[Rev. 2/8/2019 9:30:18 AM]
κ2005 Statutes of Nevada, Page 2059 (CHAPTER 445, SB 390)κ
not charge the additional fee authorized by this subsection for recording a document that is exempt from the provisions of subsection 3 of NRS 247.110.
5. Except as otherwise provided in subsection 6, a county recorder shall not charge or collect any fees for any of the services specified in this section when rendered by him to:
(a) The county in which his office is located.
(b) The State of Nevada or any city or town within the county in which his office is located, if the document being recorded:
(1) Conveys to the State, or to that city or town, an interest in land;
(2) Is a mortgage or deed of trust upon lands within the county which names the State or that city or town as beneficiary;
(3) Imposes a lien in favor of the State or that city or town; or
(4) Is a notice of the pendency of an action by the State or that city or town.
6. A county recorder shall charge and collect the fees specified in this section for copying [of] any document at the request of the State of Nevada, and any city or town within the county. For copying, and for his certificate and seal upon the copy, the county recorder shall charge the regular fee.
7. For the purposes of this section, State of Nevada, county, city and town include any department or agency thereof and any officer thereof in his official capacity.
8. Except as otherwise provided in subsection 2 or 3 or by an ordinance adopted pursuant to the provisions of NRS 244.207, county recorders shall, on or before the fifth working day of each month, account for and pay to the county treasurer all such fees collected during the preceding month.
Sec. 7. NRS 252.160 is hereby amended to read as follows:
252.160 [The]
1. Except as otherwise provided in this section, the district attorney shall, without fees, give his legal opinion to any assessor, collector, auditor or county treasurer, and to all other county, township or district officers within his county, in any matter relating to the duties of their respective offices.
2. The district attorney is not required to give his legal opinion on any question regarding which he requests an opinion from the Attorney General pursuant to section 1 of this act.
Sec. 8. 1. This section and sections 1, 2, 3, 5 and 7 of this act become effective on July 1, 2005.
2. Sections 4 and 6 of this act become effective on January 1, 2006.
________
Assembly Bill No. 175Committee on Health and Human Services
CHAPTER 446
AN ACT making appropriations for mental health services, mental health courts and community triage centers; and providing other matters properly relating thereto.
[Approved: June 15, 2005]
κ2005 Statutes of Nevada, Page 2060 (CHAPTER 446, AB 175)κ
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 Division of Mental Health and Developmental Services of the Department of Human Resources for Southern Nevada Adult Mental Health Services:
For the Fiscal Year 2005-2006..................................................... $552,827
For the Fiscal Year 2006-2007................................................. $1,191,450
2. The money appropriated by subsection 1 must be used to increase over the biennium the number of community residential placements by 90.
3. 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 and must be reverted to the State General Fund on or before September 15, 2006, and September 21, 2007, respectively.
Sec. 2. 1. There is hereby appropriated from the State General Fund to the Division of Mental Health and Developmental Services of the Department of Human Resources for Southern Nevada Adult Mental Health Services the sum of $7,050,938.
2. The money appropriated by subsection 1 must be used by the Division to purchase additional acute psychiatric crisis placements if the capacity of the Division to provide those services is exhausted.
3. The Division shall not expend any money appropriated by subsection 1 until the Division has issued a request for proposals for the selection of one or more appropriate contractors to provide the placements.
4. Any remaining balance of the appropriation made by subsection 1 must not be committed for expenditure after June 30, 2007, and must be reverted to the State General Fund on or before September 21, 2007.
Sec. 3. 1. There is hereby appropriated from the State General Fund to the Division of Mental Health and Developmental Services of the Department of Human Resources for Southern Nevada Adult Mental Health Services to support a Mental Health Court in Clark County:
For the Fiscal Year 2005-2006..................................................... $737,093
For the Fiscal Year 2006-2007................................................. $1,210,757
2. The money appropriated by subsection 1 must be used to support the Mental Health Court in Clark County to provide for additional staff and supported living arrangements for approximately 75 additional persons.
3. 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 and must be reverted to the State General Fund on or before September 15, 2006, and September 21, 2007, respectively.
Sec. 4. 1. There is hereby appropriated from the State General Fund to the Division of Mental Health and Developmental Services of the Department of Human Resources for Northern Nevada Adult Mental Health Services to increase the support for the Mental Health Court in Washoe County:
For the Fiscal Year 2005-2006..................................................... $382,643
For the Fiscal Year 2006-2007..................................................... $816,236
κ2005 Statutes of Nevada, Page 2061 (CHAPTER 446, AB 175)κ
2. The money appropriated by subsection 1 must be used to provide for additional staff required to provide services and supported living arrangements.
3. 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 and must be reverted to the State General Fund on or before September 15, 2006, and September 21, 2007, respectively.
Sec. 5. 1. There is hereby appropriated from the State General Fund to the Division of Mental Health and Developmental Services of the Department of Human Resources for rural clinics to support a Mental Health Court in Carson City:
For the Fiscal Year 2005-2006..................................................... $100,000
For the Fiscal Year 2006-2007..................................................... $100,000
2. The money appropriated by subsection 1 must be used for additional staff and supported living arrangements.
3. 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 and must be reverted to the State General Fund on or before September 15, 2006, and September 21, 2007, respectively.
Sec. 6. 1. There is hereby appropriated from the State General Fund to the Division of Mental Health and Developmental Services of the Department of Human Resources for Southern Nevada Adult Mental Health Services for the support of a community triage center:
For the Fiscal Year 2005-2006..................................................... $900,000
For the Fiscal Year 2006-2007..................................................... $900,000
2. The Division shall not expend any of the money appropriated by subsection 1 until the Division has:
(a) Issued a request for proposals for the selection of one or more appropriate contractors to operate the center.
(b) Received matching amounts of money from both local governments and hospitals. The Division shall not expend more of the money appropriated by subsection 1 than is matched by both local governments and hospitals but the money provided by local governments and hospitals may be combined so that the maximum expended by the Division equals one-half of the combined total of the amount provided by the local governments and hospitals for the community triage center.
3. 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 and must be reverted to the State General Fund on or before September 15, 2006, and September 21, 2007, respectively.
Sec. 7. 1. There is hereby appropriated from the State General Fund to the Division of Mental Health and Developmental Services of the Department of Human Resources for Northern Nevada Adult Mental Health Services for the support of a community triage center:
For the Fiscal Year 2005-2006..................................................... $500,000
For the Fiscal Year 2006-2007..................................................... $500,000
2. The Division shall not expend any of the money appropriated by subsection 1 until the Division has:
κ2005 Statutes of Nevada, Page 2062 (CHAPTER 446, AB 175)κ
(a) Issued a request for proposals for the selection of one or more appropriate contractors to operate the center.
(b) Received matching amounts of money from both local governments and hospitals. The Division shall not expend more of the money appropriated by subsection 1 than is matched by both local governments and hospitals but the money provided by local governments and hospitals may be combined so that the maximum expended by the Division equals one-half of the combined total of the amount provided by the local governments and hospitals for the community triage center.
3. 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 and must be reverted to the State General Fund on or before September 15, 2006, and September 21, 2007, respectively.
Sec. 8. The appropriations made by the provisions of this act are not intended to finance ongoing expenditures of state agencies and the expenditures financed with those appropriations must not be included as base-budget expenditures in the proposed budget for the Executive Branch of State Government for the 2007-2009 biennium.
Sec. 9. 1. This section and sections 2 and 8 of this act become effective upon passage and approval.
2. Sections 1 and 3 to 7, inclusive, of this act become effective on July 1, 2005.
________
Assembly Bill No. 307Assemblymen McClain, Koivisto, Carpenter, Smith, Giunchigliani, Arberry Jr., Atkinson, Buckley, Claborn, Conklin, Denis, Gerhardt, Leslie, Manendo, McCleary, Munford, Oceguera, Parks, Parnell and Pierce
CHAPTER 447
AN ACT relating to motor vehicles; making various changes concerning the registration of motor vehicles; requiring the Department of Motor Vehicles to compile certain statistical information relating to veterans; providing a penalty; and providing other matters properly relating thereto.
[Approved: June 15, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 482.385 is hereby amended to read as follows:
482.385 1. Except as otherwise provided in subsection 4 and NRS 482.390, a nonresident owner of a vehicle of a type subject to registration pursuant to the provisions of this chapter, owning any vehicle which has been registered for the current year in the state, country or other place of which the owner is a resident and which at all times when operated in this State has displayed upon it the registration license plate issued for the vehicle in the place of residence of the owner, may operate or permit the operation of the vehicle within this State without its registration in this State pursuant to the provisions of this chapter and without the payment of any registration fees to this State.
κ2005 Statutes of Nevada, Page 2063 (CHAPTER 447, AB 307)κ
the provisions of this chapter and without the payment of any registration fees to this State.
2. This section does not:
(a) Prohibit the use of manufacturers, distributors or dealers license plates issued by any state or country by any nonresident in the operation of any vehicle on the public highways of this State.
(b) Require registration of vehicles of a type subject to registration pursuant to the provisions of this chapter operated by nonresident common motor carriers of persons or property, contract motor carriers of persons or property, or private motor carriers of property as stated in NRS 482.390.
(c) Require registration of a vehicle operated by a border state employee.
3. When a person, formerly a nonresident, becomes a resident of this State, he shall:
(a) Within [30] 60 days after becoming a resident; or
(b) At the time he obtains his drivers license,
Κ whichever occurs earlier, apply for the registration of each vehicle he owns which is operated in this State. When a person, formerly a nonresident, applies for a drivers license in this State, the Department shall inform the person of the requirements imposed by this subsection and of the penalties that may be imposed for failure to comply with the provisions of this subsection. A citation may be issued pursuant to this subsection only if the violation is discovered when the vehicle is halted or its driver arrested for another alleged violation or offense. A person who violates the provisions of this subsection is guilty of a misdemeanor and shall be punished by a fine of not less than $250 nor more than $500 and such fine is in addition to any fine or penalty imposed for the other alleged violation or offense for which the vehicle was halted or its driver arrested. In addition, the Department shall maintain or cause to be maintained a list or other record of persons who fail to comply with the provisions of this subsection and shall, at least once each month, provide a copy of that list or record to the Department of Public Safety.
4. Any resident operating upon a highway of this State a motor vehicle which is owned by a nonresident and which is furnished to the resident operator for his continuous use within this State, shall cause that vehicle to be registered within [30] 60 days after beginning its operation within this State.
5. A person registering a vehicle pursuant to the provisions of subsection 3, 4 or 6 or pursuant to NRS 482.390:
(a) Must be assessed the registration fees and governmental services tax, as required by the provisions of this chapter and chapter 371 of NRS; and
(b) Must not be allowed credit on those taxes and fees for the unused months of his previous registration.
6. If a vehicle is used in this State for a gainful purpose, the owner shall immediately apply to the Department for registration, except as otherwise provided in NRS 482.390, 482.395 and 706.801 to 706.861, inclusive.
7. An owner registering a vehicle pursuant to the provisions of this section shall surrender the existing nonresident license plates and registration certificates to the Department for cancellation.
8. A vehicle may be cited for a violation of this section regardless of whether it is in operation or is parked on a highway, in a public parking lot or on private property which is open to the public if, after communicating with the owner or operator of the vehicle, the peace officer issuing the citation determines that:
κ2005 Statutes of Nevada, Page 2064 (CHAPTER 447, AB 307)κ
the owner or operator of the vehicle, the peace officer issuing the citation determines that:
(a) The owner of the vehicle is a resident of this State; or
(b) The vehicle is used in this State for a gainful purpose.
Sec. 2. Chapter 483 of NRS is hereby amended by adding thereto a new section to read as follows:
1. When a person applies to the Department for:
(a) An instruction permit or drivers license pursuant to NRS 483.290; or
(b) An identification card pursuant to NRS 483.850,
Κ the Department shall inquire whether the person desires to declare that he is a veteran of the Armed Forces of the United States.
2. If the person desires to declare pursuant to subsection 1 that he is a veteran of the Armed Forces of the United States, he shall provide evidence satisfactory to the Department that he has been honorably discharged from the Armed Forces of the United States.
3. If the person declares pursuant to subsection 1 that he is a veteran of the Armed Forces of the United States, the Department shall count the declaration and maintain it only numerically in a record kept by the Department for that purpose.
4. The Department shall, at least once each quarter:
(a) Compile the aggregate number of persons who have, during the immediately preceding quarter, declared pursuant to subsection 1 that they are veterans of the Armed Forces of the United States; and
(b) Transmit that number to the Office of Veterans Services to be used for statistical purposes.
Sec. 3. This act becomes effective on July 1, 2005.
________
Senate Bill No. 98Committee on Finance
CHAPTER 448
AN ACT relating to cancer; creating the Task Force on Cervical Cancer and providing its duties; revising the provisions relating to per diem allowances and travel expenses for members of the Task Force on Prostate Cancer; making an appropriation; and providing other matters properly relating thereto.
[Approved: June 15, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 457 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 6, inclusive of this act.
Sec. 2. As used in sections 2 to 6, inclusive, of this act, Task Force means the Task Force on Cervical Cancer created by section 3 of this act.
Sec. 3. 1. The Task Force on Cervical Cancer, consisting of 11 members, is hereby created. The Task Force consists of:
(a) The Executive Officer of the Public Employees Benefits Program as ex officio member; and
κ2005 Statutes of Nevada, Page 2065 (CHAPTER 448, SB 98)κ
(b) The following members appointed by the Governor:
(1) Two members who are physicians licensed pursuant to chapter 630 or 633 of NRS;
(2) One member who is an officer or employee of the Nevada System of Higher Education;
(3) One member who is an employee of the Health Division;
(4) One member who is a representative of a womens health organization;
(5) One member who is a representative of the Nevada Cancer Institute;
(6) One member who has had cervical cancer;
(7) One member who is related to a person who has had cervical cancer; and
(8) Two members who are representatives of business.
2. Vacancies of members appointed to the Task Force must be filled in the same manner as original appointments.
3. The Task Force shall annually submit a report concerning its activities and any recommendations for legislation to the Director of the Legislative Counsel Bureau for transmittal to the Legislature.
Sec. 4. 1. The members of the Task Force shall annually elect a member to serve as Chairman of the Task Force.
2. The members of the Task Force shall meet at least four times each year and at the call of the Chairman. The Task Force shall prescribe regulations for its management and government.
3. Six members of the Task Force constitute a quorum, and a quorum may exercise all the powers conferred on the Task Force.
4. After the initial terms, the term of each appointed member of the Task Force is 4 years. The Governor shall not appoint a member to serve more than two terms.
5. The members of the Task Force serve without compensation. While engaged in the business of the Task Force, each member is entitled to receive the per diem allowance and travel expenses provided for state officers and employees generally.
6. The members of the Task Force who are state employees must be relieved from their duties without loss of their regular compensation to perform their duties relating to the Task Force in the most timely manner practicable. The state employees may not be required to make up the time they are absent from work to fulfill their obligations as members of the Task Force or take annual leave or compensatory time for the absence.
Sec. 5. The Task Force may:
1. Compile research and information concerning cervical cancer.
2. Identify and evaluate the methods used by the State and local governments to increase the awareness of the general public concerning the risk, treatment and prevention of cervical cancer.
3. Identify and evaluate methods to improve communication among institutions and other entities in this State that are involved in the research and treatment of cervical cancer.
4. Identify and evaluate methods to increase funding for institutions and other entities in this State that are involved in cancer research.
5. Identify and evaluate methods to increase the number of women in this State who are regularly tested for the presence of cervical cancer.
κ2005 Statutes of Nevada, Page 2066 (CHAPTER 448, SB 98)κ
6. Identify and evaluate methods to increase the awareness and education of the general public concerning cervical cancer.
7. Apply for any available grants and accept any gifts, grants or donations to assist the Task Force in carrying out its duties pursuant to this section.
Sec. 6. The Director of the Department of Human Resources shall provide the personnel, facilities, equipment and supplies required by the Task Force to carry out the provisions of sections 2 to 6, inclusive, of this act.
Sec. 7. NRS 457.320 is hereby amended to read as follows:
457.320 1. The member of the Task Force described in subparagraph (1) of paragraph (a) of subsection 1 of NRS 457.310 shall serve as Chairman during even-numbered years, and the member described in subparagraph (2) of paragraph (a) of subsection 1 of NRS 457.310 shall serve as Chairman during the odd-numbered years.
2. The members of the Task Force shall meet at least four times each year and at the call of the Chairman. The Task Force shall prescribe regulations for its management and government.
3. Six members of the Task Force constitute a quorum, and a quorum may exercise all the powers conferred on the Task Force.
4. After the initial terms, the term of each appointed member of the Task Force is 4 years. The Governor shall not appoint a member to serve more than two terms.
5. The members of the Task Force serve without compensation . [and are not entitled to receive a per diem allowance or travel expenses.] While engaged in the business of the Task Force, each member is entitled to receive the per diem allowance and travel expenses provided for state officers and employees generally.
6. The members of the Task Force who are state employees must be relieved from their duties without loss of their regular compensation to perform their duties relating to the Task Force in the most timely manner practicable. The state employees may not be required to make up the time they are absent from work to fulfill their obligations as members of the Task Force or take annual leave or compensatory time for the absence.
Sec. 8. 1. There is hereby appropriated from the State General Fund to the Department of Administration the sum of $50,000 for allocation to provide necessary assistance to the Task Force on Cervical Cancer.
2. Upon acceptance of the money appropriated by subsection 1, the Task Force on Cervical Cancer agrees to:
(a) Prepare and transmit a report to the Interim Finance Committee on or before December 15, 2006, that describes each expenditure made from the money appropriated by subsection 1 from the date on which the money was received by the Task Force on Cervical Cancer through December 1, 2006; and
(b) Upon request of the Legislative Commission, make available to the Legislative Auditor any books, accounts, claims, reports, vouchers or other records of information, confidential or otherwise and irrespective of their form or location, which the Legislative Auditor deems necessary to conduct any audit of the use of the money appropriated pursuant to subsection 1.
Sec. 9. 1. There is hereby appropriated from the State General Fund to the Department of Administration the sum of $50,000 for allocation to provide necessary assistance to the Task Force on Prostate Cancer.
κ2005 Statutes of Nevada, Page 2067 (CHAPTER 448, SB 98)κ
2. Upon acceptance of the money appropriated by subsection 1, the Task Force on Prostate Cancer agrees to:
(a) Prepare and transmit a report to the Interim Finance Committee on or before December 15, 2006, that describes each expenditure made from the money appropriated by subsection 1 from the date on which the money was received by the Task Force on Prostate Cancer through December 1, 2006; and
(b) Upon request of the Legislative Commission, make available to the Legislative Auditor any books, accounts, claims, reports, vouchers or other records of information, confidential or otherwise and irrespective of their form or location, which the Legislative Auditor deems necessary to conduct any audit of the use of the money appropriated pursuant to subsection 1.
Sec. 10. Any remaining balance of the appropriation made by section 2 or 3 of this act must not be committed for expenditure after June 30, 2007, and must be reverted to the State General Fund on or before September 21, 2007.
Sec. 11. This act becomes effective upon passage and approval.
________
Senate Bill No. 369Committee on Finance
CHAPTER 449
AN ACT relating to the judiciary; revising the provisions governing the retirement benefits of retired justices of the Supreme Court and district judges; requiring the Public Employees Retirement Board to conduct an experience study on the Judicial Retirement System of the employment of certain retired justices and judges; and providing other matters properly related thereto.
[Approved: June 15, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 1A.260 is hereby amended to read as follows:
1A.260 1. No person may become a member of the Judicial Retirement System unless he is a justice of the Supreme Court or a district judge.
2. Except as otherwise provided in NRS 1A.370, persons retired under the provisions of this chapter who are [employed] reemployed as a justice of the Supreme Court or district judge [in any judicial capacity, including, without limitation, employment as a senior justice or senior judge of the Nevada Court System,] are not eligible to become members of the System.
Sec. 2. NRS 1A.360 is hereby amended to read as follows:
1A.360 1. Except as otherwise provided in [subsection 4 and] NRS 1A.370, if a retired justice or judge accepts [employment] reemployment as a justice of the Supreme Court or district judge [in any judicial capacity, including, without limitation, employment as a senior justice or senior judge of the Nevada Court System,] he is disqualified from receiving any allowances under the Judicial Retirement Plan for the duration of his active service.
κ2005 Statutes of Nevada, Page 2068 (CHAPTER 449, SB 369)κ
2. If a retired justice or judge accepts any employment other than that described in subsection 1, the justice or judge is entitled to the same allowances as a retired justice or judge who has no employment.
3. If a retired justice or judge who accepts employment as a justice of the Supreme Court or district judge [in a judicial capacity] pursuant to [this section] subsection 1 elects not to reenroll in the Judicial Retirement Plan pursuant to subsection [1] 2 of NRS 1A.370, the Court Administrator may pay contributions on behalf of the retired justice or judge to a retirement fund which is not a part of the Judicial Retirement Plan in an amount not to exceed the amount of the contributions that the Court Administrator would pay to the System on behalf of a participating justice or judge who is employed in a similar position.
[4. The System may waive for one period of 30 days or less a retired justices or judges disqualification under this section if the Chief Justice of the Supreme Court certifies in writing, in advance, that the retired justice or judge is recalled to meet an emergency and that no other qualified person is immediately available.]
Sec. 3. NRS 1A.370 is hereby amended to read as follows:
1A.370 1. Any retired justice or judge may, pursuant to rules adopted by the Supreme Court, be recalled to active service, be reemployed as a senior justice or senior judge of the Nevada Court System, be issued a commission as a senior justice or senior judge of the Nevada Court System and be compensated for serving as a senior justice or senior judge of the Nevada Court System.
2. A retired justice or judge who accepts [employment] reemployment as a justice of the Supreme Court or district judge [in any judicial capacity, including, without limitation, employment as a senior justice or senior judge of the Nevada Court System, may enroll] may reenroll in the Judicial Retirement Plan as of the effective date of that [employment.] reemployment. As of the effective date of [enrollment:
(a) He] reemployment:
(a) Except as otherwise provided in paragraph (b), he forfeits all retirement allowances for the duration of that employment; and
(b) If he accepts reemployment as a senior justice or senior judge of the Nevada Court System, he does not forfeit any retirement allowances for the duration of that employment.
3. Except as otherwise required as a result of NRS 1A.400 or 1A.410, if the duration of the employment of a retired justice or judge who reenrolls in the Judicial Retirement Plan pursuant to subsection 2 is at least 6 months, he gains additional service credit for that employment and is entitled to have a separate service retirement allowance calculated based on his compensation and service, effective upon the termination of that employment. If the duration of the employment is:
[(1)] (a) Less than 5 years, the additional allowance must be added to his original allowance and must be under the same option and designated the same beneficiary as the original allowance; or
[(2)] (b) Five years or more, the additional allowance may be under any option and designate any beneficiary in accordance with NRS 1A.430.
[2.] 4. The original service retirement allowance of such a retired justice or judge must not be recalculated based upon the additional service , [credit,] nor is he entitled to any of the rights of membership that were not in effect at the time of his original retirement.
κ2005 Statutes of Nevada, Page 2069 (CHAPTER 449, SB 369)κ
effect at the time of his original retirement. The accrual of service credit pursuant to this section is subject to the limits imposed by:
(a) NRS 1A.440; and
(b) Section 415 of the Internal Revenue Code, 26 U.S.C. § 415.
[3.] 5. Except as otherwise required as a result of NRS 1A.400 or 1A.410, upon serving as senior justice or senior judge for a number of working days that is equivalent to 1 year of service, as determined by the Board, such a retired justice or judge [who has been receiving a retirement allowance pursuant to the Judicial Retirement Plan and who is reemployed and is enrolled in the Plan for at least 5 years may have his additional credit for service added to his previous credit for service. This additional credit for service must not apply to more than one period of employment after the original retirement.
4. The survivor of a deceased member of the Judicial Retirement Plan who had previously retired and was reemployed and enrolled in the Plan, who qualifies for benefits pursuant to NRS 1A.340 and 1A.530 to 1A.670, inclusive, is eligible for the benefits based on the service accrued through the second period of employment.] earns an additional year of service credit.
Sec. 4. NRS 1A.460 is hereby amended to read as follows:
1A.460 1. If a member of the Judicial Retirement Plan enters retirement status under one of the optional plans described in NRS 1A.450 and the designated beneficiary predeceases the retired justice or judge, the monthly retirement allowance must be automatically adjusted to the unmodified retirement allowance provided in NRS 1A.440.
2. A retired justice or judge may not change the selected option or designated beneficiary after the effective date of retirement except as otherwise provided in subsection 3 . [of this section and subsection 3 of NRS 1A.370.]
3. A retired justice or judge may cancel his selected option and designation of beneficiary and revert to the unmodified retirement allowance. He shall make this election by written designation, acknowledged and filed with the Board. The written election must be accompanied by a written, notarized acknowledgment of the change by the beneficiary if the beneficiary is the spouse of the retired justice or judge. The election to cancel a selected option and revert to the unmodified allowance does not abrogate any obligation of the retired justice or judge respecting community property.
4. The termination or adjustment of a monthly retirement allowance resulting from the death of a justice or judge or beneficiary must not become effective until the first day of the month immediately following the death of the retired justice or judge or beneficiary.
Sec. 5. The Public Employees Retirement Board shall conduct an experience study on the Judicial Retirement System of the employment of retired justices and judges who participate in the Judicial Retirement System pursuant to NRS 1A.260, 1A.360 and 1A.370 for the period between July 1, 2005, and July 1, 2008. The Public Employees Retirement Board shall submit a report of the study to the Interim Retirement and Benefits Committee of the Legislature on or before December 31, 2008.
Sec. 6. 1. This act becomes effective on July 1, 2005.
2. Sections 1 to 4, inclusive, of this act expire by limitation on June 30, 2009.
________
κ2005 Statutes of Nevada, Page 2070κ
Senate Bill No. 525Committee on Finance
CHAPTER 450
AN ACT relating to public schools; apportioning the State Distributive School Account in the State General Fund for the 2005-2007 biennium; authorizing certain expenditures; making appropriations; and providing other matters properly relating thereto.
[Approved: June 15, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. 1. Except as otherwise provided in subsections 5 and 6, the basic support guarantee for school districts for operating purposes for the 2005-2006 Fiscal Year is an estimated weighted average of $4,486 per pupil.
2. For purposes of establishing the basic support guarantee, the estimated basic support guarantees per pupil for each school district for the 2005-2006 Fiscal Year for operating purposes are:
Basic Estimated
Support Basic
Guarantee Estimated Support
Before Ad Valorem Guarantee
School District Adjustment Adjustment as Adjusted
Carson City $4,419 $718 $5,137
Churchill $5,079 $572 $5,651
Clark $3,343 $960 $4,303
Douglas $3,017 $1,588 $4,605
Elko $5,089 $516 $5,605
Esmeralda $6,450 $3,278 $9,728
Eureka ($3,204) $10,116 $6,912
Humboldt $4,876 $772 $5,648
Lander $3,491 $1,520 $5,011
Lincoln $7,870 $555 $8,425
Lyon $5,168 $631 $5,799
Mineral $5,393 $732 $6,125
Nye $4,929 $882 $5,811
Pershing $5,792 $1,027 $6,819
Storey $5,263 $2,066 $7,329
Washoe $3,505 $900 $4,405
White Pine $6,056 $456 $6,512
3. For purposes of the 2005-2006 Fiscal Year apportionment due August 1, 2005, in accordance with NRS 387.124, the Superintendent of Public Instruction shall determine the amount to be apportioned to each school district based on the Basic Support Guarantee as Adjusted set forth in subsection 2. For purposes of subsequent Fiscal Year 2005-2006 apportionments pursuant to NRS 387.124, the Superintendent of Public Instruction shall recalculate the basic support guarantee for each school district pursuant to subsections 5 and 6 and shall adjust the subsequent Fiscal Year 2005-2006 apportionments accordingly, so that the total apportionments for the 2005-2006 Fiscal Year are based on the basic support guarantee for each school district as recalculated pursuant to subsections 5 and 6.
κ2005 Statutes of Nevada, Page 2071 (CHAPTER 450, SB 525)κ
Year 2005-2006 apportionments accordingly, so that the total apportionments for the 2005-2006 Fiscal Year are based on the basic support guarantee for each school district as recalculated pursuant to subsections 5 and 6.
4. On or before October 1, 2005, the Director of the Department of Taxation shall provide to the Superintendent of Public Instruction the certified total of that portion of the tax bills sent to all owners and mortgage holders pursuant to subsection 3 of NRS 361.480 representing the amount of ad valorem taxes to be received by each school district for Fiscal Year 2005-2006 pursuant to the levy imposed under subsection 1 of NRS 387.195 and credited to the countys school district fund pursuant to subsection 4 of NRS 387.195. In determining the certified total, the Director of the Department of Taxation shall take into account all relevant information including, without limitation, the assessed valuation of each parcel and taxing district and any partial abatements appertaining to the parcels in the district pursuant to Assembly Bill No. 489 of this Legislative Session affecting the amount of ad valorem taxes to be received by each school district.
5. On or before October 15, 2005, the Superintendent of Public Instruction shall recalculate the ad valorem adjustment and the basic support guarantee amount for each school district for the 2005-2006 Fiscal Year based on the certified total of ad valorem taxes provided by the Director of the Department of Taxation pursuant to subsection 4. The basic support guarantee amounts so recalculated for Fiscal Year 2005-2006 shall be used for the apportionments pursuant to NRS 387.124 due on or after November 1, 2005.
6. The ad valorem adjustment used in the recalculation required under subsection 5 shall provide for any shortfall between the June 6, 2005, ad valorem estimate for the 2005-2006 Fiscal Year of $570,732,190 and the certified total provided pursuant to subsection 4.
Sec. 2. 1. Except as otherwise provided in subsections 5 and 6, the basic support guarantee for school districts for operating purposes for the 2006-2007 Fiscal Year is an estimated weighted average of $4,696 per pupil.
2. On or before April 1, 2006, the Director of the Department of Taxation shall provide to the Superintendent of Public Instruction the certified total of the amount of ad valorem taxes to be received by each school district for Fiscal Year 2006-2007 pursuant to the levy imposed under subsection 1 of NRS 387.195 and credited to the countys school district fund pursuant to subsection 4 of NRS 387.195. In determining the certified total, the Director of the Department of Taxation shall take into account all relevant information including, without limitation, the assessed valuation of each parcel and taxing district and any partial abatements appertaining to the parcels in the district pursuant to Assembly Bill No. 489 of this Legislative Session affecting the amount of ad valorem taxes to be received by each school district.
3. Pursuant to NRS 362.115, on or before April 25 of each year, the Department of Taxation shall provide an estimate of the net proceeds of minerals based upon the statements required of mine operators.
4. For purposes of establishing the basic support guarantee, the estimated basic support guarantees per pupil for each school district for the 2006-2007 Fiscal Year for operating purposes are:
κ2005 Statutes of Nevada, Page 2072 (CHAPTER 450, SB 525)κ
Basic Estimated
Support Basic
Guarantee Estimated Support
Before Ad Valorem Guarantee
School District Adjustment Adjustment as Adjusted
Carson City $4,566 $776 $5,342
Churchill $5,226 $639 $5,865
Clark $3,513 $994 $4,507
Douglas $2,997 $1,738 $4,735
Elko $5,364 $516 $5,880
Esmeralda $6,918 $3,337 $10,255
Eureka $881 $8,457 $9,338
Humboldt $5,190 $760 $5,950
Lander $3,585 $1,620 $5,205
Lincoln $8,266 $559 $8,825
Lyon $5,352 $684 $6,036
Mineral $5,069 $1,049 $6,118
Nye $5,229 $883 $6,112
Pershing $6,046 $1,077 $7,123
Storey $5,318 $2,250 $7,568
Washoe $3,728 $909 $4,637
White Pine $6,314 $484 $6,798
5. Upon receipt of the certified total of ad valorem taxes to be received by each school district for Fiscal Year 2006-2007 pursuant to subsection 2, the Superintendent of Public Instruction shall recalculate the ad valorem adjustment and the tentative basic support guarantee for operating purposes for each school district for the 2006-2007 Fiscal Year based on the certified total of ad valorem taxes provided by the Director of the Department of Taxation pursuant to subsection 2. The final basic support guarantee for each school district for the 2006-2007 Fiscal Year is the amount, which is recalculated for the 2006-2007 Fiscal Year pursuant to this section, taking into consideration estimates of net proceeds of minerals received from the Department of Taxation on or before April 25, 2006. The basic support guarantee recalculated pursuant to this section must be calculated before May 31, 2006.
6. The ad valorem adjustment used in the recalculation required under subsection 5 shall provide for any shortfall between the June 6, 2005, ad valorem estimate for the 2006-2007 Fiscal Year of $614,597,171 and the certified total provided pursuant to subsection 2.
Sec. 3. 1. The basic support guarantee for each special education program unit that is maintained and operated for at least 9 months of a school year is $34,433 in the 2005-2006 Fiscal Year and $35,122 in the 2006-2007 Fiscal Year, except as limited by subsection 2.
2. The maximum number of units and amount of basic support for special education program units within each of the school districts, before any reallocation pursuant to NRS 387.1221, for the Fiscal Years 2005-2006 and 2006-2007 are:
κ2005 Statutes of Nevada, Page 2073 (CHAPTER 450, SB 525)κ
Allocation of Special Education Units
2005-2006 2006-2007
DISTRICT Units Amount Units Amount
Carson City 82 $2,823,506 82 $2,880,004
Churchill County 48 $1,652,784 48 $1,685,856
Clark County 1,760 $60,602,080 1,855 $65,151,310
Douglas County 67 $2,307,011 68 $2,388,296
Elko County 81 $2,789,073 81 $2,844,882
Esmeralda County 1 $34,433 1 $35,122
Eureka County 3 $103,299 3 $105,366
Humboldt County 30 $1,032,990 30 $1,053,660
Lander County 13 $447,629 13 $456,586
Lincoln County 17 $585,361 17 $597,074
Lyon County 59 $2,031,547 60 $2,107,320
Mineral County 12 $413,196 12 $421,464
Nye County 54 $1,859,382 56 $1,966,832
Pershing County 15 $516,495 16 $561,952
Storey County 8 $275,464 8 $280,976
Washoe County 530 $18,249,490 548 $19,246,856
White Pine County 15 $516,495 15 $526,830
Subtotal 2,795 $96,240,235 2,913 $102,310,386
Reserved by State
Board of Education 40 $1,377,320 40 $1,404,880
TOTAL 2,835 $97,617,555 2,953 $103,715,266
3. The State Board of Education shall reserve 40 special education program units in each fiscal year of the 2005-2007 biennium, to be allocated to school districts by the State Board of Education to meet additional needs that cannot be met by the allocations provided in subsection 2 to school districts for that fiscal year. In addition, charter schools in this State are authorized to apply directly to the Department of Education for the reserved special education program units, which may be allocated upon approval of the State Board of Education.
4. Notwithstanding the provisions of subsections 2 and 3, the State Board of Education is authorized to spend from the State Distributive School Account up to $203,808 in the Fiscal Year 2005-2006 for 5.92 special education program units and $216,132 in the Fiscal Year 2006-2007 for 6.15 special education program units for instructional programs incorporating educational technology for gifted and talented pupils. Any school district may submit a written application to the Department of Education requesting one or more of the units for gifted and talented pupils. For each fiscal year of the 2005-2007 biennium, the Department will award the units for gifted and talented pupils based on a review of applications received from school districts.
Sec. 4. 1. There is hereby appropriated from the State General Fund to the State Distributive School Account in the State General Fund created pursuant to NRS 387.030:
For the 2005-2006 Fiscal Year............................................. $724,135,261
For the 2006-2007 Fiscal Year............................................. $825,642,294
2. The money appropriated by subsection 1 must be:
(a) Expended in accordance with NRS 353.150 to 353.245, inclusive, concerning the allotment, transfer, work program and budget; and
κ2005 Statutes of Nevada, Page 2074 (CHAPTER 450, SB 525)κ
(b) Work-programmed for the 2 separate Fiscal Years 2005-2006 and 2006-2007, as required by NRS 353.215. Work programs may be revised with the approval of the Governor upon the recommendation of the Chief of the Budget Division of the Department of Administration.
3. Transfers to and allotments from must be allowed and made in accordance with NRS 353.215 to 353.225, inclusive, after separate considerations of the merits of each request.
4. The sums appropriated by subsection 1 are available for either fiscal year and may be transferred from one fiscal year to the other with the approval of the Governor upon the recommendation of the Chief of the Budget Division of the Department of Administration.
5. Any remaining balance of the appropriation made by subsection 1 for the 2005-2006 Fiscal Year must be transferred and added to the money appropriated for the 2006-2007 Fiscal Year and may be expended as that money is expended.
6. Any remaining balance of the appropriation made by subsection 1 for the 2006-2007 Fiscal Year, including any money added thereto pursuant to the provisions of subsections 3 and 5, must not be committed for expenditure after June 30, 2007, and must be reverted to the State General Fund on or before September 21, 2007.
Sec. 5. 1. Expenditure of $132,567,820 by the Department of Education from money in the State Distributive School Account that was not appropriated from the State General Fund is hereby authorized during the fiscal year beginning July 1, 2005.
2. Expenditure of $137,324,114 by the Department of Education from money in the State Distributive School Account that was not appropriated from the State General Fund is hereby authorized during the fiscal year beginning July 1, 2006.
3. For purposes of accounting and reporting, the sums authorized for expenditure by subsections 1 and 2 are considered to be expended before any appropriation is made to the State Distributive School Account from the State General Fund.
4. The money authorized to be expended by subsections 1 and 2 must be expended in accordance with NRS 353.150 to 353.245, inclusive, concerning the allotment, transfer, work program and budget. Transfers to and allotments from must be allowed and made in accordance with NRS 353.215 to 353.225, inclusive, after separate consideration of the merits of each request.
5. The Chief of the Budget Division of the Department of Administration may, with the approval of the Governor, authorize the augmentation of the amounts authorized for expenditure by the Department of Education, in subsections 1 and 2, for the purpose of meeting obligations of the State incurred under chapter 387 of NRS with amounts from any other state agency, from any agency of local government, from any agency of the Federal Government or from any other source that he determines is in excess of the amount taken into consideration by this act. The Chief of the Budget Division of the Department of Administration shall reduce any authorization whenever he determines that money to be received will be less than the amount authorized in subsections 1 and 2.
Sec. 6. During each of the Fiscal Years 2005-2006 and 2006-2007, whenever the State Controller finds that current claims against the State Distributive School Account in the State General Fund exceed the amount available in the Account to pay those claims, he may advance temporarily from the State General Fund to the State Distributive School Account the amount required to pay the claims, but not more than the amount expected to be received in the current fiscal year from any source authorized for the State Distributive School Account.
κ2005 Statutes of Nevada, Page 2075 (CHAPTER 450, SB 525)κ
available in the Account to pay those claims, he may advance temporarily from the State General Fund to the State Distributive School Account the amount required to pay the claims, but not more than the amount expected to be received in the current fiscal year from any source authorized for the State Distributive School Account. No amount may be transferred unless requested by the Chief of the Budget Division of the Department of Administration.
Sec. 7. The Department of Education is hereby authorized to spend from the State Distributive School Account the sums of $18,435,662 for the 2005-2006 Fiscal Year and $21,484,388 for the 2006-2007 Fiscal Year for the support of courses which are approved by the Department of Education as meeting the course of study for an adult standard high school diploma as approved by the State Board of Education. In each fiscal year of the 2005-2007 biennium, the sum authorized must be allocated among the various school districts in accordance with a plan or formula developed by the Department of Education to ensure that the money is distributed equitably and in a manner that permits accounting for the expenditures of school districts.
Sec. 8. The Department of Education is hereby authorized to provide from the State Distributive School Account the sum of $50,000 to each of the 17 school districts in each fiscal year of the 2005-2007 biennium to support special counseling services for elementary school pupils at risk of failure.
Sec. 9. The amounts of the guarantees set forth in sections 1 and 2 of this act may be reduced to effectuate a reserve required pursuant to NRS 353.225.
Sec. 10. 1. The Department of Education shall transfer from the State Distributive School Account to the school districts specified in this section the following sums for Fiscal Years 2005-2006 and 2006-2007:
School District 2005-2006 2006-2007
Clark County School District $5,200,095 $5,304,097
Douglas County School District $1,630,772 $1,659,976
Elko County School District $1,321,114 $1,296,536
Washoe County School District $1,980,440 $2,049,755
TOTAL: $10,132,421 $10,310,364
2. A school district that receives an allocation pursuant to subsection 1 shall serve as fiscal agent for the respective regional training program for the professional development of teachers and administrators. As fiscal agent, each school district is responsible for payment, collection and holding of all money received from this State for the maintenance and support of the regional training program and Nevada Early Literacy Intervention Program established and operated by the applicable governing body.
3. The Elko County School District is authorized to expend up to $55,896 of the appropriation for Fiscal Year 2005-2006 to purchase not more than four vehicles for the operation of the Northeastern Nevada Regional Training Program.
4. Any remaining balance of the transfers made by subsection 1 for the 2005-2006 Fiscal Year must be added to the money received by the school districts for the 2006-2007 Fiscal Year and may be expended as that money is expended. Any remaining balance of the transfers made by subsection 1 for the 2006-2007 Fiscal Year, including any money added from the transfer for the previous fiscal year, must not be committed for expenditure after June 30, 2007, and must be reverted to the State Distributive School Account on or before September 21, 2007.
κ2005 Statutes of Nevada, Page 2076 (CHAPTER 450, SB 525)κ
June 30, 2007, and must be reverted to the State Distributive School Account on or before September 21, 2007.
Sec. 11. 1. The Legislative Bureau of Educational Accountability and Program Evaluation is hereby authorized to receive from the State Distributive School Account to spend for an evaluation of the regional training programs for the professional development of teachers and administrators established pursuant to NRS 391.512:
For the Fiscal Year 2005-2006..................................................... $100,000
For the Fiscal Year 2006-2007..................................................... $100,000
2. Any remaining balance of the sums authorized for expenditure by subsection 1 for the 2005-2006 Fiscal Year must be added to the money authorized for expenditure for the 2006-2007 Fiscal Year and may be expended as that money is expended. Any remaining balance of the sums authorized for expenditure pursuant to subsection 1 for the 2006-2007 Fiscal Year, including any money added from the authorization for the previous fiscal year, must not be committed for expenditure after June 30, 2007, and must be reverted to the State Distributive School Account on or before September 21, 2007.
Sec. 12. 1. The Department of Education shall transfer from the State Distributive School Account to the Statewide Council for the Coordination of the Regional Training Programs created by NRS 391.516 the sum of $100,000 in each Fiscal Year 2005-2006 and 2006-2007 for additional training opportunities for educational administrators in Nevada.
2. The Statewide Council shall use the money:
(a) To disseminate research-based knowledge related to effective educational leadership behaviors and skills.
(b) To develop, support and maintain on-going activities, programs, training and networking opportunities.
(c) For purposes of providing additional training for educational administrators, including, without limitation, to pay:
(1) Travel expenses of administrators who attend the training program;
(2) Travel and per diem expenses for any consultants contracted to provide additional training; and
(3) Any charges to obtain a conference room for the provision of the additional training.
(d) To supplement and not replace the money that the school district or the regional training program would otherwise expend for the training of administrators as described in this section.
3. Any remaining balance of the transfers made by subsection 1 for the 2005-2006 Fiscal Year must be added to the money received by the Statewide Council for the 2006-2007 Fiscal Year and may be expended as that money is expended. Any remaining balance of the transfers made by subsection 1 for the 2006-2007 Fiscal Year, including any money added from the transfer for the previous fiscal year, must not be committed for expenditure after June 30, 2007, and must be reverted to the State Distributive School Account on or before September 21, 2007.
Sec. 13. 1. The Department of Education shall transfer from the State Distributive School Account the following sums for remedial education programs for certain schools:
For the Fiscal Year 2005-2006................................................. $6,818,788
For the Fiscal Year 2006-2007................................................. $7,089,336
κ2005 Statutes of Nevada, Page 2077 (CHAPTER 450, SB 525)κ
2. The sums transferred by subsection 1 are available for either fiscal year. Any remaining balance of those sums must not be committed for expenditure after June 30, 2007, and must be reverted to the State Distributive School Account on or before September 21, 2007.
Sec. 14. 1. The Department of Education shall transfer from the State Distributive School Account the following sums for early childhood education:
For the Fiscal Year 2005-2006................................................. $3,032,172
For the Fiscal Year 2006-2007................................................. $3,152,479
2. The money transferred by subsection 1 must be used by the Department of Education for competitive state grants to school districts and community-based organizations for early childhood education programs.
3. To receive a grant of money pursuant to subsection 2, school districts and community-based organizations must submit a comprehensive plan to the Department of Education that includes, without limitation:
(a) A detailed description of the proposed early childhood education program;
(b) A description of the manner in which the money will be used, which must supplement and not replace the money that would otherwise be expended for early childhood education programs; and
(c) A plan for the longitudinal evaluation of the program to determine the effectiveness of the program on the academic achievement of children who participate in the program.
4. A school district or community-based organization that receives a grant of money shall:
(a) Use the money to initiate or expand prekindergarten educational programs that meet the criteria set forth in the publication of the Department of Education, entitled August 2000 Public Support for Prekindergarten Education for School Readiness in Nevada.
(b) Use the money to supplement and not replace the money that the school district or community-based organization would otherwise expend for early childhood educational programs, as described in this section.
(c) Use the money to pay for the salaries and other items directly related to the instruction of pupils in the classroom.
(d) Submit a longitudinal evaluation of the program in accordance with the plan submitted pursuant to paragraph (c) of subsection 3.
Κ The money must not be used to remodel classrooms or facilities or for playground equipment.
5. The Department of Education shall develop statewide performance and outcome indicators to measure the effectiveness of the early childhood education programs for which grants of money were awarded pursuant to this section. In developing the indicators, the Department shall establish minimum performance levels and increase the expected performance rates on a yearly basis, based upon the performance results of the participants. The indicators must include, without limitation:
(a) Longitudinal measures of the developmental progress of children before and after their completion of the program;
(b) Longitudinal measures of parental involvement in the program before and after completion of the program; and
(c) The percentage of participants who drop out of the program before completion.
κ2005 Statutes of Nevada, Page 2078 (CHAPTER 450, SB 525)κ
6. The Department of Education shall review the evaluations of the early childhood education programs submitted by each school district and community-based organization pursuant to paragraph (d) of subsection 4 and prepare a compilation of the evaluations for inclusion in the report submitted pursuant to subsection 7.
7. The Department of Education shall, on an annual basis, provide a written report to the Governor, Legislative Committee on Education and the Legislative Bureau of Educational Accountability and Program Evaluation regarding the effectiveness of the early childhood programs for which grants of money were received. The report must include, without limitation:
(a) The number of grants awarded;
(b) An identification of each school district and community-based organization that received a grant of money and the amount of each grant awarded;
(c) For each school district and community-based organization that received a grant of money:
(1) The number of children who received services through a program funded by the grant for each year that the program received funding from the State for early childhood programs; and
(2) The average per child expenditure for the program for each year the program received funding from the State for early childhood educational programs;
(d) A compilation of the evaluations reviewed pursuant to subsection 6 that includes, without limitation:
(1) A longitudinal comparison of the data showing the effectiveness of the different programs; and
(2) A description of the programs in this State that are the most effective;
(e) Based upon the performance of children in the program on established performance and outcome indicators, a description of revised performance and outcome indicators, including any revised minimum performance levels and performance rates; and
(f) Any recommendations for legislation.
8. The sums transferred by subsection 1 are available for either fiscal year. Any remaining balance of those sums must not be committed for expenditure after June 30, 2007, and must be reverted to the State Distributive School Account on or before September 21, 2007.
Sec. 15. 1. The Department of Education shall transfer from the State Distributive School Account the following sums to purchase one-fifth of a year of service for certain teachers in accordance with subparagraph (1) of paragraph (d) of subsection 1 of NRS 391.165:
For the Fiscal Year 2005-2006............................................... $16,138,996
For the Fiscal Year 2006-2007............................................... $18,433,608
2. The Department of Education shall distribute the money appropriated by subsection 1 to the school districts to assist the school districts with paying for the retirement credit for certain teachers in accordance with subparagraph (1) of paragraph (d) of subsection 1 of NRS 391.165. The amount of money distributed to each school district must be proportionate to the total costs of paying for the retirement credit pursuant to subparagraph (1) of paragraph (d) of subsection 1 of NRS 391.165 for each fiscal year. If insufficient money is available from the appropriation to pay the total costs necessary to pay the retirement credit for each fiscal year, the school district shall pay the difference to comply with NRS 391.165.
κ2005 Statutes of Nevada, Page 2079 (CHAPTER 450, SB 525)κ
necessary to pay the retirement credit for each fiscal year, the school district shall pay the difference to comply with NRS 391.165.
3. The sums transferred by subsection 1 are available for either fiscal year. Any remaining balance of those sums must not be committed for expenditure after June 30, 2007, and must be reverted to the State Distributive School Account on or before September 21, 2007.
Sec. 16. 1. The Department of Education shall transfer from the State Distributive School Account the following sums to purchase one-fifth of a year of service for certain licensed educational personnel in accordance with subparagraphs (2) and (3) of paragraph (d) of subsection 1 of NRS 391.165:
For the Fiscal Year 2005-2006................................................. $9,369,907
For the Fiscal Year 2006-2007................................................. $9,763,443
2. The Department of Education shall distribute the money appropriated by subsection 1 to the school districts to assist the school districts with paying for the retirement credit for certain licensed educational personnel in accordance with subparagraphs (2) and (3) of paragraph (d) of subsection 1 of NRS 391.165. The amount of money distributed to each school district must be proportionate to the total costs of paying for the retirement credit pursuant to subparagraphs (2) and (3) of paragraph (d) of subsection 1 of NRS 391.165 for each fiscal year. If insufficient money is available to pay the total costs necessary to pay the retirement credit for each fiscal year, the school district shall pay the difference to comply with NRS 391.165.
3. The sums transferred by subsection 1 are available for either fiscal year. Any remaining balance of those sums must not be committed for expenditure after June 30, 2007, and must be reverted to the State Distributive School Account on or before September 21, 2007.
Sec. 17. Of the amounts included in the basic support guarantee amounts enumerated in sections 1 and 2 of this act, $88,274,315 for Fiscal Year 2005-2006 and $93,423,414 for Fiscal Year 2006-2007 must be expended for the purchase of textbooks, instructional supplies and instructional hardware as prescribed in section NRS 387.206.
Sec. 18. The sums appropriated or authorized in sections 10 to 16, inclusive, of this act:
1. Must be accounted for separately from any other money received by the school districts of this State and used only for the purposes specified in the applicable section of this act.
2. May not be used to settle or arbitrate disputes between a recognized organization representing employees of a school district and the school district, or to settle any negotiations.
3. May not be used to adjust the district-wide schedules of salaries and benefits of the employees of a school district.
Sec. 19. 1. The Department of Education shall transfer from the State Distributive School Account the following sums for special transportation costs to school districts:
For the 2005-2006 school year...................................................... $81,663
For the 2006-2007 school year...................................................... $81,663
2. Pursuant to NRS 392.015, the Department of Education shall use the money transferred in subsection 1 to reimburse school districts for the additional costs of transportation for any pupil to a school outside the school district in which his residence is located.
κ2005 Statutes of Nevada, Page 2080 (CHAPTER 450, SB 525)κ
Sec. 20. NRS 387.1235 is hereby amended to read as follows:
387.1235 1. Except as otherwise provided in subsection 2, local funds available are the sum of:
(a) The amount [computed by multiplying 0.0025 times the assessed valuation] of one-third of the tax collected pursuant to subsection 1 of NRS 387.195 for the school district as certified by the Department of Taxation for the concurrent school year; and
(b) The proceeds of the local school support tax imposed by chapter 374 of NRS, excluding any amounts required to be remitted pursuant to NRS 360.850. The Department of Taxation shall furnish an estimate of these proceeds to the Superintendent of Public Instruction on or before July 15 for the fiscal year then begun, and the Superintendent shall adjust the final apportionment of the current school year to reflect any difference between the estimate and actual receipts.
2. The amount computed under subsection 1 that is attributable to any assessed valuation attributable to the net proceeds of minerals must be held in reserve and may not be considered as local funds available until the succeeding fiscal year.
Sec. 21. 1. The Department of Education shall transfer from the State Distributive School Account the following sums for providing health insurance subsidies to retired school district employees pursuant to paragraph (b) of subsection 4 of NRS 287.023.
For the Fiscal Year 2005-2006................................................. $8,391,659
For the Fiscal Year 2006-2007................................................. $9,171,421
2. The Department of Education shall, from the money transferred pursuant to subsection 1, make an allocation to each school district in the proportion of its obligation to the total obligation for all school districts.
Sec. 22. 1. There is hereby appropriated from the State General Fund to the Interim Finance Committee the sum of $4,000,000 to provide allocations to school districts that incur unexpected expenses related to providing health insurance for their employees during the 2005-2007 biennium. No additional appropriation will be made for this purpose. The money appropriated pursuant to this subsection must not be used to negotiate the salaries of educational personnel.
2. The State Board of Examiners shall adopt policies, procedures and criteria for the review of requests for allocations pursuant to this section. Upon the adoption of such policies, procedures and criteria, the State Board of Examiners shall transmit a copy of the policies, procedures and criteria to the Interim Finance Committee for approval. Upon approval of the policies, procedures and criteria, the Interim Finance Committee shall transmit a copy of the policies, procedures and criteria to the Department of Education. The policies, procedures and criteria adopted by the State Board of Examiners may not be used until they are approved by the Interim Finance Committee.
3. If a school district finds that it has unexpected expenses related to providing health insurance to its employees during the 2005-2007 biennium, the school district may submit a request to the Department of Education for an allocation from the appropriation made by subsection 1.
4. The Department of Education, the Budget Division of the Department of Administration and the Fiscal Analysis Division of the Legislative Counsel Bureau shall jointly review a request submitted pursuant to subsection 3, using the policies, procedures and criteria approved by the Interim Finance Committee pursuant to subsection 2. Upon completion of the review, a recommendation for or against an allocation to the requesting school district must be submitted by the Department of Education to the State Board of Examiners.
κ2005 Statutes of Nevada, Page 2081 (CHAPTER 450, SB 525)κ
review, a recommendation for or against an allocation to the requesting school district must be submitted by the Department of Education to the State Board of Examiners.
5. The State Board of Examiners shall consider each request and recommend the amount of the allocation, if any, to the Interim Finance Committee.
6. The Interim Finance Committee is not required to approve the entire amount of an allocation recommended pursuant to subsection 5 or to allocate the entire amount appropriated by subsection 1.
7. Any remaining balance of the sum appropriated by subsection 1 must not be allocated by the Interim Finance Committee after June 30, 2007, and must be reverted to the State General Fund on or before September 21, 2007.
Sec. 23. Each school district shall expend the revenue made available through this act, as well as other revenue from state, local and federal sources, in a manner that is consistent with NRS 288.150 and that is designed to attain the goals of the Legislature regarding educational reform in this State, especially with regard to assisting pupils in need of remediation and pupils who are not proficient in the English language. Materials and supplies for classrooms are subject to negotiation by employers with recognized employee organizations.
Sec. 24. This act becomes effective on July 1, 2005.
________
Senate Bill No. 523Committee on Finance
CHAPTER 451
AN ACT relating to the taxation of business; temporarily reducing the rate of the tax on certain businesses; and providing other matters properly relating thereto.
[Approved: June 15, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 363B.110 is hereby amended to read as follows:
363B.110 1. There is hereby imposed an excise tax on each employer at the rate of [0.65] 0.63 percent of the wages, as defined in NRS 612.190, paid by the employer during a calendar quarter with respect to employment.
2. The tax imposed by this section must not be deducted, in whole or in part, from any wages of persons in the employment of the employer.
3. Each employer shall, on or before the last day of the month immediately following each calendar quarter for which the employer is required to pay a contribution pursuant to NRS 612.535:
(a) File with the Department:
(1) A return on a form prescribed by the Department; and
(2) A copy of any report required by the Employment Security Division of the Department of Employment, Training and Rehabilitation for determining the amount of the contribution required pursuant to NRS 612.535 for any wages paid by the employer during that calendar quarter; and
κ2005 Statutes of Nevada, Page 2082 (CHAPTER 451, SB 523)κ
(b) Remit to the Department any tax due pursuant to this chapter for that calendar quarter.
4. Except as otherwise provided in subsection 5, an employer may deduct from the total amount of wages reported and upon which the excise tax is imposed pursuant to this section any amount authorized pursuant to this section that is paid by the employer for health insurance or a health benefit plan for its employees in the calendar quarter for which the tax is paid. The amounts for which the deduction is allowed include:
(a) For an employer providing a program of self-insurance for its employees, all amounts paid during the calendar quarter for claims, direct administrative services costs, including such services provided by the employer, and any premiums paid for individual or aggregate stop-loss insurance coverage. An employer is not authorized to deduct the costs of a program of self-insurance unless the program is a qualified employee welfare benefit plan pursuant to the Employee Retirement Income Security Act of 1974, 29 U.S.C. §§ 1001 et seq.
(b) The premiums for a policy of health insurance or reinsurance for a health benefit plan for its employees.
(c) Any amounts paid by an employer to a Taft-Hartley trust formed pursuant to 29 U.S.C. § 186(c)(5) for participation in an employee welfare benefit plan.
(d) Such other similar payments for health care or insurance for health care for employees as are authorized by the Department.
5. An employer may not deduct from the wages upon which the excise tax is imposed pursuant to this section:
(a) Amounts paid for health care or premiums paid for insurance for an industrial injury or occupational disease for which coverage is required pursuant to chapters 616A to 616D, inclusive, or 617 of NRS; or
(b) Any payments made by employees for health care or health insurance or amounts deducted from the wages of employees for such care or insurance.
6. An employer claiming the deduction allowed pursuant to subsection 4 shall submit with the return filed pursuant to subsection 3 proof of the amount paid in the calendar quarter that qualifies for the deduction. If the amount of the deduction exceeds the amount of reported wages, the excess amount may be carried forward to the following calendar quarter until the deduction is exhausted.
7. As used in this section, employee welfare benefit plan has the meaning ascribed to it in 29 U.S.C. § 1002.
Sec. 2. The amendatory provisions of section 1 of this act do not apply to any taxes due for any period ending on or before June 30, 2005.
Sec. 3. This act becomes effective on July 1, 2005, and expires by limitation on June 30, 2007.
________
Senate Bill No. 95Committee on Finance
CHAPTER 452
AN ACT relating to state financial administration; revising certain provisions relating to the Fund to Stabilize the Operation of the State Government; repealing certain statutory provisions relating to excess revenue collected by the State during a fiscal year; making appropriations; and providing other matters properly relating thereto.
κ2005 Statutes of Nevada, Page 2083 (CHAPTER 452, SB 95)κ
revenue collected by the State during a fiscal year; making appropriations; and providing other matters properly relating thereto.
[Approved: June 17, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 353.2735 is hereby amended to read as follows:
353.2735 1. The Disaster Relief Account is hereby created as a special account in the Fund to Stabilize the Operation of the State Government. The Interim Finance Committee shall administer the Account.
2. The Division may accept grants, gifts or donations for deposit in the Account. Except as otherwise provided in subsection 3, money received from:
(a) A direct legislative appropriation to the Account;
(b) A transfer [of] from the State General Fund in an amount equal to not more than 10 percent of the aggregate balance in the Fund to Stabilize the Operation of the State Government , excluding the aggregate balance in the Disaster Relief Account and the Emergency Assistance Subaccount, made pursuant to NRS 353.288; and
(c) A grant, gift or donation to the Account,
Κ must be deposited in the Account. Except as otherwise provided in NRS 414.135, the interest and income earned on the money in the Account must, after deducting any applicable charges, be credited to the Account.
3. If, at the end of each quarter of a fiscal year, the balance in the Account exceeds 0.75 percent of the total amount of all appropriations from the State General Fund for the operation of all departments, institutions and agencies of State Government and authorized expenditures from the State General Fund for the regulation of gaming for that fiscal year, the State Controller shall not, until the balance in the Account is 0.75 percent or less of that amount, transfer any money in the Fund to Stabilize the Operation of the State Government from the State General Fund to the Account pursuant to the provisions of NRS 353.288.
4. Money in the Account may be distributed through grants and loans to state agencies and local governments as provided in NRS 353.2705 to 353.2771, inclusive. Except as otherwise provided in NRS 353.276, such grants will be disbursed on the basis of reimbursement of costs authorized pursuant to NRS 353.274 and 353.2745.
5. If the Governor declares a disaster, the State Board of Examiners shall estimate:
(a) The money in the Account that is available for grants and loans for the disaster pursuant to the provisions of NRS 353.2705 to 353.2771, inclusive; and
(b) The anticipated amount of those grants and loans for the disaster.
Κ Except as otherwise provided in this subsection, if the anticipated amount determined pursuant to paragraph (b) exceeds the available money in the Account for such grants and loans, all grants and loans from the Account for the disaster must be reduced in the same proportion that the anticipated amount of the grants and loans exceeds the money in the Account that is available for grants and loans for the disaster. If the reduction of a grant or loan from the Account would result in a reduction in the amount of money that may be received by a state agency or local government from the Federal Government, the reduction in the grant or loan must not be made.
κ2005 Statutes of Nevada, Page 2084 (CHAPTER 452, SB 95)κ
that may be received by a state agency or local government from the Federal Government, the reduction in the grant or loan must not be made.
Sec. 2. NRS 353.288 is hereby amended to read as follows:
353.288 1. The Fund to Stabilize the Operation of the State Government is hereby created as a special revenue fund. Except as otherwise provided in subsections 2 and 3, each year after the close of the fiscal year and before the issuance of the State Controllers annual report, the State Controller shall deposit to the credit of the Fund 40 percent of the unrestricted balance of the State General Fund, as of the close of the fiscal year, which remains after subtracting an amount equal to [5] 10 percent of all appropriations made from the State General Fund during that year for the operation of all departments, institutions and agencies of State Government and for the funding of schools.
2. The balance in the Fund , excluding the aggregate balance in the Disaster Relief Account and the Emergency Assistance Subaccount, must not exceed 15 percent of the total of all appropriations from the State General Fund for the operation of all departments, institutions and agencies of the State Government and for the funding of schools and authorized expenditures from the State General Fund for the regulation of gaming for the fiscal year in which that revenue will be deposited in the Fund.
3. Except as otherwise provided in this subsection and NRS 353.2735, beginning with the fiscal year that begins on July 1, 2003, the State Controller shall, at the end of each quarter of a fiscal year, transfer from the State General Fund to the Disaster Relief Account created pursuant to NRS 353.2735 an amount equal to not more than 10 percent of the aggregate balance in the Fund to Stabilize the Operation of the State Government during the previous quarter [.] , excluding the aggregate balance in the Disaster Relief Account and the Emergency Assistance Subaccount created pursuant to NRS 414.135. The State Controller shall not transfer more than $500,000 for any quarter pursuant to this subsection.
4. Money from the Fund to Stabilize the Operation of the State Government may be appropriated only:
(a) If the total actual revenue of the State falls short by 5 percent or more of the total anticipated revenue for the biennium in which the appropriation is made; or
(b) If the Legislature and the Governor declare that a fiscal emergency exists.
Sec. 3. 1. Section 20 of Chapter 538, Statutes of Nevada 1997, at page 2544, is hereby repealed.
2. Sections 188 and 188.3 of Chapter 5, Statutes of Nevada 2003, 20th Special Session, at pages 236 and 237, respectively, are hereby repealed.
Sec. 4. There is hereby appropriated for Fiscal Year 2005-2006 from the State General Fund to the Fund to Stabilize the Operation of the State Government created by NRS 353.288 the sum of $37,000,000.
Sec. 5. There is hereby appropriated for Fiscal Year 2006-2007 from the State General Fund to the Fund to Stabilize the Operation of the State Government created by NRS 353.288 the sum of $34,000,000.
Sec. 6. 1. This section and subsection 1 of section 3 of this act become effective upon passage and approval.
2. Subsection 2 of section 3 of this act becomes effective upon passage and approval and applies retroactively to January 1, 2005.
κ2005 Statutes of Nevada, Page 2085 (CHAPTER 452, SB 95)κ
3. Sections 1, 2 and 4 of this act become effective on July 1, 2005.
4. Section 5 of this act becomes effective on July 1, 2006.
________
Senate Bill No. 101Committee on Finance
CHAPTER 453
AN ACT relating to the Legislative Counsel Bureau; making an appropriation to the Legislative Counsel Bureau for the cost of reproducing out-of-print publications, informational technology upgrades, building improvements, an emergency generator for the State Printing Office and a portion of the payments for the lease-purchase of a warehouse connected to the State Printing Office, the resurfacing of the exterior of the State Printing Office and a parking lot; authorizing the Legislative Counsel Bureau to enter into a lease-purchase agreement; providing the requirements for such a lease-purchase agreement; and providing other matters properly relating thereto.
[Approved: June 17, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. There is hereby appropriated from the State General Fund to the Legislative Counsel Bureau the sum of $1,772,861 to be allocated as follows:
For the cost of reproducing out-of-print publications.............. $130,842
For informational technology upgrades.................................. $1,091,235
For building improvements and an emergency generator....... $335,000
For a portion of the payments for the lease-purchase of a warehouse connected to the State Printing Office, resurfacing of the exterior of the State Printing Office and a parking lot:
For the Fiscal Year 2005-2006.............................................. $107,892
For the Fiscal Year 2006-2007.............................................. $107,892
Sec. 2. Any remaining balance of the appropriation made by section 1 of this act must not be committed for expenditure after June 30, 2007, and must be reverted to the State General Fund on or before September 21, 2007.
Sec. 3. The Legislative Counsel Bureau may enter into a lease-purchase agreement for the construction of a warehouse to be connected to the State Printing Office, the resurfacing of the exterior of the State Printing Office and the construction of a parking lot, to the extent that money, including the money appropriated by section 1 of this act, is available to make any payments required during the 2005-2007 biennium for such a lease-purchase agreement. The provisions of NRS 353.500 to 353.630, inclusive, are hereby made applicable to any lease-purchase agreement entered into pursuant to this act, with the Director of the Legislative Counsel Bureau being substituted for the Executive Branch officers in all provisions imposing powers and duties relating to the agreement.
κ2005 Statutes of Nevada, Page 2086 (CHAPTER 453, SB 101)κ
Sec. 4. The Legislative Counsel Bureau shall solicit bids as appropriate for all contracts for construction that are funded in whole or in part by money appropriated by this act and shall comply with the provisions of NRS 338.010 to 338.090, inclusive, for all construction work performed under such contracts. All contracts entered into to carry out the provisions of this act must include a provision that prevailing wages must be paid on all work performed under the contracts in compliance with the provisions of NRS 338.010 to 338.090, inclusive. The remaining provisions of chapter 338 of NRS do not apply to such contracts.
Sec. 5. This act becomes effective upon passage and approval.
________
Senate Bill No. 314Senators Titus and Beers
CHAPTER 454
AN ACT transferring money from the Fund for the Promotion of Tourism to certain state and local governmental entities for various cultural, historical and tourist-related activities; and providing other matters properly relating thereto.
[Approved: June 17, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. 1. The Commission on Tourism shall, as soon as practicable after July 1, 2005, without depleting the funds necessary for day-to-day operations, transfer $600,000 from the proceeds from the taxes imposed on the revenue from the rental of transient lodging which have been credited to the Fund for the Promotion of Tourism, created by NRS 231.250, to the Department of Cultural Affairs for the restoration and preservation of the exterior of the Lear Theater in Reno, Nevada.
2. The Department of Cultural Affairs shall prepare and transmit a report to the Interim Finance Committee on or before December 15, 2006, that describes each expenditure made from the money that was received by the Department of Cultural Affairs through December 1, 2006.
3. Any remaining balance of the sum transferred pursuant to subsection 1 must not be committed for expenditure after June 30, 2007, and must be reverted to the Fund for the Promotion of Tourism on or before September 21, 2007.
Sec. 2. 1. The Commission on Tourism shall, as soon as practicable after July 1, 2005, and July 1, 2006, respectively, without depleting the funds necessary for day-to-day operations, transfer the following amounts from the proceeds from the taxes imposed on the revenue from the rental of transient lodging which have been credited to the Fund for the Promotion of Tourism, created by NRS 231.250, to the Division of State Parks of the State Department of Conservation and Natural Resources for expenses relating to the operation and maintenance of the Elgin Schoolhouse as a historic site for visitation by the public:
For the Fiscal Year 2005-2006....................................................... $24,304
For the Fiscal Year 2006-2007....................................................... $17,469
κ2005 Statutes of Nevada, Page 2087 (CHAPTER 454, SB 314)κ
2. Any balance of the sums transferred pursuant to 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 and must be reverted to the Fund for the Promotion of Tourism on or before September 15, 2006, and September 21, 2007, respectively.
Sec. 3. 1. The Commission on Tourism shall, as soon as practicable after July 1, 2005, and July 1, 2006, respectively, without depleting the funds necessary for day-to-day operations, transfer the following amounts from the proceeds from the taxes imposed on the revenue from the rental of transient lodging which have been credited to the Fund for the Promotion of Tourism, created by NRS 231.250, to the Western Folklife Center for support of the National Cowboy Poetry Gathering in Elko, Nevada:
For the Fiscal Year 2005-2006..................................................... $100,000
For the Fiscal Year 2006-2007..................................................... $100,000
2. Upon acceptance of the money transferred pursuant to subsection 1, the Western Folklife Center shall:
(a) Prepare and transmit a report to the Interim Finance Committee on or before December 15, 2006, that describes each expenditure made from the money transferred pursuant to subsection 1 from the date on which the money was received by the Western Folklife Center through December 1, 2006; and
(b) Upon request of the Legislative Commission, make available to the Legislative Auditor any of the books, accounts, claims, reports, vouchers or other records of information, confidential or otherwise, of the Western Folklife Center regardless of their form or location, that the Legislative Auditor deems necessary to conduct an audit of the use of the money transferred pursuant to subsection 1.
3. Any remaining balance of the sums transferred pursuant to 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 and must be reverted to the Fund for the Promotion of Tourism on or before September 15, 2006, and September 21, 2007, respectively.
Sec. 4. 1. The Commission on Tourism shall, as soon as practicable after July 1, 2005, and July 1, 2006, respectively, without depleting the funds necessary for day-to-day operations, transfer the following amounts from the proceeds from the taxes imposed on the revenue from the rental of transient lodging which have been credited to the Fund for the Promotion of Tourism, created by NRS 231.250, to the Atomic Testing Museum in Las Vegas for an educational program at the Museum:
For the Fiscal Year 2005-2006..................................................... $125,000
For the Fiscal Year 2006-2007....................................................... $95,000
2. The money transferred pursuant to subsection 1 must be used by the Atomic Testing Museum to:
(a) Provide instructional materials in classrooms;
(b) Allow access to the Internet for teachers and pupils; and
(c) Subsidize admission and transportation costs for schools and waive entirely admission for pupils who attend designated at-risk schools.
3. Upon acceptance of the money transferred pursuant to subsection 1, the Atomic Testing Museum shall:
(a) Prepare and transmit a report to the Interim Finance Committee on or before December 15, 2006, that describes each expenditure made from the money transferred pursuant to subsection 1 from the date on which the money was received by the Atomic Testing Museum through December 1, 2006; and
κ2005 Statutes of Nevada, Page 2088 (CHAPTER 454, SB 314)κ
money was received by the Atomic Testing Museum through December 1, 2006; and
(b) Upon request of the Legislative Commission, make available to the Legislative Auditor any of the books, accounts, claims, reports, vouchers or other records of information, confidential or otherwise, of the Atomic Testing Museum regardless of their form or location, that the Legislative Auditor deems necessary to conduct an audit of the use of the money transferred pursuant to subsection 1.
4. Any balance of the sums transferred pursuant to 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 and must be reverted to the Fund for the Promotion of Tourism on or before September 15, 2006, and September 21, 2007, respectively.
Sec. 5. 1. The Commission on Tourism shall, as soon as practicable after July 1, 2005, and July 1, 2006, respectively, without depleting the funds necessary for day-to-day operations, transfer the following amounts from the proceeds from the taxes imposed on the revenue from the rental of transient lodging which have been credited to the Fund for the Promotion of Tourism, created by NRS 231.250, to the Interim Finance Committee:
For the Fiscal Year 2005-2006..................................................... $600,000
For the Fiscal Year 2006-2007....................................................... $50,000
2. The money transferred pursuant to subsection 1 shall be allocated to the Reno-Sparks Convention and Visitors Authority to implement the Truckee River Recreational Master Plan as adopted by the City of Reno, the City of Sparks and Washoe County through a public review process. The money must be used to plan, obtain permits for, design and construct not more than four projects along the Truckee River that would enhance the recreational enjoyment, aquatic habitat and water quality of the Truckee River. The money must be expended on the following projects but is not limited to Rock Park, Pioneer Diversion Dam, Ambrose Park and Idlewild Park.
3. The Interim Finance Committee shall allocate the money transferred pursuant to subsection 1 upon notification that the City of Reno, the City of Sparks and Washoe County have committed to expend, in total, an equal amount of money on Truckee River improvement related projects. For the purpose of this section, Truckee River improvement related projects include any public project to improve the Truckee River for watershed protection, watershed restoration, recreation or flood control.
4. Upon acceptance of the money allocated pursuant to subsection 2, the Reno-Sparks Convention and Visitors Authority shall prepare and transmit a report to the Interim Finance Committee on or before December 15, 2006, that describes each expenditure made from the money allocated pursuant to subsection 2 from the date on which the money was received by the Reno-Sparks Convention and Visitors Authority through December 1, 2006.
5. The Reno-Sparks Convention and Visitors Authority shall not assess an administrative fee or fine upon any local governing bodies relating to compliance with the provisions of subsections 3 and 4.
6. A public review and approval process, as determined by the City of Reno, the City of Sparks and Washoe County, must be completed before the commencement of construction of any project that uses money allocated pursuant to this section. Project design, construction documents and funding processes related to any such project must be approved by each local governing body having jurisdiction over the project.
κ2005 Statutes of Nevada, Page 2089 (CHAPTER 454, SB 314)κ
processes related to any such project must be approved by each local governing body having jurisdiction over the project. Each such project must conform to the parameters of the Truckee River Flood Control Project and the Truckee River Operating Agreement.
7. Any remaining balance of the sums transferred pursuant to subsection 1 must not be committed for expenditure after June 30, 2007, and must be reverted to the Fund for the Promotion of Tourism on or before September 21, 2007.
Sec. 6. 1. The Commission on Tourism shall, as soon as practicable after July 1, 2005, and July 1, 2006, respectively, without depleting the funds necessary for day-to-day operations, transfer the following amounts from the proceeds from the taxes imposed on the revenue from the rental of transient lodging which have been credited to the Fund for the Promotion of Tourism, created by NRS 231.250, to the University of Nevada Reno Fleischmann Planetarium and Science Center in Reno, Nevada, for costs of equipment:
For the Fiscal Year 2005-2006....................................................... $11,500
For the Fiscal Year 2006-2007....................................................... $14,500
2. Upon acceptance of the money transferred pursuant to subsection 1, the Fleischmann Planetarium and Science Center shall:
(a) Prepare and transmit a report to the Interim Finance Committee on or before December 15, 2006, that describes each expenditure made from the money transferred pursuant to subsection 1 from the date on which the money was received by the Fleischmann Planetarium and Science Center through December 1, 2006; and
(b) Upon request of the Legislative Commission, make available to the Legislative Auditor any of the books, accounts, claims, reports, vouchers or other records of information, confidential or otherwise, of the Fleischmann Planetarium and Science Center regardless of their form or location, that the Legislative Auditor deems necessary to conduct an audit of the use of the money transferred pursuant to subsection 1.
3. Any remaining balance of the sums transferred pursuant to subsection 1 must not be committed for expenditure after June 30, 2007, and must be reverted to the Fund for the Promotion of Tourism on or before September 21, 2007.
Sec. 7. 1. The Commission on Tourism shall, as soon as practicable after July 1, 2006, without depleting the funds necessary for day-to-day operations, transfer $300,000 from the proceeds from the taxes imposed on the revenue from the rental of transient lodging which have been credited to the Fund for the Promotion of Tourism, created by NRS 231.250, to the Division of State Parks of the State Department of Conservation and Natural Resources to provide for and display historical interpretive signs for the California Trail Wayside Sites to be located in eight northern Nevada counties of this State.
2. Any remaining balance of the sum transferred pursuant to subsection 1 must not be committed for expenditure after June 30, 2009, and must be reverted to the Fund for the Promotion of Tourism on or before September 18, 2009.
Sec. 8. 1. This section and sections 1 to 6, inclusive, of this act become effective on July 1, 2005.
2. Section 7 of this act becomes effective on July 1, 2006.
________
κ2005 Statutes of Nevada, Page 2090κ
Assembly Bill No. 42Committee on Health and Human Services
CHAPTER 455
AN ACT relating to children; making various changes relating to child care facilities that are operated by businesses as an auxiliary service provided for their customers; requiring an agency which provides child welfare services to train certain employees concerning the legal rights of persons who are responsible for a childs welfare; revising the provisions concerning the pamphlet developed and distributed to persons responsible for a childs welfare; requiring an agency which provides child welfare services to inform persons who are responsible for a childs welfare and who are the subject of an investigation of alleged abuse or neglect of a child of the allegations against them and their legal rights at the time of initial contact by the agency; establishing a presumption that it is in the best interests of a child who is in need of protection to be placed together with his siblings; authorizing a court to join a governmental entity which fails to provide certain legally required care, treatment or services to a child who is in need of protection as a party in a proceeding concerning the protection of the child to enforce such legal duties under certain circumstances; requiring an agency which provides child welfare services to include with its report to the court concerning the placement of a child in need of protection certain information concerning the placement of the child in relation to his siblings; and providing other matters properly relating thereto.
[Approved: June 17, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 432A of NRS is hereby amended by adding thereto the provisions set forth as sections 2, 3 and 4 of this act.
Sec. 2. Accommodation facility means a child care facility which is operated:
1. By a business that is licensed to conduct a business other than the provision of care to children; and
2. As an auxiliary service provided for the customers of the primary business.
Sec. 3. 1. Except as otherwise provided in subsection 2 and unless excused because of religious belief or medical condition, a child may not be admitted to any accommodation facility within this State, including an accommodation facility licensed by a county or city, unless his parents or guardian submit to the operator of the accommodation facility written documentation stating that the child has been immunized and has received proper boosters for that immunization or is complying with the schedules established by regulation pursuant to NRS 439.550 for the diseases set forth in subsection 1 of NRS 432A.230. The written documentation required pursuant to this subsection must be:
(a) A letter signed by a licensed physician stating that the child has been immunized and received boosters or is complying with the schedules;
κ2005 Statutes of Nevada, Page 2091 (CHAPTER 455, AB 42)κ
(b) A record from a public school or private school which establishes that a child is enrolled in the school and has satisfied the requirements for immunization for enrollment in the school pursuant to NRS 392.435 or 394.192; or
(c) Any other documentation from a local health officer which proves that the child has been immunized and received boosters or is complying with the schedules.
2. A child whose parent or guardian has not established a permanent residence in the county in which an accommodation facility is located and whose history of immunization cannot be immediately confirmed by the written documentation required pursuant to subsection 1 may enter the accommodation facility conditionally if the parent or guardian:
(a) Agrees to submit within 15 days the documentation required pursuant to subsection 1; and
(b) Submits proof that he has not established a permanent residence in the county in which the facility is located.
3. If the documentation required pursuant to subsection 1 is not submitted to the operator of the accommodation facility within 15 days after the child was conditionally admitted, the child must be excluded from the facility.
4. Before December 31 of each year, each accommodation facility shall report to the Health Division of the Department, on a form furnished by the Division, the exact number of children who have:
(a) Been admitted conditionally to the accommodation facility; and
(b) Completed the immunizations required by this section.
5. To the extent that the Board or an agency for the licensing of child care facilities established by a county or city requires a child care facility to maintain proof of immunization of a child admitted to the facility, the Board or agency shall authorize a business which operates more than one accommodation facility to maintain proof of immunization of a child admitted to any accommodation facility of the business at a single location of the business. The documentation must be accessible by each accommodation facility of the business.
Sec. 4. 1. To the extent that the Board or an agency for the licensing of child care facilities established by a county or city requires a child care facility to make available a minimum amount of space per child in the facility, an accommodation facility may include the space occupied by any recreational toys that are used in the accommodation facility in satisfying the requirement for the minimum amount of space per child in the facility.
2. To the extent that the Board or an agency for the licensing of child care facilities established by a county or city requires a child care facility to make available a minimum number of toilets per child in the facility, the Board or agency shall adjust the number of toilets per child required in an accommodation facility to a number that is appropriate for accommodation facilities, taking into account the unique nature of such facilities.
3. An accommodation facility shall permit each parent or guardian of a child who is receiving care in the accommodation facility to attend to the needs of the child if the parent or guardian does so in an area of a bathroom facility that is designated for use by one person.
κ2005 Statutes of Nevada, Page 2092 (CHAPTER 455, AB 42)κ
Sec. 5. NRS 432A.020 is hereby amended to read as follows:
432A.020 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 432A.021 to 432A.028, inclusive, and section 2 of this act have the meanings ascribed to them in those sections.
Sec. 6. NRS 432A.220 is hereby amended to read as follows:
432A.220 Any person who operates a child care facility without a license issued pursuant to NRS 432A.131 to 432A.220, inclusive, and section 4 of this act is guilty of a misdemeanor.
Sec. 7. NRS 432A.230 is hereby amended to read as follows:
432A.230 Except as otherwise provided in section 3 of this act for accommodation facilities:
1. Except as otherwise provided in subsection 3 and unless excused because of religious belief or medical condition, a child may not be admitted to any child care facility within this State, including a facility licensed by a county or city, unless his parents or guardian submit to the operator of the facility a certificate stating that the child has been immunized and has received proper boosters for that immunization or is complying with the schedules established by regulation pursuant to NRS 439.550 for the following diseases:
(a) Diphtheria;
(b) Tetanus;
(c) Pertussis if the child is under 6 years of age;
(d) Poliomyelitis;
(e) Rubella;
(f) Rubeola; and
(g) Such other diseases as the local board of health or the State Board of Health may determine.
2. The certificate must show that the required vaccines and boosters were given and must bear the signature of a licensed physician or his designee or a registered nurse or his designee, attesting that the certificate accurately reflects the childs record of immunization.
3. A child whose parent or guardian has not established a permanent residence in the county in which a child care facility is located and whose history of immunization cannot be immediately confirmed by a physician in this State or a local health officer, may enter the child care facility conditionally if the parent or guardian:
(a) Agrees to submit within 15 days a certificate from a physician or local health officer that the child has received or is receiving the required immunizations; and
(b) Submits proof that he has not established a permanent residence in the county in which the facility is located.
4. If a certificate from the physician or local health officer showing that the child has received or is receiving the required immunizations is not submitted to the operator of the child care facility within 15 days after the child was conditionally admitted, the child must be excluded from the facility.
5. Before December 31 of each year, each child care facility shall report to the Health Division of the Department, on a form furnished by the Division, the exact number of children who have:
(a) Been admitted conditionally to the child care facility; and
(b) Completed the immunizations required by this section.
κ2005 Statutes of Nevada, Page 2093 (CHAPTER 455, AB 42)κ
Sec. 8. NRS 432A.240 is hereby amended to read as follows:
432A.240 If the religious belief of a childs parents or guardian prohibits the immunization of the child as required by NRS 432A.230 [,] or section 3 of this act, a written statement of this fact signed by the parents or guardian and presented to the operator of the facility exempts the child from the provisions of that section for purposes of admission.
Sec. 9. NRS 432A.250 is hereby amended to read as follows:
432A.250 If the medical condition of a child will not permit him to be immunized to the extent required by NRS 432A.230 [,] or section 3 of this act, a written statement of this fact signed by a licensed physician and presented to the operator of the facility by the parents or guardian of such child exempts such child from all or part of the provisions of NRS 432A.230 [,] or section 3 of this act, as the case may be, for purposes of admission.
Sec. 10. NRS 432A.260 is hereby amended to read as follows:
432A.260 If, after a child has been admitted to a child care facility, including a facility licensed by a county or city, additional immunization requirements are provided by law, the childs parents or guardian shall submit an additional certificate or certificates or, if the facility is an accommodation facility, additional written documentation in a form authorized pursuant to section 3 of this act to the operator of the facility stating that such child has met the new immunization requirements.
Sec. 11. NRS 432A.280 is hereby amended to read as follows:
432A.280 Any parent or guardian who refuses to remove his child from the child care facility to which he has been admitted when retention in the facility is prohibited under the provisions of NRS 432A.230, 432A.260 or 432A.270 or section 3 of this act is guilty of a misdemeanor.
Sec. 12. Chapter 432B of NRS is hereby amended by adding thereto the provisions set forth as sections 13 and 14 of this act.
Sec. 13. If a governmental entity has a legally enforceable obligation to provide care or treatment to a child pursuant to subsection 1 of NRS 432B.560 or to provide any supervision, custody, maintenance, support or other service otherwise ordered by the court to a child who the court determines is in need of protection and the governmental entity fails to provide such care, treatment or service, the court may issue an order to join the governmental entity as a party in any proceeding concerning the protection of the child to enforce the legal obligation if, before issuing the order, the court provides notice and an opportunity to be heard to the governmental entity.
Sec. 14. 1. An agency which provides child welfare services shall provide training to each person who is employed by the agency and who provides child welfare services. Such training must include, without limitation, instruction concerning the applicable state and federal constitutional and statutory rights of a person who is responsible for a childs welfare and who is:
(a) The subject of an investigation of alleged abuse or neglect of a child; or
(b) A party to a proceeding concerning the alleged abuse or neglect of a child pursuant to NRS 432B.410 to 432B.590, inclusive.
2. Nothing in this section shall be construed as requiring or authorizing a person who is employed by an agency which provides child welfare services to offer legal advice, legal assistance or legal interpretation of state or federal statutes or laws.
κ2005 Statutes of Nevada, Page 2094 (CHAPTER 455, AB 42)κ
Sec. 15. NRS 432B.190 is hereby amended to read as follows:
432B.190 The Division of Child and Family Services shall, in consultation with each agency which provides child welfare services, adopt:
1. Regulations establishing reasonable and uniform standards for:
(a) Child welfare services provided in this State;
(b) Programs for the prevention of abuse or neglect of a child and the achievement of the permanent placement of a child;
(c) The development of local councils involving public and private organizations;
(d) Reports of abuse or neglect, records of these reports and the response to these reports;
(e) Carrying out the provisions of NRS 432B.260, including, without limitation, the qualifications of persons with whom agencies which provide child welfare services enter into agreements to provide services to children and families;
(f) The management and assessment of reported cases of abuse or neglect;
(g) The protection of the legal rights of parents and children;
(h) Emergency shelter for a child;
(i) The prevention, identification and correction of abuse or neglect of a child in residential institutions;
(j) Evaluating the development and contents of a plan submitted for approval pursuant to NRS 432B.395;
(k) Developing and distributing to persons who are responsible for a childs welfare a pamphlet that is written in language which is easy to understand, is available in English and in any other language the Division determines is appropriate based on the demographic characteristics of this State and sets forth [the] :
(1) Contact information regarding persons and governmental entities which provide assistance to persons who are responsible for the welfare of children, including, without limitation, persons and entities which provide assistance to persons who are being investigated for allegedly abusing or neglecting a child;
(2) The procedures for taking a child for placement in protective custody [and the] ; and
(3) The state and federal legal rights of [persons] :
(I) A person who is responsible for a childs welfare and who is the subject of an investigation of alleged abuse or neglect of a child, including, without limitation, the legal rights of such a person at the time an agency which provides child welfare services makes initial contact with the person in the course of the investigation and at the time the agency takes the child for placement in protective custody, and the legal right of such a person to be informed of any allegation of abuse or neglect of a child which is made against the person at the initial time of contact with the person by the agency; and
(II) Persons who are parties to a proceeding held pursuant to NRS 432B.410 to 432B.590, inclusive, during all stages of the proceeding; and
(l) Making the necessary inquiries required pursuant to NRS 432B.397 to determine whether a child is an Indian child; and
2. Such other regulations as are necessary for the administration of NRS 432B.010 to 432B.606, inclusive [.] , and section 14 of this act.
κ2005 Statutes of Nevada, Page 2095 (CHAPTER 455, AB 42)κ
Sec. 16. NRS 432B.260 is hereby amended to read as follows:
432B.260 1. Upon the receipt of a report concerning the possible abuse or neglect of a child, an agency which provides child welfare services or a law enforcement agency shall promptly notify the appropriate licensing authority, if any. A law enforcement agency shall promptly notify an agency which provides child welfare services of any report it receives.
2. Upon receipt of a report concerning the possible abuse or neglect of a child, an agency which provides child welfare services or a law enforcement agency shall immediately initiate an investigation if the report indicates that:
(a) The child is 5 years of age or younger;
(b) There is a high risk of serious harm to the child; or
(c) The child is living in a household in which another child has died, or the child is seriously injured or has visible signs of physical abuse.
3. Except as otherwise provided in subsection 2, upon receipt of a report concerning the possible abuse or neglect of a child or notification from a law enforcement agency that the law enforcement agency has received such a report, an agency which provides child welfare services shall conduct an evaluation not later than 3 days after the report or notification was received to determine whether an investigation is warranted. For the purposes of this subsection, an investigation is not warranted if:
(a) The child is not in imminent danger of harm;
(b) The child is not vulnerable as the result of any untreated injury, illness or other physical, mental or emotional condition that threatens his immediate health or safety;
(c) The alleged abuse or neglect could be eliminated if the child and his family receive or participate in social or health services offered in the community, or both; or
(d) The agency determines that the:
(1) Alleged abuse or neglect was the result of the reasonable exercise of discipline by a parent or guardian of the child involving the use of corporal punishment, including, without limitation, spanking or paddling; and
(2) Corporal punishment so administered was not so excessive as to constitute abuse or neglect as described in NRS 432B.150.
4. If the agency determines that an investigation is warranted, the agency shall initiate the investigation not later than 3 days after the evaluation is completed.
5. If an agency which provides child welfare services investigates a report of alleged abuse or neglect of a child pursuant to NRS 432B.010 to 432B.400, inclusive, the agency shall inform the person responsible for the childs welfare who is named in the report as allegedly causing the abuse or neglect of the child of any allegation which is made against the person at the initial time of contact with the person by the agency. The agency shall not identify the person responsible for reporting the alleged abuse or neglect.
6. Except as otherwise provided in this subsection, if the agency determines that an investigation is not warranted, the agency may, as appropriate:
(a) Provide counseling, training or other services relating to child abuse and neglect to the family of the child, or refer the family to a person who has entered into an agreement with the agency to provide those services; or
κ2005 Statutes of Nevada, Page 2096 (CHAPTER 455, AB 42)κ
(b) Conduct an assessment of the family of the child to determine what services, if any, are needed by the family and, if appropriate, provide any such services or refer the family to a person who has entered into a written agreement with the agency to make such an assessment.
Κ If an agency determines that an investigation is not warranted for the reason set forth in paragraph (d) of subsection 3, the agency shall take no further action in regard to the matter and shall expunge all references to the matter from its records.
[6.] 7. If an agency which provides child welfare services enters into an agreement with a person to provide services to a child or his family pursuant to subsection [5,] 6, the agency shall require the person to notify the agency if the child or his family refuse or fail to participate in the services, or if the person determines that there is a serious risk to the health or safety of the child.
[7.] 8. An agency which provides child welfare services that determines that an investigation is not warranted may, at any time, reverse that determination and initiate an investigation.
[8.] 9. An agency which provides child welfare services and a law enforcement agency shall cooperate in the investigation, if any, of a report of abuse or neglect of a child.
Sec. 17. NRS 432B.310 is hereby amended to read as follows:
432B.310 Except as otherwise provided in subsection [5] 6 of NRS 432B.260, the agency investigating a report of abuse or neglect of a child shall, upon completing the investigation, report to the Central Registry:
1. Identifying and demographic information on the child alleged to be abused or neglected, his parents, any other person responsible for his welfare and the person allegedly responsible for the abuse or neglect;
2. The facts of the alleged abuse or neglect, including the date and type of alleged abuse or neglect, the manner in which the abuse was inflicted and the severity of the injuries; and
3. The disposition of the case.
Sec. 18. NRS 432B.440 is hereby amended to read as follows:
432B.440 The agency which provides child welfare services shall assist the court during all stages of any proceeding in accordance with NRS 432B.410 to 432B.590, inclusive [.] , and section 13 of this act.
Sec. 19. NRS 432B.550 is hereby amended to read as follows:
432B.550 1. If the court finds that a child is in need of protection, it may, by its order, after receipt and review of the report from the agency which provides child welfare services:
(a) Permit the child to remain in the temporary or permanent custody of his parents or a guardian with or without supervision by the court or a person or agency designated by the court, and with or without retaining jurisdiction of the case, upon such conditions as the court may prescribe;
(b) Place him in the temporary or permanent custody of a relative or other person who the court finds suitable to receive and care for him with or without supervision, and with or without retaining jurisdiction of the case, upon such conditions as the court may prescribe;
(c) Place him in the temporary custody of a public agency or institution authorized to care for children, the local juvenile probation department, the local department of juvenile services or a private agency or institution licensed by the Department of Human Resources or a county whose population is 100,000 or more to care for such a child; or
κ2005 Statutes of Nevada, Page 2097 (CHAPTER 455, AB 42)κ
(d) Commit him to the custody of the Superintendent of the Northern Nevada Childrens Home or the Superintendent of the Southern Nevada Childrens Home, in accordance with chapter 423 of NRS.
Κ In carrying out this subsection, the court may, in its sole discretion and in compliance with the requirements of chapter 159 of NRS, consider an application for the guardianship of the child. If the court grants such an application, it may retain jurisdiction of the case or transfer the case to another court of competent jurisdiction.
2. If, pursuant to subsection 1, a child is placed other than with a parent:
(a) The parent retains the right to consent to adoption, to determine the childs religious affiliation and to reasonable visitation, unless restricted by the court. If the custodian of the child interferes with these rights, the parent may petition the court for enforcement of his rights.
(b) The court shall set forth good cause why the child was placed other than with a parent.
3. If, pursuant to subsection 1, the child is to be placed with a relative, the court may consider, among other factors, whether the child has resided with a particular relative for 3 years or more before the incident which brought the child to the courts attention.
4. Except as otherwise provided in this subsection, a copy of the report prepared for the court by the agency which provides child welfare services must be sent to the custodian and the parent or legal guardian. If the child was delivered to a provider of emergency services pursuant to NRS 432B.630 and the location of the parent is unknown, the report need not be sent to that parent.
5. In determining the placement of a child pursuant to this section, if the child is not permitted to remain in the custody of his parents or guardian [, preference] :
(a) It must be presumed to be in the best interests of the child to be placed together with his siblings.
(b) Preference must be given to placing the child [:
(a) With] with any person related within the third degree of consanguinity to the child who is suitable and able to provide proper care and guidance for the child, regardless of whether the relative resides within this State.
[(b) If practicable, together with his siblings.]
Κ Any search for a relative with whom to place a child pursuant to this section must be completed within 1 year after the initial placement of the child outside of his home. If a child is placed with any person who resides outside of this State, the placement must be in accordance with NRS 127.330.
6. Within 60 days after the removal of a child from his home, the court shall:
(a) Determine whether:
(1) The agency which provides child welfare services has made the reasonable efforts required by paragraph (a) of subsection 1 of NRS 432B.393; or
(2) No such efforts are required in the particular case; and
(b) Prepare an explicit statement of the facts upon which its determination is based.
κ2005 Statutes of Nevada, Page 2098 (CHAPTER 455, AB 42)κ
Sec. 20. NRS 432B.580 is hereby amended to read as follows:
432B.580 1. Except as otherwise provided in this section and NRS 432B.513, if a child is placed pursuant to NRS 432B.550 other than with a parent, the placement must be reviewed by the court at least semiannually, and within 90 days after a request by a party to any of the prior proceedings. Unless the parent, guardian or the custodian objects to the referral, the court may enter an order directing that the placement be reviewed by a panel appointed pursuant to NRS 432B.585.
2. An agency acting as the custodian of the child shall, before any hearing for review of the placement of a child, submit a report to the court, or to the panel if it has been designated to review the matter, which includes [an] :
(a) An evaluation of the progress of the child and his family and any recommendations for further supervision, treatment or rehabilitation [.] ; and
(b) Information concerning the placement of the child in relation to his siblings, including, without limitation:
(1) Whether the child was placed together with his siblings;
(2) Any efforts made by the agency to have the child placed together with his siblings;
(3) Any actions taken by the agency to ensure that the child has contact with his siblings; and
(4) If the child is not placed together with his siblings:
(I) The reasons why the child is not placed together with his siblings; and
(II) A plan for the child to visit his siblings, which must be approved by the court.
3. Except as otherwise provided in this subsection, a copy of the report submitted pursuant to subsection 2 must be given to the parents, the guardian ad litem and the attorney, if any, representing the parent or the child. If the child was delivered to a provider of emergency services pursuant to NRS 432B.630 and the parent has not appeared in the action, the report need not be sent to that parent.
[3.] 4. After a plan for visitation between a child and his siblings submitted pursuant to subparagraph (4) of paragraph (b) of subsection 2 has been approved by the court, the agency which provides child welfare services must request the court to issue an order requiring the visitation set forth in the plan for visitation. If a person refuses to comply with or disobeys an order issued pursuant to this subsection, he may be punished as for a contempt of court.
5. The court or the panel shall hold a hearing to review the placement, unless the parent, guardian or custodian files a motion with the court to dispense with the hearing. If the motion is granted, the court or panel may make its determination from any report, statement or other information submitted to it.
[4.] 6. Except as otherwise provided in this subsection and paragraph (c) of subsection 4 of NRS 432B.520, notice of the hearing must be given by registered or certified mail to:
(a) All the parties to any of the prior proceedings; and
(b) Any persons planning to adopt the child, relatives of the child or providers of foster care who are currently providing care to the child.
κ2005 Statutes of Nevada, Page 2099 (CHAPTER 455, AB 42)κ
Κ Notice of the hearing need not be given to a parent whose rights have been terminated pursuant to chapter 128 of NRS or who has voluntarily relinquished the child for adoption pursuant to NRS 127.040.
[5.] 7. The court or panel may require the presence of the child at the hearing and shall provide to each person to whom notice was given pursuant to subsection [4] 6 an opportunity to be heard at the hearing.
[6.] 8. The court or panel shall review:
(a) The continuing necessity for and appropriateness of the placement;
(b) The extent of compliance with the plan submitted pursuant to subsection 2 of NRS 432B.540;
(c) Any progress which has been made in alleviating the problem which resulted in the placement of the child; and
(d) The date the child may be returned to, and safely maintained in, his home or placed for adoption or under a legal guardianship.
[7.] 9. The provision of notice and an opportunity to be heard pursuant to this section does not cause any person planning to adopt the child, or any relative or provider of foster care to become a party to the hearing.
Sec. 21. NRS 432B.590 is hereby amended to read as follows:
432B.590 1. Except as otherwise provided in NRS 432B.513, the court shall hold a hearing concerning the permanent placement of a child:
(a) Not later than 12 months after the initial removal of the child from his home and annually thereafter.
(b) Within 30 days after making any of the findings set forth in subsection 3 of NRS 432B.393.
Κ Notice of this hearing must be given by registered or certified mail to all the persons to whom notice must be given pursuant to subsection [4] 6 of NRS 432B.580.
2. The court may require the presence of the child at the hearing and shall provide to each person to whom notice was given pursuant to subsection 1 an opportunity to be heard at the hearing.
3. At the hearing, the court shall review any plan for the permanent placement of the child adopted pursuant to NRS 432B.553 and determine:
(a) Whether the agency with legal custody of the child has made the reasonable efforts required by subsection 1 of NRS 432B.553; and
(b) Whether, and if applicable when:
(1) The child should be returned to his parents or placed with other relatives;
(2) It is in the best interests of the child to:
(I) Initiate proceedings to terminate parental rights pursuant to chapter 128 of NRS so that the child can be placed for adoption;
(II) Initiate proceedings to establish a guardianship pursuant to chapter 159 of NRS; or
(III) Establish a guardianship in accordance with NRS 432B.466 to 432B.468, inclusive; or
(3) The agency with legal custody of the child has produced documentation of its conclusion that there is a compelling reason for the placement of the child in another permanent living arrangement.
Κ The court shall prepare an explicit statement of the facts upon which each of its determinations is based. If the court determines that it is in the best interests of the child to terminate parental rights, the court shall use its best efforts to ensure that the procedures required by chapter 128 of NRS are completed within 6 months after the date the court makes that determination, including, without limitation, appointing a private attorney to expedite the completion of the procedures.
κ2005 Statutes of Nevada, Page 2100 (CHAPTER 455, AB 42)κ
including, without limitation, appointing a private attorney to expedite the completion of the procedures. The provisions of this subsection do not limit the jurisdiction of the court to review any decisions of the agency with legal custody of the child regarding the permanent placement of the child.
4. If a child has been placed outside of his home and has resided outside of his home pursuant to that placement for 14 months of any 20 consecutive months, the best interests of the child must be presumed to be served by the termination of parental rights.
5. This hearing may take the place of the hearing for review required by NRS 432B.580.
6. The provision of notice and an opportunity to be heard pursuant to this section does not cause any person planning to adopt the child, or any relative or provider of foster care to become a party to the hearing.
Sec. 22. 1. This section becomes effective upon passage and approval.
2. Sections 1 to 13, inclusive, and 16 to 21, inclusive, of this act become effective on October 1, 2005.
3. Sections 14 and 15 of this act become effective upon passage and approval for the purpose of adopting regulations and on July 1, 2006, for all other purposes.
________
Assembly Bill No. 338Committee on Commerce and Labor
CHAPTER 456
AN ACT relating to insurance; providing for the regulation of medical discount plans; providing the tax rate on premiums for risk retention groups; providing for the regulation of credit personal property insurance; allowing certain health insurers to offer, subject to regulation by the Commissioner of Insurance, policies of health insurance that have high deductibles and are in compliance with certain federal requirements for establishing health savings accounts; decreasing certain fees for risk retention groups; authorizing an insurer to invest in bonds or notes secured by second liens upon real property under certain circumstances; setting forth the circumstances under which a producer of insurance may pay a commission for selling, soliciting, procuring or negotiating insurance in this State; authorizing the Nevada Insurance Guaranty Association to perform certain acts requested by the Commissioner of Insurance; providing that coverage under a conversion health benefit plan must be renewed by the carrier that issued it under certain circumstances; providing for the regulation of consumer credit insurance; providing for the establishment and regulation of sponsored captive insurers; providing for the establishment and regulation of branch captive insurers; providing penalties; and providing other matters properly relating thereto.
[Approved: June 17, 2005]
κ2005 Statutes of Nevada, Page 2101 (CHAPTER 456, AB 338)κ
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Title 57 of NRS is hereby amended by adding thereto a new chapter to consist of the provisions set forth as sections 2 to 16, inclusive, of this act.
Sec. 2. As used in this chapter, unless the context otherwise requires, the words and terms defined in sections 2.3 to 4, inclusive, of this act have the meanings ascribed to them in those sections.
Sec. 2.3. Administrator means a person authorized pursuant to NRS 683A.0805 to 683A.0893, inclusive, to conduct business in this State as an administrator.
Sec. 2.5. Affiliate of an insurer means a person who directly, or indirectly through one or more intermediaries, controls, is controlled by or is under common control with an insurer.
Sec. 2.7. Insurer means any insurer, fraternal benefit society, nonprofit corporation for hospital, medical and dental services, organization for dental care, health maintenance organization or prepaid limited health service organization authorized pursuant to this title to conduct business in this State.
Sec. 3. Medical discount plan means a business arrangement or program evidenced by a membership agreement, contract, card, certificate, device or mechanism in which a person, in exchange for fees, dues, charges or any other form of consideration, offers to provide or provides health care or medical services at a discount from providers of health care who are participating in the business arrangement or program or whom the person advertises as or claims to be participating in the business arrangement or program.
Sec. 4. Provider of health care has the meaning ascribed to it in NRS 629.031.
Sec. 5. Notwithstanding any other provision of law, the Commissioner has exclusive jurisdiction to regulate medical discount plans in this State.
Sec. 6. 1. Except as otherwise provided in this section, it is unlawful for any person to offer, market, sell or engage in business as a medical discount plan in this State without first registering the medical discount plan pursuant to the provisions of this chapter.
2. An insurer is not required to register any medical discount plan pursuant to the provisions of this chapter unless the insurer offers, markets or sells the medical discount plan in this State for separate consideration.
3. If an affiliate of an insurer offers, markets, sells or engages in business as a medical discount plan in this State, the affiliate is required to register the medical discount plan pursuant to the provisions of this chapter.
4. The provisions of this chapter do not apply to any medical discount plan that offers or provides discounts only on prescriptions.
Sec. 7. 1. An application for registration to engage in business as a medical discount plan must be submitted on a form prescribed by the Commissioner. The form must be signed by an officer or an authorized representative of the applicant. Except as otherwise provided in this section, the application must be accompanied by:
(a) A registration fee of $500.
κ2005 Statutes of Nevada, Page 2102 (CHAPTER 456, AB 338)κ
(b) A copy of the organizational documents of the applicant, if any.
(c) A list of names, addresses, positions of employment and biographical information of each person who is responsible for conducting the business activities of the medical discount plan of the applicant, including, but not limited to, all members of the board of directors, board of trustees, officers and managers. The list must set forth the extent and nature of any contracts or other agreements between any person who is responsible for conducting the business activities of the applicant and the medical discount plan, including disclosure of any possible conflicts of interest.
(d) A complete biographical statement, on a form prescribed by the Commissioner, describing the facilities, employees and services that will be offered by the applicant.
(e) A copy of all forms used for contracts between the applicant and networks of providers of health care regarding the provision of health care or medical services to members.
(f) A copy of the most recent financial statements of the applicant, audited by an independent certified public accountant.
(g) A description of the method of marketing proposed by the applicant.
(h) A description of the procedures for making a complaint to be established and maintained by the applicant.
(i) Any other information required by the Commissioner.
2. Each person who registers a medical discount plan must renew the registration annually before the registration expires. Except as otherwise provided in this section, an application to renew the registration must include:
(a) An annual renewal fee of $500; and
(b) Any information set forth in subsection 1 that the Commissioner requires to be included in the application.
3. An administrator or insurer that registers a medical discount plan is not required to pay the fees for registering or renewing the registration of the medical discount plan pursuant to this section.
4. The Commissioner shall, by regulation, designate the provisions of subsection 1 that shall be deemed satisfied by an administrator, insurer or affiliate of an insurer that has complied with substantially similar requirements pursuant to other provisions of this title.
Sec. 8. A person who is responsible for conducting the business activities of a medical discount plan may not:
1. Use the word insurance or enrollment in any advertising or marketing material, brochures or discount cards for the medical discount plan unless approved by the Commissioner;
2. Use in any advertising or marketing material, brochures or discount cards for the medical discount plan the terms coverage, copay, preexisting conditions, guaranteed issue, PPO, preferred provider organization or any other term that could reasonably mislead a person into believing the medical discount plan is a policy of health insurance;
3. Pay a provider of health care any fee for providing any health care or medical services; or
4. Collect or accept money from a member of the medical discount plan for payment to a provider of health care for specific health care or medical services that the provider has provided or will provide to the member unless the registration for the medical discount plan is held by an administrator or insurer.
κ2005 Statutes of Nevada, Page 2103 (CHAPTER 456, AB 338)κ
medical services that the provider has provided or will provide to the member unless the registration for the medical discount plan is held by an administrator or insurer.
Sec. 9. 1. The following disclosures must be made in writing to any prospective member of a medical discount plan and must be in clear language and prominently displayed in any advertisements, marketing materials and brochures relating to a medical discount plan:
(a) That the medical discount plan is not a policy of health insurance;
(b) That the medical discount plan provides discounts from providers of health care who provide health care or medical services to members;
(c) That the medical discount plan does not make payments directly to the providers of health care;
(d) That the member will be required to pay for all health care or medical services but will receive a discount from those providers of health care who have contracted with the medical discount plan;
(e) The corporate name of the person offering the medical discount plan and the location and address of each office for the medical discount plan; and
(f) A telephone number where the member may obtain information and answers to questions or complaints.
2. The disclosures required pursuant to this section may be provided orally or electronically if written disclosures are provided not later than the earlier of:
(a) Ten business days after the prospective member elects to accept the medical discount plan; or
(b) The date on which any other written material is provided by the medical discount plan to the member.
Sec. 10. The disclosures required by this chapter must be printed in type that is not smaller than 12-point type.
Sec. 11. 1. Each medical discount plan must at all times maintain a net worth of $100,000.
2. The Commissioner shall not issue a registration or renewal of a registration for a medical discount plan unless the person registering or renewing the registration certifies that the medical discount plan has a net worth of at least $100,000.
Sec. 12. A person is subject to the imposition of an administrative penalty pursuant to this chapter if, in the course of the business of the person, the person:
1. Solicits, markets, advertises, promotes or sells to a person in this State a medical discount plan or a membership in connection with a medical discount plan unless the medical discount plan is registered pursuant to this chapter.
2. Fails to provide any disclosure required pursuant to section 9 of this act.
3. Fails to make available to an applicant for membership or to a member, through a toll-free telephone number, upon the request of the applicant or member, a complete and accurate list of all participating providers of health care who have contracted with the medical discount plan and who are located in the applicants or members local area, or within a radius of 50 miles, and a list of the health care or medical services for which the discounts are applicable. The list must be made available, upon the request of the applicant, at the time the applicant purchases a membership and must be updated not less than once every 6 months.
κ2005 Statutes of Nevada, Page 2104 (CHAPTER 456, AB 338)κ
upon the request of the applicant, at the time the applicant purchases a membership and must be updated not less than once every 6 months.
4. Violates subsection 1 or 2 of section 8 of this act or otherwise uses advertising or marketing material, brochures or discount cards that are misleading, deceptive or fraudulent.
5. Offers discounted products or services to the applicant or member that are not authorized by a contract with each provider of health care listed in conjunction with the medical discount plan.
6. Fails to allow the applicant or member to cancel the membership in the medical discount plan.
7. If appropriate, fails to refund any required portion of membership fees paid to the medical discount plan by the applicant or member within 30 days after the applicant or member provides timely notification of the cancellation of the membership to the person administering the medical discount plan.
Sec. 13. A person who violates any provision of this chapter or an order or regulation of the Commissioner issued or adopted pursuant thereto may be assessed an administrative penalty by the Commissioner of not more than $2,000 for each act or violation, not to exceed an aggregate amount of $10,000 for violations of a similar nature. For the purposes of this section, violations shall be deemed to be of a similar nature if the violations consist of the same or similar conduct, regardless of the number of times the conduct occurred.
Sec. 14. 1. Except as otherwise provided in this subsection, the Commissioner may conduct examinations to enforce the provisions of this chapter pursuant to the provisions of NRS 679B.230 to 679B.300, inclusive, at such times as he deems necessary. For the purposes of this chapter, the Commissioner is not required to comply with the requirement in NRS 679B.230 that insurers be examined not less frequently than every 5 years.
2. A person who is responsible for conducting the business activities of a medical discount plan shall, upon the request of the Commissioner, make available to the Commissioner for inspection any accounts, books and records concerning the medical discount plan which are reasonably necessary to enable the Commissioner to determine whether the medical discount plan is in compliance with the provisions of this chapter.
Sec. 15. 1. A medical discount plan must maintain records of the transactions governed by this chapter. The records must include:
(a) A copy of each type of contract that the medical discount plan issues, sells or offers for sale;
(b) The name and address of each member of the medical discount plan;
(c) A copy of each contract that the medical discount plan enters into with providers of health care for purposes of providing members with health care or medical services at a discount; and
(d) A copy of the annual certification of net worth and supporting documentation.
2. Except as otherwise provided in this subsection, each medical discount plan must retain all records for at least 7 years. A medical discount plan which intends to discontinue doing business in this State must provide the Commissioner with satisfactory proof that it has discharged its duties to the members in this State and must not destroy its records without the prior approval of the Commissioner.
κ2005 Statutes of Nevada, Page 2105 (CHAPTER 456, AB 338)κ
discharged its duties to the members in this State and must not destroy its records without the prior approval of the Commissioner.
3. The records required to be maintained pursuant to this section may be stored on a computer disc or other storage device for a computer from which the records may be readily printed.
Sec. 16. The Commissioner may adopt regulations to carry out the provisions of this chapter.
Sec. 17. Title 57 of NRS is hereby amended by adding thereto a new chapter to consist of the provisions set forth as sections 18 to 61, inclusive, of this act.
Sec. 18. As used in this chapter, unless the context otherwise requires, the words and terms defined in sections 19 to 40, inclusive, of this act have the meanings ascribed to them in those sections.
Sec. 19. Closed-end credit means a credit transaction that is not open-end credit.
Sec. 20. Collateral means personal property in which a purchase money security interest is retained or personal property that is pledged as security for the satisfaction of a debt.
Sec. 21. Compensation means any valuable consideration, direct or indirect, paid by or on behalf of the insurer, or by any subsidiary or parent, or subsidiary of the parent of the insurer, or by any other person to or on behalf of any group policyholder or producer or withheld from an insurer by any group policyholder or producer, and includes:
1. Paid or credited commissions or contingent commissions.
2. Fees for services, consulting fees or any other fee paid or credited within or outside this State in direct relation to the volume of premiums produced or written in this State.
3. The use of electronic data processing equipment or services, except for devices provided in lieu of books and charts of rates and refunds usable only for that purpose.
4. The furnishing of supplies, except forms approved by the Commissioner, the usual forms for claims and reports, envelopes for transmitting claims and brochures, and books and charts of rates and refunds.
5. Providing rental equipment of any type.
6. Advertising.
7. Providing telephone service without charge or at a charge less than the usual cost.
8. Participation in a profit-sharing plan.
9. Dividends and refunds or credits based on experience ratings.
10. An allowance for expenses.
11. Participation in stock plans or bonuses.
12. Any form of credit, including the use of money.
13. Commissions for reinsurance, ceded or assumed.
14. Reinsurance with a nonauthorized insurer owned or controlled by a creditor or producer or with a nonauthorized insurer in which a creditor or producer is a stockholder.
15. Any commission or fee, inducement or intention to induce, or any other consideration arising from the sale of insurance or other product or service, except credit personal property insurance as part of the transaction in which the indebtedness is arranged or the application for the credit personal property insurance is made.
κ2005 Statutes of Nevada, Page 2106 (CHAPTER 456, AB 338)κ
Sec. 22. Credit agreement means the written document that sets forth the terms of the credit transaction and includes the security agreement.
Sec. 23. Credit personal property insurance means a policy, endorsement, rider, binder, certificate, or other instrument or evidence of insurance written in connection with a credit transaction that:
1. Covers perils to the goods purchased through a credit transaction or used as collateral for a credit transaction and that concerns the interest of a creditor in the purchased goods or pledged collateral either in whole or in part; or
2. Covers perils to goods purchased in connection with an open-end credit transaction.
Sec. 24. Credit transaction means any transaction for which the terms of repayment of money loaned or loan commitment made, or payment of goods, services or properties sold or leased, is to be made at a future date.
Sec. 25. Creditor means the lender of money or vendor or lessor of goods, services, property, rights or privileges for which payment is arranged through a credit transaction, and includes:
1. The successor to the right, title or interest of;
2. An affiliate, associate or subsidiary of;
3. Any director, officer or employee of; or
4. Any other person in any way associated with,
Κ any such lender, vendor or lessor.
Sec. 26. Creditor-placed insurance means single-interest insurance or dual-interest insurance that is purchased by the creditor, as the named insured, after a credit transaction:
1. According to the terms of the credit agreement as a result of the debtors failing to provide required insurance, the cost for which is charged to the debtor; and
2. For coverage against loss, expense or damage to personal property used as collateral as a result of fire, theft, collision or other risk of loss that would impair the interest of the creditor or adversely affect the value of the collateral.
Sec. 27. Debtor means a borrower of money or a purchaser or lessee of goods, services, property, rights or privileges for which payment is arranged through a credit transaction.
Sec. 28. Dual-interest insurance means credit personal property insurance covering the interest of the creditor or seller and any portion of the interest of the borrower in goods purchased through the credit transaction or pledged as collateral for the credit transaction.
Sec. 29. Experience means earned premiums and incurred losses during the experience period.
Sec. 30. Experience period means the most recent period of time that is not more than 3 years and for which earned premiums and incurred losses are reported.
Sec. 31. Finance charge means any charge payable directly or indirectly as an incident to or condition of an extension of credit, including, without limitation, interest, time-price differentials, amounts payable under a discount system of additional charges, service, transaction or carrying charges, loan fees, points or similar charges, appraisal fees or charges incurred for investigating the creditworthiness of the consumer.
κ2005 Statutes of Nevada, Page 2107 (CHAPTER 456, AB 338)κ
The term does not include charges as a result of default, taxes, license fees, delinquency charges or filing fees.
Sec. 32. Gross debt means the sum of the remaining payments owed to a creditor by a debtor.
Sec. 33. Identifiable charge means a charge for credit personal property insurance that is made to debtors who have that insurance and not made to debtors who do not have that insurance. The term includes a charge for insurance that is disclosed in the credit agreement or other instrument furnished to the debtor which sets forth the financial elements of the credit transaction and any difference in the finance, interest, service or other similar charge made to debtors who are in similar circumstances except for the insured or noninsured status of the debtor.
Sec. 34. Incurred losses means total claims and claim adjustment expenses paid during the experience period plus any change in claim and claim adjustment expense reserves.
Sec. 35. Loss ratio means incurred losses divided by the sum of earned premiums.
Sec. 36. Net debt means the amount required to liquidate the remaining debt in a single lump-sum payment, excluding all unearned interest and other unearned finance charges.
Sec. 37. Nonfiling insurance means insurance that indemnifies the creditor for loss of its interest in the collateral due to failure to perfect a security interest in the collateral.
Sec. 38. Open-end credit means credit extended by a creditor under an agreement in which:
1. The creditor reasonably contemplates repeated transactions;
2. The creditor periodically imposes a finance charge on any outstanding unpaid balance; and
3. The amount of credit that may be extended to the debtor during the term of the agreement up to any limit set by the creditor is generally made available to the extent that any outstanding balance is repaid.
Sec. 39. Reverse competition means competition among insurers that regularly takes the form of insurers competing for the favor of a person who controls or may control the placement of insurance with insurers that tends to increase insurance premiums or prevents a decrease in insurance premiums in order to give greater compensation to a person who controls or may control the placement of insurance with insurers.
Sec. 40. Single-interest insurance means credit personal property insurance covering only the interest of the seller or creditor in goods purchased through a credit transaction or pledged as collateral in a credit transaction.
Sec. 41. All credit personal property insurance, including guaranteed asset protection insurance, written in connection with credit transactions for personal, family or household purposes is subject to the provisions of this chapter, except:
1. Credit transactions involving extensions of credit primarily for business or commercial purposes;
2. Insurance written in connection with a credit transaction that is secured by a real estate mortgage or deed of trust;
3. Creditor-placed insurance;
4. Title insurance;
5. Nonfiling insurance;
κ2005 Statutes of Nevada, Page 2108 (CHAPTER 456, AB 338)κ
6. Insurance purchased by a creditor after repossession or a similar event in which the creditor acquired possession of the property; and
7. Insurance for which an identifiable charge is not made to or collected from the debtor.
Sec. 42. For credit personal property insurance sold in conjunction with a closed-end credit transaction, an insurer shall not:
1. Issue credit personal property insurance unless the amount financed exceeds $300;
2. Issue credit personal property insurance in an amount that exceeds the amount of the underlying credit transaction; and
3. Sell credit personal property insurance with a term that exceeds the scheduled term of the underlying credit transaction.
Sec. 43. Credit personal property insurance must:
1. At a minimum, include the coverage in the standard fire policy with coverage attachment and extended coverage endorsement; and
2. Cover a substantial risk of loss of or damage to the property related to the credit transaction.
Sec. 44. 1. An insurer shall not:
(a) Require the bundling of other credit insurance coverage with the purchase of credit personal property insurance; and
(b) Use gross debt in any manner to determine the premiums for credit personal property insurance.
2. A debtor must have a choice to purchase credit personal property insurance separately from other credit insurance coverage.
Sec. 45. 1. Before a debtor elects to purchase credit personal property insurance in connection with a credit transaction, the following information must be disclosed to the debtor in writing:
(a) That the purchase of credit personal property insurance from the creditor is not mandatory and is not a condition for obtaining credit approval;
(b) If more than one type of credit insurance is made available to the debtor, whether the debtor may purchase credit personal property insurance separately from any other credit insurance;
(c) The conditions of eligibility;
(d) That if the debtor has other insurance that covers the risk, the debtor may not want or need credit personal property insurance;
(e) That the debtor may cancel the insurance at any time, or if evidence of insurance is required for the extension of credit, upon proof of insurance that is acceptable to the creditor, and obtain a refund of or credit for:
(1) If the cancellation is not more than 30 days after the debtor receives the individual policy or certificate of insurance, any premium paid by the debtor; or
(2) If the cancellation is more than 30 days after the debtor receives the individual policy or certificate of insurance, any unearned premium paid by the debtor;
(f) A brief description of the coverage, including a description of the amount, term, extensions, limitations, perils and exclusions, the insured event, any waiting or elimination period, any deductible, any applicable waiver of premium, the person who would receive any benefits, and the premium or premium rate for the credit personal property insurance; and
κ2005 Statutes of Nevada, Page 2109 (CHAPTER 456, AB 338)κ
(g) If the premium or charge for the insurance is financed, it will be subject to finance charges at the rate applicable to the credit transaction.
2. The disclosures required pursuant to subsection 1:
(a) If made in connection with credit personal property insurance offered at the same time as the extension of credit or offered through direct mail advertisements, must be made in writing and presented to the customer in a clear and conspicuous manner; or
(b) If made in connection with credit personal property insurance offered after the extension of credit other than through direct mail advertisements, may be provided orally or electronically if written disclosures are provided not later than the earlier of:
(1) Ten days after the debtor elects to accept the coverage; or
(2) The date any other written material is provided by the creditor to the debtor.
Sec. 46. An offer to extend coverage for an open-end credit transaction must include, at the time of the invitation to contract, a written disclosure or, if the solicitation is made by telephone and the written disclosure is mailed to the debtor not later than 10 days after enrollment, an oral summary of the written disclosure. The written disclosure must be in not smaller than 12-point type and be in substantially the following form:
This coverage may duplicate existing coverage if you have a residential property insurance policy. It applies to any item of covered property on which you owe a debt. This coverage is primary, so it is the first source to be used in the event of a loss on property it covers. You may cancel this coverage at any time by calling the insurer during business hours at the telephone number provided to you or by writing to the insurer. We are charging you a premium that may be based on subjects for which a claim cannot be made, such as services, meals or other consumables, entertainment, finance or service fees, loan interest, delivery charges or other insurance premiums.
Sec. 47. 1. All credit personal property insurance must be evidenced by an individual policy or a certificate of insurance that is delivered to the debtor.
2. The individual policy or certificate of insurance must, in addition to other requirements of law, include:
(a) The name and address of the home office of the insurer;
(b) The name of each debtor or, on a certificate of insurance, the identity by name or otherwise of each debtor;
(c) The amount of the premium or payment of the debtor or, for open-end credit, the premium rate, basis of the calculation of premiums and balance to which the premium rate applies;
(d) A complete description of the coverage or coverages, including the amount, term and any exceptions, limitations and exclusions of coverage;
(e) A statement that all benefits must be paid to the creditor to reduce or extinguish the unpaid debt or to repair or replace the property and that if the benefits exceed the unpaid debt, any excess benefit must be paid to the debtor;
(f) If the scheduled term of the insurance is less than the scheduled term of the credit transaction, a statement indicating that fact set forth on the face of the individual policy or certificate of insurance in not less than 10-point bold type; and
κ2005 Statutes of Nevada, Page 2110 (CHAPTER 456, AB 338)κ
the face of the individual policy or certificate of insurance in not less than 10-point bold type; and
(g) If the policy is related to open-end credit, a statement that the debtor will, at least once each year, receive the statement as required pursuant to subsection 3.
3. For credit personal property insurance related to open-end credit, the creditor must provide to the debtor at least once each year with the account statement a statement in the following form in at least 12-point type:
You are paying a premium for credit personal property insurance based on the outstanding balance of this account. You may cancel this coverage at any time by calling the insurer during business hours at the telephone number provided to you or by writing to the insurer. You are being charged a premium that may be based on subjects for which a claim cannot be made, such as services, meals or other consumables, entertainment, finance or service fees, loan interest, delivery charges or other insurance premiums.
Sec. 48. 1. Except as otherwise provided in subsection 2, the individual policy or certificate of insurance must be delivered to the debtor upon acceptance of the insurance by the insurer.
2. An individual policy or certificate of insurance made in connection with an open-end credit agreement or any credit personal property insurance requested by the debtor after the date the debt is incurred must be delivered to the debtor not more than 30 days after the debtor requested the insurance.
Sec. 49. 1. Except as otherwise provided in sections 50 and 51 of this act, all policies, certificates of insurance, applications for insurance, enrollment forms, endorsements and riders delivered or issued for delivery in this State and the schedules of premium rates related thereto must be filed with the Commissioner.
2. An item filed with the Commissioner pursuant to subsection 1 may not be issued until 60 days after it is filed with the Commissioner or until the written prior approval of the Commissioner is obtained.
3. The Commissioner shall, not more than 60 days after an item is submitted to him pursuant to subsection 1, disapprove the item if the benefits are not reasonable in relation to the premium charged or if the item contains provisions that are unjust, unfair, inequitable, misleading or deceptive or encourage misrepresentation of the coverage or are contrary to any provision of the Code or any regulation adopted pursuant to the Code. If the Commissioner does not disapprove an item filed pursuant to subsection 1 in accordance with this subsection, the item shall be deemed to be approved.
4. If the Commissioner notifies an insurer that an item is disapproved pursuant to subsection 3, the insurer shall not use the item. The notice must include the reason for the disapproval and state that a hearing will be granted not more than 30 days after the insurer submits a written request for a hearing to the Commissioner, unless postponed by mutual consent or by order of the Commissioner.
5. The Commissioner may hold a hearing to withdraw approval of an item submitted pursuant to subsection 1 not less than 20 days after providing a written notice of the hearing to the insurer.
κ2005 Statutes of Nevada, Page 2111 (CHAPTER 456, AB 338)κ
providing a written notice of the hearing to the insurer. The written notice must include one of the reasons described in subsection 3 for the proposed withdrawal of approval of the item. An insurer shall not use an item if approval of the item is withdrawn pursuant to this subsection.
Sec. 50. 1. The Commissioner may adopt by regulation forms for use in the issuance of credit personal property insurance, including applications, policies, forms for claims and any other forms required for the sale, issuance and administration of credit personal property insurance. An insurer may elect to use those forms in lieu of any other forms.
2. If an officer of the insurer submits, in the manner prescribed by the Commissioner, a written certification to the Commissioner that the forms used by the insurer are identical to those adopted by the Commissioner, the insurer is not required to file those forms with the Commissioner for approval pursuant to section 49 of this act.
Sec. 51. 1. The Commissioner shall, by regulation, establish reasonable rates as described in this chapter and in accordance with the standards established in NRS 686B.050 and 686B.060. The rates must be reasonable in relation to the benefits provided and must not be excessive, inadequate or unfairly discriminatory.
2. The Commissioner may, by regulation, establish rates that an insurer may use without filing pursuant to section 49 of this act. In establishing such rates, the Commissioner shall consider and apply the following factors:
(a) Actual and expected loss experience;
(b) General and administrative expenses;
(c) Loss settlement and adjustment expenses;
(d) Reasonable creditor compensation;
(e) The manner in which premiums are charged;
(f) Other acquisition costs;
(g) Reserves;
(h) Taxes;
(i) Regulatory license fees and fund assessments;
(j) Reasonable insurer profit; and
(k) Other relevant data consistent with generally accepted actuarial standards.
Sec. 51.5. Except as otherwise provided in section 51 of this act:
1. A rate that has been filed and approved pursuant to section 49 of this act is effective for a period not to exceed 3 years after the date of approval. The insurer shall file a rate for approval before the expiration of the 3-year period. The insurer may file a rate for approval at any time before the expiration of the 3-year period.
2. If an insurer revises its schedule of premium rates, the insurer shall file the revised schedule with the Commissioner pursuant to section 49 of this act. An insurer shall not issue credit personal property insurance for which the premium rates exceed the rates determined by the schedule approved by the Commissioner.
Sec. 52. For open-end credit transactions, the rating plan of the insurer must address, by the grouping of similar accounts, the expected variance in the ratio of goods purchased that are covered under the credit personal property insurance and goods that are not covered by that insurance. Accounts must be separated into groups that have or are expected to have a similar ratio of goods purchased that are covered under the credit personal property insurance and goods that are not covered by that insurance.
κ2005 Statutes of Nevada, Page 2112 (CHAPTER 456, AB 338)κ
expected to have a similar ratio of goods purchased that are covered under the credit personal property insurance and goods that are not covered by that insurance.
Sec. 53. (Deleted by amendment.)
Sec. 54. Each year, not later than the date specified in the Instructions to the Annual Statement published by the National Association of Insurance Commissioners, an insurer doing business in this State shall file with the Commissioner and the National Association of Insurance Commissioners a report of credit personal property insurance written on the basis of a calendar year. The report must be prepared using the Credit Insurance Supplement-Annual Statement Blank approved by the National Association of Insurance Commissioners and must contain separate data for each state.
Sec. 55. 1. Except as otherwise provided in subsection 2, an authorized insurer issuing credit personal property insurance may not enter into any agreement whereby the authorized insurer transfers, by reinsurance or otherwise, to an unauthorized insurer, as they relate to credit personal property insurance written or issued in this State:
(a) A substantial portion of the risk of loss under the credit personal property insurance written by the authorized insurer in this State;
(b) All of one or more kinds, lines, types or classes of credit personal property insurance;
(c) All of the credit personal property insurance produced through one or more agents, agencies or creditors;
(d) All of the credit personal property insurance written or issued in a designated geographical area; or
(e) All of the credit personal property insurance under a policy of group insurance.
2. An authorized insurer may make the transfers listed in subsection 1 to an unauthorized insurer if the unauthorized insurer:
(a) Maintains security on deposit with the Commissioner in an amount which when added to the actual capital and surplus of the insurer is equal to the capital and surplus required of an authorized stock insurer pursuant to NRS 680A.120. The security may consist only of the following:
(1) Cash.
(2) General obligations of, or obligations guaranteed by, the Federal Government, this State or any of its political subdivisions. These obligations must be valued at the lower of market value or par value.
(3) Any other type of security that would be acceptable if posted by a domestic or foreign insurer.
(b) Files an annual statement with the Commissioner pursuant to NRS 680A.270.
(c) Maintains reserves on its credit personal property insurance business pursuant to NRS 681B.050.
(d) Values its assets and liabilities pursuant to NRS 681B.010 to 681B.040, inclusive.
(e) Agrees to examinations conducted by the Commissioner pursuant to NRS 679B.230.
(f) Complies with the standards adopted by the Commissioner pursuant to NRS 679A.150.
(g) Does not hold, issue or have an arrangement for holding or issuing any of its stock for which dividends are paid based on:
κ2005 Statutes of Nevada, Page 2113 (CHAPTER 456, AB 338)κ
(1) The experience of a specific risk of all of one or more kinds, lines, types or classes of insurance;
(2) All of the business produced through one or more agents, agencies or creditors;
(3) All of the business written in a designated geographical area; or
(4) All of the business written for one or more forms of insurance.
Sec. 56. 1. Each individual policy or certificate of insurance must provide for a refund of unearned premiums if the credit personal property insurance is cancelled before the scheduled date of termination of the insurance.
2. Except as otherwise provided in this section, any refund must be provided to the person to whom it is entitled as soon as practicable after the date of cancellation of the insurance.
3. The Commissioner shall, by regulation, establish the minimum amount of unearned premiums that must remain outstanding at the time of cancellation in order for a person to be entitled to a refund. If the amount of unearned premiums that remains outstanding at the time of cancellation is less than the minimum amount established by regulation, the person is not entitled to a refund.
4. The formula that an insurer uses to determine the amount of a refund must be submitted to and approved by the Commissioner before it is used.
Sec. 57. 1. All claims must be promptly reported to the insurer or its designated claim representative, and the insurer shall maintain adequate files on all reported claims. All claims must be settled as soon as practicable and in accordance with the terms of the insurance contract.
2. All claims must be paid by draft drawn upon the insurer, by electronic funds transfer or by check of the insurer to the order of:
(a) The claimant to whom payment of the claim is due pursuant to the provisions of the policy; or
(b) Any other person designated by the claimant to whom payment is due.
Sec. 58. A plan or arrangement may not be used whereby a person other than the insurer or its designated claim representative is authorized to settle or adjust claims. The creditor may not be designated as the representative for the insurer in adjusting claims, except that a group policyholder may, by arrangement with the group insurer, draw drafts or checks in payment of claims due the group policyholder subject to the periodic audit by the insurer.
Sec. 59. A claim made pursuant to credit personal property insurance must not be denied more than 60 days after the initiation of coverage because the debtor was ineligible for coverage unless the debtor misrepresented a material fact. If a claim is denied within 60 days after the initiation of coverage because the debtor was ineligible for coverage or because the debtor misrepresented a material fact, the insurer shall refund to the debtor any premium paid and the creditor shall refund to the debtor any finance charge paid on the premium.
Sec. 60. The Commissioner may adopt regulations to carry out the provisions of this chapter.
Sec. 61. In addition to any other penalty provided by law, a person who violates a provision of this chapter or a final order of or a regulation adopted by the Commissioner pursuant to this chapter, after notice and a hearing, upon order of the Commissioner is subject to:
κ2005 Statutes of Nevada, Page 2114 (CHAPTER 456, AB 338)κ
adopted by the Commissioner pursuant to this chapter, after notice and a hearing, upon order of the Commissioner is subject to:
1. The imposition of an administrative fine not to exceed $5,000 per violation, or $10,000 per violation if the Commissioner determines that the violation was willful; and
2. Revocation, suspension or limitation of the license or certificate of authority held by the person.
Sec. 62. Chapter 680B of NRS is hereby amended by adding thereto a new section to read as follows:
Each risk retention group which is chartered in a state other than this State and which is registered in this State pursuant to NRS 695E.140 to 695E.200, inclusive, shall pay the tax imposed by NRS 680B.027 at a rate of 2 percent.
Sec. 63. NRS 680B.010 is hereby amended to read as follows:
680B.010 The Commissioner shall collect in advance and receipt for, and persons so served must pay to the Commissioner, fees and miscellaneous charges as follows:
1. Insurers certificate of authority:
(a) Filing initial application..................................................................... $2,450
(b) Issuance of certificate:
(1) For any one kind of insurance as defined in NRS 681A.010 to 681A.080, inclusive 283
(2) For two or more kinds of insurance as so defined....................... 578
(3) For a reinsurer................................................................................. 2,450
(c) Each annual continuation of a certificate....................................... 2,450
(d) Reinstatement pursuant to NRS 680A.180, 50 percent of the annual continuation fee otherwise required.
(e) Registration of additional title pursuant to NRS 680A.240................ 50
(f) Annual renewal of the registration of additional title pursuant to NRS 680A.240 25
2. Charter documents, other than those filed with an application for a certificate of authority. Filing amendments to articles of incorporation, charter, bylaws, power of attorney and other constituent documents of the insurer, each document $10
3. Annual statement or report. For filing annual statement or report $25
4. Service of process:
(a) Filing of power of attorney....................................................................... $5
(b) Acceptance of service of process............................................................ 30
5. Licenses, appointments and renewals for producers of insurance:
(a) Application and license........................................................................ $125
(b) Appointment fee for each insurer........................................................... 15
(c) Triennial renewal of each license.......................................................... 125
(d) Temporary license...................................................................................... 10
(e) Modification of an existing license......................................................... 50
6. Surplus lines brokers:
(a) Application and license ....................................................................... $125
(b) Triennial renewal of each license.......................................................... 125
κ2005 Statutes of Nevada, Page 2115 (CHAPTER 456, AB 338)κ
7. Managing general agents licenses, appointments and renewals:
(a) Application and license........................................................................ $125
(b) Appointment fee for each insurer........................................................... 15
(c) Triennial renewal of each license.......................................................... 125
8. Adjusters licenses and renewals:
(a) Independent and public adjusters:
(1) Application and license ................................................................. $125
(2) Triennial renewal of each license.................................................... 125
(b) Associate adjusters:
(1) Application and license ................................................................... 125
(2) Triennial renewal of each license.................................................... 125
9. Licenses and renewals for appraisers of physical damage to motor vehicles:
(a) Application and license ....................................................................... $125
(b) Triennial renewal of each license.......................................................... 125
10. Additional title and property insurers pursuant to NRS 680A.240:
(a) Original registration.................................................................................. $50
(b) Annual renewal........................................................................................... 25
11. Insurance vending machines:
(a) Application and license, for each machine....................................... $125
(b) Triennial renewal of each license.......................................................... 125
12. Permit for solicitation for securities:
(a) Application for permit.......................................................................... $100
(b) Extension of permit................................................................................... 50
13. Securities salesmen for domestic insurers:
(a) Application and license .......................................................................... $25
(b) Annual renewal of license......................................................................... 15
14. Rating organizations:
(a) Application and license ....................................................................... $500
(b) Annual renewal........................................................................................ 500
15. Certificates and renewals for administrators licensed pursuant to chapter 683A of NRS:
(a) Application and certificate of registration ....................................... $125
(b) Triennial renewal...................................................................................... 125
16. For copies of the insurance laws of Nevada, a fee which is not less than the cost of producing the copies.
17. Certified copies of certificates of authority and licenses issued pursuant to the [Insurance] Code $10
18. For copies and amendments of documents on file in the Division, a reasonable charge fixed by the Commissioner, including charges for duplicating or amending the forms and for certifying the copies and affixing the official seal.
19. Letter of clearance for a producer of insurance or other licensee if requested by someone other than the licensee......................................................................... $10
20. Certificate of status as a producer of insurance or other licensee if requested by someone other than the licensee......................................................................... $10
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21. Licenses, appointments and renewals for bail agents:
(a) Application and license ....................................................................... $125
(b) Appointment for each surety insurer...................................................... 15
(c) Triennial renewal of each license.......................................................... 125
22. Licenses and renewals for bail enforcement agents:
(a) Application and license ....................................................................... $125
(b) Triennial renewal of each license.......................................................... 125
23. Licenses, appointments and renewals for general agents for bail:
(a) Application and license ....................................................................... $125
(b) Initial appointment by each insurer........................................................ 15
(c) Triennial renewal of each license.......................................................... 125
24. Licenses and renewals for bail solicitors:
(a) Application and license........................................................................ $125
(b) Triennial renewal of each license.......................................................... 125
25. Licenses and renewals for title agents and escrow officers:
(a) Application and license ....................................................................... $125
(b) Triennial renewal of each license.......................................................... 125
(c) Appointment fee for each title insurer.................................................... 15
(d) Change in name or location of business or in association.................. 10
26. Certificate of authority and renewal for a seller of prepaid funeral contracts $125
27. Licenses and renewals for agents for prepaid funeral contracts:
(a) Application and license ....................................................................... $125
(b) Triennial renewal of each license.......................................................... 125
28. Licenses, appointments and renewals for agents for fraternal benefit societies:
(a) Application and license ....................................................................... $125
(b) Appointment for each insurer.................................................................. 15
(c) Triennial renewal of each license.......................................................... 125
29. Reinsurance intermediary broker or manager:
(a) Application and license........................................................................ $125
(b) Triennial renewal of each license.......................................................... 125
30. Agents for and sellers of prepaid burial contracts:
(a) Application and certificate or license................................................. $125
(b) Triennial renewal...................................................................................... 125
31. Risk retention groups:
(a) Initial registration [and review of an application.............. $2,450] $250
(b) Each annual continuation of a certificate of registration.. [2,450] 250
32. Required filing of forms:
(a) For rates and policies............................................................................... $25
(b) For riders and endorsements.................................................................... 10
33. Viatical settlements:
(a) Provider of viatical settlements:
(1) Application and license............................................................... $1,000
(2) Annual renewal............................................................................... 1,000
(b) Broker of viatical settlements:
κ2005 Statutes of Nevada, Page 2117 (CHAPTER 456, AB 338)κ
(1) Application and license.................................................................. $500
(2) Annual renewal.................................................................................. 500
34. Insurance consultants:
(a) Application and license........................................................................ $125
(b) Triennial renewal...................................................................................... 125
35. Licensees association with or appointment or sponsorship by an organization:
(a) Initial appointment, association or sponsorship, for each organization $50
(b) Renewal of each association or sponsorship........................................ 50
(c) Annual renewal of appointment.............................................................. 15
36. Purchasing groups:
(a) Initial registration and review of an application.............................. $100
(b) Each annual continuation of registration............................................ 100
Sec. 64. NRS 680B.010 is hereby amended to read as follows:
680B.010 The Commissioner shall collect in advance and receipt for, and persons so served must pay to the Commissioner, fees and miscellaneous charges as follows:
1. Insurers certificate of authority:
(a) Filing initial application..................................................................... $2,450
(b) Issuance of certificate:
(1) For any one kind of insurance as defined in NRS 681A.010 to 681A.080, inclusive 283
(2) For two or more kinds of insurance as so defined....................... 578
(3) For a reinsurer................................................................................. 2,450
(c) Each annual continuation of a certificate....................................... 2,450
(d) Reinstatement pursuant to NRS 680A.180, 50 percent of the annual continuation fee otherwise required.
(e) Registration of additional title pursuant to NRS 680A.240................ 50
(f) Annual renewal of the registration of additional title pursuant to NRS 680A.240 25
2. Charter documents, other than those filed with an application for a certificate of authority. Filing amendments to articles of incorporation, charter, bylaws, power of attorney and other constituent documents of the insurer, each document $10
3. Annual statement or report. For filing annual statement or report $25
4. Service of process:
(a) Filing of power of attorney....................................................................... $5
(b) Acceptance of service of process............................................................ 30
5. Licenses, appointments and renewals for producers of insurance:
(a) Application and license........................................................................ $125
(b) Appointment fee for each insurer........................................................... 15
(c) Triennial renewal of each license.......................................................... 125
(d) Temporary license...................................................................................... 10
(e) Modification of an existing license......................................................... 50
6. Surplus lines brokers:
(a) Application and license........................................................................ $125
(b) Triennial renewal of each license.......................................................... 125
κ2005 Statutes of Nevada, Page 2118 (CHAPTER 456, AB 338)κ
7. Managing general agents licenses, appointments and renewals:
(a) Application and license........................................................................ $125
(b) Appointment fee for each insurer........................................................... 15
(c) Triennial renewal of each license.......................................................... 125
8. Adjusters licenses and renewals:
(a) Independent and public adjusters:
(1) Application and license.................................................................. $125
(2) Triennial renewal of each license.................................................... 125
(b) Associate adjusters:
(1) Application and license.................................................................... 125
(2) Triennial renewal of each license.................................................... 125
9. Licenses and renewals for appraisers of physical damage to motor vehicles:
(a) Application and license........................................................................ $125
(b) Triennial renewal of each license.......................................................... 125
10. Additional title and property insurers pursuant to NRS 680A.240:
(a) Original registration.................................................................................. $50
(b) Annual renewal........................................................................................... 25
11. Insurance vending machines:
(a) Application and license, for each machine....................................... $125
(b) Triennial renewal of each license.......................................................... 125
12. Permit for solicitation for securities:
(a) Application for permit.......................................................................... $100
(b) Extension of permit................................................................................... 50
13. Securities salesmen for domestic insurers:
(a) Application and license........................................................................... $25
(b) Annual renewal of license......................................................................... 15
14. Rating organizations:
(a) Application and license........................................................................ $500
(b) Annual renewal........................................................................................ 500
15. Certificates and renewals for administrators licensed pursuant to chapter 683A of NRS:
(a) Application and certificate of registration........................................ $125
(b) Triennial renewal...................................................................................... 125
16. For copies of the insurance laws of Nevada, a fee which is not less than the cost of producing the copies.
17. Certified copies of certificates of authority and licenses issued pursuant to the Code $10
18. For copies and amendments of documents on file in the Division, a reasonable charge fixed by the Commissioner, including charges for duplicating or amending the forms and for certifying the copies and affixing the official seal.
19. Letter of clearance for a producer of insurance or other licensee if requested by someone other than the licensee......................................................................... $10
20. Certificate of status as a producer of insurance or other licensee if requested by someone other than the licensee......................................................................... $10
κ2005 Statutes of Nevada, Page 2119 (CHAPTER 456, AB 338)κ
21. Licenses, appointments and renewals for bail agents:
(a) Application and license........................................................................ $125
(b) Appointment for each surety insurer...................................................... 15
(c) Triennial renewal of each license.......................................................... 125
22. Licenses and renewals for bail enforcement agents:
(a) Application and license........................................................................ $125
(b) Triennial renewal of each license.......................................................... 125
23. Licenses, appointments and renewals for general agents for bail:
(a) Application and license........................................................................ $125
(b) Initial appointment by each insurer........................................................ 15
(c) Triennial renewal of each license.......................................................... 125
24. Licenses and renewals for bail solicitors:
(a) Application and license........................................................................ $125
(b) Triennial renewal of each license.......................................................... 125
25. Licenses and renewals for title agents and escrow officers:
(a) Application and license ....................................................................... $125
(b) Triennial renewal of each license.......................................................... 125
(c) Appointment fee for each title insurer.................................................... 15
(d) Change in name or location of business or in association.................. 10
26. Certificate of authority and renewal for a seller of prepaid funeral contracts $125
27. Licenses and renewals for agents for prepaid funeral contracts:
(a) Application and license........................................................................ $125
(b) Triennial renewal of each license.......................................................... 125
28. Licenses, appointments and renewals for agents for fraternal benefit societies:
(a) Application and license........................................................................ $125
(b) Appointment for each insurer.................................................................. 15
(c) Triennial renewal of each license.......................................................... 125
29. Reinsurance intermediary broker or manager:
(a) Application and license........................................................................ $125
(b) Triennial renewal of each license.......................................................... 125
30. Agents for and sellers of prepaid burial contracts:
(a) Application and certificate or license................................................. $125
(b) Triennial renewal...................................................................................... 125
31. Risk retention groups:
(a) Initial registration................................................................................... $250
(b) Each annual continuation of a certificate of registration................ 250
32. Required filing of forms:
(a) For rates and policies............................................................................... $25
(b) For riders and endorsements.................................................................... 10
33. Viatical settlements:
(a) Provider of viatical settlements:
(1) Application and license............................................................... $1,000
(2) Annual renewal............................................................................... 1,000
(b) Broker of viatical settlements:
κ2005 Statutes of Nevada, Page 2120 (CHAPTER 456, AB 338)κ
(1) Application and license.................................................................. $500
(2) Annual renewal.................................................................................. 500
(c) Registration of producer of insurance acting as a viatical settlement broker 250
34. Insurance consultants:
(a) Application and license........................................................................ $125
(b) Triennial renewal...................................................................................... 125
35. Licensees association with or appointment or sponsorship by an organization:
(a) Initial appointment, association or sponsorship, for each organization $50
(b) Renewal of each association or sponsorship........................................ 50
(c) Annual renewal of appointment.............................................................. 15
36. Purchasing groups:
(a) Initial registration and review of an application.............................. $100
(b) Each annual continuation of registration............................................ 100
Sec. 65. NRS 680B.027 is hereby amended to read as follows:
680B.027 1. Except as otherwise provided in NRS 680B.033, 680B.050 and 690C.110, and section 62 of this act, for the privilege of transacting business in this State, each insurer shall pay to the Department of Taxation a tax upon his net direct premiums and net direct considerations written at the rate of 3.5 percent.
2. The tax must be paid in the manner required by NRS 680B.030 and 680B.032.
3. The Commissioner or the Executive Director of the Department of Taxation may require at any time verified supplemental statements with reference to any matter pertinent to the proper assessment of the tax.
Sec. 66. NRS 682A.180 is hereby amended to read as follows:
682A.180 An insurer may lend and thereby invest its funds upon the pledge of securities eligible for investment under this chapter. As of the date made, [no such loan shall] the loan must not exceed in amount 90 percent of the market value of [such] the collateral pledged. [The amount so loaned shall be included pro rata in determining the maximum percentage of funds permitted under this chapter to be invested in the respective categories of securities so pledged.]
Sec. 67. NRS 682A.200 is hereby amended to read as follows:
682A.200 1. An insurer may make loans or investments not otherwise expressly permitted under this chapter, in an aggregate amount not over 10 percent of the insurers admitted assets and not over [1] 5 percent of those assets as to any one such loan or investment, if the loan or investment fulfills the requirements of NRS 682A.030 and otherwise qualifies as a sound investment. No such loan or investment may be represented by:
(a) Any item described in NRS 681B.020, or any loan or investment otherwise expressly prohibited.
(b) Agents balances, or amounts advanced to or owing by agents, except as to policy loans, mortgage loans and collateral loans otherwise authorized under this chapter.
(c) Any category of loans or investments expressly eligible under any other provision of this chapter.
(d) Any asset acquired or held by the insurer under any other category of loans or investments eligible under this chapter.
κ2005 Statutes of Nevada, Page 2121 (CHAPTER 456, AB 338)κ
2. The insurer shall keep a separate record of all loans and investments made under this section.
Sec. 68. NRS 682A.230 is hereby amended to read as follows:
682A.230 1. An insurer may invest in bonds or notes secured by mortgages or deeds of trust representing first or second liens upon [unencumbered] real property located in this or another state, or in Canada, subject to the following conditions:
(a) The amount loaned, or the aggregate amount of bonds issued upon the security of a mortgage or deed of trust, [shall] must not at the time of the investment exceed [75] 85 percent of the fair market value of the real property. The value of the property [shall] must be substantiated by the appraisal of a recognized or experienced real estate appraiser acceptable to the Commissioner. Before making the investment, a certificate of the value of the property, based on [such appraisal, shall] the appraisal, must be executed by the insurers board of directors or by an investment committee of the board of directors making or authorizing the investment on the insurers behalf.
(b) There [shall] must have been no default as to payment of any part of the principal or interest of any such bond or note.
(c) The total investment in any one such note, or bond or bonds secured by the same real property, [shall] must not exceed [$30,000 or 2] $100,000 or 5 percent of the insurers assets, whichever is [the] greater.
(d) In applying the limitation under paragraph (a), there may be excluded from the amount invested that portion of the investment which is guaranteed by the Executive Director for Veterans Services pursuant to the Servicemens Readjustment Act of 1944, as amended, or insured by the Federal Housing Administrator or other agency of the Government of the United States, or by an agency of the Government of Canada.
2. Improved real property means all farmland which has been reclaimed and is used for the purpose of husbandry, whether for tillage or pasture, and all real property within the limits of an incorporated village, town or city on which permanent buildings suitable for residence or commercial use are situated.
3. For the purposes of this section , real property shall not be deemed to be encumbered:
(a) By reason of the existence of taxes or assessments which are not delinquent, instruments creating or reserving mineral, oil or timber rights, rights-of-way, joint driveways, sewer rights, rights in walls, or by reason of building restrictions or other restrictive covenants; or
(b) When such real property is subject to lease in whole or in part whereby rents or profits are reserved to the owner, if the security for such investment is a full and unrestricted first lien upon such real property and there is no condition or right of reentry or forfeiture under which such investments can be cut off, subordinated or otherwise disturbed.
Sec. 69. Chapter 683A of NRS is hereby amended by adding thereto a new section to read as follows:
1. A producer of insurance who is appointed as an agent may pay a commission or compensation for or on account of the selling, soliciting, procuring or negotiating of insurance in this State only to a licensed and appointed producer of insurance of the insurer with whom insurance was placed or to a licensed producer acting as a broker.
κ2005 Statutes of Nevada, Page 2122 (CHAPTER 456, AB 338)κ
2. A licensee shall not accept any commission or compensation to which he is not entitled pursuant to the provisions of this title.
Sec. 70. NRS 683A.251 is hereby amended to read as follows:
683A.251 1. The Commissioner shall prescribe the form of application by a natural person for a license as a resident producer of insurance. The applicant must declare, under penalty of refusal to issue, or suspension or revocation of, the license, that the statements made in the application are true, correct and complete to the best of his knowledge and belief. Before approving the application, the Commissioner must find that the applicant has:
(a) Attained the age of 18 years;
(b) Not committed any act that is a ground for refusal to issue, or suspension or revocation of, a license;
(c) Completed a course of study for the lines of authority for which the application is made, unless the applicant is exempt from this requirement;
(d) Paid the fee prescribed for the license and a fee established by the Commissioner of not more than $15 for deposit in the Insurance Recovery Account, neither of which may be refunded; and
(e) Successfully passed the examinations for the lines of authority for which application is made, unless the applicant is exempt from this requirement.
2. A business organization must be licensed as a producer of insurance in order to act as such. Application must be made on a form prescribed by the Commissioner. Before approving the application, the Commissioner must find that the applicant has:
(a) Paid the fee prescribed for the license and a fee established by the Commissioner of not more than $15 for deposit in the Insurance Recovery Account, neither of which may be refunded; and
(b) Designated a natural person who is licensed as a producer of insurance and who is affiliated with the business organization to be responsible for the organizations compliance with the laws and regulations of this State relating to insurance.
3. A natural person who is a resident of this State applying for a license must furnish a [copy of a search concerning him conducted by the Federal Bureau of Investigation in its national criminal records and of a search concerning him of] complete set of his fingerprints which the Commissioner may forward to the Central Repository for Nevada Records of Criminal History [.] for submission to the Federal Bureau of Investigation for its report. The Commissioner shall adopt regulations concerning the procedures for obtaining this information.
4. The Commissioner may require any document reasonably necessary to verify information contained in an application.
Sec. 70.3. NRS 683A.261 is hereby amended to read as follows:
683A.261 1. Unless the Commissioner refuses to issue the license under NRS 683A.451, he shall issue a license as a producer of insurance to a person who has satisfied the requirements of NRS 683A.241 and 683A.251. A producer of insurance may qualify for a license in one or more of the lines of authority permitted by statute or regulation, including:
(a) Life insurance on human lives, which includes benefits from endowments and annuities and may include additional benefits from death by accident and benefits for dismemberment by accident and for disability.
κ2005 Statutes of Nevada, Page 2123 (CHAPTER 456, AB 338)κ
(b) Health insurance for sickness, bodily injury or accidental death, which may include benefits for disability.
(c) Property insurance for direct or consequential loss or damage to property of every kind.
(d) Casualty insurance against legal liability, including liability for death, injury or disability and damage to real or personal property.
(e) Surety indemnifying financial institutions or providing bonds for fidelity, performance of contracts or financial guaranty.
(f) Variable annuities and variable life insurance, including coverage reflecting the results of a separate investment account.
(g) Credit insurance, including life, disability, property, unemployment, involuntary unemployment, mortgage life, mortgage guaranty, mortgage disability, guaranteed protection of assets, and any other form of insurance offered in connection with an extension of credit that is limited to wholly or partially extinguishing the obligation which the Commissioner determines should be considered as limited-line credit insurance.
(h) Personal lines, consisting of automobile and motorcycle insurance and residential property insurance, including coverage for flood, of personal watercraft and of excess liability, written over one or more underlying policies of automobile or residential property insurance.
(i) Fixed annuities as a limited line.
(j) Travel and baggage as a limited line.
(k) Rental car agency as a limited line.
2. A license as a producer of insurance remains in effect unless revoked, suspended or otherwise terminated if a request for a renewal is submitted on or before the date for the renewal specified on the license, the fee for renewal and a fee established by the Commissioner of not more than $15 for deposit in the Insurance Recovery Account are paid for each license and each affiliation with a business organization licensed pursuant to subsection 2 of NRS 683A.251, and any requirement for education or any other requirement to renew the license is satisfied by the date specified on the license for the renewal. A producer of insurance may submit a request for a renewal of his license within 30 days after the date specified on the license for the renewal if the producer of insurance otherwise complies with the provisions of this subsection and pays, in addition to any fee paid pursuant to this subsection, a penalty of 50 percent of the renewal fee. A license as a producer of insurance expires if the Commissioner receives a request for a renewal of the license more than 30 days after the date specified on the license for the renewal. A fee paid pursuant to this subsection is nonrefundable.
3. A natural person who allows his license as a producer of insurance to expire may reapply for the same license within 12 months after the date specified on the license for a renewal without passing a written examination or completing a course of study required by paragraph (c) of subsection 1 of NRS 683A.251, but a penalty of twice the renewal fee is required for any request for a renewal of the license that is received after the date specified on the license for the renewal.
4. A licensed producer of insurance who is unable to renew his 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.
κ2005 Statutes of Nevada, Page 2124 (CHAPTER 456, AB 338)κ
5. A license must state the licensees name, address, personal identification number, the date of issuance, the lines of authority and the date of expiration and must contain any other information the Commissioner considers necessary. A resident producer of insurance shall maintain a place of business in this State which is accessible to the public and where he principally conducts transactions under his license. The place of business may be in his residence. The license must be conspicuously displayed in an area of the place of business which is open to the public.
6. A licensee shall inform the Commissioner of each change of location from which he conducts business as a producer of insurance and each change of business or residence address, in writing or by other means acceptable to the Commissioner, within 30 days after the change. If a licensee changes the location from which he conducts business as a producer of insurance or his business or residence address without giving written notice and the Commissioner is unable to locate the licensee after diligent effort, he may revoke the license without a hearing. The mailing of a letter by certified mail, return receipt requested, addressed to the licensee at his last mailing address appearing on the records of the Division, and the return of the letter undelivered, constitutes a diligent effort by the Commissioner.
Sec. 70.7. NRS 683A.271 is hereby amended to read as follows:
683A.271 1. Unless the Commissioner refuses to issue the license under NRS 683A.451, the Commissioner shall issue a license as a producer of insurance to a nonresident person if:
(a) He is currently licensed as a resident and in good standing in his home state;
(b) He has made the proper request for licensure and paid the fee prescribed for the license and a fee established by the Commissioner of not more than $15 for deposit in the Insurance Recovery Account;
(c) He has sent to the Commissioner the application for licensure that he made in his home state, or a completed uniform application; and
(d) His home state issues nonresident licenses as producers of insurance to residents of this State pursuant to substantially the same procedure.
2. The Commissioner may participate with the National Association of Insurance Commissioners or a subsidiary in a centralized registry in which licensing and appointment of producers of insurance may be effected for all states that require licensing and participate in the registry. If he finds that participation is in the public interest, he may adopt by regulation any uniform standards and procedures necessary for participation, including central collection of fees for licensing and appointment that are handled through the registry.
3. A nonresident producer who moves from one state to another state shall file a change of address and certification from his new state of residence within 30 days after his change of legal residence. No fee or application for license is required.
4. A nonresident licensed as a producer for surplus lines in his home state must be issued a nonresident license of that kind in this State pursuant to subsection 1, subject in all other respects to chapter 685A of NRS. A nonresident licensed as a producer for limited lines in his home state is entitled to a nonresident license of that kind in this State pursuant to subsection 1, granting the same scope of authority as the license issued in the home state. As used in this subsection, insurance for limited lines is authority granted by the home state which is restricted to less than the total authority prescribed for the associated major lines pursuant to NRS 683A.261.
κ2005 Statutes of Nevada, Page 2125 (CHAPTER 456, AB 338)κ
granted by the home state which is restricted to less than the total authority prescribed for the associated major lines pursuant to NRS 683A.261.
Sec. 71. NRS 683A.361 is hereby amended to read as follows:
683A.361 1. An insurer or a producer of insurance shall not pay a commission, brokerage, fee for service or other valuable consideration to a person for selling, soliciting or negotiating insurance in this State if his activities require him to be licensed under this title and he is not so licensed.
2. A person shall not accept a commission, brokerage, fee for service or other valuable consideration for selling, soliciting or negotiating insurance in this State if his activities require him to be licensed under this title and he is not so licensed.
3. Commissions for renewal and other deferred commissions may be paid to a person whose activities required him to be licensed under this title at the time of the sale, solicitation or negotiation and he was so licensed at that time.
4. An insurer or producer of insurance may pay or assign commissions, brokerage, fees for service or other valuable considerations to [an insurance agency or] a person who does not sell, solicit or negotiate insurance in this State unless the payment would violate the provisions of NRS 686A.110 or 686A.120.
5. An insurer shall not pay a commission, directly or indirectly, to a producer of insurance for selling, soliciting or negotiating insurance in this State unless the producer of insurance is appointed as an agent of the insurer as provided in NRS 683A.321. This subsection does not apply to a broker for reinsurance or to business placed pursuant to subsection 3, NRS 685A.155 or section 69 of this act, or contracts entered into pursuant to NRS 693A.110 which are approved by the Commissioner.
6. A producer of insurance shall not accept a commission from an insurer for selling, soliciting or negotiating insurance in this State unless he is appointed as an agent of the insurer as provided in NRS 683A.321. This subsection does not apply to a broker for reinsurance or to business placed pursuant to subsection 3, NRS 685A.155 or section 69 of this act, or contracts entered into pursuant to NRS 693A.110 which are approved by the Commissioner.
7. As used in this section, broker for reinsurance has the meaning ascribed to it in NRS 681A.280.
Sec. 71.1. NRS 683C.030 is hereby amended to read as follows:
683C.030 1. An application for a license to act as an insurance consultant must be submitted to the Commissioner on forms prescribed by the Commissioner and must be accompanied by the applicable license fee set forth in NRS 680B.010 and an additional fee established by the Commissioner of not more than $15 which must be deposited in the Insurance Recovery Account created pursuant to NRS 679B.305. The license fee and the additional fee are not refundable. If the applicant is a natural person, the application must include the social security number of the applicant.
2. An applicant for an insurance consultants license must successfully complete an examination and a course of instruction which the Commissioner shall establish by regulation.
3. Each license issued pursuant to this chapter is valid for 3 years from the date of issuance or until it is suspended, revoked or otherwise terminated.
κ2005 Statutes of Nevada, Page 2126 (CHAPTER 456, AB 338)κ
Sec. 71.3. NRS 683C.030 is hereby amended to read as follows:
683C.030 1. An application for a license to act as an insurance consultant must be made to the Commissioner on forms prescribed by the Commissioner and must be accompanied by the applicable license fee set forth in NRS 680B.010 and an additional fee established by the Commissioner of not more than $15 which must be deposited in the Insurance Recovery Account created pursuant to NRS 679B.305. The license fee and the additional fee are not refundable.
2. An applicant for an insurance consultants license must successfully complete an examination and a course of instruction which the Commissioner shall establish by regulation.
3. Each license issued pursuant to this chapter is valid for 3 years from the date of issuance or until it is suspended, revoked or otherwise terminated.
Sec. 71.5. NRS 683C.035 is hereby amended to read as follows:
683C.035 1. The Commissioner shall prescribe the form of application by a natural person for a license as an insurance consultant. The applicant must declare, under penalty of refusal to issue, or suspension or revocation of, the license, that the statements made in the application are true, correct and complete to the best of his knowledge and belief. Before approving the application, the Commissioner must find that the applicant has:
(a) Attained the age of 18 years.
(b) Not committed any act that is a ground for refusal to issue, or suspension or revocation of, a license pursuant to NRS 683A.451.
(c) Paid the fee prescribed for the license and a fee established by the Commissioner of not more than $15 for deposit in the Insurance Recovery Account, neither of which may be refunded.
(d) Passed each examination required for the license and successfully completed each course of instruction which the Commissioner requires by regulation, unless he is a resident of another state and holds a similar license in that state.
2. A business organization must be licensed as an insurance consultant in order to act as such. Application must be made on a form prescribed by the Commissioner. Before approving the application, the Commissioner must find that the applicant has:
(a) Paid the fee prescribed for the license and a fee established by the Commissioner of not more than $15 for deposit in the Insurance Recovery Account, neither of which may be refunded; and
(b) Designated a natural person who is licensed as an insurance consultant in this State and who is affiliated with the business organization to be responsible for the organizations compliance with the laws and regulations of this State relating to insurance.
3. The Commissioner may require any document reasonably necessary to verify information contained in an application.
4. A license issued pursuant to this chapter is valid for 3 years after the date of issuance or until it is suspended, revoked or otherwise terminated.
5. An insurance consultant may qualify for a license pursuant to this chapter in one or more of the lines of authority set forth in paragraphs (a) to (d), inclusive, of subsection 1 of NRS 683A.261.
Sec. 71.7. NRS 683C.040 is hereby amended to read as follows:
683C.040 1. A license may be renewed for additional 3-year periods by submitting to the Commissioner an application for renewal and:
κ2005 Statutes of Nevada, Page 2127 (CHAPTER 456, AB 338)κ
(a) If the application is made:
(1) On or before the expiration date of the license, the applicable renewal fee and an additional fee established by the Commissioner of not more than $15 for deposit in the Insurance Recovery Account; or
(2) Not more than 30 days after the expiration date of the license, the applicable renewal fee plus any late fee required and an additional fee established by the Commissioner of not more than $15 for deposit in the Insurance Recovery Account;
(b) If the applicant is a natural person, the statement required pursuant to NRS 683C.043; and
(c) If the applicant is a resident, proof of the successful completion of appropriate courses of study required for renewal, as established by the Commissioner by regulation.
2. The fees specified in this section are not refundable.
Sec. 71.9. NRS 683C.040 is hereby amended to read as follows:
683C.040 1. A license may be renewed for additional 3-year periods by submitting to the Commissioner an application for renewal and:
(a) If the application is made:
(1) On or before the expiration date of the license, the applicable renewal fee and an additional fee established by the Commissioner of not more than $15 for deposit in the Insurance Recovery Account; or
(2) Not more than 30 days after the expiration date of the license, the applicable renewal fee plus any late fee required and an additional fee established by the Commissioner of not more than $15 for deposit in the Insurance Recovery Account; and
(b) If the applicant is a resident, proof of the successful completion of appropriate courses of study required for renewal, as established by the Commissioner by regulation.
2. The fees specified in this section are not refundable.
Sec. 72. NRS 684A.070 is hereby amended to read as follows:
684A.070 1. For the protection of the people of this State, the Commissioner may not issue or continue any license as an adjuster except in compliance with the provisions of this chapter. Any person for whom a license is issued or continued must:
(a) Be at least 18 years of age;
(b) Except as otherwise provided in subsection 2, be a resident of this State, and have resided therein for at least 90 days before his application for the license;
(c) Be competent, trustworthy, financially responsible and of good reputation;
(d) Never have been convicted of, or entered a plea of guilty or nolo contendere to, forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud or any crime involving moral turpitude;
(e) Have had at least 2 years recent experience with respect to the handling of loss claims of sufficient character reasonably to enable him to fulfill the responsibilities of an adjuster;
(f) Pass all examinations required under this chapter; and
(g) Not be concurrently licensed as [an agent, broker, solicitor] a producer of insurance for property, casualty or surety or a surplus lines broker, except as a bail agent.
κ2005 Statutes of Nevada, Page 2128 (CHAPTER 456, AB 338)κ
2. The Commissioner may waive the residency requirement set forth in paragraph (b) of subsection 1 if the applicant is:
(a) An adjuster licensed under the laws of another state who has been brought to this State by a firm or corporation with whom he is employed that is licensed as an adjuster in this State to fill a vacancy in the firm or corporation in this State;
(b) An adjuster licensed in an adjoining state whose principal place of business is located within 50 miles from the boundary of this State; or
(c) An adjuster who is applying for a limited license pursuant to NRS 684A.155.
3. A conviction of, or plea of guilty or nolo contendere by, an applicant or licensee for any crime listed in paragraph (d) of subsection 1 is a sufficient ground for the Commissioner to deny a license to the applicant, or to suspend, revoke or limit the license of an adjuster pursuant to NRS 684A.210.
Sec. 73. NRS 684A.080 is hereby amended to read as follows:
684A.080 1. A firm or corporation may be licensed either as an independent adjuster or public adjuster. Each general partner and each other natural person to act for the firm, or each natural person to act for the corporation, must be named in the license [or registered with the Commissioner,] and must qualify as an individual licensee. A natural person who is authorized to act for a firm or corporation and who also wishes to be licensed in an individual capacity must obtain a separate license in his own name. The Commissioner shall charge a full additional fee for each natural person named in [or registered as to] the license.
2. Transaction of business under the license must be within the purposes stated in the firms partnership agreement or the corporations charter.
3. The licensee shall promptly notify the Commissioner in writing of all changes among its members, directors, officers and other natural persons designated in [or registered as to] the license.
Sec. 74. NRS 684A.140 is hereby amended to read as follows:
684A.140 1. Concurrently with an application for a license or for renewal of a license as an adjuster, the applicant or licensee must provide an appointment for each associate adjuster employed by him or to be employed by him contingent upon issuance of the license. Each person who desires to become licensed as an associate adjuster must submit an application to the Commissioner for such a license. The application must include the social security number of the applicant.
2. Upon payment of the appropriate fee, the Commissioner shall issue and deliver to a licensed adjuster a license for each associate authorized by the State to act on behalf of the licensee. The Commissioner shall not issue a license as an associate adjuster to a person who is licensed as [an agent, broker, solicitor] a producer of insurance for property, casualty or surety or a surplus lines broker.
3. The license of an associate adjuster may be renewed upon payment of the applicable fee. His license [expires] terminates at the same time as the license of the employing adjuster [, except that the] unless, within 30 days after the termination of the license, the associate adjuster submits to the Commissioner the applicable fee and a request to be employed by another employing adjuster. The Commissioner shall promptly terminate an associate adjusters license upon written request therefor by the employing adjuster.
κ2005 Statutes of Nevada, Page 2129 (CHAPTER 456, AB 338)κ
associate adjusters license upon written request therefor by the employing adjuster.
4. A person shall not act as or hold himself out in this State to be an associate adjuster unless he holds a current license as such issued to him by the Commissioner. A violation of this provision is a gross misdemeanor.
Sec. 75. NRS 684A.140 is hereby amended to read as follows:
684A.140 1. Concurrently with an application for a license or for renewal of a license as an adjuster, the applicant or licensee must provide an appointment for each associate adjuster employed by him or to be employed by him contingent upon issuance of the license. Each person who desires to become licensed as an associate adjuster must submit an application to the Commissioner for such a license.
2. Upon payment of the appropriate fee, the Commissioner shall issue and deliver to a licensed adjuster a license for each associate authorized by the State to act in behalf of the licensee. The Commissioner shall not issue a license as an associate adjuster to a person who is licensed as [an agent, broker, solicitor] a producer of insurance for property, casualty or surety or a surplus lines broker.
3. The license of an associate adjuster may be renewed upon payment of the applicable fee. His license [expires] terminates at the same time as the license of the employing adjuster [, except that the] unless, not more than 30 days after the termination of the license, the associate adjuster submits to the Commissioner the applicable fee and a request to be employed by another employing adjuster. The Commissioner shall promptly terminate an associate adjusters license upon written request therefor by the employing adjuster.
4. A person shall not act as or hold himself out in this State to be an associate adjuster unless he holds a current license as such issued to him by the Commissioner. A violation of this provision is a gross misdemeanor.
Sec. 75.3. NRS 684A.160 is hereby amended to read as follows:
684A.160 Before the issuance or continuation of an adjusters license the applicant must pay a fee established by the Commissioner of not more than $15 for deposit in the Insurance Recovery Account created by NRS 679B.305.
Sec. 75.5. NRS 685A.120 is hereby amended to read as follows:
685A.120 1. No person may act as, hold himself out as or be a surplus lines broker with respect to subjects of insurance resident, located or to be performed in this State or elsewhere unless he is licensed as such by the Commissioner pursuant to this chapter.
2. Any person who has been licensed by this State as a producer of insurance for general lines for at least 6 months, or has been licensed in another state as a surplus lines broker and continues to be licensed in that state, and who is deemed by the Commissioner to be competent and trustworthy with respect to the handling of surplus lines may be licensed as a surplus lines broker upon:
(a) Application for a license and payment of the applicable fee for a license and a fee established by the Commissioner of not more than $15 for deposit in the Insurance Recovery Account created by NRS 679B.305;
(b) Submitting the statement required pursuant to NRS 685A.127; and
(c) Passing any examination prescribed by the Commissioner on the subject of surplus lines.
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3. An application for a license must be submitted to the Commissioner on a form designated and furnished by him. The application must include the social security number of the applicant.
4. A license issued pursuant to this chapter continues in force for 3 years unless it is suspended, revoked or otherwise terminated. The license may be renewed upon submission of the statement required pursuant to NRS 685A.127 and payment of the applicable fee for renewal and a fee established by the Commissioner of not more than $15 for deposit in the Insurance Recovery Account created by NRS 679B.305 to the Commissioner on or before the last day of the month in which the license is renewable.
5. A license which is not renewed expires at midnight on the last day specified for its renewal. The Commissioner may accept a request for renewal received by him within 30 days after the expiration of the license if the request is accompanied by:
(a) The statement required pursuant to NRS 685A.127;
(b) The applicable fee for renewal;
(c) A penalty in an amount that is equal to 50 percent of the applicable fee for renewal; and
(d) A fee established by the Commissioner of not more than $15 for deposit in the Insurance Recovery Account created by NRS 679B.305.
Sec. 75.7. NRS 685A.120 is hereby amended to read as follows:
685A.120 1. No person may act as, hold himself out as or be a surplus lines broker with respect to subjects of insurance resident, located or to be performed in this State or elsewhere unless he is licensed as such by the Commissioner pursuant to this chapter.
2. Any person who has been licensed by this State as a producer of insurance for general lines for at least 6 months, or has been licensed in another state as a surplus lines broker and continues to be licensed in that state, and who is deemed by the Commissioner to be competent and trustworthy with respect to the handling of surplus lines may be licensed as a surplus lines broker upon:
(a) Application for a license and payment of the applicable fee for a license and a fee established by the Commissioner of not more than $15 for deposit in the Insurance Recovery Account created by NRS 679B.305; and
(b) Passing any examination prescribed by the Commissioner on the subject of surplus lines.
3. Application for the license must be made to the Commissioner on forms designated and furnished by him.
4. A license issued pursuant to this chapter continues in force for 3 years unless it is suspended, revoked or otherwise terminated. The license may be renewed by payment of the applicable fee for renewal and a fee established by the Commissioner of not more than $15 for deposit in the Insurance Recovery Account created by NRS 679B.305 to the Commissioner on or before the last day of the month in which the license is renewable.
5. A license which is not renewed expires at midnight on the last day specified for its renewal. The Commissioner may accept a request for renewal received by him within 30 days after the expiration of the license if the request is accompanied by:
(a) The applicable fee for renewal;
(b) A penalty in an amount that is equal to 50 percent of the applicable fee for renewal; and
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(c) A fee established by the Commissioner of not more than $15 for deposit in the Insurance Recovery Account created by NRS 679B.305.
Sec. 76. NRS 685A.220 is hereby amended to read as follows:
685A.220 In addition to those referred to in other provisions of this chapter, the following provisions of chapter 683A of NRS, to the extent applicable and not inconsistent with the express provisions of this chapter, also apply to surplus lines brokers:
1. NRS 683A.341;
2. NRS 683A.361;
3. NRS 683A.400;
4. NRS 683A.451;
5. NRS 683A.461;
[5.] 6. NRS 683A.480;
[6.] 7. NRS 683A.490; and
[7.] 8. NRS 683A.520.
Sec. 76.5. Chapter 685B of NRS is hereby amended by adding thereto the provisions set forth as sections 77 and 78 of this act.
Sec. 77. Any producer of insurance or surplus lines broker licensed in this State who in this State knowingly represents or aids an unauthorized insurer in violation of the Unauthorized Insurers Act is guilty of a category B felony and shall be punished as provided in NRS 193.130.
Sec. 78. Any insurer who transacts any unauthorized insurance business as set forth in NRS 685B.030 is guilty of a category B felony and shall be punished as provided in NRS 193.130.
Sec. 79. NRS 685B.080 is hereby amended to read as follows:
685B.080 1. Any unauthorized insurer who transacts any unauthorized act of an insurance business as set forth in the Unauthorized Insurers Act may be fined not more than $10,000 for each act or violation.
2. [In addition to any other penalties provided in this Code:
(a) Any producer of insurance or surplus lines broker licensed in this State who in this State knowingly represents or aids an unauthorized insurer in violation of the Unauthorized Insurers Act is guilty of a category C felony and shall be punished as provided in NRS 193.130.
(b) Any person other than a producer of insurance or surplus lines broker licensed in this State who in this State represents or aids an unauthorized insurer in violation of the Unauthorized Insurers Act is guilty of a category C felony and shall be punished as provided in NRS 193.130.
(c) Any person who commits a second or subsequent violation of this section is guilty of a category B felony and shall be punished by imprisonment in the state prison for a minimum term of not less than 1 year and a maximum term of not more than 20 years.
3.] In addition to the penalties provided in subsection [2,] 1, such a violator is liable, personally, jointly and severally with any other person liable therefor, for the payment of premium taxes at the same rate of tax as imposed by law on the premiums of similar coverages written by authorized insurers.
Secs. 80 and 81. (Deleted by amendment.)
Sec. 82. NRS 687A.060 is hereby amended to read as follows:
687A.060 1. The Association:
(a) Is obligated to the extent of the covered claims existing before the determination of insolvency and arising within 30 days after the determination of insolvency, or before the expiration date of the policy if that date is less than 30 days after the determination, or before the insured replaces the policy or on request cancels the policy if he does so within 30 days after the determination.
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determination of insolvency, or before the expiration date of the policy if that date is less than 30 days after the determination, or before the insured replaces the policy or on request cancels the policy if he does so within 30 days after the determination. The obligation of the Association to pay a covered claim is limited to the payment of:
(1) The entire amount of the claim, if the claim is for workers compensation pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS;
(2) Not more than $300,000 for each policy if the claim is for the return of unearned premiums; or
(3) The limit specified in a policy or $300,000, whichever is less, for each occurrence for any covered claim other than a covered claim specified in subparagraph (1) or (2).
(b) Shall be deemed the insurer to the extent of its obligations on the covered claims and to that extent has any rights, duties and obligations of the insolvent insurer as if the insurer had not become insolvent. The rights include, without limitation, the right to seek and obtain any recoverable salvage and to subrogate a covered claim, to the extent that the Association has paid its obligation under the claim.
(c) Shall assess member insurers amounts necessary to pay the obligations of the Association pursuant to paragraph (a) after an insolvency, the expenses of handling covered claims subsequent to an insolvency, the cost of examinations pursuant to NRS 687A.110 and other expenses authorized by this chapter. The assessment of each member insurer must be in the proportion that the net direct written premiums of the member insurer for the calendar year preceding the assessment bear to the net direct written premiums of all member insurers for the same calendar year. Each member insurer must be notified of the assessment not later than 30 days before it is due. No member insurer may be assessed in any year an amount greater than 2 percent of the net direct written premiums of that member insurer for the calendar year preceding the assessment. If the maximum assessment, together with the other assets of the Association, does not provide in any 1 year an amount sufficient to make all necessary payments, the money available may be prorated and the unpaid portion must be paid as soon as money becomes available. The Association may pay claims in any order, including the order in which the claims are received or in groups or categories. The Association may exempt or defer, in whole or in part, the assessment of any member insurer if the assessment would cause the financial statement of the member insurer to reflect amounts of capital or surplus less than the minimum amounts required for a certificate of authority by any jurisdiction in which the member insurer is authorized to transact insurance. During the period of deferment, no dividends may be paid to shareholders or policyholders. Deferred assessments must be paid when payment will not reduce capital or surplus below required minimums. Payments must be refunded to those companies receiving larger assessments because of deferment, or, in the discretion of the company, credited against future assessments. Each member insurer must be allowed a premium tax credit for any amounts paid pursuant to the provisions of this chapter:
(1) For assessments made before January 1, 1993, at the rate of 10 percent per year for 10 successive years beginning March 1, 1996; or
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(2) For assessments made on or after January 1, 1993, at the rate of 20 percent per year for 5 successive years beginning with the calendar year following the calendar year in which the assessments are paid.
(d) Shall investigate claims brought against the fund and adjust, compromise, settle and pay covered claims to the extent of the obligation of the Association and deny any other claims.
(e) Shall notify such persons as the Commissioner directs pursuant to paragraph (a) of subsection 2 of NRS 687A.080.
(f) Shall act on claims through its employees or through one or more member insurers or other persons designated as servicing facilities. Designation of a servicing facility is subject to the approval of the Commissioner, but the designation may be declined by a member insurer.
(g) Shall reimburse each servicing facility for obligations of the Association paid by the facility and for expenses incurred by the facility while handling claims on behalf of the Association and pay the other expenses of the Association authorized by this chapter.
2. The Association may:
(a) Appear in, defend and appeal any action on a claim brought against the Association.
(b) Employ or retain persons necessary to handle claims and perform other duties of the Association.
(c) Borrow money necessary to carry out the purposes of this chapter in accordance with the plan of operation.
(d) Sue or be sued.
(e) Negotiate and become a party to contracts necessary to carry out the purposes of this chapter.
(f) Perform other acts necessary or proper to effectuate the purposes of this chapter.
(g) Perform any administrative acts requested by the Commissioner in furtherance of the purposes of this title and, if the cost of the action is not paid for by the Association or its member insurers, the Nevada Industrial Insurance Act.
(h) If, at the end of any calendar year, the Board of Directors of the Association finds that the assets of the Association exceed its liabilities as estimated by the Board of Directors for the coming year, refund to the member insurers in proportion to the contribution of each that amount by which the assets of the Association exceed the liabilities.
[(h)] (i) Assess each member insurer equally not more than $100 per year for administrative expenses not related to the insolvency of any insurer.
Sec. 83. NRS 687A.080 is hereby amended to read as follows:
687A.080 1. The Commissioner shall:
(a) Notify the Association of the existence of an insolvent insurer not later than 3 days after he receives notice of the determination of insolvency by a court or makes a determination of insolvency pursuant to NRS 687A.107, whichever is earlier.
(b) Upon request of the Board of Directors [,] of the Association, provide the Association with a statement of the net direct written premiums of each member insurer.
2. The Commissioner may:
(a) Require that the Association notify the insureds of the insolvent insurer and any other interested parties of the determination of insolvency and of their rights under this chapter. Such notification must be by mail at their last known address, but if sufficient information for notification by mail is not available, notice by publication in a newspaper of general circulation is sufficient.
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their last known address, but if sufficient information for notification by mail is not available, notice by publication in a newspaper of general circulation is sufficient.
(b) Suspend or revoke, after notice and opportunity for hearing, the certificate of authority to transact insurance in this State of any member insurer which fails to pay an assessment when due or fails to comply with the plan of operation. As an alternative, the Commissioner may levy a fine on any member insurer which fails to pay an assessment when due. The fine must not exceed 5 percent of the unpaid assessment per month, except that no fine may be less than $100 per month.
(c) Revoke the designation of any servicing facility if he finds claims are being acted upon unsatisfactorily.
(d) Request the Association to perform any acts specified in paragraph (g) of subsection 2 of NRS 687A.060.
Sec. 84. NRS 687B.325 is hereby amended to read as follows:
687B.325 1. No policy of industrial insurance that has been in effect for at least 70 days or that has been renewed may be cancelled by the insurer before the expiration of the agreed term or 1 year [from] after the effective date of the policy or renewal, whichever occurs first, except on any one of the following grounds:
(a) A failure by the policyholder to pay a premium for the policy of industrial insurance when due [;] , including the failure of the policyholder to remit an amount due because of an endorsement for a deductible;
(b) A failure by the policyholder to:
(1) Report any payroll;
(2) Allow the insurer to audit any payroll in accordance with the terms of the policy or any previous policy issued by the insurer; or
(3) Pay any additional premium charged because of an audit of any payroll as required by the terms of the policy or any previous policy issued by the insurer;
(c) A material failure by the policyholder to comply with any federal or state order concerning safety or any written recommendation of the insurers designated representative for loss control;
(d) A material change in ownership of the policyholder or any change in the policyholders business or operations that:
(1) Materially increases the hazard for frequency or severity of loss;
(2) Requires additional or different classifications for the calculation of premiums; or
(3) Contemplates an activity that is excluded by any reinsurance treaty of the insurer;
(e) A material misrepresentation made by the policyholder; or
(f) A failure by the policyholder to cooperate with the insurer in conducting an investigation of a claim.
2. An insurer shall not cancel a policy of industrial insurance pursuant to paragraph (a) [, (b), (e) or (f)] of subsection 1 except upon 10 days written notice submitted by the insurer to the policyholder.
3. Except as otherwise provided in this subsection, an insurer shall not cancel a policy of industrial insurance pursuant to paragraph (b), (c) , [or] (d) , (e) or (f) of subsection 1 except upon 30 days written notice by the insurer to the policyholder. An insurer is not required to provide a written notice to a policyholder pursuant to this subsection if the policyholder and the insurer consent to the cancellation of the policy of industrial insurance and to the reissuance of another policy of industrial insurance effective upon a material change in the ownership or operations of the insured.
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reissuance of another policy of industrial insurance effective upon a material change in the ownership or operations of the insured. If the policyholder corrects the condition to the satisfaction of the insurer within the period specified in the policy of insurance, the insurer shall not cancel the policy.
4. Any written notice submitted to a policyholder pursuant to this section must be given by first-class mail addressed to the policyholder at the address of the policyholder set forth in the policy of industrial insurance. Evidence indicating that a written notice specified in this section has been mailed is sufficient proof of notice.
5. The provisions of this section do not prohibit, during any period in which a policy of industrial insurance is in force, any change in the premium rate required or authorized by any law, regulation or order of the Commissioner, or otherwise agreed upon by the policyholder and the insurer.
6. For the purposes of this section, any policy of industrial insurance that is written for a term of more than 1 year, or any policy of industrial insurance with no fixed date of expiration, shall be deemed to be written for successive periods of 1 year.
Sec. 85. Chapter 688C of NRS is hereby amended by adding thereto a new section to read as follows:
1. A natural person who has been licensed for at least 1 year and who is in good standing as a resident or nonresident producer of insurance with a life insurance qualification is not required to be licensed as a broker of viatical settlements.
2. A licensed producer of insurance specified in subsection 1 must register with the Division not more than 30 days after first operating as a broker of viatical settlements, on a form prescribed by the Commissioner, and pay the fee for registration pursuant to NRS 680B.010. Failure to register within the required period or late payment of or failure to pay the fee may result in the imposition of an administrative fine of not more than $500.
3. A producer of insurance who acts as a broker of viatical settlements pursuant to subsection 1 shall comply with the provisions of NRS 688C.220 to 688C.250, inclusive, and 688C.310.
Sec. 86. NRS 688C.170 is hereby amended to read as follows:
688C.170 The Commissioner may adopt regulations to:
1. Establish standards for evaluating the reasonableness of payments under viatical settlements to persons chronically or terminally ill, including the regulation of the rates of discount used to determine the amount paid in exchange for an assignment, transfer, sale or devise of a benefit under a policy.
2. Require a bond or otherwise ensure financial accountability of providers and brokers of viatical settlements.
3. Govern the relationship of insurers with providers and brokers of viatical settlements during the viatication of a policy.
4. Establish standards and requirements for licensing and registering producers of insurance acting as brokers of viatical settlements.
Sec. 87. NRS 688C.190 is hereby amended to read as follows:
688C.190 1. [A] Except as otherwise provided in section 85 of this act, a person shall not, without first obtaining a license from the Commissioner, operate in or from this State as a provider or broker of viatical settlements.
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2. Application for a license must be made to the Commissioner on a form prescribed by him, accompanied by the prescribed fee. A license may be renewed from year to year on its anniversary by payment of the prescribed fee. The license expires if the fee is not paid by that date.
3. An applicant shall provide information on forms required by the Commissioner, who may at any time require the applicant to disclose the identity of all stockholders, partners, members, officers and employees. The Commissioner may refuse to issue a license to an organization if he is not satisfied that a stockholder, partner, member or officer who may materially influence the applicants conduct satisfies the requirements of this chapter.
4. A license issued to an organization authorizes all partners, members, officers and designated employees to act as providers or brokers of viatical settlements. Those persons must be named in the application or a supplement to it.
Sec. 87.5. Chapter 689A of NRS is hereby amended by adding thereto the provisions set forth as sections 88 and 88.5 of this act.
Sec. 88. Exclusion for a preexisting condition means:
1. Any limitation or exclusion of benefits relating to a condition that was present before the date coverage was first provided, regardless of whether any medical advice, diagnosis, care or treatment was recommended or received before that date; or
2. Any exclusion applicable to an individual based on any information relating to the status of an individuals health that was obtained before the date coverage was first provided, including, without limitation, any identification of a condition resulting from:
(a) A pre-enrollment questionnaire or physical examination provided to the individual; or
(b) A review of any medical records relating to the period of pre-enrollment.
Sec. 88.5. An insurer may, subject to regulation by the Commissioner, offer a policy of health insurance that has a high deductible and is in compliance with 26 U.S.C. § 223 for the purposes of establishing a health savings account.
Sec. 89. NRS 689A.470 is hereby amended to read as follows:
689A.470 As used in NRS 689A.470 to 689A.740, inclusive, and section 88 of this act, unless the context otherwise requires, the words and terms defined in NRS 689A.475 to 689A.605, inclusive, and section 88 of this act, have the meanings ascribed to them in those sections.
Sec. 89.5. Chapter 689B of NRS is hereby amended by adding thereto the provisions set forth as sections 90 and 90.3 of this act.
Sec. 90. Coverage provided under a conversion health benefit plan must be renewed by the carrier that issued the plan, at the option of the person covered under the health benefit plan, unless:
1. The person failed to pay premiums or contributions in accordance with the terms of the health benefit plan or the individual carrier has not received timely premium payments;
2. The person committed an act or practice that constitutes fraud or has made an intentional misrepresentation of material fact under the terms of the coverage; or
3. The carrier who is obligated to offer a conversion health benefit plan pursuant to NRS 689B.590 or a health maintenance organization organized pursuant to chapter 695C of NRS decides to discontinue offering and renewing all health benefit plans delivered or issued for delivery in this State.
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and renewing all health benefit plans delivered or issued for delivery in this State. If the carrier or health maintenance organization decides to discontinue offering and renewing those plans, the carrier or health maintenance organization shall:
(a) Provide notice of its intention to the Commissioner and the chief regulatory officer for insurance in each state in which the carrier or health maintenance organization is licensed to transact insurance at least 60 days before the date on which notice of cancellation or nonrenewal is delivered or mailed to the persons covered by the insurance to be discontinued;
(b) Provide notice of its intention at least 180 days before the renewal of any conversion health benefit plan to all persons covered under its conversion health benefit plans and to the Commissioner and the chief regulatory officer for insurance in each state in which the carrier or health maintenance organization is licensed to transact insurance; and
(c) Discontinue all group health insurance delivered or issued for delivery to persons in this State and not renew coverage under any policy of group health insurance issued to those persons.
Sec. 90.3. An insurer may, subject to regulation by the Commissioner, offer a policy of health insurance that has a high deductible and is in compliance with 26 U.S.C. § 223 for the purposes of establishing a health savings account.
Sec. 90.7. Chapter 689C of NRS is hereby amended by adding thereto a new section to read as follows:
A carrier may, subject to regulation by the Commissioner, offer a policy of health insurance that has a high deductible and is in compliance with 26 U.S.C. § 223 for the purposes of establishing a health savings account.
Sec. 91. Chapter 690A of NRS is hereby amended by adding thereto the provisions set forth as sections 92 to 114, inclusive, of this act.
Sec. 92. (Deleted by amendment.)
Sec. 93. Credit accident and health insurance means insurance on a debtor to provide indemnity for payments or debt becoming due on a specific loan or other credit transaction while the debtor is disabled as defined in the policy.
Sec. 94. Credit transaction means any transaction for which the terms of repayment of money loaned or loan commitment made, or payment of goods, services or properties sold or leased, is to be made at a future date or dates.
Sec. 95. Credit unemployment insurance means insurance on a debtor to provide indemnity for payments or a debt becoming due on a specific loan or other credit transaction while the debtor is involuntarily unemployed as defined in the policy.
Sec. 96. Gross debt means the sum of the remaining payments owed to a creditor by a debtor.
Sec. 97. Identifiable charge means a charge for consumer credit insurance that is made to debtors who have that insurance and not made to debtors who do not have that insurance. The term includes a charge for insurance that is disclosed in the credit agreement or other instrument furnished to the debtor which sets forth the financial elements of the credit transaction and any difference in the finance, interest, service or other similar charge made to debtors who are in similar circumstances except for the insured or noninsured status of the debtor or of the property used as security for the credit transaction.
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Sec. 98. Net debt means the amount required to liquidate the remaining debt in a single lump-sum payment, excluding all unearned interest and other unearned finance charges.
Sec. 99. Open-end credit means credit extended by a creditor under an agreement in which:
1. The creditor reasonably contemplates repeated transactions;
2. The creditor periodically imposes a finance charge on any outstanding unpaid balance; and
3. The amount of credit that may be extended to the debtor during the term of the agreement up to any limit set by the creditor is generally made available to the extent that any outstanding balance is repaid.
Sec. 100. The types of consumer credit insurance defined in this chapter may be written separately or in combination with other types of consumer credit insurance on an individual policy or group policy basis. The Commissioner may by regulation prohibit or limit any combination.
Sec. 101. 1. Except as otherwise provided in this section, the amount of credit life insurance must not exceed the greater of the actual net debt or the scheduled net debt.
2. If coverage is written on the actual net debt, the amount payable at the time of loss must not be less than the actual net debt less any payments that are more than 2 months past due.
3. If the coverage is written on any scheduled net debt, the amount payable at the time of loss must not be less than:
(a) If the actual net debt is less than or equal to the scheduled net debt, the scheduled net debt;
(b) If the actual net debt is greater than the scheduled net debt but less than or equal to the scheduled net debt plus 2 months of payments, the actual net debt; or
(c) If the actual net debt is greater than the scheduled net debt plus 2 months of payments, the scheduled net debt plus 2 months of payments.
4. If a premium is assessed to the debtor on a monthly basis and is based on the actual net debt, the amount payable at the time of loss must not be less than the actual net debt on the date of death. If the premium is based on a balance that does not include accrued past due interest, the amount payable at the time of loss must not be less than the actual net debt less any accrued interest that is more than 2 months past due.
5. Insurance on agricultural loan commitments that do not exceed 1 year in duration may be written for not more than the amount of the loan on a nondecreasing or level term plan.
6. Insurance on educational loan commitments may be written for the net unpaid debt plus any unused commitment.
7. Coverage may be written for less than the net debt through the following methods:
(a) The amount of insurance may be the lesser of a stated level amount and the amount determined in accordance with subsection 2;
(b) The amount of insurance may be the lesser of a stated level amount and the amount determined in accordance with subsection 3;
(c) The amount of insurance may be a constant percentage of the amount determined in accordance with subsection 2;
(d) The amount of insurance may be a constant percentage of the amount determined in accordance with subsection 3; or
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(e) In the absence of any exclusions for a preexisting condition, the amount of insurance payable in the event of death by natural causes may be limited to the balance as it existed 6 months before the date of death if:
(1) There have been one or more increases in the outstanding balance during the 6-month period other than increases resulting from the accrual of interest or late charges; and
(2) Evidence of individual insurability has not been required during the 6-month period.
8. Other kinds of insurance may be used if those kinds are not inconsistent with the provisions of this section.
Sec. 102. 1. Except as otherwise provided in this section, for consumer credit insurance that is made available to and elected by a debtor before or with the credit transaction to which it relates, the term of the insurance must, subject to acceptance by the insurer, commence on the date on which the debtor becomes obligated to the creditor. If the insurer requires evidence of individual insurability and the evidence is provided to the insurer more than 30 days after the date on which the debtor becomes obligated to the creditor, the insurance may commence on the date on which the insurer determines the evidence to be satisfactory.
2. Except as otherwise provided in this section, for consumer credit insurance that is made available to and elected by a debtor after the credit transaction to which it relates, the term of the insurance must, subject to acceptance by the insurer, commence on a date not earlier than the date the election is made by the debtor and not later than 30 days after the date on which the insurance company accepts the risk for coverage. If the coverage does not commence on the date on which the insurance company accepts the risk for coverage, the date that coverage commences must be related to an objective method for determining the date, including, without limitation, the billing cycle, the payment cycle or a calendar month.
3. If a group policy provides coverage with respect to debts existing on the effective date of the policy, the insurance related to a debt must not commence before the effective date of the group policy.
4. A creditor or insurer shall not charge or retain payment from a debtor before commencement of the insurance to which the charge is related.
Sec. 103. 1. The term of any consumer credit insurance must not extend beyond the date of termination specified in the policy. The date of termination of the insurance must not occur more than 15 days after the scheduled maturity date of the debt to which it relates unless:
(a) The date is extended at no additional cost to the debtor; or
(b) The date is extended pursuant to a written agreement signed by the debtor and relates to a variable rate credit transaction or a deferral, renewal, refinancing or consolidation of debt.
2. If a debt is discharged because of any renewal, refinancing or consolidation before the scheduled date of termination of the consumer credit insurance, the insurance must be cancelled before any new consumer credit insurance is written in relation to the renewed, refinanced or consolidated debt.
3. If consumer credit insurance is terminated before the scheduled termination date, unless the insurance is terminated because of the performance by the insurer of all obligations with respect to the insurance, the insurer shall make an appropriate refund or credit to the debtor of any unearned charge that was paid by the debtor.
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the insurer shall make an appropriate refund or credit to the debtor of any unearned charge that was paid by the debtor.
4. A debtor may cancel consumer credit insurance at any time by providing a request to the insurer. The insurer may require the request to be submitted in writing and may require the debtor to surrender any individual policy or group certificate. The right of the debtor to cancel the insurance may be subject to the terms of the credit transaction.
Sec. 104. 1. Before a debtor elects to purchase consumer credit insurance in connection with a credit transaction, the following information must be disclosed to the debtor in writing:
(a) That the purchase of consumer credit insurance from the creditor is not mandatory and is not a condition for obtaining credit approval;
(b) If more than one type of consumer credit insurance is made available to the debtor, whether the debtor may purchase each separately or only as a package;
(c) The conditions of eligibility;
(d) That if the debtor has other insurance that covers the risk, the debtor may not want or need consumer credit insurance;
(e) That the debtor may cancel the insurance at any time, or if evidence of insurance is required for the extension of credit, upon proof of insurance that is acceptable to the creditor, and obtain a refund of or credit for:
(1) If the cancellation is not more than 30 days after the debtor receives the individual policy or certificate of insurance, any premium paid by the debtor; or
(2) If the cancellation is more than 30 days after the debtor receives the individual policy or certificate of insurance, any unearned premium paid by the debtor;
(f) A brief description of the coverage, including a description of the amount, term, exceptions, limitations and exclusions, the insured event, any waiting or elimination period, any deductible, any applicable waiver of premium, the person who would receive any benefits, and the premium or premium rate for the consumer credit insurance; and
(g) If the premium or insurance charge is financed, that it will be subject to finance charges at the rate applicable to the credit transaction.
2. The disclosures required pursuant to subsection 1:
(a) If made in connection with consumer credit insurance offered at the same time as the extension of credit or offered through direct mail advertisements, must be made in writing and presented to the customer in a clear and conspicuous manner; or
(b) If made in connection with consumer credit insurance offered after the extension of credit other than through direct mail advertisements, may be provided orally or electronically if written disclosures are provided not later than the earlier of:
(1) Ten days after the debtor elects to accept the coverage; or
(2) The date any other written material is provided to the debtor.
Sec. 105. 1. All consumer credit insurance must be evidenced by an individual policy or a group certificate that is delivered to the debtor.
2. The individual policy or group certificate must, in addition to other requirements of law, include:
(a) The name and address of the home office of the insurer;
κ2005 Statutes of Nevada, Page 2141 (CHAPTER 456, AB 338)κ
(b) The name of each debtor or, on a certificate of insurance, the identity by name or otherwise of each debtor;
(c) The amount of the premium or payment of the debtor stated separately for each type of coverage or as a package or, for open-end credit, the premium rate, basis of the calculation of premiums and balance to which the premium rate applies;
(d) A complete description of the coverage or coverages, including the amount, term and any exceptions, limitations and exclusions of coverage;
(e) A statement that all benefits must be paid to the creditor to reduce or extinguish the unpaid debt and that if the benefits exceed the unpaid debt, any excess benefit must be paid to the debtor, to a beneficiary, other than the creditor, named by the debtor or to the estate of the debtor; and
(f) If the scheduled term of the insurance is less than the scheduled term of the credit transaction, a statement indicating that fact set forth on the face of the individual policy or certificate of insurance in not less than 10-point bold type.
3. The insurer shall deliver the individual policy or group certificate to the debtor upon acceptance of insurance by the insurer and not more than 30 days after the debtor elects to purchase the insurance. An individual policy or group certificate related to open-end credit or consumer credit insurance that is requested by the debtor after the date of the credit transaction to which it is related shall be deemed to have been delivered at the time the debtor elected to purchase insurance if the actual delivery is made not more than 30 days after the date on which the insurer accepts the insurance.
Sec. 106. 1. If the individual policy or group certificate is not delivered to the debtor at the time the debt is incurred or at such other time as the debtor purchases consumer credit insurance, a copy of the application or a notice of proposed insurance, signed by the debtor, must be delivered to the debtor. The application or notice of proposed insurance must include:
(a) The name and address of the home office of the insurer;
(b) The name of each debtor;
(c) The premium or amount of payment by the debtor for the insurance;
(d) The amount, term and a brief description of the coverage; and
(e) A statement that upon acceptance by the insurer, the insurance will become effective as described in section 102 of this act.
2. The application or notice of insurance provided pursuant to subsection 1 must:
(a) Refer exclusively to consumer credit insurance; and
(b) Be separate from the loan, sale or other credit statement, instrument or agreement unless the information required pursuant to subsection 1 is prominently set forth in the statement, instrument or agreement.
3. The application or notice of insurance provided pursuant to subsection 1 may be used to meet the requirements of sections 104 and 105 of this act if it includes the information required by those sections.
Sec. 107. 1. If a named insurer does not accept the insurance and another insurer accepts the insurance, the insurer shall provide an individual policy or group certificate that includes the name and address of the home office of the insurer who accepted the insurance and the amount of the premium to be charged.
κ2005 Statutes of Nevada, Page 2142 (CHAPTER 456, AB 338)κ
of the premium to be charged. If the premium is less than the premium paid by the debtor, the insurer shall provide a refund of the excess premium not more than 30 days after the date it was paid by the debtor.
2. If a named insurer does not accept the insurance and no other insurer accepts the insurance, a person who received any premium payment related to the insurance shall refund the payment not more than 30 days after the date it was paid by the debtor.
Sec. 108. 1. Except as otherwise provided in sections 109 and 110 of this act, all policies, certificates of insurance, applications for insurance, enrollment forms, endorsements and riders delivered or issued for delivery in this State and the schedules of premium rates related thereto must be filed with the Commissioner.
2. An item filed with the Commissioner pursuant to subsection 1 may not be issued or used until 60 days after it is filed with the Commissioner or until the written prior approval of the Commissioner is obtained.
3. The Commissioner shall, not more than 60 days after an item is submitted to him pursuant to subsection 1, disapprove the item if the benefits are not reasonable in relation to the premium charged or if the item contains provisions that are unjust, unfair, inequitable, misleading or deceptive or encourage misrepresentation of the coverage or are contrary to any provision of the Code or any regulation adopted pursuant to the Code. If the Commissioner does not disapprove an item filed pursuant to subsection 1 in accordance with this subsection, the item shall be deemed to be approved.
4. If the Commissioner notifies an insurer that an item is disapproved pursuant to subsection 3, the insurer shall not use the item. The notice must include the reason for the disapproval and state that a hearing will be granted not more than 30 days after the insurer submits a written request for a hearing to the Commissioner, unless postponed by mutual consent or by order of the Commissioner.
5. The Commissioner may hold a hearing to withdraw approval of an item submitted pursuant to subsection 1 not less than 20 days after providing a written notice of the hearing to the insurer. The written notice must include one of the reasons described in subsection 3 for the proposed withdrawal of approval of the item. An insurer shall not use an item if approval of the item is withdrawn pursuant to this subsection.
Sec. 109. 1. The Commissioner may adopt by regulation forms for use in the issuance of consumer credit insurance, including applications, policies, forms for claims and any other forms required for the sale, issuance and administration of consumer credit insurance. An insurer may elect to use those forms in lieu of any other forms.
2. If an officer of the insurer submits, in the manner prescribed by the Commissioner, a written certification to the Commissioner that the forms used by the insurer are identical to those adopted by the Commissioner, the insurer is not required to file those forms with the Commissioner for approval pursuant to section 108 of this act.
Sec. 110. 1. The Commissioner shall, by regulation, establish reasonable rates as described in this chapter and in accordance with the standards established in NRS 686B.050 and 686B.060. The rates must be reasonable in relation to the benefits provided and must not be excessive, inadequate or unfairly discriminatory.
κ2005 Statutes of Nevada, Page 2143 (CHAPTER 456, AB 338)κ
2. The Commissioner may, by regulation, establish rates that an insurer may use without filing pursuant to section 108 of this act. In establishing such rates, the Commissioner shall consider and apply the following factors:
(a) Actual and expected loss experience;
(b) General and administrative expenses;
(c) Loss settlement and adjustment expenses;
(d) Reasonable creditor compensation;
(e) The manner in which premiums are charged;
(f) Other acquisition costs;
(g) Reserves;
(h) Taxes;
(i) Regulatory license fees and fund assessments;
(j) Reasonable insurer profit; and
(k) Other relevant data consistent with generally accepted actuarial standards.
Sec. 110.3. Except as otherwise provided in section 110 of this act, if an insurer revises its schedule of premium rates, the insurer shall file the revised schedule with the Commissioner pursuant to section 108 of this act. An insurer shall not issue consumer credit insurance for which the premium rates differ from the rates determined by the schedule approved by the Commissioner.
Sec. 110.7. 1. Each individual policy or group certificate must provide for a refund of unearned premiums if the consumer credit insurance is cancelled before the scheduled date of termination of the insurance.
2. Except as otherwise provided in this section, any refund must be provided to the person to whom it is entitled as soon as practicable after the date of cancellation of the insurance.
3. The Commissioner shall, by regulation, establish the minimum amount of unearned premiums that must remain outstanding at the time of cancellation in order for a person to be entitled to a refund. If the amount of unearned premiums that remains outstanding at the time of cancellation is less than the minimum amount established by regulation, the person is not entitled to a refund.
4. The formula that an insurer uses to determine the amount of a refund must be submitted to and approved by the Commissioner before it is used.
Sec. 111. If a creditor requires a debtor to make a payment for consumer credit insurance and an individual policy or group certificate is not issued, the creditor shall immediately notify the debtor in writing and make an appropriate credit to the account of the debtor or issue a refund.
Sec. 112. The amount charged to a debtor for any consumer credit insurance must not exceed the amount of the premiums charged by the insurer as determined at the time that the contract was accepted by the debtor.
Sec. 113. Except as otherwise prohibited by law, any duty imposed on an insurer pursuant to this chapter may be carried out by a creditor who is acting as an agent of the insurer.
Sec. 114. The Commissioner may adopt regulations to carry out the provisions of this chapter.
κ2005 Statutes of Nevada, Page 2144 (CHAPTER 456, AB 338)κ
Sec. 115. NRS 690A.010 is hereby amended to read as follows:
690A.010 Any consumer credit insurance issued in connection with loans or other credit transactions for personal, family or household use is subject to the provisions of this chapter [unless the insurance is issued] except:
1. Insurance written in connection with a [loan or other] credit transaction [of more than 15 years duration or the issuance of the insurance is] that is:
(a) Secured by a first mortgage or deed of trust; and
(b) Made to finance the purchase of real property or the construction of a dwelling thereon, or to refinance a prior credit transaction made for that purpose;
2. Insurance that is sold as an isolated transaction on the part of the insurer and not related to an agreement or a plan for insuring debtors of the creditor [.] ;
3. Insurance for which no identifiable charge is made to the debtor; or
4. Insurance on accounts receivable.
Sec. 116. NRS 690A.011 is hereby amended to read as follows:
690A.011 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 690A.012 to [690A.028,] 690A.018, inclusive, and sections 92 to 99, inclusive, of this act have the meanings ascribed to them in those sections.
Sec. 116.5. NRS 690A.012 is hereby amended to read as follows:
690A.012 Compensation means any valuable consideration, direct or indirect, paid by or on behalf of the insurer, or by any subsidiary or parent, or subsidiary of the parent of the insurer, or by any other person to or on behalf of any group policyholder or producer or withheld from an insurer by any group policyholder or producer, and includes:
1. Paid or credited commissions or contingent commissions.
2. Fees for services, consulting fees or any other fee paid or credited within or outside this State in direct relation to the volume of premiums produced or written in this State.
3. The use of electronic data processing equipment or services, except for devices provided in lieu of books and charts of rates and refunds usable only for that purpose.
4. The furnishing of supplies, except forms approved by the Commissioner, the usual forms for claims and reports, envelopes for transmitting claims and brochures, and books and charts of rates and refunds.
5. Providing rental equipment of any type.
6. Advertising.
7. Providing telephone service without charge or at a charge less than the usual cost.
8. Participation in a profit-sharing plan.
9. Dividends and refunds or credits based on experience ratings.
10. An allowance for expenses.
11. Participation in stock plans or bonuses.
12. Any form of credit, including the use of money.
13. Commissions for reinsurance, ceded or assumed.
14. Reinsurance with a nonauthorized insurer owned or controlled by a creditor or producer or with a nonauthorized insurer in which a creditor or producer is a stockholder.
κ2005 Statutes of Nevada, Page 2145 (CHAPTER 456, AB 338)κ
15. Any commission or fee, inducement or intention to induce, or any other consideration arising from the sale of insurance or other product or service, except consumer credit insurance as part of the transaction in which the indebtedness is arranged or the application for the consumer credit insurance is made.
Sec. 117. NRS 690A.015 is hereby amended to read as follows:
690A.015 Credit insurance or consumer credit insurance means [credit] any or all of the following:
1. Credit life insurance [, credit disability insurance, involuntary] ;
2. Credit accident and health insurance;
3. Credit unemployment insurance [and any other similar form of insurance.] ; or
4. Any other insurance defined in this chapter.
Sec. 118. NRS 690A.016 is hereby amended to read as follows:
690A.016 Credit life insurance means insurance on the life of a debtor pursuant to or in connection with a specific loan or other credit transaction [.] to provide for satisfaction of a debt, in whole or in part, upon the death of an insured debtor.
Sec. 119. NRS 690A.050 is hereby amended to read as follows:
690A.050 1. Except as otherwise provided in subsection 2, the total amount of periodic indemnity payable pursuant to a policy of credit [disability] accident and health insurance or credit unemployment insurance in the event of disability [,] or unemployment, as defined in the policy, [or pursuant to a policy of involuntary unemployment insurance in the event of involuntary unemployment as defined in the policy,] must not exceed the aggregate of the periodic scheduled unpaid installments of the [indebtedness,] gross debt, and the amount of each periodic indemnity payment must not exceed the original [indebtedness] gross debt divided by the number of periodic installments.
2. [Credit disability insurance or involuntary] For credit accident and health insurance or credit unemployment insurance [may be] written in connection with [a commitment for an educational credit transaction if the monthly indemnity does not exceed the amount that results when the total commitment is divided by the number of months in the term of the transaction.] an open-end credit agreement, the amount of insurance must not exceed the gross debt which would accrue on that amount using the periodic indemnity. Subject to any policy maximum, the periodic indemnity must not be less than the minimum repayment schedule of the creditor.
Sec. 120. NRS 690A.120 is hereby amended to read as follows:
690A.120 All policies and certificates of consumer credit insurance may be delivered or issued for delivery in this State only by an insurer authorized to do an insurance business in this State, and may be issued only through holders of licenses or certificates of authority issued by the Commissioner.
Sec. 121. NRS 690A.130 is hereby amended to read as follows:
690A.130 1. All claims must be promptly reported to the insurer or its designated claim representative, and the insurer shall maintain adequate files on all reported claims. All claims must be settled as soon as [possible] practicable and in accordance with the terms of the insurance contract.
2. All claims must be paid [either] by draft drawn upon the insurer , by electronic funds transfer or by check of the insurer to the order of:
κ2005 Statutes of Nevada, Page 2146 (CHAPTER 456, AB 338)κ
(a) The claimant to whom payment of the claim is due pursuant to the provisions of the policy; or
(b) Any other person designated by the claimant to whom payment is due.
3. [No] A plan or arrangement may not be used whereby [any] a person other than the insurer or its designated claim representative is authorized to settle or adjust claims. The creditor may not be designated as the representative for the insurer in adjusting a claim, [but] except that a group policyholder may, by arrangement with the group insurer, draw drafts , electronic transfers or checks in payment of claims due the group policyholder subject to the periodic audit [of] by the insurer.
Sec. 122. NRS 690A.140 is hereby amended to read as follows:
690A.140 When any form of consumer credit insurance is required as additional security for any [indebtedness,] debt, the debtor may furnish the required amount of insurance through existing policies of insurance owned or controlled by him or procure or furnish the required coverage through any insurer authorized to transact the business of insurance in this State.
Sec. 122.5. NRS 690A.260 is hereby amended to read as follows:
690A.260 1. Except as otherwise provided in subsection 2, an authorized insurer issuing consumer credit insurance may not enter into any agreement whereby the authorized insurer transfers, by reinsurance or otherwise, to an unauthorized insurer, as they relate to consumer credit insurance written or issued in this State:
(a) A substantial portion of the risk of loss under the consumer credit insurance written by the authorized insurer in this State;
(b) All of one or more kinds, lines, types or classes of consumer credit insurance;
(c) All of the consumer credit insurance produced through one or more agents, agencies or creditors;
(d) All of the consumer credit insurance written or issued in a designated geographical area; or
(e) All of the consumer credit insurance under a policy of group insurance.
2. An authorized insurer may make the transfers listed in subsection 1 to an unauthorized insurer if the unauthorized insurer:
(a) Maintains security on deposit with the Commissioner in an amount which when added to the actual capital and surplus of the insurer is equal to the capital and surplus required of an authorized stock insurer pursuant to NRS 680A.120. The security may consist only of the following:
(1) Cash.
(2) General obligations of, or obligations guaranteed by, the Federal Government, this State or any of its political subdivisions. These obligations must be valued at the lower of market value or par value.
(3) Any other type of security that would be acceptable if posted by a domestic or foreign insurer.
(b) Files an annual statement with the Commissioner pursuant to NRS 680A.270.
(c) Maintains reserves on its consumer credit insurance business pursuant to NRS 681B.050.
(d) Values its assets and liabilities pursuant to NRS 681B.010 to 681B.040, inclusive.
κ2005 Statutes of Nevada, Page 2147 (CHAPTER 456, AB 338)κ
(e) Agrees to examinations conducted by the Commissioner pursuant to NRS 679B.230.
(f) Complies with the standards adopted by the Commissioner pursuant to NRS 679A.150.
(g) Does not hold, issue or have an arrangement for holding or issuing any of its stock for which dividends are paid based on:
(1) The experience of a specific risk of all of one or more kinds, lines, types or classes of insurance;
(2) All of the business produced through one or more agents, agencies or creditors;
(3) All of the business written in a designated geographical area; or
(4) All of the business written for one or more forms of insurance.
Sec. 123. NRS 690A.280 is hereby amended to read as follows:
690A.280 In addition to any other penalty provided by law, any person who violates any provision of this chapter or a regulation adopted or a final order of the Commissioner issued pursuant to this chapter shall, after notice and hearing, pay [a civil] an administrative penalty:
1. In an amount not to exceed [$2,500;] $5,000; or
2. If the violation is willful, in an amount not to exceed $10,000,
Κ and the Commissioner may, after notice and a hearing, revoke or suspend the license or certificate of authority of that person.
Sec. 123.5. NRS 692A.104 is hereby amended to read as follows:
692A.104 Before the issuance or renewal of a license as a title agent or escrow officer the applicant must pay a fee established by the Commissioner of not more than $15 for deposit in the insurance recovery account created by NRS 679B.305.
Sec. 124. Chapter 694C of NRS is hereby amended by adding thereto the provisions set forth as sections 125 to 143, inclusive, of this act.
Sec. 125. Alien captive insurer means any insurer formed to write insurance business for its parents and affiliates and is licensed pursuant to the laws of an alien jurisdiction which imposes statutory or regulatory standards acceptable to the Commissioner on companies transacting the business of insurance in such jurisdiction.
Sec. 126. Branch business means any insurance business transacted by a branch captive insurer in this State.
Sec. 127. Branch captive insurer means an alien captive insurer licensed pursuant to this chapter to transact the business of insurance through a business unit with a principal place of business in this State.
Sec. 128. Branch operations means any business operations of a branch captive insurer in this State.
Sec. 129. Controlled unaffiliated business means any company:
1. That is not in the corporate system of a parent and affiliated companies;
2. That has an existing contractual relationship with a parent or affiliated company; and
3. Whose risks are managed by a captive insurer pursuant to this chapter.
Sec. 130. Participant means a corporation, association, limited-liability company, partnership, trust, sponsor or other business organization, and any affiliate thereof, that is insured by a sponsored captive insurer, where the losses of the participant are limited by a participant contract to the participants pro rata share of the assets of one or more protected cells identified in such participant contract.
κ2005 Statutes of Nevada, Page 2148 (CHAPTER 456, AB 338)κ
participant contract to the participants pro rata share of the assets of one or more protected cells identified in such participant contract.
Sec. 131. Participant contract means a contract by which a sponsored captive insurer insures the risks of a participant and limits the losses of each such participant to its pro rata share of the assets of one or more protected cells identified in the participant contract.
Sec. 132. Protected cell means a separate account established by a sponsored captive insurer in which assets are maintained for one or more participants in accordance with the terms of one or more participant contracts that fund the liability of the sponsored captive insurer assumed on behalf of the participants as set forth in the participant contracts.
Sec. 133. Sponsor means an insurer licensed pursuant to the laws of any state, a reinsurer authorized or approved under the laws of any state, or a captive insurer formed or licensed pursuant to this chapter that:
1. Meets the requirements of subsection 3 of NRS 694C.180; and
2. Is approved by the Commissioner to provide all or part of the capital and surplus required by applicable law and to organize and operate a sponsored captive insurer.
Sec. 134. Sponsored captive insurer means any captive insurer:
1. In which the minimum capital and surplus required by applicable law is provided by one or more sponsors;
2. That is formed or licensed pursuant to this chapter;
3. That only insures the risks of its participants through separate participant contracts; and
4. That funds the liability for each participant through one or more protected cells where the assets of each protected cell are segregated from the assets of other protected cells and the assets of the general account of the sponsored captive insurer.
Sec. 135. 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;
(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;
κ2005 Statutes of Nevada, Page 2149 (CHAPTER 456, AB 338)κ
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 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 or a captive insurer formed or licensed pursuant to this chapter; 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;
(b) May be a sponsor of the sponsored captive insurer; and
(c) Must not be a risk retention group.
κ2005 Statutes of Nevada, Page 2150 (CHAPTER 456, AB 338)κ
5. A participant in a sponsored captive insurer shall insure only its own risks through a sponsored captive insurer.
Sec. 136. Notwithstanding the provisions of this chapter, the assets of two or more protected cells may be combined for the purpose of investment, and such combination must not be construed as defeating the separation of the assets for accounting or other purposes. Sponsored captive insurers shall comply with the investment requirements set forth in NRS 694C.340, if applicable, except to the extent that credit for reinsurance ceded to reinsurers is allowed pursuant to NRS 694C.350 or to the extent otherwise deemed reasonable and appropriate by the Commissioner. Notwithstanding the provisions of this chapter, the Commissioner may approve the use of alternative reliable methods of valuation and rating.
Sec. 137. The provisions of chapter 696B of NRS apply to a sponsored captive insurer if:
1. The assets of a protected cell are not used to pay any expense or claim other than those that are attributable to the protected cell; and
2. The capital and surplus of the sponsored captive insurer are available at all times to pay any expenses of or claims against the sponsored captive insurer.
Sec. 138. 1. As security for the payment of liabilities attributable to the branch operations of a branch captive insurer, the Commissioner shall require that a trust fund, funded by an irrevocable letter of credit or other acceptable asset, be established and maintained in the United States for the benefit of United States policy holders and ceding United States insurers under insurance policies or reinsurance contracts issued or assumed by the branch captive insurer through its branch operations.
2. The amount of the security must be not less than the total amount required by NRS 694C.250 and 694C.260, and any reserves on such insurance policies or reinsurance contracts, including reserves for losses, allocated loss adjustment expenses, incurred but not reported losses and unearned premiums with regard to business written through the branch operations. The Commissioner may authorize a branch captive insurer that is required to post security for loss reserves on branch business by its reinsurer to reduce the funds in the trust account required by this section by that same amount as long as the security remains posted with the reinsurer.
3. If the form of the security is a letter of credit, the letter of credit must be established, issued or confirmed by a bank chartered in this State or a bank that is a member of the Federal Reserve System.
Sec. 139. An alien captive insurer licensed as a branch captive insurer shall petition the Commissioner to issue a certificate setting forth the finding of the Commissioner that, after considering the character, reputation, financial responsibility, insurance experience and business qualifications of the officers and directors of the alien captive insurer, the licensing and maintenance of the branch operations will promote the general welfare of the State. The alien captive insurer may register to do business in this State after the certificate is issued by the Commissioner.
Sec. 140. Before March 1 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.
κ2005 Statutes of Nevada, Page 2151 (CHAPTER 456, AB 338)κ
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. 141. 1. The examination of a branch captive insurer pursuant to NRS 694C.410 must be of branch business and branch operations only, so long as the branch captive insurer provides to the Commissioner on an annual basis a certificate of compliance, or equivalent documentation, issued by or filed with the licensing authority of the jurisdiction in which the branch captive insurer is formed, and demonstrates to the satisfaction of the Commissioner that it is operating in a sound financial condition and in accordance with all applicable laws and regulations of that jurisdiction.
2. As a condition of licensure, the alien captive insurer must authorize the Commissioner to examine the affairs of the alien captive insurer in the jurisdiction in which the alien captive insurer is formed.
Sec. 142. The tax required pursuant to NRS 694C.450 applies only to the branch business of the branch captive insurer.
Sec. 143. In addition to the information required pursuant to NRS 694C.200, each sponsored captive insurer shall file with the Commissioner:
1. Information demonstrating the manner in which the applicant will account for the loss and expense experience of each protected cell, at a level of detail deemed sufficient by the Commissioner, and the method of reporting such information;
2. A written acknowledgement that all financial records of the sponsored captive insurer, including, but not limited to, records pertaining to any protected cells, must be made available for inspection or examination by the Commissioner or his designee;
3. All contracts entered into between the sponsored captive insurer and any participant, including, but not limited to, participant contracts; and
4. Evidence satisfactory to the Commissioner indicating that expenses will be allocated to each protected cell in a fair and equitable manner.
Sec. 144. NRS 694C.010 is hereby amended to read as follows:
694C.010 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 694C.020 to 694C.150, inclusive, and sections 125 to 134, inclusive, of this act have the meanings ascribed to them in those sections.
Sec. 145. NRS 694C.030 is hereby amended to read as follows:
694C.030 Agency captive insurer means a captive insurer that is owned or directly or indirectly controlled by an insurance agency or brokerage and that only insures risks of policies which are placed by or through the agency or brokerage.
Sec. 146. NRS 694C.040 is hereby amended to read as follows:
694C.040 Association means a legal entity consisting of two or more corporations, limited-liability companies, partnerships, associations or other forms of business organizations.
κ2005 Statutes of Nevada, Page 2152 (CHAPTER 456, AB 338)κ
Sec. 147. NRS 694C.060 is hereby amended to read as follows:
694C.060 Captive insurer means any pure captive insurer, association captive insurer, agency captive insurer , [and] rental captive insurer and sponsored captive insurer licensed pursuant to this chapter. The term includes a pure captive insurer who, unless otherwise provided by the Commissioner, is a branch captive insurer with respect to operations in this State.
Sec. 148. NRS 694C.090 is hereby amended to read as follows:
694C.090 Member organization means any individual or corporation, limited-liability company, partnership, association or other form of business organization that belongs to an association.
Sec. 149. NRS 694C.110 is hereby amended to read as follows:
694C.110 Parent means a corporation, limited-liability company, partnership, association or other form of business organization that directly or indirectly owns, controls or holds with power to vote more than 50 percent of the outstanding voting securities of [a] :
1. A pure captive insurer [.] organized as a stock corporation; or
2. The membership of a pure captive insurer organized as a nonprofit corporation.
Sec. 150. NRS 694C.120 is hereby amended to read as follows:
694C.120 Pure captive insurer means a captive insurer that only insures risks of its parent and affiliated companies [.] or controlled unaffiliated businesses and, unless otherwise provided by the Commissioner, includes a branch captive insurer.
Sec. 151. NRS 694C.180 is hereby amended to read as follows:
694C.180 1. [A] Unless otherwise approved by the Commissioner, a pure captive insurer, an agency captive insurer , [or] a rental captive insurer [shall] or a sponsored captive insurer must be incorporated as a stock insurer.
2. An association captive insurer [shall] must be formed as a:
(a) Stock insurer;
(b) Mutual insurer; or
(c) Reciprocal insurer, except that its attorney-in-fact must be a corporation incorporated in this State.
3. A captive insurer shall have not less than three incorporators [,] or organizers, at least [two] one of whom must be [residents] a resident of this State.
4. Before the articles of incorporation of a captive insurer may be filed with the Secretary of State, the Commissioner must approve the articles of incorporation. In determining whether to grant [such] that approval, the Commissioner shall consider:
(a) The character, reputation, financial standing and purposes of the incorporators [;] or organizers;
(b) The character, reputation, financial responsibility, experience relating to insurance and business qualifications of the officers and directors of the captive insurer;
(c) The competence of any person who, pursuant to a contract with the captive insurer, will manage the affairs of the captive insurer;
(d) The competence, reputation and experience of the legal counsel of the captive insurer relating to the regulation of insurance;
(e) If the captive insurer is a rental captive insurer, the competence, reputation and experience of the underwriter of the captive insurer;
κ2005 Statutes of Nevada, Page 2153 (CHAPTER 456, AB 338)κ
(f) The business plan of the captive insurer; and
(g) Such other aspects of the captive insurer as the Commissioner deems advisable.
5. The capital stock of a captive insurer incorporated as a stock insurer must be issued at not less than par value.
6. At least one member of the board of directors of a captive insurer formed as a corporation, or [of its] one member of the subscribers advisory committee or the attorney-in-fact of a captive insurer formed as a reciprocal insurer, must be a resident of this State.
7. A captive insurer formed pursuant to the provisions of this chapter has the privileges of, and is subject to, the provisions of general corporation law set forth in chapter 78 of NRS and, if formed as a nonprofit corporation, the provisions set forth in chapter 82 of NRS, as well as the applicable provisions contained in this chapter. If the provisions of this chapter conflict with the general provisions in chapter 78 or 82 of NRS governing corporations, the provisions of this chapter control. The provisions of chapter 693A of NRS relating to mergers, consolidations, conversions, mutualizations and transfers of domicile to this State apply to determine the procedures to be followed by captive insurers in carrying out any of those transactions in accordance with this chapter.
8. The articles of association, articles of incorporation, charter or bylaws of a captive insurer formed as a corporation must require that a quorum of the board of directors consists of not less than one-third of the number of directors prescribed by the articles of association, articles of incorporation, charter or bylaws.
9. The agreement of the subscribers or other organizing document of a captive insurer formed as a reciprocal insurer must require that a quorum of its subscribers advisory committee consists of not less than one-third of the number of its members.
Sec. 152. NRS 694C.230 is hereby amended to read as follows:
694C.230 1. If the Commissioner determines that the documents and statements filed by the captive insurer satisfy the requirements for licensure, the Commissioner shall issue a license to the captive insurer. [The license is valid for 1 year after the date on which it is issued.] The license may be renewed annually upon the satisfaction of all requirements imposed by the Commissioner and payment of the renewal fee.
2. A captive insurer must pay a fee of $300 for the issuance of a license and , on or before March 1 of each year, an annual fee of $300 for the renewal of a license.
Sec. 153. NRS 694C.250 is hereby amended to read as follows:
694C.250 1. A captive insurer must not be issued a license, and shall not hold a license, unless the captive insurer has and maintains, in addition to any other capital required to be maintained pursuant to subsection 3, unimpaired paid-in capital of:
(a) For a pure captive insurer, not less than $100,000;
(b) For an association captive insurer incorporated as a stock insurer, not less than $200,000;
(c) For an agency captive insurer, not less than $300,000; [and]
(d) For a rental captive insurer, not less than $400,000 [.] ; and
(e) For a sponsored captive insurer, not less than $200,000.
κ2005 Statutes of Nevada, Page 2154 (CHAPTER 456, AB 338)κ
2. Except as otherwise provided by the Commissioner pursuant to subsection 3, the capital required to be maintained pursuant to this section must be in the form of cash or an irrevocable letter of credit.
3. The Commissioner may prescribe additional requirements relating to capital based on the type, volume and nature of the insurance business that is transacted by the captive insurer and requirements regarding which capital, if any, may be in the form of an irrevocable letter of credit.
4. A letter of credit used by a captive insurer as evidence of capital required pursuant to this section must:
(a) Be issued by a bank chartered by this State or a bank that is a member of the United States Federal Reserve System and has been approved by the Commissioner; and
(b) Include a provision pursuant to which the letter of credit is automatically renewable each year, unless the issuer gives written notice to the Commissioner and the captive insurer at least 90 days before the expiration date.
Sec. 154. NRS 694C.260 is hereby amended to read as follows:
694C.260 1. A captive insurer must not be issued a license, and shall not hold a license, unless the captive insurer has and maintains, in addition to any other surplus required to be maintained pursuant to subsection 3, an unencumbered surplus of:
(a) For a pure captive insurer, not less than [$150,000;] $100,000;
(b) For an association captive insurer incorporated as a stock insurer, not less than $300,000;
(c) For an agency captive insurer, not less than $300,000;
(d) For a rental captive insurer, not less than [$350,000; and] $400,000;
(e) For an association captive insurer incorporated as a mutual insurer or reciprocal insurer, not less than $500,000 [.] ; and
(f) For a sponsored captive insurer, not less than $300,000.
2. Except as otherwise provided in subsection 3, the surplus required to be maintained pursuant to this section must be in the form of cash or an irrevocable letter of credit.
3. The Commissioner may prescribe additional requirements relating to surplus based on the type, volume and nature of the insurance business that is transacted by the captive insurer and requirements regarding which surplus, if any, may be in the form of an irrevocable letter of credit.
4. A letter of credit used by a captive insurer as evidence of required surplus pursuant to this section must:
(a) Be issued by a bank chartered by this State or a bank that is a member of the United States Federal Reserve System and has been approved by the Commissioner; and
(b) Include a provision pursuant to which the letter of credit is automatically renewable each year, unless the issuer gives written notice to the Commissioner and the captive insurer at least 90 days before the expiration date.
Sec. 155. NRS 694C.300 is hereby amended to read as follows:
694C.300 1. Except as otherwise provided in this section, a captive insurer licensed pursuant to this chapter may transact any form of insurance described in NRS 681A.020 to 681A.080, inclusive.
2. A captive insurer licensed pursuant to this chapter:
(a) Shall not directly provide personal motor vehicle or homeowners insurance coverage, or any component thereof.
κ2005 Statutes of Nevada, Page 2155 (CHAPTER 456, AB 338)κ
(b) Shall not accept or cede reinsurance, except as otherwise provided in NRS 694C.350.
(c) May provide excess workers compensation insurance to its parent and affiliated companies, unless otherwise prohibited by the laws of the state in which the insurance is transacted.
(d) May reinsure workers compensation insurance provided pursuant to a program of self-funded insurance of its parent and affiliated companies if:
(1) The parent or affiliated company which is providing the self-funded insurance is certified as a self-insured employer by the Commissioner, if the insurance is being transacted in this State; or
(2) The program of self-funded insurance is otherwise qualified pursuant to, or in compliance with, the laws of the state in which the insurance is transacted.
3. A pure captive insurer shall not insure any risks other than those of its parent and affiliated companies [.] or controlled unaffiliated businesses.
4. An association captive insurer shall not insure any risks other than those of the member organizations of its association and the affiliated companies of the member organizations.
5. An agency captive insurer shall not insure any risks other than those of the policies that are placed by or through the insurance agency or brokerage that owns the captive insurer.
6. A rental captive insurer shall not insure any risks other than those of the policyholders or associations that have entered into agreements with the rental captive insurer for the insurance of those risks. Such agreements must be in a form which has been approved by the Commissioner.
7. A sponsored captive insurer shall not insure any risks other than those of its participants.
8. As used in this section, excess workers compensation insurance means insurance in excess of the specified per-incident or aggregate limit, if any, established by:
(a) The Commissioner, if the insurance is being transacted in this State; or
(b) The chief regulatory officer for insurance in the state in which the insurance is being transacted.
Sec. 156. NRS 694C.310 is hereby amended to read as follows:
694C.310 1. The board of directors of a captive insurer shall meet at least [one time] once each year in this State. The captive insurer shall:
(a) Maintain its principal place of business in this State; and
(b) Appoint a resident of this State as a registered agent to accept service of process and otherwise act on behalf of the captive insurer in this State. If the registered agent cannot be located with reasonable diligence for the purpose of serving a notice or demand on the captive insurer, the notice or demand may be served on the Secretary of State who shall be deemed to be the agent for the captive insurer.
2. A captive insurer shall not transact insurance in this State unless:
(a) The captive insurer has made adequate arrangements with a bank located in this State that is authorized pursuant to state or federal law to transfer money;
(b) If the captive insurer employs or has entered into a contract with a natural person or business organization to manage the affairs of the captive insurer, the natural person or business organization meets the standards of competence and experience satisfactory to the Commissioner;
κ2005 Statutes of Nevada, Page 2156 (CHAPTER 456, AB 338)κ
(c) The captive insurer employs or has entered into a contract with a qualified and experienced certified public accountant who is approved by the Commissioner or a firm of certified public accountants that is nationally recognized;
(d) The captive insurer employs or has entered into a contract with qualified, experienced actuaries who are approved by the Commissioner to perform reviews and evaluations of the operations of the captive insurer; and
(e) The captive insurer employs or has entered into a contract with an attorney who is licensed to practice law in this State and who meets the standards of competence and experience in matters concerning the regulation of insurance in this State established by the Commissioner by regulation.
Sec. 157. NRS 694C.340 is hereby amended to read as follows:
694C.340 1. Except as otherwise provided in this section [,] and section 136 of this act, an association captive insurer, an agency captive insurer , [or] a rental captive insurer or a sponsored captive insurer shall comply with the requirements relating to investments set forth in chapter 682A of NRS. Upon the request of the association captive insurer, agency captive insurer , [or] rental captive insurer [,] or sponsored captive insurer, the Commissioner may approve the use of reliable, alternative methods of valuation and rating.
2. A pure captive insurer is not subject to any restrictions on allowable investments, except that the Commissioner may prohibit or limit any investment that threatens the solvency or liquidity of the pure captive insurer.
3. A pure captive insurer may make a loan to its parent or affiliated company if the loan:
(a) Is first approved in writing by the Commissioner;
(b) Is evidenced by a note that is in a form that is approved by the Commissioner; and
(c) Does not include any money that has been set aside as capital or surplus as required by subsection 1 of NRS 694C.250 or subsection 1 of NRS 694C.260.
Sec. 158. NRS 694C.450 is hereby amended to read as follows:
694C.450 1. Except as otherwise provided in this section, a captive insurer shall pay to the Division, not later than March 1 of each year, a tax at the rate of:
(a) Two-fifths of 1 percent on the first $20,000,000 of its net direct premiums;
(b) One-fifth of 1 percent on the next $20,000,000 of its net direct premiums; and
(c) Seventy-five thousandths of 1 percent on each additional dollar of its net direct premiums.
2. Except as otherwise provided in this section, a captive insurer shall pay to the Division, not later than March 1 of each year, a tax at a rate of:
(a) Two hundred twenty-five thousandths of 1 percent on the first $20,000,000 of revenue from assumed reinsurance premiums;
(b) One hundred fifty thousandths of 1 percent on the next $20,000,000 of revenue from assumed reinsurance premiums; and
(c) Twenty-five thousandths of 1 percent on each additional dollar of revenue from assumed reinsurance premiums.
Κ The tax on reinsurance premiums pursuant to this subsection must not be levied on premiums for risks or portions of risks which are subject to taxation on a direct basis pursuant to subsection 1. A captive insurer is not required to pay any reinsurance premium tax pursuant to this subsection on revenue related to the receipt of assets by the captive insurer in exchange for the assumption of loss reserves and other liabilities of another insurer that is under common ownership and control with the captive insurer, if the transaction is part of a plan to discontinue the operation of the other insurer and the intent of the parties to the transaction is to renew or maintain such business with the captive insurer.
κ2005 Statutes of Nevada, Page 2157 (CHAPTER 456, AB 338)κ
required to pay any reinsurance premium tax pursuant to this subsection on revenue related to the receipt of assets by the captive insurer in exchange for the assumption of loss reserves and other liabilities of another insurer that is under common ownership and control with the captive insurer, if the transaction is part of a plan to discontinue the operation of the other insurer and the intent of the parties to the transaction is to renew or maintain such business with the captive insurer.
3. If the sum of the taxes to be paid by a captive insurer calculated pursuant to subsections 1 and 2 is less than $5,000 in any given year, the captive insurer shall pay a tax of $5,000 for that year. The maximum aggregate tax for any year must not exceed $175,000. The maximum aggregate tax to be paid by a sponsored captive insurer applies only to each protected cell and does not apply to the sponsored captive insurer as a whole.
4. Two or more captive insurers under common ownership and control must be taxed as if they were a single captive insurer.
5. Notwithstanding any specific statute to the contrary and except as otherwise provided in this subsection, the tax provided for by this section constitutes all the taxes collectible pursuant to the laws of this State from a captive insurer, and no occupation tax or other taxes may be levied or collected from a captive insurer by this State or by any county, city or municipality within this State, except for taxes imposed pursuant to chapter 363A or 363B of NRS and ad valorem taxes on real or personal property located in this State used in the production of income by the captive insurer.
6. [Ten] Twenty-five percent of the revenues collected from the tax imposed pursuant to this section must be deposited with the State Treasurer for credit to the Account for the Regulation and Supervision of Captive Insurers created pursuant to NRS 694C.460. The remaining 90 percent of the revenues collected must be deposited with the State Treasurer for credit to the State General Fund.
7. A captive insurer that is issued a license pursuant to this chapter after July 1, 2003, is entitled to receive a nonrefundable credit of $5,000 applied against the aggregate taxes owed by the captive insurer for the first year in which the captive insurer incurs any liability for the payment of taxes pursuant to this section. A captive insurer is entitled to a nonrefundable credit pursuant to this section not more than once after the captive insurer is initially licensed pursuant to this chapter.
8. As used in this section, unless the context otherwise requires:
(a) Common ownership and control means:
(1) In the case of a stock insurer, the direct or indirect ownership of 80 percent or more of the outstanding voting stock of two or more corporations by the same member or members.
(2) In the case of a mutual insurer, the direct or indirect ownership of 80 percent or more of the surplus and the voting power of two or more corporations by the same member or members.
(b) Net direct premiums means the direct premiums collected or contracted for on policies or contracts of insurance written by a captive insurer during the preceding calendar year, less the amounts paid to policyholders as return premiums, including dividends on unabsorbed premiums or premium deposits returned or credited to policyholders.
κ2005 Statutes of Nevada, Page 2158 (CHAPTER 456, AB 338)κ
Sec. 159. NRS 694C.460 is hereby amended to read as follows:
694C.460 1. There is hereby created in the State General Fund an Account for the Regulation and Supervision of Captive Insurers. Money in the Account must be used only to carry out the provisions of this chapter. Except as otherwise provided in NRS 694C.450, all fees and assessments received by the Commissioner or Division pursuant to this chapter must be credited to the Account. Not more than 2 percent of the tax collected and deposited in the Account pursuant to NRS 694C.450, may, upon application by the Division or an agency for economic development to, and with the approval of, the Interim Finance Committee, be transferred to an agency for economic development to be used by that agency to promote the industry of captive insurance in this State.
2. Except as otherwise provided in this section, all payments from the Account for the maintenance of staff and associated expenses, including contractual services, as necessary, must be disbursed from the State Treasury only upon warrants issued by the State Controller, after receipt of proper documentation of the services rendered and expenses incurred.
3. At the end of each fiscal year, that portion of the balance in the Account which exceeds [$100,000] $500,000 must be transferred to the State General Fund.
4. The State Controller may anticipate receipts to the Account and issue warrants based thereon.
Sec. 159.3. Chapter 695A of NRS is hereby amended by adding thereto a new section to read as follows:
A society may, subject to regulation by the Commissioner, offer a policy of health insurance that has a high deductible and is in compliance with 26 U.S.C. § 223 for the purposes of establishing a health savings account.
Sec. 159.7. Chapter 695B of NRS is hereby amended by adding thereto a new section to read as follows:
A corporation may, subject to regulation by the Commissioner, offer a policy of health insurance that has a high deductible and is in compliance with 26 U.S.C. § 223 for the purposes of establishing a health savings account.
Sec. 160. NRS 695B.150 is hereby amended to read as follows:
695B.150 A corporation organized under this chapter shall be deemed to be insolvent if its reserve fund is impaired so as to be less than the amounts set forth in NRS 695B.140. For the purposes of determining such insolvency and the financial condition of [such a] the corporation, for the purposes of preparation of annual statements, and for all other purposes not otherwise expressly provided for in this chapter, [such a corporation shall be] the corporation is subject to all requirements of the laws of the State of Nevada as to assets, liabilities and reserves which are applicable to mutual nonassessable [legal reserve disability] life or health insurers.
Sec. 160.5. Chapter 695C of NRS is hereby amended by adding thereto a new section to read as follows:
A health maintenance organization may, subject to regulation by the Commissioner, offer a policy of health insurance that has a high deductible and is in compliance with 26 U.S.C. § 223 for the purposes of establishing a health savings account.
Sec. 161. NRS 695E.140 is hereby amended to read as follows:
695E.140 1. A risk retention group seeking to be chartered in this State must obtain a certificate of authority pursuant to chapter [680A] 694C of NRS to transact liability insurance and, except as otherwise provided in this chapter, must comply with:
κ2005 Statutes of Nevada, Page 2159 (CHAPTER 456, AB 338)κ
of NRS to transact liability insurance and, except as otherwise provided in this chapter, must comply with:
(a) All of the laws, regulations and requirements applicable to liability insurers in this State; and
(b) The provisions of NRS 695E.150 to 695E.210, inclusive, to the extent that those provisions do not limit or conflict with the provisions with which the group is required to comply pursuant to paragraph (a).
2. Before it may transact insurance in any state, the risk retention group must submit to the Commissioner for his approval a plan of operation. The risk retention group shall submit an appropriate revision in the event of any subsequent material change in any item of the plan of operation within 10 days after the change. The group shall not offer any additional kinds of liability insurance, in this State or in any other state, until a revision of the plan is approved by the Commissioner.
3. A risk retention group chartered in a state other than Nevada that is seeking to transact insurance as a risk retention group in this State must comply with the provisions of NRS 695E.150 to 695E.210, inclusive.
Sec. 161.5. Chapter 695G of NRS is hereby amended by adding thereto a new section to read as follows:
A managed care organization may, subject to regulation by the Commissioner, offer a policy of health insurance that has a high deductible and is in compliance with 26 U.S.C. § 223 for the purposes of establishing a health savings account.
Sec. 162. NRS 696A.300 is hereby amended to read as follows:
696A.300 1. Each license for a club agent issued under this chapter continues in force for 3 years unless it is suspended, revoked or otherwise terminated. A license may be renewed upon submission of the statement required pursuant to NRS 696A.303 and payment to the Commissioner of the applicable fee for renewal and a fee established by the Commissioner of not more than $15 for deposit in the insurance recovery account created by NRS 679B.305. The statement must be submitted and the fees must be paid on or before the last day of the month in which the license is renewable.
2. Any license not so renewed expires at midnight on the last day specified for its renewal. The Commissioner may accept a request for renewal received by him within 30 days after the expiration of the license if the request is accompanied by the statement required pursuant to NRS 696A.303, a fee for renewal of 150 percent of the fee otherwise required and the fee established by the Commissioner of not more than $15 for deposit in the insurance recovery account created by NRS 679B.305.
3. The Commissioner shall collect in advance and deposit with the State Treasurer for credit to the State General Fund the following fees for licensure as a club agent:
(a) Application and license........................................................................... $78
(b) Appointment by each motor club............................................................. 5
(c) Triennial renewal of each license............................................................. 78
Sec. 163. NRS 696A.300 is hereby amended to read as follows:
696A.300 1. Each license for a club agent issued under this chapter continues in force for 3 years unless it is suspended, revoked or otherwise terminated. A license may be renewed upon payment to the Commissioner of the applicable fee for renewal and a fee established by the Commissioner of not more than $15 for deposit in the insurance recovery account created by NRS 679B.305.
κ2005 Statutes of Nevada, Page 2160 (CHAPTER 456, AB 338)κ
NRS 679B.305. The fees must be paid on or before the last day of the month in which the license is renewable.
2. Any license not so renewed expires at midnight on the last day specified for its renewal. The Commissioner may accept a request for renewal received by him within 30 days after the expiration of the license if the request is accompanied by a fee for renewal of 150 percent of the fee otherwise required and the fee established by the Commissioner of not more than $15 for deposit in the insurance recovery account created by NRS 679B.305.
3. The Commissioner shall collect in advance and deposit with the State Treasurer for credit to the State General Fund the following fees for licensure as a club agent:
(a) Application and license........................................................................... $78
(b) Appointment by each motor club............................................................. 5
(c) Triennial renewal of each license............................................................. 78
Sec. 164. NRS 689B.190, 690A.013, 690A.014, 690A.019, 690A.021, 690A.022, 690A.023, 690A.024, 690A.025, 690A.026, 690A.027, 690A.028, 690A.030, 690A.040, 690A.060, 690A.070, 690A.080, 690A.090, 690A.100, 690A.110, 690A.150, 690A.160, 690A.170, 690A.180, 690A.190, 690A.200, 690A.210, 690A.220, 690A.230, 690A.240, 690A.250, 690A.270 and 690B.060 are hereby repealed.
Sec. 165. 1. This section and sections 62, 63, 65, 76.5 to 83, inclusive, 88, 89, 90, 124 to 159, inclusive, and 161 of this act become effective upon passage and approval.
2. Sections 64, 66 to 71.1, inclusive, 71.5, 71.7, 72, 73, 74, 75.3, 75.5, 76, 84 to 87.5, inclusive, 88.5, 89.5, 90.3, 90.7, 123.5, 159.3, 159.7, 160, 160.5, 161.5, 162 and 164 of this act become effective on October 1, 2005.
3. Sections 1 to 61, inclusive, and 91 to 123, inclusive, of this act become effective:
(a) Upon passage and approval for the purpose of adopting regulations and performing any other preparatory administrative tasks that are required to carry out the provisions of this act; and
(b) On October 1, 2005, for all other purposes.
4. Sections 71.1, 71.7, 74, 75.5 and 162 of this act expire by limitation on the date on which the provisions of 42 U.S.C. § 666 requiring each state to establish procedures under which the state has authority to withhold or suspend, or to restrict the use of professional, occupational and recreational licenses of persons who:
(a) Have failed to comply with a subpoena or warrant relating to a proceeding to determine the paternity of a child or to establish or enforce an obligation for the support of a child; or
(b) Are in arrears in the payment for the support of one or more children,
Κ are repealed by the Congress of the United States.
5. Sections 71.3, 71.9, 75, 75.7 and 163 of this act become effective on the date on which the provisions of 42 U.S.C. § 666 requiring each state to establish procedures under which the state has authority to withhold or suspend, or to restrict the use of professional, occupational and recreational licenses of persons who:
(a) Have failed to comply with a subpoena or warrant relating to a proceeding to determine the paternity of a child or to establish or enforce an obligation for the support of a child; or
κ2005 Statutes of Nevada, Page 2161 (CHAPTER 456, AB 338)κ
(b) Are in arrears in the payment for the support of one or more children,
Κ are repealed by the Congress of the United States.
________
Senate Bill No. 460Committee on Human Resources and Education
CHAPTER 457
AN ACT relating to education; authorizing certain school districts to develop plans for alternative pupil-teacher ratios for grades 1 to 6, inclusive; and providing other matters properly relating thereto.
[Approved: June 17, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 387.304 is hereby amended to read as follows:
387.304 The Department shall:
1. Conduct an annual audit of the count of pupils for apportionment purposes reported by each school district pursuant to NRS 387.123 and the data reported by each school district pursuant to NRS 388.710 that is used to measure the effectiveness of the implementation of [the] a plan developed by each school district to reduce the pupil-teacher ratio [in kindergarten and grades 1, 2 and 3,] as required by NRS [388.710.] 388.720.
2. Review each school districts report of the annual audit conducted by a public accountant as required by NRS 354.624, and the annual report prepared by each district as required by NRS 387.303, and report the findings of the review to the State Board and the Legislative Committee on Education, with any recommendations for legislation, revisions to regulations or training needed by school district employees. The report by the Department must identify school districts which failed to comply with any statutes or administrative regulations of this State or which had any:
(a) Long-term obligations in excess of the general obligation debt limit;
(b) Deficit fund balances or retained earnings in any fund;
(c) Deficit cash balances in any fund;
(d) Variances of more than 10 percent between total general fund revenues and budgeted general fund revenues; or
(e) Variances of more than 10 percent between total actual general fund expenditures and budgeted total general fund expenditures.
3. In preparing its biennial budgetary request for the State Distributive School Account, consult with the Superintendent of Schools of each school district or a person designated by the Superintendent.
4. Provide, in consultation with the Budget Division of the Department of Administration and the Fiscal Analysis Division of the Legislative Counsel Bureau, training to the financial officers of school districts in matters relating to financial accountability.
Sec. 2. NRS 388.700 is hereby amended to read as follows:
388.700 1. Except as otherwise provided in subsections 2, 3 and 6, after the last day of the first month of the school year, the ratio in each school district of pupils [per class in kindergarten and grades 1, 2 and 3] per licensed teacher designated to teach [those classes full time must not exceed 15 to 1] , on a full-time basis, in classes where core curriculum is taught [.]
κ2005 Statutes of Nevada, Page 2162 (CHAPTER 457, SB 460)κ
licensed teacher designated to teach [those classes full time must not exceed 15 to 1] , on a full-time basis, in classes where core curriculum is taught [.] :
(a) In kindergarten and grades 1, 2 and 3, must not exceed 15 to 1; or
(b) If a plan is approved pursuant to subsection 3 of NRS 388.720, must not exceed the ratio set forth in that plan for the grade levels specified in the plan.
Κ In determining this ratio, all licensed educational personnel who teach [kindergarten or grade 1, 2 or 3] a grade level specified in paragraph (a) or a grade level specified in a plan that is approved pursuant to subsection 3 of NRS 388.720, as applicable for the school district, must be counted except teachers of art, music, physical education or special education, counselors, librarians, administrators, deans and specialists.
2. A school district may, within the limits of any plan adopted pursuant to NRS 388.720, assign a pupil whose enrollment in a grade occurs after the last day of the first month of the school year to any existing class regardless of the number of pupils in the class.
3. The State Board may grant to a school district a variance from the limitation on the number of pupils per class set forth in subsection 1 for good cause, including the lack of available financial support specifically set aside for the reduction of pupil-teacher ratios.
4. The State Board shall, on or before February 1 of each odd-numbered year, report to the Legislature on:
(a) Each variance granted by it during the preceding biennium, including the specific justification for the variance.
(b) The data reported to it by the various school districts pursuant to subsection 2 of NRS 388.710, including an explanation of that data, and the current pupil-teacher ratios per class in [kindergarten and grades 1, 2 and 3.] the grade levels specified in paragraph (a) of subsection 1 or the grade levels specified in a plan that is approved pursuant to subsection 3 of NRS 388.720, as applicable for the school district.
5. The Department shall, on or before November 15 of each year, report to the Chief of the Budget Division of the Department of Administration and the Fiscal Analysis Division of the Legislative Counsel Bureau:
(a) The number of teachers employed;
(b) The number of teachers employed in order to attain the ratio required by subsection 1;
(c) The number of pupils enrolled; and
(d) The number of teachers assigned to teach in the same classroom with another teacher or in any other arrangement other than one teacher assigned to one classroom of pupils,
Κ during the current school year in [kindergarten and grades 1, 2 and 3] the grade levels specified in paragraph (a) of subsection 1 or the grade levels specified in a plan that is approved pursuant to subsection 3 of NRS 388.720, as applicable, for each school district.
6. The provisions of this section do not apply to a charter school or to a program of distance education provided pursuant to NRS 388.820 to 388.874, inclusive.
Sec. 3. NRS 388.710 is hereby amended to read as follows:
388.710 1. The State Board, in consultation with the trustees of the school districts and the recognized associations representing licensed educational personnel, after receiving comments from the general public, shall determine the data that must be monitored by each school district and used to measure the effectiveness of the implementation of [the] a plan developed by each school district to reduce the pupil-teacher ratio [per class in kindergarten and grades 1, 2 and 3.]
κ2005 Statutes of Nevada, Page 2163 (CHAPTER 457, SB 460)κ
used to measure the effectiveness of the implementation of [the] a plan developed by each school district to reduce the pupil-teacher ratio [per class in kindergarten and grades 1, 2 and 3.] pursuant to NRS 388.720.
2. Each school district shall report the data to the State Board as required by the State Board.
Sec. 4. NRS 388.720 is hereby amended to read as follows:
388.720 [Each]
1. Except as otherwise provided in subsection 2, each school district together with the recognized associations representing licensed educational personnel shall develop a plan to reduce the districts pupil-teacher ratio per class in kindergarten and grades 1, 2 and 3 within the limits of available financial support specifically set aside for this purpose and submit that plan to the State Board.
2. In lieu of complying with the pupil-teacher ratio prescribed in paragraph (a) of subsection 1 of NRS 388.700, a school district in a county whose population is less than 100,000 may, in consultation with the recognized associations representing licensed educational personnel, develop a plan to reduce the districts pupil-teacher ratios per class for specified grade levels in elementary schools. Alternative ratios for grade 6 may only be approved for those school districts that include grade 6 in elementary school. The alternative pupil-teacher ratios must not:
(a) Exceed 22 to 1 in grades 1, 2 and 3; and
(b) Exceed 25 to 1 in grades 4 and 5 or grades 4, 5 and 6, as applicable.
3. The State Board shall approve a plan submitted pursuant to subsection 2 if the plan:
(a) Reduces the districts pupil-teacher ratio in the elementary schools within the school district; and
(b) Is fiscally neutral such that the plan will not cost more to carry out than a plan that complies with the ratios prescribed in paragraph (a) of subsection 1 of NRS 388.700.
Sec. 5. 1. If a school district receives approval to carry out alternative pupil-teacher ratios pursuant to NRS 388.720, as amended by this act, the school district shall evaluate the effectiveness of the alternative program. The evaluation must include, without limitation, the effect of the alternative program on:
(a) Team teaching;
(b) Pupil discipline; and
(c) The academic achievement of pupils.
2. A school district shall submit a written report of the results of the evaluation to the Superintendent of Public Instruction on or before December 1 of each year for the immediately preceding school year. The Superintendent of Public Instruction shall summarize the results of the evaluations and report the findings in an interim report to the Legislative Committee on Education on or before February 1, 2006.
3. On or before February 1, 2007, the Superintendent of Public Instruction shall submit a final written report of the results of the evaluations of alternative class-size reduction programs to the Legislative Bureau of Educational Accountability and Program Evaluation. On or before February 15, 2007, the Legislative Bureau of Educational Accountability and Program Evaluation shall submit a copy of the written report to the Director of the Legislative Counsel Bureau for transmission to the 74th Session of the Nevada Legislature.
κ2005 Statutes of Nevada, Page 2164 (CHAPTER 457, SB 460)κ
4. The interim report required pursuant to subsection 2 and the final written report required pursuant to subsection 3 must include, without limitation:
(a) The number of school districts for which an alternative class-size reduction program was approved;
(b) A description of the approved alternative class-size reduction programs; and
(c) The effect of the alternative class-size reduction programs on:
(1) Team teaching;
(2) Pupil discipline; and
(3) The academic achievement of pupils.
Sec. 6. This act becomes effective on July 1, 2005.
________
Assembly Bill No. 337Committee on Commerce and Labor
CHAPTER 458
AN ACT relating to public welfare; revising certain provisions governing the licensure of residential facilities for groups which provide assisted living services; requiring the licensure of agencies which provide personal care services in the homes of elderly persons and persons with disabilities; requiring such agencies to file a surety bond or deposit other security to provide indemnification to certain persons; requiring the periodic investigation of the criminal histories of employees and independent contractors of such agencies; requiring a person who maintains or is employed by such an agency to report the abuse, neglect or isolation of an older person and to report certain misconduct of nurses and nursing assistants; authorizing a person who receives nonmedical services from such an agency to submit a claim for damages to the property of the person by a person who maintains or is employed by the agency to the Aging Services Division of the Department of Human Resources; providing penalties; and providing other matters properly relating thereto.
[Approved: June 17, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 449 of NRS is hereby amended by adding thereto a new section to read as follows:
1. Agency to provide personal care services in the home means any person, other than a natural person, which provides in the home, through its employees or by contractual arrangement with other persons, nonmedical services related to personal care to elderly persons or persons with mental or physical disabilities to assist those persons with activities of daily living, including, without limitation:
(a) The elimination of wastes from the body;
(b) Dressing and undressing;
(c) Bathing;
(d) Grooming;
κ2005 Statutes of Nevada, Page 2165 (CHAPTER 458, AB 337)κ
(e) The preparation and eating of meals;
(f) Laundry;
(g) Shopping;
(h) Cleaning;
(i) Transportation; and
(j) Any other minor needs related to the maintenance of personal hygiene.
2. The term does not include:
(a) An independent contractor who provides nonmedical services specified by subsection 1 without the assistance of employees; or
(b) A microboard, as defined by regulations adopted by the Board.
Sec. 2. NRS 449.001 is hereby amended to read as follows:
449.001 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 449.0015 to 449.019, inclusive, and section 1 of this act have the meanings ascribed to them in those sections.
Sec. 3. NRS 449.0045 is hereby amended to read as follows:
449.0045 Facility for the dependent includes [a] :
1. A facility for the treatment of abuse of alcohol or drugs [,] ;
2. A halfway house for recovering alcohol and drug abusers [,] ;
3. A facility for the care of adults during the day [or] ;
4. A residential facility for groups [.] ; and
5. An agency to provide personal care services in the home.
Sec. 4. NRS 449.037 is hereby amended to read as follows:
449.037 1. The Board shall adopt:
(a) Licensing standards for each class of medical facility or facility for the dependent covered by NRS 449.001 to 449.240, inclusive, and for programs of hospice care.
(b) Regulations governing the licensing of such facilities and programs.
(c) Regulations governing the procedure and standards for granting an extension of the time for which a natural person may provide certain care in his home without being considered a residential facility for groups pursuant to NRS 449.017. The regulations must require that such grants are effective only if made in writing.
(d) Regulations establishing a procedure for the indemnification by the Health Division, from the amount of any surety bond or other obligation filed or deposited by a facility for refractive laser surgery pursuant to NRS 449.068 or 449.069, of a patient of the facility who has sustained any damages as a result of the bankruptcy of or any breach of contract by the facility.
(e) Any other regulations as it deems necessary or convenient to carry out the provisions of NRS 449.001 to 449.240, inclusive.
2. The Board shall adopt separate regulations governing the licensing and operation of:
(a) Facilities for the care of adults during the day; and
(b) Residential facilities for groups,
Κ which provide care to persons with Alzheimers disease.
3. The Board shall adopt separate regulations for:
(a) The licensure of rural hospitals which take into consideration the unique problems of operating such a facility in a rural area.
(b) The licensure of facilities for refractive laser surgery which take into consideration the unique factors of operating such a facility.
κ2005 Statutes of Nevada, Page 2166 (CHAPTER 458, AB 337)κ
(c) The licensure of mobile units which take into consideration the unique factors of operating a facility that is not in a fixed location.
4. The Board shall require that the practices and policies of each medical facility or facility for the dependent provide adequately for the protection of the health, safety and physical, moral and mental well-being of each person accommodated in the facility.
5. The Board shall establish minimum qualifications for administrators and employees of residential facilities for groups. In establishing the qualifications, the Board shall consider the related standards set by nationally recognized organizations which accredit such facilities.
6. The Board shall adopt separate regulations regarding the assistance which may be given pursuant to NRS 453.375 and 454.213 to an ultimate user of controlled substances or dangerous drugs by employees of residential facilities for groups. The regulations must require at least the following conditions before such assistance may be given:
(a) The ultimate users physical and mental condition is stable and is following a predictable course.
(b) The amount of the medication prescribed is at a maintenance level and does not require a daily assessment.
(c) A written plan of care by a physician or registered nurse has been established that:
(1) Addresses possession and assistance in the administration of the medication; and
(2) Includes a plan, which has been prepared under the supervision of a registered nurse or licensed pharmacist, for emergency intervention if an adverse condition results.
(d) The prescribed medication is not administered by injection or intravenously.
(e) The employee has successfully completed training and examination approved by the Health Division regarding the authorized manner of assistance.
7. The Board shall adopt separate regulations governing the licensing and operation of residential facilities for groups which provide assisted living services. The [regulations must prohibit a] Board shall not allow the licensing of a facility as a residential facility for groups which provide assisted living services and a residential facility for groups [from claiming] shall not claim that it provides assisted living services unless:
(a) Before authorizing a person to move into the facility, the facility makes a full written disclosure to the person regarding what services of personalized care will be available to the person and the amount that will be charged for those services throughout the residents stay at the facility.
(b) The residents of the facility reside in their own living units which:
(1) [Contain] Except as otherwise provided in subsection 8, contain toilet facilities [and a] ;
(2) Contain a sleeping area or bedroom; and
[(2)] (3) Are shared with another occupant only upon consent of both occupants.
(c) The facility provides personalized care to the residents of the facility and the general approach to operating the facility incorporates these core principles:
κ2005 Statutes of Nevada, Page 2167 (CHAPTER 458, AB 337)κ
(1) The facility is designed to create a residential environment that actively supports and promotes each residents quality of life and right to privacy;
(2) The facility is committed to offering high-quality supportive services that are developed by the facility in collaboration with the resident to meet the residents individual needs;
(3) The facility provides a variety of creative and innovative services that emphasize the particular needs of each individual resident and his personal choice of lifestyle;
(4) The operation of the facility and its interaction with its residents supports, to the maximum extent possible, each residents need for autonomy and the right to make decisions regarding his own life;
(5) The operation of the facility is designed to foster a social climate that allows the resident to develop and maintain personal relationships with fellow residents and with persons in the general community;
(6) The facility is designed to minimize and is operated in a manner which minimizes the need for its residents to move out of the facility as their respective physical and mental conditions change over time; and
(7) The facility is operated in such a manner as to foster a culture that provides a high-quality environment for the residents, their families, the staff, any volunteers and the community at large.
8. The Health Division may grant an exception from the requirement of subparagraph (1) of paragraph (b) of subsection 7 to a facility licensed as a residential facility for groups on or before the effective date of this act and which is authorized to have 10 or fewer beds and was originally constructed as a single-family dwelling, if the Health Division finds that:
(a) Strict application of that requirement would result in economic hardship to the facility requesting the exception; and
(b) The exception, if granted, would not:
(1) Cause substantial detriment to the health or welfare of any resident of the facility;
(2) Result in more than two residents sharing a toilet facility; or
(3) Otherwise impair substantially the purpose of that requirement.
9. The Board shall, if it determines necessary, adopt regulations and requirements to ensure that each residential facility for groups and its staff are prepared to respond to an emergency, including, without limitation:
(a) The adoption of plans to respond to a natural disaster and other types of emergency situations, including, without limitation, an emergency involving fire;
(b) The adoption of plans to provide for the evacuation of a residential facility for groups in an emergency, including, without limitation, plans to ensure that nonambulatory patients may be evacuated;
(c) Educating the residents of residential facilities for groups concerning the plans adopted pursuant to paragraphs (a) and (b); and
(d) Posting the plans or a summary of the plans adopted pursuant to paragraphs (a) and (b) in a conspicuous place in each residential facility for groups.
10. As used in this section, living unit means an individual private accommodation designated for a resident within the facility.
Sec. 5. NRS 449.060 is hereby amended to read as follows:
449.060 1. Each license issued pursuant to NRS 449.001 to 449.240, inclusive, and section 1 of this act expires on December 31 following its issuance and is renewable for 1 year upon reapplication and payment of all fees required pursuant to NRS 449.050 unless the Health Division finds, after an investigation, that the facility has not:
κ2005 Statutes of Nevada, Page 2168 (CHAPTER 458, AB 337)κ
issuance and is renewable for 1 year upon reapplication and payment of all fees required pursuant to NRS 449.050 unless the Health Division finds, after an investigation, that the facility has not:
(a) Satisfactorily complied with the provisions of NRS 449.001 to 449.240, inclusive, and section 1 of this act, or the standards and regulations adopted by the Board;
(b) Obtained the approval of the Director of the Department of Human Resources before undertaking a project, if such approval is required by NRS 439A.100; or
(c) Conformed to all applicable local zoning regulations.
2. Each reapplication for an agency to provide personal care services in the home, an agency to provide nursing in the home, a residential facility for intermediate care, a facility for skilled nursing or a residential facility for groups must include, without limitation, a statement that the facility or agency is in compliance with the provisions of NRS 449.173 to 449.188, inclusive.
Sec. 6. NRS 449.065 is hereby amended to read as follows:
449.065 1. Except as otherwise provided in subsections 6 and 7 and NRS 449.067, each facility for intermediate care, facility for skilled nursing, residential facility for groups , agency to provide personal care services in the home and agency to provide nursing in the home shall, when applying for a license or renewing a license, file with the Administrator of the Health Division a surety bond:
(a) If the facility or agency employs less than 7 employees, in the amount of $5,000;
(b) If the facility or agency employs at least 7 but not more than 25 employees, in the amount of $25,000; or
(c) If the facility or agency employs more than 25 employees, in the amount of $50,000.
2. A bond filed pursuant to this section must be executed by the facility or agency as principal and by a surety company as surety. The bond must be payable to the Aging Services Division of the Department of Human Resources and must be conditioned to provide indemnification to an older patient who the specialist for the rights of elderly persons determines has suffered property damage as a result of any act or failure to act by the facility or agency to protect the property of the older patient.
3. Except when a surety is released, the surety bond must cover the period of the initial license to operate or the period of the renewal, as appropriate.
4. A surety on any bond filed pursuant to this section may be released after the surety gives 30 days written notice to the Administrator of the Health Division, but the release does not discharge or otherwise affect any claim filed by an older patient for property damaged as a result of any act or failure to act by the facility or agency to protect the property of the older patient alleged to have occurred while the bond was in effect.
5. A license is suspended by operation of law when the facility or agency is no longer covered by a surety bond as required by this section or by a substitute for the surety bond pursuant to NRS 449.067. The Administrator of the Health Division shall give the facility or agency at least 20 days written notice before the release of the surety or the substitute for the surety, to the effect that the license will be suspended by operation of law until another surety bond or substitute for the surety bond is filed in the same manner and amount as the bond or substitute being terminated.
κ2005 Statutes of Nevada, Page 2169 (CHAPTER 458, AB 337)κ
until another surety bond or substitute for the surety bond is filed in the same manner and amount as the bond or substitute being terminated.
6. The Administrator of the Health Division may exempt a residential facility for groups from the requirement of filing a surety bond pursuant to this section if the Administrator determines that the requirement would result in undue hardship to the residential facility for groups.
7. The requirement of filing a surety bond set forth in this section does not apply to a facility for intermediate care, facility for skilled nursing, residential facility for groups , agency to provide personal care services in the home or agency to provide nursing in the home that is operated and maintained by the State of Nevada or an agency thereof.
Sec. 7. NRS 449.067 is hereby amended to read as follows:
449.067 1. As a substitute for the surety bond required pursuant to NRS 449.065, a facility for intermediate care, a facility for skilled nursing, a residential facility for groups , an agency to provide personal care services in the home and an agency to provide nursing in the home may deposit with any bank or trust company authorized to do business in this State, upon approval from the Administrator of the Health Division:
(a) An obligation of a bank, savings and loan association, thrift company or credit union licensed to do business in this State;
(b) Bills, bonds, notes, debentures or other obligations of the United States or any agency or instrumentality thereof, or guaranteed by the United States; or
(c) Any obligation of this State or any city, county, town, township, school district or other instrumentality of this State, or guaranteed by this State, in an aggregate amount, based upon principal amount or market value, whichever is lower.
2. The obligations of a bank, savings and loan association, thrift company or credit union must be held to secure the same obligation as would the surety bond required by NRS 449.065. With the approval of the Administrator of the Health Division, the depositor may substitute other suitable obligations for those deposited, which must be assigned to the Aging Services Division of the Department of Human Resources and are negotiable only upon approval by the Administrator of the Aging Services Division.
3. Any interest or dividends earned on the deposit accrue to the account of the depositor.
4. The deposit must be an amount at least equal to the surety bond required by NRS 449.065 and must state that the amount may not be withdrawn except by direct and sole order of the Administrator of the Aging Services Division.
Sec. 8. NRS 449.070 is hereby amended to read as follows:
449.070 The provisions of NRS 449.001 to 449.240, inclusive, and section 1 of this act do not apply to:
1. Any facility conducted by and for the adherents of any church or religious denomination for the purpose of providing facilities for the care and treatment of the sick who depend solely upon spiritual means through prayer for healing in the practice of the religion of the church or denomination, except that such a facility shall comply with all regulations relative to sanitation and safety applicable to other facilities of a similar category.
2. Foster homes as defined in NRS 424.014.
3. Any medical facility or facility for the dependent operated and maintained by the United States Government or an agency thereof.
κ2005 Statutes of Nevada, Page 2170 (CHAPTER 458, AB 337)κ
Sec. 9. NRS 449.179 is hereby amended to read as follows:
449.179 1. Except as otherwise provided in subsection 2, within 10 days after hiring an employee or entering into a contract with an independent contractor, the administrator of, or the person licensed to operate, an agency to provide personal care services in the home, an agency to provide nursing in the home, a facility for intermediate care, a facility for skilled nursing or a residential facility for groups shall:
(a) Obtain a written statement from the employee or independent contractor stating whether he has been convicted of any crime listed in NRS 449.188;
(b) Obtain an oral and written confirmation of the information contained in the written statement obtained pursuant to paragraph (a);
(c) Obtain from the employee or independent contractor two sets of fingerprints and a written authorization 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
(d) Submit to the Central Repository for Nevada Records of Criminal History the fingerprints obtained pursuant to paragraph (c).
2. The administrator of, or the person licensed to operate, an agency to provide personal care services in the home, an agency to provide nursing in the home, a facility for intermediate care, a facility for skilled nursing or a residential facility for groups is not required to obtain the information described in subsection 1 from an employee or independent contractor who provides proof that an investigation of his criminal history has been conducted by the Central Repository for Nevada Records of Criminal History within the immediately preceding 6 months and the investigation did not indicate that the employee or independent contractor had been convicted of any crime set forth in NRS 449.188.
3. The administrator of, or the person licensed to operate, an agency to provide personal care services in the home, an agency to provide nursing in the home, a facility for intermediate care, a facility for skilled nursing or a residential facility for groups shall ensure that the criminal history of each employee or independent contractor who works at the agency or facility is investigated at least once every 5 years. The administrator or person shall:
(a) If the agency or facility does not have the fingerprints of the employee or independent contractor on file, obtain two sets of fingerprints from the employee or independent contractor;
(b) Obtain written authorization from the employee or independent contractor to forward the fingerprints on file or obtained pursuant to paragraph (a) to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report; and
(c) Submit the fingerprints to the Central Repository for Nevada Records of Criminal History.
4. Upon receiving fingerprints submitted pursuant to this section, the Central Repository for Nevada Records of Criminal History shall determine whether the employee or independent contractor has been convicted of a crime listed in NRS 449.188 and immediately inform the Health Division and the administrator of, or the person licensed to operate, the agency or facility at which the person works whether the employee or independent contractor has been convicted of such a crime.
κ2005 Statutes of Nevada, Page 2171 (CHAPTER 458, AB 337)κ
5. The Central Repository for Nevada Records of Criminal History may impose a fee upon an agency or a facility that submits fingerprints pursuant to this section for the reasonable cost of the investigation. The agency or facility may recover from the employee or independent contractor not more than one-half of the fee imposed by the Central Repository. If the agency or facility requires the employee or independent contractor to pay for any part of the fee imposed by the Central Repository, it shall allow the employee or independent contractor to pay the amount through periodic payments.
Sec. 10. NRS 449.182 is hereby amended to read as follows:
449.182 Each agency to provide personal care services in the home, agency to provide nursing in the home, facility for intermediate care, facility for skilled nursing and residential facility for groups shall maintain accurate records of the information concerning its employees and independent contractors collected pursuant to NRS 449.179, and shall maintain a copy of the fingerprints submitted to the Central Repository for Nevada Records of Criminal History and proof that it submitted two sets of fingerprints to the Central Repository for its report. These records must be made available for inspection by the Health Division at any reasonable time and copies thereof must be furnished to the Health Division upon request.
Sec. 11. NRS 449.185 is hereby amended to read as follows:
449.185 1. Upon receiving information from the Central Repository for Nevada Records of Criminal History pursuant to NRS 449.179, or evidence from any other source, that an employee or independent contractor of an agency to provide personal care services in the home, an agency to provide nursing in the home, a facility for intermediate care, a facility for skilled nursing or a residential facility for groups has been convicted of a crime listed in paragraph (a) of subsection 1 of NRS 449.188, the administrator of, or the person licensed to operate, the agency or facility shall terminate the employment or contract of that person after allowing him time to correct the information as required pursuant to subsection 2.
2. If an employee or independent contractor believes that the information provided by the Central Repository is incorrect, he may immediately inform the agency or facility. An agency or facility that is so informed shall give the employee or independent contractor a reasonable amount of time of not less than 30 days to correct the information received from the Central Repository before terminating the employment or contract of the person pursuant to subsection 1.
3. An agency or facility that has complied with NRS 449.179 may not be held civilly or criminally liable based solely upon the ground that the agency or facility allowed an employee or independent contractor to work:
(a) Before it received the information concerning the employee or independent contractor from the Central Repository;
(b) During any period required pursuant to subsection 2 to allow the employee or independent contractor to correct that information;
(c) Based on the information received from the Central Repository, if the information received from the Central Repository was inaccurate; or
(d) Any combination thereof.
Κ An agency or facility may be held liable for any other conduct determined to be negligent or unlawful.
Sec. 12. NRS 449.188 is hereby amended to read as follows:
449.188 1. In addition to the grounds listed in NRS 449.160, the Health Division may deny a license to operate a facility for intermediate care, facility for skilled nursing or residential facility for groups to an applicant or may suspend or revoke the license of a licensee to operate such a facility if:
κ2005 Statutes of Nevada, Page 2172 (CHAPTER 458, AB 337)κ
care, facility for skilled nursing or residential facility for groups to an applicant or may suspend or revoke the license of a licensee to operate such a facility if:
(a) The applicant or licensee has been convicted of:
(1) Murder, voluntary manslaughter or mayhem;
(2) Assault with intent to kill or to commit sexual assault or mayhem;
(3) Sexual assault, statutory sexual seduction, incest, lewdness, indecent exposure or any other sexually related crime;
(4) Abuse or neglect of a child or contributory delinquency;
(5) A violation of any federal or state law regulating the possession, distribution or use of any controlled substance or any dangerous drug as defined in chapter 454 of NRS, within the past 7 years;
(6) A violation of any provision of NRS 200.50955 or 200.5099;
(7) Any offense involving fraud, theft, embezzlement, burglary, robbery, fraudulent conversion or misappropriation of property, within the immediately preceding 7 years; or
(8) Any other felony involving the use of a firearm or other deadly weapon, within the immediately preceding 7 years; or
(b) The licensee has continued to employ a person who has been convicted of a crime listed in paragraph (a).
2. In addition to the grounds listed in NRS 449.160, the Health Division may deny a license to operate an agency to provide personal care services in the home or an agency to provide nursing in the home to an applicant or may suspend or revoke the license of a licensee to operate such an agency if the licensee has continued to employ a person who has been convicted of a crime listed in paragraph (a) of subsection 1.
Sec. 13. NRS 449.230 is hereby amended to read as follows:
449.230 1. Any authorized member or employee of the Health Division may enter and inspect any building or premises at any time to secure compliance with or prevent a violation of any provision of NRS 449.001 to 449.245, inclusive.
2. The State Fire Marshal or his designee shall, upon receiving a request from the Health Division or a written complaint concerning compliance with the plans and requirements to respond to an emergency adopted pursuant to subsection [8] 9 of NRS 449.037:
(a) Enter and inspect a residential facility for groups; and
(b) Make recommendations regarding the adoption of plans and requirements pursuant to subsection [8] 9 of NRS 449.037,
Κ to ensure the safety of the residents of the facility in an emergency.
3. The State Health Officer or his designee shall enter and inspect at least annually each building or the premises of a residential facility for groups to ensure compliance with standards for health and sanitation.
4. An authorized member or employee of the Health Division shall enter and inspect any building or premises operated by a residential facility for groups within 72 hours after the Health Division is notified that a residential facility for groups is operating without a license.
Sec. 14. NRS 200.5093 is hereby amended to read as follows:
200.5093 1. Any person who is described in subsection 4 and who, in his professional or occupational capacity, knows or has reasonable cause to believe that an older person has been abused, neglected, exploited or isolated shall:
κ2005 Statutes of Nevada, Page 2173 (CHAPTER 458, AB 337)κ
(a) Except as otherwise provided in subsection 2, report the abuse, neglect, exploitation or isolation of the older person to:
(1) The local office of the Aging Services Division of the Department of Human Resources;
(2) A police department or sheriffs office;
(3) The countys office for protective services, if one exists in the county where the suspected action occurred; or
(4) A toll-free telephone service designated by the Aging Services Division of the Department of Human Resources; and
(b) Make such a report as soon as reasonably practicable but not later than 24 hours after the person knows or has reasonable cause to believe that the older person has been abused, neglected, exploited or isolated.
2. If a person who is required to make a report pursuant to subsection 1 knows or has reasonable cause to believe that the abuse, neglect, exploitation or isolation of the older person involves an act or omission of the Aging Services Division, another division of the Department of Human Resources or a law enforcement agency, the person shall make the report to an agency other than the one alleged to have committed the act or omission.
3. Each agency, after reducing a report to writing, shall forward a copy of the report to the Aging Services Division of the Department of Human Resources.
4. A report must be made pursuant to subsection 1 by the following persons:
(a) Every physician, dentist, dental hygienist, chiropractor, optometrist, podiatric physician, medical examiner, resident, intern, professional or practical nurse, physician assistant, psychiatrist, psychologist, marriage and family therapist, alcohol or drug abuse counselor, athletic trainer, driver of an ambulance, advanced emergency medical technician or other person providing medical services licensed or certified to practice in this State, who examines, attends or treats an older person who appears to have been abused, neglected, exploited or isolated.
(b) Any personnel of a hospital or similar institution engaged in the admission, examination, care or treatment of persons or an administrator, manager or other person in charge of a hospital or similar institution upon notification of the suspected abuse, neglect, exploitation or isolation of an older person by a member of the staff of the hospital.
(c) A coroner.
(d) Every clergyman, practitioner of Christian Science or religious healer, unless he acquired the knowledge of abuse, neglect, exploitation or isolation of the older person from the offender during a confession.
(e) Every person who maintains or is employed by an agency to provide personal care services in the home.
(f) Every person who maintains or is employed by an agency to provide nursing in the home.
[(f)] (g) Every attorney, unless he has acquired the knowledge of abuse, neglect, exploitation or isolation of the older person from a client who has been or may be accused of such abuse, neglect, exploitation or isolation.
[(g)] (h) Any employee of the Department of Human Resources.
[(h)] (i) Any employee of a law enforcement agency or a countys office for protective services or an adult or juvenile probation officer.
[(i)] (j) Any person who maintains or is employed by a facility or establishment that provides care for older persons.
κ2005 Statutes of Nevada, Page 2174 (CHAPTER 458, AB 337)κ
[(j)] (k) Any person who maintains, is employed by or serves as a volunteer for an agency or service which advises persons regarding the abuse, neglect, exploitation or isolation of an older person and refers them to persons and agencies where their requests and needs can be met.
[(k)] (l) Every social worker.
[(l)] (m) Any person who owns or is employed by a funeral home or mortuary.
5. A report may be made by any other person.
6. If a person who is required to make a report pursuant to subsection 1 knows or has reasonable cause to believe that an older person has died as a result of abuse, neglect or isolation, the person shall, as soon as reasonably practicable, report this belief to the appropriate medical examiner or coroner, who shall investigate the cause of death of the older person and submit to the appropriate local law enforcement agencies, the appropriate prosecuting attorney and the Aging Services Division of the Department of Human Resources his written findings. The written findings must include the information required pursuant to the provisions of NRS 200.5094, when possible.
7. A division, office or department which receives a report pursuant to this section shall cause the investigation of the report to commence within 3 working days. A copy of the final report of the investigation conducted by a division, office or department, other than the Aging Services Division of the Department of Human Resources, must be forwarded to the Aging Services Division within 90 days after the completion of the report.
8. If the investigation of a report results in the belief that an older person is abused, neglected, exploited or isolated, the Aging Services Division of the Department of Human Resources or the countys office for protective services may provide protective services to the older person if he is able and willing to accept them.
9. A person who knowingly and willfully violates any of the provisions of this section is guilty of a misdemeanor.
Sec. 15. NRS 427A.175 is hereby amended to read as follows:
427A.175 1. Within 1 year after an older patient sustains damage to his property as a result of any act or failure to act by a facility for intermediate care, a facility for skilled nursing, a residential facility for groups , an agency to provide personal care services in the home or an agency to provide nursing in the home in protecting the property, the older patient may file a verified complaint with the Division setting forth the details of the damage.
2. Upon receiving a verified complaint pursuant to subsection 1, the Administrator shall investigate the complaint and attempt to settle the matter through arbitration, mediation or negotiation.
3. If a settlement is not reached pursuant to subsection 2, the facility, agency or older patient may request a hearing before the Specialist for the Rights of Elderly Persons. If requested, the Specialist for the Rights of Elderly Persons shall conduct a hearing to determine whether the facility or agency is liable for damages to the patient. If the Specialist for the Rights of Elderly Persons determines that the facility or agency is liable for damages to the patient, he shall order the amount of the surety bond pursuant to NRS 449.065 or the substitute for the surety bond necessary to pay for the damages pursuant to NRS 449.067 to be released to the Division. The Division shall pay any such amount to the older patient or the estate of the older patient.
κ2005 Statutes of Nevada, Page 2175 (CHAPTER 458, AB 337)κ
Division shall pay any such amount to the older patient or the estate of the older patient.
4. The Division shall create a separate account for money to be collected and distributed pursuant to this section.
5. As used in this section:
(a) Agency to provide nursing in the home has the meaning ascribed to it in NRS 449.0015;
(b) Agency to provide personal care services in the home has the meaning ascribed to it in section 1 of this act;
(c) Facility for intermediate care has the meaning ascribed to it in NRS 449.0038;
[(c)] (d) Facility for skilled nursing has the meaning ascribed to it in NRS 449.0039;
[(d)] (e) Older patient has the meaning ascribed to it in NRS 449.063; and
[(e)] (f) Residential facility for groups has the meaning ascribed to it in NRS 449.017.
Sec. 16. NRS 632.472 is hereby amended to read as follows:
632.472 1. The following persons shall report in writing to the Executive Director of the Board any conduct of a licensee or holder of a certificate which constitutes a violation of the provisions of this chapter:
(a) Any physician, dentist, dental hygienist, chiropractor, optometrist, podiatric physician, medical examiner, resident, intern, professional or practical nurse, nursing assistant, physician assistant, psychiatrist, psychologist, marriage and family therapist, alcohol or drug abuse counselor, driver of an ambulance, advanced emergency medical technician or other person providing medical services licensed or certified to practice in this State.
(b) Any personnel of a medical facility or facility for the dependent engaged in the admission, examination, care or treatment of persons or an administrator, manager or other person in charge of a medical facility or facility for the dependent upon notification by a member of the staff of the facility.
(c) A coroner.
(d) Any person who maintains or is employed by an agency to provide personal care services in the home.
(e) Any person who maintains or is employed by an agency to provide nursing in the home.
[(e)] (f) Any employee of the Department of Human Resources.
[(f)] (g) Any employee of a law enforcement agency or a countys office for protective services or an adult or juvenile probation officer.
[(g)] (h) Any person who maintains or is employed by a facility or establishment that provides care for older persons.
[(h)] (i) Any person who maintains, is employed by or serves as a volunteer for an agency or service which advises persons regarding the abuse, neglect or exploitation of an older person and refers them to persons and agencies where their requests and needs can be met.
[(i)] (j) Any social worker.
2. Every physician who, as a member of the staff of a medical facility or facility for the dependent, has reason to believe that a nursing assistant has engaged in conduct which constitutes grounds for the denial, suspension or revocation of a certificate shall notify the superintendent, manager or other person in charge of the facility.
κ2005 Statutes of Nevada, Page 2176 (CHAPTER 458, AB 337)κ
person in charge of the facility. The superintendent, manager or other person in charge shall make a report as required in subsection 1.
3. A report may be filed by any other person.
4. Any person who in good faith reports any violation of the provisions of this chapter to the Executive Director of the Board pursuant to this section is immune from civil liability for reporting the violation.
5. As used in this section, agency to provide personal care services in the home has the meaning ascribed to it in section 1 of this act.
Sec. 17. This act becomes effective upon passage and approval for the purpose of adopting regulations by the State Board of Health and on July 1, 2005, for all other purposes.
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Senate Bill No. 338Committee on Judiciary
CHAPTER 459
AN ACT relating to business associations; enacting certain provisions pertaining to real estate investment trusts; revising the provisions governing voting rights and the use of proxies; clarifying the provisions governing the treatment of fractional shares of stock under certain circumstances; revising the provisions pertaining to treasury shares; authorizing a limited-liability company to create series of members interests with separate rights, powers or duties; clarifying the procedures pertaining to dissenters rights under certain circumstances; providing that business associations must staff their registered offices during business hours; revising the provisions governing the adoption of fictitious names by business associations and natural persons; enacting provisions governing securitization transactions; revising various other provisions concerning business associations; requiring a domestic or foreign limited-liability company to disclose the names of certain owners of the domestic or foreign limited-liability company to the State, a local government or the Board of Regents of the University of Nevada under certain circumstances; and providing other matters properly relating thereto.
[Approved: June 17, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 78.120 is hereby amended to read as follows:
78.120 1. Subject only to such limitations as may be provided by this chapter, or the articles of incorporation of the corporation, the board of directors has full control over the affairs of the corporation.
2. Except as otherwise provided in this subsection and subject to the bylaws, if any, adopted by the stockholders, the directors may make the bylaws of the corporation. Unless otherwise prohibited by any bylaw adopted by the stockholders, the directors may adopt, amend or repeal any bylaw, including any bylaw adopted by the stockholders. The articles of incorporation may grant the authority to adopt , amend or repeal bylaws exclusively to the directors.