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CHAPTER 354, SB 10

Senate Bill No. 10–Committee on Judiciary

 

CHAPTER 354

 

[Approved: June 4, 2017]

 

AN ACT relating to unclaimed property; revising provisions governing the publication of information concerning certain unclaimed and abandoned property and the sale of such property; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law establishes the Uniform Unclaimed Property Act, which sets forth various provisions relating to the disposition of certain abandoned property. (Chapter 120A of NRS) Under existing law, the State Treasurer acts as the Administrator of Unclaimed Property. (NRS 120A.025) Existing law requires the Administrator annually to publish a notice that lists the name of each person who appears to own certain kinds of property that has been abandoned by its owner and taken into custody by the Administrator. The notice must also contain a statement that information about such property may be obtained from the Administrator. The Administrator is required to provide this notice by purchasing an advertisement in a newspaper of the county of the last known address of each apparent owner of abandoned property that is in the custody of the Administrator. (NRS 120A.580) Section 1 of this bill revises the requirements that the notice include information concerning individual owners and instead provides among other things that: (1) in a county whose population is 700,000 or more (currently Clark County), such a notice must be published in a newspaper of general circulation with a circulation of more than 15,000 in the county at least six times per year, or more often under certain circumstances, and must provide certain instructions on how to search and access information relating to unclaimed property; and (2) in a county whose population is less than 700,000 (currently any county other than Clark County), such a notice must be published in a newspaper of general circulation in the county not less than once each year and must include the last known city of any person named in the notice. Section 1 also requires the Administrator to publish a notice in a newspaper of general circulation, not later than February 1 and August 1 of each year, that summarizes certain requirements relating to holders of unclaimed property. Finally, section 1 authorizes the Administrator to provide additional information concerning unclaimed or abandoned property at any time and in any manner that the Administrator selects.

      Existing law requires the Administrator to sell certain abandoned property in his or her custody within 2 years after taking the property into custody. The Administrator is required to publish a notice in a newspaper of general circulation in the county in which the property is to be sold at least 3 weeks before the sale. (NRS 120A.610) Section 2 of this bill requires the Administrator to publish such a notice not less than 21 days before the sale. Section 2 also authorizes the Administrator to provide additional notice of such sales at any time and in any manner that the Administrator selects.

 

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 120A.580 is hereby amended to read as follows:

      120A.580  1.  The Administrator shall publish a notice not later than November 30 of the year next following the year in which abandoned property has been paid or delivered to the Administrator. The notice must [be] :

 


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      (a) In a county whose population is 700,000 or more:

             (1) Be published not less than six times per year, or more frequently as necessary to comply with the provisions of subparagraph (3), in a newspaper of general circulation in the county [of this State in which is located] with a circulation of more than 15,000;

             (2) Include instructions on how to search and access information relating to unclaimed property; and

             (3) Be not less than one full page in size. The Administrator may comply with the requirement in this subparagraph by publishing one or more versions of the notice that are less than one full page in size if the size of all the versions of the notice published during the year is cumulatively not less than six full pages.

      (b) In a county whose population is less than 700,000:

             (1) Be published not less than once each year in a newspaper of general circulation in the county; and

             (2) Include the last known [address] city of any person named in the notice. [If a holder does not report an address for the apparent owner or the address is outside this State, the notice must be published in a county that the Administrator reasonably selects.]

      2.  The [advertisement] notice required by subsection 1 must be in a form that, in the judgment of the Administrator, is likely to attract the attention of [the apparent owner of the] persons who may have a legal or equitable interest in unclaimed property [.] or of the legal representatives of such persons. The form must contain:

      (a) The name [of each person appearing to be the owner of the property, as set forth in the report filed by the holder;

      (b) The city or town in which the last known address of each person appearing to be the owner of the property is located, if a city or town is set forth in the report filed by the holder;

      (c)], physical address, telephone number and Internet address of the website of the Administrator;

      (b) A statement explaining that unclaimed property [of the owner] is presumed to be abandoned and has been taken into the protective custody of the Administrator; and

      [(d)](c) A statement that information about [the] property taken into protective custody and its return to the owner is available to the owner or a person having a legal or beneficial interest in the property, upon request to the Administrator [.] , directed to the Deputy of Unclaimed Property.

      [2.]3. [The Administrator is not required to advertise the name and city or town of an owner of property having a total value less than $50 or information concerning a traveler’s check, money order or similar instrument.] In addition to publishing the notice required by subsection 1, the Administrator shall publish a notice not later than February 1 and August 1 of each year summarizing the requirements of this chapter as they apply to the holders of unclaimed property. The notice must:

      (a) Be published in a newspaper of general circulation in this State; and

      (b) Be not less than one full page in size. The Administrator may comply with the requirement of this paragraph by publishing one or more versions of the notice that are less than one full page in size if the size of all the versions of the notice published during the year is cumulatively not less than two full pages.

 


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      4.  In addition to complying with the requirements of subsections 1, 2 and 3, the Administrator may advertise or otherwise provide information concerning unclaimed or abandoned property, including, without limitation, the information set forth in subsections 2 and 3, at any other time and in any other manner that the Administrator selects.

      Sec. 2. NRS 120A.610 is hereby amended to read as follows:

      120A.610  1.  Except as otherwise provided in subsections 4 to 8, inclusive, all abandoned property other than money delivered to the Administrator under this chapter must, within 2 years after the delivery, be sold by the Administrator to the highest bidder at public sale in whatever manner affords, in his or her judgment, the most favorable market for the property. The Administrator may decline the highest bid and reoffer the property for sale if the Administrator considers the bid to be insufficient.

      2.  Any sale held under this section must be preceded by a single publication of notice, [at least 3 weeks] not less than 21 days before sale, in a newspaper of general circulation in the county in which the property is to be sold. The Administrator may provide additional notice of any such sale at any time and in any manner that the Administrator selects.

      3.  The purchaser of property at any sale conducted by the Administrator pursuant to this chapter takes the property free of all claims of the owner or previous holder and of all persons claiming through or under them. The Administrator shall execute all documents necessary to complete the transfer of ownership.

      4.  Except as otherwise provided in subsection 5, the Administrator need not offer any property for sale if the Administrator considers that the probable cost of the sale will exceed the proceeds of the sale. The Administrator may destroy or otherwise dispose of such property or may transfer it to:

      (a) The Nevada State Museum Las Vegas, the Nevada State Museum or the Nevada Historical Society, upon its written request, if the property has, in the opinion of the requesting institution, historical, artistic or literary value and is worthy of preservation; or

      (b) A genealogical library, upon its written request, if the property has genealogical value and is not wanted by the Nevada State Museum Las Vegas, the Nevada State Museum or the Nevada Historical Society.

Κ An action may not be maintained by any person against the holder of the property because of that transfer, disposal or destruction.

      5.  The Administrator shall transfer property to the Department of Veterans Services, upon its written request, if the property has military value.

      6.  Securities delivered to the Administrator pursuant to this chapter may be sold by the Administrator at any time after the delivery. Securities listed on an established stock exchange must be sold at the prevailing price for that security on the exchange at the time of sale. Other securities not listed on an established stock exchange may be sold:

      (a) Over the counter at the prevailing price for that security at the time of sale; or

      (b) By any other method the Administrator deems acceptable.

      7.  The Administrator shall hold property that was removed from a safe-deposit box or other safekeeping repository for 1 year after the date of the delivery of the property to the Administrator, unless that property is a will or a codicil to a will, in which case the Administrator shall hold the property for 10 years after the date of the delivery of the property to the Administrator. If no claims are filed for the property within that period and the Administrator determines that the probable cost of the sale of the property will exceed the proceeds of the sale, it may be destroyed.

 


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no claims are filed for the property within that period and the Administrator determines that the probable cost of the sale of the property will exceed the proceeds of the sale, it may be destroyed.

      8.  All proceeds received by the Administrator from abandoned gift certificates must be accounted for separately in the Abandoned Property Trust Account in the State General Fund. At the end of each fiscal year, before any other money in the Abandoned Property Trust Account is transferred pursuant to NRS 120A.620, the balance in the subaccount created pursuant to this subsection, less any costs, service charges or claims chargeable to the subaccount, must be transferred to the Educational Trust Account, which is hereby created in the State General Fund. The money in the Educational Trust Account may be expended only as authorized by the Legislature, if it is in session, or by the Interim Finance Committee, if the Legislature is not in session, for educational purposes.

      Sec. 3.  This act becomes effective upon passage and approval.

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CHAPTER 355, SB 41

Senate Bill No. 41–Committee on Judiciary

 

CHAPTER 355

 

[Approved: June 4, 2017]

 

AN ACT relating to business; removing the exemption from the requirement to obtain a state business registration for businesses whose primary purpose is to create or produce motion pictures; revising provisions governing the examination of the records required to be maintained by registered agents; revising the requirement for certain charitable organizations to register with the Secretary of State before soliciting charitable contributions in this State; revising provisions governing the reinstatement of the charter of a corporation sole; revising provisions governing the examination of the records required to be maintained by certain business entities; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law requires certain businesses to obtain a state business registration from the Secretary of State and to pay an annual fee for such registration. (NRS 76.100, 76.130) Section 1 of this bill removes the exemption from this requirement for businesses whose primary purpose is to create or produce motion pictures and, thus, requires such businesses to obtain a state business registration and pay the annual fee.

      Existing law requires foreign and domestic entities to appoint a registered agent. (NRS 77.310) Under existing law, the Secretary of State may conduct an examination of the records required to be maintained by a registered agent if the Secretary of State has reason to believe that a violation of the laws governing registered agents has been committed. (NRS 77.443) Section 2 of this bill revises this provision to authorize the Secretary of State to conduct a periodic, special or other examination of the records of a registered agent as the Secretary of State deems necessary or appropriate to determine whether a violation of the law governing registered agents has been committed.

 


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      Existing law requires certain charitable organizations that intend to solicit tax-deductible charitable contributions in this State to register with the Secretary of State by filing certain information and a financial report with the Secretary of State before the charitable organization first solicits charitable contributions in this State or has charitable contributions solicited in this State on its behalf. (NRS 82A.100) For the purposes of this registration requirement, the definition of “charitable organization” excludes an organization that is established for and serving bona fide religious purposes and, thus, such religious organizations are exempt from the requirement to register with the Secretary of State before soliciting tax-deductible charitable contributions. (NRS 82A.025) Section 3 of this bill removes a duplicative exemption from the registration requirement for certain church organizations.

      Under existing law, if a corporation sole has not filed an annual list within 1 year after the annual list is due, the corporation sole’s right to transact business in this State is forfeited. (NRS 78.175, 84.110, 84.140) The corporation sole may reinstate its right to transact business in this State if, within 5 years after forfeiting its right to transact business, it files the required annual lists and pays certain fees, including, without limitation, a reinstatement fee. (NRS 78.180, 84.110, 84.150) Existing law contains two conflicting provisions that set forth the reinstatement fee, one provision states that the fee for reinstatement is $25 and the other provision states that the fee is $100. (NRS 84.110, 84.150) Under a well-established rule of statutory construction, “when statutes are in conflict, the one more recent in time controls over the provisions of an earlier enactment.” Laird v. State of Nev. Pub. Employees Ret. Bd., 98 Nev. 42, 45 (1982). Because the $25 reinstatement fee was enacted in 1995 and the $100 reinstatement fee was enacted in 2003, the fee for reinstatement under existing law is $100. (Section 39 of Chapter 435, Statutes of Nevada 1995, p. 1124; Section 69 of Chapter 4, Statutes of Nevada 2003, 20th Special Session, p. 57) Section 4 of this bill clarifies that the reinstatement fee is $100 by removing a reference to the $25 reinstatement fee.

      Existing law requires a limited-liability company to maintain at its registered office or principal place of business in this State a statement indicating where a list of the names and business addresses of each member and manager is maintained. (NRS 86.246) Section 5 of this bill removes this requirement.

      Existing law requires a limited partnership to maintain a principal office in this State or a custodian of records. (NRS 88.330) If a limited partnership maintains a custodian of records, section 6 of this bill requires the limited partnership to make its name and street address available at its registered office.

      Existing law requires a limited partnership to maintain a list of the name and business address of each partner at its principal office or with its custodian of records. (NRS 88.335) Existing law also requires a limited partnership to maintain at its registered office or principal place of business in this State a statement indicating where such a list is maintained. (NRS 88.3355) Section 7 of this bill removes the requirement to maintain such a statement and instead requires a limited partnership to maintain the list at its principal place of business in this State or with its custodian of records, in addition to the requirement under existing law to maintain such a list at its principal office or with its custodian of records.

 

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 76.020 is hereby amended to read as follows:

      76.020  1.  Except as otherwise provided in subsection 2, “business” means:

      (a) Any person, except a natural person, that performs a service or engages in a trade for profit;

 


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      (b) Any natural person who performs a service or engages in a trade for profit if the person is required to file with the Internal Revenue Service a Schedule C (Form 1040), Profit or Loss From Business Form, or its equivalent or successor form, a Schedule E (Form 1040), Supplemental Income and Loss Form, or its equivalent or successor form, or a Schedule F (Form 1040), Profit or Loss From Farming Form, or its equivalent or successor form, for that activity; or

      (c) Any entity organized pursuant to this title, including, without limitation, those entities required to file with the Secretary of State, whether or not the entity performs a service or engages in a business for profit.

      2.  The term does not include:

      (a) A governmental entity.

      (b) A nonprofit religious, charitable, fraternal or other organization that qualifies as a tax-exempt organization pursuant to 26 U.S.C. § 501(c).

      (c) A person who operates a business from his or her home and whose net earnings from that business are not more than 66 2/3 percent of the average annual wage, as computed for the preceding calendar year pursuant to chapter 612 of NRS and rounded to the nearest hundred dollars.

      (d) A natural person whose sole business is the rental of four or fewer dwelling units to others.

      (e) [A business whose primary purpose is to create or produce motion pictures. As used in this paragraph, “motion pictures” has the meaning ascribed to it in NRS 231.020.

      (f)] A business organized pursuant to chapter 82 or 84 of NRS.

      [(g)] (f) A business organized pursuant to chapter 81 of NRS if the business is a nonprofit unit-owners’ association.

      Sec. 2. NRS 77.443 is hereby amended to read as follows:

      77.443  The Secretary of State may conduct periodic, special or any other examinations of any records required to be maintained pursuant to this chapter or any other provision of NRS pertaining to the duties of a registered agent [if] as the Secretary of State [has reason to believe that] deems necessary or appropriate to determine whether a violation of this chapter or any other provision of NRS pertaining to the duties of a registered agent has been [violated.] committed.

      Sec. 3. NRS 82A.110 is hereby amended to read as follows:

      82A.110  1.  A charitable organization is not required to be registered with the Secretary of State pursuant to NRS 82A.100 during any year in which its only solicitations for contributions, donations, gifts or the like are:

      (a) Directed only to a total of fewer than 15 persons annually;

      (b) Directed only to persons who are related within the third degree of consanguinity or affinity to the officers, directors, trustees or executive personnel of the charitable organization;

      (c) [Conducted by a church or one or more of its integrated auxiliaries or by a convention or association of churches that is exempt from taxation pursuant to section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. § 501(c)(3), and exempt from filing an annual return pursuant to section 6033 of the Internal Revenue Code, 26 U.S.C. § 6033;

      (d)] Appeals for funds to benefit a particular person or his or her immediate family named in the solicitation, but only if all the proceeds of the solicitation are given to or expended for the direct benefit of the person or his or her immediate family; or

 


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      [(e)] (d) Conducted by an alumni association of an accredited institution which solicits only persons who have an established affiliation with the institution, including, without limitation, current and former students, members of the faculty or staff, or persons who are within the third degree of consanguinity or affinity of such persons.

      2.  A charitable organization that believes it is exempt from registration pursuant to this section must, before it solicits a charitable contribution in this State or has a charitable contribution solicited in this State on its behalf by another person, and annually thereafter, file a declaration of exemption on a form prescribed by the Secretary of State.

      Sec. 4. NRS 84.150 is hereby amended to read as follows:

      84.150  1.  Except as otherwise provided in subsections 3 and 4, the Secretary of State shall reinstate any corporation sole which has forfeited its right to transact business under the provisions of this chapter and restore the right to carry on business in this State and exercise its corporate privileges and immunities, if it:

      (a) Files with the Secretary of State:

             (1) The information required pursuant to NRS 77.310; and

             (2) A declaration under penalty of perjury, on a form provided by the Secretary of State, that the reinstatement is authorized by a court of competent jurisdiction in this State or by the archbishop, bishop, president, trustee in trust, president of stake, president of congregation, overseer, presiding elder, district superintendent, other presiding officer or member of the clergy of a church or religious society or denomination, who has been chosen, elected or appointed in conformity with the constitution, canons, rites, regulations or discipline of the church or religious society or denomination, and in whom is vested the legal title to property held for the purposes, use or benefit of the church or religious society or denomination; and

      (b) Pays to the Secretary of State [:] the:

             (1) [The filing] Filing fees and penalties set forth in this chapter for each year or portion thereof during which its charter has been revoked; and

             (2) [A fee of $25] Fee for reinstatement [.] set forth in paragraph (c) of subsection 2 of NRS 84.110.

      2.  When the Secretary of State reinstates the corporation to its former rights, the Secretary of State shall:

      (a) Immediately issue and deliver to the corporation a certificate of reinstatement authorizing it to transact business, as if the fees had been paid when due; and

      (b) Upon demand, issue to the corporation a certified copy of the certificate of reinstatement.

      3.  The Secretary of State shall not order a reinstatement unless all delinquent fees and penalties have been paid, and the revocation of its charter occurred only by reason of its failure to pay the fees and penalties.

      4.  If a corporate charter has been revoked pursuant to the provisions of this chapter and has remained revoked for 10 consecutive years, the charter must not be reinstated.

      5.  A reinstatement pursuant to this section relates back to the date on which the corporation forfeited its right to transact business under the provisions of this chapter and reinstates the corporation’s right to transact business as if such right had at all times remained in full force and effect.

 


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      Sec. 5. NRS 86.246 is hereby amended to read as follows:

      86.246  1.  [A limited-liability company shall maintain at its registered office or principal place of business in this State a statement indicating where the list required pursuant to paragraph (a) of subsection 1 of NRS 86.241 is maintained.

      2.]  Upon the request of the Secretary of State, [the] a limited-liability company shall:

      (a) Provide the Secretary of State with the name and contact information of the custodian of the list described in paragraph (a) of subsection 1 [,] of NRS 86.241, if different than the registered agent for such company. The information required pursuant to this paragraph shall be kept confidential by the Secretary of State.

      (b) Provide written notice to the Secretary of State within 10 days after any change in the custodian of the list described in paragraph (a) of subsection 1 [.

      3.] of NRS 86.241.

      2.  Upon the request of any law enforcement agency in the course of a criminal investigation, the Secretary of State may require a limited-liability company to:

      (a) Submit to the Secretary of State, within 3 business days, a copy of the list required to be maintained pursuant to paragraph (a) of subsection 1 of NRS 86.241; or

      (b) Answer any interrogatory submitted by the Secretary of State that will assist in the criminal investigation.

      [4.]3.  If a limited-liability company fails to comply with any requirement pursuant to subsection [3,] 2, the Secretary of State may take any action necessary, including, without limitation, the suspension or revocation of the charter of the limited-liability company.

      [5.]4.  The Secretary of State shall not reinstate or revive a charter that was revoked or suspended pursuant to subsection [4] 3 unless:

      (a) The limited-liability company complies with the requirements of subsection [3;] 2; or

      (b) The law enforcement agency conducting the investigation advises the Secretary of State to reinstate or revive the charter.

      [6.]5.  The Secretary of State may adopt regulations to administer the provisions of this section.

      Sec. 6. NRS 88.330 is hereby amended to read as follows:

      88.330  1.  Each limited partnership shall continuously maintain:

      (a) A principal office in this State, which may but need not be a place of its business in this State, or a custodian of records [,] whose name and street address is available at the limited partnership’s registered office, at which must be kept the records required by NRS 88.335 to be maintained; and

      (b) A registered agent.

 

 

 

 

 

 

 

 


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      2.  Within 30 days after changing the location of the office which contains records for a limited partnership, a general partner of the limited partnership shall file a certificate of a change in address with the Secretary of State which sets forth the name of the limited partnership, the previous address of the office which contains records and the new address of the office which contains records.

      Sec. 7. NRS 88.3355 is hereby amended to read as follows:

      88.3355  1.  A limited partnership shall maintain at its [registered office or] principal place of business in this State [a statement indicating where] or with the custodian of records as referred to in paragraph (a) of subsection 1 of NRS 88.330, the list required pursuant to paragraph (a) of subsection 1 of NRS 88.335 . [is maintained.]

      2.  Upon the request of the Secretary of State, the limited partnership shall:

      (a) Provide the Secretary of State with the name and contact information of the custodian of the list described in subsection 1, if different than the registered agent for such limited partnership. The information required pursuant to this paragraph shall be kept confidential by the Secretary of State.

      (b) Provide written notice to the Secretary of State within 10 days after any change in the custodian of the list described in subsection 1.

      3.  Upon the request of any law enforcement agency in the course of a criminal investigation, the Secretary of State may require a limited partnership to:

      (a) Submit to the Secretary of State, within 3 business days, a copy of the list required to be maintained pursuant to paragraph (a) of subsection 1 of NRS 88.335; or

      (b) Answer any interrogatory submitted by the Secretary of State that will assist in the criminal investigation.

      4.  If a limited partnership fails to comply with any requirement pursuant to subsection 3, the Secretary of State may take any action necessary, including, without limitation, the suspension or revocation of the right of the limited partnership to transact any business in this State.

      5.  The Secretary of State shall not reinstate or revive the right of a limited partnership to transact any business in this State that was revoked or suspended pursuant to subsection 4 unless:

      (a) The limited partnership complies with the requirements of subsection 3; or

      (b) The law enforcement agency conducting the investigation advises the Secretary of State to reinstate or revive the right of the limited partnership to transact business in this State.

      6.  The Secretary of State may adopt regulations to administer the provisions of this section.

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CHAPTER 356, SB 60

Senate Bill No. 60–Committee on Health and Human Services

 

CHAPTER 356

 

[Approved: June 4, 2017]

 

AN ACT relating to Medicaid; authorizing the Director of the Department of Health and Human Services to include in Medicaid managed care plans a voluntary program through which certain governmental entities and Indian tribes may obtain supplemental payments for providing ground emergency medical transportation services to recipients of Medicaid; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Federal law requires the Federal Government to pay to each state for which the Federal Government has approved a State Plan for Medicaid a certain percentage of the total amount expended as medical assistance under the State Plan. The states are responsible for the remaining share of such expenditures. (42 U.S.C. § 1396b(a)) Federal law also allows certain governmental entities and federally recognized Indian tribes to receive supplemental reimbursements in addition to the federal payments discussed above for certain health care services, including ground emergency medical transportation services, pursuant to a State Plan for Medicaid. (42 U.S.C. §§ 1396a and 1396b; 42 C.F.R. §§ 433.50-433.74)

      Section 11 of this bill authorizes the Director of the Department of Health and Human Services to develop a voluntary program to provide increased “capitation” (per patient) payments to Medicaid managed care plans for ground emergency medical transportation services which are provided by a governmental entity or Indian tribe pursuant to a contract or other arrangement with such Medicaid managed care plans. In order to participate in such a program, a governmental entity, Indian tribe or managed care plan is required to enter into an agreement with the Department to comply with any request made by the Department to provide any information or data necessary to claim federal money or obtain federal approval. Such a program would require the governmental entity or Indian tribe to: (1) make intergovernmental transfers of money to the Department in an amount corresponding with the amount of money spent rendering ground emergency medical transportation services; or (2) pay the nonfederal share of expenditures on the program. The Department would then use that money and money from the Federal Government to make increased capitation payments. Section 11 also provides that supplemental reimbursements and increased capitation payments will be paid only to the extent approved by the Federal Government.

 

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 422 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 11, inclusive, of this act.

      Sec. 2. As used in sections 2 to 11, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 3 to 9, inclusive, of this act have the meanings ascribed to them in those sections.

      Sec. 3. “Advanced emergency medical technician” has the meaning ascribed to it in NRS 450B.025.

 


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      Sec. 4. “Ambulance” has the meaning ascribed to it in NRS 450B.040.

      Sec. 5. “Emergency medical technician” has the meaning ascribed to it in NRS 450B.065.

      Sec. 6. “Fire-fighting agency” has the meaning ascribed to it in NRS 450B.072.

      Sec. 7. “Governmental provider” means a provider of ground emergency medical transportation services that is owned or operated by a state or local governmental entity or federally recognized Indian tribe.

      Sec. 8. “Ground emergency medical transportation services” means emergency medical transportation services provided by an ambulance or a vehicle of a fire-fighting agency, including, without limitation, services provided by emergency medical technicians, advanced emergency medical technicians and paramedics in prestabilizing patients and preparing patients for transport.

      Sec. 9. “Paramedic” has the meaning ascribed to it in NRS 450B.095.

      Sec. 10.  (Deleted by amendment.)

      Sec. 11. 1.  The Director may, in consultation with governmental providers and Medicaid managed care plans, develop a program to include in the managed care organization rate certification for the Medicaid managed care plans increased capitation payments to the Medicaid managed care plans for ground emergency medical transportation services which are provided by a governmental provider pursuant to a contract or other arrangement between the governmental provider and a Medicaid managed care plan. Participation in such a program by a governmental provider is voluntary and, if a governmental provider elects to participate in such a program, the governmental provider must pay the nonfederal share of the expenditures on the program.

      2.  If a program is established pursuant to this section, a governmental provider or Medicaid managed care plan that wishes to participate in the program must enter into an agreement with the Department to comply with any request by the Department for information or data necessary to claim federal money or obtain federal approval in connection with the program.

      3.  In addition to complying with subsection 2, a governmental provider that wishes to participate in a program established pursuant to this section must:

      (a) Hold a permit to operate an ambulance or a permit to operate a vehicle of a fire-fighting agency at the scene of an emergency issued pursuant to NRS 450B.200; and

      (b) Provide ground emergency medical services to recipients of Medicaid pursuant to a contract or other arrangement with a Medicaid managed care plan.

      4.  If a program is established pursuant to this section, a governmental provider that meets the requirements of subsections 2 and 3 and wishes to receive increased capitation payments must make an intergovernmental transfer of money to the Department in an amount corresponding with the amount that the governmental provider has spent on ground emergency medical transportation services or pay the nonfederal share of expenditures on the program. To the extent that such money is accepted from a governmental provider, the Department shall make increased capitation payments to the applicable Medicaid managed care plan. To the extent permissible under federal law, the increased capitation payments must be in amounts actuarially equivalent to or greater than the supplemental cost based payments available under a program of supplemental reimbursements for governmental providers who provide services on a fee-for-service basis.

 


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must be in amounts actuarially equivalent to or greater than the supplemental cost based payments available under a program of supplemental reimbursements for governmental providers who provide services on a fee-for-service basis.

      5.  Except as otherwise provided in subsection 6, all money associated with intergovernmental transfers or the nonfederal share of expenditures made and accepted pursuant to subsection 4 must be used to make additional payments to governmental providers under a program established pursuant to this section. A Medicaid managed care plan shall pay all of any increased capitation payments made pursuant to subsection 4 to a governmental provider for ground emergency medical transportation services pursuant to a contract or other arrangement with the Medicaid managed care plan.

      6.  The Department may implement the program described in this section only to the extent that the program is approved by the Centers for Medicare and Medicaid Services and federal financial participation is available. To the extent authorized by federal law, the Department may implement the program for ground emergency medical transportation services provided before the effective date of this section.

      7.  If the Director determines that payments made under the provisions of this section do not comply with federal requirements relating to Medicaid, the Director may:

      (a) Return or refuse to accept an intergovernmental transfer; or

      (b) Adjust any payment made under the provisions of this section to comply with federal requirements relating to Medicaid.

      8.  As used in this section, “Medicaid managed care plan” means a health maintenance organization that provides health care services through managed care to recipients of Medicaid under the State Plan for Medicaid.

      Sec. 12. NRS 232.320 is hereby amended to read as follows:

      232.320  1.  The Director:

      (a) Shall appoint, with the consent of the Governor, administrators of the divisions of the Department, who are respectively designated as follows:

             (1) The Administrator of the Aging and Disability Services Division;

             (2) The Administrator of the Division of Welfare and Supportive Services;

             (3) The Administrator of the Division of Child and Family Services;

             (4) The Administrator of the Division of Health Care Financing and Policy; and

             (5) The Administrator of the Division of Public and Behavioral Health.

      (b) Shall administer, through the divisions of the Department, the provisions of chapters 63, 424, 425, 427A, 432A to 442, inclusive, 446 to 450, inclusive, 458A and 656A of NRS, NRS 127.220 to 127.310, inclusive, 422.001 to 422.410, inclusive, and sections 2 to 11, inclusive, of this act, 422.580, 432.010 to 432.133, inclusive, 432B.621 to 432B.626, inclusive, 444.002 to 444.430, inclusive, and 445A.010 to 445A.055, inclusive, and all other provisions of law relating to the functions of the divisions of the Department, but is not responsible for the clinical activities of the Division of Public and Behavioral Health or the professional line activities of the other divisions.

 


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      (c) Shall administer any state program for persons with developmental disabilities established pursuant to the Developmental Disabilities Assistance and Bill of Rights Act of 2000, 42 U.S.C. §§ 15001 et seq.

      (d) Shall, after considering advice from agencies of local governments and nonprofit organizations which provide social services, adopt a master plan for the provision of human services in this State. The Director shall revise the plan biennially and deliver a copy of the plan to the Governor and the Legislature at the beginning of each regular session. The plan must:

             (1) Identify and assess the plans and programs of the Department for the provision of human services, and any duplication of those services by federal, state and local agencies;

             (2) Set forth priorities for the provision of those services;

             (3) Provide for communication and the coordination of those services among nonprofit organizations, agencies of local government, the State and the Federal Government;

             (4) Identify the sources of funding for services provided by the Department and the allocation of that funding;

             (5) Set forth sufficient information to assist the Department in providing those services and in the planning and budgeting for the future provision of those services; and

             (6) Contain any other information necessary for the Department to communicate effectively with the Federal Government concerning demographic trends, formulas for the distribution of federal money and any need for the modification of programs administered by the Department.

      (e) May, by regulation, require nonprofit organizations and state and local governmental agencies to provide information regarding the programs of those organizations and agencies, excluding detailed information relating to their budgets and payrolls, which the Director deems necessary for the performance of the duties imposed upon him or her pursuant to this section.

      (f) Has such other powers and duties as are provided by law.

      2.  Notwithstanding any other provision of law, the Director, or the Director’s designee, is responsible for appointing and removing subordinate officers and employees of the Department, other than the State Public Defender of the Office of State Public Defender who is appointed pursuant to NRS 180.010.

      Sec. 13.  1.  This section becomes effective upon passage and approval.

      2.  Sections 1 to 12, inclusive, of this act become effective upon passage and approval for the purpose of performing any tasks necessary to obtain the approval of the Centers for Medicare and Medicaid Services for a program established pursuant to section 11 of this act.

      3.  For all other purposes:

      (a) Sections 1 to 10, inclusive, and 12 of this act become effective on the date on which a program to provide increased capitation payments to governmental providers for ground emergency medical transportation services established pursuant to section 11 of this act is approved by the Centers for Medicare and Medicaid Services; and

      (b) Section 11 of this act becomes effective on the date that a program to provide increased capitation payments to governmental providers for ground emergency medical transportation services established pursuant to that section is approved by the Centers for Medicare and Medicaid Services.

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κ2017 Statutes of Nevada, Page 2198κ

 

CHAPTER 357, SB 137

Senate Bill No. 137–Senators Woodhouse, Spearman, Parks, Hardy, Ford; Atkinson, Cancela, Cannizzaro, Denis, Farley, Manendo, Ratti and Segerblom

 

CHAPTER 357

 

[Approved: June 4, 2017]

 

AN ACT relating to veterans; requiring certain state agencies and regulatory bodies to include certain questions on the forms used to collect data from a veteran; removing the prospective expiration of the Account to Assist Veterans Who Have Suffered Sexual Trauma and the duty of the Director of the Department of Veterans Services to develop plans and programs to assist veterans who have suffered sexual trauma; eliminating the requirement to transfer any remaining balance in the Account; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law requires certain state agencies and regulatory bodies to collect and report to the Interagency Council on Veterans Affairs certain data relating to veterans. (NRS 417.0194, 622.120) Sections 1 and 2 of this bill require such a state agency or regulatory body to include the following questions on each form used to collect data from a veteran: (1) “Have you ever served on active duty in the Armed Forces of the United States and separated from such service under conditions other than dishonorable?”; (2) “Have you ever been assigned to duty for a minimum of 6 continuous years in the National Guard or a reserve component of the Armed Forces of the United States and separated from such service under conditions other than dishonorable?”; and (3) “Have you ever served the Commissioned Corps of the United States Public Health Service or the Commissioned Corps of the National Oceanic and Atmospheric Administration of the United States in the capacity of a commissioned officer while on active duty in defense of the United States and separated from such service under conditions other than dishonorable?”

      Existing law: (1) requires the Director and Deputy 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 (2) creates the Account to Assist Veterans Who Have Suffered Sexual Trauma in the State General Fund. (NRS 417.090, 417.119) These provisions prospectively expire on June 30, 2017, and any remaining balance in the Account on that date is required to be transferred to the Gift Account for Veterans. (Sections 4.7 and 5 of chapter 246, Statutes of Nevada 2015, p. 1168) Section 3 of this bill repeals the prospective expiration of the requirement to develop plans and programs to assist veterans who have suffered sexual trauma and the Account, thereby maintaining both the requirement to develop plans and programs and the Account after June 30, 2017. Because of the continuation of the Account, section 3 also eliminates the requirement to transfer any remaining balance in the Account on June 30, 2017.

 

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 417.0194 is hereby amended to read as follows:

      417.0194  1.  Each state agency and regulatory body identified in subsections 2 to 15, inclusive, shall report, subject to any limitations or restrictions contained in any state or federal law governing the privacy or confidentiality of records, the data identified in subsections 2 to [15,] 16, inclusive, as applicable, to the Interagency Council on Veterans Affairs.

 


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restrictions contained in any state or federal law governing the privacy or confidentiality of records, the data identified in subsections 2 to [15,] 16, inclusive, as applicable, to the Interagency Council on Veterans Affairs. Each state agency and regulatory body shall submit such information to the Council not later than November 30 of each year and shall provide the information in aggregate and in digital form, and in a manner such that the data is capable of integration by the Council.

      2.  The Department of Administration shall provide:

      (a) Descriptions of and the total amount of the grant dollars received for veteran-specific programs;

      (b) The total number of veterans employed by each agency in the State; and

      (c) The total number of veterans with service-connected disabilities who are seeking preferences through the Purchasing Division and the State Public Works Division of the Department of Administration pursuant to NRS 333.3366 and 338.13844.

      3.  The State Department of Conservation and Natural Resources shall provide the total number of veterans receiving:

      (a) Expedited certification for the grade I certification examination for wastewater treatment plant operators based on their military experience; and

      (b) Any discounted fees for access to or the use of state parks.

      4.  The Department of Corrections shall provide:

      (a) An annual overview of the monthly population of inmates in this State who are veterans; and

      (b) The success rates for any efforts developed by the Incarcerated Veterans Reintegration Council.

      5.  The Office of Economic Development shall provide an overview of the workforce that is available statewide of veterans, organized by O*NET-SOC code from the United States Department of Labor or the trade, job title, employment status, zip code, county, highest education level and driver’s license class.

      6.  The Department of Education shall provide the distribution of dependents of service members enrolled in Nevada’s public schools.

      7.  The Department of Employment, Training and Rehabilitation shall provide a summary of:

      (a) The average number of veterans served by a veteran employment specialist of the Department per week;

      (b) The average number of initial and continuing claims for benefits filed per week by veterans pursuant to NRS 612.455 to 612.530, inclusive;

      (c) The average weekly benefit received by veterans receiving benefits pursuant to chapter 612 of NRS; and

      (d) The average duration of a claim by claimants who are veterans receiving benefits pursuant to chapter 612 of NRS.

      8.  The Department of Health and Human Services shall provide:

      (a) The total number of veterans who have applied for and received certification as an Emergency Medical Technician-B, Advanced Emergency Medical Technician and Paramedic through the State Emergency Medical Systems program; and

      (b) A report from the State Registrar of Vital Statistics setting forth the suicide mortality rate of veterans in this State.

      9.  The Department of Motor Vehicles shall provide:

 


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      (a) The total number of veterans who have declared themselves as a veteran and who applied for and received a commercial driver’s license;

      (b) The average monthly total of veteran license plates issued; and

      (c) An overview of the data on veterans collected pursuant to NRS 483.292, 483.852 and 483.927.

      10.  The Adjutant General shall provide the total number of:

      (a) Members of the Nevada National Guard using waivers for each semester and identifying which schools accepted the waivers;

      (b) Members of the Nevada National Guard identified by Military Occupational Specialty and zip code; and

      (c) Members of the Nevada National Guard employed under a grant from Beyond the Yellow Ribbon.

      11.  The Department of Public Safety shall provide the percentage of veterans in each graduating class of its academy for training peace officers.

      12.  The Department of Taxation shall provide the total number of veterans receiving tax exemptions pursuant to NRS 361.090, 361.091, 361.155, 371.103 and 371.104.

      13.  The Department of Wildlife shall provide the total number of:

      (a) Veterans holding hunting or fishing licenses based on disability; and

      (b) Service members holding hunting or fishing licenses who are residents of this State but are stationed outside this State.

      14.  The Commission on Postsecondary Education shall provide, by industry, the total number of schools in this State approved by the United States Department of Veterans Affairs that are serving veterans.

      15.  Each regulatory body shall provide the total number of veterans and service members applying for licensure by the regulatory body.

      16.  Each state agency and regulatory body identified in subsections 2 to 15, inclusive, shall ensure that the form used to collect data from a veteran, including, without limitation, a digital form posted on an Internet website, includes the following questions:

      (a) “Have you ever served on active duty in the Armed Forces of the United States and separated from such service under conditions other than dishonorable?”

      (b) “Have you ever been assigned to duty for a minimum of 6 continuous years in the National Guard or a reserve component of the Armed Forces of the United States and separated from such service under conditions other than dishonorable?”

      (c) “Have you ever served the Commissioned Corps of the United States Public Health Service or the Commissioned Corps of the National Oceanic and Atmospheric Administration of the United States in the capacity of a commissioned officer while on active duty in defense of the United States and separated from such service under conditions other than dishonorable?”

      17.  The Council shall, upon receiving the information submitted pursuant to this section, synthesize and compile the information, including any recommendations of the Council, and submit the information with the report submitted pursuant to subsection 8 of NRS 417.0195.

      [17.]18.  As used in this section:

      (a) “Regulatory body” has the meaning ascribed to it in NRS 622.060.

      (b) “Service member” has the meaning ascribed to it in NRS 125C.0635.

 


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      Sec. 2. NRS 622.120 is hereby amended to read as follows:

      622.120  1.  If a regulatory body collects information regarding whether an applicant for a license is a veteran, the regulatory body shall prepare and submit to the Interagency Council on Veterans Affairs created by NRS 417.0191 an annual report which provides information on the number of veterans who have:

      (a) Applied for a license from the regulatory body.

      (b) Been issued a license by the regulatory body.

      (c) Renewed a license with the regulatory body.

      2.  If a regulatory body collects information regarding whether an applicant for a license is a veteran, the form used by the regulatory body, including, without limitation, a digital form posted on an Internet website, shall include the following questions:

      (a) “Have you ever served on active duty in the Armed Forces of the United States and separated from such service under conditions other than dishonorable?”

      (b) “Have you ever been assigned to duty for a minimum of 6 continuous years in the National Guard or a reserve component of the Armed Forces of the United States and separated from such service under conditions other than dishonorable?”

      (c) “Have you ever served the Commissioned Corps of the United States Public Health Service or the Commissioned Corps of the National Oceanic and Atmospheric Administration of the United States in the capacity of a commissioned officer while on active duty in defense of the United States and separated from such service under conditions other than dishonorable?”

      3.  As used in this section, “veteran” has the meaning ascribed to it in NRS 417.005.

      Sec. 3. Section 5 of chapter 246, Statutes of Nevada 2015, at page 1168, is hereby amended to read as follows:

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

      Sec. 3.3.  Notwithstanding the amendatory provisions of this act, if collecting the information newly required by this act requires the revision of a paper form or an electronic form or changes to a computer system, an agency or other regulatory body is not required to collect the information until the earlier of 2 years after the effective date of this act or the date on which:

      1.  The inventory of paper forms in stock or ordered before the effective date of this act is used; or

      2.  The revised electronic form or required changes to the computer system are completed.

      Sec. 3.5.  The provisions of subsection 1 of NRS 218D.380 do not apply to any provision of this act which adds or revises a requirement to submit a report to the Legislature.

      Sec. 4. Section 4.7 of chapter 246, Statutes of Nevada 2015, at page 1168, is hereby repealed.

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

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κ2017 Statutes of Nevada, Page 2202κ

 

CHAPTER 358, SB 138

Senate Bill No. 138–Senator Hardy

 

CHAPTER 358

 

[Approved: June 4, 2017]

 

AN ACT relating to local improvements; authorizing the creation of a local improvement district for a waterfront maintenance project; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law authorizes the governing body of any county, city or unincorporated town to create an improvement district for the acquisition, improvement, equipping, operation and maintenance of certain projects, including a waterfront project, and to finance the cost of any such project through such methods as the issuance of certain bonds and the levy of assessments upon property in the improvement district. (NRS 271.265, 271.270, 271.325) Existing law also authorizes a county, city or unincorporated town to levy an assessment for ongoing maintenance, operations, improvements or repairs of certain projects after their installation, including a transportation project, a neighborhood improvement project, a street beautification project and other projects requiring extraordinary maintenance, repairs or improvements which are located in certain redevelopment areas. (NRS 271.369, 271.3695, 271.377, 271.378) A governing body is authorized to combine authorized projects in a single improvement district if the governing body determines such projects may be combined in an efficient and economical manner. (NRS 271.295)

      Sections 2 and 5 of this bill authorize a county, city or unincorporated town to establish a local improvement district to fund a waterfront maintenance project, the purpose of which is to provide ongoing repairs or maintenance in relation to a public body of water or public property that is located along the shore of a public body of water. A waterfront maintenance project may be combined in the same district with a waterfront project. (NRS 271.295) However, section 7 of this bill prohibits the acquisition of a waterfront maintenance project if the local government receives written objections to the project from owners of tracts in the proposed assessment district constituting 50 percent of the basis for the computation of assessments.

      Section 3 of this bill requires the governing body of a local government which has established a local improvement district for a waterfront maintenance project to annually prepare an estimate of expenditures for the next year and a proposed assessment roll for the district. Section 3 also requires the governing body to conduct a public hearing on the estimate of costs and assessment roll. Finally, section 3 requires that the proceeds of the assessment be placed in a separate fund and only used for the cost of the waterfront maintenance project.

 

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

      Sec. 2. 1.  “Waterfront maintenance project” means any maintenance or repair, regardless of whether performed in conjunction with a waterfront project, to:

      (a) Public property that is located along the shore of a public body of water; or

      (b) Areas within or under a public body of water.

 


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      2.  The term includes, without limitation, maintenance and repair of restrooms, fishing sites, boardwalks, decks, boat ramps, utilities, facilities for controlling drainage, parking facilities, sidewalks, benches, bulkheads, and retaining walls and lighting equipment and dredging for boat ways, erosion protection, environmental mitigation, landscaping, pumping and excavation, and all appurtenances and incidentals thereto.

      Sec. 3. 1.  On or before June 30 of each year after the creation of a district for a waterfront maintenance project, the governing body shall prepare and approve an estimate of the costs required during the next fiscal year and a proposed assessment roll assessing an amount not in excess of those estimated costs against the benefited property. The basis for the computation of the assessments must be:

      (a) If the waterfront maintenance project is performed in conjunction with a waterfront project:

             (1) The frontage;

             (2) The same basis that is used for the computation of the assessments for the waterfront project; or

             (3) Any other basis that the governing body determines is proportional to the benefits received, which determination is conclusive, absent fraud.

      (b) If the waterfront maintenance project is not performed in conjunction with a waterfront project:

             (1) The frontage; or

             (2) Any other basis the governing body determines is proportional to the benefits received, which determination is conclusive, absent fraud.

      2.  A public hearing must be conducted on the estimate of costs for the next year and the assessment roll. Notice of the hearing must be given, and the hearing conducted, in the manner described in NRS 271.380 and 271.385. The proposed assessments must not exceed the estimated amount specified in the original assessment plat unless a new hearing, after published and mailed notice, is held in the manner described in NRS 271.305, 271.306 and 271.310.

      3.  After the public hearing on the assessment roll, the governing body shall, by resolution or ordinance, confirm the assessments as specified in the roll or as modified, and levy the assessment as provided in NRS 271.390.

      4.  The assessments must be due over a period of 1 year after the effective date of the resolution or ordinance confirming the assessments. The assessments may be made payable at one time or in two or more installments over that period. Interest may not be charged on an assessment or installment paid when due.

      5.  The proceeds of the assessment must be placed in a separate fund of the municipality and expended only for the costs of the waterfront maintenance project.

      6.  The municipality has no obligation to pay any costs of a waterfront maintenance project except from the assessments collected pursuant to this section.

      Sec. 4. NRS 271.030 is hereby amended to read as follows:

      271.030  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 271.035 to 271.253, inclusive, and section 2 of this act have the meanings ascribed to them in those sections.

 


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κ2017 Statutes of Nevada, Page 2204 (CHAPTER 358, SB 138)κ

 

      Sec. 5. NRS 271.265 is hereby amended to read as follows:

      271.265  1.  The governing body of a county, city or town, upon behalf of the municipality and in its name, without any election, may from time to time acquire, improve, equip, operate and maintain, within or without the municipality, or both within and without the municipality:

      (a) A curb and gutter project;

      (b) A drainage project;

      (c) An energy efficiency improvement project;

      (d) A neighborhood improvement project;

      (e) An off-street parking project;

      (f) An overpass project;

      (g) A park project;

      (h) A public safety project;

      (i) A renewable energy project;

      (j) A sanitary sewer project;

      (k) A security wall;

      (l) A sidewalk project;

      (m) A storm sewer project;

      (n) A street project;

      (o) A street beautification project;

      (p) A transportation project;

      (q) An underpass project;

      (r) A water project;

      (s) A waterfront project; [and]

      (t) A waterfront maintenance project; and

      (u) Any combination of such projects.

      2.  In addition to the power specified in subsection 1, the governing body of a city having a commission form of government as defined in NRS 267.010, upon behalf of the municipality and in its name, without any election, may from time to time acquire, improve, equip, operate and maintain, within or without the municipality, or both within and without the municipality:

      (a) An electrical project;

      (b) A telephone project;

      (c) A combination of an electrical project and a telephone project;

      (d) A combination of an electrical project or a telephone project with any of the projects, or any combination thereof, specified in subsection 1; and

      (e) A combination of an electrical project and a telephone project with any of the projects, or any combination thereof, specified in subsection 1.

      3.  In addition to the power specified in subsections 1 and 2, the governing body of a municipality, on behalf of the municipality and in its name, without an election, may finance an underground conversion project with the approval of each service provider that owns the overhead service facilities to be converted.

      4.  In addition to the power specified in subsections 1, 2 and 3, if the governing body of a municipality in a county whose population is less than 700,000 complies with the provisions of NRS 271.650, the governing body of the municipality, on behalf of the municipality and in its name, without any election, may from time to time acquire, improve, equip, operate and maintain, within or without the municipality, or both within and without the municipality:

 


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κ2017 Statutes of Nevada, Page 2205 (CHAPTER 358, SB 138)κ

 

      (a) An art project; and

      (b) A tourism and entertainment project.

      5.  In addition to the power specified in this section, if a qualified project is located within the jurisdiction of the municipality, the governing body of the municipality, on behalf of the municipality and in its name, without any election, may from time to time acquire, improve, equip, operate and maintain, within or without the municipality, or both within and without the municipality, an electrical project for the qualified project or a fire protection project for the qualified project.

      6.  As used in this section, “qualified project” has the meaning ascribed to it in NRS 360.888 or 360.940.

      Sec. 6. NRS 271.280 is hereby amended to read as follows:

      271.280  1.  Whenever the governing body of a municipality determines to form an improvement district to conduct any project, the engineer shall prepare and file with the clerk:

      (a) Preliminary plans showing:

             (1) A typical section of the contemplated improvement.

             (2) The type or types of material, approximate thickness and wideness.

             (3) A preliminary estimate of the cost of the project, including incidental costs.

      (b) An assessment plat showing:

             (1) The area to be assessed.

             (2) Except as otherwise provided in NRS 271.378, and section 3 of this act, the amount of maximum benefits estimated to be assessed against each tract in the assessment area.

      (c) If a resolution of the governing body does not otherwise provide, the information required pursuant to the provisions of subsections 2 to 7, inclusive.

Κ The governing body is not required to employ the services of an appraiser to estimate or to assist the engineer in estimating the benefits to be derived from the project.

      2.  The preliminary plans may provide for one or more types of construction, and the engineer shall separately estimate the cost of each type of construction. The estimate may be made in a lump sum or by unit prices, as the engineer determines is most desirable for the improvement complete in place.

      3.  A resolution or document prepared by the engineer pursuant to subsection 1 must describe the project in general terms.

      4.  The resolution or document must state:

      (a) What part or portion of the expense of the project is of special benefit and therefore is to be paid by assessments.

      (b) What part, if any, has been or is proposed to be defrayed with money derived from other than the levy of assessments.

      (c) The basis by which the cost will be apportioned and assessments levied.

      5.  If the assessment is not to be made according to front feet, the resolution or document must:

      (a) By apt description designate the improvement district, including the tracts to be assessed.

      (b) Describe definitely the location of the project.

 


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κ2017 Statutes of Nevada, Page 2206 (CHAPTER 358, SB 138)κ

 

      (c) State that the assessment is to be made upon all the tracts benefited by the project proportionately to the benefits received.

      6.  If the assessment is to be upon the abutting property upon a frontage basis, it is sufficient for the resolution or document so to state and to define the location of the project to be made.

      7.  It is not necessary in any case to describe minutely in the resolution or document each particular tract to be assessed, but simply to designate the property, improvement district or the location, so that the various parts to be assessed can be ascertained and determined to be within or without the proposed improvement district.

      8.  If the preliminary plans include a neighborhood improvement project, then in addition to the other requirements in this section, before the plans are ratified by the governing body, the plans must include a plan for the management of the proposed improvement district which must include, without limitation:

      (a) The improvements proposed for each year of the first 5 fiscal years of the proposed improvement district;

      (b) An estimate of the total amount to be expended on improvements in the first year of operation;

      (c) A list of any other special assessments that are currently being levied within the proposed improvement district;

      (d) The name of any proposed association; and

      (e) Any other matter that the governing body requires to be set forth in the plan.

      9.  Upon the filing of the plans, plat and, if the engineer prepares a document pursuant to paragraph (c) of subsection 1, the document prepared by the engineer pursuant to paragraph (c) of subsection 1, they must be examined by the governing body. If the plans, plat and document, if any, are found to be satisfactory, the governing body shall make a provisional order by resolution to the effect that the project will be acquired or improved, or both acquired and improved.

      Sec. 7. NRS 271.306 is hereby amended to read as follows:

      271.306  1.  Regardless of the basis used for apportioning assessments, the amount apportioned to a wedge or V or any other irregularly shaped tract must be in proportion to the special benefits thereby derived.

      2.  Except as otherwise provided in subsections 3 and 4, if, within the time specified in the notice, complaints, protests and objections in writing, that is, all written remonstrances, against acquiring or improving the project proposed by initiation of the governing body are filed with the clerk, signed by the owners of tracts constituting a majority of the frontage, of the area, of the zone, or of the other basis for the computation of assessments, as the case may be, of the tracts to be assessed in the improvement district or in the assessment unit if the improvement district is divided into assessment units, the project therein must not be acquired or improved unless:

      (a) The municipality pays one-half or more of the total cost of the project, other than a park project, with money derived from other than the levy of assessments; or

      (b) The project constitutes not more than 2,640 feet, including intersections, remaining unimproved in any street, including an alley, between improvements already made to either side of the same street or between improvements already made to intersecting streets. In this case the governing body may on its own motion cause the intervening and unimproved part of the street to be improved.

 


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unimproved part of the street to be improved. Such improvements will not be stayed or defeated or prevented by written complaints, protests and objections thereto, unless the governing body in its sole discretion, deems such written complaints, protests and objections proper to cause the improvement to be stayed or prevented.

      3.  Written remonstrances by the owners of tracts constituting 50 percent of the basis for the computation of assessments suffice to preclude the acquisition or improvement of a street beautification project [.] or waterfront maintenance project.

      4.  Written remonstrances by the owners of tracts constituting at least one-third of the basis for the computation of assessments suffice to preclude the acquisition or improvement of a neighborhood improvement project. For the purposes of this subsection, the property of a single owner may not be counted as constituting more than 10 percent of the basis.

      Sec. 8. NRS 271A.020 is hereby amended to read as follows:

      271A.020  As used in this chapter, except as otherwise provided in NRS 271A.030 to 271A.060, inclusive, and unless the context otherwise requires, the words and terms defined in NRS 271.035 to 271.253, inclusive, and section 2 of this act and 271A.030 to 271A.060, inclusive, have the meanings ascribed to them in those sections.

      Sec. 9.  This act becomes effective on July 1, 2017.

________

CHAPTER 359, SB 262

Senate Bill No. 262–Senator Farley

 

CHAPTER 359

 

[Approved: June 4, 2017]

 

AN ACT relating to health care; requiring that payments for treatment relating solely to mental health or the abuse of alcohol or drugs be made directly to certain providers of that treatment; requiring a licensed clinical alcohol and drug counselor to be directly reimbursed for providing treatment under certain circumstances; revising provisions relating to the accreditation of medical facilities and facilities for the dependent for the purpose of determining whether an insured person is entitled to benefits for certain treatment provided at such facilities; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law provides for treatment relating to the abuse of alcohol or drugs to be covered by certain policies of health insurance and, under certain circumstances, provided by employers. (NRS 608.156, 689A.030, 689A.046, 689C.166, 689C.167) Existing law provides that under certain policies of health insurance, an insured party is entitled to reimbursement for treatment by a clinical alcohol and drug abuse counselor. (NRS 689A.0493, 689B.0397, 695B.1955, 695C.1789) Existing law further requires certain policies of health insurance to cover treatment for mental illness. (NRS 687B.404, 689A.0455, 689C.169) Existing law does not prevent a person who is receiving treatment for mental illness or the abuse of alcohol or drugs from receiving the payments for such treatment.

 


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      Section 1 of this bill requires that a payment made pursuant to a policy of health insurance for treatment relating solely to mental health or the abuse of alcohol or drugs must be made directly to the provider of the treatment rather than to the person receiving the treatment if the provider is an out-of-network provider who has an assignment of benefits which meets certain qualifications. Section 1 also expressly requires such a provider to refund to a person who pays such a provider directly for such treatment certain amounts that the person paid to the provider. For example, a person may have prepaid the provider for treatment and, after the payment pursuant to the policy of health insurance is made to the provider, the provider may need to refund all or part of the prepaid amounts to the person receiving treatment. Section 9 of this bill extends the requirements of section 1 to benefits provided through self-insurance by the Board of the Public Employees’ Benefits Program. (NRS 287.04335) Section 10 of this bill extends the requirements of section 1 to benefits provided by certain employers. (NRS 608.1555)

      Sections 3, 4, 6 and 7 of this bill provide that a licensed clinical alcohol and drug abuse counselor must, if applicable, be directly reimbursed for treatment relating to the abuse of alcohol or drugs in accordance with an applicable assignment of benefits.

      Sections 2, 5 and 11 of this bill make conforming changes.

 

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 687B of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  Every payment made pursuant to a policy of health insurance to pay for treatment relating solely to mental health or the abuse of alcohol or drugs must be made directly to the provider of health care that provides the treatment if the provider:

      (a) Is an out-of-network provider; and

      (b) Has obtained and delivered to the insurer or an authorized representative of the insurer, including, without limitation, a third-party administrator, a written assignment of benefits pursuant to which the insured has assigned to the provider the insured’s benefits under the policy of health insurance with regard to the treatment.

      2.  An out-of-network provider that receives payment pursuant to subsection 1:

      (a) Shall, if a person paid the provider directly for the treatment described in subsection 1, refund to the person the amount that the person paid directly to the provider for the treatment, less any applicable deductible, copayment or coinsurance, not later than 45 days after the provider receives payment pursuant to subsection 1; and

      (b) Must indemnify and hold harmless the insurer against any claim made against the insurer by the person who receives the treatment described in subsection 1 for any amount paid by the insurer to the provider in compliance with this section.

      3.  An assignment of benefits described in paragraph (b) of subsection 1 is irrevocable for the period:

      (a) Beginning on the date the insured gives to the out-of-network provider the assignment of benefits; and

      (b) Ending on the later of:

             (1) The date on which the out-of-network provider receives from the insurer the final payment for the treatment; or

 


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             (2) The date of the final resolution, including, without limitation, by settlement or trial, of all claims relating to all payments which relate to the treatment.

      4.  Nothing in this section shall be construed to require an insurer to make a payment to an out-of-network provider:

      (a) Who is not authorized by law to provide the treatment;

      (b) Who provides the treatment in violation of any law; or

      (c) In an amount which exceeds the amount required by the policy of health insurance to be paid for out-of-network treatment.

      5.  As used in this section:

      (a) “Health care services” means services for the diagnosis, prevention, treatment, care or relief of a health condition, illness, injury or disease.

      (b) “Insured” means a person who receives benefits pursuant to a policy of health insurance.

      (c) “Insurer” means a person, including, without limitation, a governmental entity, who issues or otherwise provides a policy of health insurance.

      (d) “Network plan” has the meaning ascribed to it in NRS 689B.570.

      (e) “Out-of-network provider” means a provider of health care who:

             (1) Provides health care services;

             (2) Is paid, pursuant to a policy of health insurance, for providing the health care services; and

             (3) Is not under contract to provide the health care services as part of any network plan associated with the policy of health insurance.

      (f) “Policy of health insurance” includes, without limitation, a policy, contract, certificate, plan or agreement, as applicable, issued pursuant to or otherwise governed by NRS 287.0402 to 287.049, inclusive, or chapter 608, 689A, 689B, 689C, 695A, 695B, 695C, 695F or 695G of NRS for the provision of, delivery of, arrangement for, payment for or reimbursement for any of the costs of health care services.

      (g) “Provider of health care” has the meaning ascribed to it in NRS 695G.070.

      Sec. 2. NRS 689A.046 is hereby amended to read as follows:

      689A.046  1.  The benefits provided by a policy for health insurance for treatment of the abuse of alcohol or drugs must consist of:

      (a) Treatment for withdrawal from the physiological effect of alcohol or drugs, with a minimum benefit of $1,500 per calendar year.

      (b) Treatment for a patient admitted to a facility, with a minimum benefit of $9,000 per calendar year.

      (c) Counseling for a person, group or family who is not admitted to a facility, with a minimum benefit of $2,500 per calendar year.

      2.  [These] Except as otherwise provided in section 1 of this act, these benefits must be paid in the same manner as benefits for any other illness covered by a similar policy are paid.

      3.  The insured person is entitled to these benefits if treatment is received in any:

      (a) Facility for the treatment of abuse of alcohol or drugs which is certified by the Division of Public and Behavioral Health of the Department of Health and Human Services.

      (b) Hospital or other medical facility or facility for the dependent which is licensed by the Division of Public and Behavioral Health of the Department of Health and Human Services, accredited by [the] The Joint Commission [on Accreditation of Healthcare Organizations] or CARF International and provides a program for the treatment of abuse of alcohol or drugs as part of its accredited activities.

 


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Department of Health and Human Services, accredited by [the] The Joint Commission [on Accreditation of Healthcare Organizations] or CARF International and provides a program for the treatment of abuse of alcohol or drugs as part of its accredited activities.

      Sec. 3. NRS 689A.0493 is hereby amended to read as follows:

      689A.0493  If any policy of health insurance provides coverage for treatment of an illness which is within the authorized scope of practice of a licensed clinical alcohol and drug abuse counselor, the insured is entitled to reimbursement for treatment by a clinical alcohol and drug abuse counselor who is licensed pursuant to chapter 641C of NRS [.] unless the clinical alcohol and drug abuse counselor must be directly reimbursed pursuant to:

      1.  An assignment of benefits described in section 1 of this act; or

      2.  Any other applicable assignment of benefits.

      Sec. 4. NRS 689B.0397 is hereby amended to read as follows:

      689B.0397  If any policy of group health insurance provides coverage for treatment of an illness which is within the authorized scope of practice of a licensed clinical alcohol and drug abuse counselor, the insured is entitled to reimbursement for treatment by a clinical alcohol and drug abuse counselor who is licensed pursuant to chapter 641C of NRS [.] unless the clinical alcohol and drug abuse counselor must be directly reimbursed pursuant to:

      1.  An assignment of benefits described in section 1 of this act; or

      2.  Any other applicable assignment of benefits.

      Sec. 5. NRS 689C.167 is hereby amended to read as follows:

      689C.167  1.  The benefits provided by a group policy for health insurance, as required by NRS 689C.166, for the treatment of abuse of alcohol or drugs must consist of:

      (a) Treatment for withdrawal from the physiological effects of alcohol or drugs, with a minimum benefit of $1,500 per calendar year.

      (b) Treatment for a patient admitted to a facility, with a minimum benefit of $9,000 per calendar year.

      (c) Counseling for a person, group or family who is not admitted to a facility, with a minimum benefit of $2,500 per calendar year.

      2.  [These] Except as otherwise provided in section 1 of this act, these benefits must be paid in the same manner as benefits for any other illness covered by a similar policy are paid.

      3.  The insured person is entitled to these benefits if treatment is received in any:

      (a) Facility for the treatment of abuse of alcohol or drugs which is certified by the Division of Public and Behavioral Health of the Department of Health and Human Services.

      (b) Hospital or other medical facility or facility for the dependent which is licensed by the Division of Public and Behavioral Health of the Department of Health and Human Services, is accredited by [the] The Joint Commission [on Accreditation of Healthcare Organizations] or CARF International and provides a program for the treatment of abuse of alcohol or drugs as part of its accredited activities.

      Sec. 6. NRS 695B.1955 is hereby amended to read as follows:

      695B.1955  If any contract for hospital or medical service provides coverage for treatment of an illness which is within the authorized scope of practice of a licensed clinical alcohol and drug abuse counselor, the insured is entitled to reimbursement for treatment by a clinical alcohol and drug abuse counselor who is licensed pursuant to chapter 641C of NRS [.]

 


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abuse counselor who is licensed pursuant to chapter 641C of NRS [.] unless the clinical alcohol and drug abuse counselor must be directly reimbursed pursuant to:

      1.  An assignment of benefits described in section 1 of this act; or

      2.  Any other applicable assignment of benefits.

      Sec. 7. NRS 695C.1789 is hereby amended to read as follows:

      695C.1789  If any evidence of coverage provides coverage for treatment of an illness which is within the authorized scope of practice of a licensed clinical alcohol and drug abuse counselor, the insured is entitled to reimbursement for treatment by a clinical alcohol and drug abuse counselor who is licensed pursuant to chapter 641C of NRS [.] unless the clinical alcohol and drug abuse counselor must be directly reimbursed pursuant to:

      1.  An assignment of benefits described in section 1 of this act; or

      2.  Any other applicable assignment of benefits.

      Sec. 8. (Deleted by amendment.)

      Sec. 9. NRS 287.04335 is hereby amended to read as follows:

      287.04335  If the Board provides health insurance through a plan of self-insurance, it shall comply with the provisions of NRS 689B.255, 695G.150, 695G.160, 695G.162, 695G.164, 695G.1645, 695G.1665, 695G.167, 695G.170 to 695G.173, inclusive, 695G.177, 695G.200 to 695G.230, inclusive, 695G.241 to 695G.310, inclusive, and 695G.405, and section 1 of this act in the same manner as an insurer that is licensed pursuant to title 57 of NRS is required to comply with those provisions.

      Sec. 10. NRS 608.1555 is hereby amended to read as follows:

      608.1555  Any employer who provides benefits for health care to his or her employees shall provide the same benefits and pay providers of health care in the same manner as a policy of insurance pursuant to chapters 689A and 689B of NRS [.] , including, without limitation, as required by section 1 of this act.

      Sec. 11. NRS 608.156 is hereby amended to read as follows:

      608.156  1.  If an employer provides health benefits for his or her employees, the employer shall provide benefits for the expenses for the treatment of abuse of alcohol and drugs. The annual benefits provided by the employer must consist of:

      (a) Treatment for withdrawal from the physiological effects of alcohol or drugs, with a maximum benefit of $1,500 per calendar year.

      (b) Treatment for a patient admitted to a facility, with a maximum benefit of $9,000 per calendar year.

      (c) Counseling for a person, group or family who is not admitted to a facility, with a maximum benefit of $2,500 per calendar year.

      2.  The maximum amount which may be paid in the lifetime of the insured for any combination of the treatments listed in subsection 1 is $39,000.

      3.  [These] Except as otherwise provided in section 1 of this act, these benefits must be paid in the same manner as benefits for any other illness covered by the employer are paid.

      4.  The employee is entitled to these benefits if treatment is received in any:

      (a) Program for the treatment of abuse of alcohol or drugs which is certified by the Division of Public and Behavioral Health of the Department of Health and Human Services.

 


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      (b) Hospital or other medical facility or facility for the dependent which is licensed by the Division of Public and Behavioral Health of the Department of Health and Human Services, is accredited by The Joint Commission or CARF International and provides a program for the treatment of abuse of alcohol or drugs as part of its accredited activities.

      Sec. 12.  This act becomes effective on January 1, 2018.

________

CHAPTER 360, SB 337

Senate Bill No. 337–Senator Settelmeyer

 

CHAPTER 360

 

[Approved: June 4, 2017]

 

AN ACT relating to pharmacists; requiring the State Board of Pharmacy to adopt regulations pertaining to the collection of specimens and performance of certain laboratory tests by a registered pharmacist; authorizing a registered pharmacist to manipulate a person for the collection of specimens; authorizing a registered pharmacist to perform certain laboratory tests without obtaining certification as an assistant in a medical laboratory; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law prohibits persons other than certain licensed health care professionals from manipulating a person for the collection of specimens. In addition, existing law authorizes such licensed medical professionals to perform any laboratory test which is classified as a waived test pursuant to Subpart A of Part 493 of Title 42 of the Code of Federal Regulations without obtaining certification as an assistant in a medical laboratory. (NRS 652.210) Section 2 of this bill authorizes a registered pharmacist to manipulate a person for the collection of specimens and perform such laboratory tests without obtaining certification as an assistant in a medical laboratory.

      Section 1 of this bill requires the State Board of Pharmacy to adopt regulations that are necessary to carry out the provisions of section 2 with regard to a registered pharmacist. Section 1 further specifies that such regulations must: (1) require a registered pharmacist to use only a fingerstick or oral or nasal swab to collect the specimens pursuant to section 2; and (2) set forth the procedures and requirements with which a registered pharmacist must comply when performing the duties authorized by section 2.

 

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 639 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  The Board shall adopt such regulations as are necessary to carry out the provisions of NRS 652.210 with regard to a registered pharmacist, including, without limitation, regulations that:

      (a) Require a registered pharmacist to use only a fingerstick or oral or nasal swab to collect the specimens pursuant to NRS 652.210; and

 


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      (b) Set forth the procedures and requirements with which a registered pharmacist shall comply when manipulating a person for the collection of specimens or performing any laboratory test pursuant to NRS 652.210.

      2.  As used in this section, “fingerstick” means a procedure in which a finger is pricked with a lancet, small blade or other instrument to obtain a small quantity of blood for any laboratory test pursuant to NRS 652.210.

      Sec. 2. NRS 652.210 is hereby amended to read as follows:

      652.210  1.  Except as otherwise provided in subsection 2 and NRS 126.121 and 652.186, no person other than a licensed physician, a licensed optometrist, a licensed practical nurse, a registered nurse, a perfusionist, a physician assistant licensed pursuant to chapter 630 or 633 of NRS, a certified advanced emergency medical technician, a certified paramedic, a practitioner of respiratory care licensed pursuant to chapter 630 of NRS , [or] a licensed dentist or a registered pharmacist may manipulate a person for the collection of specimens. The persons described in this subsection may perform any laboratory test which is classified as a waived test pursuant to Subpart A of Part 493 of Title 42 of the Code of Federal Regulations without obtaining certification as an assistant in a medical laboratory pursuant to NRS 652.127.

      2.  The technical personnel of a laboratory may collect blood, remove stomach contents, perform certain diagnostic skin tests or field blood tests or collect material for smears and cultures.

      Sec. 3.  This act becomes effective on July 1, 2017.

________

CHAPTER 361, SB 406

Senate Bill No. 406–Senator Hammond

 

CHAPTER 361

 

[Approved: June 4, 2017]

 

AN ACT relating to court reporters; revising the qualifications for a certificate of registration as a court reporter; authorizing the Certified Court Reporters’ Board of Nevada to take additional actions against certain unlicensed practices; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law provides that willfully altering a transcript of stenographic notes taken at any proceedings is a grounds for disciplinary action against a court reporter or court reporting firm. (NRS 656.250) Section 4 of this bill further prohibits, with limited exceptions, a court reporter or a court reporting firm from altering the record of a proceeding after the transcript of the proceeding has been certified.

      Sections 15, 20, 21, 24, 25, 29, 33 and 35 of this bill require licensed court reporting firms to comply with certain existing laws which apply to certified court reporters.

      Existing law prohibits any person from putting out a sign or card or other device which indicates to members of the public that the person is entitled to engage in the practice of court reporting or conduct business as a court reporting firm. (NRS 656.145, 656.185) Sections 10 and 15 of this bill prohibit the use of any identifying term by a natural person or business entity that may indicate to the public that the natural person or business entity is entitled to: (1) practice as a court reporter; or (2) conduct business as a court reporting firm.

 


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term by a natural person or business entity that may indicate to the public that the natural person or business entity is entitled to: (1) practice as a court reporter; or (2) conduct business as a court reporting firm.

      Existing law requires an applicant for a certificate of registration as a court reporter to pass an examination administered by the Certified Court Reporters’ Board of Nevada that includes a practical demonstration portion. (NRS 656.160, 656.180) Sections 12-14 of this bill: (1) eliminate the requirement for that portion of the examination and instead require such an applicant to receive a passing grade on one of two enumerated national examinations; (2) revise the requirements for admission to the examination administered by the Board; and (3) revise the qualifications of an applicant for a certificate of registration as a certified court reporter.

      Existing law authorizes the Attorney General of the State of Nevada, the district attorney of any county in the State or any resident to maintain an action in the name of the State of Nevada to enjoin any person from unlawfully engaging in the practice of court reporting or unlawfully conducting business as a court reporting firm without first obtaining a certificate or license or with a suspended or revoked certificate or license. (NRS 656.300) Section 29 of this bill instead authorizes the Board to impose administrative fines against, issue citations to, and issue and serve orders to cease and desist on natural persons who and business entities that engage in such unlicensed practices or conduct.

      Existing law provides that a person who violates any law or regulation governing court reporters and court reporting firms is subject to a civil penalty of not more than $5,000 for each violation. (NRS 656.360) Section 35 of this bill removes that provision and instead authorizes the Board, after notice and hearing, to impose upon a natural person or business entity who violates any law or regulation governing certified court reporters and court reporting firms an administrative fine of not more than $5,000 for each violation for which the administrative fine is imposed.

 

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

      Sec. 2.  (Deleted by amendment.)

      Sec. 3. 1.  The Board may maintain in any court of competent jurisdiction an action for an injunction against any natural person or business entity who violates any provision of this chapter.

      2.  Such an injunction:

      (a) May be issued without proof of actual damage sustained by any natural person or business entity.

      (b) Does not relieve such natural person or business entity from any criminal prosecution for the same violation.

      Sec. 4. 1.  Except as otherwise provided in subsection 2, a certified court reporter or licensee shall not alter the record of a proceeding after the transcript of the proceeding has been certified unless:

      (a) Each party to the proceeding stipulates to the alteration; or

      (b) The judge or arbiter presiding over the proceeding orders the alteration.

      2.  A licensee may, upon receiving a transcript from a certified court reporter for the purposes of reproducing and distributing the transcript, make typographical, clerical or other similar nonsubstantive alterations to the transcript if the licensee notifies the certified court reporter who certified the transcript of the proposed alterations and receives the approval of the certified court reporter for each alteration.

 


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certified the transcript of the proposed alterations and receives the approval of the certified court reporter for each alteration.

      Sec. 5. NRS 656.010 is hereby amended to read as follows:

      656.010  This chapter is known and may be cited as the Nevada Certified Court Reporters’ and Licensed Court Reporting Firms’ Law.

      Sec. 6. NRS 656.030 is hereby amended to read as follows:

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

      1.  “Board” means the Certified Court Reporters’ Board of Nevada.

      2.  “Business entity” means any form of business organization, including, without limitation, a corporation, partnership, sole proprietorship, limited-liability company or limited-liability partnership. The term does not include a natural person or governmental entity.

      3.  “Certificate” means a certified court reporter’s certificate issued under the provisions of this chapter.

      [3.] 4.  “Certified court reporter” [or “court reporter”] means a natural person who is technically qualified and registered under this chapter to practice court reporting.

      [4.] 5.  “Court reporting firm” means a [person who,] business entity that, for compensation, provides or arranges for the services of a certified court reporter or provides referral services for certified court reporters in this State.

      [5.] 6.  “Designated representative of a court reporting firm” means the natural person designated to act as the representative of a court reporting firm pursuant to NRS 656.186.

      [6.] 7.  “Distance education program” means a program that offers instruction which is delivered by the Internet in such a manner that the natural person supervising or providing the instruction and the natural person receiving the instruction are separated geographically for a majority of the time during which the instruction is delivered.

      [7.] 8.  “License” means a license issued under the provisions of this chapter to conduct business as a court reporting firm.

      [8.] 9.  “Licensee” means a [person] business entity to [whom] which a license has been issued.

      [9.] 10.  “Practice of court reporting” means reporting, in this State, by the use of voice writing or any system of manual or mechanical shorthand writing:

      (a) Grand jury proceedings;

      (b) Court proceedings, with the exception of proceedings before a federal court;

      (c) Pretrial examinations, depositions, motions and related proceedings of like character; or

      (d) Proceedings of any agency if the final decision of the agency with reference thereto is subject to judicial review.

      [10.] 11.  “Stenographic notes” means:

      (a) The original manually or mechanically produced notes in shorthand or shorthand writing taken by a certified court reporter while in attendance at a proceeding to report the proceeding; or

      (b) The record produced by the use of voice writing by a certified court reporter while in attendance at a proceeding.

      [11.] 12.  “Voice writing” means the making of a verbatim record of a proceeding by repeating the words of the speaker into a device that is capable of:

 


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      (a) Digitally translating the words into text; or

      (b) Making a tape or digital recording of those words.

Κ The term includes, without limitation, stenomasking, verbatim reporting and other similar titles.

      Sec. 7. NRS 656.050 is hereby amended to read as follows:

      656.050  The members of the Board must be appointed by the Governor as follows:

      1.  One member of the Board must be an active member of the State Bar of Nevada.

      2.  Three members of the Board must be holders of certificates and must have been actively engaged as certified court reporters within this State for at least 5 years immediately preceding their appointment.

      3.  One member of the Board must be a representative of the general public. This member must not be:

      (a) A certified court reporter; or

      (b) The spouse or the parent or child, by blood, marriage or adoption, of a certified court reporter.

      Sec. 8. NRS 656.105 is hereby amended to read as follows:

      656.105  1.  Except as otherwise provided in this section and NRS 239.0115, a complaint filed with the Board, all documents and other information filed with the complaint and all documents and other information compiled as a result of an investigation conducted to determine whether to initiate disciplinary action against a natural person or business entity are confidential, unless the natural person or business entity submits a written statement to the Board requesting that such documents and information be made public records.

      2.  The charging documents filed with the Board to initiate disciplinary action pursuant to chapter 622A of NRS and all documents and information considered by the Board when determining whether to impose discipline are public records.

      3.  An order that imposes discipline and the findings of fact and conclusions of law supporting that order are public records.

      4.  The provisions of this section do not prohibit the Board from communicating or cooperating with or providing any documents or other information to any other licensing board or any other agency that is investigating a natural person [,] or business entity, including, without limitation, a law enforcement agency.

      Sec. 9. NRS 656.140 is hereby amended to read as follows:

      656.140  The Board may aid in all matters pertaining to the advancement of the practice of court reporting, including but not limited to all matters that may advance the professional interests of certified court reporters and licensees and such matters as concern their relations with the public.

      Sec. 10. NRS 656.145 is hereby amended to read as follows:

      656.145  [1.  Except as otherwise provided in subsection 2, it] It is unlawful for any natural person to practice court reporting or to advertise or [put out any sign or card or other device which might] use any identifying term that may indicate to the public that the natural person is entitled to practice as a court reporter [without] unless the natural person holds a certificate of registration as a certified court reporter issued by the Board.

      [2.  Any person may, with the approval of the Board, practice court reporting on a temporary basis when there is an acknowledged unavailability of a certified court reporter.

 


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of a certified court reporter. A person requesting the approval of the Board to practice court reporting on a temporary basis shall submit to the Board:

      (a) Documentation or other proof that the person has at least one continuous year of experience working full-time in the practice of court reporting; and

      (b) A copy of:

             (1) The certification as a registered professional reporter issued to the person by the National Court Reporters Association;

             (2) The certification as a registered merit reporter issued to the person by the National Court Reporters Association; or

             (3) A valid certificate or license to practice court reporting issued to the person by another state.]

      Sec. 11. NRS 656.150 is hereby amended to read as follows:

      656.150  1.  Each applicant for a certificate must file an application with the Executive Secretary of the Board at least 30 days before the date fixed for examination. The application must be accompanied by the required fee and all information required to complete the application.

      2.  No certificate may be issued until the applicant has [passed] :

      (a) Passed the examination prescribed by the Board [and paid] ;

      (b) Passed one of the examinations described in paragraph (b) of subsection 2 of NRS 656.170; and

      (c) Paid the fee as provided in NRS 656.220.

      Sec. 12. NRS 656.160 is hereby amended to read as follows:

      656.160  1.  Every person who files an application for an original certificate must personally appear before the Board for an examination and the answering of such questions as may be prepared by the Board to enable it to determine the trustworthiness of the applicant and his or her competency to engage in the practice of court reporting in such a manner as to safeguard the interests of the public.

      2.  In determining competency, the Board shall administer an examination to determine whether the applicant has:

      (a) A good understanding of the English language, including reading, spelling, vocabulary, and medical and legal terminology; and

      (b) [Sufficient ability to report accurately any of the matters comprising the practice of court reporting consisting of material read at not less than 180 words per minute or more than 225 words per minute; and

      (c)] A clear understanding of the obligations owed by a court reporter to the parties in any reported proceedings and the obligations created by the provisions of this chapter and any regulation adopted pursuant to this chapter.

      Sec. 13. NRS 656.170 is hereby amended to read as follows:

      656.170  1.  Examinations must be held not less than twice a year at such times and places as the Board may designate.

      2.  No natural person may be admitted to the examination unless the natural person first [presents] applies to the Board as required by NRS 656.150. The application must include, without limitation, satisfactory evidence to the Board that [he or she has:

      (a) Received] the applicant has, at the time of filing his or her application:

      (a) Satisfied the requirements set forth in subsections 1 to 5, inclusive, of NRS 656.180;

      (b) Received a passing grade on [the] :

 


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             (1) The National Court Reporters Association’s examination for registered professional reporters [, if the Board has approved the examination;

      (b) Received a passing grade on the] ; or

             (2) The National Verbatim Reporters Association’s examination for certified verbatim reporters [, if the Board has approved the examination;

      (c) Completed course work at a school for court reporters or completed course work offered through a distance education program for court reporters in English grammar, reading, spelling and vocabulary, medical and legal terminology, transcription and computer-aided transcription, reporting procedures and court reporting at 200 words per minute with an accuracy of 95 percent;

      (d) A] ;

      (c) Received one of the following:

             (1) A certificate as a registered professional reporter [, registered merit reporter, certified CART provider, certified broadcast captioner or certified realtime reporter from] issued to the applicant by the National Court Reporters Association [, if the Board has approved each such certificate;

      (e)] ;

             (2)A certificate as a registered merit reporter issued to the applicant by the National Court Reporters Association;

             (3) A certificate as a certified verbatim reporter [, realtime verbatim reporter, registered CART provider or registered broadcast captioner or a certificate of merit from] issued to the applicant by the National Verbatim Reporters Association [, if the Board has approved each such certificate;

      (f)] ; or

             (4) A valid certificate or license to practice court reporting issued to the applicant by another state [; or] if the requirements for certification or licensure in that state are substantially equivalent to the requirements of this State for obtaining a certificate;

      [(g) One]

      (d) Either:

             (1) At least 1 year of continuous experience [as a full-time court reporter using voice writing or any system of manual or mechanical shorthand writing.] within the 5 years immediately preceding the application, in the practice of court reporting or producing verbatim records of meetings and conferences by the use of voice writing or any system of manual or mechanical shorthand writing and transcribing those records; or

             (2) Obtained in the 12 months immediately preceding the application, a certificate of satisfactory completion of a prescribed course of study from a court reporting program that, as determined by the Board, evidences a proficiency substantially equivalent to subparagraph (1); and

      (e) Paid the fee for filing an application for an examination set forth in NRS 656.220.

      3.  As used in this section, “practice of court reporting” includes reporting by use of voice writing or any system of manual or mechanical shorthand writing, regardless of the state in which the reporting took place.

      Sec. 14. NRS 656.180 is hereby amended to read as follows:

      656.180  An applicant for a certificate of registration as a certified court reporter is entitled to a certificate if the applicant:

 


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      1.  Is a citizen of the United States or lawfully entitled to remain and work in the United States;

      2.  Is at least 18 years of age;

      3.  Is of good moral character;

      4.  Has not been convicted of a felony relating to the practice of court reporting;

      5.  Has a high school education or its equivalent;

      [5.]6.  Satisfactorily passes [an] :

      (a) An examination administered by the Board pursuant to NRS 656.160;

      [6.]and

      (b) One of the examinations described in paragraph (b) of subsection 2 of NRS 656.170;

      7.  Pays the requisite fees; and

      [7.]8.  Submits all information required to complete an application for a certificate of registration.

      Sec. 15. NRS 656.185 is hereby amended to read as follows:

      656.185  1.  It is unlawful for any [person] business entity to conduct business as a court reporting firm or to advertise or [put out any sign or card or other device which] use any identifying term that may indicate to members of the public that [he or she] the business entity is entitled to conduct such a business without first obtaining a license from the Board.

      2.  Each applicant for a license as a court reporting firm must file an application with the Executive Secretary of the Board on a form prescribed by the Board.

      3.  The application must:

      (a) Include the federal identification number of the applicant;

      (b) Include the name of the natural person who will be appointed as the designated representative of the court reporting firm and such other identifying information about that natural person as required by the Board;

      (c) Be accompanied by the required fee; and

      (d) Include all information required to complete the application.

      4.  To obtain a license pursuant to this section, an applicant need not hold a certificate of registration as a certified court reporter.

      Sec. 16. NRS 656.186 is hereby amended to read as follows:

      656.186  1.  Each court reporting firm shall appoint one natural person affiliated with the court reporting firm to act as the designated representative for the firm. The natural person so appointed must:

      (a) Hold a certificate; or

      (b) Pass an examination administered by the Board pursuant to subsection 2.

      2.  The Board shall administer an examination to determine whether a designated representative of a court reporting firm understands:

      (a) The ethics and professionalism required for the practice of court reporting; and

      (b) The obligations owed by a certified court reporter to the parties in any reported proceedings and the obligations created by the provisions of this chapter and any regulation adopted thereto.

      3.  The Board may adopt regulations to carry out the provisions of this section and to establish additional subject areas to be included in the examination administered by the Board pursuant to this section.

 


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      Sec. 17. NRS 656.200 is hereby amended to read as follows:

      656.200  1.  To renew a certificate of registration a certified court reporter must:

      (a) Apply to the Board for renewal;

      (b) Pay the annual renewal fee prescribed by the Board;

      (c) Submit evidence to the Board of completion of the requirements for continuing education established by the Board; and

      (d) Submit all information required to complete the renewal.

      2.  The Board shall adopt regulations requiring certified court reporters to participate in continuing education or training as a prerequisite to the renewal or restoration of a certificate. If a certified court reporter fails to comply with the requirements, the Board may suspend or revoke his or her certificate.

      3.  The failure of any certified court reporter to submit all information required to complete the renewal or pay in advance the annual renewal fee which may be fixed by the Board as necessary to defray the expense of administering the provisions of this chapter results in the suspension of the reporter’s right to engage in the practice of court reporting. The suspension must not be terminated until all required information has been submitted and all delinquent fees have been paid.

      4.  A certified court reporter whose certificate of registration has been suspended because of failure to submit all required information or pay the renewal fee:

      (a) May within 2 years thereafter have the certificate reinstated without examination upon submission of all required information and payment of the fees set forth in paragraph (e) of subsection 1 of NRS 656.220.

      (b) While he or she was on active military duty or in training before induction, may have the certificate renewed without payment of any fee if he or she files an application for renewal, an affidavit of such service with the Board within 2 years after the termination of the service and all information required to complete the renewal.

      Sec. 18. NRS 656.205 is hereby amended to read as follows:

      656.205  1.  The Board may:

      (a) Develop and conduct programs of continuing education relating to the practice of court reporting.

      (b) Charge and collect a reasonable fee from persons who attend such a program.

      2.  The Board shall not refuse to renew or restore the [certificate] :

      (a) Certificate of a certified court reporter who does not attend such a program but who otherwise complies with the requirements for continuing education prescribed by the Board [.] ; or

      (b) License of a licensee whose designated representative does not attend such a program but who otherwise complies with the requirements for continuing education prescribed by the Board.

      Sec. 19. (Deleted by amendment.)

      Sec. 20. NRS 656.240 is hereby amended to read as follows:

      656.240  The Board may refuse to issue or to renew or may suspend or revoke any certificate or license for any one or a combination of the following causes:

      1.  If the applicant [or] , certified court reporter or licensee has by false representation obtained or sought to obtain a certificate or license for himself , [or] herself or itself or any other natural person [.] or business entity.

 


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      2.  If the applicant [or] , certified court reporter or designated representative of a court reporting firm has been found in contempt of court, arising out of [his or her] the conduct of the applicant, court reporter or designated representative in performing or attempting to perform any act as a certified court reporter.

      3.  If the applicant [or] , certified court reporter or designated representative of a court reporting firm has been convicted of a crime related to the qualifications, functions and responsibilities of a certified [or licensed] court reporter [.] or licensee.

      4.  If the applicant [or] , certified court reporter or designated representative of a court reporting firm has been convicted of any offense involving moral turpitude.

Κ The judgment of conviction or a certified copy of the judgment is conclusive evidence of conviction of an offense.

      Sec. 21. NRS 656.250 is hereby amended to read as follows:

      656.250  The Board may refuse to issue or renew or may suspend or revoke any certificate or license if the certified court reporter, including a designative representative of a court reporting firm if he or she holds a certificate, in performing or attempting to perform or pretending to perform any act as a certified court reporter has:

      1.  Willfully failed to take full and accurate stenographic notes of any proceedings;

      2.  Willfully altered any stenographic notes taken at any proceedings;

      3.  Willfully failed accurately to transcribe verbatim any stenographic notes taken at any proceedings;

      4.  Willfully altered a transcript of stenographic notes taken at any proceedings;

      5.  Affixed his or her signature to any transcript of his or her stenographic notes or certified to the correctness of such a transcript unless the transcript was prepared by the certified court reporter or was prepared under the certified court reporter’s immediate supervision;

      6.  Demonstrated unworthiness or incompetency to act as a certified court reporter in such a manner as to safeguard the interests of the public;

      7.  Professionally associated with or loaned his or her name to another for the illegal practice by another of court reporting, or professionally associated with any natural person [, firm, copartnership or corporation] or business entity holding itself out in any manner contrary to the provisions of this chapter;

      8.  Habitually been intemperate in the use of intoxicating liquor or controlled substances;

      9.  Except as otherwise provided in subsection 10, willfully violated any of the provisions of this chapter or the regulations adopted by the Board to enforce this chapter;

      10.  Violated any regulation adopted by the Board relating to:

      (a) Unprofessional conduct;

      (b) Agreements for the provision of ongoing services as a certified court reporter or ongoing services which relate to the practice of court reporting;

      (c) The avoidance of a conflict of interest; or

      (d) The performance of the practice of court reporting in a uniform, fair and impartial manner and avoiding the appearance of impropriety;

 


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      11.  Failed within a reasonable time to provide information requested by the Board as the result of a formal or informal complaint to the Board, which would indicate a violation of this chapter; or

      12.  Failed without excuse to transcribe stenographic notes of a proceeding and file or deliver to an ordering party a transcript of the stenographic notes:

      (a) Within the time required by law or agreed to by verbal or written contract;

      (b) Within a reasonable time required for filing the transcript; or

      (c) Within a reasonable time required for delivery of the transcript.

      Sec. 22. NRS 656.253 is hereby amended to read as follows:

      656.253  The Board may refuse to issue or renew or may suspend or revoke a certificate or license if, after notice and a hearing as required by law, the Board determines that the certified court reporter or licensee [or certificate holder] has committed any of the acts set forth in NRS 656.240 or 656.250.

      Sec. 23. NRS 656.255 is hereby amended to read as follows:

      656.255  1.  If the Board receives a copy of a court order issued pursuant to NRS 425.540 that provides for the suspension of all professional, occupational and recreational licenses, certificates and permits issued to a natural person who is the holder of a license or certificate issued pursuant to this chapter, the Board shall deem the license or certificate issued to that natural person to be suspended at the end of the 30th day after the date on which the court order was issued unless the Board receives a letter issued to the holder of the license or certificate by the district attorney or other public agency pursuant to NRS 425.550 stating that the holder of the license or certificate has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

      2.  The Board shall reinstate a license or certificate issued pursuant to this chapter that has been suspended by a district court pursuant to NRS 425.540 if the Board receives a letter issued by the district attorney or other public agency pursuant to NRS 425.550 to the natural person whose license or certificate was suspended stating that the natural person whose license or certificate was suspended has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

      Sec. 24. NRS 656.257 is hereby amended to read as follows:

      656.257  [1.]  In addition to or in lieu of suspending, revoking or refusing to issue or renew the certificate of a certified court reporter or the license of a court reporting firm pursuant to NRS 656.240, 656.250 or 656.253, the Board may, by a majority vote:

      [(a)]1.  Place the certified court reporter or [court reporting firm] licensee on probation for a period not to exceed 1 year; or

      [(b)]2.  Impose an administrative fine against the certified court reporter or [court reporting firm in an amount not to exceed $5,000 for each violation for which the administrative fine is imposed.

      2.  Any penalty imposed pursuant to this section must be imposed by the Board at a hearing conducted pursuant to chapter 622A of NRS.] licensee as provided in NRS 656.360.

 

 


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      Sec. 25. NRS 656.260 is hereby amended to read as follows:

      656.260  1.  A [holder of a license or certificate] licensee or certified court reporter shall notify the Chair or Executive Secretary of the Board in writing within 30 days after [changing his or her] a change in name or address.

      2.  [Any change of ownership] A licensee shall report any change of:

      (a) Ownership or corporate officers of a court reporting firm [or of the] ; and

      (b) The designated representative of the court reporting firm must be reported to the Chair or Executive Secretary within 30 days after the change.

      3.  The Board may suspend or revoke a license or certificate if the [holder thereof] licensee or certified court reporter fails so to notify the Board.

      Sec. 26. NRS 656.270 is hereby amended to read as follows:

      656.270  The entry of a decree by a court of competent jurisdiction establishing the mental illness of any natural person [holding a license or certificate] who is a certified court reporter or a designated representative of a court reporting firm licensed under this chapter operates as a suspension of the [license or] certificate [.] or license. Such a natural person may resume his or her business or practice only upon a finding by the Board that the [holder of the license or certificate] natural person has been determined to be recovered from mental illness by a court of competent jurisdiction and upon the Board’s recommendation that the [holder] certified court reporter or licensee be permitted to resume his or her business or practice.

      Sec. 27. NRS 656.280 is hereby amended to read as follows:

      656.280  1.  The Board may upon its own motion and shall upon the verified complaint in writing of any natural person or business entity setting forth facts which if proven would constitute grounds for refusal, suspension or revocation of a certificate or license or other disciplinary action as set forth in NRS 656.240 to 656.300, inclusive, investigate the actions of a current or former [certificate holder] certified court reporter or licensee, including a [firm or any other] natural person who or business entity that applies for, or holds or represents that he or she or the [firm] business entity holds a license or certificate.

      2.  The Board shall, before refusing to issue any license or certificate, notify the applicant in writing of the reasons for the refusal. The notice must be served by delivery personally to the applicant or by mailing by registered or certified mail to the last known place of business of the applicant.

      3.  The time set in the notice must not be less than 10 nor more than 30 days after delivery or mailing.

      4.  The Board may continue the hearing from time to time.

      Sec. 28. NRS 656.290 is hereby amended to read as follows:

      656.290  1.  The Board may subpoena and bring before it any natural person or business entity in this State and take testimony orally or by deposition, or both, with the same fees and mileage and in the same manner as prescribed in civil cases in courts of this State.

      2.  Any district court, upon the application of the accused or complainant or of the Board may, by order, require the attendance of witnesses and the production of relevant books and papers before the Board in any hearing relative to the application for or refusal, recall, suspension or revocation of a license or certificate, and the court may compel obedience to its order by proceedings for contempt.

 


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      3.  At any time after the suspension of any license or certificate, the Board may restore it to the accused without examination upon unanimous vote by the Board.

      4.  In a manner consistent with the provisions of chapter 622A of NRS, after the revocation of any license or certificate, the Board may reinstate the license or certificate without examination upon unanimous vote by the Board.

      Sec. 29. NRS 656.300 is hereby amended to read as follows:

      656.300  1.  [The practice of court reporting by any] A natural person who has not been issued a certificate or whose certificate has been suspended or revoked [, or conducting a] shall not engage in the practice of court reporting.

      2.  A business entity that has not been issued a license or whose license has been suspended or revoked shall not conduct business as a court reporting firm . [without first obtaining a license therefor or with a suspended or revoked license, is hereby declared to be inimical to public health and welfare and to constitute a public nuisance. The Attorney General of the State of Nevada, the district attorney of any county in the State or any resident may maintain an action in the name of the State of Nevada perpetually to enjoin any person from so unlawfully practicing court reporting, or unlawfully conducting business as a court reporting firm, and from doing, committing or continuing such an unlawful act.

      2.  In all proceedings under this section, the court may apportion the costs among the parties interested in the suit, including the costs of filing the complaint, service of process, witness fees and expenses, charges for a court reporter and reasonable attorney’s fees.

      3.  The proceeding authorized by this section is in addition to and not in lieu of criminal prosecutions or proceedings to revoke or suspend licenses or certificates as authorized by this chapter.]

      3.  In addition to any other penalty prescribed by law, if the Board determines that a natural person or business entity has committed any act described in this section or NRS 656.145 or 645.185, the Board may:

      (a) Issue and serve on the natural person or business entity an order to cease and desist until the natural person or business entity obtains from the Board the proper certificate or license or otherwise demonstrates that the natural person or business entity is no longer in violation of this section. An order to cease and desist must include a telephone number with which to contact the Board.

      (b) Issue a citation to a natural person or business entity. A citation issued pursuant to this paragraph must be in writing, describe with particularity the nature of the violation and inform the natural person or business entity of the provisions of this paragraph. Each activity in which the natural person or business entity is engaged constitutes a separate offense for which a separate citation may be issued. To appeal a citation, the natural person or business entity must submit a written request for a hearing to the Board not later than 30 days after the date of issuance of the citation.

      (c) Assess against the natural person or business entity an administrative fine as provided in NRS 656.360.

      (d) Impose any combination of the penalties set forth in paragraphs (a), (b) and (c).

 


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      Sec. 30. NRS 656.310 is hereby amended to read as follows:

      656.310  1.  Except as otherwise provided in subsection 2, each natural person to whom a valid existing certificate of registration as a certified court reporter has been issued under this chapter:

      (a) Must be designated as a certified court reporter;

      (b) May, in connection with his or her practice of court reporting, use the abbreviation “C.C.R.”; and

      (c) Shall not, in connection with his or her practice of court reporting, use the abbreviation “C.C.R.-V.”

      2.  Each natural person to whom a valid existing certificate of registration as a certified court reporter has been issued under this chapter and who has only passed the portion of the examination required pursuant to paragraph (b) of subsection 2 of NRS [656.160] 656.170 through the use of voice writing:

      (a) Must be designated as a certified court reporter-voice writer;

      (b) May, in connection with his or her practice of court reporting, use the abbreviation “C.C.R.-V.”;

      (c) Shall not, in connection with his or her practice of court reporting, use the abbreviation “C.C.R.”; and

      (d) Shall engage in the practice of court reporting only through the use of voice writing.

      3.  No natural person other than the holder of a valid existing certificate of registration under this chapter may use the title or designation of “certified court reporter,” “certified court reporter-voice writer,” “C.C.R.” or “C.C.R.-V.,” either directly or indirectly, in connection with his or her profession or business.

      4.  Every [holder of a certificate] certified court reporter shall place the number of the certificate:

      (a) On the cover page and certificate page of all transcripts of proceedings; and

      (b) On all business cards.

      Sec. 31. NRS 656.315 is hereby amended to read as follows:

      656.315  A certified court reporter may administer oaths and affirmations without being appointed as a notary public pursuant to chapter 240 of NRS.

      Sec. 32. (Deleted by amendment.)

      Sec. 33. NRS 656.330 is hereby amended to read as follows:

      656.330  No action or suit may be instituted, nor recovery therein be had, in any court of this state by any natural person or business entity for compensation for any act done or service rendered, the doing or rendering of which is prohibited under the provisions of this chapter.

      Sec. 34. NRS 656.335 is hereby amended to read as follows:

      656.335  A certified court reporter shall retain his or her notes, whether or not transcribed, for 8 years if they concern any matter subject to judicial review. These notes must be kept in a manner which is reasonably secure against theft, tampering or accidental destruction.

      Sec. 35. NRS 656.360 is hereby amended to read as follows:

      656.360  In addition to any other penalty provided by law, the Board may, after notice and a hearing, as required by law, impose upon a natural person or business entity who violates any provision of this chapter or any regulation adopted [by the Board is subject to a civil penalty] pursuant thereto an administrative fine of not more than $5,000 for each violation [.

 


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thereto an administrative fine of not more than $5,000 for each violation [. Any such penalty must be imposed by the Board:

      1.  If the person is a certified court reporter or court reporting firm, at a hearing conducted pursuant to the provisions of chapter 622A of NRS.

      2.  If the person is not a licensee, at a hearing for which written notice has been given not less than 30 days before the hearing.] for which the administrative fine is imposed.

      Sec. 36.  This act becomes effective:

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

      2.  On January 1, 2018, for all other purposes.

________

CHAPTER 362, AB 181

Assembly Bill No. 181–Assemblymen Frierson, Ohrenschall, Yeager; Araujo, Benitez-Thompson and McCurdy II

 

CHAPTER 362

 

[Approved: June 4, 2017]

 

AN ACT relating to civil rights; revising provisions governing the restoration of civil rights to certain persons who have been convicted of felonies; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Under existing law, unless a person has been convicted of certain specified felonies, a person who has been convicted of a felony is restored to his or her civil rights by operation of law upon: (1) an honorable discharge from probation; (2) an honorable discharge from parole; or (3) the completion of his or her sentence and release from prison. Conversely, a person must petition a court for the restoration of his or her civil rights if the person was convicted: (1) of a category A felony; (2) of an offense that would constitute a category A felony if committed as of the date of discharge from probation, discharge from parole or release from prison; (3) of a category B felony involving the use of force or violence that resulted in substantial bodily harm; (4) of an offense involving the use of force or violence that resulted in substantial bodily harm and that would constitute a category B felony if committed as of the date of discharge from probation, discharge from parole or release from prison; or (5) two or more times of a felony, except under certain circumstances. (NRS 176A.850, 213.155, 213.157) Sections 1-3 of this bill provide, respectively, that a probationer, parolee or person who completed his or her sentence and was released from prison is, with certain exceptions, immediately restored to the right: (1) to serve as a juror in a civil action; and (2) to vote. Sections 1-3 provide, respectively, that if the probationer, parolee or person who completed his or her sentence and was released from prison was convicted of a category B felony involving the use of force or violence that did not result in substantial bodily harm to the victim or of an offense involving the use of force or violence that did not result in substantial bodily harm to the victim and that would constitute a category B felony if committed as of the date of discharge from probation, discharge from parole or release from prison, his or her right to vote must be restored 2 years after discharge from probation, discharge from parole or release from prison.

 


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      Existing law sets forth circumstances under which a person whose term of probation has expired must be given a dishonorable discharge and precludes the probationer from obtaining the restoration of certain civil rights. (NRS 176A.870) Section 1 maintains the requirement that such a probationer be given a dishonorable discharge, but section 5 of this bill eliminates the prohibition on the restoration of civil rights.

      Section 4 of this bill provides for the restoration of civil rights to certain residents of this State who: (1) have not had their civil rights restored; (2) are not on probation or parole or serving a sentence of imprisonment on January 1, 2019; and (3) before January 1, 2019, were discharged from probation or parole or released from prison after serving their sentences.

 

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 176A.850 is hereby amended to read as follows:

      176A.850  1.  A person who:

      (a) Has fulfilled the conditions of probation for the entire period thereof;

      (b) Is recommended for earlier discharge by the Division; or

      (c) Has demonstrated fitness for honorable discharge but because of economic hardship, verified by the Division, has been unable to make restitution as ordered by the court,

Κ may be granted an honorable discharge from probation by order of the court.

      2.  A person whose term of probation has expired and:

      (a) Whose whereabouts are unknown;

      (b) Who has failed to make restitution in full as ordered by the court, without a verified showing of economic hardship; or

      (c) Who has otherwise failed to qualify for an honorable discharge as provided in subsection 1,

Κ is not eligible for an honorable discharge and must be given a dishonorable discharge. A dishonorable discharge releases the person from any further obligation, except as otherwise provided in subsection 3.

      3.  Any amount of restitution remaining unpaid constitutes a civil liability arising upon the date of discharge and is enforceable pursuant to NRS 176.275.

      [3.] 4.  Except as otherwise provided in subsection [4,] 5, a person who has been [honorably] discharged from probation:

      (a) Is free from the terms and conditions of probation.

      (b) Is immediately restored to the [following civil rights:

             (1) The right to vote; and

             (2) The] right to serve as a juror in a civil action.

      (c) Except as otherwise provided in paragraph (d), is immediately restored to the right to vote.

      (d) Two years after the date of discharge from probation, is restored to the right to vote if the person has previously been convicted in this State:

             (1) Of a category B felony involving the use of force or violence.

             (2) Of an offense involving the use of force or violence that would constitute a category B felony if committed as of the date of discharge from probation.

 


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      (e) Four years after the date of [honorable] discharge from probation, is restored to the right to hold office.

      [(d)](f) Six years after the date of [honorable] discharge from probation, is restored to the right to serve as a juror in a criminal action.

      [(e)](g) If the person meets the requirements of NRS 179.245, may apply to the court for the sealing of records relating to the conviction.

      [(f)](h) Must be informed of the provisions of this section and NRS 179.245 in the person’s probation papers.

      [(g)](i) Is exempt from the requirements of chapter 179C of NRS, but is not exempt from the requirements of chapter 179D of NRS.

      [(h)](j) Shall disclose the conviction to a gaming establishment and to the State and its agencies, departments, boards, commissions and political subdivisions, if required in an application for employment, license or other permit. As used in this paragraph, “establishment” has the meaning ascribed to it in NRS 463.0148.

      [(i)](k) Except as otherwise provided in paragraph [(h),] (j), need not disclose the conviction to an employer or prospective employer.

      [4.] 5.  Except as otherwise provided in this subsection, the civil rights set forth in subsection [3] 4 are not restored to a person [honorably] discharged from probation if the person has previously been convicted in this State:

      (a) Of a category A felony.

      (b) Of an offense that would constitute a category A felony if committed as of the date of [the honorable] discharge from probation.

      (c) Of a category B felony involving the use of force or violence that resulted in substantial bodily harm to the victim.

      (d) Of an offense involving the use of force or violence that resulted in substantial bodily harm to the victim and that would constitute a category B felony if committed as of the date of [honorable] discharge from probation.

      (e) Two or more times of a felony, unless a felony for which the person has been convicted arose out of the same act, transaction or occurrence as another felony, in which case the convictions for those felonies shall be deemed to constitute a single conviction for the purposes of this paragraph.

Κ A person described in this subsection may petition a court of competent jurisdiction for an order granting the restoration of civil rights as set forth in subsection [3.] 4.

      [5.]6.  The prior conviction of a person who has been [honorably] discharged from probation may be used for purposes of impeachment. In any subsequent prosecution of the person, the prior conviction may be pleaded and proved if otherwise admissible.

      [6.]7.  Except for a person subject to the limitations set forth in subsection [4,] 5, upon [honorable] discharge from probation, the person so discharged must be given an official document which provides:

      (a) That the person has received an honorable discharge or dishonorable discharge, as applicable, from probation;

      (b) That the person [has been] is restored to his or her civil rights to vote and to serve as a juror in a civil action as of the [date of honorable discharge from probation;] applicable dates set forth in paragraphs (b), (c) and (d) of subsection 4;

 

 


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      (c) The date on which the person’s civil right to hold office will be restored pursuant to paragraph [(c)] (e) of subsection [3;] 4; and

      (d) The date on which the person’s civil right to serve as a juror in a criminal action will be restored pursuant to paragraph [(d)] (f) of subsection [3.] 4.

      [7.]8.  Subject to the limitations set forth in subsection [4,] 5, a person who has been [honorably] discharged from probation in this State or elsewhere and whose official documentation of [honorable] discharge from probation is lost, damaged or destroyed may file a written request with a court of competent jurisdiction to restore the person’s civil rights pursuant to this section. Upon verification that the person has been [honorably] discharged from probation and is eligible to be restored to the civil rights set forth in subsection [3,] 4, the court shall issue an order restoring the person to the civil rights set forth in subsection [3.] 4. A person must not be required to pay a fee to receive such an order.

      [8.]9.  A person who has been [honorably] discharged from probation in this State or elsewhere may present:

      (a) Official documentation of [honorable] discharge from probation, if it contains the provisions set forth in subsection [6;] 7; or

      (b) A court order restoring the person’s civil rights,

Κ as proof that the person has been restored to the civil rights set forth in subsection [3.] 4.

      Sec. 2. NRS 213.155 is hereby amended to read as follows:

      213.155  1.  Except as otherwise provided in subsection 2, a person who receives [an honorable] a discharge from parole pursuant to NRS 213.154:

      (a) Is immediately restored to the [following civil rights:

             (1) The right to vote; and

             (2) The] right to serve as a juror in a civil action.

      (b) Except as otherwise provided in paragraph (c), is immediately restored to the right to vote.

      (c) Two years after the date of his or her discharge from parole, is restored to the right to vote if the person has previously been convicted in this State:

             (1) Of a category B felony involving the use of force or violence.

             (2) Of an offense involving the use of force or violence that would constitute a category B felony if committed as of the date of discharge from parole.

      (d) Four years after the date of his or her [honorable] discharge from parole, is restored to the right to hold office.

      [(c)](e) Six years after the date of his or her [honorable] discharge from parole, is restored to the right to serve as a juror in a criminal action.

      2.  Except as otherwise provided in this subsection, the civil rights set forth in subsection 1 are not restored to a person who has received [an honorable] a discharge from parole if the person has previously been convicted in this State:

      (a) Of a category A felony.

      (b) Of an offense that would constitute a category A felony if committed as of the date of [his or her honorable] discharge from parole.

      (c) Of a category B felony involving the use of force or violence that resulted in substantial bodily harm to the victim.

 


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      (d) Of an offense involving the use of force or violence that resulted in substantial bodily harm to the victim and that would constitute a category B felony if committed as of the date of [his or her honorable] discharge from parole.

      (e) Two or more times of a felony, unless a felony for which the person has been convicted arose out of the same act, transaction or occurrence as another felony, in which case the convictions for those felonies shall be deemed to constitute a single conviction for the purposes of this paragraph.

Κ A person described in this subsection may petition a court of competent jurisdiction for an order granting the restoration of his or her civil rights as set forth in subsection 1.

      3.  Except for a person subject to the limitations set forth in subsection 2, upon his or her [honorable] discharge from parole, a person so discharged must be given an official document which provides:

      (a) That the person has received an honorable discharge or dishonorable discharge, as applicable, from parole;

      (b) That the person [has been] is restored to his or her civil rights to vote and to serve as a juror in a civil action as of the [date of his or her honorable discharge from parole;] applicable dates set forth in paragraphs (a), (b) and (c) of subsection 1;

      (c) The date on which his or her civil right to hold office will be restored to the person pursuant to paragraph [(b)] (d) of subsection 1; and

      (d) The date on which his or her civil right to serve as a juror in a criminal action will be restored to the person pursuant to paragraph [(c)] (e) of subsection 1.

      4.  Subject to the limitations set forth in subsection 2, a person who has been [honorably] discharged from parole in this State or elsewhere and whose official documentation of his or her [honorable] discharge from parole is lost, damaged or destroyed may file a written request with a court of competent jurisdiction to restore his or her civil rights pursuant to this section. Upon verification that the person has been [honorably] discharged from parole and is eligible to be restored to the civil rights set forth in subsection 1, the court shall issue an order restoring the person to the civil rights set forth in subsection 1. A person must not be required to pay a fee to receive such an order.

      5.  A person who has been [honorably] discharged from parole in this State or elsewhere may present:

      (a) Official documentation of his or her [honorable] discharge from parole, if it contains the provisions set forth in subsection 3; or

      (b) A court order restoring his or her civil rights,

Κ as proof that the person has been restored to the civil rights set forth in subsection 1.

      6.  The Board may adopt regulations necessary or convenient for the purposes of this section.

      Sec. 3. NRS 213.157 is hereby amended to read as follows:

      213.157  1.  Except as otherwise provided in subsection 2, a person convicted of a felony in the State of Nevada who has served his or her sentence and has been released from prison:

      (a) Is immediately restored to the [following civil rights:

             (1) The right to vote; and

             (2) The] right to serve as a juror in a civil action.

 


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      (b) Except as otherwise provided in paragraph (c), is immediately restored to the right to vote.

      (c) Two years after the date of his or her release from prison, is restored to the right to vote if the person has previously been convicted in this State:

             (1) Of a category B felony involving the use of force or violence.

             (2) Of an offense involving the use of force or violence that would constitute a category B felony if committed as of the date of his or her release from prison.

      (d) Four years after the date of his or her release from prison, is restored to the right to hold office.

      [(c)](e) Six years after the date of his or her release from prison, is restored to the right to serve as a juror in a criminal action.

      2.  Except as otherwise provided in this subsection, the civil rights set forth in subsection 1 are not restored to a person who has been released from prison if the person has previously been convicted in this State:

      (a) Of a category A felony.

      (b) Of an offense that would constitute a category A felony if committed as of the date of his or her release from prison.

      (c) Of a category B felony involving the use of force or violence that resulted in substantial bodily harm to the victim.

      (d) Of an offense involving the use of force or violence that resulted in substantial bodily harm to the victim and that would constitute a category B felony if committed as of the date of his or her release from prison.

      (e) Two or more times of a felony, unless a felony for which the person has been convicted arose out of the same act, transaction or occurrence as another felony, in which case the convictions for those felonies shall be deemed to constitute a single conviction for the purposes of this paragraph.

Κ A person described in this subsection may petition a court of competent jurisdiction for an order granting the restoration of his or her civil rights as set forth in subsection 1.

      3.  Except for a person subject to the limitations set forth in subsection 2, upon his or her release from prison, a person so released must be given an official document which provides:

      (a) That the person has been released from prison;

      (b) That the person [has been] is restored to his or her civil rights to vote and to serve as a juror in a civil action as of the [date of his or her release from prison;] applicable dates set forth in paragraphs (a), (b) and (c) of subsection 1;

      (c) The date on which his or her civil right to hold office will be restored to the person pursuant to paragraph [(b)] (d) of subsection 1; and

      (d) The date on which his or her civil right to serve as a juror in a criminal action will be restored to the person pursuant to paragraph [(c)] (e) of subsection 1.

      4.  Subject to the limitations set forth in subsection 2, a person who has been released from prison in this State or elsewhere and whose official documentation of his or her release from prison is lost, damaged or destroyed may file a written request with a court of competent jurisdiction to restore his or her civil rights pursuant to this section. Upon verification that the person has been released from prison and is eligible to be restored to the civil rights set forth in subsection 1, the court shall issue an order restoring the person to the civil rights set forth in subsection 1.

 


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set forth in subsection 1, the court shall issue an order restoring the person to the civil rights set forth in subsection 1. A person must not be required to pay a fee to receive such an order.

      5.  A person who has been released from prison in this State or elsewhere may present:

      (a) Official documentation of his or her release from prison, if it contains the provisions set forth in subsection 3; or

      (b) A court order restoring his or her civil rights,

Κ as proof that the person has been restored to the civil rights set forth in subsection 1.

      Sec. 4.  1.  Any person residing in this State who:

      (a) Is not subject to the provisions of subsection 2;

      (b) Before January 1, 2019, was discharged from probation pursuant to NRS 176A.850 or 176A.870, discharged from parole pursuant to NRS 213.155 or released from prison pursuant to NRS 213.157, as those sections existed before January 1, 2019;

      (c) Is not on probation or parole or serving a sentence of imprisonment on January 1, 2019; and

      (d) Has not already had his or her civil rights restored,

Κ is immediately restored to the right to serve as a juror in a civil action and the right to vote. Four years after the date on which the person was discharged from probation, discharged from parole or released from prison, as applicable, he or she is restored to the right to hold office. Six years after the date on which the person was discharged from probation, discharged from parole or released from prison, as applicable, he or she is restored to the right to serve as a juror in a criminal action.

      2.  Any person residing in this State who:

      (a) Before January 1, 2019:

             (1) Was discharged from probation pursuant to NRS 176A.850 or 176A.870, discharged from parole pursuant to NRS 213.155 or released from prison pursuant to NRS 213.157, as those sections existed before January 1, 2019;

             (2) Was previously convicted in this State:

                   (I) Of a category B felony involving the use of force or violence; or

                   (II) Of an offense involving the use of force or violence that would constitute a category B felony if committed as of the date of discharge from probation, discharge from parole or release from prison, as applicable; and

             (3) Was not previously convicted in this State:

                   (I) Of a category A felony;

                   (II) Of an offense that would constitute a category A felony if committed as of the date of discharge from probation, discharge from parole or release from prison, as applicable;

                   (III) Of a category B felony involving the use of force or violence that resulted in substantial bodily harm to the victim;

                   (IV) Of an offense involving the use of force or violence that resulted in substantial bodily harm to the victim and that would constitute a category B felony if committed as of the date of discharge from probation, discharge from parole or release from prison, as applicable; or

 


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                   (V) Two or more times of a felony, unless a felony for which the person has been convicted arose out of the same act, transaction or occurrence as another felony, in which case the convictions for those felonies shall be deemed to constitute a single conviction for the purposes of this sub-subparagraph;

      (b) Is not on probation or parole or serving a sentence of imprisonment on January 1, 2019; and

      (c) Has not already had his or her civil rights restored,

Κ is immediately restored to the right to serve as a juror in a civil action. Two years after the date on which the person was discharged from probation, discharged from parole or released from prison, as applicable, he or she is restored to the right to vote. Four years after the date on which the person was discharged from probation, discharged from parole or released from prison, as applicable, he or she is restored to the right to hold office. Six years after the date on which the person was discharged from probation, discharged from parole or released from prison, as applicable, he or she is restored to the right to serve as a juror in a criminal action.

      3.  A person who is restored to his or her civil rights pursuant to this section and whose official documentation which demonstrates that the person qualifies to have his or her civil rights restored pursuant to this section is lost, damaged or destroyed may file a written request with a court of competent jurisdiction to restore his or her civil rights pursuant to this section. Upon verification that the person qualifies to have his or her civil rights restored pursuant to this section, the court shall issue an order restoring the person to the civil rights set forth in this section. A person must not be required to pay a fee to receive such an order.

      4.  A person who is restored to his or her civil rights pursuant to this section may present official documentation that he or she qualifies to have his or her civil rights restored pursuant to this section or a court order restoring his or her civil rights as proof that he or she has been restored to the civil rights set forth in this section.

      Sec. 5. NRS 176A.870 is hereby repealed.

      Sec. 6.  This act becomes effective on January 1, 2019.

________

 

 

 

 


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κ2017 Statutes of Nevada, Page 2234κ

 

CHAPTER 363, AB 457

Assembly Bill No. 457–Committee on Commerce and Labor

 

CHAPTER 363

 

[Approved: June 4, 2017]

 

AN ACT relating to professional licensing; requiring the Board of Psychological Examiners, the Board of Examiners for Marriage and Family Therapists and Clinical Professional Counselors, the Board of Examiners for Social Workers and the Board of Examiners for Alcohol, Drug and Gambling Counselors to report certain information to the Legislative Committee on Health Care; requiring new members of those boards to complete an orientation; requiring those boards to adopt certain policies and regulations; authorizing those boards to enter into certain agreements; authorizing a person aggrieved by certain actions of those boards to appeal to the Commission; requiring the Commission to review all regulations adopted by those boards; revising the qualifications of certain members of the Commission; prohibiting certain persons from serving on the Commission; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law establishes: (1) the Board of Psychological Examiners, which regulates psychologists, behavior analysts and assistant behavior analysts; (2) the Board of Examiners for Marriage and Family Therapists and Clinical Professional Counselors, which regulates marriage and family therapists and clinical professional counselors; (3) the Board of Examiners for Social Workers, which regulates social workers; and (4) the Board of Examiners for Alcohol, Drug and Gambling Counselors, which regulates alcohol, drug and problem gambling counselors. (Chapters 641-641C of NRS) Sections 2, 11, 18 and 25 of this bill require those boards to submit an annual report to the Legislative Committee on Health Care concerning investigations and review of applications for the issuance or renewal of a license or certificate. Sections 3, 12, 19 and 26 of this bill: (1) require each new member of those boards to complete an orientation within 60 days after appointment; and (2) require each board to establish policies concerning compensation and reviewing the performance of the staff of the board. Sections 4, 13, 20 and 27 of this bill authorize the boards to enter into agreements with the Department of Health and Human Services or a division thereof to carry out or improve the performance of the boards’ duties.

      Sections 5, 16, 21 and 28 of this bill require the same boards to adopt online application forms for the issuance or renewal of a license or certificate. Sections 6, 14, 22, 29 and 34 of this bill authorize a person aggrieved by an order of any of those boards in refusing to issue or renew a license or certificate or imposing disciplinary action to appeal that order to the Commission on Behavioral Health. Sections 34.5 and 37 of this bill provide for the expiration of the provisions authorizing such appeals on January 1, 2020. Sections 7, 15, 23 and 30 of this bill require each of the boards to adopt regulations establishing: (1) standards concerning the locations at which persons obtaining supervised experience in psychology that is required for licensure provide services; (2) standards concerning the supervision of such persons working at remote sites; and (3) a manner in which the qualifications for issuance or renewal of a license will be made available to the public. Sections 7, 15, 23, 30 and 34 also require the Commission to review and make recommendations concerning all regulations adopted by the boards. Section 32 of this bill: (1) revises the qualifications of certain members of the Commission; and (2) prohibits a member of any of those boards from serving concurrently as a member of the Commission.

 


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any of those boards from serving concurrently as a member of the Commission. Section 35 of this bill requires each of the boards to submit a report to the Legislative Committee on Health Care on or before January 1, 2018, concerning the costs of the board, the fees imposed by the board and the efforts of the board to recognize licenses, certificates and other credentials from jurisdictions outside this State and to carry out the provisions of this bill.

 

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

 

      Whereas, Licensing boards that issue licenses and certificates to behavioral health professionals have an obligation to protect the safety of the public, promote the provision of high-quality behavioral health care and facilitate the licensure and certification of behavioral health professionals; and

      Whereas, To achieve these objectives, such boards must develop and implement fair and transparent policies and procedures for the licensing, certification and regulation of behavioral health professionals; and

      Whereas, The implementation of such policies and procedures will increase the availability and accessibility of high-quality behavioral health services to the residents of this State; now, therefore,

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. Chapter 641 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 6, inclusive, of this act.

      Sec. 2. On or before February 1 of each year, the Board shall submit to the Legislative Committee on Health Care a report which must include:

      1.  The number of complaints received, investigations completed, cases dismissed, cases settled and cases for which hearings were held within the immediately preceding calendar year; and

      2.  The number of applications for the issuance or renewal of a license received by the Board during the immediately preceding calendar year and the number of those applications for which the Board conducted additional review beyond the standard review regularly conducted by the Board.

      Sec. 3. The Board shall:

      1.  Require each new member of the Board to complete orientation within 60 days after his or her appointment to the Board. The orientation must include, without limitation, instruction concerning:

      (a) The purposes of the Board and the duties of its members;

      (b) Applicable laws and regulations, including, without limitation, the provisions of NRS 641.230 to 641.320, inclusive, and section 6 of this act and the importance of complying with applicable laws and regulations in a timely manner; and

      (c) Requirements concerning managing the finances of the Board.

      2.  Establish policies concerning compensation and reviewing the performance of the staff of the Board.

      Sec. 4. The Board may enter into an agreement with the Department of Health and Human Services or a division thereof to provide services to carry out or improve any function of the Board. Such services may include, without limitation:

      1.  Assistance in processing applications for the issuance or renewal of licenses;

 


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      2.  Technical assistance;

      3.  Facilitating cooperation with other boards and licensing entities in this State or any other jurisdiction;

      4.  Recommendations to improve and standardize procedures used by the Board; and

      5.  Assistance in identifying resources for improving the operations of the Board.

      Sec. 5. The Board shall prescribe forms for applying for the issuance or renewal of a license. The forms must:

      1.  Be available to be completed on the Internet website maintained by the Board;

      2.  Provide immediate, automatic feedback to the applicant concerning whether the applicant has submitted all required information; and

      3.  Automatically store the data submitted by the applicant upon completion of the application.

      Sec. 6. 1.  Not later than 30 days after the Board denies an application for the issuance or renewal of a license or issues an order imposing disciplinary action against a licensee, the applicant or licensee aggrieved by the order may submit an appeal to the Commission on Behavioral Health. The Commission shall notify the Board not later than 10 days after receiving such an appeal.

      2.  The Commission shall, upon an appeal submitted pursuant to subsection 1, investigate the refusal of the Board to issue or renew a license or any disciplinary action imposed by the Board. The action of the Board remains in effect until the Commission renders a decision pursuant to subsection 3.

      3.  After conducting an investigation pursuant to subsection 2, the Commission shall render a decision on the appeal. In rendering a decision, the Commission shall presume that the action of the Board was proper and shall not substitute its judgment for that of the Board concerning the weight of evidence on a question of fact. The Commission may order the Board to issue or renew the license or modify or set aside the disciplinary action, as applicable, only if the Commission finds that the action of the Board:

      (a) Violates constitutional or statutory provisions;

      (b) Exceeds the statutory authority of the agency;

      (c) Was made upon unlawful procedure;

      (d) Is affected by other error of law;

      (e) Is clearly erroneous in view of the reliable, probative and substantial evidence on the whole record; or

      (f) Is arbitrary or capricious or characterized by abuse of discretion.

      4.  An investigation conducted by the Commission pursuant to the provisions of this section is limited to the application for the issuance or renewal of a license and any information submitted in conjunction with the application or the record of the disciplinary proceeding created by the Board, as applicable. The Board shall provide those records to the Commission upon request. Unless the information is deemed a public record under the provisions of NRS 641.090 or 641.240 or other applicable law, the Commission shall keep the information confidential.

 

 


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      Sec. 7. NRS 641.100 is hereby amended to read as follows:

      641.100  1.  The Board shall adopt regulations prescribing:

      (a) Uniform standards concerning the locations at which persons obtaining supervised experience that is required for licensure by the Board provide services;

      (b) Standards concerning the electronic supervision of persons obtaining supervised experience that is required for licensure by the Board who are working at remote sites; and

      (c) A manner by which the qualifications for the issuance or renewal of a license under the provisions of this chapter will be made available to the public such that those qualifications are clearly defined and easily understood.

      2.  The Board may make and promulgate any other rules and regulations not inconsistent with the provisions of this chapter governing its procedure, the examination and licensure of applicants, the granting, refusal, revocation or suspension of licenses, the practice of psychology and the practice of applied behavior analysis.

      3.  On the date that the Board gives notice pursuant to NRS 233B.060 of its intent to adopt, amend or repeal a regulation, the Board shall submit the regulation to the Commission on Behavioral Health for review. The Commission shall review the regulation and make recommendations to the Board concerning the advisability of adopting, amending or repealing the regulation and any changes that the Commission deems advisable.

      Sec. 8. NRS 641.160 is hereby amended to read as follows:

      641.160  1.  Each person desiring a license must:

      (a) Make application to the Board upon a form, and in a manner, prescribed by the Board [.] pursuant to section 5 of this act. The application must be accompanied by the application fee prescribed by the Board and include all information required to complete the application.

      (b) As part of the application and at his or her own expense:

             (1) Arrange to have a complete set of fingerprints taken by a law enforcement agency or other authorized entity acceptable to the Board; and

             (2) Submit to the Board:

                   (I) A complete set of fingerprints and written permission authorizing the Board to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for a report on the applicant’s background, and to such other law enforcement agencies as the Board deems necessary for a report on the applicant’s background; or

                   (II) Written verification, on a form prescribed by the Board, stating that the set of fingerprints of the applicant was taken and directly forwarded electronically or by other means to the Central Repository for Nevada Records of Criminal History and that the applicant provided written permission authorizing the law enforcement agency or other authorized entity taking the fingerprints to submit the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for a report on the applicant’s background, and to such other law enforcement agencies as the Board deems necessary for a report on the applicant’s background.

      2.  The Board may:

 


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      (a) Unless the applicant’s fingerprints are directly forwarded pursuant to sub-subparagraph (II) of subparagraph (2) of paragraph (b) of subsection 1, submit those fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation and to such other law enforcement agencies as the Board deems necessary; and

      (b) Request from each agency to which the Board submits the fingerprints any information regarding the applicant’s background as the Board deems necessary.

      3.  An application is not considered complete and received for purposes of evaluation pursuant to subsection 4 of NRS 641.170 until the Board receives a complete set of fingerprints or verification that the fingerprints have been forwarded electronically or by other means to the Central Repository for Nevada Records of Criminal History, and written authorization from the applicant pursuant to this section.

      Sec. 9. NRS 641.312 is hereby amended to read as follows:

      641.312  1.  Any person who has been placed on probation or whose license has been limited, suspended or revoked , and whose appeal pursuant to section 6 of this act has been denied, is entitled to judicial review of the order.

      2.  Every order which limits the practice of psychology or suspends or revokes a license is effective from the date the Board certifies the order until the date the order is modified or reversed by an order of the Commission on Behavioral Health pursuant to section 6 of this act or a final judgment of the court.

      3.  The district court shall give a petition for judicial review of the order priority over other civil matters which are not expressly given priority by law.

      Sec. 10. Chapter 641A of NRS is hereby amended by adding thereto the provisions set forth as sections 11 to 14, inclusive, of this act.

      Sec. 11. On or before February 1 of each year, the Board shall submit to the Legislative Committee on Health Care a report which must include:

      1.  The number of complaints received, investigations completed, cases dismissed, cases settled and cases for which hearings were held within the immediately preceding calendar year; and

      2.  The number of applications for the issuance or renewal of a license received by the Board during the immediately preceding calendar year and the number of those applications for which the Board conducted additional review beyond the standard review regularly conducted by the Board.

      Sec. 12. The Board shall:

      1.  Require each new member of the Board to complete orientation within 60 days after his or her appointment to the Board. The orientation must include, without limitation, instruction concerning:

      (a) The purposes of the Board and the duties of its members;

      (b) Applicable laws and regulations, including, without limitation, the provisions of NRS 641A.310 to 641A.400, inclusive, and section 14 of this act and the importance of complying with applicable laws and regulations in a timely manner; and

      (c) Requirements concerning managing the finances of the Board.

      2.  Establish policies concerning compensation and reviewing the performance of the staff of the Board.

 


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      Sec. 13.  The Board may enter into an agreement with the Department of Health and Human Services or a division thereof to provide services to carry out or improve any function of the Board. Such services may include, without limitation:

      1.  Assistance in processing applications for the issuance or renewal of licenses;

      2.  Technical assistance;

      3.  Facilitating cooperation with other boards and licensing entities in this State or any other jurisdiction;

      4.  Recommendations to improve and standardize procedures used by the Board; and

      5.  Assistance in identifying resources for improving the operations of the Board.

      Sec. 14. 1.  Not later than 30 days after the Board denies an application for the issuance or renewal of a license or issues an order imposing disciplinary action against a licensee, the applicant or licensee aggrieved by the order may submit an appeal to the Commission on Behavioral Health. The Commission shall notify the Board not later than 10 days after receiving such an appeal.

      2.  The Commission shall, upon an appeal submitted pursuant to subsection 1 or its own motion, investigate the refusal of the Board to issue or renew a license or any disciplinary action imposed by the Board. The action of the Board remains in effect until the Commission renders a decision pursuant to subsection 3.

      3.  After conducting an investigation pursuant to subsection 2, the Commission shall render a decision on the appeal. In rendering a decision, the Commission shall presume that the action of the Board was proper and shall not substitute its judgment for that of the Board concerning the weight of evidence on a question of fact. The Commission may order the Board to issue or renew the license or modify or set aside the disciplinary action, as applicable, only if the Commission finds that the action of the Board:

      (a) Violates constitutional or statutory provisions;

      (b) Exceeds the statutory authority of the agency;

      (c) Was made upon unlawful procedure;

      (d) Is affected by other error of law;

      (e) Is clearly erroneous in view of the reliable, probative and substantial evidence on the whole record; or

      (f) Is arbitrary or capricious or characterized by abuse of discretion.

      4.  An investigation conducted by the Commission pursuant to the provisions of this section is limited to the application for the issuance or renewal of a license and any information submitted in conjunction with the application or the record of the disciplinary proceeding created by the Board, as applicable. The Board shall provide those records to the Commission upon request. Unless the information is deemed a public record under the provisions of NRS 641A.191 or 641A.320 or other applicable law, the Commission shall keep the information confidential.

      5.  An order of the Board suspending or revoking a license or imposing other disciplinary action against a licensee is final for purposes of judicial review upon the denial of an appeal pursuant to this section.

 


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      Sec. 15. NRS 641A.160 is hereby amended to read as follows:

      641A.160  1.  The Board shall adopt regulations not inconsistent with the provisions of this chapter governing its procedure, the examination and licensing of applicants, the granting, refusal, revocation or suspension of licenses, and the practice of marriage and family therapy and the practice of clinical professional counseling as those practices apply to this chapter.

      2.  The regulations adopted pursuant to subsection 1 must prescribe:

      (a) Uniform standards concerning the locations at which interns provide services;

      (b) Standards concerning the electronic supervision of interns working at remote sites; and

      (c) A manner by which the qualifications for the issuance or renewal of a license under the provisions of this chapter will be made available to the public such that those qualifications are clearly defined and easily understood.

      3.  On the date that the Board gives notice pursuant to NRS 233B.060 of its intent to adopt, amend or repeal a regulation, the Board shall submit the regulation to the Commission on Behavioral Health for review. The Commission shall review the regulation and make recommendations to the Board concerning the advisability of adopting, amending or repealing the regulation and any changes that the Commission deems advisable.

      Sec. 16. NRS 641A.210 is hereby amended to read as follows:

      641A.210  1.  Each person desiring a license must apply to the Board upon a form, and in a manner, prescribed by the Board. The application must be accompanied by the application fee prescribed by the Board and all information required to complete the application.

      2.  The Board shall prescribe forms for applying for the issuance or renewal of a license. The forms must:

      (a) Be available to be completed on the Internet website maintained by the Board;

      (b) Provide immediate, automatic feedback to the applicant concerning whether the applicant has submitted all required information; and

      (c) Automatically store the data submitted by the applicant upon completion of the application.

      Sec. 17. Chapter 641B of NRS is hereby amended by adding thereto the provisions set forth as sections 18 to 22, inclusive, of this act.

      Sec. 18. On or before February 1 of each year, the Board shall submit to the Legislative Committee on Health Care a report which must include:

      1.  The number of complaints received, investigations completed, cases dismissed, cases settled and cases for which hearings were held within the immediately preceding calendar year; and

      2.  The number of applications for the issuance or renewal of a license received by the Board during the immediately preceding calendar year and the number of those applications for which the Board conducted additional review beyond the standard review regularly conducted by the Board.

      Sec. 19. The Board shall:

      1.  Require each new member of the Board to complete orientation within 60 days after his or her appointment to the Board. The orientation must include, without limitation, instruction concerning:

 


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      (a) The purposes of the Board and the duties of its members;

      (b) Applicable laws and regulations, including, without limitation, the provisions of NRS 641B.400 to 641B.450, inclusive, and section 22 of this act and the importance of complying with applicable laws and regulations in a timely manner; and

      (c) Requirements concerning managing the finances of the Board.

      2.  Establish policies concerning compensation and reviewing the performance of the staff of the Board.

      Sec. 20. The Board may enter into an agreement with the Department of Health and Human Services or a division thereof to provide services to carry out or improve any function of the Board. Such services may include, without limitation:

      1.  Assistance in processing applications for the issuance or renewal of licenses;

      2.  Technical assistance;

      3.  Facilitating cooperation with other boards and licensing entities in this State or any other jurisdiction;

      4.  Recommendations to improve and standardize procedures used by the Board; and

      5.  Assistance in identifying resources for improving the operations of the Board.

      Sec. 21. The Board shall prescribe forms for applying for the issuance or renewal of a license. The forms must:

      1.  Be available to be completed on the Internet website maintained by the Board;

      2.  Provide immediate, automatic feedback to the applicant concerning whether the applicant has submitted all required information; and

      3.  Automatically store the data submitted by the applicant upon completion of the application.

      Sec. 22. 1.  Not later than 30 days after the Board denies an application for the issuance or renewal of a license or issues an order imposing disciplinary action against a licensee, the applicant or licensee aggrieved by the order may submit an appeal to the Commission on Behavioral Health. The Commission shall notify the Board not later than 10 days after receiving such an appeal.

      2.  The Commission shall, upon an appeal submitted pursuant to subsection 1 or its own motion, investigate the refusal of the Board to issue or renew a license or any disciplinary action imposed by the Board. The action of the Board remains in effect until the Commission renders a decision pursuant to subsection 3.

      3.  After conducting an investigation pursuant to subsection 2, the Commission shall render a decision on the appeal. In rendering a decision, the Commission shall presume that the action of the Board was proper and shall not substitute its judgment for that of the Board concerning the weight of evidence on a question of fact. The Commission may order the Board to issue or renew the license or modify or set aside the disciplinary action, as applicable, only if the Commission finds that the action of the Board:

      (a) Violates constitutional or statutory provisions;

      (b) Exceeds the statutory authority of the agency;

      (c) Was made upon unlawful procedure;

      (d) Is affected by other error of law;

 


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      (e) Is clearly erroneous in view of the reliable, probative and substantial evidence on the whole record; or

      (f) Is arbitrary or capricious or characterized by abuse of discretion.

      4.  An investigation conducted by the Commission pursuant to the provisions of this section is limited to the application for the issuance or renewal of a license and any information submitted in conjunction with the application or the record of the disciplinary proceeding created by the Board, as applicable. The Board shall provide those records to the Commission upon request. Unless the information is deemed a public record under the provisions of NRS 641B.170 or 641B.430 or other applicable law, the Commission shall keep the information confidential.

      5.  An order of the Board suspending or revoking a license or imposing other disciplinary action against a licensee is final for purposes of judicial review upon the denial of an appeal pursuant to this section.

      Sec. 23. NRS 641B.160 is hereby amended to read as follows:

      641B.160  1.  The Board shall adopt:

      [1.](a) Such regulations as are necessary or desirable to enable it to carry out the provisions of this chapter; [and

      2.](b) Regulations establishing reasonable standards for the psychiatric training and experience necessary for a clinical social worker to be authorized to make the certifications described in NRS 433A.170, 433A.195 and 433A.200 [.] ;

      (c) Regulations prescribing uniform standards concerning the locations at which interns provide services;

      (d) Regulations prescribing standards concerning the electronic supervision of interns working at remote sites; and

      (e) Regulations prescribing the manner by which the qualifications for the issuance or renewal of a license under the provisions of this chapter will be made available to the public such that those qualifications are clearly defined and easily understood.

      2.  On the date that the Board gives notice pursuant to NRS 233B.060 of its intent to adopt, amend or repeal a regulation, the Board shall submit the regulation to the Commission on Behavioral Health for review. The Commission shall review the regulation and make recommendations to the Board concerning the advisability of adopting, amending or repealing the regulation and any changes that the Commission deems advisable.

      Sec. 24. Chapter 641C of NRS is hereby amended by adding thereto the provisions set forth as sections 25 to 29, inclusive, of this act.

      Sec. 25. On or before February 1 of each year, the Board shall submit to the Legislative Committee on Health Care a report which must include:

      1.  The number of complaints received, investigations completed, cases dismissed, cases settled and cases for which hearings were held within the immediately preceding calendar year; and

      2.  The number of applications for the issuance or renewal of a license or certificate received by the Board during the immediately preceding calendar year and the number of those applications for which the Board conducted additional review beyond the standard review regularly conducted by the Board.

      Sec. 26. The Board shall:

 


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      1.  Require each new member of the Board to complete orientation within 60 days after his or her appointment to the Board. The orientation must include, without limitation, instruction concerning:

      (a) The purposes of the Board and the duties of its members;

      (b) Applicable laws and regulations, including, without limitation, the provisions of NRS 641C.700 to 641C.760, inclusive, and section 29 of this act and the importance of complying with applicable laws and regulations in a timely manner; and

      (c) Requirements concerning managing the finances of the Board.

      2.  Establish policies concerning compensation and reviewing the performance of the staff of the Board.

      Sec. 27. The Board may enter into an agreement with the Department of Health and Human Service or a division thereof to provide services to carry out or improve any function of the Board. Such services may include, without limitation:

      1.  Assistance in processing applications for the issuance or renewal of licenses and certificates;

      2.  Technical assistance;

      3.  Facilitating cooperation with other boards and licensing entities in this State or any other jurisdiction;

      4.  Recommendations to improve and standardize procedures used by the Board; and

      5.  Assistance in identifying resources for improving the operations of the Board.

      Sec. 28. The Board shall prescribe forms for applying for the issuance or renewal of a license or certificate. The forms must:

      1.  Be available to be completed on the Internet website maintained by the Board;

      2.  Provide immediate, automatic feedback to the applicant concerning whether the applicant has submitted all required information; and

      3.  Automatically store the data submitted by the applicant upon completion of the application.

      Sec. 29. 1.  Not later than 30 days after the Board denies an application for the issuance or renewal of a license or certificate or issues an order imposing disciplinary action against a licensee or the holder of a certificate, the applicant, licensee or holder of a certificate aggrieved by the order may submit an appeal to the Commission on Behavioral Health. The Commission shall notify the Board not later than 10 days after receiving such an appeal.

      2.  The Commission shall, upon an appeal submitted pursuant to subsection 1 or its own motion, investigate the refusal of the Board to issue or renew a license or certificate or any disciplinary action imposed by the Board. The action of the Board remains in effect until the Commission renders a decision pursuant to subsection 3.

      3.  After conducting an investigation pursuant to subsection 2, the Commission shall render a decision on the appeal. In rendering a decision, the Commission shall presume that the action of the Board was proper and shall not substitute its judgment for that of the Board concerning the weight of evidence on a question of fact. The Commission may order the Board to issue or renew the license or certificate or modify or set aside the disciplinary action, as applicable, only if the Commission finds that the action of the Board:

 


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      (a) Violates constitutional or statutory provisions;

      (b) Exceeds the statutory authority of the agency;

      (c) Was made upon unlawful procedure;

      (d) Is affected by other error of law;

      (e) Is clearly erroneous in view of the reliable, probative and substantial evidence on the whole record; or

      (f) Is arbitrary or capricious or characterized by abuse of discretion.

      4.  An investigation conducted by the Commission pursuant to the provisions of this section is limited to the application for the issuance or renewal of a license or certificate and any information submitted in conjunction with the application or the record of the disciplinary proceeding created by the Board, as applicable. The Board shall provide those records to the Commission upon request. Unless the information is deemed a public record under the provisions of NRS 641C.720 or 641C.760 or other applicable law, the Commission shall keep the information confidential.

      5.  An order of the Board suspending or revoking a license or certificate or imposing other disciplinary action against a licensee or the holder of a certificate is final for purposes of judicial review upon the denial of an appeal pursuant to this section.

      Sec. 30. NRS 641C.200 is hereby amended to read as follows:

      641C.200  1.  The Board shall adopt such regulations as are necessary to carry out the provisions of this chapter, including, without limitation, regulations that prescribe:

      (a) The ethical standards for licensed and certified counselors and certified interns; [and]

      (b) The requirements for continuing education for the renewal, restoration or reinstatement of a license or certificate [.] ;

      (c) Uniform standards concerning the locations at which interns provide services;

      (d) Standards concerning the electronic supervision of interns working at remote sites; and

      (e) The manner by which the qualifications for the issuance or renewal of a license or certificate under the provisions of this chapter will be made available to the public such that those qualifications are clearly defined and easily understood.

      2.  The Board may adopt regulations that prescribe:

      (a) The contents of a written and oral examination concerning the practice of counseling problem gamblers;

      (b) The grounds for initiating disciplinary action against a certified problem gambling counselor or certified problem gambling counselor intern; and

      (c) Disciplinary procedures for certified problem gambling counselors and certified problem gambling counselor interns, including the suspension, revocation and reinstatement of a certificate as a problem gambling counselor or problem gambling counselor intern.

      3.  Any regulations adopted by the Board pursuant to this section must be consistent with the provisions of chapter 622A of NRS.

      4.  On the date that the Board gives notice pursuant to NRS 233B.060 of its intent to adopt, amend or repeal a regulation, the Board shall submit the regulation to the Commission on Behavioral Health for review. The Commission shall review the regulation and make recommendations to the Board concerning the advisability of adopting, amending or repealing the regulation and any changes that the Commission deems advisable.

 


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Board concerning the advisability of adopting, amending or repealing the regulation and any changes that the Commission deems advisable.

      Sec. 31. NRS 641C.260 is hereby amended to read as follows:

      641C.260  Each applicant for a license or certificate must submit to the Board:

      1.  An application on a form [provided] prescribed by the Board [;] pursuant to section 28 of this act;

      2.  A complete set of fingerprints and written permission authorizing the Board to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report; and

      3.  The application fee prescribed in NRS 641C.470.

      Sec. 32. NRS 232.361 is hereby amended to read as follows:

      232.361  1.  There is hereby created in the Department a Commission on Behavioral Health consisting of 10 members appointed by the Governor, at least 3 of whom have training or experience in dealing with intellectual disabilities.

      2.  The Governor shall appoint:

      (a) A psychiatrist licensed to practice medicine in this State, from a list of three candidates submitted by the Nevada Psychiatric Association;

      (b) A psychologist licensed to practice in this State and experienced in clinical practice, from a list of four candidates submitted by the Nevada Psychological Association, two of whom must be from northern Nevada and two of whom must be from southern Nevada;

      (c) A physician, other than a psychiatrist, licensed to practice medicine in this State and who has experience in dealing with intellectual disabilities, from a list of three candidates submitted by the Nevada State Medical Association;

      (d) A clinical social worker licensed to practice in this State who [has a master’s degree and] has experience in dealing with mental illness or intellectual disabilities, or both;

      (e) A registered nurse licensed to practice in this State who has experience in dealing with mental illness or intellectual disabilities, or both, from a list of three candidates submitted by the Nevada Nurses Association;

      (f) A marriage and family therapist or clinical professional counselor licensed [to practice in this State, from a list of three candidates submitted by the Nevada Association for Marriage and Family Therapy;] pursuant to chapter 641A of NRS;

      (g) A person who [has knowledge and experience in the prevention of alcohol and drug abuse and the treatment and recovery of alcohol and drug abusers through a program or service provided] is licensed or certified pursuant to chapter [458] 641C of NRS [, from a list of three candidates submitted by the Division of Public and Behavioral Health of the Department;] who is not an intern;

      (h) A current or former recipient of mental health services provided by the State or any agency thereof;

      (i) A representative of the general public who has a special interest in the field of mental health; and

      (j) A representative of the general public who has a special interest in the field of intellectual disabilities.

      3.  The Governor shall appoint the Chair of the Commission from among its members.

 


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      4.  After the initial terms, each member shall serve a term of 4 years. If a vacancy occurs during a member’s term, the Governor shall appoint a person qualified under this section to replace that member for the remainder of the unexpired term.

      5.  A person may not serve concurrently as a member of the Commission and a member of the Board of Psychological Examiners, the Board of Examiners for Marriage and Family Therapists and Clinical Professional Counselors, the Board of Examiners for Social Workers or the Board of Examiners for Alcohol, Drug and Gambling Counselors.

      Sec. 33. NRS 239.010 is hereby amended to read as follows:

      239.010  1.  Except as otherwise provided in this section and NRS 1.4683, 1.4687, 1A.110, 41.071, 49.095, 62D.420, 62D.440, 62E.516, 62E.620, 62H.025, 62H.030, 62H.170, 62H.220, 62H.320, 75A.100, 75A.150, 76.160, 78.152, 80.113, 81.850, 82.183, 86.246, 86.54615, 87.515, 87.5413, 87A.200, 87A.580, 87A.640, 88.3355, 88.5927, 88.6067, 88A.345, 88A.7345, 89.045, 89.251, 90.730, 91.160, 116.757, 116A.270, 116B.880, 118B.026, 119.260, 119.265, 119.267, 119.280, 119A.280, 119A.653, 119B.370, 119B.382, 120A.690, 125.130, 125B.140, 126.141, 126.161, 126.163, 126.730, 127.007, 127.057, 127.130, 127.140, 127.2817, 130.312, 130.712, 136.050, 159.044, 172.075, 172.245, 176.015, 176.0625, 176.09129, 176.156, 176A.630, 178.39801, 178.4715, 178.5691, 179.495, 179A.070, 179A.165, 179A.450, 179D.160, 200.3771, 200.3772, 200.5095, 200.604, 202.3662, 205.4651, 209.392, 209.3925, 209.419, 209.521, 211A.140, 213.010, 213.040, 213.095, 213.131, 217.105, 217.110, 217.464, 217.475, 218A.350, 218E.625, 218F.150, 218G.130, 218G.240, 218G.350, 228.270, 228.450, 228.495, 228.570, 231.069, 231.1473, 233.190, 237.300, 239.0105, 239.0113, 239B.030, 239B.040, 239B.050, 239C.140, 239C.210, 239C.230, 239C.250, 239C.270, 240.007, 241.020, 241.030, 241.039, 242.105, 244.264, 244.335, 250.087, 250.130, 250.140, 250.150, 268.095, 268.490, 268.910, 271A.105, 281.195, 281A.350, 281A.440, 281A.550, 284.4068, 286.110, 287.0438, 289.025, 289.080, 289.387, 289.830, 293.5002, 293.503, 293.558, 293B.135, 293D.510, 331.110, 332.061, 332.351, 333.333, 333.335, 338.070, 338.1379, 338.16925, 338.1725, 338.1727, 348.420, 349.597, 349.775, 353.205, 353A.049, 353A.085, 353A.100, 353C.240, 360.240, 360.247, 360.255, 360.755, 361.044, 361.610, 365.138, 366.160, 368A.180, 372A.080, 378.290, 378.300, 379.008, 385A.830, 385B.100, 387.626, 387.631, 388.1455, 388.259, 388.501, 388.503, 388.513, 388.750, 391.035, 392.029, 392.147, 392.264, 392.271, 392.850, 394.167, 394.1698, 394.447, 394.460, 394.465, 396.3295, 396.405, 396.525, 396.535, 398.403, 408.3885, 408.3886, 408.3888, 408.5484, 412.153, 416.070, 422.2749, 422.305, 422A.342, 422A.350, 425.400, 427A.1236, 427A.872, 432.205, 432B.175, 432B.280, 432B.290, 432B.407, 432B.430, 432B.560, 433.534, 433A.360, 439.840, 439B.420, 440.170, 441A.195, 441A.220, 441A.230, 442.330, 442.395, 445A.665, 445B.570, 449.209, 449.245, 449.720, 450.140, 453.164, 453.720, 453A.610, 453A.700, 458.055, 458.280, 459.050, 459.3866, 459.555, 459.7056, 459.846, 463.120, 463.15993, 463.240, 463.3403, 463.3407, 463.790, 467.1005, 480.365, 481.063, 482.170, 482.5536, 483.340, 483.363, 483.575, 483.659, 483.800, 484E.070, 485.316, 503.452, 522.040, 534A.031, 561.285, 571.160, 584.655, 587.877, 598.0964, 598.098, 598A.110, 599B.090, 603.070, 603A.210, 604A.710, 612.265, 616B.012, 616B.015, 616B.315, 616B.350, 618.341, 618.425, 622.310, 623.131, 623A.137, 624.110, 624.265, 624.327, 625.425, 625A.185, 628.418, 628B.230, 628B.760, 629.047, 629.069, 630.133, 630.30665, 630.336, 630A.555, 631.368, 632.121, 632.125, 632.

 


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623A.137, 624.110, 624.265, 624.327, 625.425, 625A.185, 628.418, 628B.230, 628B.760, 629.047, 629.069, 630.133, 630.30665, 630.336, 630A.555, 631.368, 632.121, 632.125, 632.405, 633.283, 633.301, 633.524, 634.055, 634.214, 634A.185, 635.158, 636.107, 637.085, 637B.288, 638.087, 638.089, 639.2485, 639.570, 640.075, 640A.220, 640B.730, 640C.400, 640C.745, 640C.760, 640D.190, 640E.340, 641.090, 641A.191, 641B.170, 641C.760, 642.524, 643.189, 644.446, 645.180, 645.625, 645A.050, 645A.082, 645B.060, 645B.092, 645C.220, 645C.225, 645D.130, 645D.135, 645E.300, 645E.375, 645G.510, 645H.320, 645H.330, 647.0945, 647.0947, 648.033, 648.197, 649.065, 649.067, 652.228, 654.110, 656.105, 661.115, 665.130, 665.133, 669.275, 669.285, 669A.310, 671.170, 673.430, 675.380, 676A.340, 676A.370, 677.243, 679B.122, 679B.152, 679B.159, 679B.190, 679B.285, 679B.690, 680A.270, 681A.440, 681B.260, 681B.410, 681B.540, 683A.0873, 685A.077, 686A.289, 686B.170, 686C.306, 687A.110, 687A.115, 687C.010, 688C.230, 688C.480, 688C.490, 692A.117, 692C.190, 692C.3536, 692C.3538, 692C.354, 692C.420, 693A.480, 693A.615, 696B.550, 703.196, 704B.320, 704B.325, 706.1725, 706A.230, 710.159, 711.600, and sections 6, 14, 22 and 29 of this act, sections 35, 38 and 41 of chapter 478, Statutes of Nevada 2011 and section 2 of chapter 391, Statutes of Nevada 2013 and unless otherwise declared by law to be confidential, all public books and public records of a governmental entity must be open at all times during office hours to inspection by any person, and may be fully copied or an abstract or memorandum may be prepared from those public books and public records. Any such copies, abstracts or memoranda may be used to supply the general public with copies, abstracts or memoranda of the records or may be used in any other way to the advantage of the governmental entity or of the general public. This section does not supersede or in any manner affect the federal laws governing copyrights or enlarge, diminish or affect in any other manner the rights of a person in any written book or record which is copyrighted pursuant to federal law.

      2.  A governmental entity may not reject a book or record which is copyrighted solely because it is copyrighted.

      3.  A governmental entity that has legal custody or control of a public book or record shall not deny a request made pursuant to subsection 1 to inspect or copy or receive a copy of a public book or record on the basis that the requested public book or record contains information that is confidential if the governmental entity can redact, delete, conceal or separate the confidential information from the information included in the public book or record that is not otherwise confidential.

      4.  A person may request a copy of a public record in any medium in which the public record is readily available. An officer, employee or agent of a governmental entity who has legal custody or control of a public record:

      (a) Shall not refuse to provide a copy of that public record in a readily available medium because the officer, employee or agent has already prepared or would prefer to provide the copy in a different medium.

      (b) Except as otherwise provided in NRS 239.030, shall, upon request, prepare the copy of the public record and shall not require the person who has requested the copy to prepare the copy himself or herself.

      Sec. 34. NRS 433.314 is hereby amended to read as follows:

      433.314  The Commission shall:

 


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κ2017 Statutes of Nevada, Page 2248 (CHAPTER 363, AB 457)κ

 

      1.  Establish policies to ensure adequate development and administration of services for persons with mental illness, persons with intellectual disabilities and persons with related conditions, persons with substance use disorders or persons with co-occurring disorders, including services to prevent mental illness, intellectual disabilities and related conditions, substance use disorders and co-occurring disorders, and services provided without admission to a facility or institution;

      2.  Set policies for the care and treatment of persons with mental illness, persons with intellectual disabilities and persons with related conditions, persons with substance use disorders or persons with co-occurring disorders provided by all state agencies;

      3.  Review the programs and finances of the Division; [and]

      4.  Report at the beginning of each year to the Governor and at the beginning of each odd-numbered year to the Legislature on the quality of the care and treatment provided for persons with mental illness, persons with intellectual disabilities and persons with related conditions, persons with substance use disorders or persons with co-occurring disorders in this State and on any progress made toward improving the quality of that care and treatment [.] ;

      5.  Hear appeals, conduct investigations and issue orders pursuant to sections 6, 14, 22 and 29 of this act; and

      6.  Review and make recommendations concerning regulations submitted to the Commission for review pursuant to NRS 641.100, 641A.160, 641B.160 and 641C.200.

      Sec. 34.5. NRS 433.314 is hereby amended to read as follows:

      433.314  The Commission shall:

      1.  Establish policies to ensure adequate development and administration of services for persons with mental illness, persons with intellectual disabilities and persons with related conditions, persons with substance use disorders or persons with co-occurring disorders, including services to prevent mental illness, intellectual disabilities and related conditions, substance use disorders and co-occurring disorders, and services provided without admission to a facility or institution;

      2.  Set policies for the care and treatment of persons with mental illness, persons with intellectual disabilities and persons with related conditions, persons with substance use disorders or persons with co-occurring disorders provided by all state agencies;

      3.  Review the programs and finances of the Division;

      4.  Report at the beginning of each year to the Governor and at the beginning of each odd-numbered year to the Legislature on the quality of the care and treatment provided for persons with mental illness, persons with intellectual disabilities and persons with related conditions, persons with substance use disorders or persons with co-occurring disorders in this State and on any progress made toward improving the quality of that care and treatment; and

      5.  [Hear appeals, conduct investigations and issue orders pursuant to sections 6, 14, 22 and 29 of this act; and

      6.]  Review and make recommendations concerning regulations submitted to the Commission for review pursuant to NRS 641.100, 641A.160, 641B.160 and 641C.200.

      Sec. 35.  1.  On or before January 1, 2018, the Board of Psychological Examiners, the Board of Examiners for Marriage and Family Therapists and Clinical Professional Counselors, the Board of Examiners for Social Workers and the Board of Examiners for Alcohol, Drug and Gambling Counselors, respectively, shall each:

 


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κ2017 Statutes of Nevada, Page 2249 (CHAPTER 363, AB 457)κ

 

Clinical Professional Counselors, the Board of Examiners for Social Workers and the Board of Examiners for Alcohol, Drug and Gambling Counselors, respectively, shall each:

      (a) Conduct an analysis of the necessity of the costs of the Board, whether the fees charged by the Board are necessary and sufficient to pay those costs, the Board’s compliance with applicable law and the need for revision of the regulations of the Board. The analysis must include, without limitation, an analysis of the Board’s:

             (1) Recognition of licenses, certificates and other credentials from jurisdictions outside this State, including, without limitation, the number of licenses by endorsement it has issued during the 3-year period ending on December 1, 2017; and

             (2) Efforts to comply with the amendatory provisions of this act.

      (b) Submit to the Legislative Committee on Health Care a report containing the results of the analysis conducted pursuant to paragraph (a).

      2.  The Legislative Committee on Health Care shall review the reports submitted to subsection 1 and may make recommendations to:

      (a) The Board of Psychological Examiners, the Board of Examiners for Marriage and Family Therapists and Clinical Professional Counselors, the Board of Examiners for Social Workers or the Board of Examiners for Alcohol, Drug and Gambling Counselors, as applicable, concerning any action necessary to comply with existing law or improve the processes used by the board.

      (b) The 80th Session of the Nevada Legislature concerning any appropriate legislation necessary to improve the processes used by the Board of Psychological Examiners, the Board of Examiners for Marriage and Family Therapists and Clinical Professional Counselors, the Board of Examiners for Social Workers or the Board of Examiners for Alcohol, Drug and Gambling Counselors.

      Sec. 35.5.  Not later than March 1, 2018, each person who is serving on January 1, 2018, as a member of the Board of Psychological Examiners, the Board of Examiners for Marriage and Family Therapists and Clinical Professional Counselors, the Board of Examiners for Social Workers or the Board of Examiners for Alcohol, Drug and Gambling Counselors, shall complete the orientation required for a new member of the Board of which he or she is a member pursuant to section 3, 12, 19 or 26 of this act, respectively.

      Sec. 36.  1.  The term of any member of the Commission on Behavioral Health who is serving on the Commission pursuant to paragraph (d) or (g) of subsection 2 of NRS 232.361 on October 1, 2017, who does not meet the qualifications prescribed by paragraph (d) or (g) of subsection 2, as applicable, of NRS 232.361, as amended by section 32 of this act, expires on that date. The Governor shall appoint a person who meets the qualifications prescribed by paragraph (d) or (g) of subsection 2, as applicable, of NRS 232.361, as amended by section 32 of this act, to serve the remainder of that term.

      2.  The term of any member of the Commission on Behavioral Health who is serving on the Commission in violation of subsection 5 of NRS 232.361, as amended by section 32 of this act, on October 1, 2017, expires on that date. The Governor shall appoint a person similarly qualified to serve the remainder of that term.

 


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κ2017 Statutes of Nevada, Page 2250 (CHAPTER 363, AB 457)κ

 

      Sec. 36.5.  The provisions of subsection 1 of NRS 218D.380 do not apply to any provision of this act which adds or revises a requirement to submit a report to the Legislature.

      Sec. 37.  1.  This section and sections 1 to 31, inclusive, 33, 34, 35, 35.5 and 36.5 of this act become effective upon passage and approval for the purpose of adopting regulations and performing any other administrative tasks that are necessary to carry out the provisions of this act and on January 1, 2018, for all other purposes.

      2.  Sections 32 and 36 of this act become effective on October 1, 2017.

      3.  Sections 6, 14, 22 and 29 of this act and the amendatory provisions of section 9 of this act expire by limitation on December 31, 2019.

      4.  Section 34.5 of this act becomes effective on January 1, 2020.

________

CHAPTER 364, SB 409

Senate Bill No. 409–Senators Manendo, Cannizzaro, Parks; Atkinson, Cancela, Denis, Ratti, Segerblom, Spearman and Woodhouse

 

CHAPTER 364

 

[Approved: June 4, 2017]

 

AN ACT relating to animals; revising provisions which prohibit a person from allowing a pet to remain unattended in a motor vehicle under certain circumstances; requiring an animal control officer to take possession of and provide shelter and care for an animal being treated cruelly under certain circumstances; authorizing an animal control officer to take possession of any animals or other property used in fights among animals under certain circumstances; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law prohibits a person from allowing a cat or dog to remain unattended in a parked or standing motor vehicle during a period of extreme heat or cold or in any other manner that endangers the health or safety of the animal. Exceptions are provided for certain animals used by or in the possession of certain law enforcement, animal control or search and rescue personnel or certain persons who are actively engaged in hunting or related activities. Certain peace officers, animal control personnel and other public safety personnel are authorized to use any force that is reasonable and necessary under the circumstances to remove the cat or dog from the motor vehicle. A person who violates that prohibition is guilty of a misdemeanor. A cat or dog removed from a motor vehicle under these circumstances is deemed an animal being treated cruelly, and the law enforcement officer or other person rendering emergency services who removed the cat or dog is extended the same immunity from liability for his or her actions that is conferred upon law enforcement or animal control personnel who are required to seize animals which are being treated cruelly. (NRS 574.055, 574.195)

      A similar existing law prohibits a parent, legal guardian or other person responsible for a child who is 7 years of age or younger from knowingly and intentionally leaving that child in a motor vehicle if: (1) the conditions present a significant risk to the health and safety of the child; or (2) the engine of the motor vehicle is running or the keys are in the ignition. Exceptions are provided if: (1) the child is being supervised by and within the sight of a person who is at least 12 years of age; or (2) the person responsible for the child unintentionally locks a motor vehicle with the child in the vehicle.

 


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κ2017 Statutes of Nevada, Page 2251 (CHAPTER 364, SB 409)κ

 

vehicle with the child in the vehicle. A person who violates that prohibition is guilty of a misdemeanor. A law enforcement officer or other person rendering emergency services may, without incurring civil liability, use any reasonable means necessary to protect the child and to remove the child from the motor vehicle. (NRS 202.575)

      Section 5 of this bill repeals the provisions of existing law which prohibit a person from allowing a cat or dog to remain unattended in a motor vehicle. Section 3 of this bill reenacts those provisions to apply to a pet with certain revisions based upon the provisions of existing law related to leaving a child unattended in a motor vehicle, excepting the provision regarding leaving a pet in the motor vehicle with the motor running. Section 3 also provides that certain persons are authorized, without incurring civil liability, to use any reasonable means necessary to protect the pet and to remove the pet from the motor vehicle. Section 2 of this bill adds a definition of the term “motor vehicle” to chapter 202 of NRS to apply to both the new section added by section 3 of this bill and the similar existing law that applies to children. Section 4 of this bill amends the existing law that applies to children to remove the definition made superfluous by section 2.

      Existing law requires any peace officers and officers of a society for the prevention of cruelty to animals who are authorized to make arrests to take possession of animals being treated cruelly. (NRS 574.055) Section 4.3 of this bill requires animal control officers to take such possession, and removes that requirement for officers of a society for the prevention of cruelty to animals who are authorized to make arrests. Existing law also authorizes peace officers authorized to make arrests to take possession of any animals or other property being used in fights among animals under certain circumstances. (NRS 574.080) Section 4.7 of this bill extends that authority to animal control officers.

 

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

      Sec. 2. As used in NRS 202.575 and section 3 of this act, unless the context otherwise requires, “motor vehicle” means every vehicle which is self-propelled but not operated upon rails.

      Sec. 3. 1.  Except as otherwise provided in subsection 3, a person shall not allow a pet to remain unattended in a parked or standing motor vehicle if conditions, including, without limitation, extreme heat or cold, present a significant risk to the health and safety of the pet.

      2.  Any:

      (a) Peace officer;

      (b) Animal control officer;

      (c) Governmental officer or employee whose primary duty is to ensure public safety;

      (d) Employee or volunteer of any organized fire department; or

      (e) Member of a search and rescue organization in this State that is under the direct supervision of a sheriff,

Κ who reasonably believes that a violation of this section has occurred may, without incurring civil liability, use any reasonable means necessary to protect the pet and to remove the pet from the motor vehicle.

      3.  The provisions of subsection 1 do not apply to:

      (a) A police animal or an animal that is used by:

             (1) A federal law enforcement agency to assist the agency in carrying out the duties of the agency; or

 


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κ2017 Statutes of Nevada, Page 2252 (CHAPTER 364, SB 409)κ

 

             (2) A search and rescue organization in this State that is under the direction of a sheriff to assist the organization in carrying out the activities of the organization; or

      (b) A dog that is under the possession or control of:

             (1) An animal control officer; or

             (2) A first responder during an emergency.

      4.  A pet that is removed from a motor vehicle pursuant to subsection 2 shall be deemed to be an animal being treated cruelly for the purposes of NRS 574.055. A person required by NRS 574.055 to take possession of a pet removed pursuant to this section may take any action relating to the pet specified in NRS 574.055 and is entitled to any lien or immunity from liability that is applicable pursuant to that section.

      5.  The provisions of this section do not:

      (a) Interfere with or prohibit any activity, law or right specified in NRS 574.200; or

      (b) Apply to a person who unintentionally locks a motor vehicle with a pet in the motor vehicle.

      6.  A person who violates a provision of subsection 1 is guilty of a misdemeanor.

      7.  As used in this section:

      (a) “Animal” has the meaning ascribed to it in NRS 574.050.

      (b) “First responder” has the meaning ascribed to it in NRS 574.050.

      (c) “Pet” means a domesticated animal owned or possessed by a person for the purpose of pleasure or companionship and includes, without limitation, a cat or dog.

      (d) “Police animal” has the meaning ascribed to it in NRS 574.050.

      Sec. 4. NRS 202.575 is hereby amended to read as follows:

      202.575  1.  A parent, legal guardian or other person responsible for a child who is 7 years of age or younger shall not knowingly and intentionally leave that child in a motor vehicle if:

      (a) The conditions present a significant risk to the health and safety of the child; or

      (b) The engine of the motor vehicle is running or the keys to the vehicle are in the ignition,

Κ unless the child is being supervised by and within the sight of a person who is at least 12 years of age.

      2.  A person who violates the provisions of subsection 1 is guilty of a misdemeanor. The court may suspend the proceedings against a person who is charged with violating subsection 1 and dismiss the proceedings against the person if the person presents proof to the court, within the time specified by the court, that the person has successfully completed an educational program satisfactory to the court. The educational program must include, without limitation, information concerning the dangers of leaving a child unattended or inadequately attended in a motor vehicle.

      3.  A law enforcement officer or other person rendering emergency services who reasonably believes that a violation of this section has occurred may, without incurring civil liability, use any reasonable means necessary to protect the child and to remove the child from the motor vehicle.

      4.  No person may be prosecuted under this section if the conduct would give rise to prosecution under any other provision of law.

      5.  The provisions of this section do not apply to a person who unintentionally locks a motor vehicle with a child in the vehicle.

 


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κ2017 Statutes of Nevada, Page 2253 (CHAPTER 364, SB 409)κ

 

      [6.  As used in this section, “motor vehicle” means every vehicle which is self-propelled but not operated upon rails.]

      Sec. 4.3. NRS 574.055 is hereby amended to read as follows:

      574.055  1.  Any peace officer or animal control officer [of a society for the prevention of cruelty to animals who is authorized to make arrests pursuant to NRS 574.040] shall, upon discovering any animal which is being treated cruelly, take possession of it and provide it with shelter and care or, upon obtaining written permission from the owner of the animal, may destroy it in a humane manner.

      2.  If an officer takes possession of an animal, the officer shall give to the owner, if the owner can be found, a notice containing a written statement of the reasons for the taking, the location where the animal will be cared for and sheltered, and the fact that there is a limited lien on the animal for the cost of shelter and care. If the owner is not present at the taking and the officer cannot find the owner after a reasonable search, the officer shall post the notice on the property from which the officer takes the animal. If the identity and address of the owner are later determined, the notice must be mailed to the owner immediately after the determination is made.

      3.  An officer who takes possession of an animal pursuant to this section has a lien on the animal for the reasonable cost of care and shelter furnished to the animal and, if applicable, for its humane destruction. The lien does not extend to the cost of care and shelter for more than 2 weeks.

      4.  Upon proof that the owner has been notified in accordance with the provisions of subsection 2 or, if the owner has not been found or identified, that the required notice has been posted on the property where the animal was found, a court of competent jurisdiction may, after providing an opportunity for a hearing, order the animal sold at auction, humanely destroyed or continued in the care of the officer for such disposition as the officer sees fit.

      5.  An officer who seizes an animal pursuant to this section is not liable for any action arising out of the taking or humane destruction of the animal.

      6.  The provisions of this section do not apply to any animal which is located on land being employed for an agricultural use as defined in NRS 361A.030 unless the owner of the animal or the person charged with the care of the animal is in violation of paragraph (c) of subsection 1 of NRS 574.100 and the impoundment is accomplished with the concurrence and supervision of the sheriff or the sheriff’s designee, a licensed veterinarian and the district brand inspector or the district brand inspector’s designee. In such a case, the sheriff shall direct that the impoundment occur not later than 48 hours after the veterinarian determines that a violation of paragraph (c) of subsection 1 of NRS 574.100 exists.

      7.  The owner of an animal impounded in accordance with the provisions of subsection 6 must, before the animal is released to the owner’s custody, pay the charges approved by the sheriff as reasonably related to the impoundment, including the charges for the animal’s food and water. If the owner is unable or refuses to pay the charges, the State Department of Agriculture shall sell the animal. The Department shall pay to the owner the proceeds of the sale remaining after deducting the charges reasonably related to the impoundment.

      Sec. 4.7. NRS 574.080 is hereby amended to read as follows:

      574.080  1.  Any peace officer or animal control officer authorized by law to make arrests may lawfully take possession of any animals, or implements, or other property used or employed, or about to be used or employed, in the violation of any provision of law relating to fights among animals.

 


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κ2017 Statutes of Nevada, Page 2254 (CHAPTER 364, SB 409)κ

 

implements, or other property used or employed, or about to be used or employed, in the violation of any provision of law relating to fights among animals.

      2.  The officer shall state to the person in charge thereof, at the time of such taking, his or her name and residence, and also the time and place at which the application provided for by NRS 574.090 will be made.

      Sec. 5. NRS 574.195 is hereby repealed.

      Sec. 6.  This act becomes effective on July 1, 2017.

________

CHAPTER 365, SB 501

Senate Bill No. 501–Committee on Government Affairs

 

CHAPTER 365

 

[Approved: June 4, 2017]

 

AN ACT relating to deceptive trade practices; extending the prospective expiration of the Consumer Affairs Unit of the Department of Business and Industry; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      During the 2015 Legislative Session, the Consumer Affairs Unit in the Department of Business and Industry which was temporarily created in 2015 to perform certain duties of the Consumer Affairs Division of the Department was extended through June 30, 2017. (Section 14 of chapter 528, Statutes of Nevada 2015, p. 3652) Section 1 of this bill extends the prospective expiration of the Consumer Affairs Unit to June 30, 2019. Sections 2 and 3 of this bill make conforming changes.

 

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 232.511 is hereby amended to read as follows:

      232.511  1.  From July 1, 2015, through June 30, [2017,] 2019, for the purposes of the provisions of NRS 598.0903 to 598.0999, inclusive, any duty or authority conferred upon or any reference to the Consumer Affairs Division of the Department of Business and Industry shall be deemed to be the duty or authority of, or a reference to, the Consumer Affairs Unit which is hereby created in the Department of Business and Industry.

      2.  The Director of the Department of Business and Industry shall designate a Deputy Director of the Department of Business and Industry to serve as the Commissioner of Consumer Affairs and Chief of the Consumer Affairs Unit.

      Sec. 2. Section 80 of chapter 475, Statutes of Nevada 2009, as last amended by chapter 528, Statutes of Nevada 2015, at page 3653, is hereby amended to read as follows:

       Sec. 80.  1.  This section and sections 1 to 35, inclusive, 36 to 57, inclusive, and 58 to 79, inclusive, of this act become effective on July 1, 2009.

 


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κ2017 Statutes of Nevada, Page 2255 (CHAPTER 365, SB 501)κ

 

       2.  The amendatory provisions of sections 3, 4, 50, 51, 57, 58 to 75, inclusive, and subsection 2 of section 77 of this act expire by limitation on June 30, [2017.] 2019.

       3.  Sections 35.1 to 35.95, inclusive, and 57.5 of this act become effective on July 1, [2017.] 2019.

       4.  The amendatory provisions of sections 36 to 49, inclusive, of this act expire by limitation on June 30, 2015.

      Sec. 3. Section 17 of chapter 528, Statutes of Nevada 2015, at page 3653, is hereby amended to read as follows:

       Sec. 17.  1.  This section and sections 14, 15 and 16 of this act become effective upon passage and approval.

       2.  Sections 1 to 13, inclusive, of this act become effective:

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

       (b) On July 1, 2015, for all other purposes.

       3.  Section 14 of this act expires by limitation on June 30, [2017.] 2019.

      Sec. 4.  This act becomes effective upon passage and approval.

________

CHAPTER 366, SB 512

Senate Bill No. 512–Committee on Natural Resources

 

CHAPTER 366

 

[Approved: June 4, 2017]

 

AN ACT relating to state lands; requiring the State Land Registrar to establish certain fees by regulation for the use of state lands; revising provisions relating to the accounting and use of the proceeds of certain fees for the use of state lands; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Under existing law, the State Land Registrar is required to charge fees in certain amounts for the use of certain state lands. (NRS 322.110, 322.120) Sections 1 and 2 of this bill require the State Land Registrar to establish the amount of these fees by regulation. Section 5 of this bill provides that the existing fees remain in effect until the State Land Registrar has established such fees by regulation.

      Under existing law, the proceeds of certain fees for authorization to use certain state lands must be paid to the State General Fund. (NRS 322.160) Section 4 of this bill provides that the proceeds of certain fees relating to navigable bodies of water that are in excess of $65,000 must be accounted for separately and used by the State Land Registrar to carry out programs to preserve, protect, restore and enhance the natural environment of the Lake Tahoe Basin.

 

 

 

 

 

 

 


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κ2017 Statutes of Nevada, Page 2256 (CHAPTER 366, SB 512)κ

 

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

 

      Whereas, The Legislature of the State of Nevada by chapter 459, Statutes of Nevada 1993, established a fee schedule in 1993 for the application for and use of lands owned by the State, including, without limitation, sovereign lands under navigable waters, which was incorporated in Nevada Revised Statutes as NRS 322.110 and 322.120; and

      Whereas, The Legislature of the State of Nevada amended the statutes establishing the fee schedule in 1995 by chapters 293 and 645, Statutes of Nevada 1995; and

      Whereas, This fee schedule has not been modified since 1995; and

      Whereas, The fees charged under this fee schedule are less than the fair market value for the use of state land and less than what other western states and agencies charge for comparable uses; and

      Whereas, The State Land Registrar is authorized to charge a nonrefundable application fee and annual use fee for various uses of state land pursuant to NRS 322.110 and 322.120; and

      Whereas, The fees charged by the State Land Registrar require modification in order to enable the State Land Registrar to charge a more appropriate fee for the application for and use of state lands; now, therefore,

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. NRS 322.110 is hereby amended to read as follows:

      322.110  1.  Except as otherwise provided in this section or by specific statute, the State Land Registrar shall charge [the following nonrefundable fees:] a nonrefundable fee in an amount established by regulation for the following:

      (a) For the consideration of an application for the issuance of any lease, easement, permit, license or other authorization for:

             (1) Any commercial use of state land other than an agricultural use . [, a fee of $200.]

             (2) Any agricultural use of state land . [, a fee of $150.]

             (3) Any other use of state land . [, a fee of $100.]

      (b) For the consideration of an application for the amendment of any lease, easement, permit, license or other authorization for:

             (1) Any commercial use of state land other than an agricultural use . [, a fee of $100.]

             (2) Any agricultural use of state land . [, a fee of $75.]

             (3) Any other use of state land . [, a fee of $50.]

      2.  The State Land Registrar shall charge a nonrefundable fee [of $10] in an amount established by regulation for the consideration of an application for the issuance or amendment of a permit to engage in recreational dredging.

      3.  The State Land Registrar may waive any fee for the consideration of an application regarding any permit, license or other authorization for the use of state land for which no fee is charged.

      Sec. 2. NRS 322.120 is hereby amended to read as follows:

      322.120  Except as otherwise provided in this section or by specific statute, the State Land Registrar shall charge a fee in an amount established by regulation for the issuance of:

 


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κ2017 Statutes of Nevada, Page 2257 (CHAPTER 366, SB 512)κ

 

      1.  A permit for:

      (a) The commercial use of a pier or other facility for loading passengers on vessels in a navigable body of water . [, a fee of $125 per year.]

      (b) The multiple residential use of a pier or other facility for loading passengers on vessels in a navigable body of water . [, a fee of $62.50 per year.]

      (c) The single residential use of a pier or other facility for loading passengers on vessels in a navigable body of water . [, a fee of $50 per year.]

      (d) Any other use of a pier or other facility for loading passengers on vessels in a navigable body of water . [, a fee of $62.50 per year.]

      2.  A permit for:

      (a) The commercial use:

             (1) Of a boat hoist, boat house, boat ramp, boat slip, deck or a similar device or structure in or on a navigable body of water, [a fee of $50 per year,] except that no fee may be charged for a boat hoist, boat house or deck which is attached to a pier.

             (2) Of a mooring buoy or similar device for mooring vessels in or on a navigable body of water . [, a fee of $10 per month or $100 per year.]

      (b) Any other use:

             (1) Of a boat hoist, boat house, boat ramp, boat slip, deck or a similar device or structure in or on a navigable body of water, [a fee of $25 per year,] except that no fee may be charged for a boat hoist, boat house or deck which is attached to a pier.

             (2) Of a mooring buoy or similar device for mooring vessels in or on a navigable body of water . [, a fee of $5 per month or $30 per year.]

      (c) Any use of a boat-fueling facility in or on a navigable body of water . [, a fee of $250 per year.]

      Sec. 3. NRS 322.125 is hereby amended to read as follows:

      322.125  1.  The State Land Registrar shall grant a person credit towards the fee [required] imposed pursuant to NRS 322.120 for the commercial use of state land in an amount equal to:

      (a) The amount that the total fees charged to that person pursuant to that section for the previous year exceeded one and one-half cents for each gallon of fuel sold plus 5 percent of that person’s gross revenue from the commercial use of that state land, excluding the sale of fuel, for that year;

      (b) The amount that the United States Forest Service returned to the State of Nevada from money that the person was required to pay pursuant to a lease or permit to use federal land during the previous year which is attributable to revenues earned on land belonging to the State of Nevada; and

      (c) The difference between the fee for a permit for commercial use and the fee for a permit for multiple residential use if during the previous year the person paid the fee for a permit for commercial use but did not conduct that commercial use.

      2.  A person who is eligible for a credit pursuant to subsection 1 shall demonstrate to the satisfaction of the State Land Registrar that the person is entitled to such a credit.

      3.  If the amount of a credit granted pursuant to this section exceeds the amount of the fee imposed pursuant to NRS 322.120 for the year in which the credit will be used, the excess credit is forfeited and the State Land Registrar shall not grant a refund or apply the credit to any other year.

 


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κ2017 Statutes of Nevada, Page 2258 (CHAPTER 366, SB 512)κ

 

      Sec. 4. NRS 322.160 is hereby amended to read as follows:

      322.160  The proceeds of any fee charged pursuant to NRS 322.100 to 322.130, inclusive, must be accounted for by the State Land Registrar and:

      1.  If the fee is for any authorization to use land granted to the State by the Federal Government for educational purposes, the proceeds must be paid into the State Treasury for credit to the State Permanent School Fund.

      2.  If the fee is for any authorization to use any other state land, except as otherwise provided in this subsection, the proceeds must be paid into the State Treasury for credit to the State General Fund. If the proceeds of the fees charged pursuant to NRS 322.120 to use any other state land exceed $65,000 in any fiscal year, the amount which is in excess of $65,000 must be accounted for separately and used by the State Land Registrar to carry out programs to preserve, protect, restore and enhance the natural environment of the Lake Tahoe Basin.

      Sec. 5.  Notwithstanding the amendatory provisions of this act, the fees set forth in NRS 322.110 and 322.120, as those sections existed on June 30, 2017, remain in effect until the regulations establishing fees pursuant to NRS 322.110 and 322.120, as amended by sections 1 and 2 of this act, respectively, are adopted by the State Land Registrar and filed with the Secretary of State.

      Sec. 6.  This act becomes effective on July 1, 2017.

________

CHAPTER 367, SB 496

Senate Bill No. 496–Senator Woodhouse

 

CHAPTER 367

 

[Approved: June 4, 2017]

 

AN ACT relating to the Nevada System of Higher Education; authorizing the Board of Regents of the University of Nevada to issue revenue bonds and other securities to finance the construction of an engineering building and residence hall at the University of Nevada, Reno and a fitness complex at Truckee Meadows Community College; increasing the total amount of revenue bonds and other securities that the Board of Regents is authorized to issue for student facilities at the College of Southern Nevada; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Under existing law, the Board of Regents of the University of Nevada is authorized to borrow money to finance construction of campus facilities by issuing revenue bonds and other securities. (NRS 396.845) This debt is not a general obligation of the State and is not repaid by legislative appropriations. (NRS 396.839, 396.843) Instead, the Board of Regents pledges to retire the debt using revenue earned from certain fees paid by students and from various campus operations, such as dormitories and food service. (NRS 396.828, 396.829, 396.839, 396.8395) Sections 1-9 of this bill authorize the Board of Regents to issue revenue bonds and other securities in a total principal amount not exceeding $58,710,000 to finance the construction of an engineering building and residence hall at the University of Nevada, Reno and in a total principal amount not exceeding $22,000,000 to finance the construction of a fitness complex at Truckee Meadows Community College.

 


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κ2017 Statutes of Nevada, Page 2259 (CHAPTER 367, SB 496)κ

 

      Under existing law, the Board of Regents is authorized to issue $45,000,000 of revenue bonds and other securities for student service facilities, classrooms and parking facilities at the College of Southern Nevada. (Section 5 of chapter 297, Statutes of Nevada 2005, as last amended by chapter 307, Statutes of Nevada 2009, p. 1322) Section 11 of this bill increases the amount of such bonding authority for student service facilities at the College of Southern Nevada to $81,000,000 to finance the construction of a student union at each of the Charleston, Henderson and North Las Vegas campuses.

 

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

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  1.  Except as otherwise provided in sections 1 to 9, inclusive, of this act, terms used or referred to in sections 1 to 9, inclusive, of this act have the meanings ascribed to them in the University Securities Law, NRS 396.809 to 396.885, inclusive.

      2.  As used in sections 1 to 9, inclusive, of this act, unless the context otherwise requires, the terms defined in sections 2, 3 and 4 of this act have the meanings ascribed to them in those sections.

      Sec. 2.  “Net pledged revenues” means all the pledged revenues, without any deduction of any operation and maintenance expenses, except as otherwise provided in the definition of “pledged revenues.”

      Sec. 3.  1.  “Pledged revenues” means, in connection with securities issued pursuant to sections 1 to 9, inclusive, of this act, to finance in part the project designated in section 4 of this act:

      (a) The gross revenues derived from or otherwise pertaining to the operation of any one, all, or any combination of facilities enumerated in NRS 396.828 and situated on the campuses of the University of Nevada, Reno or Truckee Meadows Community College, including, without limitation, the project, which revenues the Board, by the resolution authorizing the securities issued pursuant to sections 1 to 9, inclusive, of this act, determines to pledge for the payment of the securities, after the deduction of the expenses of operation and maintenance of those facilities pertaining to those pledged revenues; and

      (b) The gross revenues derived from the imposition and collection of the fees designated in NRS 396.8395, payable by the students attending the University of Nevada, Reno or Truckee Meadows Community College, subject to the limitation provided in subsection 5 of NRS 396.840.

      2.  The term “pledged revenues” includes, in connection with students attending the University of Nevada, Reno or Truckee Meadows Community College, any fees of students authorized by law after the effective date of this act, all grants, conditional or unconditional, from the Federal Government for the payment of any securities requirements, if any, and net revenues, if any, to be derived from the operations of income-producing facilities of the University of Nevada, Reno or Truckee Meadows Community College, the Board or from other available sources, and to which fees, grants and revenues, the pledge and lien provided for the payment of the securities authorized in sections 1 to 9, inclusive, of this act and any other securities payable therefrom are extended after the effective date of this act.

 


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κ2017 Statutes of Nevada, Page 2260 (CHAPTER 367, SB 496)κ

 

      3.  “Pledged revenues” indicates a source of revenues and does not necessarily indicate all or any portion of such revenues in the absence of further qualification.

      Sec. 4.  1.  “Project” means the construction, acquisition, rehabilitation or improvement, or any combination thereof, of:

      (a) An engineering building and a residence hall at the University of Nevada, Reno; and

      (b) A fitness complex at Truckee Meadows Community College.

      2.  The term includes, without limitation, any land, equipment and furnishings required therefor, and other appurtenances relating thereto.

      Sec. 5.  1.  The Board, on behalf and in the name of the University, is authorized by sections 1 to 9, inclusive, of this act, as supplemented by the provisions of the University Securities Law:

      (a) To finance the project by the issuance of bonds and other securities of the University in a total principal amount not exceeding $58,710,000 for an engineering building and a residence hall at the University of Nevada, Reno, and in a total principal amount not exceeding $22,000,000 for a fitness complex at Truckee Meadows Community College, except that if the Board sells any of the bonds or other securities at a discount, the total principal amount of the bonds and other securities the Board is authorized to issue increases by an amount equal to the amount of the discount at which the bonds or other securities are sold.

      (b) To issue the bonds and other securities in connection with the project in one series or more at any time or from time to time, but not later than 15 years after the effective date of this act, as the Board determines, and consisting of special obligations of the University payable from the net pledged revenues authorized by sections 1 to 9, inclusive, of this act and which may subsequently be payable from other net pledged revenues, secured by a pledge thereof and a lien thereon, subject to existing contractual limitations, and subject to the limitations in paragraph (a).

      (c) To employ legal, fiscal and other expert services and to defray the costs thereof with any money available therefor, including, without limitation, proceeds of securities authorized by sections 1 to 9, inclusive, of this act.

      (d) To exercise the incidental powers provided in the University Securities Law in connection with the powers authorized by sections 1 to 9, inclusive, of this act except as otherwise expressly provided in those sections.

      2.  Sections 1 to 9, inclusive, of this act do not prevent the Board from funding, refunding or reissuing any securities of the University or the Board at any time as provided in the University Securities Law.

      Sec. 6.  Bonds and other securities authorized by sections 1 to 9, inclusive, of this act are subject to no limitations upon their rate of interest or the rate of discount at which they may be sold, including the limitations set forth in subsection 2 of NRS 396.850 and in paragraph (d) of subsection 1 of NRS 396.852, except that the rate of interest on any of those bonds or other securities must not exceed by more than 5 percent the Index of Revenue Bonds most recently published before bids are received or a negotiated offer is accepted.

      Sec. 7.  The powers conferred by sections 1 to 9, inclusive, of this act are in addition to and supplemental to, and the limitations imposed by sections 1 to 9, inclusive, of this act do not affect, the powers conferred by any other law, general or special.

 


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κ2017 Statutes of Nevada, Page 2261 (CHAPTER 367, SB 496)κ

 

any other law, general or special. Securities may be issued under sections 1 to 9, inclusive, of this act without regard to the procedure required by any other such law except as otherwise provided in this act or in the University Securities Law. Insofar as the provisions of sections 1 to 9, inclusive, of this act are inconsistent with the provisions of any other law, general or special, the provisions of sections 1 to 9, inclusive, of this act control.

      Sec. 8.  The Legislature intends that sections 1 to 9, inclusive, of this act, being necessary to secure and preserve the public health, safety, convenience and welfare, be liberally construed to effect their purposes.

      Sec. 9.  If any provision of sections 1 to 9, inclusive, of this act or the application thereof to any person, thing or circumstance is held invalid, that invalidity does not affect the provisions or application of sections 1 to 9, inclusive, of this act that can be given effect without the invalid provisions or application, and to this end the provisions of sections 1 to 9, inclusive, of this act are declared to be severable.

      Sec. 10.  Section 4 of chapter 297, Statutes of Nevada 2005, as last amended by chapter 307, Statutes of Nevada 2009, at page 1322, is hereby amended to read as follows:

       Sec. 4.  1.  “Project” means the construction, acquisition, rehabilitation or improvement, or any combination thereof, of:

       (a) Student service facilities, which may include, without limitation, a student union at each of the Charleston, Henderson and North Las Vegas campuses, classrooms and parking at the College of Southern Nevada; and

       (b) A residence hall at Western Nevada College.

       2.  The term includes any land, equipment and furnishings required therefor, and other appurtenances relating thereto.

      Sec. 11. Section 5 of chapter 297, Statutes of Nevada 2005, as last amended by chapter 307, Statutes of Nevada 2009, at page 1322, is hereby amended to read as follows:

       Sec. 5.  1.  The Board, on behalf and in the name of the University, is authorized by sections 1 to 9, inclusive, of this act, as supplemented by the provisions of the University Securities Law:

       (a) To finance the project by the issuance of bonds and other securities of the University in a total principal amount not exceeding [$45,000,000] $81,000,000 for student service facilities, which may include, without limitation, a student union at each of the Charleston, Henderson and North Las Vegas campuses, classrooms and parking at the College of Southern Nevada and in a total principal amount not exceeding $20,000,000 for a residence hall at Western Nevada College, except that if the Board sells any of the bonds or other securities at a discount, the total principal amount of the bonds and other securities the Board is authorized to issue increases by an amount equal to the amount of the discount at which the bonds or other securities are sold.

       (b) To issue the bonds and other securities in connection with the project in one series or more at any time or from time to time, but not later than 15 years after the effective date of this act, as the Board determines, and consisting of special obligations of the University payable from the net pledged revenues authorized by sections 1 to 9, inclusive, of this act and which may subsequently be payable from other net pledged revenues, secured by a pledge thereof and a lien thereon, subject to existing contractual limitations, and subject to the limitations in paragraph (a).

 


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κ2017 Statutes of Nevada, Page 2262 (CHAPTER 367, SB 496)κ

 

thereon, subject to existing contractual limitations, and subject to the limitations in paragraph (a).

       (c) To employ legal, fiscal and other expert services and to defray the costs thereof with any money available therefor, including, without limitation, proceeds of securities authorized by sections 1 to 9, inclusive, of this act.

       (d) To exercise the incidental powers provided in the University Securities Law in connection with the powers authorized by sections 1 to 9, inclusive, of this act, except as otherwise expressly provided in those sections.

       2.  Sections 1 to 9, inclusive, of this act do not prevent the Board from funding, refunding or reissuing any securities of the University or the Board at any time as provided in the University Securities Law.

      Sec. 12.  This act becomes effective upon passage and approval.

________

CHAPTER 368, SB 518

Senate Bill No. 518–Committee on Education

 

CHAPTER 368

 

[Approved: June 4, 2017]

 

AN ACT relating to education; removing the provision authorizing interest and income on money earned in the Contingency Account for Special Education Services to be credited to the Account; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law creates the Contingency Account for Special Education Services in the State General Fund and requires that interest and income earned on money in the Account be credited to the Account. (NRS 388.5243) This bill removes the provision authorizing such a credit to the Account.

 

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 388.5243 is hereby amended to read as follows:

      388.5243  1.  The Contingency Account for Special Education Services is hereby created in the State General Fund to be administered by the Superintendent of Public Instruction. The Superintendent of Public Instruction may accept gifts and grants of money from any source for deposit in the Account. Any money from gifts and grants may be expended in accordance with the terms and conditions of the gift or grant, or in accordance with this section.

      2.  [The interest and income earned on the sum of:

      (a) The money in the Account; and

      (b) Unexpended appropriations made to the Account from the State General Fund,

 


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κ2017 Statutes of Nevada, Page 2263 (CHAPTER 368, SB 518)κ

 

Κ must be credited to the Account.] Any money remaining in the Account at the end of a fiscal year does not revert to the State General Fund, and the balance in the Account must be carried forward to the next fiscal year.

      3.  The money in the Account may only be used for public schools and public education, as authorized by the Legislature.

      4.  The State Board shall adopt regulations for the application, approval and disbursement of money commencing with the 2016-2017 school year to reimburse school districts and charter schools for extraordinary program expenses and related services which:

      (a) Are not ordinarily present in the typical special education service and delivery system at a public school;

      (b) Are associated with the implementation of the individualized education program of a pupil with significant disabilities, as defined by the State Board, to provide an appropriate education in the least restrictive environment; and

      (c) The costs of which exceed the total funding available to the school district or charter school for the pupil.

      Secs. 2-5. (Deleted by amendment.)

      Sec. 6.  This act becomes effective on July 1, 2017.

________

CHAPTER 369, SB 394

Senate Bill No. 394–Senators Spearman, Segerblom, Denis, Manendo, Parks; Cancela, Cannizzaro, Ford and Woodhouse

 

Joint Sponsors: Assemblymen Neal; Araujo, Diaz and Thompson

 

CHAPTER 369

 

[Approved: June 4, 2017]

 

AN ACT relating to health insurance; requiring health maintenance organizations to provide certain data relating to health insurance claims to the person responsible for overseeing the health care plan of certain group purchasers of health insurance upon request; prohibiting the further disclosure of such data except in certain circumstances; requiring the Commissioner of Insurance to impose an administrative penalty against a person who engages in the unauthorized disclosure of such data; requiring the Legislative Committee on Health Care to study certain issues relating to health care during the 2017-2018 interim; providing a penalty; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Section 1.3 of this bill requires a health maintenance organization which provides a health care plan to certain large employers or multiple employer trusts to provide to the person responsible for overseeing the health care plan for the employer or trust upon request, not more than once every year, either: (1) all claims data relating to the enrollees of the health care plan; or (2) sufficient data for the employer or trust to calculate the cost of providing certain medical services through the health maintenance organization. Section 1.3 requires such data to: (1) be free of any personally identifiable information; (2) comply with all other federal and state laws concerning privacy; and (3) be easily accessible. Section 1.3 also requires a health maintenance organization to prepare and provide, under certain circumstances, an annual report relating to the cost and percentage trends in such data.

 


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κ2017 Statutes of Nevada, Page 2264 (CHAPTER 369, SB 394)κ

 

maintenance organization to prepare and provide, under certain circumstances, an annual report relating to the cost and percentage trends in such data. Section 1.6 of this bill prohibits the further disclosure of data provided pursuant to section 1.3 to any person other than a person responsible for making decisions about the health care plan, except as otherwise authorized by the health maintenance organization that provided the data or ordered by a court. Section 1.6 also establishes a schedule of administrative and criminal penalties to be imposed against a person who engages in unauthorized disclosure of such data. The penalty imposed depends on the culpability of the person who disclosed the data, the nature and extent of the disclosure and the harm caused by the disclosure.

      Section 2 of this bill requires the Legislative Committee on Health Care to study certain issues relating to: (1) making a program similar to the Medicaid managed care program which is currently available to certain low-income persons in this State available to persons who are not eligible for Medicaid; and (2) ensuring the same level of health insurance coverage which is currently available in this State pursuant to the Patient Protection and Affordable Care Act (Public Law 111-148, as amended) is maintained if the Affordable Care Act is repealed by Congress. Section 2 requires the Legislative Committee on Health Care to submit a report relating to these issues to the Director of the Legislative Counsel Bureau by not later than September 1, 2018.

 

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 695C of NRS is hereby amended by adding thereto the provisions set forth as sections 1.3 and 1.6 of this act.

      Sec. 1.3. 1.  Notwithstanding any other provision of law that provides for the confidentiality of the information described in this section, a health maintenance organization shall, except as otherwise provided in subsection 4, provide to the person responsible for overseeing the health care plan for a group purchaser upon written request from that person not more than once each year:

      (a) All claims data relating to the enrollees in a health care plan provided by the health maintenance organization pursuant to a contract with the group purchaser; or

      (b) Sufficient data relating to the claims of enrollees in the health care plan to allow the group purchaser to calculate the cost-effectiveness of the benefits provided by the health maintenance organization. Such data must include, without limitation:

             (1) Data necessary to calculate the actual cost of obtaining medical services through the health maintenance organization, organized by medical service and category of disease;

             (2) Data relating to enrollees in the health care plan who receive care, including, without limitation, demographics of such enrollees, prescriptions, office visits with a provider of health care, inpatient services and outpatient services, as used by the health maintenance organization to make calculations which are required to comply with the risk adjustment, reinsurance and risk corridor requirements of 42 U.S.C. §§ 18061, 18062 and 18063; and

             (3) Such data as used to establish an experience rating for the enrollees in the health care plan, including, without limitation, coding relating to diagnostics and procedures, the total cost charged to any person for each drug, device or service made available by the health care plan and all reimbursements made to a provider of health care for such drugs, devices or services.

 


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for each drug, device or service made available by the health care plan and all reimbursements made to a provider of health care for such drugs, devices or services.

      2.  If a written request is made pursuant to subsection 1, the health maintenance organization must also provide an annual report relating to the data required to be made available pursuant to subsection 1, which must include, without limitation, sufficient detail to demonstrate the annual changes in the cost and the percentage of increase or decrease, as applicable, for each category of information made available pursuant to subsection 1.

      3.  A health maintenance organization shall provide the data required by this section in an aggregated form which complies with federal and state law, including, without limitation, the Health Insurance Portability and Accountability Act of 1996, Public Law 104-191, and any applicable regulations.

      4.  Before providing any data pursuant to subsection 1, a health maintenance organization shall ensure that a professional statistician examines the data to confirm that such data cannot be used to identify and does not provide a reasonable basis upon which to identify a person whose information is included in the report. If the professional statistician is not able to make such a confirmation, the data must not be provided by the health maintenance organization until such confirmation is obtained.

      5.  A health maintenance organization must provide the data required by this section in a format which is easily searchable electronically or on a secure Internet website. A health maintenance organization may only provide the data described in this section relating to the health care plan of a group purchaser to the person responsible for overseeing the health care plan for the group purchaser and not relating to the health care plan of any other group purchaser.

      6.  A group purchaser must have policies and procedures in place which are compliant with federal law, including, without limitation, the Health Insurance Portability and Accountability Act of 1996, Public Law 104-191, and the regulations adopted pursuant thereto, and the laws of this State to ensure the privacy and security of the data made available to the person responsible for overseeing the health care plan for a group purchaser pursuant to this section.

      7.  As used in this section, “group purchaser” means:

      (a) An employer that employs at least 1,000 employees, at least 300 of whom are enrolled in a health care plan which is offered by a health maintenance organization; or

      (b) A group of employers that cumulatively employ at least 500 employees and which has formed a trust for the purpose of funding health care benefits for at least 300 employees who are enrolled in a health care plan which is offered by a health maintenance organization.

      Sec. 1.6. 1.  Except as otherwise provided in subsection 2:

      (a) A person responsible for overseeing a health care plan for a group purchaser shall not disclose data made available to the person pursuant to section 1.3 of this act to any other person except for a person responsible for making decisions about the health care plan.

      (b) A person responsible for making decisions about a health care plan for a group purchaser shall not further disclose data disclosed to the person pursuant to paragraph (a) to any other person except for another person responsible for making decisions about the health care plan.

 


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person pursuant to paragraph (a) to any other person except for another person responsible for making decisions about the health care plan.

      2.  A person described in subsection 1 may disclose data made available to the person pursuant to that subsection or section 1.3 of this act to another person not described in that subsection if:

      (a) The health maintenance organization that provided the data agrees to the disclosure; or

      (b) The disclosure is ordered by a court of competent jurisdiction.

      3.  Except as otherwise provided in subsections 4 to 7, inclusive, the Commissioner shall impose against any person who violates the requirements of this section:

      (a) If the person did not know of the violation and would not have known about the violation if he or she had exercised reasonable diligence, an administrative penalty of not less than $100 and not more than $50,000 per violation.

      (b) If the person knew of the violation or should have known about the violation if he or she had exercised reasonable diligence but the violation is not due to willful neglect, an administrative penalty of not less than $1,000 and not more than $50,000 per violation.

      (c) If the violation is due to willful neglect, an administrative penalty of $50,000 per violation.

      4.  If a person who violates the requirements of this section corrects the violation not later than 30 days after the person knew of the violation or should have known of the violation if he or she had exercised reasonable diligence, or another date determined by the Commissioner, the Commissioner:

      (a) Shall not impose an administrative penalty if the violation is not due to willful neglect.

      (b) Except as otherwise provided in subsection 5, shall impose an administrative penalty of not less than $10,000 and not more than $50,000 per violation if the violation is due to willful neglect.

      5.  Administrative penalties imposed pursuant to this section against a person must not exceed $1,500,000 in a calendar year.

      6.  The Commissioner:

      (a) Shall make a determination of the amount of an administrative penalty imposed pursuant to this section based upon the nature and extent of the violation and the harm resulting from the violation; and

      (b) May reduce any administrative penalty imposed for a violation of the requirements of this section, other than a violation due to willful neglect, if the Commissioner determines that the amount prescribed by subsection 3 is excessive.

      7.  The Commissioner shall not impose an administrative penalty for a violation for which a penalty has been imposed pursuant to subsection 8.

 

 

 

 

 

 

 

 


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      8.  Any person who knowingly violates the requirements of this section:

      (a) Except as otherwise provided in paragraphs (b) and (c), is guilty of a gross misdemeanor and may be fined not more than $50,000.

      (b) If the violation is committed under false pretenses, is guilty of a category C felony and shall be punished as provided in NRS 193.130, and may be further punished by a fine of not more than $100,000.

      (c) If the violation is committed with intent to sell, transfer or use the data for commercial advantage, personal gain or malicious harm, is guilty of a category B felony and shall be punished by imprisonment in the state prison for a minimum term of not less than 1 year and a maximum term of not more than 10 years, and may be further punished by a fine of not more than $250,000.

      Sec. 2.  1.  The Legislative Committee on Health Care shall, during the 2017-2018 interim, study opportunities for:

      (a) The establishment of a program similar to the Medicaid managed care program authorized by NRS 422.273 to be made available through the Silver State Health Insurance Exchange established by NRS 695I.200 to a person who is otherwise ineligible for Medicaid;

      (b) A person who is determined eligible for advance payments of the premium tax credit and cost-sharing reductions pursuant to 45 C.F.R. § 155.305 to use such credits and reductions to pay for coverage obtained through the program described in paragraph (a); and

      (c) The Nevada Legislature to ensure the current level of health insurance coverage provided in this State pursuant to the Patient Protection and Affordable Care Act, Public Law 111-148, as it existed on the effective date of this act, is maintained if the Affordable Care Act is repealed by Congress.

      2.  The Legislative Committee on Health Care shall conduct the study required pursuant to subsection 1 in consultation with:

      (a) The Department of Health and Human Services;

      (b) The Division of Insurance of the Department of Business and Industry;

      (c) The Silver State Health Insurance Exchange; and

      (d) Any other entity identified by the Committee which has expertise in the topics listed in subsection 1.

      3.  The Legislative Committee on Health Care shall submit a report of the results of the study required pursuant to subsection 1 and any recommendations for legislation to the Director of the Legislative Counsel Bureau for transmittal to the Legislature not later than September 1, 2018.

      Sec. 3.  This act becomes effective upon passage and approval.

________

 


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CHAPTER 370, SB 399

Senate Bill No. 399–Senators Settelmeyer, Ford, Roberson; Atkinson, Cancela, Cannizzaro, Farley, Gansert, Goicoechea, Hammond, Harris, Kieckhefer, Manendo, Parks and Segerblom

 

Joint Sponsor: Assemblyman Hansen

 

CHAPTER 370

 

[Approved: June 4, 2017]

 

AN ACT relating to the identification of persons; authorizing the use of a tribal identification card for various purposes; requiring a business that accepts a driver’s license for the purpose of identification to also accept a tribal identification card for that purpose unless otherwise provided by federal law or regulation; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law authorizes state and local governmental entities to accept a consular identification card for the purpose of identifying a person under certain circumstances. (NRS 232.006, 237.200) Sections 1 and 7 of this bill similarly authorize state and local governmental entities to accept a tribal identification card issued by a tribal government for the purpose of identifying a person if the tribal identification card meets certain requirements. Section 10 of this bill prohibits a business that accepts a driver’s license or identification card issued by the Department of Motor Vehicles for the purpose of identifying a person from refusing to accept a tribal identification card for the same purpose unless the business reasonably believes that federal law or regulation requires the use of a different form of identification. Sections 2-6, 8, 9 and 11-14 of this bill revise various provisions of existing law to provide for the use of a tribal identification card as proof of identity.

 

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 232.006 is hereby amended to read as follows:

      232.006  1.  Except as otherwise provided in subsection 2 and NRS 483.290, 483.860 and 486.081, with respect to any activity or transaction in which a state agency accepts an identification card issued by the Department of Motor Vehicles to identify a person, the state agency may also accept a consular identification card or tribal identification card to identify a person.

      2.  The provisions of subsection 1 apply only to the presentation of a consular identification card or tribal identification card for purposes of identification and do not convey an independent right to receive benefits of any type.

      3.  To be accepted pursuant to subsection 1 to identify a person, an identification card issued by a tribal government must contain:

      (a) The full legal name of the holder of the card;

      (b) The date of birth of the holder of the card;

      (c) A unique number assigned to the holder of the card;

      (d) A digital photograph of the full face of the holder of the card;

      (e) The address of the principal residence of the holder of the card;

 


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      (f) A physical description of the holder of the card, including, without limitation, the height, weight, hair color and eye color of the holder of the card;

      (g) The usual signature of the holder of the card;

      (h) The date on which the card is issued; and

      (i) A reference to the tribal government which issued the card.

      4.  As used in this section:

      (a) “Consular identification card” means an identification card issued by a consulate of a foreign government, which consulate is located within the State of Nevada.

      (b) “Identification card issued by the Department of Motor Vehicles” means an identification card of the type described in NRS 483.810 to 483.890, inclusive.

      (c) “State agency” means every public agency, bureau, board, commission, department or division of the Executive Department of State Government.

      (d) “Tribal government” has the meaning ascribed to it in NRS 239C.105.

      (e) “Tribal identification card” means an identification card issued by a tribal government which satisfies the requirements of subsection 3.

      Sec. 2. NRS 97A.142 is hereby amended to read as follows:

      97A.142  1.  If a solicitor makes a firm offer of credit for a credit card to a person by mail and receives an acceptance of that offer which has a substantially different address listed for the person than the address to which the solicitor sent the offer, the solicitor shall verify that the person accepting the offer is the same person to whom the offer was made before sending the person the credit card.

      2.  A solicitor shall be deemed to have verified the address of a person pursuant to subsection 1 if the solicitor:

      (a) Telephones the person at a telephone number appearing in a publicly available directory or database as the telephone number of the person to whom the solicitation was made and the person acknowledges his or her acceptance of the solicitation;

      (b) Receives from the person accepting the offer of credit proof of identity in the form of an identification document, including, without limitation, a driver’s license , [or] passport [,] or tribal identification card which confirms that the person accepting the solicitation is the person to whom the solicitation was made; or

      (c) Uses any other commercially reasonable means to confirm that the person accepting the solicitation is the person to whom the solicitation was made, including, without limitation, any means adopted in federal regulations.

      3.  For the purposes of this section:

      (a) “Firm offer of credit” has the meaning ascribed to it in 15 U.S.C. § 1681a(l).

      (b) “Solicitor” means a person who makes a firm offer of credit for a credit card by mail solicitation, but does not include an issuer or other creditor when that issuer or creditor relies on an independent third party to provide the solicitation services.

      (c) “Tribal identification card” means an identification card issued by a tribal government which satisfies the requirements of subsection 3 of NRS 232.006.

 


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      Sec. 3. NRS 125D.180 is hereby amended to read as follows:

      125D.180  1.  In determining whether there is a credible risk of abduction of a child, the court shall consider any evidence that the petitioner or respondent:

      (a) Has previously abducted or attempted to abduct the child;

      (b) Has threatened to abduct the child;

      (c) Has recently engaged in activities that may indicate a planned abduction, including:

             (1) Abandoning employment;

             (2) Selling a primary residence;

             (3) Terminating a lease;

             (4) Closing bank or other financial management accounts, liquidating assets, hiding or destroying financial documents, or conducting any unusual financial activities;

             (5) Applying for a passport or visa or obtaining travel documents for the respondent, a family member or the child; or

             (6) Seeking to obtain the child’s birth certificate or school or medical records;

      (d) Has engaged in domestic violence, stalking, or child abuse or neglect;

      (e) Has refused to follow a child custody determination;

      (f) Lacks strong familial, financial, emotional or cultural ties to the State or the United States;

      (g) Has strong familial, financial, emotional or cultural ties to another state or country;

      (h) Is likely to take the child to a country that:

             (1) Is not a party to the Hague Convention on the Civil Aspects of International Child Abduction and does not provide for the extradition of an abducting parent or for the return of an abducted child;

             (2) Is a party to the Hague Convention on the Civil Aspects of International Child Abduction but:

                   (I) The Hague Convention on the Civil Aspects of International Child Abduction is not in force between the United States and that country;

                   (II) Is noncompliant according to the most recent compliance report issued by the United States Department of State; or

                   (III) Lacks legal mechanisms for immediately and effectively enforcing a return order pursuant to the Hague Convention on the Civil Aspects of International Child Abduction;

             (3) Poses a risk that the child’s physical or emotional health or safety would be endangered in the country because of specific circumstances relating to the child or because of human rights violations committed against children;

             (4) Has laws or practices that would:

                   (I) Enable the respondent, without due cause, to prevent the petitioner from contacting the child;

                   (II) Restrict the petitioner from freely traveling to or exiting from the country because of the petitioner’s gender, nationality, marital status or religion; or

                   (III) Restrict the child’s ability legally to leave the country after the child reaches the age of majority because of the child’s gender, nationality or religion;

 


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             (5) Is included by the United States Department of State on a current list of state sponsors of terrorism;

             (6) Does not have an official United States diplomatic presence in the country; or

             (7) Is engaged in active military action or war, including a civil war, to which the child may be exposed;

      (i) Is undergoing a change in immigration or citizenship status that would adversely affect the respondent’s ability to remain in the United States legally;

      (j) Has had an application for United States citizenship denied;

      (k) Has forged or presented misleading or false evidence on government forms or supporting documents to obtain or attempt to obtain a passport, a visa, travel documents, a social security card, a driver’s license , a tribal identification card or other government-issued identification card or has made a misrepresentation to the United States Government;

      (l) Has used multiple names to attempt to mislead or defraud; or

      (m) Has engaged in any other conduct the court considers relevant to the risk of abduction.

      2.  In the hearing on a petition pursuant to the provisions of this chapter, the court shall consider any evidence that the respondent believed in good faith that the respondent’s conduct was necessary to avoid imminent harm to the child or respondent and any other evidence that may be relevant to whether the respondent may be permitted to remove or retain the child.

      3.  If the court finds during the hearing on the petition that the respondent’s conduct is intended to avoid imminent harm to the child or respondent, the court shall not issue an abduction prevention order.

      Sec. 4. NRS 159.044 is hereby amended to read as follows:

      159.044  1.  Except as otherwise provided in NRS 127.045, a proposed ward, a governmental agency, a nonprofit corporation or any interested person may petition the court for the appointment of a guardian.

      2.  To the extent the petitioner knows or reasonably may ascertain or obtain, the petition must include, without limitation:

      (a) The name and address of the petitioner.

      (b) The name, date of birth and current address of the proposed ward.

      (c) A copy of one of the following forms of identification of the proposed ward which must be placed in the records relating to the guardianship proceeding and, except as otherwise provided in NRS 239.0115 or as otherwise required to carry out a specific statute, maintained in a confidential manner:

             (1) A social security number;

             (2) A taxpayer identification number;

             (3) A valid driver’s license number;

             (4) A valid identification card number; [or]

             (5) A valid passport number [.] ; or

             (6) A valid tribal identification card number.

Κ If the information required pursuant to this paragraph is not included with the petition, the information must be provided to the court not later than 120 days after the appointment of a guardian or as otherwise ordered by the court.

      (d) If the proposed ward is a minor, the date on which the proposed ward will attain the age of majority and:

 


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             (1) Whether there is a current order concerning custody and, if so, the state in which the order was issued; and

             (2) Whether the petitioner anticipates that the proposed ward will need guardianship after attaining the age of majority.

      (e) Whether the proposed ward is a resident or nonresident of this State.

      (f) The names and addresses of the spouse of the proposed ward and the relatives of the proposed ward who are within the second degree of consanguinity.

      (g) The name, date of birth and current address of the proposed guardian. If the proposed guardian is a private professional guardian, the petition must include proof that the guardian meets the requirements of NRS 159.0595. If the proposed guardian is not a private professional guardian, the petition must include a statement that the guardian currently is not receiving compensation for services as a guardian to more than one ward who is not related to the person by blood or marriage.

      (h) A copy of one of the following forms of identification of the proposed guardian which must be placed in the records relating to the guardianship proceeding and, except as otherwise provided in NRS 239.0115 or as otherwise required to carry out a specific statute, maintained in a confidential manner:

             (1) A social security number;

             (2) A taxpayer identification number;

             (3) A valid driver’s license number;

             (4) A valid identification card number; [or]

             (5) A valid passport number [.] ; or

             (6) A valid tribal identification card number.

      (i) Whether the proposed guardian has ever been convicted of a felony and, if so, information concerning the crime for which the proposed guardian was convicted and whether the proposed guardian was placed on probation or parole.

      (j) A summary of the reasons why a guardian is needed and recent documentation demonstrating the need for a guardianship. If the proposed ward is an adult, the documentation must include, without limitation:

             (1) A certificate signed by a physician who is licensed to practice medicine in this State or who is employed by the Department of Veterans Affairs, a letter signed by any governmental agency in this State which conducts investigations or a certificate signed by any other person whom the court finds qualified to execute a certificate, stating:

                   (I) The need for a guardian;

                   (II) Whether the proposed ward presents a danger to himself or herself or others;

                   (III) Whether the proposed ward’s attendance at a hearing would be detrimental to the proposed ward;

                   (IV) Whether the proposed ward would comprehend the reason for a hearing or contribute to the proceeding; and

                   (V) Whether the proposed ward is capable of living independently with or without assistance; and

             (2) If the proposed ward is determined to have the limited capacity to consent to the appointment of a special guardian, a written consent to the appointment of a special guardian from the ward.

      (k) Whether the appointment of a general or a special guardian is sought.

 


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      (l) A general description and the probable value of the property of the proposed ward and any income to which the proposed ward is or will be entitled, if the petition is for the appointment of a guardian of the estate or a special guardian. If any money is paid or is payable to the proposed ward by the United States through the Department of Veterans Affairs, the petition must so state.

      (m) The name and address of any person or care provider having the care, custody or control of the proposed ward.

      (n) If the petitioner is not the spouse or natural child of the proposed ward, a declaration explaining the relationship of the petitioner to the proposed ward or to the proposed ward’s family or friends, if any, and the interest, if any, of the petitioner in the appointment.

      (o) Requests for any of the specific powers set forth in NRS 159.117 to 159.175, inclusive, necessary to enable the guardian to carry out the duties of the guardianship.

      (p) If the guardianship is sought as the result of an investigation of a report of abuse, neglect, exploitation, isolation or abandonment of the proposed ward, whether the referral was from a law enforcement agency or a state or county agency.

      (q) Whether the proposed ward or the proposed guardian is a party to any pending criminal or civil litigation.

      (r) Whether the guardianship is sought for the purpose of initiating litigation.

      (s) Whether the proposed ward has executed a durable power of attorney for health care, a durable power of attorney for financial matters or a written nomination of guardian and, if so, who the named agents are for each document.

      (t) Whether the proposed guardian has filed for or received protection under the federal bankruptcy laws within the immediately preceding 7 years.

      3.  Before the court makes a finding pursuant to NRS 159.054, a petitioner seeking a guardian for a proposed adult ward must provide the court with an assessment of the needs of the proposed adult ward completed by a licensed physician which identifies the limitations of capacity of the proposed adult ward and how such limitations affect the ability of the proposed adult ward to maintain his or her safety and basic needs. The court may prescribe the form in which the assessment of the needs of the proposed adult ward must be filed.

      Sec. 5. NRS 159.2025 is hereby amended to read as follows:

      159.2025  If a guardian has been appointed in another state and a petition for the appointment of a guardian is not pending in this State, the guardian appointed in the other state, after giving notice to the appointing court of an intent to register and the reason for registration, may register the guardianship order in this State by filing as a foreign judgment in a court, in any appropriate county of this State:

      1.  Certified copies of the order and letters of office; and

      2.  A copy of the guardian’s driver’s license, passport , tribal identification card or other valid photo identification card in a sealed envelope.

      Sec. 6. NRS 202.2493 is hereby amended to read as follows:

      202.2493  1.  A person shall not sell, distribute or offer to sell cigarettes, any smokeless product made or derived from tobacco or any alternative nicotine product in any form other than in an unopened package which originated with the manufacturer and bears any health warning required by federal law.

 


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which originated with the manufacturer and bears any health warning required by federal law. A person who violates this subsection shall be punished by a fine of $100 and a civil penalty of $100. As used in this subsection, “smokeless product made or derived from tobacco” means any product that consists of cut, ground, powdered or leaf tobacco and is intended to be placed in the oral or nasal cavity.

      2.  Except as otherwise provided in subsections 3, 4 and 5, it is unlawful for any person to sell, distribute or offer to sell cigarettes, cigarette paper, tobacco of any description, products made or derived from tobacco, vapor products or alternative nicotine products to any child under the age of 18 years. A person who violates this subsection shall be punished by a fine of not more than $500 and a civil penalty of not more than $500.

      3.  A person shall be deemed to be in compliance with the provisions of subsection 2 if, before the person sells, distributes or offers to sell to another, cigarettes, cigarette paper, tobacco of any description, products made or derived from tobacco, vapor products or alternative nicotine products, the person:

      (a) Demands that the other person present a valid driver’s license , tribal identification card or other written or documentary evidence which shows that the other person is 18 years of age or older;

      (b) Is presented a valid driver’s license , tribal identification card or other written or documentary evidence which shows that the other person is 18 years of age or older; and

      (c) Reasonably relies upon the driver’s license , tribal identification card or written or documentary evidence presented by the other person.

      4.  The employer of a child who is under 18 years of age may, for the purpose of allowing the child to handle or transport tobacco, products made or derived from tobacco, vapor products or alternative nicotine products, in the course of the child’s lawful employment, provide tobacco, products made or derived from tobacco, vapor products or alternative nicotine products to the child.

      5.  With respect to any sale made by an employee of a retail establishment, the owner of the retail establishment shall be deemed to be in compliance with the provisions of subsection 2 if the owner:

      (a) Had no actual knowledge of the sale; and

      (b) Establishes and carries out a continuing program of training for employees which is reasonably designed to prevent violations of subsection 2.

      6.  The owner of a retail establishment shall, whenever any product made or derived from tobacco, vapor product or alternative nicotine product is being sold or offered for sale at the establishment, display prominently at the point of sale:

      (a) A notice indicating that:

             (1) The sale of cigarettes, other tobacco products, vapor products and alternative nicotine products to minors is prohibited by law; and

             (2) The retailer may ask for proof of age to comply with this prohibition; and

      (b) At least one sign that complies with the requirements of NRS 442.340.

Κ A person who violates this subsection shall be punished by a fine of not more than $100.

 


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      7.  It is unlawful for any retailer to sell cigarettes through the use of any type of display:

      (a) Which contains cigarettes and is located in any area to which customers are allowed access; and

      (b) From which cigarettes are readily accessible to a customer without the assistance of the retailer,

Κ except a vending machine used in compliance with NRS 202.2494. A person who violates this subsection shall be punished by a fine of not more than $500.

      8.  Any money recovered pursuant to this section as a civil penalty must be deposited in a separate account in the State General Fund to be used for the enforcement of this section and NRS 202.2494.

      Sec. 7. NRS 237.200 is hereby amended to read as follows:

      237.200  1.  Except as otherwise provided in subsection 2, with respect to any activity or transaction in which a local government accepts an identification card issued by the Department of Motor Vehicles to identify a person, the local government may also accept a consular identification card or tribal identification card to identify a person.

      2.  The provisions of subsection 1 apply only to the presentation of a consular identification card or tribal identification card for purposes of identification and do not convey an independent right to receive benefits of any type.

      3.  To be accepted pursuant to subsection 1 to identify a person, an identification card issued by a tribal government must contain:

      (a) The full legal name of the holder of the card;

      (b) The date of birth of the holder of the card;

      (c) A unique number assigned to the holder of the card;

      (d) A digital photograph of the full face of the holder of the card;

      (e) The address of the principal residence of the holder of the card;

      (f) A physical description of the holder of the card, including, without limitation, the height, weight, hair color and eye color of the holder of the card;

      (g) The usual signature of the holder of the card;

      (h) The date on which the card is issued; and

      (i) A reference to the tribal government which issued the card.

      4.  As used in this section:

      (a) “Consular identification card” means an identification card issued by a consulate of a foreign government, which consulate is located within the State of Nevada.

      (b) “Identification card issued by the Department of Motor Vehicles” means an identification card of the type described in NRS 483.810 to 483.890, inclusive.

      (c) “Local government” has the meaning ascribed to it in NRS 237.050.

      (d) “Tribal government” has the meaning ascribed to it in NRS 239C.105.

      (e) “Tribal identification card” means an identification card issued by a tribal government which satisfies the requirements of subsection 3.

      Sec. 8. NRS 453.357 is hereby amended to read as follows:

      453.357  1.  A retail distributor shall maintain a logbook.

      2.  At the time of the sale or transfer of a product that is a precursor to methamphetamine, a retail distributor shall ensure that the following information is entered in the logbook:

 


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      (a) The name of the product sold or transferred;

      (b) The quantity of the product sold or transferred;

      (c) The name and address of the purchaser or transferee;

      (d) The date and time of the sale or transfer; and

      (e) The type and number of the identification presented by the purchaser or transferee pursuant to paragraph (a) of subsection 3.

      3.  A retail distributor shall not sell or transfer a product that is a precursor to methamphetamine unless:

      (a) The prospective purchaser or transferee:

             (1) Presents an identification card which provides a photograph and which is issued by the Federal Government, this State or any other state [,] or a tribal government, or a document that, with respect to identification, is considered acceptable pursuant to 21 U.S.C. § 830(e)(1); and

             (2) Signs his or her name in the logbook.

      (b) The retail distributor:

             (1) Determines that the name entered in the logbook corresponds to the name provided on the identification presented by the prospective purchaser or transferee; and

             (2) Has consulted the real-time, stop sale system, if required pursuant to NRS 639.440.

      4.  The retail distributor must include in the logbook or otherwise post or provide to a prospective purchaser or transferee a notice that entering a false statement or representation in the logbook may subject the prospective purchaser or transferee to criminal penalties under state law, as set forth in NRS 453.359, and under federal law, as set forth in 18 U.S.C. § 1001.

      5.  A retail distributor shall maintain each entry in the logbook for not less than 2 years after the date on which the entry is made.

      6.  A retail distributor shall not access, use or share the information in the logbook unless the accessing, using or sharing of the information is allowed by federal law or unless the purpose of accessing, using or sharing the information is to ensure compliance with this chapter or to facilitate a product recall to protect the health and safety of the public.

      7.  Upon a request, which is made for the purpose of enforcing the provisions of NRS 453.352 to 453.359, inclusive, or 639.400 to 639.450, inclusive, by a law enforcement agency of this State or a political subdivision thereof or a law enforcement agency of the Federal Government, a retail distributor shall disclose the information in the logbook to the law enforcement agency.

      Sec. 9. NRS 476.220 is hereby amended to read as follows:

      476.220  1.  Except as otherwise provided in subsection 2, any person who distributes:

      (a) Black powder to a person under the age of 18 years; or

      (b) Smokeless gunpowder to a person:

             (1) Under the age of 18 years; or

             (2) Under the age of 21 years, if the smokeless gunpowder is intended for use other than in a rifle or shotgun,

Κ is guilty of a misdemeanor and shall be punished by a fine of not more than $500.

      2.  A person shall be deemed to be in compliance with the provisions of subsection 1 if, before the person distributes black powder or smokeless gunpowder to another person, the person:

 


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      (a) Asks the other person to declare the intended use for the black powder or smokeless gunpowder;

      (b) Demands that the other person present a valid driver’s license , tribal identification card or other written or documentary evidence which shows that the other person meets the appropriate age requirement set forth in subsection 1;

      (c) Is presented a valid driver’s license , tribal identification card or other written or documentary evidence which shows that the other person meets the appropriate age requirement set forth in subsection 1; and

      (d) Reasonably relies upon the declaration of intended use by the other person and the driver’s license , tribal identification card or other written or documentary evidence presented by the other person.

      3.  As used in this section [, “distribute”] :

      (a) “Distribute” has the meaning ascribed to it in NRS 476.010.

      (b) “Tribal identification card” means an identification card issued by a tribal government which satisfies the requirements of subsection 3 of NRS 232.006.

      Sec. 10. Chapter 597 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  If a business accepts a driver’s license or identification card issued by the Department of Motor Vehicles for the purpose of identifying a customer, the business shall not refuse to accept a tribal identification card for the same purpose unless the business reasonably determines that federal law or regulation requires the use of a different form of identification.

      2.  As used in this section, “tribal identification card” means an identification card issued by a tribal government which satisfies the requirements of subsection 3 of NRS 232.006.

      Sec. 11. NRS 597.940 is hereby amended to read as follows:

      597.940  1.  Except as otherwise provided in this subsection, a business shall not, without the customer’s consent, record the account number of any of a customer’s credit cards on the customer’s check or draft as a condition of accepting that check or draft. This subsection does not prohibit:

      (a) The business from requiring the customer to produce reasonable forms of positive identification other than a credit card, including, without limitation:

             (1) A driver’s license;

             (2) An identification card issued by the Department of Motor Vehicles; [or]

             (3) A tribal identification card; or

             (4) A consular identification card,

Κ as a condition of accepting a check or draft.

      (b) The business from requesting the customer to display a credit card as an indicia of creditworthiness or financial responsibility, if the only information recorded by the business concerning the credit card is the type of credit card displayed, the issuer of the card and the date the card expires.

      (c) The business from requesting the customer to record the account number of his or her credit card on the check or draft with which payment on the credit card account is being made.

      (d) The business from requesting the production of or recording of the account number of a credit card as a condition of cashing a check or draft if:

 


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             (1) The business has agreed with the issuer of the credit card to cash the checks or drafts as a service to the cardholders of the issuer;

             (2) The issuer has agreed to guarantee any such check or draft so cashed; and

             (3) The cardholder has given actual, apparent or implied authority for the use of his or her account number for this purpose.

      2.  Except as otherwise provided in this subsection, a business shall not, without the customer’s consent, record a customer’s telephone number on the credit card sales slip as a condition of accepting his or her credit card. This subsection does not:

      (a) Prohibit the recordation of personal identifying information required for a special purpose incidental to the use of the credit card, such as the delivery, shipping, servicing or installation of the purchased merchandise.

      (b) Apply to a transaction in which the customer receives a cash advance against his or her credit card or to a transaction involving the use of preprinted spaces for personal identifying information that the business accepting the credit card has a contractual obligation to record in order to complete the transaction.

      (c) Apply to a transaction in which the customer’s purchase is made by the use of a device that electronically authorizes the use of the credit card and processes information relating thereto.

      3.  As used in this section, unless the context otherwise requires:

      (a) “Consular identification card” means an identification card issued by a consulate of a foreign government, which consulate is located within the State of Nevada.

      (b) “Credit card” has the meaning ascribed to it in NRS 205.630.

      (c) “Identification card issued by the Department of Motor Vehicles” means an identification card of the type described in NRS 483.810 to 483.890, inclusive.

      (d) “Tribal identification card” means an identification card issued by a tribal government which satisfies the requirements of subsection 3 of NRS 232.006.

      Sec. 12. NRS 643.184 is hereby amended to read as follows:

      643.184  A person who is required to display a license issued pursuant to the provisions of this chapter shall, upon the request of an authorized representative of the Board, provide to that representative identification in the form of a driver’s license or identification card with a photograph that has been issued by a state, the District of Columbia or the United States [.] or a tribal identification card issued by a tribal government which satisfies the requirements of subsection 3 of NRS 232.006.

      Sec. 13. NRS 644.208 is hereby amended to read as follows:

      644.208  1.  The Board shall admit to examination as a hair braider, at any meeting of the Board held to conduct examinations, each person who has applied to the Board in proper form and paid the fee, and who:

      (a) Is not less than 18 years of age.

      (b) Is of good moral character.

      (c) Is a citizen of the United States or is lawfully entitled to remain and work in the United States.

      (d) Has successfully completed the 10th grade in school or its equivalent and has submitted to the Board a notarized affidavit establishing the successful completion by the applicant of the 10th grade or its equivalent. Testing for equivalency must be pursuant to state or federal requirements.

 


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      (e) If the person has not practiced hair braiding previously:

             (1) Has completed a minimum of 250 hours of training and education as follows:

                   (I) Fifty hours concerning the laws of Nevada and the regulations of the Board relating to cosmetology;

                   (II) Seventy-five hours concerning infection control and prevention and sanitation;

                   (III) Seventy-five hours regarding the health of the scalp and the skin of the human body; and

                   (IV) Fifty hours of clinical practice; and

             (2) Has passed the practical demonstration in hair braiding and written tests described in NRS 644.248.

      (f) If the person has practiced hair braiding in this State on a person who is related within the sixth degree of consanguinity without a license and without charging a fee:

             (1) Has submitted to the Board a signed affidavit stating that the person has practiced hair braiding for at least 1 year on such a relative; and

             (2) Has passed the practical demonstration in hair braiding and written tests described in NRS 644.248.

      2.  The application submitted pursuant to subsection 1 must be accompanied by:

      (a) Two current photographs of the applicant which are 2 by 2 inches. The name and address of the applicant must be written on the back of each photograph.

      (b) A copy of one of the following documents as proof of the age of the applicant:

             (1) A driver’s license or identification card issued to the applicant by this State or another state, the District of Columbia or any territory of the United States [;] or a tribal identification card issued by a tribal government which satisfies the requirements of subsection 3 of NRS 232.006;

             (2) The birth certificate of the applicant; or

             (3) The current passport issued to the applicant.

      Sec. 14. NRS 644.209 is hereby amended to read as follows:

      644.209  1.  The Board shall admit to examination as a hair braider, at any meeting of the Board held to conduct examinations, each person who has practiced hair braiding in another state, has applied to the Board in proper form and paid a fee of $200, and who:

      (a) Is not less than 18 years of age.

      (b) Is of good moral character.

      (c) Is a citizen of the United States or is lawfully entitled to remain and work in the United States.

      (d) Has successfully completed the 10th grade in school or its equivalent and has submitted to the Board a notarized affidavit establishing the successful completion by the applicant of the 10th grade or its equivalent. Testing for equivalency must be pursuant to state or federal requirements.

      (e) If the person has practiced hair braiding in another state in accordance with a license issued in that other state:

             (1) Has submitted to the Board proof of the license; and

             (2) Has passed the written tests described in NRS 644.248.

      (f) If the person has practiced hair braiding in another state without a license and it is legal in that state to practice hair braiding without a license:

 


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             (1) Has submitted to the Board a signed affidavit stating that the person has practiced hair braiding for at least 1 year; and

             (2) Has passed the practical demonstration in hair braiding and written tests described in NRS 644.248.

      2.  The application submitted pursuant to subsection 1 must be accompanied by:

      (a) Two current photographs of the applicant which are 2 by 2 inches. The name and address of the applicant must be written on the back of each photograph.

      (b) A copy of one of the following documents as proof of the age of the applicant:

             (1) A driver’s license or identification card issued to the applicant by this State or another state, the District of Columbia or any territory of the United States [;] or a tribal identification card issued by a tribal government which satisfies the requirements of subsection 3 of NRS 232.006;

             (2) The birth certificate of the applicant; or

             (3) The current passport issued to the applicant.

      Sec. 15.  This act becomes effective on July 1, 2017.

________

CHAPTER 371, AB 278

Assembly Bill No. 278–Assemblymen Pickard, Hambrick, Cohen, Elliot Anderson; Paul Anderson, Ellison, Tolles and Wheeler

 

Joint Sponsor: Senator Harris

 

CHAPTER 371

 

[Approved: June 4, 2017]

 

AN ACT relating to the support of children; creating the Committee to Review Child Support Guidelines; requiring the Committee to review quadrennially the support guidelines established in this State and submit any recommendations for revision to the Administrator of the Division of Welfare and Supportive Services of the Department of Health and Human Services; requiring the Administrator to adopt regulations establishing support guidelines; repealing provisions relating to the calculation of support upon the adoption of such regulations; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing federal law and regulations require each state to establish child support guidelines and review such guidelines at least once every 4 years to ensure that the application of such guidelines results in appropriate awards of child support. (42 U.S.C. § 667(a); 45 C.F.R. § 302.56(e)) Existing federal regulations also establish minimum standards for such guidelines. (45 C.F.R. § 302.56(c)) Existing Nevada law establishes the general formula used to calculate child support and sets forth several other related provisions. (NRS 125B.070, 125B.080, 125B.085, 125B.095)

      Section 7 of this bill creates the Committee to Review Child Support Guidelines, and section 8 of this bill requires the Committee to review the existing child support guidelines established in this State and provide any recommendations for revisions to the Administrator of the Division of Welfare and Supportive Services of the Department of Health and Human Services not later than July 1, 2018.

 


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Department of Health and Human Services not later than July 1, 2018. Section 8 requires the Administrator to review and consider any recommendations of the Committee and, after reviewing and considering such recommendations, to adopt regulations establishing the child support guidelines in this State. Section 8 also requires the Committee to review the guidelines at least once every 4 years. Section 13 of this bill repeals the provisions of existing law establishing the general formula for calculating child support and certain related provisions, and section 14 of this bill provides that the repeal of such provisions becomes effective on the effective date of the regulations adopted by the Administrator establishing child support guidelines pursuant to section 8. Sections 1-3 and 9-12 of this bill make conforming changes that are also effective upon the effective date of the adopted regulations.

      Existing law exempts the Division from the provisions of the Nevada Administrative Procedure Act. (NRS 233B.039) Section 4 of this bill provides an exception to such an exemption for the regulations establishing the child support guidelines that are adopted by the Administrator, and section 8 requires that such regulations be adopted in accordance with the Nevada Administrative Procedure Act and codified in the Nevada Administrative Code.

 

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 125.150 is hereby amended to read as follows:

      125.150  Except as otherwise provided in NRS 125.155 and 125.165, and unless the action is contrary to a premarital agreement between the parties which is enforceable pursuant to chapter 123A of NRS:

      1.  In granting a divorce, the court:

      (a) May award such alimony to the wife or to the husband, in a specified principal sum or as specified periodic payments, as appears just and equitable; and

      (b) Shall, to the extent practicable, make an equal disposition of the community property of the parties, except that the court may make an unequal disposition of the community property in such proportions as it deems just if the court finds a compelling reason to do so and sets forth in writing the reasons for making the unequal disposition.

      2.  Except as otherwise provided in this subsection, in granting a divorce, the court shall dispose of any property held in joint tenancy in the manner set forth in subsection 1 for the disposition of community property. If a party has made a contribution of separate property to the acquisition or improvement of property held in joint tenancy, the court may provide for the reimbursement of that party for his or her contribution. The amount of reimbursement must not exceed the amount of the contribution of separate property that can be traced to the acquisition or improvement of property held in joint tenancy, without interest or any adjustment because of an increase in the value of the property held in joint tenancy. The amount of reimbursement must not exceed the value, at the time of the disposition, of the property held in joint tenancy for which the contribution of separate property was made. In determining whether to provide for the reimbursement, in whole or in part, of a party who has contributed separate property, the court shall consider:

      (a) The intention of the parties in placing the property in joint tenancy;

      (b) The length of the marriage; and

 


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      (c) Any other factor which the court deems relevant in making a just and equitable disposition of that property.

Κ As used in this subsection, “contribution” includes, without limitation, a down payment, a payment for the acquisition or improvement of property, and a payment reducing the principal of a loan used to finance the purchase or improvement of property. The term does not include a payment of interest on a loan used to finance the purchase or improvement of property, or a payment made for maintenance, insurance or taxes on property.

      3.  A party may file a postjudgment motion in any action for divorce, annulment or separate maintenance to obtain adjudication of any community property or liability omitted from the decree or judgment as the result of fraud or mistake. A motion pursuant to this subsection must be filed within 3 years after the discovery by the aggrieved party of the facts constituting the fraud or mistake. The court has continuing jurisdiction to hear such a motion and shall equally divide the omitted community property or liability between the parties unless the court finds that:

      (a) The community property or liability was included in a prior equal disposition of the community property of the parties or in an unequal disposition of the community property of the parties which was made pursuant to written findings of a compelling reason for making that unequal disposition; or

      (b) The court determines a compelling reason in the interests of justice to make an unequal disposition of the community property or liability and sets forth in writing the reasons for making the unequal disposition.

Κ If a motion pursuant to this subsection results in a judgment dividing a defined benefit pension plan, the judgment may not be enforced against an installment payment made by the plan more than 6 years after the installment payment.

      4.  Except as otherwise provided in NRS 125.141, whether or not application for suit money has been made under the provisions of NRS 125.040, the court may award a reasonable attorney’s fee to either party to an action for divorce.

      5.  In granting a divorce, the court may also set apart such portion of the husband’s separate property for the wife’s support, the wife’s separate property for the husband’s support or the separate property of either spouse for the support of their children as is deemed just and equitable.

      6.  In the event of the death of either party or the subsequent remarriage of the spouse to whom specified periodic payments were to be made, all the payments required by the decree must cease, unless it was otherwise ordered by the court.

      7.  If the court adjudicates the property rights of the parties, or an agreement by the parties settling their property rights has been approved by the court, whether or not the court has retained jurisdiction to modify them, the adjudication of property rights, and the agreements settling property rights, may nevertheless at any time thereafter be modified by the court upon written stipulation signed and acknowledged by the parties to the action, and in accordance with the terms thereof.

      8.  If a decree of divorce, or an agreement between the parties which was ratified, adopted or approved in a decree of divorce, provides for specified periodic payments of alimony, the decree or agreement is not subject to modification by the court as to accrued payments. Payments pursuant to a decree entered on or after July 1, 1975, which have not accrued at the time a motion for modification is filed may be modified upon a showing of changed circumstances, whether or not the court has expressly retained jurisdiction for the modification.

 


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at the time a motion for modification is filed may be modified upon a showing of changed circumstances, whether or not the court has expressly retained jurisdiction for the modification. In addition to any other factors the court considers relevant in determining whether to modify the order, the court shall consider whether the income of the spouse who is ordered to pay alimony, as indicated on the spouse’s federal income tax return for the preceding calendar year, has been reduced to such a level that the spouse is financially unable to pay the amount of alimony the spouse has been ordered to pay.

      9.  In addition to any other factors the court considers relevant in determining whether to award alimony and the amount of such an award, the court shall consider:

      (a) The financial condition of each spouse;

      (b) The nature and value of the respective property of each spouse;

      (c) The contribution of each spouse to any property held by the spouses pursuant to NRS 123.030;

      (d) The duration of the marriage;

      (e) The income, earning capacity, age and health of each spouse;

      (f) The standard of living during the marriage;

      (g) The career before the marriage of the spouse who would receive the alimony;

      (h) The existence of specialized education or training or the level of marketable skills attained by each spouse during the marriage;

      (i) The contribution of either spouse as homemaker;

      (j) The award of property granted by the court in the divorce, other than child support and alimony, to the spouse who would receive the alimony; and

      (k) The physical and mental condition of each party as it relates to the financial condition, health and ability to work of that spouse.

      10.  In granting a divorce, the court shall consider the need to grant alimony to a spouse for the purpose of obtaining training or education relating to a job, career or profession. In addition to any other factors the court considers relevant in determining whether such alimony should be granted, the court shall consider:

      (a) Whether the spouse who would pay such alimony has obtained greater job skills or education during the marriage; and

      (b) Whether the spouse who would receive such alimony provided financial support while the other spouse obtained job skills or education.

      11.  If the court determines that alimony should be awarded pursuant to the provisions of subsection 10:

      (a) The court, in its order, shall provide for the time within which the spouse who is the recipient of the alimony must commence the training or education relating to a job, career or profession.

      (b) The spouse who is ordered to pay the alimony may, upon changed circumstances, file a motion to modify the order.

      (c) The spouse who is the recipient of the alimony may be granted, in addition to any other alimony granted by the court, money to provide for:

             (1) Testing of the recipient’s skills relating to a job, career or profession;

             (2) Evaluation of the recipient’s abilities and goals relating to a job, career or profession;

             (3) Guidance for the recipient in establishing a specific plan for training or education relating to a job, career or profession;

 


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             (4) Subsidization of an employer’s costs incurred in training the recipient;

             (5) Assisting the recipient to search for a job; or

             (6) Payment of the costs of tuition, books and fees for:

                   (I) The equivalent of a high school diploma;

                   (II) College courses which are directly applicable to the recipient’s goals for his or her career; or

                   (III) Courses of training in skills desirable for employment.

      12.  For the purposes of this section, a change of 20 percent or more in the gross monthly income of a spouse who is ordered to pay alimony shall be deemed to constitute changed circumstances requiring a review for modification of the payments of alimony. As used in this subsection, “gross monthly income” [has the meaning ascribed to it in NRS 125B.070.] means the total amount of income received each month from any source of a person who is not self-employed or the gross income from any source of a self-employed person, after deduction of all legitimate business expenses, but without deduction for personal income taxes, contributions for retirement benefits, contributions to a pension or for any other personal expenses.

      Sec. 2. NRS 125B.080 is hereby amended to read as follows:

      125B.080  [Except as otherwise provided in NRS 425.450:

      1.]  A court of this State shall apply the [appropriate formula set forth in NRS 125B.070] guidelines established by the Administrator of the Division of Welfare and Supportive Services of the Department of Health and Human Services pursuant to section 8 of this act to:

      [(a)]1.  Determine the required support in any case involving the support of children [.

      (b) Any request filed after July 1, 1987, to change] ; or

      2.  Change the amount of the required support of children.

      [2.  If the parties agree as to the amount of support required, the parties shall certify that the amount of support is consistent with the appropriate formula set forth in NRS 125B.070. If the amount of support deviates from the formula, the parties must stipulate sufficient facts in accordance with subsection 9 which justify the deviation to the court, and the court shall make a written finding thereon. Any inaccuracy or falsification of financial information which results in an inappropriate award of support is grounds for a motion to modify or adjust the award.

      3.  If the parties disagree as to the amount of the gross monthly income of either party, the court shall determine the amount and may direct either party to furnish financial information or other records, including income tax returns for the preceding 3 years. Once a court has established an obligation for support by reference to a formula set forth in NRS 125B.070, any subsequent modification or adjustment of that support, except for any modification or adjustment made pursuant to subsection 3 of NRS 125B.070 or NRS 425.450 or as a result of a review conducted pursuant to subsection 1 of NRS 125B.145, must be based upon changed circumstances.

      4.  Notwithstanding the formulas set forth in NRS 125B.070, the minimum amount of support that may be awarded by a court in any case is $100 per month per child, unless the court makes a written finding that the obligor is unable to pay the minimum amount. Willful underemployment or unemployment is not a sufficient cause to deviate from the awarding of at least the minimum amount.

 


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      5.  It is presumed that the basic needs of a child are met by the formulas set forth in NRS 125B.070. This presumption may be rebutted by evidence proving that the needs of a particular child are not met by the applicable formula.

      6.  If the amount of the awarded support for a child is greater or less than the amount which would be established under the applicable formula, the court shall:

      (a) Set forth findings of fact as to the basis for the deviation from the formula; and

      (b) Provide in the findings of fact the amount of support that would have been established under the applicable formula.

      7.  Expenses for health care which are not reimbursed, including expenses for medical, surgical, dental, orthodontic and optical expenses, must be borne equally by both parents in the absence of extraordinary circumstances.

      8.  If a parent who has an obligation for support is willfully underemployed or unemployed to avoid an obligation for support of a child, that obligation must be based upon the parent’s true potential earning capacity.

      9.  The court shall consider the following factors when adjusting the amount of support of a child upon specific findings of fact:

      (a) The cost of health insurance;

      (b) The cost of child care;

      (c) Any special educational needs of the child;

      (d) The age of the child;

      (e) The legal responsibility of the parents for the support of others;

      (f) The value of services contributed by either parent;

      (g) Any public assistance paid to support the child;

      (h) Any expenses reasonably related to the mother’s pregnancy and confinement;

      (i) The cost of transportation of the child to and from visitation if the custodial parent moved with the child from the jurisdiction of the court which ordered the support and the noncustodial parent remained;

      (j) The amount of time the child spends with each parent;

      (k) Any other necessary expenses for the benefit of the child; and

      (l) The relative income of both parents.]

      Sec. 3. NRS 125B.145 is hereby amended to read as follows:

      125B.145  1.  An order for the support of a child must, upon the filing of a request for review by:

      (a) The Division of Welfare and Supportive Services of the Department of Health and Human Services, its designated representative or the district attorney, if the Division of Welfare and Supportive Services or the district attorney has jurisdiction in the case; or

      (b) A parent or legal guardian of the child,

Κ be reviewed by the court at least every 3 years pursuant to this section to determine whether the order should be modified or adjusted. Each review conducted pursuant to this section must be in response to a separate request.

      2.  If the court:

      (a) Does not have jurisdiction to modify the order, the court may forward the request to any court with appropriate jurisdiction.

      (b) Has jurisdiction to modify the order and, taking into account the best interests of the child, determines that modification or adjustment of the order is appropriate, the court shall enter an order modifying or adjusting the previous order for support in accordance with the [requirements of NRS 125B.070 and 125B.080.]

 


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is appropriate, the court shall enter an order modifying or adjusting the previous order for support in accordance with the [requirements of NRS 125B.070 and 125B.080.] guidelines established by the Administrator of the Division of Welfare and Supportive Services of the Department of Health and Human Services pursuant to section 8 of this act.

      3.  The court shall ensure that:

      (a) Each person who is subject to an order for the support of a child is notified, not less than once every 3 years, that the person may request a review of the order pursuant to this section; or

      (b) An order for the support of a child includes notification that each person who is subject to the order may request a review of the order pursuant to this section.

      4.  An order for the support of a child may be reviewed at any time on the basis of changed circumstances. For the purposes of this subsection, a change of 20 percent or more in the gross monthly income of a person who is subject to an order for the support of a child shall be deemed to constitute changed circumstances requiring a review for modification of the order for the support of a child.

      5.  As used in this section:

      (a) “Gross monthly income” has the meaning ascribed to it in NRS [125B.070.] 125.150.

      (b) “Order for the support of a child” means such an order that was issued or is being enforced by a court of this State.

      Sec. 4. NRS 233B.039 is hereby amended to read as follows:

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

      (a) The Governor.

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

      (c) The Nevada System of Higher Education.

      (d) The Office of the Military.

      (e) The Nevada Gaming Control Board.

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

      (g) [The] Except as otherwise provided in section 8 of this act, the Division of Welfare and Supportive Services of the Department of Health and Human Services.

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

      (i) The State Board of Examiners acting pursuant to chapter 217 of NRS.

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

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

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

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

      (n) The Silver State Health Insurance Exchange.

 


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

      3.  The special provisions of:

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

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

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

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

Κ prevail over the general provisions of this chapter.

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

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

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

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

      (c) A regulation adopted by the State Board of Education pursuant to NRS 388.255 or 394.1694; or

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

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

      Sec. 5. Chapter 425 of NRS is hereby amended by adding thereto the provisions set forth as sections 6, 7 and 8 of this act.

      Sec. 6. As used in this section and sections 7 and 8 of this act, unless the context otherwise requires, “Committee” means the Committee to Review Child Support Guidelines created by section 7 of this act.

      Sec. 7. 1.  The Committee to Review Child Support Guidelines is hereby created. The Committee consists of:

      (a) The presiding judge of the Family Division of the Second Judicial District Court or his or her designee;

      (b) The presiding judge of the Family Division of the Eighth Judicial District Court or his or her designee;

      (c) One member who is a district court judge or master from a judicial district other than the Second or Eighth Judicial District, appointed by the Chief Justice of the Supreme Court;

      (d) One member who is a justice or retired justice of the Supreme Court, appointed by the Chief Justice of the Supreme Court;

 


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      (e) One member who is a district attorney in Clark County, appointed by the governing body of the Nevada District Attorneys Association, or his or her designee;

      (f) One member who is a district attorney in Washoe County, appointed by the governing body of the Nevada District Attorneys Association, or his or her designee;

      (g) One member who is a district attorney in a county other than Clark or Washoe County, appointed by the governing body of the Nevada District Attorneys Association, or his or her designee;

      (h) Two members who are members of the Family Law Section of the State Bar of Nevada, appointed by the Executive Council of the Family Law Section;

      (i) One member who is an employee of the Division, appointed by the Administrator;

      (j) One member who has expertise in economics and child support, appointed by the Administrator;

      (k) Two members who are Senators, one of whom is appointed by the Majority Leader of the Senate and one of whom is appointed by the Minority Leader of the Senate; and

      (l) Two members who are members of the Assembly, one of whom is appointed by the Speaker of the Assembly and one of whom is appointed by the Minority Leader of the Assembly.

Κ If any association listed in this subsection ceases to exist, the appointment required by this subsection must be made by the association’s successor in interest or, if there is no successor in interest, by the Governor.

      2.  Each appointed member serves a term of 4 years. Members may be reappointed for additional terms of 4 years in the same manner as the original appointments. Any vacancy occurring in the membership of the Committee must be filled in the same manner as the original appointment not later than 30 days after the vacancy occurs.

      3.  At the first regular meeting every 4 years, the members of the Committee shall elect a Chair by majority vote who shall serve until the next Chair is elected.

      4.  The Committee shall convene on or before September 1, 2017, and shall meet at least once every 4 years thereafter. The Committee may also meet at such further times as deemed necessary by the Chair.

      5.  A majority of the members of the Committee constitutes a quorum for the transaction of business, and a majority of those members present at any meeting is sufficient for any official action taken by the Committee.

      Sec. 8. 1.  On or before July 1, 2018, the Committee shall review the existing guidelines established in this State for the support of one or more children and provide any recommendations for revisions to the Administrator.

      2.  The Administrator shall review and consider any recommendations of the Committee to revise the guidelines. After reviewing and considering such recommendations, the Administrator shall adopt regulations establishing the guidelines in this State for the support of one or more children in accordance with the requirements set forth in 42 U.S.C. § 667 and 45 C.F.R. § 302.56.

      3.  In accordance with the provisions of 42 U.S.C. § 667(a) and 45 C.F.R. § 302.56(e), the Committee shall review the guidelines established by regulation pursuant to subsection 2 at least once every 4 years to ensure the maintenance of effective, efficient and appropriate guidelines that best serve the interests of the children of this State and that comply with any requirements set forth in federal law.

 


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by regulation pursuant to subsection 2 at least once every 4 years to ensure the maintenance of effective, efficient and appropriate guidelines that best serve the interests of the children of this State and that comply with any requirements set forth in federal law.

      4.  After each review of the guidelines by the Committee pursuant to subsection 3, the Committee shall provide any recommendations for revisions to the Administrator. The Administrator shall review and consider any such recommendations and may revise or adopt any regulations that the Administrator deems appropriate.

      5.  The Administrator shall ensure that any recommendations for revisions to the guidelines received from the Committee pursuant to this section are made available to the public.

      6.  The regulations adopted pursuant to this section must be adopted in accordance with the provisions of chapter 233B of NRS and must be codified in the Nevada Administrative Code.

      Sec. 9. NRS 425.360 is hereby amended to read as follows:

      425.360  1.  Any payment of public assistance pursuant to this chapter creates a debt for support to the Division by the responsible parent, whether or not the parent received prior notice that the child of the parent was receiving public assistance.

      2.  The Division is entitled to the amount to which a dependent child or a person having the care, custody and control of a dependent child would have been entitled for support, to the extent of the assignment of those rights to support pursuant to NRS 425.350, and may prosecute or maintain any action for support or execute any administrative remedy existing under the laws of this State to obtain reimbursement of money expended for public assistance from any liable third party, including an insurer, group health plan as defined in section 607(1) of the Employee Retirement Income Security Act of 1974, 29 U.S.C.A. § 1167(1), service benefit plan, self-insured plan or health maintenance organization. If a court enters judgment for an amount of support to be paid by a responsible parent, the Division is entitled to the amount of the debt created by that judgment to the extent of the assignment of rights to support pursuant to NRS 425.350, and the judgment awarded shall be deemed to be in favor of the Division to that extent. This entitlement applies to, but is not limited to, a temporary order for spousal support, a family maintenance order or an alimony order, whether or not allocated to the benefit of the child on the basis of providing necessaries for the caretaker of the child, up to the amount paid by the Division in public assistance to or for the benefit of a dependent child. The Division may petition the appropriate court for modification of its order on the same grounds as a party to the action.

      3.  If there is no court order for support, or if the order provides that no support is due but the facts on which the order was based have changed, the amount due is the amount computed pursuant to [NRS 125B.070 and 125B.080,] the guidelines established by the Administrator pursuant to section 8 of this act, using the Nevada average wage, determined by the Employment Security Division of the Department of Employment, Training and Rehabilitation, if the gross income of the responsible parent cannot be otherwise ascertained.

      4.  Debts for support may not be incurred by a parent or any other person who is the recipient of public assistance for the benefit of a dependent child for the period when the parent or other person is a recipient.

 


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      5.  If a state agency is assigned any rights of a dependent child or a person having the care, custody and control of a dependent child who is eligible for medical assistance under Medicaid, the person having the care, custody and control of the dependent child shall, upon request of the state agency, provide to the state agency information regarding the dependent child or a person having the care, custody and control of a dependent child to determine:

      (a) Any period during which the dependent child or a person having the care, custody and control of a dependent child may be or may have been covered by an insurer; and

      (b) The nature of any coverage that is or was provided by the insurer, including, without limitation, the name and address of the insured dependent child or a person having the care, custody and control of a dependent child and the identifying number of the policy, evidence of coverage or contract.

      Sec. 10. NRS 425.3824 is hereby amended to read as follows:

      425.3824  1.  The notice and finding of financial responsibility issued pursuant to NRS 425.3822 must include:

      (a) The name of the person who has physical custody of the dependent child and the name of the child for whom support is to be paid.

      (b) A statement of the monthly support for which the parent is responsible.

      (c) A statement of the amount of arrearages sought, if any.

      (d) A statement that the parent may be required to provide coverage for the health care of the dependent child when coverage is available to the parent at a reasonable cost.

      (e) A statement of any requirements the Division will request pursuant to subparagraph (14) of paragraph (b) of subsection 2 of NRS 425.382, regarding a plan for the payment of support by the parent or the participation of the parent in work activities.

      (f) A statement that if the parent desires to discuss the amount of support or coverage for health care that the parent should be required to pay or provide, the parent may contact the office that sent the notice within 20 days after the date of receipt of service and request a conference for negotiation.

      (g) A statement that if the parent objects to any part of the notice and finding of financial responsibility, the parent must send to the office that issued the notice a written response within 20 days after the date of receipt of service that sets forth any objections and requests a hearing.

      (h) A statement that if a response is received within the specified period, the parent is entitled to a hearing and that if a written response is not received within the specified period, the master may enter a recommendation for support of a dependent child in accordance with the notice and finding of financial responsibility.

      (i) A statement that as soon as the recommendation is entered and approved by the court, the property of the parent is subject to an attachment or other procedure for collection, including, but not limited to, withholding of wages, garnishment, liens and execution on liens.

      (j) A reference to NRS 425.382 to 425.3852, inclusive.

      (k) A statement that the parent is responsible for notifying the office of any change of address or employment.

      (l) A statement that if the parent has any questions, the parent may contact the office or consult an attorney.

      (m) Such other information as the Chief finds appropriate.

 


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      2.  The statement of the monthly support required pursuant to paragraph (b) of subsection 1 must be computed in accordance with [NRS 125B.070.] the guidelines established by the Administrator pursuant to section 8 of this act.

      3.  After a conference for negotiation is held pursuant to paragraph (f) of subsection 1, if an agreement is not reached on the monthly support to be paid or the coverage to be provided, a hearing must be held pursuant to NRS 425.3832 and notice of the hearing must be sent to the parent by regular mail at the last known address of the parent or to the last known address of the attorney for the parent.

      Sec. 11. NRS 425.450 is hereby amended to read as follows:

      425.450  1.  The Division shall adopt regulations establishing a formula for:

      (a) The adjustment of court orders for the support of children based upon changes in the cost of living; and

      (b) The times at which such an adjustment is appropriate.

      2.  If a request for the review of a court order for the support of a child has not been filed pursuant to NRS 125B.145 for such a time as the Division establishes pursuant to subsection 1, the Chief may, as provided in this section, order the responsible parent to pay monthly the amount the responsible parent is required to pay pursuant to the court order plus an additional amount to compensate for changes in the cost of living.

      3.  Upon request by the responsible parent, the person to whom support is owed or the enforcing authority, the Chief shall:

      (a) Determine, in accordance with the formula established pursuant to subsection 1, the amount of the additional payments; and

      (b) Notify the responsible parent, by first-class mail to the last known address of the responsible parent, of the amount of the additional payments and that the additional payments must be made within 30 days after the mailing of the notice to the parent unless a request for a review of the court order is filed pursuant to NRS 125B.145 within that time.

      4.  If a request for a review of the court order:

      (a) Is filed pursuant to NRS 125B.145 within those 30 days, the court shall proceed pursuant to that section and the Chief shall not enter an order pursuant to this section.

      (b) Is not filed pursuant to NRS 125B.145 within those 30 days, the Chief shall order the responsible parent to pay the additional amount.

      5.  An order entered by the Chief pursuant to this section expires upon modification or adjustment, pursuant to NRS 125B.145, of the court order upon which the order entered by the Chief is based.

      6.  [The provisions of NRS 125B.080 do not apply to the entry of an order by the Chief pursuant to this section.

      7.]  As used in this section, “court order” means an order that a court of this state has jurisdiction to modify pursuant to chapter 130 of NRS.

      Sec. 12. NRS 432B.560 is hereby amended to read as follows:

      432B.560  1.  The court may also order:

      (a) The child, a parent or the guardian to undergo such medical, psychiatric, psychological, or other care or treatment as the court considers to be in the best interests of the child.

      (b) A parent or guardian to refrain from:

 


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             (1) Any harmful or offensive conduct toward the child, the other parent, the custodian of the child or the person given physical custody of the child; and

             (2) Visiting the child if the court determines that the visitation is not in the best interest of the child.

      (c) A reasonable right of visitation for a grandparent of the child if the child is not permitted to remain in the custody of the parents of the child.

      2.  The court shall order a parent or guardian to pay to the custodian an amount sufficient to support the child while the child is in the care of the custodian pursuant to an order of the court, unless the child was delivered to a provider of emergency services pursuant to NRS 432B.630 and the location of the parent is unknown. Payments for the obligation of support must be determined in accordance with [NRS 125B.070 and 125B.080,] the guidelines established by the Administrator of the Division of Welfare and Supportive Services of the Department of Health and Human Services pursuant to section 8 of this act, but must not exceed the reasonable cost of the child’s care, including food, shelter, clothing, medical care and education. An order for support made pursuant to this subsection must:

      (a) Require that payments be made to the appropriate agency or office;

      (b) Provide that the custodian is entitled to a lien on the obligor’s property in the event of nonpayment of support; and

      (c) Provide for the immediate withholding of income for the payment of support unless:

             (1) All parties enter into an alternative written agreement; or

             (2) One party demonstrates and the court finds good cause to postpone the withholding.

      3.  A court that enters an order pursuant to subsection 2 shall ensure that the social security number of the parent or guardian who is the subject of the order is:

      (a) Provided to the Division of Welfare and Supportive Services of the Department of Health and Human Services.

      (b) Placed in the records relating to the matter and, except as otherwise required to carry out a specific statute, maintained in a confidential manner.

      Sec. 13. NRS 125B.070, 125B.085 and 125B.095 are hereby repealed.

      Sec. 14.  1.  This section and sections 4 to 8, inclusive, of this act become effective upon passage and approval.

      2.  Sections 1, 2, 3 and 9 to 13, inclusive, of this act become effective on the effective date of the regulations adopted by the Administrator of the Division of Welfare and Supportive Services of the Department of Health and Human Services establishing the guidelines in this State for the support of one or more children pursuant to section 8 of this act.

________

 


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CHAPTER 372, SB 352

Senate Bill No. 352–Senator Kieckhefer

 

Joint Sponsors: Assemblymen Benitez-Thompson, Kramer, Krasner, Neal, Pickard and Spiegel

 

CHAPTER 372

 

[Approved: June 4, 2017]

 

AN ACT relating to taxation; authorizing the owner of a single-family residence that is replaced after a flood, fire, earthquake or other event for which the Governor has proclaimed a state of emergency or declaration of disaster to apply to the county assessor for an exemption of a portion of the assessed value of the single-family residence; revising provisions governing the calculation of the property taxes imposed on such a single-family residence; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Under existing law, for the purposes of determining the amount of property tax owed by the owner of a parcel of real property, the taxable value of the real property is equal to the value of the land plus the replacement cost of the improvements, depreciated at 1.5 percent for each year of adjusted actual age, up to a maximum of 50 years. (NRS 361.227) Existing law requires that for the purpose of calculating the depreciation of an improvement, the actual age of the improvement must be adjusted when additions or replacements are made with a cumulative cost of least 10 percent of the replacement cost of the improvement. (NRS 361.229) Thus, under existing law, a new improvement which replaces an improvement that was partially or completely destroyed would lose the depreciation accrued on the partially or completely destroyed improvement. (NRS 361.229)

      Section 1 of this bill sets forth the finding of the Legislature that when a single-family residence is partially or completely destroyed by a flood, fire, earthquake or other event for which the Governor proclaims a state of emergency or declaration of disaster, the resulting loss of the depreciation accrued on the partially or completely destroyed residence causes a severe economic hardship to the owner of the residence by increasing the property taxes imposed on the residence. Section 2.3 of this bill authorizes the owner of a single-family residence that replaces a single-family residence partially or completely destroyed by a flood, fire, earthquake or other event for which the Governor, on or after July 1, 2012, proclaimed a state of emergency or declaration of disaster to apply to the county assessor for an exemption of a portion of the assessed value of the single-family residence. Under section 2.3, the county assessor is required to grant an application for such an exemption if: (1) the single-family residence is occupied as the principal residence of the owner; (2) the single-family residence is located on the same parcel of real property as the single-family residence that was partially or completely destroyed; (3) the parcel on which the single-family residence was located has not been sold or transferred in a transaction to which the real property transfer tax applies; (4) a building permit was issued for the residence or, if the local government does not issue building permits, construction of the residence was commenced within a certain period after the partial or complete destruction of the previous residence; and (5) the floor area of the residence does not exceed 110 percent of the floor area of the residence that was partially or completely destroyed. If an exemption of a portion of the assessed value of a single family residence is granted pursuant to section 2.3, the amount of the exemption is equal to the difference between the assessed value of the single-family residence for which the application was granted and the assessed value that the single-family residence would have had if the single-family residence were deemed not to be a new improvement.

 


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Thus, under section 2.3, if an exemption is granted, the single-family residence would not lose the depreciation accrued on the partially or completely destroyed residence. Under section 2.3, the exemption must no longer be applied if the single-family residence granted the exemption is sold or transferred in a transaction to which the real property transfer tax applies.

      The Nevada Constitution requires the Legislature to provide a specific date on which any exemption from property taxes will cease to be effective. (Nev. Const. Art. 10, § 6) To comply with this requirement, section 2.3 prohibits an application for an exemption pursuant to that section from being submitted on or after July 1, 2047. However, an exemption granted pursuant to an application submitted before July 1, 2047, would continue to be in effect until the owner of the residence no longer qualified for the exemption.

      Existing law provides for a partial abatement of taxes, which has the effect of establishing an annual cap on increases in property taxes. Section 2.7 of this bill revises the calculation of the partial abatement for a single-family residence for which an exemption is granted pursuant to section 2.3 so that for the initial fiscal year for which the exemption applies, the partial abatement is calculated based on the taxes imposed on the single-family residence which was partially or completely destroyed in the fiscal year in which the residence was partially or completely destroyed. Section 2.7 also revises the formula for calculating the partial abatement for the fiscal year after the fiscal year in which a single-family residence granted an exemption pursuant to section 2.3 is sold or transferred so that in that fiscal year, the partial abatement is calculated as if the single-family residence had never obtained an exemption pursuant to section 2.3.

 

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.  Subsection 1 of Section 1 of Article 10 of the Nevada Constitution requires the Legislature to provide by law for a uniform and equal rate of assessment and taxation.

      2.  Subsection 10 of Section 1 of Article 10 of the Nevada Constitution establishes an exception to the requirement to provide by law for a uniform and equal rate of assessment and taxation by authorizing the Legislature to provide by law for an exemption of part of the assessed value of a single-family residence occupied by the owner to the extent necessary to avoid severe economic hardship to the owner of the residence.

      3.  When a flood, fire, earthquake or other event for which the Governor proclaims a state of emergency or declaration of disaster partially or completely destroys a single-family residence and the residence is rebuilt or replaced, existing provisions of law cause the new residence to be treated as a new improvement with an increased taxable value and, consequently, the owner of the property incurs a greater property tax liability.

      4.  An increase in the property taxes of the owner of a single-family residence who, after a natural disaster, rebuilds or replaces his or her residence constitutes a severe economic hardship on the owner of the residence.

      Sec. 2. Chapter 361 of NRS is hereby amended by adding thereto the provisions set forth as sections 2.3 and 2.7 of this act.

      Sec. 2.3. 1.  Except as otherwise provided in this subsection, an owner of a single-family residence that is the primary residence of the owner and is a replacement for a single-family residence partially or completely destroyed by a flood, fire, earthquake or other event for which a state of emergency or declaration of disaster was proclaimed by the Governor pursuant to NRS 414.070 on or after July 1, 2012, may apply to the county assessor for an exemption of a portion of the assessed value of the single-family residence.

 


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completely destroyed by a flood, fire, earthquake or other event for which a state of emergency or declaration of disaster was proclaimed by the Governor pursuant to NRS 414.070 on or after July 1, 2012, may apply to the county assessor for an exemption of a portion of the assessed value of the single-family residence. An owner of a single-family residence may not apply for an exemption pursuant to this section on or after July 1, 2047.

      2.  The county assessor shall approve an application submitted pursuant to subsection 1 and grant an exemption of a portion of the assessed value of the single-family residence specified in the application if the application is submitted before July 1, 2047, and the county assessor determines that each of the following criteria are satisfied:

      (a) The single-family residence is occupied by the primary owner of the residence.

      (b) The single-family residence is a replacement for a single-family residence that:

             (1) Is located in an area in which occurred a flood, fire, earthquake or other event for which a state of emergency or declaration of disaster was proclaimed by the Governor pursuant to NRS 414.070 on or after July 1, 2012, and was partially or completely destroyed as a direct result of the flood, fire, earthquake or other event for which the state of emergency or declaration of disaster was proclaimed; and

             (2) Is located on the same parcel of real property as the single-family residence that was partially or completely destroyed.

      (c) The parcel of real property on which was located the single-family residence which was partially or completely destroyed has not been sold or transferred in a transaction to which the provisions of chapter 375 of NRS apply at any time after the flood, fire, earthquake or other event occurred.

      (d) Except as otherwise provided in this paragraph, a building permit for the single-family residence was issued or, if the local government in which the single-family residence is located does not issue building permits, construction on the single-family residence is commenced, not later than 3 years after the partial or complete destruction of the previous single-family residence. The county assessor may approve an extension of the 3-year period required by this paragraph for a period of not more than 3 additional years if the owner is not able to begin construction or obtain a building permit because of circumstances beyond the control of the owner that are related to the event that caused the partial or complete destruction of the single-family residence.

      (e) The floor area of the single-family residence does not exceed 110 percent of the floor area of the single-family residence that was partially or completely destroyed.

      3.  If the county assessor approves an application submitted pursuant to subsection 1, the amount of the exemption must equal the difference between the assessed value of the single-family residence for which the application was granted, as determined pursuant to NRS 361.225 and 361.227, and the assessed value that the single-family residence would have had if the single-family residence were deemed not to be a new improvement.

      4.  If, between July 1 and June 15, the county assessor approves an application submitted pursuant to subsection 1, the owner of the single-family residence is entitled to an exemption of a portion of the assessed value of the single-family residence in the amount determined pursuant to subsection 3 beginning on July 1 of the next fiscal year and the owner of the single-family residence is not entitled to a refund of any taxes paid before that date.

 


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κ2017 Statutes of Nevada, Page 2296 (CHAPTER 372, SB 352)κ

 

subsection 3 beginning on July 1 of the next fiscal year and the owner of the single-family residence is not entitled to a refund of any taxes paid before that date.

      5.  If, after June 15 but on or before June 30, the county assessor approves an application submitted pursuant to subsection 1, the owner of the single-family residence is entitled to an exemption of a portion of the assessed value of the single-family residence in the amount determined pursuant to subsection 3 beginning on July 1 of the fiscal year immediately following the next fiscal year and the owner of the single-family residence is not entitled to a refund of any taxes paid before that date.

      6.  If a single-family residence for which an exemption of a portion of the assessed value of the single-family residence is granted pursuant to this section is sold or transferred in a transaction to which the provisions of chapter 375 of NRS apply:

      (a) The exemption of a portion of the assessed value of the single-family residence must no longer be applied to the single-family residence; and

      (b) In determining the taxable value of the single-family residence for any fiscal year following the sale, the single-family residence must be considered a new improvement as of the date on which the single-family residence was completed.

      7.  As used in this section:

      (a) “Primary residence of the owner” has the meaning ascribed to it in NRS 361.4723.

      (b) “Single-family residence” has the meaning ascribed to it in NRS 361.4723.

      Sec. 2.7. 1.  Notwithstanding the provisions of NRS 361.4722, 361.4723 and 361.4724, if a single-family residence that is the primary residence of the owner is partially or completely destroyed by a flood, fire, earthquake or other event for which a state of emergency or declaration of disaster was proclaimed by the Governor pursuant to NRS 414.070 and if, pursuant to section 2.3 of this act, the owner of the single-family residence is granted an exemption of a portion of the assessed value of the single-family residence, then for the purpose of calculating the amount of any partial abatement to which the owner of the single-family residence is entitled pursuant to NRS 361.4722, 361.4723 or 361.4724 for the initial fiscal year for which the exemption applies, the amount determined for the immediately preceding fiscal year pursuant to paragraph (a) of subsection 1 of NRS 361.4722, paragraph (a) of subsection 2 of NRS 361.4722, paragraph (a) of subsection 1 of NRS 361.4723 or paragraph (a) of subsection 1 of NRS 361.4724, as applicable, must be the amount determined for the fiscal year in which the single-family residence was partially or completely destroyed.

      2.  Notwithstanding the provisions of NRS 361.4722, 361.4723 and 361.4724, if, pursuant to section 2.3 of this act, the owner of a single-family residence is granted an exemption of a portion of the assessed value of the single-family residence and, after the granting of the exemption, the single-family residence is sold or transferred in a transaction to which the provisions of chapter 375 of NRS apply, then for the purpose of calculating the amount of any partial abatement to which the owner of the single-family residence is entitled pursuant to NRS 361.4722, 361.4723 or 361.4724 for the first fiscal year immediately following the sale or transfer of the single-family residence, the owner is entitled only to a partial abatement from taxation provided pursuant to NRS 361.4722, 361.4723 or 361.4724 in an amount equal to the amount of such a partial abatement to which owner would have been entitled if the exemption were not granted and the provisions of subsection 1 were not applied.

 


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κ2017 Statutes of Nevada, Page 2297 (CHAPTER 372, SB 352)κ

 

of the single-family residence, the owner is entitled only to a partial abatement from taxation provided pursuant to NRS 361.4722, 361.4723 or 361.4724 in an amount equal to the amount of such a partial abatement to which owner would have been entitled if the exemption were not granted and the provisions of subsection 1 were not applied.

      3.  As used in this section:

      (a) “Primary residence of the owner” has the meaning ascribed to it in NRS 361.4723.

      (b) “Single-family residence” has the meaning ascribed to it in NRS 361.4723.

      Sec. 3. (Deleted by amendment.)

      Sec. 3.1. NRS 361.155 is hereby amended to read as follows:

      361.155  1.  Except as otherwise provided in this section [:] and section 2.3 of this act:

      (a) All claims for personal tax exemptions on real property, the initial claim of an organization for a tax exemption on real property and the designation of any amount to be credited to the Gift Account for the Veterans Home in Southern Nevada or the Gift Account for the Veterans Home in Northern Nevada pursuant to NRS 361.0905 must be filed on or before June 15.

      (b) An initial claim for a tax exemption on real property acquired after June 15 and before July 1 must be filed on or before July 5.

      2.  All exemptions provided for pursuant to this chapter apply on a fiscal year basis, and any exemption granted pursuant to this chapter must not be in an amount which gives the taxpayer a total exemption greater than that to which the taxpayer is entitled during any fiscal year.

      3.  Except as otherwise provided in this section, each claim for an exemption provided for pursuant to this chapter must be filed with the county assessor of:

      (a) The county in which the claimant resides for personal tax exemptions; or

      (b) Each county in which property is located for the tax exemption of an organization.

      4.  After the initial claim for an exemption pursuant to NRS 361.088 or 361.098 to 361.150, inclusive, and section 2.3 of this act, an organization is not required to file annual claims if the property remains exempt. If any portion of the property loses its exemption pursuant to NRS 361.157 or for any other reason becomes taxable, the organization must notify the county assessor.

      5.  If an exemption is granted or renewed in error because of an incorrect claim or failure of an organization to give the notice required by subsection 4, the assessor shall assess the taxable portion of the property retroactively pursuant to NRS 361.769 and a penalty of 10 percent of the tax due for the current year and any prior years may be added.

      6.  If a claim for a tax exemption on real property and any required affidavit or other documentation in support of the claim is not filed within the time required by subsection 1, or if a claim for a tax exemption is denied by the county assessor, the person claiming the exemption may, on or before January 15 of the fiscal year for which the claim of exemption is made, file the claim and any required documentation in support of the claim with the county board of equalization of the county in which the claim is required to be filed pursuant to subsection 3. The county board of equalization shall review the claim of exemption and may grant or deny the claim for that fiscal year, as it determines to be appropriate.

 


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κ2017 Statutes of Nevada, Page 2298 (CHAPTER 372, SB 352)κ

 

review the claim of exemption and may grant or deny the claim for that fiscal year, as it determines to be appropriate. The State Board of Equalization shall establish procedures for:

      (a) The review of a claim of exemption by a county board of equalization pursuant to this subsection; and

      (b) The appeal to the State Board of Equalization of the denial of a claim of exemption by a county board of equalization pursuant to this subsection.

      Sec. 3.3. NRS 361.471 is hereby amended to read as follows:

      361.471  As used in NRS 361.471 to 361.4735, inclusive, and section 2.7 of this act, unless the context otherwise requires, the words and terms defined in NRS 361.47111 to 361.4721, inclusive, have the meanings ascribed to them in those sections.

      Sec. 3.5. NRS 361.4722 is hereby amended to read as follows:

      361.4722  1.  Except as otherwise provided in or required to carry out the provisions of subsection 3 and NRS 361.4725 to 361.4729, inclusive, and section 2.7 of this act, the owner of any parcel or other taxable unit of property, including property entered on the central assessment roll, for which an assessed valuation was separately established for the immediately preceding fiscal year is entitled to a partial abatement of the ad valorem taxes levied in a county on that property each fiscal year equal to the amount by which the product of the combined rate of all ad valorem taxes levied in that county on the property for that fiscal year and the amount of the assessed valuation of the property which is taxable in that county for that fiscal year, excluding any increase in the assessed valuation of the property from the immediately preceding fiscal year as a result of any improvement to or change in the actual or authorized use of the property, exceeds the sum obtained by adding:

      (a) The amount of all the ad valorem taxes:

             (1) Levied in that county on the property for the immediately preceding fiscal year; or

             (2) Which would have been levied in that county on the property for the immediately preceding fiscal year if not for any exemptions from taxation that applied to the property for that prior fiscal year but do not apply to the property for the current fiscal year,

Κ whichever is greater; and

      (b) A percentage of the amount determined pursuant to paragraph (a) which is equal to:

             (1) The greater of:

                   (I) The average percentage of change in the assessed valuation of all the taxable property in the county, as determined by the Department, over the fiscal year in which the levy is made and the 9 immediately preceding fiscal years;

                   (II) Twice the percentage of increase in the Consumer Price Index for all Urban Consumers, U.S. City Average (All Items) for the immediately preceding calendar year; or

                   (III) Zero; or

             (2) Eight percent,

Κ whichever is less.

      2.  Except as otherwise provided in or required to carry out the provisions of NRS 361.4725 to 361.4729, inclusive, and section 2.7 of this act, the owner of any remainder parcel of real property for which no assessed valuation was separately established for the immediately preceding fiscal year, is entitled to a partial abatement of the ad valorem taxes levied in a county on that property for a fiscal year equal to the amount by which the product of the combined rate of all ad valorem taxes levied in that county on the property for that fiscal year and the amount of the assessed valuation of the property which is taxable in that county for that fiscal year, excluding any amount of that assessed valuation attributable to any improvement to or change in the actual or authorized use of the property that would not have been included in the calculation of the assessed valuation of the property for the immediately preceding fiscal year if an assessed valuation had been separately established for that property for that prior fiscal year, exceeds the sum obtained by adding:

 


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κ2017 Statutes of Nevada, Page 2299 (CHAPTER 372, SB 352)κ

 

year, is entitled to a partial abatement of the ad valorem taxes levied in a county on that property for a fiscal year equal to the amount by which the product of the combined rate of all ad valorem taxes levied in that county on the property for that fiscal year and the amount of the assessed valuation of the property which is taxable in that county for that fiscal year, excluding any amount of that assessed valuation attributable to any improvement to or change in the actual or authorized use of the property that would not have been included in the calculation of the assessed valuation of the property for the immediately preceding fiscal year if an assessed valuation had been separately established for that property for that prior fiscal year, exceeds the sum obtained by adding:

      (a) The amount of all the ad valorem taxes:

             (1) Which would have been levied in that county on the property for the immediately preceding fiscal year if an assessed valuation had been separately established for that property for that prior fiscal year based upon all the assumptions, costs, values, calculations and other factors and considerations that would have been used for the valuation of that property for that prior fiscal year; or

             (2) Which would have been levied in that county on the property for the immediately preceding fiscal year if an assessed valuation had been separately established for that property for that prior fiscal year based upon all the assumptions, costs, values, calculations and other factors and considerations that would have been used for the valuation of that property for that prior fiscal year, and if not for any exemptions from taxation that applied to the property for that prior fiscal year but do not apply to the property for the current fiscal year,

Κ whichever is greater; and

      (b) A percentage of the amount determined pursuant to paragraph (a) which is equal to:

             (1) The greater of:

                   (I) The average percentage of change in the assessed valuation of all the taxable property in the county, as determined by the Department, over the fiscal year in which the levy is made and the 9 immediately preceding fiscal years;

                   (II) Twice the percentage of increase in the Consumer Price Index for all Urban Consumers, U.S. City Average (All Items) for the immediately preceding calendar year; or

                   (III) Zero; or

             (2) Eight percent,

Κ whichever is less.

      3.  The provisions of subsection 1 do not apply to any property for which the provisions of subsection 1 of NRS 361.4723 or subsection 1 of NRS 361.4724 provide a greater abatement from taxation.

      4.  Except as otherwise required to carry out the provisions of NRS 361.4732 and any regulations adopted pursuant to NRS 361.4733, the amount of any reduction in the ad valorem taxes levied in a county for a fiscal year as a result of the application of the provisions of subsections 1 and 2 must be deducted from the amount of ad valorem taxes each taxing entity would otherwise be entitled to receive for that fiscal year in the same proportion as the rate of ad valorem taxes levied in the county on the property by or on behalf of that taxing entity for that fiscal year bears to the combined rate of all ad valorem taxes levied in the county on the property by or on behalf of all taxing entities for that fiscal year.

 


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κ2017 Statutes of Nevada, Page 2300 (CHAPTER 372, SB 352)κ

 

combined rate of all ad valorem taxes levied in the county on the property by or on behalf of all taxing entities for that fiscal year.

      5.  The Nevada Tax Commission shall adopt such regulations as it deems appropriate to ensure that this section is carried out in a uniform and equal manner.

      6.  For the purposes of this section, “remainder parcel of real property” means a parcel of real property which remains after the creation of new parcels of real property for development from one or more existing parcels of real property, if the use of that remaining parcel has not changed from the immediately preceding fiscal year.

      Sec. 3.7. NRS 361.4723 is hereby amended to read as follows:

      361.4723  The Legislature hereby finds and declares that an increase in the tax bill of the owner of a home by more than 3 percent over the tax bill of that homeowner for the previous year constitutes a severe economic hardship within the meaning of subsection 10 of Section 1 of Article 10 of the Nevada Constitution. The Legislature therefore directs a partial abatement of taxes for such homeowners as follows:

      1.  Except as otherwise provided in or required to carry out the provisions of subsection 2 and NRS 361.4725 to 361.4729, inclusive, and section 2.7 of this act, the owner of a single-family residence which is the primary residence of the owner is entitled to a partial abatement of the ad valorem taxes levied in a county on that property each fiscal year equal to the amount by which the product of the combined rate of all ad valorem taxes levied in that county on the property for that fiscal year and the amount of the assessed valuation of the property which is taxable in that county for that fiscal year, excluding any increase in the assessed valuation of the property from the immediately preceding fiscal year as a result of any improvement to or change in the actual or authorized use of the property, exceeds the sum obtained by adding:

      (a) The amount of all the ad valorem taxes:

             (1) Levied in that county on the property for the immediately preceding fiscal year; or

             (2) Which would have been levied in that county on the property for the immediately preceding fiscal year if not for any exemptions from taxation that applied to the property for that prior fiscal year but do not apply to the property for the current fiscal year,

Κ whichever is greater; and

      (b) Three percent of the amount determined pursuant to paragraph (a).

      2.  The provisions of subsection 1 do not apply to any property for which:

      (a) No assessed valuation was separately established for the immediately preceding fiscal year; or

      (b) The provisions of subsection 1 of NRS 361.4722 provide a greater abatement from taxation.

      3.  Except as otherwise required to carry out the provisions of NRS 361.4732 and any regulations adopted pursuant to NRS 361.4733, the amount of any reduction in the ad valorem taxes levied in a county for a fiscal year as a result of the application of the provisions of subsection 1 must be deducted from the amount of ad valorem taxes each taxing entity would otherwise be entitled to receive for that fiscal year in the same proportion as the rate of ad valorem taxes levied in the county on the property by or on behalf of that taxing entity for that fiscal year bears to the combined rate of all ad valorem taxes levied in the county on the property by or on behalf of all taxing entities for that fiscal year.

 


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κ2017 Statutes of Nevada, Page 2301 (CHAPTER 372, SB 352)κ

 

combined rate of all ad valorem taxes levied in the county on the property by or on behalf of all taxing entities for that fiscal year.

      4.  The Nevada Tax Commission shall adopt such regulations as it deems appropriate to carry out this section, including, without limitation, regulations providing a methodology for applying the partial abatement provided pursuant to subsection 1 to a parcel of real property of which only a portion qualifies as a single-family residence which is the primary residence of the owner and the remainder is used in another manner.

      5.  The owner of a single-family residence does not become ineligible for the partial abatement provided pursuant to subsection 1 as a result of:

      (a) The operation of a home business out of a portion of that single-family residence; or

      (b) The manner in which title is held by the owner if the owner occupies the residence, including, without limitation, if the owner has placed the title in a trust for purposes of estate planning.

      6.  For the purposes of this section:

      (a) “Primary residence of the owner” means a residence which:

             (1) Is designated by the owner as the primary residence of the owner in this State, exclusive of any other residence of the owner in this State; and

             (2) Is not rented, leased or otherwise made available for exclusive occupancy by any person other than the owner of the residence and members of the family of the owner of the residence.

      (b) “Single-family residence” means a parcel or other unit of real property or unit of personal property which is intended or designed to be occupied by one family with facilities for living, sleeping, cooking and eating.

      (c) “Unit of personal property” includes, without limitation, any:

             (1) Mobile or manufactured home, whether or not the owner thereof also owns the real property upon which it is located; or

             (2) Taxable unit of a condominium, common-interest community, planned unit development or similar property,

Κ if classified as personal property for the purposes of this chapter.

      (d) “Unit of real property” includes, without limitation, any taxable unit of a condominium, common-interest community, planned unit development or similar property, if classified as real property for the purposes of this chapter.

      Sec. 3.9. NRS 361.4724 is hereby amended to read as follows:

      361.4724  The Legislature hereby finds and declares that many Nevadans who cannot afford to own their own homes would be adversely affected by large unanticipated increases in property taxes, as those tax increases are passed down to renters in the form of rent increases and therefore the benefits of a charitable exemption pursuant to subsection 8 of Section 1 of Article 10 of the Nevada Constitution should be afforded to those Nevadans through an abatement granted to the owners of residential rental dwellings who charge rent that does not exceed affordable housing standards for low-income housing. The Legislature therefore directs a partial abatement of taxes for such owners as follows:

      1.  Except as otherwise provided in or required to carry out the provisions of subsection 2 and NRS 361.4725 to 361.4729, inclusive, and section 2.7 of this act, if the amount of rent collected from each of the tenants of a residential dwelling does not exceed the fair market rent for the county in which the dwelling is located, as most recently published by the United States Department of Housing and Urban Development, the owner of the dwelling is entitled to a partial abatement of the ad valorem taxes levied in a county on that property for each fiscal year equal to the amount by which the product of the combined rate of all ad valorem taxes levied in that county on the property for that fiscal year and the amount of the assessed valuation of the property which is taxable in that county for that fiscal year, excluding any increase in the assessed valuation of the property from the immediately preceding fiscal year as a result of any improvement to or change in the actual or authorized use of the property, exceeds the sum obtained by adding:

 


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κ2017 Statutes of Nevada, Page 2302 (CHAPTER 372, SB 352)κ

 

the United States Department of Housing and Urban Development, the owner of the dwelling is entitled to a partial abatement of the ad valorem taxes levied in a county on that property for each fiscal year equal to the amount by which the product of the combined rate of all ad valorem taxes levied in that county on the property for that fiscal year and the amount of the assessed valuation of the property which is taxable in that county for that fiscal year, excluding any increase in the assessed valuation of the property from the immediately preceding fiscal year as a result of any improvement to or change in the actual or authorized use of the property, exceeds the sum obtained by adding:

      (a) The amount of all the ad valorem taxes:

             (1) Levied in that county on the property for the immediately preceding fiscal year; or

             (2) Which would have been levied in that county on the property for the immediately preceding fiscal year if not for any exemptions from taxation that applied to the property for that prior fiscal year but do not apply to the property for the current fiscal year,

Κ whichever is greater; and

      (b) Three percent of the amount determined pursuant to paragraph (a).

      2.  The provisions of subsection 1 do not apply to:

      (a) Any hotels, motels or other forms of transient lodging;

      (b) Any property for which no assessed valuation was separately established for the immediately preceding fiscal year; and

      (c) Any property for which the provisions of subsection 1 of NRS 361.4722 provide a greater abatement from taxation.

      3.  Except as otherwise required to carry out the provisions of NRS 361.4732 and any regulations adopted pursuant to NRS 361.4733, the amount of any reduction in the ad valorem taxes levied in a county for a fiscal year as a result of the application of the provisions of subsection 1 must be deducted from the amount of ad valorem taxes each taxing entity would otherwise be entitled to receive for that fiscal year in the same proportion as the rate of ad valorem taxes levied in the county on the property by or on behalf of that taxing entity for that fiscal year bears to the combined rate of all ad valorem taxes levied in the county on the property by or on behalf of all taxing entities for that fiscal year.

      4.  The Nevada Tax Commission shall adopt such regulations as it deems appropriate to carry out this section.

      Sec. 4. (Deleted by amendment.)

      Sec. 4.5.  The Legislature hereby finds that the exemption provided by this act from any ad valorem tax on property:

      1.  Will achieve a bona fide social or economic purpose and that the benefits of the exemption are expected to exceed any adverse effect of the exemption on the provision of services to the public by the State or a local government that would otherwise receive revenue from the tax from which the exemption would be granted; and

      2.  Will not impair adversely the ability of the State or a local government to pay, when due, all interest and principal on any outstanding bonds or any other obligations for which revenue from the tax from which the exemption would be granted was pledged.

      Sec. 5.  This act becomes effective on July 1, 2017.

________

 


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κ2017 Statutes of Nevada, Page 2303κ

 

CHAPTER 373, SB 324

Senate Bill No. 324–Committee on Health and Human Services

 

CHAPTER 373

 

[Approved: June 4, 2017]

 

AN ACT relating to health care; requiring the State Board of Health to adopt regulations authorizing an employee of a residential facility for groups, an agency to provide personal care services in the home, a facility for the care of adults during the day or an intermediary service organization to check vital signs and perform certain related tasks for a person receiving services from the facility, agency or organization; exempting such tasks from provisions governing respiratory care and medical laboratories; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Sections 2 and 3 of this bill require the State Board of Health to adopt regulations authorizing an employee of a residential facility for groups, an agency to provide personal care services in the home, a facility for the care of adults during the day or an intermediary service organization to check vital signs, administer insulin and perform a blood glucose test. Sections 16 and 17 of this bill exempt any tasks performed in accordance with those regulations from the scope of provisions relating to respiratory care and the licensing of medical laboratories, 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. Chapter 449 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.

      Sec. 2. 1.  The Board shall adopt regulations authorizing an employee of a residential facility for groups, an agency to provide personal care services in the home or a facility for the care of adults during the day, with the consent of the person receiving services, to:

      (a) Check, record and report the temperature, blood pressure, apical or radial pulse, respiration or oxygen saturation of a person receiving services from the facility or agency;

      (b) Using an auto-injection device approved by the Food and Drug Administration for use in the home, administer to a person receiving services from the facility or agency insulin furnished by a registered pharmacist as directed by a physician or assist such a person with the self-administration of such insulin; and

      (c) Using a device for monitoring blood glucose approved by the Food and Drug Administration for use in the home, conduct a blood glucose test on a person receiving services from the facility or agency or assist such a person to conduct a blood glucose test on himself or herself.

      2.  The regulations adopted pursuant to this section:

      (a) Must require the tasks described in subsection 1 to be performed in conformance with the Clinical Laboratory Improvement Amendments of 1988, Public Law No. 100-578, 42 U.S.C. § 263a, if applicable, and any other applicable federal law or regulation;

 


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κ2017 Statutes of Nevada, Page 2304 (CHAPTER 373, SB 324)κ

 

      (b) Must prohibit the use of a device for monitoring blood glucose on more than one person; and

      (c) May require a person to receive training before performing any task described in subsection 1.

      Sec. 3. 1.  The Board shall adopt regulations authorizing an employee of an intermediary service organization, with the consent of the person receiving services, to:

      (a) Check, record and report the temperature, blood pressure, apical or radial pulse, respiration or oxygen saturation of a person receiving services from the organization;

      (b) Using an auto-injection device approved by the Food and Drug Administration for use in the home, administer to a person receiving services from the organization insulin furnished by a registered pharmacist as directed by a physician or assist such a person with the self-administration of such insulin; and

      (c) Using a device for monitoring blood glucose approved by the Food and Drug Administration for use in the home, perform a blood glucose test on a person receiving services from the organization or assist such a person to perform a blood glucose test on himself or herself.

      2.  The regulations adopted pursuant to this section:

      (a) Must require the tasks described in subsection 1 to be performed in conformance with the Clinical Laboratory Improvement Amendments of 1988, Public Law No. 100-578, 42 U.S.C. § 263a, if applicable, and any other applicable federal law or regulation;

      (b) Must prohibit the use of a device for monitoring blood glucose on more than one person; and

      (c) May require a person to receive training before performing any task described in subsection 1.

      Sec. 4. NRS 449.0301 is hereby amended to read as follows:

      449.0301  The provisions of NRS 449.030 to 449.2428, inclusive, and section 2 of this act do not apply to:

      1.  Any facility conducted by and for the adherents of any church or religious denomination for the purpose of providing facilities for the care and treatment of the sick who depend solely upon spiritual means through prayer for healing in the practice of the religion of the church or denomination, except that such a facility shall comply with all regulations relative to sanitation and safety applicable to other facilities of a similar category.

      2.  Foster homes as defined in NRS 424.014.

      3.  Any medical facility or facility for the dependent operated and maintained by the United States Government or an agency thereof.

      Sec. 4.5. NRS 449.0302 is hereby amended to read as follows:

      449.0302  1.  The Board shall adopt:

      (a) Licensing standards for each class of medical facility or facility for the dependent covered by NRS 449.030 to 449.2428, inclusive, and section 2 of this act, and for programs of hospice care.

      (b) Regulations governing the licensing of such facilities and programs.

      (c) Regulations governing the procedure and standards for granting an extension of the time for which a natural person may provide certain care in his or her home without being considered a residential facility for groups pursuant to NRS 449.017. The regulations must require that such grants are effective only if made in writing.

 


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κ2017 Statutes of Nevada, Page 2305 (CHAPTER 373, SB 324)κ

 

      (d) Regulations establishing a procedure for the indemnification by the Division, from the amount of any surety bond or other obligation filed or deposited by a facility for refractive surgery pursuant to NRS 449.068 or 449.069, of a patient of the facility who has sustained any damages as a result of the bankruptcy of or any breach of contract by the facility.

      (e) Any other regulations as it deems necessary or convenient to carry out the provisions of NRS 449.030 to 449.2428, inclusive [.] , and section 2 of this act.

      2.  The Board shall adopt separate regulations governing the licensing and operation of:

      (a) Facilities for the care of adults during the day; and

      (b) Residential facilities for groups,

Κ which provide care to persons with Alzheimer’s disease.

      3.  The Board shall adopt separate regulations for:

      (a) The licensure of rural hospitals which take into consideration the unique problems of operating such a facility in a rural area.

      (b) The licensure of facilities for refractive surgery which take into consideration the unique factors of operating such a facility.

      (c) The licensure of mobile units which take into consideration the unique factors of operating a facility that is not in a fixed location.

      4.  The Board shall require that the practices and policies of each medical facility or facility for the dependent provide adequately for the protection of the health, safety and physical, moral and mental well-being of each person accommodated in the facility.

      5.  In addition to the training requirements prescribed pursuant to NRS 449.093, the Board shall establish minimum qualifications for administrators and employees of residential facilities for groups. In establishing the qualifications, the Board shall consider the related standards set by nationally recognized organizations which accredit such facilities.

      6.  The Board shall adopt separate regulations regarding the assistance which may be given pursuant to NRS 453.375 and 454.213 to an ultimate user of controlled substances or dangerous drugs by employees of residential facilities for groups. The regulations must require at least the following conditions before such assistance may be given:

      (a) The ultimate user’s physical and mental condition is stable and is following a predictable course.

      (b) The amount of the medication prescribed is at a maintenance level and does not require a daily assessment.

      (c) A written plan of care by a physician or registered nurse has been established that:

             (1) Addresses possession and assistance in the administration of the medication; and

             (2) Includes a plan, which has been prepared under the supervision of a registered nurse or licensed pharmacist, for emergency intervention if an adverse condition results.

      (d) [The] Except as otherwise authorized by the regulations adopted pursuant to section 2 of this act, the prescribed medication is not administered by injection or intravenously.

      (e) The employee has successfully completed training and examination approved by the Division regarding the authorized manner of assistance.

      7.  The Board shall adopt separate regulations governing the licensing and operation of residential facilities for groups which provide assisted living services.

 


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services. The Board shall not allow the licensing of a facility as a residential facility for groups which provides assisted living services and a residential facility for groups shall not claim that it provides “assisted living services” unless:

      (a) Before authorizing a person to move into the facility, the facility makes a full written disclosure to the person regarding what services of personalized care will be available to the person and the amount that will be charged for those services throughout the resident’s stay at the facility.

      (b) The residents of the facility reside in their own living units which:

             (1) Except as otherwise provided in subsection 8, contain toilet facilities;

             (2) Contain a sleeping area or bedroom; and

             (3) Are shared with another occupant only upon consent of both occupants.

      (c) The facility provides personalized care to the residents of the facility and the general approach to operating the facility incorporates these core principles:

             (1) The facility is designed to create a residential environment that actively supports and promotes each resident’s quality of life and right to privacy;

             (2) The facility is committed to offering high-quality supportive services that are developed by the facility in collaboration with the resident to meet the resident’s individual needs;

             (3) The facility provides a variety of creative and innovative services that emphasize the particular needs of each individual resident and the resident’s personal choice of lifestyle;

             (4) The operation of the facility and its interaction with its residents supports, to the maximum extent possible, each resident’s need for autonomy and the right to make decisions regarding his or her own life;

             (5) The operation of the facility is designed to foster a social climate that allows the resident to develop and maintain personal relationships with fellow residents and with persons in the general community;

             (6) The facility is designed to minimize and is operated in a manner which minimizes the need for its residents to move out of the facility as their respective physical and mental conditions change over time; and

             (7) The facility is operated in such a manner as to foster a culture that provides a high-quality environment for the residents, their families, the staff, any volunteers and the community at large.

      8.  The Division may grant an exception from the requirement of subparagraph (1) of paragraph (b) of subsection 7 to a facility which is licensed as a residential facility for groups on or before July 1, 2005, and which is authorized to have 10 or fewer beds and was originally constructed as a single-family dwelling if the Division finds that:

      (a) Strict application of that requirement would result in economic hardship to the facility requesting the exception; and

      (b) The exception, if granted, would not:

             (1) Cause substantial detriment to the health or welfare of any resident of the facility;

             (2) Result in more than two residents sharing a toilet facility; or

             (3) Otherwise impair substantially the purpose of that requirement.

 


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      9.  The Board shall, if it determines necessary, adopt regulations and requirements to ensure that each residential facility for groups and its staff are prepared to respond to an emergency, including, without limitation:

      (a) The adoption of plans to respond to a natural disaster and other types of emergency situations, including, without limitation, an emergency involving fire;

      (b) The adoption of plans to provide for the evacuation of a residential facility for groups in an emergency, including, without limitation, plans to ensure that nonambulatory patients may be evacuated;

      (c) Educating the residents of residential facilities for groups concerning the plans adopted pursuant to paragraphs (a) and (b); and

      (d) Posting the plans or a summary of the plans adopted pursuant to paragraphs (a) and (b) in a conspicuous place in each residential facility for groups.

      10.  The regulations governing the licensing and operation of facilities for transitional living for released offenders must provide for the licensure of at least three different types of facilities, including, without limitation:

      (a) Facilities that only provide a housing and living environment;

      (b) Facilities that provide or arrange for the provision of supportive services for residents of the facility to assist the residents with reintegration into the community, in addition to providing a housing and living environment; and

      (c) Facilities that provide or arrange for the provision of alcohol and drug abuse programs, in addition to providing a housing and living environment and providing or arranging for the provision of other supportive services.

Κ The regulations must provide that if a facility was originally constructed as a single-family dwelling, the facility must not be authorized for more than eight beds.

      11.  As used in this section, “living unit” means an individual private accommodation designated for a resident within the facility.

      Sec. 5. NRS 449.0306 is hereby amended to read as follows:

      449.0306  1.  Money received from licensing medical facilities and facilities for the dependent must be forwarded to the State Treasurer for deposit in the State General Fund.

      2.  The Division shall enforce the provisions of NRS 449.030 to 449.245, inclusive, and section 2 of this act, and may incur any necessary expenses not in excess of money appropriated for that purpose by the State or received from the Federal Government.

      Sec. 6. NRS 449.160 is hereby amended to read as follows:

      449.160  1.  The Division may deny an application for a license or may suspend or revoke any license issued under the provisions of NRS 449.030 to 449.2428, inclusive, and section 2 of this act upon any of the following grounds:

      (a) Violation by the applicant or the licensee of any of the provisions of NRS 439B.410 or 449.030 to 449.245, inclusive, and section 2 of this act, or of any other law of this State or of the standards, rules and regulations adopted thereunder.

      (b) Aiding, abetting or permitting the commission of any illegal act.

      (c) Conduct inimical to the public health, morals, welfare and safety of the people of the State of Nevada in the maintenance and operation of the premises for which a license is issued.

 


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κ2017 Statutes of Nevada, Page 2308 (CHAPTER 373, SB 324)κ

 

      (d) Conduct or practice detrimental to the health or safety of the occupants or employees of the facility.

      (e) Failure of the applicant to obtain written approval from the Director of the Department of Health and Human Services as required by NRS 439A.100 or as provided in any regulation adopted pursuant to NRS 449.001 to 449.430, inclusive, and section 2 of this act, and 449.435 to 449.965, inclusive, if such approval is required.

      (f) Failure to comply with the provisions of NRS 449.2486.

      2.  In addition to the provisions of subsection 1, the Division may revoke a license to operate a facility for the dependent if, with respect to that facility, the licensee that operates the facility, or an agent or employee of the licensee:

      (a) Is convicted of violating any of the provisions of NRS 202.470;

      (b) Is ordered to but fails to abate a nuisance pursuant to NRS 244.360, 244.3603 or 268.4124; or

      (c) Is ordered by the appropriate governmental agency to correct a violation of a building, safety or health code or regulation but fails to correct the violation.

      3.  The Division shall maintain a log of any complaints that it receives relating to activities for which the Division may revoke the license to operate a facility for the dependent pursuant to subsection 2. The Division shall provide to a facility for the care of adults during the day:

      (a) A summary of a complaint against the facility if the investigation of the complaint by the Division either substantiates the complaint or is inconclusive;

      (b) A report of any investigation conducted with respect to the complaint; and

      (c) A report of any disciplinary action taken against the facility.

Κ The facility shall make the information available to the public pursuant to NRS 449.2486.

      4.  On or before February 1 of each odd-numbered year, the Division shall submit to the Director of the Legislative Counsel Bureau a written report setting forth, for the previous biennium:

      (a) Any complaints included in the log maintained by the Division pursuant to subsection 3; and

      (b) Any disciplinary actions taken by the Division pursuant to subsection 2.

      Sec. 7. NRS 449.163 is hereby amended to read as follows:

      449.163  1.  In addition to the payment of the amount required by NRS 449.0308, if a medical facility or facility for the dependent violates any provision related to its licensure, including any provision of NRS 439B.410 or 449.030 to 449.2428, inclusive, and section 2 of this act, or any condition, standard or regulation adopted by the Board, the Division, in accordance with the regulations adopted pursuant to NRS 449.165, may:

      (a) Prohibit the facility from admitting any patient until it determines that the facility has corrected the violation;

      (b) Limit the occupancy of the facility to the number of beds occupied when the violation occurred, until it determines that the facility has corrected the violation;

      (c) If the license of the facility limits the occupancy of the facility and the facility has exceeded the approved occupancy, require the facility, at its own expense, to move patients to another facility that is licensed;

 


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κ2017 Statutes of Nevada, Page 2309 (CHAPTER 373, SB 324)κ

 

      (d) Impose an administrative penalty of not more than $1,000 per day for each violation, together with interest thereon at a rate not to exceed 10 percent per annum; and

      (e) Appoint temporary management to oversee the operation of the facility and to ensure the health and safety of the patients of the facility, until:

             (1) It determines that the facility has corrected the violation and has management which is capable of ensuring continued compliance with the applicable statutes, conditions, standards and regulations; or

             (2) Improvements are made to correct the violation.

      2.  If a violation by a medical facility or facility for the dependent relates to the health or safety of a patient, an administrative penalty imposed pursuant to paragraph (d) of subsection 1 must be in a total amount of not less than $1,000 and not more than $10,000 for each patient who was harmed or at risk of harm as a result of the violation.

      3.  If the facility fails to pay any administrative penalty imposed pursuant to paragraph (d) of subsection 1, the Division may:

      (a) Suspend the license of the facility until the administrative penalty is paid; and

      (b) Collect court costs, reasonable attorney’s fees and other costs incurred to collect the administrative penalty.

      4.  The Division may require any facility that violates any provision of NRS 439B.410 or 449.030 to 449.2428, inclusive, and section 2 of this act, or any condition, standard or regulation adopted by the Board to make any improvements necessary to correct the violation.

      5.  Any money collected as administrative penalties pursuant to paragraph (d) of subsection 1 must be accounted for separately and used to administer and carry out the provisions of NRS 449.001 to 449.430, inclusive, and section 2 of this act, and 449.435 to 449.965, inclusive, to protect the health, safety, well-being and property of the patients and residents of facilities in accordance with applicable state and federal standards or for any other purpose authorized by the Legislature.

      Sec. 8. NRS 449.220 is hereby amended to read as follows:

      449.220  1.  The Division may bring an action in the name of the State to enjoin any person, state or local government unit or agency thereof from operating or maintaining any facility within the meaning of NRS 449.030 to 449.2428, inclusive [:] , and section 2 of this act:

      (a) Without first obtaining a license therefor; or

      (b) After his or her license has been revoked or suspended by the Division.

      2.  It is sufficient in such action to allege that the defendant did, on a certain date and in a certain place, operate and maintain such a facility without a license.

      Sec. 9. NRS 449.240 is hereby amended to read as follows:

      449.240  The district attorney of the county in which the facility is located shall, upon application by the Division, institute and conduct the prosecution of any action for violation of any provisions of NRS 449.030 to 449.245, inclusive [.] , and section 2 of this act.

      Sec. 10. NRS 449.4304 is hereby amended to read as follows:

      449.4304  As used in NRS 449.4304 to 449.4339, inclusive, and section 3 of this act, unless the context otherwise requires, “intermediary service organization” means a nongovernmental entity that provides services authorized pursuant to NRS 449.4308 for a person with a disability or other responsible person.

 


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κ2017 Statutes of Nevada, Page 2310 (CHAPTER 373, SB 324)κ

 

organization” means a nongovernmental entity that provides services authorized pursuant to NRS 449.4308 for a person with a disability or other responsible person.

      Sec. 11. NRS 449.4321 is hereby amended to read as follows:

      449.4321  The Division may deny an application for a certificate to operate an intermediary service organization or may suspend or revoke any certificate issued under the provisions of NRS 449.4304 to 449.4339, inclusive, and section 3 of this act upon any of the following grounds:

      1.  Violation by the applicant or the holder of a certificate of any of the provisions of NRS 449.4304 to 449.4339, inclusive, and section 3 of this act, or of any other law of this State or of the standards, rules and regulations adopted thereunder.

      2.  Aiding, abetting or permitting the commission of any illegal act.

      3.  Conduct inimical to the public health, morals, welfare and safety of the people of the State of Nevada in the operation of an intermediary service organization.

      4.  Conduct or practice detrimental to the health or safety of a person under contract with or employees of the intermediary service organization.

      Sec. 12. NRS 449.4325 is hereby amended to read as follows:

      449.4325  1.  Money received from the certification of intermediary service organizations:

      (a) Must be forwarded to the State Treasurer for deposit in the State Treasury;

      (b) Must be accounted for separately in the State General Fund; and

      (c) May only be used to carry out the provisions of NRS 449.4304 to 449.4339, inclusive [.] , and section 3 of this act.

      2.  The Division shall enforce the provisions of NRS 449.4304 to 449.4339, inclusive, and section 3 of this act, and may incur any necessary expenses not in excess of money appropriated for that purpose by the State or received from the Federal Government.

      Sec. 13. NRS 449.4335 is hereby amended to read as follows:

      449.4335  1.  If an intermediary service organization violates any provision related to its certification, including, without limitation, any provision of NRS 449.4304 to 449.4339, inclusive, and section 3 of this act, or any condition, standard or regulation adopted by the Board, the Division, in accordance with the regulations adopted pursuant to NRS 449.4336, may, as it deems appropriate:

      (a) Prohibit the intermediary service organization from providing services pursuant to NRS 449.4308 until it determines that the intermediary service organization has corrected the violation;

      (b) Impose an administrative penalty of not more than $1,000 per day for each violation, together with interest thereon at a rate not to exceed 10 percent per annum; and

      (c) Appoint temporary management to oversee the operation of the intermediary service organization and to ensure the health and safety of the persons for whom the intermediary service organization performs services, until:

             (1) It determines that the intermediary service organization has corrected the violation and has management which is capable of ensuring continued compliance with the applicable statutes, conditions, standards and regulations; or

             (2) Improvements are made to correct the violation.

 


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κ2017 Statutes of Nevada, Page 2311 (CHAPTER 373, SB 324)κ

 

      2.  If the intermediary service organization fails to pay any administrative penalty imposed pursuant to paragraph (b) of subsection 1, the Division may:

      (a) Suspend the certificate to operate an intermediary service organization which is held by the intermediary service organization until the administrative penalty is paid; and

      (b) Collect court costs, reasonable attorney’s fees and other costs incurred to collect the administrative penalty.

      3.  The Division may require any intermediary service organization that violates any provision of NRS 449.4304 to 449.4339, inclusive, and section 3 of this act, or any condition, standard or regulation adopted by the Board, to make any improvements necessary to correct the violation.

      4.  Any money collected as administrative penalties pursuant to this section must be accounted for separately and used to protect the health or property of the persons for whom the intermediary service organization performs services in accordance with applicable federal standards.

      Sec. 14. NRS 449.4338 is hereby amended to read as follows:

      449.4338  1.  Except as otherwise provided in subsection 2 of NRS 449.431, the Division may bring an action in the name of the State to enjoin any person from operating or maintaining an intermediary service organization within the meaning of NRS 449.4304 to 449.4339, inclusive [:] , and section 3 of this act:

      (a) Without first obtaining a certificate to operate an intermediary service organization; or

      (b) After the person’s certificate has been revoked or suspended by the Division.

      2.  It is sufficient in such action to allege that the defendant did, on a certain date and in a certain place, operate and maintain the intermediary service organization without a certificate.

      Sec. 15. NRS 449.4339 is hereby amended to read as follows:

      449.4339  The district attorney of the county in which an intermediary service organization operates shall, upon application by the Division, institute and conduct the prosecution of any action for violation of any provision of NRS 449.4304 to 449.4339, inclusive [.] , and section 3 of this act.

      Sec. 16. NRS 630.024 is hereby amended to read as follows:

      630.024  1.  “Respiratory care” means the treatment, management, diagnostic testing, control and care of persons with deficiencies and abnormalities associated with the cardiopulmonary system. The term includes inhalation and respiratory therapy.

      2.  The term does not include any task performed in accordance with the regulations adopted by the State Board of Health pursuant to section 2 or 3 of this act.

      Sec. 17. NRS 652.074 is hereby amended to read as follows:

      652.074  The provisions of this chapter do not apply to any : [test or examination:]

      1.  [Conducted] Test or examination conducted by a law enforcement officer or agency; [or]

      2.  [Required] Test or examination required by a court as a part of or in addition to a program of treatment and rehabilitation pursuant to NRS 453.580 [.] ; or

 


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κ2017 Statutes of Nevada, Page 2312 (CHAPTER 373, SB 324)κ

 

      3.  Task performed in accordance with the regulations adopted by the Board pursuant to section 2 or 3 of this act.

      Sec. 18. NRS 654.190 is hereby amended to read as follows:

      654.190  1.  The Board may, after notice and an opportunity for a hearing as required by law, impose an administrative fine of not more than $10,000 for each violation on, recover reasonable investigative fees and costs incurred from, suspend, revoke, deny the issuance or renewal of or place conditions on the license of, and place on probation or impose any combination of the foregoing on any nursing facility administrator or administrator of a residential facility for groups who:

      (a) Is convicted of a felony relating to the practice of administering a nursing facility or residential facility or of any offense involving moral turpitude.

      (b) Has obtained his or her license by the use of fraud or deceit.

      (c) Violates any of the provisions of this chapter.

      (d) Aids or abets any person in the violation of any of the provisions of NRS 449.030 to 449.2428, inclusive, and section 2 of this act, as those provisions pertain to a facility for skilled nursing, facility for intermediate care or residential facility for groups.

      (e) Violates any regulation of the Board prescribing additional standards of conduct for nursing facility administrators or administrators of residential facilities for groups, including, without limitation, a code of ethics.

      (f) Engages in conduct that violates the trust of a patient or resident or exploits the relationship between the nursing facility administrator or administrator of a residential facility for groups and the patient or resident for the financial or other gain of the licensee.

      2.  If a licensee requests a hearing pursuant to subsection 1, the Board shall give the licensee written notice of a hearing pursuant to NRS 233B.121 and 241.034. A licensee may waive, in writing, his or her right to attend the hearing.

      3.  The Board may compel the attendance of witnesses or the production of documents or objects by subpoena. The Board may adopt regulations that set forth a procedure pursuant to which the Chair of the Board may issue subpoenas on behalf of the Board. Any person who is subpoenaed pursuant to this subsection may request the Board to modify the terms of the subpoena or grant additional time for compliance.

      4.  An order that imposes discipline and the findings of fact and conclusions of law supporting that order are public records.

      5.  The expiration of a license by operation of law or by order or decision of the Board or a court, or the voluntary surrender of a license, does not deprive the Board of jurisdiction to proceed with any investigation of, or action or disciplinary proceeding against, the licensee or to render a decision suspending or revoking the license.

      Sec. 19.  The provisions of subsection 1 of NRS 218D.380 do not apply to any provision of this act which adds or revises a requirement to submit a report to the Legislature.

      Sec. 20.  This act becomes effective upon passage and approval for the purpose of adopting regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act, and on January 1, 2018, for all other purposes.

________

 


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κ2017 Statutes of Nevada, Page 2313κ

 

CHAPTER 374, SB 194

Senate Bill No. 194–Senators Denis, Parks, Cancela, Atkinson, Manendo; Ford, Ratti and Segerblom

 

Joint Sponsors: Assemblymen Swank, Edwards, Frierson, Carrillo; Bilbray-Axelrod, Daly, Jauregui and Joiner

 

CHAPTER 374

 

[Approved: June 4, 2017]

 

AN ACT relating to trade practices; prohibiting the sale of products derived from or containing certain animal species under certain circumstances; providing a penalty; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      The Endangered Species Act of 1973 and the African Elephant Conservation Act restrict importation to, exportation from and trade throughout the United States of certain items made of or containing certain animal parts. (16 U.S.C. §§ 1531 et seq.; 16 U.S.C. §§ 4201 et seq.) Section 2 of this bill prohibits the purchase, sale or possession with intent to sell any item in this State that is, wholly or partially, made of an animal part or byproduct derived from a shark fin, a lion of the species Panthera leo or any species of elephant, rhinoceros, tiger, leopard, cheetah, jaguar, pangolin, sea turtle, ray, mammoth, narwhal, walrus or hippopotamus. Section 2 also designates the criminal and civil penalties to be imposed upon a person for violating these provisions. Section 3 of this bill exempts certain classes of sales from the provisions of section 2, including certain sales involving: (1) law enforcement; (2) antiques; (3) musical instruments; (4) knives and firearms; and (5) a scientific or educational institution. Section 3 also exempts sales of items specifically authorized for sale by federal law or sport-hunted items legally obtained in accordance with federal law.

 

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

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. Chapter 597 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.

      Sec. 2. 1.  Except as otherwise provided in section 3 of this act, a person shall not purchase, sell, offer for sale or possess with intent to sell any item that is, wholly or partially, made of an animal part or byproduct derived from a shark fin, a lion of the species Panthera leo or any species of elephant, rhinoceros, tiger, leopard, cheetah, jaguar, pangolin, sea turtle, ray, mammoth, narwhal, walrus or hippopotamus.

      2.  Any person who violates a provision of subsection 1:

      (a) For the first offense, is guilty of a gross misdemeanor;

      (b) For the second offense, is guilty of a category E felony and shall be punished as provided in NRS 193.130; and

      (c) For the third and any subsequent offense, is guilty of a category D felony and shall be punished as provided in NRS 193.130.

      3.  In addition to the criminal penalties set forth in this section, a person who violates a provision of this section, upon conviction, shall pay a civil penalty not to exceed $6,500 or an amount equal to four times the fair market value of the item which is the subject of the violation, whichever is greater.

 


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κ2017 Statutes of Nevada, Page 2314 (CHAPTER 374, SB 194)κ

 

civil penalty not to exceed $6,500 or an amount equal to four times the fair market value of the item which is the subject of the violation, whichever is greater.

      4.  As used in this section:

      (a) “Sale” or “sell” means any act of selling, trading or bartering, for monetary or nonmonetary consideration, and includes any transfer of ownership that occurs in the course of a commercial transaction, but does not include a nonmonetary transfer of ownership to a legal beneficiary of a trust or to a person by way of gift, donation, inheritance or bequest.

      (b) “Shark fin” means the fresh and uncooked, or cooked, frozen, dried or otherwise processed, detached fin or tail of a shark.

      Sec. 3. 1.  The provisions of section 2 of this act do not apply to:

      (a) Any activity undertaken by a law enforcement agency or officer pursuant to federal or state law.

      (b) An antique that contains a de minimis quantity of an animal part or byproduct derived from any species listed in subsection 1 of section 2 of this act, provided that the animal part or byproduct is a fixed component of the antique and the owner or seller of the antique establishes with documentation evidencing provenance of the antique that the antique is at least 100 years old.

      (c) A musical instrument, including, without limitation, piano, string instrument and bow, wind instrument and percussion instrument, that contains a de minimis quantity of an animal part or byproduct derived from any species listed in subsection 1 of section 2 of this act, provided that the owner or seller of the musical instrument:

             (1) Possesses any certification or permit required by federal law for the sale of the musical instrument; and

             (2) Establishes with documentation evidencing provenance that the musical instrument was legally acquired.

      (d) A knife or firearm, or a component thereof, that contains an animal part or byproduct derived from any species listed in subsection 1 of section 2 of this act if:

             (1) The animal part or byproduct:

                   (I) Is a fixed or integral part of the knife or firearm, or the component thereof; and

                   (II) Originated in or was legally imported to the United States; and

             (2) The owner or seller of the knife or firearm, or the component thereof, establishes with documentation evidencing provenance that the knife or firearm, or the component thereof, was legally acquired; and

             (3) All the requirements for the sale of the knife or firearm, or the component thereof, set forth in federal and state law are met.

      (e) Sales authorized by the Department of Business and Industry to a bona fide scientific or educational institution of an item that contains an animal part or byproduct derived from any species listed in subsection 1 of section 2 of this act, provided that the owner or seller of the item:

             (1) Possesses any certification or permit required by federal law for the sale of the item; and

             (2) Establishes with documentation evidencing provenance that the item was legally acquired.

      (f) Any item that contains an animal part or byproduct derived from any species listed in subsection 1 of section 2 of this act for which the owner or seller has obtained any certification or permit required by federal law for the sale of the item or that is specifically authorized for sale by federal law, provided that all the requirements for the sale of the item set forth in federal or state law have been met.

 


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κ2017 Statutes of Nevada, Page 2315 (CHAPTER 374, SB 194)κ

 

owner or seller has obtained any certification or permit required by federal law for the sale of the item or that is specifically authorized for sale by federal law, provided that all the requirements for the sale of the item set forth in federal or state law have been met.

      (g) Any sport-hunted item that is legally obtained in accordance with federal law.

      2.  As used in this section, “de minimis quantity” means:

      (a) Less than 20 percent of an item by volume;

      (b) Less than 200 grams in weight when examined as a separate component; and

      (c) Less than 20 percent of the fair market value of an item or of the actual price paid for the item, whichever is greater.

      Sec. 4.  This act becomes effective on January 1, 2018.

________

CHAPTER 375, SB 169

Senate Bill No. 169–Senator Harris

 

Joint Sponsor: Assemblyman Yeager

 

CHAPTER 375

 

[Approved: June 4, 2017]

 

AN ACT relating to crimes; prohibiting employees and contractors of and volunteers for certain entities from engaging in sexual conduct with children or young adults under the care, custody, control or supervision of the entity; revising provisions prohibiting certain employees of or volunteers at a public or private school from engaging in sexual conduct with certain pupils; revising provisions prohibiting certain employees of a college or university from engaging in sexual conduct with certain students; providing penalties; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law imposes criminal penalties on certain employees of or volunteers at a school who engage in sexual conduct with certain pupils. (NRS 201.540) Section 8 of this bill enacts similar provisions to impose criminal penalties on certain employees or contractors of and volunteers for certain entities who engage in sexual conduct with a child or young adult under the care, custody, control or supervision of the entity. Section 8 provides that a person is guilty of a category C felony if he or she: (1) is 25 years of age or older; (2) is in a position of authority as an employee or contractor of or volunteer for an agency which provides child welfare services, a department of juvenile justice services, foster home or the Youth Parole Bureau; and (3) engages in sexual conduct with a person who is 16 years of age or older but less than 18 years of age and who is under the care, custody, control or supervision of the agency, department or Bureau.

      Sections 2-7 of this bill expand the prohibition on the public disclosure of the identity of a victim of a sexual assault to include a victim of an offense involving sexual conduct between certain employees or contractors of or volunteers for an agency which provides child welfare services, a department of juvenile justice services or the Youth Parole Bureau and a person under the care, custody, control or supervision of the agency, department or Bureau.

 


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κ2017 Statutes of Nevada, Page 2316 (CHAPTER 375, SB 169)κ

 

      Existing law provides that a person is guilty of a category C felony if he or she: (1) is 21 years of age or older; (2) is or was employed by or is or was volunteering at a public or private school; and (3) engages in sexual conduct with a pupil who is 16 years of age or older and who is or was enrolled at or attending the school. (NRS 201.540) Section 8.3 of this bill: (1) provides that this crime applies only to an employee of or volunteer at a school who is in a position of authority; and (2) clarifies that the exemption from this crime for an employee or volunteer who is married to the pupil applies only if the employee or volunteer and the pupil are married at the time the prohibited act is committed.

      Similarly, existing law generally provides that a person is guilty of a category C felony if he or she: (1) is 21 years of age or older; (2) is employed in a position of authority by a college or university; and (3) engages in sexual conduct with a student who is 16 years of age or older, who has not received a high school diploma, a general educational development certificate or an equivalent document and who is enrolled at or attending the college or university. (NRS 201.550) Section 8.7 of this bill clarifies that the exemption from this crime for an employee who is married to the student applies only if the employee and the student are married at the time the prohibited act is committed.

 

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, 1.3 and 1.7. (Deleted by amendment.)

      Sec. 2. NRS 200.364 is hereby amended to read as follows:

      200.364  As used in NRS 200.364 to 200.3784, inclusive, unless the context otherwise requires:

      1.  “Offense involving a pupil [”] or child” means any of the following offenses:

      (a) Sexual conduct between certain employees of a school or volunteers at a school and a pupil pursuant to NRS 201.540.

      (b) Sexual conduct between certain employees of a college or university and a student pursuant to NRS 201.550.

      (c) Sexual conduct between certain employees or contractors of or volunteers for an entity which provides services to children and a person under the care, custody, control or supervision of the entity pursuant to section 8 of this act.

      2.  “Perpetrator” means a person who commits a sexual offense, an offense involving a pupil or child or sex trafficking.

      3.  “Sex trafficking” means a violation of subsection 2 of NRS 201.300.

      4.  “Sexual offense” means any of the following offenses:

      (a) Sexual assault pursuant to NRS 200.366.

      (b) Statutory sexual seduction pursuant to NRS 200.368.

      5.  “Sexual penetration” means cunnilingus, fellatio, or any intrusion, however slight, of any part of a person’s body or any object manipulated or inserted by a person into the genital or anal openings of the body of another, including sexual intercourse in its ordinary meaning. The term does not include any such conduct for medical purposes.

      6.  “Statutory sexual seduction” means ordinary sexual intercourse, anal intercourse or sexual penetration committed by a person 18 years of age or older with a person who is 14 or 15 years of age and who is at least 4 years younger than the perpetrator.

 


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      7.  “Victim” means a person who is a victim of a sexual offense, an offense involving a pupil or child or sex trafficking.

      Sec. 3. NRS 200.377 is hereby amended to read as follows:

      200.377  The Legislature finds and declares that:

      1.  This State has a compelling interest in assuring that the victim of a sexual offense, an offense involving a pupil or child or sex trafficking:

      (a) Reports the sexual offense, offense involving a pupil or child or sex trafficking to the appropriate authorities;

      (b) Cooperates in the investigation and prosecution of the sexual offense, offense involving a pupil or child or sex trafficking; and

      (c) Testifies at the criminal trial of the person charged with committing the sexual offense, offense involving a pupil or child or sex trafficking.

      2.  The fear of public identification and invasion of privacy are fundamental concerns for the victims of sexual offenses, offenses involving a pupil or child or sex trafficking. If these concerns are not addressed and the victims are left unprotected, the victims may refrain from reporting and prosecuting sexual offenses, offenses involving a pupil or child or sex trafficking.

      3.  A victim of a sexual offense, an offense involving a pupil or child or sex trafficking may be harassed, intimidated and psychologically harmed by a public report that identifies the victim. A sexual offense, an offense involving a pupil or child or sex trafficking is, in many ways, a unique, distinctive and intrusive personal trauma. The consequences of identification are often additional psychological trauma and the public disclosure of private personal experiences.

      4.  Recent public criminal trials have focused attention on these issues and have dramatized the need for basic protections for the victims of sexual offenses, offenses involving a pupil or child or sex trafficking.

      5.  The public has no overriding need to know the individual identity of the victim of a sexual offense, an offense involving a pupil or child or sex trafficking.

      6.  The purpose of NRS 200.3771 to 200.3774, inclusive, is to protect the victims of sexual offenses, offenses involving a pupil or child or sex trafficking from harassment, intimidation, psychological trauma and the unwarranted invasion of their privacy by prohibiting the disclosure of their identities to the public.

      Sec. 4. NRS 200.3771 is hereby amended to read as follows:

      200.3771  1.  Except as otherwise provided in this section, any information which is contained in:

      (a) Court records, including testimony from witnesses;

      (b) Intelligence or investigative data, reports of crime or incidents of criminal activity or other information;

      (c) Records of criminal history, as that term is defined in NRS 179A.070; and

      (d) Records in the Central Repository for Nevada Records of Criminal History,

Κ that reveals the identity of a victim of a sexual offense, an offense involving a pupil or child or sex trafficking is confidential, including but not limited to the victim’s photograph, likeness, name, address or telephone number.

      2.  A defendant charged with a sexual offense, an offense involving a pupil or child or sex trafficking and the defendant’s attorney are entitled to all identifying information concerning the victim in order to prepare the defense of the defendant.

 


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κ2017 Statutes of Nevada, Page 2318 (CHAPTER 375, SB 169)κ

 

all identifying information concerning the victim in order to prepare the defense of the defendant. The defendant and the defendant’s attorney shall not disclose this information except, as necessary, to those persons directly involved in the preparation of the defense.

      3.  A court of competent jurisdiction may authorize the release of the identifying information, upon application, if the court determines that:

      (a) The person making the application has demonstrated to the satisfaction of the court that good cause exists for the disclosure;

      (b) The disclosure will not place the victim at risk of personal harm; and

      (c) Reasonable notice of the application and an opportunity to be heard have been given to the victim.

      4.  Nothing in this section prohibits:

      (a) Any publication or broadcast by the media concerning a sexual offense, an offense involving a pupil or child or sex trafficking.

      (b) The disclosure of identifying information to any nonprofit organization or public agency whose purpose is to provide counseling, services for the management of crises or other assistance to the victims of crimes if:

             (1) The organization or agency needs identifying information of victims to offer such services; and

             (2) The court or a law enforcement agency approves the organization or agency for the receipt of the identifying information.

      5.  The willful violation of any provision of this section or the willful neglect or refusal to obey any court order made pursuant thereto is punishable as criminal contempt.

      Sec. 5. NRS 200.3772 is hereby amended to read as follows:

      200.3772  1.  A victim of a sexual offense, an offense involving a pupil or child or sex trafficking may choose a pseudonym to be used instead of the victim’s name on all files, records and documents pertaining to the sexual offense, offense involving a pupil or child or sex trafficking, including, without limitation, criminal intelligence and investigative reports, court records and media releases.

      2.  A victim who chooses to use a pseudonym shall file a form to choose a pseudonym with the law enforcement agency investigating the sexual offense, offense involving a pupil or child or sex trafficking. The form must be provided by the law enforcement agency.

      3.  If the victim files a form to use a pseudonym, as soon as practicable the law enforcement agency shall make a good faith effort to:

      (a) Substitute the pseudonym for the name of the victim on all reports, files and records in the agency’s possession; and

      (b) Notify the prosecuting attorney of the pseudonym.

Κ The law enforcement agency shall maintain the form in a manner that protects the confidentiality of the information contained therein.

      4.  Upon notification that a victim has elected to be designated by a pseudonym, the court shall ensure that the victim is designated by the pseudonym in all legal proceedings concerning the sexual offense, offense involving a pupil or child or sex trafficking.

      5.  The information contained on the form to choose a pseudonym concerning the actual identity of the victim is confidential and must not be disclosed to any person other than the defendant or the defendant’s attorney unless a court of competent jurisdiction orders the disclosure of the information. The disclosure of information to a defendant or the defendant’s attorney is subject to the conditions and restrictions specified in subsection 2 of NRS 200.3771.

 


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attorney is subject to the conditions and restrictions specified in subsection 2 of NRS 200.3771. A person who violates this subsection is guilty of a misdemeanor.

      6.  A court of competent jurisdiction may order the disclosure of the information contained on the form only if it finds that the information is essential in the trial of the defendant accused of the sexual offense, offense involving a pupil or child or sex trafficking, or the identity of the victim is at issue.

      7.  A law enforcement agency that complies with the requirements of this section is immune from civil liability for unknowingly or unintentionally:

      (a) Disclosing any information contained on the form filed by a victim pursuant to this section that reveals the identity of the victim; or

      (b) Failing to substitute the pseudonym of the victim for the name of the victim on all reports, files and records in the agency’s possession.

      Sec. 6. NRS 200.3773 is hereby amended to read as follows:

      200.3773  1.  A public officer or employee who has access to any records, files or other documents which include the photograph, likeness, name, address, telephone number or other fact or information that reveals the identity of a victim of a sexual offense, an offense involving a pupil or child or sex trafficking shall not intentionally or knowingly disclose the identifying information to any person other than:

      (a) The defendant or the defendant’s attorney;

      (b) A person who is directly involved in the investigation, prosecution or defense of the case;

      (c) A person specifically named in a court order issued pursuant to NRS 200.3771; or

      (d) A nonprofit organization or public agency approved to receive the information pursuant to NRS 200.3771.

      2.  A person who violates the provisions of subsection 1 is guilty of a misdemeanor.

      Sec. 7. NRS 200.3774 is hereby amended to read as follows:

      200.3774  The provisions of NRS 200.3771, 200.3772 and 200.3773 do not apply if the victim of the sexual offense, offense involving a pupil or child or sex trafficking voluntarily waives, in writing, the confidentiality of the information concerning the victim’s identity.

      Sec. 8. Chapter 201 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  Except as otherwise provided in subsection 2, a person who:

      (a) Is 25 years of age or older;

      (b) Is in a position of authority as an employee or contractor of or volunteer for an entity which provides services to children; and

      (c) Engages in sexual conduct with a person who is 16 years of age or older but less than 18 years of age and:

             (1) Who is under the care, custody, control or supervision of the entity at which the person is employed or volunteering or of which the person is a contractor; and

             (2) With whom the person has had contact in the course of performing his or her duties as an employee, contractor or volunteer,

Κ is guilty of a category C felony and shall be punished as provided in NRS 193.130.

 


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      2.  The provisions of this section do not apply to a person who is an employee or contractor of or volunteer for an entity which provides services to children and who is married to the person under the care, custody, control or supervision of the entity at the time an act prohibited by this section is committed.

      3.  A person convicted pursuant to this section is not subject to the registration or community notification requirements of chapter 179D of NRS.

      4.  As used in this section:

      (a) “Agency which provides child welfare services” has the meaning ascribed to it in NRS 432B.030.

      (b) “Department of juvenile justice services” means:

             (1) In a county whose population is less than 100,000, the probation department of the juvenile court established pursuant to NRS 62G.010 to 62G.070, inclusive;

             (2) In a county whose population is 100,000 or more but less than 700,000, the department of juvenile services established pursuant to NRS 62G.100 to 62G.170, inclusive; and

             (3) In a county whose population is 700,000 or more, the department of juvenile justice services established by ordinance pursuant to NRS 62G.210 or, if a department of juvenile justice services has not been established by ordinance pursuant to NRS 62G.210, the department of juvenile justice services established pursuant to NRS 62G.300 to 62G.370, inclusive.

      (c) “Entity which provides services to children” means:

             (1) An agency which provides child welfare services;

             (2) A department of juvenile justice services;

             (3) A foster home; or

             (4) The Youth Parole Bureau.

      (d) “Foster home” has the meaning ascribed to it in NRS 424.014.

      (e) “Youth Parole Bureau” has the meaning ascribed to it in NRS 62A.350.

      Sec. 8.3. NRS 201.540 is hereby amended to read as follows:

      201.540  1.  Except as otherwise provided in subsection 2, a person who:

      (a) Is 21 years of age or older;

      (b) Is or was employed by a public school or private school in a position of authority or is or was volunteering at a public or private school [;] in a position of authority; and

      (c) Engages in sexual conduct with a pupil who is 16 years of age or older, who has not received a high school diploma, a general educational development certificate or an equivalent document and:

 

 

 

 

 

 

 

 

 


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             (1) Who is or was enrolled in or attending the public school or private school at which the person is or was employed or volunteering; or

             (2) With whom the person has had contact in the course of performing his or her duties as an employee or volunteer,

Κ is guilty of a category C felony and shall be punished as provided in NRS 193.130.

      2.  The provisions of this section do not apply to a person who is married to the pupil [.] at the time an act prohibited by this section is committed.

      3.  The provisions of this section must not be construed to apply to sexual conduct between two pupils.

      Sec. 8.7. NRS 201.550 is hereby amended to read as follows:

      201.550  1.  Except as otherwise provided in subsection 3, a person who:

      (a) Is 21 years of age or older;

      (b) Is employed in a position of authority by a college or university; and

      (c) Engages in sexual conduct with a student who is 16 years of age or older, who has not received a high school diploma, a general educational development certificate or an equivalent document and who is enrolled in or attending the college or university at which the person is employed,

Κ is guilty of a category C felony and shall be punished as provided in NRS 193.130.

      2.  For the purposes of subsection 1, a person shall be deemed to be employed in a position of authority by a college or university if the person is employed as:

      (a) A teacher, instructor or professor;

      (b) An administrator; or

      (c) A head or assistant coach.

      3.  The provisions of this section do not apply to a person who is married to the student [.] at the time an act prohibited by this section is committed.

      4.  The provisions of this section must not be construed to apply to sexual conduct between two students.

      Secs. 9-23. (Deleted by amendment.)

      Sec. 24.  1.  This section and sections 1.7 and 21 to 23, inclusive, of this act become effective on July 1, 2017.

      2.  Sections 2 to 9, inclusive, and 11 to 20, inclusive, of this act become effective on October 1, 2017.

      3.  Sections 1.3 and 10 of this act become effective on January 1, 2020.

________

 

 


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κ2017 Statutes of Nevada, Page 2322κ

 

CHAPTER 376, AB 83

Assembly Bill No. 83–Committee on Commerce and Labor

 

CHAPTER 376

 

[Approved: June 5, 2017]

 

AN ACT relating to insurance; providing for administrative supervision of insurers and other entities by the Commissioner of Insurance; providing for the regulation of network plans; revising provisions relating to medical malpractice insurance, the general regulation of insurers, reinsurance, motor vehicle insurance, industrial insurance, health insurance in general, health benefit plans in general, funeral and burial services, individual health insurance, group and blanket health insurance, health insurance for small employers, service contracts, credit personal property insurance, nonprofit corporations for hospital, medical and dental service, health maintenance organizations, plans for dental care, prepaid limited health service organizations and managed care organizations; revising provisions relating to the confidentiality of certain documents and other information; revising various references to insurance agents and brokers; repealing various provisions governing summaries of coverage, loss prevention, disclosures of certain information, continuation of coverage and insurance requirements for prepaid limited health service organizations; providing a penalty; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law authorizes the Commissioner of Insurance to regulate insurance in this State. (NRS 679B.120) This bill adds to, revises and repeals various provisions of existing law, primarily in title 57 of NRS, relating to the regulation of insurance in this State.

      Sections 2-13 of this bill authorize the Commissioner to place an insurer under administrative supervision and set forth the requirements for such supervision. Section 6 authorizes the Commissioner to place an insurer under administrative supervision under specified circumstances, including, without limitation, when the insurer is in a hazardous financial condition, when the insurer appears to have exceeded its powers or if an insurer agrees to be placed under such supervision. Section 6 further provides for the duration of the administrative supervision and the release of the insurer from administrative supervision. Section 7 designates the Commissioner or an appointee thereof as the administrative supervisor of an insurer under administrative supervision, authorizes the Commissioner to limit the actions of such an insurer and lists various types of actions which the Commissioner may prohibit the insurer from taking without obtaining advance approval from the Commissioner or appointee. Sections 3 and 4 define, for the purposes of sections 2-13, the terms “Commissioner” and “insurer.” Both terms are currently defined for the purposes of existing law, but sections 3 and 4 provide more expansive definitions for the purposes of sections 2-13. (NRS 679A.060, 679A.100) Section 5 expressly makes sections 2-13 apply to insurers and other persons, including, without limitation, a person purporting to be an insurer, organizing to be an insurer or holding himself or herself out as organizing to be an insurer. Section 8 governs the use and confidentiality of information relating to the administrative supervision of an insurer. Section 9 establishes provisions governing the contesting or reviewing of decisions made by the Commissioner or an appointee thereof pursuant to sections 2-13. Section 10 ensures that the Commissioner may institute delinquency proceedings against an insurer without regard to whether the insurer is or was under administrative supervision.

 


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supervision. Section 11 authorizes the Commissioner, a designee of the Commissioner and an attorney or other persons to meet, for specified purposes, outside the presence of other persons. Section 12 authorizes the Commissioner to adopt regulations and to employ various persons to carry out the administrative supervision of an insurer. Section 12 further authorizes the Commissioner to require the insurer under administrative supervision to pay the compensation and expenses of the persons the Commissioner appoints and employs for the purposes of the administrative supervision. Section 13 provides that the Commissioner and his or her employees and agents are not liable for actions taken pursuant to sections 2-13.

      Section 14 of this bill revises the information the Commissioner is required to collect regarding closed claims for medical malpractice. (NRS 679B.144) Sections 117 and 118 remove the requirement to report certain information regarding closed claims for medical malpractice. (NRS 690B.250, 690B.260) Section 119 of this bill revises requirements concerning professional liability insurance for essential medical specialties. (NRS 690B.350) Section 120 of this bill revises requirements concerning information to be gathered and reports to be provided by the Commissioner concerning medical malpractice insurance. (NRS 690B.360)

      Sections 15, 21, 26, 27, 29-32, 164 and 165 of this bill replace various references to insurance agents, brokers and solicitors, which are undefined terms, with the term “producer of insurance,” which is defined as “a person required to be licensed under the laws of this state to sell, solicit or negotiate insurance.” (NRS 679A.117)

      Section 16 of this bill requires an insurer to which the Commissioner has issued a certificate of authority to notify the Commissioner of material changes to the information provided by the insurer to the Commissioner in the insurer’s application for a certificate of authority. Section 18 of this bill authorizes a life insurer or multiple lines insurer to issue life or health insurance policies under its own name and under additional titles. (NRS 680A.240)

      Existing law requires an authorized insurer annually to file with the Commissioner a full and true statement of the insurer’s financial condition, transactions and affairs as of the previous December 31 and makes confidential certain information submitted to the Division of Insurance of the Department of Business and Industry. (NRS 680A.270) Section 19 of this bill expands the confidentiality provision to include all work papers, documents and materials prepared for the purpose of submitting the statement or by or on behalf of the Division. Section 19 also authorizes the insurer to file, as an exhibit separate from the annual statement, specified disclosures of compensation paid to or on behalf of an insurer’s officers, directors or employees and makes such information confidential.

      Section 20 of this bill expands the applicability of the monetary penalty required to be imposed for a delay by an insurer in properly filing an annual statement. (NRS 680A.280) Section 24 of this bill narrows the definition of the term “managing general agent” to include the management of an underwriting office. (NRS 683A.060) Section 25 of this bill removes the willfulness requirement from one of the grounds for which the Commissioner may suspend or revoke the certificate of registration of an administrator and replaces it with a knowingly requirement. (NRS 683A.0892) Section 33 of this bill revises the duties of an insurer with regard to the use of information in a consumer credit report. (NRS 686A.680)

      Section 22 of this bill authorizes the Commissioner to adopt regulations governing certain arrangements for reinsurance, including, without limitation, the amounts and forms of security which must be held pursuant to those arrangements.

      Section 28 of this bill provides for the automatic suspension of the license of a motor vehicle physical damage appraiser if the appraiser does not file a replacement bond for a required surety bond in the event of the cancellation of the required surety bond. (NRS 684B.030) Section 86 of this bill revises provisions governing the cancellation, nonrenewal or increase in premiums for renewal of a policy of motor vehicle insurance as the result of the filing of certain claims. (NRS 687B.385)

      Section 35 of this bill defines the term “large-deductible agreement” as certain agreements in which the policyholder must bear the risk of loss of a specified amount of $25,000 or more per claim or occurrence covered under the policy of industrial insurance.

 


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κ2017 Statutes of Nevada, Page 2324 (CHAPTER 376, AB 83)κ

 

insurance. Section 38 of this bill requires full collateralization of the outstanding obligations owed under a large-deductible agreement and limits the size of the policyholder’s obligations under the large-deductible agreement. Section 39 of this bill generally prohibits an insurer from issuing or renewing a policy of industrial insurance which includes a large-deductible agreement if the insurer is in a hazardous financial condition. Section 37 of this bill limits the applicability of sections 38 and 39 to policies of industrial insurance with large-deductible agreements which are issued by insurers with both ratings below specified levels and surpluses below specified amounts. Section 37 further specifies that sections 38 and 39 only apply to policies of industrial insurance issued or renewed on or after January 1, 2018, and which are not issued to a governmental entity. Section 166 of this bill revises the definition of the term “tangible net worth” in relation to industrial insurance, specifically self-insured employers and associations of self-insured employers. (NRS 616A.330)

      Existing law provides for the Commissioner to consider each proposed increase or decrease in the rates of various kinds and lines of insurance. (NRS 686B.070) Section 36 of this bill creates new procedures for the Commissioner to consider each proposed increase or decrease in the rates of health plans for individual health insurance, group and blanket health insurance, health insurance for small employers, nonprofit corporations for hospital, medical and dental services, health maintenance organizations, plans for dental care and prepaid limited health service organizations. Section 44 of this bill clarifies that the existing procedures for considering a proposed increase or decrease do not apply to the insurers subject to the provisions of section 36. (NRS 686B.110)

      Sections 88 and 89 of this bill revise existing provisions relating to health benefit plans by specifying that the group market and small group market being considered in these provisions must be the “small employer” group market. (NRS 687B.490, 687B.500)

      Sections 51-85 of this bill establish provisions governing network plans. Section 60 defines a network plan as a health benefit plan offered or issued by a health carrier under which the financing and delivery of health care services are provided, in whole or in part, through a defined set of providers of health care under contract with the health carrier. Sections 52-59 and 61-64 define other terms for the regulation of network plans. Section 65 requires a health carrier to comply with and ensure that network plans and related contracts comply with sections 51-85. Sections 66, 71, 79, 81 and 84 require a health carrier to provide for notice to providers of health care concerning: (1) covered services; (2) the health carrier’s policies and programs; (3) the providers’ obligations to collect payments; (4) determinations of coverage; and (5) the inclusion of and status of a participating provider in the network plan. Sections 67, 68, 70, 74 and 77 require a contract between a provider of health care and a health carrier to contain provisions which: (1) prohibit the provider from collecting excess amounts from covered persons; (2) require the continuation of health care services in the event of cessation of the operations of the health carrier; (3) require that written notice be provided to a participating provider of health care in certain circumstances; (4) require the provider to make health care records available under certain circumstances; and (5) prohibit the assignment or delegation of rights under the contract. Section 69 provides that specified provisions in a contract between a provider of health care and a health carrier must be construed in favor of the covered person. Section 72 prohibits a health carrier from offering inducement to a provider of health care to provide health care services which are less than medically necessary. Section 73 requires that a health carrier allow a provider of health care to discuss all treatment options with a covered person and advocate for the covered person. Section 78 governs the furnishing of covered services to all covered persons. Section 80 prohibits a health carrier from penalizing a provider of health care who reports to state or federal authorities certain practices of the health carrier. Section 82 requires a health carrier to establish procedures for dispute resolution between a provider of health care and the health carrier. Section 83 prohibits a contract between a provider of health care and a health carrier from containing any provision which conflicts with the network plan or with any provision of sections 51-85.

 


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conflicts with the network plan or with any provision of sections 51-85. Section 85 authorizes the Commissioner to adopt regulations to carry out sections 51-85.

      Section 90 of this bill provides for the automatic suspension of the certificate of authority of a seller of prepaid contracts for funeral services if the seller does not file a replacement bond for a required surety bond in the event of the cancellation of the required surety bond. (NRS 689.185) Section 91 of this bill similarly provides for the automatic suspension of the permit of a seller of prepaid contracts for burial services if the seller does not file a replacement bond for a required surety bond in the event of the cancellation of the required surety bond. (NRS 689.495)

      Section 92 of this bill provides, with certain exceptions, that unified rate review templates and rate filing documentation of individual carriers are considered proprietary, constitute a trade secret and are not subject to disclosure by the Commissioner. Sections 98, 110, 112 and 114 of this bill remove the notice requirement regarding the discontinuance of a product: (1) of a health benefit plan; (2) of group health insurance; (3) offered to small employers; and (4) offered to small employers or purchasers through a voluntary purchasing group. (NRS 689A.630, 689B.560, 689C.310, 689C.470) Sections 109, 113 and 134 of this bill remove the requirement that certain policies of group health insurance, health benefit plans and group contracts for hospital, medical or dental services include a provision regarding the point at which an insured’s payment of coinsurance for a provider of health care who is not preferred is no longer required to be paid. (NRS 689B.061, 689C.350, 695B.185)

      Section 111 of this bill deletes provisions governing the determination of whether an employer is small or large, and the applicability of other provisions after an employer is deemed large. (NRS 689C.111)

      Sections 122-124 and 127-129 of this bill revise provisions relating to service contracts which are contracts pursuant to which a provider is obligated to the purchaser of the service contract to repair, replace or perform maintenance on, or indemnify or reimburse the purchaser for the costs of repairing, replacing or performing maintenance on, goods that are described in the service contract. (NRS 690C.080) Section 123 sets forth the qualifications of a controlling person for the purposes of determining the controlling person of a provider of service contracts. Section 127 adds to the requirements for a provider to apply for and obtain a certificate of registration to issue, sell or offer for sale service contracts, including providing certain personal and criminal history information about the controlling persons of the provider and verifying that the information in the application for a certificate of registration is accurate to the best of his or her knowledge. (NRS 690C.160) Section 124 prohibits a provider from transferring its liability under a service contract except under specified conditions, including, without limitation, obtaining the approval of the Commissioner. Section 128 revises the requirements governing the financial security which must be maintained by a provider, including, without limitation, expanded requirements concerning a reserve account. (NRS 690C.170) Section 129 revises provisions which govern the notice required by a provider which ceases to do business in this State. (NRS 690C.240)

      Section 130 of this bill deletes a requirement that the Commissioner is required to adopt regulations relating to reasonable rates for credit personal property insurance. (NRS 691C.340) However, section 130 retains express authority for the Commissioner to adopt regulations concerning rates for credit personal property insurance an insurer may use without making certain filings. Section 131 deletes a requirement that the Commissioner is required to adopt regulations relating to a refund of unearned premiums for credit personal property insurance. (NRS 691C.390)

      Sections 132 and 142 of this bill require nonprofit corporations for hospital, medical or dental service and health maintenance organizations to contract with an insurance company to provide insurance, indemnity or reimbursement against the cost of services provided and sets forth requirements relating to the payment of claims made to insureds or enrollees, as applicable, in the case of the insolvency or impairment of such corporation or organization.

 


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      Existing law sets forth provisions regarding the insolvency of nonprofit corporation for hospital, medical or dental service. (NRS 695B.150) Section 133 of this bill expands the requirements for determinations concerning the insolvency of such a corporation, adds provisions concerning the impairment of such a corporation and authorizes the Commissioner to adopt regulations concerning a determination that such a corporation is in a hazardous financial condition. Sections 143, 152 and 156 of this bill establish similar provisions for health maintenance organizations, organizations for dental care and prepaid limited health service organizations.

      Existing law clarifies that nonprofit hospital and medical or dental service corporations, health maintenance organizations, organizations for dental care and prepaid limited health service organizations are subject to certain other provisions of existing law. (NRS 695B.320, 695C.055, 695D.095, 695F.090) Sections 138, 147, 154 and 157 of this bill revise such provisions to include additional requirements for applicability. Section 144 of this bill requires each health maintenance organization to develop, submit to the Commissioner and put into effect a plan to provide for the continuation of benefits to enrollees in the event of the insolvency or impairment of the health maintenance organization. Section 145 of this bill authorizes the Commissioner to take certain actions regarding the operation of a health maintenance organization if the Commissioner determines that, because of the financial condition of the health maintenance organization, the continued operation of the health maintenance organization may be hazardous to its enrollees or creditors or to the general public. Section 146 of this bill addresses the conservation, rehabilitation and liquidation of health maintenance organizations. Section 149 of this bill revises provisions governing examinations of health maintenance organizations by the Commissioner or an examiner designated by the Commissioner. (NRS 695C.310)

      Section 153 of this bill requires an organization for dental care to maintain a capital account with a minimum net worth of not less than $500,000 unless a different amount is authorized by the Commissioner. Section 155 and 158 of this bill revise requirements for organizations for dental care and prepaid limited health service organizations to maintain surety bonds or deposits by increasing the amount of such bonds or deposits from $250,000 to $500,000 and authorizing the Commissioner to increase the amount of such bonds or deposits under certain circumstances. (NRS 695D.170, 695F.200) Section 158 also increases the minimum net worth a prepaid limited health service organization must maintain in a capital account from $200,000 to $500,000.

      Existing law requires a managed care organization to report annually to the Commissioner regarding its methods for reviewing the quality of health care services provided to its insureds. (NRS 695G.130) Section 159 of this bill changes the timeline for submitting such a report and requires that the report be submitted on a form prescribed by the Commissioner.

      Sections 103-106, 139, 140, 148, 160 and 161 of this bill remove the State Board of Health from the provisions governing systems for resolving complaints of insureds. (NRS 689A.745, 689A.750, 689B.0285, 389B.029, 695B.380, 695B.390, 695C.080, 695G.200, 695G.220)

      Section 168 repeals: (1) the requirement for certain insurers and the Commissioner to submit annual reports addressing loss prevention and control programs (NRS 680A.290, 690B.370); (2) the requirement for certain insurers to make certain disclosures (NRS 689A.390, 689A.400, 689A.690, 689B.027, 689B.028, 689C.270, 689C.280, 689C.440, 689C.450, 695B.172, 695B.174); and (3) the requirement for a prepaid limited health service organization to contract with an insurance company for certain purposes (NRS 695F.215).

      Sections 17, 23, 40-43, 45-49, 87, 93-97, 99-102, 107, 108, 115, 116, 125, 126, 135, 136, 150 and 163 of this bill make conforming changes.

 


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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 57 of NRS is hereby amended by adding thereto a new chapter to consist of the provisions set forth as sections 2 to 13, inclusive, of this act.

      Sec. 2. As used in this chapter, unless the context otherwise requires, the words and terms defined in sections 3 and 4 of this act have the meanings ascribed to them in those sections.

      Sec. 3. “Commissioner” means the Commissioner of Insurance and, if applicable:

      1.  A deputy of the Commissioner; or

      2.  The Division.

      Sec. 4. “Insurer” includes, without limitation:

      1.  A captive insurer that has been issued a certificate of authority pursuant to chapter 694C of NRS;

      2.  A fraternal benefit society that has been issued a certificate of authority pursuant to chapter 695A of NRS;

      3.  A health maintenance organization that has been issued a certificate of authority pursuant to chapter 695C of NRS;

      4.  A nonprofit corporation for hospital, medical or dental services that has been issued a certificate of authority pursuant to chapter 695B of NRS;

      5.  An organization for dental care that has been issued a certificate of authority pursuant to chapter 695D of NRS;

      6.  A prepaid limited health service organization that has been issued a certificate of authority pursuant to chapter 695F of NRS;

      7.  A risk retention group that has been issued a certificate of registration pursuant to chapter 695E of NRS;

      8.  Any person who is engaged as principal and as indemnitor, surety or contractor in the business of entering into contracts of insurance; and

      9.  Any person purporting to be an insurer listed in subsections 1 to 8, inclusive, or in the process of organizing, or holding himself or herself out as organizing, or proposing to organize in this State for the purpose of becoming an insurer listed in subsections 1 to 8, inclusive.

      Sec. 5. The provisions of this chapter apply to:

      1.  All domestic insurers;

      2.  Any foreign insurer doing business in this State regarding whom an applicable official of the foreign insurer’s state of domicile has requested that the Commissioner apply the provisions of this chapter to the foreign insurer;

      3.  All persons purporting to be an insurer, or in the process of organizing, or holding themselves out as organizing, or proposing to organize in this State for the purpose of becoming an insurer; and

      4.  All other persons to whom the provisions of this chapter are otherwise expressly made applicable by law.

 

 

 


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      Sec. 6. 1.  The Commissioner may place an insurer under administrative supervision if:

      (a) At any time, the Commissioner determines that:

             (1) The insurer is in a hazardous financial condition as set forth in regulations adopted pursuant to NRS 680A.205 or 695B.150 or section 143, 152 or 156 of this act or any other applicable provision of this title;

             (2) The insurer is in a hazardous financial condition pursuant to NRS 682A.510 or section 145 and 146 of this act or any other applicable provision of this title;

             (3) The continued operation of the insurer transacting business in this State may be hazardous to the insureds or creditors of the insurer or to the general public;

             (4) As described in subsection 5, the insurer appears to have exceeded its powers as granted by its license or certificate of authority, as applicable, or as granted by applicable law; or

             (5) The insurer is conducting its business fraudulently; or

      (b) The insurer agrees to be placed under administrative supervision.

      2.  If the Commissioner places an insurer under administrative supervision pursuant to subsection 1:

      (a) The Commissioner shall promptly notify the insurer that the insurer has been placed under administrative supervision, and include with that notice:

             (1) The determination, if any, made by the Commissioner pursuant to paragraph (a) of subsection 1;

             (2) A written list of the actions which the insurer must take to satisfy the Commissioner that the placement of the insurer under administrative supervision pursuant to subsection 1 is no longer appropriate;

             (3) The initial period of administrative supervision established pursuant to paragraph (b);

             (4) The actions, if any, identified by the Commissioner pursuant to subsection 2 of section 7 of this act; and

             (5) A statement that the provisions of this chapter govern the administrative supervision of the insurer.

      (b) Except as otherwise provided in this paragraph, the initial period of administrative supervision begins upon the insurer’s receipt of the notice described in paragraph (a) and ends 60 days after the date of the Commissioner’s determination pursuant to paragraph (a) of subsection 1 or the date of the insurer’s agreement pursuant to paragraph (b) of subsection 1, as applicable. The Commissioner may designate a different date for the end of the initial period of administrative supervision, if the Commissioner determines that a different date is appropriate and includes that date in the notice required by paragraph (a).

      3.  The insurer remains under administrative supervision pursuant to this section from the beginning of the initial period of administrative supervision established pursuant to paragraph (b) of subsection 2 until the date on which the insurer is released from administrative supervision by the Commissioner pursuant to paragraph (a) of subsection 4.

      4.  At the end of the initial period of supervision established pursuant to paragraph (b) of subsection 2 and at the end of any extended period of supervision established pursuant to paragraph (b) of this subsection, the Commissioner shall provide the insurer with notice and an opportunity for a hearing to determine whether the insurer has taken the actions specified pursuant to subparagraph (2) of paragraph (a) of subsection 2 to the satisfaction of the Commissioner.

 


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Commissioner shall provide the insurer with notice and an opportunity for a hearing to determine whether the insurer has taken the actions specified pursuant to subparagraph (2) of paragraph (a) of subsection 2 to the satisfaction of the Commissioner. If the Commissioner determines that the insurer:

      (a) Has taken such actions to the satisfaction of the Commissioner, the Commissioner shall release the insurer from administrative supervision; or

      (b) Has not taken such actions to the satisfaction of the Commissioner, the Commissioner shall designate an extended period of supervision during which the insurer remains under administrative supervision.

      5.  For the purposes of subparagraph (2) of paragraph (a) of subsection 1, an insurer shall be deemed to have exceeded its powers if the insurer:

      (a) Refused to permit the Commissioner, or an examiner authorized by the Commissioner, to examine its books, papers, accounts, records or affairs;

      (b) Is a domestic insurer and unlawfully removed from this State books, papers, accounts or records necessary for an examination of the insurer;

      (c) Failed or refused to promptly comply with any applicable statutes or regulations relating to financial reporting or any requests of the Commissioner relating thereto;

      (d) Failed or refused to comply with an order of the Commissioner to make good, within the time prescribed by law, any prohibited deficiency in its capital, capital stock or surplus;

      (e) Continued to transact insurance or write business in this State after its license or certificate of authority, as applicable, has been revoked or suspended by the Commissioner;

      (f) Unlawfully, in violation of an order of the Commissioner, or without first having obtained written approval of the Commissioner if written approval is required by law, and whether accomplished by contract or otherwise:

             (1) Completely reinsured its entire outstanding business; or

             (2) Merged or substantially consolidated its entire property or business with another insurer;

      (g) Engaged in any transaction in which it is not authorized to engage under the laws of this State; or

      (h) Otherwise failed or refused to comply with a lawful order of the Commissioner.

      Sec. 7. 1.  During the period an insurer is under administrative supervision pursuant to section 6 of this act, the Commissioner or an appointee designated by the Commissioner shall serve as the administrative supervisor of the insurer.

      2.  The Commissioner may identify any one or more actions specified in subsection 3 as actions which the insurer shall not take during the period the insurer remains under administrative supervision pursuant to section 6 of this act unless the insurer obtains approval in advance from the administrative supervisor designated pursuant to subsection 1.

      3.  If identified by the Commissioner pursuant to subsection 2, the insurer shall not, without obtaining approval in advance from the administrative supervisor:

 


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      (a) Dispose of, convey or encumber any of its assets or its business in force;

      (b) Withdraw money from any of its bank accounts;

      (c) Lend any of its money;

      (d) Invest any of its money;

      (e) Transfer any of its property;

      (f) Incur any debt, obligation or liability;

      (g) Merge or consolidate with another insurer or any other business entity as defined in NRS 682A.025;

      (h) Approve new premiums or renew any policies;

      (i) Enter into any new reinsurance contract or treaty;

      (j) Terminate, surrender, forfeit, convert or lapse any insurance policy, certificate or contract, except for nonpayment of premiums due;

      (k) Release, pay or refund premium deposits, accrued cash or loan values, unearned premiums or other reserves on any insurance policy, certificate or contract;

      (l) Make any material change in management; or

      (m) Increase any salary or benefit of an officer or director, increase the preferential payment of a bonus or dividend or increase any other payment deemed by the Commissioner to be preferential.

      Sec. 8. 1.  Notwithstanding any other provision of law and except as set forth in this section and NRS 239.0115, any proceedings and hearings, and any notices, correspondence, reports, records and other information in the possession of the Commissioner, relating to the administrative supervision of any insurer pursuant to this chapter are confidential by law and privileged, are not subject to subpoena, are not subject to discovery and are not admissible in evidence in any private civil action.

      2.  The Commissioner may use the information specified in subsection 1 in the furtherance of any regulatory or legal action brought as part of his or her official duties, including, without limitation, his or her duties as a receiver pursuant to chapter 696B of NRS.

      3.  Neither the Commissioner nor any other person who received access to any information specified in subsection 1 while acting under the authority of the Commissioner may be permitted or required to testify in any private civil action concerning the information.

      4.  In order to assist in the performance of the regulatory duties of the Commissioner, the Commissioner may:

      (a) Share the information specified in subsection 1 with:

             (1) Other state, federal and international regulatory agencies, including, without limitation, members of any supervisory college as defined in NRS 692C.359;

             (2) The National Association of Insurance Commissioners and its affiliates and subsidiaries;

             (3) Third party consultants designated by the Commissioner; and

             (4) State, federal and international law enforcement authorities, if the Commissioner determines that the disclosure is necessary or proper for the enforcement of the laws of this State or another state,

Κ provided that the recipient agrees to maintain the confidentiality of the applicable information specified in subsection 1. No waiver of any applicable privilege or claim of confidentiality occurs because of the sharing of information pursuant to this paragraph.

 


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      (b) Open any proceedings or hearings to the public or make public any other information specified in subsection 1 if the Commissioner determines that it is in the best interest of the public or in the best interest of the insurer, the insureds or creditors of the insurer, or the general public.

      Sec. 9. 1.  During the period an insurer is under administrative supervision pursuant to section 6 of this act, the insurer may contest any action taken or proposed to be taken by the administrative supervisor designated pursuant to subsection 1 of section 7 of this act on the ground that the action would not result in improving the condition of the insurer. To contest an action taken or proposed to be taken by the administrative supervisor, the insurer must submit a request for reconsideration to the administrative supervisor. If the administrative supervisor, upon reconsideration, denies the insurer’s request, the insurer may request a review of the decision of the administrative supervisor pursuant to NRS 679B.310 to 679B.370, inclusive.

      2.  Any action taken by the Commissioner pursuant to this chapter is subject to:

      (a) Review pursuant to NRS 679B.310 to 679B.370, inclusive, and any regulations adopted pursuant thereto; and

      (b) Judicial review pursuant to chapter 233B of NRS.

      Sec. 10. Nothing in this chapter shall be construed to limit the authority of the Commissioner to institute delinquency proceedings against an insurer pursuant to chapter 696B of NRS for the purpose of conserving, rehabilitating, reorganizing or liquidating the insurer, without regard to whether the Commissioner has currently or previously placed the insurer under administrative supervision pursuant to section 6 of this act.

      Sec. 11. Notwithstanding any other provision of law, at the time of any proceeding or during the pendency of any proceeding held pursuant to this chapter, the Commissioner may meet with an administrative supervisor designated by the Commissioner pursuant to subsection 1 of section 7 of this act, and with the attorney or other representative of the administrative supervisor designated pursuant to subsection 1 of section 7 of this act, without the presence of any other person:

      1.  To carry out the duties of the Commissioner under this chapter; or

      2.  To allow the administrative supervisor to carry out his or her duties under this chapter.

      Sec. 12. The Commissioner may:

      1.  Adopt any regulations necessary to carry out the purposes and provisions of this chapter;

      2.  In addition to an administrative supervisor designated by the Commissioner pursuant to subsection 1 of section 7 of this act, employ any other counsels, actuaries, clerks and assistants as the Commissioner deems necessary for the administrative supervision of an insurer; and

      3.  Require an insurer placed under administrative supervision to pay the compensation and expenses of the administrative supervisor designated by the Commissioner pursuant to subsection 1 of section 7 of this act and any other counsels, actuaries, clerks and assistants described in subsection 2.

      Sec. 13. There shall be no liability on the part of, and no cause of action of any nature against, the Commissioner or any employee or agent of the Commissioner, or an administrative supervisor designated pursuant to subsection 1 of section 7 of this act, for any action taken by them in the performance of their powers and duties under this chapter.

 


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to subsection 1 of section 7 of this act, for any action taken by them in the performance of their powers and duties under this chapter.

      Sec. 14. NRS 679B.144 is hereby amended to read as follows:

      679B.144  1.  The Commissioner shall collect and maintain the information provided by insurers pursuant to NRS 690B.260 regarding each closed claim for medical malpractice filed against a person who is covered by a policy of insurance for medical malpractice in this state, including, without limitation:

      (a) The cause of the loss;

      (b) A description of the injury for which the claim was filed;

      (c) The sex of the injured person;

      (d) The names and number of defendants in each claim;

      (e) The type of coverage provided;

      (f) [The amount of the initial, highest and last reserves of an insurer for each claim before final resolution of the claim by settlement or trial;

      (g)] The disposition of each claim;

      [(h)](g) The amount of money awarded through settlement or by verdict;

      [(i)](h) The sum of money paid to each claimant and the source of that sum;

      [(j)](i) Any sum of money allocated to expenses for the adjustment of losses; and

      [(k)](j) Any other information the Commissioner determines to be necessary or appropriate.

      2.  The Commissioner shall submit with the report to the Legislature required pursuant to NRS 679B.410 a summary of the information collected pursuant to this section.

      3.  The Commissioner [shall] may adopt regulations necessary to carry out the provisions of this section.

      4.  As used in this section, “policy of insurance for medical malpractice” means a policy that provides coverage for any medical professional liability of the insured under the policy.

      Sec. 15. NRS 679B.240 is hereby amended to read as follows:

      679B.240  To ascertain compliance with law, or relationships and transactions between any person and any insurer or proposed insurer, the Commissioner may, as often as he or she deems advisable, examine the accounts, records, documents and transactions relating to such compliance or relationships of:

      1.  Any producer of insurance , [agent,] solicitor, [broker,] surplus lines broker, general agent, adjuster, insurer representative, bail agent, motor club agent or any other licensee or any other person the Commissioner has reason to believe may be acting as or holding himself or herself out as any of the foregoing.

      2.  Any person having a contract under which the person enjoys in fact the exclusive or dominant right to manage or control an insurer.

      3.  Any insurance holding company or other person holding the shares of voting stock or the proxies of policyholders of a domestic insurer, to control the management thereof, as voting trustee or otherwise.

      4.  Any subsidiary of the insurer.

      5.  Any person engaged in this state in, or proposing to be engaged in this state in, or holding himself or herself out in this state as so engaging or proposing, or in this state assisting in, the promotion, formation or financing of an insurer or insurance holding corporation, or corporation or other group to finance an insurer or the production of its business.

 


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of an insurer or insurance holding corporation, or corporation or other group to finance an insurer or the production of its business.

      6.  Any independent review organization, as defined in NRS 695G.026.

      Sec. 16. Chapter 680A of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  Each insurer to which the Commissioner issues a certificate of authority shall notify the Commissioner of all material changes to the information provided by the insurer in its written application pursuant to NRS 680A.150, including, without limitation:

      (a) Any change of address, such as a change to:

             (1) The mailing address of the home office, or any other physical address, of the insurer; and

            (2) Any other mailing address of the insurer, including, without limitation, the address used for general correspondence or for annual renewal notices;

      (b) Any changes in the officers, directors or ownership of the insurer;

      (c) Any changes to the manner of service of legal process against the insurer; and

      (d) Any changes to the articles of incorporation, by-laws or power of attorney for the attorney-in-fact of the insurer.

      2.  The notice required by subsection 1 must be provided to the Commissioner within 30 days after the date on which the change occurs.

      3.  If an insurer changes its physical or mailing address without giving written notice and the Commissioner is unable to locate the insurer after diligent effort, the Commissioner may suspend or revoke the insurer’s certificate of authority without a hearing. The mailing of a letter by certified mail, return receipt requested, addressed to the insurer at its last mailing address appearing on the records of the Division, and the return of the letter undelivered, constitutes a diligent effort by the Commissioner. In lieu of such a suspension or revocation, the Commissioner may levy upon the insurer, and the insurer shall pay forthwith, an administrative fine of not more than $2,000 for each act or violation.

      Sec. 17. NRS 680A.095 is hereby amended to read as follows:

      680A.095  1.  Except as otherwise provided in subsection 3, an insurer which is not authorized to transact insurance in this State may not transact reinsurance with a domestic insurer in this State, by mail or otherwise, unless the insurer holds a certificate of authority as a reinsurer in accordance with the provisions of NRS 680A.010 to 680A.150, inclusive, 680A.160 to [680A.290,] 680A.280, inclusive, and section 16 of this act, 680A.320 and 680A.330.

      2.  To qualify for authority only to transact reinsurance, an insurer must meet the same requirements for capital and surplus as are imposed on an insurer which is authorized to transact insurance in this State.

      3.  This section does not apply to the joint reinsurance of title insurance risks or to reciprocal insurance authorized pursuant to chapter 694B of NRS.

      Sec. 18. NRS 680A.240 is hereby amended to read as follows:

      680A.240  1.  A property insurer or multiple line insurer authorized to transact insurance in Nevada shall have the right to issue property insurance policies under its own name and under additional “titles” or under additional “titles” duly registered by the insurer with the Commissioner.

      2.  A life insurer or multiple line insurer authorized to transact insurance in Nevada shall have the right to issue life or health insurance policies under its own name and under additional “titles” or under additional “titles” duly registered by the insurer with the Commissioner.

 


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policies under its own name and under additional “titles” or under additional “titles” duly registered by the insurer with the Commissioner.

      3.  The Commissioner shall, upon the insurer’s request, furnish to the insurer the form required for such registration, and the insurer shall pay the fee for registration as specified in NRS 680B.010 (fee schedule). Registered titles shall be shown on the insurer’s certificate of authority and shall remain in effect for so long as the insurer’s certificate of authority is in effect, subject to earlier termination of the registration at the insurer’s request.

      [3.]4.  All business transacted by the insurer under additional titles shall be included in business and transactions of the insurer to be shown by its annual statement filed with the Commissioner, for all purposes under this Code.

      Sec. 19. NRS 680A.270 is hereby amended to read as follows:

      680A.270  1.  Each authorized insurer shall annually on or before March 1, or within any reasonable extension of time therefor which the Commissioner for good cause may have granted on or before that date, file with the Commissioner a full and true statement of its financial condition, transactions and affairs as of December 31 preceding. The statement must be:

      (a) In the general form and context of, and require information as called for by, an annual statement as is currently in general and customary use in the United States for the type of insurer and kinds of insurance to be reported upon, with any useful or necessary modification or adaptation thereof, supplemented by additional information required by the Commissioner;

      (b) Prepared in accordance with:

             (1) The Annual Statement Instructions for the type of insurer to be reported on as adopted by the National Association of Insurance Commissioners for the year in which the insurer files the statement; and

             (2) The Accounting Practices and Procedures Manual adopted by the National Association of Insurance Commissioners and effective on January 1, 2001, and as amended by the National Association of Insurance Commissioners after that date; and

      (c) Verified by the oath of the insurer’s president or vice president and secretary or actuary, as applicable, or, in the absence of the foregoing, by two other principal officers, or if a reciprocal insurer, by the oath of the attorney-in-fact, or its like officers if a corporation.

      2.  The statement of an alien insurer must be verified by its United States manager or other officer who is authorized to do so, and may relate only to the insurer’s transactions and affairs in the United States unless the Commissioner requires otherwise. If the Commissioner requires a statement as to the insurer’s affairs throughout the world, the insurer shall file the statement with the Commissioner as soon as reasonably possible.

      3.  The Commissioner may refuse to continue, or may suspend or revoke, the certificate of authority of any insurer failing to file its annual statement when due.

      4.  At the time of filing, the insurer shall pay the fee for filing its annual statement as prescribed by NRS 680B.010.

      5.  The Commissioner may adopt regulations requiring each domestic, foreign and alien insurer which is authorized to transact insurance in this state to file the insurer’s annual statement with the National Association of Insurance Commissioners or its successor organization.

 


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      6.  Except as otherwise provided in NRS 239.0115, all [ratios of financial analyses and synopses of examinations concerning insurers that are submitted to the Division by the National Association of Insurance Commissioners’ Insurance Regulatory Information System] work papers, documents and materials prepared pursuant to this section by or on behalf of the Division are confidential and [may] must not be disclosed by the Division.

      7.  To the extent that the Annual Statement Instructions referenced in subparagraph (1) of paragraph (b) of subsection 1 require the disclosure of compensation paid to or on behalf of an insurer’s officers, directors or employees, the information may be filed with the Commissioner as an exhibit separate from the statement required by this section. Except as otherwise provided in NRS 239.0115, the compensation information described in this subsection is confidential and must not be disclosed by the Division.

      Sec. 20. NRS 680A.280 is hereby amended to read as follows:

      680A.280  1.  Any insurer failing, without just cause beyond the reasonable control of the insurer, to file [its] an annual statement as required in NRS 680A.265 and 680A.270 shall be required to pay a penalty of $100 for each day’s delay, but not to exceed $3,000 in aggregate amount, to be recovered in the name of the State of Nevada by the Attorney General.

      2.  Any director, officer, agent or employee of any insurer who subscribes to, makes or concurs in making or publishing, any annual or other statement required by law, knowing the same to contain any material statement which is false, is guilty of a gross misdemeanor.

      Sec. 21. NRS 680B.020 is hereby amended to read as follows:

      680B.020  1.  Notwithstanding the provisions of any general or special law, the possession of a license or certificate of authority issued under this Code shall be authorization to transact such business as indicated in such license or certificate of authority, and shall be in lieu of all licenses, whether for regulation or revenue, required to transact insurance business within the State of Nevada; but each city, town or county may require a license for revenue purposes only for any insurance [agent, broker,] analyst, adjuster or managing general agent or producer of insurance whose principal place of business is located within such city or town, or within the county outside the cities and towns of the county, respectively.

      2.  This section shall not be modified or repealed by any law of general application enacted after January 1, 1972, unless expressly referred to or expressly repealed therein.

      Sec. 22. Chapter 681A of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  The Commissioner may adopt regulations applicable to arrangements for reinsurance relating to:

      (a) Life insurance policies with guaranteed non-level gross premiums or guaranteed non-level benefits;

      (b) Universal life insurance policies with provisions resulting in the ability of a policyholder to keep a policy in force over a secondary guarantee period;

      (c) Variable annuities with guaranteed death or living benefits;

      (d) Policies for long-term care insurance; or

 


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      (e) Such other life and health insurance and annuity products as to which the National Association of Insurance Commissioners adopts model regulatory requirements with respect to credit for reinsurance.

      2.  A regulation adopted pursuant to this section may require the ceding insurer, in calculating the amounts or forms of security required to be held pursuant to regulations adopted pursuant to this section, to use the Valuation Manual, as defined in NRS 681B.0071, which is in effect on the date as of which the calculation is made, to the extent applicable.

      3.  A regulation adopted pursuant to this section must not apply to a cession to an assuming insurer that:

      (a) Is certified in this State or, if this State has not adopted regulations which provide for an assuming insurer to satisfy the requirements of NRS 681A.155 for credit to be allowed, certified in a minimum of five other states; or

      (b) Maintains at least $250,000,000 in capital and surplus when determined in accordance with the Accounting Practices and Procedures Manual adopted by the National Association of Insurance Commissioners, as amended, excluding the impact of any permitted or prescribed practices, and:

             (1) Is licensed in at least 26 states; or

             (2) Is licensed in at least 10 states, and licensed or accredited in at least 35 states.

      Sec. 23. NRS 681A.140 is hereby amended to read as follows:

      681A.140  As used in NRS 681A.140 to 681A.240, inclusive, and section 22 of this act, “qualified financial institution in the United States” means an institution that:

      1.  Is organized, or in the case of a branch or agency of a foreign banking organization in the United States licensed, under the laws of the United States or any state thereof and has been granted authority to operate with fiduciary powers;

      2.  Is regulated, supervised and examined by federal or state authorities having regulatory authority over banks and trust companies;

      3.  Is determined:

      (a) By the Commissioner to meet the standards of financial condition and standing prescribed by the Commissioner; or

      (b) By the National Association of Insurance Commissioners to meet the standards of financial condition and standing prescribed by the National Association of Insurance Commissioners; and

      4.  Is determined by the Commissioner to be otherwise acceptable.

      Sec. 24. NRS 683A.060 is hereby amended to read as follows:

      683A.060  1.  A “managing general agent” is a person who:

      (a) Negotiates and binds ceding reinsurance contracts on behalf of an insurer or manages all or part of the insurance business of an insurer, including the management of a separate division, department [of] or underwriting office; [or] and

      (b) Acts as an agent for the insurer and with or without the authority, either separately or together with affiliates:

             (1) Produces, directly or indirectly, and underwrites an amount of gross direct written premiums equal to or more than 5 percent of the policyholder surplus as reported in the last annual statement of the insurer in any one quarter or year; and

 


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             (2) Adjusts or pays claims in excess of an amount determined by the Commissioner or negotiates reinsurance on behalf of the insurer.

      2.  A managing general agent includes a person with authority to appoint and to terminate the appointment of an agent for an insurer.

      3.  For the purposes of this chapter, the following are not managing general agents:

      (a) An employee of the insurer;

      (b) A manager of the United States branch of an alien insurer;

      (c) An attorney authorized by and acting for the subscribers of a reciprocal insurer or interinsurance exchange; and

      (d) An underwriting manager who, pursuant to a contract, manages all or part of the insurance operations of the insurer, is under common control with the insurer, is subject to the provisions of chapter 692C of NRS and whose compensation is not based on the volume of premiums written or the profit of the business written.

      Sec. 25. NRS 683A.0892 is hereby amended to read as follows:

      683A.0892  1.  The Commissioner:

      (a) Shall suspend or revoke the certificate of registration of an administrator if the Commissioner has determined, after notice and a hearing, that the administrator:

             (1) Is in an unsound financial condition;

             (2) Uses methods or practices in the conduct of business that are hazardous or injurious to insured persons or members of the general public; or

             (3) Has failed to pay any judgment against the administrator in this State within 60 days after the judgment became final.

      (b) May suspend or revoke the certificate of registration of an administrator if the Commissioner determines, after notice and a hearing, that the administrator:

             (1) Has [willfully] knowingly violated or failed to comply with any provision of this Code, any regulation adopted pursuant to this Code or any order of the Commissioner;

             (2) Has refused to be examined by the Commissioner or has refused to produce accounts, records or files for examination upon the request of the Commissioner;

             (3) Has, without just cause, refused to pay claims or perform services pursuant to the administrator’s contracts or has, without just cause, caused persons to accept less than the amount of money owed to them pursuant to the contracts, or has caused persons to employ an attorney or bring a civil action against the administrator to receive full payment or settlement of claims;

             (4) Is affiliated with, managed by or owned by another administrator or an insurer who transacts insurance in this State without a certificate of authority or certificate of registration;

             (5) Fails to comply with any of the requirements for a certificate of registration;

             (6) Has been convicted of, or has entered a plea of guilty, guilty but mentally ill or nolo contendere to, a felony, whether or not adjudication was withheld;

             (7) Has had his or her authority to act as an administrator in another state limited, suspended or revoked; or

 


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             (8) Has failed to file an annual report in accordance with NRS 683A.08528.

      (c) May suspend or revoke the certificate of registration of an administrator if the Commissioner determines, after notice and a hearing, that a responsible person:

             (1) Has refused to provide any information relating to the administrator’s affairs or refused to perform any other legal obligation relating to an examination upon request by the Commissioner; or

             (2) Has been convicted of, or has entered a plea of guilty, guilty but mentally ill or nolo contendere to, a felony committed on or after October 1, 2003, whether or not adjudication was withheld.

      (d) May, upon notice to the administrator, suspend the certificate of registration of the administrator pending a hearing if:

             (1) The administrator is impaired or insolvent;

             (2) A proceeding for receivership, conservatorship or rehabilitation has been commenced against the administrator in any state; or

             (3) The financial condition or the business practices of the administrator represent an imminent threat to the public health, safety or welfare of the residents of this State.

      (e) May, in addition to or in lieu of the suspension or revocation of the certificate of registration of the administrator, impose a fine of $2,000 for each act or violation.

      2.  As used in this section, “responsible person” means any person who is responsible for or controls or is authorized to control or advise the affairs of an administrator, including, without limitation:

      (a) A member of the board of directors, board of trustees, executive committee or other governing board or committee of the administrator;

      (b) The president, vice president, chief executive officer, chief operating officer or any other principal officer of an administrator, if the administrator is a corporation;

      (c) A partner or member of the administrator, if the administrator is a partnership, association or limited-liability company; and

      (d) Any shareholder or member of the administrator who directly or indirectly holds 10 percent or more of the voting stock, voting securities or voting interest of the administrator.

      Sec. 26. NRS 683A.301 is hereby amended to read as follows:

      683A.301  1.  An applicant for a license as a producer of insurance or a licensee who desires to use a name other than his or her true name as shown on the license shall submit a request for approval of the name and file with the Commissioner a certified copy of the certificate or any renewal certificate filed pursuant to chapter 602 of NRS. An incorporated applicant or licensee shall file with the Commissioner a document showing the corporation’s true name and all fictitious names under which it conducts or intends to conduct business. A licensee shall file promptly with the Commissioner a written notice of any change in or discontinuance of the use of a fictitious name.

      2.  The Commissioner may disapprove in writing the use of a true name, other than the true name of a natural person who is the applicant or licensee, or a fictitious name of any applicant or licensee, on any of the following grounds:

      (a) The name interferes with or is deceptively similar to a name already filed and in use by another licensee.

 


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      (b) Use of the name may mislead the public in any respect.

      (c) The name states or implies that the applicant or licensee is an insurer, motor club or hospital service plan or is entitled to engage in activities related to insurance not permitted under the license applied for or held.

      (d) The name states or implies that the licensee is an underwriter, but:

             (1) A natural person licensed as [an agent or broker] a producer of insurance for life insurance may describe himself or herself as an underwriter or “chartered life underwriter” if entitled to do so;

             (2) A natural person licensed for property and casualty insurance may use the designation “chartered property and casualty underwriter” if entitled thereto; and

             (3) [An insurance agent or brokers’] A trade association for producers of insurance may use a name containing the word “underwriter.”

      (e) The licensee submits a request to use more than one fictitious name at a single business location.

      3.  A licensee shall not use a name after written notice from the Commissioner indicates that its use violates the provisions of this section. If the Commissioner determines that the use is justified by mitigating circumstances, the Commissioner may permit, in writing, the use of the name to continue for a specified reasonable period upon conditions imposed by the Commissioner for the protection of the public consistent with this section.

      4.  Paragraphs (a), (c) and (d) of subsection 2 do not apply to the true name of an organization which on July 1, 1965, held under that name a type of license similar to those governed by this chapter, or to a fictitious name used on July 1, 1965, by a natural person or organization holding such a license, if the fictitious name was filed with the Commissioner on or before July 1, 1965.

      Sec. 27. NRS 683C.020 is hereby amended to read as follows:

      683C.020  1.  Except as otherwise provided in subsection 2, no person may engage in the business of an insurance consultant unless a license has been issued to the person by the Commissioner.

      2.  An insurance consultant’s license is not required for:

      (a) An attorney licensed to practice law in this State who is acting in his or her professional capacity;

      (b) A licensed [insurance agent,] producer of insurance, broker or surplus lines broker;

      (c) A trust officer of a bank who is acting in the normal course of his or her employment; or

      (d) An actuary or a certified public accountant who provides information, recommendations, advice or services in his or her professional capacity.

      3.  A person required to be licensed in this State who acts as an insurance consultant without a license is subject to an administrative fine of not more than $1,000 for each act or violation.

      Sec. 28. NRS 684B.030 is hereby amended to read as follows:

      684B.030  1.  Before the issuance of a motor vehicle physical damage appraiser’s license the applicant shall file with the Commissioner, and thereafter maintain in force while so licensed, a surety bond in the amount of $2,500 in favor of the people of the State of Nevada, executed by an authorized surety insurer approved by the Commissioner, and conditioned for the faithful performance of required duties.

 


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      2.  The bond shall remain in force until the surety is released from liability by the Commissioner, or until cancelled by the surety. Without prejudice to any prior liability accrued, the surety may cancel the bond upon 30 days’ advance written notice filed with the Commissioner.

      3.  A motor vehicle physical damage appraiser’s license is automatically suspended if the appraiser does not file with the Commissioner a replacement bond before the date of cancellation of the previous bond. A replacement bond must meet all requirements of this section for the initial bond.

      Sec. 29. NRS 685A.150 is hereby amended to read as follows:

      685A.150  A licensed surplus lines broker may accept surplus lines business from any [agent or broker] producer of insurance licensed in this state for the kind of insurance involved and may compensate the [agent or broker] producer of insurance therefor.

      Sec. 30. NRS 686A.290 is hereby amended to read as follows:

      686A.290  1.  [An agent, broker, solicitor,] A producer of insurance, examining physician, applicant or other person shall not knowingly or willfully make any false or fraudulent statement or representation in or with reference to any application for insurance.

      2.  A person who violates this section is guilty of a category D felony and shall be punished as provided in NRS 193.130. In addition to any other penalty, the court shall order the person to pay restitution.

      Sec. 31.  NRS 686A.350 is hereby amended to read as follows:

      686A.350  1.  A license to engage in the business of a company is not required of any:

      (a) State or federally chartered building association or savings and loan association.

      (b) State or federally chartered bank.

      (c) State or federally chartered credit union.

      (d) Thrift company licensed pursuant to chapter 677 of NRS.

      (e) [Insurance agent] Producer of insurance financing his or her own accounts.

      (f) Insurer authorized to do business in this state financing its own policies or those of an affiliated company.

      (g) Business, in addition to those included in paragraphs (a) to (d), inclusive, which is licensed and regulated by the Division of Financial Institutions of the Department of Business and Industry.

      2.  The provisions of NRS 686A.330 to 686A.520, inclusive, other than those which concern licensing, apply to persons exempt from licensing pursuant to subsection 1.

      Sec. 32. NRS 686A.420 is hereby amended to read as follows:

      686A.420  1.  An agreement executed in this state must be dated and signed by the insured. The printed portion of the agreement must be in not less than 8-point type. The agreement must include:

      (a) The name and the address and telephone number of the business of the producer of insurance [agent] for the insurance contract to which the agreement relates;

      (b) The name and the address of the business or residence of the insured;

      (c) The name, address and telephone number of the company to which payments must be made;

      (d) A brief description of any insurance policy involved; and

      (e) Such other information as may be required by the Commissioner.

 


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      2.  An agreement must have at its top in type which is more prominent than the text of the agreement, the words “Agreement For Financing Premium” or words of similar meaning. An agreement must contain a notice in type which is more prominent than the text of the agreement which reads as follows:

 

       Notice:

       1.  Do not sign this agreement before you have read it or if it contains any blank spaces.

       2.  You are entitled to a copy of this agreement which is complete.

      Sec. 33. NRS 686A.680 is hereby amended to read as follows:

      686A.680  1.  An insurer that uses information from a consumer credit report shall not:

      [1.](a) Use an insurance score that is calculated using income, gender, address, zip code, ethnic group, religion, marital status or nationality of the consumer as a factor, or would otherwise lead to unfair or invidious discrimination.

      [2.](b) Deny, cancel or fail to renew a policy on the basis of credit information unless the insurer also considers other applicable underwriting factors that are independent of credit information and not expressly prohibited by this section.

      [3.](c) Base renewal rates for a policy upon credit information unless the insurer also considers other applicable factors independent of credit information.

      [4.](d) Take an adverse action against an applicant or policyholder based on the applicant or policyholder not having a credit card account unless the insurer also considers other applicable factors independent of credit information.

      [5.] (e) Consider an absence of credit information or an inability to calculate an insurance score in underwriting or rating a policy unless the insurer does any one of the following:

      [(a)] (1) Treats the applicant or policyholder as otherwise approved by the Commissioner, after the insurer presents to the Commissioner information indicating that such an absence or inability relates to the risk for the insurer.

      [(b)] (2) Treats the applicant or policyholder as if the applicant or policyholder had neutral credit information, as defined by the insurer.

      [(c)] (3) Excludes the use of credit information as a factor, and uses only underwriting criteria other than credit information.

      [6.](f) Take an adverse action against an applicant or policyholder based on credit information, unless an insurer obtains and uses a consumer credit report issued or an insurance score calculated within 90 days from the date the policy is first written or renewal is issued.

      [7.  Except as otherwise provided in this subsection, use credit information regarding a policyholder without obtaining an updated consumer credit report regarding the policyholder and recalculating the insurance score at least once every 36 months. At the time of the annual renewal of a policyholder’s policy, the insurer shall, upon the request of the policyholder or the policyholder’s agent, reunderwrite and rerate the policy based upon a current consumer credit report or insurance score. An insurer need not, at the request of a policyholder or the policyholder’s agent, recalculate the insurance score of or obtain an updated consumer credit report of the policyholder more frequently than once in any 12-month period.

 


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insurance score of or obtain an updated consumer credit report of the policyholder more frequently than once in any 12-month period. An insurer may, at its discretion, obtain an updated consumer credit report regarding a policyholder more frequently than once every 36 months, if to do so is consistent with the underwriting guidelines of the insurer. An insurer does not need to obtain an updated consumer credit report for a policyholder if any one of the following applies:

      (a) The insurer is treating the policyholder as otherwise approved by the Commissioner.

      (b) The policyholder is in the most favorably-priced tier of the insurer and all affiliates of the insurer. With respect to such a policyholder, the insurer may elect to obtain an updated consumer credit report if to do so is consistent with the underwriting guidelines of the insurer.

      (c) Credit information was not used for underwriting or rating the policyholder when the policy was initially written. The fact that credit information was not used initially does not preclude an insurer from using such information subsequently when underwriting or rating such a policyholder upon renewal, if to do so is consistent with the underwriting guidelines of the insurer.

      (d) The insurer reevaluates the policyholder at least once every 36 months based upon underwriting or rating factors other than credit information.

      8.](g) Use the following as a negative factor in any insurance scoring methodology or in reviewing credit information for the purpose of underwriting or rating a policy:

      [(a)] (1) Credit inquiries not initiated by the applicant or policyholder, or inquiries requested by the applicant or policyholder for his or her own credit information.

      [(b)] (2) Inquiries relating to insurance coverage, if so identified on the consumer credit report.

      [(c)] (3) Collection accounts relating to medical treatment, if so identified on the consumer credit report.

      [(d)] (4) Multiple lender inquiries, if identified on the consumer credit report as being related to home loans or mortgages and made within 30 days of one another, unless only one inquiry is considered.

      [(e)] (5) Multiple lender inquiries, if identified on the consumer credit report as being related to a loan for an automobile and made within 30 days of one another, unless only one inquiry is considered.

      2.  Except as otherwise provided in this subsection, at the time of the annual renewal of a policyholder’s policy, an insurer that uses information from a consumer credit report shall, upon the request of the policyholder or the policyholder’s agent, reunderwrite and rerate the policy based upon a current consumer credit report or insurance score. An insurer need not, at the request of a policyholder or the policyholder’s agent, recalculate the insurance score of or obtain an updated consumer credit report of the policyholder more frequently than once in any 12-month period.

      Sec. 34. Chapter 686B of NRS is hereby amended by adding thereto the provisions set forth as sections 35 to 39, inclusive, of this act.

      Sec. 35. “Large-deductible agreement” means any combination of one or more policies, endorsements, contracts or security arrangements, which provide for the policyholder to bear the risk of loss of a specified amount of $25,000 or more per claim or occurrence covered under a policy of industrial insurance and which may be subject to an aggregate limit of the policyholder’s reimbursement obligations.

 


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of industrial insurance and which may be subject to an aggregate limit of the policyholder’s reimbursement obligations.

      Sec. 36. 1.  The Commissioner shall consider each proposed increase or decrease in the rate of a health plan issued pursuant to the provisions of chapter 689A, 689B, 689C, 695B, 695C, 695D or 695F of NRS, including, without limitation, long-term care and Medicare supplement plans, filed with the Commissioner pursuant to subsection 1 of NRS 686B.070. If the Commissioner finds that a proposed increase will result in a rate which is not in compliance with NRS 686B.050 or subsection 3 of NRS 686B.070, the Commissioner shall disapprove the proposal. The Commissioner shall approve or disapprove each proposal not later than 60 days after the proposal is determined by the Commissioner to be complete pursuant to subsection 4. If the Commissioner fails to approve or disapprove the proposal within that period, the proposal shall be deemed approved.

      2.  Whenever an insurer has no legally effective rates as a result of the Commissioner’s disapproval of rates or other act, the Commissioner shall on request specify interim rates for the insurer that are high enough to protect the interests of all parties and may order that a specified portion of the premiums be placed in an escrow account approved by the Commissioner. When new rates become legally effective, the Commissioner shall order the escrowed funds or any overcharge in the interim rates to be distributed appropriately, except that refunds to policyholders that are de minimis must not be required.

      3.  If the Commissioner disapproves a proposed rate pursuant to subsection 1, and an insurer requests a hearing to determine the validity of the action of the Commissioner, the insurer has the burden of showing compliance with the applicable standards for rates established in NRS 686B.010 to 686B.1799, inclusive, and sections 35 to 39, inclusive, of this act. Any such hearing must be held:

      (a) Within 30 days after the request for a hearing has been submitted to the Commissioner; or

      (b) Within a period agreed upon by the insurer and the Commissioner.

Κ If the hearing is not held within the period specified in paragraph (a) or (b), or if the Commissioner fails to issue an order concerning the proposed rate for which the hearing is held within 45 days after the hearing, the proposed rate shall be deemed approved.

      4.  The Commissioner shall by regulation specify the documents or any other information which must be included in a proposal to increase or decrease a rate submitted to the Commissioner pursuant to subsection 1. Each such proposal shall be deemed complete upon its filing with the Commissioner, unless the Commissioner, within 15 business days after the proposal is filed with the Commissioner, determines that the proposal is incomplete because the proposal does not comply with the regulations adopted by the Commissioner pursuant to this subsection.

      Sec. 37. This section and sections 38 and 39 of this act apply to any policy of industrial insurance which:

      1.  Is issued by an insurer which:

      (a) Has a rating of less than “A-” from A.M. Best Company, Inc., or a substantially equivalent rating from another rating agency, as determined by the Commissioner; and

 


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      (b) Has less than $200,000,000 in surplus, with surplus calculated as the difference between the insurer’s net admitted assets and the insurer’s total liabilities;

      2.  Contains a large-deductible agreement;

      3.  Is not issued to a federal, state or local governmental entity; and

      4.  Is issued for delivery or renewed on or after January 1, 2018.

      Sec. 38. An insurer shall:

      1.  Require full collateralization of the outstanding obligations owed under a large-deductible agreement using one of the following methods:

      (a) A surety bond issued by a surety insurer authorized to transact such insurance in this State, and whose financial strength and size ratings from A.M. Best Company, Inc., are not less than “A” and “V,” respectively, or are substantially equivalent ratings from another rating agency, as determined by the Commissioner;

      (b) An irrevocable letter of credit issued by a financial institution with an office physically located within this State, and the deposits of which are federally insured; or

      (c) Cash or securities held in trust by a third party or the insurer and subject to a trust agreement for the express purpose of securing the policyholder’s obligation under a large-deductible agreement, provided that if the assets are held by the insurer, those assets may not be commingled with the insurer’s other assets; and

      2.  Limit the size of the policyholder’s obligations under a large-deductible agreement to 20 percent of the total net worth of the policyholder at the inception of the policy and again at each renewal, as determined by an audited financial statement as of the most recent fiscal year-end for which such a statement is available, with the total net worth of the policyholder calculated as the difference between the total assets and the total liabilities of the policyholder.

      Sec. 39. Except when otherwise specifically approved by the Commissioner in writing or by electronic communication, any insurer determined to be in a hazardous financial condition pursuant to NRS 680A.205, or the equivalent provisions of law in any other state as determined by the Commissioner, is prohibited from issuing or renewing a policy that includes a large-deductible agreement.

      Sec. 40. NRS 686B.010 is hereby amended to read as follows:

      686B.010  1.  The Legislature intends that NRS 686B.010 to 686B.1799, inclusive, and sections 35 to 39, inclusive, of this act be liberally construed to achieve the purposes stated in subsection 2, which constitute an aid and guide to interpretation but not an independent source of power.

      2.  The purposes of NRS 686B.010 to 686B.1799, inclusive, and sections 35 to 39, inclusive, of this act are to:

      (a) Protect policyholders and the public against the adverse effects of excessive, inadequate or unfairly discriminatory rates;

      (b) Encourage, as the most effective way to produce rates that conform to the standards of paragraph (a), independent action by and reasonable price competition among insurers;

      (c) Provide formal regulatory controls for use if independent action and price competition fail;

 


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      (d) Authorize cooperative action among insurers in the rate-making process, and to regulate such cooperation in order to prevent practices that tend to bring about monopoly or to lessen or destroy competition;

      (e) Encourage the most efficient and economic marketing practices; and

      (f) Regulate the business of insurance in a manner that will preclude application of federal antitrust laws.

      Sec. 41. NRS 686B.020 is hereby amended to read as follows:

      686B.020  As used in NRS 686B.010 to 686B.1799, inclusive, and sections 35 to 39, inclusive, of this act, unless the context otherwise requires:

      1.  “Advisory organization,” except as limited by NRS 686B.1752, means any person or organization which is controlled by or composed of two or more insurers and which engages in activities related to rate making. For the purposes of this subsection, two or more insurers with common ownership or operating in this State under common ownership constitute a single insurer. An advisory organization does not include:

      (a) A joint underwriting association;

      (b) An actuarial or legal consultant; or

      (c) An employee or manager of an insurer.

      2.  “Market segment” means any line or kind of insurance or, if it is described in general terms, any subdivision thereof or any class of risks or combination of classes.

      3.  “Rate service organization” means any person, other than an employee of an insurer, who assists insurers in rate making or filing by:

      (a) Collecting, compiling and furnishing loss or expense statistics;

      (b) Recommending, making or filing rates or supplementary rate information; or

      (c) Advising about rate questions, except as an attorney giving legal advice.

      4.  “Supplementary rate information” includes any manual or plan of rates, statistical plan, classification, rating schedule, minimum premium, policy fee, rating rule, rule of underwriting relating to rates and any other information prescribed by regulation of the Commissioner.

      Sec. 42. NRS 686B.030 is hereby amended to read as follows:

      686B.030  1.  Except as otherwise provided in subsection 2 and NRS 686B.125, the provisions of NRS 686B.010 to 686B.1799, inclusive, and sections 35 to 39, inclusive, of this act apply to all kinds and lines of direct insurance written on risks or operations in this State by any insurer authorized to do business in this State, except:

      (a) Ocean marine insurance;

      (b) Contracts issued by fraternal benefit societies;

      (c) Life insurance and credit life insurance;

      (d) Variable and fixed annuities;

      (e) Credit accident and health insurance;

      (f) Property insurance for business and commercial risks;

      (g) Casualty insurance for business and commercial risks other than insurance covering the liability of a practitioner licensed pursuant to chapters 630 to 640, inclusive, of NRS;

      (h) Surety insurance;

 

 


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      (i) Health insurance offered through a group health plan maintained by a large employer; and

      (j) Credit involuntary unemployment insurance.

      2.  The exclusions set forth in paragraphs (f) and (g) of subsection 1 extend only to issues related to the determination or approval of premium rates.

      Sec. 43. NRS 686B.040 is hereby amended to read as follows:

      686B.040  1.  Except as otherwise provided in subsection 2, the Commissioner may by rule exempt any person or class of persons or any market segment from any or all of the provisions of NRS 686B.010 to 686B.1799, inclusive, and sections 35 to 39, inclusive, of this act, if and to the extent that the Commissioner finds their application unnecessary to achieve the purposes of those sections.

      2.  The Commissioner may not, by rule or otherwise, exempt an insurer from the provisions of NRS 686B.010 to 686B.1799, inclusive, and sections 35 to 39, inclusive, of this act with regard to insurance covering the liability of a practitioner licensed pursuant to chapter 630, 631, 632 or 633 of NRS for a breach of the practitioner’s professional duty toward a patient.

      Sec. 44. NRS 686B.110 is hereby amended to read as follows:

      686B.110  1.  [The] Except as otherwise provided in section 36 of this act, the Commissioner shall consider each proposed increase or decrease in the rate of any kind or line of insurance or subdivision thereof filed with the Commissioner pursuant to subsection 1 of NRS 686B.070. If the Commissioner finds that a proposed increase will result in a rate which is not in compliance with NRS 686B.050 or subsection 3 of NRS 686B.070, the Commissioner shall disapprove the proposal. The Commissioner shall approve or disapprove each proposal no later than 30 days after it is determined by the Commissioner to be complete pursuant to subsection 6. If the Commissioner fails to approve or disapprove the proposal within that period, the proposal shall be deemed approved.

      2.  If the Commissioner disapproves a proposed increase or decrease in any rate pursuant to subsection 1, the Commissioner shall send a written notice of disapproval to the insurer or the rate service organization that filed the proposal. The notice must set forth the reasons the proposal is not in compliance with NRS 686B.050 or subsection 3 of NRS 686B.070 and must be sent to the insurer or the rate service organization not more than 30 days after the Commissioner determines that the proposal is complete pursuant to subsection 6.

      3.  Upon receipt of a written notice of disapproval from the Commissioner pursuant to subsection 2 or 6, the insurer or rate service organization may request that the Commissioner reconsider the proposed increase or decrease. The request for reconsideration must be received by the Commissioner not more than 30 days after the insurer or rate service organization receives the written notice of disapproval from the Commissioner, except that if the insurer or rate service organization requests, in writing, an extension of 30 additional days in which to request a reconsideration, the Commissioner shall grant the extension. A request for reconsideration submitted pursuant to this subsection may include, without limitation, any documents or other information for review by the Commissioner in reconsidering the proposal. The Commissioner shall approve or disapprove the proposal upon reconsideration not later than 30 days after receipt of the request for reconsideration and shall notify the insurer or rate service organization of his or her approval or disapproval.

 


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30 days after receipt of the request for reconsideration and shall notify the insurer or rate service organization of his or her approval or disapproval.

      4.  Whenever an insurer has no legally effective rates as a result of the Commissioner’s disapproval of rates or other act, the Commissioner shall on request specify interim rates for the insurer that are high enough to protect the interests of all parties and may order that a specified portion of the premiums be placed in an escrow account approved by the Commissioner. When new rates become legally effective, the Commissioner shall order the escrowed funds or any overcharge in the interim rates to be distributed appropriately, except that refunds to policyholders that are de minimis must not be required.

      5.  If the Commissioner disapproves a proposed rate pursuant to subsection 1 [,] or subsection 6 or upon reconsideration pursuant to subsection 3 , and an insurer requests a hearing to determine the validity of the action of the Commissioner, the insurer has the burden of showing compliance with the applicable standards for rates established in NRS 686B.010 to 686B.1799, inclusive [.] , and sections 35 to 39, inclusive, of this act. Any such hearing must be held:

      (a) Within 30 days after the request for a hearing has been submitted to the Commissioner; or

      (b) Within a period agreed upon by the insurer and the Commissioner.

Κ If the hearing is not held within the period specified in paragraph (a) or (b), or if the Commissioner fails to issue an order concerning the proposed rate for which the hearing is held within 45 days after the hearing, the proposed rate shall be deemed approved.

      6.  The Commissioner shall by regulation specify the documents or any other information which must be included in a proposal to increase or decrease a rate submitted to the Commissioner pursuant to subsection 1. Each such proposal shall be deemed complete upon its filing with the Commissioner, unless the Commissioner, within 15 business days after the proposal is filed with the Commissioner, determines that the proposal is incomplete because the proposal does not comply with the regulations adopted by the Commissioner pursuant to this subsection. The Commissioner shall notify the insurer or rate service organization if the Commissioner determines that the proposal is incomplete. The notice must be sent within 15 business days after the proposal is filed with the Commissioner and must set forth the documents or other information that is required to complete the proposal. The Commissioner may disapprove the proposal if the insurer or rate service organization fails to provide the documents or other information to the Commissioner within 30 days after the insurer or rate service organization receives the notice that the proposal is incomplete. If the Commissioner disapproves the proposal pursuant to this subsection, the Commissioner shall notify the insurer or rate service organization of that fact in writing.

      Sec. 45. NRS 686B.115 is hereby amended to read as follows:

      686B.115  1.  Any hearing held by the Commissioner to determine whether rates comply with the provisions of NRS 686B.010 to 686B.1799, inclusive, and sections 35 to 39, inclusive, of this act must be open to members of the public.

      2.  All costs for transcripts prepared pursuant to such a hearing must be paid by the insurer requesting the hearing.

 


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      3.  At any hearing which is held by the Commissioner to determine whether rates comply with the provisions of NRS 686B.010 to 686B.1799, inclusive, and sections 35 to 39, inclusive, of this act, and which involves rates for insurance covering the liability of a practitioner licensed pursuant to chapter 630, 631, 632 or 633 of NRS for a breach of the practitioner’s professional duty toward a patient, if a person is not otherwise authorized pursuant to this title to become a party to the hearing by intervention, the person is entitled to provide testimony at the hearing if, not later than 2 days before the date set for the hearing, the person files with the Commissioner a written statement which states:

      (a) The name and title of the person;

      (b) The interest of the person in the hearing; and

      (c) A brief summary describing the purpose of the testimony the person will offer at the hearing.

      4.  If a person provides testimony at a hearing in accordance with subsection 3:

      (a) The Commissioner may, if the Commissioner finds it necessary to preserve order, prevent inordinate delay or protect the rights of the parties at the hearing, place reasonable limitations on the duration of the testimony and prohibit the person from providing testimony that is not relevant to the issues raised at the hearing.

      (b) The Commissioner shall consider all relevant testimony provided by the person at the hearing in determining whether the rates comply with the provisions of NRS 686B.010 to 686B.1799, inclusive [.] , and sections 35 to 39, inclusive, of this act.

      Sec. 46. NRS 686B.1751 is hereby amended to read as follows:

      686B.1751  As used in NRS 686B.1751 to 686B.1799, inclusive, and sections 35, 37, 38 and 39 of this act, unless the context otherwise requires, the words and terms defined in NRS 686B.1752 to 686B.1762, inclusive, and section 35 of this act have the meanings ascribed to them in those sections.

      Sec. 47. NRS 686B.1763 is hereby amended to read as follows:

      686B.1763  1.  NRS 686B.1751 to 686B.1799, inclusive, and sections 35, 37, 38 and 39 of this act, apply to insurers providing industrial insurance and to the Advisory Organization designated by the Commissioner. The Commissioner shall administer the provisions of these sections.

      2.  These provisions apply to all industrial insurance issued in this state except reinsurance.

      Sec. 48. NRS 686B.1789 is hereby amended to read as follows:

      686B.1789  A hearing required by any of the provisions of NRS 686B.1751 to 686B.1799, inclusive, and sections 35, 37, 38 and 39 of this act, is governed by NRS 679B.310 to 679B.370, inclusive, except that any limits of time imposed by NRS 686B.1751 to 686B.1799, inclusive, and sections 35, 37, 38 and 39 of this act, control.

      Sec. 49. NRS 686B.1793 is hereby amended to read as follows:

      686B.1793  1.  An insurer or other person who violates any provision of NRS 686B.1751 to 686B.1799, inclusive, and sections 35, 37, 38 and 39 of this act, shall, upon the order of the Commissioner, pay an administrative fine not to exceed $1,000 for each violation and not to exceed $10,000 for each willful violation. These administrative fines are in addition to any other penalty provided by law. Any insurer using a rate before it has been filed with the Commissioner as required by NRS 686B.1775, shall be deemed to have committed a separate violation for each day the insurer failed to file the rate.

 


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with the Commissioner as required by NRS 686B.1775, shall be deemed to have committed a separate violation for each day the insurer failed to file the rate.

      2.  The Commissioner may suspend or revoke the license of any advisory organization or insurer who fails to comply with an order within the time specified by the Commissioner or any extension of that time made by the Commissioner. Any suspension of a license is effective for the time stated by the Commissioner in his or her order or until the order is modified, rescinded or reversed.

      3.  The Commissioner, by written order, may impose a penalty or suspend a license pursuant to this section only after written notice to the insurer, organization or plan for apportioned risks and a hearing.

      Sec. 50. Chapter 687B of NRS is hereby amended by adding thereto the provisions set forth as sections 51 to 85, inclusive, of this act.

      Sec. 51. As used in sections 51 to 85, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 52 to 64, inclusive, of this act have the meanings ascribed to them in those sections.

      Sec. 52. “Covered person” means a policyholder, subscriber, enrollee or other person participating in a network plan.

      Sec. 53. “Evidence of coverage” means any certificate, agreement or contract issued to a covered person by a health carrier setting forth the coverage to which the covered person is entitled pursuant to a network plan.

      Sec. 54. “Health benefit plan” has the meaning ascribed to it in NRS 695G.019.

      Sec. 55. “Health care services” has the meaning ascribed to it in NRS 695G.022.

      Sec. 56. “Health carrier” has the meaning ascribed to it in NRS 695G.024.

      Sec. 57. “Intermediary” means a person authorized to negotiate and execute a contract between a provider of health care and a health carrier entered into for the purposes of a network plan, whether the person acts on behalf of the provider of health care or the health carrier.

      Sec. 58. “Medically necessary” has the meaning ascribed to it in NRS 695G.055.

      Sec. 59. “Network” means a defined set of providers of health care who are under contract with a health carrier to provide health care services pursuant to a network plan offered or issued by the health carrier.

      Sec. 60. “Network plan” means a health benefit plan offered or issued by a health carrier under which the financing and delivery of health care services, including, without limitation, items and services paid for as health care services, are provided, in whole or in part, through a defined set of providers of health care under contract with the health carrier. The term does not include an arrangement for the financing of premiums.

      Sec. 61. “Participating provider of health care” means a provider of health care who, under a contract with a health carrier, has agreed to provide health care services to covered persons pursuant to a network plan with an expectation of receiving payment, other than coinsurance, copayments or deductibles, directly or indirectly from the health carrier.

 


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      Sec. 62. “Primary care physician” has the meaning ascribed to it in NRS 695G.060.

      Sec. 63. “Provider of health care” has the meaning ascribed to it in NRS 695G.070.

      Sec. 64. “Utilization review” has the meaning ascribed to it in NRS 695G.080.

      Sec. 65. If a health carrier offers or issues a network plan, the health carrier shall, with regard to that network plan:

      1.  Comply with all applicable requirements set forth in sections 51 to 85, inclusive, of this act;

      2.  As applicable, ensure that each contract entered into for the purposes of the network plan between a participating provider of health care and the health carrier complies with the requirements set forth in sections 51 to 85, inclusive, of this act; and

      3.  As applicable, ensure that the network plan complies with the requirements set forth in sections 51 to 85, inclusive, of this act.

      Sec. 66. A health carrier which offers or issues a network plan shall, with regard to that network plan, establish a mechanism by which each participating provider of health care in the network will be notified on an ongoing basis of the specific health care services which are covered by the network plan and for which the participating provider of health care will be responsible, including, without limitation, any restrictions or conditions on the health care services.

      Sec. 67. Each contract entered into for the purposes of a network plan between a participating provider of health care and the health carrier must include, without limitation, a provision which is substantially similar to the following:

 

Provider of health care agrees that in no event, including but not limited to, nonpayment by the health carrier or intermediary, insolvency of the health carrier or intermediary or breach of this agreement, shall the provider of health care bill, charge, collect a deposit from, seek compensation, remuneration or reimbursement from, or have any recourse against, a covered person or a person (other than the health carrier or intermediary) acting on behalf of the covered person for health care services provided pursuant to this agreement. This agreement does not prohibit the provider of health care from collecting coinsurance, deductibles or copayments, as specifically provided in the evidence of coverage, or fees for uncovered services delivered on a fee-for-service basis to covered persons. This agreement does not prohibit a provider of health care (except for a provider of health care who is employed full-time on the staff of the health carrier and has agreed to provide health care services exclusively to the health carrier’s covered persons and no others) and a covered person from agreeing to continue health care services solely at the expense of the covered person, as long as the provider of health care has clearly informed the covered person that the health carrier may not cover or continue to cover a specific health care service or health care services. Except as provided herein, this agreement does not prohibit the provider of health care from pursuing any available legal remedy.

 


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      Sec. 68. Each contract entered into for the purposes of a network plan between a participating provider of health care and the health carrier must provide that in the event of the insolvency of the health carrier or any applicable intermediary, or in the event of any other cessation of operations of the health carrier or intermediary, the participating provider of health care must continue to deliver health care services covered by the network plan to a covered person without billing the covered person for any amount other than coinsurance, deductibles or copayments, as specifically provided in the evidence of coverage, until the earlier of:

      1.  The date of the cancellation of the covered person’s coverage under the network plan pursuant to NRS 687B.310, including, without limitation, any extension of coverage provided pursuant to:

      (a) The terms of the contract between the covered person and the health carrier;

      (b) NRS 689A.04036, 689B.0303, 695B.1901, 695C.1691 and 695G.164, as applicable; or

      (c) Any applicable federal law for covered persons who are in an active course of treatment or totally disabled; or

      2.  The date on which the contract between the health carrier and the provider of health care would have terminated if the health carrier or intermediary, as applicable, had remained in operation, including, without limitation, any extension of coverage provided pursuant to:

      (a) The terms of the contract between the covered person and the health carrier;

      (b) NRS 689A.04036, 689B.0303, 695B.1901, 695C.1691 and 695G.164, as applicable; or

      (c) Any applicable federal law for covered persons who are in an active course of treatment or totally disabled.

      Sec. 69. The provisions included in a contract to comply with the requirements set forth in sections 67 and 68 of this act shall be construed in favor of the covered person, shall survive the termination of the contract regardless of the reason for the termination, including, without limitation, the insolvency of the health carrier or any applicable intermediary, and shall supersede any oral or written contrary agreement between a participating provider of health care and a covered person or the representative of a covered person if the contrary agreement is inconsistent with provisions included in the contract to comply with the requirements set forth in sections 67 and 68 of this act.

      Sec. 70. Each contract entered into for the purposes of a network plan between a participating provider of health care and the health carrier must provide that written notice must be provided to the participating provider of health care as soon as practicable in the event:

      1.  That a court determined the health carrier or any applicable intermediary to be insolvent; or

      2.  Of any other cessation of operations of the health carrier or any applicable intermediary.

      Sec. 71. A health carrier which offers or issues a network plan shall notify each participating provider of health care in the network of the responsibilities of the participating provider of health care with respect to any applicable administrative policies and programs of the health carrier including, without limitation, any applicable administrative policies and programs concerning:

 


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      1.  Terms of payment;

      2.  Utilization review;

      3.  Quality assessment and improvement;

      4.  Credentialing;

      5.  Procedures for grievances and appeals;

      6.  Requirements for data reporting;

      7.  Requirements for timely notice to the health carrier of changes in the practices of the participating provider of health care, such as discontinuance of accepting new patients;

      8.  Requirements for confidentiality; and

      9.  Any applicable federal or state programs.

      Sec. 72. A health carrier which offers or issues a network plan shall not offer an inducement to a participating provider of health care in the network that would encourage or otherwise incent the participating provider of health care to deliver health care services to a covered person which are less than those which are medically necessary.

      Sec. 73. A health carrier which offers or issues a network plan shall not prohibit a participating provider of health care in the network from:

      1.  Discussing any specific treatment option or all treatment options with a covered person irrespective of the position of the health carrier on the treatment options;

      2.  Advocating on behalf of a covered person within any utilization review process or any process for grievances or appeals established by the health carrier or a person contracting with the health carrier; or

      3.  Advocating on behalf of a covered person in accordance with any rights or remedies available under applicable state or federal law.

      Sec. 74. Each contract entered into for the purposes of a network plan between a participating provider of health care and the health carrier must require the participating provider of health care to make health records available to appropriate state and federal authorities involved in assessing the quality of care or investigating the grievances or complaints of covered persons, and to comply with the applicable state and federal laws related to the confidentiality of medical and health records and the covered person’s right to see, obtain copies of or amend their medical and health records.

      Secs. 75 and 76.  (Deleted by amendment.)

      Sec. 77.  Each contract entered into for the purposes of a network plan between a participating provider of health care and the health carrier must prohibit the health carrier and the participating provider of health care from assigning or delegating the rights and responsibilities of either party under the contract without the prior written consent of the other party.

      Sec. 78. 1.  A health carrier which offers or issues a network plan shall ensure that participating providers of health care in the network are responsible for furnishing covered services to all covered persons without regard to the participation of the covered person in the network plan as a private purchaser of the network plan or as a participant in a publicly financed program of health care services.

      2.  This section does not apply to circumstances when the participating provider of health care should not render services due to limitations arising from a lack of training, experience or skill or licensing restrictions.

 


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      Sec. 79. A health carrier which offers or issues a network plan shall notify the participating providers of health care in the network of his or her obligations, if any, to collect applicable coinsurance, copayments or deductibles from a covered person pursuant to the evidence of coverage, or of the obligations, if any, of the participating provider of health care to notify a covered person of the personal financial obligations of the covered person for health care services that are not covered.

      Sec. 80. A health carrier which offers or issues a network plan shall not penalize a participating provider of health care in the network because the participating provider of health care, in good faith, reports to state or federal authorities any act or practice by the health carrier that jeopardizes the health or welfare of a covered person.

      Sec. 81. A health carrier which offers or issues a network plan shall establish a mechanism by which a participating provider of health care in the network may, in a timely manner at the time health care services are to be provided, determine whether the person to whom the health care services are to be provided is a covered person or is within a grace period for the payment of a premium during which the health carrier may hold a claim for health care services pending receipt of the payment of the premium.

      Sec. 82. A health carrier which offers or issues a network plan shall establish procedures for the resolution of administrative, payment or other disputes between a participating provider of health care in the network and the health carrier.

      Sec. 83. 1.  A contract entered into for the purposes of a network plan between a participating provider of health care and the health carrier must not contain a provision that conflicts with any provision in the network plan or any requirement set forth in sections 51 to 85, inclusive, of this act.

      2.  At the time a participating provider of health care signs a contract described in subsection 1, the health carrier and, if applicable, the intermediary shall notify the participating provider of health care of all provisions of the contract and all documents incorporated by reference in the contract.

      3.  While a contract described in subsection 1 is in force, the health carrier shall provide timely notice to the participating provider of health care of any changes to the provisions of the contract or the documents incorporated by reference in the contract that would result in a material change in the contract.

      4.  For the purposes of subsection 3, the contract must define what is to be considered timely notice and what is to be considered a material change.

      Sec. 84. A health carrier which offers or issues a network plan shall inform a participating provider of health care with whom the health carrier has contracted for the purposes of the network plan of the status of the participating provider of health care as a provider of health care in the network plan and the status and inclusion of the participating provider of health care on any list of providers of health care maintained by the health carrier. The health carrier shall provide in a timely manner the information required by this section to the participating provider of health care:

 


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      1.  Upon the request of the participating provider of health care; and

      2.  Upon any change to the status or inclusion of the participating provider of health care as described in this section.

      Sec. 85. The Commissioner may adopt any regulations necessary to carry out the purposes and provisions of sections 51 to 85, inclusive, of this act.

      Sec. 86. NRS 687B.385 is hereby amended to read as follows:

      687B.385  An insurer shall not refuse to issue, cancel, refuse to renew or increase the premium for renewal of a policy of motor vehicle insurance covering private passenger cars or commercial vehicles as a result of any [claims] :

      1.  Claims made under [the] any policy of insurance with respect to which the insured was not at fault [.] ;

      2.  Claims made under any policy of insurance for which the insurer has not made any payment or for which the insurer recovered the entirety of the insurer’s payment on the claim by means of salvage, subrogation or another mechanism; or

      3.  Inquiries made regarding an actual or potential claim under any policy of insurance regarding:

      (a) The existence of insurance coverage for any matter; or

      (b) Any hypothetical or informational matter pertaining to insurance.

      Sec. 87. NRS 687B.470 is hereby amended to read as follows:

      687B.470  1.  [“Health] As used in NRS 687B.470 to 687B.500, inclusive, “health benefit plan” means a policy, contract, certificate or agreement offered by a carrier to provide for, deliver payment for, arrange for the payment of, pay for or reimburse any of the costs of health care services. Except as otherwise provided in this section, the term includes catastrophic health insurance policies and a policy that pays on a cost-incurred basis.

      2.  The term does not include:

      (a) Coverage that is only for accident or disability income insurance, or any combination thereof;

      (b) Coverage issued as a supplement to liability insurance;

      (c) Liability insurance, including general liability insurance and automobile liability insurance;

      (d) Workers’ compensation or similar insurance;

      (e) Coverage for medical payments under a policy of automobile insurance;

      (f) Credit insurance;

      (g) Coverage for on-site medical clinics;

      (h) Other similar insurance coverage specified pursuant to the Health Insurance Portability and Accountability Act of 1996, Public Law 104-191, under which benefits for medical care are secondary or incidental to other insurance benefits;

      (i) Coverage under a short-term health insurance policy; and

      (j) Coverage under a blanket student accident and health insurance policy.

      3.  The term does not include the following benefits if the benefits are provided under a separate policy, certificate or contract of insurance or are otherwise not an integral part of a health benefit plan:

 

 


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      (a) Limited-scope dental or vision benefits;

      (b) Benefits for long-term care, nursing home care, home health care or community-based care, or any combination thereof; and

      (c) Such other similar benefits as are specified in any federal regulations adopted pursuant to the Health Insurance Portability and Accountability Act of 1996, Public Law 104-191.

      4.  The term does not include the following benefits if the benefits are provided under a separate policy, certificate or contract, there is no coordination between the provisions of the benefits and any exclusion of benefits under any group health plan maintained by the same plan sponsor, and the benefits are paid for a claim without regard to whether benefits are provided for such a claim under any group health plan maintained by the same plan sponsor:

      (a) Coverage that is only for a specified disease or illness; and

      (b) Hospital indemnity or other fixed indemnity insurance.

      5.  The term does not include any of the following, if offered as a separate policy, certificate or contract of insurance:

      (a) Medicare supplemental health insurance as defined in section 1882(g)(1) of the Social Security Act, 42 U.S.C. § 1395ss, as that section existed on July 16, 1997;

      (b) Coverage supplemental to the coverage provided pursuant to the Civilian Health and Medical Program of Uniformed Services, CHAMPUS, 10 U.S.C. §§ 1071 et seq.; and

      (c) Similar supplemental coverage provided under a group health plan.

      Sec. 88. NRS 687B.490 is hereby amended to read as follows:

      687B.490  1.  A carrier that offers coverage in the small employer group or individual market must, before making any network plan available for sale in this State, demonstrate the capacity to deliver services adequately by applying to the Commissioner for the issuance of a network plan and submitting a description of the procedures and programs to be implemented to meet the requirements described in subsection 2.

      2.  The Commissioner shall determine, within 90 days after receipt of the application required pursuant to subsection 1, if the carrier, with respect to the network plan:

      (a) Has demonstrated the willingness and ability to ensure that health care services will be provided in a manner to ensure both availability and accessibility of adequate personnel and facilities in a manner that enhances availability, accessibility and continuity of service;

      (b) Has organizational arrangements established in accordance with regulations promulgated by the Commissioner; and

      (c) Has a procedure established in accordance with regulations promulgated by the Commissioner to develop, compile, evaluate and report statistics relating to the cost of its operations, the pattern of utilization of its services, the availability and accessibility of its services and such other matters as may be reasonably required by the Commissioner.

      3.  The Commissioner may certify that the carrier and the network plan meet the requirements of subsection 2, or may determine that the carrier and the network plan do not meet such requirements. Upon a determination that the carrier and the network plan do not meet the requirements of subsection 2, the Commissioner shall specify in what respects the carrier and the network plan are deficient.

 


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      4.  A carrier approved to issue a network plan pursuant to this section must file annually with the Commissioner a summary of information compiled pursuant to subsection 2 in a manner determined by the Commissioner.

      5.  The Commissioner shall, not less than once each year, or more often if deemed necessary by the Commissioner for the protection of the interests of the people of this State, make a determination concerning the availability and accessibility of the health care services of any network plan approved pursuant to this section.

      6.  The expense of any determination made by the Commissioner pursuant to this section must be assessed against the carrier and remitted to the Commissioner.

      7.  When making any determination concerning the availability and accessibility of the services of any network plan or proposed network plan pursuant to this section, the Commissioner shall consider services that may be provided through telehealth, as defined in NRS 629.515, pursuant to the network plan or proposed network plan to be available services.

      8.  As used in this section [, “network] :

      (a) “Network plan” has the meaning ascribed to it in NRS 689B.570.

      (b) “Small employer” has the meaning ascribed to it in NRS 689C.095.

      Sec. 89. NRS 687B.500 is hereby amended to read as follows:

      687B.500  1.  The premium rate charged by a health insurer for health benefit plans offered in the individual or small employer group market may vary with respect to the particular plan or coverage involved based solely on these characteristics:

      (a) Whether the plan or coverage applies to an individual or a family;

      (b) Geographic rating area;

      (c) Tobacco use, except that the rate shall not vary by a ratio of more than 1.5 to 1 for like individuals who vary in tobacco use; and

      (d) Age, except that the rate must not vary by a ratio of more than 3 to 1 for like individuals of different age who are age 21 years or older and that the variation in rate must be actuarially justified for individuals who are under the age of 21 years, consistent with the uniform age rating curve established in the Federal Act. For the purpose of identifying the appropriate age adjustment under this paragraph and the age band defined in the Federal Act to a specific enrollee, the enrollee’s age as of the date of policy issuance or renewal must be used.

      2.  The provisions of subsection 1:

      (a) Apply to a fraternal benefit society organized under chapter 695A of NRS; and

      (b) Do not apply to grandfathered plans.

      3.  As used in this section, “small employer” has the meaning ascribed to it in NRS 689C.095.

      Sec. 90. NRS 689.185 is hereby amended to read as follows:

      689.185  1.  Except as otherwise provided in subsection 2:

      (a) Before the issuance of a certificate of authority, the seller shall post with the Commissioner and thereafter maintain in force a bond in the principal sum of $50,000 issued by an authorized corporate surety in favor of the State of Nevada, or a deposit of cash or negotiable securities or a combination of cash and negotiable securities. If a deposit is made in lieu of a bond, the deposit must at all times have a market value of not less than the amount of the bond required by the Commissioner.

 


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a bond, the deposit must at all times have a market value of not less than the amount of the bond required by the Commissioner.

      (b) The bond or deposit must be held for the benefit of buyers of prepaid contracts, and other persons as their interests may appear, who may be damaged by misuse or diversion of money by the seller or the agents of the seller, or to satisfy any judgments against the seller for failure to perform a prepaid contract. The aggregate liability of the surety for all breaches of the conditions of the bond must not exceed the sum of the bond. The surety on the bond has the right to cancel the bond upon giving 30 days’ notice to the Commissioner and thereafter is relieved of liability for any breach of condition occurring after the effective date of the cancellation.

      (c) A certificate of authority issued to a seller is automatically suspended if the seller does not file with the Commissioner a replacement bond before the date of cancellation of the previous bond. A replacement bond must meet all requirements of this subsection for the initial bond.

      (d) The Commissioner shall release the bond or deposit after the seller has ceased doing business as such and the Commissioner is satisfied of the nonexistence of any obligation or liability of the seller for which the bond or deposit was held.

      2.  The Commissioner may waive the requirements of subsection 1 if the seller agrees:

      (a) To offer for sale only prepaid contracts that are payable solely from the proceeds of a policy of life insurance; and

      (b) Not to collect any money from the purchaser of a prepaid contract.

      Sec. 91. NRS 689.495 is hereby amended to read as follows:

      689.495  1.  Except as otherwise provided in subsection 2:

      (a) Before the issuance of a permit to a seller, the seller shall post with the Commissioner and thereafter maintain in force a bond in the principal sum of $50,000 issued by an authorized corporate surety in favor of the State of Nevada, or a deposit of cash or negotiable securities or a combination of cash and negotiable securities. If a deposit is made in lieu of a bond, the deposit must at all times have a market value not less than the amount of the bond required by the Commissioner.

      (b) The bond or deposit must be held for the benefit of buyers of prepaid contracts, and other persons as their interests may appear, who may be damaged by misuse or diversion of money by the seller or the agents of the seller, or to satisfy any judgments against the seller for failure to perform a prepaid contract. The aggregate liability of the surety for all breaches of the conditions of the bond must not exceed the sum of the bond. The surety on the bond has the right to cancel the bond upon giving 30 days’ notice to the Commissioner and thereafter is relieved of liability for any breach of condition occurring after the effective date of the cancellation.

      (c) A permit issued to a seller is automatically suspended if the seller does not file with the Commissioner a replacement bond before the date of cancellation of the previous bond. A replacement bond must meet all requirements of this subsection for the initial bond.

      (d) The Commissioner shall release the bond or deposit after the seller has ceased doing business as such and the Commissioner is satisfied of the nonexistence of any obligation or liability of the seller for which the bond or deposit was held.

      2.  The Commissioner may waive the requirements of subsection 1 if the seller agrees:

 


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      (a) To offer for sale only prepaid contracts that are payable solely from the proceeds of a policy of life insurance; and

      (b) Not to collect any money from the purchaser of a prepaid contract.

      Sec. 92. Chapter 689A of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  An individual carrier shall make the unified rate review template and rate filing documentation used by the individual carrier and any information and documents described in any regulations adopted pursuant to 689A.700 available to the Commissioner upon request. Except in cases of violations of the provisions of this chapter, the unified rate review template and rate filing documentation used by an individual carrier are considered proprietary, constitute a trade secret and are not subject to disclosure by the Commissioner to persons outside of the Division except as agreed to by the individual carrier or as ordered by a court of competent jurisdiction.

      2.  As used in this section, “rate filing documentation” and “unified rate review template” have the meanings ascribed to them in 45 C.F.R. § 154.215.

      Sec. 93. NRS 689A.020 is hereby amended to read as follows:

      689A.020  Nothing in this chapter applies to or affects:

      1.  Any policy of liability or workers’ compensation insurance with or without supplementary expense coverage therein.

      2.  Any group or blanket policy.

      3.  Life insurance, endowment or annuity contracts, or contracts supplemental thereto which contain only such provisions relating to health insurance as to:

      (a) Provide additional benefits in case of death or dismemberment or loss of sight by accident or accidental means; or

      (b) Operate to safeguard such contracts against lapse, or to give a special surrender value or special benefit or an annuity if the insured or annuitant becomes totally and permanently disabled, as defined by the contract or supplemental contract.

      4.  Reinsurance, except as otherwise provided in NRS 689A.470 to 689A.740, inclusive, and section 92 of this act, and 689C.610 to 689C.940, inclusive, relating to the program of reinsurance.

      Sec. 94.  NRS 689A.04033 is hereby amended to read as follows:

      689A.04033  1.  A policy of health insurance must provide coverage for medical treatment which a policyholder or subscriber receives as part of a clinical trial or study if:

      (a) The medical treatment is provided in a Phase I, Phase II, Phase III or Phase IV study or clinical trial for the treatment of cancer or in a Phase II, Phase III or Phase IV study or clinical trial for the treatment of chronic fatigue syndrome;

      (b) The clinical trial or study is approved by:

             (1) An agency of the National Institutes of Health as set forth in 42 U.S.C. § 281(b);

             (2) A cooperative group;

             (3) The Food and Drug Administration as an application for a new investigational drug;

             (4) The United States Department of Veterans Affairs; or

             (5) The United States Department of Defense;

      (c) In the case of:

 


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             (1) A Phase I clinical trial or study for the treatment of cancer, the medical treatment is provided at a facility authorized to conduct Phase I clinical trials or studies for the treatment of cancer; or

             (2) A Phase II, Phase III or Phase IV study or clinical trial for the treatment of cancer or chronic fatigue syndrome, the medical treatment is provided by a provider of health care and the facility and personnel for the clinical trial or study have the experience and training to provide the treatment in a capable manner;

      (d) There is no medical treatment available which is considered a more appropriate alternative medical treatment than the medical treatment provided in the clinical trial or study;

      (e) There is a reasonable expectation based on clinical data that the medical treatment provided in the clinical trial or study will be at least as effective as any other medical treatment;

      (f) The clinical trial or study is conducted in this State; and

      (g) The policyholder or subscriber has signed, before participating in the clinical trial or study, a statement of consent indicating that the policyholder or subscriber has been informed of, without limitation:

             (1) The procedure to be undertaken;

             (2) Alternative methods of treatment; and

             (3) The risks associated with participation in the clinical trial or study, including, without limitation, the general nature and extent of such risks.

      2.  Except as otherwise provided in subsection 3, the coverage for medical treatment required by this section is limited to:

      (a) Coverage for any drug or device that is approved for sale by the Food and Drug Administration without regard to whether the approved drug or device has been approved for use in the medical treatment of the policyholder or subscriber.

      (b) The cost of any reasonably necessary health care services that are required as a result of the medical treatment provided in a Phase II, Phase III or Phase IV clinical trial or study or as a result of any complication arising out of the medical treatment provided in a Phase II, Phase III or Phase IV clinical trial or study, to the extent that such health care services would otherwise be covered under the policy of health insurance.

      (c) The cost of any routine health care services that would otherwise be covered under the policy of health insurance for a policyholder or subscriber participating in a Phase I clinical trial or study.

      (d) The initial consultation to determine whether the policyholder or subscriber is eligible to participate in the clinical trial or study.

      (e) Health care services required for the clinically appropriate monitoring of the policyholder or subscriber during a Phase II, Phase III or Phase IV clinical trial or study.

      (f) Health care services which are required for the clinically appropriate monitoring of the policyholder or subscriber during a Phase I clinical trial or study and which are not directly related to the clinical trial or study.

Κ Except as otherwise provided in NRS 689A.04036, the services provided pursuant to paragraphs (b), (c), (e) and (f) must be covered only if the services are provided by a provider with whom the insurer has contracted for such services. If the insurer has not contracted for the provision of such services, the insurer shall pay the provider the rate of reimbursement that is paid to other providers with whom the insurer has contracted for similar services and the provider shall accept that rate of reimbursement as payment in full.

 


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paid to other providers with whom the insurer has contracted for similar services and the provider shall accept that rate of reimbursement as payment in full.

      3.  Particular medical treatment described in subsection 2 and provided to a policyholder or subscriber is not required to be covered pursuant to this section if that particular medical treatment is provided by the sponsor of the clinical trial or study free of charge to the policyholder or subscriber.

      4.  The coverage for medical treatment required by this section does not include:

      (a) Any portion of the clinical trial or study that is customarily paid for by a government or a biotechnical, pharmaceutical or medical industry.

      (b) Coverage for a drug or device described in paragraph (a) of subsection 2 which is paid for by the manufacturer, distributor or provider of the drug or device.

      (c) Health care services that are specifically excluded from coverage under the policyholder’s or subscriber’s policy of health insurance, regardless of whether such services are provided under the clinical trial or study.

      (d) Health care services that are customarily provided by the sponsors of the clinical trial or study free of charge to the participants in the trial or study.

      (e) Extraneous expenses related to participation in the clinical trial or study including, without limitation, travel, housing and other expenses that a participant may incur.

      (f) Any expenses incurred by a person who accompanies the policyholder or subscriber during the clinical trial or study.

      (g) Any item or service that is provided solely to satisfy a need or desire for data collection or analysis that is not directly related to the clinical management of the policyholder or subscriber.

      (h) Any costs for the management of research relating to the clinical trial or study.

      5.  An insurer who delivers or issues for delivery a policy of health insurance specified in subsection 1 may require copies of the approval or certification issued pursuant to paragraph (b) of subsection 1, the statement of consent signed by the policyholder or subscriber, protocols for the clinical trial or study and any other materials related to the scope of the clinical trial or study relevant to the coverage of medical treatment pursuant to this section.

      6.  An insurer who delivers or issues for delivery a policy specified in subsection 1 shall:

      (a) Include in [the] any disclosure [required pursuant to NRS 689A.390] of the coverage provided by the policy notice to each policyholder and subscriber under the policy of the availability of the benefits required by this section.

      (b) Provide the coverage required by this section subject to the same deductible, copayment, coinsurance and other such conditions for coverage that are required under the policy.

      7.  A policy of health insurance subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after January 1, 2006, has the legal effect of including the coverage required by this section, and any provision of the policy that conflicts with this section is void.

 


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      8.  An insurer who delivers or issues for delivery a policy specified in subsection 1 is immune from liability for:

      (a) Any injury to a policyholder or subscriber caused by:

             (1) Any medical treatment provided to the policyholder or subscriber in connection with his or her participation in a clinical trial or study described in this section; or

             (2) An act or omission by a provider of health care who provides medical treatment or supervises the provision of medical treatment to the policyholder or subscriber in connection with his or her participation in a clinical trial or study described in this section.

      (b) Any adverse or unanticipated outcome arising out of a policyholder’s or subscriber’s participation in a clinical trial or study described in this section.

      9.  As used in this section:

      (a) “Cooperative group” means a network of facilities that collaborate on research projects and has established a peer review program approved by the National Institutes of Health. The term includes:

             (1) The Clinical Trials Cooperative Group Program; and

             (2) The Community Clinical Oncology Program.

      (b) “Facility authorized to conduct Phase I clinical trials or studies for the treatment of cancer” means a facility or an affiliate of a facility that:

             (1) Has in place a Phase I program which permits only selective participation in the program and which uses clear-cut criteria to determine eligibility for participation in the program;

             (2) Operates a protocol review and monitoring system which conforms to the standards set forth in the “Policies and Guidelines Relating to the Cancer Center Support Grant” published by the Cancer Centers Branch of the National Cancer Institute;

             (3) Employs at least two researchers and at least one of those researchers receives funding from a federal grant;

             (4) Employs at least three clinical investigators who have experience working in Phase I clinical trials or studies conducted at a facility designated as a comprehensive cancer center by the National Cancer Institute;

             (5) Possesses specialized resources for use in Phase I clinical trials or studies, including, without limitation, equipment that facilitates research and analysis in proteomics, genomics and pharmacokinetics;

             (6) Is capable of gathering, maintaining and reporting electronic data; and

             (7) Is capable of responding to audits instituted by federal and state agencies.

      (c) “Provider of health care” means:

             (1) A hospital; or

             (2) A person licensed pursuant to chapter 630, 631 or 633 of NRS.

      Sec. 95. NRS 689A.0427 is hereby amended to read as follows:

      689A.0427  1.  No policy of health insurance that provides coverage for hospital, medical or surgical expenses may be delivered or issued for delivery in this state unless the policy includes coverage for the management and treatment of diabetes, including, without limitation, coverage for the self-management of diabetes.

      2.  An insurer who delivers or issues for delivery a policy specified in subsection 1:

 


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      (a) Shall include in [the] any disclosure [required pursuant to NRS 689A.390] of the coverage provided by the policy notice to each policyholder and subscriber under the policy of the availability of the benefits required by this section.

      (b) Shall provide the coverage required by this section subject to the same deductible, copayment, coinsurance and other such conditions for coverage that are required under the policy.

      3.  A policy of health insurance subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after January 1, 1998, has the legal effect of including the coverage required by this section, and any provision of the policy that conflicts with this section is void.

      4.  As used in this section:

      (a) “Coverage for the management and treatment of diabetes” includes coverage for medication, equipment, supplies and appliances that are medically necessary for the treatment of diabetes.

      (b) “Coverage for the self-management of diabetes” includes:

             (1) The training and education provided to an insured person after the insured person is initially diagnosed with diabetes which is medically necessary for the care and management of diabetes, including, without limitation, counseling in nutrition and the proper use of equipment and supplies for the treatment of diabetes;

             (2) Training and education which is medically necessary as a result of a subsequent diagnosis that indicates a significant change in the symptoms or condition of the insured person and which requires modification of the insured person’s program of self-management of diabetes; and

             (3) Training and education which is medically necessary because of the development of new techniques and treatment for diabetes.

      (c) “Diabetes” includes type I, type II and gestational diabetes.

      Sec. 96. NRS 689A.470 is hereby amended to read as follows:

      689A.470  As used in NRS 689A.470 to 689A.740, inclusive, and section 92 of this act, unless the context otherwise requires, the words and terms defined in NRS 689A.475 to 689A.600, inclusive, have the meanings ascribed to them in those sections.

      Sec. 97. NRS 689A.615 is hereby amended to read as follows:

      689A.615  For the purposes of NRS 689A.470 to 689A.740, inclusive [:] , and section 92 of this act:

      1.  Any plan, fund or program which would not be, but for section 2721(e) of the Public Health Service Act, as amended by Public Law 104-191, as that section existed on July 16, 1997, an employee welfare benefit plan and which is established or maintained by a partnership to the extent that the plan, fund or program provides medical care to current or former partners in the partnership or to their dependents, as defined under the terms of the plan, fund or program, directly or through insurance, reimbursement or otherwise, must be treated, subject to subsection 2, as an employee welfare benefit plan which is a group health plan.

      2.  In the case of a group health plan, a partnership shall be deemed to be the employer of each partner.

      Sec. 98. NRS 689A.630 is hereby amended to read as follows:

      689A.630  1.  Except as otherwise provided in this section, coverage under an individual health benefit plan must be renewed by the individual carrier that issued the plan, at the option of the individual, unless:

 


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      (a) The individual has failed to pay premiums or contributions in accordance with the terms of the health benefit plan or the individual carrier has not received timely premium payments.

      (b) The individual has performed an act or a practice that constitutes fraud or has made an intentional misrepresentation of material fact under the terms of the coverage.

      (c) The individual carrier decides to discontinue offering and renewing all health benefit plans delivered or issued for delivery in this state. If the individual carrier decides to discontinue offering and renewing such plans, the individual carrier shall:

             (1) Provide notice of its intention to the Commissioner and the chief regulatory officer for insurance in each state in which the individual carrier is licensed to transact insurance at least 60 days before the date on which notice of cancellation or nonrenewal is delivered or mailed to the persons covered by the insurance to be discontinued pursuant to subparagraph (2).

             (2) Provide notice of its intention to all persons covered by the discontinued insurance and to the Commissioner and the chief regulatory officer for insurance in each state in which such a person is known to reside. The notice must be made at least 180 days before the nonrenewal of any health benefit plan by the individual carrier.

             (3) Discontinue all health insurance issued or delivered for issuance for individuals in this state and not renew coverage under any health benefit plan issued to such individuals.

      (d) The Commissioner finds that the continuation of the coverage in this state by the individual carrier would not be in the best interests of the policyholders or certificate holders of the individual carrier or would impair the ability of the individual carrier to meet its contractual obligations. If the Commissioner makes such a finding, the Commissioner shall assist the persons covered by the discontinued insurance in this state in finding replacement coverage.

      2.  An individual carrier may discontinue [the issuance and renewal of a form of] a product [of a health benefit plan if the Commissioner finds that the form of the product offered by the individual carrier is obsolete and is being replaced with comparable coverage. A form of a product of a health benefit plan may be discontinued by the individual carrier] pursuant to this subsection only if:

      (a) The individual carrier notifies the Commissioner [and the chief regulatory officer for insurance in each state in which it is licensed] of its decision pursuant to this subsection to discontinue [the issuance and renewal of the form of] the product at least 60 days before the individual carrier notifies the persons covered by the discontinued [insurance] product pursuant to paragraph (b).

      (b) The individual carrier notifies each person covered by the discontinued [insurance, the Commissioner and the chief regulatory officer for insurance in each state in which a person covered by the discontinued insurance is known to reside] product of the decision of the individual carrier to discontinue offering [the form of] the product. The notice must be made to persons covered by the discontinued [insurance] product at least [180] 90 days before the date on which the individual carrier will discontinue offering [the form of] the product.

 

 


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      (c) The individual carrier offers to each person covered by the discontinued [insurance] product the option to purchase any other health benefit plan currently offered by the individual carrier to individuals in this state.

      (d) In exercising the option to discontinue [the form of] the product and in offering the option to purchase other coverage pursuant to paragraph (c), the individual carrier acts uniformly without regard to the claim experience of the persons covered by the discontinued [insurance] product or any health status-related factor relating to those persons or beneficiaries covered by the discontinued [form of the] product or any persons or beneficiaries who may become eligible for such coverage.

      3.  An individual carrier may discontinue the issuance and renewal of a health benefit plan that is made available to individuals pursuant to this chapter only through a bona fide association if:

      (a) The membership of the individual in the association was the basis for the provision of coverage;

      (b) The membership of the individual in the association ceases; and

      (c) The coverage is terminated pursuant to this subsection uniformly without regard to any health status-related factor relating to the covered individual.

      4.  An individual carrier that elects not to renew a health benefit plan pursuant to paragraph (c) of subsection 1 shall not write new business for individuals pursuant to this chapter for 5 years after the date on which notice is provided to the Commissioner pursuant to subparagraph (2) of paragraph (c) of subsection 1.

      5.  If an individual carrier does business in only one geographic service area of this state, the provisions of this section apply only to the operations of the individual carrier in that service area.

      Sec. 99. NRS 689A.700 is hereby amended to read as follows:

      689A.700  The Commissioner may adopt regulations [to carry out the provisions of this section and NRS 689A.690 and] to ensure that the practices used by individual carriers relating to the establishment of rates are consistent with the purposes of NRS 689A.470 to 689A.740, inclusive [.] , and section 92 of this act.

      Sec. 100. NRS 689A.715 is hereby amended to read as follows:

      689A.715  1.  An employee welfare benefit plan for providing benefits for employees of more than one employer under which individual health insurance coverage is provided must comply with the provisions of NRS 679B.139 and 689A.470 to 689A.740, inclusive, and section 92 of this act, and the regulations adopted by the Commissioner pursuant thereto.

      2.  As used in this section, the term “employee welfare benefit plan for providing benefits for employees of more than one employer” is intended to be equivalent to the term “employee welfare benefit plan which is a multiple employer welfare arrangement” as used in federal statutes and regulations.

      Sec. 101. NRS 689A.725 is hereby amended to read as follows:

      689A.725  For the purposes of NRS 689A.470 to 689A.740, inclusive, and section 92 of this act, a plan for coverage of a bona fide association must:

      1.  Conform with any regulations adopted pursuant to NRS [689A.690 and] 689A.700 concerning rates.

 


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      2.  Provide for the renewability of coverage for members of the bona fide association, and their dependents, if such coverage meets the criteria set forth in NRS 689A.630.

      Sec. 102. NRS 689A.740 is hereby amended to read as follows:

      689A.740  The Commissioner shall adopt regulations as necessary to carry out the provisions of NRS 689A.470 to 689A.740, inclusive [.] , and section 92 of this act.

      Sec. 103. NRS 689A.745 is hereby amended to read as follows:

      689A.745  1.  Except as otherwise provided in subsection 4, each insurer that issues a policy of health insurance in this State shall establish a system for resolving any complaints of an insured concerning health care services covered under the policy. The system must be approved by the Commissioner . [in consultation with the State Board of Health.]

      2.  A system for resolving complaints established pursuant to subsection 1 must include an initial investigation, a review of the complaint by a review board and a procedure for appealing a determination regarding the complaint. The majority of the members on a review board must be insureds who receive health care services pursuant to a policy of health insurance issued by the insurer.

      3.  The Commissioner [or the State Board of Health] may examine the system for resolving complaints established pursuant to subsection 1 at such times as [either] the Commissioner deems necessary or appropriate.

      4.  Each insurer that issues a policy of health insurance in this State that provides, delivers, arranges for, pays for or reimburses any cost of health care services through managed care shall provide a system for resolving any complaints of an insured concerning those health care services that complies with the provisions of NRS 695G.200 to 695G.310, inclusive.

      Sec. 104. NRS 689A.750 is hereby amended to read as follows:

      689A.750  1.  Each insurer that issues a policy of health insurance in this State shall submit to the Commissioner [and the State Board of Health] an annual report regarding its system for resolving complaints established pursuant to subsection 1 of NRS 689A.745 on a form prescribed by the Commissioner [in consultation with the State Board of Health] which includes, without limitation:

      (a) A description of the procedures used for resolving any complaints of an insured;

      (b) The total number of complaints and appeals handled through the system for resolving complaints since the last report and a compilation of the causes underlying the complaints filed;

      (c) The current status of each complaint and appeal filed; and

      (d) The average amount of time that was needed to resolve a complaint and an appeal, if any.

      2.  Each insurer shall maintain records of complaints filed with it which concern something other than health care services and shall submit to the Commissioner a report summarizing such complaints at such times and in such format as the Commissioner may require.

      Sec. 105. NRS 689B.0285 is hereby amended to read as follows:

      689B.0285  1.  Except as otherwise provided in subsection 4, each insurer that issues a policy of group health insurance in this State shall establish a system for resolving any complaints of an insured concerning health care services covered under the policy.

 


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health care services covered under the policy. The system must be approved by the Commissioner . [in consultation with the State Board of Health.]

      2.  A system for resolving complaints established pursuant to subsection 1 must include an initial investigation, a review of the complaint by a review board and a procedure for appealing a determination regarding the complaint. The majority of the members on a review board must be insureds who receive health care services pursuant to a policy of group health insurance issued by the insurer.

      3.  The Commissioner [or the State Board of Health] may examine the system for resolving complaints established pursuant to subsection 1 at such times as [either] the Commissioner deems necessary or appropriate.

      4.  Each insurer that issues a policy of group health insurance in this State that provides, delivers, arranges for, pays for or reimburses any cost of health care services through managed care shall provide a system for resolving any complaints of an insured concerning the health care services that complies with the provisions of NRS 695G.200 to 695G.310, inclusive.

      Sec. 106. NRS 689B.029 is hereby amended to read as follows:

      689B.029  1.  Each insurer that issues a policy of group health insurance in this State shall submit to the Commissioner [and the State Board of Health] an annual report regarding its system for resolving complaints established pursuant to subsection 1 of NRS 689B.0285 on a form prescribed by the Commissioner [in consultation with the State Board of Health] which includes, without limitation:

      (a) A description of the procedures used for resolving any complaints of an insured;

      (b) The total number of complaints and appeals handled through the system for resolving complaints since the last report and a compilation of the causes underlying the complaints filed;

      (c) The current status of each complaint and appeal filed; and

      (d) The average amount of time that was needed to resolve a complaint and an appeal, if any.

      2.  Each insurer shall maintain records of complaints filed with it which concern something other than health care services and shall submit to the Commissioner a report summarizing such complaints at such times and in such format as the Commissioner may require.

      Sec. 107. NRS 689B.0306 is hereby amended to read as follows:

      689B.0306  1.  A policy of group health insurance must provide coverage for medical treatment which a person insured under the group policy receives as part of a clinical trial or study if:

      (a) The medical treatment is provided in a Phase I, Phase II, Phase III or Phase IV study or clinical trial for the treatment of cancer or in a Phase II, Phase III or Phase IV study or clinical trial for the treatment of chronic fatigue syndrome;

      (b) The clinical trial or study is approved by:

             (1) An agency of the National Institutes of Health as set forth in 42 U.S.C. § 281(b);

             (2) A cooperative group;

             (3) The Food and Drug Administration as an application for a new investigational drug;

             (4) The United States Department of Veterans Affairs; or

             (5) The United States Department of Defense;

      (c) In the case of:

 


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             (1) A Phase I clinical trial or study for the treatment of cancer, the medical treatment is provided at a facility authorized to conduct Phase I clinical trials or studies for the treatment of cancer; or

             (2) A Phase II, Phase III or Phase IV study or clinical trial for the treatment of cancer or chronic fatigue syndrome, the medical treatment is provided by a provider of health care and the facility and personnel for the clinical trial or study have the experience and training to provide the treatment in a capable manner;

      (d) There is no medical treatment available which is considered a more appropriate alternative medical treatment than the medical treatment provided in the clinical trial or study;

      (e) There is a reasonable expectation based on clinical data that the medical treatment provided in the clinical trial or study will be at least as effective as any other medical treatment;

      (f) The clinical trial or study is conducted in this State; and

      (g) The insured has signed, before participating in the clinical trial or study, a statement of consent indicating that the insured has been informed of, without limitation:

             (1) The procedure to be undertaken;

             (2) Alternative methods of treatment; and

             (3) The risks associated with participation in the clinical trial or study, including, without limitation, the general nature and extent of such risks.

      2.  Except as otherwise provided in subsection 3, the coverage for medical treatment required by this section is limited to:

      (a) Coverage for any drug or device that is approved for sale by the Food and Drug Administration without regard to whether the approved drug or device has been approved for use in the medical treatment of the insured person.

      (b) The cost of any reasonably necessary health care services that are required as a result of the medical treatment provided in a Phase II, Phase III or Phase IV clinical trial or study or as a result of any complication arising out of the medical treatment provided in a Phase II, Phase III or Phase IV clinical trial or study, to the extent that such health care services would otherwise be covered under the policy of group health insurance.

      (c) The cost of any routine health care services that would otherwise be covered under the policy of group health insurance for an insured participating in a Phase I clinical trial or study.

      (d) The initial consultation to determine whether the insured is eligible to participate in the clinical trial or study.

      (e) Health care services required for the clinically appropriate monitoring of the insured during a Phase II, Phase III or Phase IV clinical trial or study.

      (f) Health care services which are required for the clinically appropriate monitoring of the insured during a Phase I clinical trial or study and which are not directly related to the clinical trial or study.

Κ Except as otherwise provided in NRS 689B.0303, the services provided pursuant to paragraphs (b), (c), (e) and (f) must be covered only if the services are provided by a provider with whom the insurer has contracted for such services. If the insurer has not contracted for the provision of such services, the insurer shall pay the provider the rate of reimbursement that is paid to other providers with whom the insurer has contracted for similar services and the provider shall accept that rate of reimbursement as payment in full.

 


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paid to other providers with whom the insurer has contracted for similar services and the provider shall accept that rate of reimbursement as payment in full.

      3.  Particular medical treatment described in subsection 2 and provided to a person insured under the group policy is not required to be covered pursuant to this section if that particular medical treatment is provided by the sponsor of the clinical trial or study free of charge to the person insured under the group policy.

      4.  The coverage for medical treatment required by this section does not include:

      (a) Any portion of the clinical trial or study that is customarily paid for by a government or a biotechnical, pharmaceutical or medical industry.

      (b) Coverage for a drug or device described in paragraph (a) of subsection 2 which is paid for by the manufacturer, distributor or provider of the drug or device.

      (c) Health care services that are specifically excluded from coverage under the insured’s policy of group health insurance, regardless of whether such services are provided under the clinical trial or study.

      (d) Health care services that are customarily provided by the sponsors of the clinical trial or study free of charge to the participants in the trial or study.

      (e) Extraneous expenses related to participation in the clinical trial or study including, without limitation, travel, housing and other expenses that a participant may incur.

      (f) Any expenses incurred by a person who accompanies the insured during the clinical trial or study.

      (g) Any item or service that is provided solely to satisfy a need or desire for data collection or analysis that is not directly related to the clinical management of the insured.

      (h) Any costs for the management of research relating to the clinical trial or study.

      5.  An insurer who delivers or issues for delivery a policy of group health insurance specified in subsection 1 may require copies of the approval or certification issued pursuant to paragraph (b) of subsection 1, the statement of consent signed by the insured, protocols for the clinical trial or study and any other materials related to the scope of the clinical trial or study relevant to the coverage of medical treatment pursuant to this section.

      6.  An insurer who delivers or issues for delivery a policy of group health insurance specified in subsection 1 shall:

      (a) Include in [the] any disclosure [required pursuant to NRS 689B.027] of the coverage provided by the policy notice to each group policyholder of the availability of the benefits required by this section.

      (b) Provide the coverage required by this section subject to the same deductible, copayment, coinsurance and other such conditions for coverage that are required under the policy.

      7.  A policy of group health insurance subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after January 1, 2006, has the legal effect of including the coverage required by this section, and any provision of the policy that conflicts with this section is void.

      8.  An insurer who delivers or issues for delivery a policy of group health insurance specified in subsection 1 is immune from liability for:

 


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      (a) Any injury to the insured caused by:

             (1) Any medical treatment provided to the insured in connection with his or her participation in a clinical trial or study described in this section; or

             (2) An act or omission by a provider of health care who provides medical treatment or supervises the provision of medical treatment to the insured in connection with his or her participation in a clinical trial or study described in this section.

      (b) Any adverse or unanticipated outcome arising out of an insured’s participation in a clinical trial or study described in this section.

      9.  As used in this section:

      (a) “Cooperative group” means a network of facilities that collaborate on research projects and has established a peer review program approved by the National Institutes of Health. The term includes:

             (1) The Clinical Trials Cooperative Group Program; and

             (2) The Community Clinical Oncology Program.

      (b) “Facility authorized to conduct Phase I clinical trials or studies for the treatment of cancer” means a facility or an affiliate of a facility that:

             (1) Has in place a Phase I program which permits only selective participation in the program and which uses clear-cut criteria to determine eligibility for participation in the program;

             (2) Operates a protocol review and monitoring system which conforms to the standards set forth in the “Policies and Guidelines Relating to the Cancer Center Support Grant” published by the Cancer Centers Branch of the National Cancer Institute;

             (3) Employs at least two researchers and at least one of those researchers receives funding from a federal grant;

             (4) Employs at least three clinical investigators who have experience working in Phase I clinical trials or studies conducted at a facility designated as a comprehensive cancer center by the National Cancer Institute;

             (5) Possesses specialized resources for use in Phase I clinical trials or studies, including, without limitation, equipment that facilitates research and analysis in proteomics, genomics and pharmacokinetics;

             (6) Is capable of gathering, maintaining and reporting electronic data; and

             (7) Is capable of responding to audits instituted by federal and state agencies.

      (c) “Provider of health care” means:

             (1) A hospital; or

             (2) A person licensed pursuant to chapter 630, 631 or 633 of NRS.

      Sec. 108. NRS 689B.0357 is hereby amended to read as follows:

      689B.0357  1.  No group policy of health insurance that provides coverage for hospital, medical or surgical expenses may be delivered or issued for delivery in this state unless the policy includes coverage for the management and treatment of diabetes, including, without limitation, coverage for the self-management of diabetes.

      2.  An insurer who delivers or issues for delivery a policy specified in subsection 1:

      (a) Shall include in [the] any disclosure [required pursuant to NRS 689B.027] of the coverage provided by the policy notice to each policyholder and subscriber under the policy of the availability of the benefits required by this section.

 


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      (b) Shall provide the coverage required by this section subject to the same deductible, copayment, coinsurance and other such conditions for coverage that are required under the policy.

      3.  A policy subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after January 1, 1998, has the legal effect of including the coverage required by this section, and any provision of the policy that conflicts with this section is void.

      4.  As used in this section:

      (a) “Coverage for the management and treatment of diabetes” includes coverage for medication, equipment, supplies and appliances that are medically necessary for the treatment of diabetes.

      (b) “Coverage for the self-management of diabetes” includes:

             (1) The training and education provided to the employee or member of the insured group after the employee or member is initially diagnosed with diabetes which is medically necessary for the care and management of diabetes, including, without limitation, counseling in nutrition and the proper use of equipment and supplies for the treatment of diabetes;

             (2) Training and education which is medically necessary as a result of a subsequent diagnosis that indicates a significant change in the symptoms or condition of the employee or member of the insured group and which requires modification of his or her program of self-management of diabetes; and

             (3) Training and education which is medically necessary because of the development of new techniques and treatment for diabetes.

      (c) “Diabetes” includes type I, type II and gestational diabetes.

      Sec. 109. NRS 689B.061 is hereby amended to read as follows:

      689B.061  A policy of group health insurance which offers a difference of payment between preferred providers of health care and providers of health care who are not preferred:

      1.  May not require an insured, another insurer who issues policies of group health insurance, a nonprofit medical service corporation or a health maintenance organization to pay any amount in excess of the deductible or coinsurance due from the insured based on the rates agreed upon with a provider.

      2.  Must require that the deductible and payment for coinsurance paid by the insured to a preferred provider of health care be applied to the negotiated reduced rates of that provider.

      3.  [Must include for providers of health care who are not preferred a provision establishing the point at which an insured’s payment for coinsurance is no longer required to be paid if such a provision is included for preferred providers of health care. Such provisions must be based on a calendar year. The point at which an insured’s payment for coinsurance is no longer required to be paid for providers of health care who are not preferred must not be greater than twice the amount for preferred providers of health care, regardless of the method of payment.

      4.]  Must provide that if there is a particular service which a preferred provider of health care does not provide and the provider of health care who is treating the insured requests the service and the insurer determines that the use of the service is necessary for the health of the insured, the service shall be deemed to be provided by the preferred provider of health care.

 


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      [5.]4.  Must require the insurer to process a claim of a provider of health care who is not preferred not later than 30 working days after the date on which proof of the claim is received.

      Sec. 110. NRS 689B.560 is hereby amended to read as follows:

      689B.560  1.  Except as otherwise provided in this section, coverage under a policy of group health insurance must be renewed by the carrier at the option of the plan sponsor, unless:

      (a) The plan sponsor has failed to pay premiums or contributions in accordance with the terms of the group health insurance or the carrier has not received timely premium payments;

      (b) The plan sponsor has performed an act or a practice that constitutes fraud or has made an intentional misrepresentation of material fact under the terms of the coverage;

      (c) The plan sponsor has failed to comply with any material provision of the group health insurance relating to employer contributions and group participation; or

      (d) The carrier decides to discontinue offering coverage under group health insurance. If the carrier decides to discontinue offering and renewing such insurance, the carrier shall:

             (1) Provide notice of its intention to the Commissioner and the chief regulatory officer for insurance in each state in which the carrier is licensed to transact insurance at least 60 days before the date on which notice of cancellation or nonrenewal is delivered or mailed to the persons covered by the discontinued insurance pursuant to subparagraph (2).

             (2) Provide notice of its intention to all persons covered by the discontinued insurance and to the Commissioner and the chief regulatory officer for insurance in each state in which such a person is known to reside. The notice must be made at least 180 days before the discontinuance of any group health plan by the carrier.

             (3) Discontinue all health insurance issued or delivered for issuance for persons in this state and not renew coverage under any group health insurance issued to such persons.

      2.  A carrier may discontinue [the issuance and renewal of a form of] a product [of group health insurance if the Commissioner finds that the form of the product] offered [by the carrier is obsolete and is being replaced with comparable coverage. A form of a product may be discontinued by the carrier] to employers pursuant to this subsection only if:

      (a) The carrier notifies the Commissioner [and the chief regulatory officer in each state in which it is licensed] of its decision pursuant to this subsection to discontinue [the issuance and renewal of the form of] the product at least 60 days before the [individual] carrier notifies the affected employers and persons covered [by the discontinued insurance] pursuant to paragraph (b).

      (b) The carrier notifies each affected employer and person covered [by the discontinued insurance and the Commissioner and the chief regulatory officer in each state in which such a person is known to reside] of the decision of the carrier to discontinue [offering the form of] the product. The notice must be made at least [180] 90 days before the date on which the carrier will discontinue offering [the form of] the product.

      (c) The carrier offers to each [person covered by the discontinued insurance] affected employer the option to purchase any other health benefit plan currently offered by the carrier to [large] groups in this state.

 


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      (d) In exercising the option to discontinue [the form of] the product and in offering the option to purchase other coverage pursuant to paragraph (c), the carrier acts uniformly without regard to the claim experience of the persons covered by the discontinued [insurance] product or any health status-related factor relating to those persons or beneficiaries covered by the discontinued [form of the] product or any person or beneficiary who may become eligible for such coverage.

      3.  A carrier may discontinue the issuance and renewal of any type of group health insurance offered by the carrier in this state that is made available pursuant to this chapter only to a member of a bona fide association if:

      (a) The membership of the person in the bona fide association was the basis for the provision of coverage under the group health insurance;

      (b) The membership of the person in the bona fide association ceases; and

      (c) Coverage is terminated pursuant to this subsection for all such former members uniformly without regard to any health status-related factor relating to the former member.

      4.  A carrier that elects not to renew group health insurance pursuant to paragraph (d) of subsection 1 shall not write new business pursuant to this chapter for 5 years after the date on which notice is provided to the Commissioner pursuant to subparagraph (2) of paragraph (d) of subsection 1.

      5.  If the carrier does business in only one geographic service area of this state, the provisions of this section apply only to the operations of the carrier in that service area.

      6.  As used in this section, “bona fide association” has the meaning ascribed to it in NRS 689A.485.

      Sec. 111. NRS 689C.111 is hereby amended to read as follows:

      689C.111  [1.  If an employer was not in existence throughout the entire preceding calendar year, the determination of whether the employer is a small or large employer must be based on the average number of employees reasonably expected to be employed on business days in the current calendar year.

      2.  Except as otherwise provided by specific statute, the provisions of this chapter that apply to a small employer at the time that a carrier issues a health benefit plan to the small employer pursuant to the provisions of this chapter continue to apply at least until the plan anniversary following the date on which the small employer no longer meets the requirements of being a small employer.

      3.]  An employee leasing company which has more than 50 employees, including leased employees at client locations, and which sponsors a fully insured health benefit plan for those employees shall be deemed to be a large employer for the purposes of this chapter.

      Sec. 112. NRS 689C.310 is hereby amended to read as follows:

      689C.310  1.  Except as otherwise provided in subsections 2 and 3, a carrier shall renew a health benefit plan at the option of the small employer who purchased the plan.

      2.  A carrier may refuse to issue or to renew a health benefit plan if:

      (a) The carrier discontinues transacting insurance in this state or in the geographic service area of this state where the employer is located;

      (b) The employer fails to pay the premiums or contributions required by the terms of the plan;

 


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      (c) The employer misrepresents any information regarding the employees covered under the plan or other information regarding eligibility for coverage under the plan;

      (d) The plan sponsor has engaged in an act or practice that constitutes fraud to obtain or maintain coverage under the plan;

      (e) The employer is not in compliance with the minimum requirements for participation or employer contribution as set forth in the plan; or

      (f) The employer fails to comply with any of the provisions of this chapter.

      3.  A carrier may require a small employer to exclude a particular employee or a dependent of the particular employee from coverage under a health benefit plan as a condition to renewal of the plan if the employee or dependent of the employee commits fraud upon the carrier or misrepresents a material fact which affects his or her coverage under the plan.

      4.  A carrier shall discontinue the issuance and renewal of coverage to a small employer if the Commissioner finds that the continuation of the coverage would not be in the best interests of the policyholders or certificate holders of the carrier in this state or would impair the ability of the carrier to meet its contractual obligations. If the Commissioner makes such a finding, the Commissioner shall assist the affected small employers in finding replacement coverage.

      5.  A carrier may discontinue [the issuance and renewal of a form of] a product [of a health benefit plan] offered to small employers [pursuant to this chapter if the Commissioner finds that the form of the product offered by the carrier is obsolete and is being replaced with comparable coverage. A form of a product of a health benefit plan may be discontinued by a carrier] pursuant to this subsection only if:

      (a) The carrier notifies the Commissioner [and the chief regulatory officer for insurance in each state in which it is licensed] of its decision pursuant to this subsection to discontinue [the issuance and renewal of the form of] the product at least 60 days before the carrier notifies the affected small employers pursuant to paragraph (b).

      (b) The carrier notifies each affected small employer [and the Commissioner and the chief regulatory officer for insurance in each state in which any affected small employer is located or eligible employee resides] of the decision of the carrier to discontinue [offering the form of] the product. The notice must be made at least [180] 90 days before the date on which the carrier will discontinue offering [the form of] the product.

      (c) The carrier offers to each affected small employer the option to purchase any other health benefit plan currently offered by the carrier to small employers in this state.

      (d) In exercising the option to discontinue [the particular form of] the product and in offering the option to purchase other coverage pursuant to paragraph (c), the carrier acts uniformly without regard to the claims experience of the affected small employers or any health status-related factor relating to any participant or beneficiary covered by the discontinued product or any new participant or beneficiary who may become eligible for such coverage.

      6.  A carrier may discontinue the issuance and renewal of a health benefit plan offered to a small employer or an eligible employee pursuant to this chapter only through a bona fide association if:

 


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      (a) The membership of the small employer or eligible employee in the association was the basis for the provision of coverage;

      (b) The membership of the small employer or eligible employee in the association ceases; and

      (c) The coverage is terminated pursuant to this subsection uniformly without regard to any health status-related factor relating to the small employer or eligible employee or dependent of the eligible employee.

      7.  If a carrier does business in only one geographic service area of this state, the provisions of this section apply only to the operations of the carrier in that service area.

      Sec. 113. NRS 689C.350 is hereby amended to read as follows:

      689C.350  A health benefit plan which offers a difference of payment between preferred providers of health care and providers of health care who are not preferred:

      1.  Must require that the deductible and payment for coinsurance paid by the insured to a preferred provider of health care be applied to the negotiated reduced rates of that provider.

      2.  [Must include for providers of health care who are not preferred a provision establishing the point at which an insured’s payment for coinsurance is no longer required to be paid if such a provision is included for preferred providers of health care. Such provisions must be based on a plan year. The point at which an insured’s payment for coinsurance is no longer required to be paid for providers of health care who are not preferred must not be greater than twice the amount for preferred providers of health care, regardless of the method of payment.

      3.]  Must provide that if there is a particular service which a preferred provider of health care does not provide and the provider of health care who is treating the insured requests the service and the insurer determines that the use of the service is necessary for the health of the insured, the service shall be deemed to be provided by the preferred provider of health care.

      Sec. 114. NRS 689C.470 is hereby amended to read as follows:

      689C.470  1.  Except as otherwise provided in NRS 689C.360 to 689C.600, inclusive, a carrier shall renew a contract as to all insured small employers that are members of a voluntary purchasing group and their employees and dependents at the request of the purchaser unless:

      (a) Required premiums are not paid;

      (b) The insured employer or other purchaser is guilty of fraud or misrepresentation;

      (c) Provisions of the contract are breached;

      (d) The number or percentage of employees covered under the contract is less than the number or percentage of eligible employees required by the contract;

      (e) The employer or purchaser is no longer engaged in the business in which it was engaged on the effective date of the contract; or

      (f) The Commissioner finds that the continuation of the coverage is not in the best interests of the persons insured under the contract or would impair the carrier’s ability to meet its contractual obligations. If nonrenewal occurs as a result of findings pursuant to this subsection, the Commissioner shall assist affected persons in replacing coverage.

      2.  A carrier may discontinue [issuance and renewal of a form of] a product [of a health benefit plan] offered to a small employer or purchasers pursuant to NRS 689C.360 to 689C.600, inclusive, [if the Commissioner finds that the form of the product offered by the carrier is obsolete and is being replaced with comparable coverage.

 


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finds that the form of the product offered by the carrier is obsolete and is being replaced with comparable coverage. A form of a product of a health benefit plan may be discontinued by a carrier pursuant to this subsection] only if:

      (a) The carrier notifies the Commissioner [and the chief regulatory officer for insurance in each state in which it is licensed] of its decision pursuant to this subsection to discontinue [offering and renewing the form of] the product at least 60 days before the carrier notifies the affected small employers and purchasers pursuant to paragraph (b).

      (b) The carrier notifies each affected small employer and purchaser [, and the Commissioner and the chief regulatory officer for insurance in each state in which any affected small employer is located or employee resides,] of the decision of the carrier to discontinue [offering the form of] the product. The notice must be made at least [180] 90 days before the date on which the carrier will discontinue offering [the form of] the product.

      (c) The carrier offers to each affected small employer and purchaser the option to purchase any other health benefit plan currently offered by the carrier to small employers in this state.

      (d) In exercising the option to discontinue [the particular form of] the product and in offering the option to purchase other coverage pursuant to paragraph (c), the carrier acts uniformly without regard to the claim experience of the affected small employers and any health status-related factor relating to any participant or beneficiary covered by the discontinued product or any new participant or beneficiary who may become eligible for such coverage.

      3.  A carrier may discontinue the issuance and renewal of a health benefit plan offered to a voluntary purchasing group pursuant to this chapter only through a bona fide association if:

      (a) The membership of the small employer who employs the members of the voluntary purchasing group or the purchaser in the association was the basis for the provision of coverage;

      (b) The membership of that small employer or the purchaser in the association ceases; and

      (c) The coverage is terminated pursuant to this subsection uniformly without regard to any health status-related factor relating to the small employer or the purchaser or his or her dependent.

      Sec. 115. NRS 689C.520 is hereby amended to read as follows:

      689C.520  1.  Before the issuance of a certificate of registration, each voluntary purchasing group shall, to the satisfaction of the Commissioner:

      (a) Establish the conditions of membership in the group and require as a condition of membership that all employers include all their eligible employees. The group may not differentiate among classes of membership on the basis of the kind of employment, race, religion, sex, education, health or income. The group shall set reasonable fees for membership which will finance all reasonable and necessary costs incurred in administering the group.

      (b) Provide to members of the group and their eligible employees any applicable disclosures of the coverage provided by any proposed contracts and any applicable information [meeting the requirements of NRS 689C.440 regarding] regarding available benefits and carriers provided by any proposed contracts.

 


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      2.  In addition to the information required pursuant to subsection 1, a voluntary purchasing group shall provide annually to members of the group information regarding available benefits and carriers.

      Sec. 116. NRS 690B.200 is hereby amended to read as follows:

      690B.200  As used in NRS 690B.200 to [690B.370,] 690B.360, inclusive, unless the context otherwise requires, the words and terms defined in NRS 690B.210 to 690B.240, inclusive, have the meanings ascribed to them in those sections.

      Sec. 117. NRS 690B.250 is hereby amended to read as follows:

      690B.250  Except as more is required in NRS 630.3067 and 633.526:

      1.  Each insurer which issues a policy of insurance covering the liability of a practitioner licensed pursuant to chapters 630 to 640, inclusive, of NRS for a breach of his or her professional duty toward a patient shall report to the board which licensed the practitioner within 45 days each settlement or award made or judgment rendered by reason of a claim, if the settlement, award or judgment is for more than $5,000, giving the name [and address] of the claimant and the practitioner and the circumstances of the case.

      2.  A practitioner licensed pursuant to chapters 630 to 640, inclusive, of NRS who does not have insurance covering liability for a breach of his or her professional duty toward a patient shall report to the board which issued the practitioner’s license within 45 days of each settlement or award made or judgment rendered by reason of a claim, if the settlement, award or judgment is for more than $5,000, giving the practitioner’s name , [and address,] the name [and address] of the claimant and the circumstances of the case.

      3.  These reports are public records and must be made available for public inspection within a reasonable time after they are received by the licensing board.

      Sec. 118. NRS 690B.260 is hereby amended to read as follows:

      690B.260  1.  Each insurer which issues a policy of insurance covering the liability of a physician licensed under chapter 630 of NRS or an osteopathic physician licensed under chapter 633 of NRS for a breach of his or her professional duty toward a patient shall, within 45 days after the end of a calendar quarter, submit a report to the Commissioner concerning each claim that was closed during that calendar quarter under such a policy of insurance issued by the insurer and any change during that calendar quarter to any claim under such a policy of insurance issued by the insurer that was closed during a previous calendar quarter. The report must include, without limitation:

      (a) The name [and address] of the claimant and the insured under each policy;

      (b) A statement setting forth the circumstances of that case;

      (c) Information indicating whether any payment was made on a claim and the amount of the payment, if any; and

      (d) The information specified in subsection 1 of NRS 679B.144 for each claim.

      2.  An insurer who fails to comply with the provisions of subsection 1 is subject to the imposition of an administrative fine pursuant to NRS 679B.460.

      3.  The Commissioner shall, within 30 days after receiving a report from an insurer pursuant to this section, submit a report to the Board of Medical Examiners or the State Board of Osteopathic Medicine, as applicable, setting forth the information provided to the Commissioner by the insurer pursuant to this section.

 


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Examiners or the State Board of Osteopathic Medicine, as applicable, setting forth the information provided to the Commissioner by the insurer pursuant to this section.

      Sec. 119. NRS 690B.350 is hereby amended to read as follows:

      690B.350  1.  The requirements of this section apply only if, after a hearing convened at the discretion of the Commissioner, the Commissioner determines that the market for professional liability insurance issued to any class, type or specialty of practitioner licensed pursuant to chapter 630, 631 or 633 of NRS is not competitive and that such insurance is unavailable or unaffordable for a substantial number of such practitioners.

      2.  If the Commissioner convenes a hearing pursuant to subsection 1 and issues a finding that the market for professional liability insurance issued to any class, type or specialty of practitioner licensed pursuant to chapter 630, 631 or 633 of NRS is not competitive, the Commissioner may designate that class, type or specialty of practitioner to be an essential medical specialty.

      3.  Except as otherwise provided in this section, if an insurer intends to cancel, terminate or otherwise not renew all policies of professional liability insurance that it has issued to any class, type or specialty of practitioner licensed pursuant to chapter 630, 631 or 633 of NRS, the insurer must provide 120 days’ notice of its intended action to the Commissioner and the practitioners before its intended action becomes effective.

      [2.]4.  If an insurer intends to cancel, terminate or otherwise not renew a specific policy of professional liability insurance that it has issued to a practitioner who is practicing in one or more of the essential medical specialties designated by the Commissioner:

      (a) The insurer must provide 120 days’ notice to the practitioner before its intended action becomes effective; and

      (b) The Commissioner may require the insurer to delay its intended action for a period of not more than 60 days if the Commissioner determines that a replacement policy is not readily available to the practitioner.

      [3.]5.  If an insurer intends to cancel, terminate or otherwise not renew all policies of professional liability insurance that it has issued to practitioners who are practicing in one or more of the essential medical specialties designated by the Commissioner:

      (a) The insurer must provide 120 days’ notice of its intended action to the Commissioner and the practitioners before its intended action becomes effective; and

      (b) The Commissioner may require the insurer to delay its intended action for a period of not more than 60 days if the Commissioner determines that replacement policies are not readily available to the practitioners.

      [4.  On or before April 1 of each year, the Commissioner shall:

      (a) Determine whether there are any medical specialties in this State which are essential as a matter of public policy and which must be protected pursuant to this section from certain adverse actions relating to professional liability insurance that may impair the availability of those essential medical specialties to the residents of this State; and

      (b) Make a list containing the essential medical specialties designated by the Commissioner and provide the list to each insurer that issues policies of professional liability insurance to practitioners who are practicing in one or more of the essential medical specialties.

 


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      5.]6.  The Commissioner may adopt any regulations that are necessary to carry out the provisions of this section.

      [6.  Until the Commissioner determines which, if any, medical specialties are to be designated as essential medical specialties, the following medical specialties shall be deemed to be essential medical specialties for the purposes of this section:

      (a) Emergency medicine.

      (b) Neurosurgery.

      (c) Obstetrics and gynecology.

      (d) Orthopedic surgery.

      (e) Pediatrics.

      (f) Trauma surgery.]

      Sec. 120. NRS 690B.360 is hereby amended to read as follows:

      690B.360  1.  The Commissioner [shall] may collect all information which is pertinent to monitoring whether an insurer that issues professional liability insurance for a practitioner licensed pursuant to chapter 630, 631, 632 or 633 of NRS is complying with the applicable standards for rates established in NRS 686B.010 to 686B.1799, inclusive [.] , and sections 35 to 39, inclusive, of this act. Such information [must] may include, without limitation:

      (a) The amount of gross premiums collected with regard to each medical specialty;

      (b) Information relating to loss ratios;

      (c) Information reported pursuant to NRS [690B.250;] 690B.260; and

      (d) Information reported pursuant to NRS 679B.430 and 679B.440.

      2.  In addition to the information collected pursuant to subsection 1, the Commissioner may request any additional information from an insurer:

      (a) Whose rates and credit utilization are materially different from other insurers in the market for professional liability insurance for a practitioner licensed pursuant to chapter 630, 631, 632 or 633 of NRS in this State;

      (b) Whose credit utilization shows a substantial change from the previous year; or

      (c) Whose information collected pursuant to subsection 1 indicates a potentially adverse trend.

      3.  If the Commissioner requests additional information from an insurer pursuant to subsection 2, the Commissioner [shall:] may:

      (a) Determine whether the additional information offers a reasonable explanation for the results described in paragraph (a), (b) or (c) of subsection 2; and

      (b) Take any steps permitted by law that are necessary and appropriate to assure the ongoing stability of the market for professional liability insurance for a practitioner licensed pursuant to chapter 630, 631, 632 or 633 of NRS in this State.

      4.  On an ongoing basis, the Commissioner [shall:

      (a) Analyze] may analyze and evaluate the information collected pursuant to this section to determine trends in and measure the health of the market for professional liability insurance for a practitioner licensed pursuant to chapter 630, 631, 632 or 633 of NRS in this State . [; and

      (b) Prepare]

      5.  If the Commissioner convenes a hearing pursuant to subsection 1 of NRS 690B.350 and determines that the market for professional liability insurance issued to any class, type or specialty of practitioner licensed pursuant to chapter 630, 631 or 633 of NRS is not competitive and that such insurance is unavailable or unaffordable for a substantial number of such practitioners, the Commissioner shall prepare and submit a report of the Commissioner’s findings and recommendations to the Director of the Legislative Counsel Bureau for transmittal to members of the Legislature .

 


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pursuant to chapter 630, 631 or 633 of NRS is not competitive and that such insurance is unavailable or unaffordable for a substantial number of such practitioners, the Commissioner shall prepare and submit a report of the Commissioner’s findings and recommendations to the Director of the Legislative Counsel Bureau for transmittal to members of the Legislature . [on or before November 15 of each year.]

      Sec. 121. Chapter 690C of NRS is hereby amended by adding thereto the provisions set forth as sections 122, 123 and 124 of this act.

      Sec. 122. “Controlling person” means a person who qualifies as a controlling person of a provider pursuant to section 123 of this act.

      Sec. 123.  A person is a controlling person of a provider if the person:

      1.  Is an officer of the provider; or

      2.  Possesses the authority to set the policy and direct the management of the business entity in connection with its service contract business.

      Sec. 124. 1.  Except as otherwise provided in this section, a provider shall not transfer any liability relating to a service contract to another provider or any other person, including, without limitation, another provider or other person with whom the original provider has merged or plans to merge.

      2.  A provider may transfer a liability relating to a service contract to another provider or any other person if, before the liability is transferred:

      (a) The original provider submits a proposal to the Commissioner to transfer the liability; and

      (b) The Commissioner approves the proposal pursuant to subsection 3.

      3.  The Commissioner may approve a proposal made by a provider pursuant to subsection 2 if the Commissioner determines, after reviewing the financial condition of the provider or other person to whom the liability is proposed to be transferred, that the proposed recipient of the transfer has adequate financial resources to enable the proposed recipient to pay in full and in a timely manner all liabilities proposed to be transferred to the proposed recipient.

      4.  The provisions of this section do not apply to any transaction relating to a contractual liability insurance policy into which the provider enters to satisfy the requirements of NRS 690C.170.

      Sec. 125. NRS 690C.010 is hereby amended to read as follows:

      690C.010  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 690C.020 to 690C.080, inclusive, and section 122 of this act, have the meanings ascribed to them in those sections.

      Sec. 126. NRS 690C.100 is hereby amended to read as follows:

      690C.100  1.  The provisions of this title do not apply to:

      (a) A warranty;

      (b) A maintenance agreement;

      (c) A service contract provided by a public utility on its transmission device if the service contract is regulated by the Public Utilities Commission of Nevada;

      (d) A service contract sold or offered for sale to a person who is not a consumer;

      (e) A service contract for goods if the purchase price of the goods is less than $250; or

      (f) [Except as otherwise provided in NRS 690C.240, a] A service contract issued, sold or offered for sale by a vehicle dealer on vehicles sold by the dealer, if the dealer is licensed pursuant to NRS 482.325 and the service contract obligates either the dealer or the manufacturer of the vehicle, or an affiliate of the dealer or manufacturer, to provide all services under the service contract.

 


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service contract obligates either the dealer or the manufacturer of the vehicle, or an affiliate of the dealer or manufacturer, to provide all services under the service contract.

      2.  The sale of a service contract pursuant to this chapter does not constitute the business of insurance for the purposes of 18 U.S.C. §§ 1033 and 1034.

      3.  As used in this section:

      (a) “Maintenance agreement” means a contract for a limited period that provides only for scheduled maintenance.

      (b) “Warranty” means a warranty provided solely by a manufacturer, importer or seller of goods for which the manufacturer, importer or seller did not receive separate consideration and that:

             (1) Is not negotiated or separated from the sale of the goods;

             (2) Is incidental to the sale of the goods; and

             (3) Guarantees to indemnify the consumer for defective parts, mechanical or electrical failure, labor or other remedial measures required to repair or replace the goods.

      Sec. 127. NRS 690C.160 is hereby amended to read as follows:

      690C.160  1.  A provider who wishes to issue, sell or offer for sale service contracts in this state must submit to the Commissioner:

      (a) A registration application on a form prescribed by the Commissioner;

      (b) Proof that the provider has complied with the requirements for financial security set forth in NRS 690C.170;

      (c) A copy of each type of service contract the provider proposes to issue, sell or offer for sale;

      (d) The name, address and telephone number of each administrator with whom the provider intends to contract; [and]

      (e) A fee of $1,000 and, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110 [.] ; and

      (f) The following information for each controlling person:

             (1) Whether the person, in the last 10 years, has been:

                   (I) Convicted of a felony or misdemeanor of which an essential element is fraud;

                   (II) Insolvent or adjudged bankrupt;

                   (III) Refused a license or registration as a service contract provider or had an existing license or registration as a service contract provider suspended or revoked by any state or governmental agency or authority; or

                   (IV) Fined by any state or governmental agency or authority in any matter regarding service contracts; and

             (2) Whether there are any pending criminal actions against the person other than moving traffic violations.

      2.  In addition to the fee required by subsection 1, a provider must pay a fee of $25 for each type of service contract the provider files with the Commissioner.

      3.  A certificate of registration is valid for 1 year after the date the Commissioner issues the certificate to the provider. A provider may renew his or her certificate of registration if, before the certificate expires, the provider submits to the Commissioner [an] :

      (a) An application on a form prescribed by the Commissioner [, a] ;

      (b) A fee of $1,000 and, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110 [.] ; and

 


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      (c) The information required by paragraph (f) of subsection 1:

             (1) If an existing controlling person has had a change in any of the information previously submitted to the Commissioner; or

             (2) For a controlling person who has not previously submitted the information required by paragraph (f) of subsection 1 to the Commissioner.

      4.  All fees paid pursuant to this section are nonrefundable.

      5.  Each application submitted pursuant to this section, including, without limitation, an application for renewal, must:

      (a) Be signed by an executive officer, if any, of the provider or, if the provider does not have an executive officer, by a controlling person of the provider; and

      (b) Have attached to it an affidavit signed by the person described in paragraph (a) which meets the requirements of subsection 6.

      6.  Before signing the application described in subsection 5, the person who signs the application shall verify that the information provided is accurate to the best of his or her knowledge.

      Sec. 128. NRS 690C.170 is hereby amended to read as follows:

      690C.170  1.  To be issued a certificate of registration, a provider must comply with one of the following [:

      1.]  to provide for financial security:

      (a) Purchase a contractual liability insurance policy which insures the obligations of each service contract the provider issues, sells or offers for sale. The contractual liability insurance policy must [be] :

             (1) Be issued by an insurer which is licensed, registered or otherwise authorized to transact insurance in this state or pursuant to the provisions of chapter 685A of NRS.

             (2) Contain a provision prohibiting the insurer from terminating the policy until a notice of termination has been mailed or delivered to the Commissioner at least 60 days prior to the termination of the policy. Any such termination shall not reduce the responsibility of the insurer for service contracts issued by the provider prior to the effective date of termination.

      [2.](b) Maintain a reserve account in this State and deposit with the Commissioner security as provided in this subsection. The reserve account must contain at all times an amount of money equal to at least 40 percent of the unearned gross consideration received by the provider for any unexpired service contracts. The reserve account must be kept separate from the operating accounts of the provider and must be clearly identified as the “  (Provider’s Name)  Nevada Service Contracts Funded Reserve Account.” The Commissioner may examine the reserve account at any time. The provider shall also deposit with the Commissioner security in an amount that is equal to $25,000 or 10 percent of the unearned gross consideration received by the provider for any unexpired service contracts, whichever is greater. The security must be:

      [(a)](1) A surety bond issued by a surety company authorized to do business in this State;

      [(b)](2) Securities of the type eligible for deposit pursuant to NRS 682B.030;

      [(c)](3) Cash;

      [(d)](4) An irrevocable letter of credit issued by a financial institution approved by the Commissioner; or

 


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κ2017 Statutes of Nevada, Page 2382 (CHAPTER 376, AB 83)κ

 

      [(e)](5) In any other form prescribed by the Commissioner.

      [3.](c) Maintain, or be a subsidiary of a parent company that maintains, a net worth or stockholders’ equity of at least $100,000,000. Upon request, a provider shall provide to the Commissioner a copy of the most recent Form 10-K report or Form 20-F report filed by the provider or parent company of the provider with the Securities and Exchange Commission within the previous year. If the provider or parent company is not required to file those reports with the Securities and Exchange Commission, the provider shall provide to the Commissioner a copy of the most recently audited financial statements of the provider or parent company. If the net worth or stockholders’ equity of the parent company of the provider is used to comply with the requirements of this subsection, the parent company must guarantee to carry out the duties of the provider under any service contract issued or sold by the provider.

      2.  A provider shall not use any money in a reserve account described in paragraph (b) of subsection 1 for any purpose other than to pay an obligation of the provider under an unexpired service contract.

      3.  A provider shall maintain the financial security required by subsection 1 until:

      (a) The provider ceases doing business in this State; and

      (b) The provider has performed or otherwise satisfied all liabilities and obligations under all unexpired service contracts issued by the provider.

      4.  If the certificate of registration of a provider has not expired and the provider fails to maintain the financial security required by subsection 1, including, without limitation, if the financial security is cancelled or lapses, the provider shall not issue or sell a service contract on or after the effective date of such failure until the provider submits to the Commissioner proof satisfactory to the Commissioner that the provider is in compliance with subsection 1.

      Sec. 129. NRS 690C.240 is hereby amended to read as follows:

      690C.240  1.  A provider [who, whether directly or through a vehicle dealer licensed pursuant to NRS 482.325, enters into a vehicle service contract with a buyer] shall, within 30 days after ceasing doing business in this State, notify [any buyer who purchased such a contract] the Commissioner and each holder of an unexpired service contract in writing of the fact that the provider has ceased doing business in this State . [if the specified period of the vehicle service contract has not yet expired.]

      2.  The provisions of this section do not:

      (a) Render a service contract void pursuant to NRS 690C.250;

      (b) Cancel a service contract pursuant to NRS 690C.270; or

      (c) Release the provider from any liability imposed by a violation of any provision of this chapter.

      [3.  As used in this section:

      (a) “Buyer” means the buyer of a vehicle service contract.

      (b) “Vehicle service contract” means a contract pursuant to which a provider, in exchange for separately stated consideration, is obligated for a specified period to a buyer to repair, replace or perform maintenance on, or indemnify or reimburse the buyer for the costs of repairing, replacing or performing maintenance on, a motor vehicle which is described in the vehicle service contract and which has an operational or structural failure as a result of a defect in materials, workmanship or normal wear and tear, including, without limitation, a contract that includes a provision for incidental payment of indemnity under limited circumstances, including, without limitation, towing, rental and emergency road service.]

 


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κ2017 Statutes of Nevada, Page 2383 (CHAPTER 376, AB 83)κ

 

incidental payment of indemnity under limited circumstances, including, without limitation, towing, rental and emergency road service.]

      Sec. 130. NRS 691C.340 is hereby amended to read as follows:

      691C.340  [1.  The Commissioner shall, by regulation, establish reasonable rates as described in this chapter and in accordance with the standards established in NRS 686B.050 and 686B.060. The rates must be reasonable in relation to the benefits provided and must not be excessive, inadequate or unfairly discriminatory.

      2.]  The Commissioner may, by regulation, establish rates that an insurer may use without filing pursuant to NRS 691C.320. In establishing such rates, the Commissioner shall consider and apply the following factors:

      [(a)]1.  Actual and expected loss experience;

      [(b)]2.  General and administrative expenses;

      [(c)]3.  Loss settlement and adjustment expenses;

      [(d)]4.  Reasonable creditor compensation;

      [(e)]5.  The manner in which premiums are charged;

      [(f)]6.  Other acquisition costs;

      [(g)]7.  Reserves;

      [(h)]8.  Taxes;

      [(i)]9.  Regulatory license fees and fund assessments;

      [(j)]10.  Reasonable insurer profit; and

      [(k)]11.  Other relevant data consistent with generally accepted actuarial standards.

      Sec. 131. NRS 691C.390 is hereby amended to read as follows:

      691C.390  1.  Each individual policy or certificate of insurance must provide for a refund of unearned premiums if the credit personal property insurance is cancelled before the scheduled date of termination of the insurance.

      2.  Except as otherwise provided in this section, any refund must be provided to the person to whom it is entitled as soon as practicable after the date of cancellation of the insurance.

      3.  [The Commissioner shall, by regulation, establish the minimum amount of unearned premiums that must remain outstanding at the time of cancellation in order for a person to be entitled to a refund. If the amount of unearned premiums that remains outstanding at the time of cancellation is less than the minimum amount established by regulation, the person is not entitled to a refund.

      4.]  The formula that an insurer uses to determine the amount of a refund must be submitted to and approved by the Commissioner before it is used.

      Sec. 132. Chapter 695B of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  A corporation organized under this chapter shall contract with an insurance company licensed in this State or authorized to do business in this State for the provision of insurance, indemnity or reimbursement against the cost of hospital services, medical services and dental services which are provided by the corporation.

      2.  The contract of insurance required by subsection 1 must include a provision that, in the case of the insolvency or impairment of the corporation, the insurance company will pay all claims made by an insured for the period for which a premium has been or will be paid to the corporation for the insured.

 


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κ2017 Statutes of Nevada, Page 2384 (CHAPTER 376, AB 83)κ

 

corporation for the insured. The contract of insurance required by subsection 1 must specifically provide for the:

      (a) Continuation of benefits to each insured for the period for which a premium has been or will be paid to the corporation for the insured until the expiration or termination of the insured’s contract with the corporation;

      (b) Continuation of benefits for each insured who is receiving inpatient services in a medical facility or facility for the dependent at the time of the insolvency or impairment of the corporation until the inpatient services are no longer medically necessary and the insured is discharged from the medical facility or facility for the dependent; and

      (c) Payment of a provider of health care not affiliated with the corporation who provided medically necessary services to an insured, as described in the insured’s contract with the corporation, the insured’s policy or the insured’s evidence of coverage.

      3.  As used in this section:

      (a) “Facility for the dependent” has the meaning ascribed to it in NRS 449.0045.

      (b) “Impairment” means that a corporation organized under this chapter is not insolvent and has been:

             (1) Deemed to be impaired pursuant to NRS 695B.150; or

             (2) Placed under an order of rehabilitation or conservation by a court of competent jurisdiction.

      (c) “Insolvency” or “insolvent” means that a corporation organized under this chapter has been:

             (1) Deemed to be insolvent pursuant to NRS 695B.150;

             (2) Declared insolvent by a court of competent jurisdiction; or

             (3) Placed under an order of liquidation by a court of competent jurisdiction.

      (d) “Medical facility” has the meaning ascribed to it in NRS 449.0151.

      (e) “Medically necessary” has the meaning ascribed to it in NRS 695G.055.

      (f) “Provider of health care” has the meaning ascribed to it in NRS 629.031.

      Sec. 133. NRS 695B.150 is hereby amended to read as follows:

      695B.150  1.  A corporation organized under this chapter shall be deemed to be insolvent if [its] :

      (a) The corporation fails to meet its obligations as they mature;

      (b) The assets of the corporation are less than the sum of its liabilities and the minimum surplus required to be maintained by the corporation under this Code for authority to transact the kinds of insurance transacted; and

      (c) The reserve fund of the corporation is [impaired so as to be] less than the amounts set forth in NRS 695B.140.

      2.  In addition to the provisions of subsection 1, a corporation organized under this chapter shall be deemed to be insolvent as otherwise expressly provided in this Code.

      3.  For the purposes of determining [such] insolvency pursuant to subsection 1 or 2 and the financial condition of the corporation, for the purposes of preparation of annual statements, and for all other purposes not otherwise expressly provided for in this chapter, the corporation is subject to all requirements of the laws of the State of Nevada as to assets, liabilities and reserves which are applicable to mutual nonassessable life or health insurers.

 


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κ2017 Statutes of Nevada, Page 2385 (CHAPTER 376, AB 83)κ

 

all requirements of the laws of the State of Nevada as to assets, liabilities and reserves which are applicable to mutual nonassessable life or health insurers.

      4.  A corporation organized under this chapter shall be deemed to be impaired if the assets of the corporation are less than the sum of its liabilities and the minimum surplus required to be maintained by the corporation under this Code for authority to transact the kinds of insurance transacted.

      5.  The Commissioner may adopt regulations to define when a corporation organized under this chapter is considered to be in a hazardous financial condition and to set forth the standards to be considered by the Commissioner in determining whether the continued operation of such a corporation transacting business in this State may be considered to be hazardous to its insureds or creditors or to the general public.

      6.  If the Commissioner determines after a hearing that any corporation organized under this chapter is in a hazardous financial condition, the Commissioner may, instead of suspending or revoking the certificate of authority of the corporation, limit the certificate of authority as the Commissioner deems reasonably necessary to correct, eliminate or remedy any conduct, condition or ground that is deemed to be a cause of the hazardous financial condition.

      7.  An order or decision of the Commissioner under this section is subject to review in accordance with NRS 679B.310 to 679B.370, inclusive, at the request of any party to the proceedings whose interests are substantially affected.

      Sec. 134. NRS 695B.185 is hereby amended to read as follows:

      695B.185  A group contract for hospital, medical or dental services which offers a difference of payment between preferred providers of health care and providers of health care who are not preferred:

      1.  May not require a deductible of more than $600 difference per admission to a facility for inpatient treatment which is not a preferred provider of health care.

      2.  May not require a deductible of more than $500 difference per treatment, other than inpatient treatment at a hospital, by a provider which is not preferred.

      3.  May not require an insured, another insurer who issues policies of group health insurance, a nonprofit medical service corporation or a health maintenance organization to pay any amount in excess of the deductible or coinsurance due from the insured based on the rates agreed upon with a provider.

      4.  May not provide for a difference in percentage rates of payment for coinsurance of more than 30 percentage points between the copayment required to be paid by the insured to a preferred provider of health care and the copayment required to be paid by the insured to a provider of health care who is not preferred.

      5.  Must require that the deductible and payment for coinsurance paid by the insured to a preferred provider of health care be applied to the negotiated reduced rates of that provider.

      6.  [Must include for providers of health care who are not preferred a provision establishing the point at which an insured’s payment for coinsurance is no longer required to be paid if such a provision is included for preferred providers of health care. Such provisions must be based on a calendar year.

 


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calendar year. The point at which an insured’s payment for coinsurance is no longer required to be paid for providers of health care who are not preferred must not be greater than twice the amount for preferred providers of health care, regardless of the method of payment.

      7.]  Must provide that if there is a particular service which a preferred provider of health care does not provide and the provider of health care who is treating the insured determines that the use of the service is necessary for the health of the insured, the service shall be deemed to be provided by the preferred provider of health care.

      [8.]7.  Must require the corporation to process a claim of a provider of health care who is not preferred not later than 30 working days after the date on which proof of the claim is received.

      Sec. 135. NRS 695B.1903 is hereby amended to read as follows:

      695B.1903  1.  A policy of health insurance issued by a medical services corporation must provide coverage for medical treatment which a person insured under the policy receives as part of a clinical trial or study if:

      (a) The medical treatment is provided in a Phase I, Phase II, Phase III or Phase IV study or clinical trial for the treatment of cancer or in a Phase II, Phase III or Phase IV study or clinical trial for the treatment of chronic fatigue syndrome;

      (b) The clinical trial or study is approved by:

             (1) An agency of the National Institutes of Health as set forth in 42 U.S.C. § 281(b);

             (2) A cooperative group;

             (3) The Food and Drug Administration as an application for a new investigational drug;

             (4) The United States Department of Veterans Affairs; or

             (5) The United States Department of Defense;

      (c) In the case of:

             (1) A Phase I clinical trial or study for the treatment of cancer, the medical treatment is provided at a facility authorized to conduct Phase I clinical trials or studies for the treatment of cancer; or

             (2) A Phase II, Phase III or Phase IV study or clinical trial for the treatment of cancer or chronic fatigue syndrome, the medical treatment is provided by a provider of health care and the facility and personnel for the clinical trial or study have the experience and training to provide the treatment in a capable manner;

      (d) There is no medical treatment available which is considered a more appropriate alternative medical treatment than the medical treatment provided in the clinical trial or study;

      (e) There is a reasonable expectation based on clinical data that the medical treatment provided in the clinical trial or study will be at least as effective as any other medical treatment;

      (f) The clinical trial or study is conducted in this State; and

      (g) The insured has signed, before participating in the clinical trial or study, a statement of consent indicating that the insured has been informed of, without limitation:

             (1) The procedure to be undertaken;

             (2) Alternative methods of treatment; and

             (3) The risks associated with participation in the clinical trial or study, including, without limitation, the general nature and extent of such risks.

 


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      2.  Except as otherwise provided in subsection 3, the coverage for medical treatment required by this section is limited to:

      (a) Coverage for any drug or device that is approved for sale by the Food and Drug Administration without regard to whether the approved drug or device has been approved for use in the medical treatment of the insured person.

      (b) The cost of any reasonably necessary health care services that are required as a result of the medical treatment provided in a Phase II, Phase III or Phase IV clinical trial or study or as a result of any complication arising out of the medical treatment provided in a Phase II, Phase III or Phase IV clinical trial or study, to the extent that such health care services would otherwise be covered under the policy of health insurance.

      (c) The cost of any routine health care services that would otherwise be covered under the policy of health insurance for an insured participating in a Phase I clinical trial or study.

      (d) The initial consultation to determine whether the insured is eligible to participate in the clinical trial or study.

      (e) Health care services required for the clinically appropriate monitoring of the insured during a Phase II, Phase III or Phase IV clinical trial or study.

      (f) Health care services which are required for the clinically appropriate monitoring of the insured during a Phase I clinical trial or study and which are not directly related to the clinical trial or study.

Κ Except as otherwise provided in NRS 695B.1901, the services provided pursuant to paragraphs (b), (c), (e) and (f) must be covered only if the services are provided by a provider with whom the medical services corporation has contracted for such services. If the medical services corporation has not contracted for the provision of such services, the medical services corporation shall pay the provider the rate of reimbursement that is paid to other providers with whom the medical services corporation has contracted for similar services and the provider shall accept that rate of reimbursement as payment in full.

      3.  Particular medical treatment described in subsection 2 and provided to a person insured under the policy is not required to be covered pursuant to this section if that particular medical treatment is provided by the sponsor of the clinical trial or study free of charge to the person insured under the policy.

      4.  The coverage for medical treatment required by this section does not include:

      (a) Any portion of the clinical trial or study that is customarily paid for by a government or a biotechnical, pharmaceutical or medical industry.

      (b) Coverage for a drug or device described in paragraph (a) of subsection 2 which is paid for by the manufacturer, distributor or provider of the drug or device.

      (c) Health care services that are specifically excluded from coverage under the insured’s policy of health insurance, regardless of whether such services are provided under the clinical trial or study.

      (d) Health care services that are customarily provided by the sponsors of the clinical trial or study free of charge to the participants in the trial or study.

 


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      (e) Extraneous expenses related to participation in the clinical trial or study including, without limitation, travel, housing and other expenses that a participant may incur.

      (f) Any expenses incurred by a person who accompanies the insured during the trial or study.

      (g) Any item or service that is provided solely to satisfy a need or desire for data collection or analysis that is not directly related to the clinical management of the insured.

      (h) Any costs for the management of research relating to the clinical trial or study.

      5.  A medical services corporation that delivers or issues for delivery a policy of health insurance specified in subsection 1 may require copies of the approval or certification issued pursuant to paragraph (b) of subsection 1, the statement of consent signed by the insured, protocols for the clinical trial or study and any other materials related to the scope of the clinical trial or study relevant to the coverage of medical treatment pursuant to this section.

      6.  A medical services corporation that delivers or issues for delivery a policy of health insurance specified in subsection 1 shall:

      (a) Include in [the] any disclosure [required pursuant to NRS 695B.172] of the coverage provided by the policy notice to each person insured under the policy of the availability of the benefits required by this section.

      (b) Provide the coverage required by this section subject to the same deductible, copayment, coinsurance and other such conditions for coverage that are required under the policy.

      7.  A policy of health insurance subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after January 1, 2006, has the legal effect of including the coverage required by this section, and any provision of the policy that conflicts with this section is void.

      8.  A medical services corporation that delivers or issues for delivery a policy of health insurance specified in subsection 1 is immune from liability for:

      (a) Any injury to the insured caused by:

             (1) Any medical treatment provided to the insured in connection with his or her participation in a clinical trial or study described in this section; or

             (2) An act or omission by a provider of health care who provides medical treatment or supervises the provision of medical treatment to the insured in connection with his or her participation in a clinical trial or study described in this section.

      (b) Any adverse or unanticipated outcome arising out of an insured’s participation in a clinical trial or study described in this section.

      9.  As used in this section:

      (a) “Cooperative group” means a network of facilities that collaborate on research projects and has established a peer review program approved by the National Institutes of Health. The term includes:

             (1) The Clinical Trials Cooperative Group Program; and

             (2) The Community Clinical Oncology Program.

      (b) “Facility authorized to conduct Phase I clinical trials or studies for the treatment of cancer” means a facility or an affiliate of a facility that:

             (1) Has in place a Phase I program which permits only selective participation in the program and which uses clear-cut criteria to determine eligibility for participation in the program;

 


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             (2) Operates a protocol review and monitoring system which conforms to the standards set forth in the “Policies and Guidelines Relating to the Cancer Center Support Grant” published by the Cancer Centers Branch of the National Cancer Institute;

             (3) Employs at least two researchers and at least one of those researchers receives funding from a federal grant;

             (4) Employs at least three clinical investigators who have experience working in Phase I clinical trials or studies conducted at a facility designated as a comprehensive cancer center by the National Cancer Institute;

             (5) Possesses specialized resources for use in Phase I clinical trials or studies, including, without limitation, equipment that facilitates research and analysis in proteomics, genomics and pharmacokinetics;

             (6) Is capable of gathering, maintaining and reporting electronic data; and

             (7) Is capable of responding to audits instituted by federal and state agencies.

      (c) “Provider of health care” means:

             (1) A hospital; or

             (2) A person licensed pursuant to chapter 630, 631 or 633 of NRS.

      Sec. 136. NRS 695B.1927 is hereby amended to read as follows:

      695B.1927  1.  No contract for hospital or medical service that provides coverage for hospital, medical or surgical expenses may be delivered or issued for delivery in this state unless the contract includes coverage for the management and treatment of diabetes, including, without limitation, coverage for the self-management of diabetes.

      2.  An insurer who delivers or issues for delivery a contract specified in subsection 1:

      (a) Shall include in [the] any disclosure [required pursuant to NRS 695B.172] of the coverage provided by the contract notice to each policyholder or subscriber covered under the contract of the availability of the benefits required by this section.

      (b) Shall provide the coverage required by this section subject to the same deductible, copayment, coinsurance and other such conditions for coverage that are required under the contract.

      3.  A contract for hospital or medical service subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after January 1, 1998, has the legal effect of including the coverage required by this section, and any provision of the contract that conflicts with this section is void.

      4.  As used in this section:

      (a) “Coverage for the management and treatment of diabetes” includes coverage for medication, equipment, supplies and appliances that are medically necessary for the treatment of diabetes.

      (b) “Coverage for the self-management of diabetes” includes:

             (1) The training and education provided to a person covered under the contract after the person is initially diagnosed with diabetes which is medically necessary for the care and management of diabetes, including, without limitation, counseling in nutrition and the proper use of equipment and supplies for the treatment of diabetes;

             (2) Training and education which is medically necessary as a result of a subsequent diagnosis that indicates a significant change in the symptoms or condition of the person covered under the contract and which requires modification of the person’s program of self-management of diabetes; and

 


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or condition of the person covered under the contract and which requires modification of the person’s program of self-management of diabetes; and

             (3) Training and education which is medically necessary because of the development of new techniques and treatment for diabetes.

      (c) “Diabetes” includes type I, type II and gestational diabetes.

      Sec. 137. NRS 695B.290 is hereby amended to read as follows:

      695B.290  Any agent of a nonprofit hospital or medical or dental service corporation who acts as such in the solicitation, negotiation, procurement or making of a hospital service or medical or dental care contract shall be qualified, examined and licensed in the same manner and pay the same fees as provided for [health insurance agents] a producer of insurance in NRS 680B.010 (fee schedule), chapter 683A of NRS and, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110.

      Sec. 138. NRS 695B.320 is hereby amended to read as follows:

      695B.320  1.  Nonprofit hospital and medical or dental service corporations are subject to the provisions of this chapter, and to the provisions of chapters 679A and 679B of NRS, NRS 686A.010 to 686A.315, inclusive, 687B.010 to 687B.040, inclusive, 687B.070 to 687B.140, inclusive, 687B.150, 687B.160, 687B.180, 687B.200 to 687B.255, inclusive, 687B.270, 687B.310 to 687B.380, inclusive, 687B.410, 687B.420, 687B.430, 687B.500 and chapters 692B, 692C , 693A and 696B of NRS, to the extent applicable and not in conflict with the express provisions of this chapter.

      2.  For the purposes of this section and the provisions set forth in subsection 1, a nonprofit hospital and medical or dental service corporation is included in the meaning of the term “insurer.”

      Sec. 139. NRS 695B.380 is hereby amended to read as follows:

      695B.380  1.  Except as otherwise provided in subsection 4, each insurer that issues a contract for hospital or medical services in this State shall establish a system for resolving any complaints of an insured concerning health care services covered under the policy. The system must be approved by the Commissioner . [in consultation with the State Board of Health.]

      2.  A system for resolving complaints established pursuant to subsection 1 must include an initial investigation, a review of the complaint by a review board and a procedure for appealing a determination regarding the complaint. The majority of the members on a review board must be insureds who receive health care services pursuant to a contract for hospital or medical services issued by the insurer.

      3.  The Commissioner [or the State Board of Health] may examine the system for resolving complaints established pursuant to subsection 1 at such times as [either] the Commissioner deems necessary or appropriate.

      4.  Each insurer that issues a contract specified in subsection 1 shall, if the contract provides, delivers, arranges for, pays for or reimburses any cost of health care services through managed care, provide a system for resolving any complaints of an insured concerning those health care services that complies with the provisions of NRS 695G.200 to 695G.310, inclusive.

      Sec. 140. NRS 695B.390 is hereby amended to read as follows:

      695B.390  1.  Each insurer that issues a contract for hospital or medical services in this State shall submit to the Commissioner [and the State Board of Health] an annual report regarding its system for resolving complaints established pursuant to subsection 1 of NRS 695B.380 on a form prescribed by the Commissioner [in consultation with the State Board of Health] which includes, without limitation:

 


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established pursuant to subsection 1 of NRS 695B.380 on a form prescribed by the Commissioner [in consultation with the State Board of Health] which includes, without limitation:

      (a) A description of the procedures used for resolving any complaints of an insured;

      (b) The total number of complaints and appeals handled through the system for resolving complaints since the last report and a compilation of the causes underlying the complaints filed;

      (c) The current status of each complaint and appeal filed; and

      (d) The average amount of time that was needed to resolve a complaint and an appeal, if any.

      2.  Each insurer shall maintain records of complaints filed with it which concern something other than health care services and shall submit to the Commissioner a report summarizing such complaints at such times and in such format as the Commissioner may require.

      Sec. 141. Chapter 695C of NRS is hereby amended by adding thereto the provisions set forth as sections 142 to 146, inclusive, of this act.

      Sec. 142. 1.  A health maintenance organization shall contract with an insurance company licensed in this State or authorized to do business in this State for the provision of insurance, indemnity or reimbursement against the cost of health care services which are provided by the health maintenance organization.

      2.  The contract of insurance required by subsection 1 must include a provision that, in the case of the insolvency or impairment of the health maintenance organization, the insurance company will pay all claims made by an enrollee for the period for which a premium has been or will be paid to the health maintenance organization for the enrollee. The contract of insurance required by subsection 1 must specifically provide for the:

      (a) Continuation of benefits to each enrollee for the period for which a premium has been or will be paid to the health maintenance organization for the enrollee until the expiration or termination of the enrollee’s contract with the health maintenance organization;

      (b) Continuation of benefits for each enrollee who is receiving inpatient services in a medical facility or facility for the dependent at the time of the insolvency or impairment of the health maintenance organization until the inpatient services are no longer medically necessary and the enrollee is discharged from the medical facility or facility for the dependent; and

      (c) Payment of a provider of health care not affiliated with the health maintenance organization who provided medically necessary services to an enrollee, as described in the enrollee’s evidence of coverage.

      3.  As used in this section:

      (a) “Facility for the dependent” has the meaning ascribed to it in NRS 449.0045.

      (b) “Impairment” means that a health maintenance organization is not insolvent and has been:

             (1) Deemed to be impaired pursuant to section 143 of this act; or

             (2) Placed under an order of rehabilitation or conservation by a court of competent jurisdiction.

 


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      (c) “Insolvency” or “insolvent” means that a health maintenance organization has been:

             (1) Deemed to be insolvent pursuant to section 143 of this act;

             (2) Declared insolvent by a court of competent jurisdiction; or

             (3) Placed under an order of liquidation by a court of competent jurisdiction.

      (d) “Medical facility” has the meaning ascribed to it in NRS 449.0151.

      (e) “Medically necessary” has the meaning ascribed to it in NRS 695G.055.

      (f) “Provider of health care” has the meaning ascribed to it in NRS 629.031.

      Sec. 143. 1.  A health maintenance organization shall be deemed to be insolvent if:

      (a) The health maintenance organization fails to meet its obligations as they mature; and

      (b) The assets of the health maintenance organization are less than the sum of its liabilities and the minimum surplus required to be maintained by the health maintenance organization under this Code for authority to transact business in this State.

      2.  In addition to the provisions of subsection 1, a health maintenance organization shall be deemed to be insolvent as otherwise expressly provided in this Code.

      3.  A health maintenance organization shall be deemed to be impaired if the assets of the health maintenance organization are less than the sum of its liabilities and the minimum surplus required to be maintained by the health maintenance organization under this Code for authority to transact business in this State.

      4.  The Commissioner may adopt regulations to define when a health maintenance organization is considered to be in a hazardous financial condition and to set forth the standards to be considered by the Commissioner in determining whether the continued operation of a health maintenance organization transacting business in this State may be considered to be hazardous to its enrollees or creditors or to the general public.

      5.  If the Commissioner determines after a hearing that any health maintenance organization is in a hazardous financial condition, the Commissioner may, instead of suspending or revoking the certificate of authority of the health maintenance organization, limit the certificate of authority as the Commissioner deems reasonably necessary to correct, eliminate or remedy any conduct, condition or ground that is deemed to be a cause of the hazardous financial condition.

      6.  An order or decision of the Commissioner under this section is subject to review in accordance with NRS 679B.310 to 679B.370, inclusive, at the request of any party to the proceedings whose interests are substantially affected.

      Sec. 144. 1.  Each health maintenance organization shall develop, submit to the Commissioner for approval and, after such approval, put into effect a plan to provide for the continuation of benefits to enrollees in the event of the insolvency or impairment of the health maintenance organization, including, without limitation, the benefits described in subsection 2 of section 142 of this act. A plan developed pursuant to this subsection must include, without limitation:

 


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      (a) A contract of insurance which complies with the requirements of section 142 of this act; and

      (b) Provisions in each contract between the health maintenance organization and a provider which obligate the provider, in the event of the health maintenance organization’s insolvency or impairment, to provide all covered services as described in the contract to enrollees through the periods of time described in subsection 2 of section 142 of this act.

      2.  Before approving a plan submitted pursuant to subsection 1, the Commissioner may require the health maintenance organization to include in the plan:

      (a) Reserves or additional reserves for protection against insolvency or impairment;

      (b) Letters of credit acceptable to the Commissioner; and

      (c) Any other arrangements determined by the Commissioner to be appropriate to ensure the continuation of benefits as described in subsection 2 of section 142 of this act to enrollees.

      Sec. 145. 1.  If the Commissioner determines that, because of the financial condition of a health maintenance organization, the continued operation of the health maintenance organization is or may be hazardous to its enrollees or creditors or to the general public, or that the health maintenance organization has violated any law of this State to which the health maintenance organization is subject, the Commissioner may, after notice and a hearing, order the health maintenance organization to take any action the Commissioner deems reasonably necessary to correct, eliminate or remedy the condition or violation, including, without limitation:

      (a) Reducing the total amount of the present and potential liability of the health maintenance organization for benefits by reinsurance or any other method acceptable to the Commissioner;

      (b) Suspending, limiting or reducing the volume of new business being written or accepted by the health maintenance organization for any period of time specified by the Commissioner;

      (c) Reducing the expenses of the health maintenance organization by any method acceptable to the Commissioner; and

      (d) Increasing the capital and surplus of the health maintenance organization by contribution.

      2.  The Commissioner may adopt regulations to:

      (a) Set standards and criteria for early warning that the continued operation of a health maintenance organization may be hazardous to its enrollees or creditors or to the general public; and

      (b) For the purposes of subsection 1, set standards for evaluating the financial condition of a health maintenance organization.

      3.  The authority conferred upon the Commissioner pursuant to this section is in addition to the authority of the Commissioner pursuant to chapter 696B of NRS. Any order issued by the Commissioner pursuant to this section may, at the discretion of the Commissioner, be in addition to any order issued by the Commissioner pursuant to chapter 696B of NRS.

      Sec. 146. 1.  Any conservation, rehabilitation or liquidation of a health maintenance organization shall be deemed to be the conservation, rehabilitation or liquidation of an insurer and must be conducted under the supervision of the Commissioner pursuant to chapter 696B of NRS.

 


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      2.  The Commissioner may apply to a court of competent jurisdiction for an order directing the Commissioner to conserve, rehabilitate or liquidate a health maintenance organization:

      (a) Upon any ground provided in chapter 696B of NRS; or

      (b) If, as determined by the Commissioner, the continued operation of the health maintenance organization is or may be hazardous to its enrollees or creditors or to the general public.

      3.  In the event of a rehabilitation or liquidation of a health maintenance organization, a claim of an enrollee or of a beneficiary of an enrollee shall be deemed to have the same priority as would be provided to a claim of a policyholder or insured of an insurer, or of a beneficiary of such a policyholder or insured, in the event of the rehabilitation or liquidation of the insurer.

      4.  In the event of a distribution of the general assets of a health maintenance organization:

      (a) If an enrollee is liable to a provider for health care services provided pursuant to and covered by the applicable health care plan, that liability shall be deemed to be a claim of the enrollee for distribution of the general assets of the health maintenance organization.

      (b) A provider under contract with the health maintenance organization who is obligated by law or contract to hold an enrollee harmless from liability for health care services provided pursuant to and covered by the applicable health care plan shall be deemed to have a priority for distribution of the general assets of the health maintenance organization immediately following that of an enrollee as described in this section and immediately preceding any other priority for distribution which, pursuant to this section and chapter 696B of NRS, would follow that of an enrollee.

      Sec. 147. NRS 695C.055 is hereby amended to read as follows:

      695C.055  1.  The provisions of NRS 449.465, 679A.200, 679B.700, subsections 6 and 7 of NRS 680A.270, subsections 2, 4, 18, 19 and 32 of NRS 680B.010, NRS 680B.020 to 680B.060, inclusive, chapter 686A of NRS, NRS 687B.500 and [chapter] chapters 692C and 695G of NRS apply to a health maintenance organization.

      2.  For the purposes of subsection 1, unless the context requires that a provision apply only to insurers, any reference in those sections to “insurer” must be replaced by “health maintenance organization.”

      Sec. 148. NRS 695C.080 is hereby amended to read as follows:

      695C.080  1.  The Commissioner shall determine whether the applicant for a certificate of authority, with respect to health care services to be furnished:

      (a) Has demonstrated the willingness and ability to ensure that such health care services will be provided in a manner to ensure both availability and accessibility of adequate personnel and facilities and in a manner enhancing availability, accessibility and continuity of service;

      (b) Has organizational arrangements, established in accordance with regulations promulgated by the Commissioner ; [and in consultation with the State Board of Health;] and

      (c) Has a procedure established in accordance with regulations of the Commissioner to develop, compile, evaluate and report statistics relating to the cost of its operations, the pattern of utilization of its services, the availability and accessibility of its services and such other matters as may be reasonably required by the Commissioner.

 


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the cost of its operations, the pattern of utilization of its services, the availability and accessibility of its services and such other matters as may be reasonably required by the Commissioner.

      2.  Within 90 days of receipt of the application for issuance of a certificate of authority, the Commissioner shall certify whether the proposed health maintenance organization meets the requirements of subsection 1. If the Commissioner certifies that the health maintenance organization does not meet such requirements, it shall specify in what respects it is deficient.

      Sec. 149. NRS 695C.310 is hereby amended to read as follows:

      695C.310  1.  The Commissioner shall make an examination of the affairs of any health maintenance organization and providers with whom such organization has contracts, agreements or other arrangements pursuant to its health care plan as often as the Commissioner deems it necessary for the protection of the interests of the people of this State [. An examination must be made] , but not less frequently than once every 3 years.

      2.  The Commissioner shall make an examination concerning [the quality of health care services of any health maintenance organization and providers with whom such organization has contracts, agreements or other arrangements pursuant to its health care plan] any compliance program used by a health maintenance organization and any report, as determined to be appropriate by the Commissioner, regarding the health maintenance organization produced by an organization which examines best practices in the insurance industry. The Commissioner shall make such an examination as often as [it] the Commissioner deems it necessary for the protection of the interests of the people of this State [. An examination must be made] , but not less frequently than once every 3 years.

      3.  [Every] In making an examination pursuant to subsection 1 or 2, the Commissioner:

      (a) Shall determine whether the health maintenance organization is in compliance with this Code, including, without limitation, whether any relationship or transaction between the health maintenance organization and any another health maintenance organization is in compliance with this Code; and

      (b) May examine any account, record, document or transaction of any health maintenance organization or any provider which relates to:

             (1) Compliance with this Code by the health maintenance organization which is the subject of the examination;

             (2) Any relationship or transaction between the health maintenance organization which is the subject of the examination and any other health maintenance organization; or

             (3) Any relationship or transaction between the health maintenance organization which is the subject of the examination and any provider.

      4.  Except as otherwise provided in this subsection, for the purposes of an examination pursuant to subsection 1 or 2, each health maintenance organization and provider shall , upon the request of the Commissioner or an examiner designated by the Commissioner, submit its books and records relating to [the] any applicable health care plan to [an examination made pursuant to subsection 1 or 2 and in every way facilitate the examination.] the Commissioner or the examiner, as applicable. Medical records of natural persons and records of physicians providing service pursuant to a contract [to the] with a health maintenance organization are not subject to such examination, although the records , except privileged medical information, are subject to subpoena upon a showing of good cause.

 


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contract [to the] with a health maintenance organization are not subject to such examination, although the records , except privileged medical information, are subject to subpoena upon a showing of good cause. For the purpose of examinations, the Commissioner may administer oaths to, and examine the officers and agents of [the] a health maintenance organization and the principals of [such] providers concerning their business.

      [4.]5.  The expenses of examinations pursuant to this section must be assessed against the health maintenance organization being examined and remitted to the Commissioner.

      [5.]6.  In lieu of [such] an examination [,] pursuant to this section, the Commissioner may accept the report of an examination made by the insurance commissioner [or the state board of health] of another state [.] or an applicable regulatory agency of another state.

      Sec. 150. NRS 695C.330 is hereby amended to read as follows:

      695C.330  1.  The Commissioner may suspend or revoke any certificate of authority issued to a health maintenance organization pursuant to the provisions of this chapter if the Commissioner finds that any of the following conditions exist:

      (a) The health maintenance organization is operating significantly in contravention of its basic organizational document, its health care plan or in a manner contrary to that described in and reasonably inferred from any other information submitted pursuant to NRS 695C.060, 695C.070 and 695C.140, unless any amendments to those submissions have been filed with and approved by the Commissioner;

      (b) The health maintenance organization issues evidence of coverage or uses a schedule of charges for health care services which do not comply with the requirements of NRS 695C.1691 to 695C.200, inclusive, or 695C.207;

      (c) The health care plan does not furnish comprehensive health care services as provided for in NRS 695C.060;

      (d) The Commissioner certifies that the health maintenance organization:

             (1) Does not meet the requirements of subsection 1 of NRS 695C.080; or

             (2) Is unable to fulfill its obligations to furnish health care services as required under its health care plan;

      (e) The health maintenance organization is no longer financially responsible and may reasonably be expected to be unable to meet its obligations to enrollees or prospective enrollees;

      (f) The health maintenance organization has failed to put into effect a mechanism affording the enrollees an opportunity to participate in matters relating to the content of programs pursuant to NRS 695C.110;

      (g) The health maintenance organization has failed to put into effect the system required by NRS 695C.260 for:

             (1) Resolving complaints in a manner reasonably to dispose of valid complaints; and

             (2) Conducting external reviews of adverse determinations that comply with the provisions of NRS 695G.241 to 695G.310, inclusive;

      (h) The health maintenance organization or any person on its behalf has advertised or merchandised its services in an untrue, misrepresentative, misleading, deceptive or unfair manner;

      (i) The continued operation of the health maintenance organization would be hazardous to its enrollees [;] or creditors or to the general public;

 


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      (j) The health maintenance organization fails to provide the coverage required by NRS 695C.1691; or

      (k) The health maintenance organization has otherwise failed to comply substantially with the provisions of this chapter.

      2.  A certificate of authority must be suspended or revoked only after compliance with the requirements of NRS 695C.340.

      3.  If the certificate of authority of a health maintenance organization is suspended, the health maintenance organization shall not, during the period of that suspension, enroll any additional groups or new individual contracts, unless those groups or persons were contracted for before the date of suspension.

      4.  If the certificate of authority of a health maintenance organization is revoked, the organization shall proceed, immediately following the effective date of the order of revocation, to wind up its affairs and shall conduct no further business except as may be essential to the orderly conclusion of the affairs of the organization. It shall engage in no further advertising or solicitation of any kind. The Commissioner may, by written order, permit such further operation of the organization as the Commissioner may find to be in the best interest of enrollees to the end that enrollees are afforded the greatest practical opportunity to obtain continuing coverage for health care.

      Sec. 151. Chapter 695D of NRS is hereby amended by adding thereto the provisions set forth as sections 152 and 153 of this act.

      Sec. 152. 1.  The Commissioner may adopt regulations to define when an organization for dental care is considered to be in a hazardous financial condition and to set forth the standards to be considered by the Commissioner in determining whether the continued operation of an organization for dental care transacting business in this State may be considered to be hazardous to its members or creditors or to the general public.

      2.  If the Commissioner determines after a hearing that any organization for dental care is in a hazardous financial condition, the Commissioner may, instead of suspending or revoking the certificate of authority of the organization, limit the certificate of authority as the Commissioner deems reasonably necessary to correct, eliminate or remedy any conduct, condition or ground that is deemed to be a cause of the hazardous financial condition.

      3.  An order or decision of the Commissioner under this section is subject to review in accordance with NRS 679B.310 to 679B.370, inclusive, at the request of any party to the proceedings whose interests are substantially affected.

      Sec. 153. Each organization for dental care which receives a certificate of authority shall maintain a capital account with a net worth of not less than $500,000 unless a lesser amount is permitted in writing by the Commissioner. The account must not be obligated for any accrued liabilities and must consist of cash, securities or a combination thereof which is acceptable to the Commissioner.

      Sec. 154. NRS 695D.095 is hereby amended to read as follows:

      695D.095  1.  An organization for dental care is not exempt from the provisions of NRS 679B.700. If an organization is an admitted health insurer, as that term is defined in NRS 449.450, it is not exempt from the fees imposed pursuant to NRS 449.465.

 


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      2.  For the purposes of this section and the provisions set forth in subsection 1, an organization for dental care is included in the meaning of the term “insurer.”

      Sec. 155. NRS 695D.170 is hereby amended to read as follows:

      695D.170  1.  [Before] Except as otherwise provided in this section, before a certificate of authority may be issued to an organization for dental care:

      (a) The officers responsible for operating the organization must file with the Commissioner a collective fidelity bond for $1,000,000; and

      (b) The organization must file with the Commissioner a surety bond in the sum of [$250,000] $500,000 or deposit with the Commissioner cash or securities acceptable to the Commissioner in the sum of [$250,000,] $500,000,

Κ to guarantee the organization’s performance pursuant to this chapter.

      2.  If the bond is furnished in:

      (a) Cash, the Commissioner shall deposit the money in the State Treasury for credit to the Fund for Bonds of Organizations for Dental Care which is hereby created as a trust fund.

      (b) Negotiable securities, the principal must be placed without restriction at the disposal of the Commissioner, but any income must inure to the benefit of the organization.

      3.  The Commissioner may reduce the required amount of the organization’s surety bond or deposit:

      (a) To $125,000, if the obligations assumed by the organization under the plan can be satisfied for less than $125,000.

      (b) To any amount if the organization demonstrates that it has commitments of money from federal, state or municipal governments or their political subdivisions or other comparable resources which are sufficient to ensure the ability of the organization to satisfy its obligations.

      4.  The Commissioner may increase the required amount of the organization’s surety bond or deposit to any amount the Commissioner determines to be appropriate pursuant to subsection 5 if the Commissioner determines that the current level of the surety bond or deposit is insufficient to provide protection to the members in the event of:

      (a) Insolvency; or

      (b) A determination by the Commissioner that the organization is in a hazardous financial condition.

      5.  When determining the appropriate amount of an increase pursuant to subsection 4, the Commissioner must base his or her determination on the type, volume and nature of premiums written and premiums assumed by the organization.

      6.  The amount of the organization’s surety bond or deposit required pursuant to this section:

      (a) Is in addition to any reserve required by this chapter and any reserve established by the organization according to good business and accounting practices for incurred but unreported claims and other similar claims;

      (b) May increase the amount of net worth required pursuant to this chapter; and

      (c) May increase the amount of risk-based capital required pursuant to NRS 681B.550.

 


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      7.  Any final judgment against the organization which is unpaid is a lien on the surety bond or deposit and is subject to execution 30 days after entry of the judgment. Any surety bond or deposit which is reduced by this lien must be increased by the organization to the amount required by this section within 90 days after the judgment is paid.

      [5.]8.  If an organization is dissolved, liquidated or otherwise terminated:

      (a) That amount of the surety bond or deposit which is necessary to satisfy the outstanding obligations of the organization may not be withdrawn for at least 3 years after the certificate of authority has been terminated.

      (b) Any balance remaining after money has been withheld to pay the organization’s debts and liens must be paid to the organization by the Commissioner no later than 90 days after the certificate of authority has been terminated.

      Sec. 156. Chapter 695F of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  The Commissioner may adopt regulations to define when a prepaid limited health service organization is considered to be in a hazardous financial condition and to set forth the standards to be considered by the Commissioner in determining whether the continued operation of a prepaid limited health service organization transacting business in this State may be considered to be hazardous to its enrollees or creditors or to the general public.

      2.  If the Commissioner determines after a hearing that any prepaid limited health service organization is in a hazardous financial condition, the Commissioner may, instead of suspending or revoking the prepaid limited health service organization’s certificate of authority, limit the certificate of authority of the prepaid limited health service organization as the Commissioner deems reasonably necessary to correct, eliminate or remedy any conduct, condition or ground that is deemed to be a cause of the hazardous financial condition.

      3.  An order or decision of the Commissioner under this section is subject to review in accordance with NRS 679B.310 to 679B.370, inclusive, at the request of any party to the proceedings whose interests are substantially affected.

      Sec. 157. NRS 695F.090 is hereby amended to read as follows:

      695F.090  1.  Prepaid limited health service organizations are subject to the provisions of this chapter and to the following provisions, to the extent reasonably applicable:

      [1.](a) NRS 687B.310 to 687B.420, inclusive, concerning cancellation and nonrenewal of policies.

      [2.](b) NRS 687B.122 to 687B.128, inclusive, concerning readability of policies.

      [3.](c) The requirements of NRS 679B.152.

      [4.](d) The fees imposed pursuant to NRS 449.465.

      [5.](e) NRS 686A.010 to 686A.310, inclusive, concerning trade practices and frauds.

      [6.](f) The assessment imposed pursuant to NRS 679B.700.

      [7.](g) Chapter 683A of NRS.

      [8.](h) To the extent applicable, the provisions of NRS 689B.340 to 689B.580, inclusive, and chapter 689C of NRS relating to the portability and availability of health insurance.

 


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      [9.](i) NRS 689A.035, 689A.0463, 689A.410, 689A.413 and 689A.415.

      [10.](j) NRS 680B.025 to 680B.039, inclusive, concerning premium tax, premium tax rate, annual report and estimated quarterly tax payments. For the purposes of this subsection, unless the context otherwise requires that a section apply only to insurers, any reference in those sections to “insurer” must be replaced by a reference to “prepaid limited health service organization.”

      [11.](k) Chapter 692C of NRS, concerning holding companies.

      [12.] (l) NRS 689A.637, concerning health centers.

      2.  For the purposes of this section and the provisions set forth in subsection 1, a prepaid limited health service organization is included in the meaning of the term “insurer.”

      Sec. 158. NRS 695F.200 is hereby amended to read as follows:

      695F.200  [Each]

      1.  Except as otherwise provided in this section, each prepaid limited health service organization which receives a certificate of authority shall maintain a:

      [1.](a) Capital account with a net worth of not less than [$200,000] $500,000 unless a lesser amount is permitted in writing by the Commissioner. The account must not be obligated for any accrued liabilities and must consist of cash, securities or a combination thereof which is acceptable to the Commissioner.

      [2.](b) Surety bond or deposit of cash or securities for the protection of enrollees of not less than [$250,000.] $500,000.

      2.  The Commissioner may increase the required amount of the organization’s capital account and the surety bond or deposit to any amounts the Commissioner determines to be appropriate pursuant to subsection 3 if the Commissioner determines that such an increase is necessary to:

      (a) Assist the Commissioner in the performance of his or her regulatory duties;

      (b) Ensure that the organization complies with the requirements of this Code; or

      (c) Ensure the solvency of the organization.

      3.  When determining the appropriate amount of an increase pursuant to subsection 2, the Commissioner must base his or her determination on the type, volume and nature of premiums written and premiums assumed by the organization.

      4.  The amount of the organization’s capital account and surety bond or deposit required pursuant to this section:

      (a) Is in addition to any reserve required by this chapter and any reserve established by the organization according to good business and accounting practices for incurred but unreported claims and other similar claims; and

      (b) May increase the amount of risk-based capital required pursuant to NRS 681B.550.

      5.  The amount of the organization’s surety bond or deposit required pursuant to this section may increase the amount of net worth required pursuant to this section.

 


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      Sec. 159. NRS 695G.130 is hereby amended to read as follows:

      695G.130  1.  In addition to any other report which is required to be filed with the Commissioner, each managed care organization shall file with the Commissioner, [on or before March 1 of each year,] with its annual filing made pursuant to NRS 686B.070 of forms and rates relating to policies of insurance for individuals and small employer groups, a report regarding its methods for reviewing the quality of health care services provided to its insureds.

      [2.  Each managed care organization shall include in its report the criteria, data, benchmarks or studies used to:

      (a) Assess the nature, scope, quality and accessibility of health care services provided to insureds; or

      (b) Determine any reduction or modification of the provision of health care services to insureds.

      3.  Except as already required to be filed with the Commissioner, if the managed care organization is not owned and operated by a public entity and has more than 100 insureds, the report filed pursuant to subsection 1 must include:

      (a) A copy of all of its quarterly and annual financial reports;

      (b) A statement of any financial interest it has in any other business which is related to health care that is greater than 5 percent of that business or $5,000, whichever is less; and

      (c) A description of each complaint filed with or against it that resulted in arbitration, a lawsuit or other legal proceeding, unless disclosure is prohibited by law or a court order.

      4.]  The report must be submitted on a form prescribed by the Commissioner.

      2.  A report filed pursuant to this section must be made available for public inspection within a reasonable time after it is received by the Commissioner.

      3.  As used in this section, “small employer” has the meaning ascribed to it in NRS 689C.095.

      Sec. 160. NRS 695G.200 is hereby amended to read as follows:

      695G.200  1.  Each managed care organization shall establish a system for resolving complaints of an insured concerning:

      (a) Payment or reimbursement for covered health care services;

      (b) Availability, delivery or quality of covered health care services, including, without limitation, an adverse determination made pursuant to utilization review; or

      (c) The terms and conditions of a health care plan.

Κ The system must be approved by the Commissioner . [in consultation with the State Board of Health.]

      2.  If an insured makes an oral complaint, a managed care organization shall inform the insured that if the insured is not satisfied with the resolution of the complaint, the insured must file the complaint in writing to receive further review of the complaint.

      3.  Each managed care organization shall:

      (a) Upon request, assign an employee of the managed care organization to assist an insured or other person in filing a complaint or appealing a decision of the review board;

 


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      (b) Authorize an insured who appeals a decision of the review board to appear before the review board to present testimony at a hearing concerning the appeal; and

      (c) Authorize an insured to introduce any documentation into evidence at a hearing of a review board and require an insured to provide the documentation required by the health care plan of the insured to the review board not later than 5 business days before a hearing of the review board.

      4.  The Commissioner may examine the system for resolving complaints established pursuant to this section at such times as [either] the Commissioner deems necessary or appropriate.

      Sec. 161. NRS 695G.220 is hereby amended to read as follows:

      695G.220  1.  Each managed care organization shall submit to the Commissioner an annual report regarding its system for resolving complaints established pursuant to NRS 695G.200 on a form prescribed by the Commissioner [in consultation with the State Board of Health] which includes, without limitation:

      (a) A description of the procedures used for resolving complaints of an insured;

      (b) The total number of complaints and appeals handled through the system for resolving complaints since the last report and a compilation of the causes underlying the complaints filed;

      (c) The current status of each complaint and appeal filed; and

      (d) The average amount of time that was needed to resolve a complaint and an appeal, if any.

      2.  Each managed care organization shall maintain records of complaints filed with it which concern something other than health care services and shall submit to the Commissioner a report summarizing such complaints at such times and in such format as the Commissioner may require.

      Sec. 162. (Deleted by amendment.)

      Sec. 163. NRS 239.010 is hereby amended to read as follows:

      239.010  1.  Except as otherwise provided in this section and NRS 1.4683, 1.4687, 1A.110, 41.071, 49.095, 62D.420, 62D.440, 62E.516, 62E.620, 62H.025, 62H.030, 62H.170, 62H.220, 62H.320, 75A.100, 75A.150, 76.160, 78.152, 80.113, 81.850, 82.183, 86.246, 86.54615, 87.515, 87.5413, 87A.200, 87A.580, 87A.640, 88.3355, 88.5927, 88.6067, 88A.345, 88A.7345, 89.045, 89.251, 90.730, 91.160, 116.757, 116A.270, 116B.880, 118B.026, 119.260, 119.265, 119.267, 119.280, 119A.280, 119A.653, 119B.370, 119B.382, 120A.690, 125.130, 125B.140, 126.141, 126.161, 126.163, 126.730, 127.007, 127.057, 127.130, 127.140, 127.2817, 130.312, 130.712, 136.050, 159.044, 172.075, 172.245, 176.015, 176.0625, 176.09129, 176.156, 176A.630, 178.39801, 178.4715, 178.5691, 179.495, 179A.070, 179A.165, 179A.450, 179D.160, 200.3771, 200.3772, 200.5095, 200.604, 202.3662, 205.4651, 209.392, 209.3925, 209.419, 209.521, 211A.140, 213.010, 213.040, 213.095, 213.131, 217.105, 217.110, 217.464, 217.475, 218A.350, 218E.625, 218F.150, 218G.130, 218G.240, 218G.350, 228.270, 228.450, 228.495, 228.570, 231.069, 231.1473, 233.190, 237.300, 239.0105, 239.0113, 239B.030, 239B.040, 239B.050, 239C.140, 239C.210, 239C.230, 239C.250, 239C.270, 240.007, 241.020, 241.030, 241.039, 242.105, 244.264, 244.335, 250.087, 250.130, 250.140, 250.150, 268.095, 268.490, 268.910, 271A.105, 281.195, 281A.350, 281A.440, 281A.550, 284.4068, 286.110, 287.0438, 289.025, 289.080, 289.387, 289.830, 293.5002, 293.503, 293.558, 293B.135, 293D.510, 331.110, 332.061, 332.351, 333.333, 333.335, 338.070, 338.1379, 338.16925, 338.1725, 338.1727, 348.420, 349.597, 349.775, 353.205, 353A.049, 353A.085, 353A.100, 353C.240, 360.240, 360.247, 360.

 


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κ2017 Statutes of Nevada, Page 2403 (CHAPTER 376, AB 83)κ

 

332.351, 333.333, 333.335, 338.070, 338.1379, 338.16925, 338.1725, 338.1727, 348.420, 349.597, 349.775, 353.205, 353A.049, 353A.085, 353A.100, 353C.240, 360.240, 360.247, 360.255, 360.755, 361.044, 361.610, 365.138, 366.160, 368A.180, 372A.080, 378.290, 378.300, 379.008, 385A.830, 385B.100, 387.626, 387.631, 388.1455, 388.259, 388.501, 388.503, 388.513, 388.750, 391.035, 392.029, 392.147, 392.264, 392.271, 392.850, 394.167, 394.1698, 394.447, 394.460, 394.465, 396.3295, 396.405, 396.525, 396.535, 398.403, 408.3885, 408.3886, 408.3888, 408.5484, 412.153, 416.070, 422.2749, 422.305, 422A.342, 422A.350, 425.400, 427A.1236, 427A.872, 432.205, 432B.175, 432B.280, 432B.290, 432B.407, 432B.430, 432B.560, 433.534, 433A.360, 439.840, 439B.420, 440.170, 441A.195, 441A.220, 441A.230, 442.330, 442.395, 445A.665, 445B.570, 449.209, 449.245, 449.720, 450.140, 453.164, 453.720, 453A.610, 453A.700, 458.055, 458.280, 459.050, 459.3866, 459.555, 459.7056, 459.846, 463.120, 463.15993, 463.240, 463.3403, 463.3407, 463.790, 467.1005, 480.365, 481.063, 482.170, 482.5536, 483.340, 483.363, 483.575, 483.659, 483.800, 484E.070, 485.316, 503.452, 522.040, 534A.031, 561.285, 571.160, 584.583, 584.655, 587.877, 598.0964, 598.098, 598A.110, 599B.090, 603.070, 603A.210, 604A.710, 612.265, 616B.012, 616B.015, 616B.315, 616B.350, 618.341, 618.425, 622.310, 623.131, 623A.137, 624.110, 624.265, 624.327, 625.425, 625A.185, 628.418, 628B.230, 628B.760, 629.047, 629.069, 630.133, 630.30665, 630.336, 630A.555, 631.368, 632.121, 632.125, 632.405, 633.283, 633.301, 633.524, 634.055, 634.214, 634A.185, 635.158, 636.107, 637.085, 637B.288, 638.087, 638.089, 639.2485, 639.570, 640.075, 640A.220, 640B.730, 640C.400, 640C.745, 640C.760, 640D.190, 640E.340, 641.090, 641A.191, 641B.170, 641C.760, 642.524, 643.189, 644.446, 645.180, 645.625, 645A.050, 645A.082, 645B.060, 645B.092, 645C.220, 645C.225, 645D.130, 645D.135, 645E.300, 645E.375, 645G.510, 645H.320, 645H.330, 647.0945, 647.0947, 648.033, 648.197, 649.065, 649.067, 652.228, 654.110, 656.105, 661.115, 665.130, 665.133, 669.275, 669.285, 669A.310, 671.170, 673.430, 675.380, 676A.340, 676A.370, 677.243, 679B.122, 679B.152, 679B.159, 679B.190, 679B.285, 679B.690, 680A.270, 681A.440, 681B.260, 681B.410, 681B.540, 683A.0873, 685A.077, 686A.289, 686B.170, 686C.306, 687A.110, 687A.115, 687C.010, 688C.230, 688C.480, 688C.490, 692A.117, 692C.190, 692C.3536, 692C.3538, 692C.354, 692C.420, 693A.480, 693A.615, 696B.550, 703.196, 704B.320, 704B.325, 706.1725, 706A.230, 710.159, 711.600, and sections 8 and 92 of this act, sections 35, 38 and 41 of chapter 478, Statutes of Nevada 2011 and section 2 of chapter 391, Statutes of Nevada 2013 and unless otherwise declared by law to be confidential, all public books and public records of a governmental entity must be open at all times during office hours to inspection by any person, and may be fully copied or an abstract or memorandum may be prepared from those public books and public records. Any such copies, abstracts or memoranda may be used to supply the general public with copies, abstracts or memoranda of the records or may be used in any other way to the advantage of the governmental entity or of the general public. This section does not supersede or in any manner affect the federal laws governing copyrights or enlarge, diminish or affect in any other manner the rights of a person in any written book or record which is copyrighted pursuant to federal law.

 


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κ2017 Statutes of Nevada, Page 2404 (CHAPTER 376, AB 83)κ

 

      2.  A governmental entity may not reject a book or record which is copyrighted solely because it is copyrighted.

      3.  A governmental entity that has legal custody or control of a public book or record shall not deny a request made pursuant to subsection 1 to inspect or copy or receive a copy of a public book or record on the basis that the requested public book or record contains information that is confidential if the governmental entity can redact, delete, conceal or separate the confidential information from the information included in the public book or record that is not otherwise confidential.

      4.  A person may request a copy of a public record in any medium in which the public record is readily available. An officer, employee or agent of a governmental entity who has legal custody or control of a public record:

      (a) Shall not refuse to provide a copy of that public record in a readily available medium because the officer, employee or agent has already prepared or would prefer to provide the copy in a different medium.

      (b) Except as otherwise provided in NRS 239.030, shall, upon request, prepare the copy of the public record and shall not require the person who has requested the copy to prepare the copy himself or herself.

      Sec. 164. NRS 266.355 is hereby amended to read as follows:

      266.355  1.  Except as otherwise provided in subsections 3, 4 and 5, the city council may:

      (a) Except as otherwise provided in NRS 268.0881 to 268.0888, inclusive, 598D.150 and 640C.100, regulate all businesses, trades and professions.

      (b) Except as otherwise provided in NRS 576.128, fix, impose and collect a license tax for revenue upon all businesses, trades and professions.

      2.  The city council may establish any equitable standard to be used in fixing license taxes required to be collected pursuant to this section.

      3.  The city council may license insurance [agents, brokers,] analysts, adjusters and managing general agents and producers of insurance within the limitations and under the conditions prescribed in NRS 680B.020.

      4.  A city council shall not require that a person who is licensed as a contractor pursuant to chapter 624 of NRS obtain more than one license to engage in the business of contracting or pay more than one license tax related to engaging in the business of contracting, regardless of the number of classifications or subclassifications of licensing for which the person is licensed pursuant to chapter 624 of NRS.

      5.  The city council shall not require a person to obtain a license or pay a license tax on the sole basis that the person is a professional. As used in this subsection, “professional” means a person who:

      (a) Holds a license, certificate, registration, permit or similar type of authorization issued by a regulatory body as defined in NRS 622.060, or who is regulated pursuant to the Nevada Supreme Court Rules; and

      (b) Practices his or her profession for any type of compensation as an employee.

      Sec. 165. NRS 269.170 is hereby amended to read as follows:

      269.170  1.  Except as otherwise provided in subsection 5 and NRS 576.128, 598D.150 and 640C.100, the town board or board of county commissioners may, in any unincorporated town:

      (a) Fix and collect a license tax on, and regulate, having due regard to the amount of business done by each person so licensed, and all places of business and amusement so licensed, as follows:

 


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κ2017 Statutes of Nevada, Page 2405 (CHAPTER 376, AB 83)κ

 

             (1) Artisans, artists, assayers, auctioneers, bakers, banks and bankers, barbers, boilermakers, cellars and places where soft drinks are kept or sold, clothes cleaners, foundries, laundries, lumberyards, manufacturers of soap, soda, borax or glue, markets, newspaper publishers, pawnbrokers, funeral directors and wood and coal dealers.

             (2) Bootmakers, cobblers, dressmakers, milliners, shoemakers and tailors.

             (3) Boardinghouses, hotels, lodging houses, restaurants and refreshment saloons.

             (4) Barrooms, gaming, manufacturers of liquors and other beverages, and saloons.

             (5) Billiard tables, bowling alleys, caravans, circuses, concerts and other exhibitions, dance houses, melodeons, menageries, shooting galleries, skating rinks and theaters.

             (6) Corrals, hay yards, livery and sale stables and wagon yards.

             (7) Electric light companies, illuminating gas companies, power companies, telegraph companies, telephone companies and water companies.

             (8) Carts, drays, express companies, freight companies, job wagons, omnibuses and stages.

             (9) Brokers, commission merchants, factors, general agents, mercantile agents, merchants, traders and stockbrokers.

             (10) Drummers, hawkers, peddlers and solicitors.

             (11) Insurance [agents, brokers,] analysts, adjusters and managing general agents and producers of insurance within the limitations and under the conditions prescribed in NRS 680B.020.

      (b) Fix and collect a license tax upon all professions, trades or business within the town not specified in paragraph (a).

      2.  No license to engage in business as a seller of tangible personal property may be granted unless the applicant for the license presents written evidence that:

      (a) The Department of Taxation has issued or will issue a permit for this activity, and this evidence clearly identifies the business by name; or

      (b) Another regulatory agency of the State has issued or will issue a license required for this activity.

      3.  Any license tax levied for the purposes of NRS 244A.597 to 244A.655, inclusive, constitutes a lien upon the real and personal property of the business upon which the tax was levied until the tax is paid. The lien must be enforced in the same manner as liens for ad valorem taxes on real and personal property. The town board or other governing body of the unincorporated town may delegate the power to enforce such liens to the county fair and recreation board.

      4.  The governing body or the county fair and recreation board may agree with the Department of Taxation for the continuing exchange of information concerning taxpayers.

      5.  The town board or board of county commissioners shall not require a person to obtain a license or pay a license tax on the sole basis that the person is a professional. As used in this subsection, “professional” means a person who:

      (a) Holds a license, certificate, registration, permit or similar type of authorization issued by a regulatory body as defined in NRS 622.060, or who is regulated pursuant to the Nevada Supreme Court Rules; and

 


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κ2017 Statutes of Nevada, Page 2406 (CHAPTER 376, AB 83)κ

 

      (b) Practices his or her profession for any type of compensation as an employee.

      Sec. 166. NRS 616A.330 is hereby amended to read as follows:

      616A.330  “Tangible net worth” means the value of all the assets, minus the value of all the liabilities, of a self-insured employer or an association of self-insured private employers [or of a member of such an association] except:

      1.  Goodwill or excess cost over the fair market value of assets.

      2.  Any other items listed in the assets that are deemed unacceptable by the Commissioner because they cannot be justified or because they do not directly support the ability of the self-insured employer or association [or the member] to pay a claim.

      Sec. 166.5.  1.  The provisions of NRS 689A.630, as amended by section 98 of this act, apply to any discontinuation of a product that occurs on or after the effective date of section 98 of this act.

      2.  The provisions of NRS 689B.560, as amended by section 110 of this act, apply to any discontinuation of a product offered to employers that occurs on or after the effective date of section 110 of this act.

      3.  The provisions of NRS 689C.310, as amended by section 112 of this act, apply to any discontinuation of a product offered to small employers that occurs on or after the effective date of section 112 of this act.

      4.  The provisions of NRS 689C.470, as amended by section 114 of this act, apply to any discontinuation of a product offered to a small employer or purchasers pursuant to NRS 689C.360 to 689C.600, inclusive, that occurs on or after the effective date of section 114 of this act.

      Sec. 167.  The provisions of subsection 1 of NRS 218D.380 do not apply to any provision of this act which adds or revises a requirement to submit a report to the Legislature.

      Sec. 168. NRS 680A.290, 689A.390, 689A.400, 689A.690, 689B.027, 689B.028, 689C.270, 689C.280, 689C.330, 689C.440, 689C.450, 690B.370, 695B.172, 695B.174 and 695F.215 are hereby repealed.

      Sec. 169.  1.  Sections 98, 110, 112 and 114 of this act become effective upon passage and approval.

      2.  This section and sections 1 to 97, inclusive, 99 to 109, inclusive, 111, 113, 115 to 152, inclusive, 154, 156, 157 and 159 to 168, inclusive, of this act become effective:

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

      (b) On July 1, 2017, for all other purposes.

      3.  Sections 153, 155 and 158 of this act become effective:

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

      (b) On January 1, 2018, for all other purposes.

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