of county commissioners may only expend money from the infrastructure fund pursuant to this subsection in the manner set forth in the plan adopted pursuant to subsection [6] 7 of NRS 377B.100.

      2.  In a county whose population is 100,000 or more but less than 400,000, must only be expended by the board of county commissioners in the manner set forth in the plan adopted pursuant to subsection [6] 7 of NRS 377B.100 for:

      (a) The acquisition, establishment, construction or expansion of:

             (1) Projects for the management of floodplains or the prevention of floods; or

             (2) Facilities relating to public safety;

 


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      (b) The payment of principal and interest on notes, bonds or other securities issued to provide money for the cost of projects described in paragraph (a);

      (c) The ongoing expenses of operation and maintenance of projects described in subparagraph (1) of paragraph (a), if such projects were included in a plan adopted by the board of county commissioners pursuant to subsection [6] 7 of NRS 377B.100 before January 1, 2003;

      (d) Any program to provide financial assistance to owners of public and private property in areas likely to be flooded in order to make such property resistant to flood damage that is established pursuant to NRS 244.3653; or

      (e) Any combination of those purposes.

      3.  In a county whose population is less than 100,000, must only be expended by the board of county commissioners in the manner set forth in the plan adopted pursuant to subsection [6] 7 of NRS 377B.100 for:

      (a) The acquisition, establishment, construction, improvement or equipping of:

             (1) Water facilities; or

             (2) Wastewater facilities;

      (b) The acquisition, establishment, construction, operation, maintenance or expansion of:

             (1) Projects for the management of floodplains or the prevention of floods; or

             (2) Facilities for the disposal of solid waste;

      (c) The construction or renovation of facilities for schools;

      (d) The construction or renovation of facilities having cultural or historical value;

      (e) Projects described in subsection 2 of NRS 373.028;

      (f) The acquisition, establishment, construction, expansion, improvement or equipping of facilities relating to public safety or to cultural and recreational or judicial functions;

      (g) The payment of principal and interest on notes, bonds or other securities issued to provide money for the cost of projects, facilities and activities described in paragraphs (a) to (f), inclusive; or

      (h) Any combination of those purposes.

      Sec. 9. NRS 377B.190 is hereby amended to read as follows:

      377B.190  1.  Money for the payment of the cost of one or more projects for which the board of county commissioners has imposed all or a portion of the tax authorized pursuant to this chapter may be obtained by the issuance of bonds and other securities as provided in this section, or, subject to any pledges, liens and other contractual limitations made pursuant to this chapter, may be obtained by direct distribution from the infrastructure fund, or may be obtained both by the issuance of such securities and by such direct distribution as determined by the board of county commissioners or, in a county whose population is 400,000 or more and in which a water authority exists, by the water authority.

      2.  The board of county commissioners of a county whose population is less than 400,000 or of a county whose population is 400,000 or more and in which no water authority exists may, after the enactment of an ordinance imposing a tax for infrastructure as authorized by NRS 377B.100, from time to time issue bonds and other securities, which are general or special obligations of the county and which may be secured as to principal and interest by a pledge authorized by this chapter of the receipts from the taxes imposed by this chapter.

 


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imposed by this chapter. The ordinance authorizing the issuance of any bond or other security must describe the purpose for which it was issued.

      3.  After the enactment of an ordinance imposing a tax for infrastructure by the board of county commissioners of a county whose population is 400,000 or more and in which a water authority exists, the water authority or, if so provided in an interlocal agreement to which the water authority is a party, one or more of the members of the water authority, may from time to time issue bonds and other securities, which are general or special obligations and which may be secured as to principal and interest by a pledge authorized by this chapter of the receipts from the taxes imposed by this chapter.

      4.  In a county whose population is 400,000 or more, no bonds or other securities may be issued pursuant to this section which are payable from or secured by, in whole or in part, any revenue from a tax enacted pursuant to this chapter to be collected after:

      (a) The last day of the month in which the Department determines that the total sum collected since the tax was first imposed, exclusive of any penalties and interest, exceeds $2.3 billion; or

      (b) June 30, 2025,

Κ whichever occurs earlier [.] , unless the board of county commissioners pursuant to subsection 4 of NRS 377B.100 has determined by an affirmative vote of at least two-thirds of its members that the cessation of the tax is not advisable.

      Sec. 10. NRS 99.065 is hereby amended to read as follows:

      99.065  1.  Bonds or other securities issued by this state or any of its political subdivisions may provide for the payment of compound interest. The amount of the compound interest must be treated as interest and not as an addition to the principal of the bond or other security.

      2.  If interest is compounded on some or all of an issue of securities, repayment of the securities:

      (a) Must commence no later than the [fifth] 15th year after issue; and

      (b) If in installments, must be made no less often than annually.

      Sec. 11. NRS 350.630 is hereby amended to read as follows:

      350.630  1.  As the governing body may determine, any bonds and other municipal securities issued hereunder, except as otherwise provided in the Local Government Securities Law, or in any act supplemental thereto, must:

      (a) Be of a convenient denomination or denominations;

      (b) Be fully negotiable within the meaning of and for all the purposes of the Uniform Commercial Code — Investment Securities;

      (c) Mature at such time or serially at such times in regular numerical order at annual or other designated intervals in amounts designated and fixed by the governing body, except as herein otherwise provided;

      (d) Bear interest at a rate or rates which do not exceed the limit provided in NRS 350.2011, payable annually, semiannually or at other designated intervals, but the first interest payment date may be for interest accruing for any other period;

      (e) Be made payable in lawful money of the United States, at the office of the treasurer or any commercial bank or commercial banks within or without or both within and without the State as may be provided by the governing body; and

 


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      (f) Be printed at such a place, within or without this State, as the governing body may determine.

      2.  [General] Except as otherwise provided in subsection 3, general obligation bonds must mature within 30 years from their respective dates and, if they mature serially, commencing not later than the fifth year thereafter, in such manner as the governing body may determine.

      3.  General obligation bonds issued for a water facility or wastewater facility must mature within 40 years from their respective dates and, if they mature serially, commencing not later than the 15th year thereafter, in such manner as the governing body may determine.

      4.  Special obligation bonds must mature within 50 years from their respective dates.

      5.  As used in this section:

      (a) “Wastewater facility” has the meaning ascribed to it in NRS 377B.030.

      (b) “Water facility” has the meaning ascribed to it in NRS 377B.050.

      Sec. 12. NRS 350.678 is hereby amended to read as follows:

      350.678  1.  Except as otherwise provided in NRS 350.674, the proceeds of taxes, pledged revenues and other money, including without limitation proceeds of bonds to be issued or reissued after the issuance of interim debentures, and bonds issued to secure the payment of interim debentures, or any combination thereof, may be pledged to secure the payment of interim debentures; but the proceeds of taxes and the proceeds of bonds payable from taxes, or any combination thereof, must not be used to pay any special obligation interim debentures nor may their payment be secured by a pledge of any such general obligation bonds.

      2.  Any bonds pledged as collateral security for the payment of any interim debentures must mature at such time or times as the governing body may determine, except as otherwise provided in subsections 2 , [and] 3 and 4 of NRS 350.630.

      3.  Any bonds pledged as collateral security must not be issued in an aggregate principal amount exceeding the aggregate principal amount of the interim debenture or interim debentures secured by a pledge of such bonds, nor may they bear interest at any time which, with any interest accruing at the same time on the interim debenture or interim debentures so secured, exceeds the rate permitted on the debenture or debentures secured, computed from the appropriate index which was most recently published before the bids are received or a negotiated offer is accepted.

      Sec. 13. NRS 350.682 is hereby amended to read as follows:

      350.682  1.  For the purpose of funding any interim debentures, any bonds pledged as collateral security to secure the payment of such interim debentures, upon their surrender as pledged property, may be reissued without an election, and any bonds not previously issued but authorized to be issued, at an election in the case of bonds required by law so to be authorized, and otherwise merely by the governing body, for a purpose or purposes the same as or encompassing the purpose or purposes for which the interim debentures were issued, may be issued for such a funding.

      2.  Any such bonds shall mature at such time or times as the governing body may determine, except as otherwise provided in subsections 2 , [and] 3 and 4 of NRS 350.630.

 


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      3.  Bonds for funding, including but not necessarily limited to any such reissued bonds, and bonds for any other purpose or purposes may be issued separately or issued in combination in one series or more.

      4.  Except as herein otherwise provided in this section and in NRS 350.676, 350.678 and 350.680, any such funding bonds shall be issued as is provided herein for other bonds.

      Sec. 14. NRS 350.694 is hereby amended to read as follows:

      350.694  1.  No bonds may be refunded under this chapter unless the holders thereof voluntarily surrender them for exchange or payment, or unless they either mature or are callable for prior redemption under their terms within 25 years from the date of issuance of the refunding bonds. Provision must be made for paying the securities within that period.

      2.  The maturity of any bond refunded may not be extended beyond 25 years, or beyond 1 year next following the date of the last outstanding maturity, whichever limitation is later, nor may any interest on any bond refunded be increased to any rate which exceeds the limit provided in NRS 350.2011.

      3.  The principal amount of the refunding bonds may exceed the principal amount of the refunded bonds, but in the case of any bonds constituting a debt the principal of the bonds may not be increased to any amount in excess of any municipal debt limitation.

      4.  The principal amount of the refunding bonds may also be less than or the same as the principal amount of the bonds being refunded so long as provision is duly and sufficiently made for their payment.

      5.  If at the time of the issuance of any issue of general obligation refunding bonds provision is not made for the redemption of all the outstanding bonds of the [or] issue refunded or the outstanding bonds of each issue refunded, as the case may be, by the use of proceeds of the refunding bonds and any other money available for the redemption, the general obligation refunding bonds may mature but are not required to mature serially [commencing not later than the fifth year after their respective dates] in accordance with [subsection] subsections 2 and 3 of NRS 350.630.

      Sec. 15.  This act becomes effective on July 1, 2011.

________

 


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CHAPTER 505, AB 376

Assembly Bill No. 376–Assemblymen Smith, Bobzien, Kirkpatrick; Conklin, Hogan and Oceguera

 

Joint Sponsor: Senator Leslie

 

CHAPTER 505

 

[Approved: June 17, 2011]

 

AN ACT relating to local governmental administration; authorizing certain local governments to impose a surcharge for the improvement and maintenance of certain publicly owned facilities; making various changes regarding the financing of certain local improvements with revenue pledged from sales and use taxes; providing a procedure for the selection of subcontractors on certain contracts; authorizing the imposition of a surcharge in certain counties on the amount charged for any items or services related to a minor league baseball stadium project; revising provisions regarding the establishment and maintenance of a reserve account for payment of the outstanding bonds of a school district; requiring certain plans relating to the water reclamation facility of the City of North Las Vegas; and providing other matters properly relating thereto.

 

Legislative Counsel’s Digest:

      Section 1 of this bill authorizes the governing body of a city whose population is 220,000 or more in a county whose population is 100,000 or more but less than 700,000 (currently the City of Reno) to create by ordinance a district to finance capital projects necessary to improve and maintain publicly owned facilities for tourism and entertainment. Section 1 requires that the ordinance creating such a district impose a surcharge of $2 on the per night charge for the rental of a room in a hotel in the district that holds a nonrestricted gaming license. Section 1 also provides that the proceeds of the surcharge be used only for the cost of improving and maintaining publicly owned facilities for tourism and entertainment in the district or within 1 mile outside the boundaries of the district, except for a minor league baseball stadium project.

      Existing law authorizes the governing body of any city or county to create a tourism improvement district (TID) and to pledge revenue from several sales and use taxes imposed in that district to finance certain projects within the district. The projects may be owned by the municipality, another governmental entity or any person and may be financed through the issuance of bonds or the entry into agreements for the reimbursement of the costs of the projects. (Chapter 271A of NRS) Section 4 of this bill requires the independent auditing of claims made under agreements to provide such financing. Section 4 also prohibits the use of such financing, with respect to a TID created on or after July 1, 2011, to pay various fees and costs and for the relocation within the TID of a retailer from another location within 3 miles outside of the boundary of the TID, and excludes the use for such financing of the tax revenue from such a retailer. Section 8 of this bill prohibits the provision of such financing to certain governmental entities if a nongovernmental entity obtained any of the original financing in the TID, and prohibits such financing, without the consent of the entities which obtained the original financing in the TID, to an entity that did not obtain any of the original financing in the TID. Section 5 of this bill specifies the procedure required for the selection of subcontractors by contractors and developers who enter into certain construction contracts on financed projects or on property within a TID which benefits from financed infrastructure improvements.

 


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on property within a TID which benefits from financed infrastructure improvements. Section 6 of this bill requires a municipality that creates a TID to prepare and submit to the Legislature annual reports regarding the TID, and requires the Department of Taxation to prepare and submit to the Legislature and the municipality semiannual reports regarding businesses within a TID. Section 9 of this bill applies the prevailing wage provisions applicable to public works to construction contracts for financed projects within a TID to the same extent as if the contracts were awarded by the municipality and the projects constituted public works.

      Existing law does not allow the creation of a TID unless the pertinent governing body makes a written finding at a public hearing, based upon reports from independent consultants, as to whether the proposed project and financing will have a positive fiscal effect on the provision of local governmental services. (NRS 271A.080) Section 7 of this bill requires the selection of those independent consultants from a list provided by the Commission on Tourism.

      Existing law authorizes the board of county commissioners of a county whose population is 100,000 or more but less than 400,000 (currently Washoe County) to acquire, lease, improve, equip, operate and maintain within the county a minor league baseball stadium project and to create a stadium authority to operate the project. Section 10 of this bill authorizes the stadium authority to recommend the imposition of a surcharge on the amount charged for any items or services related to such a project. If the surcharge is approved by a two-thirds majority vote of the governing body of the city in which the project is located, section 10 provides for the use of the proceeds of the surcharge. Section 10 also revises the membership of a stadium authority which operates such a project.

      Under existing law, the board of trustees of a school district may issue certain general obligation bonds. At the time the bonds are issued, the board of trustees must establish in its debt service fund a reserve account for payment of the outstanding bonds of the school district. (NRS 350.020) Section 12 of this bill changes the amount of the reserves required to 10 percent of the outstanding principal or 25 percent, for larger counties, and 50 percent, for smaller counties, of the amount of principal and interest payments due on all outstanding bonds of the school district in the next fiscal year, whichever is less.

      Section 15 of this bill requires the City of North Las Vegas to develop certain plans relating to its water reclamation facility.

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. Chapter 268 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  The governing body of a city whose population is 220,000 or more in a county whose population is 100,000 or more but less than 700,000 may by ordinance create a district to finance capital projects necessary to improve and maintain publicly owned facilities for tourism and entertainment. Such an ordinance must be approved by a two-thirds majority of the members of the governing body.

      2.  The boundaries of a district created pursuant to subsection 1 must be as prescribed by the governing body in the ordinance creating the district, except that the boundaries must include only property that is located in or within 4 city blocks, as determined by the governing body, of a district described in NRS 268.780 to 268.785, inclusive.

 


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      3.  An ordinance enacted pursuant to subsection 1 must impose a surcharge of $2 on the per night charge for the rental of a room in a hotel in the district that holds a nonrestricted gaming license. The surcharge must not be applied for any time during which the room is provided to a guest free of charge.

      4.  The proceeds of the surcharge imposed pursuant to this section must be retained by the city and must be used by the city solely to pay the cost of improving and maintaining publicly owned facilities for tourism and entertainment in the district or within 1 mile outside the boundaries of the district, except for a minor league baseball stadium project as defined in NRS 244A.0344. The proceeds of the surcharge must not be transferred to any other fund or account or used for any other purpose.

      5.  On or before January 15, 2030, the governing body of a city that has created a district pursuant to this section shall submit a report concerning the district to the Director of the Legislative Counsel Bureau for transmission to the next regular session of the Legislature. The report must:

      (a) Address, without limitation, the total amount collected from the surcharge imposed pursuant to this section and all the projects undertaken to improve and maintain the publicly owned facilities for tourism and entertainment in the district.

      (b)Cover the period between the creation of the district until the end of the calendar year immediately preceding the submission of the report.

      Sec. 2. NRS 268.526 is hereby amended to read as follows:

      268.526  In addition to any other powers which it may now have, each city shall have the following powers:

      1.  To finance or acquire, whether by construction, purchase, gift, devise, lease or sublease, or any one or more of such methods, and to improve and equip one or more projects, or part thereof. Such projects, upon completion of such acquisition, shall be located within, or within 10 miles of, the city.

      2.  To finance, sell, lease or otherwise dispose of any or all of its projects upon such terms and conditions as the governing body considers advisable.

      3.  To issue revenue bonds for the purpose of financing or defraying the cost of acquiring, improving and equipping any project as set forth in NRS 268.556.

      4.  To secure payment of such bonds as provided in NRS 268.512 to 268.568, inclusive [.] , including, without limitation, from the proceeds of the surcharge imposed pursuant to NRS 244A.830.

      5.  To take such actions as are necessary or useful in order to undertake, carry out, accomplish and otherwise implement the provisions of NRS 268.512 to 268.568, inclusive, including the adoption of resolutions, which may be introduced and adopted at the same special or regular meeting of the governing body and which shall become effective upon adoption.

      Sec. 3. Chapter 271A of NRS is hereby amended by adding thereto the provisions set forth as sections 4, 5 and 6 of this act.

      Sec. 4. The governing body of a municipality:

      1.  Shall require the review of each claim submitted pursuant to any contract or other agreement made with the governing body to provide any financing or reimbursement pursuant to NRS 271A.120, by an independent auditor.

 


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      2.  Shall not, with respect to any district created on or after July 1, 2011, provide any financing or reimbursement pursuant to NRS 271A.120 for:

      (a) Any legal fees, accounting fees, costs of insurance, fees for legal notices or costs to amend any ordinances.

      (b) Any project that includes the relocation on or after July 1, 2011, to the district of any retail facilities of a retailer from another location outside of and within 3 miles of the boundary of the district. Each pledge of money pursuant to NRS 271A.070 shall be deemed to exclude any amounts attributable to any tangible personal property sold at retail, or stored, used or otherwise consumed, in the district during a fiscal year by a retailer who, on or after July 1, 2011, relocates any of its retail facilities to the district from another location outside of and within 3 miles of the boundary of the district.

      Sec. 5. 1.  Except as otherwise provided in subsection 2, a contractor or developer who enters into a contract to which the provisions of subsection 3 of NRS 271A.130 apply shall:

      (a)Advertise for at least 7 calendar days for bids on each subcontract for the performance of any portion of the contract;

      (b) At least 2 business days before the first day of that advertisement, provide notice of that advertisement to the governing body of the municipality;

      (c)Make available to all prospective bidders on the subcontract a written set of plans and specifications for the pertinent work;

      (d)Provide public notice of the name and address of each person who submits a bid on the subcontract; and

      (e)After closing the period for the solicitation of bids and receiving at least three timely and responsive bids, select any subcontractor from those timely and responsive bids that the contractor or developer, in his or her sole discretion, determines to be appropriate, except that the contractor or developer shall ensure that each subcontractor who will perform any portion of the contract is appropriately licensed pursuant to chapter 624 of NRS.

      2.  The provisions of subsection 1 do not apply to:

      (a) Any contract which is awarded by a municipality; or

      (b) Any project which is constructed or maintained by a governmental entity on any property while the governmental entity owns that property.

      3.  A governing body of a municipality that receives a notice of an advertisement for bids pursuant to paragraph (b) of subsection 1:

      (a)Shall, upon such receipt, post notice of the advertisement on an Internet website maintained by the municipality; and

      (b)May otherwise provide notice of the advertisement to local trade organizations and the general public.

      Sec. 6. 1.  On or before September 1 of each year, the governing body of a municipality that creates a district before, on or after July 1, 2011, shall prepare and submit to the Director of the Legislative Counsel Bureau for submission to the Legislature, or to the Legislative Commission when the Legislature is not in regular session, an annual report containing:

 


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      (a) A statement of the status of each project located or expected to be located in the district, and of any changes in that status since the last annual report.

      (b) An assessment of the financial impact of the district on the provision of local governmental services, including, without limitation, services for police protection and fire protection.

      2.  If the governing body of a municipality creates a district before, on or after July 1, 2011, the Department of Taxation shall:

      (a)On or before April 1 and October 1 of each year, prepare and submit to the Director of the Legislative Counsel Bureau for submission to the Legislature, or to the Legislative Commission when the Legislature is not in regular session, and to the governing body of the municipality a semiannual report which states:

             (1)The amount of revenue from the taxable sales made each month by each business within the district;

             (2)To the extent that the pertinent information is available, the portion of that revenue which is attributable to persons who are not residents of this State;

             (3)The amount of the wages paid each month by each business within the district; and

             (4)The number of full-time and part-time employees employed each month by each business within the district.

      (b)Require each business within the district to report to the Department of Taxation, at such times as the Department may specify on a form provided by the Department, such information as the Department determines to be necessary to carry out the provisions of paragraph (a).

      3.  Except as otherwise provided in subsection 2 or another specific statute, the Department of Taxation shall not disclose any information reported to the Department pursuant to subsection 2.

      4.  As used in this section, “taxable sales” means any sales that are taxable pursuant to chapter 372 of NRS.

      Sec. 7. NRS 271A.080 is hereby amended to read as follows:

      271A.080  The governing body of a municipality shall not adopt an ordinance pursuant to NRS 271A.070 unless:

      1.  If the ordinance:

      (a) Creates a district, the governing body has determined that no retailers will have maintained or will be maintaining a fixed place of business within the district on or within the 120 days immediately preceding the date of the adoption of the ordinance; or

      (b) Amends the boundaries of the district to add any additional area, the governing body has determined that no retailers will have maintained or will be maintaining a fixed place of business within that area on or within 120 days immediately preceding the date of the adoption of the ordinance.

      2.  The governing body has made a written finding at a public hearing that the project will benefit the district.

      3.  The governing body has made a written finding at a public hearing, based upon reports from independent consultants which were addressed to the governing body, to the board of county commissioners, if the governing body is not the board of county commissioners for the county in which the tourism improvement district is or will be located, and to the board of trustees of the school district in which the tourism improvement district is or will be located, as to whether the project and the financing thereof pursuant to this chapter will have a positive fiscal effect on the provision of local governmental services, after considering:

 


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the governing body, to the board of county commissioners, if the governing body is not the board of county commissioners for the county in which the tourism improvement district is or will be located, and to the board of trustees of the school district in which the tourism improvement district is or will be located, as to whether the project and the financing thereof pursuant to this chapter will have a positive fiscal effect on the provision of local governmental services, after considering:

      (a) The amount of the proceeds of all taxes and other governmental revenue projected to be received as a result of the properties and businesses expected to be located in the district;

      (b) The use of any money proposed to be pledged pursuant to NRS 271A.070;

      (c) Any increase in costs for the provision of local governmental services, including, without limitation, services for education, including operational and capital costs, and services for police protection and fire protection, as a result of the project and the development of land within the district; and

      (d) Estimates of any increases in the proceeds from sales and use taxes collected by retailers located outside of the district and of any displacement of the proceeds from sales and use taxes collected by those retailers, as a result of the properties and businesses expected to be located in the district.

Κ The reports required from independent consultants pursuant to this subsection must be obtained from independent consultants selected by the governing body from a list of independent consultants provided by the Commission on Tourism. For the purposes of this subsection, the Commission shall, upon the request of a governing body, provide the governing body with a list of at least three qualified independent consultants, each of whom must be located outside of this State.

      4.  The governing body has, at least 45 days before making the written finding required by subsection 3, provided to the board of trustees of the school district in which the tourism improvement district is or will be located:

      (a) Written notice of the time and place of the meeting at which the governing body will consider making that written finding; and

      (b) Each analysis prepared by or for or presented to the governing body regarding the fiscal effect of the project and the use of any money proposed to be pledged pursuant to NRS 271A.070 on the provision of local governmental services, including education.

Κ After the receipt of the notice required by this subsection and before the date of the meeting at which the governing body will consider making the written finding required by subsection 3, the board of trustees shall conduct a hearing regarding the fiscal effect on the school district, if any, of the project and the use of any money proposed to be pledged pursuant to NRS 271A.070, and may submit to the governing body of the municipality any comments regarding that fiscal effect. The governing body shall consider those comments when making any written finding pursuant to subsection 3 and shall consider those comments when considering the terms of any agreement pursuant to NRS 271A.110.

 


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      5.  If the governing body is not the board of county commissioners for the county in which the tourism improvement district is or will be located, the governing body has, at least 45 days before making the written finding required by subsection 3, provided to the board of county commissioners in the county in which the tourism improvement district is or will be located:

      (a) Written notice of the time and place of the meeting at which the governing body will consider making that written finding; and

      (b) Each analysis prepared by or for or presented to the governing body regarding the fiscal effect of the project and the use of any money proposed to be pledged pursuant to NRS 271A.070 on the provision of local governmental services.

Κ After the receipt of the notice required by this subsection and before the date of the meeting at which the governing body will consider making the written finding required by subsection 3, the board of county commissioners may conduct a hearing regarding the fiscal effect on local governmental services, if any, of the project and the use of any money proposed to be pledged pursuant to NRS 271A.070, and may submit to the governing body of the municipality any comments regarding that fiscal effect. The governing body may consider those comments when making any written finding pursuant to subsection 3 and shall consider those comments when considering the terms of any agreement pursuant to NRS 271A.110.

      6.  The governing body has determined, at a public hearing conducted at least 15 days after providing notice of the hearing by publication, that:

      (a) As a result of the project:

             (1) Retailers will locate their businesses as such in the district; and

             (2) There will be a substantial increase in the proceeds from sales and use taxes remitted by retailers with regard to tangible personal property sold at retail, or stored, used or otherwise consumed, in the district; and

      (b) A preponderance of that increase in the proceeds from sales and use taxes will be attributable to transactions with tourists who are not residents of this State.

      7.  The Commission on Tourism has determined, at a public hearing conducted at least 15 days after providing notice of the hearing by publication, that a preponderance of the increase in the proceeds from sales and use taxes identified pursuant to subsection 6 will be attributable to transactions with tourists who are not residents of this State.

      8.  The Governor has determined that the project and the use of any money proposed to be pledged pursuant to NRS 271A.070 will contribute significantly to economic development and tourism in this State. Before making that determination, the Governor:

      (a) Must consider the fiscal effects of the pledge of money on educational funding, including any fiscal effects described in comments provided pursuant to subsection 4 by the school district in which the tourism improvement district is or will be located, and for that purpose may require the Department of Education or the Department of Taxation, or both, to provide an appropriate fiscal report; and

      (b) If the Governor determines that the pledge of money will have a substantial adverse fiscal effect on educational funding, may require a commitment from the municipality for the provision of specified payments to the school district in which the tourism improvement district is or will be located during the term of the use of any money pledged pursuant to NRS 271A.070. The payments may be provided pursuant to agreements with owners of property within the district authorized by NRS 271A.110 or from sources other than the owners of property within the district.

 


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owners of property within the district authorized by NRS 271A.110 or from sources other than the owners of property within the district. Such a commitment by a municipality is not subject to the limitations of subsection 1 of NRS 354.626 and, notwithstanding any other law to the contrary, is binding on the municipality for the term of the use of any money pledged pursuant to NRS 271A.070.

      9.  If any property within the boundaries of the district is also included within the boundaries of any other tourism improvement district or any improvement district for which any money has been pledged pursuant to NRS 271.650, all of the governing bodies which created those districts have entered into an interlocal agreement providing for:

      (a) The apportionment of any money pledged pursuant to NRS 271.650 and 271A.070 with respect to such property; and

      (b) The priority of the application of that money between:

             (1) Bonds issued pursuant to chapter 271 of NRS; and

             (2) Bonds and notes issued, and agreements entered into, pursuant to NRS 271A.120.

Κ Any such agreement for the priority of the application of that money may be made irrevocable during the term of any bonds issued pursuant to chapter 271 of NRS to which all or any portion of that money is pledged, or during the term of any bonds or notes issued or any agreements entered into pursuant to NRS 271A.120 to which all or any portion of that money is pledged.

      Sec. 8. NRS 271A.120 is hereby amended to read as follows:

      271A.120  1.  Except as otherwise provided in this section, if the governing body of a municipality adopts an ordinance pursuant to NRS 271A.070, the municipality may:

      (a) Issue, at one time or from time to time, bonds or notes as special obligations under the Local Government Securities Law to finance or refinance projects for the benefit of the district. Any such bonds or notes may be secured by a pledge of, and be payable from, any money pledged pursuant to NRS 271A.070 and received by the municipality with respect to the district, any revenue received by the municipality from any revenue-producing projects in the district, or any combination thereof.

      (b) Enter into an agreement with one or more governmental entities or other persons to reimburse that entity or person for the cost of acquiring, improving or equipping, or any combination thereof, any project, which may contain such terms as are determined to be desirable by the governing body of the municipality, including the payment of reasonable interest and other financing costs incurred by such entity or other person. Any such reimbursements may be secured by a pledge of, and be payable from, any money pledged pursuant to NRS 271A.070 and received by the municipality with respect to the district, any revenue received by the municipality from any revenue-producing projects in the district, or any combination thereof. Such an agreement is not subject to the limitations of subsection 1 of NRS 354.626 and may, at the option of the governing body, be binding on the municipality beyond the fiscal year in which it was made, only if the agreement pertains solely to one or more projects that are owned by the municipality or another governmental entity.

 


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      2.  The governing body of a municipality shall not, with respect to any district created before, on or after July 1, 2011, provide any financing or reimbursement pursuant to this section:

      (a) Except as otherwise provided in this paragraph, to any governmental entity for any project within the district if any nongovernmental entity is or was entitled to receive any financing or reimbursement from the municipality pursuant to this section under the original financing agreements for the initial projects within the district. This paragraph does not prohibit the provision of such financing or reimbursement to:

             (1)A school district; or

             (2)A governmental entity that is or was entitled to receive such financing or reimbursement under the original financing agreements for the initial projects within the district.

      (b)To any person or other entity for any project within the district, other than a person or other entity that is or was entitled to receive such financing or reimbursement from the municipality under the original financing agreements for the initial projects within the district, without the consent of all the persons and other entities that were entitled to receive such financing or reimbursement under the original financing agreements for the initial projects within the district.

      3.  Before the issuance of any bonds or notes pursuant to this section, the municipality must obtain the results of a feasibility study, commissioned by the municipality, which shows that a sufficient amount will be generated from money pledged pursuant to NRS 271A.070 to make timely payment on the bonds or notes, taking into account the revenue from any other revenue-producing projects also pledged for the payment of the bonds or notes, if any. A failure to make payments of any amounts due:

      (a) With respect to any bonds or notes issued pursuant to subsection 1; or

      (b) Under any agreements entered into pursuant to subsection 1,

Κ because of any insufficiency in the amount of money pledged pursuant to NRS 271A.070 to make those payments shall be deemed not to constitute a default on those bonds, notes or agreements.

      [3.]4. No bond, note or other agreement issued or entered into pursuant to this section may be secured by or payable from the general fund of the municipality, the power of the municipality to levy ad valorem property taxes, or any source other than any money pledged pursuant to NRS 271A.070 and received by the municipality with respect to the district, any revenue received by the municipality from any revenue-producing projects in the district, or any combination thereof. No bond, note or other agreement issued or entered into pursuant to this section may ever become a general obligation of the municipality or a charge against its general credit or taxing powers, nor may any such bond, note or other agreement become a debt of the municipality for purposes of any limitation on indebtedness.

      [4.]5. Any bond or note issued pursuant to this section, including any bond or note issued to refund any such bond or note, must mature on or before, and any agreement entered pursuant to this section must automatically terminate on or before, the end of the fiscal year in which the 20th anniversary of the adoption of the ordinance creating the district occurs.

 


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      Sec. 9. NRS 271A.130 is hereby amended to read as follows:

      271A.130  1.  Except as otherwise provided in this section [,] and section 5 of this act and notwithstanding any other law to the contrary, any contract or other agreement relating to or providing for the construction, improvement, repair, demolition, reconstruction, other acquisition, equipment, operation or maintenance of any project financed in whole or in part pursuant to this chapter is exempt from any law requiring competitive bidding or otherwise specifying procedures for the award of contracts for construction or other contracts, or specifying procedures for the procurement of goods or services. The governing body of the municipality shall require a quarterly report on the demography of the workers employed by any contractor or subcontractor for each such project.

      2.  The provisions of subsection 1 do not apply to any project which is constructed or maintained by a governmental entity on any property while the governmental entity owns that property.

      3.  [The provisions of NRS 338.010 to 338.090, inclusive, apply to] Except as otherwise provided in subsection 5, a person who enters into any contract or other agreement for the construction, improvement, repair, demolition or reconstruction of any project that is paid for in whole or in part:

      (a) From the proceeds of bonds or notes issued pursuant to paragraph (a) of subsection 1 of NRS 271A.120; or

      (b) Pursuant to an agreement for reimbursement entered into pursuant to paragraph (b) of subsection 1 of NRS 271A.120,

Κ [regardless of whether the project is publicly or privately owned.] shall include in the contract or other agreement the contractual provisions and stipulations that are required to be included in a contract for a public work pursuant to the provisions of NRS 338.013 to 338.090, inclusive. The governing body of the municipality, the contractor who is awarded the contract or enters into the agreement to perform the construction, improvement, repair, demolition or reconstruction, and any subcontractor who performs any portion of the contract or agreement shall comply with the provisions of NRS 338.013 to 338.090, inclusive, in the same manner as if the governing body of the municipality had undertaken the project or had awarded the contract.

      4.  The governing body of the municipality shall ensure that each contractor and developer to whom the provisions of section 5 of this act apply complies with those provisions.

      5.  The provisions of subsection 3 do not apply to a contract or other agreement for the construction, improvement, repair, demolition or reconstruction of any improvement to a building leased to a tenant that is paid for, in whole or in part, or which benefits from the proceeds of bonds or notes issued pursuant to paragraph (a) of subsection 1 of NRS 271A.120 or pursuant to an agreement for reimbursement entered into pursuant to paragraph (b) of subsection 1 of NRS 271A.120 and which is entered into after completion of the original construction:

      (a) For any subsequent improvement to the building by the original tenant or a subsequent tenant.

      (b) For any improvement to the building by the original tenant which is undertaken more than 60 months after the building is first made available for lease.

 


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      6.  As used in this section:

      (a)“Original construction” means any contract or other agreement for the construction, improvement, repair, demolition or reconstruction of a project paid for, in whole or in part, or which benefits:

             (1)From the proceeds of bonds or notes issued pursuant to paragraph (a) of subsection 1 of NRS 271A.120; or

             (2)Pursuant to an agreement for reimbursement entered into pursuant to paragraph (b) of subsection 1 of NRS 271A.120.

      (b)“Original tenant” means the first tenant of any leased property after the property is first made available for lease.

      Sec. 10. NRS 244A.830 is hereby amended to read as follows:

      244A.830  1.  A board of county commissioners that adopts an ordinance imposing a fee pursuant to NRS 244A.810 shall create a stadium authority to [operate] assist in the operation of the minor league baseball stadium project. The stadium authority must consist of:

      (a) [One member] Two members of the board of county commissioners appointed by the board;

      (b) [One member] Three members from the governing body of [each] the city in [the county whose population is 60,000 or more,] which the minor league baseball stadium is located appointed by that governing body; and

      (c) [If the stadium authority enters into an agreement with an AA or AAA minor league baseball team pursuant to which the team agrees to play its home games in the stadium, two] Two persons appointed by the owner of the minor league baseball team [.] that will play its home games in the stadium.

      2.  The members of the stadium authority serve at the pleasure of the governmental entity or person who appointed them to serve in that capacity.

      3.  [The stadium authority shall:

      (a) Be responsible for the normal operations of the minor league baseball stadium project; and

      (b) Enter into an agreement with the board of county commissioners that sets forth the specific rights, obligations and duties of the stadium authority regarding those operations.] A meeting of the stadium authority must be scheduled if two or more members request a meeting of the stadium authority.

      4.  The stadium authority may recommend to the governing body of the city in which the minor league baseball stadium is located that the governing body impose a surcharge on items or services related to the minor league baseball stadium project. The surcharge must be approved by a two-thirds majority of the governing body. Any proceeds from a surcharge imposed pursuant to this section must be paid to and collected by the city and must be used solely to pay the costs to acquire, lease, improve, equip, operate and maintain the minor league baseball stadium project, or to pay the principal of, interest on or other payments due with respect to bonds issued by the city to pay such costs, including bonds issued to refund bonds issued to pay such costs, or any combination thereof. The proceeds of the surcharge must not be transferred to any other fund or account or used for any other purpose.

 


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      Sec. 11. NRS 279.636 is hereby amended to read as follows:

      279.636  1.  An agency may issue such types of bonds as it may determine, including bonds on which the principal and interest are payable:

      (a) Exclusively from the income and revenues of the redevelopment projects financed with the proceeds of the bonds, or with those proceeds together with financial assistance from the State or Federal Government in aid of the projects.

      (b) Exclusively from the income and revenues of certain designated redevelopment projects whether or not they were financed in whole or in part with the proceeds of the bonds.

      (c) In whole or in part from taxes allocated to, and paid into a special fund of, the agency pursuant to the provisions of NRS 279.674 to 279.685, inclusive.

      (d) From its revenues generally.

      (e) From any contributions or other financial assistance from the State or Federal Government.

      (f) From the proceeds of the surcharge imposed pursuant to NRS 244A.830.

      (g)By any combination of these methods.

      2.  Any of the bonds may be additionally secured by a pledge of any revenue or by an encumbrance by mortgage, deed of trust or otherwise of any redevelopment project or other property of the agency or by a pledge of the taxes referred to in subsection 1.

      3.  Amounts payable in any manner permitted by this section may be additionally secured by a pledge of the full faith and credit of the community whose legislative body has declared the need for the agency to function. Such additional security may only be provided upon the approval of the majority of the voters voting on the question at a primary or general election or a special election called for that purpose. In its proposal to its voters the governing body shall define the area to be redeveloped, the primary source or sources of revenue first to be employed to retire the bonds and the maximum sum for which the city may pledge its full faith and credit in connection with the bonds to be issued for the project.

      Sec. 12. NRS 350.020 is hereby amended to read as follows:

      350.020  1.  Except as otherwise provided by subsections 3 and 4, if a municipality proposes to issue or incur general obligations, the proposal must be submitted to the electors of the municipality at a special election called for that purpose or the next general municipal election or general state election.

      2.  Such a special election may be held:

      (a) At any time, including, without limitation, on the date of a primary municipal election or a primary state election, if the governing body of the municipality determines, by a unanimous vote, that an emergency exists; or

      (b) On the first Tuesday after the first Monday in June of an odd-numbered year.

Κ The determination made by the governing body is conclusive unless it is shown that the governing body acted with fraud or a gross abuse of discretion. An action to challenge the determination made by the governing body must be commenced within 15 days after the governing body’s determination is final. As used in this subsection, “emergency” means any occurrence or combination of occurrences which requires immediate action by the governing body of the municipality to prevent or mitigate a substantial financial loss to the municipality or to enable the governing body to provide an essential service to the residents of the municipality.

 


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financial loss to the municipality or to enable the governing body to provide an essential service to the residents of the municipality.

      3.  If payment of a general obligation of the municipality is additionally secured by a pledge of gross or net revenue of a project to be financed by its issue, and the governing body determines, by an affirmative vote of two-thirds of the members elected to the governing body, that the pledged revenue will at least equal the amount required in each year for the payment of interest and principal, without regard to any option reserved by the municipality for early redemption, the municipality may, after a public hearing, incur this general obligation without an election unless, within 90 days after publication of a resolution of intent to issue the bonds, a petition is presented to the governing body signed by not less than 5 percent of the registered voters of the municipality. Any member elected to the governing body whose authority to vote is limited by charter, statute or otherwise may vote on the determination required to be made by the governing body pursuant to this subsection. The determination by the governing body becomes conclusive on the last day for filing the petition. For the purpose of this subsection, the number of registered voters must be determined as of the close of registration for the last preceding general election. The resolution of intent need not be published in full, but the publication must include the amount of the obligation and the purpose for which it is to be incurred. Notice of the public hearing must be published at least 10 days before the day of the hearing. The publications must be made once in a newspaper of general circulation in the municipality. When published, the notice of the public hearing must be at least as large as 5 inches high by 4 inches wide.

      4.  The board of trustees of a school district may issue general obligation bonds which are not expected to result in an increase in the existing property tax levy for the payment of bonds of the school district without holding an election for each issuance of the bonds if the qualified electors approve a question submitted by the board of trustees that authorizes issuance of bonds for a period of 10 years after the date of approval by the voters. If the question is approved, the board of trustees of the school district may issue the bonds for a period of 10 years after the date of approval by the voters, after obtaining the approval of the debt management commission in the county in which the school district is located and, in a county whose population is 100,000 or more, the approval of the oversight panel for school facilities established pursuant to NRS 393.092 in that county, if the board of trustees of the school district finds that the existing tax for debt service will at least equal the amount required to pay the principal and interest on the outstanding general obligations of the school district and the general obligations proposed to be issued. The finding made by the board of trustees is conclusive in the absence of fraud or gross abuse of discretion. As used in this subsection, “general obligations” does not include medium-term obligations issued pursuant to NRS 350.087 to 350.095, inclusive.

      5.  At the time of issuance of bonds authorized pursuant to subsection 4, the board of trustees shall establish a reserve account in its debt service fund for payment of the outstanding bonds of the school district. The reserve account must be established and maintained in an amount at least equal to the lesser of :

      (a)For a school district located in a county whose population is 100,000 or more, 25 percent; and

 


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      (b)For a school district located in a county whose population is less than 100,000, 50 percent,

Κ of the amount of principal and interest payments due on all of the outstanding bonds of the school district in the next fiscal year or 10 percent of the outstanding principal amount of the outstanding bonds of the school district.

      6.  If the amount in the reserve account falls below the amount required by [this] subsection [:] 5:

      (a) The board of trustees shall not issue additional bonds pursuant to subsection 4 until the reserve account is restored to the level required by [this] subsection [;] 5; and

      (b) The board of trustees shall apply all of the taxes levied by the school district for payment of bonds of the school district that are not needed for payment of the principal and interest on bonds of the school district in the current fiscal year to restore the reserve account to the level required pursuant to [this] subsection [.] 5.

      [6.]7. A question presented to the voters pursuant to subsection 4 may authorize all or a portion of the revenue generated by the debt rate which is in excess of the amount required:

      (a) For debt service in the current fiscal year;

      (b) For other purposes related to the bonds by the instrument pursuant to which the bonds were issued; and

      (c) To maintain the reserve account required pursuant to subsection 5,

Κ to be transferred to the county school district’s fund for capital projects established pursuant to NRS 387.328 and used to pay the cost of capital projects which can lawfully be paid from that fund. Any such transfer must not limit the ability of the school district to issue bonds during the period of voter authorization if the findings and approvals required by subsection 4 are obtained.

      [7.]8. A municipality may issue special or medium-term obligations without an election.

      Sec. 13. NRS 372.750 is hereby amended to read as follows:

      372.750  1.  Except as otherwise provided in this section or NRS 360.247, or section 6 of this act, it is a misdemeanor for any member of the Tax Commission or officer, agent or employee of the Department to make known in any manner whatever the business affairs, operations or information obtained by an investigation of records and equipment of any retailer or any other person visited or examined in the discharge of official duty, or the amount or source of income, profits, losses, expenditures or any particular of them, set forth or disclosed in any return, or to permit any return or copy of a return, or any book containing any abstract or particulars of it to be seen or examined by any person not connected with the Department.

      2.  The Tax Commission may agree with any county fair and recreation board or the governing body of any county, city or town for the continuing exchange of information concerning taxpayers.

      3.  The Governor may, by general or special order, authorize the examination of the records maintained by the Department under this chapter by other state officers, by tax officers of another state, by the Federal Government, if a reciprocal arrangement exists, or by any other person. The information so obtained may not be made public except to the extent and in the manner that the order may authorize that it be made public.

 


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      4.  Upon written request made by a public officer of a local government, the Executive Director shall furnish from the records of the Department, the name and address of the owner of any seller or retailer who must file a return with the Department. The request must set forth the social security number of the owner of the seller or retailer about which the request is made and contain a statement signed by the proper authority of the local government certifying that the request is made to allow the proper authority to enforce a law to recover a debt or obligation owed to the local government. Except as otherwise provided in NRS 239.0115, the information obtained by the local government is confidential and may not be used or disclosed for any purpose other than the collection of a debt or obligation owed to that local government. The Executive Director may charge a reasonable fee for the cost of providing the requested information.

      5.  Successors, receivers, trustees, executors, administrators, assignees and guarantors, if directly interested, may be given information as to the items included in the measure and amounts of any unpaid tax or amounts of tax required to be collected, interest and penalties.

      6.  Relevant information that the Tax Commission has determined is not proprietary or confidential information in a hearing conducted pursuant to NRS 360.247 may be disclosed as evidence in an appeal by the taxpayer from a determination of tax due.

      7.  At any time after a determination, decision or order of the Executive Director or other officer of the Department imposing upon a person a penalty for fraud or intent to evade the tax imposed by this chapter on the sale, storage, use or other consumption of any vehicle, vessel or aircraft becomes final or is affirmed by the Commission, any member of the Commission or officer, agent or employee of the Department may publicly disclose the identity of that person and the amount of tax assessed and penalties imposed against that person.

      Sec. 14. NRS 374.755 is hereby amended to read as follows:

      374.755  1.  Except as otherwise provided in this section or NRS 360.247, or section 6 of this act, it is a misdemeanor for any member of the Nevada Tax Commission or officer, agent or employee of the Department to make known in any manner whatever the business affairs, operations or information obtained by an investigation of records and equipment of any retailer or any other person visited or examined in the discharge of official duty, or the amount or source of income, profits, losses, expenditures or any particular thereof, set forth or disclosed in any return, or to permit any return or copy thereof, or any book containing any abstract or particulars thereof to be seen or examined by any person not connected with the Department.

      2.  The Nevada Tax Commission may agree with any county fair and recreation board or the governing body of any county, city or town for the continuing exchange of information concerning taxpayers.

      3.  The Governor may, however, by general or special order, authorize the examination of the records maintained by the Department under this chapter by other state officers, by tax officers of another state, by the Federal Government, if a reciprocal arrangement exists, or by any other person. The information so obtained pursuant to the order of the Governor may not be made public except to the extent and in the manner that the order may authorize that it be made public.

      4.  Upon written request made by a public officer of a local government, the Executive Director shall furnish from the records of the Department, the name and address of the owner of any seller or retailer who must file a return with the Department.

 


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name and address of the owner of any seller or retailer who must file a return with the Department. The request must set forth the social security number of the owner of the seller or retailer about which the request is made and contain a statement signed by the proper authority of the local government certifying that the request is made to allow the proper authority to enforce a law to recover a debt or obligation owed to the local government. Except as otherwise provided in NRS 239.0115, the information obtained by the local government is confidential and may not be used or disclosed for any purpose other than the collection of a debt or obligation owed to that local government. The Executive Director may charge a reasonable fee for the cost of providing the requested information.

      5.  Successors, receivers, trustees, executors, administrators, assignees and guarantors, if directly interested, may be given information as to the items included in the measure and amounts of any unpaid tax or amounts of tax required to be collected, interest and penalties.

      6.  Relevant information that the Nevada Tax Commission has determined is not proprietary or confidential information in a hearing conducted pursuant to NRS 360.247 may be disclosed as evidence in an appeal by the taxpayer from a determination of tax due.

      7.  At any time after a determination, decision or order of the Executive Director or other officer of the Department imposing upon a person a penalty for fraud or intent to evade the tax imposed by this chapter on the sale, storage, use or other consumption of any vehicle, vessel or aircraft becomes final or is affirmed by the Commission, any member of the Commission or officer, agent or employee of the Department may publicly disclose the identity of that person and the amount of tax assessed and penalties imposed against that person.

      Sec. 15.  1.  The City of North Las Vegas shall prepare and submit a plan for the routing of effluent that exits its water reclamation facility to the Clark County Water Reclamation District. The plan must include a consideration of the construction of a joint pipeline with the Clark County Water Reclamation District.

      2.  If a joint pipeline is not financially feasible, the City of North Las Vegas shall:

      (a) Provide for an environmental study of the impact of the water flow down the flood control channel on the quality of life and the value of adjacent homes.

      (b) Develop a plan to manage the flood control channel. The plan must include, without limitation:

             (1) A mechanism to ensure that the flood control channel is free from debris, waste and other elements that may cause an unpleasant smell or constitute an environmental, health or other community concerns.

             (2) Maintenance of fencing along the flood control channel, including a detail of the repairs that must be made.

             (3) An identification of the manner by which negative impacts, if any, of the flood control channel will be addressed, including, without limitation, the specific corrective actions to mitigate those negative impacts.

      3.  On or before February 1, 2013, the City of North Las Vegas shall submit a report to the Director of the Legislative Counsel Bureau for transmission to the next regular session of the Legislature on the status of the plans prepared by the City pursuant to this section. The report must include, without limitation:

 


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      (a) The findings of the City concerning the financial feasibility of developing a joint pipeline.

      (b) The status of the development of a joint pipeline, if any.

      (c) If the City of North Las Vegas found that a joint pipeline is not financially feasible, a description of the plan to manage the flood control channel developed pursuant to subsection 2.

      (d) The number of meetings held by the City of North Las Vegas to address the concerns of the community.

      (e) The extent to which the City of North Las Vegas has adhered to commitments it has made to its residents for community development projects.

      Sec. 16.  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. 17.  1.  This section and sections 1, 7, 12, 15 and 16 of this act become effective upon passage and approval.

      2.  Sections 2 to 6, inclusive, 8 to 11, inclusive, 13 and 14 of this act become effective on July 1, 2011.

      3.  The authorization to impose a surcharge pursuant to NRS 244A.830, as amended by section 10 of this act, expires by limitation on June 30 of the later of the fiscal year that is 20 years after the fiscal year in which the ordinance imposing the surcharge is adopted or the fiscal year in which all bonds issued pursuant to NRS 268.526 and 279.636, as amended by sections 2 and 11 of this act, including, without limitation, any bonds issued to refund bonds issued pursuant to those sections, respectively, are fully paid as to all principal, interest and any other amounts due.

________

 


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CHAPTER 506, AB 74

Assembly Bill No. 74–Committee on Commerce and Labor

 

CHAPTER 506

 

[Approved: June 17, 2011]

 

AN ACT relating to insurance; requiring the Commissioner of Insurance to adopt regulations relating to electronic signatures, records and payments; revising provisions relating to the external review of adverse determinations of health carriers; clarifying the circumstances under which an actuary is not liable for damages with respect to the actuary’s opinion; authorizing the electronic transmission of fingerprints with an application for a license; revising provisions relating to the licensing of adjusters; revising provisions relating to surplus lines insurance; revising provisions relating to the use of credit information; requiring that certain policies of group insurance be filed with and approved by the Commissioner; revising provisions relating to annuities, pure endowment contracts and policies of life insurance; revising provisions relating to evidence of insurance for motor vehicles; revising provisions relating to disciplinary action by the Commissioner; revising and clarifying provisions relating to employee leasing companies; providing for coverage by the Nevada Life and Health Insurance Guarantee Association for certain unallocated annuity contracts owned by certain governmental retirement plans; providing a penalty; and providing other matters properly relating thereto.

 

Legislative Counsel’s Digest:

      Existing law provides a set of procedures for the external review of an adverse determination by a managed care organization. (NRS 695G.241-695G.310) Sections 2, 3, 8, 9, 79-118.8, 123-127 and 129-131 of this bill amend the external review process to comply with the federal Patient Protection and Affordable Care Act (Public Law 111–148) and enact other related provisions necessary to comply with the minimum standards prescribed by federal law.

      Existing law limits the liability of a qualified actuary for damages relating to the actuary’s opinion regarding an insurer who offers life insurance. (NRS 681B.250) Section 6 of this bill clarifies that this limitation of liability applies not only for life insurance but for any opinion an actuary issues pursuant to chapter 681B of NRS or any regulations adopted thereto.

      Existing law requires the Commissioner of Insurance to adopt regulations governing the use of certain electronic methods relating to insurance. (NRS 679B.136, 685A.210) Sections 1 and 29 of this bill expand the electronic methods that the Commissioner can allow the use of for insurance transactions. Additionally, sections 10, 11, 20, 44-47 and 122 of this bill allow for the fingerprints required to be submitted with an application for a license pursuant to the Nevada Insurance Code to be submitted electronically.

      Existing law requires an applicant for a license as an insurance adjuster to be a resident of this State with certain exceptions. (NRS 684A.070) On December 9, 2009, the United States District Court for the District of Nevada held that the residency requirement to obtain a license as an insurance adjuster violates the Privileges and Immunities Clause of the United States Constitution. (Reitz v. Kipper, 674 F.Supp.2d 1194 (D. Nev. 2009)) Sections 15-26 of this bill revise provisions relating to the licensing of insurance adjusters to remove the residency requirement.

 


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licensing of insurance adjusters to remove the residency requirement. Sections 15-26 also require that an applicant either pass an examination in this State before receiving a license as an insurance adjuster or, if not a resident of this State, be currently licensed in a state that requires an examination before licensure.

      Existing law governs trade practices and frauds relating to the insurance business and gives the Commissioner exclusive jurisdiction to regulate trade practices in the insurance business. (Chapter 686A of NRS) Section 30 of this bill requires an insurer that uses credit information to provide reasonable exceptions to their rates in certain circumstances.

      Under existing law, an insurer may not market certain insurance products without first filing the product with the Commissioner and receiving the Commissioner’s approval. (NRS 687B.120) Section 35 of this bill also requires any group insurance policies to be issued pursuant to NRS 688B.030 or 689B.026 to be filed with and approved by the Commissioner before being marketed.

      Under existing law, an employee leasing company is deemed to be the employer of its leased employees for the purposes of sponsoring and maintaining any benefit plans. (NRS 616B.691) In 2007, this section was amended to clarify that such a company is also deemed to be the employer for the purposes of the Employee Retirement Income Security Act of 1974 (ERISA). (Chapter 536, Statutes of Nevada 2007, p. 3339) On August 6, 2010, the United States District Court for the District of Nevada held that NRS 616B.691 was preempted by federal law to the extent that it declares the status of any benefit plans for purposes of ERISA. (Payroll Solutions Group, Ltd. v. Nevada, No. 02-CV-06-00927-JCM-RJJ (D. Nev. Aug. 6, 2010)) Section 128 of this bill reverses the changes made to NRS 616B.691 during the 2007 Legislative Session. In addition, section 128 clarifies that the provisions of subsection 1 of that section apply only for the purposes of chapters 612 and 616A-617 of NRS. Section 128 also clarifies that the provisions of subsection 2 of that section do not affect the existing employer-employee relationship between a leased employee and a client company.

      Sections 33.1, 33.3 and 33.7 of this bill require the Nevada Life and Health Insurance Guarantee Association to provide coverage for certain unallocated annuity contracts owned by a governmental retirement plan under certain circumstances. Section 33.7 provides that such coverage must not exceed $100,000 in the aggregate for each participant, regardless of the number of contracts.

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. NRS 679B.136 is hereby amended to read as follows:

      679B.136  1.  The Commissioner shall adopt regulations governing:

      (a) The use of electronic signatures, and the acceptance and transmission of electronic records [, in] and payments, including transactions involving claims and other transactions relating to insurance; and

      (b) The electronic filing of forms and payment of fees, and the storage and reproduction of records, filed with the Division.

      2.  As used in this section:

      (a) “Electronic” means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic or similar capabilities.

      (b) “Electronic record” means a record created, generated, sent, communicated, received or stored by electronic means.

      (c) “Electronic signature” means an electronic sound, symbol or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.

 


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      (d) “Record” means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.

      (e) “Transaction” means an action or set of actions occurring between two or more persons relating to the transaction of business, commercial or governmental affairs.

      Sec. 2. 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 or she 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 or herself out as any of the foregoing.

      2.  Any person having a contract under which the person 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 or herself 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] independent review organization, as defined in NRS 695G.018.

      Sec. 3. NRS 680C.110 is hereby amended to read as follows:

      680C.110  1.  In addition to any other fee or charge, the Commissioner shall collect in advance and receipt for, and persons so served must pay to the Commissioner, the fees required by this section.

      2.  A fee required by this section must be:

      (a) If an initial fee, paid at the time of an initial application or issuance of a license, as applicable;

      (b) If an annual fee, paid on or before March 1 of every year;

      (c) If a triennial fee, paid on or before the time of continuation, renewal or other similar action in regard to a certificate, license, permit or other type of authorization, as applicable; and

      (d) Deposited in the Fund for Insurance Administration and Enforcement created by NRS 680C.100.

      3.  The fees required pursuant to this section are not refundable.

      4.  The following fees must be paid by the following persons to the Commissioner:

      (a) Associations of self-insured private employers, as defined in NRS 616A.050:

             (1) Initial fee............................................................................................................................................................. $1,300

             (2) Annual fee.......................................................................................................................................................... $1,300

 


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      (b) Associations of self-insured public employers, as defined in NRS 616A.055:

             (1) Initial fee............................................................................................................................................................. $1,300

             (2) Annual fee.......................................................................................................................................................... $1,300

      (c) [External] Independent review organizations, as provided for in NRS 616A.469 or [683A.371,] section 8 of this act, or both:

             (1) Initial fee................................................................................................................................................................... $60

             (2) Annual fee................................................................................................................................................................ $60

      (d) Insurers not otherwise provided for in this subsection:

             (1) Initial fee............................................................................................................................................................. $1,300

             (2) Annual fee.......................................................................................................................................................... $1,300

      (e) Producers of insurance, as defined in NRS 679A.117:

             (1) Initial fee................................................................................................................................................................... $60

             (2) Triennial fee............................................................................................................................................................. $60

      (f) Accredited reinsurers, as provided for in NRS 681A.160:

             (1) Initial fee............................................................................................................................................................. $1,300

             (2) Annual fee.......................................................................................................................................................... $1,300

      (g) Intermediaries, as defined in NRS 681A.330:

             (1) Initial fee................................................................................................................................................................... $60

             (2) Triennial fee............................................................................................................................................................. $60

      (h) Reinsurers, as defined in NRS 681A.370:

             (1) Initial fee............................................................................................................................................................. $1,300

             (2) Annual fee.......................................................................................................................................................... $1,300

      (i) Administrators, as defined in NRS 683A.025:

             (1) Initial fee................................................................................................................................................................... $60

             (2) Triennial fee............................................................................................................................................................. $60

      (j) Managing general agents, as defined in NRS 683A.060:

             (1) Initial fee................................................................................................................................................................... $60

             (2) Triennial fee............................................................................................................................................................. $60

      (k) Agents who perform utilization reviews, as defined in NRS 683A.376:

             (1) Initial fee................................................................................................................................................................... $60

             (2) Annual fee................................................................................................................................................................ $60

      (l) Insurance consultants, as defined in NRS 683C.010:

             (1) Initial fee................................................................................................................................................................... $60

             (2) Triennial fee............................................................................................................................................................. $60

      (m) Independent adjusters, as defined in NRS 684A.030:

             (1) Initial fee................................................................................................................................................................... $60

             (2) Triennial fee............................................................................................................................................................. $60

      (n) Public adjusters, as defined in NRS 684A.030:

             (1) Initial fee................................................................................................................................................................... $60

             (2) Triennial fee............................................................................................................................................................. $60

      (o) Associate adjusters, as defined in NRS 684A.030:

             (1) Initial fee................................................................................................................................................................... $60

             (2) Triennial fee............................................................................................................................................................. $60

      (p) Motor vehicle physical damage appraisers, as defined in NRS 684B.010:

             (1) Initial fee................................................................................................................................................................... $60

             (2) Triennial fee............................................................................................................................................................. $60

      (q) Brokers, as defined in NRS 685A.030:

             (1) Initial fee................................................................................................................................................................... $60

             (2) Triennial fee............................................................................................................................................................. $60

 


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      (r) Eligible surplus line insurers, as provided for in NRS 685A.070:

             (1) Initial fee............................................................................................................................................................. $1,300

             (2) Annual fee.......................................................................................................................................................... $1,300

      (s) Companies, as defined in NRS 686A.330:

             (1) Initial fee............................................................................................................................................................. $1,300

             (2) Annual fee.......................................................................................................................................................... $1,300

      (t) Rate service organizations, as defined in NRS 686B.020:

             (1) Initial fee............................................................................................................................................................. $1,300

             (2) Annual fee.......................................................................................................................................................... $1,300

      (u) Brokers of viatical settlements, as defined in NRS 688C.030:

             (1) Initial fee................................................................................................................................................................... $60

             (2) Annual fee................................................................................................................................................................ $60

      (v) Providers of viatical settlements, as defined in NRS 688C.080:

             (1) Initial fee................................................................................................................................................................... $60

             (2) Annual fee................................................................................................................................................................ $60

      (w) Agents for prepaid burial contracts subject to the provisions of chapter 689 of NRS:

             (1) Initial fee................................................................................................................................................................... $60

             (2) Triennial fee............................................................................................................................................................. $60

      (x) Agents for prepaid funeral contracts subject to the provisions of chapter 689 of NRS:

             (1) Initial fee................................................................................................................................................................... $60

             (2) Triennial fee............................................................................................................................................................. $60

      (y) Sellers of prepaid burial contracts subject to the provisions of chapter 689 of NRS:

             (1) Initial fee................................................................................................................................................................... $60

             (2) Triennial fee............................................................................................................................................................. $60

      (z) Sellers of prepaid funeral contracts subject to the provisions of chapter 689 of NRS:

             (1) Initial fee................................................................................................................................................................... $60

             (2) Triennial fee............................................................................................................................................................. $60

      (aa) Providers, as defined in NRS 690C.070:

             (1) Initial fee............................................................................................................................................................. $1,300

             (2) Annual fee.......................................................................................................................................................... $1,300

      (bb) Escrow officers, as defined in NRS 692A.028:

             (1) Initial fee................................................................................................................................................................... $60

             (2) Triennial fee............................................................................................................................................................. $60

      (cc) Title agents, as defined in NRS 692A.060:

             (1) Initial fee................................................................................................................................................................... $60

             (2) Triennial fee............................................................................................................................................................. $60

      (dd) Captive insurers, as defined in NRS 694C.060:

             (1) Initial fee................................................................................................................................................................ $250

             (2) Annual fee.............................................................................................................................................................. $250

      (ee) Fraternal benefit societies, as defined in NRS 695A.010:

             (1) Initial fee............................................................................................................................................................. $1,300

             (2) Annual fee.......................................................................................................................................................... $1,300

 


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      (ff) Insurance agents for societies, as provided for in NRS 695A.330:

             (1) Initial fee................................................................................................................................................................... $60

             (2) Triennial fee............................................................................................................................................................. $60

      (gg) Corporations subject to the provisions of chapter 695B of NRS:

             (1) Initial fee............................................................................................................................................................. $1,300

             (2) Annual fee.......................................................................................................................................................... $1,300

      (hh) Health maintenance organizations, as defined in NRS 695C.030:

             (1) Initial fee............................................................................................................................................................. $1,300

             (2) Annual fee.......................................................................................................................................................... $1,300

      (ii) Organizations for dental care, as defined in NRS 695D.060:

             (1) Initial fee............................................................................................................................................................. $1,300

             (2) Annual fee.......................................................................................................................................................... $1,300

      (jj) Purchasing groups, as defined in NRS 695E.100:

             (1) Initial fee................................................................................................................................................................ $250

             (2) Annual fee.............................................................................................................................................................. $250

      (kk) Risk retention groups, as defined in NRS 695E.110:

             (1) Initial fee................................................................................................................................................................ $250

             (2) Annual fee.............................................................................................................................................................. $250

      (ll) Prepaid limited health service organizations, as defined in NRS 695F.050:

             (1) Initial fee............................................................................................................................................................. $1,300

             (2) Annual fee.......................................................................................................................................................... $1,300

      (mm) Medical discount plans, as defined in NRS 695H.050:

             (1) Initial fee............................................................................................................................................................. $1,300

             (2) Annual fee.......................................................................................................................................................... $1,300

      (nn) Club agents, as defined in NRS 696A.040:

             (1) Initial fee................................................................................................................................................................... $60

             (2) Triennial fee............................................................................................................................................................. $60

      (oo) Motor clubs, as defined in NRS 696A.050:

             (1) Initial fee............................................................................................................................................................. $1,300

             (2) Annual fee.......................................................................................................................................................... $1,300

      (pp) Bail agents, as defined in NRS 697.040:

             (1) Initial fee................................................................................................................................................................... $60

             (2) Triennial fee............................................................................................................................................................. $60

      (qq) Bail enforcement agents, as defined in NRS 697.055:

             (1) Initial fee................................................................................................................................................................... $60

             (2) Triennial fee............................................................................................................................................................. $60

      (rr) Bail solicitors, as defined in NRS 697.060:

             (1) Initial fee................................................................................................................................................................... $60

             (2) Triennial fee............................................................................................................................................................. $60

      (ss) General agents, as defined in NRS 697.070:

             (1) Initial fee................................................................................................................................................................... $60

             (2) Triennial fee............................................................................................................................................................. $60

      Sec. 3.5. NRS 681A.022 is hereby amended to read as follows:

      681A.022  “Continuous care coverage” is the issuance of a policy of insurance for workers’ compensation, as described in paragraph (c) of subsection 1 of NRS 681A.020, issued jointly with and supplemental to a policy for health insurance, as defined in NRS 681A.030, by one or more insurers covering the same [individual] employer for the same policy period.

 


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policy for health insurance, as defined in NRS 681A.030, by one or more insurers covering the same [individual] employer for the same policy period.

      Sec. 4. NRS 681A.040 is hereby amended to read as follows:

      681A.040  1.  “Life insurance” is insurance on human lives. The transaction of life insurance includes the granting of endowment benefits, additional incidental benefits in the event of death or dismemberment by accident or accidental means, additional incidental benefits in the event of the insured’s disability, optional modes of settlement of proceeds of life insurance, and provisions operating to safeguard contracts of life insurance against lapse.

      2.  The term includes a policy of life insurance which incorporates long-term care insurance if the policy of life insurance may incorporate the long-term care insurance pursuant to section 36 of this act.

      Sec. 5. NRS 681B.200 is hereby amended to read as follows:

      681B.200  As used in NRS 681B.200 to 681B.260, inclusive, “qualified actuary” means [a member in good standing of the American Academy of Actuaries, or a successor organization approved by the Commissioner who meets the requirements set forth in the organization’s regulations.] a person who is qualified to sign the applicable statement of actuarial opinion in accordance with the qualification standards set by the American Academy of Actuaries for an actuary signing such a statement.

      Sec. 5.5. NRS 681B.210 is hereby amended to read as follows:

      681B.210  Every insurer [offering life insurance] doing business in this state shall annually submit the opinion of a qualified actuary as to whether the reserves and related actuarial items held in support of the policies and contracts specified by the Commissioner by regulation are computed appropriately, are based on assumptions which satisfy contractual provisions, are consistent with prior reported amounts, and comply with applicable laws of this state. The Commissioner by regulation may further define or enlarge the scope of this opinion.

      Sec. 6. NRS 681B.250 is hereby amended to read as follows:

      681B.250  1.  Except in a case of fraud or willful misconduct, a qualified actuary who is appointed by an insurer to issue an opinion pursuant to this chapter or any regulation adopted pursuant thereto is not liable for damages to any person other than an affected insurer or the Commissioner for any act, error, omission, decision or conduct with respect to the actuary’s opinion.

      2.  Disciplinary action by the Commissioner against an actuary must be prescribed by regulation by the Commissioner.

      Sec. 7. Chapter 683A of NRS is hereby amended by adding thereto the provisions set forth as sections 8 and 9 of this act.

      Sec. 8. 1.  An independent review organization must be approved by the Commissioner to be eligible to be assigned to conduct external reviews.

      2.  In order to be eligible for approval or reapproval by the Commissioner to conduct external reviews, an independent review organization:

      (a) Except as otherwise provided in this section, must be accredited by a nationally recognized private accrediting entity which the Commissioner has determined has standards for the accreditation of independent review organizations that are equivalent to or exceed the minimum qualifications for independent review organizations established under section 9 of this act; and

 


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      (b) Must submit an application in accordance with subsection 4.

      3.  The Commissioner shall develop an application form for the initial approval and reapproval of an independent review organization to conduct external reviews.

      4.  An independent review organization wishing to be approved or reapproved to conduct external reviews must submit the application form and include with the form all documentation and information necessary for the Commissioner to determine if the independent review organization satisfies the minimum qualifications established under section 9 of this act.

      5.  The Commissioner may approve an independent review organization that is not accredited by a nationally recognized private accrediting entity if there are no acceptable nationally recognized private accrediting entities providing accreditation of independent review organizations.

      6.  The Commissioner may charge any applicable fee which an independent review organization must submit to the Commissioner with its application for initial approval or reapproval.

      7.  An approval or reapproval is effective for 2 years unless the Commissioner determines before its expiration that the independent review organization does not satisfy the minimum qualifications established under section 9 of this act.

      8.  Whenever the Commissioner determines that an independent review organization has lost its accreditation or no longer satisfies the minimum requirements established under section 9 of this act, the Commissioner shall terminate the approval of the independent review organization and remove the independent review organization from the list of independent review organizations approved to conduct external reviews that is maintained by the Commissioner pursuant to subsection 9.

      9.  The Commissioner shall maintain and periodically update a list of approved independent review organizations.

      10.  The Commissioner may adopt regulations to carry out the provisions of this section.

      11.  As used in this section, “independent review organization” has the meaning ascribed to it in NRS 695G.018.

      Sec. 9. 1.  To be approved under section 8 of this act to conduct external reviews, an independent review organization shall have and maintain written policies and procedures that govern all aspects of both the standard external review process and the expedited external review process which include, without limitation:

      (a) A quality assurance mechanism which ensures:

             (1) That an external review is conducted within the specified time frames and required notices are provided in a timely manner;

             (2) The selection of qualified and impartial clinical reviewers to conduct external reviews on behalf of the independent review organization, suitable matching of reviewers to specific cases and that the independent review organization employs or contracts with an adequate number of clinical reviewers to meet this requirement;

             (3) The confidentiality of medical and treatment records and clinical review criteria; and

             (4) That a person employed by or under contract with the independent review organization adheres to the requirements of the external review process;

 


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      (b) A toll-free telephone service that is capable of accepting, recording or providing appropriate instruction relating to external reviews to incoming telephone callers 24 hours a day, 7 days a week; and

      (c) An agreement to maintain and provide to the Office for Consumer Health Assistance the information required pursuant to section 110 of this act.

      2.  A clinical reviewer assigned by an independent review organization to conduct an external review must be a physician or other appropriate health care provider who must:

      (a) Be an expert in the treatment of the covered person’s medical condition that is the subject of the external review;

      (b) Be knowledgeable about the recommended health care service or treatment through recent or current actual clinical experience treating patients with the same or similar medical condition as the covered person;

      (c) Hold a nonrestricted license in a state or territory of the United States and, if a physician, hold a current certification by a specialty board of the American Board of Medical Specialties in the area or areas appropriate to the subject of the external review; and

      (d) Have no history of disciplinary actions or sanctions, including loss of staff privileges or participation restrictions, that have been taken or are pending by any hospital, governmental agency or unit, or regulatory body that raise a substantial question as to the clinical reviewer’s physical, mental or professional competence or moral character.

      3.  In addition to the requirements set forth in subsection 1, an independent review organization may not own or control, be a subsidiary of or in any way be owned or controlled by, or exercise control with a health benefit plan, a national, state or local trade association of health benefit plans, or a national, state or local trade association of health care providers.

      4.  In addition to the requirements set forth in subsections 1, 2 and 3, to be approved pursuant to section 8 of this act to conduct an external review of a specific case, neither the independent review organization selected to conduct the external review nor a clinical reviewer assigned by the independent review organization to conduct the external review may have a material professional, familial or financial conflict of interest with any of the following:

      (a) The health carrier that is the subject of the external review;

      (b) The covered person whose treatment is the subject of the external review or the covered person’s authorized representative;

      (c) Any officer, director or management employee of the health carrier that is the subject of the external review;

      (d) The health care provider, the health care provider’s medical group or independent practice association recommending the health care service or treatment that is the subject of the external review;

      (e) The facility at which the recommended health care service or treatment would be provided; or

      (f) The developer or manufacturer of the principal drug, device, procedure or other therapy being recommended for the covered person whose treatment is the subject of the external review.

      5.  In determining whether an independent review organization or a clinical reviewer of the independent review organization has a material professional, familial or financial conflict of interest for purposes of subsection 4, the Office for Consumer Health Assistance shall take into consideration situations where the independent review organization to be assigned to conduct an external review of a specific case or a clinical reviewer to be assigned by the independent review organization to conduct an external review of a specific case may have an apparent professional, familial or financial relationship or connection with a person described in subsection 4, but that the characteristics of that relationship or connection are such that they are not a material professional, familial or financial conflict of interest that results in the disapproval of the independent review organization or the clinical reviewer from conducting the external review.

 


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subsection 4, the Office for Consumer Health Assistance shall take into consideration situations where the independent review organization to be assigned to conduct an external review of a specific case or a clinical reviewer to be assigned by the independent review organization to conduct an external review of a specific case may have an apparent professional, familial or financial relationship or connection with a person described in subsection 4, but that the characteristics of that relationship or connection are such that they are not a material professional, familial or financial conflict of interest that results in the disapproval of the independent review organization or the clinical reviewer from conducting the external review.

      6.  The Commissioner shall initially review and periodically review the standards of a nationally recognized private accrediting entity for accreditation of independent review organizations to determine whether the entity’s standards are equivalent to or exceed the minimum qualifications established in this section. The Commissioner may accept a review conducted by the National Association of Insurance Commissioners for the purpose of the determination under this subsection and subsection 7.

      7.  Upon request, a nationally recognized private accrediting entity shall make its current standards for the accreditation of independent review organizations available to the Commissioner or to the National Association of Insurance Commissioners in order for the Commissioner to determine if the entity’s standards are equivalent to or exceed the minimum qualifications established in this section. The Commissioner may exclude any private accrediting entity that is not reviewed by the National Association of Insurance Commissioners.

      8.  An independent review organization must be unbiased. An independent review organization shall establish and maintain written procedures to ensure that it is unbiased in addition to any other procedures required under this section.

      9.  As used in this section, the words and terms defined in NRS 695G.012 to 695G.080, inclusive, and sections 71 to 101, inclusive, of this act, have the meanings ascribed to them in those sections.

      Sec. 9.5. NRS 683A.025 is hereby amended to read as follows:

      683A.025  1.  Except as limited by this section, “administrator” means a person who:

      (a) Directly or indirectly underwrites or collects charges or premiums from or adjusts or settles claims of residents of this State or any other state from within this State in connection with workers’ compensation insurance, life or health insurance coverage or annuities, including coverage or annuities provided by an employer for his or her employees;

      (b) Administers an internal service fund pursuant to NRS 287.010;

      (c) Administers a trust established pursuant to NRS 287.015, under a contract with the trust;

      (d) Administers a program of self-insurance for an employer;

      (e) Administers a program which is funded by an employer and which provides pensions, annuities, health benefits, death benefits or other similar benefits for his or her employees; or

      (f) Is an insurance company that is licensed to do business in this State or is acting as an insurer with respect to a policy lawfully issued and delivered in a state where the insurer is authorized to do business, if the insurance company performs any act described in paragraphs (a) to (e), inclusive, for or on behalf of another insurer [.]

 


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on behalf of another insurer [.] unless the insurers are affiliated and each insurer is licensed to do business in this State.

      2.  “Administrator” does not include:

      (a) An employee authorized to act on behalf of an administrator who holds a certificate of registration from the Commissioner.

      (b) An employer acting on behalf of his or her employees or the employees of a subsidiary or affiliated concern.

      (c) A labor union acting on behalf of its members.

      (d) Except as otherwise provided in paragraph (f) of subsection 1, an insurance company licensed to do business in this State or acting as an insurer with respect to a policy lawfully issued and delivered in a state in which the insurer was authorized to do business.

      (e) A producer of life or health insurance licensed in this State, when his or her activities are limited to the sale of insurance.

      (f) A creditor acting on behalf of his or her debtors with respect to insurance covering a debt between the creditor and debtor.

      (g) A trust and its trustees, agents and employees acting for it, if the trust was established under the provisions of 29 U.S.C. § 186.

      (h) Except as otherwise provided in paragraph (c) of subsection 1, a trust and its trustees, agents and employees acting for it, if the trust was established pursuant to NRS 287.015.

      (i) A trust which is exempt from taxation under section 501(a) of the Internal Revenue Code, 26 U.S.C. § 501(a), its trustees and employees, and a custodian, his or her agents and employees acting under a custodial account which meets the requirements of section 401(f) of the Internal Revenue Code, 26 U.S.C. § 401(f).

      (j) A bank, credit union or other financial institution which is subject to supervision by federal or state banking authorities.

      (k) A company which issues credit cards, and which advances for and collects premiums or charges from credit card holders who have authorized it to do so, if the company does not adjust or settle claims.

      (l) An attorney at law who adjusts or settles claims in the normal course of his or her practice or employment, but who does not collect charges or premiums in connection with life or health insurance coverage or with annuities.

      3.  As used in this section, “affiliated” means any insurer or other person that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, another insurer or other person.

      Sec. 10. NRS 683A.160 is hereby amended to read as follows:

      683A.160  1.  Each applicant for a license as a managing general agent must submit with his or her application:

      [1.  A complete set of his or her fingerprints which the Commissioner may forward to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report;

      2.] (a) The appointment of the applicant as a managing general agent by each insurer or underwriter department to be so represented; and

      [3.](b) The application and license fee specified in NRS 680B.010 and, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110.

      2.  Each applicant must, as part of his or her application and at the applicant’s own expense:

 


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      (a) Arrange to have a complete set of his or her fingerprints taken by a law enforcement agency or other authorized entity acceptable to the Commissioner; and

      (b) Submit to the Commissioner:

             (1) A completed fingerprint card and written permission authorizing the Commissioner to submit the applicant’s fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Commissioner deems necessary; or

             (2) Written verification, on a form prescribed by the Commissioner, stating that the fingerprints of the applicant were taken and directly forwarded electronically or by another means to the Central Repository and that the applicant has given written permission to the law enforcement agency or other authorized entity taking the fingerprints to submit the fingerprints to the Central Repository for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Commissioner deems necessary.

      3.  The Commissioner may:

      (a) Unless the applicant’s fingerprints are directly forwarded pursuant to subparagraph (2) of paragraph (b) of subsection 2, submit those fingerprints to the Central Repository for submission to the Federal Bureau of Investigation and to such other law enforcement agencies as the Commissioner deems necessary;

      (b) Request from each such agency any information regarding the applicant’s background as the Commissioner deems necessary; and

      (c) Adopt regulations concerning the procedures for obtaining this information.

      Sec. 11. 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 or her 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;

      (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 all applicable fees prescribed for the license and a fee established by the Commissioner of not more than $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:

 


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      (a) Paid all applicable fees prescribed for the license and a fee established by the Commissioner of not more than $15 for deposit in the Insurance Recovery Account, neither of which may be refunded;

      (b) Designated a natural person who is licensed as a producer of insurance and who is authorized to transact business on behalf of the business organization to be responsible for the organization’s compliance with the laws and regulations of this State relating to insurance; and

      (c) If the business organization has authorized a producer of insurance not designated pursuant to paragraph (b) to transact business on behalf of the business organization, submitted to the Commissioner on a form prescribed by the Commissioner the name of each producer of insurance authorized to transact business on behalf of the business organization.

      3.  A natural person who is a resident of this State applying for a license must [furnish a complete set of his or her fingerprints which the Commissioner may forward to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report. The Commissioner shall adopt] , as part of his or her application and at the applicant’s own expense:

      (a) Arrange to have a complete set of his or her fingerprints taken by a law enforcement agency or other authorized entity acceptable to the Commissioner; and

      (b) Submit to the Commissioner:

             (1) A completed fingerprint card and written permission authorizing the Commissioner to submit the applicant’s fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Commissioner deems necessary; or

             (2) Written verification, on a form prescribed by the Commissioner, stating that the fingerprints of the applicant were taken and directly forwarded electronically or by another means to the Central Repository and that the applicant has given written permission to the law enforcement agency or other authorized entity taking the fingerprints to submit the fingerprints to the Central Repository for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Commissioner deems necessary.

      4.  The Commissioner may:

      (a) Unless the applicant’s fingerprints are directly forwarded pursuant to subparagraph (2) of paragraph (b) of subsection 3, submit those fingerprints to the Central Repository for submission to the Federal Bureau of Investigation and to such other law enforcement agencies as the Commissioner deems necessary;

      (b) Request from each such agency any information regarding the applicant’s background as the Commissioner deems necessary; and

      (c) Adopt regulations concerning the procedures for obtaining this information.

      [4.]5.  The Commissioner may require any document reasonably necessary to verify information contained in an application.

      Sec. 12. 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, the Commissioner shall issue a license as a producer of insurance to a person who has satisfied the requirements of NRS 683A.241 and 683A.251.

 


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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 [.] income.

      (b) [Health] Accident and health insurance for sickness, bodily injury or accidental death, which may include benefits for disability [.] income.

      (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] For the purposes of a producer of insurance, this line of insurance includes surety indemnifying financial institutions or providing bonds for fidelity, performance of contracts or financial guaranty.

      [(f)](e)Variable annuities and variable life insurance, including coverage reflecting the results of a separate investment account.

      [(g)] (f) Credit insurance, including credit life, credit [disability,] accident and health, credit property, credit [unemployment,] involuntary unemployment, [mortgage life, mortgage guaranty, mortgage disability,] guaranteed asset 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.

      [(h)](g) 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)](h) Fixed annuities , including, without limitation, indexed annuities, as a limited line.

      [(j)](i) Travel and baggage as a limited line.

      [(k)](j) Rental car agency as a limited line.

      [(l) Continuous care coverage, which includes health insurance, as set forth in paragraph (b), and may include insurance for workers’ compensation.]

      (k) Crop as a limited line.

      2.  A license as a producer of insurance remains in effect unless revoked, suspended or otherwise terminated if a request for a renewal is submitted on or before the date for the renewal specified on the license, all applicable fees for renewal and a fee established by the Commissioner of not more than $15 for deposit in the Insurance Recovery Account are paid for each license and each authorization to transact business on behalf of 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 date specified on the license for the renewal. A producer of insurance may submit a request for a renewal of his or her 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 all applicable renewal fees, except for any fee required pursuant to NRS 680C.110.

 


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required pursuant to NRS 680C.110. 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 or her 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 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 all applicable renewal fees, except for any fee required pursuant to NRS 680C.110, is required for any request for a renewal of the license that is received after the date specified on the license for the renewal.

      4.  A licensed producer of insurance who is unable to renew his or her license because of military service, extended medical disability or other extenuating circumstance may request a waiver of the time limit and of any fine or sanction otherwise required or imposed because of the failure to renew.

      5.  A license must state the licensee’s 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 the resident producer of insurance principally conducts transactions under his or her license. The place of business may be in his or her 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 each change of location from which the licensee 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 the location from which the licensee conducts business as a producer of insurance or his or her business or residence address without giving written notice and the Commissioner is unable to locate the licensee after 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 or her 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. 12.5. NRS 683A.367 is hereby amended to read as follows:

      683A.367  1.  A person licensed as a producer of [continuous care coverage] insurance shall not sell, solicit or negotiate [insurance for workers’ compensation] continuous care coverage unless [:

      (a)The] the person is licensed as a producer of [casualty] :

      (a)Accident and health insurance and casualty insurance; or

      (b) [The policy of insurance for workers’ compensation is sold jointly with and supplemental to a policy of health insurance covering the same individual for the same policy period.] Accident and health insurance and has received approval from the Commissioner to market continuous care coverage.

      2.  A person who violates the provisions of subsection 1 is subject to an administrative fine pursuant to subsection 3 of NRS 683A.201.

 


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      Sec. 12.7. NRS 683A.373 is hereby amended to read as follows:

      683A.373  As soon as practicable after preparing an annual list of [external] independent review organizations pursuant to subsection 8 of NRS 683A.371, the Commissioner shall submit a copy of the list to the Office for Consumer Health Assistance. If a change occurs in the list, the Commissioner shall notify the Office for Consumer Health Assistance of the change.

      Sec. 13. Chapter 684A of NRS is hereby amended by adding thereto the provisions set forth as sections 14, 15 and 16 of this act.

      Sec. 14. As used in this Code, unless the context otherwise requires, the words and terms defined in NRS 684A.020 and 684A.030 and section 15 of this act have the meanings ascribed to them in those sections.

      Sec. 15. “Home state” means:

      1.  The District of Columbia or any state or territory of the United States in which an adjuster maintains his or her principal place of residence or principal place of business and is licensed to act as an adjuster; or

      2.  If neither the state in which the adjuster maintains his or her principal place of residence nor the state in which the adjuster maintains his or her principal place of business has a licensing or examination requirement, a state:

      (a) Which has an examination requirement;

      (b) In which the adjuster is licensed; and

      (c) Which the adjuster declares to be the home state.

      Sec. 16. 1.  The provisions of NRS 683A.341 and 686A.310 apply to adjusters and associate adjusters.

      2.  For the purposes of subsection 1, unless the context requires that a section apply only to producers of insurance or insurers, any reference in those sections to “producer of insurance” or “insurer” must be replaced by a reference to “adjuster or associate adjuster.”

      Sec. 17. NRS 684A.020 is hereby amended to read as follows:

      684A.020  1.  [As used in this Code, “adjuster”] “Adjuster” means any person who, for compensation as an independent contractor or for a fee or commission, investigates and settles, and reports to his or her principal relative to, claims:

      (a) Arising under insurance contracts for property, casualty or surety coverage, on behalf solely of the insurer or the insured; or

      (b) Against a self-insurer who is providing similar coverage, unless the coverage provided relates to a claim for industrial insurance.

      2.  For the purposes of this chapter:

      (a) An associate adjuster, as defined in NRS 684A.030;

      (b) An attorney at law who adjusts insurance losses from time to time incidental to the practice of his or her profession;

      (c) An adjuster of ocean marine losses;

      (d) A salaried employee of an insurer; or

      (e) A salaried employee of a managing general agent maintaining an underwriting office in this state,

Κ is not considered an adjuster.

      Sec. 18. NRS 684A.030 is hereby amended to read as follows:

      684A.030  [As used in this Code:]

      1.  “Independent adjuster” means an adjuster representing the interests of an insurer or a self-insurer.

 


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      2.  “Public adjuster” means an adjuster employed by and representing solely the financial interests of the insured named in the policy.

      3.  “Associate adjuster” means an employee of an adjuster who, under the direct supervision of the adjuster, assists in the investigation and settlement of insurance losses on behalf of his or her employer.

      Sec. 19. NRS 684A.040 is hereby amended to read as follows:

      684A.040  1.  No person may act as, or hold himself or herself out to be, an adjuster or associate adjuster in this State unless then licensed as such under the applicable independent adjuster’s license, public adjuster’s license or associate adjuster’s license, as the case may be, issued under the provisions of this chapter.

      2.  [For purposes of this chapter, the Commissioner may issue a limited license to an adjuster handling claims under a contract of one or more of the kinds of insurance defined in NRS 681A.010 to 681A.080, inclusive.

      3.]  Any person violating the provisions of this section is guilty of a gross misdemeanor.

      [4.]3.  A person who acts as an adjuster in this State without a license is subject to an administrative fine of not more than $1,000 for each violation.

      Sec. 20. NRS 684A.070 is hereby amended to read as follows:

      684A.070  1.  For the protection of the people of this State, the Commissioner may not issue or continue any license as an adjuster except in compliance with the provisions of this chapter. Any person for whom a license is issued or continued must:

      (a) Be at least 18 years of age;

      (b) [Except as otherwise provided in subsection 2, be a resident of this State, and have resided therein for at least 90 days before his or her application for the license;

      (c)] Be competent, trustworthy, financially responsible and of good reputation;

      [(d)](c) Never have been convicted of, or entered a plea of guilty, guilty but mentally ill or nolo contendere to, forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud or any crime involving moral turpitude;

      [(e) Have had at least 2 years’ recent experience with respect to the handling of loss claims of sufficient character reasonably to enable the person to fulfill the responsibilities of an adjuster;

      (f) Pass]

      (d) Unless exempted pursuant to NRS 684A.100 or 684A.105, pass all examinations required under this chapter; and

      [(g)](e) Not be concurrently licensed as a producer of insurance for property, casualty or surety or a surplus lines broker, except as a bail agent.

      2.  [The Commissioner may waive the residency requirement set forth in paragraph (b) of subsection 1 if the applicant is:

      (a) An adjuster licensed under the laws of another state who has been brought to this State by a firm or corporation with whom the adjuster is employed that is licensed as an adjuster in this State to fill a vacancy in the firm or corporation in this State;

      (b) An adjuster licensed in an adjoining state whose principal place of business is located within 50 miles from the boundary of this State; or

      (c) An adjuster who is applying for a limited license pursuant to NRS 684A.155.

 


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3.]  A natural person who is a resident of this State applying for a license must, as part of his or her application and at the applicant’s own expense:

      (a) Arrange to have a complete set of his or her fingerprints taken by a law enforcement agency or other authorized entity acceptable to the Commissioner; and

      (b) Submit to the Commissioner:

             (1) A completed fingerprint card and written permission authorizing the Commissioner to submit the applicant’s fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Commissioner deems necessary; or

             (2) Written verification, on a form prescribed by the Commissioner, stating that the fingerprints of the applicant were taken and directly forwarded electronically or by another means to the Central Repository and that the applicant has given written permission to the law enforcement agency or other authorized entity taking the fingerprints to submit the fingerprints to the Central Repository for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Commissioner deems necessary.

      3.  The Commissioner may:

      (a) Unless the applicant’s fingerprints are directly forwarded pursuant to subparagraph (2) of paragraph (b) of subsection 2, submit those fingerprints to the Central Repository for submission to the Federal Bureau of Investigation and to such other law enforcement agencies as the Commissioner deems necessary;

      (b) Request from each such agency any information regarding the applicant’s background as the Commissioner deems necessary; and

      (c) Adopt regulations concerning the procedures for obtaining this information.

      4.  A conviction of, or plea of guilty, guilty but mentally ill or nolo contendere by, an applicant or licensee for any crime listed in paragraph [(d)] (c) of subsection 1 is a sufficient ground for the Commissioner to deny a license to the applicant, or to suspend, revoke or limit the license of an adjuster pursuant to NRS 684A.210.

      Sec. 21. NRS 684A.100 is hereby amended to read as follows:

      684A.100  Each person who intends to apply for a license as an adjuster must, before applying for the license, personally take and pass to the Commissioner’s satisfaction a written examination testing the applicant’s qualifications and competence to act as an adjuster and his or her knowledge of pertinent provisions of this Code [.] unless:

      1.  The person:

      (a) Is not a resident of this State;

      (b) Has passed an examination to become licensed as an adjuster in the person’s home state; and

      (c) Is currently licensed and in good standing in the person’s home state as an adjuster; or

      2.  The person was licensed in this State as the same type of adjuster within the 24-month period immediately preceding the date of the application, unless the previous license was revoked or suspended or its continuation was refused by the Commissioner.

 


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      Sec. 22. NRS 684A.105 is hereby amended to read as follows:

      684A.105  An adjuster whose license expires is exempt from retaking the examination required by NRS 684A.100 if [the adjuster applies and is relicensed within 6 months after the date of expiration.] :

      1.  The adjuster:

      (a) Is not a resident of this State;

      (b) Has passed an examination to become licensed as an adjuster in the person’s home state; and

      (c) Is currently licensed and in good standing in the person’s home state as an adjuster; or

      2.  The adjuster was licensed in this State as the same type of adjuster within the 24-month period immediately preceding the date of the application, unless the previous license was revoked or suspended or its continuation was refused by the Commissioner.

      Sec. 23. NRS 684A.130 is hereby amended to read as follows:

      684A.130  1.  Each license issued under this chapter continues in force for 3 years unless it is suspended, revoked or otherwise terminated. A license may be renewed upon payment of all applicable fees for renewal to the Commissioner and submission of the statement required pursuant to NRS 684A.143 if the licensee is a natural person. The statement, if required, must be submitted and all applicable fees must be paid on or before the last day of the month in which the license is renewable.

      2.  Any license not so renewed expires at midnight on the last day specified for its renewal. The Commissioner may accept a request for renewal received by the Commissioner within 30 days after the expiration of the license if the request is accompanied by:

      (a) A fee for renewal of 150 percent of all applicable fees otherwise required, except for any fee required pursuant to NRS 680C.110; [and]

      (b) If the person requesting renewal is a natural person, the statement required pursuant to NRS 684A.143 [.] ;

      (c) Proof of successful completion of any requirement for an examination unless exempt pursuant to NRS 684A.105; and

      (d) If applicable, a request for a waiver of the time limit for renewal and of any fine or sanction otherwise required or imposed because of the failure of the licensee to renew his or her license because of military service, extended medical disability or other extenuating circumstance.

      3.  This section does not apply to temporary licenses issued under NRS 684A.150.

      Sec. 24. NRS 684A.143 is hereby amended to read as follows:

      684A.143  1.  A natural person who applies for the issuance or renewal of a license shall submit to the Commissioner the statement prescribed by the Division of Welfare and Supportive Services of the Department of Health and Human Services pursuant to NRS 425.520. The statement must be completed and signed by the applicant.

      2.  The Commissioner shall include the statement required pursuant to subsection 1 in:

      (a) The application or any other forms that must be submitted for the issuance or renewal of the license; or

      (b) A separate form prescribed by the Commissioner.

      3.  A license may not be issued or renewed by the Commissioner if the applicant is a natural person who:

 


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      (a) Fails to submit the statement required pursuant to subsection 1; or

      (b) Indicates on the statement submitted pursuant to subsection 1 that the applicant is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order.

      4.  If an applicant indicates on the statement submitted pursuant to subsection 1 that the applicant is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order, the Commissioner shall advise the applicant to contact the district attorney or other public agency enforcing the order to determine the actions that the applicant may take to satisfy the arrearage.

      5.  As used in this section, “license” means:

      (a) A license as an adjuster; and

      (b) A license as an associate adjuster . [; and

      (c) A limited license issued pursuant to NRS 684A.155.]

      Sec. 25. NRS 684A.147 is hereby amended to read as follows:

      684A.147  1.  If the Commissioner receives a copy of a court order issued pursuant to NRS 425.540 that provides for the suspension of all professional, occupational and recreational licenses, certificates and permits issued to a person who is the holder of a license, the Commissioner shall deem the license issued to that person to be suspended at the end of the 30th day after the date on which the court order was issued unless the Commissioner receives a letter issued to the holder of the license by the district attorney or other public agency pursuant to NRS 425.550 stating that the holder of the license has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

      2.  The Commissioner shall reinstate a license that has been suspended by a district court pursuant to NRS 425.540 if the Commissioner receives a letter issued by the district attorney or other public agency pursuant to NRS 425.550 to the person whose license was suspended stating that the person whose license was suspended has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

      3.  As used in this section, “license” means:

      (a) A license as an adjuster; and

      (b) A license as an associate adjuster . [; and

      (c) A limited license issued pursuant to NRS 684A.155.]

      Sec. 26. NRS 684A.200 is hereby amended to read as follows:

      684A.200  Nonresidents of this state who are granted licenses as adjusters pursuant to [subsection 2 of] NRS 684A.070 are also subject to NRS 683A.281.

      Secs. 27 and 28. (Deleted by amendment.)

      Sec. 29. NRS 685A.210 is hereby amended to read as follows:

      685A.210  1.  The Commissioner may adopt reasonable regulations, consistent with the provisions of this chapter, for any of the following purposes:

 


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      (a) Effectuation of the law;

      (b) Establishment of procedures through which determination is to be made as to the eligibility of particular proposed coverages for export; [and]

      (c) Establishment of procedures for the operation of a nonprofit organization of brokers designed to assist brokers in complying with the provisions of this chapter [.] ; and

      (d) The use of electronic signatures and the acceptance and transmission of electronic records and payments, including transactions involving claims and other transactions relating to surplus lines insurance.

      2.  Such regulations carry the penalty provided by NRS 679B.130.

      Sec. 30. Chapter 686A of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  Notwithstanding any other law or regulation, an insurer that uses credit information shall, upon receipt of a written request from an applicant or policyholder, provide reasonable exceptions to the insurer’s rates, rating classifications, company or tier placement, or underwriting rules or guidelines for an applicant or policyholder who has experienced and whose credit information has been directly influenced by any of the following:

      (a) A catastrophic event, as declared by the Federal or State Government;

      (b) A serious illness or injury, or a serious illness or injury to an immediate family member;

      (c) The death of a spouse, child or parent;

      (d) Divorce or involuntary interruption of legally-owed alimony or support payments;

      (e) Identify theft;

      (f) Temporary loss of employment for a period of 3 months or more, if it results from involuntary termination;

      (g) Military deployment overseas; or

      (h) Other events, as determined by the insurer.

      2.  If an applicant or policyholder submits a request for an exception as set forth in subsection 1, an insurer may, in its sole discretion:

      (a) Require the applicant or policyholder to provide reasonable written and independently verifiable documentation of the event;

      (b) Require the applicant or policyholder to demonstrate that the event had direct and meaningful impact on the credit information of the applicant or policyholder;

      (c) Require that such a request be made not more than 60 days after the date of the application for insurance or the policy renewal;

      (d) Grant an exception despite the applicant or policyholder not providing the initial request for an exception in writing; or

      (e) Grant an exception where the applicant or policyholder asks for consideration of repeated events or the insurer has considered this event previously.

      3.  An insurer is not out of compliance with any law or rule relating to underwriting, rating or rate filing as a result of granting an exception under this section. Nothing in this section shall be construed to provide an applicant or policyholder with a cause of action that does not exist in the absence of this section.

 


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      4.  The insurer shall provide notice to each applicant and policyholder that reasonable exceptions are available and include information about how the applicant or policyholder may inquire further about such exceptions.

      5.  Within 30 days after the insurer’s receipt of sufficient documentation of an event described in subsection 1, the insurer shall inform the applicant or policyholder of the outcome of the request for a reasonable exception. Such communication must be in writing or provided to the applicant or policyholder in the same medium as the request.

      6.  The Commissioner may adopt regulations to carry out the provisions of this section.

      Sec. 31. NRS 686A.600 is hereby amended to read as follows:

      686A.600  As used in NRS 686A.600 to 686A.730, inclusive, and section 30 of this act, unless the context otherwise requires, the words and terms defined in NRS 686A.610 to 686A.660, inclusive, have the meanings ascribed to them in those sections.

      Sec. 32. NRS 686A.670 is hereby amended to read as follows:

      686A.670  The provisions of NRS 686A.600 to 686A.730, inclusive, and section 30 of this act do not apply to a contract of surety insurance issued pursuant to chapter 691B of NRS or any commercial or business policy.

      Sec. 33. 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] Credit accident and health insurance;

      (f) Property insurance for business and commercial risks;

      (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 [.] ;

      (i)Health insurance offered through a group health plan maintained by a large employer; and

      (j)Credit involuntary unemployment 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. 33.1. Chapter 686C of NRS is hereby amended by adding thereto a new section to read as follows:

      “Unallocated annuity contract” means an annuity contract or group annuity certificate which is not issued to and owned by a natural person except to the extent such an annuity contract or group annuity certificate is guaranteed to a natural person by an insurer under such contract or certificate.

 


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      Sec. 33.3. NRS 686C.035 is hereby amended to read as follows:

      686C.035  1.  This chapter does not provide coverage for:

      (a) A portion of a policy or contract not guaranteed by the insurer, or under which the risk is borne by the owner of the policy or contract.

      (b) A policy or contract of reinsurance unless assumption certificates have been issued pursuant to that policy or contract.

      (c) A portion of a policy or contract to the extent that the rate of interest on which it is based, or the interest rate, crediting rate or similar factor determined by the use of an index or other external reference stated in the policy or contract employed in calculating returns or changes in value:

             (1) Averaged over the period of 4 years before the date on which the association becomes obligated with respect to the policy or contract, exceeds the rate of interest determined by subtracting 2 percentage points from Moody’s Corporate Bond Yield Average averaged for the same period, or for the period between the date of issuance of the policy or contract and the date the association became obligated, whichever period is less; and

             (2) On or after the date on which the association becomes obligated with respect to the policy or contract, exceeds the rate of interest determined by subtracting 3 percentage points from Moody’s Corporate Bond Yield Average as most recently available.

      (d) A portion of a policy or contract issued to a plan or program of an employer, association or other person to provide life, health or annuity benefits to its employees, members or other persons to the extent that the plan or program is self-funded or uninsured, including, but not limited to, benefits payable by an employer, association or other person under:

             (1) A multiple employer welfare arrangement described in 29 U.S.C. § 1144;

             (2) A minimum-premium group insurance plan;

             (3) A stop-loss group insurance plan; or

             (4) A contract for administrative services only.

      (e) A portion of a policy or contract to the extent that it provides for dividends, credits for experience, voting rights or the payment of any fee or allowance to any person, including the owner of a policy or contract, for services or administration connected with the policy or contract.

      (f) A policy or contract issued in this state by a member insurer at a time when the member insurer was not authorized to issue the policy or contract in this state.

      (g) A portion of a policy or contract to the extent that the assessments required by NRS 686C.230 with respect to the policy or contract are preempted by federal law.

      (h) An obligation that does not arise under the express written terms of the policy or contract issued by the insurer, including:

             (1) Claims based on marketing materials;

             (2) Claims based on side letters or other documents that were issued by the insurer without satisfying applicable requirements for filing or approval of policy forms;

             (3) Misrepresentations of or regarding policy benefits;

             (4) Extra-contractual claims; or

             (5) A claim for penalties or consequential or incidental damages.

      (i) A contractual agreement that establishes the member insurer’s obligation to provide a guarantee based on accounting at book value for participants in a defined-contribution benefit plan by reference to a portfolio of assets owned by the benefit plan or its trustee, which in each case is not an affiliate of the member insurer.

 


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participants in a defined-contribution benefit plan by reference to a portfolio of assets owned by the benefit plan or its trustee, which in each case is not an affiliate of the member insurer.

      (j) A portion of a policy or contract to the extent that it provides for interest or other changes in value which are determined by the use of an index or other external reference stated in the policy or contract, but which have not been credited to the policy or contract, or as to which the rights of the owner of the policy or contract are subject to forfeiture, determined on the date the member insurer becomes an impaired or insolvent insurer, whichever occurs first. If the interest or changes in value of a policy or contract are credited less frequently than annually, for the purpose of determining the values that have been credited and are not subject to forfeiture, the interest or change in value determined by using procedures stated in the policy or contract must be credited as if the contractual date for crediting interest or changing values was the date of the impairment or insolvency of the insured member, whichever occurs first and is not subject to forfeiture.

      (k) An unallocated annuity contract [.] other than an annuity owned by a governmental retirement plan established under section 401, 403(b) or 457 of the Internal Revenue Code, 26 U.S.C. §§ 401, 403(b) and 457, respectively, or the trustees of such a plan.

      2.  As used in this section, “Moody’s Corporate Bond Yield Average” means the monthly average for corporate bonds published by Moody’s Investors Service, Inc., or any successor average.

      Sec. 33.5. NRS 686C.040 is hereby amended to read as follows:

      686C.040  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 686C.045 to 686C.125, inclusive, and section 33.1 of this act have the meanings ascribed to them in those sections.

      Sec. 33.7. NRS 686C.210 is hereby amended to read as follows:

      686C.210  1.  The benefits that the Association may become obligated to cover may not exceed the lesser of:

      (a) The contractual obligations for which the insurer is liable or would have been liable if it were not an impaired or insolvent insurer;

      (b) With respect to one life, regardless of the number of policies or contracts:

             (1) Three hundred thousand dollars in death benefits from life insurance, but not more than $100,000 in net cash for surrender and withdrawal for life insurance; or

             (2) One hundred thousand dollars in the present value of benefits from annuities, including net cash for surrender and withdrawal;

      (c) With respect to health insurance for any one natural person:

             (1) One hundred thousand dollars for coverages other than disability insurance, basic hospital, medical and surgical insurance or major medical insurance, including any net cash for surrender or withdrawal;

             (2) Three hundred thousand dollars for disability insurance; or

             (3) Five hundred thousand dollars for basic hospital, medical and surgical insurance or major medical insurance; [or]

      (d) With respect to each payee of a structured settlement annuity, or beneficiary or beneficiaries of the payee if deceased, $100,000 in present value of benefits from the annuity in the aggregate, including any net cash for surrender or withdrawal [.] ; or

 


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      (e)With respect to each participant in a governmental retirement plan covered by an unallocated annuity contract which is owned by a governmental retirement plan established under section 401, 403(b) or 457 of the Internal Revenue Code, 26 U.S.C. §§ 401, 403(b) and 457, respectively, or the trustees of such a plan, and which is approved by the Commissioner, an aggregate of $100,000, regardless of the number of contracts.

      2.  In no event is the Association obligated to cover more than:

      (a) With respect to any one life or person under paragraphs (b) and (c) of subsection 1:

             (1) An aggregate of $300,000 in benefits, excluding benefits for basic hospital, medical and surgical insurance or major medical insurance; or

             (2) An aggregate of $500,000 in benefits, including benefits for basic hospital, medical and surgical insurance or major medical insurance.

      (b) With respect to one owner of several nongroup policies of life insurance, whether the owner is a natural person or an organization and whether the persons insured are officers, managers, employees or other persons, more than $5,000,000 in benefits, regardless of the number of policies and contracts held by the owner.

      3.  The limitations set forth in this section are limitations on the benefits for which the Association is obligated before taking into account its rights to subrogation or assignment or the extent to which those benefits could be provided out of the assets of the impaired or insolvent insurer attributable to covered policies. The cost of the Association’s obligations under this chapter may be met by the use of assets attributable to covered policies, or reimbursed to the Association pursuant to its rights to subrogation or assignment.

      4.  In performing its obligation to provide coverage under NRS 686C.150 and 686C.152, the Association need not guarantee, assume, reinsure or perform, or cause to be guaranteed, assumed, reinsured or performed, the contractual obligations of the impaired or insolvent insurer under a covered policy or contract which do not materially affect the economic value or economic benefits of the covered policy or contract.

      Sec. 34. NRS 687A.037 is hereby amended to read as follows:

      687A.037  “Member insurer” means any person, except a fraternal or nonprofit service corporation which:

      1.  Writes any kind of insurance to which this chapter applies, including the exchange of reciprocal or interinsurance agreements of indemnity.

      2.  Is [licensed] authorized to transact insurance in this state.

      Sec. 35. NRS 687B.120 is hereby amended to read as follows:

      687B.120  1.  Except as otherwise provided in subsection 2:

      (a) No life or health insurance policy or contract, annuity contract form, policy form, health care plan or plan for dental care, whether individual, group or blanket, including those to be issued by a health maintenance organization, organization for dental care or prepaid limited health service organization, or application form where a written application is required and is to be made a part of the policy or contract, or printed rider or endorsement form or form of renewal certificate, or form of individual certificate or statement of coverage to be issued under group or blanket contracts, or by a health maintenance organization, organization for dental care or prepaid limited health service organization, may be delivered or issued for delivery in this state, unless the form has been filed with and approved by the Commissioner.

 


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Commissioner. [This subsection does not apply to any special rider or endorsement which relates to the manner of distribution of benefits or to the reservation of rights and benefits under life or health insurance policies, which special riders or endorsements are used at the request of the individual policyholder, contract holder or certificate holder.]

      (b) As to group insurance policies effectuated and delivered outside this state but covering persons resident in this state, the group certificates to be delivered or issued for delivery in this state must be filed, for informational purposes only, with the Commissioner at the request of the Commissioner.

      2.  As to group insurance policies to be issued to a group approved pursuant to NRS 688B.030 or 689B.026, no policies of group insurance may be marketed to a resident or employer of this State unless the policy and any form or certificate to be issued pursuant to the policy has been filed with and approved by the Commissioner.

      3.  Every [such] filing made pursuant to the provisions of subsection 1 or 2 must be made not less than 45 days in advance of any [such] delivery [.] pursuant to subsection 1 or marketing pursuant to subsection 2. At the expiration of 45 days the form so filed shall be deemed approved unless prior thereto it has been affirmatively approved or disapproved by order of the Commissioner. Approval of any such form by the Commissioner constitutes a waiver of any unexpired portion of such waiting period. The Commissioner may extend by not more than an additional 30 days the period within which the Commissioner may so affirmatively approve or disapprove any such form, by giving notice to the insurer of the extension before expiration of the initial 45-day period. At the expiration of any such period as so extended, and in the absence of prior affirmative approval or disapproval, any such form shall be deemed approved. The Commissioner may at any time, after notice and for cause shown, withdraw any such approval.

      [3.]4.  Any order of the Commissioner disapproving any such form or withdrawing a previous approval must state the grounds therefor and the particulars thereof in such detail as reasonably to inform the insurer thereof. Any such withdrawal of a previously approved form is effective at the expiration of such a period, not less than 30 days after the giving of notice of withdrawal, as the Commissioner in such notice prescribes.

      [4.]5.  The Commissioner may, by order, exempt from the requirements of this section for so long as the Commissioner deems proper any insurance document or form or type thereof specified in the order, to which, in the opinion of the Commissioner, this section may not practicably be applied, or the filing and approval of which are, in the opinion of the Commissioner, not desirable or necessary for the protection of the public.

      [5.]6.  Appeals from orders of the Commissioner disapproving any such form or withdrawing a previous approval may be taken as provided in NRS 679B.310 to 679B.370, inclusive.

      Sec. 36. Chapter 688A of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  An annuity or policy of life insurance may incorporate long-term care insurance if:

      (a) The long-term care insurance incorporated into the annuity or policy of life insurance complies with regulations adopted by the Commissioner.

      (b) The Commissioner approves the incorporation of long-term care insurance into the annuity or policy of life insurance.

 


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      2.  The Commissioner shall adopt regulations that define “long-term care insurance” for the purposes of this section.

      Sec. 37. NRS 688A.020 is hereby amended to read as follows:

      688A.020  1.  For the purposes of this Code, an “annuity” is a contract under which obligations are assumed to make periodic payments for a specific term or terms or where the making or continuance of all or some such payments, or the amount of any such payment, is dependent upon continuance of human life, except payments made pursuant to optional modes of settlement under the authority of NRS 681A.040 . [(“life insurance” defined). Such a contract which includes extra benefits of the kinds set forth in NRS 681A.030 (“health insurance” defined) and NRS 681A.040 (“life insurance” defined) shall nevertheless be deemed to be an annuity if such extra benefits constitute a subsidiary or incidental part of the entire contract.]

      2.  The term includes an annuity contract which incorporates long-term care insurance if the annuity contract may incorporate the long-term care insurance pursuant to section 36 of this act.

      Sec. 38. NRS 688A.165 is hereby amended to read as follows:

      688A.165  1.  No annuity contract, pure endowment contract or policy of life insurance, other than [an industrial life insurance] a replacement contract or policy, may be delivered or issued for delivery in this state unless it contains a provision, or a notice attached to the contract or policy, which, in substance, states that during a period of 10 days from the date the contract or policy is delivered to the contract or policy owner, it may be surrendered to the insurer together with a written request for cancellation of the contract or policy and in such event, the insurer will refund any premium paid therefor, including any contract or policy fees or other charges.

      2.  No annuity contract, pure endowment contract or policy of life insurance that is a replacement contract or policy may be delivered or issued for delivery in this State unless it contains a provision, or a notice attached to the contract or policy, which, in substance, states that during a period of 30 days after the date on which the contract or policy is delivered to the contract or policy owner, it may be surrendered to the insurer together with a written request for cancellation of the contract or policy and in such event, the insurer will refund any premium paid therefor, including any contract or policy fees or other charges.

      3.  This section does not apply to industrial life insurance policies.

      Sec. 39. NRS 688A.180 is hereby amended to read as follows:

      688A.180  1.  No annuity or pure endowment contract, other than reversionary annuities (also called survivorship annuities) or group annuities and except as stated in this section, shall be delivered or issued for delivery in this state unless it contains in substance each of the provisions specified in NRS 688A.165 and 688A.190 to 688A.240, inclusive. Any of such provisions not applicable to single-premium annuities or single-premium pure endowment contracts shall not, to that extent, be incorporated therein.

      2.  This section does not apply to contracts for deferred annuities included in, or upon the lives of beneficiaries under, life insurance policies.

      Sec. 40. 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 must be based upon minimum nonforfeiture amounts as defined in this section.

 


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or death benefits available under an annuity contract must be based upon minimum nonforfeiture amounts as defined in this section.

      2.  [With respect to contracts providing for flexible considerations, the] The minimum nonforfeiture amount for any time at or before the commencement of any annuity payments is equal to an accumulation of 87.5 percent of the gross considerations up to such time at a rate of interest 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 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.

[Κ The net considerations for a given contract year used to define the minimum nonforfeiture amount must be an amount that is equal to 87.5 percent of the gross considerations credited to the contract during that contract year.]

      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.

      4.  The Commissioner may provide by regulation for further adjustments to the calculation of minimum nonforfeiture amounts for contracts that provide substantive participation in an equity index benefit or for other contracts that the Commissioner determines require adjustment. An adjustment to the calculation of the interest rate used to determine the minimum nonforfeiture amounts authorized under this subsection may not result in an interest rate of less than 1 percent per annum.

      Sec. 41. NRS 688A.3633 is hereby amended to read as follows:

      688A.3633  1.  For contracts which provide cash surrender benefits, such benefits available before maturity shall not be less than the present value as of the date of surrender of that portion of the maturity value of the paid-up annuity benefit which would be provided under the contract at maturity arising from considerations paid before the time of cash surrender, reduced by the amount appropriate to reflect any prior withdrawals from or partial surrenders of the contract, such present value being calculated on the basis of an interest rate of not more than 1 percent higher than the interest rate specified in the contract for accumulating the net considerations to determine such maturity value, decreased by 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. Any cash surrender benefit shall not be less than the minimum nonforfeiture amount at that time. The death benefit under such contracts shall be at least equal to the cash surrender benefit.

      2.  For annuity contracts issued on or after January 1, 2012, that provide cash surrender benefits:

 


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      (a) The cash surrender value on or past the maturity date must be equal to the amount used to determine the annuity benefits;

      (b) A surrender charge may not be imposed on or past the maturity date of the annuity contract; and

      (c) For annuity contracts with one or more renewable guaranteed periods, a new surrender charge schedule may be imposed for each new guaranteed period if:

             (1) The surrender charge is zero at the end of each guaranteed period and remains zero for at least 30 days;

             (2) The contract provides for continuation of the contract without surrender charges unless the contract holder specifically elects a new guaranteed period with a new surrender charge schedule; and

             (3) The renewal period does not exceed 10 years and the maturity date complies with NRS 688A.3637.

      3.  An annuity contract that provides for flexible considerations may have separate surrender charge schedules associated with each consideration.

      Sec. 42. NRS 688A.3637 is hereby amended to read as follows:

      688A.3637  1.  For the purpose of determining the benefits calculated under NRS 688A.3633 and 688A.3635 [, in] :

      (a) In the case of annuity contracts issued before January 1, 2012, under which an election may be made to have annuity payments commence at optional maturity dates, the maturity date shall be deemed to be the latest date for which election is permitted by the contract, but shall not be deemed to be later than the anniversary of the contract next following the annuitant’s 70th birthday or the 10th anniversary of the contract, whichever is later.

      (b) In the case of annuity contracts issued on or after January 1, 2012, the maturity date shall be deemed to be the latest date permitted by the contract, but shall not be deemed to be later than the anniversary of the contract next following the annuitant’s 70th birthday or the 10th anniversary of the contract, whichever is later.

      2.  For the purpose of determining the maturity date under this section for an annuity contract that provides for flexible considerations, the 10th anniversary of the contract is determined separately for each consideration.

      Sec. 43. NRS 688C.200 is hereby amended to read as follows:

      688C.200  1.  Upon the filing of an application and payment of all applicable fees, the Commissioner shall investigate the applicant, and issue a license if the Commissioner finds that the applicant:

      (a) If a provider of viatical settlements, has set forth a detailed plan of operation;

      (b) Is competent and trustworthy and intends to act in good faith in the capacity for which the license is sought;

      (c) Has a good reputation in business and, if a natural person, has had experience, training or education which qualifies the applicant in that capacity;

      (d) If an organization, provides a certificate of good standing from the state of its domicile; and

      (e) If a provider or broker of viatical settlements:

             (1) Has included a plan to prevent fraud which satisfies the requirements of NRS 688C.490; and

 


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             (2) Has demonstrated evidence of financial responsibility through either:

                   (I) A surety bond executed and issued by an authorized surety in favor of the State of Nevada, continuous in form and in an amount as determined by the Commissioner, of not less than $250,000; or

                   (II) A deposit of cash, certificates of deposit, securities or any combination thereof in the amount of $250,000.

      2.  The Commissioner shall not issue a license to a nonresident unless a written designation of an agent for service of process, or an irrevocable written consent to the commencement of an action against the applicant by service of process upon the Commissioner, accompanies the application.

      3.  A provider or broker of viatical settlements shall furnish to the Commissioner new or revised information concerning partners, members, officers, holders of more than 10 percent of its stock, and designated employees within 30 days after a change occurs.

      4.  Notwithstanding any provision of this section to the contrary, the Commissioner shall accept as evidence of financial responsibility proof that financial instruments complying with the requirements of this section have been filed with a state where the applicant is licensed as a provider or broker of viatical settlements.

      5.  A surety bond issued for the purposes of this section must specifically authorize recovery by the Commissioner on behalf of any person in this State who sustained damages as a result of:

      (a) Erroneous acts;

      (b) Failure to act; or

      (c) Conviction of:

             (1) Fraud; or

             (2) Unfair practices,

Κ by the provider or broker of viatical settlements.

      6.  The Commissioner may request evidence of financial responsibility as described in subparagraph (2) of paragraph (e) of subsection 1 at any time the Commissioner deems necessary.

      Sec. 44. NRS 689.175 is hereby amended to read as follows:

      689.175  1.  The proposed seller, or the appropriate corporate officer of the proposed seller, shall apply in writing to the Commissioner for a seller’s certificate of authority, showing:

      (a) The proposed seller’s name and address, and his or her occupations during the preceding 5 years;

      (b) The name and address of the proposed trustee;

      (c) The names and addresses of the proposed performers, specifying what particular services, supplies and equipment each performer is to furnish under the proposed prepaid contract; and

      (d) Such other pertinent information as the Commissioner may reasonably require.

      2.  The application must be accompanied by:

      (a) A copy of the proposed trust agreement and a written statement signed by an authorized officer of the proposed trustee to the effect that the proposed trustee understands the nature of the proposed trust fund and accepts it;

      (b) A copy of each contract or understanding, existing or proposed, between the seller and performers relating to the proposed prepaid contract or items to be supplied under it;

 


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      (c) A certified copy of the articles of incorporation and the bylaws of any corporate applicant;

      (d) A copy of any other document relating to the proposed seller, trustee, trust, performer or prepaid contract, as required by the Commissioner; and

      (e) [A complete set of the fingerprints of the proposed seller, or the appropriate corporate officer of the proposed seller, and written permission authorizing the Commissioner to forward those fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report;

      (f) A fee representing the amount charged by the Federal Bureau of Investigation for processing the fingerprints of the applicant; and

      (g)] The applicable fee established in NRS 680B.010, which is not refundable, and, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110.

      3.  A natural person who is a resident of this State must, as part of his or her application and at the applicant’s own expense:

      (a) Arrange to have a complete set of his or her fingerprints taken by a law enforcement agency or other authorized entity acceptable to the Commissioner; and

      (b) Submit to the Commissioner:

             (1) A completed fingerprint card and written permission authorizing the Commissioner to submit the applicant’s fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Commissioner deems necessary; or

             (2) Written verification, on a form prescribed by the Commissioner, stating that the fingerprints of the applicant were taken and directly forwarded electronically or by another means to the Central Repository and that the applicant has given written permission to the law enforcement agency or other authorized entity taking the fingerprints to submit the fingerprints to the Central Repository for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Commissioner deems necessary.

      4.  The Commissioner may:

      (a) Unless the applicant’s fingerprints are directly forwarded pursuant to subparagraph (2) of paragraph (b) of subsection 3, submit those fingerprints to the Central Repository for submission to the Federal Bureau of Investigation and to such other law enforcement agencies as the Commissioner deems necessary; and

      (b) Request from each such agency any information regarding the applicant’s background as the Commissioner deems necessary.

      Sec. 45. NRS 689.235 is hereby amended to read as follows:

      689.235  1.  To qualify for an agent’s license, the applicant:

      (a) Must file a written application with the Commissioner on forms prescribed by the Commissioner;

      (b) Must have a good business and personal reputation; and

      (c) Must not have been convicted of, or entered a plea of guilty, guilty but mentally ill or nolo contendere to, forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud or any crime involving moral turpitude.

 


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      2.  The application must:

      (a) Contain information concerning the applicant’s identity, address, social security number and personal background and business, professional or work history.

      (b) Contain such other pertinent information as the Commissioner may require.

      (c) [Be accompanied by a complete set of the fingerprints of the applicant and written permission authorizing the Commissioner to forward those fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report.

      (d) Be accompanied by a fee representing the amount charged by the Federal Bureau of Investigation for processing the fingerprints of the applicant.

      (e)] Be accompanied by the statement required pursuant to NRS 689.258.

      [(f)](d) Be accompanied by the applicable fee established in NRS 680B.010, which is not refundable, and, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110.

      3.  A conviction of, or plea of guilty, guilty but mentally ill or nolo contendere by, an applicant or licensee for any crime listed in paragraph (c) of subsection 1 is a sufficient ground for the Commissioner to deny a license to the applicant, or to suspend or revoke the agent’s license pursuant to NRS 689.265.

      4.  A natural person who is a resident of this State must, as part of his or her application and at the applicant’s own expense:

      (a) Arrange to have a complete set of his or her fingerprints taken by a law enforcement agency or other authorized entity acceptable to the Commissioner; and

      (b) Submit to the Commissioner:

             (1) A completed fingerprint card and written permission authorizing the Commissioner to submit the applicant’s fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Commissioner deems necessary; or

             (2) Written verification, on a form prescribed by the Commissioner, stating that the fingerprints of the applicant were taken and directly forwarded electronically or by another means to the Central Repository and that the applicant has given written permission to the law enforcement agency or other authorized entity taking the fingerprints to submit the fingerprints to the Central Repository for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Commissioner deems necessary.

      5.  The Commissioner may:

      (a) Unless the applicant’s fingerprints are directly forwarded pursuant to subparagraph (2) of paragraph (b) of subsection 4, submit those fingerprints to the Central Repository for submission to the Federal Bureau of Investigation and to such other law enforcement agencies as the Commissioner deems necessary; and

      (b) Request from each such agency any information regarding the applicant’s background as the Commissioner deems necessary.

 


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      Sec. 46. NRS 689.490 is hereby amended to read as follows:

      689.490  1.  The proposed seller, or the appropriate corporate officer of the seller, shall apply in writing to the Commissioner for a seller’s permit, showing:

      (a) The proposed seller’s name and address and his or her occupations during the preceding 5 years;

      (b) The name and address of the proposed trustee;

      (c) The names and addresses of the proposed performers, specifying what particular services, supplies and equipment each performer is to furnish under the proposed prepaid contract; and

      (d) Such other pertinent information as the Commissioner may reasonably require.

      2.  The application must be accompanied by:

      (a) A copy of the proposed trust agreement and a written statement signed by an authorized officer of the proposed trustee to the effect that the proposed trustee understands the nature of the proposed trust fund and accepts it;

      (b) A copy of each contract or understanding, existing or proposed, between the seller and performers relating to the proposed prepaid contract or items to be supplied under it;

      (c) A certified copy of the articles of incorporation and the bylaws of any corporate applicant;

      (d) A copy of any other document relating to the proposed seller, trustee, trust, performer or prepaid contract, as required by the Commissioner; and

      (e) [A complete set of the fingerprints of the proposed seller, or the appropriate corporate officer of the seller, and written permission authorizing the Commissioner to forward those fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report;

      (f)A fee representing the amount charged by the Federal Bureau of Investigation for processing the fingerprints of the applicant; and

      (g)]The applicable fee established in NRS 680B.010, which is not refundable, and, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110.

      3.  A natural person who is a resident of this State must, as part of his or her application and at the applicant’s own expense:

      (a) Arrange to have a complete set of his or her fingerprints taken by a law enforcement agency or other authorized entity acceptable to the Commissioner; and

      (b) Submit to the Commissioner:

             (1) A completed fingerprint card and written permission authorizing the Commissioner to submit the applicant’s fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Commissioner deems necessary; or

             (2) Written verification, on a form prescribed by the Commissioner, stating that the fingerprints of the applicant were taken and directly forwarded electronically or by another means to the Central Repository and that the applicant has given written permission to the law enforcement agency or other authorized entity taking the fingerprints to submit the fingerprints to the Central Repository for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Commissioner deems necessary.

 


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Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Commissioner deems necessary.

      4.  The Commissioner may:

      (a) Unless the applicant’s fingerprints are directly forwarded pursuant to subparagraph (2) of paragraph (b) of subsection 3, submit those fingerprints to the Central Repository for submission to the Federal Bureau of Investigation and to such other law enforcement agencies as the Commissioner deems necessary; and

      (b) Request from each such agency any information regarding the applicant’s background as the Commissioner deems necessary.

      Sec. 47. NRS 689.520 is hereby amended to read as follows:

      689.520  1.  To qualify for an agent’s license, the applicant:

      (a) Must file a written application with the Commissioner on forms prescribed by the Commissioner; and

      (b) Must not have been convicted of, or entered a plea of guilty, guilty but mentally ill or nolo contendere to, forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud or any crime involving moral turpitude.

      2.  The application must:

      (a) Contain information concerning the applicant’s identity, address, social security number, personal background and business, professional or work history.

      (b) Contain such other pertinent information as the Commissioner may require.

      (c) [Be accompanied by a complete set of fingerprints and written permission authorizing the Commissioner to forward those fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report.

      (d) Be accompanied by a fee representing the amount charged by the Federal Bureau of Investigation for processing the fingerprints of the applicant.

      (e)] Be accompanied by the statement required pursuant to NRS 689.258.

      [(f)](d) Be accompanied by the applicable fee established in NRS 680B.010, which is not refundable, and, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110.

      3.  A conviction of, or plea of guilty, guilty but mentally ill or nolo contendere by, an applicant or licensee for any crime listed in paragraph (b) of subsection 1 is a sufficient ground for the Commissioner to deny a license to the applicant, or to suspend or revoke the agent’s license pursuant to NRS 689.535.

      4.  A natural person who is a resident of this State must, as part of his or her application and at the applicant’s own expense:

      (a) Arrange to have a complete set of his or her fingerprints taken by a law enforcement agency or other authorized entity acceptable to the Commissioner; and

      (b) Submit to the Commissioner:

             (1) A completed fingerprint card and written permission authorizing the Commissioner to submit the applicant’s fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Commissioner deems necessary; or

 


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to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Commissioner deems necessary; or

             (2) Written verification, on a form prescribed by the Commissioner, stating that the fingerprints of the applicant were taken and directly forwarded electronically or by another means to the Central Repository and that the applicant has given written permission to the law enforcement agency or other authorized entity taking the fingerprints to submit the fingerprints to the Central Repository for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Commissioner deems necessary.

      5.  The Commissioner may:

      (a) Unless the applicant’s fingerprints are directly forwarded pursuant to subparagraph (2) of paragraph (b) of subsection 4, submit those fingerprints to the Central Repository for submission to the Federal Bureau of Investigation and to such other law enforcement agencies as the Commissioner deems necessary; and

      (b) Request from each such agency any information regarding the applicant’s background as the Commissioner deems necessary.

      Sec. 48. NRS 689A.745 is hereby amended to read as follows:

      689A.745  1.  Except as otherwise provided in subsection 4, each insurer that issues a policy of health insurance in this State shall establish a system for resolving any complaints of an insured concerning health care services covered under the policy. The system must be approved by the Commissioner in consultation with the State Board of Health.

      2.  A system for resolving complaints established pursuant to subsection 1 must include an initial investigation, a review of the complaint by a review board and a procedure for appealing a determination regarding the complaint. The majority of the members on a review board must be insureds who receive health care services pursuant to a policy of health insurance issued by the insurer.

      3.  The Commissioner or the State Board of Health may examine the system for resolving complaints established pursuant to subsection 1 at such times as either deems necessary or appropriate.

      4.  Each insurer that issues a policy of health insurance in this State that provides, delivers, arranges for, pays for or reimburses any cost of health care services through managed care shall provide a system for resolving any complaints of an insured concerning those health care services that complies with the provisions of NRS 695G.200 to 695G.310, inclusive [.] , and sections 102 to 112, inclusive, of this act.

      Sec. 49. NRS 689B.026 is hereby amended to read as follows:

      689B.026  1.  Except as otherwise provided in this section, no policy of group health insurance may be delivered or issued for delivery in this state to a group which was formed for the purpose of purchasing one or more policies of group health insurance.

      2.  A policy of group health insurance may be delivered to a group described in subsection 1 if the Commissioner approves the issuance. The Commissioner shall not grant approval unless the Commissioner finds that:

      (a) The benefits of the policy are reasonable in relation to the premiums charged; [and]

 


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      (b) The group to which the policy is issued is organized and operated in a fiscally sound manner [.] ; and

      (c) All policy rates and forms are filed with and approved by the Division before marketing to a resident or employer in this State.

      3.  [Upon approval by the Commissioner, an insurer may exclude or limit the coverage in a policy issued pursuant to this section of any person as to whom evidence of insurability is not satisfactory to the insurer.] The Commissioner shall use the provisions of this chapter and chapter 689C of NRS to review insurance products marketed to employers in this State. The Commissioner shall use the provisions of chapter 689A of NRS to review insurance products marketed to natural persons in this State.

      4.  The provisions of this section apply to the offering in this state of a policy issued in another state.

      Sec. 50. NRS 689B.0285 is hereby amended to read as follows:

      689B.0285  1.  Except as otherwise provided in subsection 4, each insurer that issues a policy of group health insurance in this State shall establish a system for resolving any complaints of an insured concerning health care services covered under the policy. The system must be approved by the Commissioner in consultation with the State Board of Health.

      2.  A system for resolving complaints established pursuant to subsection 1 must include an initial investigation, a review of the complaint by a review board and a procedure for appealing a determination regarding the complaint. The majority of the members on a review board must be insureds who receive health care services pursuant to a policy of group health insurance issued by the insurer.

      3.  The Commissioner or the State Board of Health may examine the system for resolving complaints established pursuant to subsection 1 at such times as either deems necessary or appropriate.

      4.  Each insurer that issues a policy of group health insurance in this State that provides, delivers, arranges for, pays for or reimburses any cost of health care services through managed care shall provide a system for resolving any complaints of an insured concerning the health care services that complies with the provisions of NRS 695G.200 to 695G.310, inclusive [.] , and sections 102 to 112, inclusive, of this act.

      Sec. 51. NRS 689B.080 is hereby amended to read as follows:

      689B.080  Any insurer authorized to write health insurance in this state, including a nonprofit corporation for hospital, medical or dental services that has a certificate of authority issued pursuant to chapter 695B of NRS, may issue blanket accident and health insurance. No blanket policy, except as provided in subsection [4] 5 of NRS 687B.120, may be issued or delivered in this state unless a copy of the form thereof has been filed in accordance with NRS 687B.120. Every blanket policy must contain provisions which in the opinion of the Commissioner are not less favorable to the policyholder and the individual insured than the following:

      1.  A provision that the policy, including endorsements and a copy of the application, if any, of the policyholder and the persons insured constitutes the entire contract between the parties, and that any statement made by the policyholder or by a person insured is in the absence of fraud a representation and not a warranty, and that no such statements may be used in defense to a claim under the policy, unless contained in a written application. The insured or the beneficiary or assignee of the insured has the right to make a written request to the insurer for a copy of an application, and the insurer shall, within 15 days after the receipt of a request at its home office or any branch office of the insurer, deliver or mail to the person making the request a copy of the application.

 


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the insurer shall, within 15 days after the receipt of a request at its home office or any branch office of the insurer, deliver or mail to the person making the request a copy of the application. If a copy is not so delivered or mailed, the insurer is precluded from introducing the application as evidence in any action based upon or involving any statements contained therein.

      2.  A provision that written notice of sickness or of injury must be given to the insurer within 20 days after the date when the sickness or injury occurred. Failure to give notice within that time does not invalidate or reduce any claim if it is shown that it was not reasonably possible to give notice and that notice was given as soon as was reasonably possible.

      3.  A provision that the insurer will furnish to the claimant or to the policyholder for delivery to the claimant such forms as are usually furnished by it for filing proof of loss. If the forms are not furnished before the expiration of 15 days after giving written notice of sickness or injury, the claimant shall be deemed to have complied with the requirements of the policy as to proof of loss upon submitting, within the time fixed in the policy for filing proof of loss, written proof covering the occurrence, the character and the extent of the loss for which claim is made.

      4.  A provision that in the case of a claim for loss of time for disability, written proof of the loss must be furnished to the insurer within 90 days after the commencement of the period for which the insurer is liable, and that subsequent written proofs of the continuance of the disability must be furnished to the insurer at such intervals as the insurer may reasonably require, and that in the case of a claim for any other loss, written proof of the loss must be furnished to the insurer within 90 days after the date of the loss. Failure to furnish such proof within that time does not invalidate or reduce any claim if it is shown that it was not reasonably possible to furnish proof and that the proof was furnished as soon as was reasonably possible.

      5.  A provision that all benefits payable under the policy other than benefits for loss of time will be payable immediately upon receipt of written proof of loss, and that, subject to proof of loss, all accrued benefits payable under the policy for loss of time will be paid not less frequently than monthly during the continuance of the period for which the insurer is liable, and that any balance remaining unpaid at the termination of that period will be paid immediately upon receipt of proof.

      6.  A provision that the insurer at its own expense has the right and opportunity to examine the person of the insured when and so often as it may reasonably require during the pendency of claim under the policy and also the right and opportunity to make an autopsy where it is not prohibited by law.

      7.  A provision, if applicable, setting forth the provisions of NRS 689B.035.

      8.  A provision for benefits for expense arising from care at home or health supportive services if that care or service was prescribed by a physician and would have been covered by the policy if performed in a medical facility or facility for the dependent as defined in chapter 449 of NRS.

      9.  A provision that no action at law or in equity may be brought to recover under the policy before the expiration of 60 days after written proof of loss has been furnished in accordance with the requirements of the policy and that no such action may be brought after the expiration of 3 years after the time written proof of loss is required to be furnished.

 


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      Sec. 51.3. Chapter 689C of NRS is hereby amended by adding thereto a new section to read as follows:

      “Employee leasing company” has the meaning ascribed to it in NRS 616B.670.

      Sec. 51.5. NRS 689C.015 is hereby amended to read as follows:

      689C.015  Except as otherwise provided in this chapter, as used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 689C.017 to 689C.106, inclusive, and section 51.3 of this act have the meanings ascribed to them in those sections.

      Sec. 51.7. NRS 689C.065 is hereby amended to read as follows:

      689C.065  1.  “Eligible employee” means a permanent employee who has a regular working week of 30 or more hours.

      2.  The term includes a sole proprietor , [or] a partner of a partnership [,] or an employee of an employee leasing company, if the sole proprietor , [or] partner or employee of the employee leasing company is included as an employee under a health benefit plan of a small employer.

      Sec. 51.9. NRS 689C.111 is hereby amended to read as follows:

      689C.111  1.  If an employer was not in existence throughout the entire preceding calendar year, the determination of whether the employer is a small or large employer must be based on the average number of employees reasonably expected to be employed on business days in the current calendar year.

      2.  Except as otherwise provided by specific statute, the provisions of this chapter that apply to a small employer at the time that a carrier issues a health benefit plan to the small employer pursuant to the provisions of this chapter continue to apply at least until the plan anniversary following the date on which the small employer no longer meets the requirements of being a small employer.

      3.  An employee leasing company which has more than 50 employees, including leased employees at client locations, and which sponsors a fully insured health benefit plan for those employees shall be deemed to be a large employer for the purposes of this chapter.

      Sec. 52. NRS 689C.156 is hereby amended to read as follows:

      689C.156  1.  As a condition of transacting business in this State with small employers, a carrier shall actively market to a small employer each health benefit plan which is actively marketed in this State by the carrier to any small employer in this State. The health insurance plans marketed pursuant to this section by the carrier must include, without limitation, a basic health benefit plan and a standard health benefit plan. A carrier shall be deemed to be actively marketing a health benefit plan when it makes available any of its plans to a small employer that is not currently receiving coverage under a health benefit plan issued by that carrier.

      2.  A carrier shall issue to a small employer any health benefit plan marketed in accordance with this section if the eligible small employer applies for the plan and agrees to make the required premium payments and satisfy the other reasonable provisions of the health benefit plan that are not inconsistent with NRS 689C.015 to 689C.355, inclusive, and section 51.3 of this act, and 689C.610 to 689C.980, inclusive, except that a carrier is not required to issue a health benefit plan to a self-employed person who is covered by, or is eligible for coverage under, a health benefit plan offered by another employer.

 


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      3.  If a health benefit plan marketed pursuant to this section provides, delivers, arranges for, pays for or reimburses any cost of health care services through managed care, the carrier shall provide a system for resolving any complaints of an employee concerning those health care services that complies with the provisions of NRS 695G.200 to 695G.310, inclusive [.] , and sections 102 to 112, inclusive, of this act.

      Sec. 53. NRS 690B.023 is hereby amended to read as follows:

      690B.023  If insurance for the operation of a motor vehicle required pursuant to NRS 485.185 is provided by a contract of insurance, the insurer shall:

      1.  Provide evidence of insurance to the insured on a form approved by the Commissioner. The evidence of insurance must include:

      (a) The name and address of the policyholder;

      (b) The name and address of the insurer;

      (c) Vehicle information, consisting of:

             (1) The year, make and complete identification number of the insured vehicle or vehicles; or

             (2) The word “Fleet” if the vehicle is covered under a fleet policy written on an any auto basis or blanket policy basis;

      (d) The term of the insurance, including the day, month and year on which the policy:

             (1) Becomes effective; and

             (2) Expires;

      (e) The number of the policy;

      (f) A statement that the coverage meets the requirements set forth in NRS 485.185; and

      (g) The statement “This card must be carried in the insured motor vehicle for production upon demand.” The statement must be prominently displayed.

      2.  Provide new evidence of insurance if:

      (a) The information regarding the insured vehicle or vehicles required pursuant to paragraph (c) of subsection 1 no longer is accurate;

      (b) An additional motor vehicle is added to the policy;

      (c) A new number is assigned to the policy; or

      (d) The insured notifies the insurer that the original evidence of insurance has been lost.

      Sec. 54. Chapter 690C of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  The Commissioner may refuse to renew or may suspend, limit or revoke a provider’s certificate of registration if the Commissioner finds after a hearing thereon, or upon waiver of hearing by the provider, that the provider has:

      (a) Violated or failed to comply with any lawful order of the Commissioner;

      (b) Conducted business in an unsuitable manner;

      (c) Willfully violated or willfully failed to comply with any lawful regulation of the Commissioner; or

      (d) Violated any provision of this chapter.

Κ In lieu of such a suspension or revocation, the Commissioner may levy upon the provider, and the provider shall pay forthwith, an administrative fine of not more than $1,000 for each act or violation.

 


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      2.  The Commissioner shall suspend or revoke a provider’s certificate of registration on any of the following grounds if the Commissioner finds after a hearing thereon that the provider:

      (a) Is in unsound condition, is being fraudulently conducted, or is in such a condition or is using such methods and practices in the conduct of its business as to render its further transaction of service contracts in this State currently or prospectively injurious to service contract holders or to the public.

      (b) Refuses to be examined, or its directors, officers, employees or representatives refuse to submit to examination relative to its affairs, or to produce its books, papers, records, contracts, correspondence or other documents for examination by the Commissioner when required, or refuse to perform any legal obligation relative to the examination.

      (c) Has failed to pay any final judgment rendered against it in this State upon any policy, bond, recognizance or undertaking as issued or guaranteed by it, within 30 days after the judgment became final or within 30 days after dismissal of an appeal before final determination, whichever date is the later.

      3.  The Commissioner may, without advance notice or a hearing thereon, immediately suspend the certificate of registration of any provider that has filed for bankruptcy or otherwise been deemed insolvent.

      Sec. 55. NRS 690C.170 is hereby amended to read as follows:

      690C.170  To be issued a certificate of registration, a provider must comply with one of the following:

      1.  Purchase a contractual liability insurance policy which insures the obligations of each service contract the provider issues, sells or offers for sale. The contractual liability insurance policy must be issued by an insurer which is not an affiliate of the provider and which is authorized to transact insurance in this state or pursuant to the provisions of chapter 685A of NRS [.] ; or

      2.  [Maintain a reserve account and deposit with the Commissioner security as provided in this subsection. The reserve account must contain at all times an amount of money equal to at least 40 percent of the gross consideration received by the provider for any unexpired service contracts, less any claims paid on those unexpired service contracts. The Commissioner may examine the reserve account at any time. The provider shall also deposit with the Commissioner security in an amount that is equal to $25,000 or 5 percent of the gross consideration received by the provider for any unexpired service contracts, less any claims paid on the unexpired service contracts, whichever is greater. The security must be:

      (a) A surety bond issued by a surety company authorized to do business in this state;

      (b) Securities of the type eligible for deposit pursuant to NRS 682B.030;

      (c) Cash;

      (d) An irrevocable letter of credit issued by a financial institution approved by the Commissioner; or

      (e) In any other form prescribed by the Commissioner.

      3.]  Maintain, or be a subsidiary of a parent company that maintains, a net worth or stockholders’ equity of at least $100,000,000. Upon request, a provider shall provide to the Commissioner a copy of the most recent Form 10-K report or Form 20-F report filed by the provider or parent company of the provider with the Securities and Exchange Commission within the previous year.

 


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previous year. If the provider or parent company is not required to file those reports with the Securities and Exchange Commission, the provider shall provide to the Commissioner a copy of the most recently audited financial statements of the provider or parent company. If the net worth or stockholders’ equity of the parent company of the provider is used to comply with the requirements of this subsection, the parent company must guarantee to carry out the duties of the provider under any service contract issued or sold by the provider.

      Sec. 56. Chapter 691A of NRS is hereby amended by adding thereto a new section to read as follows:

      The Commissioner may adopt regulations to carry out the provisions of this chapter.

      Sec. 57. NRS 691A.020 is hereby amended to read as follows:

      691A.020  1.  [Each] Except as otherwise provided in subsection 3, each insurer which provides a policy for a personal line of property insurance covering a manufactured home or mobile [homes] home in Nevada that was manufactured within the immediately preceding 15 years shall offer [,] to an insured, on a form approved by the Commissioner and in addition to any other insurance, the option of purchasing insurance to pay the [market] replacement value of the manufactured home or mobile home in the event of a total loss of the manufactured home or mobile home [.] , including the reasonable costs for:

      (a) Transporting and installing the replacement manufactured home or mobile home; and

      (b) Debris removal.

      2.  Nothing in this section requires any insurer to offer any insurance on manufactured homes or mobile homes at a premium which is not fair and adequate.

      3.  The provisions of this section do not apply to a policy of insurance placed on a manufactured home or a mobile home by a creditor or lender.

      4.  As used in this section:

      (a)“Manufactured home” has the meaning ascribed to it in NRS 489.113.

      (b)“Replacement value” means the amount needed to repair, replace or rebuild a damaged or destroyed manufactured home or mobile home using new materials of similar kind and quality with no deduction for depreciation. The term does not include the value of land.

      Sec. 58. NRS 692A.1041 is hereby amended to read as follows:

      692A.1041  1.  In addition to all other requirements set forth in this title and except as otherwise provided in subsection 4 and NRS 692A.1042, as a condition to doing business in this State, each title agent and title insurer shall deposit with the Commissioner and keep in full force and effect a corporate surety bond payable to the State of Nevada, in the amount set forth in subsection 3, which is executed by a corporate surety satisfactory to the Commissioner and which names as principals the title agency or title insurer and all escrow officers employed by or associated with the title agent or title insurer.

      2.  The bond must be in substantially the following form:

      Know All Persons by These Presents, that ........................, as principal, and ........................, as surety, are held and firmly bound unto the State of Nevada for the use and benefit of any person who suffers damages because of a violation of any of the provisions of chapter 692A of NRS, in the sum of

 


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............, lawful money of the United States, to be paid to the State of Nevada for such use and benefit, for which payment well and truly to be made, and that we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.

      The condition of that obligation is such that: Whereas, the Commissioner of Insurance of the Department of Business and Industry of the State of Nevada has issued the principal a license or certificate of authority as a title agent or title insurer, and the principal is required to furnish a bond, which is conditioned as set forth in this bond:

      Now, therefore, if the principal, the principal’s agents and employees, strictly, honestly and faithfully comply with the provisions of chapter 692A of NRS, and pay all damages suffered by any person because of a violation of any of the provisions of chapter 692A of NRS, or by reason of any fraud, dishonesty, misrepresentation or concealment of material facts growing out of any transaction governed by the provisions of chapter 692A of NRS, then this obligation is void; otherwise it remains in full force.

      This bond becomes effective on the ..........(day) of ................(month) of ......(year), and remains in force until the surety is released from liability by the Commissioner of Insurance or until this bond is cancelled by the surety. The surety may cancel this bond and be relieved of further liability hereunder by giving 60 days’ written notice to the principal and to the Commissioner of Insurance of the Department of Business and Industry of the State of Nevada.

      In Witness Whereof, the seal and signature of the principal hereto is affixed, and the corporate seal and the name of the surety hereto is affixed and attested by its authorized officers at ........................, Nevada, this ................(day) of ................(month) of ......(year).

 

                                                                .............................................................. (Seal)

                                                                                        Principal

                                                                .............................................................. (Seal)

                                                                                          Surety

                                                                        By...........................................................

                                                                                         Attorney-in-fact

                                                                        .................................................................

                                                                                [Licensed resident] Nevada

                                                                                  licensed insurance agent

 

      3.  Each title agent and title insurer shall deposit a corporate surety bond that complies with the provisions of this section or a substitute form of security that complies with the provisions of NRS 692A.1042 in an amount that:

      (a) Is not less than $20,000 or 2 percent of the average collected balance of the trust account or escrow account maintained by the title agent or title insurer pursuant to NRS 692A.250, whichever is greater; and

      (b) Is not more than $250,000.

Κ The Commissioner shall determine the appropriate amount of the surety bond or substitute form of security that must be deposited initially by the title agent or title insurer based upon the expected average collected balance of the trust account or escrow account maintained by the title agent or title insurer pursuant to NRS 692A.250. After the initial deposit, the Commissioner shall, on an annual basis, determine the appropriate amount of the surety bond or substitute form of security that must be deposited by the title agent or title insurer based upon the average collected balance of the trust account or escrow account maintained by the title agent or title insurer pursuant to NRS 692A.250.

 


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Commissioner shall, on an annual basis, determine the appropriate amount of the surety bond or substitute form of security that must be deposited by the title agent or title insurer based upon the average collected balance of the trust account or escrow account maintained by the title agent or title insurer pursuant to NRS 692A.250.

      4.  A title agent or title insurer may offset or reduce the amount of the surety bond or substitute form of security that the title agent or title insurer is required to deposit pursuant to subsection 3 by the amount of any of the following:

      (a) Cash or securities deposited with the Commissioner in this State pursuant to NRS 680A.140 or 682B.015.

      (b) Reserves against unpaid losses and loss expenses maintained pursuant to NRS 692A.150 or 692A.170.

      (c) Unearned premium reserves maintained pursuant to NRS 692A.160 or 692A.170.

      (d) Fidelity bonds maintained by the title agent or title insurer.

      (e) Other bonds or policies of insurance maintained by the title agent or title insurer covering liability for economic losses to customers caused by the title agent or title insurer.

      Sec. 59. NRS 692B.070 is hereby amended to read as follows:

      692B.070  1.  A written application for any permit required under NRS 692B.040 must be filed with the Commissioner. The application must include or be accompanied by:

      (a) The name, type and purposes of the insurer, corporation, syndicate, association, firm or organization formed or proposed to be formed or financed;

      (b) On forms furnished by the Commissioner, for each person associated or to be associated as incorporator, director, promoter, manager or in other similar capacity in the enterprise, or in the formation of the proposed insurer, corporation, syndicate, association, firm or organization, or in the proposed financing:

             (1) The person’s name, residential address and qualifications; and

             (2) The person’s business background and experience for the preceding 10 years; [and

             (3)A complete set of the person’s fingerprints which the Commissioner may forward to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report;]

      (c) A full disclosure of the terms of all pertinent understandings and agreements existing or proposed among any persons or entities so associated or to be associated, and a copy of each such agreement;

      (d) Executed quadruplicate originals of the articles of incorporation of a proposed domestic stock or mutual insurer;

      (e) The original and one copy of the proposed bylaws of a proposed domestic stock or mutual insurer;

      (f) The plan according to which solicitations are to be made and a reasonably detailed estimate of all organization and sales expenses to be incurred in the proposed organization and offering;

      (g) A copy of any security, receipt or certificate proposed to be offered, and a copy of any proposed subscription agreement or application therefor;

 


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      (h) A copy of any prospectus, offering circular, advertising or sales literature or material proposed to be used;

      (i) A copy of the proposed form of any escrow agreement required;

      (j) A copy of:

             (1) The articles of incorporation of any corporation, other than a proposed domestic insurer, proposing to offer its securities, certified by the public officer having custody of the original thereof;

             (2) Any syndicate, association, firm, organization or other similar agreement, by whatever name called, if funds for any of the purposes referred to in subsection 1 of NRS 692B.040 are to be secured through the sale of any security, interest or right in or relative to such syndicate, association, firm or organization; and

             (3) If the insurer is, or is to be, a reciprocal insurer, the power of attorney and of other agreements existing or proposed affecting subscribers, investors, the attorney-in-fact or the insurer;

      (k) If the applicant is a natural person, the statement required pursuant to NRS 692B.193; and

      (l) Such additional pertinent information as the Commissioner may reasonably require.

      2.  The application must be accompanied by a deposit of the fees required under NRS 680B.010 for the filing of the application and for issuance of the permit, if granted.

      3.  If the applicant is a natural person, the application must include the social security number of the applicant.

      4.  In lieu of a special filing thereof of information required by subsection 1, the Commissioner may accept a copy of any pertinent filing made with the Securities and Exchange Commission relative to the same offering.

      5.  Each person identified in paragraph (b) of subsection 1 who is a resident of this State must, as part of his or her application and at the person’s own expense:

      (a)Arrange to have a complete set of his or her fingerprints taken by a law enforcement agency or other authorized entity acceptable to the Commissioner; and

      (b)Submit to the Commissioner:

             (1)A completed fingerprint card and written permission authorizing the Commissioner to submit the person’s fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for a report on the person’s background and to such other law enforcement agencies as the Commissioner deems necessary; or

             (2)Written verification, on a form prescribed by the Commissioner, stating that the fingerprints of the person were taken and directly forwarded electronically or by another means to the Central Repository and that the person has given written permission to the law enforcement agency or other authorized entity taking the fingerprints to submit the fingerprints to the Central Repository for submission to the Federal Bureau of Investigation for a report on the person’s background and to such other law enforcement agencies as the Commissioner deems necessary.

 


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      6.  The Commissioner may:

      (a)Unless the person’s fingerprints are directly forwarded pursuant to subparagraph (2) of paragraph (b) of subsection 5, submit those fingerprints to the Central Repository for submission to the Federal Bureau of Investigation and to such other law enforcement agencies as the Commissioner deems necessary; and

      (b)Request from each such agency any information regarding the person’s background as the Commissioner deems necessary.

      Sec. 60. NRS 692B.190 is hereby amended to read as follows:

      692B.190  1.  No person may in this State solicit subscription to or purchase of any security covered by a solicitation permit issued under this chapter, unless then licensed therefor by the Commissioner.

      2.  Such a license may be issued only to natural persons, and the Commissioner shall not license any person found by the Commissioner to be:

      (a) Dishonest or untrustworthy;

      (b) Financially irresponsible;

      (c) Of unfavorable personal or business history or reputation; or

      (d) For any other cause, reasonably unsuited for fulfillment of the responsibilities of such a licensee.

      3.  The applicant for such a license must file a written application therefor with the Commissioner, on forms and containing inquiries as designated and required by the Commissioner. The application must include or be accompanied by:

      (a) The social security number of the applicant;

      (b) An endorsement by the holder of the permit under which the securities are proposed to be sold; and

      (c) [A complete set of the fingerprints of the applicant on forms furnished by the Commissioner; and

      (d)] The application fee specified in NRS 680B.010.

      4.  The Commissioner [:

      (a)May forward the complete set of fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report; and

      (b)Shall] shall promptly cause an investigation to be made of the identity and qualifications of the applicant.

      5.  The license, if issued, must be for the period of the permit, and must automatically be extended if the permit is extended.

      6.  The Commissioner shall revoke the license if at any time after issuance the Commissioner has found that the license was obtained through misrepresentation or concealment of facts, or that the licensee is no longer qualified therefor, or that the licensee has misrepresented the securities offered, or has otherwise conducted himself or herself in or with respect to transactions under the license in a manner injurious to the permit holder or to subscribers or prospects or the public.

      7.  This section does not apply to securities broker-dealers registered as such under the Securities Exchange Act of 1934, or with respect to securities the sale of which is underwritten, other than on a best efforts basis, by such a broker-dealer.

 


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      8.  With respect to solicitation of subscriptions to or purchase of securities covered by a solicitation permit issued by the Commissioner, the license required by this section is in lieu of a license or permit otherwise required of the solicitor under any other law of this State.

      9.  An applicant who is a resident of this State must, as part of his or her application and at the applicant’s own expense:

      (a)Arrange to have a complete set of his or her fingerprints taken by a law enforcement agency or other authorized entity acceptable to the Commissioner; and

      (b)Submit to the Commissioner:

             (1)A completed fingerprint card and written permission authorizing the Commissioner to submit the applicant’s fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Commissioner deems necessary; or

             (2)Written verification, on a form prescribed by the Commissioner, stating that the fingerprints of the applicant were taken and directly forwarded electronically or by another means to the Central Repository and that the applicant has given written permission to the law enforcement agency or other authorized entity taking the fingerprints to submit the fingerprints to the Central Repository for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Commissioner deems necessary.

      10.  The Commissioner may:

      (a)Unless the applicant’s fingerprints are directly forwarded pursuant to subparagraph (2) of paragraph (b) of subsection 9, submit those fingerprints to the Central Repository for submission to the Federal Bureau of Investigation and to such other law enforcement agencies as the Commissioner deems necessary; and

      (b)Request from each such agency any information regarding the applicant’s background as the Commissioner deems necessary.

      Sec. 61. NRS 692C.370 is hereby amended to read as follows:

      692C.370  For the purposes of this chapter, in determining whether or not an insurer’s surplus as regards policyholders is reasonable in relation to the insurer’s outstanding liabilities and adequate to its financial needs, the following factors among others must be considered:

      1.  The size of the insurer as measured by its assets, capital and surplus, reserves, premium writings, operating results, insurance in force and other appropriate criteria.

      2.  The extent to which the insurer’s business is diversified among the several lines of insurance.

      3.  The number and size of risks insured in each line of business.

      4.  The extent of the geographical dispersion of the insurer’s insured risks.

      5.  The nature and extent of the insurer’s reinsurance program.

      6.  The quality, diversification and liquidity of the insurer’s investment portfolio.

 


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      7.  The recent past and projected future trend in the size of the insurer’s surplus as regards policyholders.

      8.  The surplus as regards policyholders maintained by other comparable insurers.

      9.  The adequacy of the insurer’s reserves.

      10.  The quality and liquidity of investments in affiliates or subsidiaries made pursuant to NRS 692C.180 to 692C.250, inclusive. The Commissioner may treat any such investment as a disallowed asset for purposes of determining the adequacy of surplus as regards policyholders whenever in the judgment of the Commissioner such investment so warrants.

      11.  The quality of the insurer’s earnings and the extent to which the reported earnings of the insurer include extraordinary items. As used in this subsection, the term “extraordinary item” means a nonrecurring occurrence or event.

      Sec. 62. (Deleted by amendment.)

      Sec. 62.5. NRS 694C.210 is hereby amended to read as follows:

      694C.210  A captive insurer must apply to the Commissioner for a license. The application must include:

      1.  A certified copy of the charter and bylaws of the captive insurer;

      2.  A pro forma financial statement for the captive insurer that has been prepared by a certified public accountant [;] or an actuary authorized by the Division to conduct business in this State;

      3.  Any other statements or documents that the Commissioner requires to be filed with the application;

      4.  Evidence of:

      (a) The amount and liquidity of its assets relative to the risks to be assumed by the captive insurer;

      (b) The expertise, experience and character of the persons who will manage the captive insurer;

      (c) The overall soundness of the plan of operation of the captive insurer; and

      (d) The adequacy of the programs of the captive insurer providing for loss prevention by its parent or member organizations, as applicable; and

      5.  Such other information deemed to be relevant by the Commissioner in ascertaining whether the proposed captive insurer will be able to meet its policy obligations.

      Sec. 63. NRS 694C.330 is hereby amended to read as follows:

      694C.330  Except as otherwise provided in this section, a captive insurer shall pay dividends out of, or make any other distributions from, its capital or surplus, or both, in accordance with the provisions set forth in NRS 692C.370, 693A.140, 693A.150 and 693A.160. A captive insurer shall not pay dividends out of, or make any other distribution with respect to, its capital or surplus, or both, in violation of this section unless the captive insurer has obtained the prior approval of the Commissioner to make such a payment or distribution.

      Sec. 64. NRS 694C.400 is hereby amended to read as follows:

      694C.400  1.  On or before [March 1] June 30 of each year, a captive insurer shall submit to the Commissioner a report of its financial condition, as prepared by a certified public accountant.

 


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as prepared by a certified public accountant. A captive insurer shall use generally accepted accounting principles and include any useful or necessary modifications or adaptations thereof that have been approved or accepted by the Commissioner for the type of insurance and kinds of insurers to be reported upon, and as supplemented by additional information required by the Commissioner. Except as otherwise provided in this section, each association captive insurer, agency captive insurer, rental captive insurer or sponsored captive insurer shall file its report in the form required by NRS [680A.265.] 680A.270. The Commissioner shall adopt regulations designating the form in which pure captive insurers must report.

      2.  A pure captive insurer may apply, in writing, for authorization to file its annual report based on a fiscal year that is consistent with the fiscal year of the parent company of the pure captive insurer. If an alternative date is granted:

      (a) The annual report is due not later than [60] 180 days after the end of each such fiscal year; and

      (b) The pure captive insurer shall file on or before March 1 of each year such forms as required by the Commissioner by regulation to provide sufficient detail to support its premium tax return filed pursuant to NRS 694C.450.

      3.  Any captive insurer failing, without just cause beyond the reasonable control of the captive insurer, to file its annual statement as required by subsection 1 shall pay a penalty of $100 for each day the captive insurer fails to file the report, but not to exceed an aggregate amount of $3,000, to be recovered in the name of the State of Nevada by the Attorney General.

      4.  Any director, officer, agent or employee of a captive insurer who subscribes to, makes or concurs in making or publishing, any annual or other statement required by law, knowing the same to contain any material statement which is false, is guilty of a gross misdemeanor.

      Sec. 64.5. NRS 694C.410 is hereby amended to read as follows:

      694C.410  1.  Except as otherwise provided in this section, at least once every 3 years, and at such other times as the Commissioner determines necessary, the Commissioner, or a designee of the Commissioner, shall visit each captive insurer and thoroughly inspect and examine the affairs of the captive insurer to ascertain:

      (a) The financial condition of the captive insurer;

      (b) The ability of the captive insurer to fulfill its obligations; and

      (c) Whether the captive insurer has complied with the provisions of this chapter and the regulations adopted pursuant thereto.

      2.  Upon the application of a captive insurer, the Commissioner may conduct the visits required pursuant to subsection 1 every 5 years if the captive insurer conducts comprehensive annual audits:

      (a) The scope of which is satisfactory to the Commissioner; and

      (b) Which are conducted by an independent auditor appointed by the Commissioner.

      3.  The provisions of subsections 1 and 2 do not apply to a pure captive insurer. The Commissioner may conduct an examination of a pure captive insurer at any reasonable time to ascertain:

 


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      (a)The financial condition of the pure captive insurer;

      (b)The ability of the pure captive insurer to fulfill its obligations; and

      (c)Whether the pure captive insurer has complied with the provisions of this chapter and the regulations adopted pursuant thereto.

      4.  The Commissioner may contract to obtain legal, financial and examination services from outside the Division to conduct the examination and make recommendations to the Commissioner. The cost of the examination must be paid to the Commissioner by the captive insurer.

      [4.] 5.  The provisions of NRS 679B.230 to 679B.287, inclusive, apply to examinations conducted pursuant to this section.

      Sec. 65. NRS 695B.380 is hereby amended to read as follows:

      695B.380  1.  Except as otherwise provided in subsection 4, each insurer that issues a contract for hospital or medical services in this State shall establish a system for resolving any complaints of an insured concerning health care services covered under the policy. The system must be approved by the Commissioner in consultation with the State Board of Health.

      2.  A system for resolving complaints established pursuant to subsection 1 must include an initial investigation, a review of the complaint by a review board and a procedure for appealing a determination regarding the complaint. The majority of the members on a review board must be insureds who receive health care services pursuant to a contract for hospital or medical services issued by the insurer.

      3.  The Commissioner or the State Board of Health may examine the system for resolving complaints established pursuant to subsection 1 at such times as either deems necessary or appropriate.

      4.  Each insurer that issues a contract specified in subsection 1 shall, if the contract provides, delivers, arranges for, pays for or reimburses any cost of health care services through managed care, provide a system for resolving any complaints of an insured concerning those health care services that complies with the provisions of NRS 695G.200 to 695G.310, inclusive [.] , and sections 102 to 112, inclusive, of this act.

      Sec. 65.5. (Deleted by amendment.)

      Sec. 66. NRS 695C.260 is hereby amended to read as follows:

      695C.260  Each health maintenance organization shall establish:

      1.  A system for resolving complaints which complies with the provisions of NRS 695G.200 to 695G.230, inclusive; and

      2.  A system for conducting external reviews of [final] adverse determinations that complies with the provisions of NRS 695G.241 to 695G.310, inclusive, and sections 102 to 112, inclusive [.] , of this act.

      Sec. 67. NRS 695C.330 is hereby amended to read as follows:

      695C.330  1.  The Commissioner may suspend or revoke any certificate of authority issued to a health maintenance organization pursuant to the provisions of this chapter if the Commissioner finds that any of the following conditions exist:

      (a) The health maintenance organization is operating significantly in contravention of its basic organizational document, its health care plan or in a manner contrary to that described in and reasonably inferred from any other information submitted pursuant to NRS 695C.060, 695C.070 and 695C.140, unless any amendments to those submissions have been filed with and approved by the Commissioner;

 


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      (b) The health maintenance organization issues evidence of coverage or uses a schedule of charges for health care services which do not comply with the requirements of NRS 695C.1691 to 695C.200, inclusive, or 695C.207;

      (c) The health care plan does not furnish comprehensive health care services as provided for in NRS 695C.060;

      (d) The State Board of Health certifies to the Commissioner that the health maintenance organization:

             (1) Does not meet the requirements of subsection 2 of NRS 695C.080; or

             (2) Is unable to fulfill its obligations to furnish health care services as required under its health care plan;

      (e) The health maintenance organization is no longer financially responsible and may reasonably be expected to be unable to meet its obligations to enrollees or prospective enrollees;

      (f) The health maintenance organization has failed to put into effect a mechanism affording the enrollees an opportunity to participate in matters relating to the content of programs pursuant to NRS 695C.110;

      (g) The health maintenance organization has failed to put into effect the system required by NRS 695C.260 for:

             (1) Resolving complaints in a manner reasonably to dispose of valid complaints; and

             (2) Conducting external reviews of [final] adverse determinations that comply with the provisions of NRS 695G.241 to 695G.310, inclusive, and sections 102 to 112, inclusive [;] , of this act;

      (h) The health maintenance organization or any person on its behalf has advertised or merchandised its services in an untrue, misrepresentative, misleading, deceptive or unfair manner;

      (i) The continued operation of the health maintenance organization would be hazardous to its enrollees;

      (j) The health maintenance organization fails to provide the coverage required by NRS 695C.1691; or

      (k) The health maintenance organization has otherwise failed to comply substantially with the provisions of this chapter.

      2.  A certificate of authority must be suspended or revoked only after compliance with the requirements of NRS 695C.340.

      3.  If the certificate of authority of a health maintenance organization is suspended, the health maintenance organization shall not, during the period of that suspension, enroll any additional groups or new individual contracts, unless those groups or persons were contracted for before the date of suspension.

      4.  If the certificate of authority of a health maintenance organization is revoked, the organization shall proceed, immediately following the effective date of the order of revocation, to wind up its affairs and shall conduct no further business except as may be essential to the orderly conclusion of the affairs of the organization. It shall engage in no further advertising or solicitation of any kind. The Commissioner may, by written order, permit such further operation of the organization as the Commissioner may find to be in the best interest of enrollees to the end that enrollees are afforded the greatest practical opportunity to obtain continuing coverage for health care.

 


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      Sec. 68. NRS 695E.110 is hereby amended to read as follows:

      695E.110  “Risk retention group” means any corporation or association with limited liability that is formed under the laws of any state, Bermuda or the Cayman Islands:

      1.  Whose primary activity consists of assuming and spreading all or any portion of the exposure of its corporation or association members to liability;

      2.  Which is organized primarily to conduct the activity described in subsection 1;

      3.  Which:

      (a) Is chartered and licensed as a liability insurer and authorized to transact insurance under the laws of any state; or

      (b) Before January 1, 1985, was chartered or licensed and authorized to transact insurance under the laws of Bermuda or the Cayman Islands and, before that date, had certified to the Commissioner of Insurance of at least one state that it satisfied the state’s requirements for capitalization, except that such a group is considered to be a risk retention group only if it has been engaged in business continuously since that date and only for the purpose of continuing to provide insurance to cover product liability or completed operations liability;

      4.  Which does not exclude any person from membership in the group solely to provide for members of the group a competitive advantage over an excluded person;

      5.  Which has as its:

      (a) [Members] Owners only persons who [have an ownership interest in the group and who are provided insurance by] comprise the membership of the risk retention group [;] and who are provided insurance by the risk retention group; or

      (b) Sole owner an organization which has as its:

             (1) Members only persons who comprise the membership of the risk retention group; and

             (2) Owners only persons who comprise the membership of the risk retention group and who are provided insurance by the group;

      6.  Whose members are engaged in businesses or activities similar or related with respect to the liability to which they are exposed by virtue of any related, similar or common business, trade, product, services, premises or operations;

      7.  Whose activities do not include the provision of insurance other than:

      (a) Liability insurance for assuming and spreading all or any portion of the liability of the members of the group; and

      (b) Reinsurance with respect to the liability of any other risk retention group, or any member of such a group, that is engaged in a business or activity such that the other group or member meets the requirements of subsection 6 for membership in the risk retention group that provides reinsurance; and

      8.  The name of which includes the phrase “risk retention group.”

      Sec. 69. NRS 695F.230 is hereby amended to read as follows:

      695F.230  1.  Each prepaid limited health service organization shall establish a system for the resolution of written complaints submitted by enrollees and providers.

 


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      2.  The provisions of subsection 1 do not prohibit an enrollee or provider from filing a complaint with the Commissioner or limit the Commissioner’s authority to investigate such a complaint.

      3.  Each prepaid limited health service organization that issues any evidence of coverage that provides, delivers, arranges for, pays for or reimburses any cost of health care services through managed care shall provide a system for resolving any complaints of an enrollee or subscriber concerning those health care services that complies with the provisions of NRS 695G.200 to 695G.310, inclusive [.] , and sections 102 to 112, inclusive, of this act.

      Sec. 70. Chapter 695G of NRS is hereby amended by adding thereto the provisions set forth as sections 71 to 112, inclusive, of this act.

      Secs. 71-78. (Deleted by amendment.)

      Sec. 79.  “Benefits” means those health care services to which a covered person is entitled under the terms of a health benefit plan.

      Sec. 80.  “Covered person” means a policyholder, subscriber, enrollee or other person participating in a health benefit plan.

      Secs. 81-87. (Deleted by amendment.)

      Sec. 88.  “Health benefit plan” means a policy, contract, certificate or agreement offered or issued by a health carrier to provide, deliver, arrange for, pay for or reimburse any of the costs of health care services.

      Secs. 89 and 90. (Deleted by amendment.)

      Sec. 91.  “Health care services” means services for the diagnosis, prevention, treatment, care or relief of a health condition, illness, injury or disease.

      Sec. 92.  “Health carrier” means an entity subject to the insurance laws and regulations of this State, or subject to the jurisdiction of the Commissioner, that contracts or offers to contract to provide, deliver, arrange for, pay for or reimburse any of the costs of health care services, including, without limitation, a sickness and accident health insurance company, a health maintenance organization, a nonprofit hospital and health service corporation or any other entity providing a plan of health insurance, health benefits or health care services.

      Sec. 93. (Deleted by amendment.)

      Sec. 94. “Medical or scientific evidence” means evidence found in the following sources:

      1.  Peer-reviewed scientific studies published in or accepted for publication by medical journals that meet nationally recognized requirements for scientific manuscripts and that submit most of their published articles for review by experts who are not part of the editorial staff;

      2.  Peer-reviewed medical literature, including literature relating to therapies reviewed and approved by a qualified institutional review board, biomedical compendia and other medical literature that meet the criteria of the National Library of Medicine of the National Institutes of Health for indexing in Index Medicus (MEDLINE) and Elsevier for indexing in Excerpta Medica (EMBASE);

      3.  Medical journals recognized by the Secretary of Health and Human Services pursuant to section 1861(t)(2) of the Social Security Act, 42 U.S.C. § 1395x;

 


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κ2011 Statutes of Nevada, Page 3399 (CHAPTER 506, AB 74)κ

 

      4.  The following standard reference compendia:

      (a) AHFS Drug Information published by the American Society of Health-System Pharmacists;

      (b) Drug Facts and Comparisons published by Wolter Kluwers Health;

      (c) Accepted Dental Therapeutics published by the American Dental Association; and

      (d) The United States Pharmacopoeia’s Drug Quality and Information Program;

      5.  Findings, studies or research conducted by or under the auspices of the Federal Government and nationally recognized federal research institutes, including, without limitation:

      (a) The Agency for Healthcare Research and Quality;

      (b) The National Institutes of Health;

      (c) The National Cancer Institute;

      (d) The National Academy of Sciences of the National Academies;

      (e) The Centers for Medicare and Medicaid Services;

      (f) The Food and Drug Administration; and

      (g) Any national board recognized by the National Institutes of Health for the purpose of evaluating the medical value of health care services; or

      6.  Any other source of medical or scientific evidence that is comparable to the sources listed in subsections 1 to 5, inclusive.

      Secs. 95-100. (Deleted by amendment.)

      Sec. 101. “Utilization review organization” means an entity designated by a health carrier to conduct utilization reviews.

      Sec. 102.  1.  Except as otherwise provided in subsection 2, the provisions of NRS 695G.200 to 695G.310, inclusive, and sections 102 to 112, inclusive, of this act apply to all health carriers.

      2.  The provisions of subsection 1 do not apply to:

      (a) A policy or certificate that provides only coverage for:

             (1) A specified disease or accident;

             (2) Accidents;

             (3) Credit dental;

             (4) Disability income;

             (5) Hospital indemnity;

             (6) Long-term care insurance;

             (7) Vision care; or

             (8) Any other limited supplemental benefit;

      (b) A Medicare supplement policy of insurance, as defined in regulations adopted by the Commissioner;

      (c) Coverage under a plan through Medicare, Medicaid or the Federal Employees Health Benefits Program, FEHBP, 5 U.S.C. §§ 8901 et seq.;

      (d) Any coverage issued under the Civilian Health and Medical Program of the Uniformed Services, CHAMPUS, 10 U.S.C. §§ 1071 et seq., and any coverage issued as supplemental to that coverage;

      (e) Any coverage issued as supplemental to liability insurance;

      (f) Workers’ compensation or similar insurance;

      (g) Automobile medical payment insurance; or

      (h) Any insurance under which benefits are payable with or without regard to fault, whether written on a group, blanket or individual basis.

 


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κ2011 Statutes of Nevada, Page 3400 (CHAPTER 506, AB 74)κ

 

      Sec. 103. 1.  A health carrier shall notify the covered person in writing of the covered person’s right to request an external review to be conducted pursuant to NRS 695G.241 to 695G.310, inclusive, and sections 102 to 112, inclusive, of this act and include the appropriate statements and information set forth in subsection 2 at the same time the health carrier sends written notice of an adverse determination upon completion of the health carrier’s utilization review process set forth in NRS 683A.375 to 683A.379, inclusive, and the regulations adopted pursuant thereto.

      2.  As part of the written notice required pursuant to subsection 1, a health carrier shall include the following, or substantially equivalent, language:

 

We have denied your request for the provision of or payment for a health care service or course of treatment. You may have the right to have our decision reviewed by health care professionals who have no association with us if our decision involved making a judgment as to the medical necessity, appropriateness, health care setting, level of care or effectiveness of the health care service or treatment you requested by submitting a request for external review to the Office for Consumer Health Assistance.

 

      3.  The Commissioner may prescribe by regulation the form and content of the notice required pursuant to this section.

      4.  The health carrier shall include in the notice required pursuant to subsection 1 a statement informing the covered person that:

      (a) If the covered person has a medical condition where the timeframe for completion of an expedited review of a grievance involving an adverse determination set forth in NRS 695G.200 to 695G.230, inclusive, would seriously jeopardize the life or health of the covered person or would jeopardize the covered person’s ability to regain maximum function, the covered person or the covered person’s authorized representative may, at the same time the covered person or the covered person’s authorized representative files a request for an expedited review of a grievance involving an adverse determination as set forth in NRS 695G.210, file a request for an expedited external review to be conducted pursuant to NRS 695G.271 and section 107 of this act if the adverse determination involves a denial of coverage based on a determination that the recommended or requested health care service or treatment is experimental or investigational and the covered person’s treating physician certifies in writing that the recommended or requested health care service or treatment that is the subject of the adverse determination would be significantly less effective if not promptly initiated, and the independent review organization assigned to conduct the expedited external review will determine whether the covered person will be required to complete the expedited review of the grievance before conducting the expedited external review; and

      (b) The covered person or the covered person’s authorized representative may file a grievance under the health carrier’s internal grievance process as set forth in NRS 695G.200 to 695G.230, inclusive, but if the health carrier has not issued a written decision to the covered person or the covered person’s authorized representative within 30 days after the date on which the covered person or the covered person’s authorized representative filed the grievance with the health carrier and the covered person or the covered person’s authorized representative has not requested or agreed to a delay, the covered person or the covered person’s authorized representative may file a request for external review pursuant to NRS 695G.251 and shall be considered to have exhausted the health carrier’s internal grievance process.

 


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κ2011 Statutes of Nevada, Page 3401 (CHAPTER 506, AB 74)κ

 

person or the covered person’s authorized representative has not requested or agreed to a delay, the covered person or the covered person’s authorized representative may file a request for external review pursuant to NRS 695G.251 and shall be considered to have exhausted the health carrier’s internal grievance process.

      5.  In addition to the information required to be provided pursuant to subsection 1, the health carrier shall include a copy of the description of both the standard and expedited external review procedures the health carrier is required to provide pursuant to section 112 of this act, highlighting the provisions in the external review procedures that give the covered person or the covered person’s authorized representative the opportunity to submit additional information and including any forms used to process an external review.

      6.  As part of any forms provided pursuant to subsection 3, the health carrier shall include an authorization form, or other document approved by the Commissioner that complies with the requirements of 45 C.F.R. § 164.508, by which the covered person, for purposes of conducting an external review, authorizes the health carrier and the covered person’s treating health care provider to disclose protected health information, including medical records, concerning the covered person that are pertinent to the external review.

      7.  As used in this section, “protected health information” has the meaning ascribed to it in 45 C.F.R. § 160.103.

      Sec. 104. 1.  Except for a request for an expedited external review as set forth in NRS 695G.271 or section 107 of this act, all requests for external review must be made in writing to the Office for Consumer Health Assistance.

      2.  The Commissioner may prescribe by regulation the form and content of requests for external review required to be submitted pursuant to this section.

      3.  A covered person or the covered person’s authorized representative may submit a request for an external review of an adverse determination.

      Secs. 105 and 106. (Deleted by amendment.)

      Sec. 107. 1.  Within 4 months after receipt of a notice of an adverse determination pursuant to section 103 of this act that involves a denial of coverage based on a determination that the health care service or treatment recommended or requested is experimental or investigational, a covered person or the covered person’s authorized representative may file a request for external review with the Office for Consumer Health Assistance pursuant to this section.

      2.  A covered person or the covered person’s authorized representative may make an oral request for an expedited external review of the adverse determination pursuant to section 103 of this act that involves a denial of coverage based on a determination that the health care service or treatment recommended or requested is experimental or investigational if the covered person’s treating physician certifies, in writing, that the recommended or requested health care service or treatment that is the subject of the request would be significantly less effective if not promptly initiated.

      3.  Upon receipt of a request for an expedited external review pursuant to subsection 2, the Office for Consumer Health Assistance shall immediately notify the health carrier.

 


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κ2011 Statutes of Nevada, Page 3402 (CHAPTER 506, AB 74)κ

 

      4.  Immediately upon notice of a request for an expedited external review pursuant to subsection 2, the health carrier shall determine whether the request meets the requirements for review set forth in subsection 12. The health carrier shall immediately notify the Office for Consumer Health Assistance and the covered person and, if applicable, the covered person’s authorized representative, of its determination regarding eligibility.

      5.  The Commissioner may specify the form for the notice of initial determination pursuant to subsection 4 and any supporting information to be included in the notice.

      6.  The notice of initial determination required by subsection 4 must include a statement that a health carrier’s initial determination that a request which is ineligible for external review may be appealed to the Office for Consumer Health Assistance.

      7.  The Office for Consumer Health Assistance may determine that a request for an expedited external review is eligible for external review pursuant to subsection 12 and require that it be referred for expedited external review notwithstanding a health carrier’s initial determination that the request is ineligible.

      8.  In making a determination pursuant to subsection 7, the decision of the Office for Consumer Health Assistance must be made in accordance with the terms of the covered person’s health benefit plan and is subject to all applicable provisions of the external review process.

      9.  Upon receipt of the notice that the request for expedited external review meets the requirements for review, the Office for Consumer Health Assistance shall immediately assign an independent review organization to conduct the expedited external review from the list of approved independent review organizations compiled and maintained by the Commissioner pursuant to section 8 of this act and notify the health carrier of the name of the assigned independent review organization.

      10.  Upon receipt of the notice pursuant to subsection 9, the health carrier or utilization review organization shall provide or transmit any documents and information considered in making the adverse determination to the assigned independent review organization electronically or by telephone or facsimile, or any other available expeditious method.

      11.  Except as otherwise provided in subsection 3, within 1 business day after receipt of a request for external review pursuant to subsection 1, the Office for Consumer Health Assistance shall notify the health carrier.

      12.  Within 5 business days after receipt of the notice sent pursuant to subsection 11, the health carrier shall conduct and complete a preliminary review of the request to determine whether:

      (a) The person is or was a covered person in the health benefit plan at the time the health care service or treatment was recommended or requested or, in the case of a retrospective review, was a covered person in the health benefit plan at the time the health care service or treatment was provided;

      (b) The recommended or requested health care service or treatment that is the subject of the adverse determination:

 


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κ2011 Statutes of Nevada, Page 3403 (CHAPTER 506, AB 74)κ

 

             (1) Would be a covered benefit under the covered person’s health benefit plan but for the health carrier’s determination that the health care service or treatment is experimental or investigational for a particular medical condition; and

             (2) Is not explicitly listed as an excluded benefit under the covered person’s health benefit plan;

      (c) The covered person’s treating physician has certified that one of the following situations is applicable:

             (1) Standard health care services or treatments have not been effective in improving the condition of the covered person;

             (2) Standard health care services or treatments are not medically appropriate for the covered person; or

             (3) There is no available standard health care service or treatment covered by the health carrier that is more beneficial than the recommended or requested health care service or treatment described in paragraph (d);

      (d) The covered person’s treating physician:

             (1) Has recommended a health care service or treatment that the physician certifies, in writing, is likely to be more beneficial to the covered person, in the physician’s opinion, than any available standard health care services or treatments; or

             (2) Who is a licensed, board certified or board eligible physician qualified to practice in the area of medicine appropriate to treat the covered person’s condition, has certified in writing that scientifically valid studies using accepted protocols demonstrate that the health care service or treatment requested by the covered person that is the subject of the adverse determination is likely to be more beneficial to the covered person than any available standard health care services or treatments;

      (e) The covered person has exhausted the health carrier’s internal grievance process as set forth in NRS 695G.200 to 695G.230, inclusive, unless the covered person is not required to exhaust the health carrier’s internal grievance process; and

      (f) The covered person has provided all the information and forms required by the Office for Consumer Health Assistance to process an external review, including the release form provided pursuant to subsection 6 of section 103 of this act.

      13.  Within 1 business day after completion of the preliminary review, the health carrier shall notify the Office for Consumer Health Assistance and the covered person, and, if applicable, the covered person’s authorized representative, in writing, whether the request is:

      (a) Complete;

      (b) Eligible for external review;

      (c) Not complete, in which case the health carrier shall include in the notice the information or materials that are needed to make the request complete; or

      (d) Not eligible for external review, in which case the health carrier shall include in the notice the reasons for its ineligibility.

      14.  The Commissioner may specify the form for the notice of initial determination pursuant to subsection 13 and any supporting information to be included in the notice.

 


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κ2011 Statutes of Nevada, Page 3404 (CHAPTER 506, AB 74)κ

 

      15.  The notice of initial determination must include a statement informing the covered person and, if applicable, the covered person’s authorized representative that a health carrier’s initial determination that a request which is ineligible for external review may be appealed to the Office for Consumer Health Assistance.

      16.  The Office for Consumer Health Assistance may determine that a request is eligible for external review pursuant to subsection 12 and require that it be referred for external review notwithstanding a health carrier’s initial determination that the request is ineligible.

      17.  In making a determination pursuant to subsection 16, the decision of the Office for Consumer Health Assistance must be made in accordance with the terms of the covered person’s health benefit plan and is subject to all applicable provisions of the external review process.

      18.  When a health carrier determines that a request is eligible for external review pursuant to subsection 12, the health carrier shall notify the Office for Consumer Health Assistance and the covered person and, if applicable, the covered person’s authorized representative.

      19.  Within 1 business day after receipt of the notice from the health carrier that the external review request is eligible for external review pursuant to subsection 18, the Office for Consumer Health Assistance shall:

      (a) Assign an independent review organization from the list of approved independent review organizations compiled and maintained by the Commissioner pursuant to section 8 of this act to conduct the external review;

      (b) Notify the health carrier of the name of the assigned independent review organization; and

      (c) Notify in writing the covered person and, if applicable, the covered person’s authorized representative that the request is eligible for external review and provide the name of the assigned independent review organization.

      20.  The Office for Consumer Health Assistance shall include in the notice provided to the covered person and, if applicable, the covered person’s authorized representative pursuant to subsection 19 a statement that the covered person or the covered person’s authorized representative may submit in writing to the assigned independent review organization within 5 business days after receipt of the notice provided pursuant to subsection 19 additional information that the independent review organization shall consider when conducting the external review. The independent review organization may accept and consider additional information submitted after the 5 business days have elapsed.

      21.  Within 1 business day after receipt of the notice of assignment to conduct the external review pursuant to subsection 19, the assigned independent review organization shall:

      (a) Select one or more clinical reviewers to conduct the external review, as it determines is appropriate; and

      (b) Based on the opinion of the clinical reviewer, or opinions if more than one clinical reviewer has been selected to conduct the external review, make a decision to uphold or reverse the adverse determination.

      22.  In selecting clinical reviewers pursuant to paragraph (a) of subsection 21, the assigned independent review organization shall select health care professionals who meet the minimum qualifications described in section 9 of this act and through clinical experience in the past 3 years, are experts in the treatment of the covered person’s condition and knowledgeable about the recommended or requested health care service or treatment.

 


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κ2011 Statutes of Nevada, Page 3405 (CHAPTER 506, AB 74)κ

 

in section 9 of this act and through clinical experience in the past 3 years, are experts in the treatment of the covered person’s condition and knowledgeable about the recommended or requested health care service or treatment.

      23.  The covered person, the covered person’s authorized representative, if applicable, and the health carrier may not choose or control the choice of the health care professionals to be selected to conduct the external review.

      24.  In accordance with subsections 37 to 41, inclusive, each clinical reviewer shall provide a written opinion to the assigned independent review organization regarding whether the recommended or requested health care service or treatment should be covered.

      25.  In reaching an opinion, clinical reviewers are not bound by any decisions or conclusions reached during the health carrier’s utilization review process as set forth in NRS 683A.375 to 683A.379, inclusive, or the health carrier’s internal grievance process as set forth in NRS 695G.200 to 695G.230, inclusive.

      26.  Within 5 business days after receipt of the notice pursuant to subsection 19, the health carrier or utilization review organization shall provide to the assigned independent review organization any documents and information considered in making the adverse determination.

      27.  Except as otherwise provided in subsection 28, failure by the health carrier or utilization review organization to provide the documents and information within the time specified in subsection 26 must not delay the conduct of the external review.

      28.  If the health carrier or utilization review organization fails to provide the documents and information within the time specified in subsection 26, the assigned independent review organization may terminate the external review and make a decision to reverse the adverse determination.

      29.  If the independent review organization elects to terminate the external review and reverse the adverse determination pursuant to subsection 28, the independent review organization shall immediately notify the covered person, the covered person’s authorized representative, if applicable, the health carrier and the Office for Consumer Health Assistance.

      30.  Each clinical reviewer selected pursuant to subsection 21 shall review all the information and documents received pursuant to subsections 20 and 26.

      31.  The assigned independent review organization shall forward any information submitted by the covered person or the covered person’s authorized representative pursuant to subsection 20 to the health carrier within 1 business day after receipt of the information.

      32.  Upon receipt of the information required to be forwarded pursuant to subsection 31, the health carrier may reconsider the adverse determination that is the subject of the external review.

      33.  Reconsideration by the health carrier of its adverse determination pursuant to subsection 32 must not delay or terminate the external review.

      34.  Except as otherwise provided in subsection 28, the external review may only be terminated before completion if the health carrier decides, upon completion of its reconsideration, to reverse its adverse determination and provide coverage or payment for the recommended or requested health care service or treatment that is the subject of the adverse determination.

 


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and provide coverage or payment for the recommended or requested health care service or treatment that is the subject of the adverse determination.

      35.  If the health carrier reverses its adverse determination pursuant to subsection 28, the health carrier shall immediately notify the covered person, the covered person’s authorized representative, if applicable, the assigned independent review organization and the Office for Consumer Health Assistance in writing of its decision.

      36.  The assigned independent review organization shall terminate the external review upon receipt of the notice from the health carrier pursuant to subsection 35.

      37.  Except as otherwise provided in subsection 39, within 20 days after being selected in accordance with subsection 21 to conduct the external review, each clinical reviewer shall provide an opinion to the assigned independent review organization pursuant to subsection 41 regarding whether the recommended or requested health care service or treatment should be covered.

      38.  Except for an opinion provided pursuant to subsection 39, each clinical reviewer’s opinion must be in writing and include the following:

      (a) A description of the covered person’s medical condition;

      (b) A description of the indicators relevant to determine if there is sufficient evidence to demonstrate that the recommended or requested health care service or treatment is more likely to be beneficial to the covered person than any available standard health care services or treatments and the adverse risks of the recommended or requested health care service or treatment would not be substantially increased over those of available standard health care services or treatments;

      (c) A description and analysis of any medical or scientific evidence considered in reaching the opinion;

      (d) A description and analysis of any evidence-based standards used as a basis for the opinion; and

      (e) Information concerning whether the reviewer’s rationale for the opinion is based on the provisions of subsection 41.

      39.  For an expedited external review, each clinical reviewer shall provide an opinion orally or in writing to the assigned independent review organization as expeditiously as the covered person’s medical condition or circumstances requires, but in no event not more than 5 calendar days after being selected in accordance with subsection 21.

      40.  If the opinion provided pursuant to subsection 39 was not in writing, within 48 hours after providing that notice, the clinical reviewer shall provide written confirmation of the opinion to the assigned independent review organization and include the information required pursuant to subsection 38.

      41.  In addition to the documents and information provided pursuant to subsections 10 and 26, each clinical reviewer, to the extent the information or documents are available and the reviewer considers them appropriate, shall consider the following in reaching an opinion:

      (a) The covered person’s medical records;

      (b) The attending health care professional’s recommendation;

      (c) Consulting reports from appropriate health care professionals and other documents submitted by the health carrier, covered person, the covered person’s authorized representative or the covered person’s treating provider;

 


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      (d) The terms of coverage under the covered person’s health benefit plan with the health carrier to ensure that, but for the health carrier’s determination that the recommended or requested health care service or treatment that is the subject of the opinion is experimental or investigational, the reviewer’s opinion is not contrary to the terms of coverage under the health benefit plan; and

      (e) Whether:

             (1) The recommended or requested health care service or treatment has been approved by the Food and Drug Administration, if applicable, for the condition; or

             (2) Medical or scientific evidence or evidence-based standards demonstrate that the expected benefits of the recommended or requested health care service or treatment is more likely to be beneficial to the covered person than any available standard health care services or treatments and the adverse risks of the recommended or requested health care service or treatment would not be substantially increased over those of available standard health care services or treatments.

      42.  Except as otherwise provided in subsection 43, within 20 days after receipt of the opinion of each clinical reviewer pursuant to subsection 41, the assigned independent review organization, in accordance with subsection 45 or 46, shall make a decision and provide written notice of the decision to the covered person, the covered person’s authorized representative, if applicable, the health carrier and the Office for Consumer Health Assistance and include the information required pursuant to subsection 50.

      43.  For an expedited external review, within 48 hours after receipt of the opinion of each clinical reviewer pursuant to subsection 41, the assigned independent review organization, in accordance with subsection 45 or 46, shall make a decision and provide notice of the decision orally or in writing to the covered person, the covered person’s authorized representative, if applicable, the health carrier and the Office for Consumer Health Assistance.

      44.  If the notice provided pursuant to subsection 43 was not in writing, within 48 hours after providing that notice, the assigned independent review organization shall provide written confirmation of the decision to the covered person, the covered person’s authorized representative, if applicable, the health carrier and the Office for Consumer Health Assistance and include the information required pursuant to subsection 50.

      45.  If a majority of the clinical reviewers recommend that the recommended or requested health care service or treatment should be covered, the independent review organization shall make a decision to reverse the health carrier’s adverse determination.

      46.  If a majority of the clinical reviewers recommend that the recommended or requested health care service or treatment should not be covered, the independent review organization shall make a decision to uphold the health carrier’s adverse determination.

      47.  If the clinical reviewers are evenly split as to whether the recommended or requested health care service or treatment should be covered, the independent review organization shall obtain the opinion of an additional clinical reviewer in order for the independent review organization to make a decision based on the opinions of a majority of the clinical reviewers pursuant to subsection 45 or 46.

 


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organization to make a decision based on the opinions of a majority of the clinical reviewers pursuant to subsection 45 or 46.

      48.  The additional clinical reviewer selected pursuant to subsection 47 shall use the same information to reach an opinion as the clinical reviewers who have already submitted their opinions pursuant to subsection 41.

      49.  The selection of an additional clinical reviewer pursuant to subsection 47 must not extend the time within which the assigned independent review organization is required to make a decision based on the opinions of the clinical reviewers pursuant to subsection 42.

      50.  The independent review organization shall include in the notice provided pursuant to subsection 42 or 44:

      (a) A general description of the reason for the request for external review;

      (b) The written opinion of each clinical reviewer, including the recommendation of each clinical reviewer as to whether the recommended or requested health care service or treatment should be covered and the rationale for the reviewer’s recommendation;

      (c) The date the independent review organization was assigned by the Office for Consumer Health Assistance to conduct the external review;

      (d) The date on which the external review was conducted;

      (e) The date of the decision;

      (f) The principal reason or reasons for the decision; and

      (g) The rationale for the decision.

      51.  Upon receipt of a notice of a decision pursuant to subsection 42 or 44 reversing the adverse determination, the health carrier shall immediately approve coverage of the recommended or requested health care service or treatment that was the subject of the adverse determination.

      52.  The assignment by the Office for Consumer Health Assistance of an approved independent review organization to conduct an external review in accordance with this section must be done on a random basis among those approved independent review organizations qualified to conduct the particular external review based on the nature of the health care service or treatment that is the subject of the adverse determination and other circumstances, including concerns regarding conflicts of interest pursuant to subsection 4 of section 9 of this act.

      53.  As used in this section:

      (a)“Best evidence” means evidence based on:

             (1)Randomized clinical trials;

             (2)If randomized clinical trials are not available, cohort studies or case-control studies;

             (3)If the methods described in subparagraphs (1) and (2) are not available, case series; or

             (4)If the methods described in subparagraphs (1), (2) and (3) are not available, expert opinion.

      (b) “Evidence-based standard” means the conscientious, explicit and judicious use of the current best evidence based on the overall systematic review of research in making decisions about the care of an individual patient.

      (c)“Randomized clinical trial” means a controlled, prospective study of patients who have been randomized into an experimental group and a control group at the beginning of the study with only the experimental group of patients receiving a specific intervention, which includes study of the groups for variables and anticipated outcomes over time.

 


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group of patients receiving a specific intervention, which includes study of the groups for variables and anticipated outcomes over time.

      Secs. 108 and 109. (Deleted by amendment.)

      Sec. 110.  1.  An independent review organization assigned pursuant to NRS 695G.251 or 695G.271 or section 107 of this act to conduct an external review shall maintain written records, aggregated for each state and for each health carrier, on all requests for which it conducted an external review during a calendar year and, upon request, submit a report to the Office for Consumer Health Assistance in a format specified by the Commissioner.

      2.  The report must include, aggregated for each state and for each health carrier:

      (a) The total number of requests for external review;

      (b) The number of requests for external review resolved and, of those resolved, the number upholding the adverse determination and the number reversing the adverse determination;

      (c) The average length of time for resolution;

      (d) A summary of the types of coverages or cases for which an external review was sought;

      (e) The number of external reviews that were terminated as the result of a reconsideration by the health carrier of its adverse determination after receipt of additional information from the covered person or the covered person’s authorized representative pursuant to subsection 4 of NRS 695G.251 and subsection 32 of section 107 of this act; and

      (f) Any other information the Office for Consumer Health Assistance may request or require.

      3.  An independent review organization shall retain the written records required pursuant to this section for at least 3 years.

      4.  Each health carrier shall maintain written records, aggregated for each state and for each type of health benefit plan offered by the health carrier, on all requests for external review for which the health carrier receives notice from the Office for Consumer Health Assistance and, upon request, submit a report to the Office for Consumer Health Assistance in a format specified by the Commissioner.

      5.  The report must include, aggregated for each state and for each type of health benefit plan:

      (a) The total number of requests for external review;

      (b) Of the total number of requests for external review, the number of requests determined to be eligible for external review; and

      (c) Any other information the Office for Consumer Health Assistance may request or require.

      6.  A health carrier shall retain the written records required pursuant to this section for at least 3 years.

      Sec. 111. (Deleted by amendment.)

      Sec. 112.  1.  A health carrier shall include a description of the external review procedures in or attached to the policy, certificate, membership booklet, outline of coverage or other evidence of coverage it provides to covered persons.

      2.  The description required by subsection 1 must be in a format prescribed by the Commissioner.

 


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      3.  The description required by subsection 1 must include a statement that informs the covered person of the right of the covered person to file a request for an external review of an adverse determination with the Office for Consumer Health Assistance. The statement may explain that external review is available when the adverse determination involves an issue of medical necessity, appropriateness, health care setting, level of care or effectiveness. The statement must include the telephone number and address of the Office for Consumer Health Assistance.

      4.  In addition to the requirements of subsection 3, the statement must inform the covered person that, when filing a request for an external review, the covered person will be required to authorize the release of any medical records of the covered person that may be required to be reviewed for the purpose of reaching a decision on the external review.

      Sec. 113. NRS 695G.010 is hereby amended to read as follows:

      695G.010  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS [695G.020] 695G.012 to 695G.080, inclusive, and sections 71 to 101, inclusive, of this act have the meanings ascribed to them in those sections.

      Sec. 114. NRS 695G.012 is hereby amended to read as follows:

      695G.012  “Adverse determination” means a determination [of a managed care organization to deny all or part of a service or procedure that is proposed or being provided to an insured on the basis that it is not medically necessary or appropriate or is experimental or investigational. The term does not include a determination of a managed care organization that such an allocation is not a covered benefit.] by a health carrier or utilization review organization that an admission, availability of care, continued stay or other health care service that is a covered benefit has been reviewed and, based upon the information provided, does not meet the health carrier’s requirements for medical necessity, appropriateness, health care setting, level of care or effectiveness, and the requested service or payment for the service is therefore denied, reduced or terminated.

      Sec. 115. NRS 695G.014 is hereby amended to read as follows:

      695G.014  “Authorized representative” means [a] :

      1.  A person [who has obtained the consent of an insured] to whom a covered person has given express written consent to represent [him or her] the covered person in an external review of [a final] an adverse determination conducted pursuant to NRS 695G.241 to 695G.310, inclusive [.] , and sections 102 to 112, inclusive, of this act;

      2.  A person authorized by law to provide substituted consent for a covered person; or

      3.  A family member of a covered person or the covered person’s treating provider only when the covered person is unable to provide consent.

      Sec. 116. NRS 695G.018 is hereby amended to read as follows:

      695G.018  [“External] “Independent review organization” means an [organization] entity that:

      1.  Conducts an independent external review of [a final] an adverse determination; and

      2.  Is certified by the Commissioner in accordance with [NRS 683A.371.] sections 8 and 9 of this act.

 


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      Sec. 116.3. NRS 695G.070 is hereby amended to read as follows:

      695G.070  “Provider of health care” means [any] :

      1.  A physician [, hospital] or other [person] health care practitioner who is licensed or otherwise authorized in this State to furnish any health care service [.] ; and

      2.  An institution providing health care services or other setting in which health care services are provided, including, without limitation, a hospital, surgical center for ambulatory patients, facility for skilled nursing, residential facility for groups, laboratory and any other such licensed facility.

      Sec. 116.7. NRS 695G.080 is hereby amended to read as follows:

      695G.080  1.  “Utilization review” means the various methods that may be used [by a managed care organization] to review the amount and appropriateness of the provision of a specific health care service . [to an insured.]

      2.  The term does not include an external review of [a final] an adverse determination conducted pursuant to NRS 695G.241 to 695G.310, inclusive [.] , and sections 102 to 112, inclusive, of this act.

      Sec. 117. (Deleted by amendment.)

      Sec. 118. NRS 695G.230 is hereby amended to read as follows:

      695G.230  1.  After approval by the Commissioner, each [managed care organization] health carrier shall provide a written notice to an insured, in clear and comprehensible language that is understandable to an ordinary layperson, explaining the right of the insured to file a written complaint and to obtain an expedited review pursuant to NRS 695G.210. Such a notice must be provided to an insured:

      (a) At the time the insured receives his or her certificate of coverage or evidence of coverage;

      (b) Any time that the [managed care organization] health carrier denies coverage of a health care service or limits coverage of a health care service to an insured; and

      (c) Any other time deemed necessary by the Commissioner.

      2.  If a [managed care organization] health carrier denies coverage of a health care service to an insured, including, without limitation, a health maintenance organization that denies a claim related to a health care plan pursuant to NRS 695C.185, it shall notify the insured in writing within 10 working days after it denies coverage of the health care service of:

      (a) The reason for denying coverage of the service;

      (b) The criteria by which the [managed care organization] health carrier or insurer determines whether to authorize or deny coverage of the health care service;

      (c) The right of the insured to:

             (1) File a written complaint and the procedure for filing such a complaint;

             (2) Appeal [a final] an adverse determination pursuant to NRS 695G.241 to 695G.310, inclusive, and sections 102 to 112, inclusive [;] , of this act;

             (3) Receive an expedited external review of [a final] an adverse determination if the [managed care organization] health carrier receives proof from the insured’s provider of health care that failure to proceed in an expedited manner may jeopardize the life or health of the insured, including notification of the procedure for requesting the expedited external review; and

 


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κ2011 Statutes of Nevada, Page 3412 (CHAPTER 506, AB 74)κ

 

expedited manner may jeopardize the life or health of the insured, including notification of the procedure for requesting the expedited external review; and

             (4) Receive assistance from any person, including an attorney, for an external review of [a final] an adverse determination; and

      (d) The telephone number of the Office for Consumer Health Assistance.

      3.  A written notice which is approved by the Commissioner shall be deemed to be in clear and comprehensible language that is understandable to an ordinary layperson.

      Sec. 118.1. NRS 695G.241 is hereby amended to read as follows:

      695G.241  [1.  For] Except as otherwise required for an expedited external review pursuant to NRS 695G.271 or section 107 of this act, for the purposes of NRS 695G.200 to 695G.310, inclusive, and sections 102 to 112, inclusive, of this act, an adverse determination [is final if the insured has exhausted all procedures set forth in the health care plan for reviewing the adverse determination within the managed care organization.

      2.  An adverse determination shall be deemed final for the purpose of submitting the adverse determination to an external review organization for] may be subject to an external review:

      [(a)]1.  If [an insured] a covered person exhausts all procedures set forth in the health care plan for reviewing the adverse determination within the [managed care organization] health carrier and the [managed care organization] health carrier fails to render a decision within the period required to render that decision set forth in the health care plan; or

      [(b)] 2.  If the [managed care organization submits] health carrier allows the covered person to submit the adverse determination to the [external] independent review organization without requiring the [insured] covered person to exhaust all procedures set forth in the health care plan for reviewing the adverse determination within the [managed care organization.] health carrier.

      Sec. 118.2. NRS 695G.251 is hereby amended to read as follows:

      695G.251  1.  If [an insured] a covered person or a physician of [an insured] a covered person receives notice of [a final] an adverse determination from a [managed care organization] health carrier concerning the [insured, and if the insured is required to pay $500 or more for the health care services that are the subject of the final adverse determination, the insured,] covered person, the covered person, the physician of the [insured] covered person or an authorized representative may, within [60 days] 4 months after receiving notice of the [final] adverse determination, submit a request to the [managed care organization] Office for Consumer Health Assistance for an external review of the [final] adverse determination.

      2.  Within 5 days after receiving a request pursuant to subsection 1, the [managed care organization] Office for Consumer Health Assistance shall notify the [insured,] covered person, the authorized representative or physician of the [insured,] covered person, the agent who performed utilization review for the [managed care organization,] health carrier, if any, and the [Office for Consumer Health Assistance] health carrier that the request has been filed with the [managed care organization.] Office for Consumer Health Assistance.

      3.  As soon as practicable after receiving a [notice] request pursuant to subsection [2,] 1, the Office for Consumer Health Assistance shall assign an [external] independent review organization from the list maintained pursuant to [NRS 683A.371.]

 


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κ2011 Statutes of Nevada, Page 3413 (CHAPTER 506, AB 74)κ

 

to [NRS 683A.371.] section 8 of this act. Each assignment made pursuant to this subsection must be completed on a rotating basis.

      4.  Within 5 days after receiving notification from the Office for Consumer Health Assistance specifying the [external] independent review organization assigned pursuant to subsection 3, the [managed care organization] health carrier shall provide to the [external] independent review organization all documents and materials relating to the [final] adverse determination, including, without limitation:

      (a) Any medical records of the insured relating to the external review;

      (b) A copy of the provisions of the health [care] benefit plan upon which the [final] adverse determination was based;

      (c) Any documents used by the [managed care organization] health carrier to make the [final] adverse determination;

      (d) The reasons for the [final] adverse determination; and

      (e) Insofar as practicable, a list that specifies each provider of health care who has provided health care to the [insured] covered person and the medical records of the provider of health care relating to the external review.

      Sec. 118.3. NRS 695G.261 is hereby amended to read as follows:

      695G.261  1.  Except as otherwise provided in NRS 695G.271 [,] and section 107 of this act, upon receipt of a request for an external review pursuant to NRS 695G.251, the [external] independent review organization shall, within 5 days after receiving the request:

      (a) Review the request and the documents and materials submitted pursuant to NRS 695G.251; and

      (b) Notify the [insured,] covered person, the physician of the [insured] covered person and the [managed care organization] health carrier if any additional information is required to conduct a review of the [final] adverse determination. Such additional information must be provided within 5 days after receiving notice that the information is required to conduct a review of the adverse determination. The independent review organization shall forward to the health carrier, within 1 business day after receipt, any information received from a covered person or the physician of a covered person.

      2.  Except as otherwise provided in NRS 695G.271 [,] and section 107 of this act, the [external] independent review organization shall approve, modify or reverse the [final] adverse determination within 15 days after it receives the information required to make that determination pursuant to this section. The [external] independent review organization shall submit a copy of its determination, including the reasons therefor, to:

      (a) The [insured;] covered person;

      (b) The physician of the [insured;] covered person;

      (c) The authorized representative of the [insured,] covered person, if any; and

      (d) The health carrier.

      Sec. 118.4. NRS 695G.271 is hereby amended to read as follows:

      695G.271  1.  [A managed care organization] The Office for Consumer Health Assistance shall approve or deny a request for an external review of [a final] an adverse determination in an expedited manner not later than 72 hours after it receives proof from the [insured’s] provider of health care of the covered person that [failure] :

 


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κ2011 Statutes of Nevada, Page 3414 (CHAPTER 506, AB 74)κ

 

      (a)The adverse determination concerns an admission, availability of care, continued stay or health care service for which the covered person received emergency services but has not been discharged from the facility providing the services or care; or

      (b)Failure to proceed in an expedited manner may jeopardize the life or health of the [insured.] covered person or the ability of the covered person to regain maximum function.

      2.  If [a managed care organization] the Office for Consumer Health Assistance approves a request for an external review pursuant to subsection 1, the [managed care organization] Office for Consumer Health Assistance shall [:

      (a) In accordance with subsections 4 and 5,] assign the request to an [external] independent review organization not later than 1 working day after approving the request . [; and

      (b) At the time of] Each assignment made by the Office for Consumer Health Assistance pursuant to this section must be completed on a rotating basis.

      3.  Within 24 hours after receiving notice of the Officer for Consumer Health Assistance assigning the request, the health carrier shall provide to the [external] independent review organization all documents and materials specified in subsection 4 of NRS 695G.251.

      [3.]4. An [external] independent review organization that is assigned to conduct an external review pursuant to subsection 2 shall, if it accepts the assignment:

      (a) Complete its external review not later than [2 working days] 48 hours after receiving the assignment, unless the [insured] covered person and the [managed care organization] health carrier agree to a longer period;

      (b) Not later than [1 working day] 24 hours after completing its external review, notify the [insured,] covered person, the physician of the [insured,] covered person, the authorized representative , [of the insured,] if any, and the [managed care organization] health carrier by telephone of its determination; and

      (c) Not later than [5 working days] 48 hours after completing its external review, submit a written decision of its external review to the [insured,] covered person, the physician of the [insured,] covered person, the authorized representative , [of the insured,] if any, and the [managed care organization.

      4.  At least once each month, the Office for Consumer Health Assistance shall designate at least 2 external review organizations to conduct external reviews in an expedited manner pursuant to this section. As soon as practicable after designating an external review organization pursuant to this section, the Office for Consumer Health Assistance shall notify each managed care organization of the designation.

      5.  As soon as practicable after assigning an external review organization to conduct an external review pursuant to this section, the managed care organization shall notify the Office for Consumer Health Assistance of the assignment. Each assignment made by a managed care organization pursuant to this section must be completed on a rotating basis.] health carrier.

      Sec. 118.5. NRS 695G.280 is hereby amended to read as follows:

      695G.280  The decision of an [external] independent review organization concerning a request for an external review must be based on:

 


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κ2011 Statutes of Nevada, Page 3415 (CHAPTER 506, AB 74)κ

 

      1.  Documentary evidence, including any recommendation of the physician of the insured submitted pursuant to NRS 695G.251;

      2.  Medical or scientific evidence, including, without limitation:

      (a) Professional standards of safety and effectiveness for diagnosis, care and treatment that are generally recognized in the United States;

      (b) Any report published in literature that is peer-reviewed;

      (c) Evidence-based medicine, including, without limitation, reports and guidelines that are published by professional organizations that are recognized nationally and that include supporting scientific data; and

      (d) An opinion of an independent physician who, as determined by the [external] independent review organization, is an expert in the health specialty that is the subject of the external review; and

      3.  The terms and conditions for benefits set forth in the evidence of coverage issued to the insured by the health carrier.

      Sec. 118.6. NRS 695G.290 is hereby amended to read as follows:

      695G.290  1.  If the determination of an [external] independent review organization concerning an external review of [a final] an adverse determination is in favor of the [insured,] covered person, the determination is final, conclusive and binding upon the [managed care organization.] health carrier.

      2.  An [external] independent review organization or any clinical peer who conducts or participates in an external review of [a final] an adverse determination for the [external] independent review organization is not liable in a civil action for damages relating to a determination made by the [external] independent review organization if the determination is made in good faith and without gross negligence.

      3.  The cost of conducting an external review of [a final] an adverse determination pursuant to NRS 695G.241 to 695G.310, inclusive, and sections 102 to 112, inclusive, of this act must be paid by the [managed care organization] health carrier that made the [final] adverse determination.

      Sec. 118.7. NRS 695G.300 is hereby amended to read as follows:

      695G.300  In lieu of resolving a complaint of [an insured] a covered person in accordance with a system for resolving complaints established pursuant to the provisions of NRS 695G.200, a [managed care organization] health carrier may:

      1.  Submit the complaint to an [external] independent review organization pursuant to the provisions of NRS 695G.241 to 695G.310, inclusive [;] , and sections 102 to 112, inclusive, of this act; or

      2.  If a federal law or regulation provides a procedure for submitting the complaint for resolution that the Commissioner determines is substantially similar to the procedure for submitting the complaint to an [external] independent review organization pursuant to NRS 695G.241 to 695G.310, inclusive, and sections 102 to 112, inclusive, of this act, submit the complaint for resolution in accordance with the federal law or regulation.

      Sec. 118.8. NRS 695G.310 is hereby amended to read as follows:

      695G.310  On or before December 31 of each year, each [managed care organization] health carrier shall file a written report with the Office for Consumer Health Assistance setting forth the total number of:

      1.  Requests for an external review [that were received by the managed care organization] of an adverse decision made by the health carrier which were granted by the Office for Consumer Health Assistance during the immediately preceding year; and

 


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κ2011 Statutes of Nevada, Page 3416 (CHAPTER 506, AB 74)κ

 

      2.  [Final adverse] Adverse determinations of the [managed care organization] health carrier that were:

      (a) Upheld during the immediately preceding year.

      (b) Reversed during the immediately preceding year.

      Sec. 119. NRS 695H.090 is hereby amended to read as follows:

      695H.090  1.  An application for registration to engage in business as a medical discount plan must be submitted on a form prescribed by the Commissioner. The form must be signed by an officer or an authorized representative of the applicant. Except as otherwise provided in this section, the application must be accompanied by:

      (a) A registration fee of $500 and, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110.

      (b) A copy of the organizational documents of the applicant, if any.

      (c) A list of names, addresses, positions of employment and biographical information of each person who is responsible for conducting the business activities of the medical discount plan of the applicant, including, but not limited to, all members of the board of directors, board of trustees, officers and managers. The list must set forth the extent and nature of any contracts or other agreements between any person who is responsible for conducting the business activities of the applicant and the medical discount plan, including disclosure of any possible conflicts of interest.

      (d) A complete biographical statement, on a form prescribed by the Commissioner, describing the facilities, employees and services that will be offered by the applicant.

      (e) A copy of all forms used for contracts between the applicant and networks of providers of health care regarding the provision of health care or medical services to members.

      (f) A copy of the most recent financial statements of the applicant, audited by an independent certified public accountant.

      (g) A description of the method of marketing proposed by the applicant.

      (h) A description of the procedures for making a complaint to be established and maintained by the applicant.

      (i) Any other information required by the Commissioner.

      2.  Each person who registers a medical discount plan must renew the registration [annually] on or before [the registration expires.] March 1 of each year. Except as otherwise provided in this section, an application to renew the registration must include:

      (a) An annual renewal fee of $500 and, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110; and

      (b) Any information set forth in subsection 1 that the Commissioner requires to be included in the application.

      3.  An administrator or insurer that registers a medical discount plan is not required to pay the fees for registering or renewing the registration of the medical discount plan pursuant to this section.

      4.  The Commissioner shall, by regulation, designate the provisions of subsection 1 that shall be deemed satisfied by an administrator, insurer or affiliate of an insurer that has complied with substantially similar requirements pursuant to other provisions of this title.

      Sec. 120. NRS 695H.180 is hereby amended to read as follows:

      695H.180  A person who violates any provision of this chapter or an order or regulation of the Commissioner issued or adopted pursuant thereto may be assessed an administrative penalty by the Commissioner of not more than $2,000 for each act or violation .

 


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than $2,000 for each act or violation . [, not to exceed an aggregate amount of $10,000 for violations of a similar nature. For the purposes of this section, violations shall be deemed to be of a similar nature if the violations consist of the same or similar conduct, regardless of the number of times the conduct occurred.]

      Sec. 121. NRS 697.173 is hereby amended to read as follows:

      697.173  1.  Except as otherwise provided in subsection [2,] 4, a person is entitled to receive, renew or hold a license as a bail enforcement agent if the person:

      (a) Is a natural person not less than 21 years of age.

      (b) Is a citizen of the United States or is lawfully entitled to remain and work in the United States.

      (c) Has a high school diploma or a general equivalency diploma or has an equivalent education as determined by the Commissioner.

      (d) Has [submitted to the Commissioner a report of an investigation of the criminal history of the person from the Central Repository for Nevada Records of Criminal History which indicates that the person possesses the qualifications for licensure as a bail enforcement agent.] complied with the requirements of subsection 4 of NRS 697.180.

      (e) Has submitted to the Commissioner the results of an examination conducted by a psychiatrist or psychologist licensed to practice in this state which indicate that the person does not suffer from a psychological condition that would adversely affect the ability of the person to carry out his or her duties as a bail enforcement agent.

      (f) Has passed any written examination required by this chapter.

      (g) Submits to the Commissioner the results of a test to detect the presence of a controlled substance in the system of the person that was administered no earlier than 30 days before the date of the application for the license which do not indicate the presence of any controlled substance for which the person does not possess a current and lawful prescription issued in the name of the person.

      (h) Successfully completes the training required by NRS 697.177.

      2.  A person is not entitled to receive, renew or hold a license of a bail enforcement agent if the person:

      (a) Has been convicted of a felony in this state or of any offense committed in another state which would be a felony if committed in this state; or

      (b) Has been convicted of an offense involving moral turpitude or the unlawful use, sale or possession of a controlled substance.

      Sec. 122. NRS 697.180 is hereby amended to read as follows:

      697.180  1.  A written application for a license as a bail agent, general agent, bail enforcement agent or bail solicitor must be filed with the Commissioner by the applicant, accompanied by the applicable fees. The application form must:

      (a) Include the social security number of the applicant; and

      (b) [Be accompanied by a complete set of the applicant’s fingerprints which the Commissioner may forward to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report; and

      (c)] Require full answers to questions reasonably necessary to determine the applicant’s:

 


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             (1) Identity and residence.

             (2) Business record or occupations for not less than the 2 years immediately preceding the date of the application, with the name and address of each employer, if any.

             (3) Prior criminal history, if any.

      2.  The Commissioner may require the submission of such other information as may be required to determine the applicant’s qualifications for the license for which the applicant applied.

      3.  The applicant must verify his or her application. An applicant for a license under this chapter shall not knowingly misrepresent or withhold any fact or information called for in the application form or in connection therewith.

      4.  Each applicant must, as part of his or her application and at the applicant’s own expense:

      (a) Arrange to have a complete set of his or her fingerprints taken by a law enforcement agency or other authorized entity acceptable to the Commissioner; and

      (b) Submit to the Commissioner:

             (1) A completed fingerprint card and written permission authorizing the Commissioner to submit the applicant’s fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Commissioner deems necessary; or

             (2) Written verification, on a form prescribed by the Commissioner, stating that the fingerprints of the applicant were taken and directly forwarded electronically or by another means to the Central Repository and that the applicant has given written permission to the law enforcement agency or other authorized entity taking the fingerprints to submit the fingerprints to the Central Repository for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Commissioner deems necessary.

      5.  The Commissioner may:

      (a) Unless the applicant’s fingerprints are directly forwarded pursuant to subparagraph (2) of paragraph (b) of subsection 4, submit those fingerprints to the Central Repository for submission to the Federal Bureau of Investigation and to such other law enforcement agencies as the Commissioner deems necessary;

      (b) Request from each such agency any information regarding the applicant’s background as the Commissioner deems necessary; and

      (c) Adopt regulations concerning the procedures for obtaining this information.

      Sec. 123. NRS 223.580 is hereby amended to read as follows:

      223.580  On or before February 1 of each year, the Director shall submit a written report to the Governor, and to the Director of the Legislative Counsel Bureau for transmittal to the appropriate committee or committees of the Legislature. The report must include, without limitation:

      1.  A statement setting forth the number and geographic origin of the written and telephonic inquiries received by the Office for Consumer Health Assistance and the issues to which those inquiries were related;

 


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      2.  A statement setting forth the type of assistance provided to each consumer and injured employee who sought assistance from the Director, including, without limitation, the number of referrals made to the Attorney General pursuant to subsection 7 of NRS 223.560;

      3.  A statement setting forth the disposition of each inquiry and complaint received by the Director; and

      4.  A statement setting forth the number of external reviews conducted by [external] independent review organizations pursuant to NRS 695G.241 to 695G.310, inclusive, and sections 102 to 112, inclusive, of this act, and the disposition of [each of] those reviews as reported pursuant to NRS 695G.310 [.] and section 110 of this act.

      Sec. 124. NRS 287.04335 is hereby amended to read as follows:

      287.04335  If the Board provides health insurance through a plan of self-insurance, it shall comply with the provisions of NRS 689B.255, 695G.150, 695G.160, 695G.164, 695G.1645, 695G.170, 695G.171, 695G.173, 695G.177, 695G.200 to 695G.230, inclusive, 695G.241 to 695G.310, inclusive, and sections 102 to 112, inclusive, of this act and 695G.405, in the same manner as an insurer that is licensed pursuant to title 57 of NRS is required to comply with those provisions.

      Sec. 125. NRS 422.273 is hereby amended to read as follows:

      422.273  1.  For any Medicaid managed care program established in the State of Nevada, the Department shall contract only with a health maintenance organization that has:

      (a) Negotiated in good faith with a federally-qualified health center to provide health care services for the health maintenance organization;

      (b) Negotiated in good faith with the University Medical Center of Southern Nevada to provide inpatient and ambulatory services to recipients of Medicaid; and

      (c) Negotiated in good faith with the University of Nevada School of Medicine to provide health care services to recipients of Medicaid.

Κ Nothing in this section shall be construed as exempting a federally-qualified health center, the University Medical Center of Southern Nevada or the University of Nevada School of Medicine from the requirements for contracting with the health maintenance organization.

      2.  During the development and implementation of any Medicaid managed care program, the Department shall cooperate with the University of Nevada School of Medicine by assisting in the provision of an adequate and diverse group of patients upon which the school may base its educational programs.

      3.  The University of Nevada School of Medicine may establish a nonprofit organization to assist in any research necessary for the development of a Medicaid managed care program, receive and accept gifts, grants and donations to support such a program and assist in establishing educational services about the program for recipients of Medicaid.

      4.  For the purpose of contracting with a Medicaid managed care program pursuant to this section, a health maintenance organization is exempt from the provisions of NRS 695C.123.

      5.  The provisions of this section apply to any managed care organization, including a health maintenance organization, that provides health care services to recipients of Medicaid under the State Plan for Medicaid or the Children’s Health Insurance Program pursuant to a contract with the Division. Such a managed care organization or health maintenance organization is not required to establish a system for conducting external reviews of [final] adverse determinations in accordance with chapter 695B, 695C or 695G of NRS.

 


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organization is not required to establish a system for conducting external reviews of [final] adverse determinations in accordance with chapter 695B, 695C or 695G of NRS. This subsection does not exempt such a managed care organization or health maintenance organization for services provided pursuant to any other contract.

      6.  As used in this section, unless the context otherwise requires:

      (a) “Federally-qualified health center” has the meaning ascribed to it in 42 U.S.C. § 1396d(l)(2)(B).

      (b) “Health maintenance organization” has the meaning ascribed to it in NRS 695C.030.

      (c) “Managed care organization” has the meaning ascribed to it in NRS 695G.050.

      Sec. 126. NRS 616A.235 is hereby amended to read as follows:

      616A.235  [“External] “Independent review organization” means an organization which has been issued a certificate pursuant to NRS 616A.469 that authorizes the organization to conduct external reviews for the purposes of chapters 616A to 617, inclusive, of NRS.

      Sec. 127. NRS 616A.469 is hereby amended to read as follows:

      616A.469  1.  The Commissioner may issue certificates authorizing qualified [external] independent review organizations to conduct external reviews for the purposes of chapters 616A to 617, inclusive, of NRS. If the Commissioner issues such certificates and the Commissioner determines that an [external] independent review organization is qualified to conduct external reviews for the purposes of chapters 616A to 617, inclusive, of NRS, the Commissioner shall issue a certificate to the [external] independent review organization that authorizes the organization to conduct such external reviews in accordance with the provisions of NRS 616C.363 and the regulations adopted by the Commissioner.

      2.  The Commissioner may adopt regulations setting forth the procedures that an [external] independent review organization must follow to be issued a certificate to conduct external reviews. Any regulations adopted pursuant to this section must include, without limitation, provisions setting forth:

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

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

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

      (d) Any applicable fees for issuing or renewing a certificate of an [external] independent review organization pursuant to this section.

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

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

      (a) Demonstrate to the satisfaction of the Commissioner that it is able to carry out, in a timely manner, the duties of an [external] independent review organization as set forth in NRS 616C.363 and the regulations adopted by the Commissioner.

 


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Commissioner. The demonstration must include, without limitation, proof that the [external] independent review organization employs, contracts with or otherwise retains only persons who are qualified because of their education, training, professional licensing and experience to perform the duties assigned to those persons; and

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

             (1) Conduct external reviews in accordance with the provisions of NRS 616C.363 and the regulations adopted by the Commissioner;

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

             (3) Avoid conflicts of interest.

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

      (a) The claimant;

      (b) The employer; or

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

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

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

      (b) An insurer;

      (c) A third-party administrator; or

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

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

      Sec. 128. NRS 616B.691 is hereby amended to read as follows:

      616B.691  1.  [For the purposes of chapters 612 and 616A to 617, inclusive, of NRS, an] An employee leasing company which complies with the provisions of NRS 616B.670 to 616B.697, inclusive, shall be deemed to be the employer of the employees it leases to a client company. The provisions of this subsection apply only for the purposes of chapters 612 and 616A to 617, inclusive, of NRS.

      2.  [If an employee leasing company complies with the provisions of subsection 3, the] An employee leasing company shall be deemed to be [the] an employer of its leased employees for the purposes of offering, sponsoring and maintaining any benefit plans . [, including, without limitation, for the purposes of the Employee Retirement Income Security Act of 1974, 29 U.S.C. §§ 1001 et seq.] The provisions of this subsection do not affect the employer-employee relationship that exists between a leased employee and a client company.

 


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      3.  An employee leasing company shall not offer , sponsor or maintain for its leased employees any self-funded [industrial] insurance program. An employee leasing company shall not act as a self-insured employer or be a member of an association of self-insured public or private employers pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS [.] or title 57 of NRS.

      4.  If an employee leasing company fails to:

      (a) Pay any contributions, premiums, forfeits or interest due; or

      (b) Submit any reports or other information required,

Κ pursuant to this chapter or chapter 612, 616A, 616C, 616D or 617 of NRS, the client company is jointly and severally liable for the contributions, premiums, forfeits or interest attributable to the wages of the employees leased to it by the employee leasing company.

      Sec. 129. NRS 616C.360 is hereby amended to read as follows:

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

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

      3.  If there is a medical question or dispute concerning an injured employee’s condition or concerning the necessity of treatment for which authorization for payment has been denied, the appeals officer may:

      (a) Order an independent medical examination and refer the employee to a physician or chiropractor of his or her choice who has demonstrated special competence to treat the particular medical condition of the employee, whether or not the physician or chiropractor is on the insurer’s panel of providers of health care. If the medical question concerns the rating of a permanent disability, the appeals officer may refer the employee to a rating physician or chiropractor. The rating physician or chiropractor must be selected in rotation from the list of qualified physicians or chiropractors maintained by the Administrator pursuant to subsection 2 of NRS 616C.490, unless the insurer and the injured employee otherwise agree to a rating physician or chiropractor. The insurer shall pay the costs of any examination requested by the appeals officer.

      (b) If the medical question or dispute is relevant to an issue involved in the matter before the appeals officer and all parties agree to the submission of the matter to an [external] independent review organization, submit the matter to an [external] independent review organization in accordance with NRS 616C.363 and any regulations adopted by the Commissioner.

      4.  The appeals officer may consider the opinion of an examining physician or chiropractor, in addition to the opinion of an authorized treating physician or chiropractor, in determining the compensation payable to the injured employee.

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

 


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

      7.  Any party to the appeal or contested case or the appeals officer may order a transcript of the record of the hearing at any time before the seventh day after the hearing. The transcript must be filed within 30 days after the date of the order unless the appeals officer otherwise orders.

      8.  Except as otherwise provided in subsection 9, the appeals officer shall render a decision:

      (a) If a transcript is ordered within 7 days after the hearing, within 30 days after the transcript is filed; or

      (b) If a transcript has not been ordered, within 30 days after the date of the hearing.

      9.  The appeals officer shall render a decision on a contested claim submitted pursuant to subsection 2 of NRS 616C.345 within 15 days after:

      (a) The date of the hearing; or

      (b) If the appeals officer orders an independent medical examination, the date the appeals officer receives the report of the examination,

Κ unless both parties to the contested claim agree to a later date.

      10.  The appeals officer may affirm, modify or reverse any decision made by a hearing officer and issue any necessary and proper order to give effect to his or her decision.

      Sec. 130. NRS 616C.363 is hereby amended to read as follows:

      616C.363  1.  Not later than 5 business days after the date that an [external] independent review organization receives a request for an external review, the [external] independent review organization shall:

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

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

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

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

      (a) The medical records of the insured;

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

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

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

      (a) The injured employee;

      (b) The employer;

      (c) The insurer; and

      (d) The appeals officer, if any.

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

 


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

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

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

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

      Sec. 131. NRS 683A.371, 684A.155, 686A.225, 689A.360, 689A.625 and 689C.105 are hereby repealed.

      Sec. 132.  1.  This section and sections 9.5 and 51.9 of this act become effective upon passage and approval.

      2.  Sections 1 to 9, inclusive, 10 to 51.7, inclusive, 52 to 56, inclusive, and 58 to 131, inclusive, of this act become effective:

      (a) Upon passage and approval for the purpose of adopting regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act; and

      (b) On October 1, 2011, for all other purposes.

      3.  Section 57 of this act becomes effective on January 1, 2013.

      4.  Sections 23, 24, 25, 45, 47, 59, 60 and 122 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 proceeding 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,

Κ are repealed by the Congress of the United States.

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