2015 Statutes of Nevada, Pages 1133-1240

[Rev. 1/29/2019 3:11:31 PM]

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ê2015 Statutes of Nevada, Page 1133ê

CHAPTER 239, SB 231

Senate Bill No. 231–Committee on Commerce, Labor and Energy

CHAPTER 239

[Approved: May 27, 2015]

AN ACT relating to workers’ compensation; limiting the amount of a controlled substance that certain providers of health care may dispense to an injured employee; revising provisions related to the time that an insurer has to pay a bill submitted by a provider of health care; revising provisions relating to injured employees who were injured while intoxicated or under the influence of a controlled or prohibited substance; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

This bill revises various provisions of the Nevada Industrial Insurance Act which provides for the payment of compensation to employees who are injured or disabled as a result of an occupational injury or disease. (Chapters 616A-616D of NRS)

Section 1 of this bill sets forth that a provider of health care (not including a pharmacist or hospital) may dispense only an initial 15-day supply of a schedule II or III controlled substance to an injured employee. In addition, the provider of health care must include the original manufacturer’s National Drug Code for the drug on all bills and reports submitted to the insurer.

Existing law provides a two-step process for an insurer to pay a bill submitted by a provider of health care. First, the insurer must approve or deny the bill within 30 days of receipt. Second, if the insurer approves the bill, they must pay the bill within 30 days of the approval. (NRS 616C.136) Section 2 of this bill consolidates these two steps and requires that an insurer pay or deny a bill within 45 days after receipt.

Existing law provides that compensation is not payable to an employee whose injury is proximately caused by the employee’s intoxication or use of a controlled substance. Existing law also provides a rebuttable presumption that an employee’s intoxication or use of a controlled substance at the time of the injury is the proximate cause of the injury. (NRS 616C.230) Section 3 of this bill revises these provisions by replacing them with a requirement that the employee not receive compensation whenever an injury occurs to the employee while the employee is intoxicated or under the influence of a controlled or prohibited substance, unless the employee can prove by clear and convincing evidence that his or her intoxication or being under the influence of a controlled or prohibited substance was not the proximate cause of the injury. Further, section 3 provides that the employee is intoxicated or under the influence of a controlled or prohibited substance for the purposes of not receiving compensation whenever the employee meets or exceeds the limits for intoxication or use of a controlled or prohibited substance as set forth in NRS 484C.110, which prescribes such limits in the context of driving under the influence. In addition, section 3 provides that the results of any alcohol or drug test performed as a result of an injury must be made available to an insurer or employer upon request.

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ê2015 Statutes of Nevada, Page 1134 (CHAPTER 239, SB 231)ê

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

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 616C of NRS is hereby amended by adding thereto a new section to read as follows:

1. With respect to drugs prescribed and dispensed directly to an injured employee by a provider of health care:

(a) The provider of health care may dispense an initial supply of a controlled substance which is listed in schedule II or III by the State Board of Pharmacy pursuant to NRS 453.146 to an injured employee. Any controlled substances prescribed to an injured employee beyond the initial supply must be filled by a pharmacy that is registered with the State Board of Pharmacy.

(b) The provider of health care shall include the original manufacturer’s National Drug Code, as assigned by the United States Food and Drug Administration, on all bills and reports submitted to an insurer pursuant to this chapter.

(c) A repackaged National Drug Code must not be used and must not be considered an original manufacturer’s National Drug Code for the purposes of this section.

(d) A provider of health care who provides care on an outpatient basis may not charge an insurer or seek reimbursement for dispensing a nonprescription drug to an injured employee.

2. As used in this section:

(a) “Initial supply” means a quantity of a controlled substance that when used as prescribed does not exceed a 15-day supply and that is provided on a one-time basis.

(b) “Provider of health care” has the meaning ascribed to it in NRS 629.031, but does not include a pharmacist or a hospital as defined in NRS 449.012.

Sec. 2. NRS 616C.136 is hereby amended to read as follows:

616C.136 1. Except as otherwise provided in this section, an insurer shall [approve or deny a bill for accident benefits received from a provider of health care within 30 calendar days after the insurer receives the bill. If the bill for accident benefits is approved, the insurer shall] pay [the] or deny a bill for accident benefits received from a provider of health care within [30] 45 calendar days after [it is approved.] the insurer or third-party administrator receives the bill. Except as otherwise provided in this section, if the [approved] bill for accident benefits is not paid within that period, the insurer shall pay interest to the provider of health care at a rate of interest equal to the prime rate at the largest bank in Nevada, as ascertained by the Commissioner of Financial Institutions, on January 1 or July 1, as the case may be, immediately preceding the date on which the payment was due, plus 6 percent. The interest must be calculated from [30] 45 calendar days after the date on which the bill is [approved] received until the date on which the bill is paid.

2. If an insurer needs additional information to determine whether to [approve] pay or deny a bill for accident benefits received from a provider of health care, the insurer shall notify the provider of health care of his or her request for the additional information within 20 calendar days after the insurer receives the bill.

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ê2015 Statutes of Nevada, Page 1135 (CHAPTER 239, SB 231)ê

insurer receives the bill. The insurer shall notify the provider of health care of all the specific reasons for the delay in [approving] paying or denying the bill for accident benefits. Upon the receipt of such a request, the provider of health care shall furnish the additional information to the insurer within 20 calendar days after receiving the request. If the provider of health care fails to furnish the additional information within that period, the provider of health care is not entitled to the payment of interest to which the provider of health care would otherwise be entitled for the late payment of the bill for accident benefits. The insurer shall [approve] pay or deny the bill for accident benefits within 20 calendar days after the insurer receives the additional information. [If the bill for accident benefits is approved, the insurer shall pay the bill within 20 calendar days after the insurer receives the additional information.] Except as otherwise provided in this subsection, if the [approved] bill for accident benefits is not paid within that period, the insurer shall pay interest to the provider of health care at the rate set forth in subsection 1. The interest must be calculated from 20 calendar days after the date on which the insurer receives the additional information until the date on which the bill is paid.

3. An insurer shall not request a provider of health care to resubmit information that the provider of health care has previously provided to the insurer, unless the insurer provides a legitimate reason for the request and the purpose of the request is not to delay the payment of the accident benefits, harass the provider of health care or discourage the filing of claims.

4. An insurer shall not pay only a portion of a bill for accident benefits that [has been approved and] is fully payable.

5. The Administrator may require an insurer to provide evidence which demonstrates that the insurer has substantially complied with the requirements of this section, including, without limitation, payment within the time required of at least 95 percent of [approved] accident benefits . [or at least 90 percent of the total dollar amount of approved accident benefits.] If the Administrator determines that an insurer is not in substantial compliance with the requirements of this section, the Administrator may require the insurer to pay an administrative fine in an amount to be determined by the Administrator.

6. The payment of interest provided for in this section for [the] a late payment [of an approved claim] may be waived only if the payment was delayed because of an act of God or another cause beyond the control of the insurer.

7. Payments made by an insurer pursuant to this section are not an admission of liability for the accident benefits or any portion of the accident benefits.

Sec. 3. NRS 616C.230 is hereby amended to read as follows:

616C.230 1. Compensation is not payable pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS for an injury:

(a) Caused by the employee’s willful intention to injure himself or herself.

(b) Caused by the employee’s willful intention to injure another.

(c) [Proximately caused by the employee’s] That occurred while the employee was in a state of intoxication [. If the employee was intoxicated at the time of his or her injury, intoxication must be presumed to be a proximate cause unless rebutted by evidence to the contrary.] , unless the employee can prove by clear and convincing evidence that his or her state of intoxication was not the proximate cause of the injury.

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ê2015 Statutes of Nevada, Page 1136 (CHAPTER 239, SB 231)ê

was not the proximate cause of the injury. For the purposes of this paragraph, an employee is in a state of intoxication if the level of alcohol in the bloodstream of the employee meets or exceeds the limits set forth in subsection 1 of NRS 484C.110.

(d) [Proximately caused by the employee’s use] That occurred while the employee was under the influence of a controlled or prohibited substance [. If the employee had any] , unless the employee can prove by clear and convincing evidence that his or her being under the influence of a controlled or prohibited substance was not the proximate cause of the injury. For the purposes of this paragraph, an employee is under the influence of a controlled or prohibited substance if the employee had an amount of a controlled or prohibited substance in his or her system at the time of his or her injury that was equal to or greater than the limits set forth in subsection 3 of NRS 484C.110 and for which the employee did not have a current and lawful prescription issued in the employee’s name . [or that the employee was not using in accordance with the provisions of chapter 453A of NRS, the controlled substance must be presumed to be a proximate cause unless rebutted by evidence to the contrary.]

2. For the purposes of paragraphs (c) and (d) of subsection 1:

(a) The affidavit or declaration of an expert or other person described in NRS 50.310, 50.315 or 50.320 is admissible to prove the existence of [any] an impermissible quantity of alcohol or the existence, quantity or identity of [a] an impermissible controlled or prohibited substance in an employee’s system. If the affidavit or declaration is to be so used, it must be submitted in the manner prescribed in NRS 616C.355.

(b) When an examination requested or ordered includes testing for the use of alcohol or a controlled or prohibited substance, the laboratory that conducts the testing must be licensed pursuant to the provisions of chapter 652 of NRS.

(c) The results of any testing for the use of alcohol or a controlled or prohibited substance, irrespective of the purpose for performing the test, must be made available to an insurer or employer upon request, to the extent that doing so does not conflict with federal law.

3. No compensation is payable for the death, disability or treatment of an employee if the employee’s death is caused by, or insofar as the employee’s disability is aggravated, caused or continued by, an unreasonable refusal or neglect to submit to or to follow any competent and reasonable surgical treatment or medical aid.

4. If any employee persists in an unsanitary or injurious practice that imperils or retards his or her recovery, or refuses to submit to such medical or surgical treatment as is necessary to promote his or her recovery, the employee’s compensation may be reduced or suspended.

5. An injured employee’s compensation, other than accident benefits, must be suspended if:

(a) A physician or chiropractor determines that the employee is unable to undergo treatment, testing or examination for the industrial injury solely because of a condition or injury that did not arise out of and in the course of employment; and

(b) It is within the ability of the employee to correct the nonindustrial condition or injury.

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ê2015 Statutes of Nevada, Page 1137 (CHAPTER 239, SB 231)ê

Ê The compensation must be suspended until the injured employee is able to resume treatment, testing or examination for the industrial injury. The insurer may elect to pay for the treatment of the nonindustrial condition or injury.

6. As used in this section, “prohibited substance” has the meaning ascribed to it in NRS 484C.080.

Sec. 4. This act becomes effective upon passage and approval for the purposes of adopting any regulations or performing any preparatory administrative tasks that are necessary to carry out the provisions of this act, and on January 1, 2016, for all other purposes.

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CHAPTER 240, SB 232

Senate Bill No. 232–Committee on Commerce, Labor and Energy

CHAPTER 240

[Approved: May 27, 2015]

AN ACT relating to workers’ compensation; providing to a workers’ compensation insurer, organization for managed care, third-party administrator or employer certain subrogation rights regarding certain payments made for the treatment of an injured employee; revising provisions relating to the reopening of a workers’ compensation claim; revising provisions relating to a lump-sum award to an employee for a permanent partial disability; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

This bill revises various provisions of the Nevada Industrial Insurance Act, which provides for the payment of compensation to employees who are injured or disabled as the result of an occupational injury. (Chapters 616A-616D of NRS)

Existing law provides that if an insurer, organization for managed care, third-party administrator or employer denies coverage for medical treatment or services related to an employee’s injury, and the employee’s health or casualty insurer pays for such treatment or services, the health or casualty insurer may seek reimbursement from the insurer, organization for managed care, third-party administrator or employer if a hearing officer or appeals officer ultimately determines that the treatment or services should have been covered by the insurer, organization for managed care, third-party administrator or employer. (NRS 616C.138) Section 1 of this bill provides a reciprocal right to reimbursement in situations in which an insurer, organization for managed care, third-party administrator or employer appeals an order of a hearing officer, appeals officer or district court and the order is not stayed pending the appeal. In such situations, if the appeal is successful, the insurer, organization for managed care, third-party administrator or employer is entitled to seek reimbursement from the injured employee’s health or casualty insurer for payments made while the appeal was pending.

Existing law provides for the reopening of a workers’ compensation claim under certain circumstances and conditions. (NRS 616C.390) Under these provisions, an employee has 1 year to file an application to reopen a claim if the employee was not off work as a result of the injury and did not receive benefits for a permanent partial disability. Section 2 of this bill revises NRS 616C.390 to provide that an employee has 1 year to file an application to reopen a claim if the employee was not incapacitated from earning full wages for at least 5 consecutive days or 5 cumulative days within a 20-day period.

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ê2015 Statutes of Nevada, Page 1138 (CHAPTER 240, SB 232)ê

Existing law provides that an injured employee who suffers a permanent partial disability may elect to receive compensation for that injury in a lump sum. (NRS 616C.495) Section 3 of this bill provides that an employee who has sustained more than one permanent partial disability may not receive compensation for any portion of an injury that is based on a combined permanent partial disability rating for all the employee’s injuries that exceeds 100 percent.

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

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 616C.138 is hereby amended to read as follows:

616C.138 1. Except as otherwise provided in this section, if a provider of health care provides treatment or other services that an injured employee alleges are related to an industrial injury or occupational disease and an insurer, an organization for managed care, a third-party administrator or an employer who provides accident benefits for injured employees pursuant to NRS 616C.265 denies authorization or responsibility for payment for the treatment or other services, the provider of health care is entitled to be paid for the treatment or other services as follows:

(a) If the treatment or other services will be paid by a health insurer which has a contract with the provider of health care under a health benefit plan that covers the injured employee, the provider of health care is entitled to be paid the amount that is allowed for the treatment or other services under that contract.

(b) If the treatment or other services will be paid by a health insurer which does not have a contract with the provider of health care as set forth in paragraph (a) or by a casualty insurer or the injured employee, the provider of health care is entitled to be paid not more than:

(1) The amount which is allowed for the treatment or other services set forth in the schedule of fees and charges established pursuant to NRS 616C.260; or

(2) If the insurer which denied authorization or responsibility for the payment has contracted with an organization for managed care or with providers of health care pursuant to NRS 616B.527, the amount that is allowed for the treatment or other services under that contract.

2. The provisions of subsection 1:

(a) Apply only to treatment or other services provided by the provider of health care before the date on which the insurer, organization for managed care, third-party administrator or employer who provides accident benefits first denies authorization or responsibility for payments for the alleged industrial injury or occupational disease.

(b) Do not apply to a provider of health care that is a hospital as defined in NRS 439B.110. The provisions of this paragraph do not exempt the provider of health care from complying with the provisions of subsections 3 and [4.] 7.

3. If:

(a) The injured employee pays for the treatment or other services or a health or casualty insurer pays for the treatment or other services on behalf of the injured employee;

(b) The injured employee requests a hearing before a hearing officer or appeals officer regarding the denial of coverage; and

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ê2015 Statutes of Nevada, Page 1139 (CHAPTER 240, SB 232)ê

(c) The hearing officer or appeals officer ultimately determines that the treatment or other services should have been covered, or the insurer, organization for managed care, third-party administrator or employer who provides accident benefits subsequently accepts responsibility for payment,

Ê the hearing officer or appeals officer shall order the insurer, organization for managed care, third-party administrator or employer who provides accident benefits to pay to the injured employee or the health or casualty insurer the amount which the injured employee or the health or casualty insurer paid that is allowed for the treatment or other services set forth in the schedule of fees and charges established pursuant to NRS 616C.260 or, if the insurer has contracted with an organization for managed care or with providers of health care pursuant to NRS 616B.527, the amount that is allowed for the treatment or other services under that contract.

4. If:

(a) A hearing officer, appeals officer or district court issues an order or otherwise renders a decision requiring an insurer, organization for managed care, third-party administrator or employer to pay for treatment or other services provided to an injured employee;

(b) The insurer, organization for managed care, third-party administrator or employer appeals the order or decision, but is unable to obtain a stay of the order or decision;

(c) Payment for the treatment or other services provided to the injured employee is made by the insurer, organization for managed care, third-party administrator or employer during the period between the date of the issuance of the order or decision and the date of the final resolution of the appeal; and

(d) The appeal is subsequently resolved in favor of the insurer, organization for managed care, third-party administrator or employer,

Ê the insurer, organization for managed care, third-party administrator or employer may recover from any health or casualty insurer of the injured employee an amount calculated pursuant to subsection 5. Any recovery from a health or casualty insurer pursuant to this subsection is subject to the exclusions and limitations of the policy of health or casualty insurance covering the injured employee that relate to the diseases set forth in NRS 617.453, 617.455 and 617.457.

5. An insurer, organization for managed care, third-party administrator or employer entitled to recover for an amount paid during the pendency of an appeal pursuant to subsection 4, may recover from a health or casualty insurer of the injured employee the lesser of:

(a) The amount actually paid by the insurer, organization for managed care, third-party administrator or employer during the period between the issuance of the order and the final resolution of the appeal;

(b) The amount established for the treatment or services provided to the injured employee pursuant to NRS 616C.260 or the usual fee charged by the provider of health care, whichever is less;

(c) The amount provided for the treatment or services provided to the injured employee on an in-network basis if there is a contract between the provider of health care and the health or casualty insurer of the injured employee and the treatment or services are covered under the terms of the policy of health or casualty insurance covering the employee; or

(d) The amount provided for the treatment or services provided to the injured employee on an out-of-network basis pursuant to the terms of the policy of health or casualty insurance covering the injured employee if there is not a contract between the provider of health care and the health or casualty insurer of the injured employee.

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ê2015 Statutes of Nevada, Page 1140 (CHAPTER 240, SB 232)ê

policy of health or casualty insurance covering the injured employee if there is not a contract between the provider of health care and the health or casualty insurer of the injured employee.

6. If an insurer, organization for managed care, third-party administrator or employer is entitled to recover for an amount paid during the pendency of an appeal pursuant to subsection 4, upon a final resolution of the appeal in favor of the insurer, organization for managed care, third-party administrator or employer, the hearing officer, appeals officer or district court shall order the injured employee to provide to the insurer, organization for managed care, third-party administrator or employer:

(a) Any documentation in the possession of the injured employee related to any policy of health or casualty insurance which may have provided coverage to the injured employee for treatment or other services provided to the injured employee; and

(b) The identity and contact information of the insurer providing such health or casualty insurance.

7. If the injured employee or the health or casualty insurer paid the provider of health care any amount in excess of the amount that the provider would have been entitled to be paid pursuant to this section, the injured employee or the health or casualty insurer is entitled to recover the excess amount from the provider. Within 30 days after receiving notice of such an excess amount, the provider of health care shall reimburse the injured employee or the health or casualty insurer for the excess amount.

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

(a) “Casualty insurer” means any insurer or other organization providing coverage or benefits under a policy or contract of casualty insurance in the manner described in subsection 2 of NRS 681A.020.

(b) “Health benefit plan” means any type of policy, contract, agreement or plan providing health coverage or benefits in accordance with state or federal law.

(c) “Health insurer” means any insurer or other organization providing health coverage or benefits in accordance with state or federal law.

Sec. 2. NRS 616C.390 is hereby amended to read as follows:

616C.390 Except as otherwise provided in NRS 616C.392:

1. If an application to reopen a claim to increase or rearrange compensation is made in writing more than 1 year after the date on which the claim was closed, the insurer shall reopen the claim if:

(a) A change of circumstances warrants an increase or rearrangement of compensation during the life of the claimant;

(b) The primary cause of the change of circumstances is the injury for which the claim was originally made; and

(c) The application is accompanied by the certificate of a physician or a chiropractor showing a change of circumstances which would warrant an increase or rearrangement of compensation.

2. After a claim has been closed, the insurer, upon receiving an application and for good cause shown, may authorize the reopening of the claim for medical investigation only. The application must be accompanied by a written request for treatment from the physician or chiropractor treating the claimant, certifying that the treatment is indicated by a change in circumstances and is related to the industrial injury sustained by the claimant.

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ê2015 Statutes of Nevada, Page 1141 (CHAPTER 240, SB 232)ê

3. If a claimant applies for a claim to be reopened pursuant to subsection 1 or 2 and a final determination denying the reopening is issued, the claimant shall not reapply to reopen the claim until at least 1 year after the date on which the final determination is issued.

4. Except as otherwise provided in subsection 5, if an application to reopen a claim is made in writing within 1 year after the date on which the claim was closed, the insurer shall reopen the claim only if:

(a) The application is supported by medical evidence demonstrating an objective change in the medical condition of the claimant; and

(b) There is clear and convincing evidence that the primary cause of the change of circumstances is the injury for which the claim was originally made.

5. An application to reopen a claim must be made in writing within 1 year after the date on which the claim was closed if:

(a) The claimant [was not off work] did not meet the minimum duration of incapacity as set forth in NRS 616C.400 as a result of the injury; and

(b) The claimant did not receive benefits for a permanent partial disability.

Ê If an application to reopen a claim to increase or rearrange compensation is made pursuant to this subsection, the insurer shall reopen the claim if the requirements set forth in paragraphs (a), (b) and (c) of subsection 1 are met.

6. If an employee’s claim is reopened pursuant to this section, the employee is not entitled to vocational rehabilitation services or benefits for a temporary total disability if, before the claim was reopened, the employee:

(a) Retired; or

(b) Otherwise voluntarily removed himself or herself from the workforce,

Ê for reasons unrelated to the injury for which the claim was originally made.

7. One year after the date on which the claim was closed, an insurer may dispose of the file of a claim authorized to be reopened pursuant to subsection 5, unless an application to reopen the claim has been filed pursuant to that subsection.

8. An increase or rearrangement of compensation is not effective before an application for reopening a claim is made unless good cause is shown. The insurer shall, upon good cause shown, allow the cost of emergency treatment the necessity for which has been certified by a physician or a chiropractor.

9. A claim that closes pursuant to subsection 2 of NRS 616C.235 and is not appealed or is unsuccessfully appealed pursuant to the provisions of NRS 616C.305 and 616C.315 to 616C.385, inclusive, may not be reopened pursuant to this section.

10. The provisions of this section apply to any claim for which an application to reopen the claim or to increase or rearrange compensation is made pursuant to this section, regardless of the date of the injury or accident to the claimant. If a claim is reopened pursuant to this section, the amount of any compensation or benefits provided must be determined in accordance with the provisions of NRS 616C.425.

Sec. 3. NRS 616C.495 is hereby amended to read as follows:

616C.495 1. Except as otherwise provided in NRS 616C.380, an award for a permanent partial disability may be paid in a lump sum under the following conditions:

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ê2015 Statutes of Nevada, Page 1142 (CHAPTER 240, SB 232)ê

(a) A claimant injured on or after July 1, 1973, and before July 1, 1981, who incurs a disability that does not exceed 12 percent may elect to receive his or her compensation in a lump sum. A claimant injured on or after July 1, 1981, and before July 1, 1995, who incurs a disability that does not exceed [25] 30 percent may elect to receive his or her compensation in a lump sum.

(b) The spouse, or in the absence of a spouse, any dependent child of a deceased claimant injured on or after July 1, 1973, who is not entitled to compensation in accordance with NRS 616C.505, is entitled to a lump sum equal to the present value of the deceased claimant’s undisbursed award for a permanent partial disability.

(c) Any claimant injured on or after July 1, 1981, and before July 1, 1995, who incurs a disability that exceeds [25] 30 percent may elect to receive his or her compensation in a lump sum equal to the present value of an award for a disability of [25] 30 percent. If the claimant elects to receive compensation pursuant to this paragraph, the insurer shall pay in installments to the claimant that portion of the claimant’s disability in excess of [25] 30 percent.

(d) Any claimant injured on or after July 1, 1995, may elect to receive his or her compensation in a lump sum in accordance with regulations adopted by the Administrator and approved by the Governor. The Administrator shall adopt regulations for determining the eligibility of such a claimant to receive all or any portion of his or her compensation in a lump sum. Such regulations may include the manner in which an award for a permanent partial disability may be paid to such a claimant in installments. Notwithstanding the provisions of NRS 233B.070, any regulation adopted pursuant to this paragraph does not become effective unless it is first approved by the Governor.

(e) If the permanent partial disability rating of a claimant seeking compensation pursuant to this section would, when combined with any previous permanent partial disability rating of the claimant that resulted in an award of benefits to the claimant, result in the claimant having a total permanent partial disability rating in excess of 100 percent, the claimant’s disability rating upon which compensation is calculated must be reduced by such percentage as required to limit the total permanent partial disability rating of the claimant for all injuries to not more than 100 percent.

2. If the claimant elects to receive his or her payment for a permanent partial disability in a lump sum pursuant to subsection 1, all of the claimant’s benefits for compensation terminate. The claimant’s acceptance of that payment constitutes a final settlement of all factual and legal issues in the case. By so accepting the claimant waives all of his or her rights regarding the claim, including the right to appeal from the closure of the case or the percentage of his or her disability, except:

(a) The right of the claimant to:

(1) Reopen his or her claim in accordance with the provisions of NRS 616C.390; or

(2) Have his or her claim considered by his or her insurer pursuant to NRS 616C.392;

(b) Any counseling, training or other rehabilitative services provided by the insurer; and

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ê2015 Statutes of Nevada, Page 1143 (CHAPTER 240, SB 232)ê

Ê The claimant, when he or she demands payment in a lump sum, must be provided with a written notice which prominently displays a statement describing the effects of accepting payment in a lump sum of an entire permanent partial disability award, any portion of such an award or any uncontested portion of such an award, and that the claimant has 20 days after the mailing or personal delivery of the notice within which to retract or reaffirm the demand, before payment may be made and the claimant’s election becomes final.

3. Any lump-sum payment which has been paid on a claim incurred on or after July 1, 1973, must be supplemented if necessary to conform to the provisions of this section.

4. Except as otherwise provided in this subsection, the total lump-sum payment for disablement must not be less than one-half the product of the average monthly wage multiplied by the percentage of disability. If the claimant received compensation in installment payments for his or her permanent partial disability before electing to receive payment for that disability in a lump sum, the lump-sum payment must be calculated for the remaining payment of compensation.

5. The lump sum payable must be equal to the present value of the compensation awarded, less any advance payment or lump sum previously paid. The present value must be calculated using monthly payments in the amounts prescribed in subsection 7 of NRS 616C.490 and actuarial annuity tables adopted by the Division. The tables must be reviewed annually by a consulting actuary.

6. If a claimant would receive more money by electing to receive compensation in a lump sum than the claimant would if he or she receives installment payments, the claimant may elect to receive the lump-sum payment.

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CHAPTER 241, SB 242

Senate Bill No. 242–Senator Roberson

CHAPTER 241

[Approved: May 27, 2015]

AN ACT relating to payday lending; enacting the Payday Lender Best Practices Act; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

Existing law authorizes the Commissioner of Financial Institutions to license and regulate persons providing check-cashing services, deferred deposit loan services, high-interest loan services and title loan services. (Chapter 604A of NRS) This bill enacts the Payday Lender Best Practices Act, which adopts certain provisions of the Community Financial Services Association of America’s Best Practices for the Payday Loan Industry and makes those provisions applicable to persons providing deferred deposit loan services, high-interest loan services and title loan services.

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ê2015 Statutes of Nevada, Page 1144 (CHAPTER 241, SB 242)ê

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

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 604A of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 13, inclusive, of this act.

Sec. 2. The provisions of sections 2 to 13, inclusive, of this act may be cited as the Payday Lender Best Practices Act.

Sec. 3. 1. In addition to the requirements of any other provision of this chapter, or any applicable law or regulation of this State or federal law or regulation, a licensee who has been issued one or more licenses to operate a deferred deposit loan service, high-interest loan service or title loan service pursuant to this chapter shall comply with the provisions of sections 2 to 13, inclusive, of this act.

2. The provisions of sections 2 to 13, inclusive, of this act do not apply to the operation of a check-cashing service licensed pursuant to this chapter.

Sec. 4. 1. A licensee who has been issued one or more licenses to operate a deferred deposit loan service, high-interest loan service or title loan service pursuant to this chapter shall comply with the disclosure requirements of NRS 604A.405 and the Federal Truth in Lending Act. A loan agreement between such a licensee and a customer must fully disclose the terms of the transaction, including, without limitation, the amount of any fees charged for providing deferred deposit loan services, high-interest loan services or title loan services represented in both a dollar amount and as an annual percentage rate.

2. A licensee described in subsection 1 shall prominently disclose in the loan agreement all fees charged for providing deferred deposit loan services, high-interest loan services or title loan services to a customer before he or she enters into the transaction process.

Sec. 5. A licensee who has been issued one or more licenses to operate a deferred deposit loan service, high-interest loan service or title loan service pursuant to this chapter shall not charge a fee for providing deferred deposit loan services, high-interest loan services or title loan services that is prohibited by an applicable law or regulation of this State or federal law or regulation.

Sec. 6. A licensee who has been issued one or more licenses to operate a deferred deposit loan service, high-interest loan service or title loan service pursuant to this chapter shall comply with the provisions of subsection 6 of NRS 604A.440 prohibiting advertisements that are false, misleading or deceptive with regard to the rates, terms or conditions for loans.

Sec. 7. A licensee who has been issued one or more licenses to operate a deferred deposit loan service, high-interest loan service or title loan service pursuant to this chapter shall place the following notices on marketing materials and television, print, radio and Internet advertising when space or time reasonably permits:

1. Deferred deposit loans, high-interest loans and title loans should be used for short-term financial needs only and not as a long-term financial solution; and

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ê2015 Statutes of Nevada, Page 1145 (CHAPTER 241, SB 242)ê

2. Customers with credit difficulties should seek credit counseling before entering into any loan transaction.

Sec. 8. A licensee who has been issued one or more licenses to operate a deferred deposit loan service, high-interest loan service or title loan service pursuant to this chapter shall not allow a customer to extend, rollover, renew, refinance or consolidate any deferred deposit loan or high-interest loan for a period longer than the period set forth in subsection 3 of NRS 604A.408.

Sec. 9. A licensee who has been issued one or more licenses to operate a deferred deposit loan service, high-interest loan service or title loan service pursuant to this chapter shall provide each customer with the ability to rescind any deferred deposit loan, high-interest loan or title loan in accordance with the provisions of NRS 604A.460.

Sec. 10. A licensee who has been issued one or more licenses to operate a deferred deposit loan service, high-interest loan service or title loan service pursuant to this chapter must collect past due accounts in a professional, fair and lawful manner in accordance with the provisions of NRS 604A.440 and applicable provisions of the Federal Fair Debt Collection Practices Act, 15 U.S.C. § 1692 et seq., as amended. Such a licensee shall not use unlawful threats, intimidation or harassment to collect unpaid accounts.

Sec. 11. A licensee who has been issued one or more licenses to operate a deferred deposit loan service, high-interest loan service or title loan service pursuant to this chapter shall report to the Commissioner any person the licensee knows, or reasonably should know, is in violation of the provisions of this chapter within 30 days after the date the licensee knows, or reasonably should know, of the violation.

Sec. 12. A licensee who has been issued one or more licenses to operate a deferred deposit loan service, high-interest loan service or title loan service pursuant to this chapter shall provide to any customer who is unable to repay a deferred deposit loan, high-interest loan or title loan in accordance with the loan agreement between the licensee and the customer the opportunity to enter into a repayment plan pursuant to NRS 604A.475. Such a licensee shall disclose the availability of such a repayment plan to any customer who is unable to repay a loan.

Sec. 13. A licensee that offers deferred deposit loan services, high-interest loan services or title loan services through an Internet website must be licensed in each state, as applicable, where any of its customers reside and shall comply with any state or federal law or regulation applicable to such jurisdiction.

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ê2015 Statutes of Nevada, Page 1146ê

CHAPTER 242, SB 248

Senate Bill No. 248–Committee on Health and Human Services

CHAPTER 242

[Approved: May 27, 2015]

AN ACT relating to elections; revising provisions regarding the provision of assistance in casting a ballot to a person with a disability or a person with an inability to read or write English; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

Existing law provides that, with limited exceptions, a person with a physical disability or an inability to read or write English is entitled to assistance in casting a ballot if the need for assistance is apparent or known to the election board, but the election board may require such a person to sign a statement under penalty of perjury swearing that he or she requires such assistance. (NRS 293.296, 293C.282) Sections 7 and 9 of this bill establish that: (1) a person with a disability or an inability to read or write English remains entitled to assistance in casting a ballot if the need for such assistance is apparent or known to the election board; (2) a person with a disability or an inability to read or write English may request assistance in voting in any manner; and (3) an election board may not require a person with a disability or an inability to read or write English to sign a statement under penalty of perjury swearing that he or she requires assistance in casting a ballot. Under existing law, a person with a disability that prevents him or her from marking or signing a ballot, or using a voting device without assistance, is required, as a prerequisite to receiving an absent ballot, to furnish a statement from a licensed physician certifying that the person is a person with a disability. (NRS 293.3165, 293C.318) Sections 8 and 10 of this bill eliminate the requirement that a person with a disability furnish a statement from a physician certifying that the person is a person with a physical disability as a prerequisite to the person receiving an absent ballot.

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

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Sections 1-6. (Deleted by amendment.)

Sec. 7. NRS 293.296 is hereby amended to read as follows:

293.296 1. Any registered voter who by reason of a physical disability or an inability to read or write English is unable to mark a ballot or use any voting device without assistance is entitled to assistance from a consenting person of his or her own choice, except:

(a) The voter’s employer or an agent of the voter’s employer; or

(b) An officer or agent of the voter’s labor organization.

2. A person providing assistance pursuant to this section to a voter in casting a vote shall not disclose any information with respect to the casting of that ballot.

3. The right to assistance in casting a ballot may not be denied or impaired when the need for assistance is apparent or is known to the election board or any member thereof [, but the election board may require a registered voter to sign a statement that he or she requires assistance in casting a vote by reason of a physical disability or an inability to read or write English when the need for assistance is not apparent or no member of the election board has knowledge thereof.

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ê2015 Statutes of Nevada, Page 1147 (CHAPTER 242, SB 248)ê

the election board has knowledge thereof. The statement must be executed under penalty of perjury.] or when the registered voter requests such assistance in any manner.

4. In addition to complying with the requirements of this section, the county clerk and election board officer shall, upon the request of a registered voter with a physical disability, make reasonable accommodations to allow the voter to vote at his or her polling place.

Sec. 8. NRS 293.3165 is hereby amended to read as follows:

293.3165 1. A registered voter who, because of a physical disability, is unable to mark or sign a ballot or use a voting device without assistance may submit a written statement to the appropriate county clerk requesting that the registered voter receive an absent ballot for each election conducted during the period specified in subsection 3.

2. A written statement submitted pursuant to subsection 1 must:

(a) [Include a statement from a physician licensed in this State certifying that the registered voter is a person with a physical disability and, because of the physical disability, is unable to mark or sign a ballot or use a voting device without assistance;

(b)] Designate the person who will assist the registered voter in marking and signing the absent ballot on behalf of the registered voter; and

[(c)] (b) Include the name, address and signature of the person designated pursuant to paragraph [(b).] (a).

3. Upon receipt of a written statement submitted by a registered voter pursuant to subsection 1, the county clerk shall, if the statement includes the information required pursuant to subsection 2, issue an absent ballot to the registered voter for each election that is conducted during the year immediately succeeding the date the written statement is submitted to the county clerk.

4. [To determine whether a registered voter is entitled to receive an absent ballot pursuant to this section, the county clerk may, every year after an absent ballot is issued to a registered voter pursuant to subsection 3, require the registered voter to submit a statement from a licensed physician as specified in paragraph (a) of subsection 2. If a statement from a physician licensed in this State submitted pursuant to this subsection indicates that the registered voter is no longer physically disabled, the county clerk shall not issue an absent ballot to the registered voter pursuant to this section.

5.] A person designated pursuant to paragraph [(b)] (a) of subsection 2 may, on behalf of and at the direction of the registered voter, mark and sign an absent ballot issued to the registered voter pursuant to the provisions of this section. If the person marks and signs the ballot, the person shall indicate next to his or her signature that the ballot has been marked and signed on behalf of the registered voter.

[6.] 5. The procedure authorized pursuant to this section is subject to all other provisions of this chapter relating to voting by absent ballot to the extent that those provisions are not inconsistent with the provisions of this section.

Sec. 9. NRS 293C.282 is hereby amended to read as follows:

293C.282 1. Any registered voter who, because of a physical disability or an inability to read or write English, is unable to mark a ballot or use any voting device without assistance is entitled to assistance from a consenting person of his or her own choice, except:

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ê2015 Statutes of Nevada, Page 1148 (CHAPTER 242, SB 248)ê

(a) The voter’s employer or an agent of the voter’s employer; or

(b) An officer or agent of the voter’s labor organization.

2. A person providing assistance pursuant to this section to a voter in casting a vote shall not disclose any information with respect to the casting of that ballot.

3. The right to assistance in casting a ballot may not be denied or impaired when the need for assistance is apparent or is known to the election board or any member thereof [, but the election board may require a registered voter to sign a statement that he or she requires assistance in casting a vote because of a physical disability or an inability to read or write English when the need for assistance is not apparent or no member of the election board has knowledge thereof. The statement must be executed under penalty of perjury.] or when the registered voter requests such assistance in any manner.

4. In addition to complying with the requirements of this section, the city clerk and election board officer shall, upon the request of a registered voter with a physical disability, make reasonable accommodations to allow the voter to vote at his or her polling place.

Sec. 10. NRS 293C.318 is hereby amended to read as follows:

293C.318 1. A registered voter who, because of a physical disability, is unable to mark or sign a ballot or use a voting device without assistance may submit a written statement to the appropriate city clerk requesting that the registered voter receive an absent ballot for each city election conducted during the period specified in subsection 3.

2. A written statement submitted pursuant to subsection 1 must:

(b)] Designate the person who will assist the registered voter in marking and signing the absent ballot on behalf of the registered voter; and

[(c)] (b) Include the name, address and signature of the person designated pursuant to paragraph [(b).] (a).

3. Upon receipt of a written statement submitted by a registered voter pursuant to subsection 1, the city clerk shall, if the statement includes the information required pursuant to subsection 2, issue an absent ballot to the registered voter for each city election that is conducted during the year immediately succeeding the date the written statement is submitted to the city clerk.

4. [To determine whether a registered voter is entitled to receive an absent ballot pursuant to this section, the city clerk may, every year after an absent ballot is issued to a registered voter pursuant to subsection 3, require the registered voter to submit a statement from a licensed physician as specified in paragraph (a) of subsection 2. If a statement from a physician licensed in this State submitted pursuant to this subsection indicates that the registered voter is no longer physically disabled, the city clerk shall not issue an absent ballot to the registered voter pursuant to this section.

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ê2015 Statutes of Nevada, Page 1149 (CHAPTER 242, SB 248)ê

this section. If the person marks and signs the ballot, the person shall indicate next to his or her signature that the ballot has been marked and signed on behalf of the registered voter.

Secs. 11-49. (Deleted by amendment.)

Sec. 50. This act becomes effective upon passage and approval.

________

CHAPTER 243, SB 249

Senate Bill No. 249–Senators Goicoechea and Hardy

CHAPTER 243

[Approved: May 27, 2015]

AN ACT relating to local government financial administration; reducing the time in which a person who is owed certain money by a county may make a demand for payment; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

Existing law provides that a person who is owed money by a county and who fails or neglects to demand payment of the money within 2 years is disallowed from collecting the amount owed unless, within 6 years after the initial 2-year period, the person makes a demand for payment. (NRS 354.190) This bill provides that the owner of an indebtedness of the county must demand the payment of the indebtedness from the county not later than 1 year after the date of the original allowance or the payment of the indebtedness is barred unless the board of county commissioners allows payment.

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

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 354.190 is hereby amended to read as follows:

354.190 1. [When there shall be in the general, contingent, indigent sick or road fund of a county any sum of money which has been in the fund for the term of 2 years or more by reason of the failure or neglect of the owner of such indebtedness to demand payment of the same, such sum of money shall be applied to the payment of the more recent indebtedness of the county payable out of such fund.

2. If the] The owner of [such allowance shall demand such sum of money within 6 years] an indebtedness of a county must demand payment of the indebtedness from the county not later than 1 year [from] after the date of the original allowance . [of such sum of money, and after such sum of money has been so applied, the board of county commissioners may again allow the demand for the amount originally allowed, without interest, and no more, and any such demand so reallowed shall be paid in the order of its reallowance out of the fund originally accountable therefor, if such fund exists.

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ê2015 Statutes of Nevada, Page 1150 (CHAPTER 243, SB 249)ê

exists. If no such fund exists at the time, then such demand shall be paid in the order of its reallowance out of the county general fund.

3. Should]

2. If the payment of [such sum of money not be] an indebtedness of the county is not demanded within [6 years] 1 year [from and] after the original allowance [of such demand, then such indebtedness shall not be reallowed by the board of county commissioners and] , except as otherwise provided in subsection 3, the payment thereof shall be forever barred.

3. If the payment of an indebtedness of the county is demanded more than 1 year after the original allowance, the board of county commissioners may allow the payment. Nothing in this subsection requires the board to allow the payment of an indebtedness that is demanded more than 1 year after the original allowance.

4. Nothing in this section shall be so construed as to affect or repeal any law providing for the redemption or funding of the indebtedness of any county.

Sec. 2. This act becomes effective on July 1, 2015.

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CHAPTER 244, SB 251

Senate Bill No. 251–Senators Hardy, Roberson, Brower, Farley, Harris; Ford, Goicoechea and Gustavson

Joint Sponsors: Assemblymen Oscarson and Titus

CHAPTER 244

[Approved: May 27, 2015]

AN ACT relating to professions; ratifying the Interstate Medical Licensure Compact; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

Existing law generally provides for the regulation of physicians and osteopathic physicians in this State. (Chapters 630 and 633 of NRS) This bill ratifies the Interstate Medical Licensure Compact. If a physician or osteopathic physician is licensed in this State, the Compact provides for reciprocal licensure for that physician or osteopathic physician in all other member states of the Compact. The Compact regulates the licensure and discipline of physicians and osteopathic physicians holding reciprocal licenses through the Compact. The Compact becomes effective upon ratification by seven states. Currently, no state has yet ratified the Compact.

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

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Title 54 of NRS is hereby amended by adding thereto a new chapter to read as follows:

The Interstate Medical Licensure Compact is hereby ratified and entered into with all other jurisdictions legally joining the Compact, in substantially the form set forth in this chapter:

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ê2015 Statutes of Nevada, Page 1151 (CHAPTER 244, SB 251)ê

INTERSTATE MEDICAL LICENSURE COMPACT

ARTICLE 1. PURPOSE

In order to strengthen access to health care, and in recognition of the advances in the delivery of health care, the member states of the Interstate Medical Licensure Compact have allied in common purpose to develop a comprehensive process that complements the existing licensing and regulatory authority of state medical boards and provides a streamlined process which allows physicians to become licensed in multiple states, thereby enhancing the portability of a medical license and ensuring the safety of patients. The Compact creates another pathway for licensure and does not otherwise change a state’s existing Medical Practice Act. The Compact also adopts the prevailing standard for licensure and affirms that the practice of medicine occurs where the patient is located at the time of the physician-patient encounter, and therefore, requires the physician to be under the jurisdiction of the state medical board where the patient is located. State medical boards that participate in the Compact retain the jurisdiction to impose an adverse action against a license to practice medicine in that state issued to a physician through the procedures in the Compact.

ARTICLE 2. DEFINITIONS

In this Compact:

(a) “Bylaws” means those bylaws established by the Interstate Commission pursuant to Article 11 for its governance, or for directing and controlling its actions and conduct.

(b) “Commissioner” means the voting representative appointed by each member board pursuant to Article 11.

(c) “Conviction” means a finding by a court that an individual is guilty of a criminal offense through adjudication, or entry of a plea of guilt or no contest to the charge by the offender. Evidence of an entry of a conviction of a criminal offense by the court shall be considered final for purposes of disciplinary action by a member board.

(d) “Expedited license” means a full and unrestricted medical license granted by a member state to an eligible physician through the process set forth in the Compact.

(e) “Interstate Commission” means the Interstate Medical Licensure Compact Commission created pursuant to Article 11.

(f) “License” means authorization by a state for a physician to engage in the practice of medicine, which would be unlawful without the authorization.

(g) “Medical Practice Act” means laws and regulations governing the practice of allopathic and osteopathic medicine within a member state.

(h) “Member board” means a state agency in a member state that acts in the sovereign interests of the state by protecting the public through licensure, regulation and education of physicians as directed by the state government.

(i) “Member state” means a state that has enacted the Compact.

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ê2015 Statutes of Nevada, Page 1152 (CHAPTER 244, SB 251)ê

(j) “Practice of medicine” means the clinical prevention, diagnosis or treatment of a human disease, injury or condition requiring a physician to obtain and maintain a license in compliance with the Medical Practice Act of a member state.

(k) “Physician” means any person who:

(1) Is a graduate of a medical school accredited by the Liaison Committee on Medical Education, the Commission on Osteopathic College Accreditation of the American Osteopathic Association or a medical school listed in the International Medical Education Directory or its equivalent;

(2) Has passed each component of the United States Medical Licensing Examination (USMLE) or the Comprehensive Osteopathic Medical Licensing Examination (COMLEX-USA) within three attempts, or any of its predecessor examinations accepted by a state medical board as an equivalent examination for licensure purposes;

(3) Has successfully completed graduate medical education approved by the Accreditation Council for Graduate Medical Education or the American Osteopathic Association;

(4) Holds specialty certification or a time-unlimited specialty certificate recognized by the American Board of Medical Specialties or the American Osteopathic Association’s Bureau of Osteopathic Specialists;

(5) Possesses a full and unrestricted license to engage in the practice of medicine issued by a member board;

(6) Has never been convicted, received adjudication, deferred adjudication, community supervision or deferred disposition for any offense by a court of appropriate jurisdiction;

(7) Has never held a license authorizing the practice of medicine subjected to discipline by a licensing agency in any state, federal or foreign jurisdiction, excluding any action related to nonpayment of fees related to a license;

(8) Has never had a controlled substance license or permit suspended or revoked by a state or the United States Drug Enforcement Administration; and

(9) Is not under active investigation by a licensing agency or law enforcement authority in any state, federal or foreign jurisdiction.

(l) “Offense” means a felony, gross misdemeanor or crime of moral turpitude.

(m) “Rule” means a written statement by the Interstate Commission promulgated pursuant to Article 12 of the Compact that is of general applicability, implements, interprets or prescribes a policy or provision of the Compact, or an organizational, procedural or practice requirement of the Interstate Commission, and has the force and effect of statutory law in a member state, and includes the amendment, repeal or suspension of an existing rule.

(n) “State” means any state, commonwealth, district or territory of the United States.

(o) “State of principal license” means a member state where a physician holds a license to practice medicine and which has been designated as such by the physician for purposes of registration and participation in the Compact.

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ê2015 Statutes of Nevada, Page 1153 (CHAPTER 244, SB 251)ê

ARTICLE 3. ELIGIBILITY

(a) A physician must meet the eligibility requirements as defined in Article 2(k) to receive an expedited license under the terms and provisions of the Compact.

(b) A physician who does not meet the requirements of Article 2(k) may obtain a license to practice medicine in a member state if the physician complies with all laws and requirements, other than the Compact, relating to the issuance of a license to practice medicine in that state.

ARTICLE 4. DESIGNATION OF STATE OF PRINCIPAL LICENSE

(a) A physician shall designate a member state as the state of principal license for purposes of registration for expedited licensure through the Compact if the physician possesses a full and unrestricted license to practice medicine in the state, and the state is:

(1) The state of primary residence for the physician;

(2) The state where at least 25 percent of the practice of medicine occurs;

(3) The location of the physician’s employer; or

(4) If no state qualifies under paragraph (1), (2) or (3), the state designated as the state of residence for the purpose of federal income tax.

(b) A physician may redesignate a member state as the state of principal license at any time, as long as the state meets the requirements in subsection (a).

(c) The Interstate Commission is authorized to develop rules to facilitate redesignation of another member state as the state of principal license.

ARTICLE 5. APPLICATION AND ISSUANCE OF EXPEDITED LICENSURE

(a) A physician seeking licensure through the Compact shall file an application for an expedited license with the member board of the state selected by the physician as the state of principal license.

(b) Upon receipt of an application for an expedited license, the member board within the state selected as the state of principal license shall evaluate whether the physician is eligible for expedited licensure and issue a letter of qualification, verifying or denying the physician’s eligibility, to the Interstate Commission. For purposes of this subsection:

(1) Static qualifications, which include verification of medical education, graduate medical education, results of any medical or licensing examination and other qualifications as determined by the Interstate Commission through rule, shall not be subject to additional primary source verification where the primary source has already been verified by the state of principal license.

(2) The member board within the state selected as the state of principal license shall, in the course of verifying eligibility, perform a criminal background check of an applicant, including the use of the results of fingerprint or other biometric data checks compliant with the requirements of the Federal Bureau of Investigation, with the exception of federal employees who have a suitability determination in accordance with 5 C.F.R. § 731.202.

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ê2015 Statutes of Nevada, Page 1154 (CHAPTER 244, SB 251)ê

requirements of the Federal Bureau of Investigation, with the exception of federal employees who have a suitability determination in accordance with 5 C.F.R. § 731.202.

(3) Appeal on the determination of eligibility shall be made to the member state where the application was filed and shall be subject to the law of that state.

(c) Upon verification in subsection (b), physicians eligible for an expedited license shall complete the registration process established by the Interstate Commission to receive a license in a member state selected pursuant to subsection (a), including the payment of any applicable fees.

(d) After receiving verification of eligibility under subsection (b) and any fees under subsection (c), a member board shall issue an expedited license to the physician. This license shall authorize the physician to practice medicine in the issuing state consistent with the Medical Practice Act and all applicable laws and regulations of the issuing member board and member state.

(e) An expedited license shall be valid for a period consistent with the licensure period in the member state and in the same manner as required for other physicians holding a full and unrestricted license within the member state.

(f) An expedited license obtained through the Compact shall be terminated if a physician fails to maintain a license in the state of principal licensure for a nondisciplinary reason, without redesignation of a new state of principal licensure.

(g) The Board of Medical Examiners and the State Board of Osteopathic Medicine, in conjunction with the Interstate Commission, are authorized to develop rules regarding the application process, including payment of any applicable fees and the issuance of an expedited license.

ARTICLE 6. FEES FOR EXPEDITED LICENSURE

(a) A member state issuing an expedited license authorizing the practice of medicine in that state may impose a fee for a license issued or renewed through the Compact.

(b) The Board of Medical Examiners and the State Board of Osteopathic Medicine, in conjunction with the Interstate Commission, are authorized to develop rules regarding fees for expedited licenses.

ARTICLE 7. RENEWAL AND CONTINUED PARTICIPATION

(a) A physician seeking to renew an expedited license granted in a member state shall complete a renewal process with the Board of Medical Examiners or the State Board of Osteopathic Medicine, as applicable, in conjunction with the Interstate Commission, if the physician:

(1) Maintains a full and unrestricted license in a state of principal license;

(2) Has not been convicted, received adjudication, deferred adjudication, community supervision or deferred disposition for any offense by a court of appropriate jurisdiction;

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ê2015 Statutes of Nevada, Page 1155 (CHAPTER 244, SB 251)ê

(3) Has not had a license authorizing the practice of medicine subject to discipline by a licensing agency in any state, federal or foreign jurisdiction, excluding any action related to nonpayment of fees related to a license; and

(4) Has not had a controlled substance license or permit suspended or revoked by a state or the United States Drug Enforcement Administration.

(b) Physicians shall comply with all continuing professional development or continuing medical education requirements for renewal of a license issued by a member state.

(c) The Board of Medical Examiners and the State Board of Osteopathic Medicine, as applicable, shall collect any renewal fees charged for the renewal of a license and distribute the fees to the Interstate Commission.

(d) Subject to the renewal requirements in this Article and those specific to license renewal by the Board of Medical Examiners or the State Board of Osteopathic Medicine, as applicable, and upon receipt of any renewal fees collected in subsection (c), a member board shall renew the physician’s license.

(e) Physician information collected by the Interstate Commission during the renewal process will be distributed to all member boards.

(f) The Board of Medical Examiners and the State Board of Osteopathic Medicine, in conjunction with the Interstate Commission, are authorized to develop rules to address renewal of licenses obtained through the Compact.

ARTICLE 8. COORDINATED INFORMATION SYSTEM

(a) The Interstate Commission shall establish a database of all physicians licensed, or who have applied for licensure, pursuant to Article 5.

(b) Notwithstanding any other provision of law, member boards shall report to the Interstate Commission any public action or complaints against a licensed physician who has applied for or received an expedited license through the Compact.

(c) Member boards shall report disciplinary or investigatory information determined as necessary and proper by rule of the Interstate Commission.

(d) Member boards may report any nonpublic complaint, disciplinary or investigatory information not required by subsection (c) to the Interstate Commission.

(e) Member boards shall share complaint or disciplinary information about a physician upon request of another member board.

(f) All information provided to the Interstate Commission or distributed by member boards shall be confidential, filed under seal and used only for investigatory or disciplinary matters.

(g) The Interstate Commission is authorized to develop rules for mandatory or discretionary sharing of information by member boards.

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ê2015 Statutes of Nevada, Page 1156 (CHAPTER 244, SB 251)ê

ARTICLE 9. JOINT INVESTIGATIONS

(a) Licensure and disciplinary records of physicians are deemed investigative.

(b) In addition to the authority granted to a member board by its respective Medical Practice Act or other applicable state law, a member board may participate with other member boards in joint investigations of physicians licensed by the member boards.

(d) Member boards may share any investigative, litigation or compliance materials in furtherance of any joint or individual investigation initiated under the Compact.

(e) Any member state may investigate actual or alleged violations of the statutes authorizing the practice of medicine in any other member state in which a physician holds a license to practice medicine.

ARTICLE 10. DISCIPLINARY ACTIONS

(a) Any disciplinary action taken by any member board against a physician licensed through the Compact shall be deemed unprofessional conduct which may be subject to discipline by other member boards, in addition to any violation of the Medical Practice Act or regulations in that state.

(b) If a license granted to a physician by the member board in the state of principal license is revoked, surrendered or relinquished in lieu of discipline, or suspended, then all licenses issued to the physician by member boards shall automatically be placed, without further action necessary by any member board, on the same status. If the member board in the state of principal license subsequently reinstates the physician’s license, a license issued to the physician by any other member board shall remain encumbered until that respective member board takes action to reinstate the license in a manner consistent with the Medical Practice Act of that state.

(c) If disciplinary action is taken against a physician by a member board not in the state of principal license, any other member board may deem the action conclusive as to matter of law and fact decided, and:

(1) Impose the same or lesser sanctions against the physician so long as such sanctions are consistent with the Medical Practice Act of that state; or

(2) Pursue separate disciplinary action against the physician under its respective Medical Practice Act, regardless of the action taken in other member states.

(d) If a license granted to a physician by a member board is revoked, surrendered or relinquished in lieu of discipline, or suspended, then any license issued to the physician by any other member board shall be suspended, automatically and immediately without further action necessary by the other member board, for 90 days upon entry of the order by the disciplining board, to permit the member board to investigate the basis for the action under the Medical Practice Act of that state. A member board may terminate the automatic suspension of the license it issued prior to the completion of the 90 day suspension period in a manner consistent with the Medical Practice Act of that state.

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ê2015 Statutes of Nevada, Page 1157 (CHAPTER 244, SB 251)ê

issued prior to the completion of the 90 day suspension period in a manner consistent with the Medical Practice Act of that state.

ARTICLE 11. INTERSTATE MEDICAL LICENSURE COMPACT COMMISSION

(a) The member states hereby create the “Interstate Medical Licensure Compact Commission.”

(b) The purpose of the Interstate Commission is the administration of the Interstate Medical Licensure Compact, which is a discretionary state function.

(c) The Interstate Commission shall be a body corporate and joint agency of the member states and shall have all the responsibilities, powers and duties set forth in the Compact, and such additional powers as may be conferred upon it by a subsequent concurrent action of the respective legislatures of the member states in accordance with the terms of the Compact.

(d) The Interstate Commission shall consist of two voting representatives appointed by each member state who shall serve as Commissioners. In states where allopathic and osteopathic physicians are regulated by separate member boards, or if the licensing and disciplinary authority is split between multiple member boards within a member state, the member state shall appoint one representative from each member board. A Commissioner shall be:

(1) An allopathic or osteopathic physician appointed to a member board;

(2) An executive director, executive secretary or similar executive of a member board; or

(3) A member of the public appointed to a member board.

(e) The Interstate Commission shall meet at least once each calendar year. A portion of this meeting shall be a business meeting to address such matters as may properly come before the Commission, including the election of officers. The Chairperson may call additional meetings and shall call for a meeting upon the request of a majority of the member states.

(f) The bylaws may provide for meetings of the Interstate Commission to be conducted by telecommunication or electronic communication.

(g) Each Commissioner participating at a meeting of the Interstate Commission is entitled to one vote. A majority of Commissioners shall constitute a quorum for the transaction of business, unless a larger quorum is required by the bylaws of the Interstate Commission. A Commissioner shall not delegate a vote to another Commissioner. In the absence of its Commissioner, a member state may delegate voting authority for a specified meeting to another person from that state who meets the requirements of subsection (d).

(h) The Interstate Commission shall provide public notice of all meetings, and all meetings must be open to the public. The Interstate Commission may close a meeting, in full or in portion, where it determines by a two-thirds vote of the Commissioners present that an open meeting would be likely to:

(1) Relate solely to the internal personnel practices and procedures of the Interstate Commission;

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ê2015 Statutes of Nevada, Page 1158 (CHAPTER 244, SB 251)ê

(2) Discuss matters specifically exempted from disclosure by a federal statute;

(3) Discuss trade secrets, commercial or financial information that is privileged or confidential;

(4) Involve accusing a person of a crime or formally censuring a person;

(5) Discuss information of a personal nature where disclosure would constitute a clearly unwarranted invasion of personal privacy;

(6) Discuss investigative records compiled for law enforcement purposes; or

(7) Specifically relate to the participation in a civil action or other legal proceeding.

(i) The Interstate Commission shall keep minutes which shall fully describe all matters discussed in a meeting and shall provide a full and accurate summary of actions taken, including a record of any roll call votes.

(j) The Interstate Commission shall make its information and official records, to the extent not otherwise designated in the Compact or by its rules, available to the public for inspection.

(k) The Interstate Commission shall establish an Executive Committee, which must include officers, members and others as determined by the bylaws. The Executive Committee shall have the power to act on behalf of the Interstate Commission, with the exception of rulemaking, during periods when the Interstate Commission is not in session. When acting on behalf of the Interstate Commission, the Executive Committee shall oversee the administration of the Compact, including enforcement and compliance with the provisions of the Compact, its bylaws and rules and other such duties as necessary.

(l) The Interstate Commission may establish other committees for governance and administration of the Compact.

ARTICLE 12. POWERS AND DUTIES OF THE INTERSTATE COMMISSION

The Interstate Commission shall have the duty and power to:

(a) Oversee and maintain the administration of the Compact;

(b) Promulgate rules which shall be binding to the extent and in the manner provided for in the Compact;

(c) Issue, upon the request of a member state or member board, advisory opinions concerning the meaning or interpretation of the Compact, its bylaws, rules and actions;

(d) Enforce compliance with Compact provisions, the rules promulgated by the Interstate Commission and the bylaws, using all necessary and proper means, including, but not limited to, the use of judicial process;

(e) Establish and appoint committees, including, but not limited to, an Executive Committee as required by Article 11, which shall have the power to act on behalf of the Interstate Commission in carrying out its powers and duties;

(f) Pay, or provide for the payment of, the expenses related to the establishment, organization and ongoing activities of the Interstate Commission;

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ê2015 Statutes of Nevada, Page 1159 (CHAPTER 244, SB 251)ê

(g) Establish and maintain one or more offices;

(h) Borrow, accept, hire or contract for services of personnel;

(i) Purchase and maintain insurance and bonds;

(j) Employ an Executive Director who shall have such powers to employ, select or appoint employees, agents or consultants, and to determine their qualifications, define their duties and fix their compensation;

(k) Establish personnel policies and programs relating to conflicts of interest, rates of compensation and qualifications of personnel;

(l) Accept donations and grants of money, equipment, supplies, materials and services, and to receive, utilize and dispose of it in a manner consistent with the conflict of interest policies established by the Interstate Commission;

(m) Lease, purchase, accept contributions or donations of, or otherwise to own, hold, improve or use, any property, real, personal or mixed;

(n) Sell, convey, mortgage, pledge, lease, exchange, abandon or otherwise dispose of any property, real, personal or mixed;

(o) Establish a budget and make expenditures;

(p) Adopt a seal and bylaws governing the management and operation of the Interstate Commission;

(q) Report annually to the legislatures and governors of the member states concerning the activities of the Interstate Commission during the preceding year. Such reports shall also include reports of financial audits and any recommendations that may have been adopted by the Interstate Commission;

(r) Coordinate education, training and public awareness regarding the Compact, its implementation and its operation;

(s) Maintain records in accordance with the bylaws;

(t) Seek and obtain trademarks, copyrights and patents; and

(u) Perform such functions as may be necessary or appropriate to achieve the purposes of the Compact.

ARTICLE 13. FINANCE POWERS

(a) The Interstate Commission may levy on and collect an annual assessment from each member state to cover the cost of the operations and activities of the Interstate Commission and its staff. The total assessment must be sufficient to cover the annual budget approved each year for which revenue is not provided by other sources. The aggregate annual assessment amount shall be allocated upon a formula to be determined by the Interstate Commission, which shall promulgate a rule binding upon all member states.

(b) The Interstate Commission shall not incur obligations of any kind prior to securing the funds adequate to meet the same.

(c) The Interstate Commission shall not pledge the credit of any of the member states, except by, and with the authority of, the member state.

(d) The Interstate Commission shall be subject to a yearly financial audit conducted by a certified or licensed public accountant and the report of the audit shall be included in the annual report of the Interstate Commission.

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ê2015 Statutes of Nevada, Page 1160 (CHAPTER 244, SB 251)ê

ARTICLE 14. ORGANIZATION AND OPERATION OF THE INTERSTATE COMMISSION

(a) The Interstate Commission shall, by a majority of Commissioners present and voting, adopt bylaws to govern its conduct as may be necessary or appropriate to carry out the purposes of the Compact within 12 months of the first Interstate Commission meeting.

(b) The Interstate Commission shall elect or appoint annually from among its Commissioners a Chairperson, a Vice Chairperson and a Treasurer, each of whom shall have such authority and duties as may be specified in the bylaws. The Chairperson, or in the Chairperson’s absence or disability, the Vice Chairperson, shall preside at all meetings of the Interstate Commission.

(d) The officers and employees of the Interstate Commission shall be immune from suit and liability, either personally or in their official capacity, for a claim for damage to or loss of property or personal injury or other civil liability caused or arising out of, or relating to, an actual or alleged act, error or omission that occurred, or that such person had a reasonable basis for believing occurred, within the scope of Interstate Commission employment, duties or responsibilities, provided that such person shall not be protected from suit or liability for damage, loss, injury or liability caused by the intentional or willful and wanton misconduct of such person. For purposes of this subsection:

(1) The liability of the Executive Director and employees of the Interstate Commission or representatives of the Interstate Commission, acting within the scope of such person’s employment or duties for acts, errors or omissions occurring within such person’s state, may not exceed the limits of liability set forth under the constitution and laws of that state for state officials, employees and agents. The Interstate Commission is considered to be an instrumentality of the states for the purposes of any such action. Nothing in this paragraph shall be construed to protect such person from suit or liability for damage, loss, injury or liability caused by the intentional or willful and wanton misconduct of such person.

(2) The Interstate Commission shall defend the Executive Director, its employees and, subject to the approval of the attorney general or other appropriate legal counsel of the member state represented by an Interstate Commission representative, such Interstate Commission representative in any civil action seeking to impose liability arising out of an actual or alleged act, error or omission that occurred within the scope of Interstate Commission employment, duties or responsibilities, or that the defendant had a reasonable basis for believing occurred within the scope of Interstate Commission employment, duties or responsibilities, provided that the actual or alleged act, error or omission did not result from intentional or willful and wanton misconduct on the part of such person.

(3) To the extent not covered by the state involved, the member state or the Interstate Commission, the representatives or employees of the Interstate Commission shall be held harmless in the amount of a settlement or judgment, including attorney’s fees and costs, obtained against such persons arising out of an actual or alleged act, error or omission that occurred within the scope of Interstate Commission employment, duties or responsibilities, or that such persons had a reasonable basis for believing occurred within the scope of Interstate Commission employment, duties or responsibilities, provided that the actual or alleged act, error or omission did not result from intentional or willful and wanton misconduct on the part of such persons.

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ê2015 Statutes of Nevada, Page 1161 (CHAPTER 244, SB 251)ê

responsibilities, or that such persons had a reasonable basis for believing occurred within the scope of Interstate Commission employment, duties or responsibilities, provided that the actual or alleged act, error or omission did not result from intentional or willful and wanton misconduct on the part of such persons.

ARTICLE 15. RULEMAKING FUNCTIONS OF THE INTERSTATE COMMISSION

(a) The Interstate Commission shall promulgate reasonable rules in order to effectively and efficiently achieve the purposes of the Compact. Notwithstanding the foregoing, in the event the Interstate Commission exercises its rulemaking authority in a manner that is beyond the scope of the purposes of the Compact, or the powers granted hereunder, then such an action by the Interstate Commission shall be invalid and have no force or effect.

(b) Rules deemed appropriate for the operations of the Interstate Commission shall be made pursuant to a rulemaking process that substantially conforms to the Model State Administrative Procedure Act of 2010, and subsequent amendments thereto.

(c) Not later than 30 days after a rule is promulgated, any person may file a petition for judicial review of the rule in the United States District Court for the District of Columbia or the federal district where the Interstate Commission has its principal offices, provided that the filing of such a petition shall not stay or otherwise prevent the rule from becoming effective unless the court finds that the petitioner has a substantial likelihood of success. The court shall give deference to the actions of the Interstate Commission consistent with applicable law and shall not find the rule to be unlawful if the rule represents a reasonable exercise of the authority granted to the Interstate Commission.

ARTICLE 16. OVERSIGHT OF INTERSTATE COMPACT

(a) The executive, legislative and judicial branches of state government in each member state shall enforce the Compact and shall take all actions necessary and appropriate to effectuate the Compact’s purposes and intent. The provisions of the Compact and the rules promulgated hereunder shall have standing as statutory law but shall not override existing state authority to regulate the practice of medicine.

(b) All courts shall take judicial notice of the Compact and the rules in any judicial or administrative proceeding in a member state pertaining to the subject matter of the Compact which may affect the powers, responsibilities or actions of the Interstate Commission.

(c) The Interstate Commission shall be entitled to receive all service of process in any such proceeding, and shall have standing to intervene in the proceeding for all purposes. Failure to provide service of process to the Interstate Commission shall render a judgment or order void as to the Interstate Commission, the Compact or promulgated rules.

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ê2015 Statutes of Nevada, Page 1162 (CHAPTER 244, SB 251)ê

ARTICLE 17. ENFORCEMENT OF INTERSTATE COMPACT

(a) The Interstate Commission, in the reasonable exercise of its discretion, shall enforce the provisions and rules of the Compact.

(b) The Interstate Commission may, by majority vote of the Commissioners, initiate legal action in the United States District Court for the District of Columbia or, at the discretion of the Interstate Commission, in the federal district where the Interstate Commission has its principal offices, to enforce compliance with the provisions of the Compact, and its promulgated rules and bylaws, against a member state in default. The relief sought may include both injunctive relief and damages. In the event judicial enforcement is necessary, the prevailing party shall be awarded all costs of such litigation, including reasonable attorney’s fees.

(c) The remedies herein shall not be the exclusive remedies of the Interstate Commission. The Interstate Commission may avail itself of any other remedies available under state law or the regulation of a profession.

ARTICLE 18. DEFAULT PROCEDURES

(a) The grounds for default include, but are not limited to, failure of a member state to perform such obligations or responsibilities imposed upon it by the Compact, or the rules and bylaws of the Interstate Commission promulgated under the Compact.

(b) If the Interstate Commission determines that a member state has defaulted in the performance of its obligations or responsibilities under the Compact, or the bylaws or promulgated rules, the Interstate Commission shall:

(1) Provide written notice to the defaulting state and other member states of the nature of the default, the means of curing the default and any action taken by the Interstate Commission. The Interstate Commission shall specify the conditions by which the defaulting state must cure its default; and

(2) Provide remedial training and specific technical assistance regarding the default.

(c) If the defaulting state fails to cure the default, the defaulting state shall be terminated from the Compact upon an affirmative vote of a majority of the Commissioners and all rights, privileges and benefits conferred by the Compact shall terminate on the effective date of the termination. A cure of the default does not relieve the offending state of obligations or liabilities incurred during the period of the default.

(d) Termination of membership in the Compact shall be imposed only after all other means of securing compliance have been exhausted. Notice of intent to terminate shall be given by the Interstate Commission to the governor, the majority and minority leaders of the defaulting state’s legislature and each of the member states.

(e) The Interstate Commission shall establish rules and procedures to address licenses and physicians that are materially impacted by the termination of a member state, or the withdrawal of a member state.

(f) The member state which has been terminated is responsible for all dues, obligations and liabilities incurred through the effective date of the termination, including obligations the performance of which extends beyond the effective date of the termination.

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ê2015 Statutes of Nevada, Page 1163 (CHAPTER 244, SB 251)ê

(g) The Interstate Commission shall not bear any costs relating to any state that has been found to be in default or which has been terminated from the Compact, unless otherwise mutually agreed upon in writing between the Interstate Commission and the defaulting state.

(h) The defaulting state may appeal the action of the Interstate Commission by petitioning the United States District Court for the District of Columbia or the federal district where the Interstate Commission has its principal offices. The prevailing party shall be awarded all costs of such litigation, including reasonable attorney’s fees.

ARTICLE 19. DISPUTE RESOLUTION

(a) The Interstate Commission shall attempt, upon the request of a member state, to resolve disputes which are subject to the Compact and which may arise among member states or member boards.

(b) The Interstate Commission shall promulgate rules providing for both mediation and binding dispute resolution as appropriate.

ARTICLE 20. MEMBER STATES, EFFECTIVE DATE AND AMENDMENT

(a) Any state is eligible to become a member state of the Compact.

(b) The Compact shall become effective and binding upon legislative enactment of the Compact into law by no less than seven states. Thereafter, it shall become effective and binding on a state upon enactment of the Compact into law by that state.

(c) The governors of nonmember states, or their designees, shall be invited to participate in the activities of the Interstate Commission on a nonvoting basis prior to adoption of the Compact by all states.

(d) The Interstate Commission may propose amendments to the Compact for enactment by the member states. No amendment shall become effective and binding upon the Interstate Commission and the member states unless and until it is enacted into law by unanimous consent of the member states.

ARTICLE 21. WITHDRAWAL

(a) Once effective, the Compact shall continue in force and remain binding upon each and every member state, provided that a member state may withdraw from the Compact by specifically repealing the statute which enacted the Compact into law.

(b) Withdrawal from the Compact shall be by the enactment of a statute repealing the same, but shall not take effect until 1 year after the effective date of such statute and until written notice of the withdrawal has been given by the withdrawing state to the governor of each other member state.

(c) The withdrawing state shall immediately notify the Chairperson of the Interstate Commission in writing upon the introduction of legislation repealing the Compact in the withdrawing state.

(d) The Interstate Commission shall notify the other member states of the withdrawing state’s intent to withdraw within 60 days of its receipt of notice provided under subsection (c).

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ê2015 Statutes of Nevada, Page 1164 (CHAPTER 244, SB 251)ê

(e) The withdrawing state is responsible for all dues, obligations and liabilities incurred through the effective date of the withdrawal, including obligations, the performance of which extends beyond the effective date of the withdrawal.

(f) Reinstatement following withdrawal of a member state shall occur upon the withdrawing state reenacting the Compact or upon such later date as determined by the Interstate Commission.

(g) The Interstate Commission is authorized to develop rules to address the impact of the withdrawal of a member state on licenses granted in other member states to physicians who designated the withdrawing member state as the state of principal license.

ARTICLE 22. DISSOLUTION

(a) The Compact shall dissolve effective upon the date of the withdrawal or default of the member state which reduces the membership in the Compact to one member state.

(b) Upon the dissolution of the Compact, the Compact becomes null and void and shall be of no further force or effect, and the business and affairs of the Interstate Commission shall be concluded and surplus funds shall be distributed in accordance with the bylaws.

ARTICLE 23. SEVERABILITY AND CONSTRUCTION

(a) The provisions of the Compact shall be severable, and if any phrase, clause, sentence or provision is deemed unenforceable, the remaining provisions of the Compact shall be enforceable.

(b) The provisions of the Compact shall be liberally construed to effectuate its purposes.

(c) Nothing in the Compact shall be construed to prohibit the applicability of other interstate compacts to which the states are members.

ARTICLE 24. BINDING EFFECT OF COMPACT AND OTHER LAWS

(a) Nothing herein prevents the enforcement of any other law of a member state that is not inconsistent with the Compact.

(b) All laws in a member state in conflict with the Compact are superseded to the extent of the conflict.

(c) All lawful actions of the Interstate Commission, including all rules and bylaws promulgated by the Commission, are binding upon the member states.

(d) All agreements between the Interstate Commission and the member states are binding in accordance with their terms.

(e) In the event any provision of the Compact exceeds the constitutional limits imposed on the legislature of any member state, such provisions shall be ineffective to the extent of the conflict with the constitutional provision in question in that member state.

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ê2015 Statutes of Nevada, Page 1165ê

CHAPTER 245, SB 256

Senate Bill No. 256–Senators Farley, Hardy; Harris and Settelmeyer

CHAPTER 245

[Approved: May 27, 2015]

AN ACT relating to innkeepers; revising provisions relating to the civil liability of innkeepers; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

Existing law limits the liability of an owner or keeper of any hotel, inn, motel, motor court, boardinghouse or lodging house in this State for the loss of or damage to certain personal property brought by a patron onto the premises of the innkeeper, including that left in a motor vehicle upon the premises. (NRS 651.010) The Nevada Supreme Court has ruled that the language of the statute does not shield an innkeeper from liability for the loss of or damage to a motor vehicle itself, as separate from the contents, brought by a patron onto the premises of the innkeeper. (Arguello v. Sunset Station, Inc., 127 Nev. Adv. Op. 29, 252 P.3d 206 (2011)) This bill limits the liability of an innkeeper for the loss of or damage to a motor vehicle brought by a patron onto the premises of the innkeeper.

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

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. (Deleted by amendment.)

Sec. 2. Chapter 651 of NRS is hereby amended by adding thereto a new section to read as follows:

An owner or keeper of any hotel, inn, motel, motor court, boardinghouse or lodging house in this State is not civilly liable for the theft, loss, damage or destruction of a motor vehicle brought by a patron upon the premises or left upon the premises, because of theft, burglary, fire or otherwise, in the absence of gross neglect by the owner or keeper.

Sec. 3. NRS 651.005 is hereby amended to read as follows:

651.005 As used in NRS 651.005 to 651.040, inclusive, and section 1 of this act, “premises” includes, but is not limited to, all buildings, improvements, equipment and facilities, including any parking lot, recreational facility or other land, used or maintained in connection with a hotel, inn, motel, motor court, boardinghouse or lodging house.

Sec. 4. This act becomes effective on July 1, 2015.

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ê2015 Statutes of Nevada, Page 1166ê

CHAPTER 246, SB 268

Senate Bill No. 268–Senators Woodhouse, Ford, Spearman, Parks, Kihuen; Atkinson, Denis, Manendo and Segerblom

Joint Sponsors: Assemblymen Swank, Joiner and Araujo

CHAPTER 246

[Approved: May 27, 2015]

AN ACT relating to veterans; temporarily creating the Account to Assist Veterans Who Have Suffered Sexual Trauma and prescribing the uses of the money in the Account; temporarily requiring the Director of the Department of Veterans Services to develop plans and programs to assist veterans who have suffered sexual trauma while on active duty or during military training; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

Existing law creates the Department of Veterans Services and requires the Director and Deputy Director of the Department to undertake certain activities to support veterans in this State. (NRS 417.020, 417.090) Section 1.5 of this bill requires the Director and Deputy Director to develop plans and programs to assist veterans who have suffered sexual trauma while on active duty or during military training.

Section 1 of this bill: (1) creates in the State General Fund the Account to Assist Veterans Who Have Suffered Sexual Trauma to be administered by the Director of the Department; (2) authorizes the Director to apply for grants and accept gifts, grants, donations and any other source of money for deposit in the Account; and (3) limits the use of money in the Account to assisting veterans who have suffered sexual trauma while on active duty or during military training.

Section 5 of this bill expires the provisions of the bill on June 30, 2017. Section 4.3 of this bill requires the Director of the Department to submit to the Interagency Council on Veterans Affairs for transmission to the 79th Session of the Nevada Legislature a report regarding: (1) the plans and programs developed to assist veterans who have suffered sexual trauma while on active duty or during military training; and (2) deposits to and expenditures from the Account. Section 4.7 of this bill provides for the transfer of any remaining balance in the Account to the Gift Account for Veterans.

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

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 417 of NRS is hereby amended by adding thereto a new section to read as follows:

1. The Account to Assist Veterans Who Have Suffered Sexual Trauma is hereby created in the State General Fund. The Director shall administer the Account.

2. The Director may apply for any available grants and accept gifts, grants, donations and any other source of money for deposit in the Account.

3. Money deposited in the Account and any interest and income earned on such money must be used only to assist veterans who have suffered sexual trauma while on active duty or during military training.

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ê2015 Statutes of Nevada, Page 1167 (CHAPTER 246, SB 268)ê

suffered sexual trauma while on active duty or during military training. The interest and income earned on money in the Account, after deducting any applicable charges, must be credited to the Account. All money in the Account must be paid out on claims approved by the Director as other claims against the State are paid. Any money remaining in the Account at the end of a fiscal year does not revert to the State General Fund, but must be carried forward to the next fiscal year.

Sec. 1.5. NRS 417.090 is hereby amended to read as follows:

417.090 The Director and the Deputy Director shall:

1. Assist veterans, and those presently serving in the military and naval forces of the United States who are residents of the State of Nevada, their wives, widows, widowers, husbands, children, dependents, administrators, executors and personal representatives, in preparing, submitting and presenting any claim against the United States, or any state, for adjusted compensation, hospitalization, insurance, pension, disability compensation, vocational training, education or rehabilitation and assist them in obtaining any aid or benefit to which they may, from time to time, be entitled under the laws of the United States or of any of the states.

2. Aid, assist, encourage and cooperate with every nationally recognized service organization insofar as the activities of such organizations are for the benefit of veterans, servicemen and servicewomen.

3. Give aid, assistance and counsel to each and every problem, question and situation, individual as well as collective, affecting any veteran, serviceman or servicewoman, or their dependents, or any group of veterans, servicemen and servicewomen, when in their opinion such comes within the scope of this chapter.

4. Coordinate activities of veterans’ organizations.

5. Serve as a clearinghouse and disseminate information relating to veterans’ benefits.

6. Conduct any studies which will assist veterans to obtain compensation, hospitalization, insurance, pension, disability compensation, vocational training, education, rehabilitation or any other benefit to which veterans may be entitled under the laws of the United States or of any state.

7. Aid, assist and cooperate with the office of coordinator of services for veterans created in a county pursuant to NRS 244.401.

8. Pay to each county that creates the office of coordinator of services for veterans, from state money available to him or her, a portion of the cost of operating the office in an amount determined by the Director.

9. Take possession of any abandoned or unclaimed artifacts or other property that has military value for safekeeping. The Director or Deputy Director may transfer such property to a veterans’ or military museum.

10. Develop plans and programs to assist veterans who have suffered sexual trauma while on active duty or during military training.

Secs. 2-4. (Deleted by amendment.)

Sec. 4.3. 1. On or before January 15, 2017, the Director of the Department of Veterans Services shall submit a report to the Interagency Council on Veterans Affairs setting forth:

(a) The plans and programs developed pursuant to subsection 10 of NRS 417.090, as amended by section 1.5 of this act, to assist veterans who have suffered sexual trauma while on active duty or during military training;

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ê2015 Statutes of Nevada, Page 1168 (CHAPTER 246, SB 268)ê

(b) The amount and sources of money deposited in the Account to Assist Veterans Who Have Suffered Sexual Trauma created by section 1 of this act since its creation; and

2. The Interagency Council on Veterans Affairs shall include the report prepared by the Director pursuant to subsection 1 in the report submitted by the Council to the 79th Session of the Nevada Legislature pursuant to subsection 3 of NRS 417.0195.

Sec. 4.7. The balance of any money remaining on June 30, 2017, in the Account to Assist Veterans Who Have Suffered Sexual Trauma created by section 1 of this act that has not been committed for expenditure must be transferred to the Gift Account for Veterans created by NRS 417.145.

Sec. 5. This act becomes effective on July 1, 2015, and expires by limitation on June 30, 2017.

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CHAPTER 247, SB 288

Senate Bill No. 288–Senators Denis; and Woodhouse

Joint Sponsors: Assemblymen Araujo and Sprinkle

CHAPTER 247

[Approved: May 27, 2015]

AN ACT relating to controlled substances; requiring each person who is authorized to prescribe or dispense a controlled substance to be provided access to the database of the computerized program to track prescriptions for certain controlled substances that are filled by pharmacies; requiring each practitioner who is authorized to prescribe controlled substances to access the database and, to the extent that the program allows, review certain information and verify to the Board that he or she continues to have access to the database; authorizing various professional licensing boards to take disciplinary action against a person who fails to comply with these requirements; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

Existing law requires the State Board of Pharmacy and the Investigation Division of the Department of Public Safety to cooperatively develop a computerized program to track each prescription for a controlled substance. Persons who prescribe or dispense controlled substances can choose to access the database of the program and are given access to the database after receiving a course of training developed by the Board and the Division. (NRS 453.1545) Section 2 of this bill requires any person who is authorized to prescribe or dispense controlled substances to receive such training and be given access to the database of the computer program. Section 2 also requires each practitioner who is authorized to prescribe controlled substances, to the extent the program allows, to access the database of the computer program at least once every 6 months to review the information concerning the practitioner in the database and verify to the Board that the person continues to have access to the database. Sections 7.1-7.6 of this bill authorize various professional licensing boards to take disciplinary action against a person who is authorized to prescribe controlled substances and fails to comply with these requirements.

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ê2015 Statutes of Nevada, Page 1169 (CHAPTER 247, SB 288)ê

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

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. (Deleted by amendment.)

Sec. 2. NRS 453.1545 is hereby amended to read as follows:

453.1545 1. The Board and the Division shall cooperatively develop a computerized program to track each prescription for a controlled substance listed in schedule II, III or IV that is filled by a pharmacy that is registered with the Board or that is dispensed by a practitioner who is registered with the Board. The program must:

(a) Be designed to provide information regarding:

(1) The inappropriate use by a patient of controlled substances listed in schedules II, III and IV to pharmacies, practitioners and appropriate state agencies to prevent the improper or illegal use of those controlled substances; and

(2) Statistical data relating to the use of those controlled substances that is not specific to a particular patient.

(b) Be administered by the Board, the Investigation Division, the Division of Public and Behavioral Health of the Department and various practitioners, representatives of professional associations for practitioners, representatives of occupational licensing boards and prosecuting attorneys selected by the Board and the Investigation Division.

(d) Include the contact information of each person who [elects to] is provided access to the database of the program pursuant to [subsection 2,] this section, including, without limitation:

(1) The name of the person;

(2) The physical address of the person;

(3) The telephone number of the person; and

(4) If the person maintains an electronic mail address, the electronic mail address of the person.

2. [The Board shall provide Internet access to the database of the program established pursuant to subsection 1 to each] Each practitioner who is authorized to write prescriptions for and each person who is authorized to dispense controlled substances listed in schedule II, III or IV [who:

(a) Elects to access the database of the program; and

(b) Completes] shall complete the course of instruction described in subsection [7.] 8. The Board shall provide Internet access to the database of the program established pursuant to subsection 1 to each such practitioner or other person who completes the course of instruction.

3. The Board and the Division must have access to the program established pursuant to subsection 1 to identify any suspected fraudulent or illegal activity related to the dispensing of controlled substances.

4. Each practitioner who is authorized to write prescriptions for controlled substances listed in schedule II, III or IV shall, to the extent the program allows, access the database of the program established pursuant to subsection 1 at least once each 6 months to:

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ê2015 Statutes of Nevada, Page 1170 (CHAPTER 247, SB 288)ê

(a) Review the information concerning the practitioner that is listed in the database and notify the Board if any such information is not correct; and

(b) Verify to the Board that he or she continues to have access to and has accessed the database as required by this subsection.

5. The Board or the Division shall report any activity it reasonably suspects may be fraudulent or illegal to the appropriate law enforcement agency or occupational licensing board and provide the law enforcement agency or occupational licensing board with the relevant information obtained from the program for further investigation.

[5.] 6. The Board and the Division may cooperatively enter into a written agreement with an agency of any other state to provide, receive or exchange information obtained by the program with a program established in that state which is substantially similar to the program established pursuant to subsection 1, including, without limitation, providing such state access to the database of the program or transmitting information to and receiving information from such state. Any information provided, received or exchanged as part of an agreement made pursuant to this section may only be used in accordance with the provisions of this chapter.

[6.] 7. Information obtained from the program relating to a practitioner or a patient is confidential and, except as otherwise provided by this section and NRS 239.0115, must not be disclosed to any person. That information must be disclosed:

(a) Upon the request of a person about whom the information requested concerns or upon the request on behalf of that person by his or her attorney; or

(b) Upon the lawful order of a court of competent jurisdiction.

[7.] 8. The Board and the Division shall cooperatively develop a course of training for persons who [elect] are required to receive access to the database of the program pursuant to subsection 2 and require each such person to complete the course of training before the person is provided with Internet access to the database pursuant to subsection 2.

[8.] 9. A practitioner who is authorized to write prescriptions for and each person who is authorized to dispense controlled substances listed in schedule II, III or IV who acts with reasonable care when transmitting to the Board or the Division a report or information required by this section or a regulation adopted pursuant thereto is immune from civil and criminal liability relating to such action.

[9.] 10. The Board and the Division may apply for any available grants and accept any gifts, grants or donations to assist in developing and maintaining the program required by this section.

Secs. 3-7. (Deleted by amendment.)

Sec. 7.1. NRS 630.3062 is hereby amended to read as follows:

630.3062 The following acts, among others, constitute grounds for initiating disciplinary action or denying licensure:

1. Failure to maintain timely, legible, accurate and complete medical records relating to the diagnosis, treatment and care of a patient.

2. Altering medical records of a patient.

3. Making or filing a report which the licensee knows to be false, failing to file a record or report as required by law or willfully obstructing or inducing another to obstruct such filing.

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ê2015 Statutes of Nevada, Page 1171 (CHAPTER 247, SB 288)ê

4. Failure to make the medical records of a patient available for inspection and copying as provided in NRS 629.061.

5. Failure to comply with the requirements of NRS 630.3068.

6. Failure to report any person the licensee knows, or has reason to know, is in violation of the provisions of this chapter or the regulations of the Board within 30 days after the date the licensee knows or has reason to know of the violation.

7. Failure to comply with the requirements of NRS 453.1545.

Sec. 7.2. NRS 631.3475 is hereby amended to read as follows:

631.3475 The following acts, among others, constitute unprofessional conduct:

1. Malpractice;

2. Professional incompetence;

3. Suspension or revocation of a license to practice dentistry, the imposition of a fine or other disciplinary action by any agency of another state authorized to regulate the practice of dentistry in that state;

4. More than one act by the dentist or dental hygienist constituting substandard care in the practice of dentistry or dental hygiene;

5. Administering, dispensing or prescribing any controlled substance or any dangerous drug as defined in chapter 454 of NRS, if it is not required to treat the dentist’s patient;

6. Knowingly procuring or administering a controlled substance or a dangerous drug as defined in chapter 454 of NRS that is not approved by the United States Food and Drug Administration, unless the unapproved controlled substance or dangerous drug:

(a) Was procured through a retail pharmacy licensed pursuant to chapter 639 of NRS;

(b) Was procured through a Canadian pharmacy which is licensed pursuant to chapter 639 of NRS and which has been recommended by the State Board of Pharmacy pursuant to subsection 4 of NRS 639.2328; or

7. Chronic or persistent inebriety or addiction to a controlled substance, to such an extent as to render the person unsafe or unreliable as a practitioner, or such gross immorality as tends to bring reproach upon the dental profession;

8. Conviction of a felony or misdemeanor involving moral turpitude or which relates to the practice of dentistry in this State, or conviction of any criminal violation of this chapter;

9. Conviction of violating any of the provisions of NRS 616D.200, 616D.220, 616D.240 or 616D.300 to 616D.440, inclusive; or

10. Operation of a medical facility, as defined in NRS 449.0151, at any time during which:

(a) The license of the facility is suspended or revoked; or

(b) An act or omission occurs which results in the suspension or revocation of the license pursuant to NRS 449.160.

Ê This subsection applies to an owner or other principal responsible for the operation of the facility.

11. Failure to comply with the provisions of NRS 453.1545.

Sec. 7.3. NRS 632.320 is hereby amended to read as follows:

632.320 1. The Board may deny, revoke or suspend any license or certificate applied for or issued pursuant to this chapter, or take other disciplinary action against a licensee or holder of a certificate, upon determining that the licensee or certificate holder:

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ê2015 Statutes of Nevada, Page 1172 (CHAPTER 247, SB 288)ê

disciplinary action against a licensee or holder of a certificate, upon determining that the licensee or certificate holder:

(a) Is guilty of fraud or deceit in procuring or attempting to procure a license or certificate pursuant to this chapter.

(b) Is guilty of any offense:

(1) Involving moral turpitude; or

(2) Related to the qualifications, functions or duties of a licensee or holder of a certificate,

Ê in which case the record of conviction is conclusive evidence thereof.

(c) Has been convicted of violating any of the provisions of NRS 616D.200, 616D.220, 616D.240 or 616D.300 to 616D.440, inclusive.

(d) Is unfit or incompetent by reason of gross negligence or recklessness in carrying out usual nursing functions.

(e) Uses any controlled substance, dangerous drug as defined in chapter 454 of NRS, or intoxicating liquor to an extent or in a manner which is dangerous or injurious to any other person or which impairs his or her ability to conduct the practice authorized by the license or certificate.

(f) Is a person with mental incompetence.

(g) Is guilty of unprofessional conduct, which includes, but is not limited to, the following:

(1) Conviction of practicing medicine without a license in violation of chapter 630 of NRS, in which case the record of conviction is conclusive evidence thereof.

(2) Impersonating any applicant or acting as proxy for an applicant in any examination required pursuant to this chapter for the issuance of a license or certificate.

(3) Impersonating another licensed practitioner or holder of a certificate.

(4) Permitting or allowing another person to use his or her license or certificate to practice as a licensed practical nurse, registered nurse, nursing assistant or medication aide - certified.

(5) Repeated malpractice, which may be evidenced by claims of malpractice settled against the licensee or certificate holder.

(6) Physical, verbal or psychological abuse of a patient.

(7) Conviction for the use or unlawful possession of a controlled substance or dangerous drug as defined in chapter 454 of NRS.

(h) Has willfully or repeatedly violated the provisions of this chapter. The voluntary surrender of a license or certificate issued pursuant to this chapter is prima facie evidence that the licensee or certificate holder has committed or expects to commit a violation of this chapter.

(i) Is guilty of aiding or abetting any person in a violation of this chapter.

(j) Has falsified an entry on a patient’s medical chart concerning a controlled substance.

(k) Has falsified information which was given to a physician, pharmacist, podiatric physician or dentist to obtain a controlled substance.

(l) Has knowingly procured or administered a controlled substance or a dangerous drug as defined in chapter 454 of NRS that is not approved by the United States Food and Drug Administration, unless the unapproved controlled substance or dangerous drug:

(1) Was procured through a retail pharmacy licensed pursuant to chapter 639 of NRS;

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(2) Was procured through a Canadian pharmacy which is licensed pursuant to chapter 639 of NRS and which has been recommended by the State Board of Pharmacy pursuant to subsection 4 of NRS 639.2328; or

(3) Is marijuana being used for medical purposes in accordance with chapter 453A of NRS.

(m) Has been disciplined in another state in connection with a license to practice nursing or a certificate to practice as a nursing assistant or medication aide - certified, or has committed an act in another state which would constitute a violation of this chapter.

(n) Has engaged in conduct likely to deceive, defraud or endanger a patient or the general public.

(o) Has willfully failed to comply with a regulation, subpoena or order of the Board.

(p) Has operated a medical facility at any time during which:

(1) The license of the facility was suspended or revoked; or

(2) An act or omission occurred which resulted in the suspension or revocation of the license pursuant to NRS 449.160.

Ê This paragraph applies to an owner or other principal responsible for the operation of the facility.

(q) Is an advanced practice registered nurse who has failed to comply with the provisions of NRS 453.1545.

2. For the purposes of this section, a plea or verdict of guilty or guilty but mentally ill or a plea of nolo contendere constitutes a conviction of an offense. The Board may take disciplinary action pending the appeal of a conviction.

3. A licensee or certificate holder is not subject to disciplinary action solely for administering auto-injectable epinephrine pursuant to a valid order issued pursuant to NRS 630.374 or 633.707.

Sec. 7.4. NRS 633.511 is hereby amended to read as follows:

633.511 The grounds for initiating disciplinary action pursuant to this chapter are:

1. Unprofessional conduct.

2. Conviction of:

(a) 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;

(b) A felony relating to the practice of osteopathic medicine or practice as a physician assistant;

(d) Murder, voluntary manslaughter or mayhem;

(e) Any felony involving the use of a firearm or other deadly weapon;

(f) Assault with intent to kill or to commit sexual assault or mayhem;

(g) Sexual assault, statutory sexual seduction, incest, lewdness, indecent exposure or any other sexually related crime;

(h) Abuse or neglect of a child or contributory delinquency; or

(i) Any offense involving moral turpitude.

3. The suspension of a license to practice osteopathic medicine or to practice as a physician assistant by any other jurisdiction.

4. Malpractice or gross malpractice, which may be evidenced by a claim of malpractice settled against a licensee.

5. Professional incompetence.

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ê2015 Statutes of Nevada, Page 1174 (CHAPTER 247, SB 288)ê

6. Failure to comply with the requirements of NRS 633.527.

7. Failure to comply with the requirements of subsection 3 of NRS 633.471.

8. Failure to comply with the provisions of NRS 633.694.

9. Operation of a medical facility, as defined in NRS 449.0151, at any time during which:

(a) The license of the facility is suspended or revoked; or

(b) An act or omission occurs which results in the suspension or revocation of the license pursuant to NRS 449.160.

Ê This subsection applies to an owner or other principal responsible for the operation of the facility.

10. Failure to comply with the provisions of subsection 2 of NRS 633.322.

11. Signing a blank prescription form.

12. Knowingly procuring or administering a controlled substance or a dangerous drug as defined in chapter 454 of NRS that is not approved by the United States Food and Drug Administration, unless the unapproved controlled substance or dangerous drug:

(a) Was procured through a retail pharmacy licensed pursuant to chapter 639 of NRS;

13. Attempting, directly or indirectly, by intimidation, coercion or deception, to obtain or retain a patient or to discourage the use of a second opinion.

14. Terminating the medical care of a patient without adequate notice or without making other arrangements for the continued care of the patient.

15. In addition to the provisions of subsection 3 of NRS 633.524, making or filing a report which the licensee knows to be false, failing to file a record or report that is required by law or willfully obstructing or inducing another to obstruct the making or filing of such a record or report.

16. Failure to report any person the licensee knows, or has reason to know, is in violation of the provisions of this chapter or the regulations of the Board within 30 days after the date the licensee knows or has reason to know of the violation.

17. Failure by a licensee or applicant to report in writing, within 30 days, any criminal action taken or conviction obtained against the licensee or applicant, other than a minor traffic violation, in this State or any other state or by the Federal Government, a branch of the Armed Forces of the United States or any local or federal jurisdiction of a foreign country.

18. Engaging in any act that is unsafe in accordance with regulations adopted by the Board.

19. Failure to comply with the provisions of NRS 633.165.

20. Failure to supervise adequately a medical assistant pursuant to the regulations of the Board.

21. Failure to comply with the provisions of NRS 453.1545.

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ê2015 Statutes of Nevada, Page 1175 (CHAPTER 247, SB 288)ê

Sec. 7.5. NRS 635.130 is hereby amended to read as follows:

635.130 1. The Board, after notice and a hearing as required by law, and upon any cause enumerated in subsection 2, may take one or more of the following disciplinary actions:

(a) Deny an application for a license or refuse to renew a license.

(b) Suspend or revoke a license.

(d) Impose a fine not to exceed $5,000.

2. The Board may take disciplinary action against a licensee for any of the following causes:

(a) The making of a false statement in any affidavit required of the applicant for application, examination or licensure pursuant to the provisions of this chapter.

(b) Lending the use of the holder’s name to an unlicensed person.

(c) If the holder is a podiatric physician, permitting an unlicensed person in his or her employ to practice as a podiatry hygienist.

(d) Habitual indulgence in the use of alcohol or any controlled substance which impairs the intellect and judgment to such an extent as in the opinion of the Board incapacitates the holder in the performance of his or her professional duties.

(e) Conviction of a crime involving moral turpitude.

(f) Conviction of violating any of the provisions of NRS 616D.200, 616D.220, 616D.240 or 616D.300 to 616D.440, inclusive.

(g) Conduct which in the opinion of the Board disqualifies the licensee to practice with safety to the public.

(h) The commission of fraud by or on behalf of the licensee regarding his or her license or practice.

(i) Gross incompetency.

(j) Affliction of the licensee with any mental or physical disorder which seriously impairs his or her competence as a podiatric physician or podiatry hygienist.

(k) False representation by or on behalf of the licensee regarding his or her practice.

(l) Unethical or unprofessional conduct.

(m) Failure to comply with the requirements of subsection 1 of NRS 635.118.

(n) Willful or repeated violations of this chapter or regulations adopted by the Board.

(o) Willful violation of the regulations adopted by the State Board of Pharmacy.

(p) Knowingly procuring or administering a controlled substance or a dangerous drug as defined in chapter 454 of NRS that is not approved by the United States Food and Drug Administration, unless the unapproved controlled substance or dangerous drug:

(1) Was procured through a retail pharmacy licensed pursuant to chapter 639 of NRS;

(3) Is marijuana being used for medical purposes in accordance with chapter 453A of NRS.

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ê2015 Statutes of Nevada, Page 1176 (CHAPTER 247, SB 288)ê

(q) Operation of a medical facility, as defined in NRS 449.0151, at any time during which:

(1) The license of the facility is suspended or revoked; or

(2) An act or omission occurs which results in the suspension or revocation of the license pursuant to NRS 449.160.

Ê This paragraph applies to an owner or other principal responsible for the operation of the facility.

(r) Failure to comply with the provisions of NRS 453.1545.

Sec. 7.6. NRS 636.295 is hereby amended to read as follows:

636.295 The following acts, conduct, omissions, or mental or physical conditions, or any of them, committed, engaged in, omitted, or being suffered by a licensee, constitute sufficient cause for disciplinary action:

1. Affliction of the licensee with any communicable disease likely to be communicated to other persons.

2. Commission by the licensee of a felony relating to the practice of optometry or a gross misdemeanor involving moral turpitude of which the licensee has been convicted and from which he or she has been sentenced by a final judgment of a federal or state court in this or any other state, the judgment not having been reversed or vacated by a competent appellate court and the offense not having been pardoned by executive authority.

3. Conviction of any of the provisions of NRS 616D.200, 616D.220, 616D.240 or 616D.300 to 616D.440, inclusive.

4. Commission of fraud by or on behalf of the licensee in obtaining a license or a renewal thereof, or in practicing optometry thereunder.

5. Habitual drunkenness or addiction to any controlled substance.

6. Gross incompetency.

7. Affliction with any mental or physical disorder or disturbance seriously impairing his or her competency as an optometrist.

8. Making false or misleading representations, by or on behalf of the licensee, with respect to optometric materials or services.

9. Practice by the licensee, or attempting or offering so to do, while in an intoxicated condition.

10. Perpetration of unethical or unprofessional conduct in the practice of optometry.

11. Knowingly procuring or administering a controlled substance or a dangerous drug as defined in chapter 454 of NRS that is not approved by the United States Food and Drug Administration, unless the unapproved controlled substance or dangerous drug:

(a) Was procured through a retail pharmacy licensed pursuant to chapter 639 of NRS;

12. Any violation of the provisions of this chapter or any regulations adopted pursuant thereto.

13. Operation of a medical facility, as defined in NRS 449.0151, at any time during which:

(a) The license of the facility is suspended or revoked; or

(b) An act or omission occurs which results in the suspension or revocation of the license pursuant to NRS 449.160.

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ê2015 Statutes of Nevada, Page 1177 (CHAPTER 247, SB 288)ê

Ê This subsection applies to an owner or other principal responsible for the operation of the facility.

14. Failure to comply with the provisions of NRS 453.1545.

Sec. 7.7. (Deleted by amendment.)

Sec. 8. This act becomes effective:

1. Upon passage and approval for the purpose of performing any preparatory administrative tasks necessary to carry out the provisions of this act; and

2. On January 1, 2016, for all other purposes.

________

CHAPTER 248, SB 289

Senate Bill No. 289–Senator Denis

Joint Sponsor: Assemblyman Paul Anderson

CHAPTER 248

[Approved: May 27, 2015]

AN ACT relating to the Information Technology Advisory Board; requiring the Board to conduct a study of peering that includes an analysis of potential benefits of peering arrangements to the State and its political subdivisions; requiring the Board to submit a report of its study to the Director of the Legislative Counsel Bureau for transmittal to the 79th Session of the Nevada Legislature; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

Existing law creates the Information Technology Advisory Board which has various duties relating to information technology. (NRS 242.122, 242.124) This bill requires the Board to: (1) conduct a study of peering, including an analysis of potential benefits of peering arrangements to the State and its political subdivisions; and (2) submit a report of its findings, including any recommendations for legislation, to the Director of the Legislative Counsel Bureau for transmittal to the 79th Session of the Nevada Legislature.

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

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Sections 1-7. (Deleted by amendment.)

Sec. 8. 1. The Information Technology Advisory Board created by NRS 242.122 shall conduct a study of peering that includes, without limitation, an analysis of potential benefits of peering arrangements to the State and its political subdivisions.

2. In carrying out its duties pursuant to this section, the Board may hold meetings that are in addition to the meetings that the Board is required to hold pursuant to NRS 242.123.

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ê2015 Statutes of Nevada, Page 1178 (CHAPTER 248, SB 289)ê

3. The Board shall submit a report of its findings, including, without limitation, any recommendations for legislation, to the Director of the Legislative Counsel Bureau for transmittal to the 79th Session of the Nevada Legislature.

4. As used in this section:

(a) “Peering” means the voluntary physical interconnection of administratively separate Internet networks for the purpose of exchanging traffic between the users of each network.

(b) “Political subdivision” means a city or county of this State.

Sec. 9. This act becomes effective on July 1, 2015.

________

CHAPTER 249, SB 293

Senate Bill No. 293–Senators Brower, Roberson; and Kieckhefer

Joint Sponsor: Assemblyman Hickey

CHAPTER 249

[Approved: May 27, 2015]

AN ACT relating to campaign practices; requiring certain persons who do not file declarations of candidacy or acceptances of candidacy or appear on an election ballot within a certain period to dispose of unspent contributions; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

Existing law provides that a person becomes a candidate if: (1) he or she files a declaration of candidacy or an acceptance of candidacy; (2) his or her name appears on an official ballot at any election; or (3) he or she receives contributions in excess of $100. (NRS 294A.005) Section 2 of this bill provides that a person, including a former public officer, who qualifies as a candidate by receiving one or more contributions in excess of $100 must dispose of any unspent contributions within 4 years after the date of receiving the first of those contributions if the person does not: (1) file a declaration or acceptance of candidacy; or (2) appear on an official ballot at any election held in this State.

Section 3 of this bill provides that certain former public officers who have any unspent contributions must, on or before September 30, 2017: (1) file a declaration or acceptance of candidacy; (2) appear on an official ballot at any election held in this State; or (3) dispose of the unspent contributions. Section 3 also provides that such former public officers are subject to campaign finance reporting requirements for as long as they have any unspent contributions.

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

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 294A.005 is hereby amended to read as follows:

294A.005 “Candidate” means any person:

1. Who files a declaration of candidacy;

2. Who files an acceptance of candidacy;

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ê2015 Statutes of Nevada, Page 1179 (CHAPTER 249, SB 293)ê

3. Whose name appears on an official ballot at any election; or

4. Who has received one or more contributions in excess of $100, regardless of whether:

(a) The person has filed a declaration of candidacy or an acceptance of candidacy; or

(b) The name of the person appears on an official ballot at any election.

Sec. 2. NRS 294A.160 is hereby amended to read as follows:

294A.160 1. It is unlawful for a candidate to spend money received as a contribution for the candidate’s personal use.

2. Notwithstanding the provisions of NRS 294A.286, a candidate or public officer may use contributions to pay for any legal expenses that the candidate or public officer incurs in relation to a campaign or serving in public office without establishing a legal defense fund. Any such candidate or public officer shall report any expenditure of contributions to pay for legal expenses in the same manner and at the same time as the report filed pursuant to NRS 294A.120 or 294A.200. A candidate or public officer shall not use contributions to satisfy a civil or criminal penalty imposed by law.

3. Every candidate for office at a primary election, general election or special election who is elected to that office and received contributions that were not spent or committed for expenditure before the primary election, general election or special election shall dispose of the money through one or any combination of the following methods:

(a) Return the unspent money to contributors;

(b) Use the money in the candidate’s next election or for the payment of other expenses related to public office or his or her campaign, regardless of whether he or she is a candidate for a different office in the candidate’s next election;

(1) The campaigns of other candidates for public office or for the payment of debts related to their campaigns;

(2) A political party; or

(3) Any combination of persons or groups set forth in subparagraphs (1) and (2);

(d) Donate the money to any tax-exempt nonprofit entity; or

(e) Donate the money to any governmental entity or fund of this State or a political subdivision of this State. A candidate who donates money pursuant to this paragraph may request that the money be used for a specific purpose.

4. Every candidate for office at a primary election, general election or special election who withdraws pursuant to NRS 293.202 or 293C.195 after filing a declaration of candidacy or an acceptance of candidacy, is removed from the ballot by court order or is defeated for or otherwise not elected to that office and who received contributions that were not spent or committed for expenditure before the primary election, general election or special election shall, not later than the 15th day of the second month after the election, dispose of the money through one or any combination of the following methods:

(a) Return the unspent money to contributors;

(b) Contribute the money to:

(1) The campaigns of other candidates for public office or for the payment of debts related to their campaigns;

(2) A political party; or

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ê2015 Statutes of Nevada, Page 1180 (CHAPTER 249, SB 293)ê

(3) Any combination of persons or groups set forth in subparagraphs (1) and (2);

(d) Donate the money to any governmental entity or fund of this State or a political subdivision of this State. A candidate who donates money pursuant to this paragraph may request that the money be used for a specific purpose.

5. Every candidate for office who withdraws after filing a declaration of candidacy or an acceptance of candidacy, is defeated for that office at a primary election or is removed from the ballot by court order before a primary election or general election and who received a contribution from a person in excess of $5,000 shall, not later than the 15th day of the second month after the primary election or general election, as applicable, return any money in excess of $5,000 to the contributor.

6. Except for a former public officer who is subject to the provisions of subsection 10, every person who qualifies as a candidate by receiving one or more qualifying contributions in excess of $100 but who, within 4 years after the date of receiving the first of those qualifying contributions, does not:

(a) File a declaration of candidacy or an acceptance of candidacy; or

(b) Appear on an official ballot at any election,

Ê shall, not later than the 15th day of the month after the end of the 4-year period, dispose of all contributions that have not been spent or committed for expenditure through one or any combination of the methods set forth in subsection 4.

7. Except as otherwise provided in [subsections 7 and] subsection 8, every public officer who:

(a) Does not run for reelection to the office which he or she holds [and is] ;

(b) Is not a candidate for any other office [;] and does not qualify as a candidate by receiving one or more qualifying contributions in excess of $100; and

[(b)] (c) Has contributions that are not spent or committed for expenditure remaining from a previous election,

Ê shall, not later than the 15th day of the second month after the expiration of the public officer’s term of office, dispose of those contributions in the manner provided in subsection 4.

[7. A]

8. Every public officer who:

(a) Resigns from his or her office;

(b) Is not a candidate for any other office [;] and does not qualify as a candidate by receiving one or more qualifying contributions in excess of $100; and

Ê shall, not later than the 15th day of the second month after the effective date of the resignation, dispose of those contributions in the manner provided in subsection 4.

[8. A]

9. Except as otherwise provided in subsection 10, every public officer who:

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ê2015 Statutes of Nevada, Page 1181 (CHAPTER 249, SB 293)ê

(a) Does not run for reelection to the office which he or she holds [and is] or who resigns from his or her office;

(b) Is a candidate for any other office [;] or qualifies as a candidate by receiving one or more qualifying contributions in excess of $100; and

[(b)] (c) Has contributions that are not spent or committed for expenditure remaining from a previous election,

Ê may use the unspent contributions in a future election. Such a public officer is subject to the reporting requirements set forth in NRS 294A.120, 294A.125, 294A.128, 294A.200 and 294A.362 for as long as the public officer is a candidate for any office [.

9.] or qualifies as a candidate by receiving one or more qualifying contributions in excess of $100.

10. Every former public officer described in subsection 9 who qualifies as a candidate by receiving one or more qualifying contributions in excess of $100 but who, within 4 years after the date of receiving the first of those qualifying contributions, does not:

(a) File a declaration of candidacy or an acceptance of candidacy; or

(b) Appear on an official ballot at any election,

11. In addition to the methods for disposing of the unspent money set forth in [subsections 3, 4, 5, 7 and 8,] this section, a Legislator may donate not more than $500 of that money to the Nevada Silver Haired Legislative Forum created pursuant to NRS 427A.320.

[10.] 12. Any contributions received before a candidate for office at a primary election, general election or special election dies that were not spent or committed for expenditure before the death of the candidate must be disposed of in the manner provided in subsection 4.

[11.] 13. The court shall, in addition to any penalty which may be imposed pursuant to NRS 294A.420, order the candidate or public officer to dispose of any remaining contributions in the manner provided in this section.

[12.] 14. As used in this section [, “contributions” include] :

(a) “Contribution” includes, without limitation, any interest and other income earned [thereon.] on a contribution.

(b) “Qualifying contribution” means the receipt of a contribution that causes a person to qualify as a candidate pursuant to subsection 4 of NRS 294A.005.

Sec. 3. 1. Notwithstanding the provisions of NRS 294A.160, as amended by section 2 of this act, or any other provisions of law, a former public officer shall, on or before September 30, 2017:

(a) File a declaration of candidacy or acceptance of candidacy;

(b) Appear on an official ballot at any election held in the State; or

(c) Dispose of unspent contributions through one or any combination of the methods set forth in subsection 4 of NRS 294A.160.

2. A former public officer is subject to the reporting requirements set forth in chapter 294A of NRS for as long as the former public officer has unspent contributions. The provisions of this subsection apply to contributions remaining from a previous election and contributions that the former public officer has received since the expiration of his or her term of office.

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ê2015 Statutes of Nevada, Page 1182 (CHAPTER 249, SB 293)ê

contributions remaining from a previous election and contributions that the former public officer has received since the expiration of his or her term of office.

3. A former public officer who violates a provision of this section is subject to the same penalties and procedure as if the person had violated the provisions of chapter 294A of NRS. In enforcing the provisions of this section, the Secretary of State has the powers prescribed in NRS 294A.410 and 294A.420.

4. As used in this section:

(a) “Contribution” has the meaning ascribed to it in NRS 294A.007 and includes, without limitation, any interest and other income earned on a contribution.

(b) “Former public officer” means a person who, on October 1, 2015:

(1) Previously held a state, district, county, city or township office;

(2) Does not currently hold that or any other office; and

(3) Has contributions that are not spent or committed for expenditure remaining from a previous election.

________

CHAPTER 250, SB 303

Senate Bill No. 303–Senator Hammond

CHAPTER 250

[Approved: May 27, 2015]

AN ACT relating to the protection of children; revising provisions relating to the circumstances under which a child is considered to be in need of protection; revising provisions concerning proceedings related to the termination of parental rights; revising the powers and duties of the Legislative Committee on Child Welfare and Juvenile Justice; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

Existing law sets forth the circumstances under which a child is or may be in need of protection. (NRS 432B.330) Those circumstances are considered, without limitation, by: (1) an agency which provides child welfare services to determine whether to file a petition in juvenile court alleging that a child is in need of protection; and (2) the juvenile court in an adjudicatory hearing to determine whether a child was in need of protection at the time the child was removed from the home. (NRS 62A.180, 432B.050, 432B.340, 432B.410, 432B.490, 432B.510, 432B.530) Under existing law, a child may be in need of protection if the person responsible for the welfare of the child is responsible for the abuse or neglect of another child who resided with that person. (NRS 432B.330) Section 1 of this bill provides that a child is, rather than may be, in need of protection if the child is in the care of a person responsible for the welfare of the child and another child has been subjected to abuse by that person, unless the person has successfully completed a plan for services that was recommended by an agency which provides child welfare services to address the abuse of the other child. Section 1 also provides that a child may be in need of protection if the child is in the care of a person responsible for the welfare of the child and another child has been subjected to abuse by that person, regardless of whether the person has successfully completed such a plan for services.

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ê2015 Statutes of Nevada, Page 1183 (CHAPTER 250, SB 303)ê

Existing law sets forth the grounds necessary to terminate parental rights, including, without limitation, conduct of a parent or parents that demonstrates a risk of serious physical, mental or emotional injury to the child if the child were returned to, or remains in, the home of his or her parent or parents. (NRS 128.105) Section 3 of this bill requires a court to consider certain factors if the child has been out of the care of his or her parent or guardian for at least 12 consecutive months, before making a finding that parental conduct satisfies that provision. Section 4 of this bill revises the conditions a court is required to consider in determining neglect by or unfitness of a parent for the purpose of proceedings regarding the termination of parental rights.

Sections 4.3 and 4.5 of this bill add: (1) reviewing issues relating to the provision of foster care; and (2) proposing recommended legislation concerning that issue to the powers and duties of the Legislative Committee on Child Welfare and Juvenile Justice.

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

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 432B.330 is hereby amended to read as follows:

432B.330 1. A child is in need of protection if:

(a) The child has been abandoned by a person responsible for the welfare of the child;

(b) The child has been subjected to abuse or neglect by a person responsible for the welfare of the child;

(1) Died as a result of abuse or neglect by that person; or

(2) Been subjected to abuse by that person, unless the person has successfully completed a plan for services that was recommended by an agency which provides child welfare services pursuant to NRS 432B.340 to address the abuse of the other child;

(d) The child has been placed for care or adoption in violation of law; or

(e) The child has been delivered to a provider of emergency services pursuant to NRS 432B.630.

2. A child may be in need of protection if the person responsible for the welfare of the child:

(a) Is unable to discharge his or her responsibilities to and for the child because of incarceration, hospitalization, or other physical or mental incapacity;

(b) Fails, although the person is financially able to do so or has been offered financial or other means to do so, to provide for the following needs of the child:

(1) Food, clothing or shelter necessary for the child’s health or safety;

(2) Education as required by law; or

(3) Adequate medical care; [or]

(d) Has been responsible for the abuse of another child regardless of whether that person has successfully completed a plan for services that was recommended by an agency which provides child welfare services pursuant to NRS 432B.340 to address the abuse of the other child.

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ê2015 Statutes of Nevada, Page 1184 (CHAPTER 250, SB 303)ê

3. A child may be in need of protection if the death of a parent of the child is or may be the result of an act by the other parent that constitutes domestic violence pursuant to NRS 33.018.

4. A child may be in need of protection if the child is identified as being affected by prenatal illegal substance abuse or as having withdrawal symptoms resulting from prenatal drug exposure.

5. As used in this section:

(a) “Abuse” means:

(1) Physical or mental injury of a nonaccidental nature; or

(2) Sexual abuse or sexual exploitation,

Ê of a child caused or allowed by a person responsible for the welfare of the child under circumstances which indicate that the child’s health or welfare is harmed or threatened with harm. The term does not include the actions described in subsection 2 of NRS 432B.020.

(b) “Allow” means to do nothing to prevent or stop the abuse or neglect of a child in circumstances where the person knows or has reason to know that a child is abused or neglected.

(1) Provide for the needs of a child set forth in paragraph (b) of subsection 2; or

(2) Provide proper care, control and supervision of a child as necessary for the well-being of the child because of the faults or habits of the person responsible for the welfare of the child or the neglect or refusal of the person to provide them when able to do so.

Ê The term does not include the actions described in subsection 2 of NRS 432B.020.

Sec. 2. (Deleted by amendment.)

Sec. 3. NRS 128.105 is hereby amended to read as follows:

128.105 1. The primary consideration in any proceeding to terminate parental rights must be whether the best interests of the child will be served by the termination. An order of the court for the termination of parental rights must be made in light of the considerations set forth in this section and NRS 128.106 to 128.109, inclusive, and based on evidence and include a finding that:

[1.] (a) The best interests of the child would be served by the termination of parental rights; and

[2.] (b) The conduct of the parent or parents was the basis for a finding made pursuant to subsection 3 of NRS 432B.393 or demonstrated at least one of the following:

[(a)] (1) Abandonment of the child;

[(b)] (2) Neglect of the child;

[(c)] (3) Unfitness of the parent;

[(d)] (4) Failure of parental adjustment;

[(e)] (5) Risk of serious physical, mental or emotional injury to the child if the child were returned to, or remains in, the home of his or her parent or parents;

[(f)] (6) Only token efforts by the parent or parents:

[(1)] (I) To support or communicate with the child;

[(2)] (II) To prevent neglect of the child;

[(3)] (III) To avoid being an unfit parent; or

[(4)] (IV) To eliminate the risk of serious physical, mental or emotional injury to the child; or

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ê2015 Statutes of Nevada, Page 1185 (CHAPTER 250, SB 303)ê

[(g)] (7) With respect to termination of the parental rights of one parent, the abandonment by that parent.

2. Before making a finding pursuant to subparagraph (5) of paragraph (b) of subsection 1, if the child has been out of the care of his or her parent or guardian for at least 12 consecutive months, the court shall consider, without limitation:

(a) The placement options for the child;

(b) The age of the child; and

Sec. 4. NRS 128.106 is hereby amended to read as follows:

128.106 In determining neglect by or unfitness of a parent, the court shall consider, without limitation, the following conditions which may diminish suitability as a parent:

1. Emotional illness, mental illness or mental deficiency of the parent which renders the parent consistently unable to care for the immediate and continuing physical or psychological needs of the child for extended periods of time. The provisions contained in NRS 128.109 apply to the case if the child has been placed outside his or her home pursuant to chapter 432B of NRS.

2. Conduct toward a child of a physically, emotionally or sexually cruel or abusive nature.

3. Conduct that violates any provision of NRS 200.463, 200.4631, 200.464 or 200.465.

4. Excessive use of intoxicating liquors, controlled substances or dangerous drugs which renders the parent consistently unable to care for the child.

5. Repeated or continuous failure by the parent, although physically and financially able, to provide the child with adequate food, clothing, shelter, education or other care and control necessary for the child’s physical, mental and emotional health and development, but a person who, legitimately practicing his or her religious beliefs, does not provide specified medical treatment for a child is not for that reason alone a negligent parent.

6. Conviction of the parent for commission of a felony, if the facts of the crime are of such a nature as to indicate the unfitness of the parent to provide adequate care and control to the extent necessary for the child’s physical, mental or emotional health and development.

7. [Unexplained injury or death of a] Whether the child, a sibling of the child [.] or another child in the care of the parent suffered a physical injury resulting in substantial bodily harm, a near fatality or fatality for which the parent has no reasonable explanation and for which there is evidence that such physical injury or death would not have occurred absent abuse or neglect of the child by the parent.

8. Inability of appropriate public or private agencies to reunite the family despite reasonable efforts on the part of the agencies.

9. As used in this section, “near fatality” has the meaning ascribed to it in NRS 432B.175.

Sec. 4.5. NRS 128.109 is hereby amended to read as follows:

128.109 1. If a child has been placed outside of his or her home pursuant to chapter 432B of NRS, the following provisions must be applied to determine the conduct of the parent:

(a) If the child has resided outside of his or her home pursuant to that placement for 14 months of any 20 consecutive months, it must be presumed that the parent or parents have demonstrated only token efforts to care for the child as set forth in subparagraph (6) of paragraph [(f)] (b) of subsection [2] 1 of NRS 128.105.

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ê2015 Statutes of Nevada, Page 1186 (CHAPTER 250, SB 303)ê

that the parent or parents have demonstrated only token efforts to care for the child as set forth in subparagraph (6) of paragraph [(f)] (b) of subsection [2] 1 of NRS 128.105.

(b) If the parent or parents fail to comply substantially with the terms and conditions of a plan to reunite the family within 6 months after the date on which the child was placed or the plan was commenced, whichever occurs later, that failure to comply is evidence of failure of parental adjustment as set forth in subparagraph (4) of paragraph [(d)] (b) of subsection [2] 1 of NRS 128.105.

2. If a child has been placed outside of his or her home pursuant to chapter 432B of NRS and has resided outside of his or her 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.

3. The presumptions specified in subsections 1 and 2 must not be overcome or otherwise affected by evidence of failure of the State to provide services to the family.

Sec. 4.7. NRS 218E.715 is hereby amended to read as follows:

218E.715 The Committee shall evaluate and review issues relating to:

1. The provision of child welfare services in this State, including, without limitation:

(a) Programs for the provision of child welfare services;

(b) Licensing and reimbursement of providers of foster care;

(c) The provision of foster care, including, without limitation, reunification of foster children with a birth parent and adoption of foster children by a foster parent;

(d) Mental health services; and

[(d)] (e) Compliance with federal requirements regarding child welfare; and

2. Juvenile justice in this State, including, without limitation:

(a) The coordinated continuum of care in which community-based programs and services are combined to ensure that health services, substance abuse treatment, education, training and care are compatible with the needs of each juvenile in the juvenile justice system;

(b) Individualized supervision, care and treatment to accommodate the individual needs and potential of the juvenile and the juvenile’s family, and treatment programs which integrate the juvenile into situations of living and interacting that are compatible with a healthy, stable and familial environment;

(c) Programs for aftercare and reintegration in which juveniles will continue to receive treatment after their active rehabilitation in a facility to prevent the relapse or regression of progress achieved during the recovery process;

(d) Overrepresentation and disparate treatment of minorities in the juvenile justice system, including, without limitation, a review of the various places where bias may influence decisions concerning minorities;

(e) Gender-specific services, including, without limitation, programs for female juvenile offenders which consider female development in their design and implementation and which address the needs of females, including issues relating to:

(1) Victimization and abuse;

(2) Substance abuse;

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ê2015 Statutes of Nevada, Page 1187 (CHAPTER 250, SB 303)ê

(3) Mental health;

(4) Education; and

(5) Vocational and skills training;

(f) The quality of care provided for juvenile offenders in state institutions and facilities, including, without limitation:

(1) The qualifications and training of staff;

(2) The documentation of the performance of state institutions and facilities;

(3) The coordination and collaboration of agencies; and

(4) The availability of services relating to mental health, substance abuse, education, vocational training and treatment of sex offenders and violent offenders;

(g) The feasibility and necessity for the independent monitoring of state institutions and facilities for the quality of care provided to juvenile offenders; and

(h) Programs developed in other states which provide a system of community-based programs that place juvenile offenders in more specialized programs according to the needs of the juveniles.

Sec. 4.9. NRS 218E.720 is hereby amended to read as follows:

218E.720 1. The Committee may:

(a) Conduct investigations and hold hearings in connection with its duties pursuant to NRS 218E.715 and exercise any of the investigative powers set forth in NRS 218E.105 to 218E.140, inclusive;

(b) Request that the Legislative Counsel Bureau assist in the research, investigations, hearings and reviews of the Committee; and

(c) Propose recommended legislation concerning child welfare and juvenile justice to the Legislature [.] including, without limitation, recommended legislation concerning the provision of foster care as described in paragraph (c) of subsection 1 of NRS 218E.715.

2. The Committee shall, on or before January 15 of each odd-numbered year, submit to the Director for transmittal to the Legislature a report concerning the evaluation and review conducted pursuant to NRS 218E.715.

Sec. 5. This act becomes effective on July 1, 2015.

________

CHAPTER 251, SB 310

Senate Bill No. 310–Senator Kieckhefer

CHAPTER 251

[Approved: May 27, 2015]

AN ACT relating to local government financing; extending the termination date of certain tourism improvement districts; revising provisions governing the use of certain proceeds from the local school support tax to finance or reimburse a tourism improvement district; and providing other matters properly relating thereto.

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ê2015 Statutes of Nevada, Page 1188 (CHAPTER 251, SB 310)ê

Legislative Counsel’s Digest:

Existing law provides for the adoption by a city or county of an ordinance creating a tourism improvement district and for the pledge of certain tax revenues generated within the district to finance the acquisition, improvement, equipping, operation and maintenance of a tourism improvement project within the district. (NRS 271A.070) Existing law also provides that any bonds issued to finance or refinance projects for the benefit of the district, any agreements for reimbursement of costs relating to such projects, and the agreement entered into between a municipality and the Department of Taxation specifying the dates and procedures for distribution of the pledged tax revenues must cease at the end of the fiscal year in which the 20th anniversary of the adoption of the ordinance creating the district occurs. (NRS 271A.100, 271A.120) Sections 1 and 2 of this bill effectively extend the life of a tourism improvement district to 25 years if the district is a district in which, during the first 5 full fiscal years of its existence, the amount of the money pledged to the financing of projects in the district and received by the municipality with respect to the district is equal to zero.

Existing law prohibits the governing body of a municipality from providing any financing or reimbursement to a tourism improvement district from the proceeds of the local school support tax collected from retailers that locate within the district on or after July 1, 2013. Existing law provides an exemption from this prohibition if the governing body obtains an opinion from independent bond counsel stating that the applicability of the prohibition would impair an existing contract for the sale of bonds that were issued before July 1, 2013. (NRS 271A.125) Section 3 of this bill provides a further exemption from this prohibition if the district is a district in which, during the first 5 full fiscal years of its existence, the amount of the money pledged to the financing of projects in the district and received by the municipality with respect to the district is equal to zero.

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

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 271A.100 is hereby amended to read as follows:

271A.100 After the adoption of an ordinance creating a district in accordance with this chapter, the governing body of the municipality and the Department of Taxation shall enter into an agreement specifying the dates and procedure for distribution to the municipality of any money pledged pursuant to NRS 271A.070. The distributions must:

1. Be made not less frequently than once each calendar quarter; and

2. [Cease] Except as otherwise provided in this subsection, cease at the end of the fiscal year in which the 20th anniversary of the adoption of the ordinance creating the district occurs. If the district is a district in which, during the first 5 full fiscal years after the creation of the district, the amount of the money pledged pursuant to NRS 271A.070 and received by the municipality with respect to the district is equal to zero, the distributions must cease at the end of the fiscal year in which the 25th anniversary of the adoption of the ordinance creating the district occurs.

Sec. 2. NRS 271A.120 is hereby amended to read as follows:

271A.120 1. Except as otherwise provided in this section, if the governing body of a municipality adopts an ordinance pursuant to NRS 271A.070, the municipality may:

(a) Issue, at one time or from time to time, bonds or notes as special obligations under the Local Government Securities Law to finance or refinance projects for the benefit of the district. Any such bonds or notes may be secured by a pledge of, and be payable from, any money pledged pursuant to NRS 271A.070 and received by the municipality with respect to the district, any revenue received by the municipality from any revenue-producing projects in the district, or any combination thereof.

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ê2015 Statutes of Nevada, Page 1189 (CHAPTER 251, SB 310)ê

be secured by a pledge of, and be payable from, any money pledged pursuant to NRS 271A.070 and received by the municipality with respect to the district, any revenue received by the municipality from any revenue-producing projects in the district, or any combination thereof.

(b) Enter into an agreement with one or more governmental entities or other persons to reimburse that entity or person for the cost of acquiring, improving or equipping, or any combination thereof, any project, which may contain such terms as are determined to be desirable by the governing body of the municipality, including the payment of reasonable interest and other financing costs incurred by such entity or other person. Any such reimbursements may be secured by a pledge of, and be payable from, any money pledged pursuant to NRS 271A.070 and received by the municipality with respect to the district, any revenue received by the municipality from any revenue-producing projects in the district, or any combination thereof. Such an agreement is not subject to the limitations of subsection 1 of NRS 354.626 and may, at the option of the governing body, be binding on the municipality beyond the fiscal year in which it was made . [, only if the agreement pertains solely to one or more projects that are owned by the municipality or another governmental entity.]

2. The governing body of a municipality shall not, with respect to any district created before, on or after July 1, 2011, provide any financing or reimbursement pursuant to this section:

(a) Except as otherwise provided in this paragraph, to any governmental entity for any project within the district if any nongovernmental entity is or was entitled to receive any financing or reimbursement from the municipality pursuant to this section under the original financing agreements for the initial projects within the district. This paragraph does not prohibit the provision of such financing or reimbursement to a governmental entity that is or was entitled to receive such financing or reimbursement under the original financing agreements for the initial projects within the district.

(b) To any person or other entity for any project within the district, other than a person or other entity that is or was entitled to receive such financing or reimbursement from the municipality under the original financing agreements for the initial projects within the district, without the consent of all the persons and other entities that were entitled to receive such financing or reimbursement under the original financing agreements for the initial projects within the district.

3. Before the issuance of any bonds or notes pursuant to this section, the municipality must obtain the results of a feasibility study, commissioned by the municipality, which shows that a sufficient amount will be generated from money pledged pursuant to NRS 271A.070 to make timely payment on the bonds or notes, taking into account the revenue from any other revenue-producing projects also pledged for the payment of the bonds or notes, if any. A failure to make payments of any amounts due:

(a) With respect to any bonds or notes issued pursuant to subsection 1; or

(b) Under any agreements entered into pursuant to subsection 1,

Ê because of any insufficiency in the amount of money pledged pursuant to NRS 271A.070 to make those payments shall be deemed not to constitute a default on those bonds, notes or agreements.

4. No bond, note or other agreement issued or entered into pursuant to this section may be secured by or payable from the general fund of the municipality, the power of the municipality to levy ad valorem property taxes, or any source other than any money pledged pursuant to NRS 271A.070 and received by the municipality with respect to the district, any revenue received by the municipality from any revenue-producing projects in the district, or any combination thereof.

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ê2015 Statutes of Nevada, Page 1190 (CHAPTER 251, SB 310)ê

taxes, or any source other than any money pledged pursuant to NRS 271A.070 and received by the municipality with respect to the district, any revenue received by the municipality from any revenue-producing projects in the district, or any combination thereof. No bond, note or other agreement issued or entered into pursuant to this section may ever become a general obligation of the municipality or a charge against its general credit or taxing powers, nor may any such bond, note or other agreement become a debt of the municipality for purposes of any limitation on indebtedness.

5. [Any] Except as otherwise provided in this subsection, any bond or note issued pursuant to this section, including any bond or note issued to refund any such bond or note, must mature on or before, and any agreement entered pursuant to this section must automatically terminate on or before, the end of the fiscal year in which the 20th anniversary of the adoption of the ordinance creating the district occurs. If the district is a district in which, during the first 5 full fiscal years after the creation of the district, the amount of the money pledged pursuant to NRS 271A.070 and received by the municipality with respect to the district is equal to zero, any bond or note issued pursuant to this section, including any bond or note issued to refund any such bond or note, must mature on or before, and any agreement entered pursuant to this section must automatically terminate on or before, the end of the fiscal year in which the 25th anniversary of the adoption of the ordinance creating the district occurs.

Sec. 3. NRS 271A.125 is hereby amended to read as follows:

271A.125 1. The governing body of a municipality:

(a) Shall require the review of each claim submitted pursuant to any contract or other agreement made with the governing body to provide any financing or reimbursement pursuant to NRS 271A.120, by an independent auditor.

(b) Shall not:

(1) With respect to any district created on or after July 1, 2011, provide any financing or reimbursement pursuant to NRS 271A.120 for:

(I) Any legal fees, accounting fees, costs of insurance, fees for legal notices or costs to amend any ordinances.

(II) Any project that includes the relocation on or after July 1, 2011, to the district of any retail facilities of a retailer from another location outside of and within 3 miles of the boundary of the district. Each pledge of money pursuant to NRS 271A.070 shall be deemed to exclude any amounts attributable to any tangible personal property sold at retail, or stored, used or otherwise consumed, in the district during a fiscal year by a retailer who, on or after July 1, 2011, relocates any of its retail facilities to the district from another location outside of and within 3 miles of the boundary of the district.

(2) Provide any financing or reimbursement pursuant to NRS 271A.120 from the proceeds of the taxes described in subparagraph (2) of paragraph (c) of subsection 1 of NRS 271A.070 that are collected from any retail facilities of a retailer which, on or after July 1, 2013, locates within the boundary of a district.

2. The provisions of subparagraph (2) of paragraph (b) of subsection 1 do not apply to the governing body of a municipality with respect to any district created before July 1, 2013, if [the] :

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ê2015 Statutes of Nevada, Page 1191 (CHAPTER 251, SB 310)ê

(a) The district is a district in which, during the first 5 full fiscal years after the creation of the district, the amount of the money pledged pursuant to NRS 271A.070 and received by the municipality with respect to the district is equal to zero:

(1) For the period consisting of the first 20 full fiscal years after the creation of the district; and

(2) For the period consisting of the 5 full fiscal years immediately following the period described in subparagraph (1), except that the governing body of the municipality may provide financing or reimbursement pursuant to NRS 271A.120 from not more than 0.5625 percent of the amount of the proceeds of the taxes described in subparagraph (2) of paragraph (c) of subsection 1 of NRS 271A.070 that are collected during the period described in this subparagraph from any retail facilities of a retailer which, on or after July 1, 2013, locates within the boundary of a district; or

(b) The governing body obtains an opinion from independent bond counsel stating that the applicability of those provisions would impair an existing contract for the sale of bonds that were issued before July 1, 2013.

3. The owner of a project shall, upon request, provide to the Department of Taxation information that identifies the retail facilities that open or close within the project.

Sec. 4. This act becomes effective upon passage and approval.

________

CHAPTER 252, SB 313

Senate Bill No. 313–Senator Kieckhefer

CHAPTER 252

[Approved: May 27, 2015]

AN ACT relating to education; authorizing the governing body of a private school or a university school for profoundly gifted pupils to provide a program of distance education; revising provisions governing apportionments and allowances from the State Distributive School Account to include pupils who are enrolled full-time in a program of distance education provided by a university school for profoundly gifted pupils; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

Existing law establishes a university school for profoundly gifted pupils and requires each pupil who is enrolled in such a school to be included in the count of pupils in the school district in which the school is located for the purposes of apportionments and allowances from the State Distributive School Account. (NRS 387.1233, 392A.083) Section 1 of this bill requires a pupil who is enrolled full-time in a program of distance education provided by a university school for profoundly gifted pupils to be included in the count of pupils for purposes of apportionments and allowances from the State Distributive School Account. Section 3 of this bill authorizes the governing body of a university school for profoundly gifted pupils to provide a program of distance education for a pupil who is otherwise eligible to attend the school.

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ê2015 Statutes of Nevada, Page 1192 (CHAPTER 252, SB 313)ê

Existing law generally provides for the operation of private educational institutions and establishments in this State. (Chapter 394 of NRS) Section 4 of this bill authorizes the governing body of a private school to provide a program of distance education for a student or prospective student of the private school who is otherwise eligible to attend the private school. Section 2 of this bill provides that a program of distance education provided by the board of trustees of a school district or the governing body of a charter school does not include a program of distance education provided by a private school or a university school for profoundly gifted pupils, in accordance with sections 3 and 4, respectively.

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

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 387.1233 is hereby amended to read as follows:

387.1233 1. Except as otherwise provided in subsection 2, basic support of each school district must be computed by:

(a) Multiplying the basic support guarantee per pupil established for that school district for that school year by the sum of:

(1) Six-tenths the count of pupils enrolled in the kindergarten department on the last day of the first school month of the school district for the school year, including, without limitation, the count of pupils who reside in the county and are enrolled in any charter school on the last day of the first school month of the school district for the school year.

(2) The count of pupils enrolled in grades 1 to 12, inclusive, on the last day of the first school month of the school district for the school year, including, without limitation, the count of pupils who reside in the county and are enrolled in any charter school on the last day of the first school month of the school district for the school year and the count of pupils who are enrolled in a university school for profoundly gifted pupils located in the county.

(3) The count of pupils not included under subparagraph (1) or (2) who are enrolled full-time in a program of distance education provided by that school district , [or] a charter school located within that school district or a university school for profoundly gifted pupils on the last day of the first school month of the school district for the school year.

(4) The count of pupils who reside in the county and are enrolled:

(I) In a public school of the school district and are concurrently enrolled part-time in a program of distance education provided by another school district or a charter school on the last day of the first school month of the school district for the school year, expressed as a percentage of the total time services are provided to those pupils per school day in proportion to the total time services are provided during a school day to pupils who are counted pursuant to subparagraph (2).

(II) In a charter school and are concurrently enrolled part-time in a program of distance education provided by a school district or another charter school on the last day of the first school month of the school district for the school year, expressed as a percentage of the total time services are provided to those pupils per school day in proportion to the total time services are provided during a school day to pupils who are counted pursuant to subparagraph (2).

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ê2015 Statutes of Nevada, Page 1193 (CHAPTER 252, SB 313)ê

(5) The count of pupils not included under subparagraph (1), (2), (3) or (4), who are receiving special education pursuant to the provisions of NRS 388.440 to 388.520, inclusive, on the last day of the first school month of the school district for the school year, excluding the count of pupils who have not attained the age of 5 years and who are receiving special education pursuant to subsection 1 of NRS 388.475 on that day.

(6) Six-tenths the count of pupils who have not attained the age of 5 years and who are receiving special education pursuant to subsection 1 of NRS 388.475 on the last day of the first school month of the school district for the school year.

(7) The count of children detained in facilities for the detention of children, alternative programs and juvenile forestry camps receiving instruction pursuant to the provisions of NRS 388.550, 388.560 and 388.570 on the last day of the first school month of the school district for the school year.

(8) The count of pupils who are enrolled in classes for at least one semester pursuant to subsection 5 of NRS 386.560, subsection 5 of NRS 386.580 or subsection 3 of NRS 392.070, expressed as a percentage of the total time services are provided to those pupils per school day in proportion to the total time services are provided during a school day to pupils who are counted pursuant to subparagraph (2).

(b) Multiplying the number of special education program units maintained and operated by the amount per program established for that school year.

2. Except as otherwise provided in subsection 4, if the enrollment of pupils in a school district or a charter school that is located within the school district on the last day of the first school month of the school district for the school year is less than or equal to 95 percent of the enrollment of pupils in the same school district or charter school on the last day of the first school month of the school district for the immediately preceding school year, the largest number from among the immediately preceding 2 school years must be used for purposes of apportioning money from the State Distributive School Account to that school district or charter school pursuant to NRS 387.124.

3. Except as otherwise provided in subsection 4, if the enrollment of pupils in a school district or a charter school that is located within the school district on the last day of the first school month of the school district for the school year is more than 95 percent of the enrollment of pupils in the same school district or charter school on the last day of the first school month of the school district for the immediately preceding school year, the larger enrollment number from the current year or the immediately preceding school year must be used for purposes of apportioning money from the State Distributive School Account to that school district or charter school pursuant to NRS 387.124.

4. If the Department determines that a school district or charter school deliberately causes a decline in the enrollment of pupils in the school district or charter school to receive a higher apportionment pursuant to subsection 2 or 3, including, without limitation, by eliminating grades or moving into smaller facilities, the enrollment number from the current school year must be used for purposes of apportioning money from the State Distributive School Account to that school district or charter school pursuant to NRS 387.124.

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ê2015 Statutes of Nevada, Page 1194 (CHAPTER 252, SB 313)ê

be used for purposes of apportioning money from the State Distributive School Account to that school district or charter school pursuant to NRS 387.124.

5. Pupils who are excused from attendance at examinations or have completed their work in accordance with the rules of the board of trustees must be credited with attendance during that period.

6. Pupils who are incarcerated in a facility or institution operated by the Department of Corrections must not be counted for the purpose of computing basic support pursuant to this section. The average daily attendance for such pupils must be reported to the Department of Education.

7. Pupils who are enrolled in courses which are approved by the Department as meeting the requirements for an adult to earn a high school diploma must not be counted for the purpose of computing basic support pursuant to this section.

Sec. 1.5. NRS 388.020 is hereby amended to read as follows:

388.020 1. An elementary school is a public school in which grade work is not given above that included in the eighth grade, according to the regularly adopted state course of study.

2. A junior high or middle school is a public school in which the sixth, seventh, eighth and ninth grades are taught under a course of study prescribed and approved by the State Board. The school is an elementary or secondary school for the purpose of the licensure of teachers.

3. A high school is a public school in which subjects above the eighth grade, according to the state course of study, may be taught. The school is a secondary school for the purpose of the licensure of teachers.

4. A special school is an organized unit of instruction operating with approval of the State Board.

5. A charter school is a public school that is formed pursuant to the provisions of NRS 386.490 to 386.649, inclusive.

6. A university school for profoundly gifted pupils is a public school established pursuant to NRS 392A.010 to 392A.110, inclusive [.] , and section 3 of this act.

Sec. 2. NRS 388.829 is hereby amended to read as follows:

388.829 1. “Program of distance education” means a program comprised of one or more courses of distance education [.] that is provided by the board of trustees of a school district or the governing body of a charter school.

2. The term does not include a program of distance education provided by a private school pursuant to section 4 of this act or a university school for profoundly gifted pupils pursuant to section 3 of this act.

Sec. 3. Chapter 392A of NRS is hereby amended by adding thereto a new section to read as follows:

1. The governing body of a university school for profoundly gifted pupils may provide a program of distance education for any pupil or prospective pupil who is otherwise eligible to attend the school.

2. As used in this section, “program of distance education” means a program comprised of one or more courses of study for which instruction is delivered by means of video, computer, television or the Internet or other electronic means of communication, or any combination thereof, in such a manner that the person supervising or providing the instruction and the pupil receiving the instruction are separated geographically for a majority of the time during which the instruction is delivered.

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ê2015 Statutes of Nevada, Page 1195 (CHAPTER 252, SB 313)ê

Sec. 3.5. NRS 392A.040 is hereby amended to read as follows:

392A.040 “University school for profoundly gifted pupils” means a school that:

1. Is located on the campus of a university within the Nevada System of Higher Education;

2. Is operated through a written agreement with the university;

3. Is operated by or is itself a nonprofit corporation that is recognized as exempt pursuant to 26 U.S.C. § 501(c)(3);

4. Demonstrates at least 5 years of successful experience providing educational services to profoundly gifted youth;

5. Provides a full-time alternative program of education , which may include, without limitation, a program of distance education, for profoundly gifted pupils who [have] :

(a) Are residents of this State; and

(b) Have been identified as possessing the abilities and skills necessary for advanced academic work, including accelerated middle school, junior high school, high school and early university entrance; and

6. Does not charge tuition to pupils enrolled in the school.

Sec. 4. Chapter 394 of NRS is hereby amended by adding thereto a new section to read as follows:

1. The governing body of a private school may provide a program of distance education for any student or prospective student who is otherwise eligible to attend the private school.

2. As used in this section, “program of distance education” means a program comprised of one or more courses of study for which instruction is delivered by means of video, computer, television or the Internet or other electronic means of communication, or any combination thereof, in such a manner that the person supervising or providing the instruction and the student receiving the instruction are separated geographically for a majority of the time during which the instruction is delivered.

Sec. 5. This act becomes effective on July 1, 2015.

________

CHAPTER 253, SB 354

Senate Bill No. 354–Senators Denis, Manendo; Hammond and Woodhouse

Joint Sponsor: Assemblyman Araujo

CHAPTER 253

[Approved: May 27, 2015]

AN ACT relating to public safety; authorizing under certain circumstances the operation of a motorized wheelchair and the movement of other pedestrians on a highway or a lane set aside for the use of bicycles and electric bicycles; providing a penalty; and providing other matters properly relating thereto.

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ê2015 Statutes of Nevada, Page 1196 (CHAPTER 253, SB 354)ê

Legislative Counsel’s Digest:

Under existing law, a motorized wheelchair is considered a pedestrian for the purposes of various traffic laws and rules of the road. (NRS 484A.010, 484A.165) Existing law also prohibits a pedestrian from walking along and upon a highway if a sidewalk exists adjacent to the highway. (NRS 484B.297) Section 4 of this bill authorizes a pedestrian to travel onto the adjacent highway if a short section of the sidewalk is impassable or missing. Such a pedestrian may walk or otherwise travel in a lane provided for bicycles and electric bicycles if the area between the lane and the sidewalk is impassable. Section 4 also requires such a pedestrian to stay as close to the side of the highway near the sidewalk as possible, and to return to the sidewalk as soon as practicable. A violation of this section is a misdemeanor under existing law. (NRS 484A.900)

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

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Sections 1 and 2. (Deleted by amendment.)

Sec. 3. NRS 484B.270 is hereby amended to read as follows:

484B.270 1. The driver of a motor vehicle shall not intentionally interfere with the movement of a person lawfully riding a bicycle or an electric bicycle.

2. When overtaking or passing a bicycle or electric bicycle proceeding in the same direction, the driver of a motor vehicle shall exercise due care and:

(a) If there is more than one lane for traffic proceeding in the same direction, move the vehicle to the lane to the immediate left, if the lane is available and moving into the lane is reasonably safe; or

(b) If there is only one lane for traffic proceeding in the same direction, pass to the left of the bicycle or electric bicycle at a safe distance, which must be not less than 3 feet between any portion of the vehicle and the bicycle or electric bicycle, and shall not move again to the right side of the highway until the vehicle is safely clear of the overtaken bicycle or electric bicycle.

3. The driver of a motor vehicle shall yield the right-of-way to any person riding a bicycle or an electric bicycle or a pedestrian as provided in subsection 6 of NRS 484B.297 on the pathway or lane. The driver of a motor vehicle shall not enter, stop, stand, park or drive within a pathway or lane provided for bicycles or electric bicycles except:

(a) When entering or exiting an alley or driveway;

(b) When operating or parking a disabled vehicle;

(d) In the performance of official duties;

(e) In compliance with the directions of a police officer; or

(f) In an emergency.

4. Except as otherwise provided in subsection 3, the driver of a motor vehicle shall not enter or proceed through an intersection while driving within a pathway or lane provided for bicycles or electric bicycles.

5. The driver of a motor vehicle shall:

(a) Exercise due care to avoid a collision with a person riding a bicycle or an electric bicycle; and

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ê2015 Statutes of Nevada, Page 1197 (CHAPTER 253, SB 354)ê

(b) Give an audible warning with the horn of the vehicle if appropriate and when necessary to avoid such a collision.

6. If, while violating any provision of subsections 1 to 5, inclusive, the driver of a motor vehicle is the proximate cause of a collision with a person riding a bicycle, the driver is subject to the additional penalty set forth in subsection 4 of NRS 484B.653.

7. The operator of a bicycle or an electric bicycle shall not:

(a) Intentionally interfere with the movement of a motor vehicle; or

(b) Overtake and pass a motor vehicle unless the operator can do so safely without endangering himself or herself or the occupants of the motor vehicle.

Sec. 4. NRS 484B.297 is hereby amended to read as follows:

484B.297 1. [Where] Except as otherwise provided in subsection 6, where sidewalks are provided, it is unlawful for any pedestrian to walk along and upon an adjacent highway.

2. [Pedestrians] Except as otherwise provided in subsection 6, pedestrians walking along highways where sidewalks are not provided shall walk on the left side of those highways facing the approaching traffic.

3. A person shall not stand in a highway to solicit a ride or any business from the driver or any occupant of a vehicle. A person shall not, without a permit issued pursuant to NRS 244.3555 or 268.423, solicit any contribution from the driver or any occupant of a vehicle.

4. It is unlawful for any pedestrian who is under the influence of intoxicating liquors or any narcotic or stupefying drug to be within the traveled portion of any highway.

5. The provisions of this section apply to riders of animals, except that the provisions of subsections 1, 2 and 3 do not apply to a peace officer who rides an animal while performing his or her duties as a peace officer.

6. A pedestrian walking or otherwise traveling on a sidewalk who encounters an obstruction to his or her mobility on the sidewalk, including, without limitation, a short section of the sidewalk that is missing or impassable, may proceed with due care on the immediately adjacent highway to move around such an obstruction. Such a pedestrian:

(a) Must walk or otherwise travel as far to the side of the highway near the sidewalk as possible;

(b) May walk or otherwise travel on the highway in the direction he or she was walking or traveling on the sidewalk, regardless of the direction of traffic;

(c) May walk or otherwise travel in a lane provided for bicycles or electric bicycles if the area between the lane and the sidewalk is impassable; and

(d) Must return to the sidewalk as soon as practicable.

7. A person who violates the provisions of this section is guilty of a misdemeanor.

Secs. 5-11. (Deleted by amendment.)

Sec. 12. This act becomes effective:

1. Upon passage and approval for the purpose of adopting any regulations and performing any other preparatory administrative tasks necessary to carry out the provisions of this act; and

2. On January 1, 2016, for all other purposes.

________

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ê2015 Statutes of Nevada, Page 1198ê

CHAPTER 254, SB 373

Senate Bill No. 373–Senator Hardy

CHAPTER 254

[Approved: May 27, 2015]

AN ACT relating to insurance; providing for the licensure of a producer of limited lines travel insurance; authorizing such producers to offer and disseminate travel insurance through certain travel retailers; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

Existing law authorizes the Commissioner of Insurance to license producers of insurance to solicit, negotiate and sell insurance in this State. (NRS 683A.261) Section 7 of this bill authorizes the Commissioner to issue licenses to producers of limited lines travel insurance allowing them to solicit, negotiate and sell policies of travel insurance. Section 8 of this bill allows a person licensed as a producer of limited lines travel insurance to sell policies of travel insurance through certain travel retailers under certain conditions. Section 9 of this bill requires a producer of limited lines travel insurance to maintain a register of the travel retailers through which policies of travel insurance are sold. Section 10 of this bill exempts producers of limited lines travel insurance and travel retailers from the educational and written examination requirements of chapter 683A of NRS. Section 11 of this bill requires travel retailers to make certain disclosures to purchasers of travel insurance. Section 12 of this bill prohibits a travel retailer from evaluating, providing advice or rendering opinions regarding the technical terms and benefits of a policy of travel insurance offered by the travel retailer or a purchaser’s existing insurance coverage. Section 13 of this bill authorizes a producer of limited lines travel insurance to pay compensation to a travel retailer for services related to the sale of travel insurance. Sections 14 and 15 of this bill make a producer of limited lines travel insurance responsible for the acts of a travel retailer who offers travel insurance and subjects both the producer and retailer to the disciplinary provisions of chapter 683A of NRS and the provisions of chapter 686A of NRS governing insurance trade practices and fraud.

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

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 683A of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 15, inclusive, of this act.

Sec. 2. As used in NRS 683A.201 to 683A.370, inclusive, and sections 2 to 15, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 3 to 6, inclusive, of this act have the meanings ascribed to them in those sections.

Sec. 3. “Producer of limited lines travel insurance” means a person licensed pursuant to section 7 of this act who is authorized by an insurer to solicit travel insurance either directly or through a travel retailer.

Sec. 4. “Offer and disseminate” means the provision of general information, including, without limitation, a description of the coverage and price of travel insurance, as well as the processing of applications, collection of premiums and performance of other activities that are allowed without obtaining a license issued pursuant to this chapter.

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ê2015 Statutes of Nevada, Page 1199 (CHAPTER 254, SB 373)ê

Sec. 5. 1. “Travel insurance” means insurance coverage for personal risks incident to planned travel, including, without limitation:

(a) Interruption or cancellation of a trip or event;

(b) Loss of baggage or personal effects;

(d) Sickness, accident, disability or death occurring during travel.

2. The term does not include major medical plans which provide comprehensive medical protection for travelers whose trips are intended to last longer than 6 months, including, without limitation, persons working overseas as expatriates or deployed military personnel.

Sec. 6. “Travel retailer” means a person that makes, arranges or offers travel services and, as an ancillary service to its customers, may offer and disseminate travel insurance on behalf of, and under the general direction and supervision of, a producer of limited lines travel insurance.

Sec. 7. In accordance with the provisions of NRS 683A.201 to 683A.370, inclusive, and sections 2 to 15, inclusive, of this act, the Commissioner may issue a license as a producer of limited lines travel insurance to a person who has filed with the Commissioner. A license issued pursuant to this section authorizes the licensee to sell, solicit or negotiate travel insurance through a licensed agent.

Sec. 8. 1. A travel retailer may offer and disseminate policies of travel insurance on behalf of and within the scope of a license issued pursuant to section 7 of this act under the following conditions:

(a) The producer of limited lines travel insurance or travel retailer provides to a purchaser or prospective purchaser of travel insurance:

(1) A description of the material terms, or the actual material terms, of the insurance coverage;

(2) A description of the process for filing a claim;

(3) A description of the review or cancellation process for the policy of travel insurance; and

(4) The identity and contact information of the insurer and the producer of limited lines travel insurance;

(b) The travel retailer is included in the register maintained by the producer of limited lines travel insurance pursuant to section 9 of this act;

(c) The producer of limited lines travel insurance has designated one of its employees who is licensed as a producer of insurance pursuant to this chapter to be responsible for compliance with the provisions of this title and any rules or regulations adopted pursuant thereto;

(d) The person designated pursuant to paragraph (c) and the officers of the producer of limited lines travel insurance, or any person who directs or controls the insurance operations of the producer of limited lines travel insurance, are in compliance with the provisions of this title and the laws, rules and regulations governing the provision and sale of insurance in any other state in which the producer of limited lines travel insurance is a resident or conducts insurance operations;

(e) The producer of limited lines travel insurance has paid all applicable licensing fees in accordance with the provisions of this chapter; and

(f) The producer of limited lines travel insurance requires each employee and authorized representative of the travel retailer whose duties include offering and disseminating travel insurance to receive a program of instruction or training approved by the Commissioner. The training material provided as part of such a program must, at a minimum, contain instructions on the types of insurance offered, ethical sales practices and required disclosures to prospective purchasers.

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ê2015 Statutes of Nevada, Page 1200 (CHAPTER 254, SB 373)ê

material provided as part of such a program must, at a minimum, contain instructions on the types of insurance offered, ethical sales practices and required disclosures to prospective purchasers.

2. Travel insurance may be provided as an individual policy or under a group or master policy.

Sec. 9. 1. Each producer of limited lines travel insurance shall, at the time of licensure, establish and maintain a register, on a form and in a manner prescribed by the Commissioner, which includes a list of each travel retailer that offers and disseminates travel insurance on behalf of the producer of limited lines travel insurance. The register must include, without limitation:

(a) The name, address and contact information of the travel retailer;

(b) The name, address and contact information for each officer or other person who directs or controls the travel retailer’s operations; and

2. The producer of limited lines travel insurance shall regularly update the register and shall submit a copy of the register to the Commissioner on an annual basis as directed by the Commissioner. In addition to the annual submission of the register required by this subsection, the Commissioner may require, with reasonable notice and at the Commissioner’s sole discretion, a producer of limited lines travel insurance to submit a copy of the register upon request.

3. A producer of limited lines travel insurance shall certify that the register required pursuant to subsection 1 does not violate the provisions of 18 U.S.C. 1033(c).

Sec. 10. 1. An applicant for, or holder of, a license issued pursuant to section 7 of this act is not required to pass a written examination or meet any prelicensing education or continuing education requirements to receive or renew a license.

2. A travel retailer who is listed in the register maintained pursuant to section 9 of this act or any employee or authorized representative of such a travel retailer who is listed in the register of a producer of limited lines travel insurance, is not required to pass any written examination or complete any education requirements other than the program of instruction or training required by paragraph (f) of subsection 1 of section 8 of this act.

Sec. 11. A travel retailer offering or disseminating travel insurance shall make available to prospective purchasers a brochure or other written material that:

1. Provides the identity and contact information of the insurer and the producer of limited lines travel insurance;

2. Explains that the purchase of travel insurance may not be required to purchase any other product or service from the travel retailer; and

3. Discloses that a travel retailer may provide general information about the insurance offered by the travel retailer, including a description of the coverage and the price, but is not qualified or authorized to answer technical questions about the terms and conditions of the insurance offered by the travel retailer or to evaluate the adequacy of any existing travel insurance the prospective purchaser may have.

Sec. 12. Any travel retailer, or an employee or authorized representative of the travel retailer, who does not hold a valid license as a producer of insurance pursuant to this chapter shall not:

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ê2015 Statutes of Nevada, Page 1201 (CHAPTER 254, SB 373)ê

1. Evaluate or interpret the technical terms, benefits and conditions of an offered travel insurance policy;

2. Evaluate, provide advice or render an opinion concerning a prospective purchaser’s existing insurance coverage or whether such insurance provides adequate coverage for travel related risks; or

3. Hold himself or herself out as a licensed insurer, licensed producer of insurance or insurance expert.

Sec. 13. 1. A travel retailer, or any employee or authorized representative of a travel retailer, who is listed in the register of a limited lines travel insurance producer as being authorized to offer and disseminate travel insurance pursuant to section 9 of this act may receive from the producer of limited lines travel insurance compensation related to the offering and disseminating of travel insurance.

2. A travel retailer, or employee or authorized representative of a travel retailer, who does not hold a valid license as a producer of insurance or a producer of limited lines travel insurance pursuant to this chapter shall not receive any compensation for the performance of any insurance related activity or service, other than the offering and disseminating of travel insurance as authorized pursuant to subsection 1.

Sec. 14. A producer of limited lines travel insurance is responsible for the acts of each travel retailer, or employee or authorized representative of a travel retailer, who offers or disseminates travel insurance under the license of the producer of limited lines travel insurance and shall use every reasonable means to ensure compliance by the travel retailers with the provisions of this chapter and any regulations adopted pursuant thereto.

Sec. 15. A producer of limited lines travel insurance and each travel retailer, or employee or authorized representative of a travel retailer, who offers or disseminates travel insurance under the license of a producer of limited lines travel insurance shall be subject to the provisions of NRS 683A.451 to 683A.520, inclusive, and chapter 686A of NRS.

Secs. 16-18. (Deleted by amendment.)

Sec. 19. NRS 683A.261 is hereby amended to read as follows:

683A.261 1. Unless the Commissioner refuses to issue the license under NRS 683A.451, the Commissioner shall issue a license as a producer of insurance to a person who has satisfied the requirements of NRS 683A.241 and 683A.251. A producer of insurance may qualify for a license in one or more of the lines of authority permitted by statute or regulation, including:

(a) Life insurance on human lives, which includes benefits from endowments and annuities and may include additional benefits from death by accident and benefits for dismemberment by accident and for disability income.

(b) Accident and health insurance for sickness, bodily injury or accidental death, which may include benefits for disability income.

(d) Casualty insurance against legal liability, including liability for death, injury or disability and damage to real or personal property. For the purposes of a producer of insurance, this line of insurance includes surety indemnifying financial institutions or providing bonds for fidelity, performance of contracts or financial guaranty.

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ê2015 Statutes of Nevada, Page 1202 (CHAPTER 254, SB 373)ê

(e) Variable annuities and variable life insurance, including coverage reflecting the results of a separate investment account.

(f) Credit insurance, including credit life, credit accident and health, credit property, credit involuntary unemployment, guaranteed asset protection, 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.

(g) Personal lines, consisting of automobile and motorcycle insurance and residential property insurance, including coverage for flood, of personal watercraft and of excess liability, written over one or more underlying policies of automobile or residential property insurance.

(h) Fixed annuities, including, without limitation, indexed annuities, as a limited line.

(i) Travel [and baggage] insurance, as defined in section 5 of this act, as a limited line.

(j) Rental car agency as a limited line.

(k) Portable electronics as a limited line.

(l) Crop as a limited line.

2. A license as a producer of insurance remains in effect unless revoked, suspended or otherwise terminated if a request for a renewal is submitted on or before the date for the renewal specified on the license, all applicable fees for renewal and a fee established by the Commissioner of not more than $15 for deposit in the Insurance Recovery Account are paid for each license and each authorization to transact business on behalf of a business organization licensed pursuant to subsection 2 of NRS 683A.251, and any requirement for education or any other requirement to renew the license is satisfied by the date specified on the license for the renewal. A producer of insurance may submit a request for a renewal of his or her license within 30 days after the date specified on the license for the renewal if the producer of insurance otherwise complies with the provisions of this subsection and pays, in addition to any fee paid pursuant to this subsection, a penalty of 50 percent of all applicable renewal fees, except for any fee required pursuant to NRS 680C.110. A license as a producer of insurance expires if the Commissioner receives a request for a renewal of the license more than 30 days after the date specified on the license for the renewal. A fee paid pursuant to this subsection is nonrefundable.

3. A natural person who allows his or her license as a producer of insurance to expire may reapply for the same license within 12 months after the date specified on the license for a renewal without passing a written examination or completing a course of study required by paragraph (c) of subsection 1 of NRS 683A.251, but a penalty of twice all applicable renewal fees, except for any fee required pursuant to NRS 680C.110, is required for any request for a renewal of the license that is received after the date specified on the license for the renewal.

4. A licensed producer of insurance who is unable to renew his or her license because of military service, extended medical disability or other extenuating circumstance may request a waiver of the time limit and of any fine or sanction otherwise required or imposed because of the failure to renew.

5. A license must state the licensee’s name, address, personal identification number, the date of issuance, the lines of authority and the date of expiration and must contain any other information the Commissioner considers necessary.

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ê2015 Statutes of Nevada, Page 1203 (CHAPTER 254, SB 373)ê

of expiration and must contain any other information the Commissioner considers necessary. The license must be made available for public inspection upon request.

6. A licensee shall inform the Commissioner of each change of business or residence address, in writing or by other means acceptable to the Commissioner, within 30 days after the change. If a licensee changes his or her business or residence address without giving written notice and the Commissioner is unable to locate the licensee after diligent effort, the Commissioner may revoke the license without a hearing. The mailing of a letter by certified mail, return receipt requested, addressed to the licensee at his or her last mailing address appearing on the records of the Division, and the return of the letter undelivered, constitutes a diligent effort by the Commissioner.

Secs. 20-23. (Deleted by amendment.)

Sec. 24. NRS 683A.325 is hereby amended to read as follows:

683A.325 1. [A] Except as otherwise provided in section 13 of this act, 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.

2. A licensee shall not accept any commission or compensation to which the licensee is not entitled pursuant to the provisions of this title.

Secs. 25-34. (Deleted by amendment.)

Sec. 35. This act becomes effective upon passage and approval for the purpose of adopting any regulations and performing any other preparatory administrative tasks necessary to carry out the provisions of this act, and on January 1, 2016, for all other purposes.

________

CHAPTER 255, SB 377

Senate Bill No. 377–Senator Parks (by request)

CHAPTER 255

[Approved: May 27, 2015]

AN ACT relating to the taxation of property; revising provisions governing the filing of an appeal by mail with a county board of equalization; revising provisions governing the assessment of the common elements of common-interest communities; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

Under existing law, an appeal to the county board of equalization must be filed not later than January 15 or, if January 15 falls on a Saturday, Sunday or legal holiday, on the next business day. (NRS 361.340, 361.356, 361.357) Existing law further provides that any document required or permitted by law to be filed by mailing to the State or a local government is deemed to be filed on the date of the postmark dated by the post office on the envelope in which the document was mailed. However, if the document is not received by the addressee or if the document is received but the postmark is illegible or omitted, the document is deemed to be filed on the date it was mailed, if the sender: (1) establishes that the mailing date was on or before the required filing date by providing the postal receipt for registered or certified mail; or (2) files a duplicate of the document within 15 days after he or she becomes aware that the document was not received.

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ê2015 Statutes of Nevada, Page 1204 (CHAPTER 255, SB 377)ê

before the required filing date by providing the postal receipt for registered or certified mail; or (2) files a duplicate of the document within 15 days after he or she becomes aware that the document was not received. (NRS 238.100) Section 2 of this bill specifically provides that any appeal to a county board of equalization filed by mail is deemed to be filed on the postmark dated by the post office on the envelope in which the appeal was mailed or, if the postmark is omitted or illegible, on the day the appeal is received. Section 2 further provides that any postmark not provided directly by the post office does not establish that an appeal is timely filed.

Existing law provides that the property taxes assessed upon real property in a common-interest community must be assessed upon the community units and not upon the common-interest community as a whole. Existing law further provides a methodology for allocating the taxable value of the common elements of a common-interest community on an equal basis to each of the community units of that common-interest community. (NRS 361.233) Section 3 of this bill provides that this methodology may be used only if the community association provides to the county assessor such information as the county assessor determines to be necessary to identify the community units to which the taxable value of the common elements must be allocated. If the community association does not provide such information to the county assessor, property taxes on the common elements must be paid by the person or association who is the owner of the common elements.

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

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. The Legislature hereby finds and declares that:

1. In Sun City Summerlin Community Association v. Department of Taxation, 113 Nev. 835 (1997), the Nevada Supreme Court held that a statute which provided that no separate tax or assessment could be rendered against certain common elements of a common-interest community or planned community, was unconstitutional and void insofar as it precluded the taxation of common elements in a planned community because the statute violated the requirement of a uniform and equal rate of assessment and taxation of all property as set forth in Section 1 of Article 10 of the Nevada Constitution;

2. The provisions of NRS 361.233 prohibit any ad valorem taxes and special assessments from being levied upon the common elements of a common-interest community but instead provide for the allocation of the taxable value of the common elements of a common-interest community on an equal basis to each of the community units of that common-interest community; and

3. Because any taxes assessed on the common elements of a common-interest community would be allocated to the community units and paid by the owners of the community units through assessments for common expenses, the imposition of ad valorem taxes and special assessments upon the common elements of a common-interest community is equivalent to the allocation of the taxable value of the common elements to the community units under current law and does not result in the unequal assessment and taxation of the common elements.

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ê2015 Statutes of Nevada, Page 1205 (CHAPTER 255, SB 377)ê

Sec. 2. Chapter 361 of NRS is hereby amended by adding thereto a new section to read as follows:

1. Except as provided in subsection 2, any appeal to the county board of equalization filed by mail shall be deemed to be filed on the date of the postmark dated by the post office on the envelope in which the appeal was mailed.

2. If the postmarked date on an envelope in which an appeal was mailed is illegible or omitted, the appeal shall be deemed filed on the date it was received by the county board of equalization.

3. A postmark provided by a postage meter, a postage vending machine, any postage purchased through the Internet or any other form of dated postage which is not directly postmarked by the post office does not establish that an appeal is timely filed.

Sec. 3. NRS 361.233 is hereby amended to read as follows:

361.233 1. Notwithstanding any other provision of law [:] , if a community association provides such information as the county assessor determines to be necessary to identify each community unit in the common-interest community:

(a) Any ad valorem taxes or special assessments assessed upon any real property within a common-interest community:

(1) Must be assessed upon the community units and not upon the common-interest community as a whole; and

(2) Must not be assessed upon any common elements of the common-interest community.

(b) Except as otherwise provided in subsection 2, the taxable value of each parcel:

(1) Composed solely of a community unit must consist of:

(I) The taxable value of that community unit; and

(II) A percentage of the taxable value of all the common elements of that common-interest community which is equal to 1 divided by the total number of community units in that common-interest community; or

(2) Composed of a community unit and any portion of the common elements of the common-interest community must consist of:

(I) The taxable value of that community unit only; and

2. If a community association does not provide such information as the county assessor determines to be necessary to identify each community unit in the common-interest community, any ad valorem taxes and special assessments upon real property must be assessed upon the common elements of the common-interest community, and the taxable value of the common elements is the sum of the taxable value of all the common elements of that common-interest community.

3. If the declaration for a common-interest community or, in the absence of such a declaration, the recorded deeds for the community units of a common-interest community:

(a) Provide for the allocation to the community units of, except for any minor variations because of rounding, all the interests in the common elements of the common-interest community; or

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(b) Do not provide for the allocation described in paragraph (a) but provide for the allocation to the community units of, except for any minor variations because of rounding, all the liabilities for the common expenses of the common-interest community,

Ê and the formula for allocation provided in the declaration or deeds differs from the formula for allocation set forth in sub-subparagraph (II) of subparagraph (1) of paragraph (b) of subsection 1 and sub-subparagraph (II) of subparagraph (2) of paragraph (b) of subsection 1, those sub-subparagraphs do not apply to the common-interest community, and the taxable value of the common elements of the common-interest community must be allocated to the community units in accordance with the formula for allocation provided in the declaration or deeds.

[3.] 4. The Nevada Tax Commission shall adopt such regulations as it determines to be appropriate to ensure that this section is carried out in a uniform and equal manner that does not result in the double taxation of any common elements of a common-interest community.

[4.] 5. For the purposes of this section:

(a) “Ad valorem tax” means an ad valorem tax levied by any governmental entity or political subdivision in this State on or after July 1, 2006.

(b) “Common elements” means the physical portion of a common-interest community, including, without limitation, any landscaping, swimming pools, fitness centers, community centers, maintenance and service areas, parking areas, hallways, elevators and mechanical rooms, which is:

(1) Intended for the general benefit of and potential use by all the owners of the community units and their invitees; and

(2) Owned:

(I) By the community association;

(II) By any person on behalf or for the benefit of the owners of the community units; or

(III) Jointly by the owners of the community units.

(c) “Common-interest community” means real property with respect to which a person, by virtue of his or her ownership of a community unit, is obligated to pay for any real property other than that unit. The term includes a common-interest community governed by the provisions of chapter 116 of NRS, a condominium hotel governed by the provisions of chapter 116B of NRS, a condominium project governed by the provisions of chapter 117 of NRS and any time-share project, planned unit development or other real property which is organized as a common-interest community in this State.

(d) “Community association” means an association whose membership:

(1) Consists exclusively of the owners of the community units or their elected or appointed representatives; and

(2) Is a required condition of the ownership of a community unit.

(e) “Community unit” means a physical portion of a common-interest community, other than the common elements, which is:

(1) Designated for separate ownership or occupancy; [and]

(2) Intended for:

(I) Residential use by the owner of that unit and his or her invitees; or

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ê2015 Statutes of Nevada, Page 1207 (CHAPTER 255, SB 377)ê

(II) Commercial use by the owner of that unit for the generation of revenue from any persons other than the owners of community units in that common-interest community and their invitees [.] ; and

(3) Identified by the community association as a community unit for the purpose of distributing the taxable value of the common elements to the community units pursuant to subsection 1.

(f) “Declaration” means any instrument, however denominated, that creates a common-interest community, including any amendment to an instrument.

(g) “Special assessment” means a special assessment levied by any governmental entity or political subdivision in this State on or after July 1, 2006.

Sec. 4. NRS 361.334 is hereby amended to read as follows:

361.334 As used in NRS 361.334 to 361.435, inclusive [:] , and section 1 of this act:

1. The term “property” includes a leasehold interest, possessory interest, beneficial interest or beneficial use of a lessee or user of property which is taxable pursuant to NRS 361.157 or 361.159.

2. Where the term “property” is read to mean a taxable leasehold interest, possessory interest, beneficial interest or beneficial use of a lessee or user of property, the term “owner” used in conjunction therewith must be interpreted to mean the lessee or user of the property.

Sec. 5. This act becomes effective on July 1, 2015.

________

CHAPTER 256, SB 384

Senate Bill No. 384–Senator Kieckhefer

CHAPTER 256

[Approved: May 27, 2015]

AN ACT relating to family trust companies; providing for the appointment of guardians for certain family members and beneficiaries; providing for the designation of representatives of beneficiaries; providing for the confidentiality of certain trust documents and communications; providing for a rebuttable presumption of good faith for the actions of certain fiduciaries; authorizing certain transactions by certain fiduciaries; revising reporting requirements for certain fiduciaries; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

Existing law provides for the regulation of family trust companies. (Chapter 669A of NRS) Section 3 of this bill authorizes a court to appoint a guardian for minors or incompetents who are family members or beneficiaries of a trust or estate represented by a family trust company. Section 4 of this bill provides for the designation of a person to represent and bind a beneficiary of a trust administered by a family trust company. Section 5 of this bill provides that newly enacted duties of fiduciaries in other titles of NRS shall not apply to family trust companies, and existing provisions only apply to the extent they are not incompatible with existing law governing family trusts or any terms of the trust. Section 6 of this bill provides for the liberal construction of provisions relating to family trust companies to give maximum effect to the intent of the trust settlor. Section 7 of this bill allows a family trust company to petition a court to seal certain trust documents in a court proceeding to protect their confidentiality.

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ê2015 Statutes of Nevada, Page 1208 (CHAPTER 256, SB 384)ê

petition a court to seal certain trust documents in a court proceeding to protect their confidentiality. Section 8 of this bill provides that the communications between an attorney and a family trust company are confidential and provides for the disclosure of those communications under certain circumstances. Section 10 of this bill provides that a licensed family trust company is subject to the supervision of the Commissioner of Financial Institutions. Section 11 of this bill provides that a family trust company enjoys a rebuttable presumption of good faith in their transactions and dealings. Section 13 of this bill provides that certain transactions by a family trust company shall be presumed to not be conflicts of interest. Finally, section 14 of this bill revises certain reporting requirements for family trust companies.

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

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 669A of NRS is hereby amended by adding thereto the provisions set forth as sections 1.5 to 8, inclusive, of this act.

Sec. 1.5. “Beneficiary” has the meaning ascribed to it in NRS 132.050.

Sec. 2. “Fiduciary” means:

1. A person described in NRS 132.145;

2. A person described in NRS 163.554;

3. An excluded fiduciary as defined in NRS 163.5539; and

4. A trust protector as defined in NRS 163.5547,

Ê who may not be acting as a fiduciary under the terms of the trust instrument or will.

Sec. 3. Any court of competent jurisdiction may appoint a guardian of the estate or guardian ad litem for incompetents or minors who are not residents of this State and who are family members or beneficiaries of a trust or an estate for which a family trust company or licensed family trust company administers the trust or estate in this State.

Sec. 4. 1. Except as otherwise provided in subsections 2 and 3, if specifically nominated in the trust instrument, one or more persons may be designated to represent and bind a beneficiary of a trust administered by a family trust company or licensed family trust company and to receive any notice, information, accounting or report regarding the trust. The trust instrument may also authorize any person or persons, other than a trustee, to designate one or more persons to represent and bind a beneficiary and to receive any notice, information, accounting or report.

2. A person designated to represent and bind a beneficiary of a trust, as provided in subsection 1, may not represent and bind a beneficiary while that person is serving as a trustee of that trust.

3. Notwithstanding any provision of law to the contrary, a person designated to represent and bind a beneficiary of a trust, as provided in subsection 1, may not represent and bind a beneficiary if that person is also a beneficiary, unless that person is:

(a) Specifically nominated in the trust instrument;

(b) The beneficiary’s spouse; or

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ê2015 Statutes of Nevada, Page 1209 (CHAPTER 256, SB 384)ê

4. A person designated to represent and bind a beneficiary of a trust, as provided in subsection 1, is not liable to that beneficiary or his or her agent or successor for any acts or omissions made in good faith.

Sec. 5. 1. Except as otherwise specified in the trust or in this chapter, a family trust company or licensed family trust company shall comply with the provisions of NRS 165.147.

2. Any fiduciary duties required pursuant to title 12 or 13 of NRS after October 1, 2015, apply only to a trust or estate administered by a family trust company or licensed family trust company in this State which was created, commenced or became irrevocable after the enactment of such duties. Such duties shall only apply to the extent that they are not inconsistent or contrary with any provision of this chapter or any terms of the trust.

Sec. 6. The rule that statutes in derogation of the common law are to be strictly construed has no application to this chapter. This chapter must be liberally construed to give maximum effect to the principle of freedom of disposition and to the enforceability of trust instruments. This chapter will control over any contrary provisions of law.

Sec. 7. 1. In any court proceeding relating to a trust or estate, the family trust company, licensed family trust company, other fiduciary of the trust, settlor or any beneficiary, may petition the court to order the following trust documents to be sealed:

(a) Any trust instruments;

(b) Any inventories;

(d) Any statements filed by a fiduciary;

(e) Any annual reports of a fiduciary;

(f) Any final reports of a fiduciary;

(g) All petitions, exhibits, objections, pleadings and motions relevant to the trust or its administration; and

(h) All court orders.

2. Any documents sealed by a court pursuant to subsection 1 may not be made part of the public record but are available to the court, any fiduciary of the trust, the beneficiaries or settlor of the trust or their attorneys, and to other interested parties as the court may order upon a showing of good cause.

Sec. 8. 1. Any communication between an attorney and a family trust company or licensed family trust company acting as a fiduciary is privileged and protected from disclosure to the same extent as if the client were acting in his or her individual capacity.

2. The privilege is not waived by:

(a) A fiduciary relationship between the family trust company or licensed family trust company and a beneficiary of a trust; or

(b) The use of trust property to compensate the attorney for legal services rendered to the family trust company or licensed family trust company as a fiduciary.

3. The attorney-client relationship between an attorney and a family trust company or licensed family trust company acting as a fiduciary shall not extend to a successor fiduciary to the family trust company or licensed family trust company.

4. A family trust company or licensed family trust company acting as a fiduciary and its successor fiduciary may, pursuant to an agreement, share privileged communications relating to the trust or estate.

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ê2015 Statutes of Nevada, Page 1210 (CHAPTER 256, SB 384)ê

share privileged communications relating to the trust or estate. The disclosure of privileged communications under the agreement does not waive the disclosing party’s privilege. Unless otherwise specified in the agreement, privileged communications disclosed under the agreement shall not be disclosed to a third party without the disclosing party’s consent.

5. This section does not abridge, limit, impair, create, enlarge or otherwise affect the law governing exceptions to the attorney-client privilege relative to a claimant through the same deceased person.

Sec. 9. NRS 669A.020 is hereby amended to read as follows:

669A.020 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 669A.030 to 669A.090, inclusive, and sections 1.5 and 2 of this act have the meanings ascribed to them in those sections.

Sec. 10. NRS 669A.110 is hereby amended to read as follows:

669A.110 A family trust company:

1. Is not required to be licensed pursuant to this chapter or chapter 669 of NRS.

2. May apply for a license as:

(a) A trust company pursuant to chapter 669 of NRS; or

(b) A licensed family trust company pursuant to this chapter.

3. Is subject to the supervision of the Commissioner under this chapter if licensed as a licensed family trust company pursuant to this chapter.

Sec. 11. NRS 669A.135 is hereby amended to read as follows:

669A.135 Notwithstanding the provisions of any law to the contrary, a family trust company or licensed family trust company, or an employee or agent of a family trust company or licensed family trust company, is not liable to an interested person for any transaction, decision to act or decision to not act if the family trust company or licensed family trust company or employee or agent thereof acted in good faith and in reasonable reliance on the express terms of a trust instrument, a written consent , [agreement or] a court order [.] , a nonjudicial settlement agreement or a written waiver contained in a trust instrument or in a separate written instrument such as a waiver of any duty to diversify. Good faith shall be presumed unless rebutted by clear and convincing evidence to the contrary.

Sec. 12. NRS 669A.220 is hereby amended to read as follows:

669A.220 1. A family trust company may, but only for family members:

(a) Act as a fiduciary [, including as a personal representative,] within and outside this State [.] as permitted by law and as consistent with the trust or will.

(b) Act within and outside this State as advisory agent, agent, assignee, assignee for the benefit of creditors, attorney-in-fact, authenticating agent, bailee, bond or indenture trustee, conservator, conversion agent, curator, custodian, escrow agent, exchange agent, fiscal or paying agent, financial advisor, investment advisor, investment manager, managing agent, purchase agent, receiver, registrar, safekeeping agent, subscription agent, transfer agent except for public companies, warrant agent, or in similar capacities generally performed by corporate trustees, and in so acting to possess, purchase, sell, invest, reinvest, safekeep or otherwise manage or administer real or personal property of other persons.

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ê2015 Statutes of Nevada, Page 1211 (CHAPTER 256, SB 384)ê

(c) Exercise the powers of a business corporation or a limited-liability company organized or qualified as a foreign corporation or a limited-liability company under the laws of this State and any incidental powers that are reasonably necessary to enable it to fully exercise, in accordance with commonly accepted customs and usages, a power conferred in this chapter.

(d) Do and perform all acts necessary or incidental to exercise the powers enumerated in this section or authorized by this chapter and any other applicable laws of this State.

2. A family trust company shall not engage in any:

(a) Banking with the public; or

(b) Trust company business with the public unless licensed pursuant to chapter 669 of NRS.

Sec. 13. NRS 669A.225 is hereby amended to read as follows:

669A.225 1. In addition to the transactions authorized by NRS 669A.230 and notwithstanding the provisions of any other law to the contrary, while acting as the fiduciary of a trust, a family trust company or licensed family trust company may:

(a) Invest in a security of an investment company or investment trust for which the family trust company or licensed family trust company, or a family affiliate, provides services in a capacity other than as a fiduciary;

(b) Place a security transaction using a broker that is a family affiliate;

(c) Invest in an investment contract that is purchased from an insurance company or carrier owned by or affiliated with the family trust company or licensed family trust company, or a family affiliate;

(d) Enter into an agreement with a beneficiary or grantor of a trust with respect to the appointment or compensation of the fiduciary or a family affiliate;

(e) Transact with another trust, estate, guardianship or conservatorship for which the family trust company or licensed family trust company is a fiduciary or in which a beneficiary has an interest;

(f) Make an equity investment in a closely held entity that may or may not be marketable and that is owned or controlled, either directly or indirectly, by one or more beneficiaries, family members or family affiliates;

(g) Deposit trust money in a financial institution that is owned or operated by a family affiliate;

(h) Delegate the authority to conduct any transaction or action pursuant to this section to an agent of the family trust company or licensed family trust company, or a family affiliate;

(i) Purchase, sell, hold, own or invest in any security, bond, real or personal property, stock or other asset of a family affiliate;

(j) Loan money to , [or] borrow money from [:] or guaranty indebtedness on behalf of:

(1) A family member of the trust or his or her legal representative;

(2) Another trust managed by the family trust company or licensed family trust company; or

(3) A family affiliate;

(k) Act as proxy in voting any shares of stock which are assets of the trust;

(l) Exercise any powers of control with respect to any interest in a company that is an asset of the trust, including, without limitation, the appointment of officers or directors who are family affiliates; and

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ê2015 Statutes of Nevada, Page 1212 (CHAPTER 256, SB 384)ê

(m) Receive reasonable compensation for its services or the services of a family affiliate.

2. A transaction or action authorized pursuant to subsection 1 must:

(a) Be for a fair price, if applicable;

(b) Be in the interest of the beneficiaries; and

(1) The terms of the trust instrument establishing the fiduciary relationship;

(2) A judgment, decree or court order;

(3) The written consent of each interested person; or

(4) A notice of proposed action issued pursuant to NRS 164.725.

3. Except as otherwise provided in subsection 2, nothing in this section prohibits a family trust company or licensed family trust company from transacting business with or investing in any asset of:

(a) A trust, estate, guardianship or conservatorship for which the family trust company or licensed family trust company is a fiduciary;

(b) A family affiliate; or

4. A conflict of interest between the fiduciary duty and personal interest of a family trust company or licensed family trust company does not void a transaction or action that:

(a) Complies with the provisions of this section; or

(b) Occurred before the family trust company or licensed family trust company entered into a fiduciary relationship pursuant to a trust instrument.

5. A transaction by or action of a family trust company or licensed family trust company authorized by this section is not voidable if:

(a) The transaction or action was authorized by the terms of the trust;

(b) The transaction or action was approved by a court or pursuant to a court order;

(d) The transaction or action was authorized by a valid consent agreement, release or pursuant to the issuance of a notice of proposed action issued pursuant to NRS 164.725; or

(e) The transaction or action occurred before the family trust company or licensed family trust company entered into a fiduciary relationship pursuant to a trust instrument.

6. A legal action by an interested person alleging that a transaction or action by a family trust company or licensed family trust company is voidable because of the existence of a conflict of interest must be commenced within 1 year after the date on which the interested person discovered, or by the exercise of due diligence should have discovered, the facts in support of his or her claim.

7. Notwithstanding the provisions of any other law to the contrary, a family trust company or licensed family trust company is not required to obtain court approval for any transaction that otherwise complies with the provisions of this section.

8. Notwithstanding the provisions of any other law to the contrary, any transaction between a family trust company or a licensed family trust company and a beneficiary of a trust or the spouse or family member of a beneficiary shall not be presumed to be a conflict of interest or a violation of fiduciary duty.

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ê2015 Statutes of Nevada, Page 1213 (CHAPTER 256, SB 384)ê

company and a beneficiary of a trust or the spouse or family member of a beneficiary shall not be presumed to be a conflict of interest or a violation of fiduciary duty.

Sec. 14. NRS 669A.255 is hereby amended to read as follows:

669A.255 1. Except as otherwise provided in subsection 4, a family trust company or licensed family trust company, while acting as the fiduciary of a trust, shall provide an annual report to each [interested person] beneficiary who is entitled to an account under the terms of the trust or applicable law for each year of the existence of the trust until the trust is terminated, at which time the family trust company shall provide to each [interested person] such beneficiary a final report. The annual report or final report may be in the form of a report as described in subsection 2 or 6, an account as provided in chapter 165 of NRS or any other law applicable to the trust. An annual report or final report provided pursuant to this section is deemed to be an account for the purposes of chapter 165 of NRS.

2. A report that is provided pursuant to this section must, for the year immediately preceding the report, provide an accounting of:

(a) Each asset and liability of the trust and its current market value or amount, if known;

(b) Each disbursement of income or principal, including the amount of the disbursement and to whom the disbursement was made;

(c) All payments of compensation from any source to the family trust company or licensed family trust company or any other person for services rendered; and

(d) Any other transaction involving an asset of the trust.

3. [An interested person] A beneficiary who is entitled to a report pursuant to this section may waive his or her right to the report by submitting a written waiver to the family trust company or licensed family trust company. [An interested person] Any beneficiary who waives his or her right to a report may withdraw the waiver by submitting to the family trust company or licensed family trust company a written request for a report.

4. A family trust company or licensed family trust company is not required to provide a report pursuant to this section if the terms of the trust provide [an exception to this requirement.] otherwise.

5. A family trust company or licensed family trust company may require [an interested person] a beneficiary who is entitled to receive confidential information pursuant to this section to execute a confidentiality agreement before providing the person with any confidential information.

6. In lieu of the information that a trustee is required to provide to [an interested person] a beneficiary pursuant to subsection 2, a trustee may provide to [an interested person] a beneficiary a statement indicating the accounting period and a financial report of the trust which is prepared by a certified public accountant and which summarizes the information required by paragraphs (a) to (d), inclusive, of subsection 2. Upon request, the trustee shall make all the information used in the preparation of the [financial] annual or final report available to each [interested person] beneficiary who was provided a copy of the financial report pursuant to this subsection.

7. For the purposes of this chapter, information provided by a trustee to [an interested person] a beneficiary pursuant to subsection 6 is deemed an annual report.

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ê2015 Statutes of Nevada, Page 1214 (CHAPTER 256, SB 384)ê

8. A trustee may provide an annual report to [an interested person] a beneficiary via electronic mail or through a secure Internet website.

9. Notwithstanding the provisions of any other law to the contrary, any beneficiary of a trust administered by a family trust company or licensed family trust company not otherwise entitled to receive an account or annual report under the terms of the trust or applicable law shall have no right to demand an account or annual report of the trust.

10. A family trust company or licensed family trust company acting as trustee shall allocate to income the portion of compensation to the trustee and any person providing investment or custodial services to the trustee as determined by the family trust company or licensed family trust company, except as otherwise provided in:

(a) NRS 164.800;

(b) The trust;

(d) A nonjudicial settlement agreement; or

(e) A notice of proposed action.

Sec. 15. This act becomes effective upon passage and approval.

________

CHAPTER 257, SB 389

Senate Bill No. 389–Senator Ford

CHAPTER 257

[Approved: May 27, 2015]

AN ACT relating to condominium hotels; incorporating certain amendments to the Uniform Common-Interest Ownership Act into the Condominium Hotel Act; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

Existing law relating to condominium hotels is based on the Uniform Common-Interest Ownership Act (UCIOA), which was proposed by the Uniform Law Commission (ULC). (Chapter 116B of NRS) This bill incorporates into the provisions of existing law relating to condominium hotels certain amendments to the UCIOA which have been proposed by the ULC.

Sections 2, 27 and 28 of this bill prescribe the manner in which a unit-owners’ association must provide notice of meetings of the units’ owners and of the executive board and any other notice required to be given by an association other than notices relating to the foreclosure of a lien on a unit held by the association.

Existing law provides that other principles of law, including, without limitation, the law of corporations and the law of unincorporated associations, supplement the existing law relating to condominium hotels. (NRS 116B.260) Section 11 of this bill provides that the laws governing any other forms of organization authorized in this State supplement the existing laws relating to condominium hotels.

Sections 13-18 of this bill adopt the language of certain amendments to the UCIOA relating to the creation, alteration and termination of condominium hotels. Section 14 sets forth the required contents of a declaration for a condominium hotel. Section 16 provides that a plat is a part of the declaration and sets out the requirements for a plat. Section 18 amends the requirements for the termination of a condominium hotel.

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ê2015 Statutes of Nevada, Page 1215 (CHAPTER 257, SB 389)ê

Sections 19-39 of this bill enact certain amendments to the UCIOA which relate to the governance of condominium hotels. Section 21 provides that officers of the association and members of the executive board are subject to the conflict of interest rules which govern officers and directors of nonprofit corporations organized under the laws of this State. Section 23 authorizes a declarant to end the period of declarant’s control by: (1) giving notice to the units’ owners; and (2) recording an instrument stating that the declarant surrenders all rights to control activities of the association. Section 24 amends provisions relating to the removal of members of the executive board. Section 29 amends requirements for determining whether a quorum is present at a meeting of the units’ owners or a meeting of the executive board to provide that a majority of the voters on the executive board must be present at the time a vote is taken rather than at the beginning of the meeting. Section 30 authorizes the units’ owners to vote by absentee ballot at a meeting of the units’ owners and authorizes an association to conduct a vote without a meeting. Section 31 provides that a unit’s owner is not liable, by reason of being a unit’s owner, for injuries or damages arising out of the condition or use of the common elements. Section 32 requires an association to obtain crime insurance and also requires the association to maintain property, liability and crime insurance subject to reasonable deductibles. Section 34 amends provisions relating to common expenses caused by a unit’s owner, a tenant or an invitee of a unit’s owner or tenant. Section 35 authorizes a court to appoint a receiver when an association brings an action to foreclose a lien or collect assessments. Section 39 amends provisions relating to the books and records of an association and the inspection of such books and records by the units’ owners.

Sections 41-44 of this bill enact certain amendments to provisions which relate to the disclosures provided to purchasers of real estate located in a condominium hotel. Section 41 amends the information required to be included in the public offering statement provided to an initial purchaser of a unit.

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

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 116B of NRS is hereby amended by adding thereto the provisions set forth as sections 2, 3 and 4 of this act.

Sec. 2. 1. Except as otherwise provided in subsection 3, an association or a hotel unit owner, as applicable, shall deliver any notice required to be given by the association or the hotel unit owner under this chapter to any mailing or electronic mail address a unit’s owner designates. Except as otherwise provided in subsection 3, if a unit’s owner has not designated a mailing or electronic mail address to which a notice must be delivered, the association or hotel unit owner may deliver notices by:

(a) Hand delivery to the unit’s owner;

(b) Hand delivery, United States mail, postage paid, or commercially reasonable delivery service to the mailing address of the unit of the unit’s owner; or

2. The ineffectiveness of a good faith effort to deliver notice by an authorized means does not invalidate action taken at or without a meeting.

3. The provisions of this section do not apply:

(a) To a notice required to be given pursuant to NRS 116B.630 to 116B.665, inclusive; or

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ê2015 Statutes of Nevada, Page 1216 (CHAPTER 257, SB 389)ê

(b) If any other provision of this chapter specifies the manner in which a notice must be given by an association or hotel unit owner.

Sec. 3. This chapter modifies, limits and supersedes the federal Electronic Signatures in Global and National Commerce Act, 15 U.S.C. §§ 7001 et seq., but does not modify, limit or supersede section 101(c) of that Act, 15 U.S.C. § 7001(c), or authorize electronic delivery of any of the notices described in section 103(b) of that Act, 15 U.S.C. § 7003(b).

Sec. 4. 1. Except as otherwise provided in subsection 2, an association, a member of the executive board or a community manager shall deposit or invest all funds of the association at a financial institution which:

(a) Is located in this State;

(b) Is qualified to conduct business in this State; or

(c) Has consented to be subject to the jurisdiction, including the power to subpoena, of the courts of this State and the Division.

2. Except as otherwise provided by the governing documents, in addition to the requirements of subsection 1, an association shall deposit, maintain and invest all funds of the association:

(a) In a financial institution whose accounts are insured by the Federal Deposit Insurance Corporation, the National Credit Union Share Insurance Fund or the Securities Investor Protection Corporation;

(b) With a private insurer approved pursuant to NRS 678.755; or

3. The Commission shall adopt regulations prescribing the contents of the declaration to be executed and signed by a financial institution located outside of this State to submit to consent to the jurisdiction of the courts of this State and the Division.

Sec. 5. NRS 116B.020 is hereby amended to read as follows:

116B.020 [1.] “Affiliate of a declarant” means any person who controls, is controlled by or is under common control with a declarant.

[2.] For the purposes of this section:

1. A person “controls” a declarant if the person:

(a) Is a general partner, officer, director or employer of the declarant;

(b) Directly or indirectly or acting in concert with one or more other persons, or through one or more subsidiaries, owns, controls, holds with power to vote or holds proxies representing, more than 20 percent of the voting interest in the declarant;

(d) Has contributed more than 20 percent of the capital of the declarant.

[3.] 2. A person [“is] is controlled [by”] by a declarant if the declarant:

(a) Is a general partner, officer, director or employer of the person;

(d) Has contributed more than 20 percent of the capital of the person.

[4.] 3. Control does not exist if the powers described in this section are held solely as security for an obligation and are not exercised.

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Sec. 6. NRS 116B.075 is hereby amended to read as follows:

116B.075 “Declarant” means any person or group of persons acting in concert who, as part of a common promotional plan, offers to dispose of [his or her or its] the interest of the person or group of persons in a unit not previously disposed of, or reserves or succeeds to any special declarant’s rights.

Sec. 7. NRS 116B.085 is hereby amended to read as follows:

116B.085 “Developmental rights” means any right or combination of rights reserved by a declarant in the declaration to:

1. Add real estate to a condominium hotel;

2. Create residential units, common elements, limited common elements, shared components or a hotel unit within a condominium hotel;

3. Subdivide residential units or convert residential units into common elements, shared components or part of a hotel unit;

4. Subdivide a hotel unit or convert a hotel unit into residential units, common elements or shared components;

5. Subdivide shared components or convert shared components into residential units, common elements or part of a hotel unit;

6. Subdivide or convert common elements into residential units, shared components or part of a hotel unit; or

[5.] 7. Withdraw real estate from a condominium hotel.

Sec. 8. NRS 116B.100 is hereby amended to read as follows:

116B.100 “Executive board” means the body, regardless of name, designated in the declaration or bylaws to act on behalf of the association.

Sec. 9. NRS 116B.190 is hereby amended to read as follows:

116B.190 “Purchaser” means a person, other than a declarant, who by means of a voluntary transfer acquires a legal or equitable interest in a unit other than [a] :

1. A leasehold interest, including options to renew, of less than 20 years [, or as] ; or

2. As security for an obligation.

Sec. 10. NRS 116B.195 is hereby amended to read as follows:

116B.195 “Real estate” means any leasehold or other estate or interest in, over or under land, including structures, fixtures and other improvements and interests that by custom, usage or law pass with a conveyance of land though not described in the contract of sale or instrument of conveyance. [“Real estate”] The term includes parcels with or without upper or lower boundaries, and spaces that may be filled with air or water.

Sec. 11. NRS 116B.260 is hereby amended to read as follows:

116B.260 The principles of law and equity, including the law of corporations [,] and any other form of organization authorized by the laws of this State, the law of unincorporated associations, the law of real property, and the law relative to capacity to contract, principal and agent, eminent domain, estoppel, fraud, misrepresentation, duress, coercion, mistake, receivership, substantial performance, or other validating or invalidating cause supplement the provisions of this chapter, except to the extent inconsistent with this chapter.

Sec. 12. NRS 116B.285 is hereby amended to read as follows:

116B.285 [1.] The remedies provided by this chapter must be liberally administered to the end that the aggrieved party is put in as good a position as if the other party had fully performed.

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position as if the other party had fully performed. Consequential, special or punitive damages may not be awarded except as specifically provided in this chapter or by other rule of law.

[2. Any right or obligation declared by this chapter is enforceable by judicial proceeding.]

Sec. 13. NRS 116B.320 is hereby amended to read as follows:

116B.320 1. The inclusion in a governing document of a provision that violates any provision of this chapter does not render any other provisions of the governing document invalid or otherwise unenforceable if the other provisions can be given effect in accordance with their original intent and the provisions of this chapter.

2. The rule against perpetuities and NRS 111.103 to 111.1039, inclusive, do not apply to defeat any provision of the declaration, bylaws, rules or regulations adopted pursuant to NRS 116B.420.

3. [In the event of] If a conflict exists between [the provisions of] the declaration and the bylaws, the declaration prevails except to the extent the declaration is inconsistent with this chapter.

4. Title to any portion of a condominium hotel is not rendered unmarketable or otherwise affected by reason of an insubstantial failure of the declaration to comply with this chapter. Whether a substantial failure impairs marketability is not affected by this chapter.

Sec. 14. NRS 116B.330 is hereby amended to read as follows:

116B.330 1. The declaration for a condominium hotel must contain:

(a) The names of the condominium hotel and the association.

(b) The name of every county in which any part of the condominium hotel is situated.

(d) A statement of the maximum number of units that the declarant reserves the right to create.

(e) A description of the boundaries of each residential unit created by the declaration, including the unit’s identifying number, its size or number of rooms, and its location within a building if it is within a building containing more than one unit.

(f) A description of the shared components, hotel unit and the common elements.

(g) A description of any limited common elements.

(h) A description of any developmental rights and other special declarant’s rights reserved by the declarant, together with a legally sufficient description of the real estate to which each of those rights applies, and a time limit within which each of those rights must be exercised.

(i) If any developmental right may be exercised with respect to different parcels of real estate at different times, a statement to that effect together with:

(1) Either a statement fixing the boundaries of those portions and regulating the order in which those portions may be subjected to the exercise of each developmental right or a statement that no assurances are made in those regards; and

(2) A statement whether, if any developmental right is exercised in any portion of the real estate subject to that developmental right, that developmental right must be exercised in all or in any other portion of the remainder of that real estate.

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(j) Any other conditions or limitations under which the rights described in paragraph (h) may be exercised or will lapse.

(k) A description of any easements benefiting or burdening the units, including easements providing the residential unit owners with rights of ingress or egress through the common elements, hotel unit or shared components for the purpose of accessing their respective units.

(l) An allocation to the units of the allocated interests as described in this chapter, and an allocation to the residential units of their respective liability for shared expenses and other charges of the hotel unit owner.

(m) A description of any other payments, fees and charges that may be charged by the hotel unit owner in order to offset the increased burden placed on the shared components as the result of use of residential units as transient rentals.

(n) Any restrictions:

(1) On use, occupancy and alienation of the units; and

(2) On the amount for which a unit may be sold or on the amount that may be received by a unit’s owner on sale, condemnation or casualty to the unit or to the condominium hotel, or on termination of the condominium hotel.

(o) The file number and book or other information [to show where] for recorded easements and licenses [are recorded] appurtenant to or included in the condominium hotel or to which any portion of the condominium hotel is or may become subject by virtue of a reservation in the declaration.

2. The declaration may contain any other matters the declarant considers appropriate.

Sec. 15. NRS 116B.335 is hereby amended to read as follows:

116B.335 1. Any lease the expiration or termination of which may terminate the condominium hotel or reduce its size must be recorded. Every lessor of such a lease in a condominium hotel shall sign the declaration. The declaration must state:

(a) The recording [date where] data for the lease [is] or a statement where the recorded [.] lease may be inspected.

(b) The date on which the lease is scheduled to expire.

(d) Any right of the units’ owners to redeem the reversion and the manner whereby those rights may be exercised, or a statement that they do not have those rights.

(e) Any right of the units’ owners to remove any improvements within a reasonable time after the expiration or termination of the lease, or a statement that they do not have those rights.

(f) Any rights of the units’ owners to renew the lease and the conditions of any renewal, or a statement that such rights do not exist.

2. After the declaration for a leasehold condominium hotel is recorded, neither the lessor nor the lessor’s successor in interest may terminate the leasehold interest of a unit’s owner who makes timely payment of his or her share of the rent and otherwise complies with all covenants which, if violated, would entitle the lessor to terminate the lease. The leasehold interest of a unit’s owner in a condominium hotel is not affected by failure of any other person to pay rent or fulfill any other covenant.

3. Acquisition of the leasehold interest of any unit’s owner by the owner of the reversion or remainder does not merge the leasehold and freehold interests unless the leasehold interests of all units’ owners subject to that reversion or remainder are acquired.

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freehold interests unless the leasehold interests of all units’ owners subject to that reversion or remainder are acquired.

4. If the expiration or termination of a lease decreases the number of units in a condominium hotel, the allocated interests must be reallocated in accordance with subsection 1 of NRS 116B.255 as if those units had been taken by eminent domain. Reallocations must be confirmed by an amendment to the declaration prepared, executed and recorded by the association.

Sec. 16. NRS 116B.350 is hereby amended to read as follows:

116B.350 1. Plats are a part of the declaration and are required for all condominium hotels. Each plat must be clear and legible and contain a certification that the plat contains all information required by this section.

2. Each plat must comply with the provisions of chapter 278 of NRS and show:

(a) The name and a survey of the area which is the subject of the plat;

(b) A sufficient description of the real estate;

(d) The location and dimensions of all easements having a specific location and dimension which serve or burden any portion of the condominium hotel;

(e) The location and dimensions with reference to an established datum of any vertical residential unit boundaries and that unit’s identifying number;

(f) The location with reference to an established datum of any horizontal unit boundaries not shown or projected on plats recorded pursuant to subsection 4 and that unit’s identifying number;

(g) The location and dimensions of the units, shared components and common elements; and

(h) The location and dimensions of limited common elements, if any, including porches, balconies and patios.

3. Each plat must be certified by a professional land surveyor.

4. The plats must show or project any units in which the declarant has reserved the right to create additional units or common elements, or portions of the shared components or hotel unit, identified appropriately.

5. Unless the declaration provides otherwise, when the horizontal boundaries of part of a unit located outside a building have the same elevation as the horizontal boundaries of the inside part, the elevations need not be depicted on the plats.

6. Upon exercising any developmental right, the declarant shall [prepare, execute and] record new or amended plats necessary to conform to the requirements of [this section.] subsection 2.

Sec. 17. NRS 116B.375 is hereby amended to read as follows:

116B.375 1. If the declaration expressly so permits, a residential unit may be subdivided into two or more residential units upon receipt of consent from the hotel unit owner. Subject to [the provisions of] the declaration and [other provisions of] law [,] other than this chapter, upon receipt of consent from the hotel unit owner to subdivide a residential unit, the association shall prepare, execute and record an amendment to the declaration [.] , including the plats, subdividing the residential unit.

2. The amendment to the declaration must be executed by the owner of the unit to be subdivided, assign an identifying number to each residential unit created, and reallocate the allocated interests and allocated liability for shared expenses formerly allocated to the subdivided residential unit to the new residential units in any reasonable manner prescribed by the owner of the subdivided unit [.]

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shared expenses formerly allocated to the subdivided residential unit to the new residential units in any reasonable manner prescribed by the owner of the subdivided unit [.] or on any other basis the declaration requires.

Sec. 18. NRS 116B.385 is hereby amended to read as follows:

116B.385 1. Except in the case of a taking of the condominium hotel by eminent domain, termination of the condominium hotel or the declaration requires approval by:

(a) The owners representing at least 80 percent of the votes in the association allocated to the residential unit owners; and

(b) The hotel unit owner.

2. An agreement to terminate the condominium hotel or the declaration must be evidenced by the execution of an agreement to terminate in the same manner as a deed by the hotel unit owner and the requisite number of units’ owners. The agreement to terminate must specify a date after which the agreement will be void unless it is recorded before that date.

3. An agreement to terminate may provide that all of the common elements, shared components or units must be sold following termination. If, pursuant to the agreement, any real estate in the condominium hotel is to be sold following termination, the agreement must set forth the minimum terms of the sale.

4. The hotel unit owner, on behalf of the units’ owners, may contract for the sale of real estate owned by the units’ owners in a condominium hotel, but the contract is not binding on the units’ owners and the declarant or hotel unit owner, as applicable, until approved pursuant to subsections 1 and 2. If any real estate owned by the units’ owners is to be sold following termination, title to that real estate, upon termination, vests in the hotel unit owner as trustee for the holders of all interests in the units. Thereafter, the hotel unit owner has all powers necessary and appropriate to effect the sale. Until the sale has been concluded and the proceeds thereof distributed, the hotel unit owner continues in existence with all powers it had before termination. Proceeds of the sale must be distributed to units’ owners and lienholders as their interests may appear, in accordance with NRS 116B.390 and 116B.395. Unless otherwise specified in the agreement to terminate, as long as the unit’s owner holds title to the real estate, each unit’s owner and his or her successors in interest have an exclusive right to occupancy of the portion of the real estate that formerly constituted such unit’s owner’s unit. During the period of that occupancy, each unit’s owner and his or her successors in interest remain liable for all assessments, shared expenses and other obligations imposed on units’ owners by this chapter or the declaration.

5. If the real estate is not to be sold following termination, title to the common elements and residential units vests in the units’ owners upon termination as tenants in common in proportion to their respective interests in the association as provided in NRS 116B.395, and liens on the units shift accordingly. While the tenancy in common exists, each unit’s owner and his or her successors in interest have an exclusive right to occupancy of the portion of the real estate that formerly constituted such unit’s owner’s unit.

6. Following termination of the condominium hotel, the proceeds of [any] a sale of real estate, together with the assets of the association, are held by the hotel unit owner as trustee for units’ owners and holders of liens on the units as their interests may appear.

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Sec. 19. NRS 116B.415 is hereby amended to read as follows:

116B.415 1. A unit-owners’ association must be organized not later than the date the first residential unit in the condominium hotel is conveyed.

2. The membership of the association at all times consists exclusively of all units’ owners, including the hotel unit and any other units owned by the declarant or, following termination of the condominium hotel, of all owners of former units entitled to distributions of proceeds under the declaration, or their heirs, successors or assigns.

3. The association must:

(a) Be organized as a profit or nonprofit corporation, association, limited-liability company, trust , [or] partnership [;] or any other form of organization authorized by the laws of this State;

(b) Include in its articles of incorporation, articles of association, articles of organization, certificate of registration, certificate of limited partnership, certificate of trust or other documents of organization, or any amendment thereof, that the purpose of the corporation, association, limited-liability company, trust or partnership is to operate as an association pursuant to this chapter;

(d) Comply with the provisions of chapters 78, 81, 82, 86, 87, 87A, 88 and 88A of NRS when filing with the Secretary of State its articles of incorporation, articles of association, articles of organization, certificate of registration, certificate of limited partnership, certificate of trust or other documents of organization, or any amendment thereof.

4. Unless otherwise provided in the declaration, the association shall not have any ownership or control over the hotel unit or the shared components.

Sec. 20. NRS 116B.420 is hereby amended to read as follows:

116B.420 Subject to the provisions of the declaration, the association : [may do any or all of the following:]

1. [Adopt] Shall adopt and , except as otherwise provided in the bylaws, may amend bylaws [,] and may adopt and amend rules and regulations pertaining to the common elements. Unless otherwise provided in the declaration, bylaws, rules or regulations adopted by the association must not attempt to exercise any control over the hotel unit or the shared components.

2. [Adopt] Shall adopt and may amend budgets [for revenues, expenditures and reserves relating to the common elements and] in accordance with the requirements set forth in NRS 116B.600, may collect assessments for common expenses from the units’ owners [.] and may invest funds of the association in accordance with the requirements set forth in section 4 of this act.

3. [Hire] May hire and discharge managing agents and other employees, agents and independent contractors of the association.

4. [Institute,] May institute, defend or intervene in litigation or in arbitration, mediation or administrative proceedings in its own name on behalf of itself or two or more units’ owners on matters affecting the condominium hotel.

5. [Make] May make contracts and incur liabilities with regard to the common elements.

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6. [Regulate] May regulate the use, maintenance, repair, replacement and modification of common elements.

7. [Cause] May cause additional improvements to be made as a part of the common elements.

8. [Acquire,] May acquire, hold, encumber and convey in its own name any right, title or interest to real estate or personal property, but common elements may be conveyed or subjected to a security interest only pursuant to NRS 116B.560.

9. [Grant] May grant easements, leases, licenses and concessions through or over the common elements.

10. [Impose] May impose and receive any payments, fees or charges for the use, rental or operation of the common elements.

11. [Impose] May impose charges for late payment of assessments on common elements.

12. [Impose] May impose reasonable fines for violations of the governing documents of the association only if the association complies with the requirements set forth in NRS 116B.430.

13. [Provide] May provide for the indemnification of its officers and executive board and maintain directors’ and officers’ liability insurance.

14. [Assign] May assign its right to future income, including the right to receive assessments for common expenses, but only to the extent the declaration expressly so provides.

15. [Exercise] May exercise any other powers conferred by the declaration or bylaws.

16. [Exercise] May exercise any other powers necessary and proper for the governance and operation of the association.

Sec. 21. NRS 116B.425 is hereby amended to read as follows:

116B.425 1. Except as otherwise provided in the declaration, the bylaws, this section or other provisions of this chapter, the executive board [may act] acts in all instances on behalf of the association. In the performance of their duties, the officers and members of the executive board are fiduciaries. [The] Officers and members of the executive board [are] :

(a) Are required to exercise the ordinary and reasonable care of officers and directors of a nonprofit corporation, subject to the business-judgment rule [.] ; and

(b) Are subject to conflict of interest rules governing the officers and directors of a nonprofit corporation organized under the laws of this State.

2. The executive board may not act [on behalf of the association] to [amend] :

(a) Amend the declaration . [, to terminate]

(b) Terminate the condominium hotel . [, or to elect]

(c) Elect members of the executive board [or determine their] , but unless the governing documents provide that a vacancy on the executive board must be filled by a vote of the membership of the association, the executive board may fill vacancies in its membership for the unexpired portion of any term or until the next regularly scheduled election of executive board members, whichever is earlier. Any executive board member elected to a previously vacant position which was temporarily filled by board appointment may only be elected to fulfill the remainder of the unexpired portion of the term.

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(d) Determine the qualifications, powers and duties or terms of office [, but the] of members of the executive board . [may fill vacancies in its membership for the unexpired portion of any term.]

3. The executive board shall adopt budgets as provided in NRS 116B.600.

Sec. 22. NRS 116B.430 is hereby amended to read as follows:

116B.430 1. Except as otherwise provided in this section and unless the declaration provides otherwise, if a residential unit owner or the tenant or guest of a residential unit owner violates any provision of the governing documents of an association, the executive board may, if the governing documents so provide:

(a) Prohibit, for a reasonable time, the residential unit owner or the tenant or guest of the residential unit owner from:

(1) Voting on matters related to the association.

(2) Using the common elements. The provisions of this subparagraph do not prohibit the residential unit owner or the tenant or guest of the residential unit owner from using any portion of the common elements, if any, as is necessary for vehicular or pedestrian ingress or egress to or from the residential unit.

(b) Impose a fine against the residential unit owner or the tenant or guest of the residential unit owner for each violation. If the violation poses an imminent threat of causing a substantial adverse effect on the health, safety or welfare of the residential unit owners or residents of the condominium hotel, the amount of the fine must be commensurate with the severity of the violation and must be determined by the executive board in accordance with the governing documents. If the violation does not pose an imminent threat of causing a substantial adverse effect on the health, safety or welfare of the residential unit owners or residents or guests of the condominium hotel, the amount of the fine must be commensurate with the severity of the violation and must be determined by the executive board in accordance with the governing documents, but the amount of the fine must not exceed $100 for each violation or a total amount of $1,000, whichever is less. The limitations on the amount of the fine do not apply to any interest, charges or costs that may be collected by the association pursuant to this section if the fine becomes past due.

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

(a) Not less than 30 days before the violation, the person against whom the fine will be imposed had been provided with written notice of the applicable provisions of the governing documents that form the basis of the violation; and

(b) Within a reasonable time after the discovery of the violation, the person against whom the fine will be imposed has been provided with:

(1) Written notice specifying the details of the violation, the amount of the fine, and the date, time and location for a hearing on the violation; and

(2) A reasonable opportunity to contest the violation at the hearing.

3. If the association adopts a policy imposing fines for any violations of the governing documents of the association, the secretary or other officer specified in the bylaws shall prepare and cause to be hand-delivered or sent prepaid by United States mail to the mailing address of each unit or to any other mailing address designated in writing by the unit’s owner, a schedule of the fines that may be imposed for those violations.

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4. The executive board must schedule the date, time and location for the hearing on the violation so that the person against whom the fine will be imposed is provided with a reasonable opportunity to prepare for the hearing and to be present at the hearing.

[4.] 5. The executive board must hold a hearing before it may impose the fine, unless the person against whom the fine will be imposed:

(a) Pays the fine;

(b) Executes a written waiver of the right to the hearing; or

[5.] 6. If a fine is imposed pursuant to subsection 1 and the violation is not cured within 14 days, or within any longer period that may be established by the executive board, the violation shall be deemed a continuing violation. Thereafter, the executive board may impose an additional fine for the violation for each 7-day period or portion thereof that the violation is not cured. Any additional fine may be imposed without notice and an opportunity to be heard.

[6.] 7. If the governing documents so provide, the executive board may appoint a committee, with not less than three members, to conduct hearings on violations and to impose fines pursuant to this section. While acting on behalf of the executive board for those limited purposes, the committee and its members are entitled to all privileges and immunities and are subject to all duties and requirements of the executive board and its members.

[7.] 8. The provisions of this section establish the minimum procedural requirements that the executive board must follow before it may impose a fine. The provisions of this section do not preempt any provisions of the governing documents that provide greater procedural protections.

[8.] 9. Any past due fine:

(a) Bears interest at the rate established by the association, not to exceed the legal rate per annum.

(b) May include any costs of collecting the past due fine at a rate established by the association. If the past due fine is for a violation that does not threaten the health, safety or welfare of the residents of the condominium hotel, the rate established by the association for the costs of collecting the past due fine:

(1) May not exceed $20, if the outstanding balance is less than $200.

(2) May not exceed $50, if the outstanding balance is $200 or more, but is less than $500.

(3) May not exceed $100, if the outstanding balance is $500 or more, but is less than $1,000.

(4) May not exceed $250, if the outstanding balance is $1,000 or more, but is less than $5,000.

(5) May not exceed $500, if the outstanding balance is $5,000 or more.

[9.] 10. Unless the declaration provides otherwise, nothing in this section shall be construed as giving the association the power to sanction a unit’s owner for matters related to the hotel unit or the shared components.

[10.] 11. As used in this section:

(a) “Costs of collecting” includes, without limitation, any collection fee, filing fee, recording fee, referral fee, fee for postage or delivery, and any other fee or cost that an association may reasonably charge to the unit’s owner for the collection of a past due fine.

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other fee or cost that an association may reasonably charge to the unit’s owner for the collection of a past due fine. The term does not include any costs incurred by an association during a civil action to enforce the payment of a past due fine.

(b) “Outstanding balance” means the amount of a past due fine that remains unpaid before any interest, charges for late payment or costs of collecting the past due fine are added.

Sec. 23. NRS 116B.440 is hereby amended to read as follows:

116B.440 1. Except as otherwise provided in this section, the declaration may provide for a period of declarant’s control of the association, during which a declarant, or persons designated by a declarant, may appoint and remove the officers of the association and members of the executive board. A declarant may voluntarily surrender the right to appoint and remove officers and members of the executive board before termination of that period and, in that event, the declarant may require, for the duration of the period of declarant’s control, that specified actions of the association or executive board, as described in a recorded instrument executed by the declarant, be approved by the declarant before they become effective. Regardless of the period provided in the declaration, a period of declarant’s control terminates not later than [:] the earliest of:

(a) Sixty days after conveyance of 75 percent of the residential units that may be created to residential unit owners other than a declarant;

(b) Five years after all declarants have ceased to offer residential units for sale in the ordinary course of business; [or]

Ê whichever occurs earlier.] ; or

(d) The day any declarant, after giving notice to units’ owners, records an instrument voluntarily surrendering all rights to control activities of the association.

2. [A declarant may voluntarily surrender the right to appoint and remove officers and members of the executive board before termination of that period, but in that event the declarant may require, for the duration of the period of declarant’s control, that specified actions of the association or executive board, as described in a recorded instrument executed by the declarant, be approved by the declarant before they become effective.

3.] Not later than 60 days after conveyance of 25 percent of the residential units that may be created to units’ owners other than a declarant, at least one member and not less than 25 percent of the members of the executive board must be elected by residential unit owners other than the declarant. Not later than 60 days after conveyance of 50 percent of the residential units that may be created to residential unit owners other than a declarant, not less than [33 1/3 percent] one-third of the members of the executive board must be elected by residential unit owners other than the declarant.

Sec. 24. NRS 116B.450 is hereby amended to read as follows:

116B.450 1. Notwithstanding any provision of the declaration or bylaws to the contrary, any member of the executive board, other than a member appointed by the declarant or elected by the hotel unit owner, may be removed from the executive board, with or without cause, if at a removal election held pursuant to this section, the number of votes cast in favor of removal constitutes:

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(a) At least 35 percent of the total number of voting members of the association; and

(b) At least a majority of all votes cast in that removal election.

2. A removal election may be called by units’ owners constituting at least 10 percent, or any lower percentage specified in the bylaws, of the total number of voting members of the association. To call a removal election, the units’ owners must submit a written petition which is signed by the required percentage of the total number of voting members of the association pursuant to this subsection and which is mailed, return receipt requested, or served by a process server to the executive board or the community manager for the association. If a removal election is called pursuant to this subsection and the voting rights of the units’ owners will be exercised through the use of secret written ballots pursuant to this section:

(a) The secret written ballots for the removal election must be sent in the manner required by this section not less than 15 days or more than 60 days after the date on which the petition is received; and

(b) The executive board shall set the date for the meeting to open and count the secret written ballots so that the meeting is held not more than 15 days after the deadline for returning the secret written ballots and not later than 90 days after the date on which the petition was received.

3. The removal of any member of the executive board must be conducted by secret written ballot as follows:

(a) The secretary or other officer specified in the bylaws of the association shall cause a secret ballot and a return envelope to be sent, prepaid by United States mail, to the mailing address of each unit within the condominium hotel or to any other mailing address designated in writing by the unit’s owner.

(b) Each unit’s owner must be provided with at least 15 days after the date the secret written ballot is mailed to the unit’s owner to return the secret written ballot to the association.

(d) The secret written ballots must be opened and counted at a meeting of the association. A quorum is not required to be present when the secret written ballots are opened and counted at the meeting.

(e) The incumbent members of the executive board, including, without limitation, the member who is subject to the removal, may not possess, be given access to or participate in the opening or counting of the secret written ballots that are returned to the association before those secret written ballots have been opened and counted at a meeting of the association.

[3. If a member of an executive board is named as a respondent or sued for liability for actions undertaken in his or her role as a member of the board, the association shall indemnify the member for his or her losses or claims, and undertake all costs of defense, unless it is proven that the member acted with willful or wanton misfeasance or with gross negligence. After such proof, the association is no longer liable for the cost of defense, and may recover costs already expended from the member of the executive board who so acted. Members of the executive board are not personally liable to the victims of crimes occurring on the property. Punitive damages may not be recovered against the association, but may be recovered from persons whose activity gave rise to the damages.]

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ê2015 Statutes of Nevada, Page 1228 (CHAPTER 257, SB 389)ê

Sec. 25. NRS 116B.490 is hereby amended to read as follows:

116B.490 1. The bylaws of the association must : [provide:]

(a) [The] Provide the number of members of the executive board and the titles of the officers of the association;

(b) [For] Provide for election by the executive board of a president, treasurer, secretary and any other officers of the association the bylaws specify;

(c) [The] Specify the qualifications, powers and duties, terms of office and manner of electing and removing officers of the association and members of the executive board and filling vacancies;

(d) [Which] Specify the powers [, if any, that] the executive board or the officers of the association may delegate to other persons, including a community manager;

(e) [Which of its] Specify the officers who may prepare, execute, certify and record amendments to the declaration on behalf of the association;

(f) [Procedural] Provide procedural rules for conducting meetings of the association;

(g) [A] Specify a method for [amending] the units’ owners to amend the bylaws; [and]

(h) [Procedural] Provide procedural rules for conducting elections [.] ;

(i) Contain any provision necessary to satisfy the requirements of this chapter or the declaration concerning meetings, voting, quorums and other activities of the association; and

(j) Provide for any matter required by the laws of this State, other than this chapter, to appear in the bylaws of organizations of the same type as the association.

2. Except as otherwise provided in this chapter or the declaration, the bylaws may provide for any other necessary or appropriate matters [the association deems necessary and appropriate.] , including, without limitation, matters that could be adopted as rules.

3. The bylaws must be written in plain English.

4. The bylaws must not attempt to exercise any control over the shared components or the hotel unit.

Sec. 26. NRS 116B.505 is hereby amended to read as follows:

116B.505 1. A hotel unit owner may not prohibit use of the shared components pursuant to paragraph (d) of subsection 4 of NRS 116B.340 unless:

(a) Not less than 30 days before the violation, the residential unit owner against whom the prohibition will be imposed has been provided with written notice of the applicable provisions of the rules and regulations established by the hotel unit owner that form the basis of the violation; and

(b) Within 10 days after the hotel unit owner’s discovery of the violation, the residential unit owner against whom the prohibition will be imposed has been provided with:

(1) Written notice specifying the details of the violation; and

(2) A reasonable opportunity to contest the violation.

2. Within 10 days after receiving the written notice specifying the details of the violation, the residential unit owner may:

(a) Provide to the hotel unit owner any written information or any explanation relating to the violation; or

(b) Request a meeting with the hotel unit owner to present the information or explanation relating to the violation.

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ê2015 Statutes of Nevada, Page 1229 (CHAPTER 257, SB 389)ê

3. A meeting requested by a residential unit owner pursuant to subsection 2 must be held as soon as practicable, but not later than 30 days after the date on which the request for a meeting is received by the hotel unit owner. The meeting may be held in person, by telephone or by videoconferencing.

4. The provisions of this section establish the minimum procedural requirements that the hotel unit owner must follow before the hotel unit owner may prohibit use of the shared components by a residential unit owner. The provisions of this section do not preempt any provisions of the rules and regulations established by the hotel unit owner that provide greater procedural protections.

Sec. 27. NRS 116B.520 is hereby amended to read as follows:

116B.520 1. A meeting of the units’ owners must be held:

(a) As required by the declaration; and

(b) At least once each year.

2. Special meetings of the units’ owners may be called by the president, by a majority of the executive board or by units’ owners constituting at least 10 percent, or any lower percentage specified in the bylaws, of the total number of voting members of the association. The same number of units’ owners may also call a removal election pursuant to NRS 116B.450. To call a special meeting or a removal election, the units’ owners must submit a written petition which is signed by the required percentage of the total number of voting members of the association pursuant to this section and which is mailed, return receipt requested, or served by a process server to the executive board for the association. If the petition calls for a special meeting, the executive board shall set the date for the special meeting so that the special meeting is held not less than 15 days or more than 60 days after the date on which the petition is received. [If the petition calls for a removal election, the secret written ballots for the removal election must be sent in the manner required by NRS 116B.450 not less than 15 days or more than 60 days after the date on which the petition is received, and the executive board shall set the date for the meeting to open and count the secret written ballots so that the meeting is held not more than 15 days after the deadline for returning the secret written ballots.]

3. Not less than 15 days or more than 60 days in advance of any meeting of the units’ owners, the secretary or other officer specified in the bylaws shall cause notice of the meeting to be [hand-delivered, sent prepaid by United States mail to the mailing address of each unit or to any other mailing address designated in writing by the unit’s owner or, if the association offers to send notice by electronic mail, sent by electronic mail at the request of the unit’s owner to an electronic mail address designated in writing by the unit’s owner.] given to the units’ owners in the manner set forth in section 2 of this act. The notice of the meeting must state the time and place of the meeting and include a copy of the agenda for the meeting. The notice must include notification of the right of a unit’s owner to:

(a) Have a copy of the minutes or a summary of the minutes of the meeting provided to the unit’s owner upon request and, if required by the executive board, upon payment to the association of the cost of providing the copy to the unit’s owner.

(b) Speak to the association or executive board, unless the executive board is meeting in executive session.

4. The agenda for a meeting of the units’ owners must consist of:

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(a) A clear and complete statement of the topics scheduled to be considered during the meeting, including, without limitation, any proposed amendment to the declaration or bylaws, any fees or assessments to be imposed or increased by the association, any budgetary changes and any proposal to remove an officer of the association or member of the executive board.

(b) A list describing the items on which action may be taken and clearly denoting that action may be taken on those items. In an emergency, the units’ owners may take action on an item which is not listed on the agenda as an item on which action may be taken.

(c) A period devoted to comments by units’ owners and discussion of those comments. Except in emergencies, no action may be taken upon a matter raised under this item of the agenda until the matter itself has been specifically included on an agenda as an item upon which action may be taken pursuant to paragraph (b).

5. [If the association adopts a policy imposing fines for any violations of the governing documents of the association, the secretary or other officer specified in the bylaws shall prepare and cause to be hand-delivered or sent prepaid by United States mail to the mailing address of each unit or to any other mailing address designated in writing by the unit’s owner, a schedule of the fines that may be imposed for those violations.

6.] The secretary or other officer specified in the bylaws shall cause minutes to be recorded or otherwise taken at each meeting of the units’ owners. Not more than 30 days after each such meeting, the secretary or other officer specified in the bylaws shall cause the minutes or a summary of the minutes of the meeting to be made available to the units’ owners. A copy of the minutes or a summary of the minutes must be provided to any unit’s owner upon request and, if required by the executive board, upon payment to the association of the cost of providing the copy to the unit’s owner.

[7.] 6. Except as otherwise provided in subsection [8,] 7, the minutes of each meeting of the units’ owners must include:

(a) The date, time and place of the meeting;

(b) The substance of all matters proposed, discussed or decided at the meeting; and

(c) The substance of remarks made by any unit’s owner at the meeting if the unit’s owner requests that the minutes reflect his or her remarks or, if the unit’s owner has prepared written remarks, a copy of his or her prepared remarks if the unit’s owner submits a copy for inclusion.

[8.] 7. The executive board may establish reasonable limitations on materials, remarks or other information to be included in the minutes of a meeting of the units’ owners.

[9.] 8. The association shall maintain the minutes of each meeting of the units’ owners until the condominium hotel is terminated.

[10.] 9. A unit’s owner may record on audiotape or any other means of sound reproduction a meeting of the units’ owners if the unit’s owner, before recording the meeting, provides notice of his or her intent to record the meeting to the other units’ owners who are in attendance at the meeting.

[11.] 10. The units’ owners may approve, at the annual meeting of the units’ owners, the minutes of the prior annual meeting of the units’ owners and the minutes of any prior special meetings of the units’ owners. A quorum is not required to be present when the units’ owners approve the minutes.

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ê2015 Statutes of Nevada, Page 1231 (CHAPTER 257, SB 389)ê

[12.] 11. The hotel unit owner or his or her designated agent shall attend the annual meeting of the units’ owners to present a written report concerning the status of the current year’s budget for the shared expenses and discuss any material issues that will affect the preparation of the next year’s budget for shared expenses.

[13.] 12. As used in this section, “emergency” means any occurrence or combination of occurrences that:

(a) Could not have been reasonably foreseen;

(b) Affects the health, welfare and safety of the units’ owners or residents of the condominium hotel;

(d) Makes it impracticable to comply with the provisions of subsection 3 or 4.

Sec. 28. NRS 116B.525 is hereby amended to read as follows:

116B.525 1. A meeting of the executive board must be held at least once a year.

2. Except in an emergency or unless the bylaws of an association require a longer period of notice, the secretary or other officer specified in the bylaws of the association shall, not less than 30 days before the date of a meeting of the executive board, cause notice of the meeting to be given to the units’ owners. Such notice must be:

(a) [Sent prepaid by United States mail to the mailing address of each unit within the condominium hotel or to any other mailing address designated in writing by the unit’s owner;] Given to the units’ owners in the manner set forth in section 2 of this act; or

(b) [If the association offers to send notice by electronic mail, sent by electronic mail at the request of the unit’s owner to an electronic mail address designated in writing by the] Published in a newsletter or other similar publication that is circulated to each unit’s owner.

3. In an emergency, the secretary or other officer specified in the bylaws of the association shall, if practicable, cause notice of the meeting to be sent prepaid by United States mail to the mailing address of each unit within the condominium hotel. If delivery of the notice in this manner is impracticable, the notice must be hand-delivered to each unit within the condominium hotel or posted in a prominent place or places within the common elements of the association.

4. The notice of a meeting of the executive board must state the time and place of the meeting and include a copy of the agenda for the meeting or the date on which and the locations where copies of the agenda may be conveniently obtained by the units’ owners. The notice must include notification of the right of a unit’s owner to:

(b) Speak to the association or executive board, unless the executive board is meeting in executive session.

5. The agenda of the meeting of the executive board must comply with the provisions of subsection 4 of NRS 116B.520. The period required to be devoted to comments by the units’ owners and discussion of those comments must be scheduled for the beginning of each meeting. In an emergency, the executive board may take action on an item which is not listed on the agenda as an item on which action may be taken.

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ê2015 Statutes of Nevada, Page 1232 (CHAPTER 257, SB 389)ê

executive board may take action on an item which is not listed on the agenda as an item on which action may be taken.

6. At least once every year, unless the declaration or bylaws of the association impose more stringent standards, the executive board shall review, at a minimum, the following financial information at one of its meetings:

(a) A current year-to-date financial statement of the association;

(b) A current year-to-date schedule of revenues and expenses for the operating account and the reserve account, compared to the budget for those accounts;

(d) A current reconciliation of the reserve account of the association;

(e) The latest account statements prepared by the financial institutions in which the accounts of the association are maintained; and

(f) The current status of any civil action or claim submitted to arbitration or mediation in which the association is a party.

7. The secretary or other officer specified in the bylaws shall cause minutes to be recorded or otherwise taken at each meeting of the executive board. Not more than 30 days after each such meeting, the secretary or other officer specified in the bylaws shall cause the minutes or a summary of the minutes of the meetings to be made available to the units’ owners. A copy of the minutes or a summary of the minutes must be provided to any unit’s owner upon request and, if required by the executive board, upon payment to the association of the cost of providing the copy to the unit’s owner.

8. Except as otherwise provided in subsection 9 and NRS 116B.530, the minutes of each meeting of the executive board must include:

(a) The date, time and place of the meeting;

(b) The names of those members of the executive board who were present and of those members who were absent at the meeting;

(d) A record of each member’s vote on any matter decided by vote at the meeting; and

(e) The substance of remarks made by any unit’s owner who addresses the executive board at the meeting if the unit’s owner requests that the minutes reflect his or her remarks or, if the unit’s owner has prepared written remarks, a copy of his or her prepared remarks if the unit’s owner submits a copy for inclusion.

9. The executive board may establish reasonable limitations on materials, remarks or other information to be included in the minutes of its meetings.

10. The association shall maintain the minutes of each meeting of the executive board until the condominium hotel is terminated.

11. A unit’s owner may record on audiotape or any other means of sound reproduction a meeting of the executive board, unless the executive board is meeting in executive session, if the unit’s owner, before recording the meeting, provides notice of his or her intent to record the meeting to the members of the executive board and the other units’ owners who are in attendance at the meeting.

12. As used in this section, “emergency” means any occurrence or combination of occurrences that:

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ê2015 Statutes of Nevada, Page 1233 (CHAPTER 257, SB 389)ê

(a) Could not have been reasonably foreseen;

(b) Affects the health, welfare and safety of the units’ owners or residents of the condominium hotel;

(d) Makes it impracticable to comply with the provisions of subsection 2 or 5.

Sec. 29. NRS 116B.545 is hereby amended to read as follows:

116B.545 1. Except as otherwise provided in this section and NRS 116B.445, and except when the governing documents provide otherwise, a quorum is present throughout any meeting of the [association if the number of members of] units’ owners if persons entitled to cast 20 percent of the votes in the association [who are] :

(a) Are present in person [or] ;

(b) Are present by proxy [at the beginning of the meeting equals or exceeds 20 percent of the total number of voting members of the association.] ;

(d) Are present by any combination of paragraphs (a), (b) and (c).

2. If the governing documents of an association contain a quorum requirement for a meeting of the association that is greater than the 20 percent required by subsection 1 and, after proper notice has been given for a meeting, the members of the association who are present in person or by proxy at the meeting are unable to hold the meeting because a quorum is not present at the beginning of the meeting, the members who are present in person at the meeting may adjourn the meeting to a time that is not less than 48 hours or more than 30 days after the date of the meeting. At the subsequent meeting:

(a) A quorum shall be deemed to be present if the number of members of the association who are present in person or by proxy at the beginning of the subsequent meeting equals or exceeds 20 percent of the total number of voting members of the association; and

(b) If such a quorum is deemed to be present but the actual number of members who are present in person or by proxy at the beginning of the subsequent meeting is less than the number of members who are required for a quorum under the governing documents, the members who are present in person or by proxy at the subsequent meeting may take action only on those matters that were included as items on the agenda of the original meeting.

Ê The provisions of this subsection do not change the actual number of votes that are required under the governing documents for taking action on any particular matter.

3. Unless the governing documents specify a larger [percentage,] number, a quorum of the executive board is [deemed] present [throughout any] for the purposes of determining the validity of any action taken at a meeting of the executive board only if [persons] individuals entitled to cast [50 percent] a majority of the votes on that board are present at the [beginning of the meeting.] time a vote regarding that action is taken. If a quorum is present when a vote is taken, the affirmative vote of a majority of the members present is the act of the executive board unless a greater vote is required by the declaration or bylaws.

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ê2015 Statutes of Nevada, Page 1234 (CHAPTER 257, SB 389)ê

4. Meetings of the association must be conducted in accordance with the most recent edition of Robert’s Rules of Order Newly Revised, unless the bylaws or a resolution of the executive board adopted before the meeting provide otherwise.

Sec. 30. NRS 116B.550 is hereby amended to read as follows:

116B.550 1. Unless prohibited or limited by the declaration or bylaws and except as otherwise provided in this section, the units’ owners may vote at a meeting in person, by absentee ballot pursuant to paragraph (d) of subsection 2, by a proxy pursuant to subsections 3 to 8, inclusive, or, when a vote is conducted without a meeting, by paper or electronic ballot pursuant to subsection 9.

2. At a meeting of the units’ owners, the following requirements apply:

(a) Units’ owners who are present in person may vote by voice vote, show of hands, standing or any other method for determining the votes of the units’ owners, as designated by the person presiding at the meeting.

(b) If only one of several owners of a unit is present , [at a meeting of the association,] that owner is entitled to cast all the votes allocated to that unit. If more than one of the owners are present, the votes allocated to that unit may be cast only in accordance with the agreement of a majority in interest of the owners, unless the declaration expressly provides otherwise. There is majority agreement if any one of the owners cast the votes allocated to [that] the unit without protest being made promptly to the person presiding over the meeting by any of the other owners of the unit.

[2.] (c) Unless a greater number or fraction of the votes in the association is required by this chapter or the declaration, a majority of the votes cast determines the outcome of any action of the association.

(d) Subject to the provisions of subsection 1, a unit’s owner may vote by absentee ballot without being present at the meeting. The association promptly shall deliver an absentee ballot to a unit’s owner who requests it if the request is made at least 3 days before the scheduled meeting. Votes cast by absentee ballot must be included in the tally of a vote taken at that meeting.

(e) When a unit’s owner votes by absentee ballot, the association must be able to verify that the ballot is cast by the unit’s owner having the right to do so.

3. Except as otherwise provided in this section, votes allocated to a unit may be cast pursuant to a proxy executed by a unit’s owner. A unit’s owner may give a proxy only to a member of his or her immediate family, a tenant of the unit’s owner who resides in the condominium hotel, the hotel unit owner or another unit’s owner who resides in the condominium hotel. If a unit is owned by more than one person, each owner of the unit may vote or register protest to the casting of votes by the other owners of the unit through an executed proxy. A unit’s owner may revoke a proxy given pursuant to this section only by actual notice of revocation to the person presiding over a meeting of the association.

[3.] 4. Before a vote may be cast pursuant to a proxy:

(a) The proxy must be dated.

(b) The proxy must not purport to be revocable without notice.

(c) The proxy must designate the meeting for which it is executed [.] , and such a designation includes any recessed session of the meeting.

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ê2015 Statutes of Nevada, Page 1235 (CHAPTER 257, SB 389)ê

(d) The proxy must designate each specific item on the agenda of the meeting for which the unit’s owner has executed the proxy, except that the unit’s owner may execute the proxy without designating any specific items on the agenda of the meeting if the proxy is to be used solely for determining whether a quorum is present for the meeting. If the proxy designates one or more specific items on the agenda of the meeting for which the unit’s owner has executed the proxy, the proxy must indicate, for each specific item designated in the proxy, whether the holder of the proxy must cast a vote in the affirmative or the negative on behalf of the unit’s owner. If the proxy does not indicate whether the holder of the proxy must cast a vote in the affirmative or the negative for a particular item on the agenda of the meeting, the proxy must be treated, with regard to that particular item, as if the unit’s owner were present but not voting on that particular item.

(e) The holder of the proxy must disclose at the beginning of the meeting for which the proxy is executed and any recessed session of that meeting the number of proxies pursuant to which the holder will be casting votes.

[4.] 5. A proxy terminates immediately after the conclusion of the meeting , and any recessed sessions of the meeting, for which it is executed.

[5.] 6. A vote may not be cast pursuant to a proxy for the election or removal of a member of the executive board of an association.

[6.] 7. The holder of a proxy may not cast a vote on behalf of the unit’s owner who executed the proxy in a manner that is contrary to the proxy.

[7.] 8. A proxy is void if the proxy or the holder of the proxy violates any provision of subsections [1] 3 to [6,] 7, inclusive.

[8.] 9. Unless prohibited or limited by the declaration or bylaws, an association may conduct a vote without a meeting. Except as otherwise provided in NRS 116B.445 and 116B.450, if an association conducts a vote without a meeting, the following requirements apply:

(a) The association shall notify the units’ owners that the vote will be taken by ballot.

(b) The association shall deliver a paper or electronic ballot to every unit’s owner entitled to vote on the matter.

(d) When the association delivers the ballots, it shall also:

(1) Indicate the number of responses needed to meet the quorum requirements;

(2) State the percentage of votes necessary to approve each matter other than election of directors;

(3) Specify the time and date by which a ballot must be delivered to the association to be counted, which time and date may not be fewer than 3 days after the date the association delivers the ballot; and

(4) Describe the time, date and manner by which units’ owners wishing to deliver information to all units’ owners regarding the subject of the vote may do so.

(e) Except as otherwise provided in the declaration or bylaws, a ballot is not revoked after delivery to the association by death or disability of or attempted revocation by the person who cast that vote.

(f) Approval by ballot pursuant to this subsection is valid only if the number of votes cast by ballot equals or exceeds the quorum required to be present at a meeting authorizing the action.

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ê2015 Statutes of Nevada, Page 1236 (CHAPTER 257, SB 389)ê

10. If the declaration requires that votes on specified matters affecting the condominium hotel must be cast by the lessees of leased units rather than the units’ owners who have leased the units:

(a) [The provisions of subsections 1 to 7, inclusive, apply] This section applies to the lessees as if they were the units’ owners;

(b) The units’ owners who have leased their units to the lessees may not cast votes on those specified matters;

(c) The lessees are entitled to notice of meetings, access to records and other rights respecting those matters as if they were the units’ owners; and

(d) The units’ owners must be given notice, in the manner provided in this chapter, of all meetings at which the lessees are entitled to vote.

[9.] 11. If any votes are allocated to a unit that is owned by the association, those votes may not be cast, by proxy or otherwise, for any purpose.

Sec. 31. NRS 116B.555 is hereby amended to read as follows:

116B.555 1. A unit’s owner is not liable, solely by reason of being a unit’s owner, for an injury or damage arising out of the condition or use of the common elements. Neither the association nor any unit’s owner except the declarant or hotel unit owner, as applicable, is liable for that declarant’s or hotel unit owner’s torts in connection with any part of the condominium hotel which that declarant or hotel unit owner, as applicable, owns or has the responsibility to maintain. [Otherwise, an]

2. An action alleging a wrong done by the association [must be brought] , including, without limitation, an action arising out of the condition or use of the common elements, may be maintained only against the association and not against any unit’s owner. If the wrong occurred during any period of declarant’s control over the association and the association gives the declarant reasonable notice of and an opportunity to defend against the action, the declarant who then controlled the association is liable to the association or to any unit’s owner for all tort losses not covered by insurance suffered by the association or that unit’s owner, and all costs that the association would not have incurred but for a breach of contract or other wrongful act or omission. Whenever the declarant is liable to the association under this section, the declarant is also liable for all expenses of litigation, including reasonable attorney’s fees, incurred by the association.

3. Any statute of limitation affecting the association’s right of action under this section is tolled until the period of declarant’s control terminates. A unit’s owner is not precluded from maintaining an action contemplated by this section because he or she is a unit’s owner or a member or officer of the association. Liens resulting from judgments against the association are governed by NRS 116B.665.

Sec. 32. NRS 116B.565 is hereby amended to read as follows:

116B.565 1. Commencing not later than the time of the first conveyance of a unit to a person other than a declarant, and unless the declaration states otherwise, the association shall maintain, to the extent reasonably available [, both of the following:] and subject to reasonable deductibles:

(a) Property insurance on the common elements insuring against all risks of direct physical loss commonly insured against in an amount specified in the declaration.

(b) [Liability] Commercial general liability insurance on the common elements, including insurance for medical payments, in an amount determined by the executive board but not less than any amount specified in the declaration, covering all occurrences commonly insured against for death, bodily injury and property damage arising out of or in connection with the use, ownership, or maintenance of the common elements.

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ê2015 Statutes of Nevada, Page 1237 (CHAPTER 257, SB 389)ê

determined by the executive board but not less than any amount specified in the declaration, covering all occurrences commonly insured against for death, bodily injury and property damage arising out of or in connection with the use, ownership, or maintenance of the common elements.

(c) Crime insurance which includes coverage for dishonest acts by members of the executive board and the officers, employees, agents, directors and volunteers of the association and which extends coverage to any business entity that acts as the community manager of the association and the employees of that entity. Such insurance may not contain a conviction requirement, and the minimum amount of the policy must be not less than an amount equal to 3 months of aggregate assessments on all units plus reserve funds or $5,000,000, whichever is less.

2. Commencing not later than the time of the first conveyance of a residential unit to a person other than the declarant, and unless the declaration states otherwise, the hotel unit owner shall maintain, to the extent reasonably available, the following:

(a) Property and casualty insurance on the residential units, hotel unit and shared components insuring against all risks of direct physical loss commonly insured against in an amount specified in the declaration. An insurance policy issued to the hotel unit owner does not prevent a unit’s owner from obtaining insurance for his or her own benefit.

(b) Liability insurance on the residential units, hotel unit and shared components, including insurance for medical payments, in an amount set forth in the declaration, covering all occurrences commonly insured against for death, bodily injury and property damage arising out of or in connection with the use, ownership, or maintenance of the residential units, shared components or the hotel unit.

Sec. 33. NRS 116B.570 is hereby amended to read as follows:

116B.570 Insurance policies carried pursuant to this chapter must provide to the extent reasonably available that:

1. Each unit’s owner is an insured person under the policy with respect to liability arising out of his or her interest in the common elements or membership in the association;

2. The insurer waives its right to subrogation under the policy against any unit’s owner or member of his or her household;

3. No act or omission by any unit’s owner, unless acting within the scope of his or her authority on behalf of the association, [will void] voids the policy or [be] is a condition to recovery under the policy; and

4. If, at the time of a loss under the policy, there is other insurance in the name of a unit’s owner covering the same risk covered by the policy, the association’s policy or the hotel unit owners’ policy, as applicable, provides primary insurance.

Sec. 34. NRS 116B.590 is hereby amended to read as follows:

116B.590 1. Until the association makes an assessment for common expenses for the common elements, the declarant shall pay all common expenses. After an assessment has been made by the association, assessments must be made at least annually, based on a budget adopted at least annually by the association in accordance with the requirements set forth in this chapter. Unless the declaration imposes more stringent standards, the budget must include a budget for the daily operation of the association and a budget for the reserves required by paragraph (b) of subsection 2.

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2. Except for assessments under subsections 4 to 7, inclusive [:] , or as otherwise provided in this chapter:

(a) All common expenses, including the reserves, must be assessed against all the units in accordance with the allocations set forth in the declaration pursuant to NRS 116B.340.

(b) The association shall establish adequate reserves, funded on a reasonable basis, for the repair, replacement and restoration of the major components of the common elements. The reserves may be used only for those purposes and must not be used for daily maintenance. The association may comply with the provisions of this paragraph through a funding plan that is designed to allocate the costs for the repair, replacement and restoration of the major components of the common elements over a period of years if the funding plan is designed in an actuarially sound manner which will ensure that sufficient money is available when the repair, replacement and restoration of the major components of the common elements are necessary.

3. Any past due assessment for common expenses or installment thereof bears interest at the rate established by the association not exceeding 18 percent per year.

4. To the extent required by the declaration:

(a) Any common expense [or portion thereof] benefiting fewer than all of the units [must] or units’ owners may be assessed exclusively against the units or units’ owners benefited; and

(b) The costs of insurance must be assessed in proportion to risk and the costs of utilities must be assessed in proportion to usage.

5. Assessments to pay a judgment against the association may be made only against the units in the condominium hotel at the time the judgment was entered, in proportion to their liabilities for common expenses.

6. If damage to a unit or other part of the condominium hotel or if any other common expense is caused by the willful misconduct or gross negligence of any unit’s owner, tenant or invitee, the association may assess that expense exclusively against his or her unit [.] , even if the association maintains insurance with respect to that damage or other common expense, unless the damage or other common expense is caused by a vehicle and is committed by a person who is delivering goods to, or performing services for, the unit’s owner, tenant or invitee of the unit’s owner or tenant.

7. If liabilities for common expenses are reallocated, assessments for common expenses and any installment thereof not yet due must be recalculated in accordance with the reallocated liabilities.

8. The association shall provide written notice to each unit’s owner of a meeting at which an assessment for a capital improvement is to be considered or action is to be taken on such an assessment at least 21 calendar days before the date of the meeting.

Sec. 35. NRS 116B.630 is hereby amended to read as follows:

116B.630 1. The association or the hotel unit owner, as applicable, has a lien on a unit for any assessment or charge, including assessments for common expenses and charges for shared expenses or other charges of the hotel unit owner, authorized by this chapter that is levied against that unit or any fines imposed against the unit’s owner from the time the assessment, charge or fine becomes due. If an assessment is payable in installments, the full amount of the assessment or charge is a lien from the time the first installment thereof becomes due.

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installments, the full amount of the assessment or charge is a lien from the time the first installment thereof becomes due.

2. A lien under this section is prior to all other liens and encumbrances on a unit except:

(a) Liens and encumbrances recorded before the recordation of the declaration;

(b) A first security interest on the unit recorded before the date on which the assessment sought to be enforced became delinquent; and

(d) Mechanics’]

Ê This subsection does not affect the priority of mechanics’ or materialmen’s liens [.] , or the priority of liens for other assessments made by the association.

3. Unless the declaration otherwise provides, if the association and the hotel unit owner both have liens for assessments or charges created at any time on the same property, the priority of those liens is governed by Nevada law.

4. Recording of the declaration constitutes record notice and perfection of the lien. No further recordation of any claim of lien for assessment or charge under this section is required.

5. A lien for unpaid assessments or charges is extinguished unless proceedings to enforce the lien are instituted within 3 years after the full amount of the assessments or charges become due.

6. This section does not prohibit actions to recover sums for which subsection 1 creates a lien or prohibit an association or the hotel unit owner, as applicable, from taking a deed in lieu of foreclosure.

7. A judgment or decree in any action brought under this section must include costs and reasonable attorney’s fees for the prevailing party.

8. The association or the hotel unit owner, as applicable, upon written request, shall furnish to a residential unit owner a statement setting forth the amount of unpaid assessments or charges against the unit. If the interest of the unit’s owner is real estate or if a lien for the unpaid assessments or charges may be foreclosed under this chapter, the statement must be in recordable form. The statement must be furnished within 10 business days after receipt of the request and is binding on the association or the declarant, as applicable, and every unit’s owner.

9. In an action by an association to collect assessments or by the hotel unit owner to collect shared expenses or to foreclose a lien created under this section, the court may appoint a receiver to collect all rents or other income from the unit alleged to be due and owing to a unit’s owner before commencement or during pendency of the action. The receivership is governed by chapter 32 of NRS. The court may order the receiver to pay any sums held by the receiver to the:

(a) Association during pendency of the action to the extent of the association’s common expense assessments based on a periodic budget adopted by the association pursuant to NRS 116B.600; or

(b) To the hotel unit owner to the extent of the hotel unit owner’s shared expenses based on a periodic budget provided by the hotel unit owner pursuant to NRS 116B.595.

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Sec. 36. NRS 116B.635 is hereby amended to read as follows:

116B.635 1. Except as otherwise provided in subsection 4, in a condominium hotel, the association or hotel unit owner, as applicable, may foreclose its lien by sale after all of the following occur:

(a) The association or hotel unit owner, as applicable, has mailed by certified or registered mail, return receipt requested, to the residential unit owner or his or her successor in interest, at the residential unit owner’s address, if known, and at the address of the residential unit, a notice of delinquent assessment which states the amount of the assessments and other sums which are due, a description of the residential unit against which the lien is imposed and the name of the record owner of the residential unit.

(b) Not less than 30 days after mailing the notice of delinquent assessment or charge pursuant to paragraph (a), the association or hotel unit owner, as applicable, has executed and caused to be recorded, with the county recorder of the county in which the condominium hotel or any part of it is situated, a notice of default and election to sell the residential unit to satisfy the lien which must contain the same information as the notice of delinquent assessment and which must also comply with the following:

(1) Describe the deficiency in payment.

(2) State the name and address of the person authorized by the association, the declarant or hotel unit owner, as applicable, to enforce the lien by sale.

(3) Contain, in 14-point bold type, the following warning:

WARNING! IF YOU FAIL TO PAY THE AMOUNT SPECIFIED IN THIS NOTICE, YOU COULD LOSE YOUR [HOME,] UNIT, EVEN IF THE AMOUNT IS IN DISPUTE!

(c) The residential unit owner or his or her successor in interest has failed to pay the amount of the lien, including costs, fees and expenses incident to its enforcement, for 90 days following the recording of the notice of default and election to sell.

2. The notice of default and election to sell must be signed by the person designated in the declaration or by the association or hotel unit owner, as applicable, for that purpose.

3. The period of 90 days begins on the first day following:

(a) The date on which the notice of default is recorded; or

(b) The date on which a copy of the notice of default is mailed by certified or registered mail, return receipt requested, to the residential unit owner or his or her successor in interest at the residential unit owner’s address, if known, and at the address of the residential unit,

Ê whichever date occurs later.

4. The association may not foreclose a lien by sale based on a fine or penalty for a violation of the governing documents of the association unless:

(a) The violation poses an imminent threat of causing a substantial adverse effect on the health, safety or welfare of the units’ owners or residents of the condominium hotel; or

(b) The penalty is imposed for failure to adhere to a schedule required pursuant to this chapter.

Sec. 37. NRS 116B.645 is hereby amended to read as follows:

116B.645 1. The association or hotel unit owner, as applicable, shall also, after the expiration of the 90 days and before selling the unit:

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