2023 Statutes of Nevada, Pages 2519-2656

[Rev. 3/13/2024 9:51:15 AM]

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ê2023 Statutes of Nevada, Page 2519ê

CHAPTER 419, SB 327

Senate Bill No. 327–Senator Ohrenschall

CHAPTER 419

[Approved: June 14, 2023]

AN ACT relating to elections; revising provisions relating to the establishment of a polling place, ballot drop box and temporary branch polling place for early voting within an Indian reservation or Indian colony for an election; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

Existing law authorizes an Indian tribe to submit a request for the establishment within the boundaries of an Indian reservation or Indian colony of: (1) a polling place, a ballot drop box, or both, for the day of a primary election, presidential preference primary election or general election; and (2) a temporary branch polling place for early voting. A county clerk or city clerk is not required to establish a polling place or ballot drop box if the county or city clerk establishes a temporary branch polling place for early voting. (NRS 293.2733, 293.3572, 293C.2675, 293C.3572) Sections 1 and 3 of this bill require a county clerk and city clerk, respectively, to establish a polling place and ballot drop box within the boundaries of an Indian reservation or Indian colony unless an Indian tribe: (1) elects not to have the polling place and ballot drop box established by submitting notice to the county clerk or city clerk; or (2) does not provide certain information relating to the establishment of the polling place and ballot drop box. Sections 2 and 4 of this bill require a county clerk and city clerk, respectively, to also establish a temporary branch polling place for early voting and ballot drop box within the boundaries of an Indian reservation or Indian colony unless an Indian tribe: (1) elects not to have the temporary branch polling place and ballot drop box established by submitting notice to the county clerk or city clerk; or (2) does not provide certain information relating to the establishment of the temporary branch polling place and ballot drop box.

Sections 1 and 2 also authorize a county clerk to establish additional polling places, ballot drop boxes and temporary branch polling places within the boundaries of an Indian reservation or Indian colony upon the request of an Indian tribe.

Sections 1-4 set forth the dates by which an Indian tribe must submit a request to elect not to have a polling place, ballot drop box and temporary branch polling place established.

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 293.2733 is hereby amended to read as follows:

293.2733 1. If an Indian reservation or Indian colony is located in whole or in part within a county, [the Indian tribe may submit a request to] the county clerk [for the establishment] :

(a) Shall, except as otherwise provided in subsections 2 and 5, establish within the boundaries of the Indian reservation or Indian colony at a location approved by the Indian tribe for the day of a primary election, presidential preference primary election or general election [of:

(a) A polling place;

(b) A ballot drop box; or

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ê2023 Statutes of Nevada, Page 2520 (CHAPTER 419, SB 327)ê

(b) May establish additional polling places or ballot drop boxes, or both, within the boundaries of the Indian reservation or Indian colony for the day of a primary election, presidential preference primary election or general election upon the request of an Indian tribe submitted not later than the dates set forth in subsection 2 to elect not to have a polling place and ballot drop box established within the boundaries of the Indian reservation or Indian colony.

2. [A request for the establishment of] An Indian tribe may elect not to have a polling place [, a] and ballot drop box [or both a polling place and a ballot drop box] established within the boundaries of an Indian reservation or Indian colony for the day of a primary election, presidential preference primary election or general election [:

(a) Must be submitted] by submitting notice to the county clerk [by the Indian tribe] on or before:

[(1)] (a) If the [request] notice is for a primary election, [March 1] January 15 of the year in which the primary election is to be held.

[(2)] (b) If the [request] notice is for a presidential preference primary election, [the first Friday in November] September 15 of the year immediately preceding the year of the presidential preference primary election.

[(3)] (c) If the [request] notice is for a general election, [August 1] June 15 of the year in which the general election is to be held.

[(b) May include one or more proposed locations within the boundaries of the Indian reservation or Indian colony for the polling place or ballot drop box.]

3. Any [proposed] location of a polling place or ballot drop box established pursuant to subsection 1 must satisfy the criteria the county clerk uses for the establishment of any other polling place [or] and ballot drop box, as applicable.

[3. Except as otherwise provided in this subsection, if the county clerk receives a request that satisfies the requirements set forth in subsection 2, the county clerk must establish at least one polling place or ballot box, as applicable, within the boundaries of the Indian reservation or Indian colony at a location or locations, as applicable, approved by the Indian tribe for the day of a primary election, presidential preference primary election or general election. The county clerk is not required to establish a polling place within the boundaries of an Indian reservation or Indian colony for the day of a primary election, presidential preference primary election or general election if the county clerk established a temporary branch polling place for early voting pursuant to NRS 293.3572 within the boundaries of the Indian reservation or Indian colony for the same election.]

4. [If the county clerk establishes one or more polling places or ballot drop boxes within the boundaries of an Indian reservation or Indian colony pursuant to subsection 3 for the day of a primary election, presidential preference primary election or general election, the] Except as otherwise provided in subsection 5, the county clerk must continue to establish one [or more] polling [places or] place and ballot drop [boxes] box within the boundaries of the Indian reservation or Indian colony at a location [or locations] approved by the Indian tribe for the day of any future primary election, presidential preference primary election or general election unless otherwise [requested] notified by the Indian tribe [.] pursuant to subsection 2.

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ê2023 Statutes of Nevada, Page 2521 (CHAPTER 419, SB 327)ê

5. Not later than the dates set forth in subsection 2 to elect not to have a polling place and ballot drop box established within the boundaries of the Indian reservation or Indian colony, an Indian tribe that elects to have a polling place and ballot drop box established must submit to the county clerk and the tribal liaison designated by the Office of the Secretary of State pursuant to NRS 233A.260:

(a) The location for the polling place and ballot drop box and whether the location will have only a polling place or ballot drop box or both a polling place and ballot drop box;

(b) Whether the Indian tribe will select registered voters to be appointed to act as election board officers to staff the polling place within the boundaries of the Indian reservation or Indian colony; and

Ê If an Indian tribe does not submit the information required pursuant to this subsection, the Indian tribe shall be deemed to have elected not to have a polling place and ballot drop box established within the boundaries of the Indian reservation or Indian colony.

Sec. 2. NRS 293.3572 is hereby amended to read as follows:

293.3572 1. In addition to permanent polling places for early voting, [except as otherwise provided in subsection 4,] the county clerk may establish temporary branch polling places for early voting which may include, without limitation, the clerk’s office pursuant to NRS 293.3561.

2. If an Indian reservation or Indian colony is located in whole or in part within a county, the [Indian tribe may submit a request to the] county clerk [for the establishment of] :

(a) Shall, except as otherwise provided in subsections 3 and 6, establish a temporary branch polling place for early voting and a ballot drop box at a location approved by the Indian tribe within the boundaries of the Indian reservation or Indian colony [.] ; and

(b) May establish additional temporary branch polling places for early voting or ballot drop boxes, or both, within the boundaries of the Indian reservation or Indian colony upon the request of an Indian tribe submitted not later than the dates set forth in subsection 3 to elect not to have a polling place and ballot drop box established within the boundaries of the Indian reservation or Indian colony.

3. [A request for the establishment of] An Indian tribe may elect not to have a temporary branch polling place for early voting and ballot drop box established within the boundaries of the Indian reservation or Indian colony [:

(a) Must be submitted] by submitting notice to the county clerk [by the Indian tribe] on or before:

[(1)] (a) If the [request] notice is for a primary election, [March 1] January 15 of the year in which the general election is to be held.

[(3)] (c) If the [request] notice is for a general election, [August 1] June 15 of the year in which the general election is to be held.

[(b) May include one or more proposed locations within the boundaries of the Indian reservation or Indian colony for the temporary branch polling place and proposed hours of operation thereof.]

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ê2023 Statutes of Nevada, Page 2522 (CHAPTER 419, SB 327)ê

4. Any [proposed] location of a temporary branch polling place for early voting or ballot drop box established pursuant to subsection 2 must satisfy the criteria established by the county clerk for the selection of temporary branch polling places and ballot drop boxes pursuant to NRS 293.3561.

[4. Except as otherwise provided in this subsection, if the county clerk receives a request that satisfies the requirements set forth in subsection 3, the county clerk must establish at least one temporary branch polling place for early voting within the boundaries of the Indian reservation or Indian colony. The location and hours of operation of such a temporary branch polling place for early voting must be approved by the Indian tribe. The county clerk is not required to establish a temporary branch polling place within the boundaries of the Indian reservation or Indian colony if the county clerk determines that it is not logistically feasible to establish a temporary branch polling place within the boundaries of the Indian reservation or Indian colony.]

5. [If the county clerk establishes one or more temporary branch polling places within the boundaries of an Indian reservation or Indian colony pursuant to subsection 4 for early voting, the] Except as otherwise provided in subsection 6, the county clerk must continue to establish one [or more] temporary branch polling [places] place and ballot drop box within the boundaries of the Indian reservation or Indian colony at a location [or locations] approved by the Indian tribe for early voting in future elections unless otherwise [requested] notified by the Indian tribe [.] pursuant to subsection 3.

6. Not later than the dates set forth in subsection 3 to elect not to have a polling place and ballot drop box established within the boundaries of the Indian reservation or Indian colony, an Indian tribe that elects to have a temporary branch polling place and ballot drop box established must submit to the county clerk and the tribal liaison designated by the Office of the Secretary of State pursuant to NRS 233A.260:

(a) The location for the temporary branch polling place and ballot drop box and whether the location will have only a temporary branch polling place or ballot drop box or both a temporary branch polling place and ballot drop box;

(b) Whether the Indian tribe will select registered voters to be appointed to act as election board officers to staff the temporary branch polling place within the boundaries of the Indian reservation or Indian colony; and

Ê If an Indian tribe does not submit the information required pursuant to this subsection, the Indian tribe shall be deemed to have elected not to have a temporary branch polling place and ballot drop box established within the boundaries of the Indian reservation or Indian colony.

7. The provisions of subsection 3 of NRS 293.3568 do not apply to a temporary branch polling place. Voting at a temporary branch polling place may be conducted on any one or more days and during any hours within the period for early voting by personal appearance, as determined by the county clerk.

[7.] 8. The schedules for conducting voting are not required to be uniform among the temporary branch polling places.

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ê2023 Statutes of Nevada, Page 2523 (CHAPTER 419, SB 327)ê

[8.] 9. The legal rights and remedies which inure to the owner or lessor of private property are not impaired or otherwise affected by the leasing of the property for use as a temporary branch polling place for early voting, except to the extent necessary to conduct early voting at that location.

Sec. 3. NRS 293C.2675 is hereby amended to read as follows:

293C.2675 1. If an Indian reservation or Indian colony is located in whole or in part within a city, the [Indian tribe may submit a request to the] city clerk [for the establishment] shall, except as otherwise provided in subsections 2 and 5, establish within the boundaries of the Indian reservation or Indian colony at a location approved by the Indian tribe for the day of a primary city election or general city election [of:

(a) A polling place;

(b) A ballot drop box; or

(a) Must be submitted] by submitting notice to the city clerk [by the Indian tribe] on or before:

[(1)] (a) If the [request] notice is for a primary city election, [March 1] January 15 of the year in which the primary city election is to be held.

[(2)] (b) If the [request] notice is for a general city election, [August 1] June 15 of the year in which the general city election is to be held.

[(b) May include one or more proposed locations within the boundaries of the Indian reservation or Indian colony for the polling place or ballot drop box.]

3. Any [proposed] location [for] of a polling place [or] and ballot drop box established pursuant to subsection 1 must satisfy the criteria the city clerk uses for the establishment of any other polling place [or] and ballot drop box, as applicable.

[3. Except as otherwise provided in this subsection, if the city clerk receives a request that satisfies the requirements set forth in subsection 2, the city clerk must establish at least one polling place or ballot drop box within the boundaries of the Indian reservation or Indian colony at a location or locations, as applicable, approved by the Indian tribe for the day of a primary city election or general city election. The city clerk is not required to establish a polling place within the boundaries of the Indian reservation or Indian colony for the day of a primary city election or general city election if the city clerk established a temporary branch polling place for early voting pursuant to NRS 293C.3572 within the boundaries of the Indian reservation or Indian colony for the same election.]

4. [If the city clerk establishes one or more polling places or ballot drop boxes within the boundaries of an Indian reservation or Indian colony pursuant to subsection 3 for the day of a primary city election or general city election, the] Except as otherwise provided in subsection 5, the city clerk must continue to establish one [or more] polling [places or] place and ballot drop [boxes] box within the boundaries of the Indian reservation or Indian colony at a location [or locations] approved by the Indian tribe for the day of any future primary city election or general city election unless otherwise [requested] notified by the Indian tribe [.]

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ê2023 Statutes of Nevada, Page 2524 (CHAPTER 419, SB 327)ê

any future primary city election or general city election unless otherwise [requested] notified by the Indian tribe [.] pursuant to subsection 2.

5. Not later than the dates set forth in subsection 2 to elect not to have a polling place and ballot drop box established within the boundaries of the Indian reservation or Indian colony, an Indian tribe that elects to have a polling place and ballot drop box established must submit to the city clerk and the tribal liaison designated by the Office of the Secretary of State pursuant to NRS 233A.260:

(a) The location for the polling place and ballot drop box and whether the location will have only a polling place or ballot drop box or both a polling place and ballot drop box;

Sec. 4. NRS 293C.3572 is hereby amended to read as follows:

293C.3572 1. In addition to permanent polling places for early voting, [except as otherwise provided in subsection 4,] the city clerk may establish temporary branch polling places for early voting pursuant to NRS 293C.3561.

2. If an Indian reservation or Indian colony is located in whole or in part within a city, the [Indian tribe may submit a request to the] city clerk [for the establishment of] shall, except as otherwise provided in subsections 3 and 6, establish a temporary branch polling place for early voting and a ballot drop box at a location approved by the Indian tribe within the boundaries of the Indian reservation or Indian colony.

(a) Must be submitted] by submitting notice to the city clerk [by the Indian tribe] on or before:

[(1)] (a) If the [request] notice is for a primary city election, [March 1] January 15 of the year in which the primary city election is to be held.

[(2)] (b) If the [request] notice is for a general city election, [August 1] June 15 of the year in which the general city election is to be held.

[(b) May include one or more proposed locations within the boundaries of the Indian reservation or Indian colony for the temporary branch polling place and proposed hours thereof.]

4. Any [proposed] location of a temporary branch polling place for early voting and ballot drop box established pursuant to subsection 2 must satisfy the criteria established by the city clerk pursuant to NRS 293C.3561.

[4. Except as otherwise provided in this subsection, if the city clerk receives a request that satisfies the requirements set forth in subsection 3, the city clerk must establish at least one temporary branch polling place for early voting within the boundaries of the Indian reservation or Indian colony. The location and hours of operation of such a temporary branch polling place for early voting must be approved by the Indian tribe.

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ê2023 Statutes of Nevada, Page 2525 (CHAPTER 419, SB 327)ê

early voting must be approved by the Indian tribe. The city clerk is not required to establish a temporary branch polling place within the boundaries of the Indian reservation or Indian colony if the city clerk determines that it is not logistically feasible to establish a temporary branch polling place within the boundaries of the Indian reservation or Indian colony.]

5. [If the city clerk establishes one or more temporary branch polling places within the boundaries of an Indian reservation or Indian colony pursuant to subsection 4 for early voting, the] Except as otherwise provided in subsection 6, the city clerk must continue to establish one [or more] temporary branch polling [places] place and ballot drop box within the boundaries of the Indian reservation or Indian colony at a location [or locations] approved by the Indian tribe for early voting in future elections unless otherwise [requested] notified by the Indian tribe [.] pursuant to subsection 3.

6. Not later than the dates set forth in subsection 3 to elect not to have a temporary branch polling place and ballot drop box established within the boundaries of the Indian reservation or Indian colony, an Indian tribe that elects to have a temporary branch polling place and ballot drop box established must submit to the city clerk and the tribal liaison designated by the Office of the Secretary of State pursuant to NRS 233A.260:

7. The provisions of subsection 3 of NRS 293C.3568 do not apply to a temporary branch polling place. Voting at a temporary branch polling place may be conducted on any one or more days and during any hours within the period for early voting by personal appearance, as determined by the city clerk.

[7.] 8. The schedules for conducting voting are not required to be uniform among the temporary branch polling places.

Sec. 5. 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.

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ê2023 Statutes of Nevada, Page 2526ê

CHAPTER 420, SB 328

Senate Bill No. 328–Senators Titus and Nguyen

CHAPTER 420

[Approved: June 14, 2023]

AN ACT relating to cannabis; revising provisions relating to the appointment of members of the Cannabis Compliance Board; revising the qualifications and terms of office of members of the Board; authorizing the Governor to appoint and remove the Executive Director of the Board; revising the powers of the Board; authorizing the Board to adopt certain regulations; requiring the Board to adopt regulations providing for the investigation of unlicensed cannabis activities and the imposition of penalties against persons who engage in such activities; eliminating the exemption of the Board from the provisions of the Nevada Administrative Procedure Act; revising procedures governing disciplinary proceedings conducted by the Board; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

Existing law sets forth certain legislative findings and declarations concerning the public policy of this State with respect to the cannabis industry. (NRS 678A.005) Section 1 of this bill revises those findings and declarations and adds certain findings and declarations relating to illegal and unregulated activities involving cannabis.

Existing law sets forth the general powers of the Cannabis Compliance Board. (NRS 678A.440) Section 1.6 of this bill authorizes the Board to: (1) seize and destroy cannabis and cannabis products involved in unlicensed cannabis activities in accordance with the procedures applicable to other property subject to forfeiture; and (2) commit resources and take certain actions relating to unlicensed cannabis activities.

Existing law sets forth the composition of the Board. (NRS 678A.360) Existing law requires the Governor to appoint the members of the Board and designate one member to serve as Chair. (NRS 678A.370) Section 1.3 of this bill revises certain requirements and qualifications of the members of the Board. Sections 1.3, 4.3 and 4.6 of this bill exempt one member of the Board who is required to be selected based on his or her knowledge, skill and experience in the cannabis industry from certain restrictions imposed on former public officers or employees. Section 1.4 of this bill revises provisions concerning the appointment of members of the Board. Section 1.4 requires the Governor to designate one member of the Board to serve as Vice Chair and requires each member, before entering upon the duties of office, to receive training that is the same or substantially similar to that which is required of a cannabis establishment agent.

Section 5.4 of this bill provides for staggered terms of the five members of the Board by: (1) providing that the terms of office of three members of the Board serving on June 30, 2024, expire on that date and requiring new members be appointed for a term of 4 years commencing July 1, 2024; and (2) providing that the terms of office of the remaining two members of the Board serving as of June 30, 2025, expire on that date and requiring new members be appointed for a term of 4 years commencing July 1, 2025.

Existing law requires the Board to appoint, and authorizes the Board to remove, the Executive Director of the Board. (NRS 678A.420) Section 1.5 of this bill transfers that authority to the Governor and requires the Governor to consider the skill and experience of a potential Executive Director in regulated industries when making the appointment.

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ê2023 Statutes of Nevada, Page 2527 (CHAPTER 420, SB 328)ê

Existing law authorizes the Board to adopt regulations necessary and convenient to carry out certain provisions of law relating to the regulation of cannabis. (NRS 678A.450) Section 1.7 of this bill provides that if the Board adopts regulations establishing certain mechanisms to ensure compliance with those provisions of law, the mechanisms must: (1) include certain education and training for employees of the Board and certain information to aid licensees and registrants in compliance; and (2) establish certain grounds for disciplinary action against a licensee or registrant. Section 1.7 also authorizes the Board to adopt certain regulations governing cannabis establishments which are publicly traded companies. Finally, section 1.7 requires the Board to adopt regulations providing for the investigation of unlicensed cannabis activities and the imposition of penalties against persons who engage in such activities. Section 5.3 of this bill makes a conforming change to account for the placement of new language in section 1.7.

Existing law sets forth the Nevada Administrative Procedure Act, which establishes the procedures for state agencies to adopt, amend or repeal administrative regulations and adjudicate contested cases. (Chapter 233B of NRS) Existing law exempts the Board from the provisions of the Act. (NRS 233B.039) Existing law instead sets forth specific procedures for the Board to: (1) adopt, amend or repeal regulations; and (2) take disciplinary action against a person who holds a license or registration card issued by the Board. (NRS 678A.460, 678A.500-678A.640) Section 5 of this bill eliminates the exemption of the Board from the provisions of the Act, thereby requiring the Board to adopt, amend and repeal regulations and adjudicate contested cases in the same manner as other state agencies subject to the provisions of the Act. Section 6 of this bill repeals the specific procedures for the Board to adopt, amend or repeal regulations set forth under existing law. Sections 1.9-3 of this bill revise the procedures for the Board to take disciplinary action to conform with the procedures for the adjudication of contested cases set forth in the Act.

Existing law sets forth procedures by which a person aggrieved by a final decision of the Board in a disciplinary proceeding may obtain judicial review of the decision. (NRS 678A.610-678A.640) Section 6 eliminates those procedures. Section 4 of this bill instead authorizes a person aggrieved by a final decision of the Board in a disciplinary proceeding to obtain judicial review of the decision in the manner provided in the Act.

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 678A.005 is hereby amended to read as follows:

678A.005 The Legislature hereby finds, and declares to be the public policy of this State, that:

1. The cannabis industry is [beneficial] significant to the economy of the State [and the general welfare of its residents.] of Nevada.

2. A regulated cannabis industry provides access to legal cannabis and cannabis products in a safe manner. Cannabis and cannabis products obtained from illegal sources are not tested, may be associated with violent crime and are often targeted at minors.

3. The continued growth and success of the cannabis industry is dependent upon public confidence and trust and an understanding that:

(a) Residents who suffer from chronic or debilitating medical conditions will be able to obtain medical cannabis safely and conveniently;

(b) Residents who choose to engage in the adult use of cannabis may also obtain adult-use cannabis in a safe and efficient manner;

(c) Cannabis establishments do not unduly impact the quality of life enjoyed by residents of the surrounding neighborhoods;

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ê2023 Statutes of Nevada, Page 2528 (CHAPTER 420, SB 328)ê

(d) Cannabis licenses and registration cards are issued in a fair and equitable manner [;] with a commitment to the consideration of social equity;

(e) The holders of cannabis licenses and registration cards are representative of their communities; [and]

(f) [The] Nevada seeks to emulate other privileged industries that are licensed and strictly regulated insofar as those industries are similar to or the approaches used in those industries are compatible with the cannabis industry in this State; and

(g) A well regulated cannabis industry [is free from] provides significant tax revenues to the State and runs contrary to the criminal and corruptive elements [.] that exist in an unregulated and illegal market.

[3.] 4. Public confidence and trust can only be maintained by strict but fair and equitable regulation of all persons, locations, practices, associations and activities related to the operation of cannabis establishments.

[4.] 5. All cannabis establishments and cannabis establishment agents must [therefore] be licensed, controlled and assisted to protect the public health, safety, morals, good order and general welfare of the inhabitants of the State, to foster the stability and success of the cannabis industry and to preserve the competitive economy and policies of free competition of the State of Nevada.

Sec. 1.3. NRS 678A.360 is hereby amended to read as follows:

678A.360 1. Each member of the Board must be a resident of the State of Nevada.

2. No member of the Legislature, no person holding any elective office in the State Government, nor any officer or official of any political party is eligible for appointment to the Board.

3. Not more than three of the five members of the Board may be of the same political party.

4. It is the intention of the Legislature that the Board be composed of the most qualified persons available.

5. One member of the Board must [:

(a) Be a certified public accountant certified or licensed by this State or another state of the United States or a public accountant qualified to practice public accounting under the provisions of chapter 628 of NRS, have 5 years of progressively responsible experience in general accounting and have a comprehensive knowledge of the principles and practices of corporate finance; or

(b) Possess] possess the qualifications of an expert in the fields of corporate finance and auditing, inventory, general finance or economics [.] and be selected with special reference to his or her knowledge, skill and experience in representing businesses engaging in manufacturing, distribution, retail or agriculture.

6. One member of the Board must be selected with special reference to his or her training and experience in the fields of investigation or law enforcement [.] , including, without limitation, in the area of illegal or unlicensed cannabis activities.

7. One member of the Board must be an attorney licensed to practice in this State and selected with special reference to his or her knowledge, skill and experience in representing businesses in licensing matters or regulatory compliance.

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ê2023 Statutes of Nevada, Page 2529 (CHAPTER 420, SB 328)ê

8. One member of the Board must be selected with special reference to his or her knowledge, skill and experience in the cannabis industry. The person selected pursuant to this subsection is not subject to paragraph (b) of subsection 1 of NRS 281A.410 or subsection 3 of NRS 281A.550.

9. One member of the Board must be a physician licensed pursuant to chapter 630 or 633 of NRS and have knowledge, skill and experience in the area of public health or be a psychologist, clinical professional counselor, alcohol and drug counselor , [or] social worker or a person with expertise in laboratory sciences and must be selected with special reference to his or her knowledge, skill and experience in the area of [education and prevention of abuse relating to] cannabis.

10. In addition to any other requirements imposed by this section, the member who is designated as Chair of the Board must have at least 5 years of leadership experience in his or her field.

Sec. 1.4. NRS 678A.370 is hereby amended to read as follows:

678A.370 1. [The term of office of each member of the Board is 4 years, commencing on the last Monday in January.

2.] The Governor shall appoint the members of the Board and designate one member to serve as Chair, who shall preside over all official activities of the Board [.] , and one member as Vice Chair, who shall perform duties established by the Board.

2. The term of the Chair is 2 years. Upon expiration of the term of the Chair, if the Governor has not designated the member to serve as Chair for another term or designated another member to serve as Chair, the Vice Chair becomes the Chair.

3. In appointing members to the Board, the Governor shall consider whether the members appointed to the Board reflect the ethnic and geographical diversity of this State.

4. Each member of the Board serves a term of 4 years.

[3.] 5. The Governor may remove any member for neglect of duty, misfeasance, malfeasance or nonfeasance in office. Removal may be made after:

(a) The member has been served with a copy of the charges against the member; and

(b) A public hearing before the Governor is held upon the charges, if requested by the member charged.

Ê The request for a public hearing must be made within 10 days after service upon such member of the charges. If a hearing is not requested, a member is removed effective 10 days after service of charges upon the member. A record of the proceedings at the public hearing must be filed with the Secretary of State.

6. Before entering upon the duties of office, each person appointed to the Board must receive training that is the same or substantially similar to any training that is required by the Board by regulation to be completed by a cannabis establishment agent before he or she may be employed by, volunteer at or provide labor to a cannabis establishment.

Sec. 1.5. NRS 678A.420 is hereby amended to read as follows:

678A.420 1. The position of Executive Director of the Cannabis Compliance Board is hereby created.

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ê2023 Statutes of Nevada, Page 2530 (CHAPTER 420, SB 328)ê

2. The Executive Director:

(a) Is appointed by the [Board] Governor, with consideration given to the skill or experience of the appointee in regulated industries, and may be removed by the [Board;] Governor;

(b) Is responsible for the conduct of the administrative matters of the Board; and

(c) Shall, except as otherwise provided in NRS 284.143, devote his or her entire time and attention to the business of the office of Executive Director and shall not pursue any other business or occupation or hold any other office for profit.

3. The Executive Director is entitled to an annual salary in the amount specified by the Board within the limits of legislative appropriations or authorizations.

Sec. 1.6. NRS 678A.440 is hereby amended to read as follows:

678A.440 In addition to any other powers granted by this title, the Board has the power to:

1. Enter into interlocal agreements pursuant to NRS 277.080 to 277.180, inclusive.

2. Establish and amend a plan of organization for the Board, including, without limitation, organizations of divisions or sections with leaders for such divisions or sections.

3. Appear on its own behalf before governmental agencies of the State or any of its political subdivisions.

4. Apply for and accept any gift, donation, bequest, grant or other source of money to carry out the provisions of this title.

5. Execute all instruments necessary or convenient for carrying out the provisions of this title.

6. Prepare, publish and distribute such studies, reports, bulletins and other materials as the Board deems appropriate.

7. Refer cases to the Attorney General for criminal prosecution.

8. Maintain an official Internet website for the Board.

9. Monitor federal activity regarding cannabis and report its findings to the Legislature.

10. Employ the services of such persons the Board considers necessary for the purposes of hearing disciplinary proceedings.

11. In accordance with NRS 179.1156 to 179.121, inclusive, seize and destroy cannabis and cannabis products involved in unlicensed cannabis activities.

12. Commit resources and take action to address unlicensed cannabis activities, including, without limitation:

(a) Investigating and referring matters involving unlicensed cannabis activities to the appropriate state or local law enforcement agency, including, without limitation, the Investigation Division of the Department of Public Safety and the Attorney General, for further investigation and possible criminal prosecution;

(b) Educating the public through various types of media and communication and other forms of public outreach on the dangers and illegality of unlicensed cannabis activities and the importance of having cannabis establishments which are licensed and regulated;

(c) Creating a system through which the public, licensees and registrants may file confidential reports of unlicensed cannabis activities; and

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ê2023 Statutes of Nevada, Page 2531 (CHAPTER 420, SB 328)ê

(d) Imposing penalties against persons who engage in unlicensed cannabis activities in accordance with the regulations adopted by the Board pursuant to NRS 678A.450.

Sec. 1.7. NRS 678A.450 is hereby amended to read as follows:

678A.450 1. The Board may adopt regulations necessary or convenient to carry out the provisions of this title. Such regulations may include, without limitation:

(a) Financial requirements for licensees.

(b) Establishing such education, outreach, investigative and enforcement mechanisms as the Board deems necessary to ensure the compliance of a licensee or registrant with the provisions of this title. Such mechanisms must include, without limitation:

(1) A system to educate, train and certify employees of the Board which:

(I) Each member must complete before he or she may engage in inspections, investigations or audits; and

(II) At a minimum, includes training that is the same or substantially similar to any training that is required by the Board by regulation to be completed by a cannabis establishment agent before he or she may be employed by, volunteer at or provide labor to a cannabis establishment;

(2) A system to educate and advise licensees and registrants on compliance with the provisions of this title which may serve as an alternative to disciplinary action; and

(3) Establishing specific grounds for disciplinary action against a licensee or registrant who knowingly violates the law or engages in grossly negligent, unlawful or criminal conduct or an act or omission that poses an imminent threat to the health or safety of the public.

(c) Requirements for licensees or registrants relating to the cultivation, processing, manufacture, transport, distribution, testing, study, advertising and sale of cannabis and cannabis products.

(d) Policies and procedures to ensure that the cannabis industry in this State is economically competitive, inclusive of racial minorities, women and persons and communities that have been adversely affected by cannabis prohibition and accessible to persons of low-income seeking to start a business.

(e) Policies and procedures governing the circumstances under which the Board may waive the requirement to obtain a registration card pursuant to this title for any person who holds an ownership interest of less than 5 percent in any one cannabis establishment or an ownership interest in more than one cannabis establishment of the same type that, when added together, is less than 5 percent.

(f) Policies and procedures relating to the disclosure of the identities of the shareholders and the annual report of a cannabis establishment that is a publicly traded company.

(g) Reasonable restrictions on the signage, marketing, display and advertising of cannabis establishments. Such a restriction must not require a cannabis establishment to obtain the approval of the Board before using a logo, sign or advertisement.

[(g)] (h) Provisions governing the sales of products and commodities made from hemp, as defined in NRS 557.160, or containing cannabidiol by cannabis establishments.

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ê2023 Statutes of Nevada, Page 2532 (CHAPTER 420, SB 328)ê

[(h)] (i) Requirements relating to the packaging and labeling of cannabis and cannabis products.

2. The Board shall adopt regulations providing for the gathering and maintenance of comprehensive demographic information, including, without limitation, information regarding race, ethnicity, age and gender, concerning each:

(a) Owner and manager of a cannabis establishment.

(b) Holder of a cannabis establishment agent registration card.

3. The Board shall adopt regulations providing for the investigation of unlicensed cannabis activities and the imposition of penalties against persons who engage in such activities. Such regulations must, without limitation:

(a) Establish penalties to be imposed for unlicensed cannabis activities, which may include, without limitation, the issuance of a cease and desist order or citation, the imposition of an administrative fine or civil penalty and other similar penalties.

(b) Set forth the procedures by which the Board may impose a penalty against a person for engaging in unlicensed cannabis activities.

(c) Set forth the circumstances under which the Board is required to refer matters concerning unlicensed cannabis activities to an appropriate state or local law enforcement agency.

4. The Board shall transmit the information gathered and maintained pursuant to subsection 2 to the Director of the Legislative Counsel Bureau for transmission to the Legislature on or before January 1 of each odd-numbered year.

[4.] 5. The Board shall, by regulation, establish a pilot program for identifying opportunities for an emerging small cannabis business to participate in the cannabis industry. As used in this subsection, “emerging small cannabis business” means a cannabis-related business that:

(a) Is in existence, operational and operated for a profit;

(b) Maintains its principal place of business in this State; and

Sec. 1.9. NRS 678A.510 is hereby amended to read as follows:

678A.510 1. If the Executive Director transmits the details of a suspected violation to the Attorney General pursuant to NRS 678A.500, the Attorney General shall conduct an investigation of the suspected violation to determine whether it warrants proceedings for disciplinary action of the licensee or registrant. If the Attorney General determines that further proceedings are warranted, he or she shall report the results of the investigation together with a recommendation to the Executive Director in a manner which does not violate the right of the person charged in the complaint to due process in any later hearing on the complaint. The Executive Director shall transmit the recommendation and other information received from the Attorney General to the Board.

2. The Board shall promptly make a determination with respect to each complaint resulting in an investigation by the Attorney General. The Board shall:

(a) Dismiss the complaint; or

(b) Proceed with appropriate disciplinary action in accordance with NRS 678A.520 to 678A.600, inclusive, chapter 233B of NRS and the regulations adopted by the Board.

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ê2023 Statutes of Nevada, Page 2533 (CHAPTER 420, SB 328)ê

Sec. 2. NRS 678A.540 is hereby amended to read as follows:

678A.540 1. At all hearings before the Board:

(a) Oral evidence may be taken only upon oath or affirmation administered by the Board.

(b) Every party has the right to:

(1) Call and examine witnesses;

(2) Introduce exhibits relevant to the issues of the case;

(3) Cross-examine opposing witnesses on any matters relevant to the issues of the case, even though the matter was not covered in a direct examination;

(4) Impeach any witness regardless of which party first called the witness to testify; and

(5) Offer rebuttal evidence.

(c) If the respondent does not testify in his or her own behalf, the respondent may be called and examined as if under cross-examination.

(d) The hearing need not be conducted according to technical rules relating to evidence and witnesses [.] , except that those prescribed in NRS 233B.123 apply. Any relevant evidence that is not immaterial or unduly repetitious may be admitted and is sufficient in itself to support a finding if it is the sort of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rule which might make improper the admission of such evidence over objection in a civil action.

(e) The parties or their counsel may by written stipulation agree that certain specified evidence may be admitted even though such evidence might otherwise be subject to objection.

2. The Board may take official notice of any generally accepted information or technical or scientific matter within the field of cannabis, and of any other fact which may be judicially noticed by the courts of this State. The parties must be informed of any information, matters or facts so noticed, and must be given a reasonable opportunity, on request, to refute such information, matters or facts by evidence or by written or oral presentation of authorities, the manner of such refutation to be determined by the Board.

3. Affidavits may be received in evidence at any hearing of the Board in accordance with the following:

(a) The party wishing to use an affidavit must, not less than 10 days before the day set for hearing, serve upon the opposing party or counsel, either personally or by registered or certified mail, a copy of the affidavit which the party proposes to introduce in evidence together with a notice as provided in paragraph (c).

(b) Unless the opposing party, within 7 days after such service, mails or delivers to the proponent a request to cross-examine the affiant, the opposing party’s right to cross-examine the affiant is waived and the affidavit, if introduced in evidence, must be given the same effect as if the affiant had testified orally. If an opportunity to cross-examine an affiant is not afforded after request therefor is made in accordance with this paragraph, the affidavit may be introduced in evidence, but must be given only the same effect as other hearsay evidence.

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ê2023 Statutes of Nevada, Page 2534 (CHAPTER 420, SB 328)ê

The accompanying affidavit of (here insert name of affiant) will be introduced as evidence at the hearing set for the ........ day of the month of ………. of the year …… (Here insert name of affiant) will not be called to testify orally and you will not be entitled to question (here insert name of affiant) unless you notify the undersigned that you wish to cross-examine (here insert name of affiant). To be effective your request must be mailed or delivered to the undersigned on or before 7 days from the date this notice and the enclosed affidavit are served upon you.

.................................................................

(Party or Counsel)

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(Address)

Sec. 3. NRS 678A.590 is hereby amended to read as follows:

678A.590 1. Within 60 days after the hearing of a contested matter, the Board shall render a written decision on the merits . [which] Except as otherwise provided in subsection 5 of NRS 233B.121, the written decision must contain findings of fact [,] and conclusions of law which are separately stated, a determination of the issues presented and the penalty to be imposed, if any. The Board shall thereafter make and enter its written order in conformity to its decision. No member of the Board who did not hear the evidence may vote on the decision. The affirmative votes of a majority of the whole Board are required to impose any penalty. Copies of the decision and order must be served on the parties personally or sent to them by registered or certified mail. The decision is effective upon such service, unless the Board orders otherwise.

2. The Board may, upon motion made within [10] 15 days after service of a decision and order, order a rehearing before the Board upon such terms and conditions as it may deem just and proper if a petition for judicial review of the decision and order has not been filed. The motion must not be granted except upon a showing that there is additional evidence which is material and necessary and reasonably calculated to change the decision of the Board, and that sufficient reason existed for failure to present the evidence at the hearing of the Board. The motion must be supported by an affidavit of the moving party or his or her counsel showing with particularity the materiality and necessity of the additional evidence and the reason why it was not introduced at the hearing. Upon rehearing, rebuttal evidence to the additional evidence must be permitted. After rehearing, the Board may modify its decision and order as the additional evidence may warrant.

Sec. 4. NRS 678A.610 is hereby amended to read as follows:

678A.610 [1.] Any person aggrieved by a final decision or order of the Board made after hearing or rehearing by the Board pursuant to NRS 678A.520 to 678A.600, inclusive, and whether or not a motion for rehearing was filed, [may obtain a] is entitled to judicial review [thereof in the district court of the county in which the petitioner resides or has his, her or its principal place of business.

2. The judicial review must be instituted by filing a petition within 20 days after the effective date of the final decision or order. A petition may not be filed while a motion for rehearing or a rehearing is pending before the Board.

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ê2023 Statutes of Nevada, Page 2535 (CHAPTER 420, SB 328)ê

Board. The petition must set forth the order or decision appealed from and the grounds or reasons why petitioner contends a reversal or modification should be ordered.

3. Copies of the petition must be served upon the Board and all other parties of record, or their counsel of record, either personally or by certified mail.

4. The court, upon a proper showing, may permit other interested persons to intervene as parties to the appeal or as friends of the court.

5. The filing of the petition does not stay enforcement of the decision or order of the Board, but the Board itself may grant a stay upon such terms and conditions as it deems proper.] of the decision or order in the manner provided by chapter 233B of NRS.

Sec. 4.3. NRS 281A.410 is hereby amended to read as follows:

281A.410 In addition to the requirements of the code of ethical standards and the other provisions of this chapter:

1. [If] Except as otherwise provided in NRS 678A.360, if a public officer or employee serves in a state agency of the Executive Department or an agency of any county, city or other political subdivision, the public officer or employee:

(a) Shall not accept compensation from any private person to represent or counsel the private person on any issue pending before the agency in which that public officer or employee serves, if the agency makes decisions; and

(b) If the public officer or employee leaves the service of the agency, shall not, for 1 year after leaving the service of the agency, represent or counsel for compensation a private person upon any issue which was under consideration by the agency during the public officer’s or employee’s service. As used in this paragraph, “issue” includes a case, proceeding, application, contract or determination, but does not include the proposal or consideration of legislative measures or administrative regulations.

2. Except as otherwise provided in subsection 3, a State Legislator or a member of a local legislative body, or a public officer or employee whose public service requires less than half of his or her time, may represent or counsel a private person before an agency in which he or she does not serve.

3. A member of a local legislative body shall not represent or counsel a private person for compensation before another local agency if the territorial jurisdiction of the other local agency includes any part of the county in which the member serves. The Commission may relieve the member from the strict application of the provisions of this subsection if:

(a) The member files a request for an advisory opinion from the Commission pursuant to NRS 281A.675; and

(b) The Commission determines that such relief is not contrary to:

(1) The best interests of the public;

(2) The continued ethical integrity of each local agency affected by the matter; and

(3) The provisions of this chapter.

4. For the purposes of subsection 3, the request for an advisory opinion, the advisory opinion and all meetings, hearings and proceedings of the Commission in such a matter are governed by the provisions of NRS 281A.670 to 281A.690, inclusive.

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ê2023 Statutes of Nevada, Page 2536 (CHAPTER 420, SB 328)ê

5. Unless permitted by this section, a public officer or employee shall not represent or counsel a private person for compensation before any state agency of the Executive or Legislative Department.

Sec. 4.6. NRS 281A.550 is hereby amended to read as follows:

281A.550 1. A former member of the Public Utilities Commission of Nevada shall not:

(a) Be employed by a public utility or parent organization or subsidiary of a public utility; or

(b) Appear before the Public Utilities Commission of Nevada to testify on behalf of a public utility or parent organization or subsidiary of a public utility,

Ê for 1 year after the termination of the member’s service on the Public Utilities Commission of Nevada.

2. A former member of the Nevada Gaming Control Board or the Nevada Gaming Commission shall not:

(a) Appear before the Nevada Gaming Control Board or the Nevada Gaming Commission on behalf of a person who holds a license issued pursuant to chapter 463 or 464 of NRS or who is required to register with the Nevada Gaming Commission pursuant to chapter 463 of NRS; or

(b) Be employed by such a person,

Ê for 1 year after the termination of the member’s service on the Nevada Gaming Control Board or the Nevada Gaming Commission.

3. In addition to the prohibitions set forth in subsections 1 and 2, and except as otherwise provided in subsections 4 and 6 [,] and NRS 678A.360, a former public officer or employee of a board, commission, department, division or other agency of the Executive Department of State Government, except a clerical employee, shall not solicit or accept employment from a business or industry whose activities are governed by regulations adopted by the board, commission, department, division or other agency for 1 year after the termination of the former public officer’s or employee’s service or period of employment if:

(a) The former public officer’s or employee’s principal duties included the formulation of policy contained in the regulations governing the business or industry;

(b) During the immediately preceding year, the former public officer or employee directly performed activities, or controlled or influenced an audit, decision, investigation or other action, which significantly affected the business or industry which might, but for this section, employ the former public officer or employee; or

(c) As a result of the former public officer’s or employee’s governmental service or employment, the former public officer or employee possesses knowledge of the trade secrets of a direct business competitor.

4. The provisions of subsection 3 do not apply to a former public officer who was a member of a board, commission or similar body of the State if:

(a) The former public officer is engaged in the profession, occupation or business regulated by the board, commission or similar body;

(b) The former public officer holds a license issued by the board, commission or similar body; and

(c) Holding a license issued by the board, commission or similar body is a requirement for membership on the board, commission or similar body.

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ê2023 Statutes of Nevada, Page 2537 (CHAPTER 420, SB 328)ê

5. Except as otherwise provided in subsection 6, a former public officer or employee of the State or a political subdivision, except a clerical employee, shall not solicit or accept employment from a person to whom a contract for supplies, materials, equipment or services was awarded by the State or political subdivision, as applicable, for 1 year after the termination of the officer’s or employee’s service or period of employment, if:

(a) The amount of the contract exceeded $25,000;

(b) The contract was awarded within the 12-month period immediately preceding the termination of the officer’s or employee’s service or period of employment; and

(c) The position held by the former public officer or employee at the time the contract was awarded allowed the former public officer or employee to affect or influence the awarding of the contract.

6. A current or former public officer or employee may file a request for an advisory opinion pursuant to NRS 281A.675 concerning the application of the relevant facts in that person’s case to the provisions of subsection 3 or 5, as applicable, and determine whether relief from the strict application of those provisions is proper. If the Commission determines that relief from the strict application of the provisions of subsection 3 or 5, as applicable, is not contrary to:

(a) The best interests of the public;

(b) The continued ethical integrity of the State Government or political subdivision, as applicable; and

Ê it may issue an advisory opinion to that effect and grant such relief.

7. For the purposes of subsection 6, the request for an advisory opinion, the advisory opinion and all meetings, hearings and proceedings of the Commission in such a matter are governed by the provisions of NRS 281A.670 to 281A.690, inclusive.

8. The advisory opinion does not relieve the current or former public officer or employee from the strict application of any provision of NRS 281A.410.

9. For the purposes of this section:

(a) A former member of the Public Utilities Commission of Nevada, the Nevada Gaming Control Board or the Nevada Gaming Commission; or

(b) Any other former public officer or employee governed by this section,

Ê is employed by or is soliciting or accepting employment from a business, industry or other person described in this section if any oral or written agreement is sought, negotiated or exists during the restricted period pursuant to which the personal services of the public officer or employee are provided or will be provided to the business, industry or other person, even if such an agreement does not or will not become effective until after the restricted period.

10. As used in this section, “regulation” has the meaning ascribed to it in NRS 233B.038 and also includes regulations adopted by a board, commission, department, division or other agency of the Executive Department of State Government that is exempted from the requirements of chapter 233B of NRS.

Sec. 5. NRS 233B.039 is hereby amended to read as follows:

233B.039 1. The following agencies are entirely exempted from the requirements of this chapter:

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ê2023 Statutes of Nevada, Page 2538 (CHAPTER 420, SB 328)ê

(a) The Governor.

(b) Except as otherwise provided in NRS 209.221 and 209.2473, the Department of Corrections.

(d) The Office of the Military.

(e) The Nevada Gaming Control Board.

(f) Except as otherwise provided in NRS 368A.140 and 463.765, the Nevada Gaming Commission.

(g) Except as otherwise provided in NRS 425.620, the Division of Welfare and Supportive Services of the Department of Health and Human Services.

(h) Except as otherwise provided in NRS 422.390, the Division of Health Care Financing and Policy of the Department of Health and Human Services.

(i) Except as otherwise provided in NRS 533.365, the Office of the State Engineer.

(j) The Division of Industrial Relations of the Department of Business and Industry acting to enforce the provisions of NRS 618.375.

(k) The Administrator of the Division of Industrial Relations of the Department of Business and Industry in establishing and adjusting the schedule of fees and charges for accident benefits pursuant to subsection 2 of NRS 616C.260.

(l) The Board to Review Claims in adopting resolutions to carry out its duties pursuant to NRS 445C.310.

(m) The Silver State Health Insurance Exchange.

[(n) The Cannabis Compliance Board.]

2. Except as otherwise provided in subsection 5 and NRS 391.323, the Department of Education, the Board of the Public Employees’ Benefits Program and the Commission on Professional Standards in Education are subject to the provisions of this chapter for the purpose of adopting regulations but not with respect to any contested case.

3. The special provisions of:

(a) Chapter 612 of NRS for the adoption of an emergency regulation or the distribution of regulations by and the judicial review of decisions of the Employment Security Division of the Department of Employment, Training and Rehabilitation;

(b) Chapters 616A to 617, inclusive, of NRS for the determination of contested claims;

(c) Chapter 91 of NRS for the judicial review of decisions of the Administrator of the Securities Division of the Office of the Secretary of State; and

(d) NRS 90.800 for the use of summary orders in contested cases,

Ê prevail over the general provisions of this chapter.

4. The provisions of NRS 233B.122, 233B.124, 233B.125 and 233B.126 do not apply to the Department of Health and Human Services in the adjudication of contested cases involving the issuance of letters of approval for health facilities and agencies.

5. The provisions of this chapter do not apply to:

(a) Any order for immediate action, including, but not limited to, quarantine and the treatment or cleansing of infected or infested animals, objects or premises, made under the authority of the State Board of Agriculture, the State Board of Health, or any other agency of this State in the discharge of a responsibility for the preservation of human or animal health or for insect or pest control;

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ê2023 Statutes of Nevada, Page 2539 (CHAPTER 420, SB 328)ê

Agriculture, the State Board of Health, or any other agency of this State in the discharge of a responsibility for the preservation of human or animal health or for insect or pest control;

(b) An extraordinary regulation of the State Board of Pharmacy adopted pursuant to NRS 453.2184;

(d) The judicial review of decisions of the Public Utilities Commission of Nevada;

(e) The adoption, amendment or repeal of policies by the Rehabilitation Division of the Department of Employment, Training and Rehabilitation pursuant to NRS 426.561 or 615.178;

(f) The adoption or amendment of a rule or regulation to be included in the State Plan for Services for Victims of Crime by the Department of Health and Human Services pursuant to NRS 217.130;

(g) The adoption, amendment or repeal of rules governing the conduct of contests and exhibitions of unarmed combat by the Nevada Athletic Commission pursuant to NRS 467.075;

(h) The adoption, amendment or repeal of regulations by the Director of the Department of Health and Human Services pursuant to NRS 447.335 to 447.350, inclusive;

(i) The adoption, amendment or repeal of standards of content and performance for courses of study in public schools by the Council to Establish Academic Standards for Public Schools and the State Board of Education pursuant to NRS 389.520;

(j) The adoption, amendment or repeal of the statewide plan to allocate money from the Fund for a Resilient Nevada created by NRS 433.732 established by the Department of Health and Human Services pursuant to paragraph (b) of subsection 1 of NRS 433.734; or

(k) The adoption or amendment of a data request by the Commissioner of Insurance pursuant to NRS 687B.404.

6. The State Board of Parole Commissioners is subject to the provisions of this chapter for the purpose of adopting regulations but not with respect to any contested case.

Sec. 5.3. NRS 453.096 is hereby amended to read as follows:

453.096 1. “Marijuana” means:

(a) All parts of any plant of the genus Cannabis, whether growing or not;

(b) The seeds thereof;

(d) Every compound, manufacture, salt, derivative, mixture or preparation of the plant, its seeds or resin;

(e) Any commodity or product made using hemp which exceeds the maximum THC concentration established by the State Department of Agriculture for hemp; and

(f) Any product or commodity made from hemp which is manufactured or sold by a cannabis establishment which violates any regulation adopted by the Cannabis Compliance Board pursuant to paragraph [(g)] (h) of subsection 1 of NRS 678A.450 relating to THC concentration.

2. “Marijuana” does not include:

(a) Hemp, as defined in NRS 557.160, which is grown or cultivated pursuant to the provisions of chapter 557 of NRS;

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ê2023 Statutes of Nevada, Page 2540 (CHAPTER 420, SB 328)ê

(b) The mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil or cake, or the sterilized seed of the plant which is incapable of germination; or

(c) Any commodity or product made using hemp, as defined in NRS 557.160, which does not exceed the maximum THC concentration established by the State Department of Agriculture for hemp.

Sec. 5.4. 1. The terms of the members of the Board described in subsections 5, 6 and 7 of NRS 678A.360, as amended by section 1.3 of this act, who are incumbent on June 30, 2024, expire on that date. On or before July 1, 2024, the Governor shall appoint to the Board the members described in subsections 5, 6 and 7 of NRS 678A.360, as amended by section 1.3 of this act, to terms that commence on July 1, 2024, and expire on June 30, 2028.

2. The terms of the members of the Board described in subsections 8 and 9 of NRS 678A.360, as amended by section 1.3 of this act, who are incumbent on June 30, 2025, expire on that date. On or before July 1, 2025, the Governor shall appoint to the Board the members described in subsections 8 and 9 of NRS 678A.360, as amended by section 1.3 of this act, to terms that commence on July 1, 2025, and expire on June 30, 2029.

3. Notwithstanding the amendatory provisions of section 1.3 of this act, any appointment of a member to the Board that is made:

(a) For a member described in subsection 5, 6 or 7 of NRS 678A.360, as amended by section 1.3 of this act, before the appointment of the members required to be appointed pursuant to subsection 1 must be made in accordance with NRS 678A.360 and 678A.370, as those sections existed before the effective date of this act.

(b) For a member described in subsection 8 or 9 of NRS 678A.360, as amended by section 1.3 of this act, before the appointment of the members required to be appointed pursuant to subsection 2 must be made in accordance with NRS 678A.360 and 678A.370, as those sections existed before the effective date of this act.

Sec. 5.5. The amendatory provisions of sections 2, 3, 4 and 6 of this act apply to any judicial or administrative proceedings commenced on or after the effective date of this act.

Sec. 5.7. The amendatory provisions of sections 5 and 6 of this act apply to regulations which are proposed by the Cannabis Compliance Board on or after the effective date of this act.

Sec. 6. NRS 678A.460, 678A.560, 678A.620, 678A.630 and 678A.640 are hereby repealed.

Sec. 7. This act becomes effective upon passage and approval.

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ê2023 Statutes of Nevada, Page 2541ê

CHAPTER 421, SB 375

Senate Bill No. 375–Senators Seevers Gansert and Cannizzaro

Joint Sponsors: Assemblymen Yeager and O’Neill

CHAPTER 421

[Approved: June 14, 2023]

AN ACT making an appropriation to the Nevada System of Higher Education for a grant program to expand undergraduate and graduate nursing programs at institutions within the System; and providing other matters properly relating thereto.

Whereas, The United States is projected to experience a shortage of registered nurses that is expected to intensify in coming years as the demand for health care services grows, particularly as the “Baby Boomer” generation ages; and

Whereas, Nursing schools across the United States are struggling to expand capacity to meet the rising demand for care; and

Whereas, In 2018, the American Journal of Medical Quality published an article titled “United States Registered Nurse Workforce Report Card and Shortage Forecast: A Revisit” that predicts an increasing shortage of registered nurses across the country through the year 2030; and

Whereas, The COVID-19 pandemic exacerbated the shortage of nurses, and ongoing issues related to insufficient staffing are raising the stress level of nurses, impacting job satisfaction and resulting in many nurses leaving the profession; and

Whereas, The Nevada Hospital Association has reported that this State is short more than 7,500 nurses; and

Whereas, This State and its health care system are vulnerable when hospital beds and health care services are threatened due to the nursing shortage in the State; and

Whereas, The shortage of nurses in this State will continue to grow absent a concerted effort by policy makers to increase the number of registered nurses; and

Whereas, Increasing the number of nurses in this State will require targeted investments in nursing programs within the Nevada System of Higher Education; and

Whereas, Targeted funding for public nursing programs can help to address the shortage of faculty, clinical instructors and preceptors in nursing programs within the Nevada System of Higher Education; and

Whereas, Additional funding can address inadequate equipment and resources in nursing programs within the Nevada System of Higher Education which is necessary to increase the capacity of such programs; now, therefore,

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ê2023 Statutes of Nevada, Page 2542 (CHAPTER 421, SB 375)ê

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. 1. There is hereby appropriated from the State General Fund to the Nevada System of Higher Education for a grant program to expand undergraduate and graduate nursing programs at institutions within the Nevada System of Higher Education the following sums:

For the Fiscal Year 2023-2024.............................................. $10,000,000

For the Fiscal Year 2024-2025.............................................. $10,000,000

2. The Board of Regents of the University of Nevada shall develop and implement a grant program to award grants from the money appropriated by subsection 1 to institutions within the Nevada System of Higher Education to expand the undergraduate and graduate nursing programs at such institutions.

3. The grants awarded pursuant to subsection 2:

(a) May be used only for operating costs associated with expanding undergraduate and graduate nursing programs at the institution receiving the grant, including, without limitation, costs related to faculty, staff and equipment; and

(b) Must not be used for capital expenditures, including, without limitation, the construction of new facilities.

4. The sums appropriated by subsection 1 are available for either fiscal year. Any remaining balance of those sums must not be committed for expenditure after June 30, 2025, by the entity to which the appropriation is made or any entity to which money from the appropriation is granted or otherwise transferred in any manner, and any portion of the appropriated money remaining must not be spent for any purpose after September 19, 2025, by either the entity to which the money was appropriated or the entity to which the money was subsequently granted or transferred, and must be reverted to the State General Fund on or before September 19, 2025.

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

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ê2023 Statutes of Nevada, Page 2543ê

CHAPTER 422, SB 225

Senate Bill No. 225–Senator D. Harris

Joint Sponsor: Assemblywoman Summers-Armstrong

CHAPTER 422

[Approved: June 14, 2023]

AN ACT relating to peace officers; revising provisions relating to the required contents of an application for certification as a peace officer; requiring a law enforcement agency to provide to the Peace Officers’ Standards and Training Commission certain notice and information concerning peace officers employed by the agency; prohibiting a law enforcement agency from requiring a peace officer to make certain attestations concerning cannabis as a condition precedent to employment; prescribing requirements for certain standards adopted by regulation of the Commission; disqualifying certain persons from serving as peace officers; requiring the Executive Director of the Commission to report certain information to the National Decertification Index of the International Association of Directors of Law Enforcement Standards and Training or an equivalent database; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

Existing law sets forth provisions governing peace officers and creates the Peace Officers’ Standards and Training Commission, which generally provides for the training, education and certification of peace officers. (Chapter 289 of NRS) Existing law requires an application for certification as a peace officer to include the social security number of the applicant and a statement regarding the payment of child support. (NRS 289.560, 289.570) Section 2 of this bill additionally requires an application for certification as a peace officer to include an affidavit stating that the applicant: (1) is not disqualified from serving as a peace officer; (2) has not been discharged, disciplined or asked to resign from employment with a law enforcement agency for certain conduct; and (3) has not resigned from employment or otherwise separated from employment with a law enforcement agency while an investigation concerning certain alleged conduct was pending. Section 2 also requires the Commission to: (1) deny an application for certification that does not include the required affidavit; and (2) search the National Decertification Index of the International Association of Directors of Law Enforcement Standards and Training, or an equivalent database, to ensure that the name of the applicant does not appear in any such index or database. Section 6 of this bill makes a conforming change to indicate the proper placement of sections 2 and 3 of this bill in the Nevada Revised Statutes.

Section 3 requires a law enforcement agency to immediately notify the Commission if a peace officer employed by the agency: (1) is charged with certain crimes; or (2) resigns from employment or otherwise separates from employment with the agency while an investigation concerning alleged misconduct is pending. Section 3 also requires a law enforcement agency to provide certain information to the Commission concerning a peace officer who resigns or otherwise separates from employment with the agency while an investigation concerning alleged misconduct is pending.

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ê2023 Statutes of Nevada, Page 2544 (CHAPTER 422, SB 225)ê

With certain exceptions, existing law prohibits a law enforcement agency from requiring a peace officer to disclose certain information as a condition precedent to a promotion, job assignment or other personnel action. (NRS 289.030) Section 5 of this bill additionally prohibits a law enforcement agency from requiring a peace officer to provide an oral or written attestation concerning any use of cannabis by the peace officer that occurred before the peace officer submitted his or her application for employment with the law enforcement agency as a condition precedent to employment as a peace officer.

Existing law requires the Commission to adopt regulations establishing minimum standards for the certification and decertification, recruitment, selection and training of peace officers. (NRS 289.510) Section 7 of this bill provides that the standards prescribed by regulations adopted by the Commission: (1) must not prohibit the certification of an applicant solely on the basis that the applicant has engaged in the adult use of cannabis or the medical use of cannabis; (2) must not require the decertification of a peace officer solely on the basis that the peace officer has engaged in the adult use of cannabis or the medical use of cannabis; and (3) must require the decertification of a peace officer upon a determination by the Commission that the peace officer knowingly provided false or misleading information in his or her application for certification. Section 7 also makes conforming changes to reorganize certain provisions relating to regulations adopted by the Commission. Section 4 of this bill defines certain terms for the purposes of certain requirements relating to cannabis prescribed by sections 5 and 7.

Existing law provides that a person who has been convicted of a felony in this State or any other state is not qualified to serve as a peace officer. (NRS 289.555) Section 9 of this bill makes this prohibition applicable regardless of whether the person has had the conviction expunged or sealed. Section 9 also provides that a person is not qualified to serve as a peace officer if the person has been: (1) convicted of domestic violence in this State or any other state, regardless of whether such a conviction was sealed or expunged; (2) reported to the National Decertification Index or an equivalent database; or (3) decertified or has had his or her certificate or license to practice or serve as a peace officer revoked or annulled by the Commission or a certifying or licensing authority in any other state.

Existing law requires the Commission to appoint an Executive Director of the Commission and authorizes the Executive Director to perform certain acts relating to the certification of peace officers. (NRS 289.520, 289.530) Section 8 of this bill requires the Executive Director to report to the National Decertification Index or an equivalent database: (1) the name of each decertified peace officer; and (2) any other information required by the Index or database, as applicable.

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 289 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.

Sec. 2. 1. An application for certification as a peace officer must include an affidavit stating that the applicant:

(a) Is not disqualified from serving as a peace officer pursuant to NRS 289.555;

(b) Has not been discharged, disciplined or asked to resign from employment with a law enforcement agency in this State or any other state for conduct which would, under the regulations adopted by the Commission pursuant to NRS 289.510, constitute grounds for denying certification or revoking the certificate of a peace officer; and

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ê2023 Statutes of Nevada, Page 2545 (CHAPTER 422, SB 225)ê

(c) Has not resigned from employment or otherwise separated from employment with a law enforcement agency in this State or any other state while an investigation concerning allegations of conduct which would, under the regulations adopted by the Commission pursuant to NRS 289.510, constitute grounds for denying certification or revoking the certificate of a peace officer, was pending.

2. The Commission shall summarily deny any application for certification as a peace officer if the application does not include the affidavit required by subsection 1.

3. The Commission shall, for each applicant for certification as a peace officer, search the National Decertification Index of the International Association of Directors of Law Enforcement Standards and Training, or an equivalent database maintained for the purpose of serving as a national registry of certificate or license revocation actions relating to peace officer misconduct, to ensure that the name of the applicant does not appear in any such index or database.

Sec. 3. A law enforcement agency shall:

1. Immediately notify the Commission if a peace officer employed by the agency:

(a) Is charged with a crime for which the regulations adopted by the Commission pursuant to NRS 289.510 authorize the Commission to revoke or suspend the certificate of the peace officer; or

(b) Resigns from employment or otherwise separates from employment with the agency while an investigation concerning alleged misconduct is pending; and

2. If a peace officer resigns or otherwise separates from employment while an investigation concerning alleged misconduct is pending, provide to the Commission a written summary of the outcome of the investigation as soon as practicable after completing the investigation.

Sec. 4. NRS 289.010 is hereby amended to read as follows:

289.010 As used in this chapter, unless the context otherwise requires:

1. “Administrative file” means any file of a peace officer containing information, comments or documents about the peace officer. The term does not include any file relating to an investigation conducted pursuant to NRS 289.057 or a criminal investigation of a peace officer.

2. “Adult use of cannabis” has the meaning ascribed to it in NRS 678A.075.

3. “Law enforcement agency” means any agency, office, bureau, department, unit or division created by any statute, ordinance or rule which:

(a) Has a duty to enforce the law; and

(b) Employs any person upon whom some or all of the powers of a peace officer are conferred pursuant to NRS 289.150 to 289.360, inclusive.

[3.] 4. “Medical use of cannabis” has the meaning ascribed to it in NRS 678A.215.

5. “Peace officer” means any person upon whom some or all of the powers of a peace officer are conferred pursuant to NRS 289.150 to 289.360, inclusive.

[4.] 6. “Punitive action” means any action which may lead to dismissal, demotion, suspension, reduction in salary, written reprimand or transfer of a peace officer for purposes of punishment.

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ê2023 Statutes of Nevada, Page 2546 (CHAPTER 422, SB 225)ê

7. “Screening test” means a test of a person’s blood, urine, hair or saliva to detect the general presence of a controlled substance or other drug.

Sec. 5. NRS 289.030 is hereby amended to read as follows:

289.030 1. A law enforcement agency shall not require any peace officer to [disclose] :

(a) Disclose the peace officer’s assets, debts, sources of income or other financial information or make such a disclosure a condition precedent to a promotion, job assignment or other personnel action unless that information is necessary to:

[1.] (1) Determine the peace officer’s credentials for transfer to a specialized unit;

[2.] (2) Prevent any conflict of interest which may result in any new assignment; or

[3.] (3) Determine whether the peace officer is engaged in unlawful activity.

(b) Provide an oral or written attestation concerning any use of cannabis by the peace officer that occurred before the peace officer submitted his or her application for employment with the law enforcement agency as a condition precedent to employment with the agency as a peace officer.

2. Nothing in this section shall be construed to prohibit a law enforcement agency from:

(a) Requiring a peace officer to provide an oral or written attestation concerning any use of cannabis by the peace officer that has occurred after the submission of his or her application for employment with the law enforcement agency as a condition precedent to employment with the agency as a peace officer; or

(b) Adopting a policy that requires a peace officer to submit to a screening test as:

(1) A condition precedent to employment; or

(2) A condition for continued employment.

3. As used in this section, “use of cannabis” includes the adult use of cannabis and the medical use of cannabis.

Sec. 6. NRS 289.450 is hereby amended to read as follows:

289.450 As used in NRS 289.450 to 289.680, inclusive, and sections 2 and 3 of this act, unless the context otherwise requires, the words and terms defined in NRS 289.460 to 289.490, inclusive, have the meanings ascribed to them in those sections.

Sec. 7. NRS 289.510 is hereby amended to read as follows:

289.510 1. The Commission:

(a) Shall meet at the call of the Chair, who must be elected by a majority vote of the members of the Commission.

(b) Shall provide for and encourage the training and education of persons whose primary duty is law enforcement to ensure the safety of the residents of and visitors to this State.

(c) [Shall adopt regulations establishing minimum standards for the certification and decertification, recruitment, selection and training of peace officers. The regulations must establish:

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ê2023 Statutes of Nevada, Page 2547 (CHAPTER 422, SB 225)ê

(1) Requirements for evaluations to be conducted during the recruitment and selection of peace officers, which must identify implicit bias on the part of a peace officer on the basis of race, color, religion, national origin, physical or mental disability, sexual orientation or gender identity or expression;

(2) Requirements for basic training for category I, category II and category III peace officers and reserve peace officers;

(3) Standards for programs for the continuing education of peace officers, including minimum courses of study and requirements concerning attendance, which must require that all peace officers annually complete not less than 12 hours of continuing education in courses that address:

(I) Racial profiling;

(II) Mental health, including, without limitation, crisis intervention;

(III) The well-being of officers;

(IV) Implicit bias recognition;

(V) De-escalation;

(VI) Human trafficking; and

(VII) Firearms.

(4) Qualifications for instructors of peace officers;

(5) Requirements for the certification of a course of training; and

(6) Standards for an annual behavioral wellness visit for peace officers to aid in preserving the emotional and mental health of the peace officer and assessing conditions that may affect the performance of duties by the peace officer.

(d) Shall, when necessary, present courses of training and continuing education courses for category I, category II and category III peace officers and reserve peace officers.

(e)] May make necessary inquiries to determine whether the agencies of this State and of the local governments are complying with standards set forth in [its] the regulations [.] adopted pursuant to subsection 2.

[(f)] (d) Shall carry out the duties required of the Commission pursuant to NRS 432B.610 and 432B.620.

[(g)] (e) May perform any other acts that may be necessary and appropriate to the functions of the Commission as set forth in NRS 289.450 to 289.680, inclusive [.] , and sections 2 and 3 of this act.

[(h)] (f) May enter into an interlocal agreement with an Indian tribe to provide training to and certification of persons employed as police officers by that Indian tribe.

[(i)] (g) Shall develop and approve a standard curriculum of certified training programs in crisis intervention, which may be made available in an electronic format, and which address specialized responses to persons with mental illness and train peace officers to identify the signs and symptoms of mental illness, to de-escalate situations involving persons who appear to be experiencing a behavioral health crisis and, if appropriate, to connect such persons to treatment. A peace officer who completes any program developed pursuant to this paragraph must be issued a certificate of completion.

2. [Regulations] The Commission shall adopt regulations establishing minimum standards for:

(a) The certification and decertification, recruitment, selection and training of peace officers. The standards adopted pursuant to this paragraph must:

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ê2023 Statutes of Nevada, Page 2548 (CHAPTER 422, SB 225)ê

(1) Establish requirements for evaluations to be conducted during the recruitment and selection of peace officers, which must identify implicit bias on the part of a peace officer on the basis of race, color, religion, national origin, physical or mental disability, sexual orientation or gender identity or expression;

(2) Establish requirements for basic training for category I, category II and category III peace officers and reserve peace officers;

(3) Establish standards for programs for the continuing education of peace officers, including minimum courses of study and requirements concerning attendance, which must require that all peace officers annually complete not less than 12 hours of continuing education in courses that address:

(I) Racial profiling;

(II) Mental health, including, without limitation, crisis intervention;

(III) The well-being of officers;

(IV) Implicit bias recognition;

(V) De-escalation;

(VI) Human trafficking; and

(VII) Firearms;

(4) Establish qualifications for instructors of peace officers;

(5) Establish requirements for the certification of a course of training;

(6) Require all peace officers to receive training in the handling of cases involving abuse or neglect of children or missing children;

(7) Require all peace officers to receive training in the handling of cases involving abuse, neglect, exploitation, isolation and abandonment of older persons or vulnerable persons;

(8) Not prohibit the certification of an applicant solely on the basis that the applicant has engaged in the adult use of cannabis or the medical use of cannabis;

(9) Not require the decertification of a peace officer solely on the basis that the peace officer has engaged in the adult use of cannabis or the medical use of cannabis; and

(10) Require the decertification of a peace officer upon a determination by the Commission that the peace officer knowingly provided false or misleading information in his or her application for certification.

(b) An annual behavioral wellness visit for peace officers to aid in preserving the emotional and mental health of the peace officer and assessing any conditions that may affect the performance of duties by the peace officer.

3. The regulations adopted by the Commission [:] pursuant to subsection 2:

(a) Apply to all agencies of this State and of local governments in this State that employ persons as peace officers; and

(b) [Must require that all peace officers receive training in the handling of cases involving abuse or neglect of children or missing children;

(c) Must require that all peace officers receive training in the handling of cases involving abuse, neglect, exploitation, isolation and abandonment of older persons or vulnerable persons; and

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ê2023 Statutes of Nevada, Page 2549 (CHAPTER 422, SB 225)ê

(d)] May require that training be carried on at institutions which it approves in those regulations.

4. Nothing in this section shall be construed to prohibit a law enforcement agency from adopting a policy that requires a peace officer to submit to a screening test as:

(a) A condition precedent to employment; or

(b) A condition for continued employment.

Sec. 8. NRS 289.530 is hereby amended to read as follows:

289.530 1. With the advice of the Commission, the Executive Director of the Commission may:

[1.] (a) Appoint employees, agents, consultants and other staff of the Commission and prescribe their duties;

[2.] (b) Administer and direct the daily operation of the staff and resources of the Commission;

[3.] (c) Inspect academies for training peace officers, and issue and revoke certificates of approval to such academies;

[4.] (d) Certify qualified instructors for approved courses of training for peace officers and issue appropriate certificates to instructors;

[5.] (e) Certify peace officers who have satisfactorily completed courses of training for peace officers and issue basic, intermediate, advanced and management professional certificates to peace officers;

[6.] (f) Make recommendations to the Commission concerning the issuance of executive certificates;

[7.] (g) Cause annual audits to be made relating to the operation of academies for training peace officers;

[8.] (h) Consult and cooperate with academies for training peace officers concerning the development of the basic and advanced training programs for peace officers;

[9.] (i) Consult and cooperate with academies for training peace officers concerning the development of specialized courses of study in this State for peace officers in the areas of police science, police administration, corrections, probation, the social sciences and other related areas;

[10.] (j) Consult and cooperate with other departments and agencies of this State and of local governments concerning the training of peace officers;

[11.] (k) Report to the Commission at the regular meetings of the Commission and at such other times as the Commission may require, and recommend the denial, suspension or revocation of certification of a peace officer to the Commission as deemed necessary;

[12.] (l) Execute contracts on behalf of the Commission; and

[13.] (m) Perform any other acts necessary and appropriate to the carrying out of the duties of the Executive Director of the Commission.

2. The Executive Director of the Commission shall, as soon as reasonably practicable after revoking the certification of a peace officer, report to the National Decertification Index of the International Association of Directors of Law Enforcement Standards and Training or an equivalent database maintained for the purpose of serving as a national registry of certificate or license revocation actions relating to peace officer misconduct:

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ê2023 Statutes of Nevada, Page 2550 (CHAPTER 422, SB 225)ê

(a) The name of the decertified peace officer; and

(b) Any other information possessed by the Commission and required by the Index or database, as applicable.

Sec. 9. NRS 289.555 is hereby amended to read as follows:

289.555 A person [who has been convicted of a felony in this State or any other state] is not qualified to serve as a category I peace officer, category II peace officer or category III peace officer , regardless of whether the person has [been] had his or her civil rights restored [to] , if the [person’s civil rights.] person has been:

1. Convicted of:

(a) A felony in this State or any other state, regardless of whether such a conviction was expunged or sealed;

(b) A battery which constitutes domestic violence pursuant to NRS 200.485, regardless of whether such a conviction was expunged or sealed; or

(c) A misdemeanor crime of domestic violence, as defined in 18 U.S.C. § 921(a)(33), in any other state, regardless of whether such a conviction was expunged or sealed.

2. Reported to the National Decertification Index of the International Association of Directors of Law Enforcement and Training or an equivalent database maintained for the purpose of serving as a national registry of certificate or license revocation actions relating to peace officer misconduct.

3. Decertified or has had his or her certificate or license to practice or serve as a peace officer revoked or annulled by:

(a) The Commission; or

(b) A certifying or licensing authority in any other state.

Sec. 10. 1. This section becomes effective upon passage and approval.

2. Sections 1 to 9, inclusive, of this act become effective:

(a) Upon passage and approval for the purpose of adopting any regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act; and

(b) On October 1, 2023, for all other purposes.

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ê2023 Statutes of Nevada, Page 2551ê

CHAPTER 423, SB 277

Senate Bill No. 277–Senators D. Harris; Flores, Neal and Nguyen

CHAPTER 423

[Approved: June 14, 2023]

AN ACT relating to cannabis; revising provisions relating to cannabis establishment agents; requiring the Cannabis Compliance Board to consider certain matters before adopting, amending or repealing any regulation; revising provisions relating to the issuance and renewal of licenses and registration cards by the Board; revising certain restrictions on sales of cannabis; requiring the Board to develop and implement a process by which a person may petition for an exemption from certain provisions related to excluded felony offenses; decreasing certain fees for the issuance and renewal of an adult-use cannabis establishment license; authorizing cannabis establishments to have more than one entrance; deeming each adult-use cannabis establishment to be a dual licensee; revising the exemption from state prosecution for certain offenses relating to cannabis to increase the amount of cannabis and concentrated cannabis that a person who is 21 years of age or older is authorized to possess, deliver or produce; authorizing certain local governments to use money collected from a licensing tax on cannabis establishments for certain purposes; revising provisions relating to the excise tax on cannabis; revising the definition of the term “marijuana”; requiring the Cannabis Advisory Commission to conduct a study concerning certain matters relating to the scheduling of cannabis; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

Existing law provides for the licensure and regulation of persons and establishments involved in the cannabis industry in this State by the Cannabis Compliance Board. (Title 56 of NRS) Existing law sets forth the method by which the Board may adopt, amend or repeal regulations. (NRS 678A.460) Section 1.5 of this bill requires the Board, before adopting, amending or repealing any regulation, to consider whether the proposed action is likely to have an adverse effect on the environment and, if so, whether there are any methods to reduce or eliminate that adverse effect which would not impose an economic burden on holders of an adult-use cannabis establishment license or medical cannabis establishment license.

Existing law establishes different requirements for the cultivation, production and sale of cannabis and cannabis products depending upon whether the cannabis establishment engaging in such activities is an adult-use cannabis establishment or a medical cannabis establishment. (Chapters 678C and 678D of NRS) Under existing law, a person who holds both an adult-use cannabis establishment license and a medical cannabis establishment license of the same type is a “dual licensee” and is, in general, authorized to combine the operations of the adult-use cannabis establishment and medical cannabis establishment, subject to various requirements. (NRS 678A.145, 678C.410, 678C.430, 678D.430) Section 13 of this bill deems each adult-use cannabis establishment to be a dual licensee and authorizes the establishment to engage in activities relating to the medical use of cannabis to the same extent as if the adult-use cannabis establishment held a medical cannabis establishment license of the same type. Section 15 of this bill exempts from the excise tax imposed on retail sales of cannabis or cannabis products by an adult-use cannabis retail store any sale of cannabis for the medical use of cannabis or a medical cannabis product to the holder of a registry identification card or letter of approval by an adult-use cannabis retail store deemed to be a dual licensee pursuant to section 13.

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ê2023 Statutes of Nevada, Page 2552 (CHAPTER 423, SB 277)ê

Sections 3, 5 and 6 of this bill prohibit the Board from issuing or renewing a medical cannabis establishment license on or after January 1, 2024, unless the medical cannabis establishment is located in a local governmental jurisdiction that is a “covered jurisdiction,” which section 3 defines to mean a local governmental jurisdiction that has adopted local cannabis control measures which prohibit the operation of adult-use cannabis establishments. Section 17 of this bill sets forth a process by which a person who holds a medical cannabis establishment license on January 1, 2024, for a medical cannabis establishment that is not located in a covered jurisdiction may apply for and be issued an adult-use cannabis establishment license of the same type. Section 3 sets forth a similar process to allow a person who holds a medical cannabis establishment license for a medical cannabis establishment that is located in a covered jurisdiction to apply for and be issued an adult-use cannabis establishment license of the same type if the local governmental jurisdiction in which the establishment is located ceases to be a covered jurisdiction.

Existing law imposes limits on the number of: (1) medical cannabis establishment licenses for medical cannabis dispensaries and adult-use cannabis establishment licenses for adult-use cannabis retail stores that the Board is authorized to issue within a county; and (2) medical cannabis establishment licenses and adult-use cannabis establishment licenses that a single person, group of persons or entity is authorized to hold in a county whose population is 100,000 or more (currently Clark and Washoe Counties). (NRS 678B.220, 678B.230, 678B.260, 678B.270) Sections 3 and 17 deem an adult-use cannabis establishment license issued pursuant to those sections to be a medical cannabis establishment license for the purpose of those limitations, thereby exempting such a license from the limitations applicable to adult-use cannabis establishment licenses while continuing to subject such licenses to the limitations applicable to medical cannabis establishment licenses.

Section 10 of this bill decreases the maximum amount of the fees that the Board is authorized to charge for the issuance or renewal of an adult-use cannabis establishment license, other than the fee for the initial issuance of an adult-use cannabis establishment license for an adult-use cannabis retail store, to an amount that is equal to the amount set forth under existing law for the issuance or renewal, as applicable, of a medical cannabis establishment license of the same type.

Existing law requires a cannabis establishment that is: (1) a cannabis sales facility to have a single secure entrance for patrons; and (2) not a cannabis sales facility to have a single secure entrance. (NRS 678B.510) Section 11 of this bill authorizes any cannabis establishment to have more than one entrance so long as each entrance is secure.

Existing law provides an exemption from state prosecution for the possession, delivery and production of cannabis for: (1) a person who holds a valid registry identification card or letter of approval; and (2) a person who is 21 years of age or older. (NRS 678C.200, 678D.200) However, under existing law, that exemption is subject to certain limitations. For a person who is 21 years of age or older, that exemption applies only to the extent that the person does not, at any one time, possess, deliver or produce more than: (1) one ounce of usable cannabis; (2) one-eighth of an ounce of concentrated cannabis; (3) six cannabis plants; and (4) a maximum allowable quantity of adult-use cannabis products established by regulation of the Board. (NRS 678D.200) Section 14 of this bill increases the amount of usable cannabis, from 1 ounce to 2.5 ounces, and the amount of concentrated cannabis, from one-eighth of an ounce to one-fourth of an ounce, that a person who is 21 years of age or older is authorized to possess, deliver or produce at any one time and remain subject to the exemption from state prosecution for the possession, delivery and production of cannabis.

Existing law prohibits a medical cannabis dispensary from selling to a person more than 1 ounce of cannabis in any one transaction. (NRS 678C.440) Existing regulations of the Board prohibit any cannabis sales facility from selling to any consumer an amount of cannabis or cannabis products which exceeds: (1) one ounce of usable cannabis; (2) one-eighth of an ounce of concentrated cannabis or cannabis products containing not more than 3,543 milligrams of THC; or (3) a combination of usable and concentrated cannabis not to exceed the legal limit.

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ê2023 Statutes of Nevada, Page 2553 (CHAPTER 423, SB 277)ê

usable and concentrated cannabis not to exceed the legal limit. (Nev. Cannabis Compliance Bd. Regs. § 7.025) Section 12 of this bill eliminates provisions prohibiting a medical cannabis dispensary from selling to a person more than 1 ounce of cannabis in any one transaction. Section 4 of this bill instead prohibits any cannabis sales facility from selling to a person in any one transaction more than 2.5 ounces of usable cannabis or one-fourth of an ounce of concentrated cannabis.

Existing law prohibits the Board from issuing a: (1) medical cannabis establishment license or adult-use cannabis establishment license if any of the persons proposed to be owners, officers or board members of the proposed medical or adult-use cannabis establishment have been convicted of an excluded felony offense; and (2) cannabis establishment agent registration card if the applicant for the registration card has been convicted of an excluded felony offense. (NRS 678B.210, 678B.250, 678B.340) Section 4.5 of this bill requires the Board to develop and implement a process by which a person who has been convicted of an excluded felony offense may submit to the Board a petition for an exemption from those prohibitions. Section 4.5 authorizes the Board to: (1) grant the exemption only if the Board determines that doing so would not pose a threat to the public health or safety or negatively impact the cannabis industry in this State; and (2) impose any conditions and limitations on the granting of an exemption that the Board determines necessary to preserve the public health and safety or mitigate the impact of granting the exemption on the cannabis industry in this State. Section 4.5 requires the Board to adopt regulations to carry out the provisions of section 4.5. Sections 5, 7 and 8 of this bill revise provisions setting forth the prohibitions concerning excluded felony offenses to reflect the authorization provided in section 4.5 for the Board to grant an exemption from those prohibitions.

Existing law requires a person who holds an ownership interest of less than 5 percent in a cannabis establishment to register with the Board as a cannabis establishment agent and obtain a cannabis establishment agent registration card. (NRS 678B.340) Section 8 of this bill eliminates that requirement. Section 1 of this bill eliminates provisions authorizing the Board to adopt regulations establishing policies and procedures pursuant to which the Board may waive the requirement for a person who holds an ownership interest in a cannabis establishment of less than 5 percent to reflect the elimination of that requirement in section 8.

Existing law authorizes the board of county commissioners of a county and the governing body of an incorporated city to fix, impose and collect a license tax on cannabis establishments. (NRS 244.35253, 268.0977) Sections 14.3 and 14.6 of this bill authorize the board of county commissioners of a county and the governing body of an incorporated city to use any portion of any money collected from that license tax to educate the public on safely purchasing cannabis and cannabis products from licensed cannabis establishments and the safe consumption of cannabis products.

Existing law defines “marijuana” for the purposes of the regulation of controlled substances. (NRS 453.096) Section 15.5 of this bill excludes from the definition of “marijuana”: (1) root balls which have been fully separated from the stalks of the plant of the genus Cannabis after harvest; and (2) the seeds of that plant.

Under the federal Controlled Substances Act, cannabis, referred to as “marihuana,” is included in the list of controlled substances in schedule I. (21 U.S.C. § 812) Similarly, existing regulations adopted by the State Board of Pharmacy pursuant to the provisions of the state Uniform Controlled Substances Act include cannabis, referred to as “marijuana,” in the list of controlled substances in schedule I. (NRS 453.011-453.348; NAC 453.510) Section 16 of this bill requires the Cannabis Advisory Commission to conduct a study concerning the potential effects of the removal of cannabis from the list of controlled substances included in schedule I pursuant to the federal Controlled Substances Act or the state Uniform Controlled Substances Act on the cannabis industry in this State.

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ê2023 Statutes of Nevada, Page 2554 (CHAPTER 423, SB 277)ê

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 678A.450 is hereby amended to read as follows:

678A.450 1. The Board may adopt regulations necessary or convenient to carry out the provisions of this title. Such regulations may include, without limitation:

(a) Financial requirements for licensees.

(b) Establishing such investigative and enforcement mechanisms as the Board deems necessary to ensure the compliance of a licensee or registrant with the provisions of this title.

(c) Requirements for licensees or registrants relating to the cultivation, processing, manufacture, transport, distribution, testing, study, advertising and sale of cannabis and cannabis products.

(e) [Policies and procedures governing the circumstances under which the Board may waive the requirement to obtain a registration card pursuant to this title for any person who holds an ownership interest of less than 5 percent in any one cannabis establishment or an ownership interest in more than one cannabis establishment of the same type that, when added together, is less than 5 percent.

(f)] Reasonable restrictions on the signage, marketing, display and advertising of cannabis establishments. Such a restriction must not require a cannabis establishment to obtain the approval of the Board before using a logo, sign or advertisement.

[(g)] (f) Provisions governing the sales of products and commodities made from hemp, as defined in NRS 557.160, or containing cannabidiol by cannabis establishments.

[(h)] (g) Requirements relating to the packaging and labeling of cannabis and cannabis products.

(a) Owner and manager of a cannabis establishment.

(b) Holder of a cannabis establishment agent registration card.

3. The Board shall transmit the information gathered and maintained pursuant to subsection 2 to the Director of the Legislative Counsel Bureau for transmission to the Legislature on or before January 1 of each odd-numbered year.

4. The Board shall, by regulation, establish a pilot program for identifying opportunities for an emerging small cannabis business to participate in the cannabis industry. As used in this subsection, “emerging small cannabis business” means a cannabis-related business that:

(a) Is in existence, operational and operated for a profit;

(b) Maintains its principal place of business in this State; and

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ê2023 Statutes of Nevada, Page 2555 (CHAPTER 423, SB 277)ê

Sec. 1.5. NRS 678A.460 is hereby amended to read as follows:

678A.460 1. The Board shall adopt, amend and repeal regulations in accordance with the following procedures:

(a) At least 30 days before a meeting of the Board at which the adoption, amendment or repeal of a regulation is considered, notice of the proposed action must be:

(1) Posted on the Internet website of the Board;

(2) Mailed to every person who has filed a request therefor with the Board; and

(3) When the Board deems advisable, mailed to any person whom the Board believes would be interested in the proposed action, and published in such additional form and manner as the Board prescribes.

(b) The notice of proposed adoption, amendment or repeal must include:

(1) A statement of the time, place and nature of the proceedings for adoption, amendment or repeal;

(2) Reference to the authority under which the action is proposed; and

(3) Either the express terms or an informative summary of the proposed action.

(c) On the date and at the time and place designated in the notice, the Board shall afford any interested person or his or her authorized representative, or both, the opportunity to present statements, arguments or contentions in writing, with or without opportunity to present them orally. [The Board shall consider all relevant matter presented to it before adopting, amending or repealing any regulation.]

(d) Before adopting, amending or repealing any regulation, the Board shall consider:

(1) Whether the proposed action is likely to have an adverse effect on the environment and, if so, whether there are any methods to reduce or eliminate that adverse effect which would not impose an economic burden upon licensees; and

(2) All relevant matter presented to the Board.

(e) Any interested person may file a petition with the Board requesting the adoption, amendment or repeal of a regulation. The petition must state, clearly and concisely:

(1) The substance or nature of the regulation, amendment or repeal requested;

(2) The reasons for the request; and

(3) Reference to the authority of the Board to take the action requested.

Ê Upon receipt of the petition, the Board shall within 45 days deny the request in writing or schedule the matter for action pursuant to this subsection.

2. In emergencies, the Board may summarily adopt, amend or repeal any regulation if:

(a) The Board submits to the Governor:

(1) A written finding that such action is necessary for the immediate preservation of the public peace, health, safety, morals, good order or general welfare; and

(2) A written statement of the facts constituting an emergency;

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ê2023 Statutes of Nevada, Page 2556 (CHAPTER 423, SB 277)ê

(b) The Governor endorses the written finding and written statement described in paragraph (a) by written endorsement at the end of the full text of the written statement and written finding; and

(c) The Board files the written statement and written finding endorsed by the Governor at the same time it adopts, amends or repeals the regulation.

3. In any hearing held pursuant to this section, the Board or its authorized representative may administer oaths or affirmations, and may continue or postpone the hearing from time to time and at such places as it prescribes.

4. The Board shall file a copy of any regulation adopted, amended or repealed by the Board with the Legislative Counsel as soon as practicable after adoption, amendment or repeal. The adoption, amendment or repeal of a regulation by the Board becomes effective upon filing with the Secretary of State. The Board shall not file a regulation with the Secretary of State until 15 days after the date on which the regulation was adopted, amended or repealed by the Board.

5. Upon the request of a Legislator, the Legislative Commission may examine a regulation adopted, amended or repealed by the Board that is not yet effective pursuant to subsection 4 to determine whether the regulation conforms to the statutory authority pursuant to which it was adopted and whether the regulation carries out the intent of the Legislature in granting that authority.

6. Except as otherwise provided in subsection 7, the Legislative Commission shall:

(a) Review the regulation at its next regularly scheduled meeting if the request for examination of the regulation is received more than 10 working days before the meeting; or

(b) Refer the regulation for review to the Subcommittee to Review Regulations appointed pursuant to subsection 6 of NRS 233B.067.

7. If the Board determines that an emergency exists which requires a regulation of the Board for which a Legislator requested an examination pursuant to subsection 5 to become effective before the next meeting of the Legislative Commission is scheduled to be held, the Board may notify the Legislative Counsel in writing of the emergency. Upon receipt of such a notice, the Legislative Counsel shall refer the regulation for review by the Subcommittee to Review Regulations as soon as practicable.

8. If the Legislative Commission, or the Subcommittee to Review Regulations if the regulation was referred to the Subcommittee, approves the regulation, the Legislative Counsel shall notify the Board that the Board may file the regulation with the Secretary of State. If the Commission or the Subcommittee objects to the regulation after determining that:

(a) The regulation does not conform to statutory authority; or

(b) The regulation does not carry out legislative intent,

Ê the Legislative Counsel shall attach to the regulation a written notice of the objection, including, if practicable, a statement of the reasons for the objection, and shall promptly return the regulation to the Board.

9. If the Legislative Commission or the Subcommittee to Review Regulations has objected to a regulation, the Board shall revise the regulation to conform to the statutory authority pursuant to which it was adopted and to carry out the intent of the Legislature in granting that authority and return it to the Legislative Counsel within 60 days after the Board received the written notice of the objection to the regulation pursuant to subsection 8. Upon receipt of the revised regulation, the Legislative Counsel shall resubmit the regulation to the Legislative Commission or the Subcommittee for review.

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ê2023 Statutes of Nevada, Page 2557 (CHAPTER 423, SB 277)ê

the regulation to the Legislative Commission or the Subcommittee for review. If the Legislative Commission or the Subcommittee approves the revised regulation, the Legislative Counsel shall notify the Board that the Board may file the revised regulation with the Secretary of State.

10. If the Legislative Commission or the Subcommittee to Review Regulations objects to the revised regulation, the Legislative Counsel shall attach to the revised regulation a written notice of the objection, including, if practicable, a statement of the reasons for the objection, and shall promptly return the revised regulation to the Board. The Board shall continue to revise the regulation and resubmit it to the Legislative Commission or the Subcommittee within 30 days after the Board receives a written notice of the objection to the revised regulation.

Sec. 2. Chapter 678B of NRS is hereby amended by adding thereto the provisions set forth as sections 3, 4 and 4.5 of this act.

Sec. 3. 1. Except as otherwise provided in this section, the Board shall not, on or after January 1, 2024, issue any additional medical cannabis establishment licenses or renew a medical cannabis establishment license pursuant to NRS 678B.210.

2. The Board may, on or after January 1, 2024:

(a) Issue a medical cannabis establishment license to an applicant pursuant to NRS 678B.210 if the proposed medical cannabis establishment will be located in a local governmental jurisdiction that is a covered jurisdiction.

(b) Renew the medical cannabis establishment license of a medical cannabis establishment pursuant to NRS 678B.210 so long as the local governmental jurisdiction in which the medical cannabis establishment is located is a covered jurisdiction.

3. If a local governmental jurisdiction that is a covered jurisdiction ceases to be a covered jurisdiction, a person who holds a medical cannabis establishment license for a medical cannabis establishment located in the local governmental jurisdiction may, upon expiration of the license, submit an application to the Board for the issuance of an adult-use cannabis establishment license of the same type.

4. An application submitted pursuant to subsection 3 must:

(a) Contain the same information as required for the renewal of a medical cannabis establishment license pursuant to NRS 678B.210; and

(b) Be accompanied by a fee in an amount that is equal to the fee for the renewal of an adult-use cannabis establishment license of the same type as that of the medical cannabis establishment license which has expired, as set forth in NRS 678B.390.

5. If the Board determines that the applicant would have been eligible to renew the medical cannabis establishment license which has expired, the Board shall issue to the applicant an adult-use cannabis establishment license of the same type.

6. Except as otherwise provided in subsection 7, an adult-use cannabis establishment license issued by the Board pursuant to this section shall be deemed to be an adult-use cannabis establishment license issued by the Board pursuant to NRS 678B.250.

7. An adult-use cannabis establishment license issued by the Board pursuant to this section shall be deemed to be medical cannabis establishment license of the same type for the purposes of NRS 678B.220, 678B.230, 678B.260 and 678B.270.

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ê2023 Statutes of Nevada, Page 2558 (CHAPTER 423, SB 277)ê

8. As used in this section:

(a) “Covered jurisdiction” means a local governmental jurisdiction that has adopted local cannabis control measures which prohibit the operation of adult-use cannabis establishments in the local governmental jurisdiction.

(b) “Local governmental jurisdiction” means a city or unincorporated area within a county.

Sec. 4. A cannabis sales facility shall not sell to a person, in any one transaction, more than 2.5 ounces of usable cannabis or more than one-fourth of an ounce of concentrated cannabis.

Sec. 4.5. 1. The Board shall develop and implement a process by which a person who has been convicted of an excluded felony offense may submit to the Board a petition for an exemption from the provisions of:

(a) Paragraph (b) of subsection 3 of NRS 678B.210.

(b) Paragraph (b) of subsection 3 of NRS 678B.250.

2. The Board shall, in accordance with procedures established by the Board by regulation, review and evaluate each petition submitted pursuant to subsection 1 and grant or deny the exemption. The Board shall provide written notice to the petitioner of its decision to grant or deny the exemption.

3. The Board may grant an exemption pursuant to this section only if the Board determines that granting the exemption would not:

(a) Pose a threat to the public health or safety; or

(b) Negatively impact the cannabis industry in this State.

4. The Board may impose any conditions and limitations on the granting of an exemption pursuant to this section as the Board determines necessary to preserve the public health and safety or mitigate the impact of the granting of the exemption on the cannabis industry in this State. Such conditions and limitations may include, without limitation, conditions and limitations on the conduct of the petitioner in the cannabis industry in this State and the cannabis-related activities in which the petitioner is authorized to engage.

5. The Board shall adopt regulations to carry out the provisions of this section.

Sec. 5. NRS 678B.210 is hereby amended to read as follows:

678B.210 1. A person shall not engage in the business of a medical cannabis establishment unless the person holds a medical cannabis establishment license issued by the Board pursuant to this section.

2. A person who wishes to engage in the business of a medical cannabis establishment must submit to the Board an application on a form prescribed by the Board.

3. Except as otherwise provided in NRS 678B.220, 678B.230 and 678B.240, and section 3 of this act, not later than 90 days after receiving an application to engage in the business of a medical cannabis establishment, the Board shall register the medical cannabis establishment and issue a medical cannabis establishment license and a random 20-digit alphanumeric identification number if:

(a) The person who wishes to operate the proposed medical cannabis establishment has submitted to the Board all of the following:

(1) The application fee, as set forth in NRS 678B.390;

(2) An application, which must include:

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ê2023 Statutes of Nevada, Page 2559 (CHAPTER 423, SB 277)ê

(I) The legal name of the proposed medical cannabis establishment;

(II) The physical address where the proposed medical cannabis establishment will be located and the physical address of any co-owned additional or otherwise associated medical cannabis establishments, the locations of which may not be on the property of an airport, within 1,000 feet of a public or private school that provides formal education traditionally associated with preschool or kindergarten through grade 12 and that existed on the date on which the application for the proposed medical cannabis establishment was submitted to the Board, within 300 feet of a community facility that existed on the date on which the application for the proposed medical cannabis establishment was submitted to the Board or, if the proposed medical cannabis establishment will be located in a county whose population is 100,000 or more, within 1,500 feet of an establishment that holds a nonrestricted gaming license described in subsection 1 or 2 of NRS 463.0177 and that existed on the date on which the application for the proposed medical cannabis establishment was submitted to the Board;

(III) Evidence that the applicant controls not less than $250,000 in liquid assets to cover the initial expenses of opening the proposed medical cannabis establishment and complying with the provisions of this title;

(IV) Evidence that the applicant owns the property on which the proposed medical cannabis establishment will be located or has the written permission of the property owner to operate the proposed medical cannabis establishment on that property;

(V) For the applicant and each person who is proposed to be an owner, officer or board member of the proposed medical cannabis establishment, a complete set of the person’s fingerprints and written permission of the person authorizing the Board to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report; and

(VI) The name, address and date of birth of each person who is proposed to be an owner, officer or board member of the proposed medical cannabis establishment;

(3) Operating procedures consistent with rules of the Board for oversight of the proposed medical cannabis establishment, including, without limitation:

(I) Procedures to ensure the use of adequate security measures; and

(II) The use of an electronic verification system and an inventory control system pursuant to NRS 678C.420 and 678C.430;

(4) If the proposed medical cannabis establishment will sell or deliver medical cannabis products, proposed operating procedures for handling such products which must be preapproved by the Board;

(5) If the city or county in which the proposed medical cannabis establishment will be located has enacted zoning restrictions, proof that the proposed location is in compliance with those restrictions and satisfies all applicable building requirements; and

(6) Such other information as the Board may require by regulation;

(b) [None] Except as otherwise provided in section 4.5 of this act, none of the persons who are proposed to be owners, officers or board members of the proposed medical cannabis establishment have been convicted of an excluded felony offense;

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ê2023 Statutes of Nevada, Page 2560 (CHAPTER 423, SB 277)ê

(c) None of the persons who are proposed to be owners, officers or board members of the proposed medical cannabis establishment have:

(1) Served as an owner, officer or board member for a cannabis establishment that has had its medical cannabis establishment license or adult-use cannabis establishment license revoked;

(2) Previously had a cannabis establishment agent registration card revoked;

(3) Previously had a cannabis establishment agent registration card for a cannabis executive revoked; or

(4) Previously had a cannabis establishment agent registration card for a cannabis receiver revoked; and

(d) None of the persons who are proposed to be owners, officers or board members of the proposed medical cannabis establishment are under 21 years of age.

4. For each person who submits an application pursuant to this section, and each person who is proposed to be an owner, officer or board member of a proposed medical cannabis establishment, the Board shall submit the fingerprints of the person to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation to determine the criminal history of that person.

5. Except as otherwise provided in subsection 6 [,] and section 3 of this act, if an application for registration as a medical cannabis establishment satisfies the requirements of this section, is qualified in the determination of the Board pursuant to NRS 678B.200 and the establishment is not disqualified from being registered as a medical cannabis establishment pursuant to this section or other applicable law, the Board shall issue to the establishment a medical cannabis establishment license. A medical cannabis establishment license expires 1 year after the date of issuance and may be renewed upon:

(a) Submission of the information required by the Board by regulation; and

(b) Payment of the renewal fee set forth in NRS 678B.390.

6. In determining whether to issue a medical cannabis establishment license pursuant to this section, the Board shall consider the criteria of merit set forth in NRS 678B.240.

7. For the purposes of sub-subparagraph (II) of subparagraph (2) of paragraph (a) of subsection 3, the distance must be measured from the front door of the proposed medical cannabis establishment to the closest point of the property line of a school, community facility or gaming establishment.

8. As used in this section, “community facility” means:

(a) A facility that provides day care to children.

(b) A public park.

(d) A public swimming pool.

(e) A center or facility, the primary purpose of which is to provide recreational opportunities or services to children or adolescents.

(f) A church, synagogue or other building, structure or place used for religious worship or other religious purpose.

Sec. 6. NRS 678B.220 is hereby amended to read as follows:

678B.220 1. Except as otherwise provided in this section and NRS 678B.230, and section 3 of this act, the Board shall issue medical cannabis establishment licenses for medical cannabis dispensaries in the following quantities for applicants who qualify pursuant to NRS 678B.210:

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ê2023 Statutes of Nevada, Page 2561 (CHAPTER 423, SB 277)ê

(a) In a county whose population is 700,000 or more, 40 licenses;

(b) In a county whose population is 100,000 or more but less than 700,000, 10 licenses;

(d) In each other county, one license; and

(e) For each incorporated city in a county whose population is less than 100,000, one license.

2. The Board:

(a) Shall not issue medical cannabis establishment licenses for medical cannabis dispensaries in such a quantity as to cause the existence within the applicable county of more than one medical cannabis dispensary for every 10 pharmacies that have been licensed in the county pursuant to chapter 639 of NRS. The Board may issue medical cannabis establishment licenses for medical cannabis dispensaries in excess of the ratio otherwise allowed pursuant to this paragraph if doing so is necessary to ensure that the Board issues at least one medical cannabis establishment license in each county of this State and, pursuant to paragraph (e) of subsection 1, each incorporated city of this State in which the Board has approved an application for such an establishment to operate.

(b) Shall, for any county for which no applicants qualify pursuant to NRS 678B.210, within 2 months after the end of the period during which the Board accepts applications pursuant to NRS 678B.300, reallocate the licenses provided for that county pursuant to subsection 1 to the other counties specified in subsection 1 in the same proportion as provided in subsection 1.

3. With respect to medical cannabis establishments that are not medical cannabis dispensaries, the Board shall:

(a) Issue a medical cannabis establishment license to at least one medical cannabis cultivation facility and at least one medical cannabis production facility in each county; and

(b) Determine the appropriate number of additional such establishments in each county as are necessary to serve and supply the medical cannabis dispensaries to which the Board has granted medical cannabis establishment licenses and issue such a number of medical cannabis establishment licenses for such establishments in each county.

Sec. 7. NRS 678B.250 is hereby amended to read as follows:

678B.250 1. A person shall not engage in the business of an adult-use cannabis establishment unless the person holds an adult-use cannabis establishment license issued pursuant to this section.

2. A person who wishes to engage in the business of an adult-use cannabis establishment must submit to the Board an application on a form prescribed by the Board.

3. Except as otherwise provided in NRS 678B.260, 678B.270, 678B.280, 678B.322 and 678B.324 to 678B.328, inclusive, the Board shall issue an adult-use cannabis establishment license to an applicant if:

(a) The person who wishes to operate the proposed adult-use cannabis establishment has submitted to the Board all of the following:

(1) The application fee, as set forth in NRS 678B.390;

(2) An application, which must include:

(I) The legal name of the proposed adult-use cannabis establishment;

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ê2023 Statutes of Nevada, Page 2562 (CHAPTER 423, SB 277)ê

(II) The physical address where the proposed adult-use cannabis establishment will be located and the physical address of any co-owned additional or otherwise associated adult-use cannabis establishments, the locations of which may not be on the property of an airport, within 1,000 feet of a public or private school that provides formal education traditionally associated with preschool or kindergarten through grade 12 and that existed on the date on which the application for the proposed adult-use cannabis establishment was submitted to the Board, within 300 feet of a community facility that existed on the date on which the application for the proposed adult-use cannabis establishment was submitted to the Board or, if the proposed adult-use cannabis establishment will be located in a county whose population is 100,000 or more, within 1,500 feet of an establishment that holds a nonrestricted gaming license described in subsection 1 or 2 of NRS 463.0177 and that existed on the date on which the application for the proposed adult-use cannabis establishment was submitted to the Board;

(III) Evidence that the applicant controls liquid assets in an amount determined by the Board to be sufficient to cover the initial expenses of opening the proposed adult-use cannabis establishment and complying with the provisions of this title;

(IV) Evidence that the applicant owns the property on which the proposed adult-use cannabis establishment will be located or has the written permission of the property owner to operate the proposed adult-use cannabis establishment on that property;

(V) For the applicant and each person who is proposed to be an owner, officer or board member of the proposed adult-use cannabis establishment, a complete set of the person’s fingerprints and written permission of the person authorizing the Board to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report; and

(VI) The name, address and date of birth of each person who is proposed to be an owner, officer or board member of the proposed adult-use cannabis establishment;

(3) Operating procedures consistent with rules of the Board for oversight of the proposed adult-use cannabis establishment, including, without limitation:

(I) Procedures to ensure the use of adequate security measures; and

(II) The use of an inventory control system;

(4) If the proposed adult-use cannabis establishment will sell or deliver adult-use cannabis products, proposed operating procedures for handling such products which must be preapproved by the Board; and

(5) Such other information as the Board may require by regulation;

(b) [None] Except as otherwise provided in section 4.5 of this act, none of the persons who are proposed to be owners, officers or board members of the proposed adult-use cannabis establishment have been convicted of an excluded felony offense;

(c) None of the persons who are proposed to be owners, officers or board members of the proposed adult-use cannabis establishment have:

(1) Served as an owner, officer or board member for a cannabis establishment that has had its adult-use cannabis establishment license or medical cannabis establishment license revoked;

(2) Previously had a cannabis establishment agent registration card revoked;

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ê2023 Statutes of Nevada, Page 2563 (CHAPTER 423, SB 277)ê

(3) Previously had a cannabis establishment agent registration card for a cannabis executive revoked; or

(4) Previously had a cannabis establishment agent registration card for a cannabis receiver revoked; and

(d) None of the persons who are proposed to be owners, officers or board members of the proposed adult-use cannabis establishment are under 21 years of age.

4. For each person who submits an application pursuant to this section, and each person who is proposed to be an owner, officer or board member of a proposed adult-use cannabis establishment, the Board shall submit the fingerprints of the person to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation to determine the criminal history of that person.

5. Except as otherwise provided in subsection 6, if an applicant for licensure to operate an adult-use cannabis establishment satisfies the requirements of this section, is qualified in the determination of the Board pursuant to NRS 678B.200 and is not disqualified from being licensed pursuant to this section or other applicable law, the Board shall issue to the applicant an adult-use cannabis establishment license. An adult-use cannabis establishment license expires 1 year after the date of issuance and may be renewed upon:

(a) Submission of the information required by the Board by regulation; and

(b) Payment of the renewal fee set forth in NRS 678B.390.

6. In determining whether to issue an adult-use cannabis license pursuant to this section, the Board shall consider the criteria of merit and scoring guidelines set forth in NRS 678B.280 or 678B.324, as applicable.

7. For the purposes of sub-subparagraph (II) of subparagraph (2) of paragraph (a) of subsection 3, the distance must be measured from the front door of the proposed adult-use cannabis establishment to the closest point of the property line of a school, community facility or gaming establishment.

8. As used in this section, “community facility” means:

(a) A facility that provides day care to children.

(b) A public park.

(d) A public swimming pool.

(e) A center or facility, the primary purpose of which is to provide recreational opportunities or services to children or adolescents.

(f) A church, synagogue or other building, structure or place used for religious worship or other religious purpose.

Sec. 8. NRS 678B.340 is hereby amended to read as follows:

678B.340 1. [Except as otherwise provided in any policies and procedures adopted by the Board pursuant to paragraph (e) of subsection 1 of NRS 678A.450, a] A person shall not [hold an ownership interest in a cannabis establishment of less than 5 percent,] volunteer or work at, contract to provide labor to or be employed by an independent contractor to provide labor to a cannabis establishment as a cannabis establishment agent unless the person is registered with the Board pursuant to this section.

2. A person who wishes to volunteer or work at a cannabis establishment shall submit to the Board an application on a form prescribed by the Board. The application must be accompanied by:

(a) The name, address and date of birth of the prospective cannabis establishment agent;

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ê2023 Statutes of Nevada, Page 2564 (CHAPTER 423, SB 277)ê

(b) A statement signed by the prospective cannabis establishment agent pledging not to dispense or otherwise divert cannabis to any person who is not authorized to possess cannabis in accordance with the provisions of this title;

(c) A statement signed by the prospective cannabis establishment agent asserting that he or she has not previously had a cannabis establishment agent registration card revoked;

(d) The application fee, as set forth in NRS 678B.390; and

(e) Such other information as the Board may require by regulation.

3. A person who wishes to contract to provide labor to or be employed by an independent contractor to provide labor to a cannabis establishment shall submit to the Board an application on a form prescribed by the Board for the registration of the independent contractor and each employee of the independent contractor who will provide labor as a cannabis establishment agent. The application must be accompanied by:

(a) The name, address and, if the prospective cannabis establishment agent has a state business license, the business identification number assigned by the Secretary of State upon compliance with the provisions of chapter 76 of NRS;

(b) The name, address and date of birth of each employee of the prospective cannabis establishment agent who will provide labor as a cannabis establishment agent;

(c) A statement signed by the prospective cannabis establishment agent pledging not to dispense or otherwise divert cannabis to, or allow any of its employees to dispense or otherwise divert cannabis to, any person who is not authorized to possess cannabis in accordance with the provisions of this title;

(d) A statement signed by the prospective cannabis establishment agent asserting that it has not previously had a cannabis establishment agent registration card revoked and that none of its employees who will provide labor as a cannabis establishment agent have previously had a cannabis establishment agent registration card revoked;

(e) The application fee, as set forth in NRS 678B.390; and

(f) Such other information as the Board may require by regulation.

4. [Except as otherwise provided in any policies and procedures adopted by the Board pursuant to paragraph (e) of subsection 1 of NRS 678A.450, a person who wishes to hold an ownership interest in a cannabis establishment of less than 5 percent shall submit to the Board an application on a form prescribed by the Board. The application must be accompanied by:

(a) The name, address and date of birth of the prospective cannabis establishment agent;

(c) A statement signed by the prospective cannabis establishment agent asserting that he or she has not previously had a cannabis establishment agent registration card revoked;

(d) Any information required by the Board to complete an investigation into the background of the prospective cannabis establishment agent, including, without limitation, financial records and other information relating to the business affairs of the prospective cannabis establishment agent;

(e) The application fee, as set forth in NRS 678B.390; and

(f) Such other information as the Board may require by regulation.

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ê2023 Statutes of Nevada, Page 2565 (CHAPTER 423, SB 277)ê

5.] The Board may conduct any investigation of a prospective cannabis establishment agent and, for an independent contractor, each employee of the prospective cannabis establishment agent who will provide labor as a cannabis establishment agent, that the Board deems appropriate. In connection with such an investigation, the Board may:

(a) Conduct or accept any background check the Board determines to be reliable and expedient to determine the criminal history of the prospective cannabis establishment agent or the employee;

(b) Require a prospective cannabis establishment agent, if a natural person, and each employee of a prospective cannabis establishment agent who will provide labor as a cannabis establishment agent to submit to the Board a complete set of fingerprints and written permission authorizing the Board to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report; and

(c) If the Board imposes the requirement described in paragraph (b), submit the fingerprints of the prospective cannabis establishment agent and each employee of the prospective cannabis establishment agent who will provide labor as a cannabis establishment agent to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report.

[6.] 5. A cannabis establishment shall notify the Board within 10 business days after a cannabis establishment agent ceases to [hold an ownership interest in the cannabis establishment of less than 5 percent,] be employed by, volunteer at or provide labor as a cannabis establishment agent to the cannabis establishment.

[7. A]

6. Except as otherwise provided in section 4.5 of this act, a person who:

(a) Has been convicted of an excluded felony offense;

(b) Is less than 21 years of age; or

Ê shall not serve as a cannabis establishment agent.

[8.] 7. The provisions of this section do not require a person who is an owner, officer or board member of a cannabis establishment to resubmit information already furnished to the Board at the time the establishment was licensed with the Board.

[9.] 8. If an applicant for registration as a cannabis establishment agent satisfies the requirements of this section, is found to be qualified by the Board pursuant to NRS 678B.200 and is not disqualified from serving as such an agent pursuant to this section or any other applicable law, the Board shall issue to the person and, for an independent contractor, to each person identified in the independent contractor’s application for registration as an employee who will provide labor as a cannabis establishment agent, a cannabis establishment agent registration card. If the Board does not act upon an application for a cannabis establishment agent registration card within 45 days after the date on which the application is received, the application shall be deemed conditionally approved until such time as the Board acts upon the application. A cannabis establishment agent registration card expires 2 years after the date of issuance and may be renewed upon:

(a) Resubmission of the information set forth in this section; and

(b) Payment of the renewal fee set forth in NRS 678B.390.

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ê2023 Statutes of Nevada, Page 2566 (CHAPTER 423, SB 277)ê

[10.] 9. A person to whom a cannabis establishment agent registration card is issued or for whom such a registration card is renewed shall submit to the Board on the date of the first anniversary of the issuance or renewal an affidavit attesting that in the preceding year there has been no change in the information previously provided to the Board which would subject the person to disciplinary action by the Board.

[11.] 10. A cannabis establishment agent registration card issued pursuant to this section to an independent contractor or an employee of an independent contractor authorizes the independent contractor or employee to provide labor to any cannabis establishment in this State.

[12.] 11. A cannabis establishment agent registration card issued pursuant to this section to a person who wishes to volunteer or work at a [medical] cannabis establishment authorizes the person to volunteer or work at any cannabis establishment in this State for which the category of the cannabis establishment agent registration card authorizes the person to volunteer or work.

[13.] 12. Except as otherwise prescribed by regulation of the Board, an applicant for registration or renewal of registration as a cannabis establishment agent is deemed temporarily registered as a cannabis establishment agent on the date on which a complete application for registration or renewal of registration is submitted to the Board. A temporary registration as a cannabis establishment agent expires 45 days after the date upon which the application is received.

13. A person who holds an ownership interest of less than 5 percent in a cannabis establishment is not required to obtain a cannabis establishment agent registration card pursuant to this section. The Board may, in connection with the issuance or renewal of a license pursuant to NRS 678B.210 or 678B.250, conduct such investigations of such a person as the Board determines to be necessary.

Sec. 9. (Deleted by amendment.)

Sec. 10. NRS 678B.390 is hereby amended to read as follows:

678B.390 1. Except as otherwise provided in subsection 3, the Board shall collect not more than the following maximum fees:

For the initial issuance of a medical cannabis establishment license for a medical cannabis dispensary...................................................................................................... $30,000

For the renewal of a medical cannabis establishment license for a medical cannabis dispensary 5,000

For the initial issuance of a medical cannabis establishment license for a medical cannabis cultivation facility.............................................................................................. 3,000

For the renewal of a medical cannabis establishment license for a medical cannabis cultivation facility........................................................................................................... 1,000

For the initial issuance of a medical cannabis establishment license for a medical cannabis production facility.............................................................................................. 3,000

For the renewal of a medical cannabis establishment license for a medical cannabis production facility........................................................................................................... 1,000

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ê2023 Statutes of Nevada, Page 2567 (CHAPTER 423, SB 277)ê

For the initial issuance of a medical cannabis establishment license for a medical cannabis independent testing laboratory......................................................................... $5,000

For the renewal of a medical cannabis establishment license for a medical cannabis independent testing laboratory......................................................................................... 3,000

For the initial issuance of an adult-use cannabis establishment license for an adult-use cannabis retail store................................................................................................ 20,000

For the renewal of an adult-use cannabis establishment license for an adult-use cannabis retail store............................................................................................. [6,600] 5,000

For the initial issuance of an adult-use cannabis establishment license for an adult-use cannabis cultivation facility.......................................................... [30,000] 3,000

For the renewal of an adult-use cannabis establishment license for an adult-use cannabis cultivation facility.............................................................................. [10,000] 1,000

For the initial issuance of an adult-use cannabis establishment license for an adult-use cannabis production facility.......................................................... [10,000] 3,000

For the renewal of an adult-use cannabis establishment license for an adult-use cannabis production facility................................................................................ [3,300] 1,000

For the initial issuance of an adult-use cannabis establishment license for an adult-use cannabis independent testing laboratory.................................... [15,000] 5,000

For the renewal of an adult-use cannabis establishment license for an adult-use cannabis independent testing laboratory.............................................................. [5,000] 3,000

For the initial issuance of an adult-use cannabis establishment license for a retail cannabis consumption lounge............................................................................................. 10,000

For the renewal of an adult-use cannabis establishment license for a retail cannabis consumption lounge......................................................................................................... 10,000

For the initial issuance of an adult-use cannabis establishment license for an independent cannabis consumption lounge.................................................................... 10,000

For the renewal of an adult-use cannabis establishment license for an independent cannabis consumption lounge............................................................................................. 10,000

For the initial issuance of an adult-use cannabis establishment license for an adult-use cannabis distributor...................................................................................... 15,000

For the renewal of an adult-use cannabis establishment license for an adult-use cannabis distributor........................................................................................................... 5,000

For each person identified in an application for the initial issuance of a cannabis establishment agent registration card................................................................................. 150

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ê2023 Statutes of Nevada, Page 2568 (CHAPTER 423, SB 277)ê

For each person identified in an application for the renewal of a cannabis establishment agent registration card.................................................................................................... $150

2. The Board may by regulation establish reduced fees for:

(a) The initial issuance and renewal of an adult-use cannabis establishment license for an independent cannabis consumption lounge; and

(b) The application fee set forth in subsection 3,

Ê for a social equity applicant. Such a reduction must not reduce the fee paid by a social equity applicant by more than 75 percent of the fee paid by an applicant who is not a social equity applicant.

3. Except as otherwise provided in subsection 2, in addition to the fees described in subsection 1, each applicant for a medical cannabis establishment license pursuant to NRS 678B.210 or adult-use cannabis establishment license pursuant to NRS 678B.250 must pay to the Board:

(a) For an application for a license other than an adult-use cannabis establishment license for a retail cannabis consumption lounge or independent cannabis consumption lounge, a one-time, nonrefundable application fee of $5,000;

(b) For an application for an adult-use cannabis establishment license for a retail cannabis consumption lounge, a one-time, nonrefundable application fee of $100,000;

(c) For an application for an adult-use cannabis establishment license for an independent cannabis consumption lounge, a one-time, nonrefundable application fee of $10,000; and

(d) The actual costs incurred by the Board in processing the application, including, without limitation, conducting background checks.

4. Any revenue generated from the fees imposed pursuant to this section:

(a) Must be expended first to pay the costs of the Board in carrying out the provisions of this title; and

(b) If any excess revenue remains after paying the costs described in paragraph (a), such excess revenue must be paid over to the State Treasurer to be deposited to the credit of the State Education Fund.

Sec. 11. NRS 678B.510 is hereby amended to read as follows:

678B.510 1. The operating documents of a cannabis establishment must include procedures:

(a) For the oversight of the cannabis establishment; and

(b) To ensure accurate recordkeeping.

2. Except as otherwise provided in this subsection, a cannabis establishment [:

(a) That is a cannabis sales facility must have a single entrance for patrons, which must be secure, and shall implement strict security measures to deter and prevent the theft of cannabis and unauthorized entrance into areas containing cannabis.

(b) That is not a cannabis sales facility must] may have [a single secure] more than one entrance so long as each entrance is secure and shall implement strict security measures to deter and prevent the theft of cannabis and unauthorized entrance into areas containing cannabis.

[Ê] The provisions of this subsection do not supersede any state or local requirements relating to minimum numbers of points of entry or exit, or any state or local requirements relating to fire safety.

3. Except as otherwise provided in NRS 678D.400, all cultivation or production of cannabis that a cannabis cultivation facility carries out or causes to be carried out must take place in an enclosed, locked facility at the physical address provided to the Board during the licensing process for the cannabis cultivation facility.

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ê2023 Statutes of Nevada, Page 2569 (CHAPTER 423, SB 277)ê

causes to be carried out must take place in an enclosed, locked facility at the physical address provided to the Board during the licensing process for the cannabis cultivation facility. Such an enclosed, locked facility must be accessible only by cannabis establishment agents who are lawfully associated with the cannabis cultivation facility, except that limited access by persons necessary to perform construction or repairs or provide other labor is permissible if such persons are supervised by a cannabis establishment agent.

4. A cannabis establishment that is not a cannabis consumption lounge shall not allow any person to consume cannabis on the property or premises of the establishment.

5. Cannabis establishments are subject to reasonable inspection by the Board at any time, and a person who holds a license must make himself or herself, or a designee thereof, available and present for any inspection by the Board of the cannabis establishment.

6. Each cannabis establishment shall install a video monitoring system which must, at a minimum:

(a) Allow for the transmission and storage, by digital or analog means, of a video feed which displays the interior and exterior of the cannabis establishment; and

(b) Be capable of being accessed remotely by a law enforcement agency in real-time upon request.

7. A cannabis establishment shall not dispense or otherwise sell cannabis or cannabis products from a vending machine or allow such a vending machine to be installed at the interior or exterior of the premises of the cannabis establishment. As used in this subsection, “vending machine” has the meaning ascribed to it in NRS 209.229.

Sec. 12. NRS 678C.440 is hereby amended to read as follows:

678C.440 1. Each medical cannabis dispensary shall ensure all of the following:

(a) The weight, concentration and content of THC in all cannabis and cannabis products that the dispensary sells is clearly and accurately stated on the product sold.

(b) [That the dispensary does not sell to a person, in any one transaction, more than 1 ounce of cannabis.

(c)] That, posted clearly and conspicuously within the dispensary, are the legal limits on the possession of cannabis for medical purposes, as set forth in NRS 678C.200.

[(d)] (c) That, posted clearly and conspicuously within the dispensary, is a sign stating unambiguously the legal limits on the possession of cannabis for medical purposes, as set forth in NRS 678C.200.

[(e)] (d) That only persons who are at least 21 years of age or hold a registry identification card or letter of approval are allowed to enter the premises of the medical cannabis dispensary.

2. A medical cannabis dispensary may, but is not required to, track the purchases of cannabis for medical purposes by any person to ensure that the person does not exceed the legal limits on the possession of cannabis for medical purposes, as set forth in NRS 678C.200. The Board shall not adopt a regulation or in any other way require a medical cannabis dispensary to track the purchases of a person or determine whether the person has exceeded the legal limits on the possession of cannabis for medical purposes, as set forth in NRS 678C.200.

3. A medical cannabis dispensary which is a dual licensee may, to the extent authorized by the regulations adopted by the Board pursuant to subsection 7 of NRS 678B.650, allow any person who is at least 21 years of age to enter the premises of the medical cannabis dispensary, regardless of whether such a person holds a valid registry identification card or letter of approval.

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ê2023 Statutes of Nevada, Page 2570 (CHAPTER 423, SB 277)ê

subsection 7 of NRS 678B.650, allow any person who is at least 21 years of age to enter the premises of the medical cannabis dispensary, regardless of whether such a person holds a valid registry identification card or letter of approval.

4. A medical cannabis dispensary shall not sell cannabis or cannabis products to a consumer through the use of, or accept a sale of cannabis or cannabis products from, a third party, intermediary business, broker or any other business that does not hold a medical cannabis establishment license for a medical cannabis dispensary.

5. A medical cannabis dispensary may contract with a third party or intermediary business to deliver cannabis or medical cannabis products to consumers only if:

(a) Every sale of cannabis or cannabis products which is delivered by the third party or intermediary business is made directly from the medical cannabis dispensary or an Internet website, digital network or software application service of the medical cannabis dispensary;

(b) The third party or intermediary business does not advertise that it sells, offers to sell or appears to sell cannabis or cannabis products or allows the submission of an order for cannabis or cannabis products; and

Sec. 13. Chapter 678D of NRS is hereby amended by adding thereto a new section to read as follows:

1. Each adult-use cannabis establishment shall be deemed to be a dual licensee for the purposes of this title and may engage in any activity relating to the medical use of cannabis in the same manner and to the same extent as if the adult-use cannabis establishment also held a medical cannabis establishment license of the same type for which the establishment holds an adult-use cannabis establishment license.

2. An adult-use cannabis establishment that engages in activities involving the medical use of cannabis pursuant to this section shall comply with all provisions of this title and the regulations adopted pursuant thereto applicable to a dual licensee, including, without limitation, any provisions governing the specific activity relating to the medical use of cannabis in which the establishment is engaged.

3. The Board may adopt any regulations necessary to carry out the provisions of this section.

Sec. 14. NRS 678D.200 is hereby amended to read as follows:

678D.200 1. Except as otherwise provided in NRS 678D.300, a person who is 21 years of age or older is exempt from state prosecution for:

(a) The possession, delivery or production of cannabis;

(b) The possession or delivery of paraphernalia;

(d) Aiding and abetting another in the possession or delivery of paraphernalia;

(e) Any combination of the acts described in paragraphs (a) to (d), inclusive; and

(f) Any other criminal offense in which the possession, delivery or production of cannabis or the possession or delivery of paraphernalia is an element.

2. In addition to the provisions of subsections 1 and 5, no person may be subject to state prosecution for constructive possession, conspiracy or any other criminal offense solely for being in the presence or vicinity of the adult use of cannabis in accordance with the provisions of this title.

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ê2023 Statutes of Nevada, Page 2571 (CHAPTER 423, SB 277)ê

other criminal offense solely for being in the presence or vicinity of the adult use of cannabis in accordance with the provisions of this title.

3. The exemption from state prosecution set forth in subsection 1 applies only to the extent that a person:

(a) Is 21 years of age or older;

(b) Is not employed by any agency or political subdivision of this State in a position which requires the person to be certified by the Peace Officers’ Standards and Training Commission;

(d) Does not, at any one time, possess, deliver or produce more than:

(1) [One ounce] Two and one-half ounces of usable cannabis;

(2) [One-eighth] One-fourth of an ounce of concentrated cannabis;

(3) Six cannabis plants, irrespective of whether the cannabis plants are mature or immature; and

(4) A maximum allowable quantity of adult-use cannabis products as established by regulation of the Board;

(e) Cultivates, grows or produces not more than six cannabis plants:

(1) Within an enclosed area that is not exposed to public view that is equipped with locks or other security devices which allow access only by an authorized person; and

(2) At a residence or upon the grounds of a residence in which not more than 12 cannabis plants are cultivated, grown or produced;

(f) Delivers [1 ounce] 2.5 ounces or less of usable cannabis or [one-eighth] one-fourth of an ounce or less of concentrated cannabis without remuneration to a person who is 21 years of age or older so long as such delivery is not advertised or promoted to the public; and

(g) Assists another person who is 21 years of age or older in carrying out any of the acts described in paragraphs (a) to (f), inclusive.

4. If a person possesses, uses or produces cannabis in an amount which exceeds the amount set forth in paragraph (d) of subsection 3 or in any manner other than that set forth in subsection 3, the person is not exempt from state prosecution for the possession, delivery or production of cannabis.

5. A person who holds an adult-use cannabis establishment license issued to the person pursuant to NRS 678B.250, a cannabis establishment agent registration card issued to the person pursuant to NRS 678B.340, a cannabis establishment agent registration card for a cannabis executive issued to the person pursuant to NRS 678B.350 or a cannabis establishment agent registration card for a cannabis receiver issued to the person pursuant to NRS 678B.355, and confines his or her activities to those authorized by this title, and the regulations adopted by the Board pursuant thereto, is exempt from state prosecution for:

(a) The possession, delivery or production of cannabis;

(b) The possession or delivery of paraphernalia;

(d) Aiding and abetting another in the possession or delivery of paraphernalia;

(e) Any combination of the acts described in paragraphs (a) to (d), inclusive; and

(f) Any other criminal offense in which the possession, delivery or production of cannabis or the possession or delivery of paraphernalia is an element.

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ê2023 Statutes of Nevada, Page 2572 (CHAPTER 423, SB 277)ê

6. The commission of any act by a person for which the person is exempt from state prosecution pursuant to this section must not be used as the basis for the seizure or forfeiture of any property of the person or for the imposition of a civil penalty.

Sec. 14.3. NRS 244.35253 is hereby amended to read as follows:

244.35253 1. Except as otherwise provided in this section, a board of county commissioners shall not fix, impose or collect a license tax for revenue or for regulation, or for both revenue and regulation, on a cannabis establishment located in the county.

2. Except as otherwise provided in subsection 3, a board of county commissioners may fix, impose and collect a license tax for revenue or for regulation, or for both revenue and regulation, on a cannabis establishment located in the county outside of the limits of incorporated cities as a:

(a) Flat fee;

(b) Percentage of the gross revenue of the cannabis establishment; or

3. The total amount of a license tax imposed on a cannabis establishment pursuant to subsection 2, regardless of whether the license tax is imposed in the form described in paragraph (a), (b) or (c) of subsection 2, must not exceed 3 percent of the gross revenue of the cannabis establishment, as applicable.

4. A board of county commissioners may use any portion of any money collected as a license tax pursuant to subsection 2 to educate the public, using any method of public outreach or medium of communication, on safely purchasing cannabis and cannabis products from licensed cannabis establishments and the safe consumption of cannabis and cannabis products.

5. In addition to any amount of money collected as a license tax pursuant to subsection 2, a board of county commissioners may fix, impose and collect:

(a) Any fees required pursuant to chapter 278 of NRS;

(b) A one-time flat fee for an application for the issuance of a business license for a cannabis establishment located in the county outside of the limits of incorporated cities in an amount that does not exceed any similar fee imposed on a business pursuant to this chapter and chapter 369 of NRS; and

(c) A licensing tax for a business activity engaged in by a cannabis establishment located in the county outside of the limits of incorporated cities for which licensing pursuant to chapter 678B of NRS is not required only if:

(1) The board of county commissioners is granted the authority to require such a license by some other provision of law; and

(2) The amount of the licensing tax does not exceed the amount imposed by the board of county commissioners on other similar businesses.

[5.] 6. A board of county commissioners shall not enact or enforce any ordinance which is more restrictive than or conflicts with a law or regulation of this State relating to:

(a) The packaging, labeling, testing, dosage or potency of cannabis or cannabis products;

(b) The kinds of cannabis or cannabis products authorized to be sold pursuant to title 56 of NRS;

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ê2023 Statutes of Nevada, Page 2573 (CHAPTER 423, SB 277)ê

(d) The tracking of cannabis from seed to sale;

(e) The transportation of cannabis or cannabis products other than the direct transportation of cannabis or cannabis products to a consumer and a requirement to notify the county of any transportation of cannabis or cannabis products;

(f) The issuance or verification of a registry identification card, letter of approval or written documentation;

(g) The training or certification of cannabis establishment agents or employees of a cannabis establishment;

(h) The creation or maintenance of a registry or other system to obtain and track information relating to customers of cannabis establishments or holders of a registry identification card or letter of approval; or

(i) The content of any advertisement used by a cannabis establishment unless the ordinance sets forth specific prohibited content for such an advertisement.

[6.] 7. A person who obtains a business license described in this section is subject to all other licensing and permitting requirements of the State and any other counties and cities in which the person does business.

[7.] 8. As used in this section:

(a) “Cannabis” has the meaning ascribed to it in NRS 678A.085.

(b) “Cannabis establishment” has the meaning ascribed to it in NRS 678A.095.

[(b)] (c) “Cannabis establishment agent” has the meaning ascribed to it in NRS 678A.100.

[(c)] (d) “Cannabis products” has the meaning ascribed to it in NRS 678A.120.

[(d)] (e) “Letter of approval” has the meaning ascribed to it in NRS 678C.070.

[(e)] (f) “Registry identification card” has the meaning ascribed to it in NRS 678C.080.

[(f)] (g) “Written documentation” has the meaning ascribed to it in NRS 678C.110.

Sec. 14.6. NRS 268.0977 is hereby amended to read as follows:

268.0977 1. Except as otherwise provided in this section, the governing body of an incorporated city, whether organized under general law or special charter, shall not fix, impose or collect for revenues or for regulation, or both, a license tax on a cannabis establishment located within its corporate limits.

2. Except as otherwise provided in subsection 3, the governing body of an incorporated city, whether organized under general law or special charter, may fix, impose and collect for revenues or for regulation, or both, a license tax on a cannabis establishment located within its corporate limits as a:

(a) Flat fee;

(b) Percentage of the gross revenue of the cannabis establishment; or

4. The governing body of an incorporated city, whether organized under general law or special charter, may use any portion of any money collected as a license tax pursuant to subsection 2 to educate the public, using any method of public outreach or medium of communication, on safely purchasing cannabis and cannabis products from licensed cannabis establishments and the safe consumption of cannabis and cannabis products.

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ê2023 Statutes of Nevada, Page 2574 (CHAPTER 423, SB 277)ê

collected as a license tax pursuant to subsection 2 to educate the public, using any method of public outreach or medium of communication, on safely purchasing cannabis and cannabis products from licensed cannabis establishments and the safe consumption of cannabis and cannabis products.

5. In addition to any amount of money collected as a license tax pursuant to subsection 2, the governing body of an incorporated city, whether organized under general law or special charter, may fix, impose and collect:

(a) Any fees required pursuant to chapter 278 of NRS;

(b) A one-time flat fee for an application for the issuance of a business license for a cannabis establishment located within its corporate limits in an amount that does not exceed any similar fee imposed on a business pursuant to this chapter and chapter 369 of NRS; and

(c) A licensing tax for a business activity engaged in by a cannabis establishment located within its corporate limits for which licensing pursuant to chapter 678B of NRS is not required only if:

(1) The governing body is granted the authority to require such a license by some other provision of law; and

(2) The amount of the licensing tax does not exceed the amount imposed by the governing body on other similar businesses.

[5.] 6. The governing body of an incorporated city, whether organized under general law or special charter, shall not enact or enforce any ordinance which is more restrictive than or conflicts with a law or regulation of this State relating to:

(a) The packaging, labeling, testing, dosage or potency of cannabis or cannabis products;

(b) The kinds of cannabis products authorized to be sold pursuant to title 56 of NRS;

(d) The tracking of cannabis from seed to sale;

(e) The transportation of cannabis or cannabis products other than the direct transportation of cannabis or cannabis products to a consumer and a requirement to notify the city of any transportation of cannabis or cannabis products;

(f) The issuance or verification of a registry identification card, letter of approval or written documentation;

(g) The training or certification of cannabis establishment agents; or

(i) The content of any advertisement used by a cannabis establishment unless the ordinance sets forth specific prohibited content for such an advertisement.

[7.] 8. As used in this section:

(a) “Cannabis” has the meaning ascribed to it in NRS 678A.085.

(b) “Cannabis establishment” has the meaning ascribed to it in NRS 678A.095.

[(b)] (c) “Cannabis establishment agent” has the meaning ascribed to it in NRS 678A.100.

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ê2023 Statutes of Nevada, Page 2575 (CHAPTER 423, SB 277)ê

[(c)] (d) “Cannabis products” has the meaning ascribed to it in NRS 678A.120.

[(d)] (e) “Letter of approval” has the meaning ascribed to it in NRS 678C.070.

[(e)] (f) “Registry identification card” has the meaning ascribed to it in NRS 678C.080.

[(f)] (g) “Written documentation” has the meaning ascribed to it in NRS 678C.110.

Sec. 15. NRS 372A.290 is hereby amended to read as follows:

372A.290 1. An excise tax is hereby imposed on each wholesale sale in this State of cannabis by a medical cannabis cultivation facility to another cannabis establishment at the rate of 15 percent of the fair market value at wholesale of the cannabis. The excise tax imposed pursuant to this subsection is the obligation of the medical cannabis cultivation facility.

2. An excise tax is hereby imposed on each wholesale sale in this State of cannabis by an adult-use cannabis cultivation facility to another cannabis establishment at the rate of 15 percent of the fair market value at wholesale of the cannabis. The excise tax imposed pursuant to this subsection is the obligation of the adult-use cannabis cultivation facility.

3. [An] Except as otherwise provided in subsection 8, an excise tax is hereby imposed on each retail sale in this State of cannabis or cannabis products by an adult-use cannabis retail store or cannabis consumption lounge at the rate of 10 percent of the sales price of the cannabis or cannabis products. The excise tax imposed pursuant to this subsection:

(a) Is the obligation of the seller of the cannabis or cannabis product;

(b) Is separate from and in addition to any general state and local sales and use taxes that apply to retail sales of tangible personal property.

4. The revenues collected from the excise tax imposed pursuant to subsection 1 must be distributed:

(a) To the Cannabis Compliance Board and to local governments in an amount determined to be necessary by the Board to pay the costs of the Board and local governments in carrying out the provisions of chapter 678C of NRS; and

(b) If any money remains after the revenues are distributed pursuant to paragraph (a), to the State Treasurer to be deposited to the credit of the State Education Fund.

5. The revenues collected from the excise tax imposed pursuant to subsection 2 must be distributed:

(b) If any money remains after the revenues are distributed pursuant to paragraph (a), to the State Treasurer to be deposited to the credit of the State Education Fund.

6. For the purpose of subsections 4 and 5, a total amount of $5,000,000 of the revenues collected from the excise tax imposed pursuant to subsection 1 and the excise tax imposed pursuant to subsection 2 in each fiscal year shall be deemed sufficient to pay the costs of all local governments to carry out the provisions of chapters 678C and 678D of NRS. The Board shall, by regulation, determine the manner in which local governments may be reimbursed for the costs of carrying out the provisions of chapters 678C and 678D of NRS.

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ê2023 Statutes of Nevada, Page 2576 (CHAPTER 423, SB 277)ê

7. The revenues collected from the excise tax imposed pursuant to subsection 3 must be paid over as collected to the State Treasurer to be deposited to the credit of the State Education Fund.

8. The excise tax imposed pursuant to subsection 3 does not apply to a sale of cannabis for the medical use of cannabis or a medical cannabis product to the holder of a registry identification card or letter of approval by an adult-use cannabis retail store that has been deemed to be a dual licensee pursuant to section 13 of this act.

9. As used in this section:

(a) “Adult-use cannabis cultivation facility” has the meaning ascribed to it in NRS 678A.025.

(b) “Cannabis product” has the meaning ascribed to it in NRS 678A.120.

(d) “Local government” has the meaning ascribed to it in NRS 360.640.

[(d)] (e) “Medical cannabis cultivation facility” has the meaning ascribed to it in NRS 678A.170.

[(e)] (f) “Medical cannabis establishment” has the meaning ascribed to it in NRS 678A.180.

[(f)] (g) Medical cannabis product” has the meaning ascribed to it in NRS 678A.200.

(h) “Medical use of cannabis” has the meaning ascribed to it in NRS 678A.215.

(i) “Registry identification card” has the meaning ascribed to it in NRS 678C.080.

(j) “Wholesale sale” means a sale or transfer of cannabis by a cannabis cultivation facility to another cannabis establishment. The term does not include a transfer of cannabis by a cannabis cultivation facility to another cannabis cultivation facility when both cannabis cultivation facilities share identical ownership.

Sec. 15.5. NRS 453.096 is hereby amended to read as follows:

453.096 1. “Marijuana” means:

(a) All parts of any plant of the genus Cannabis, whether growing or not;

(b) [The seeds thereof;

(c)] The resin extracted from any part of the plant, including concentrated cannabis;

[(d)] (c) Every compound, manufacture, salt, derivative, mixture or preparation of the plant, or its [seeds or] resin;

[(e)] (d) Any commodity or product made using hemp which exceeds the maximum THC concentration established by the State Department of Agriculture for hemp; and

[(f)] (e) Any product or commodity made from hemp which is manufactured or sold by a cannabis establishment which violates any regulation adopted by the Cannabis Compliance Board pursuant to paragraph [(g)] (f) of subsection 1 of NRS 678A.450 relating to THC concentration.

2. “Marijuana” does not include:

(a) Hemp, as defined in NRS 557.160, which is grown or cultivated pursuant to the provisions of chapter 557 of NRS;

(b) The mature stalks of the plant [,] and root balls which have been fully separated from the stalks of the plant after harvest, fiber produced from the stalks, seeds of the plant, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil or cake ; [, or the sterilized seed of the plant which is incapable of germination;] or

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ê2023 Statutes of Nevada, Page 2577 (CHAPTER 423, SB 277)ê

preparation of the mature stalks (except the resin extracted therefrom), fiber, oil or cake ; [, or the sterilized seed of the plant which is incapable of germination;] or

(c) Any commodity or product made using hemp, as defined in NRS 557.160, which does not exceed the maximum THC concentration established by the State Department of Agriculture for hemp.

Sec. 16. 1. The Cannabis Advisory Commission created by NRS 678A.300 shall conduct a study concerning the potential effects on the cannabis industry in this State if cannabis were to be removed from the list of controlled substances included in schedule I pursuant to the Uniform Controlled Substances Act or the federal Controlled Substances Act. The study must include, without limitation:

(a) An examination of federal and state laws and regulations concerning cannabis and what effect the removal of cannabis from the list of controlled substances included in schedule I pursuant to the Uniform Controlled Substances Act or the federal Controlled Substances Act would have on such laws and regulations; and

(b) Recommendations for changes to the manner in which cannabis is regulated and taxed in this State that may be necessary to ensure the continued growth and success of the cannabis industry in this State if cannabis were to be removed from the list of controlled substances included in schedule I pursuant to the Uniform Controlled Substances Act or the federal Controlled Substances Act.

2. On or before March 1, 2024, the Cannabis Advisory Commission shall submit a report of its findings, including, without limitation, any recommendations for legislation, to:

(a) The Joint Interim Standing Committee on the Judiciary; and

(b) The Director of the Legislative Counsel Bureau for transmittal to the 83rd Session of the Nevada Legislature.

3. As used in this section:

(a) “Cannabis” has the meaning ascribed to it in NRS 678A.085.

(b) “Federal Controlled Substances Act” means the federal Controlled Substances Act, as amended, 21 U.S.C. §§ 801 et seq.

Sec. 17. 1. Except as otherwise provided in this section, a person who, on January 1, 2024, holds a medical cannabis establishment license for a medical cannabis establishment which is not located in a covered jurisdiction and which has been renewed by the person at least one time may, upon expiration of the license, submit an application to the Board for the issuance of an adult-use cannabis establishment license of the same type.

2. An application submitted pursuant to subsection 1 must:

(a) Contain the same information as required for the renewal of a medical cannabis establishment license pursuant to NRS 678B.210; and

3. If the Board determines that the applicant would have been eligible to renew the medical cannabis establishment license which has expired, the Board shall issue to the applicant an adult-use cannabis establishment license of the same type.

4. Notwithstanding the provisions of section 3 of this act, a person who, on January 1, 2024, holds a medical cannabis establishment license for a medical cannabis establishment which is not located in a covered jurisdiction and which has never been renewed by the person may renew the license pursuant to NRS 678B.210 one time.

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ê2023 Statutes of Nevada, Page 2578 (CHAPTER 423, SB 277)ê

and which has never been renewed by the person may renew the license pursuant to NRS 678B.210 one time. Upon expiration of the license after the first renewal of the license, the person may apply for and be issued an adult-use cannabis establishment license of the same type in the manner provided in subsections 1, 2 and 3.

5. Except as otherwise provided in subsection 6, an adult-use cannabis establishment license issued by the Board pursuant to this section shall be deemed to be an adult-use cannabis establishment license issued by the Board pursuant to NRS 678B.250.

6. An adult-use cannabis establishment license issued by the Board pursuant to this section shall be deemed to be a medical cannabis establishment license of the same type for the purposes of NRS 678B.220, 678B.230, 678B.260 and 678B.270.

7. A person who, on January 1, 2024, holds both an adult-use cannabis establishment license and a medical cannabis establishment license of the same type may not, pursuant to this section, apply for and be issued an additional adult-use cannabis establishment license upon the expiration of the medical cannabis establishment license of the person.

8. The Board may refuse to issue an adult-use cannabis establishment license pursuant to this section to a person who holds a medical cannabis establishment license on January 1, 2024, if:

(a) The person obtained the medical cannabis establishment license through a transfer in accordance with the regulations adopted by the Board pursuant to NRS 678B.380 which occurred on or after July 1, 2023, and on or before December 31, 2023; and

(b) The Board determines that:

(1) The transfer by which the person obtained the license was not made in good faith; and

(2) Issuing the person an adult-use cannabis establishment license would be against the public interest.

9. As used in this section:

(a) “Adult-use cannabis establishment license” has the meaning ascribed to it in NRS 678A.040.

(b) “Board” means the Cannabis Compliance Board.

(d) “Medical cannabis establishment license” has the meaning ascribed to it in NRS 678A.185.

Sec. 18. (Deleted by amendment.)

Sec. 19. 1. This section becomes effective upon passage and approval.

2. Section 16 of this act becomes effective on July 1, 2023.

3. Sections 1 to 15.5, inclusive, 17 and 18 of this act become effective:

(a) Upon passage and approval for the purpose of adopting any regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act; and

(b) On January 1, 2024, for all other purposes.

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ê2023 Statutes of Nevada, Page 2579ê

CHAPTER 424, AB 37

Assembly Bill No. 37–Committee on Education

CHAPTER 424

[Approved: June 15, 2023]

AN ACT relating to behavioral health; authorizing the establishment of the Behavioral Health Workforce Development Center of Nevada at one or more institutions within the Nevada System of Higher Education; prescribing the structure and duties of the Center; authorizing the Board of Regents of the University of Nevada to accept, receive, invest, disburse and account for money received for purposes related to the Center; making an appropriation; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

Existing law authorizes the Board of Regents of the University of Nevada to administer: (1) a program to provide loans for fees, books and living expenses to students in the nursing programs of the Nevada System of Higher Education; and (2) the Nevada Health Service Corps, which repays the loans of practitioners of certain health professions who practice in areas of this State for which a shortage of that type of practitioner exists. (NRS 396.890, 396.900, 396.903) Section 6 of this bill similarly authorizes the Board to establish the Behavioral Health Workforce Development Center of Nevada at one or more institutions within the System for purposes related to strengthening the workforce of providers of behavioral health care in this State. Section 6 requires the Center to consist of: (1) a main hub located at an institution within the System; and (2) regional hubs in each of the five behavioral health regions into which this State is divided. (NRS 433.428) To the extent that money is available, section 6 authorizes each institution at which the Center is established to provide resources to support the Center in accomplishing its duties. Sections 3-5 of this bill define terms related to the Center and its activities.

If the Center is established, section 7 of this bill requires the Center to establish a behavioral health workforce development consortium consisting of various persons and entities involved in education, behavioral health and workforce development. Section 7 also requires the Center to develop and implement a strategic plan for the recruitment, education and retention of a qualified, diverse and evolving behavioral health workforce in this State. Section 7 requires: (1) the strategic plan to include plans for convening and organizing the members of the consortium and other relevant persons and entities to create and implement strategies to develop the behavioral health workforce of this State; and (2) the Center, under the direction of the consortium, to carry out the duties prescribed by the strategic plan. Section 8 of this bill requires the Center, if established, to perform various other duties related to strengthening the behavioral health workforce of this State, and section 7 requires the strategic plan to include plans for performing those duties. Section 9 of this bill authorizes the Board to: (1) accept gifts, grants and donations for the purposes of supporting the Center and its duties; and (2) receive, invest, disburse and account for all money received for that purpose. Section 10 of this bill requires the Center, if established, to annually report to the Legislature, the Board, the Chancellor of the System and certain other entities concerning the activities of the Center. Section 10.5 of this bill makes an appropriation to the System for certain personnel and operating expenses related to the creation of the Center.

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ê2023 Statutes of Nevada, Page 2580 (CHAPTER 424, AB 37)ê

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 396 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 10, inclusive, of this act.

Sec. 2. As used in sections 2 to 10, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 3, 4 and 5 of this act have the meanings ascribed to them in those sections.

Sec. 3. “Behavioral health region” has the meaning ascribed to it in NRS 433.426.

Sec. 4. “Center” means the Behavioral Health Workforce Development Center of Nevada established pursuant to section 6 of this act.

Sec. 5. “Provider of behavioral health care” means a person who is:

1. Licensed, certified or registered pursuant to chapter 641, 641A, 641B, 641C or 641D of NRS;

2. Licensed as a physician, physician assistant or registered nurse and practices in psychiatry, addiction medicine or another specialty relating to behavioral health; or

3. A school counselor or school psychologist.

Sec. 6. 1. The Board of Regents may establish the Behavioral Health Workforce Development Center of Nevada at an institution or multiple institutions within the System.

2. The primary purposes of the Center must be to:

(a) Increase the number of graduates of high schools in this State who pursue higher education in fields related to behavioral health;

(b) Increase the number of graduates from programs for the education of providers of behavioral health care within the System who intern and practice in this State;

(c) Increase the number of providers of behavioral health care who have the specialized training necessary to address the most critical shortages of such providers in this State;

(d) Increase the number of supervisors and sites for internships for students and graduates of programs for the education of providers of behavioral health care;

(e) Decrease the amount of time between graduation from a program for the education of providers of behavioral health care and licensure, certification or registration and, if applicable, endorsement as such a provider; and

(f) Address other needs relating to the number and distribution of providers of behavioral health care in this State, as determined by the Center.

3. The Center must consist of:

(a) A main hub at one of the institutions at which the Center is established; and

(b) Regional hubs in each behavioral health region of this State.

4. To the extent that money is available for this purpose, each institution at which the Center is established may provide personnel, facilities, equipment and supplies to support the Center in carrying out the provisions of sections 2 to 10, inclusive, of this act.

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ê2023 Statutes of Nevada, Page 2581 (CHAPTER 424, AB 37)ê

provisions of sections 2 to 10, inclusive, of this act. Such personnel, facilities, equipment and supplies may include, without limitation:

(a) Facilities for conferences and training;

(b) The time and labor of the faculty and staff of the institution; and

Sec. 7. 1. If established, the Center shall:

(a) Establish a behavioral health workforce development consortium. The consortium must consist of:

(1) Institutions within the System;

(2) Providers of behavioral health care;

(3) The Department of Education and school districts;

(4) State and local law enforcement agencies;

(5) Consumers of behavioral health care;

(6) Family members of consumers of behavioral health care;

(7) Hospitals and other facilities that provide behavioral health care;

(8) The Department of Health and Human Services, the Department of Veterans Services, the Department of Employment, Training and Rehabilitation and other relevant agencies of this State selected by the Center;

(9) Sites that provide internships for providers of behavioral health care;

(10) Representatives of members of the Armed Forces of the United States and the National Guard who are on active duty, veterans and families of such members and veterans;

(11) Representatives of historically marginalized communities, including, without limitation:

(I) Lesbian, gay, bisexual, transgender and questioning persons; and

(II) Persons of color;

(12) Representatives of persons with disabilities; and

(13) Other relevant persons and entities, as selected by the Center.

(b) Develop and implement a strategic plan for the recruitment, education and retention of a qualified, diverse and evolving behavioral health workforce in this State, with the highest priority placed on rural, frontier and underserved urban communities. The strategic plan must include, without limitation, plans for:

(1) Convening and organizing the members of the consortium created pursuant to paragraph (a) and other relevant persons and entities to develop and implement strategies to strengthen the behavioral health workforce in every behavioral health region of this State; and

(2) Performing the duties prescribed by section 8 of this act.

2. If established, the Center shall, under the direction of the consortium created pursuant to paragraph (a) of subsection 1, perform the duties prescribed in the strategic plan developed pursuant to paragraph (b) of subsection 1.

3. As used in this section, “veteran” has the meaning ascribed to it in NRS 417.005.

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ê2023 Statutes of Nevada, Page 2582 (CHAPTER 424, AB 37)ê

Sec. 8. In addition to the duties prescribed by sections 7 and 10 of this act, the Center, if established, shall:

1. Through the regional hubs established pursuant to section 6 of this act:

(a) Collaborate with other persons and entities to assess the specific behavioral health needs of each behavioral health region; and

(b) Engage in research and training specifically designed to address those needs.

2. Coordinate with the System, the Department of Health and Human Services, the Department of Education, the Department of Employment, Training and Rehabilitation and other state agencies involved in behavioral health, education and workforce development to promote the efficient utilization of state resources designated for those purposes.

3. Build partnerships with school districts, institutions within the System, occupational licensing boards that license, certify or register providers of behavioral health care, the Department of Education, the Department of Employment, Training and Rehabilitation and other public and private entities involved in workforce development to establish pipelines to careers in behavioral health from schools through professional practice. Such pipelines must focus on recruiting youth who are:

(a) From underserved and marginalized communities; or

(b) Interested in pursuing careers that address the most critical behavioral health needs of this State, including, without limitation, careers providing behavioral health care to children, the elderly and other underserved populations.

4. Develop and implement strategies to:

(a) Recruit adults who are interested in careers in behavioral health;

(b) Retain providers of behavioral health care who currently practice in this State; and

(c) Ensure that providers who participate in the pipelines established pursuant to subsection 3 ultimately practice in this State.

5. Collaborate with professional organizations for providers of behavioral health care, institutions that provide training and education for providers of behavioral health care and other relevant persons and entities to ensure the availability of high-quality continuing education on emerging, evidence-based practices for providing behavioral health care in various settings.

6. Provide or collaborate with other agencies to provide technical assistance for providers of behavioral health care regarding administrative issues and other nonacademic issues relating to the provision of behavioral health care in this State, including, without limitation:

(a) Obtaining a state business license and any necessary local licenses;

(b) Planning the establishment and operation of a business to provide behavioral health care;

(d) The management of staff.

7. Provide technical assistance to support the provision of graduate and postgraduate training in evidence-based practices for providing behavioral health care at existing and new sites for the provision of such training, with the highest priority placed on sites that serve rural, frontier and underserved urban communities.

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ê2023 Statutes of Nevada, Page 2583 (CHAPTER 424, AB 37)ê

8. Provide training for supervisors of graduate and postgraduate training for providers of behavioral health care, with the highest priority placed on supervisors who serve rural, frontier and underserved urban communities.

9. Collaborate with existing entities or establish new programs to assist adult students in pursuing the education and training necessary to become a provider of behavioral health care.

10. Coordinate with other entities to obtain or, where necessary, collect and analyze data to:

(a) Determine where providers of behavioral health care who practice in this State were born, educated and trained;

(b) Evaluate the progression of persons through programs for the education and training of providers of behavioral health care in this State and determine where such persons practice after completing those programs;

(c) Ensure the strength and success of pipelines to careers in behavioral health from schools through professional practice; and

(d) Identify the degree to which programs of education and training for providers of behavioral health care produce an adequate number of specialists to meet the needs of this State and each behavioral health region.

11. Collaborate with agencies involved in the education, training, licensure, certification, registration and endorsement of providers of behavioral health care to develop systems for:

(a) Identifying methods used by providers of education or training for providers of behavioral health care to prepare participants in programs of such education or training to correctly implement evidence-based practices for providing behavioral health care;

(b) Identifying the practices and therapeutic modalities being taught to participants in programs of education or training for providers of behavioral health care; and

(c) To the extent feasible, tracking the implementation of the methods, practices and modalities described in paragraphs (a) and (b) by providers of behavioral health care.

12. Monitor progress toward the goals prescribed in the strategic plan developed pursuant to section 7 of this act.

13. Perform the duties prescribed by this section and section 7 of this act in a manner that leverages existing programs and resources and avoids duplication of efforts.

Sec. 9. The Board of Regents may:

1. Apply for and accept gifts, grants and donations for the purposes of carrying out the provisions of sections 2 to 10, inclusive, of this act.

2. Receive, invest, disburse and account for all money received for the purposes of carrying out the provisions of sections 2 to 10, inclusive, of this act.

Sec. 10. On or before June 1 of each year, the Center, if established, shall:

1. Compile a report concerning its activities during the immediately preceding calendar year and planned activities for the current calendar year and following calendar years; and

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ê2023 Statutes of Nevada, Page 2584 (CHAPTER 424, AB 37)ê

2. Submit the report to:

(a) The Director of the Legislative Counsel Bureau for transmittal to:

(1) The Joint Interim Standing Committee on Health and Human Services; and

(2) The Joint Interim Standing Committee on Commerce and Labor;

(b) The Commission on Behavioral Health;

(d) The Board of Regents; and

(e) The Chancellor of the System.

Sec. 10.5. 1. There is hereby appropriated from the State General Fund to the Nevada System of Higher Education for personnel and operating expenses associated with the establishment of the Behavioral Health Workforce Development Center at the University of Nevada, Las Vegas, the following sums:

For the Fiscal Year 2023-2024.................................................... $684,926

For the Fiscal Year 2024-2025................................................. $1,369,321

2. Any balance of the sums appropriated by subsection 1 remaining at the end of the respective fiscal years must not be committed for expenditure after June 30 of the respective fiscal years by the entity to which the appropriation is made or any entity to which money from the appropriation is granted or otherwise transferred in any manner, and any portion of the appropriated money remaining must not be spent for any purpose after September 20, 2024, and September 19, 2025, respectively, by either the entity to which the money was appropriated or the entity to which the money was subsequently granted or transferred, and must be reverted to the State General Fund on or before September 20, 2024, and September 19, 2025, respectively.

Sec. 11. The provisions of subsection 1 of NRS 218D.380 do not apply to any provision of this act which adds or revises a requirement to submit a report to the Legislature.

Sec. 12. 1. This section becomes effective upon passage and approval.

2. Section 10.5 of this act becomes effective on July 1, 2023.

3. Sections 1 to 10, inclusive, and 11 of this act become effective:

(a) Upon passage and approval for the purpose of performing any preparatory administrative tasks that are necessary to carry out the provisions of this act; and

(b) On October 1, 2023, for all other purposes.

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ê2023 Statutes of Nevada, Page 2585ê

CHAPTER 425, SB 428

Senate Bill No. 428–Senators Flores, Neal; Buck, Donate, Dondero Loop, D. Harris, Ohrenschall, Pazina, Scheible and Spearman

Joint Sponsors: Assemblymen D’Silva, Torres, González; Anderson, Brown-May, Dickman, Gurr, C.H. Miller, Orentlicher, Peters, Taylor and Yurek

CHAPTER 425

[Approved: June 15, 2023]

AN ACT relating to taxes on retail sales; providing for the submission to the voters of the question whether the Sales and Use Tax Act of 1955 should be amended to provide an exemption from the tax for child and adult diapers; providing for the exemptions from certain analogous taxes if the voters approve this amendment to the Sales and Use Tax Act of 1955; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

The nonadministrative provisions of the Sales and Use Tax Act of 1955 (part of chapter 372 of NRS) were approved by the voters by a referendum and therefore cannot be amended, annulled, repealed, set aside, suspended or in any way made inoperative except by the direct vote of the people. (Nev. Const. Art. 19, § 1)

Sections 2-9 of this bill require the submission of a question to the voters at the 2024 General Election of whether the Sales and Use Tax Act of 1955 should be amended to provide an exemption for diapers. Section 10 of this bill construes the term “diaper” for the purposes of the exemption to include all types of child and adult diapers. Sections 11 and 12 of this bill amend the Local School Support Tax Law to provide an identical exemption. This tax exemption becomes effective of January 1, 2025, and expires by limitation on December 31, 2050, only if the voters approve the amendment to the Sales and Use Tax Act of 1955 at the General Election in 2024.

Any amendment to the Local School Support Tax Law, including exemptions, also applies to other sales and use taxes imposed under existing law. (NRS 354.705, 374A.020, 376A.060, 377.040, 377A.030, 377B.110, 543.600 and various special and local acts) Therefore, if the voters approve the exemption of diapers proposed by this bill, from January 1, 2025, through December 31, 2050, diapers will be exempt from all sales and use taxes currently contemplated under existing law.

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. The Legislature hereby finds that each exemption provided by this act from any excise tax on the sale, storage, use or consumption of tangible personal property sold at retail:

1. Will achieve a bona fide social or economic purpose and that the benefits of the exemption are expected to exceed any adverse effect of the exemption on the provision of services to the public by the State or a local government that would otherwise receive revenue from the tax from which the exemption would be granted; and

2. Will not impair adversely the ability of the State or a local government to pay, when due, all interest and principal on any outstanding bonds or any other obligations for which revenue from the tax from which the exemption would be granted was pledged.

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ê2023 Statutes of Nevada, Page 2586 (CHAPTER 425, SB 428)ê

bonds or any other obligations for which revenue from the tax from which the exemption would be granted was pledged.

Sec. 2. At the General Election on November 5, 2024, a proposal must be submitted to the registered voters of this State to amend the Sales and Use Tax Act, which was enacted by the 47th Session of the Legislature of the State of Nevada and approved by the Governor in 1955, and subsequently approved by the people of this State at the General Election held on November 6, 1956.

Sec. 3. At the time and in the manner provided by law, the Secretary of State shall transmit the proposed act to the several county clerks, and the county clerks shall cause it to be published and posted as provided by law.

Sec. 4. The proclamation and notice to the voters given by the county clerks pursuant to law must be in substantially the following form:

Notice is hereby given that at the General Election on November 5, 2024, a question will appear on the ballot for the adoption or rejection by the registered voters of the State of the following proposed act:

AN ACT to amend an Act entitled “An Act to provide revenue for the State of Nevada; providing for sales and use taxes; providing for the manner of collection; defining certain terms; providing penalties for violation, and other matters properly relating thereto.” approved March 29, 1955, as amended.

THE PEOPLE OF THE STATE OF NEVADA

DO ENACT AS FOLLOWS:

Section 1. Section 56.1 of the above-entitled Act, being chapter 397, Statutes of Nevada 1955, as added by chapter 306, Statutes of Nevada 1969, at page 532, and amended by chapter 627, Statutes of Nevada 1985, at page 2028, and amended by chapter 404, Statutes of Nevada 1995, at page 1007, and amended by chapter 389, Statutes of Nevada 2017, at page 2540, is hereby amended to read as follows:

Sec. 56.1. 1. There are exempted from the taxes imposed by this act the gross receipts from sales and the storage, use or other consumption of:

(a) Prosthetic devices, orthotic appliances and ambulatory casts for human use, and other supports and casts if prescribed or applied by a licensed provider of health care, within his scope of practice, for human use.

(b) Appliances and supplies relating to an ostomy.

(d) Medicines:

(1) Prescribed for the treatment of a human being by a person authorized to prescribe medicines, and dispensed on a prescription filled by a registered pharmacist in accordance with law;

(2) Furnished by a licensed physician, dentist or podiatric physician to his own patient for the treatment of the patient;

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ê2023 Statutes of Nevada, Page 2587 (CHAPTER 425, SB 428)ê

(3) Furnished by a hospital for treatment of any person pursuant to the order of a licensed physician, dentist or podiatric physician; or

(4) Sold to a licensed physician, dentist, podiatric physician or hospital for the treatment of a human being.

(e) Feminine hygiene products.

(f) Diapers.

2. As used in this section:

(a) “Medicine” means any substance or preparation intended for use by external or internal application to the human body in the diagnosis, cure, mitigation, treatment or prevention of disease or affliction of the human body and which is commonly recognized as a substance or preparation intended for such use. The term includes splints, bandages, pads, compresses and dressings.

(b) “Medicine” does not include:

(1) Any auditory, ophthalmic or ocular device or appliance.

(2) Articles which are in the nature of instruments, crutches, canes, devices or other mechanical, electronic, optical or physical equipment.

(3) Any alcoholic beverage, except where the alcohol merely provides a solution in the ordinary preparation of a medicine.

(4) Braces or supports, other than those prescribed or applied by a licensed provider of health care, within his scope of practice, for human use.

3. Insulin furnished by a registered pharmacist to a person for treatment of diabetes as directed by a physician shall be deemed to be dispensed on a prescription within the meaning of this section.

Sec. 2. This act becomes effective on January 1, 2025, and expires by limitation on December 31, 2050.

Sec. 5. The ballot page assemblies and the paper ballots to be used in voting on the question must present the question in substantially the following form:

Shall the Sales and Use Tax Act of 1955 be amended to provide an exemption from the taxes imposed by this Act on the gross receipts from the sale and the storage, use or other consumption of diapers?

Yes ¨ No ¨

Sec. 6. The explanation of the question which must appear on each paper ballot and sample ballot and in every publication and posting of notice of the question must be in substantially the following form:

(Explanation of Question)

The proposed amendment to the Sales and Use Tax Act of 1955 would exempt from the taxes imposed by this Act the gross receipts from the sale and storage, use or other consumption of diapers.

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ê2023 Statutes of Nevada, Page 2588 (CHAPTER 425, SB 428)ê

If this proposal is adopted, the Legislature has provided that the Local School Support Tax Law and certain analogous taxes on retail sales will be amended to provide the same exemptions.

Sec. 7. If a majority of the votes cast on the question is yes, the amendment to the Sales and Use Tax Act of 1955 becomes effective on January 1, 2025, and expires by limitation on December 31, 2050. If less than a majority of votes cast on the question is yes, the question fails and the amendment to the Sales and Use Tax Act of 1955 does not become effective.

Sec. 8. All general election laws not inconsistent with this act are applicable.

Sec. 9. Any informalities, omissions or defects in the content or making of the publications, proclamations or notices provided for in this act and by the general election laws under which this election is held must be so construed as not to invalidate the adoption of the act by a majority of the registered voters voting on the question if it can be ascertained with reasonable certainty from the official returns transmitted to the Office of the Secretary of State whether the proposed amendment was adopted by a majority of those registered voters.

Sec. 10. Chapter 372 of NRS is hereby amended by adding thereto a new section to read as follows:

In administering the provisions of section 56.1 of chapter 397, Statutes of Nevada 1955, which is included in NRS as NRS 372.283, the Department shall construe the term “diaper” to mean any type of diaper intended for use by a child or an adult, including, without limitation, a disposable diaper.

Sec. 11. Chapter 374 of NRS is hereby amended by adding thereto a new section to read as follows:

In administering the provisions of NRS 374.287, the Department shall construe the term “diaper” to mean any type of diaper intended for use by a child or an adult, including, without limitation, a disposable diaper.

Sec. 12. NRS 374.287 is hereby amended to read as follows:

374.287 1. There are exempted from the taxes imposed by this chapter the gross receipts from sales and the storage, use or other consumption of:

(b) Appliances and supplies relating to an ostomy.

(d) Medicines:

(1) Prescribed for the treatment of a human being by a person authorized to prescribe medicines, and dispensed on a prescription filled by a registered pharmacist in accordance with law;

(2) Furnished by a licensed physician, dentist or podiatric physician to his or her own patient for the treatment of the patient;

(3) Furnished by a hospital for treatment of any person pursuant to the order of a licensed physician, dentist or podiatric physician; or

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ê2023 Statutes of Nevada, Page 2589 (CHAPTER 425, SB 428)ê

(4) Sold to a licensed physician, dentist, podiatric physician or hospital for the treatment of a human being.

(e) Feminine hygiene products.

(f) Diapers.

2. As used in this section:

(b) “Medicine” does not include:

(1) Any auditory, ophthalmic or ocular device or appliance.

(2) Articles which are in the nature of instruments, crutches, canes, devices or other mechanical, electronic, optical or physical equipment.

(3) Any alcoholic beverage, except where the alcohol merely provides a solution in the ordinary preparation of a medicine.

(4) Braces or supports, other than those prescribed or applied by a licensed provider of health care, within his or her scope of practice, for human use.

3. Insulin furnished by a registered pharmacist to a person for treatment of diabetes as directed by a physician shall be deemed to be dispensed on a prescription within the meaning of this section.

Sec. 13. 1. This section and sections 1 to 9, inclusive, of this act become effective on October 1, 2023.

2. Sections 10, 11 and 12 of this act become effective on January 1, 2025, and expire by limitation on December 31, 2050, only if the proposal submitted pursuant to sections 2 to 9, inclusive, of this act is approved by the voters at the General Election on November 5, 2024.

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ê2023 Statutes of Nevada, Page 2590ê

CHAPTER 426, SB 106

Senate Bill No. 106–Senators Seevers Gansert; and D. Harris

CHAPTER 426

[Approved: June 15, 2023]

AN ACT relating to ophthalmic dispensing; exempting the sale of prescription eyewear to intended wearers outside this State from provisions regulating ophthalmic dispensing under certain circumstances; authorizing the imposition of certain administrative action and injunctive relief for certain violations; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

Existing law exempts certain activity from provisions of law governing ophthalmic dispensing. (NRS 637.025) Section 9 of this bill additionally exempts from such provisions the manufacturing and direct online sale of lenses, frames and other specially fabricated optical devices upon prescription to an intended wearer who is located outside this State at the time of purchase, if the manufacturing is supervised by a licensed dispensing optician. Section 9 requires such supervision to include a daily review of all optical manufacturing equipment by the licensed dispensing optician. Section 9 requires a person engaged in such manufacturing and direct online sale to confirm that lenses shipped to the intended wearer match the relevant prescription, as submitted by the intended wearer.

Existing law authorizes the imposition of disciplinary action and the issuance of an injunction against a person who is licensed to engage in the practice of ophthalmic dispensing or manage a business engaged in ophthalmic dispensing and violates certain provisions of law governing ophthalmic dispensing. (NRS 637.150, 637.185) Existing law also provides that such a person is guilty of a misdemeanor. (NRS 637.200) Section 9 provides that such a licensee is subject to disciplinary action and injunctive relief if the licensee: (1) is engaged in activity which, under the provisions of section 9, is otherwise exempt from provisions governing ophthalmic dispensing; and (2) fails to comply with section 9 or, alternatively, with other provisions governing ophthalmic dispensing.

Existing law prohibits a person from engaging in the practice of ophthalmic dispensing or managing a business engaged in ophthalmic dispensing without a license. (NRS 637.090) Existing law provides that a person who violates that prohibition is guilty of a misdemeanor and subject to an administrative fine and injunctive relief. (NRS 637.181, 637.185, 637.200) Section 9 provides that an unlicensed person is subject to such an administrative fine and injunctive relief if the person: (1) is engaged in activity which, under the provisions of section 9, is otherwise exempt from provisions governing ophthalmic dispensing; and (2) fails to comply with section 9. Sections 9 and 10 of this bill provide that a person who fails to comply with section 9 is not guilty of a misdemeanor, regardless of whether the person is licensed.

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:

Sections 1-8. (Deleted by amendment.)

Sec. 9. Chapter 637 of NRS is hereby amended by adding thereto a new section to read as follows:

1. Except as otherwise provided in this section, a person is exempt from the provisions of this chapter if the person:

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ê2023 Statutes of Nevada, Page 2591 (CHAPTER 426, SB 106)ê

(a) Is engaged in the manufacturing and direct online sale of lenses, frames and other specially fabricated optical devices upon prescription to an intended wearer who is located outside this State at the time of purchase; and

(b) Complies with the requirements of subsection 2.

2. Any person who engages in the activity described in paragraph (a) of subsection 1 and does not otherwise comply with the provisions of this chapter shall:

(a) Ensure that the manufacturing of lenses, frames and other specially fabricated optical devices is supervised by a dispensing optician licensed pursuant to this chapter. Such supervision must include, without limitation, a daily review of all optical manufacturing equipment by the dispensing optician to ensure that the lenses, frames and other specially fabricated optical devices being manufactured meet the standards adopted by the Board pursuant to this chapter; and

(b) Confirm that any lenses shipped to an intended wearer meet the requirements of the relevant prescription, as submitted by the intended wearer.

3. A person who engages in the activity described in paragraph (a) of subsection 1, is licensed pursuant to this chapter and fails to comply with the requirements of subsection 2 or the requirements of this chapter:

(a) Is subject to the provisions of 637.150 and 637.185; and

(b) Is not guilty of a misdemeanor.

4. A person who engages in the activity described in paragraph (a) of subsection 1, is not licensed pursuant to this chapter and fails to comply with the requirements of subsection 2:

(a) Shall be deemed to be in violation of NRS 637.090 and, except as otherwise provided in paragraph (b), is subject to all provisions applicable to a person who violates that section; and

(b) Is not guilty of a misdemeanor.

Sec. 10. NRS 637.200 is hereby amended to read as follows:

637.200 The following acts constitute misdemeanors, unless a greater penalty is provided pursuant to NRS 200.830 or 200.840:

1. The insertion of a false or misleading statement in any advertising in connection with the business of ophthalmic dispensing.

2. Making use of any advertising statement of a character tending to indicate to the public the superiority of a particular system or type of eyesight examination or treatment.

3. Furnishing or advertising the furnishing of the services of a refractionist, optometrist, physician or surgeon.

4. Changing the prescription of a lens without an order from a person licensed to issue such a prescription.

5. Filling a prescription for a contact lens in violation of the expiration date or number of refills specified by the prescription.

6. [Violating] Except as otherwise provided in section 9 of this act, violating any provision of this chapter.

________

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ê2023 Statutes of Nevada, Page 2592ê

CHAPTER 427, SB 63

Senate Bill No. 63–Committee on Judiciary

CHAPTER 427

[Approved: June 15, 2023]

AN ACT relating to the Judicial Department of State Government; making various changes relating to the policies and procedures of the Judicial Department; authorizing a judge to hold court by means of remote communication in certain circumstances; requiring the Nevada Supreme Court to prescribe certain policies and procedures relating to the Judicial Department by rule; authorizing a judge or justice of the peace to have a partner or associate who practices law in this State under certain circumstances; revising the duties of the Court Administrator; replacing the term “regulation” with “rule” for purposes of certain provisions of law relating to the Judicial Department; revising provisions relating to court interpreters; codifying in statute language from the Nevada Constitution relating to the expiration of the term of office for a justice appointed to fill a vacancy on the Nevada Supreme Court; revising provisions concerning the provision of certain resources to the Supreme Court and the district courts; providing that certain orders for protection issued in another state are not subject to certain requirements to be given full faith and credit in this State; repealing obsolete provisions relating to the Judicial Department; repealing various provisions relating to court seals, qualifications of certain employees and reports; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

Existing law requires various courts in this State to follow certain policies and procedures. (Chapters 1-5 of NRS) Section 1 of this bill replaces a requirement that the telephone number for the office of each judge be published in a telephone directory with a requirement that the contact information for the office of each judge be made available to the public. (NRS 1.055)

Existing law authorizes a judge to issue an order directing that court be held at a location other than the location at which the judge regularly holds court under certain specific emergency circumstances. (NRS 1.070) Section 2 of this bill authorizes a judge to issue an order directing, instead, that court be held: (1) at any other place or location other than the place or location at which the judge regularly holds court under more generalized emergency circumstances; and (2) by means of remote communication when necessary to promote the interest of justice. Section 3 of this bill makes a conforming change relating to the appearance of parties by means of remote communication if a judge issues an order directing that court be held remotely.

Section 4 of this bill removes an obsolete prohibition against excluding a minor who is a law student from a criminal trial.

Existing law authorizes: (1) the Nevada Supreme Court to adopt rules relating to the electronic filing, storage and reproduction of documents filed with the court of justice in this State; and (2) each court of justice to provide for such filing, storage and documentation in accordance with the rules adopted by the Supreme Court. (NRS 1.117) Section 5 of this bill instead requires the Supreme Court to adopt such rules and removes the explicit statutory authorization for other courts of justice in this State to provide for such filing, storage and documentation in accordance with such rules.

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ê2023 Statutes of Nevada, Page 2593 (CHAPTER 427, SB 63)ê

Existing law authorizes certain courts to conduct business on nonjudicial days for the purpose of receiving telephone calls relating to the issuance of certain orders for protection. (NRS 1.130) Section 6 of this bill expands the purposes for which such courts are authorized to transact business on nonjudicial days by authorizing the courts to conduct business on nonjudicial days for the purposes of receiving any electronic communication relating to the issuance of a temporary or emergency order for protection. Section 31 of this bill makes conforming changes related to the granting of such an order.

Existing law requires each court of justice to have a seal and prescribes requirements relating to the custody and use of such seals. (NRS 1.140-1.190) Section 37 of this bill repeals various provisions which prescribe requirements relating to seals. Section 7 of this bill instead requires: (1) each court of justice in this State to have a seal; and (2) the Nevada Supreme Court to adopt rules relating to the format, use and storage of such seals.

Existing law prescribes a procedure for disqualifying certain judges for actual or implied bias or prejudice and requires any party to an action or proceeding pending in certain courts who seeks to disqualify a judge for actual or implied bias or prejudice to: (1) file an affidavit specifying the facts upon which the disqualification is sought; and (2) if the party is represented by an attorney, have the attorney of record file a certificate which states that the affidavit is filed in good faith and not interposed for delay. (NRS 1.235) Section 8 of this bill: (1) removes the requirement that an attorney must file such a certificate and instead requires any party, regardless of whether the party is represented by an attorney, to file an affidavit that includes certain statements supporting the assertion that the affidavit is filed in good faith.

Existing law prohibits a judge or justice of the peace from having a partner acting as an attorney or counsel in any court in this State. (NRS 1.270) Section 8.5 of this bill additionally prohibits a judge or justice of the peace from having an associate acting as an attorney under the same circumstances. Section 8.5 creates an exception to these prohibitions for part-time judges under certain circumstances.

Existing law requires the Nevada Supreme Court to appoint a Court Administrator and prescribes the duties of the Court Administrator. (NRS 1.330, 1.360) Section 9 of this bill removes from the duties of the Court Administrator the duty to: (1) examine the condition of the dockets of the courts; and (2) make certain recommendations relating to the assignment of district judges.

Existing law provides for the adoption of regulations by the Commission on Judicial Selection, the Court Administrator, the Nevada Supreme Court and certain chief judges or justices relating to the Judicial Department of State Government. (NRS 1.400, 1.510, 1.520, 2.410, 3.025, 4.155, 4.157, 5.021) In general, existing law requires regulations adopted by agencies of the Executive Department of the State Government to be adopted through a rulemaking process. (Chapter 233B of NRS) Sections 10, 12-15, 25, 26, 28-30 and 32-34 of this bill replace the term “regulation” with the term “rule” and make conforming changes related to this change.

Section 11 of this bill revises provisions governing the compensation of court interpreters and translators.

Existing law requires the Chief Justice of the Nevada Supreme Court to appoint a committee to provide certain advice relating to the certification or registration of court interpreters. Existing law also prescribes the membership and duties of the committee. (NRS 1.530) Section 14 of this bill removes requirements relating to the appointment of certain members of the committee. Section 14 also: (1) authorizes the chair of the committee to designate a vice chair of the committee; and (2) revises the contents of the annual report the committee is required to submit to the Legislature.

Section 16 of this bill replaces certain requirements prescribed by existing law relating to the process by which a person may petition the Court Administrator to determine whether his or her criminal history will disqualify him or her from obtaining a certificate or registration as a court interpreter with a requirement that the Court Administrator adopt rules for this process.

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ê2023 Statutes of Nevada, Page 2594 (CHAPTER 427, SB 63)ê

Existing law codifies in statute certain provisions relating to the process set forth in the Nevada Constitution regarding the filling of vacancies in the office of justice of the Nevada Supreme Court. (Nev. Const. Art. 6, § 20; NRS 2.040) Section 17 of this bill additionally codifies in statute the date on which the term of office for a justice appointed to fill a vacancy on the Court expires. Section 18 of this bill removes a requirement that certain rules adopted by the Court be published and take effect within a prescribed period. (NRS 2.120)

Sections 19 and 27 of this bill revise and modernize statutory language relating to: (1) the circumstances under which certain courts may direct the sheriff of a county to provide a place to conduct court; and (2) the resources a county is required to provide upon receiving such a directive.

Section 20 of this bill removes provisions relating to the use of a facsimile signature by a justice of the Nevada Supreme Court and replaces those provisions with a requirement that the Court provide by rule for the use of a digital or electronic signature by each justice of the Court.

Existing law authorizes or requires the Nevada Supreme Court to employ certain officers and employees. (NRS 2.200-2.310) Section 24 of this bill revises provisions relating to the employment by the Court of certain employees by: (1) removing language authorizing a majority of justices of the Court to employ certain persons; and (2) authorizing the Court to employ personnel necessary for the operation, maintenance and improvement of the Court and the State Court System. Section 21 of this bill removes outdated language relating to the expiration of the term of a person elected to the office of Clerk of the Nevada Supreme Court. Sections 22 and 23 of this bill remove language authorizing a majority of justices to appoint and employ persons for the safety and security of the justices and employees of the Nevada Supreme Court.

Existing law authorizes a court to issue certain orders for protection against high-risk behavior. (NRS 33.500-33.670) Existing law additionally provides, under certain circumstances, that an order for protection against domestic violence which is issued by the court of another state, territory or Indian tribe within the United States is valid and must be accorded full faith and credit and enforced by the courts and law enforcement officers of this State as if it were issued by a court in this State. (NRS 33.085) Section 30.5 of this bill similarly requires an order for protection against high-risk behavior which is issued by the court of another state, territory or Indian tribe within the United States to be accorded full faith and credit and enforced by the courts and law enforcement officers of this State.

Existing law requires five justices of the Nevada Supreme Court and each judge of the Court of Appeals, other than the initial three judges, to be elected. (NRS 281.010) Section 35 of this bill removes the references to: (1) the specific number of justices on the Nevada Supreme Court; and (2) the initial judges appointed to the Court of Appeals.

Section 37 repeals various provisions of law relating to the Judicial Department, including provisions relating to the seals of certain courts, the qualifications of certain employees and the submission of certain reports.

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 1.055 is hereby amended to read as follows:

1.055 [A] The contact information for the office of each judge [of any court of justice for] in this State [shall cause the telephone number of his or her office that is located within the court to] must be [published in the telephone directory that is provided] made available to the public . [in the jurisdiction in which the court is located.]

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ê2023 Statutes of Nevada, Page 2595 (CHAPTER 427, SB 63)ê

Sec. 2. NRS 1.070 is hereby amended to read as follows:

1.070 1. A judge authorized to hold or preside at a court appointed to be held in a city, precinct or town, may, by an order filed with the county clerk and published as he or she may prescribe, direct that the court be held or continued [at] :

(a) At any other place or location in the city or county than that appointed, when [war, pestilence, or other public calamity, or the dangers thereof, or the destruction of the building appointed for holding the court, may] emergency conditions which impair the ability of the court to perform its basic functions render it necessary; [and] or

(b) By means of remote communication when necessary to promote the interest of justice.

2. A judge who directs that the court be held or continued at another place or location pursuant to subsection 1 may, in the same manner, revoke the order and, in his or her discretion, appoint another place [in the same city] or [county] location for holding or continuing the court.

3. As used in this section, “remote communication” means communication through telephone or videoconferencing.

Sec. 3. NRS 1.080 is hereby amended to read as follows:

1.080 When the court is held at a place or location appointed as provided in NRS 1.070, every person held to appear at the court shall appear at the place or location so appointed.

Sec. 4. NRS 1.090 is hereby amended to read as follows:

1.090 The sitting of every court of justice [shall] must be public except as otherwise provided by law , [;] but the judge of any court may exclude any minor during any criminal trial therein except [such minor be on trial, or] when the minor is on trial or is testifying as a witness . [, or when the minor shall be a law student preparing to apply for a license to practice law.]

Sec. 5. NRS 1.117 is hereby amended to read as follows:

1.117 [1.] The Supreme Court [may] shall adopt rules not inconsistent with the laws of this State to provide for the electronic filing, storage and reproduction of documents filed with the courts of justice.

[2. If the Supreme Court adopts such rules, each court of justice may provide for the electronic filing, storage and reproduction of documents filed with the court in accordance with those rules.]

Sec. 6. NRS 1.130 is hereby amended to read as follows:

1.130 1. No court except a justice court or a municipal court shall be opened nor shall any judicial business be transacted except by a justice court or municipal court on Sunday, or on any day declared to be a legal holiday according to the provisions of NRS 236.015, except for the following purposes:

(a) To give, upon their request, instructions to a jury then deliberating on their verdict.

(b) To receive a verdict or discharge a jury.

(d) To receive electronic communications [by telephone and for] related to the issuance of:

(1) A temporary order pursuant to subsection 8 of NRS 33.020; or

(2) An emergency order for protection against high-risk behavior pursuant to NRS 33.570.

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ê2023 Statutes of Nevada, Page 2596 (CHAPTER 427, SB 63)ê

(e) For the issuance of any temporary or emergency order listed in paragraph (d).

(f) For the issue of a writ of attachment, which may be issued on each and all of the days above enumerated upon the plaintiff, or some person on behalf of the plaintiff, setting forth in the affidavit required by law for obtaining the writ the additional averment as follows:

That the affiant has good reason to believe, and does believe, that it will be too late for the purpose of acquiring a lien by the writ to wait until subsequent day for the issuance of the same.

All proceedings instituted, and all writs issued, and all official acts done on any of the days above specified, under and by virtue of this section, shall have all the validity, force and effect of proceedings commenced on other days, whether a lien be obtained or a levy made under and by virtue of the writ.

2. Nothing herein contained shall affect private transactions of any nature whatsoever.

3. As used in this section, “electronic communication” includes, without limitation, communication made by telephone, wireless phone or electronic mail or through the use of an Internet or network site.

Sec. 7. NRS 1.140 is hereby amended to read as follows:

1.140 [The Supreme Court, the Court of Appeals, the district courts, the justice courts and those municipal courts designated as courts of record pursuant to NRS 5.010]

1. Each court of justice in this State shall have a seal.

2. The Supreme Court shall adopt rules relating to the format of a seal required by subsection 1 and the use and storage of any such seal.

Sec. 8. NRS 1.235 is hereby amended to read as follows:

1.235 1. Any party to an action or proceeding pending in any court other than the Supreme Court or the Court of Appeals, who seeks to disqualify a judge for actual or implied bias or prejudice must file an affidavit specifying the facts upon which the disqualification is sought. The affidavit [of a party represented by an attorney must be accompanied by a certificate of the attorney of record] must contain a statement that the affidavit is filed in good faith and is not [interposed for delay.] :

(a) Interposed for delay;

(b) Intended to harass a judge; or

(1) Unnecessarily increasing the costs of litigation; or

(2) Attempting to prevent prosecution.

2. Except as otherwise provided in subsections [2] 3 and [3,] 4 the affidavit must be filed:

(a) Not less than 20 days before the date set for trial or hearing of the case; or

(b) Not less than 3 days before the date set for the hearing of any pretrial matter.

[2.] 3. Except as otherwise provided in this subsection and subsection [3,] 4, if a case is not assigned to a judge before the time required under subsection [1] 2 for filing the affidavit, the affidavit must be filed:

(a) Within 10 days after the party or the party’s attorney is notified that the case has been assigned to a judge;

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ê2023 Statutes of Nevada, Page 2597 (CHAPTER 427, SB 63)ê

(b) Before the hearing of any pretrial matter; or

Ê whichever occurs first. If the facts upon which disqualification of the judge is sought are not known to the party before the party is notified of the assignment of the judge or before any pretrial hearing is held, the affidavit may be filed not later than the commencement of the trial or hearing of the case.

[3.] 4. If a case is reassigned to a new judge and the time for filing the affidavit under subsection [1] 2 and paragraph (a) of subsection [2] 3 has expired, the parties have 10 days after notice of the new assignment within which to file the affidavit, and the trial or hearing of the case must be rescheduled for a date after the expiration of the 10-day period unless the parties stipulate to an earlier date.

[4.] 5. At the time the affidavit is filed, a copy must be served upon the judge sought to be disqualified. Service must be made by delivering the copy to the judge personally or by leaving it at the judge’s chambers with some person of suitable age and discretion employed therein.

[5.] 6. Except as otherwise provided in subsection [6,] 7, the judge against whom an affidavit alleging bias or prejudice is filed shall proceed no further with the matter and shall:

(a) If the judge is a district judge, immediately transfer the case to another department of the court, if there is more than one department of the court in the district, or request the judge of another district court to preside at the trial or hearing of the matter;

(b) If the judge is a justice of the peace, immediately arrange for another justice of the peace to preside at the trial or hearing of the matter as provided pursuant to NRS 4.032, 4.340 or 4.345, as applicable; or

(c) If the judge is a municipal judge, immediately arrange for another municipal judge to preside at the trial or hearing of the matter as provided pursuant to NRS 5.023 or 5.024, as applicable.

[6.] 7. A judge may challenge an affidavit alleging bias or prejudice by filing a written answer with the clerk of the court within 5 judicial days after the affidavit is [filed,] served, admitting or denying any or all of the allegations contained in the affidavit and setting forth any additional facts which bear on the question of the judge’s disqualification. The question of the judge’s disqualification must thereupon be heard and determined by [another judge agreed upon by the parties or, if they are unable to agree, by] a judge appointed:

(a) If the judge is a district judge, by the presiding judge of the judicial district in judicial districts having more than one judge, or if the presiding judge of the judicial district is sought to be disqualified, by the judge having the greatest number of years of service;

(b) If the judge is a justice of the peace, by the presiding judge of the justice court in justice courts having more than one justice of the peace, or if the presiding judge is sought to be disqualified, by the justice of the peace having the greatest number of years of service;

(c) If the judge is a municipal judge, by the presiding judge of the municipal court in municipal courts having more than one municipal judge, or if the presiding judge is sought to be disqualified, by the municipal judge having the greatest number of years of service; or

(d) If there is no presiding judge, by the Supreme Court.

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ê2023 Statutes of Nevada, Page 2598 (CHAPTER 427, SB 63)ê

Sec. 8.5. NRS 1.270 is hereby amended to read as follows:

1.270 [No]

1. Except as otherwise provided in subsection 2, no judge or justice of the peace shall have a partner or associate acting as attorney or counsel in any court in this State.

2. A part-time judge may have a partner or associate who practices law in this State if the partner or associate does not engage in the practice of law before the part-time judge or in any court subject to the appellate jurisdiction of a court in which the part-time judge sits.

Sec. 9. NRS 1.360 is hereby amended to read as follows:

1.360 Under the direction of the Supreme Court, the Court Administrator shall:

1. Examine the administrative procedures employed in the [offices of the judges, clerks, court reporters and employees of all] courts of this State and make recommendations [, through the Chief Justice,] for the improvement [of those procedures;] thereof;

2. [Examine the condition of the dockets of the courts and determine the need for assistance by any court;

3. Make recommendations to and carry out the directions of the Chief Justice relating to the assignment of district judges where district courts are in need of assistance;

4.] Develop a uniform system for collecting and compiling statistics and other data regarding the operation of the State Court System and transmit that information to the Supreme Court so that proper action may be taken in respect thereto;

[5.] 3. Prepare and submit a budget of state appropriations necessary for the maintenance , [and] operation and improvement of the State Court System and make recommendations in respect thereto;

[6.] 4. Develop procedures for accounting, internal auditing, procurement and disbursement for the State Court System;

[7.] 5. Collect statistical and other data and make reports relating to the expenditure of all public money for the maintenance and operation of the State Court System and the offices connected therewith;

[8.] 6. Compile statistics from the information required to be maintained by the clerks of the district courts pursuant to NRS 3.275 regarding criminal and civil cases and make reports as to the cases filed in the district courts;

[9.] 7. Formulate and submit to the Supreme Court recommendations of policies or proposed legislation for the improvement of the State Court System;

[10.] 8. On or before January 1 of each year, submit to the Director of the Legislative Counsel Bureau a written report:

(a) Compiling the information submitted to the Court Administrator pursuant to NRS 3.243, 4.175 and 5.045 during the immediately preceding fiscal year; and

(b) Concerning:

(1) The distribution of money deposited in the special account created [by] pursuant to NRS 176.0613 to assist with funding and establishing specialty court programs;

(2) The current status of any specialty court programs to which money from the account was allocated since the last report;

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ê2023 Statutes of Nevada, Page 2599 (CHAPTER 427, SB 63)ê

(3) Statistics compiled from information required to be maintained by clerks of the district courts pursuant to NRS 3.275 concerning specialty courts, including, without limitation, the number of participants in such programs, the nature of the criminal charges that were filed against participants, the number of participants who have completed the programs and the disposition of the cases; and

(4) Such other related information as the Court Administrator deems appropriate; and

[11.] 9. Attend to such other matters as may be assigned by the Supreme Court or prescribed by law.

Sec. 10. NRS 1.400 is hereby amended to read as follows:

1.400 The Commission on Judicial Selection may adopt [regulations] rules for the operation of the Commission and for maintaining the confidentiality of its proceedings and records.

Sec. 11. NRS 1.500 is hereby amended to read as follows:

1.500 Interpreters and translators shall receive such fees as the court [by whom they are employed shall certify to be just.] determines are reasonable and necessary.

Sec. 12. NRS 1.510 is hereby amended to read as follows:

1.510 1. [The] Subject to the limits of legislative appropriation, the Court Administrator shall, with the advice of the committee established pursuant to NRS 1.530, adopt [regulations which, subject to the availability of funding, establish] rules establishing a program for the certification or registration of court interpreters for persons with limited English proficiency who are witnesses, defendants and litigants.

2. The [regulations established] rules adopted pursuant to subsection 1 must set forth:

(a) The specific languages for which court interpreters may obtain certification or registration . [, based upon the need for interpreters of those languages.]

(b) Any examination and the qualifications which are required for:

(1) Certification or registration; and

(2) Renewal of the certification or registration.

(c) The circumstances under which the Court Administrator will deny, suspend or refuse to renew a certificate or registration.

(d) The circumstances under which the Court Administrator will take disciplinary action against a certified or registered court interpreter.

(e) The circumstances under which a court or juvenile court must proceed if a certified or registered interpreter is not available.

(f) Except as otherwise provided in NRS 50.050, the rate and source of the compensation to be paid for services provided by a certified or registered court interpreter.

3. An application for a certificate or registration as a court interpreter pursuant to subsection 1 must include the social security number of the applicant.

4. Every applicant for certification or registration as a court interpreter pursuant to subsection 1 must submit with his or her application:

(a) A complete set of his or her fingerprints; and

(b) Written permission authorizing the Court Administrator to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for its initial report on the criminal history of the applicant and for reports thereafter upon renewal of the certification or registration, and for submission to the Federal Bureau of Investigation for its report on the criminal history of the applicant.

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ê2023 Statutes of Nevada, Page 2600 (CHAPTER 427, SB 63)ê

reports thereafter upon renewal of the certification or registration, and for submission to the Federal Bureau of Investigation for its report on the criminal history of the applicant.

5. Except as otherwise provided by a specific [regulation] rule of the Court Administrator, it is grounds for disciplinary action for a certified or registered court interpreter to act as interpreter in any action in which:

(a) The spouse of the court interpreter is a party;

(b) A party or witness is otherwise related to the court interpreter;

(d) The court interpreter otherwise has an interest in the outcome of the proceeding.

6. As used in this section, “person with limited English proficiency” means a person who speaks a language other than English and who cannot readily understand or communicate in the English language.

Sec. 13. NRS 1.520 is hereby amended to read as follows:

1.520 The Court Administrator may:

1. With the advice of the committee established pursuant to NRS 1.530, adopt any [regulations] rules necessary to carry out a program for the certification [and] or registration of court interpreters [.] established pursuant to NRS 1.510.

2. Impose on a certified or registered court interpreter:

(a) Any fees necessary to reimburse the Court Administrator for the cost of administering the program; and

(b) A fine for any violation of a [regulation] rule of the Court Administrator adopted pursuant to this section or NRS 1.510.

Sec. 14. NRS 1.530 is hereby amended to read as follows:

1.530 1. The Chief Justice shall appoint, from a list of recommendations submitted [to the Chief Justice] by the Court Administrator, a committee to advise the Court Administrator regarding the adoption of [regulations] rules pursuant to NRS 1.510 and 1.520. The committee must consist of:

(a) A district judge;

(b) A justice of the peace or municipal judge ; [in a county whose population is less than 100,000;]

(d) An administrator of a justice court or municipal court ; [in a county whose population is less than 100,000;]

(e) A representative of the Nevada System of Higher Education;

(f) A representative of a nonprofit organization [for] which serves persons who speak a language other than English;

(g) A person certified to act as an interpreter for a court of this State or a federal court;

(h) A person certified to act as an interpreter for a court of this State in the Spanish language; and

(i) A person certified or registered to act as an interpreter for a court of this State in a language other than Spanish.

2. The Court Administrator is ex officio chair of the committee [.] and may designate another member of the committee to serve as the vice chair of the committee.

3. Members of the committee shall serve in that capacity without any additional compensation.

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ê2023 Statutes of Nevada, Page 2601 (CHAPTER 427, SB 63)ê

4. The committee shall submit an annual report to the Chief Justice and to the Director of the Legislative Counsel Bureau for transmittal to the Legislature and make the annual report available to the public. The annual report must contain, without limitation:

(a) A summary of the activities of the committee during the immediately preceding [fiscal] year, including any [development of recommendations for] revisions to the Nevada State Court Language Access Plan adopted by the Nevada Certified Court Interpreter Program as established pursuant to NRS 1.510; and

(b) Statistical information concerning the usage of court interpreters [,] in courts of this State for persons with limited English proficiency, including, without limitation, information on the usage of [certified] :

(1) Certified and registered court interpreters ; and [the demand for court interpreters for persons with limited English proficiency in courts of this State.]

(2) Court interpreters who are not certified or registered when a certified or registered court interpreter is not available.

5. As used in this section, “person with limited English proficiency” has the meaning ascribed to it in NRS 1.510.

Sec. 15. NRS 1.540 is hereby amended to read as follows:

1.540 1. It is unlawful for a person to act as a certified or registered court interpreter or advertise or put out any sign or card or other device which might indicate to the public that the person is entitled to practice as a certified or registered court interpreter without a certificate or registration as an interpreter issued by the Court Administrator pursuant to NRS 1.510 and 1.520.

2. No civil action may be instituted, nor recovery therein be had, for a violation of the provisions of this section or NRS 1.510 or 1.520 or a violation of a [regulation] rule adopted by the Court Administrator pursuant to NRS 1.510 or 1.520.

Sec. 16. NRS 1.545 is hereby amended to read as follows:

1.545 1. The Court Administrator shall [develop and implement a] adopt rules prescribing the process by which a person with a criminal history may petition the Court Administrator to review the criminal history of the person to determine if the person’s criminal history will disqualify the person from obtaining a certificate or registration as a court interpreter pursuant to NRS 1.510.

2. [Not later than 90 days after a petition is submitted to the Court Administrator pursuant to subsection 1, the Court Administrator shall inform the person of the determination of the Court Administrator of whether the person’s criminal history will disqualify the person from obtaining a certificate or registration. The Court Administrator is not bound by his or her determination of disqualification or qualification and may rescind such a determination at any time.

3. The Court Administrator may provide instructions to a person who receives a determination of disqualification to remedy the determination of disqualification. A person may resubmit a petition pursuant to subsection 1 not earlier than 6 months after receiving instructions pursuant to this subsection if the person remedies the determination of disqualification.

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ê2023 Statutes of Nevada, Page 2602 (CHAPTER 427, SB 63)ê

4. A person with a criminal history may petition the Court Administrator at any time, including, without limitation, before obtaining any education or paying any fee required to obtain a certificate or registration.

5. A person may submit a new petition to the Court Administrator not earlier than 2 years after the final determination of the initial petition submitted to the Court Administrator.

6.] The Court Administrator may [impose] adopt rules establishing a fee of up to $50 upon the person to fund the administrative costs in complying with the provisions of this section. [The Court Administrator may waive such fees or allow such fees to be covered by funds from a scholarship or grant.

7. The Court Administrator may post on its Internet website:

(a) The requirements to obtain a certification or registration as a court interpreter; and

(b) A list of crimes, if any, that would disqualify a person from obtaining a certification or registration as a court interpreter from the Court Administrator.

8. The Court Administrator may request the criminal history record of a person who petitions the Court Administrator for a determination pursuant to subsection 1. To the extent consistent with federal law, if the Court Administrator makes such a request of a person, the Court Administrator shall require the person to submit his or her criminal history record which includes a report from:

(a) The Central Repository for Nevada Records of Criminal History; and

(b) The Federal Bureau of Investigation.

9. A person who petitions the Court Administrator for a determination pursuant to subsection 1 shall not submit false or misleading information to the Court Administrator.

10. The Court Administrator shall, on or before the 20th day of January, April, July and October, submit to the Director of the Legislative Counsel Bureau in an electronic format prescribed by the Director, a report that includes:

(a) The number of petitions submitted to the Court Administrator pursuant to subsection 1;

(b) The number of determinations of disqualification made by the Court Administrator pursuant to subsection 1;

(d) Any other information that is requested by the Director or which the Court Administrator determines would be helpful.

11. The Director shall transmit a compilation of the information received pursuant to subsection 10 to the Legislative Commission quarterly, unless otherwise directed by the Commission.]

Sec. 17. NRS 2.040 is hereby amended to read as follows:

2.040 Whenever any vacancy [shall occur] occurs in the office of justice of the Supreme Court, the Governor shall fill the same by granting a commission [,] to a candidate put forth by the Commission on Judicial Selection, which [shall expire at] expires on the first Monday of January following the next general election by the people and upon the qualification of his or her successor, at which election a justice [shall] must be chosen for the balance of the unexpired term.

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ê2023 Statutes of Nevada, Page 2603 (CHAPTER 427, SB 63)ê

Sec. 18. NRS 2.120 is hereby amended to read as follows:

2.120 1. The Supreme Court may make rules not inconsistent with the Constitution and laws of the State for its own government, the government of the district courts, and the government of the State Bar of Nevada. Such rules shall be published promptly upon adoption and take effect on a date specified by the Supreme Court . [which in no event shall be less than 30 days after entry of an order adopting such rules.]

2. The Supreme Court, by rules adopted and published from time to time, shall regulate original and appellate civil practice and procedure, including, without limitation, pleadings, motions, writs, notices and forms of process, in judicial proceedings in all courts of the State, for the purpose of simplifying the same and of promoting the speedy determination of litigation upon its merits. Such rules shall not abridge, enlarge or modify any substantive right and shall not be inconsistent with the Constitution of the State of Nevada. Such rules shall be published promptly upon adoption and take effect on a date specified by the Supreme Court . [which in no event shall be less than 60 days after entry of an order adopting such rules.]

Sec. 19. NRS 2.150 is hereby amended to read as follows:

2.150 If [a room in which to hold the court, together with attendants, fuel, lights and stationery, suitable and sufficient for the transaction of business, is] an appropriate facility and any necessary staff, materials and technological resources are not provided by the State, the Court may [direct] order the [sheriff of any county where the session is held] State to provide [a room, attendants, fuel, lights and stationery,] an appropriate facility and any staff, materials and technological resources reasonably necessary for the transaction of the business of the Court, and the expenses must be paid out of the State Treasury.

Sec. 20. NRS 2.195 is hereby amended to read as follows:

2.195 [1. Each justice of the] The Supreme Court [may use a facsimile] shall provide by rule for the use of a digital signature or electronic signature [produced through a mechanical device in place of the justice’s handwritten signature whenever the necessity arises and upon approval] by each justice of the Supreme Court . [, subject to the following conditions:

(a) That the mechanical device must be of such a nature that the facsimile signature may be removed from the mechanical device and kept in a separate secure place.

(b) That the use of the facsimile signature may be made only under the direction and supervision of the justice whose signature it represents.

(c) That the entire mechanical device must at all times be kept in a vault, securely locked, when not in use, to prevent any misuse of the device.

2. No facsimile signature produced through a mechanical device authorized by the provisions of this section may be combined with the signature of another officer.]

Sec. 21. NRS 2.200 is hereby amended to read as follows:

2.200 [1.] The Supreme Court shall appoint a Clerk of the Supreme Court [; but any person elected to the office of Clerk of the Supreme Court before July 1, 1957, shall continue to hold such office until the expiration of the term for which he or she may have been elected.

2. The Clerk of the Supreme Court shall hold office and be removable] who serves at the pleasure of the Supreme Court.

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ê2023 Statutes of Nevada, Page 2604 (CHAPTER 427, SB 63)ê

Sec. 22. NRS 2.290 is hereby amended to read as follows:

2.290 The Supreme Court [, or a majority thereof,] is authorized to designate any person appointed and employed pursuant to NRS 2.295 to act as Bailiff of the Supreme Court.

Sec. 23. NRS 2.295 is hereby amended to read as follows:

2.295 The Supreme Court [, or a majority thereof,] is authorized to appoint and employ one or more persons to provide for the safety and security of the justices and employees of the Supreme Court and to carry out any necessary police duties at the direction of the Chief Justice to maintain safe and reasonable access to justice for residents of Nevada.

Sec. 24. NRS 2.300 is hereby amended to read as follows:

2.300 The Supreme Court [, or a majority thereof,] is authorized to employ [stenographic clerks, law clerks, legal assistants, legal secretaries and other] necessary employees [within the limits of the appropriation made for the support of the Supreme Court.] for the operation, maintenance and improvement of the Court and the State Court System.

Sec. 25. NRS 2.410 is hereby amended to read as follows:

2.410 The Supreme Court Law Library [shall] must be under the supervision and control of the Supreme Court, which may make and enforce such rules [and regulations] as may be necessary for the government, use and services of the Library. Such rules [or regulations shall] must assure that the Library is accessible for public use and to users in all parts of the State.

Sec. 26. NRS 3.025 is hereby amended to read as follows:

3.025 1. In each judicial district that includes a county whose population is 100,000 or more, the district judges of that judicial district shall choose from among those district judges a Chief Judge who is to be the presiding judge of the judicial district.

2. The Chief Judge shall:

(a) Assign cases to each judge in the judicial district;

(b) Prescribe the hours of court;

(d) Perform all other duties of the Chief Judge or of a presiding judge that are set forth in this chapter and any other provision of NRS.

3. If a case involves a matter within the jurisdiction of the family court and:

(a) The parties to the case are also the parties in any other pending case or were the parties in any other previously decided case assigned to a department of the family court in the judicial district; or

(b) A child involved in the case is also involved in any other pending case or was involved in any other previously decided case assigned to a department of the family court in the judicial district, other than a case within the jurisdiction of the juvenile court pursuant to title 5 of NRS,

Ê the Chief Judge shall assign the case to the department of the family court to which the other case is presently assigned or, if the other case has been decided, to the department of the family court that decided the other case, unless a different assignment is required by another provision of NRS, a court rule or the Revised Nevada Code of Judicial Conduct or the Chief Judge determines that a different assignment is necessary because of considerations related to the management of the caseload of the district judges within the judicial district. If a case described in this subsection is heard initially by a master, the recommendation, report or order of the master must be submitted to the district judge of the department of the family court to which the case has been assigned pursuant to this subsection for consideration and decision by that district judge.

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ê2023 Statutes of Nevada, Page 2605 (CHAPTER 427, SB 63)ê

must be submitted to the district judge of the department of the family court to which the case has been assigned pursuant to this subsection for consideration and decision by that district judge.

Sec. 27. NRS 3.100 is hereby amended to read as follows:

3.100 1. Except as otherwise provided in this subsection, the district courts shall hold court at the county seat of their respective counties. The board of county commissioners may establish one or more additional locations within the county for the district court to hold court.

2. [If a room for holding court at the county seat is not provided by the county, together with attendants, fuel, lights and stationery, suitable and sufficient for the transaction of business, the court may direct the sheriff to provide such room, attendants, fuel, lights and stationery,] The board of county commissioners shall:

(a) Provide and furnish an appropriate facility for the transaction of the business of the court; and [the expenses thereof shall be a county charge.]

(b) Appropriate a budget to the district court which includes, without limitation, money for the payment of expenses which are reasonable and necessary to carry out the powers and duties of the district court in the administration of justice.

3. [An office at each county seat must be provided and furnished by and at the expense of the several counties for the several district judges. Whenever the county commissioners of any county neglect or refuse to provide and furnish such an office for the use of the district judge, the district judge may make an order, which must be entered upon the minutes of the court, requiring the sheriff to provide and furnish the office. The necessary expenses incurred therein are a legal and valid claim against the county.] Except as otherwise provided in this subsection, the board of county commissioners may require the district court to expend money, appropriated for a specific purpose. The board of county commissioners shall not impose any specific requirements regarding the expenditure of money that interfere with the ability of the district court to carry out its constitutional functions.

4. If the board of county commissioners neglects or refuses to provide the district court with the resources reasonable and necessary to perform the constitutional functions of the district court, the district court may order the board to provide such resources to be paid out of the county treasury.

5. No money shall be drawn from the county treasury to pay for any expense incurred or any expenditure made on behalf of the district court except as appropriated by the board of county commissioners in accordance with the budgeting process of the county.

Sec. 28. NRS 4.155 is hereby amended to read as follows:

4.155 In townships where more than one justice of the peace has been provided for by NRS 4.020, such justices of the peace shall have concurrent and coextensive jurisdiction within the territorial limits provided by law, and may make such rules [and regulations,] not inconsistent with law, as will enable them to transact judicial business in a convenient and lawful manner.

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ê2023 Statutes of Nevada, Page 2606 (CHAPTER 427, SB 63)ê

Sec. 29. NRS 4.157 is hereby amended to read as follows:

4.157 1. The justices of the peace of each justice court having more than one justice of the peace shall choose from among those justices of the peace a chief justice of the peace who is to be the presiding judge of that court.

2. The chief justice of the peace shall:

(a) Assign cases to each justice of the peace of the justice court;

(b) Prescribe the hours of court;

(d) Perform all other duties of the chief justice of the peace or of the presiding judge of a justice court that are set forth in this chapter and any other provision of NRS.

Sec. 30. NRS 5.021 is hereby amended to read as follows:

5.021 1. The municipal judges of each municipal court having more than one municipal judge shall choose from among those municipal judges a chief municipal judge who is to be the presiding judge of that court.

2. The chief municipal judge shall:

(a) Assign cases to each judge in the municipal court;

(b) Prescribe the hours of court;

(d) Perform all other duties of the chief municipal judge or of the presiding judge of a municipal court that are set forth in this chapter and any other provision of NRS.

Sec. 30.5. Chapter 33 of NRS is hereby amended by adding thereto a new section to read as follows:

1. An order for protection against high-risk behavior, or the behaviors described in NRS 33.550, issued by the court of another state, territory or Indian tribe within the United States is valid and must be accorded full faith and credit and enforced by the courts of this State as if it were issued by a court in this State, regardless of whether the order has been registered in this State, if a court in this State determines that:

(a) The issuing court had jurisdiction over the parties and the subject matter under the laws of the state, territory or Indian tribe in which the order was issued; and

(b) The adverse party was given reasonable notice and an opportunity to be heard before the order was issued or, in the case of an emergency order, the adverse party was given reasonable notice and an opportunity to be heard within the time required by the laws of the issuing state, territory or tribe and, in any event, within a reasonable time after the order was issued.

2. A law enforcement officer shall enforce an order for protection against high-risk behavior issued by a court of another state, territory or Indian tribe and shall make an arrest for a violation thereof in the same manner that a law enforcement officer would make an arrest for a violation of an emergency or extended order issued by a court of this State unless it is apparent to the officer that the order is not authentic on its face. An officer shall determine that an order is authentic on its face if the order contains:

(a) The names of the parties;

(b) Information indicating that the order has not expired; and

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ê2023 Statutes of Nevada, Page 2607 (CHAPTER 427, SB 63)ê

(c) Information indicating that the court which issued the order had legal authority to issue the order as evidenced by a certified copy of the order, a file-stamped copy of the order, an authorized signature or stamp of the court which issued the order or another indication of the authority of the court which issued the order.

3. An officer may determine that any order is authentic on its face.

4. In enforcing an order for protection against high-risk behavior issued by a court of another state, territory or Indian tribe or arresting a person for a violation of such an order, a law enforcement officer may rely upon:

(a) A copy of an order for protection against high-risk behavior that has been provided to the officer;

(b) An order for protection against high-risk behavior that is included in the Central Repository for Nevada Records of Criminal History or in any national crime information database;

(c) Oral or written confirmation from a law enforcement agency or court in the jurisdiction in which the order for protection against high-risk behavior was issued that the order is valid and effective; or

(d) An examination of the totality of the circumstances concerning the existence of a valid and effective order for protection against high-risk behavior.

5. The fact that an order has not been registered or included in the Central Repository for Nevada Records of Criminal History or in any national crime information database is not grounds for a law enforcement officer to refuse to enforce the terms of the order unless it is apparent to the officer that the order is not authentic on its face.

6. A court or law enforcement officer who enforces an order for protection against high-risk behavior issued by a court of another state, territory or Indian tribe based upon a reasonable belief that the order is valid or who refuses to enforce such an order based upon a reasonable belief that the order is not valid and the employer of such a law enforcement officer are immune from civil and criminal liability for any action taken or not taken based on that belief.

Sec. 31. NRS 33.020 is hereby amended to read as follows:

33.020 1. If it appears to the satisfaction of the court from specific facts shown by a verified application that an act of domestic violence has occurred or there exists a threat of domestic violence, the court may grant a temporary or extended order. A court shall only consider whether the act of domestic violence or the threat thereof satisfies the requirements of NRS 33.018 without considering any other factor in its determination to grant the temporary or extended order.

2. A temporary or extended order must not be granted to the applicant or the adverse party unless the applicant or the adverse party has requested the order and has filed a verified application that an act of domestic violence has occurred or there exists a threat of domestic violence. If the applicant reasonably believes that disclosing his or her address and contact information in the application would jeopardize his or her safety, the applicant may decline to disclose his or her address and contact information in the application. If the applicant declines to disclose his or her address and contact information in the application, then such information:

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ê2023 Statutes of Nevada, Page 2608 (CHAPTER 427, SB 63)ê

(a) Must be disclosed to the court and, for criminal justice purposes, to any other authorized agency of criminal justice to allow the agency of criminal justice to carry out any duty required pursuant to NRS 33.017 to 33.100, inclusive;

(b) Must be maintained in a separate, confidential, electronic document or database which is not publicly accessible; and

3. The court may require the applicant or the adverse party, or both, to appear before the court before determining whether to grant the temporary or extended order.

4. A temporary order may be granted with or without notice to the adverse party. An extended order may only be granted after notice to the adverse party and a hearing on the application.

5. A hearing on an application for an extended order must be held within 45 days after the date on which the application for the extended order is filed. If the adverse party has not been served pursuant to NRS 33.060 or 33.065 and fails to appear at the hearing, the court may, upon a showing that law enforcement, after due diligence, has been unable to serve the adverse party or that the adverse party has sought to avoid service by concealment, set a date for a second hearing which must be held within 90 days after the date on which the first hearing was scheduled.

6. If the adverse party has not been served pursuant to NRS 33.060 or 33.065 and fails to appear on the date set for a second hearing on an application for an extended order pursuant to subsection 5, the court may, upon a showing that law enforcement, after due diligence, has been unable to serve the adverse party or that the adverse party has sought to avoid service by concealment, set a date for a third hearing which must be held within 90 days after the date on which the second hearing was scheduled.

7. The court shall rule upon an application for a temporary order within 1 judicial day after it is filed.

8. If it appears to the satisfaction of the court from specific facts communicated by [telephone] electronic means to the court by an alleged victim that an act of domestic violence has occurred and the alleged perpetrator of the domestic violence has been arrested and is presently in custody pursuant to NRS 171.137, the court may grant a temporary order. Before approving an order under such circumstances, the court shall confirm with the appropriate law enforcement agency that the applicant is an alleged victim and that the alleged perpetrator is in custody. Upon approval by the court, the signed order may be transmitted to the facility where the alleged perpetrator is in custody by electronic or telephonic transmission to a facsimile machine. If such an order is received by the facility holding the alleged perpetrator while the alleged perpetrator is still in custody, the order must be personally served by an authorized employee of the facility before the alleged perpetrator is released. The court shall mail a copy of each order issued pursuant to this subsection to the alleged victim named in the order and cause the original order to be filed with the court clerk on the first judicial day after it is issued.

9. In a county whose population is 52,000 or more, the court shall be available 24 hours a day, 7 days a week, including nonjudicial days and holidays, to receive electronic communications [by telephone] and for the issuance of a temporary order pursuant to subsection 8.

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ê2023 Statutes of Nevada, Page 2609 (CHAPTER 427, SB 63)ê

10. In a county whose population is less than 52,000, the court may be available 24 hours a day, 7 days a week, including nonjudicial days and holidays, to receive electronic communications [by telephone] and for the issuance of a temporary order pursuant to subsection 8.

11. The clerk of the court shall inform the protected party upon the successful transfer of information concerning the registration to the Central Repository for Nevada Records of Criminal History as required pursuant to NRS 33.095.

12. As used in this section, “agency of criminal justice” has the meaning ascribed to it in NRS 179A.030.

Sec. 31.5. NRS 33.500 is hereby amended to read as follows:

33.500 As used in NRS 33.500 to 33.670, inclusive, and section 30.5 of this act, unless the context otherwise requires, the words and terms defined in NRS 33.510 to 33.540, inclusive, have the meanings ascribed to them in those sections.

Sec. 32. NRS 50.054 is hereby amended to read as follows:

50.054 1. Except as otherwise provided by a [regulation] rule of the Court Administrator adopted pursuant to NRS 1.510 and 1.520, a person shall not act as an interpreter in a proceeding if the interpreter is:

(a) The spouse of a witness;

(b) Otherwise related to a witness;

(d) Otherwise interested in the outcome of the proceeding.

2. Before undertaking his or her duties, the interpreter shall swear or affirm that he or she will:

(a) To the best of his or her ability, interpret accurately to the person with limited English proficiency in the language of the person, questions and statements addressed to the person;

(b) Make a true interpretation of the statements of the person with limited English proficiency in an understandable manner; and

3. While in the proper performance of his or her duties, an interpreter has the same rights and privileges as the person with limited English proficiency including the right to examine all relevant material, but is not entitled to waive or exercise any of those rights or privileges on behalf of the person with limited English proficiency.

4. If an interpreter appointed for a person with limited English proficiency is not effectively or accurately communicating with or on behalf of the person, and that fact becomes known to the person who appointed the interpreter, another interpreter must be appointed.

5. Claims against a county, municipality, this State or any agency thereof for the compensation of an interpreter in a criminal proceeding or other proceeding for which an interpreter must be provided at public expense must be paid in the same manner as other claims against the respective entities are paid. Payment may be made only upon the certificate of the judge, magistrate or other person presiding over the proceedings that the interpreter has performed the services required and incurred the expense claimed.

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ê2023 Statutes of Nevada, Page 2610 (CHAPTER 427, SB 63)ê

6. As used in this section:

(a) “Interpreter” means a person who has a certificate or registration as an interpreter issued by the Court Administrator pursuant to NRS 1.510 and 1.520.

(b) “Person with limited English proficiency” has the meaning ascribed to it in NRS 1.510.

Sec. 33. NRS 50.0545 is hereby amended to read as follows:

50.0545 1. An interpreter must be appointed at public expense for a person with limited English proficiency who is a defendant or a witness in a criminal proceeding.

2. If a certified or registered court interpreter is not available, a court shall appoint an interpreter in accordance with the [regulations] rules adopted pursuant to paragraph (e) of subsection 2 of NRS 1.510.

3. As used in this section:

(a) “Interpreter” means a person who has a certificate or registration as an interpreter issued by the Court Administrator pursuant to NRS 1.510 and 1.520.

(b) “Person with limited English proficiency” has the meaning ascribed to it in NRS 1.510.

Sec. 34. NRS 62D.405 is hereby amended to read as follows:

62D.405 1. The juvenile court shall appoint at public expense an interpreter for a person with limited English proficiency in all proceedings conducted pursuant to the provisions of this title if the person with limited English proficiency is:

(a) The child who is alleged to be or has been adjudicated delinquent or in need of supervision;

(b) A parent or guardian of the child that is alleged to be or has been adjudicated delinquent or in need of supervision; or

2. If a certified or registered court interpreter is not available, the juvenile court shall appoint an interpreter in accordance with the [regulations] rules adopted pursuant to paragraph (e) of subsection 2 of NRS 1.510.

3. As used in this section:

(a) “Interpreter” means a person who has a certificate or registration as an interpreter issued by the Court Administrator pursuant to NRS 1.510 and 1.520.

(b) “Person with limited English proficiency” has the meaning ascribed to it in NRS 1.510.

Sec. 35. NRS 281.010 is hereby amended to read as follows:

281.010 1. The following officers must be elected:

(a) A Governor.

(b) A Lieutenant Governor.

(d) The number of members of the House of Representatives of the United States to which this State may be entitled.

(e) The number of presidential electors to which this State may be entitled.

(f) [Five justices] Justices of the Supreme Court.

(g) Judges of the Court of Appeals . [other than the initial three judges.]

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ê2023 Statutes of Nevada, Page 2611 (CHAPTER 427, SB 63)ê

(h) District judges.

(i) Senators and members of the Assembly.

(j) A Secretary of State.

(k) A State Treasurer.

(l) A State Controller.

(m) An Attorney General.

(n) Other officers whose elections are provided for by law.

(o) For each county, and the equivalent officers for Carson City:

(1) One county clerk, who is ex officio clerk of the board of county commissioners and may also be clerk of the district court of the county.

(2) One sheriff.

(3) One district attorney.

(4) One public administrator, except where otherwise provided by law.

(5) One county assessor, except where otherwise provided by law.

(6) One county treasurer, except where otherwise provided by law.

(7) The number of county commissioners as provided by law.

(8) One county recorder, who is ex officio county auditor in counties in which a county comptroller has not been appointed.

(9) Justices of the peace.

(10) Constables, except where otherwise provided by law.

2. All officers who are not elected must be appointed.

Sec. 36. The provisions of subsection 1 of NRS 218D.380 do not apply to any provision of this act which adds or revises a requirement to submit a report to the Legislature.

Sec. 37. NRS 1.060, 1.150, 1.170, 1.180, 2.210, 2.230, 2.255, 2.270, 2.420, 2.440 and 2.450 are hereby repealed.

Sec. 38. 1. This section becomes effective upon passage and approval.

2. Sections 1 to 7, inclusive, 8.5 to 26, inclusive, and 28 to 37, inclusive, of this act become effective:

(a) Upon passage and approval for the purpose of adopting any rules and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act.

(b) On January 1, 2024, for all other purposes.

3. Sections 8 and 27 of this act become effective on July 1, 2023.

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ê2023 Statutes of Nevada, Page 2612ê

CHAPTER 428, SB 54

Senate Bill No. 54–Committee on Legislative Operations and Elections

CHAPTER 428

[Approved: June 15, 2023]

AN ACT relating to elections; requiring the Secretary of State to prepare, maintain and publish an elections procedures manual; requiring county and city clerks to comply with the most recent version of such a manual; requiring the Secretary of State to provide training to certain elections officials related to election procedures; providing for the attendance of certain election officials at such training; making an appropriation; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

Existing law provides that the Secretary of State is the Chief Officer of Elections for this State and is responsible for the execution and enforcement of the provisions of state and federal law relating to elections in this State. (NRS 293.124)

Section 2 of this bill requires: (1) the Secretary of State to, at least once every 2 years, prepare, maintain and publish an elections procedures manual to ensure correctness, impartiality, uniformity and efficiency in elections procedures; and (2) county and city clerks to comply with the procedures set forth in the most current version of the elections procedures manual. Section 2 further requires the Secretary of State to submit the most recent version of the elections procedures manual to the Legislative Commission for approval not less frequently than every 4 years and prohibits the inclusion in the election procedures manual of any provision that conflicts with any provision of state or federal law or regulation.

Section 3 of this bill requires the Secretary of State to develop and provide a training course related to elections procedures to each county and city clerk. Section 3: (1) requires each county and city clerk to attend the training course; and (2) authorizes a county or city clerk to require any deputy or employee of the clerk’s office whose duties relate to elections to attend the training course. Under section 3, the Secretary of State: (1) is required to reimburse each county and city for the per diem allowance and travel expenses of a county or city clerk who attends the training course and any such reimbursement must be paid from the Reserve for Statutory Contingency Account upon the recommendation of the Secretary of State and the approval of the State Board of Examiners; and (2) is authorized to reimburse a county or city for the per diem allowance and travel expenses of a deputy or employee of the clerk’s office who attends the training course, and any such reimbursement must be paid from the Reserve for Statutory Contingency Account upon the recommendation of the Secretary of State and the approval of the State Board of Examiners. Section 4.5 of this bill makes a conforming change to provide for these reimbursements from the Reserve for Statutory Contingency Account.

Section 4.7 of this bill makes an appropriation to the Secretary of State for the costs of preparing, maintaining and publishing an elections procedural manual.

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 and 3 of this act.

Sec. 2. 1. At least once every 2 years, the Secretary of State shall prepare, maintain and publish an elections procedures manual to ensure correctness, impartiality, uniformity and efficiency in the elections procedures of this State.

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ê2023 Statutes of Nevada, Page 2613 (CHAPTER 428, SB 54)ê

correctness, impartiality, uniformity and efficiency in the elections procedures of this State. Each county clerk and city clerk is required to comply with the procedures set forth in the most current version of the elections procedures manual.

2. The elections procedures manual required pursuant to subsection 1 must include, without limitation, guidance and standards for administering an election that are consistent with the provisions of this title and any regulations adopted by the Secretary of State pursuant thereto.

3. The most recent version of the elections procedures manual prepared pursuant to subsection 1 must be submitted by the Secretary of State to the Legislative Commission for approval not less frequently than every 4 years. The Secretary of State may make any change to the elections procedures manual that is not substantively related to administering an election without the approval of the Legislative Commission.

4. Nothing in this section authorizes the Secretary of State to include any provision in the elections procedures manual that amends or conflicts with any provision of state or federal law or regulations.

Sec. 3. 1. The Secretary of State shall develop and provide a training course to each county clerk and city clerk related to elections procedures, including, without limitation, the procedures set forth in the elections procedures manual required pursuant to section 2 of this act.

2. Each county clerk and city clerk shall attend the training course provided by the Secretary of State.

3. A county clerk or city clerk may require any deputy or employee of the office of the county or city clerk whose duties relate to elections to attend a training course provided by the Secretary of State pursuant to this section.

4. The Secretary of State:

(a) Shall provide to or reimburse the county or city, as applicable, for the cost of the per diem allowance and travel expenses of the county clerk or city clerk for attending the training course required pursuant to this section. Any reimbursement must be paid from the Reserve for Statutory Contingency Account upon recommendation by the Secretary of State and approval by the State Board of Examiners.

(b) May provide to or reimburse the county or city, as applicable, for the cost of the per diem allowance and travel expenses of any deputy or employee of the office of the county or city clerk for attending the training course required pursuant to this section. Any reimbursement must be paid from the Reserve for Statutory Contingency Account upon recommendation by the Secretary of State and approval by the State Board of Examiners.

Sec. 4. (Deleted by amendment.)

Sec. 4.5. NRS 353.264 is hereby amended to read as follows:

353.264 1. The Reserve for Statutory Contingency Account is hereby created in the State General Fund.

2. The State Board of Examiners shall administer the Reserve for Statutory Contingency Account. The money in the Account must be expended only for:

(a) The payment of claims which are obligations of the State pursuant to NRS 41.03435, 41.0347, 62I.025, 176.485, 179.310, 212.040, 212.050, 212.070, 281.174, 282.290, 282.315, 293.253, 293.405, 298.710, 304.230, 353.120, 353.262, 412.154 and 475.235 [;] and section 3 of this act;

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ê2023 Statutes of Nevada, Page 2614 (CHAPTER 428, SB 54)ê

(b) The payment of claims which are obligations of the State pursuant to:

(1) Chapter 472 of NRS arising from operations of the Division of Forestry of the State Department of Conservation and Natural Resources directly involving the protection of life and property; and

(2) NRS 7.155, 34.750, 176A.640, 179.225 and 213.153,

Ê except that claims may be approved for the respective purposes listed in this paragraph only when the money otherwise appropriated for those purposes has been exhausted;

(c) The payment of claims which are obligations of the State pursuant to NRS 41.0349 and 41.037, but only to the extent that the money in the Fund for Insurance Premiums is insufficient to pay the claims;

(d) The payment of claims which are obligations of the State pursuant to NRS 41.950; and

(e) The payment of claims which are obligations of the State pursuant to NRS 535.030 arising from remedial actions taken by the State Engineer when the condition of a dam becomes dangerous to the safety of life or property.

3. The State Board of Examiners may authorize its Clerk or a person designated by the Clerk, under such circumstances as it deems appropriate, to approve, on behalf of the Board, the payment of claims from the Reserve for Statutory Contingency Account. For the purpose of exercising any authority granted to the Clerk of the State Board of Examiners or to the person designated by the Clerk pursuant to this subsection, any statutory reference to the State Board of Examiners relating to such a claim shall be deemed to refer to the Clerk of the Board or the person designated by the Clerk.

Sec. 4.7. 1. There is hereby appropriated from the State General Fund to the Secretary of State for the costs of preparing, maintaining and publishing an elections procedural manual the following sums:

For the Fiscal Year 2023-2024......................................................... $8,104

For the Fiscal Year 2024-2025......................................................... $3,242

Sec. 5. 1. This section and sections 1 to 4.5, inclusive, of this act become effective upon passage and approval.

2. Section 4.7 of this act becomes effective on July 1, 2023.

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ê2023 Statutes of Nevada, Page 2615ê

CHAPTER 429, SB 57

Senate Bill No. 57–Committee on Commerce and Labor

CHAPTER 429

[Approved: June 15, 2023]

AN ACT relating to insurance; revising requirements relating to the submission of certain information to the Commissioner of Insurance by certain persons regulated by the Commissioner; revising provisions concerning the confidentiality of certain records and information; revising requirements for the delivery of certain notices and other documents by electronic means; revising requirements for the conduct of certain hearings before the Commissioner; revising provisions relating to the imposition of certain fees; revising requirements for the issuance and renewal of certain licenses and certificates; revising provisions relating to administrators; prohibiting certain insurers from taking certain actions concerning prescription drugs; revising provisions relating to annuities; imposing certain requirements on persons involved in the sale of prepaid contracts for funeral or burial services; revising certain requirements relating to captive insurers; revising procedures for delinquency proceedings against an insurer; revising provisions relating to bail agents, bail enforcement agents, bail solicitors and general agents; making various other changes relating to insurance; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

Existing law requires a health carrier to submit to the Commissioner of Insurance copies of certain form letters used by the health carrier. (NRS 679B.124) Section 1 of this bill requires a health carrier to instead: (1) submit to the Commissioner a report summarizing such form letters; and (2) maintain a copy of each form letter and make each copy available to the Commissioner upon request.

Existing law sets forth circumstances under which the Commissioner is authorized or required to hold a hearing on certain matters and establishes procedures governing such hearings. (NRS 679B.310) Section 3 of this bill revises requirements concerning such hearings. Section 47 of this bill makes a conforming change that is necessary as the result of the changes in section 3.

Existing law requires the Attorney General to establish a Fraud Control Unit for Insurance for the purposes of investigating and prosecuting acts of insurance fraud. (NRS 228.412) Existing law authorizes a district attorney of a county to prosecute certain cases involving insurance fraud with the permission of or at the request of the Attorney General. (NRS 686A.283) Existing law makes confidential certain records and information relating to an investigation conducted by the Attorney General and the Fraud Control Unit for the prosecution of insurance fraud and sets forth the circumstances under which the Attorney General is authorized to disclose such information. (NRS 679B.690) Section 4 of this bill: (1) makes confidential certain additional records and information relating to an investigation for the prosecution of insurance fraud; (2) requires, with certain exceptions, such records and information to remain confidential for the duration of the investigation and after the conclusion of the investigation; and (3) sets forth circumstances in which a district attorney prosecuting a case of insurance fraud is also authorized to disclose such information.

Existing law sets forth certain requirements for an insurer to deliver certain notices or other documents by electronic means. Among other requirements, existing law requires the party to whom the notice or document will be delivered to have consented to delivery by electronic means. (NRS 680A.550) Sections 4.2 and 4.8 of this bill authorize the plan sponsor of a health plan to provide such consent on behalf of a party covered by the plan under certain circumstances.

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ê2023 Statutes of Nevada, Page 2616 (CHAPTER 429, SB 57)ê

this bill authorize the plan sponsor of a health plan to provide such consent on behalf of a party covered by the plan under certain circumstances. Section 4.2 requires a plan sponsor to take certain actions before providing such consent and an insurer to take certain actions before delivering any notice or other document to a party on whose behalf a plan sponsor has provided such consent. Finally, section 4.2 requires a notice of cancellation, nonrenewal or termination of a health plan to be sent to a party covered by the health plan by mail unless the notice is delivered by electronic means in a manner that provides for the verification of the receipt of the notice. Sections 4.4 and 4.6 of this bill make conforming changes to indicate the proper placement of section 4.2 in the Nevada Revised Statutes.

Existing law sets forth various fees applicable to persons regulated by the Commissioner. Among these fees is a fee for a licensee’s association with or appointment or sponsorship by an organization. (NRS 680B.010) A fee for a licensee’s “appointment” by an organization refers to the fee associated with the appointment by an insurer of a person to offer policies on behalf of the insurer. (NRS 697.185, 697.250) A fee for a licensee’s “association with” or “sponsorship by” an organization refers to the fee associated with the designation by an agent of an insurer of a natural person who is a licensee to represent the agent or to be responsible for the compliance of the agent with laws and regulations governing insurance. (NRS 683C.035, 684A.080, 684A.090, 684B.040, 697.184, 697.185, 697.250) Sections 16-18, 20, 40, 41 and 42 of this bill revise provisions concerning the licensure of certain persons regulated by the Commissioner to clarify and standardize the circumstances in which an agent of an insurer is required to designate a natural person to represent the agent or to be responsible for the agent’s compliance with the laws and regulations governing insurance and is therefore required to pay the applicable fee. Section 5 of this bill revises the terminology used to describe such a fee to refer to that fee as one for a licensee’s association with or designation or sponsorship by an organization. The amount of such fees remains unchanged. Section 5 removes certain duplicative fees, and sections 33-35 make conforming changes necessitated by the renumbering of section 5.

Section 14 of this bill revises the requirements for an application for the issuance of a license as a managing general agent. Section 7 of this bill authorizes the Commissioner to require an applicant for the issuance of a license as a managing general agent to file and maintain with the Commissioner a surety bond in an amount determined by the Commissioner.

Existing law prohibits a person from acting as an administrator unless the person holds a certificate of registration issued by the Commissioner. (NRS 683A.085) Existing law also imposes certain requirements and restrictions on a pharmacy benefit manager. (NRS 683A.171-683A.179) Section 9 of this bill revises the definition of “administrator” to include specifically any person who administers a program of pharmacy benefits for an employer, insurer, internal service fund or trust. Sections 11 and 12 of this bill revise requirements for the issuance and renewal of a certificate of registration as an administrator. Sections 10.5 and 13 of this bill authorize an administrator who has obtained a certificate of registration issued by the Commissioner to delegate any of the duties of the administrator to an administrator who has not obtained a certificate of registration only if the delegating administrator has first obtained the written approval of the Commissioner. Section 8 of this bill requires an administrator to notify the Commissioner of certain changes to the administrator. Section 10 of this bill makes a conforming change to indicate the proper placement of section 8 in the Nevada Revised Statutes.

Existing law authorizes the Commissioner to issue to a person a temporary license as a producer of insurance and independent adjuster and a temporary certificate as an exchange enrollment facilitator, which, in general, are valid for not more than 180 days. (NRS 683A.311, 684A.150, 695J.190) Sections 15, 19 and 36 of this bill authorize the Commissioner to renew such a license or certificate for one additional period of 180 days under certain circumstances.

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ê2023 Statutes of Nevada, Page 2617 (CHAPTER 429, SB 57)ê

Existing law prohibits certain insurers from moving a prescription drug in a formulary from a lower cost tier to a higher cost tier under certain policies of health insurance issued to an individual or a small employer, except at certain times and under certain circumstances. However, existing law does not prohibit an insurer from, at any time, removing a prescription drug from a formulary and adding a prescription drug to a formulary. (NRS 687B.4095) Section 22 of this bill prohibits certain insurers who have removed a prescription drug from a formulary from adding that prescription drug back into the formulary in a higher cost tier in the same plan year in which it was removed, except at the times and under the circumstances provided for under existing law.

Sections 23 and 24 of this bill revise provisions relating to annuities for consistency with the Standard Nonforfeiture Law for Individual Deferred Annuities adopted by the National Association of Insurance Commissioners.

Existing law imposes certain requirements and restrictions on an applicant for a license as a producer of insurance or a licensee who wishes to use a name other than his or her true name to conduct business. (NRS 683A.301) Sections 25 and 27 of this bill make these requirements and restrictions applicable to an applicant for or a holder of a certificate of authority to sell prepaid contracts for funeral services or a permit to sell prepaid contracts for burial services. Section 26 of this bill requires a person to have a good business and personal reputation to qualify for an agent’s license to sell prepaid contracts for burial services on behalf of a seller.

Section 28 of this bill revises the definition of “health benefit plan” that is applicable to provisions of existing law governing health insurance for small employers to standardize the definition of the term with other provisions of existing law governing health benefit plans.

Existing law sets forth certain requirements relating to the confidentiality and disclosure of certain records and information relating to an insurer. (NRS 679B.285) Section 29 of this bill applies those requirements to certain records and information relating to a captive insurer. Sections 30-32 of this bill revise the dates by which certain captive insurers are required to submit certain information to the Commissioner.

Existing law sets forth procedures and requirements for delinquency proceedings against an insurer. (Chapter 696B of NRS) Existing law sets forth the manner in which a delinquency proceeding must be commenced. (NRS 696B.250) Section 37 of this bill provides that the Nevada Rules of Civil Procedure do not apply to the commencement of a delinquency proceeding. Section 38 of this bill eliminates certain duplicative statutory language with respect to the powers of the Commissioner as a receiver, rehabilitator or liquidator of an insurer.

Existing law sets forth certain requirements for a person to obtain and renew a license as a bail agent, including, without limitation, the requirement that the person be a resident of this State and have resided in this State for not less than 1 year immediately preceding the date of the application for licensure. (NRS 697.150) Sections 39.4 and 39.6 of this bill provide for the issuance of a nonresident license as a bail agent to a nonresident person who is licensed as a bail agent in his or her home state and set forth certain requirements to obtain such a license. Section 39.3 of this bill defines the term “home state.” Section 39.5 of this bill makes a conforming change to indicate the proper placement of section 39.3 in the Nevada Revised Statutes. Sections 39.6, 39.7, 39.8, 41.3 and 41.6 of this bill exempt an applicant for the issuance or renewal of a nonresident license as a bail agent from certain requirements otherwise applicable to the issuance or renewal of a license as a bail agent.

Existing law requires a bail agent to maintain a place of business in this State accessible to the public. (NRS 697.280) Existing law requires a bail agent, before acting as an attorney-in-fact for an insurer on an undertaking, to register in the office of the sheriff and with the clerk of the district court in which the agent resides. (NRS 697.270) Section 42.5 of this bill requires a person who holds a nonresident license as a bail agent to instead register with the office of the sheriff and with the clerk of the district court in which the place of business of the bail agent is located.

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ê2023 Statutes of Nevada, Page 2618 (CHAPTER 429, SB 57)ê

Existing law sets forth certain requirements for a bail agent and bail enforcement agent with respect to the apprehension of a defendant and the surrender of a defendant to custody. (NRS 178.526, 697.325) Sections 43 and 46 of this bill establish that only a bail enforcement agent is authorized to take certain actions with respect to the apprehension and surrender of a defendant. Section 45 of this bill prohibits a bail agent, general agent, bail enforcement agent or bail solicitor from allowing any person other than a licensed bail enforcement agent to participate in the functions of a bail enforcement agent.

Existing law requires a bail agent or bail enforcement agent, before forcibly entering an inhabited dwelling, to notify the local law enforcement agency of the jurisdiction where the dwelling is located. Existing law defines “inhabited dwelling” to mean, in general, certain structures, buildings or vehicles in which the owner or other lawful occupant resides. (NRS 697.325) Section 43: (1) eliminates the term “inhabited dwelling”; (2) imposes certain requirements and restrictions on a bail enforcement agent with respect to the entry and forcible entry of any structure, as defined in section 43; and (3) imposes certain requirements and restrictions with respect to the use of physical force by a bail enforcement agent. Section 44 of this bill provides that a bail agent who improperly causes the surrender of a defendant to custody is not entitled to collect any fees related to the surrender.

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.124 is hereby amended to read as follows:

679B.124 1. The Commissioner shall:

(a) Develop, prescribe and make available on an Internet website maintained by the Division a form letter that a health carrier must use to notify a provider of health care of the denial of his or her application to be included in the network of providers of the health carrier. The form letter must include, without limitation, a place for the health carrier to explain the reason for the denial of the application.

(b) Hold hearings to solicit public input when developing the form letter described in paragraph (a) and consider such input when developing the form letter.

2. A health carrier shall [submit to the Commissioner] :

(a) Maintain a copy of each form letter sent to a provider of health care pursuant to subsection 1 [. The] and make each copy available to the Commissioner upon request; and

(b) As frequently as required by the Commissioner pursuant to subsection 3, submit to the Commissioner a report summarizing the form letters sent to a provider of health care pursuant to subsection 1.

3. The Commissioner shall determine the information that is required to be included in a report submitted pursuant to subsection 2 and the frequency with which [such form letters] the report must be submitted by the health carrier to the Commissioner.

4. Except as otherwise provided in subsection [3,] 5, the [forms] report submitted to the Commissioner pursuant to [this] subsection 2, any form letter requested by the Commissioner pursuant to that subsection and the information contained therein are confidential.

[3.] 5. The Commissioner shall:

(a) Annually compile a report using aggregated data from the [forms] reports and form letters collected pursuant to subsection 2 concerning trends in the denial of applications of providers of health care to be included in the network of providers of a health carrier.

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ê2023 Statutes of Nevada, Page 2619 (CHAPTER 429, SB 57)ê

in the denial of applications of providers of health care to be included in the network of providers of a health carrier. The report must include, without limitation, the number of total denials, the number of denials for different types of providers of health care, the number of denials by different carriers and the reasons for such denials.

(b) Post the report on an Internet website maintained by the Division.

(c) Submit the report to the Governor and the Director of the Legislative Counsel Bureau for transmittal to the Legislature.

[4.] 6. As used in this section, “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. 2. (Deleted by amendment.)

Sec. 3. NRS 679B.310 is hereby amended to read as follows:

679B.310 1. The Commissioner may hold a hearing, without request by others, to determine whether an insurer or an employee of an insurer has engaged in unsuitable conduct and for any other purpose within the scope of this Code.

2. The Commissioner shall hold a hearing:

(a) If required by any other provision of this Code; or

(b) Upon written application for a hearing by a person aggrieved by any act, [threatened act,] or failure of the Commissioner to act, that is related to the business of insurance, or by any report, rule, regulation or order of the Commissioner, other than an order for the holding of a hearing, or an order issued on a hearing of which the person had notice. The application must be filed in the Division within 60 days after the person knew or reasonably should have known of the act, [threatened act,] failure, report, rule, regulation or order, unless a different period is provided for by any other law applicable to the particular matter, in which case the other law governs.

3. Any such application for a hearing must briefly state the respects in which the applicant is so aggrieved, together with the grounds to be relied upon as a basis for the relief to be sought at the hearing.

4. If the Commissioner finds that the application is made in good faith, that the applicant would be so aggrieved if his or her grounds are established and that the grounds otherwise justify the hearing, the Commissioner shall hold the hearing within [30] 60 days after the filing of the application, unless postponed by mutual consent. Failure to hold the hearing upon application therefor of a person entitled thereto as provided in this section constitutes a denial of the relief sought, and is the equivalent of a final order of the Commissioner on hearing for the purpose of an appeal pursuant to NRS 679B.370.

5. Pending the hearing and decision thereon, the Commissioner may suspend or postpone the effective date of the previous action of the Commissioner.

6. Except as otherwise provided by specific statute, the Commissioner shall issue a final order in a contested case within 45 days after the close of the hearing on the contested case. As used in this subsection, “contested case” has the meaning ascribed to it in NRS 233B.032.

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ê2023 Statutes of Nevada, Page 2620 (CHAPTER 429, SB 57)ê

Sec. 4. NRS 679B.690 is hereby amended to read as follows:

679B.690 1. Except as otherwise provided in NRS 239.0115, all records and other information related to an investigation [conducted by the Attorney General and the Fraud Control Unit] for the prosecution of insurance fraud conducted pursuant to NRS 679B.600 to 679B.700, inclusive, or 686A.281 to 686A.295, inclusive, are confidential unless:

(a) The [Attorney General] prosecuting attorney releases, in such manner as he or she deems appropriate, all or any part of the records or information for public inspection after determining that the release of the records or information:

(1) Will not harm the investigation or the person who is being investigated; or

(2) Serves the interests of a policyholder, the shareholders of the insurer or the public; or

(b) A court orders the release of the records or information after determining that the production of the records or information will not damage any investigation being conducted [by the Fraud Control Unit.] pursuant to NRS 679B.600 to 679B.700, inclusive, or 686A.281 to 686A.295, inclusive.

2. The [Attorney General] prosecuting attorney or Commissioner may classify as confidential specific records and other information if the records or other information was obtained from a governmental agency or other source upon the express condition that the contents would remain confidential.

3. [All] Except as otherwise provided in NRS 686A.287 and except as necessary for the prosecution of a crime, information and documents [in the possession of the Attorney General and the Fraud Control Unit] that are related to cases or matters [under investigation are] investigated for the prosecution of insurance fraud pursuant to NRS 679B.600 to 679B.700, inclusive, or 686A.281 to 686A.295, inclusive, are confidential for the duration of the investigation and remain confidential after the completion of the investigation . [and] Such information and documents may not be made public unless the [Attorney General] prosecuting attorney finds the existence of an imminent threat of harm to the safety or welfare of the policyholder, shareholders or the public and determines that the interests of the policyholder, shareholders or the public will be served by publication thereof, in which event the [Attorney General] prosecuting attorney may make a record public or publish all or any part of the record in any manner the [Attorney General] prosecuting attorney deems appropriate.

4. As used in this section, “prosecuting attorney” means the Attorney General or the district attorney of a county when acting pursuant to subsection 4 of NRS 686A.283.

Sec. 4.2. Chapter 680A of NRS is hereby amended by adding thereto a new section to read as follows:

1. The plan sponsor of a health plan may, on behalf of a party covered by the health plan, provide the consent for delivery of any notice or other document relating to the health plan required by paragraph (a) of subsection 1 of NRS 680A.550.

2. Before providing consent on behalf of a party covered by the health plan pursuant to subsection 1, the plan sponsor must confirm, using reasonable means, that the party routinely uses electronic communications during the normal course of employment.

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ê2023 Statutes of Nevada, Page 2621 (CHAPTER 429, SB 57)ê

3. Before delivering by electronic means any notice or other document to a party on whose behalf a plan sponsor has provided consent pursuant to subsection 1, the insurer for the health plan must:

(a) Provide the party an opportunity to opt out of delivery by electronic means; and

(b) Document that the conditions set forth in paragraphs (b) to (e), inclusive, of subsection 1 of NRS 680A.550 are satisfied.

4. A notice of cancellation, nonrenewal or termination of a health plan must be sent to a party covered by the health plan by mail unless the notice is delivered by electronic means in a manner that provides for the verification of the receipt of the notice.

5. As used in this section:

(a) “Health plan” means a policy, contract, certificate or agreement entered into, offered by or issued by an insurer to provide, deliver, arrange for, pay for or reimburse any of the costs of health care services, including, without limitation, services relating to vision or dental care.

(b) “Plan sponsor” means a person, other than a person regulated by the Commissioner or Division, who establishes, adopts or maintains a health plan that covers residents of this State. The term includes, without limitation:

(1) An employer who establishes, adopts or maintains such a health plan;

(2) An employer and one or more employee organizations that jointly establish, adopt or maintain such a health plan; and

(3) An association, committee, joint board or trustees or any similar group of representatives that establish, adopt or maintain such a health plan.

Sec. 4.4. NRS 680A.500 is hereby amended to read as follows:

680A.500 As used in NRS 680A.500 to 680A.600, inclusive, and section 4.2 of this act, unless the context otherwise requires, the words and terms defined in NRS 680A.510 and 680A.520 have the meanings ascribed to them in those sections.

Sec. 4.6. NRS 680A.530 is hereby amended to read as follows:

680A.530 The provisions of NRS 680A.500 to 680A.600, inclusive [:] and section 4.2 of this act:

1. Do not apply to a notice or other document delivered by an insurer in an electronic form before October 1, 2017, to a party who consented before that date to receive the notice or other document in an electronic form which was authorized by law at the time of delivery; and

2. Shall not be construed to affect any other provision of law relating to the content or timing of delivery of any notice or other document.

Sec. 4.8. NRS 680A.550 is hereby amended to read as follows:

680A.550 1. Except as otherwise provided in subsection 2 and NRS 680A.560 [,] and section 4.2 of this act, a notice or other document may be delivered by electronic means by an insurer to a party pursuant to subsection 1 of NRS 680A.540 if:

(a) The party has affirmatively consented to delivery by electronic means and has not withdrawn such consent;

(b) Before giving consent to delivery by electronic means, the party is provided with a clear and conspicuous statement informing the party of:

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ê2023 Statutes of Nevada, Page 2622 (CHAPTER 429, SB 57)ê

(1) The right of the party to withdraw consent to delivery by electronic means at any time and any conditions or consequences which may be imposed in the event consent is withdrawn;

(2) The types of notices and other documents to which the consent of the party to delivery by electronic means would apply;

(3) The right of the party to have a notice or other document delivered in paper form; and

(4) The procedures the party must follow to withdraw consent to delivery by electronic means and to update the electronic mail address of the party;

(c) The party, after being provided with a statement of the hardware and software requirements for access to and retention of a notice or other document delivered by electronic means, consents or confirms consent electronically in a manner that reasonably demonstrates that the party can access information in the electronic form that will be used for delivery by electronic means of notices or other documents to which the party has given consent;

(d) The insurer takes measures reasonably calculated to ensure that delivery by electronic means results in the receipt of a notice or other document by the party; and

(e) Upon a change in the hardware or software requirements for access to and retention of a notice or other document delivered by electronic means which occurs after the party has consented to delivery by electronic means which creates a material risk that the party will not be able to access or retain a subsequent notice or other document, the insurer provides the party with:

(1) A statement that describes the revised hardware or software requirements for access to and retention of a notice or other documents delivered by electronic means and the right of the party to withdraw consent without the imposition of any condition or consequence not described in the statement initially provided to the party pursuant to paragraph (b); and

(2) A revised statement containing the information described in paragraph (b) which applies to the revised hardware or software requirements.

2. If a provision of this Code or any other law applicable to the delivery of a notice or other document, including, without limitation, a notice required pursuant to NRS 687B.320 to 687B.350, inclusive, requires verification or acknowledgment of receipt of the notice or other document, the notice or other document may be delivered by electronic means only if the electronic form used for delivery provides for verification or acknowledgment of receipt. If the insurer does not receive verification or acknowledgment of receipt within 3 days after delivery by electronic means of a notice or other document described by this subsection, the insurer shall deliver the notice or other document by any other delivery method authorized by law.

Sec. 5. NRS 680B.010 is hereby amended to read as follows:

680B.010 The Commissioner shall collect in advance and receipt for, and persons so served must pay to the Commissioner, fees and miscellaneous charges as follows:

1. Insurer’s certificate of authority:

(a) Filing initial application................................................................... $2,450

(b) Issuance of certificate:

(1) For any one kind of insurance as defined in NRS 681A.010 to 681A.080, inclusive $283

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ê2023 Statutes of Nevada, Page 2623 (CHAPTER 429, SB 57)ê

(2) For two or more kinds of insurance as so defined.................... $578

(3) For a reinsurer................................................................................ 2,450

(d) Reinstatement pursuant to NRS 680A.180, 50 percent of the annual continuation fee otherwise required.

(e) Registration of additional title pursuant to NRS 680A.240............... 50

(f) Annual renewal of the registration of additional title pursuant to NRS 680A.240 25

2. Charter documents, other than those filed with an application for a certificate of authority. Filing amendments to articles of incorporation, charter, bylaws, power of attorney and other constituent documents of the insurer, each document $10

3. Annual statement or report. For filing annual statement or report. $25

4. Service of process:

(a) Filing of power of attorney...................................................................... $5

(b) Acceptance of service of process............................................................ 30

5. Licenses, appointments and renewals for producers of insurance:

(a) Application and license........................................................................ $125

(b) Appointment fee for each insurer........................................................... 15

(d) Temporary license..................................................................................... 10

(e) Modification of an existing license........................................................ 50

6. Surplus lines brokers:

(a) Application and license........................................................................ $125

(b) Triennial renewal of each license......................................................... 125

7. Managing general agents’ licenses, appointments and renewals:

(a) Application and license........................................................................ $125

(b) Appointment fee for each insurer........................................................... 15

8. Adjusters’, as defined in NRS 684A.030, licenses and renewals:

(a) Application and license........................................................................ $125

(b) Triennial renewal of each license......................................................... 125

9. Licenses and renewals for appraisers of physical damage to motor vehicles:

(a) Application and license........................................................................ $125

(b) Triennial renewal of each license......................................................... 125

10. [Additional title and property insurers pursuant to NRS 680A.240:

(a) Original registration................................................................................ $50

(b) Annual renewal.......................................................................................... 25

11.] Insurance vending machines:

(a) Application and license, for each machine....................................... $125

(b) Triennial renewal of each license......................................................... 125

[12.] 11. Permit for solicitation for securities:

(a) Application for permit.......................................................................... $100

(b) Extension of permit................................................................................... 50

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ê2023 Statutes of Nevada, Page 2624 (CHAPTER 429, SB 57)ê

[13.] 12. Securities salespersons for domestic insurers:

(a) Application and license.......................................................................... $25

(b) Annual renewal of license........................................................................ 15

[14.] 13. Rating organizations:

(a) Application and license........................................................................ $500

(b) Annual renewal........................................................................................ 500

[15.] 14. Certificates and renewals for administrators licensed pursuant to chapter 683A of NRS:

(a) Application and certificate of registration........................................ $125

(b) Triennial renewal.................................................................................... 125

[16.] 15. For copies of the insurance laws of Nevada, a fee which is not less than the cost of producing the copies.

[17.] 16. Certified copies of certificates of authority and licenses issued pursuant to the Code $10

[18.] 17. For copies and amendments of documents on file in the Division, a reasonable charge fixed by the Commissioner, including charges for duplicating or amending the forms and for certifying the copies and affixing the official seal.

[19.] 18. Letter of clearance for a producer of insurance or other licensee if requested by someone other than the licensee $10

[20.] 19. Certificate of status as a producer of insurance or other licensee if requested by someone other than the licensee $10

[21.] 20. Licenses, appointments and renewals for bail agents:

(a) Application and license........................................................................ $125

(b) Appointment for each surety insurer...................................................... 15

[22.] 21. Licenses and renewals for bail enforcement agents:

(a) Application and license........................................................................ $125

(b) Triennial renewal of each license......................................................... 125

[23.] 22. Licenses, appointments and renewals for general agents for bail:

(a) Application and license........................................................................ $125

(b) Initial appointment by each insurer........................................................ 15

[24.] 23. Licenses and renewals for bail solicitors:

(a) Application and license........................................................................ $125

(b) Triennial renewal of each license......................................................... 125

[25.] 24. Licenses and renewals for title agents and escrow officers:

(a) Application and license........................................................................ $125

(b) Triennial renewal of each license......................................................... 125

[26.] 25. Certificate of authority and renewal for a seller of prepaid funeral contracts $125

[27.] 26. Licenses and renewals for agents for prepaid funeral contracts:

(a) Application and license........................................................................ $125

(b) Triennial renewal of each license......................................................... 125

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ê2023 Statutes of Nevada, Page 2625 (CHAPTER 429, SB 57)ê

[28.] 27. Reinsurance intermediary broker or manager:

(a) Application and license........................................................................ $125

(b) Triennial renewal of each license......................................................... 125

[29.] 28. Agents for and sellers of prepaid burial contracts:

(a) Application and certificate or license................................................ $125

(b) Triennial renewal.................................................................................... 125

[30.] 29. Risk retention groups:

(a) Initial registration.................................................................................. $250

(b) Each annual continuation of a certificate of registration.................. 250

[31.] 30. Required filing of forms:

(a) For rates and policies.............................................................................. $25

(b) For riders and endorsements.................................................................... 10

[32.] 31. Viatical settlements:

(a) Provider of viatical settlements:

(1) Application and license.............................................................. $1,000

(2) Annual renewal.............................................................................. 1,000

(b) Broker of viatical settlements:

(1) Application and license................................................................. $500

(2) Annual renewal................................................................................. 500

[33.] 32. Insurance consultants:

(a) Application and license........................................................................ $125

(b) Triennial renewal.................................................................................... 125

[34.] 33. Licensee’s association with or designation, appointment or sponsorship by an organization:

(a) Initial [appointment,] association , designation or sponsorship [,] and renewal of association, designation or sponsorship, for each organization.................................................................... $50

(b) [Renewal of each association or sponsorship....................................... 50

[35.] 34. Purchasing groups:

(a) Initial registration and review of an application.............................. $100

(b) Each annual continuation of registration............................................ 100

[36.] 35. Exchange enrollment facilitators:

(a) Application and certificate.................................................................. $125

(b) Triennial renewal of each certificate................................................... 125

[37.] 36. Agent who performs utilization reviews:

(a) Application and registration................................................................ $250

(b) Renewal of registration.......................................................................... 250

[38.] 37. Motor club:

(a) Filing of application............................................................................. $500

(b) Issuance of certificate............................................................................. 283

[39.] 38. Motor club agent:

(a) Application and license.......................................................................... $78

(b) Appointment by each motor club.............................................................. 5

[40.] 39. Title plant company:

(a) Application and license.......................................................................... $10

(b) Renewal of license.................................................................................... 10

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ê2023 Statutes of Nevada, Page 2626 (CHAPTER 429, SB 57)ê

[41.] 40. Service contract provider:

(a) Application and registration............................................................. $2,000

(b) Renewal of registration....................................................................... 2,000

[42.] 41. In addition to any other fee or charge, all applicable fees required of any person, including, without limitation, persons listed in this section, pursuant to NRS 680C.110.

Sec. 6. Chapter 683A of NRS is hereby amended by adding thereto the provisions set forth as sections 7 and 8 of this act.

Sec. 7. Before the issuance of a license as a managing general agent the Commissioner may require the applicant to file with the Commissioner, and thereafter maintain in force while so licensed, a surety bond which complies with NRS 679B.175 in an amount determined by the Commissioner.

Sec. 8. 1. An administrator shall notify the Commissioner of any change in:

(a) The members, owners, directors or officers of the administrator within 30 days after the change.

(b) The physical location, mailing address or electronic mail address of an office of the administrator within 30 days after the change.

2. If there is a change in the members, owners, directors or officers of an administrator, the administrator shall submit to the Commissioner a notarized affidavit, as described in subsection 6 of NRS 683A.08522, for each new member, owner, director or officer within 30 days after the change.

Sec. 9. 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;

(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) Administers a program of pharmacy benefits for an employer, insurer, internal service fund or trust; or

(g) 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),] (f), inclusive, for or 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.

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ê2023 Statutes of Nevada, Page 2627 (CHAPTER 429, SB 57)ê

(b) An employer acting on behalf of his or her employees or the employees of a subsidiary or affiliated concern.

(d) Except as otherwise provided in paragraph [(f)] (g) 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.0805 is hereby amended to read as follows:

683A.0805 As used in NRS 683A.0805 to 683A.0893, inclusive, and section 8 of this act, unless the context otherwise requires, the words and terms defined in NRS 683A.081 to 683A.084, inclusive, have the meanings ascribed to them in those sections.

Sec. 10.5. NRS 683A.085 is hereby amended to read as follows:

683A.085 [No] Except as otherwise provided in NRS 683A.086, no person may act as, offer to act as or hold himself or herself out to the public as an administrator, unless:

1. The person has obtained a certificate of registration as an administrator from the Commissioner pursuant to NRS 683A.08524;

2. If the person is an individual and adjusts workers’ compensation claims in this State, the person is licensed pursuant to chapter 684A of NRS; and

3. If any employee of the person adjusts workers’ compensation claims in this State, each such employee who adjusts workers’ compensation claims in this State is licensed pursuant to chapter 684A of NRS.

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ê2023 Statutes of Nevada, Page 2628 (CHAPTER 429, SB 57)ê

Sec. 11. NRS 683A.08522 is hereby amended to read as follows:

683A.08522 Each application for a certificate of registration as an administrator must include or be accompanied by:

1. A financial statement of the applicant that has been reviewed by an independent certified public accountant and which includes:

(a) A statement regarding the amount of money that the applicant expects to collect from or disburse to residents of this state during the next calendar year.

(b) Financial information for the 90 days immediately preceding the date the application was filed with the Commissioner.

(1) Prepared in accordance with generally accepted accounting principles; and

(2) Reviewed by an independent certified public accountant.

(d) A certification of the financial statement by an officer of the applicant.

2. The documents used to create the business association of the administrator, including articles of incorporation, articles of association, a partnership agreement, a trust agreement and a shareholders’ agreement.

3. The documents used to regulate the internal affairs of the administrator, including the bylaws, rules or regulations of the administrator.

4. A certificate of registration issued pursuant to NRS 600.350 for a trade name or trademark used by the administrator, if applicable.

5. An organizational chart that identifies each person who directly or indirectly controls the administrator and each affiliate of the administrator.

6. A notarized affidavit from each person who manages or controls the administrator, including each member of the board of directors or board of trustees, each officer, partner and member of the business association of the administrator, and each shareholder of the administrator who holds not less than 10 percent of the voting stock of the administrator. The affidavit must include:

(a) The personal history, business record and insurance experience of the affiant;

(b) Whether the affiant has been investigated by any regulatory authority or has had any license or certificate denied, suspended or revoked in any state; and

7. The complete name and address of each office of the administrator, including offices located outside this state.

8. A statement that sets forth whether the administrator has:

(a) Held a license or certificate to transact any kind of insurance in this state or any other state and whether that license or certificate has been refused, suspended or revoked;

(b) Been indebted to any person and, if so, the circumstances of that debt; and

9. A statement that describes the business plan of the administrator. The statement must include information:

(a) Concerning the number of persons on the staff of the administrator and the activities proposed in this state or in any other state.

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ê2023 Statutes of Nevada, Page 2629 (CHAPTER 429, SB 57)ê

(b) That demonstrates the capability of the administrator to provide a sufficient number of experienced and qualified persons for the processing of claims, the keeping of records and, if applicable, underwriting.

10. If the applicant intends to solicit new or renewal business, proof that the applicant employs or has contracted with a producer of insurance licensed in this state to solicit and take applications. An applicant who intends to solicit insurance contracts directly or to act as a producer must provide proof that the applicant is licensed as a producer in this state.

11. If the applicant is not an insurer and is not domiciled in this State, a copy of the license, certificate or other authorization issued by the state in which the applicant is domiciled which authorizes the applicant to act as an administrator in that state, if any.

12. Any other information required by the Commissioner.

Sec. 12. NRS 683A.08526 is hereby amended to read as follows:

683A.08526 1. A certificate of registration as an administrator is valid for 3 years after the date the Commissioner issues the certificate to the administrator or the administrator renews the certificate, as applicable. A certificate expires on the renewal date for the certificate if the administrator does not renew the certificate pursuant to subsection 2 on or before the renewal date.

2. An administrator may renew a certificate of registration if the administrator [submits] :

(a) Submits to the Commissioner:

[(a)] (1) An application on a form prescribed by the Commissioner; and

[(b)] (2) The fee for the renewal of the certificate of registration prescribed in NRS 680B.010 and, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110 [.] ; and

(b) Is in compliance with all applicable provisions of this title and the regulations adopted pursuant thereto.

3. As used in this section, “renewal date” means:

(a) For the first renewal of the certificate of registration, the last day of the month which is 3 years after the month in which the Commissioner originally issued the certificate.

(b) For each renewal after the first renewal of the certificate of registration, the last day of the month which is 3 years after the month in which the certificate was last due to be renewed.

Sec. 13. NRS 683A.086 is hereby amended to read as follows:

683A.086 1. No person may act as an administrator unless the person has entered into a written agreement with an insurer, and the written agreement contains provisions to effectuate the requirements contained in NRS 683A.08522 to 683A.08528, inclusive, 683A.087 to 683A.0883, inclusive, and 683A.0892 which apply to the duties of the administrator.

2. The written agreement must set forth:

(a) The duties the administrator will be required to perform on behalf of the insurer; and

(b) The lines, classes or types of insurance that the administrator is authorized to administer on behalf of the insurer.

3. A copy of an agreement entered into under the provisions of this section must be retained in the records of the administrator and of the insurer for a period of 5 years after the termination of the agreement.

4. When a policy is issued to a trustee or trustees, a copy of the trust agreement and amendments must be obtained by the administrator and a copy forwarded to the insurer.

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ê2023 Statutes of Nevada, Page 2630 (CHAPTER 429, SB 57)ê

forwarded to the insurer. Each agreement must be retained by the administrator and the insurer for a period of 5 years after the termination of the policy.

5. Except as otherwise provided in NRS 616B.500 and 616B.503, an administrator who has obtained a certificate of registration as an administrator from the Commissioner pursuant to NRS 683A.08524 may delegate any of the duties of the administrator to an administrator who has not obtained such a certificate of registration only if the delegating administrator has first obtained the written approval of the Commissioner.

6. The Commissioner may adopt regulations which specify the functions an administrator may perform on behalf of an insurer.

[6.] 7. The insurer or administrator may, upon written notice to the other party to the agreement and to the Commissioner, terminate the written agreement for any cause specified in the agreement. The insurer may suspend the authority of the administrator while any dispute regarding the cause for termination is pending. The insurer shall perform any obligations with respect to the policies affected by the agreement regardless of any dispute with the administrator.

Sec. 14. 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:

(a) The appointment of the applicant as a managing general agent by each insurer or underwriter department to be so represented; [and]

(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 [.] ;

(c) A copy of any contract entered into between the applicant and each insurer that the applicant will represent as a managing general agent, if required by the Commissioner; and

(d) Evidence of compliance with section 7 of this act.

2. 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.

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;

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ê2023 Statutes of Nevada, Page 2631 (CHAPTER 429, SB 57)ê

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

4. A license as a managing general agent remains in effect unless revoked, suspended or otherwise terminated if, on or before the renewal date for the license:

(a) A request for renewal is submitted;

(b) All applicable fees for renewal are paid for the license and, if applicable, for each natural person who is [authorized to act for the firm or corporation] designated pursuant to subsection [3] 5 of NRS 683A.140; [and]

(c) A copy of any contract entered into between the managing general agent and each insurer whom the managing general agent represents, if required by the Commissioner, is submitted;

(d) Evidence of compliance with section 7 of this act is submitted; and

(e) Any requirement for education and any other requirement to renew the license is satisfied.

5. A managing general agent may submit a request for renewal of his or her license within 30 days after the renewal date if the managing general agent otherwise complies with the provisions of subsection 4 and pays, in addition to any fee paid pursuant to subsection 4, a penalty of 50 percent of all applicable fees for renewal, except for any fee required pursuant to NRS 680C.110.

6. Except as otherwise provided in subsection 8, a license as a managing general agent expires if the Commissioner does not receive from the managing general agent a request for renewal of the license pursuant to subsection 4 or 5, as applicable, on or before the date which is 30 days after the renewal date.

7. A fee paid pursuant to subsection 4 or 5 is nonrefundable.

8. A managing general agent 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.

9. 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. The license must be made available for public inspection upon request.

10. A licensee shall inform the Commissioner of each change of business, residence or electronic mail address, in writing or by other means acceptable to the Commissioner, within 30 days after the change.

11. As used in this section, “renewal date” means:

(a) For the first renewal of the license, the last day of the month which is 3 years after the month in which the Commissioner originally issued the license.

(b) For each renewal after the first renewal of the license, the last day of the month which is 3 years after the month in which the license was last due to be renewed.

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ê2023 Statutes of Nevada, Page 2632 (CHAPTER 429, SB 57)ê

Sec. 15. NRS 683A.311 is hereby amended to read as follows:

683A.311 1. The Commissioner may issue a temporary license as a producer of insurance to any of the following for 180 days or less without requiring an examination if the Commissioner believes that the temporary license is necessary to carry on the business of insurance:

(a) The surviving spouse, personal representative or guardian of a licensed producer who dies or becomes incompetent or incapacitated, to allow adequate time for the sale of the business, the recovery or return of the producer, or the training and licensing of new personnel to operate the business;

(b) A member or employee of a business organization licensed as a producer, upon the death or disability of the natural person designated in its application or license;

(d) A person in any other circumstance where the Commissioner believes that the public interest will be best served by issuing the license.

2. The Commissioner may limit by order the authority of a temporary licensee as the Commissioner believes necessary to protect persons insured and the public. The Commissioner may require the temporary licensee to have a suitable sponsor who is licensed as a producer of insurance or authorized as an insurer and who assumes responsibility for all acts of the temporary licensee, and may impose similar requirements to protect persons insured and the public. The Commissioner may revoke a temporary license by order if the interests of persons insured or the public are endangered. A temporary license expires when the owner or the personal representative or guardian of the owner disposes of the business.

3. A temporary license issued pursuant to this section may be renewed for one additional period of 180 days if:

(a) The temporary licensee, on or before a date specified by the Commissioner as the last day on which the temporary license is renewable, submits to the Commissioner a written request which includes, without limitation, sufficient justification for the renewal; and

(b) The Commissioner approves the request.

Sec. 16. NRS 683C.035 is hereby amended to read as follows:

683C.035 1. The Commissioner shall prescribe the form of application by a natural person for a license as an insurance consultant. The applicant must declare, under penalty of refusal to issue, or suspension or revocation of, the license, that the statements made in the application are true, correct and complete to the best of his 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 pursuant to NRS 683A.451.

(d) Passed each examination required for the license unless the applicant is a resident of another state and holds a similar license in that state.

2. A business organization must be licensed as an insurance consultant in order to act as such. Application must be made on a form prescribed by the Commissioner. Before approving the application, the Commissioner must find that the applicant has:

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ê2023 Statutes of Nevada, Page 2633 (CHAPTER 429, SB 57)ê

(a) Paid all applicable fees prescribed for the license, which may not be refunded; and

(b) Designated a natural person who is licensed as an insurance consultant in this State and who is [affiliated with] 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.

3. The Commissioner may require any document reasonably necessary to verify information contained in an application.

4. A license issued pursuant to this chapter is valid for 3 years after the date of issuance or until it is suspended, revoked or otherwise terminated.

5. An insurance consultant may qualify for a license pursuant to this chapter in one or more of the lines of authority set forth in paragraphs (a) to (d), inclusive, of subsection 1 of NRS 683A.261.

Sec. 17. NRS 684A.080 is hereby amended to read as follows:

684A.080 1. Any business entity to whom a license is issued or renewed must:

(a) Be eligible to declare this State as its home state;

(b) Designate a natural person who is a licensed adjuster and who is authorized to transact business on behalf of the business entity to be responsible for the compliance of the business entity with the insurance laws, rules and regulations of this State; and

(c) Never have committed any act that is a ground for refusal to issue, suspension or revocation of a license pursuant to NRS 683A.451.

2. If the business entity is a firm or a corporation, transaction of business under the license must be within the purposes stated in the firm’s partnership agreement or the corporation’s charter, as applicable.

3. The licensee shall promptly notify the Commissioner in writing of all changes among its members, directors, officers and other natural persons designated pursuant to subsection 1 . [or NRS 684A.090.]

Sec. 18. NRS 684A.090 is hereby amended to read as follows:

684A.090 1. The applicant for a license as an adjuster shall file a written application therefor with the Commissioner on forms prescribed and furnished by the Commissioner. As part of, or in connection with, the application, the applicant shall furnish information as to his or her identity, personal history, experience, financial responsibility, business record and other pertinent matters as reasonably required by the Commissioner to determine the applicant’s eligibility and qualifications for the license.

2. If the applicant is a natural person, the application must include the social security number of the applicant and include a completed copy of the Uniform Individual Application.

3. If the applicant is a business entity, the application must [designate each individual who is to exercise the license powers] identify the natural person designated pursuant to paragraph (b) of subsection 1 of NRS 684A.080 and must include:

(a) A completed copy of the Uniform Business Entity Application;

(b) The name of each member, officer and director of the business entity, as applicable;

(c) The name of each executive officer and director who owns more than 10 percent of the outstanding voting securities of the applicant; and

(d) The name of any other individual who owns more than 10 percent of the outstanding voting securities of the applicant.

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ê2023 Statutes of Nevada, Page 2634 (CHAPTER 429, SB 57)ê

Ê Each such member, officer, director and individual shall furnish information to the Commissioner as though applying for an individual license.

4. If the applicant is a nonresident of this state, the application must be accompanied by an appointment of the Commissioner as process agent and agreement to appear pursuant to NRS 684A.200.

5. The application must be accompanied by the applicable license fee as specified in NRS 680B.010 and subsection 2 of NRS 684A.050 and, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110 and subsection 2 of NRS 684A.050.

6. No applicant for such a license may willfully misrepresent or withhold any fact or information called for in the application form or in connection therewith. A violation of this subsection is a gross misdemeanor.

7. If the Commissioner determines that the information contained in a Uniform Individual Application or Uniform Business Entity Application submitted with an application pursuant to this section is not true, correct and complete to the best of the applicant’s knowledge and belief, the Commissioner may refuse to issue a license to the applicant or suspend or revoke the applicant’s license.

Sec. 19. NRS 684A.150 is hereby amended to read as follows:

684A.150 1. In the event of death or inability to act as a licensed independent adjuster, the Commissioner may issue a temporary license as an independent adjuster to another individual qualified therefor except as to the taking and passing of the required examination, to enable such individual to continue the business of the deceased licensee or the licensee who has a disability.

2. The temporary license shall be valid for 6 months, or until the temporary licensee earlier qualifies for a regular license as an independent adjuster . [, but the Commissioner may, in his or her discretion, extend the]

3. A temporary license issued pursuant to this section may be renewed for one additional period [as reasonably necessary while the temporary licensee is acting as an administrator or executor or is otherwise using the license in endeavoring to settle the estate of a deceased independent adjuster.] of 180 days if:

(b) The Commissioner approves the request.

Sec. 20. NRS 684B.040 is hereby amended to read as follows:

684B.040 1. An applicant for a license as a motor vehicle physical damage appraiser must file a written application therefor with the Commissioner on forms prescribed and furnished by the Commissioner. The applicant must furnish information as to his or her identity, personal history, experience, financial responsibility, business record and other pertinent matters as reasonably required by the Commissioner to determine the applicant’s eligibility and qualifications for the license.

2. If the applicant is a natural person, the application must include the social security number of the applicant.

3. If the applicant is a business organization [, the] :

(a) The business organization must designate a natural person who is a licensed motor vehicle physical damage appraiser or a licensed insurance adjuster and who is authorized to transact business on behalf of the business organization to be responsible for the compliance of the business organization with the insurance laws, rules and regulations of this State; and

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ê2023 Statutes of Nevada, Page 2635 (CHAPTER 429, SB 57)ê

adjuster and who is authorized to transact business on behalf of the business organization to be responsible for the compliance of the business organization with the insurance laws, rules and regulations of this State; and

(b) The application must include the names of all members, officers and directors, and must [designate each] identify the natural person [who is to exercise the licensee’s powers. A natural person who is authorized to act for a business organization and who also wishes to be licensed in an individual capacity must obtain a separate license in his or her own name.] designated pursuant to paragraph (a).

4. The application must be accompanied by all applicable license fees. [The Commissioner shall charge separate fees for each person authorized to act for a business organization.]

5. An applicant for a license who desires to use a name other than his or her true name must comply with the provisions of NRS 683A.301. The Commissioner shall not issue a license in a trade name unless the name has been registered pursuant to NRS 600.240 to 600.450, inclusive.

6. An applicant for a license shall not willfully misrepresent or withhold any fact or information called for in the application form or in connection with the application. A violation of this subsection is a gross misdemeanor.

Sec. 21. (Deleted by amendment.)

Sec. 22. NRS 687B.4095 is hereby amended to read as follows:

687B.4095 1. If a policy of health insurance issued to an individual pursuant to chapter 689A, 695B or 695C of NRS includes coverage for a prescription drug pursuant to a formulary with more than one cost tier, the insurer may move the prescription drug from a lower cost tier to a higher cost tier only:

(a) On January 1; and

(b) On any date on which the insurer adds to the formulary a generic prescription drug that:

(1) Has been approved by the Food and Drug Administration for use as an alternative to the original prescription drug; and

(2) Is being added to the formulary at:

(I) The same cost tier from which the original prescription drug is being moved; or

(II) A cost tier which has a smaller deductible, copayment or coinsurance than the cost tier from which the original prescription drug is being moved.

2. If a policy of health insurance issued to a small employer pursuant to chapter 689C, 695B or 695C of NRS includes coverage for a prescription drug pursuant to a formulary with more than one cost tier, the insurer may move the prescription drug from a lower cost tier to a higher cost tier only:

(a) On January 1;

(b) On July 1; and

(1) Has been approved by the Food and Drug Administration for use as an alternative to the original prescription drug; and

(2) Is being added to the formulary at:

(I) The same cost tier from which the original prescription drug is being moved; or

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ê2023 Statutes of Nevada, Page 2636 (CHAPTER 429, SB 57)ê

(II) A cost tier which has a smaller deductible, copayment or coinsurance than the cost tier from which the original prescription drug is being moved.

3. [The] An insurer who issues a policy of health insurance described in subsection 1 or 2 and who removes a prescription drug from a formulary shall not, in the same plan year in which the prescription drug was removed, add the prescription drug back to the formulary in a higher cost tier except in accordance with the provisions of subsection 1 or 2, as applicable.

4. Except as otherwise provided in subsection 3, the provisions of this section do not prevent an insurer, at any time, from:

(a) Moving a prescription drug from a higher cost tier of a formulary to a lower cost tier of the formulary;

(b) Removing a prescription drug from a formulary; or

[4.] 5. This section does not apply to a grandfathered plan.

[5.] 6. The provisions of this section must not be construed to limit the conditions under which a pharmacist is otherwise authorized or required by law to substitute:

(a) A generic drug for a drug prescribed by brand name; or

(b) An interchangeable biological product for a biological product prescribed by brand name.

[6.] 7. As used in this section:

(a) “Biological product” has the meaning ascribed to it in NRS 639.0017.

(b) “Individual carrier” has the meaning ascribed to it in NRS 689A.550.

(1) An individual carrier; and

(2) A governmental entity which offers, administers or otherwise provides a policy of health insurance.

(d) “Interchangeable biological product” has the meaning ascribed to it in NRS 639.00855.

(e) “Small employer” has the meaning ascribed to it in NRS 689C.095.

Sec. 23. 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.

2. 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.

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] 0.15 percent per annum.

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ê2023 Statutes of Nevada, Page 2637 (CHAPTER 429, SB 57)ê

adopted by the Commissioner, except that at no time may the resulting rate be less than [1] 0.15 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] 0.15 percent per annum.

Sec. 24. NRS 688A.369 is hereby amended to read as follows:

688A.369 NRS 688A.361 to 688A.369, inclusive, do not apply to any reinsurance, group annuity purchased under a retirement plan or plan of deferred compensation established or maintained by an employer (including a partnership or sole proprietorship), by an employee organization, or by both, other than a plan providing individual retirement accounts or individual retirement annuities under section 408 of the Internal Revenue Code, as amended, premium deposit fund, variable annuity, investment annuity, immediate annuity, deferred annuity contract after annuity payments have commenced, contingent deferred annuity, reversionary annuity or to any contract which will be delivered outside this state through an agent or other representative of the company issuing the contract.

Sec. 25. NRS 689.160 is hereby amended to read as follows:

689.160 1. The provisions of NRS 683A.341, 683A.451, 683A.461 and 686A.010 to 686A.310, inclusive, apply to agents and sellers.

2. For the purposes of subsection 1, unless the context requires that a section apply only to insurers, any reference in those sections to “insurer” must be replaced by a reference to “agent” and “seller.”

3. The provisions of NRS 679B.230 to 679B.300, inclusive, apply to sellers. Unless the context requires that a provision apply only to insurers, any reference in those sections to “insurer” must be replaced by a reference to “seller.”

4. The provisions of NRS 683A.301 apply to applicants for and holders of a seller’s certificate of authority. Unless the context requires that a provision apply only to an applicant for or holder of a license as a producer of insurance, any reference in that section to:

(a) An “applicant for a license as a producer of insurance” must be replaced by a reference to an “applicant for a seller’s certificate of authority”; and

(b) A “licensee” must be replaced by a reference to a “holder of a seller’s certificate of authority.”

Sec. 26. 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 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.

2. The application must:

(a) Contain information concerning the applicant’s identity, address, social security number, personal background and business, professional or work history.

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(b) Contain such other pertinent information as the Commissioner may require.

(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)] (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 689.535.

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:

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. 27. NRS 689.595 is hereby amended to read as follows:

689.595 1. The provisions of NRS 683A.341, 683A.451, 683A.461 and 686A.010 to 686A.310, inclusive, apply to agents and sellers.

4. The provisions of NRS 683A.301 apply to applicants for and holders of a seller’s permit. Unless the context requires that a provision apply only to an applicant for or a holder of a license as a producer of insurance, any reference in that section to:

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ê2023 Statutes of Nevada, Page 2639 (CHAPTER 429, SB 57)ê

apply only to an applicant for or a holder of a license as a producer of insurance, any reference in that section to:

(a) An “applicant for a license as a producer of insurance” must be replaced by a reference to an “applicant for a seller’s permit”; and

(b) A “licensee” must be replaced by a reference to a “holder of a seller’s permit.”

Sec. 28. NRS 689C.075 is hereby amended to read as follows:

689C.075 [1.] “Health benefit plan” [means a policy, contract, certificate or agreement to provide for, deliver payment for, arrange for the payment of, pay for or reimburse any of the costs of health care services. Except as otherwise provided in this section, the term includes short-term and catastrophic health insurance policies and a policy that pays on a cost-incurred basis.

2. The term does not include:

(a) Coverage that is only for accident or disability income insurance, or any combination thereof;

(b) Coverage issued as a supplement to liability insurance;

(d) Workers’ compensation or similar insurance;

(e) Coverage for medical payments under a policy of automobile insurance;

(f) Credit insurance;

(g) Coverage for on-site medical clinics;

(h) Coverage under a short-term health insurance policy;

(i) Coverage under a blanket student accident and health insurance policy; and

(j) Other similar insurance coverage specified in federal regulations issued pursuant to the Health Insurance Portability and Accountability Act of 1996, Public Law 104-191, under which benefits for medical care are secondary or incidental to other insurance benefits.

3. If the benefits are provided under a separate policy, certificate or contract of insurance or are otherwise not an integral part of a health benefit plan, the term does not include the following benefits:

(a) Limited-scope dental or vision benefits;

(b) Benefits for long-term care, nursing home care, home health care or community-based care, or any combination thereof; and

(c) Such other similar benefits as are specified in any federal regulations adopted pursuant to the Health Insurance Portability and Accountability Act of 1996, Public Law 104-191.

4. If the benefits are provided under a separate policy, certificate or contract of insurance, there is no coordination between the provision of the benefits and any exclusion of benefits under any group health plan maintained by the same plan sponsor, and the benefits are paid for a claim without regard to whether benefits are provided for such a claim under any group health plan maintained by the same plan sponsor, the term does not include:

(a) Coverage that is only for a specified disease or illness; and

(b) Hospital indemnity or other fixed indemnity insurance.

5. If offered as a separate policy, certificate or contract of insurance, the term does not include:

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ê2023 Statutes of Nevada, Page 2640 (CHAPTER 429, SB 57)ê

(a) Medicare supplemental health insurance as defined in section 1882(g)(1) of the Social Security Act, 42 U.S.C. § 1395ss, as that section existed on July 16, 1997;

(b) Coverage supplemental to the coverage provided pursuant to the Civilian Health and Medical Program of Uniformed Services, CHAMPUS, 10 U.S.C. §§ 1071 et seq.; and

Sec. 29. NRS 694C.160 is hereby amended to read as follows:

694C.160 1. The terms and conditions set forth in chapter 696B of NRS pertaining to insurance reorganization, receiverships and injunctions apply to captive insurers incorporated pursuant to this chapter.

2. The provisions of NRS 679B.285 pertaining to the confidentiality and disclosure of certain records and information relating to an insurer apply to such records and information relating to a captive insurer incorporated pursuant to this chapter.

3. An agency captive insurer, a rental captive insurer and an association captive insurer are subject to those provisions of chapter 686A of NRS which are applicable to insurers.

[3.] 4. A state-chartered risk retention group is subject to the following:

(a) The provisions of NRS 681A.250 to 681A.580, inclusive, regarding intermediaries;

(b) The provisions of NRS 681B.550 regarding risk-based capital;

(d) The provisions of chapter 686A of NRS which are applicable to insurers; and

(e) The provisions of NRS 693A.110 and any regulations adopted pursuant thereto regarding management and agency contracts of insurers.

Sec. 30. NRS 694C.195 is hereby amended to read as follows:

694C.195 1. One or more sponsors may form a sponsored captive insurer pursuant to this chapter.

2. A sponsored captive insurer formed or licensed pursuant to this chapter may establish and maintain one or more protected cells to insure the risks of one or more participants, subject to the following conditions:

(a) The shareholders of a sponsored captive insurer must be limited to its participants and sponsors, provided that the sponsored captive insurer may issue nonvoting securities to other persons on terms approved by the Commissioner;

(b) Each protected cell must be accounted for separately on the books and records of the sponsored captive insurer to reflect the financial condition and results of operations of that protected cell, including, but not limited to, the net income or loss, dividends, or other distributions to participants, and such other factors as may be set forth in the participant contract or required by the Commissioner;

(c) The assets of a protected cell must not be chargeable with liabilities arising out of any other insurance business which the sponsored captive insurer may conduct;

(d) A sponsored captive insurer shall not make a sale, exchange, transfer of assets, dividend or distribution between or among any of its protected cells without the consent of any participant for which the protected cells are maintained;

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(e) A sponsored captive insurer shall not make a sale, exchange, transfer of assets, dividend or distribution from a protected cell to a sponsor or participant without the prior written approval of the Commissioner, and the Commissioner shall not give written approval if the sale, exchange, transfer, dividend or distribution would result in the insolvency or impairment of the protected cell;

(f) On or before [March 1] June 30 of each year, a sponsored captive insurer must file with the Commissioner a report of its financial condition, including, but not limited to, accounting statements detailing the financial experience of each protected cell and any other information required by the Commissioner;

(g) A sponsored captive insurer must notify the Commissioner not more than 10 business days after a protected cell becomes insolvent or otherwise unable to meet its claims or expense obligations;

(h) A participant contract must not become effective without the prior written approval of the Commissioner;

(i) The addition of each new protected cell, the withdrawal of any participant of a protected cell or the termination of any existing protected cell constitutes a change in the business plan and requires the prior written approval of the Commissioner; and

(j) The business written by a sponsored captive insurer with respect to each protected cell must be:

(1) Fronted by an insurer licensed pursuant to the laws of any state;

(2) Reinsured by a reinsurer authorized or approved by the Commissioner; or

(3) Secured by a trust fund in the United States for the benefit of policyholders and claimants or funded by an irrevocable letter of credit or other arrangement that is acceptable to the Commissioner. The amount of security provided must not be less than the reserves associated with those liabilities, which are not fronted or reinsured pursuant to subparagraph (1) or (2), including reserves for losses, allocated loss adjustment expenses, incurred but not reported losses and unearned premiums for business written through the protected cell maintained for the participant. The Commissioner may require the sponsored captive insurer to increase the funding of any security arrangement established under this subsection. If the form of security is a letter of credit, the letter of credit must be established, issued or confirmed by a bank chartered in this State, a member of the Federal Reserve System or a bank chartered in another state if the bank is deemed acceptable by the Commissioner. A trust maintained pursuant to this subparagraph must be established in a form and under such terms that are approved by the Commissioner.

3. A sponsor of a sponsored captive insurer must:

(a) Be an insurer licensed pursuant to the laws of any state, a reinsurer authorized or approved under the laws of any state, a captive insurer formed or licensed pursuant to this chapter or a person approved as a sponsor by the Commissioner; and

(b) Not be a risk retention group.

4. A participant in a sponsored captive insurer need not be a shareholder of the sponsored captive insurer or an affiliate of the sponsored captive insurer and:

(a) May be an association, corporation, limited-liability company, partnership, trust or other form of business organization;

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ê2023 Statutes of Nevada, Page 2642 (CHAPTER 429, SB 57)ê

(b) May be a sponsor of the sponsored captive insurer; and

5. A participant in a sponsored captive insurer shall insure only its own risks through a sponsored captive insurer.

Sec. 31. NRS 694C.388 is hereby amended to read as follows:

694C.388 Before [March 1] June 30 of each year or, if approved by the Commissioner, not more than 60 days after the expiration of the fiscal year of the branch captive insurer, the branch captive insurer shall file with the Commissioner a copy of all reports and statements required to be filed under the laws of the jurisdiction in which the alien captive insurer is domiciled. The reports and statements must be verified by oath of two of the executive officers of the alien captive insurer. If the Commissioner is satisfied that the annual report filed by the alien captive insurer in the jurisdiction in which it is domiciled provides adequate information concerning the financial condition of the alien captive insurer, the Commissioner may waive the requirement for completion of the captive annual statement for business written in the alien jurisdiction.

Sec. 32. 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 , other than a state-chartered risk retention group, shall submit to the Commissioner a report of its financial condition. 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 the Commissioner. Each state-chartered risk retention group shall file its report in the time and form required by NRS 680A.270. The Commissioner shall adopt regulations designating the form in which pure captive insurers must report.

2. Each captive insurer, other than a state-chartered risk retention group, shall submit to the Commissioner, on or before June 30 of each year, an annual audit as of December 31 of the preceding calendar year that is certified by a certified public accountant who is not an employee of the insurer. An annual audit submitted pursuant to this subsection must comply with the requirements set forth in regulations adopted by the Commissioner which govern such an annual audit, including, without limitation, criteria for extensions and exemptions.

3. Each state-chartered risk retention group shall file a financial statement pursuant to NRS 680A.265.

4. 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, the annual report is due not later than 60 days after the end of each such fiscal year.

5. A 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.

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ê2023 Statutes of Nevada, Page 2643 (CHAPTER 429, SB 57)ê

6. Any captive insurer failing, without just cause beyond the reasonable control of the captive insurer, to file its annual report of financial condition as required by subsection 1, its annual audit as required by subsection 2 or its financial statement as required by subsection 3 shall pay a penalty of $100 for each day the captive insurer fails to file the report of financial condition, the annual audit or the financial statement, 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.

7. 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. 33. NRS 695B.320 is hereby amended to read as follows:

695B.320 1. Nonprofit hospital and medical or dental service corporations are subject to the provisions of this chapter, and to the provisions of chapters 679A and 679B of NRS, subsections 2, 4, [18, 19 and 31] 17, 18 and 30 of NRS 680B.010, NRS 680B.025 to 680B.060, inclusive, chapter 681B of NRS, NRS 686A.010 to 686A.315, inclusive, 686B.010 to 686B.175, inclusive, 687B.010 to 687B.040, inclusive, 687B.070 to 687B.140, inclusive, 687B.150, 687B.160, 687B.180, 687B.200 to 687B.255, inclusive, 687B.270, 687B.310 to 687B.380, inclusive, 687B.410, 687B.420, 687B.430, 687B.500 and chapters 692B, 692C, 693A and 696B of NRS, to the extent applicable and not in conflict with the express provisions of this chapter.

2. For the purposes of this section and the provisions set forth in subsection 1, a nonprofit hospital and medical or dental service corporation is included in the meaning of the term “insurer.”

Sec. 34. NRS 695C.055 is hereby amended to read as follows:

695C.055 1. The provisions of NRS 449.465, 679A.200, 679B.700, subsections 7 and 8 of NRS 680A.270, subsections 2, 4, [18, 19 and 31] 17, 18 and 30 of NRS 680B.010, NRS 680B.020 to 680B.060, inclusive, chapters 681B and 686A of NRS, NRS 686B.010 to 686B.175, inclusive, 687B.122 to 687B.128, inclusive, 687B.310 to 687B.420, inclusive, and 687B.500 and chapters 692C and 695G of NRS apply to a health maintenance organization.

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

Sec. 35. NRS 695D.095 is hereby amended to read as follows:

695D.095 1. An organization for dental care is subject to the provisions of this chapter and to the provisions set forth in this section, to the extent reasonably applicable. Organizations for dental care are subject to the provisions of NRS 449.465, 679B.700, subsections 7 and 8 of NRS 680A.270, subsections 2, 4, [18, 19 and 31] 17, 18 and 30 of NRS 680B.010, NRS 680B.020 to 680B.060, inclusive, chapters 681B and 686A of NRS, NRS 686B.010 to 686B.175, inclusive, and chapters 687B, 692C and 695G of NRS.

2. For the purposes of this section and the provisions set forth in subsection 1, an organization for dental care is included in the meaning of the term “insurer.”

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Sec. 36. NRS 695J.190 is hereby amended to read as follows:

695J.190 1. If the Commissioner believes that a temporary certificate is necessary to carry on the business of facilitating selection of a qualified health plan, the Commissioner may issue a temporary certificate as an exchange enrollment facilitator for 180 days or less without requiring an examination to:

(a) The surviving spouse, personal representative or guardian of an exchange enrollment facilitator who dies or becomes incompetent or incapacitated, to allow adequate time for the sale of the business, the recovery or return of the exchange enrollment facilitator, or the training and certification of new personnel to operate the business;

(b) A member or employee of a business organization appointed by the Exchange, upon the death or disability of the natural person designated in its application or certificate;

(c) The designee of an exchange enrollment facilitator entering active service in the Armed Forces of the United States; or

(d) A person in any other circumstance in which the Commissioner believes that the public interest will be best served by issuing the certificate.

2. The Commissioner may by order limit the authority of a person who holds a temporary certificate as the Commissioner believes necessary to protect persons insured and the public. The Commissioner may require the person who holds a temporary certificate to have a suitable sponsor who is an exchange enrollment facilitator and who assumes responsibility for all acts of the person who holds the temporary certificate, and may impose similar requirements to protect persons insured and the public. The Commissioner may order revocation of a temporary certificate if the interests of persons insured or the public are endangered. A temporary certificate expires when the owner or the personal representative or guardian of the owner disposes of the business.

3. A temporary certificate issued pursuant to this section may be renewed for one additional period of 180 days if:

(a) The person who holds the temporary certificate, on or before a date specified by the Commissioner as the last day in which the temporary certificate is renewable, submits to the Commissioner a written request which includes, without limitation, sufficient justification for the renewal; and

(b) The Commissioner approves the request.

Sec. 37. NRS 696B.190 is hereby amended to read as follows:

696B.190 1. The district court has original jurisdiction of delinquency proceedings under NRS 696B.010 to 696B.565, inclusive, and any court with jurisdiction may make all necessary or proper orders to carry out the purposes of those sections. The Nevada Rules of Civil Procedure do not govern the commencement of a delinquency proceeding pursuant to NRS 696B.250 and the filing of a petition by the Commissioner or the issuance by the court of an order to show cause pursuant to that section.

2. The venue of delinquency proceedings against a domestic insurer must be in the county in this state of the insurer’s principal place of business or, if the principal place of business is located in another state, in any county in this state selected by the Commissioner for the purpose. The venue of proceedings against foreign insurers must be in any county in this state selected by the Commissioner for the purpose.

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3. At any time after commencement of a proceeding, the Commissioner or any other party may apply to the court for an order changing the venue of, and removing, the proceeding to any other county of this state in which the proceeding may most conveniently, economically and efficiently be conducted.

4. No court has jurisdiction to entertain, hear or determine any petition or complaint praying for the dissolution, liquidation, rehabilitation, sequestration, conservation or receivership of any insurer, or for an injunction or restraining order or other relief preliminary, incidental or relating to such proceedings, other than in accordance with NRS 696B.010 to 696B.565, inclusive.

5. An appeal to the appellate court of competent jurisdiction pursuant to the rules fixed by the Supreme Court pursuant to Section 4 of Article 6 of the Nevada Constitution may be taken from any court granting or refusing rehabilitation, liquidation, conservation or receivership, and from every order in delinquency proceedings having the character of a final order as to the particular portion of the proceedings embraced therein.

Sec. 38. NRS 696B.255 is hereby amended to read as follows:

696B.255 1. The Commissioner, as receiver, rehabilitator or liquidator, may , [appoint one or more special deputies who have all the powers and responsibilities of a receiver, rehabilitator or liquidator, and the Commissioner may employ such counsels, clerks and assistants as the Commissioner considers necessary. The compensation of such special deputies, counsels, clerks and assistants and all expenses of taking possession of the insurer and of conducting the proceedings must be fixed by the Commissioner with the approval of the court, and paid out of the money or other assets of the insurer. The persons appointed pursuant to this section serve at the pleasure of the Commissioner. The Commissioner, as receiver, rehabilitator or liquidator, may,] with the approval of the court, appoint an advisory committee of policyholders, claimants or other creditors, including guaranty associations, if the Commissioner considers such a committee necessary. The committee serves at the pleasure of the Commissioner and serves without compensation other than reimbursement for reasonable travel and other expenses. No other committee of any nature may be appointed by the Commissioner or the court in proceedings for receivership, rehabilitation or liquidation conducted pursuant to this chapter.

2. If the property of the insurer does not contain sufficient cash or liquid assets to defray the costs incurred, the Commissioner may advance the costs so incurred out of any appropriation for the maintenance of the Division. Any amounts so advanced for expenses of administration must be repaid to the Commissioner out of the first available money of the insurer.

Sec. 39. NRS 696B.290 is hereby amended to read as follows:

696B.290 1. Whenever under this chapter a receiver is to be appointed in delinquency proceedings for an insurer, the court shall appoint the Commissioner as such receiver. The court shall order the Commissioner forthwith to take possession of the assets of the insurer and to administer the assets under the orders of the court.

2. As a domiciliary receiver, the Commissioner shall be vested by operation of law with the title to all of the property, contracts and rights of action, and all of the books and records of the insurer, wherever located, as of the date of entry of the order directing the Commissioner to conserve, rehabilitate or liquidate a domestic insurer or to liquidate the United States branch of an alien insurer domiciled in this state, and the Commissioner shall have the right to recover the same and reduce the same to possession; but ancillary receivers in reciprocal states shall have, as to assets located in their respective states, the rights and powers which are prescribed in this chapter for ancillary receivers appointed in this state as to assets located in this state.

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ê2023 Statutes of Nevada, Page 2646 (CHAPTER 429, SB 57)ê

branch of an alien insurer domiciled in this state, and the Commissioner shall have the right to recover the same and reduce the same to possession; but ancillary receivers in reciprocal states shall have, as to assets located in their respective states, the rights and powers which are prescribed in this chapter for ancillary receivers appointed in this state as to assets located in this state.

3. The filing or recording of the order directing possession to be taken, or a certified copy thereof, in any office where instruments affecting title to property are required to be filed or recorded shall impart the same notice as would be imparted by a deed, bill of sale or other evidence of title duly filed or recorded.

4. The Commissioner as domiciliary receiver shall be responsible for the proper administration of all assets coming into the possession or control of the Commissioner. The court may at any time require a bond from the Commissioner or the deputies of the Commissioner if deemed desirable for the protection of such assets.

5. Upon taking possession of the assets of an insurer, the domiciliary receiver shall immediately proceed to conduct the business of the insurer or to take such steps as are authorized by this chapter for the purpose of rehabilitating, liquidating or conserving the affairs or assets of the insurer.

6. In connection with delinquency proceedings, the Commissioner may appoint one or more special deputy commissioners to act for the Commissioner and the Commissioner may employ such counsel, clerks and assistants as the Commissioner deems necessary. The compensation of the special deputies, counsel, clerks or assistants and all expenses of taking possession of the insurer and of conducting the proceedings shall be fixed by the receiver and shall be paid out of the funds or assets of the insurer. Within the limits of duties imposed upon them, special deputies shall possess all the powers given to and, in the exercise of those powers, shall be subject to all of the duties imposed upon the receiver with respect to such proceedings. The persons appointed pursuant to this subsection serve at the pleasure of the Commissioner.

7. During such receivership the Commissioner shall file in the court, at regular intervals not less frequently than quarterly, the Commissioner’s true reports in summary form of the insurer’s affairs under the receivership, and of progress being made in accomplishing the objectives of the receivership. All such reports, together with such additional or special reports as the court may reasonably require, shall be subject to review by the court; and all actions of the receiver therein reported shall be subject to the court’s approval, but the court shall not withhold approval or disapprove any such action unless found by the court after a hearing thereon in open court to be unlawful, arbitrary or capricious.

Sec. 39.2. Chapter 697 of NRS is hereby amended by adding thereto the provisions set forth as sections 39.3 and 39.4 of this act.

Sec. 39.3. “Home state” means the District of Columbia or any state or territory of the United States in which a bail agent maintains his or her principal place of residence or principal place of business and is licensed to act as a bail agent.

Sec. 39.4. 1. The Commissioner shall issue a nonresident license as a bail agent to a nonresident person if:

(a) The person is currently licensed and in good standing as a bail agent in the resident or home state of the person;

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(b) The person has submitted the proper request for licensure and has paid all fees required pursuant to NRS 680B.010 and, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110;

(d) The person satisfies the requirements specified in subsection 2 of NRS 697.150; and

(e) The home state of the person awards nonresident licenses as a bail agent to persons of this State on the same basis.

2. The Commissioner may verify the licensing status of the nonresident person:

(a) Through any appropriate database, including, without limitation, the Producer Database maintained by the National Insurance Producer Registry or its affiliates or subsidiaries;

(b) By requesting that the nonresident person submit proof that the nonresident person is licensed and in good standing in the person’s home state as a bail agent; or

3. As a condition to the continuation of a nonresident license as a bail agent, the nonresident bail agent shall maintain a resident license as a bail agent in the home state of the bail agent. A nonresident license as a bail agent issued under this section must be terminated and surrendered immediately to the Commissioner if the resident license as a bail agent in the home state is terminated for any reason, unless:

(a) The termination is due to the nonresident bail agent being issued a new resident license as a bail agent in a new home state; and

(b) The new resident license as a bail agent is from a state that has reciprocity with this State.

4. The Commissioner shall give notice of the termination of a resident license as a bail agent within 30 days after the date of the termination to any states that issued a nonresident license as a bail agent to the holder of the resident license. If the resident license as a bail agent was terminated because of a change in the home state of the bail agent, the notice must include both the previous and current address of the bail agent.

5. The Commissioner shall terminate a nonresident license as a bail agent issued pursuant to this section if the bail agent establishes legal residency in this State and fails to apply for a resident license as a bail agent within 90 days after establishing legal residency.

Sec. 39.5. NRS 697.020 is hereby amended to read as follows:

697.020 As used in this Code, unless the context otherwise requires, the words and terms defined in NRS 697.030 to 697.070, inclusive, and section 39.3 of this act have the meanings ascribed to them in those sections.

Sec. 39.6. NRS 697.150 is hereby amended to read as follows:

697.150 1. Except as otherwise provided in [subsection] subsections 2 [,] and 3, a person is entitled to receive, renew or hold a license as a bail agent if the person:

(a) Is a resident of this State and has resided in this State for not less than 1 year immediately preceding the date of the application for the license.

(b) Is a natural person not less than 18 years of age.

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ê2023 Statutes of Nevada, Page 2648 (CHAPTER 429, SB 57)ê

(d) Is competent, trustworthy and financially responsible.

(e) Has passed any written examination required under this chapter.

(f) Has filed the bond required by NRS 697.190.

(g) Has, on or after July 1, 1999, successfully completed a 6-hour course of instruction in bail bonds that is:

(1) Offered by a state or national organization of bail agents or another organization that administers training programs for bail agents; and

(2) Approved by the Commissioner.

2. A nonresident person is entitled to receive, renew or hold a nonresident license as a bail agent if, in addition to the applicable requirements set forth in section 39.4 of this act, the nonresident person satisfies the requirements set forth in paragraphs (b), (d) and (f) of subsection 1.

3. A person is not entitled to receive, renew or hold a license as a bail agent if the person has 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. A conviction of, or plea of guilty, guilty but mentally ill or nolo contendere by, an applicant or licensee for any crime listed in this subsection is a sufficient ground for the Commissioner to deny a license to the applicant or to suspend or revoke the license of the agent.

Sec. 39.7. 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 or bail agent, other than a nonresident license as a bail agent, 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) Require full answers to questions reasonably necessary to determine the applicant’s:

(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:

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ê2023 Statutes of Nevada, Page 2649 (CHAPTER 429, SB 57)ê

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

5. The Commissioner may:

(b) Request from each such agency any information regarding the applicant’s background as the Commissioner deems necessary; and

Sec. 39.8. NRS 697.183 is hereby amended to read as follows:

697.183 An application for a license as a bail agent , other than an application for a nonresident license as a bail agent, must be accompanied by:

1. Proof of the completion of a 6-hour course of instruction in bail bonds that is:

(a) Offered by a state or national organization of bail agents or another organization that administers training programs for bail agents; and

(b) Approved by the Commissioner.

2. A written appointment by an authorized insurer as agent for bail bonds, subject to the issuance of the license.

3. A letter from a local law enforcement agency in the applicant’s county of residence which indicates that the applicant:

(a) Has not 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; and

(b) Has not been convicted of an offense involving moral turpitude or the unlawful use, sale or possession of a controlled substance.

Sec. 40. NRS 697.184 is hereby amended to read as follows:

697.184 1. An application for a license as a general agent must be accompanied by:

(a) Proof of the completion of a 6-hour course of instruction in bail bonds that is:

(1) Offered by a state or national organization of bail agents or another organization that administers training programs for general agents; and

(2) Approved by the Commissioner.

(b) A written appointment by an authorized insurer as general agent, subject to the issuance of the license.

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ê2023 Statutes of Nevada, Page 2650 (CHAPTER 429, SB 57)ê

(c) A letter from a local law enforcement agency in the applicant’s county of residence which indicates that the applicant:

(1) Has not 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; and

(2) Has not been convicted of an offense involving moral turpitude or the unlawful use, sale or possession of a controlled substance.

(d) A copy of the contract or agreement that authorizes the general agent to act as general agent for the insurer.

(e) Any other information the Commissioner may require.

2. If the applicant for a license as a general agent is a firm or corporation [, the] :

(a) The applicant must designate a natural person who is a licensed general agent and who is authorized to transact business on behalf of the firm or corporation to be responsible for the compliance of the firm or corporation with the insurance laws, rules and regulations of this State; and

(b) The application must include the names of the members, officers and directors and [designate each] identify the natural person [who is to exercise the authority granted by the license. Each person so] designated [must furnish information about himself or herself as though the application were for an individual license.] pursuant to paragraph (a).

Sec. 41. NRS 697.185 is hereby amended to read as follows:

697.185 An application for a license as a bail solicitor must be accompanied by:

1. Proof of the completion of a 6-hour course of instruction in bail bonds that is:

(a) Offered by a state or national organization of bail agents or another organization that administers training programs for bail solicitors; and

(b) Approved by the Commissioner.

2. [An appointment] A sponsorship by a licensed bail agent and a statement by the agent that the agent will exercise reasonable supervision over the conduct of the applicant and be responsible for the applicant’s conduct in the bail bond business.

3. A letter from a local law enforcement agency in the applicant’s county of residence which indicates that the applicant:

(a) Has not 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; and

(b) Has not been convicted of an offense involving moral turpitude or the unlawful use, sale or possession of a controlled substance.

Sec. 41.3. NRS 697.200 is hereby amended to read as follows:

697.200 1. Any natural person who intends to apply for a license as a bail [agent, bail] enforcement agent , [or] bail solicitor or bail agent, other than a nonresident license as a bail agent, must personally take and pass a written examination of his or her competence to act as such. After passing the examination, the person may apply to the Commissioner for such a license.

2. The scope of the examination must be as broad as the bail bond business.

3. The examination must be administered by the Commissioner or an entity approved by the Commissioner.

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ê2023 Statutes of Nevada, Page 2651 (CHAPTER 429, SB 57)ê

Sec. 41.6. NRS 697.230 is hereby amended to read as follows:

697.230 1. Except as otherwise provided in NRS 697.177, each license issued to or renewed for a general agent, bail agent, bail enforcement agent or bail solicitor 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 on or before the renewal date for the license. All applicable fees must be accompanied by:

(a) [Proof] Except as otherwise provided in subsection 6, proof that the licensee has completed a 3-hour program of continuing education that is:

(1) Offered by the authorized surety insurer from whom the licensee received written appointment, if any, a state or national organization of bail agents or another organization that administers training programs for general agents, bail agents, bail enforcement agents or bail solicitors; and

(2) Approved by the Commissioner;

(b) If the licensee is a natural person, the statement required pursuant to NRS 697.181; and

(1) By the licensee in the case of the renewal of a license as a general agent, bail enforcement agent or bail agent.

(2) By the bail solicitor and the bail agent who employs the solicitor in the case of the renewal of a license as a bail solicitor.

2. Any license that is not renewed on or before the renewal date for the license expires on the renewal date. The Commissioner may accept a request for renewal received by the Commissioner within 30 days after the date of expiration if the request is accompanied by a fee for renewal of 150 percent of all applicable fees otherwise required, except for any fee required pursuant to NRS 680C.110, and, if the person requesting renewal is a natural person, the statement required pursuant to NRS 697.181.

3. A bail agent’s license continues in force while there is in effect an appointment of him or her as a bail agent of one or more authorized insurers. Upon termination of all the bail agent’s appointments and the bail agent’s failure to replace any appointment within 30 days thereafter, the bail agent’s license expires and the bail agent shall promptly deliver his or her license to the Commissioner.

4. The Commissioner shall terminate the license of a general agent for a particular insurer upon a written request by the insurer.

5. This section does not apply to temporary licenses issued under NRS 683A.311 or 697.177.

6. The provisions of paragraph (a) of subsection 1 do not apply to a person who:

(a) Holds a nonresident license as a bail agent; and

(b) Has met the continuing education requirements of his or her home state.

7. As used in this section, “renewal date” means:

(a) For the first renewal of the license, the last day of the month which is 3 years after the month in which the Commissioner originally issued the license.

(b) For each renewal after the first renewal of the license, the last day of the month which is 3 years after the month in which the license was last due to be renewed.

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ê2023 Statutes of Nevada, Page 2652 (CHAPTER 429, SB 57)ê

Sec. 42. NRS 697.250 is hereby amended to read as follows:

697.250 1. An insurer may terminate [an appointment] a sponsorship at any time. The insurer shall promptly give written notice of termination and the effective date thereof to the Commissioner, on forms furnished by the Commissioner, and to the bail agent if reasonably possible. The Commissioner may require of the insurer reasonable proof that the insurer has also given such a notice to the agent if reasonably possible.

2. Accompanying each notice of termination given to the Commissioner, the insurer shall file with the Commissioner a statement of the cause, if any, for the termination. Any information or documents so disclosed to the Commissioner shall be deemed an absolutely privileged communication, and the information or documents are not admissible as evidence in any action or proceedings unless their use as evidence is permitted by the insurer in writing.

3. A bail agent terminating the [appointment] sponsorship and license as such of a bail solicitor shall give notice of termination in the manner prescribed by subsections 1 and 2. Any information or documents disclosed to the Commissioner shall be deemed an absolutely privileged communication, unless the privilege is waived in writing by the bail agent.

4. No agreement between an insurer and a bail agent or between an employing bail agent and a licensed bail solicitor affects the Commissioner’s termination of the [appointment] sponsorship or license if the termination is requested by the insurer or the employing bail agent, as the case may be.

Sec. 42.5. NRS 697.270 is hereby amended to read as follows:

697.270 A bail agent shall not act as an attorney-in-fact for an insurer on an undertaking unless the bail agent has registered in the office of the sheriff and with the clerk of the district court in which the agent resides [, and the] or, for a bail agent who holds a nonresident license as a bail agent, in which his or her place of business required by NRS 697.280 is located. The bail agent may register in the same manner in any other county. Any bail agent shall file a certified copy of the appointment of the bail agent by power of attorney from each insurer which the bail agent represents as agent with each of such officers. The bail agent shall register and file a certified copy of renewed power of attorney annually on July 1. The clerk of the district court and the sheriff shall not permit the registration of a bail agent unless the agent is licensed by the Commissioner.

Sec. 43. NRS 697.325 is hereby amended to read as follows:

697.325 1. After apprehending a defendant in this state, a bail [agent or bail] enforcement agent shall immediately or without undue delay notify in person or by telephone the local law enforcement agency of the jurisdiction in which the defendant was apprehended of:

(a) The identity of the defendant;

(b) The identity of the bail [agent or bail] enforcement agent; and

2. [Before forcibly entering an inhabited dwelling] A bail enforcement agent may not enter a structure in this State [, a] to apprehend a defendant unless the bail [agent or bail] enforcement agent [shall notify] :

(a) Reasonably believes that the defendant is within the structure; and

(b) Has notified the local law enforcement agency of the jurisdiction in which the [dwelling] structure is located.

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ê2023 Statutes of Nevada, Page 2653 (CHAPTER 429, SB 57)ê

3. A bail [agent or bail] enforcement agent [who violates the provisions of this section is guilty of a misdemeanor.] may not forcibly enter any structure or other private property in this State to apprehend a defendant if:

(a) The bail enforcement agent has not obtained the permission of the owner of the structure or property; or

(b) Forcibly entering the structure or property creates a threat of harm to any person or property.

4. A bail enforcement agent may use physical force only when necessary to defend himself or herself in the process of locating, apprehending or surrendering a defendant. If it is necessary for a bail enforcement agent to use physical force under such circumstances, the bail enforcement agent may use only the amount of physical force that is reasonable under the circumstances.

5. As used in this section, [“inhabited dwelling” means] “structure” includes, without limitation, any [structure,] building, house, room, apartment, tenement, tent, conveyance, vessel, boat, vehicle, house trailer, travel trailer, motor home or railroad car [in which the owner or other lawful occupant resides.] , whether used as a residence, business or for any other purpose.

Sec. 44. NRS 697.330 is hereby amended to read as follows:

697.330 If a bail agent , [or bail solicitor,] without good cause, [surrenders] causes the surrender of a defendant to custody before the time specified in the undertaking of bail or the bail bond for the appearance of the defendant, or before any other occasion where the presence of the defendant in court is lawfully required [, the] :

1. The premium is returnable in full [.] ; and

2. The bail agent is not entitled to collect any fees related to the improper surrender.

Sec. 45. NRS 697.340 is hereby amended to read as follows:

697.340 1. A bail agent, general agent , bail enforcement agent or bail solicitor shall not:

(a) Suggest or advise the employment of or name for employment any particular attorney to represent his or her principal.

(b) Solicit business in or about any place where prisoners are confined or in or about any court.

(c) Pay a fee or rebate or give or promise anything of value to any person in order to secure a settlement, compromise, remission or reduction of the amount of any undertaking or bail bond.

(d) Pay a fee or rebate or give anything of value to an attorney in bail bond matters, except for legal services actually rendered.

(e) Pay a fee or rebate or give or promise anything of value to the principal or anyone in his or her behalf.

(f) Participate in the capacity of an attorney at a trial or hearing of a person on whose bond the bail agent, general agent or bail solicitor is surety, except for the purposes of surrendering the defendant, making motions to set aside orders of bail forfeitures and motions to exonerate bails and protecting his or her financial interest in such a bond.

(g) Allow any person to participate in the functions of a bail enforcement agent unless the person is a licensed bail enforcement agent.

2. The following persons may not be bail agents, bail enforcement agents , general agents or bail solicitors and shall not, directly or indirectly, engage in any act that would require licensing as a bail agent, bail enforcement agent, general agent or bail solicitor or receive any benefits from the execution of any bail bond:

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ê2023 Statutes of Nevada, Page 2654 (CHAPTER 429, SB 57)ê

engage in any act that would require licensing as a bail agent, bail enforcement agent, general agent or bail solicitor or receive any benefits from the execution of any bail bond:

(a) Jailers;

(b) Police officers;

(d) Municipal judges;

(e) Sheriffs, deputy sheriffs, constables and deputy constables;

(f) Any person having the power to arrest or having anything to do with the control of federal, state, county or municipal prisoners; and

(g) Trustees or prisoners incarcerated in any jail, prison or any other place used for the incarceration of persons.

3. A bail agent shall not sign or countersign in blank any bond, or give the power of attorney to, or otherwise authorize, anyone to countersign the name of the bail agent to bonds unless the person so authorized is a licensed bail agent directly employed by the bail agent giving the power of attorney.

4. A bail agent, bail enforcement agent, bail solicitor or general agent shall not advertise or hold himself or herself out to be a surety insurance company.

Sec. 46. NRS 178.526 is hereby amended to read as follows:

178.526 1. For the purpose of surrendering a defendant, a surety [,] or the appointed bail agent of a surety, at any time before the surety is finally discharged, and at any place within this State, may, by:

(a) Written authorization for the arrest of the defendant attached to a copy of the undertaking; or

(b) A written authority endorsed on a certified copy of the undertaking,

Ê cause the defendant to be arrested by a bail [agent or bail] enforcement agent who is licensed pursuant to chapter 697 of NRS.

2. A bail [agent or bail] enforcement agent who arrests a defendant in this State or any other jurisdiction is not acting for or on behalf of this State or any of its political subdivisions.

Sec. 47. NRS 315.725 is hereby amended to read as follows:

315.725 1. Except as otherwise provided in subsection 3, any two or more affordable housing entities may establish and participate in a program to jointly self-insure and jointly purchase insurance or reinsurance for coverage under a plan of:

(a) Casualty insurance, as that term is defined in NRS 681A.020, except for workers’ compensation and employer’s liability coverage;

(b) Marine and transportation insurance, as that term is defined in NRS 681A.050;

(d) Surety insurance, as that term is defined in NRS 681A.070; or

(e) Insurance for any combination of the kinds of insurance listed in paragraphs (a) to (d), inclusive.

2. A program established pursuant to subsection 1 must be administered by an entity which is organized as a nonprofit corporation, limited-liability company, partnership or trust, whether organized under the laws of this State or another state or operating in another state. A majority of the board of directors or other governing body of the entity administering the program must be affiliated with one or more of the affordable housing entities participating in the program.

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3. This section does not apply to an affordable housing entity that individually self-insures or participates in a risk pooling arrangement, including a risk retention group or a risk purchasing group, with respect to the kinds of insurance set forth in subsection 1.

4. Except as otherwise provided in this section or by specific statute:

(a) A program established pursuant to subsection 1 and the entity administering the program:

(1) Shall be deemed not to be providing coverage which constitutes insurance; and

(2) Are not subject to the provisions of title 57 of NRS; and

(b) The entity administering a program established pursuant to subsection 1 shall be deemed not to be engaging in the transaction of insurance.

5. The entity administering a program established pursuant to subsection 1 shall provide any affordable housing entity that seeks to participate in the program with a written notice, in 10-point type or larger, before the affordable housing entity begins participating in the program, that the program is not regulated by the Commissioner and that, if the program or the entity administering the program is found insolvent, a claim under the program is not covered by the Nevada Insurance Guaranty Association Act.

6. The entity administering a program established pursuant to subsection 1 shall submit to the Commissioner:

(a) Within 105 days after the end of the program’s fiscal year:

(1) An annual financial statement for the program audited by a certified public accountant; and

(2) An annual actuarial analysis for the program prepared by an actuary who meets the qualification standards for issuing statements of actuarial opinion in the United States established by the American Academy of Actuaries or its successor organization; and

(b) Within 30 days after:

(1) Filing with any other regulatory body, a claims audit report relating to the entity or the program, a copy of the claims audit report filed with the other regulatory body;

(2) Issuance by any other regulatory body of a report of examination relating to the entity or the program, a copy of the report of examination issued by the other regulatory body;

(3) The effective date of a plan of financing, management and operation for the entity or the program or any material change in such a plan, a copy of the plan or material change; and

(4) The effective date of any material change in the scope of regulation of the entity or the program by any other state in which the entity operates, a statement of the material change.

7. The Commissioner may order an examination of a program established pursuant to subsection 1 or the entity administering the program based upon any credible evidence that the program or entity is in violation of this section or is operating or being operated while in an unsafe financial condition. Such an examination must be administered in accordance with NRS 679B.230 to 679B.300, inclusive, and any regulations adopted pursuant thereto.

8. If the Commissioner determines that a program established pursuant to subsection 1 or the entity administering the program is in violation of this section or is operating or being operated while in an unsafe financial condition, the Commissioner may issue and serve upon the entity administering the program an order to cease and desist from the violation or from administering or in any way operating the program.

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ê2023 Statutes of Nevada, Page 2656 (CHAPTER 429, SB 57)ê

condition, the Commissioner may issue and serve upon the entity administering the program an order to cease and desist from the violation or from administering or in any way operating the program.

9. The Commissioner may hold a hearing, without a request by any party, to determine whether a program established pursuant to subsection 1 or the entity administering the program is in violation of this section or is operating or being operated while in an unsafe financial condition. A person aggrieved by any act [, threatened act] or failure of the Commissioner to act, or by any report, rule, regulation or order of the Commissioner relating to this section, may request a hearing. Any hearing held pursuant to this subsection must be held in accordance with NRS 679B.310 to 679B.370, inclusive, and any regulations adopted pursuant thereto.

10. The provisions of this section must be liberally construed to grant affordable housing entities maximum flexibility to jointly self-insure and jointly purchase insurance or reinsurance to the extent that a program established pursuant to subsection 1 is being administered and otherwise operated in a safe financial condition and in a sound manner.

11. Each entity administering a program established pursuant to subsection 1 shall, on or before January 15 of each odd-numbered year, submit a report to the Director of the Legislative Counsel Bureau for transmittal to the Legislature. The report must include, without limitation, a list of the affordable housing entities participating in the program and any other information the Director deems relevant.

12. As used in this section:

(a) “Affordable housing” means housing projects in which some of the dwelling units may be purchased or rented, with or without government assistance, on a basis that is affordable to persons of low income.

(b) “Affordable housing entity” means:

(1) A housing authority created under the laws of this State or another jurisdiction and any agency or instrumentality of a housing authority, including, but not limited to, a legal entity created to enter into an agreement which complies with NRS 277.055;

(2) A nonprofit corporation organized under the laws of this State or another state that is engaged in providing affordable housing; or

(3) A general or limited partnership or limited-liability company which is engaged in providing affordable housing and which is affiliated with a housing authority described in subparagraph (1) or a nonprofit corporation described in subparagraph (2) if the housing authority or nonprofit corporation:

(I) Has, or has the right to acquire, a financial or ownership interest in the partnership or limited-liability company;

(II) Has the power to direct the management or policies of the partnership or limited-liability company; or

(III) Has entered into a contract to lease, manage or operate the affordable housing owned by the partnership or limited-liability company.

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