[Rev. 11/14/2017 11:48:00 AM]

LAWS OF THE STATE OF NEVADA

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ê2017 Statutes of Nevada, Page 1ê

 

LAWS OF THE STATE

OF NEVADA

Passed at the

SEVENTY-NINTH SESSION OF THE LEGISLATURE

2017

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CHAPTER 1, SB 1

Senate Bill No. 1–Senators Ford and Roberson

 

CHAPTER 1

 

[Approved: February 14, 2017]

 

AN ACT making an appropriation to the Legislative Fund for the costs of the 79th Legislative Session; and providing other matters properly relating thereto.

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.  There is hereby appropriated from the State General Fund to the Legislative Fund created by NRS 218A.150 the sum of $15,000,000 for the costs of the 79th Legislative Session.

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

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CHAPTER 2, AB 24

Assembly Bill No. 24–Committee on Education

 

CHAPTER 2

 

[Approved: March 15, 2017]

 

AN ACT relating to the Nevada System of Higher Education; exempting certain students within the System from the assessment of tuition charges; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law authorizes the Board of Regents of the University of Nevada to assess tuition charges against students who are not residents of Nevada at all campuses of the Nevada System of Higher Education. The tuition charges are in addition to registration fees and other fees assessed against students who are residents of this State. Existing law also prohibits the Board of Regents from assessing tuition charges against certain students and veterans. (NRS 396.540) This bill expands the group of students against whom tuition charges must not be assessed by including: (1) students whose parent, legal guardian or spouse is a member of the Armed Forces of the United States who is on active duty and stationed at a military installation in this State or a military installation in another state which has a specific nexus to this State; (2) students whose parent, legal

 


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group of students against whom tuition charges must not be assessed by including: (1) students whose parent, legal guardian or spouse is a member of the Armed Forces of the United States who is on active duty and stationed at a military installation in this State or a military installation in another state which has a specific nexus to this State; (2) students whose parent, legal guardian or spouse is a member of the Armed Forces of the United States who was on active duty and stationed at a military installation in this State or a military installation in another state which has a specific nexus to this State on the date on which the student enrolled at an institution of the System if such students maintain continuous enrollment at an institution of the System; (3) students who are using benefits under the Marine Gunnery Sergeant John David Fry Scholarship (38 U.S.C. § 3311(b)(9)); (4) members of the Armed Forces of the United States who are on active duty and stationed at a military installation in another state which has a specific nexus to this State; and (5) veterans of the Armed Forces of the United States who were honorably discharged and who were on active duty while stationed at a military installation in this State or a military installation in another state which has a specific nexus to this State.

 

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 396.540 is hereby amended to read as follows:

      396.540  1.  For the purposes of this section:

      (a) “Bona fide resident” shall be construed in accordance with the provisions of NRS 10.155 and policies established by the Board of Regents, to the extent that those policies do not conflict with any statute. The qualification “bona fide” is intended to ensure that the residence is genuine and established for purposes other than the avoidance of tuition.

      (b) “Matriculation” has the meaning ascribed to it in regulations adopted by the Board of Regents.

      (c) “Tuition charge” means a charge assessed against students who are not residents of Nevada and which is in addition to registration fees or other fees assessed against students who are residents of Nevada.

      2.  The Board of Regents may fix a tuition charge for students at all campuses of the System, but tuition charges must not be assessed against:

      (a) All students whose families have been bona fide residents of the State of Nevada for at least 12 months before the matriculation of the student at a university, state college or community college within the System;

      (b) All students whose families reside outside of the State of Nevada, providing such students have themselves been bona fide residents of the State of Nevada for at least 12 months before their matriculation at a university, state college or community college within the System;

      (c) All students whose parent, legal guardian or spouse is a member of the Armed Forces of the United States who:

             (1) Is on active duty and stationed at a military installation in the State of Nevada or a military installation in another state which has a specific nexus to this State, including, without limitation, the Marine Corps Mountain Warfare Training Center located at Pickel Meadow, California; or

             (2) Was on active duty and stationed at a military installation in the State of Nevada or a military installation in another state which has a specific nexus to this State, including, without limitation, the Marine Corps Mountain Warfare Training Center located at Pickel Meadow, California, on the date on which the student enrolled at an institution of the System if such students maintain continuous enrollment at an institution of the System;

 


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on the date on which the student enrolled at an institution of the System if such students maintain continuous enrollment at an institution of the System;

      (d) All students who are using benefits under the Marine Gunnery Sergeant John David Fry Scholarship pursuant to 38 U.S.C. § 3311(b)(9);

      (e) All public school teachers who are employed full-time by school districts in the State of Nevada;

      [(d)] (f) All full-time teachers in private elementary, secondary and postsecondary educational institutions in the State of Nevada whose curricula meet the requirements of chapter 394 of NRS;

      [(e)] (g) Employees of the System who take classes other than during their regular working hours;

      [(f)] (h) Members of the Armed Forces of the United States who are on active duty and stationed at a military installation in the State of Nevada [; and

      (g)]or a military installation in another state which has a specific nexus to this State, including, without limitation, the Marine Corps Mountain Warfare Training Center located at Pickel Meadow, California;

      (i) Veterans of the Armed Forces of the United States who were honorably discharged and who were on active duty while stationed at a military installation in the State of Nevada or a military installation in another state which has a specific nexus to this State, including, without limitation, the Marine Corps Mountain Warfare Training Center located at Pickel Meadow, California, on the date of discharge; and

      (j) Except as otherwise provided in subsection 3, veterans of the Armed Forces of the United States who were honorably discharged within the 5 years immediately preceding the date of matriculation of the veteran at a university, state college or community college within the System.

      3.  The Board of Regents may grant more favorable exemptions from tuition charges for veterans of the Armed Forces of the United States who were honorably discharged than the exemption provided pursuant to paragraph [(g)] (j) of subsection 2, if required for the receipt of federal money.

      4.  The Board of Regents may grant exemptions from tuition charges each semester to other worthwhile and deserving students from other states and foreign countries, in a number not to exceed a number equal to 3 percent of the total matriculated enrollment of students for the last preceding fall semester.

      Sec. 2.  This act becomes effective on July 1, 2017.

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CHAPTER 3, SB 70

Senate Bill No. 70–Committee on Government Affairs

 

CHAPTER 3

 

[Approved: March 15, 2017]

 

AN ACT relating to the Department of Veterans Services; revising provisions governing the management of certain abandoned or unclaimed property by the Department; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law requires the Director of the Department of Veterans Services to take possession of abandoned or unclaimed artifacts or other property that has military value for safekeeping and authorizes the Director to transfer such property to a veterans’ or military museum. (NRS 417.090) Under existing law, the Administrator of Unclaimed Property is authorized to destroy or dispose of or transfer unclaimed property in certain circumstances and is required to transfer any unclaimed property that has military value to the Department of Veterans Services upon its request. (NRS 120A.610) This bill expands the entities to which the Director is authorized to transfer abandoned or unclaimed property and expands the type of abandoned or unclaimed property that the Director is required to take possession of for safekeeping to property with historical value. This bill also authorizes the Director to destroy or otherwise dispose of such property that is not transferred and requires the Director to establish and post on the Internet website of the Department the Department’s internal policy for such destruction or disposal.

 

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 417.090 is hereby amended to read as follows:

      417.090  1.  The Director and the Deputy Director shall:

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

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

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

      [4.](d) Coordinate activities of veterans’ organizations.

      [5.](e) Serve as a clearinghouse and disseminate information relating to veterans’ benefits.

 


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

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

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

      [9.](i) Take possession of any abandoned or unclaimed artifacts or other property that has military or historical value for safekeeping. The Director [or Deputy Director] may [transfer] :

             (1) Transfer such an artifact or other property to [a veterans’ or military museum.

      10.] :

                   (I) The Nevada State Museum or the Nevada Historical Society, upon its written request, if the artifact or other property has, in the opinion of the requesting institution, historical value and is worthy of preservation; or

                   (II) Any other governmental agency or nonprofit entity, including, without limitation, a veterans’ organization and the United States Department of Veterans Affairs, upon its written request, if the artifact or other property was not requested by the Nevada State Museum or the Nevada Historical Society; or

             (2) Destroy or otherwise dispose of the artifact or other property.

Ê An action may not be maintained by any person against the holder or former holder of an artifact or other property because of the transfer, destruction or other disposal of the artifact or other property pursuant to this paragraph.

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

      2.  The Director shall:

      (a) Establish an internal policy for guidance to employees of the Department regarding the transfer, destruction or other disposal of artifacts and other property pursuant to paragraph (i) of subsection 1; and

      (b) Post the policy on the Internet website maintained by the Department.

      Sec. 2. NRS 244.406 is hereby amended to read as follows:

      244.406  1.  Except as otherwise provided in this section, the office of coordinator of services for veterans must be supported from money in the county general fund and from any gifts or grants received by the county for the support of the office.

      2.  The board of county commissioners of a county that creates the office of coordinator of services for veterans is authorized to accept funds from the Director of the Department of Veterans Services pursuant to paragraph (h) of subsection [8] 1 of NRS 417.090 for the support of the office.

      3.  The board of county commissioners of a county that creates the office of coordinator of services for veterans may enter into an agreement with the Division of Public and Behavioral Health of the Department of Health and Human Services for the purpose of obtaining federal matching funds to contribute to the salaries and expenses of the office of coordinator of services for veterans for its activities which are reasonably related to the programs of the Division of Public and Behavioral Health and which benefit or result in cost avoidance for the Division.

 


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services for veterans for its activities which are reasonably related to the programs of the Division of Public and Behavioral Health and which benefit or result in cost avoidance for the Division.

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

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CHAPTER 4, SB 58

Senate Bill No. 58–Committee on Government Affairs

 

CHAPTER 4

 

[Approved: March 15, 2017]

 

AN ACT relating to veterans; revising provisions governing the membership of the Interagency Council on Veterans Affairs, the Nevada Veterans Services Commission and certain Advisory Committees; revising provisions relating to the service organizations which the Director and the Deputy Director of the Department of Veterans Services are required to aid and assist; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law creates the Interagency Council on Veterans Affairs and requires the Council to perform various duties relating to the needs of veterans, service members and their families. (NRS 417.0191, 417.0195) The Council consists of the heads of various state agencies and other persons appointed by the Governor. (NRS 417.0191) Section 1 of this bill adds the Administrator of the Division of Human Resource Management of the Department of Administration as a member of the Council.

      Under existing law, the Director and the Deputy Director are required to aid, assist, encourage and cooperate with every nationally recognized service organization with respect to activities that benefit veterans, servicemen and servicewomen. (NRS 417.090) Section 2 of this bill extends this duty to such service organizations recognized in Nevada.

      Under existing law, the Nevada Veterans Services Commission was also created to perform various duties relating to veterans. (NRS 417.147, 417.150, 417.190, 417.400) The Commission consists of nine members, including five members who are representatives of nationally recognized veterans’ organizations. (NRS 417.150) Section 3 of this bill increases the number of members on the Commission to 11, by adding a member who is also a member of the Women Veterans Advisory Committee and a member who is a student veteran pursuing a baccalaureate or higher degree in Nevada. Section 3 also authorizes the appointment of representatives of veterans’ organizations recognized in Nevada as Commission members who are required to be representatives of veterans’ organizations.

      The Advisory Committee for a Veterans Cemetery in Northern Nevada and the Advisory Committee for a Veterans Cemetery in Southern Nevada were created under existing law to consult with the Director of the Department of Veterans Services regarding the establishment, maintenance and operation of those veterans cemeteries. (NRS 417.230) Five of the seven members of each Advisory Committee are required to be from veterans’ organizations in this State and one such member of each Advisory Committee serves on the Nevada Veterans Services Commission. (NRS 417.150, 417.230) Section 4 of this bill clarifies that the veterans’ organizations from which those members of the Advisory Committees are appointed are organizations that are recognized nationally and in this State.

 


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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. NRS 417.0191 is hereby amended to read as follows:

      417.0191  1.  The Interagency Council on Veterans Affairs is hereby created. The Council consists of:

      (a) The Director of the Department of Business and Industry;

      (b) The Director of the Department of Corrections;

      (c) The Director of the Department of Employment, Training and Rehabilitation;

      (d) The Director of the Department of Health and Human Services;

      (e) The Director of the Department of Public Safety;

      (f) The Director of the Department of Veterans Services;

      (g) The Adjutant General;

      (h) The Chancellor of the Nevada System of Higher Education;

      (i) The Executive Director of the Office of Economic Development;

      (j) The Executive Director of the Nevada Indian Commission; [and]

      (k) The Administrator of the Division of Human Resource Management of the Department of Administration; and

      (l) Any other persons appointed by the Governor, including, without limitation, representatives of federal and local governmental agencies and private entities that provide services to veterans. Members appointed pursuant to this paragraph serve at the pleasure of the Governor.

      2.  A member of the Council may designate a person to represent him or her at any meeting of the Council. The person designated may exercise all the duties, rights and privileges of the member that he or she represents.

      Sec. 2. NRS 417.090 is hereby amended to read as follows:

      417.090  The Director and the Deputy Director shall:

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

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

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

      4.  Coordinate activities of veterans’ organizations.

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

 


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

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

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

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

      Sec. 3. NRS 417.150 is hereby amended to read as follows:

      417.150  1.  The Nevada Veterans Services Commission, consisting of [nine] 11 members, is hereby created.

      2.  The Governor shall appoint:

      (a) Three members who are representatives of [nationally recognized] veterans’ organizations recognized nationally or in this State and who possess honorable discharges from some branch of the military and naval service of the United States.

      (b) One member who is a member of the Women Veterans Advisory Committee created by NRS 417.320.

      (c) One member who is enrolled as a student at an institution of higher education in this State in a program for a baccalaureate or higher degree and who possesses an honorable discharge from some branch of the military and naval service of the United States.

      (d) Two members who are representatives of the general public.

      3.  The Chair of the Advisory Committee for a Veterans Cemetery in Northern Nevada and the Chair of the Advisory Committee for a Veterans Cemetery in Southern Nevada shall each appoint one member from their respective committees to serve as a member of the Commission. Each member so appointed must be a representative of a [nationally recognized] veterans’ organization recognized nationally or in this State and possess an honorable discharge from some branch of the military and naval service of the United States.

      4.  The Majority Leader of the Senate shall appoint one member of the Senate to serve as a member of the Commission.

      5.  The Speaker of the Assembly shall appoint one member of the Assembly to serve as a member of the Commission.

      6.  The Governor may remove a member of the Commission at any time for failure to perform his or her duties, malfeasance or other good cause.

      7.  The term of office of each member is 2 years.

      8.  If a vacancy occurs in the membership of those members appointed pursuant to paragraph (a) of subsection 2, the Governor shall fill the vacancy from among the names of qualified nominees provided to the Governor in writing by the Director.

      Sec. 4. NRS 417.230 is hereby amended to read as follows:

      417.230  1.  There are hereby created the Advisory Committee for a Veterans Cemetery in Northern Nevada and the Advisory Committee for a Veterans Cemetery in Southern Nevada, each consisting of seven members as follows:

 


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      (a) One member of the Senate, appointed by the Majority Leader of the Senate.

      (b) One member of the Assembly, appointed by the Speaker of the Assembly.

      (c) Five members of veterans’ organizations recognized nationally or in this State, appointed by the Governor.

      2.  The members of the Committees shall serve terms of 2 years.

      3.  Each Committee shall annually elect a Chair and a Vice Chair from among its members.

      4.  Each Committee shall meet at least 4 times a year.

      5.  Any legislative member of a Committee who is not a candidate for reelection or who is defeated for reelection continues to serve after the general election until the next regular or special session of the Legislature convenes.

      6.  While engaged in the work of the Committee, each member of each Committee is entitled to receive the per diem allowances and travel expenses provided for state officers and employees generally.

      7.  The Director shall consult with each Committee regarding the establishment, maintenance and operation of the veterans’ cemetery for which the Committee was created.

      Sec. 5.  This act becomes effective on July 1, 2017.

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CHAPTER 5, AB 13

Assembly Bill No. 13–Committee on Judiciary

 

CHAPTER 5

 

[Approved: March 30, 2017]

 

AN ACT relating to business; changing the name of the document issued upon payment of the annual fee for conducting business in Nevada from “state business registration” to “state business license”; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law requires each person conducting a business in this state to obtain a state business registration issued by the Secretary of State and pay an annual fee for such registration. (NRS 76.100) Senate Bill No. 59 of the 2015 Session of the Nevada Legislature changed the name of the “state business license” to the “state business registration.” (Sections 4.3, 4.6, 6.5, 7.5 and 12.5 of chapter 521, Statutes of Nevada 2015, pp. 3362-70 and 3375) This bill changes the name “state business registration” back to “state business license.”

 

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 76.030 is hereby amended to read as follows:

      76.030  “State business [registration”] license” means the [registration] business license required pursuant to this chapter.

 


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      Sec. 2. NRS 76.100 is hereby amended to read as follows:

      76.100  1.  A person shall not conduct a business in this State unless and until the person obtains a state business [registration] license issued by the Secretary of State. If the person is:

      (a) An entity required to file an initial or annual list with the Secretary of State pursuant to this title, the person must obtain the state business [registration] license at the time of filing the initial or annual list.

      (b) Not an entity required to file an initial or annual list with the Secretary of State pursuant to this title, the person must obtain the state business [registration] license before conducting a business in this State.

      2.  An application for a state business [registration] license must:

      (a) Be made upon a form prescribed by the Secretary of State;

      (b) Set forth the name under which the applicant transacts or intends to transact business, or if the applicant is an entity organized pursuant to this title and on file with the Secretary of State, the exact name on file with the Secretary of State, the business identification number as assigned by the Secretary of State pursuant to NRS 225.082, and the location in this State of the place or places of business;

      (c) Be accompanied by a fee in the amount of $200, except that if the applicant is a corporation organized pursuant to chapter 78, 78A or 78B of NRS, or a foreign corporation required to file an initial or annual list with the Secretary of State pursuant to chapter 80 of NRS, the application must be accompanied by a fee of $500; and

      (d) Include any other information that the Secretary of State deems necessary.

Ê If the applicant is an entity organized pursuant to this title and on file with the Secretary of State and the applicant has no location in this State of its place of business, the address of its registered agent shall be deemed to be the location in this State of its place of business.

      3.  The application must be signed pursuant to NRS 239.330 by:

      (a) The owner of a business that is owned by a natural person.

      (b) A member or partner of an association or partnership.

      (c) A general partner of a limited partnership.

      (d) A managing partner of a limited-liability partnership.

      (e) A manager or managing member of a limited-liability company.

      (f) An officer of a corporation or some other person specifically authorized by the corporation to sign the application.

      4.  If the application for a state business [registration] license is defective in any respect or the fee required by this section is not paid, the Secretary of State may return the application for correction or payment.

      5.  A state business [registration] license issued pursuant to this section must contain the business identification number assigned by the Secretary of State pursuant to NRS 225.082.

      6.  The state business [registration] license required to be obtained pursuant to this section is in addition to any license to conduct business that must be obtained from the local jurisdiction in which the business is being conducted.

      7.  For the purposes of this chapter, a person:

      (a) Shall be deemed to conduct a business in this State if a business for which the person is responsible:

             (1) Is organized pursuant to this title, other than a business organized pursuant to:

 


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                   (I) Chapter 82 or 84 of NRS; or

                   (II) Chapter 81 of NRS if the business is a nonprofit unit-owners’ association or a nonprofit religious, charitable, fraternal or other organization that qualifies as a tax-exempt organization pursuant to 26 U.S.C. § 501(c);

             (2) Has an office or other base of operations in this State;

             (3) Except as otherwise provided in NRS 76.103, has a registered agent in this State; or

             (4) Pays wages or other remuneration to a natural person who performs in this State any of the duties for which he or she is paid.

      (b) Shall be deemed not to conduct a business in this State if the business for which the person is responsible:

             (1) Is not organized pursuant to this title;

             (2) Does not have an office or base of operations in this State;

             (3) Does not have a registered agent in this State;

             (4) Does not pay wages or other remuneration to a natural person who performs in this State any of the duties for which he or she is paid, other than wages or other remuneration paid to a natural person for performing duties in connection with an activity described in subparagraph (5); and

             (5) Is conducting activity in this State solely to provide vehicles or equipment on a short-term basis in response to a wildland fire, a flood, an earthquake or another emergency.

      8.  As used in this section, “registered agent” has the meaning ascribed to it in NRS 77.230.

      Sec. 3. NRS 244.335 is hereby amended to read as follows:

      244.335  1.  Except as otherwise provided in subsections 2, 3 and 4, and NRS 244.33501, a board of county commissioners may:

      (a) Except as otherwise provided in NRS 244.331 to 244.3345, inclusive, 598D.150 and 640C.100, regulate all character of lawful trades, callings, industries, occupations, professions and business conducted in its county outside of the limits of incorporated cities and towns.

      (b) Except as otherwise provided in NRS 244.3359 and 576.128, fix, impose and collect a license tax for revenue or for regulation, or for both revenue and regulation, on such trades, callings, industries, occupations, professions and business.

      2.  The county license boards have the exclusive power in their respective counties to regulate entertainers employed by an entertainment by referral service and the business of conducting a dancing hall, escort service, entertainment by referral service or gambling game or device permitted by law, outside of an incorporated city. The county license boards may fix, impose and collect license taxes for revenue or for regulation, or for both revenue and regulation, on such employment and businesses.

      3.  A board of county commissioners 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.

      4.  The board of county commissioners or county license board 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:

 


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      (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.

      5.  The county license board shall provide upon request an application for a state business [registration] license pursuant to chapter 76 of NRS. No license to engage in any type of business may be granted unless the applicant for the license:

      (a) Signs an affidavit affirming that the business has complied with the provisions of chapter 76 of NRS; or

      (b) Provides to the county license board the business identification number of the applicant assigned by the Secretary of State pursuant to NRS 225.082 which the county may use to validate that the applicant is currently in good standing with the State and has complied with the provisions of chapter 76 of NRS.

      6.  No license to engage in business as a seller of tangible personal property may be granted unless the applicant for the license:

      (a) Presents written evidence that:

             (1) The Department of Taxation has issued or will issue a permit for this activity, and this evidence clearly identifies the business by name; or

            (2) Another regulatory agency of the State has issued or will issue a license required for this activity; or

      (b) Provides to the county license board the business identification number of the applicant assigned by the Secretary of State pursuant to NRS 225.082 which the county may use to validate that the applicant is currently in good standing with the State and has complied with the provisions of paragraph (a).

      7.  Any license tax levied for the purposes of NRS 244.3358 or 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 has the same priority as a lien for general taxes. The lien must be enforced:

      (a) By recording in the office of the county recorder, within 6 months after the date on which the tax became delinquent or was otherwise determined to be due and owing, a notice of the tax lien containing the following:

             (1) The amount of tax due and the appropriate year;

             (2) The name of the record owner of the property;

             (3) A description of the property sufficient for identification; and

             (4) A verification by the oath of any member of the board of county commissioners or the county fair and recreation board; and

      (b) By an action for foreclosure against the property in the same manner as an action for foreclosure of any other lien, commenced within 2 years after the date of recording of the notice of the tax lien, and accompanied by appropriate notice to other lienholders.

      8.  The board of county commissioners may delegate the authority to enforce liens from taxes levied for the purposes of NRS 244A.597 to 244A.655, inclusive, to the county fair and recreation board. If the authority is so delegated, the board of county commissioners shall revoke or suspend the license of a business upon certification by the county fair and recreation board that the license tax has become delinquent, and shall not reinstate the license until the tax is paid.

 


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license until the tax is paid. Except as otherwise provided in NRS 239.0115 and 244.3357, all information concerning license taxes levied by an ordinance authorized by this section or other information concerning the business affairs or operation of any licensee obtained as a result of the payment of such license taxes or as the result of any audit or examination of the books by any authorized employee of a county fair and recreation board of the county for any license tax levied for the purpose of NRS 244A.597 to 244A.655, inclusive, is confidential and must not be disclosed by any member, officer or employee of the county fair and recreation board or the county imposing the license tax unless the disclosure is authorized by the affirmative action of a majority of the members of the appropriate county fair and recreation board. Continuing disclosure may be so authorized under an agreement with the Department of Taxation or Secretary of State for the exchange of information concerning taxpayers.

      Sec. 4. NRS 268.095 is hereby amended to read as follows:

      268.095  1.  Except as otherwise provided in subsection 4 and NRS 268.0951, the city council or other governing body of each incorporated city in this State, whether organized under general law or special charter, may:

      (a) Except as otherwise provided in subsection 2 and NRS 268.0968 and 576.128, fix, impose and collect for revenues or for regulation, or both, a license tax on all character of lawful trades, callings, industries, occupations, professions and businesses conducted within its corporate limits.

      (b) Assign the proceeds of any one or more of such license taxes to the county within which the city is situated for the purpose or purposes of making the proceeds available to the county:

             (1) As a pledge as additional security for the payment of any general obligation bonds issued pursuant to NRS 244A.597 to 244A.655, inclusive;

             (2) For redeeming any general obligation bonds issued pursuant to NRS 244A.597 to 244A.655, inclusive;

             (3) For defraying the costs of collecting or otherwise administering any such license tax so assigned, of the county fair and recreation board and of officers, agents and employees hired thereby, and of incidentals incurred thereby;

             (4) For operating and maintaining recreational facilities under the jurisdiction of the county fair and recreation board;

             (5) For improving, extending and bettering recreational facilities authorized by NRS 244A.597 to 244A.655, inclusive; and

             (6) For constructing, purchasing or otherwise acquiring such recreational facilities.

      (c) Pledge the proceeds of any tax imposed on the revenues from the rental of transient lodging pursuant to this section for the payment of any general or special obligations issued by the city for a purpose authorized by the laws of this State.

      (d) Use the proceeds of any tax imposed pursuant to this section on the revenues from the rental of transient lodging:

             (1) To pay the principal, interest or any other indebtedness on any general or special obligations issued by the city pursuant to the laws of this State;

             (2) For the expense of operating or maintaining, or both, any facilities of the city; and

             (3) For any other purpose for which other money of the city may be used.

 


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      2.  The city council or other governing body of an incorporated city 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.

      3.  The proceeds of any tax imposed pursuant to this section that are pledged for the repayment of general obligations may be treated as “pledged revenues” for the purposes of NRS 350.020.

      4.  The city council or other governing body of an incorporated city 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.

      5.  The city licensing agency shall provide upon request an application for a state business [registration] license pursuant to chapter 76 of NRS. No license to engage in any type of business may be granted unless the applicant for the license:

      (a) Signs an affidavit affirming that the business has complied with the provisions of chapter 76 of NRS; or

      (b) Provides to the city licensing agency the business identification number of the applicant assigned by the Secretary of State pursuant to NRS 225.082 which the city may use to validate that the applicant is currently in good standing with the State and has complied with the provisions of chapter 76 of NRS.

      6.  No license to engage in business as a seller of tangible personal property may be granted unless the applicant for the license:

      (a) Presents written evidence that:

             (1) The Department of Taxation has issued or will issue a permit for this activity, and this evidence clearly identifies the business by name; or

             (2) Another regulatory agency of the State has issued or will issue a license required for this activity; or

      (b) Provides to the city licensing agency the business identification number of the applicant assigned by the Secretary of State pursuant to NRS 225.082 which the city may use to validate that the applicant is currently in good standing with the State and has complied with the provisions of paragraph (a).

      7.  Any license tax levied under the provisions of this section 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 has the same priority as a lien for general taxes. The lien must be enforced:

      (a) By recording in the office of the county recorder, within 6 months following the date on which the tax became delinquent or was otherwise determined to be due and owing, a notice of the tax lien containing the following:

             (1) The amount of tax due and the appropriate year;

             (2) The name of the record owner of the property;

 


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             (3) A description of the property sufficient for identification; and

             (4) A verification by the oath of any member of the board of county commissioners or the county fair and recreation board; and

      (b) By an action for foreclosure against such property in the same manner as an action for foreclosure of any other lien, commenced within 2 years after the date of recording of the notice of the tax lien, and accompanied by appropriate notice to other lienholders.

      8.  The city council or other governing body of each incorporated city may delegate the power and authority to enforce such liens to the county fair and recreation board. If the authority is so delegated, the governing body shall revoke or suspend the license of a business upon certification by the board that the license tax has become delinquent, and shall not reinstate the license until the tax is paid. Except as otherwise provided in NRS 239.0115 and 268.0966, all information concerning license taxes levied by an ordinance authorized by this section or other information concerning the business affairs or operation of any licensee obtained as a result of the payment of those license taxes or as the result of any audit or examination of the books of the city by any authorized employee of a county fair and recreation board for any license tax levied for the purpose of NRS 244A.597 to 244A.655, inclusive, is confidential and must not be disclosed by any member, official or employee of the county fair and recreation board or the city imposing the license tax unless the disclosure is authorized by the affirmative action of a majority of the members of the appropriate county fair and recreation board. Continuing disclosure may be so authorized under an agreement with the Department of Taxation or the Secretary of State for the exchange of information concerning taxpayers.

      9.  The powers conferred by this section are in addition and supplemental to, and not in substitution for, and the limitations imposed by this section do not affect the powers conferred by, any other law. No part of this section repeals or affects any other law or any part thereof, it being intended that this section provide a separate method of accomplishing its objectives, and not an exclusive one.

      Sec. 5.  The Legislative Counsel shall:

      1.  In preparing the Nevada Revised Statutes, use the authority set forth in subsection 10 of NRS 220.120 to substitute appropriately the term “state business license” for the term “state business registration” as previously used and to substitute appropriately the terms “license,” “licensed” or “licensing” for the terms “register,” “registered” or “registration” as previously used in reference to the issuance of a state business registration; and

      2.  In preparing supplements to the Nevada Administrative Code, substitute appropriately the term “state business license” for the term “state business registration” as previously used and substitute appropriately the terms “license,” “licensed” or “licensing” for the terms “register,” “registered” and “registration” as previously used in reference to the issuance of a state business registration.

      Sec. 6.  This act becomes effective on July 1, 2017.

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CHAPTER 6, AB 9

Assembly Bill No. 9–Committee on Government Affairs

 

CHAPTER 6

 

[Approved: March 30, 2017]

 

AN ACT relating to the Office of the Secretary of State; revising the position of the Administrator of the Securities Division of the Office of the Secretary of State; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law authorizes the Secretary of State to appoint an Administrator of the Securities Division of the Office of the Secretary of State. (NRS 225.170) This bill revises that position to provide that the Administrator of the Division is a deputy of the Secretary of State. Section 1 of this bill authorizes the Secretary of State to appoint a Deputy of Securities. Section 2 of this bill provides that the Deputy of Securities shall serve as the Administrator of the Division. Sections 3 and 4 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 225.060 is hereby amended to read as follows:

      225.060  1.  The Secretary of State may, under his or her hand and seal, appoint an Executive Assistant, a Chief Deputy, a Deputy of Commercial Recordings, a Deputy of Elections , a Deputy of Securities and not more than two additional deputies in the unclassified service of the State as he or she may deem necessary to perform fully the duties of the Office of Secretary of State. The Chief Deputy, Deputy of Commercial Recordings, Deputy of Elections , Deputy of Securities and any other deputies so appointed may perform all the duties required of the Secretary of State.

      2.  For his or her own security, the Secretary of State may require each deputy to give him or her a bond in such sum and with such sureties as the Secretary of State may deem sufficient.

      3.  Except as otherwise provided in NRS 284.143, the persons appointed pursuant to subsection 1 shall devote their entire time and attention to the business of their offices and shall not pursue any other businesses or occupations or hold any other office of profit.

      Sec. 2.  NRS 225.170 is hereby amended to read as follows:

      225.170  1.  There is hereby created within the Office of the Secretary of State a Securities Division. The [Secretary of State shall appoint an] Deputy of Securities shall serve as the Administrator of the Division. [The Administrator of the Division is in the unclassified service of the State.]

      2.  The Secretary of State may, alternatively:

      (a) Use the services of an assigned deputy attorney general as legal counsel for the Division.

      (b) Appoint an attorney as legal counsel for the Division. If appointed, he or she is in the unclassified service of the State.

      (c) Contract for services to be rendered by such other legal counsel as are needed for assistance in administering chapter 90 of NRS.

 


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      3.  Each of the legal counsel must be an attorney admitted to practice law in Nevada.

      Sec. 3.  NRS 90.215 is hereby amended to read as follows:

      90.215  “Administrator” means the [Administrator of the Division.] Deputy of Securities appointed pursuant to NRS 225.060.

      Sec. 4.  NRS 91.030 is hereby amended to read as follows:

      91.030  “Administrator” means the [Administrator of the Securities Division of the Office of the Secretary of State.] Deputy of Securities appointed pursuant to NRS 225.060.

      Sec. 5.  This act becomes effective on July 1, 2017.

________

CHAPTER 7, SB 92

Senate Bill No. 92–Senator Hardy

 

CHAPTER 7

 

[Approved: March 30, 2017]

 

AN ACT relating to public health; removing the prospective expiration of the Task Force on Alzheimer’s Disease; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law establishes the Task Force on Alzheimer’s Disease within the Department of Health and Human Services. (NRS 439.5083) The Task Force: (1) develops, reviews, revises and monitors the implementation of a state plan to address Alzheimer’s disease; and (2) researches and reviews other issues relevant to Alzheimer’s disease. (NRS 439.5085) The Task Force is currently scheduled to expire by limitation on June 30, 2017. (Section 10 of chapter 409, Statutes of Nevada 2013, p. 2256) This bill removes that expiration date, making the Task Force permanent.

 

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. Section 10 of chapter 409, Statutes of Nevada 2013, at page 2256, is hereby amended to read as follows:

       Sec. 10.  This act becomes effective on July 1, 2013 . [, and expires by limitation on June 30, 2017.]

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

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CHAPTER 8, AB 2

Assembly Bill No. 2–Committee on Government Affairs

 

CHAPTER 8

 

[Approved: April 7, 2017]

 

AN ACT relating to the state militia; revising certain provisions relating to the Patriot Relief Account; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law authorizes the payment of various benefits to members of the Nevada National Guard from the Patriot Relief Account, including a member called into active service who is experiencing economic hardship. This bill: (1) limits the payment of benefits from the Account to the extent money is available in the Account; and (2) removes the requirement that monetary relief may be paid for economic hardship only to those members called into active service, thereby expanding eligibility to all members experiencing economic hardship.

 

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 412.1435 is hereby amended to read as follows:

      412.1435  1.  The Patriot Relief Account is hereby created as a special account in the State General Fund.

      2.  The money in the Patriot Relief Account does not lapse to the State General Fund at the end of any fiscal year. The interest and income earned on the sum of:

      (a) The money in the Patriot Relief Account, after deducting any applicable charges; and

      (b) Unexpended appropriations made to the Patriot Relief Account from the State General Fund,

Ê must be credited to the Account. All claims against the Patriot Relief Account must be paid as other claims against the State are paid.

      3.  The Office may accept gifts, grants and donations from any source for deposit in the Patriot Relief Account.

      4.  [The] To the extent money is available from legislative appropriation or otherwise in the Patriot Relief Account, the money in the Patriot Relief Account may only be used to provide:

      (a) Reimbursement to a member of the Nevada National Guard for the cost of:

             (1) Premiums on a policy of group life insurance purchased pursuant to the provisions of 38 U.S.C. §§ 1965 et seq.; or

             (2) Textbooks required for a course of study in which the member is enrolled at an institution within the Nevada System of Higher Education; and

      (b) Monetary relief from economic hardships experienced by a member of the Nevada National Guard . [who has been called into active service.]

 


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      5.  The Adjutant General shall adopt any regulations necessary to determine eligibility for reimbursement or monetary relief from the Patriot Relief Account and to carry out a program to provide such reimbursement and monetary relief.

      Sec. 2.  This act becomes effective on July 1, 2017.

________

CHAPTER 9, AB 99

Assembly Bill No. 99–Assemblymen Araujo; Bilbray-Axelrod, Daly, Diaz, Monroe-Moreno, Neal, Sprinkle, Thompson and Yeager

 

Joint Sponsors: Senators Cancela, Spearman and Woodhouse

 

CHAPTER 9

 

[Approved: April 11, 2017]

 

AN ACT relating to children; requiring certain institutions and agencies to treat a child as having the gender with which the child identifies; requiring certain persons to receive training on working with lesbian, gay, bisexual, transgender and questioning children; requiring the Division of Child and Family Services of the Department of Health and Human Services to establish protocols to follow or factors to consider before placing a child in certain placements; requiring the Division to establish a process for filing and resolving certain grievances; revising the manner in which a foster child is notified of his or her rights; requiring certain facilities to which a juvenile court commits a child to comply with certain federal law; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law authorizes a court to place a child in a public or private institution or agency authorized to care for children. (NRS 62E.110) Such institutions include juvenile detention facilities, foster homes, child care facilities and mental health facilities. (NRS 62B.200, 63.400, 432A.1757, 432B.550, 433B.310) Existing law also provides for the licensure and regulation of foster care agencies, which are business entities that recruit and enter into contracts with foster homes to assist an agency which provides child welfare services and juvenile courts in the placement of children in foster homes. (NRS 424.0135, 424.093-424.270) Additionally, existing law designates as the agency which provides child welfare services: (1) in a county whose population is less than 100,000, the Division of Child and Family Services of the Department of Health and Human Services; and (2) in a county whose population is 100,000 or more, the agency of the county which provides or arranges for necessary child welfare services. (NRS 432B.030)

      Sections 3, 4, 23, 28, 29, 37, 41 and 46 of this bill require each of those institutions and agencies to treat a child for whom the institution or agency is responsible in accordance with the child’s gender identity or expression.

      Existing law requires an employee of such an institution or agency to receive certain training. (NRS 62B.250, 63.190, 424.0365, 424.135, 432A.177, 432B.195, 433B.175) Sections 4, 6, 10, 24, 29, 31, 38, 43 and 47 of this bill require that training to: (1) be approved by the licensing authority or the Division; and (2) include instruction on working with lesbian, gay, bisexual, transgender and questioning children.

 


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      Sections 23, 37, 41 and 46 require the Division to prescribe regulations that a court must consider before placing a child in a child care facility, a facility for the detention of children or a mental health or treatment facility and protocols that such a facility must follow when placing a child within the facility. Section 28 of this bill requires the Division to adopt protocols to ensure that each child in the custody of an agency which provides child welfare services is placed in a manner that is appropriate for the gender identity or expression of the child. Section 28 also requires an agency which provides child welfare services to: (1) follow such protocols when placing a child in an out-of-home placement; and (2) ensure that an out-of-home placement follows such protocols when placing a child within the placement. Sections 3, 4 and 29 require a foster home, foster care agency or facility into which a child alleged to be a child with emotional disturbance who is in the custody of an agency which provides child welfare services is committed to follow such protocols.

      Section 14 of this bill requires the Division to establish a procedure for filing and resolving a grievance concerning a placement, a foster care agency, an agency which provides child welfare services or an agency or institution to which a child is committed by a court.

      Existing law requires a provider of foster care to provide a foster child with a written copy of his or her rights. (NRS 432.540) Section 20 of this bill requires a provider of foster care to provide a foster child with a written summary of those rights.

      The Prison Rape Elimination Act provides for the collection of data, the award of grants and the adoption of standards to prevent rape in correctional institutions. (42 U.S.C. §§ 15601 et seq.) Sections 37 and 41 require certain facilities to which a juvenile court commits a child to adhere to the Prison Rape Elimination Act and any standards adopted pursuant to that 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 424 of NRS is hereby amended by adding thereto the provisions set forth as sections 2, 2.5, 3 and 4 of this act.

      Sec. 2.  (Deleted by amendment.)

      Sec. 2.5. “Gender identity or expression” means a gender-related identity, appearance, expression or behavior of a person, regardless of the person’s assigned sex at birth.

      Sec. 3. A provider of foster care shall:

      1.  Ensure that each foster child who is placed in the foster home is treated in all respects in accordance with the child’s gender identity or expression; and

      2.  Follow the protocols prescribed in the regulations adopted pursuant to section 28 of this act when placing a foster child within the foster home.

      Sec. 4. 1.  The holder of a license to operate a foster care agency shall ensure that each member of the staff of the foster care agency who comes into direct contact with a child placed by the foster care agency receives, within 90 days after employment and annually thereafter, training that has been approved by the licensing authority concerning working with lesbian, gay, bisexual, transgender and questioning children.

      2.  A foster care agency shall:

      (a) Ensure that each child placed by the foster care agency is treated in all respects in accordance with the child’s gender identity or expression; and

 


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ê2017 Statutes of Nevada, Page 21 (Chapter 9, AB 99)ê

 

      (b) Follow the protocols prescribed in the regulations adopted pursuant to section 28 of this act when assisting an agency which provides child welfare services or a juvenile court in placing a child in foster care.

      Sec. 5. NRS 424.010 is hereby amended to read as follows:

      424.010  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 424.011 to 424.018, inclusive, and section 2.5 of this act have the meanings ascribed to them in those sections.

      Sec. 6. NRS 424.0365 is hereby amended to read as follows:

      424.0365  1.  A licensee that operates a family foster home, a specialized foster home, an independent living foster home or a group foster home shall ensure that each employee who comes into direct contact with children in the home receives training within [30] 90 days after employment and annually thereafter. Such training must be approved by the licensing authority and include, without limitation, instruction concerning:

      (a) Controlling the behavior of children;

      (b) Policies and procedures concerning the use of force and restraint on children;

      (c) The rights of children in the home;

      (d) Suicide awareness and prevention;

      (e) The administration of medication to children;

      (f) Applicable state and federal constitutional and statutory rights of children in the home;

      (g) Policies and procedures concerning other matters affecting the health, welfare, safety and civil and other rights of children in the home; [and]

      (h) Working with lesbian, gay, bisexual, transgender and questioning children; and

      (i) Such other matters as required by the licensing authority or pursuant to regulations of the Division.

      2.  The Division shall adopt regulations necessary to carry out the provisions of this section.

      Sec. 7. NRS 424.090 is hereby amended to read as follows:

      424.090  1.  The provisions of NRS 424.020 to 424.090, inclusive, and section 3 of this act do not apply to homes in which:

      [1.](a) Care is provided only for a neighbor’s or friend’s child on an irregular or occasional basis for a brief period, not to exceed 90 days.

      [2.](b) Care is provided by the legal guardian.

      [3.](c) Care is provided for an exchange student.

      [4.](d) Care is provided to enable a child to take advantage of educational facilities that are not available in his or her home community.

      [5.](e) Any child or children are received, cared for and maintained pending completion of proceedings for adoption of such child or children, except as otherwise provided in regulations adopted by the Division.

      [6.](f) Except as otherwise provided in regulations adopted by the Division, care is voluntarily provided to a minor child who is related to the caregiver by blood, adoption or marriage.

      [7.](g) Care is provided to a minor child who is in the custody of an agency which provides child welfare services pursuant to chapter 432B of NRS or a juvenile court pursuant to title 5 of NRS if:

      [(a)](1) The caregiver is related to the child within the fifth degree of consanguinity [;] or a fictive kin; and

      [(b)](2) The caregiver is not licensed pursuant to the provisions of NRS 424.020 to 424.090, inclusive [.] , and section 3 of this act.

 


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      2.  As used in this section, “fictive kin” means a person who is not related by blood to a child but has a significant emotional and positive relationship with the child.

      Sec. 8. NRS 424.095 is hereby amended to read as follows:

      424.095  1.  An application for a license to operate a foster care agency must be in a form prescribed by the Division and submitted to the appropriate licensing authority. Such a license is effective for 2 years after the date of its issuance and may be renewed upon expiration.

      2.  An applicant must provide reasonable and satisfactory assurance to the licensing authority that the applicant will conform to the provisions of NRS 424.093 to 424.270, inclusive, and section 4 of this act, and the regulations adopted by the Division pursuant thereto.

      3.  Upon application for renewal, the licensing authority may renew a license if the licensing authority determines that the licensee conforms to the provisions of NRS 424.093 to 424.270, inclusive, and section 4 of this act, and the regulations adopted by the Division pursuant thereto.

      Sec. 9. NRS 424.096 is hereby amended to read as follows:

      424.096  1.  After notice and hearing, a licensing authority may:

      (a) Deny an application for a license to operate a foster care agency if the licensing authority determines that the applicant does not comply with the provisions of NRS 424.093 to 424.270, inclusive, and section 4 of this act, and the regulations adopted by the Division pursuant thereto.

      (b) Upon a finding of deficiency, require a foster care agency to prepare a plan of corrective action and, within 90 days or a shorter period prescribed by the licensing authority require the foster care agency to complete the plan of corrective action.

      (c) Refuse to renew a license or may revoke a license if the licensing authority finds that the foster care agency has refused or failed to meet any of the established standards or has violated any of the regulations adopted by the Division pursuant to NRS 424.093.

      2.  A notice of the time and place of the hearing must be mailed to the last known address of the applicant or licensee at least 15 days before the date fixed for the hearing.

      3.  When an order of a licensing authority is appealed to the district court, the trial may be de novo.

      Sec. 10. NRS 424.135 is hereby amended to read as follows:

      424.135  1.  The foster care agency shall develop and carry out a written plan for the orientation, training, supervision and evaluation of members of the staff.

      2.  The orientation must include, without limitation, information on the policies and procedures of the foster care agency, goals for the programs and services of the foster care agency, the responsibilities of members of the staff and the provisions of this chapter and the regulations adopted pursuant thereto that relate to licensing. The training must include, without limitation, any training required by the licensing authority [.] and the training required by section 4 of this act. Each member of the staff must be evaluated at least once each year.

      3.  The foster care agency shall maintain comprehensive written policies and procedures for the personnel, services and programs of the foster care agency and make the policies and procedures readily available to the members of the staff and to the licensing authority.

 


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      4.  The foster care agency shall maintain comprehensive records for personnel that, upon request, must be made available to the licensing authority.

      Sec. 11. Chapter 432 of NRS is hereby amended by adding thereto the provisions set forth as sections 12, 13 and 14 of this act.

      Secs. 12 and 13.  (Deleted by amendment.)

      Sec. 14. 1.  The Division shall prescribe by regulation:

      (a) A procedure by which a child or, if applicable, the parent or guardian of a child, may file a grievance concerning a foster care agency, an agency which provides child welfare services, an out-of-home placement, a psychiatric hospital or facility in which a child who is in the custody of an agency which provides child welfare services is placed, a division facility or any public or private institution or agency to which a child is committed by a court; and

      (b) A process for resolving those grievances, which must provide for persons who are not directly responsible for the care of the child who filed or is the subject of the grievance to evaluate the grievance and, if such a person determines that the grievance is not frivolous, investigate the grievance and impose remedies. Such remedies must include, without limitation, requiring the agency or placement, facility or institution to make changes to address the grievance, or notifying a regulatory or law enforcement agency with jurisdiction over the agency, placement, facility or institution.

      2.  An out-of-home placement with which a child in the custody of the agency which provides child welfare services is placed shall:

      (a) Inform the child of the process for filing a grievance pursuant to subsection 1;

      (b) Provide the child with a summary of that process; and

      (c) Provide an additional written copy of the summary upon request.

      3.  As used in this section:

      (a) “Division facility” has the meaning ascribed to it in NRS 433B.070.

      (b) “Foster care agency” has the meaning ascribed to it in NRS 424.0135.

      (c) “Out-of-home placement” means a foster home or child care facility, as defined in NRS 432A.024, which has physical custody of a child pursuant to the order of a court.

      Sec. 15. NRS 432.0125 is hereby amended to read as follows:

      432.0125  1.  The Administrator shall appoint, with the approval of the Director, a chief of each of the bureaus in the Division. The chiefs are designated respectively as:

      (a) The Superintendent of the Nevada Youth Training Center;

      (b) The Superintendent of the Caliente Youth Center; and

      (c) The Chief of the Youth Parole Bureau.

      2.  The Administrator is responsible for the administration, through the Division, of the provisions of chapters 63 and 424 of NRS, NRS 127.220 to 127.310, inclusive, 432.010 to 432.085, inclusive, and 433B.010 to 433B.340, inclusive, and section 46 of this act, and all other provisions of law relating to the functions of the Division, but is not responsible for the professional activities of the components of the Division except as specifically provided by law.

 


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      Sec. 16. NRS 432.500 is hereby amended to read as follows:

      432.500  As used in NRS 432.500 to 432.550, inclusive, and section 14 of this act, unless the context otherwise requires, the words and terms defined in NRS 432.505, 432.510 and 432.515 have the meanings ascribed to them in those sections.

      Secs. 17-19. (Deleted by amendment.)

      Sec. 20. NRS 432.540 is hereby amended to read as follows:

      432.540  1.  A provider of foster care that places a child in a foster home shall:

      (a) Inform the child of his or her rights set forth in NRS 432.525, 432.530 and 432.535;

      (b) Provide the child with a written [copy] summary of those rights; and

      (c) Provide an additional written copy of [those rights] the summary to the child upon request.

      2.  A group foster home shall post a written copy of the [rights set forth in NRS 432.525, 432.530 and 432.535] summary described in subsection 1 and the summary of the process for filing a grievance described in section 14 of this act in a conspicuous place inside the group foster home.

      Sec. 21. (Deleted by amendment.)

      Sec. 22. NRS 432.550 is hereby amended to read as follows:

      432.550  If a child believes that his or her rights set forth in NRS 432.525, 432.530 and 432.535 have been violated, the child may raise and redress a grievance with, without limitation:

      1.  A provider of foster care;

      2.  An employee of a foster home;

      3.  An agency which provides child welfare services to the child, and any employee thereof;

      4.  A juvenile court with jurisdiction over the child;

      5.  A guardian ad litem for the child; [or]

      6.  An attorney for the child [.] ; or

      7.  The Division, using the process established pursuant to section 14 of this act.

      Sec. 23. Chapter 432A of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  A child care facility which occasionally or regularly has physical custody of children pursuant to the order of a court, including, without limitation, an emergency shelter, shall treat each child who is placed in the facility in all respects in accordance with the child’s gender identity or expression.

      2.  The Division of Child and Family Services of the Department shall adopt regulations establishing factors for a court to consider before placing a child in the custody of a child care facility and protocols for a child care facility to follow when placing a child within the facility that ensure that each child who is so placed is placed in a manner that is appropriate for the gender identity or expression of the child. Such regulations must be adopted in consultation with:

      (a) Lesbian, gay, bisexual, transgender and questioning children who are currently residing in foster homes, facilities for the detention of children, child care facilities and mental health facilities or who have resided in such settings;

      (b) Representatives of each agency which provides child welfare services in this State;

 


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      (c) Representatives of state and local facilities for the detention of children;

      (d) Representatives of lesbian, gay, bisexual, transgender and questioning persons;

      (e) Attorneys, including, without limitation, attorneys who regularly represent children in child welfare or criminal proceedings;

      (f) Representatives of juvenile courts and family courts;

      (g) Advocates of children; and

      (h) Any other person deemed appropriate by the Division of Child and Family Services of the Department.

      3.  A court shall consider the factors prescribed in the regulations adopted pursuant to subsection 2 before placing a child in a child care facility.

      4.  A child care facility, including, without limitation, an emergency shelter, which has physical custody of a child pursuant to the order of a court shall follow the protocols prescribed in the regulations adopted pursuant to subsection 2 when placing the child within the facility.

      5.  As used in this section:

      (a) “Agency which provides child welfare services” has the meaning ascribed to it in NRS 432B.030.

      (b) “Foster home” has the meaning ascribed to it in NRS 424.014.

      (c) “Gender identity or expression” has the meaning ascribed to it in section 2.5 of this act.

      Sec. 24. NRS 432A.177 is hereby amended to read as follows:

      432A.177  1.  A licensee that operates a child care facility which occasionally or regularly has physical custody of children pursuant to the order of a court, including, without limitation, an emergency shelter, shall ensure that each employee who comes into direct contact with children in the facility receives training within [30] 90 days after employment and annually thereafter. Such training must be approved by the licensing authority and include, without limitation, instruction concerning:

      (a) Controlling the behavior of children;

      (b) Policies and procedures concerning the use of force and restraint on children;

      (c) The rights of children in the facility;

      (d) Suicide awareness and prevention;

      (e) The administration of medication to children;

      (f) Applicable state and federal constitutional and statutory rights of children in the facility;

      (g) Policies and procedures concerning other matters affecting the health, welfare, safety and civil and other rights of children in the facility; [and]

      (h) Working with lesbian, gay, bisexual, transgender and questioning children; and

      (i) Such other matters as required by the Board.

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

      Sec. 25. NRS 432A.220 is hereby amended to read as follows:

      432A.220  Any person who operates a child care facility without a license issued pursuant to NRS 432A.131 to 432A.220, inclusive, and section 23 of this act is guilty of a misdemeanor.

 


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      Sec. 26. Chapter 432B of NRS is hereby amended by adding thereto the provisions set forth as sections 27, 28 and 29 of this act.

      Sec. 27. “Gender identity or expression” has the meaning ascribed to it in section 2.5 of this act.

      Sec. 28. 1.  An agency which provides child welfare services shall treat each child to whom the agency provides services in all respects in accordance with the child’s gender identity or expression.

      2.  The Division of Child and Family Services shall adopt regulations establishing protocols to ensure that each child in the custody of an agency which provides child welfare services is placed in a manner that is appropriate for the gender identity or expression of the child. Such regulations must be adopted in consultation with:

      (a) Lesbian, gay, bisexual, transgender and questioning children who are currently residing in foster homes, facilities for the detention of children, child care facilities, mental health facilities or who have resided in such settings;

      (b) Representatives of each agency which provides child welfare services in this State;

      (c) Representatives of state and local facilities for the detention of children;

      (d) Representatives of lesbian, gay, bisexual, transgender and questioning persons;

      (e) Attorneys, including, without limitation, attorneys who regularly represent children in child welfare or criminal proceedings;

      (f) Representatives of juvenile courts and family courts;

      (g) Advocates of children; and

      (h) Any other person deemed appropriate by the Division of Child and Family Services.

      3.  An agency which provides child welfare services shall:

      (a) Follow the protocols prescribed in the regulations adopted pursuant to subsection 2 before placing a child in an out-of-home placement; and

      (b) Ensure that an out-of-home placement into which a child is placed follows the protocols prescribed in the regulations adopted pursuant to subsection 2 when placing the child within the facility.

      4.  As used in this section:

      (a) “Child care facility” has the meaning ascribed to it in NRS 432A.024.

      (b) “Foster home” has the meaning ascribed to it in NRS 424.014.

      (c) “Out-of-home placement” has the meaning ascribed to it in section 14 of this act.

      Sec. 29. A facility which provides care, treatment or training to a child who is in the custody of an agency which provides child welfare services and who is admitted to the facility pursuant to NRS 432B.6076 shall:

      1.  Ensure that each employee of the facility who comes into direct contact with children at the facility receives, within 90 days after employment and annually thereafter, training that has been approved by the Division of Child and Family Services concerning working with lesbian, gay, bisexual, transgender and questioning children;

      2.  Ensure that each child who is placed in the facility is treated in all respects in accordance with the child’s gender identity or expression; and

 


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      3.  Follow the protocols prescribed in the regulations adopted pursuant to section 28 of this act when placing the child within the facility.

      Sec. 30. NRS 432B.010 is hereby amended to read as follows:

      432B.010  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 432B.020 to 432B.110, inclusive, and section 27 of this act have the meanings ascribed to them in those sections.

      Sec. 31.  NRS 432B.195 is hereby amended to read as follows:

      432B.195  1.  An agency which provides child welfare services shall provide training to each person who is employed by the agency and who provides child welfare services. Such training must include, without limitation, instruction concerning the applicable state and federal constitutional and statutory rights of a person who is responsible for a child’s welfare and who is:

      (a) The subject of an investigation of alleged abuse or neglect of a child; or

      (b) A party to a proceeding concerning the alleged abuse or neglect of a child pursuant to NRS 432B.410 to 432B.590, inclusive.

      2.  In addition to the training provided pursuant to subsection 1, an agency which provides child welfare services shall ensure that each employee of the agency who comes into direct contact with children receives, within 90 days after employment and annually thereafter, training concerning working with lesbian, gay, bisexual, transgender and questioning children.

      3.  Nothing in this section shall be construed as requiring or authorizing a person who is employed by an agency which provides child welfare services to offer legal advice, legal assistance or legal interpretation of state or federal statutes or laws.

      Sec. 32.  NRS 432B.607 is hereby amended to read as follows:

      432B.607  As used in NRS 432B.607 to 432B.6085, inclusive, and section 29 of this act, unless the context otherwise requires, the words and terms defined in NRS 432B.6071 to 432B.6074, inclusive, have the meanings ascribed to them in those sections.

      Sec. 33.  (Deleted by amendment.)

      Sec. 34.  NRS 432B.6085 is hereby amended to read as follows:

      432B.6085  1.  Nothing in this chapter purports to deprive any person of any legal rights without due process of law.

      2.  Unless the context clearly indicates otherwise, the provisions of NRS 432B.607 to 432B.6085, inclusive, and section 29 of this act, 433.456 to 433.543, inclusive, and 433.545 to 433.551, inclusive, and chapters 433A and 433B of NRS and NRS 435.530 to 435.635, inclusive, apply to all children who are in the custody of an agency which provides child welfare services.

      Sec. 35.  Chapter 62B of NRS is hereby amended by adding thereto the provisions set forth as sections 36 and 37 of this act.

      Sec. 36.  (Deleted by amendment.)

      Sec. 37. 1.  A public or private institution or agency to which a juvenile court commits a child, including, without limitation, a facility for the detention of children, shall:

      (a) Treat each child that a juvenile court commits to the institution or agency in all respects in accordance with the child’s gender identity or expression and the regulations adopted by the Division of Child and Family Services pursuant to subsection 2; and

 


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ê2017 Statutes of Nevada, Page 28 (Chapter 9, AB 99)ê

 

      (b) To the extent applicable, comply with the Prison Rape Elimination Act, 42 U.S.C. §§ 15605 et seq., and all standards adopted pursuant thereto.

      2.  The Division of Child and Family Services shall adopt regulations establishing factors for a juvenile court to consider before committing a child to a public or private institution or agency, including, without limitation, a facility for the detention of children, and protocols for such an institution or agency to follow when placing a child within the institution or agency that ensure that each child who is so committed is placed in a manner that is appropriate for the gender identity or expression of the child. Such regulations must be adopted in consultation with:

      (a) Lesbian, gay, bisexual, transgender and questioning children who are currently residing in foster homes, facilities for the detention of children, child care facilities and mental health facilities or who have resided in such settings;

      (b) Representatives of each agency which provides child welfare services in this State;

      (c) Representatives of state and local facilities for the detention of children;

      (d) Representatives of lesbian, gay, bisexual, transgender and questioning persons;

      (e) Attorneys, including, without limitation, attorneys who regularly represent children in child welfare or criminal proceedings;

      (f) Representatives of juvenile courts and family courts;

      (g) Advocates of children; and

      (h) Any other person deemed appropriate by the Division of Child and Family Services.

      3.  A juvenile court shall consider the factors prescribed in the regulations adopted pursuant to subsection 2 before committing a child to a public or private institution or agency, including, without limitation, a facility for the detention of children.

      4.  A public or private institution or agency to which a juvenile court commits a child, including, without limitation, a facility for the detention of children, shall follow the protocols prescribed in the regulations adopted pursuant to subsection 2 when placing a child within the facility.

      5.  As used in this section:

      (a) “Agency which provides child welfare services” has the meaning ascribed to it in NRS 432B.030.

      (b) “Child care facility” has the meaning ascribed to it in NRS 432A.024.

      (c) “Foster home” has the meaning ascribed to it in NRS 424.014.

      (d) “Gender identity or expression” has the meaning ascribed to it in section 2.5 of this act.

      Sec. 38. NRS 62B.250 is hereby amended to read as follows:

      62B.250  1.  A public or private institution or agency to which a juvenile court commits a child, including, without limitation, a facility for the detention of children, shall ensure that each employee who comes into direct contact with children who are in custody receives training within [30] 90 days after employment and annually thereafter. Such training must be approved by the Division of Child and Family Services and include, without limitation, instruction concerning:

 


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ê2017 Statutes of Nevada, Page 29 (Chapter 9, AB 99)ê

 

      (a) Controlling the behavior of children;

      (b) Policies and procedures concerning the use of force and restraint on children;

      (c) The rights of children in the institution or agency;

      (d) Suicide awareness and prevention;

      (e) The administration of medication to children;

      (f) Applicable state and federal constitutional and statutory rights of children in the institution or agency;

      (g) Policies and procedures concerning other matters affecting the health, welfare, safety and civil and other rights of children in the institution or agency; [and]

      (h) Working with gay, lesbian, bisexual, transgender and questioning children; and

      (i) Such other matters as required by the Division of Child and Family Services.

      2.  The Division of Child and Family Services shall adopt regulations necessary to carry out the provisions of this section.

      Sec. 39. Chapter 63 of NRS is hereby amended by adding thereto the provisions set forth as sections 40 and 41 of this act.

      Sec. 40.  (Deleted by amendment.)

      Sec. 41. 1.  A facility shall:

      (a) Treat each child in the facility in all respects in accordance with the child’s gender identity or expression and the regulations adopted by the Division of Child and Family Services pursuant to subsection 2; and

      (b) Comply with the Prison Rape Elimination Act, 42 U.S.C. §§ 15605 et seq., and all standards adopted pursuant thereto.

      2.  The Division of Child and Family Services shall adopt regulations establishing factors for a juvenile court to consider before committing a child to a facility and protocols for a facility to follow when placing a child within the facility that ensure that each child who is so committed is placed in a manner that is appropriate for the gender identity or expression of the child. Such regulations must be adopted in consultation with:

      (a) Lesbian, gay, bisexual, transgender and questioning children who are currently residing in foster homes, facilities for the detention of children, child care facilities and mental health facilities or who have resided in such settings;

      (b) Representatives of each agency which provides child welfare services in this State;

      (c) Representatives of state and local facilities for the detention of children;

      (d) Representatives of lesbian, gay, bisexual, transgender and questioning persons;

      (e) Attorneys, including, without limitation, attorneys who regularly represent children in child welfare or criminal proceedings;

      (f) Representatives of juvenile courts and family courts;

      (g) Advocates of children; and

      (h) Any other person deemed appropriate by the Division of Child and Family Services.

      3.  A juvenile court shall consider the factors prescribed in the regulations adopted pursuant to subsection 2 before committing a child to a facility.

 


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      4.  A facility shall follow the protocols prescribed in the regulations adopted pursuant to subsection 2 when placing a child within the facility.

      5.  As used in this section:

      (a) “Agency which provides child welfare services” has the meaning ascribed to it in NRS 432B.030.

      (b) “Child care facility” has the meaning ascribed to it in NRS 432A.024.

      (c) “Foster home” has the meaning ascribed to it in NRS 424.014.

      (d) “Gender identity or expression” has the meaning ascribed to it in section 2.5 of this act.

      Sec. 42. NRS 63.100 is hereby amended to read as follows:

      63.100  1.  For each facility, the position of superintendent of the facility is hereby created.

      2.  The superintendent of a facility shall administer the provisions of NRS 63.010 to 63.620, inclusive, and section 41 of this act, 63.720, 63.770 and 63.790 subject to administrative supervision by the Administrator of the Division of Child and Family Services.

      Sec. 43. NRS 63.190 is hereby amended to read as follows:

      63.190  1.  The superintendent of a facility shall ensure that each employee who comes into direct contact with children in the facility receives training within [30] 90 days after employment and annually thereafter. Such training must be approved by the Division of Child and Family Services and include, without limitation, instruction concerning:

      (a) Controlling the behavior of children;

      (b) Policies and procedures concerning the use of force and restraint on children;

      (c) The rights of children in the facility;

      (d) Suicide awareness and prevention;

      (e) The administration of medication to children;

      (f) Applicable state and federal constitutional and statutory rights of children in the home;

      (g) Policies and procedures concerning other matters affecting the health, welfare, safety and civil and other rights of children in the facility; [and]

      (h) Working with gay, lesbian, bisexual, transgender and questioning children; and

      (i) Such other matters as required by the Administrator of the Division of Child and Family Services.

      2.  The Administrator of the Division of Child and Family Services shall provide direction to the superintendent of each facility concerning the manner in which to carry out the provisions of this section.

      Sec. 44. Chapter 433B of NRS is hereby amended by adding thereto the provisions set forth as sections 45 and 46 of this act.

      Sec. 45.  (Deleted by amendment.)

      Sec. 46. 1.  A treatment facility and any other division facility into which a child may be committed by a court order shall treat each child committed to the facility by a court order in all respects in accordance with the child’s gender identity or expression and the regulations adopted by the Division of Child and Family Services pursuant to subsection 2.

      2.  The Division of Child and Family Services of the Department shall adopt regulations establishing factors for a court to consider before committing a child to a treatment facility or other division facility and protocols for such a facility to follow when placing a child within the facility to ensure that each child who is so committed is placed in a manner that is appropriate for the gender identity or expression of the child.

 


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ê2017 Statutes of Nevada, Page 31 (Chapter 9, AB 99)ê

 

facility to ensure that each child who is so committed is placed in a manner that is appropriate for the gender identity or expression of the child. Such regulations must be adopted in consultation with:

      (a) Lesbian, gay, bisexual, transgender and questioning children who are currently residing in foster homes, facilities for the detention of children, child care facilities and mental health facilities or who have resided in such settings;

      (b) Representatives of each agency which provides child welfare services in this State;

      (c) Representatives of state and local facilities for the detention of children;

      (d) Representatives of lesbian, gay, bisexual, transgender and questioning persons;

      (e) Attorneys, including, without limitation, attorneys who regularly represent children in child welfare or criminal proceedings;

      (f) Representatives of juvenile courts and family courts;

      (g) Advocates of children; and

      (h) Any other person deemed appropriate by the Division.

      3.  A court shall consider the factors prescribed in the regulations adopted pursuant to subsection 2 before committing a child to a treatment facility or other division facility.

      4.  A treatment facility or other division facility to which a child is committed by a court order shall follow the protocols prescribed in the regulations adopted pursuant to subsection 2 when placing the child within the facility.

      5.  As used in this section:

      (a) “Agency which provides child welfare services” has the meaning ascribed to it in NRS 432B.030.

      (b) “Child care facility” has the meaning ascribed to it in NRS 432A.024.

      (c) “Foster home” has the meaning ascribed to it in NRS 424.014.

      (d) “Gender identity or expression” has the meaning ascribed to it in section 2.5 of this act.

      Sec. 47.  NRS 433B.175 is hereby amended to read as follows:

      433B.175  1.  The Administrator shall ensure that each employee who comes into direct contact with children at any treatment facility and any other division facility into which a child may be committed by a court order receives training within [30] 90 days after employment and annually thereafter. Such training must be approved by the Division and include, without limitation, instruction concerning:

      (a) Controlling the behavior of children;

      (b) Policies and procedures concerning the use of force and restraint on children;

      (c) The rights of children in the facility;

      (d) Suicide awareness and prevention;

      (e) The administration of medication to children;

      (f) Applicable state and federal constitutional and statutory rights of children in the facility;

      (g) Policies and procedures concerning other matters affecting the health, welfare, safety and civil and other rights of children in the facility; [and]

      (h) Working with gay, lesbian, bisexual, transgender and questioning children; and

 


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ê2017 Statutes of Nevada, Page 32 (Chapter 9, AB 99)ê

 

      (i) Such other matters as required by the Board.

      2.  The Division shall adopt regulations necessary to carry out the provisions of this section.

      Sec. 48.  This act becomes effective:

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

      2.  On October 1, 2017, for all other purposes.

________

CHAPTER 10, AB 19

Assembly Bill No. 19–Committee on Government Affairs

 

CHAPTER 10

 

[Approved: May 2, 2017]

 

AN ACT relating to veterans; revising provisions governing the reporting of certain information relating to veterans by certain public bodies; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law requires certain state agencies and entities to report to the Interagency Council on Veterans Affairs by November 30 of each year certain information relating to veterans and requires the Interagency Council to synthesize, compile and report such information by February 15 of each year to the Governor and the Legislature or, if the Legislature is not in session, to the Legislative Commission. (NRS 417.0194, 417.0195, 612.237, 622.120) Sections 1 and 5 of this bill standardize the information collected and reported to the Interagency Council by occupational and professional licensing boards, commissions and agencies. Section 1 also requires the Department of Veterans Services to submit certain additional information to the Interagency Council and requires the inclusion of quarterly unemployment data submitted to the Interagency Council in its report. Section 2 of this bill reduces the frequency of the report submitted by the Interagency Council from annually to biennially in an even-numbered year, which makes the Legislative Commission the recipient of the report for the Legislative Department of the State Government.

      Existing law requires the Nevada Veterans Services Commission to submit a report by November 1 of each year concerning its activities and recommendations to the Interagency Council and requires the Women Veterans Advisory Committee to submit a similar report by February 15 of each year to the Governor. (NRS 417.190, 417.330) Sections 3 and 4 of this bill reduce the frequency of the required submission of those reports to biennially in an even-numbered year and standardizes the recipients of both reports to the Governor, the Interagency Council and the Legislative Commission. Section 3 also changes the deadline by which the Nevada Veterans Services Commission is required to submit its report to February 15, which is the same biennial deadline as for the reports submitted by the Interagency Council and the Women Veterans Advisory Committee.

 


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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. 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,] 16, 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. Each state agency and regulatory body shall submit such information for the immediately preceding fiscal year 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 Veterans Services shall provide annual statistics regarding:

      (a) The distribution of expenditures in this State by the United States Department of Veterans Affairs;

      (b) The number of veterans who receive care or other services at a veterans’ home operated by the State;

      (c) The number of interments and other services provided by the veterans’ cemeteries in this State;

      (d) The total number of veterans service officers who are located in this State, by zip code;

      (e) The number of claims filed on behalf of veterans and the family members of veterans by veterans service officers in this State;

      (f) The amount of annual payments in the form of disability compensation and pension benefits made to veterans and the family members of veterans in this State as a result of claims filed by veterans service officers;

      (g) The number of persons who participate as advocates for veterans in this State in a volunteer program sponsored by the Department of Veterans Services, by zip code;

      (h) The number of employers in this State who participate in a program sponsored by the Department of Veterans Services that facilitates the employment of veterans; and

      (i) The number of events held in this State to provide outreach to veterans regarding benefits, claims and services, segregated by the geographical location of each event.

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

 


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      (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.]5.  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.]6.  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.]7.  The Department of Education shall provide the distribution of dependents of service members enrolled in Nevada’s public schools.

      [7.]8.  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.]9.  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.]10.  The Department of Motor Vehicles shall provide:

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

      [12.]13.  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.

 


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      [13.]14.  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.]15.  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.]16.  Each regulatory body shall provide the total number of veterans and service members [applying for licensure by the regulatory body.] 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.

      [16.]17.  The Council shall, upon receiving the information submitted pursuant to this section [,] and NRS 612.237, 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) “License” has the meaning ascribed to it in NRS 622.030.

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

      (d) “Veterans service officer” means a person who is accredited or otherwise officially recognized by the United States Department of Veterans Affairs to assist veterans with filing claims for benefits and related matters.

      Sec. 2. NRS 417.0195 is hereby amended to read as follows:

      417.0195  The Interagency Council on Veterans Affairs shall:

      1.  Identify and prioritize the needs of veterans and servicemen and servicewomen and their families in this State.

      2.  Study the coordination of the efforts of the Federal Government, State Government, local governments and private entities to meet the needs of veterans and servicemen and servicewomen and their families in this State.

      3.  Develop and disseminate best practices for improving outcomes for veterans and servicemen and servicewomen and their families through policy recommendations at the state and local governmental levels.

      4.  Foster the development and dissemination of research and policy for improving outcomes for veterans and servicemen and servicewomen and their families.

      5.  Develop and administer a fellowship program to increase research on improving outcomes for veterans and servicemen and servicewomen and their families, including, without limitation, in the areas of education, employment and wellness. The program must include, without limitation, publication of peer-reviewed materials and an annual conference.

      6.  Cultivate leadership opportunities for veterans.

      7.  Develop models for outreach to and engagement of veterans.

      8.  On or before February 15 of each even-numbered year, submit a report concerning the activities of the Council during the preceding 2 calendar [year,] years, including the information synthesized and compiled pursuant to NRS 417.0194 , [and the annual report submitted to the Council by the Nevada Veterans Services Commission pursuant to NRS 417.190,] and any recommendations of the Council to the Governor and the Director of the Legislative Counsel Bureau for transmittal to [:

 


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pursuant to NRS 417.0194 , [and the annual report submitted to the Council by the Nevada Veterans Services Commission pursuant to NRS 417.190,] and any recommendations of the Council to the Governor and the Director of the Legislative Counsel Bureau for transmittal to [:

      (a) If the Legislature is in session, the standing committees of the Legislature which have jurisdiction of the subject matter; or

      (b) If the Legislature is not in session,] the Legislative Commission.

      Sec. 3. NRS 417.190 is hereby amended to read as follows:

      417.190  The Nevada Veterans Services Commission shall:

      1.  Advise the Director and Deputy Director.

      2.  Prepare and submit a report, on or before [November 1] February 15 of each even-numbered year, to the Governor, the Interagency Council on Veterans Affairs [.] and the Director of the Legislative Counsel Bureau for transmittal to the Legislative Commission. The report must, without limitation:

      (a) Summarize the activities of the Commission during the preceding [fiscal year.] 2 calendar years.

      (b) Make recommendations to the Governor, the Legislature, the Director and the Deputy Director regarding issues relating to veterans.

      3.  Make recommendations to the Governor pursuant to NRS 417.400.

      Sec. 4. NRS 417.330 is hereby amended to read as follows:

      417.330  The Committee shall:

      1.  Support and assist the Department in:

      (a) Locating, educating and advocating for all women veterans in this State;

      (b) Determining the unique needs of women veterans;

      (c) Conducting outreach and education through various means, including, without limitation, the Green Zone Network, the organization of statewide women veterans events, the promotion of benefits and superior health care for women veterans and the development of programs that inform pupils, business leaders and educators about the important role women play in the Armed Forces of the United States;

      (d) Educating women veterans as to benefits and programs that are available to them;

      (e) At least annually, making such recommendations as may be deemed necessary or advisable to the Governor, the Nevada Legislature, the office of the Director of the Department of Veterans Services and such other offices of this State as may be appropriate; and

      (f) Advocating on behalf of women veterans to ensure that the programs and policies of this State and of the United States Department of Veterans Affairs remain open to women and mindful of the elements of the experience of a veteran that are unique to women.

      2.  Work cooperatively with the Interagency Council on Veterans Affairs and make recommendations concerning the needs of, and resources available to, women veterans.

      3.  On or before February 15 of each even-numbered year, submit a report concerning the activities of the Committee during the preceding 2 calendar [year] years and any recommendations of the Committee to the Governor [.] , the Interagency Council on Veterans Affairs and the Director of the Legislative Counsel Bureau for transmittal to the Legislative Commission. The report must include, without limitation, information pertaining to:

 


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      (a) The demographics of women veterans.

      (b) The contributions that women veterans have made on behalf of the United States and this State.

      (c) The unique needs of the population of women veterans.

      (d) Steps taken to reduce misinformation and improve support for programs for women veterans.

      Sec. 5. NRS 622.120 is hereby amended to read as follows:

      622.120  1.  [If] For the purposes of NRS 417.0194, a regulatory body [collects] shall collect 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 and service members 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.  As used in this section [, “veteran”] :

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

      (b) “Veteran” has the meaning ascribed to it in NRS 417.005.

      Sec. 6.  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. 7.  This act becomes effective on July 1, 2017.

________

CHAPTER 11, AB 469

Assembly Bill No. 469–Assemblymen Frierson and Paul Anderson

 

Joint Sponsors: Senators Ford and Roberson

 

CHAPTER 11

 

[Approved: May 8, 2017]

 

AN ACT relating to education; reorganizing large school districts; requiring large school districts to deem each school in the district to be a local school precinct; transferring the authority to carry out certain responsibilities from the central administrative staff of large school districts to such local school precincts; requiring large school districts to allocate money to local school precincts to carry out the responsibilities transferred to the local school precincts; providing for the reorganization of the central administrative staff of large school districts; requiring a plan of operation to be developed for each local school precinct; requiring annual surveys to be administered to persons involved with local school precincts and to the central administrative staff of large school districts; providing for the continuation of an advisory committee to oversee the implementation of the reorganization of large school districts; repealing provisions requiring the reorganization of the Clark County School District; and providing other matters properly relating thereto.

 


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Legislative Counsel’s Digest:

      During the 2015 Legislative Session, the Legislature enacted Assembly Bill No. 394 (A.B. 394) which created an advisory committee to develop a plan and recommendations to reorganize the Clark County School District (Advisory Committee) into local school precincts. To assist the Advisory Committee, A.B. 394 also created a technical advisory committee. The Advisory Committee and technical advisory committee were appointed and met throughout the legislative interim. In addition, A.B. 394 directed the State Board of Education to adopt regulations necessary and appropriate to carry out the plan developed by the Advisory Committee. (Chapter 543, Statutes of Nevada 2015, p. 3842)

      During the 2015-2016 interim, the Advisory Committee developed such a plan and recommendations to reorganize the Clark County School District. The State Board of Education then adopted a regulation to carry out the plan and recommendations which was approved by the Legislative Commission and filed with the Secretary of State on September 9, 2016. (LCB File No. R142-16) Section 44 of this bill declares the regulation adopted by the State Board of Education to be void and unenforceable on the effective date of this bill, except that the Clark County School District remains responsible for reimbursing the cost of the consultant with whom a contract was entered into to oversee the transition of the school district. In addition, section 48 of this bill repeals A.B. 394. Instead, this bill places in statute the requirements for the reorganization of a “large school district,” which is defined in section 7 of this bill as a school district which has more than 100,000 pupils enrolled in its public schools (currently the Clark County School District).

      Section 15 of this bill deems each public school within a large school district, other than a charter school or a university school for profoundly gifted pupils, to be a local school precinct which is operated under site-based decision-making, providing the authority to carry out certain responsibilities which have traditionally been carried out by the large school district to instead be carried out by the local school precincts. Section 15 also clarifies the effect on zoning and enrollment by prohibiting a local school precinct from changing or affecting any zone of attendance or changing the large school district’s policy concerning the eligibility and selection of a pupil to attend a specialty school. In addition, section 15 prohibits a large school district from reducing the size of a specialty school or converting such a school into any other type of school unless: (1) specifically provided by law; (2) the reduction or conversion has been recommended by the school and approved by the superintendent and the board of trustees of the large school district; or (3) the superintendent, with the approval of the board of trustees, has determined that there is good cause for the reduction or conversion.

      Section 16 of this bill requires the superintendent of a large school district to transfer to each local school precinct in the large school district the authority to carry out the following responsibilities: (1) select and directly supervise the staff for the local school precinct; (2) procure from the large school district or elsewhere necessary equipment, services and supplies to carry out the plan of operation for the local school precinct in accordance with applicable policies of the large school district; and (3) develop a balanced budget for the local school precinct. Section 16 requires the large school district to remain responsible for paying for and carrying out all other responsibilities that have not been transferred to the local school precincts that are necessary for the operation of the large school district and the local school precincts and lists certain responsibilities that are not transferred under the terms of section 16. However, section 16 authorizes the superintendent of a large school district, in consultation with the principals, school associate superintendents and organizational teams to transfer additional authority to the local school precincts, including authority to carry out any of the responsibilities listed as remaining with central services so long as the transfer does not violate state or federal law and is in the best interest of the pupils of the local school precincts. Section 16 further requires a large school district to procure any equipment, services and supplies necessary from another business or entity to provide maintenance and repair if the large school district is unable to provide necessary maintenance or repair of buildings or grounds of a local school precinct in a timely manner.

 


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ê2017 Statutes of Nevada, Page 39 (Chapter 11, AB 469)ê

 

another business or entity to provide maintenance and repair if the large school district is unable to provide necessary maintenance or repair of buildings or grounds of a local school precinct in a timely manner.

      Section 17 of this bill requires the superintendent of a large school district to make certain estimates regarding items included in the budgets of the local school precincts on or before January 15 of each year. Section 17 also requires each local school precinct to carry forward its year-end balance to the next school year and requires the large school district to account for any amount that is carried forward as a restricted fund balance.

      Section 18 of this bill requires the superintendent of a large school district, on or before January 15 of each year, to make certain estimates regarding funding and to estimate the amount of money that will be allocated to the local school precincts for the next school year. The amount transferred is required to be at least 80 percent of the total amount of unrestricted money of the large school district in the first school year and 85 percent of that total amount for each subsequent school year that the large school district is subject to the provisions of this bill.

      Section 19 of this bill sets forth the manner in which a large school district is required to determine the allocation that will be made to each local school precinct. Money must be allocated on a per pupil basis and by assigning weights to categories of pupils that results in greater funding being allocated for pupils in those categories. The categories and weights must be the same as those established by the Department of Education for the state funding formula, except the large school district may assign a weight to a category not established by the Department with the approval of the Department, and the large school district may also seek a variance from the Department to apply different weights to specific categories or to have a different distribution of weights than those established by the Department.

      Section 20 of this bill requires the superintendent of a large school district to inform each local school precinct, on or before January 15 of each year, of the estimated amount of money that will be allocated to the local school precinct for the next school year. Section 20 also prescribes the manner in which a large school district must account for the opening of new local school precincts when allocating money to the local school precincts. Finally, section 20 requires an adjustment to be made to the allocation to each local school precinct on or before November 1 of each year to reflect the actual pupil population at the local school precinct. Section 21 of this bill requires the superintendent of a large school district to compare and make available certain financial and other information related to each local school precinct beginning November 1 of the year after the first year that a large school district operates pursuant to the provisions of this bill and on or before November 1 of each year thereafter.

      Section 22 of this bill requires the superintendent of a large school district to assign a school associate superintendent to oversee the local school precincts, but such a person must not be assigned to more than 25 local school precincts. Section 22 also provides a procedure for the interview and selection of a school associate superintendent which allows principals and certain local governments the opportunity to participate in the process. Section 23 of this bill prescribes the duties of a school associate superintendent and requires the school associate superintendent to be held accountable for all aspects of the performance of the local school precincts to which he or she is assigned to oversee.

      Section 24 of this bill establishes certain duties of the principal of a local school precinct, including a duty to: (1) establish an organizational team for the local school precinct; (2) develop a plan of operation for the local school precinct for the next school year; (3) submit the plan of operation for the local school precinct to the school associate superintendent for approval; and (4) select the staff necessary to carry out the plan of operation for the local school precinct. Section 42 of this bill requires the Department of Education to determine whether principals are prepared to take on the additional responsibilities and whether to recommend revising licensing requirements or creating a separate endorsement for the principals of local school precincts. Section 24 of this bill also prescribes the contents of the plan of operation for a local school precinct, which must include a plan to improve the achievement of pupils and a budget for the use of the money allocated to the local school precinct.

 


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ê2017 Statutes of Nevada, Page 40 (Chapter 11, AB 469)ê

 

for a local school precinct, which must include a plan to improve the achievement of pupils and a budget for the use of the money allocated to the local school precinct. The budget must be based upon the average unit cost for each type of employee of the local school precinct and the actual cost for the procurement of equipment, services and supplies and for any other item included in the budget. Section 43 of this bill requires the Department of Education, on or before July 1, 2018, to assess the equity of using the average unit cost to budget for salaries and benefits of staff and recommend to the State Board of Education and the Nevada Legislature whether to continue using average unit cost in that manner.

      Section 25 of this bill requires the principal of a local school precinct to present the plan of operation for the local school precinct at a public meeting held at the local school precinct to which the plan of operation applies. Section 25 also prescribes the process by which the school associate superintendent may approve the plan of operation and requires the plan to be approved unless the plan violates any federal or state law or policy of the large school district. Section 29 of this bill provides the manner in which an organizational team may appeal the plan of operation for the local school precinct if the team opposes any part of the plan. Section 25 authorizes the principal to make adjustments to the budget included in the plan of operation after the plan has been approved upon consultation with the organizational team and approval of the school associate superintendent.

      Section 26 of this bill establishes the membership of the organizational team for a local school precinct and the manner in which the members are selected. Section 26 makes the principal of the local school precinct a nonvoting member on the organizational team. Voting members of the organizational team include teachers and other licensed educational personnel, other employees of the local school precinct and parents and guardians of pupils who are enrolled in the local school precinct. In addition, section 26 provides that if the local school precinct is a middle school, junior high or high school, a pupil must be elected to serve as a nonvoting member who assists with matters relating to the plan of operation of the local school precinct. Section 26 further authorizes one or more nonvoting members from the community at large to be selected by the organizational team. Section 26 provides immunity from civil liability to the organizational team and its volunteer members for carrying out the duties assigned to the organizational team and its members. Section 27 of this bill provides for the appointment of the leadership and organization of an organizational team.

      Section 28 of this bill sets forth the duties of an organizational team which include: (1) providing assistance and advice to the principal of the local school precinct regarding the plan of operation for the local school precinct; (2) assisting in carrying out the plan of operation for the local school precinct; and (3) assisting with the selection of the principal of the local school precinct. Section 28 also authorizes the organizational team to provide input regarding the principal of the local school precinct to the school associate superintendent up to two times each year.

      Section 30 of this bill authorizes the governing body of a city or the board of county commissioners of a county in which the large school district is located to establish one or more community education advisory boards to provide advice and assistance to the organizational team of any local school precinct and the board of trustees of the large school district.

      Section 31 of this bill requires annual surveys to be administered to all persons involved with the local school precincts to measure their satisfaction with the local school precinct and to employees of the central services and employees who interact with the central services to determine how satisfied they are with the services provided. A summary of the results of such surveys are required to be made public.

      Section 32 of this bill requires an annual report concerning the local school precincts to be compiled and forwarded to the Governor, the Superintendent of Public Instruction and the Nevada Legislature.

      Section 33 of this bill requires the Superintendent of Public Instruction to take such actions as deemed necessary and appropriate to ensure that a large school district carries out the reorganization of the large school district in accordance with the requirements set forth in this bill.

 


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requirements set forth in this bill. Section 33 requires a large school district to cooperate with the Superintendent of Public Instruction in carrying out the provisions of this bill, including providing any necessary financial or other information that is requested, and lists specific information which must be provided to the Superintendent of Public Instruction upon request. Section 34 of this bill requires the State Board of Education to adopt regulations it deems necessary to carry out the provisions of this bill.

      Sections 38 and 39 of this bill clarify the manner in which the laws concerning local government purchasing apply to local school precincts so that purchases made by a local school precinct are not aggregated with other local school precincts or the large school district.

      Section 41 of this bill requires a large school district to comply with the provisions of this bill notwithstanding any time frames set forth in this bill. In addition, section 45 of this bill makes the advisory committee that was created in A.B. 394 continue with the same members as an Advisory Committee to Monitor the Implementation of the Reorganization of Large School Districts until August 31, 2018. Any vacancies on the Advisory Committee are filled in the same manner as the original appointment.

 

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 388G of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 34, inclusive, of this act.

      Sec. 2. 1.  The Legislature hereby finds that in large school districts:

      (a) Because of their significantly larger enrollment of pupils, greater number of local school precincts and more expansive and extensive scope of operations, large school districts are prone to develop large, complex and potentially inefficient, cumbersome and unresponsive bureaucracies that tend to become too dependent upon a centralized operational model where most decision-making is made by central services.

      (b) Under such a centralized operational model in large school districts, the operational structure and culture may result in an entrenched and inflexible operational paradigm where decisions are made by central services without regular, consistent or adequate examination, exploration and consideration of the particularized, specialized or localized circumstances, needs and concerns of each local school precinct.

      (c) When more decision-making is transferred from central services in large school districts to the site-based administrators, teachers and other staff and the parents and legal guardians of pupils in each local school precinct, the State’s system of public schools is better structured to educate efficiently, effectively and successfully the diverse and varied populations of pupils within large school districts because a site-based operational model encourages decision-making that is more innovative, proactive and responsive to the particularized, specialized or localized circumstances, needs and concerns of each local school precinct.

      (d) To promote, achieve and advance the educational policies and objectives of transitioning and restructuring large school districts from a centralized operational model to a more decentralized and autonomous site-based operational model, it is necessary and essential to transfer and redirect more funding from the control of central services to the control of the site-based administrators, teachers and other staff and the parents and legal guardians of pupils in each local school precinct and ensure that more funding follows pupils with increased or specialized needs or abilities to each local school precinct.

 


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legal guardians of pupils in each local school precinct and ensure that more funding follows pupils with increased or specialized needs or abilities to each local school precinct.

      2.  The Legislature hereby declares that it is in the best interests of this State, beneficial to the public’s welfare and necessary and essential to the efficient, effective and successful operation of the State’s system of public schools to implement and carry out the provisions of sections 2 to 34, inclusive, of this act in large school districts for the purposes of promoting, achieving and advancing the educational policies and objectives of this State.

      Sec. 3. As used in sections 2 to 34, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 4 to 13, inclusive, of this act have the meanings ascribed to them in those sections.

      Sec. 4. “Board of trustees” means the board of trustees of a large school district.

      Sec. 5. “Central services” means the administrative staff of a large school district who provide services to the local school precincts in the large school district.

      Sec. 6. “Confidential information” means:

      1.  Personal information, including, without limitation, the home address, employment records, academic records and disciplinary records of a pupil or any other person; and

      2.  Any other information declared by law to be confidential.

      Sec. 7. “Large school district” means any school district in this State which has more than 100,000 pupils enrolled in its public schools.

      Sec. 8. “Local school precinct” means a public school which is deemed to be a local school precinct pursuant to section 15 of this act.

      Sec. 9. “Organizational team” means the organizational team established by the principal of a local school precinct pursuant to section 24 of this act.

      Sec. 10.  “Plan of operation” means the plan of operation for a local school precinct which is approved pursuant to section 25 of this act.

      Sec. 11. “School associate superintendent” means a person assigned by the superintendent to oversee the operation of designated local school precincts pursuant to section 22 of this act.

      Sec. 12. “Specialty school” means a public school that operates as a magnet school or program, a school or program for career and technical education, a school or program for special education or an alternative program of education.

      Sec. 13. “Superintendent” means the superintendent of schools of a large school district.

      Sec. 14. 1.  Except as otherwise provided in this section, the provisions of sections 2 to 34, inclusive, of this act, apply to each large school district.

      2.  If any school district that is not a large school district at the beginning of a school year becomes a large school district during the school year, the provisions of sections 2 to 34, inclusive, of this act apply to that school district at the beginning of the immediately succeeding school year.

      Sec. 15. 1.  Except as otherwise provided in this subsection, each public school within a large school district shall be deemed a local school precinct, including, without limitation, any school operating as a specialty school.

 


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school. A charter school or university school for profoundly gifted pupils shall not be deemed a local school precinct.

      2.  Each local school precinct must operate using site-based decision-making in which certain authority to carry out responsibilities is transferred from the large school district to the local school precinct as set forth in section 16 of this act.

      3.  On and after the effective date of this act, a specialty school must not be reduced in size or converted into any other type of school unless otherwise specifically provided by law or:

      (a) The reduction or conversion is recommended by the local school precinct and approved by the superintendent and the board of trustees of the large school district; or

      (b) The superintendent with the approval of the board of trustees of the large school district, determines that there is good cause to reduce the size of the specialty school or convert the specialty school into another type of school.

      4.  This section does not authorize a local school precinct:

      (a) To change, grant a waiver regarding or in any way affect any zone of attendance which has been established pursuant to NRS 388.040.

      (b) To change the policy of the large school district concerning the eligibility and selection of a pupil to attend a specialty school.

      Sec. 16. 1.  Except as otherwise provided in this section, the superintendent shall transfer authority to each local school precinct to carry out responsibilities in accordance with this section and the plan of operation approved for the local school precinct.

      2.  The superintendent shall transfer to each local school precinct the authority to carry out the following responsibilities:

      (a) Select for the local school precinct the:

             (1) Teachers;

             (2) Administrators other than the principal; and

             (3) Other staff who work under the direct supervision of the principal.

      (b) Direct the supervision of the staff of the local school precinct, including, without limitation, taking any necessary disciplinary action which does not involve a violation of law or which does not require an investigation to comply with the law.

      (c) Procure such equipment, services and supplies as the local school precinct deems necessary or advisable to carry out the plan of operation for the local school precinct. Equipment, services and supplies may be procured from the large school district in which the local school precinct is located or elsewhere, but such procurement must be carried out in accordance with the applicable policies of the large school district.

      (d) Develop a balanced budget for the local school precinct for the use of the money allocated to the local school precinct, which must include, without limitation, the manner in which to expend any money not used for the purposes described in paragraphs (a), (b) and (c).

      (e) Any other responsibility for which authority is transferred pursuant to subsection 7.

      3.  Except as otherwise provided in subsection 7, a large school district shall remain responsible for paying for and carrying out all other responsibilities necessary for the operation of the local school precincts and the large school district which have not been transferred to the local school precincts pursuant to subsection 2, including, without limitation, responsibility for:

 


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and the large school district which have not been transferred to the local school precincts pursuant to subsection 2, including, without limitation, responsibility for:

      (a) Negotiating the salaries, benefits and other conditions of employment of administrators, teachers and other staff necessary for the operation of the local school precinct;

      (b) Transportation services;

      (c) Food services;

      (d) Risk management services;

      (e) Financial services, including payroll services;

      (f) Qualifying employees for any position within the large school district;

      (g) Services to promote and ensure equity and diversity;

      (h) Services to ensure compliance with all laws relating to civil rights;

      (i) Identification, evaluation, program placement, pupil assignment and other services provided to pupils pursuant to the Individuals with Disabilities Education Act, 20 U.S.C. §§ 1400 et seq., and the regulations adopted pursuant thereto, or pursuant to section 504 of the Rehabilitation Act of 1973, 29 U.S.C. § 794, and the regulations adopted pursuant thereto;

      (j) Legal services;

      (k) Maintenance and repair of buildings;

      (l) Maintenance of the grounds of the local school precinct;

      (m) Custodial services;

      (n) Implementation of the master plan developed for English learners;

      (o) Internal audits;

      (p) Information technology services;

      (q) Police services;

      (r) Emergency management services;

      (s) Carrying out state mandated assessments and accountability reports; and

      (t) Capital projects.

      4.  To the greatest extent possible, the principal of a local school precinct shall select teachers who are licensed and in good standing before selecting substitutes to teach at the local school precinct. The principal, in consultation with the organizational team, shall make every effort to ensure that effective licensed teachers are employed at the local school precinct.

      5.  If a large school district is unable to provide any necessary maintenance or repair of the buildings or grounds of a local school precinct in a timely manner, the large school district must, at the expense of the large school district, procure any equipment, services and supplies necessary from another entity or business to provide such maintenance or repair for the local school precinct or take any other necessary action.

      6.  To the extent that any member of the staff of central services is assigned to provide services at a local school precinct on a temporary or permanent basis, the decision regarding the assignment and any subsequent reassignment of the member of the staff must be made in consultation with the principal of the local school precinct and the school associate superintendent.

      7.  On or before January 15 of each year, the superintendent shall determine, in consultation with the principals, school associate superintendents and organizational teams of each local school precinct, any additional authority that is not listed in subsection 2 to recommend transferring to one or more local school precincts.

 


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superintendents and organizational teams of each local school precinct, any additional authority that is not listed in subsection 2 to recommend transferring to one or more local school precincts. Such authority may include the authority to carry out any of the responsibilities listed in subsection 3 which is not prohibited by law, other than the responsibility for capital projects, if it is determined that transferring the authority will serve the best interests of the pupils. The recommendation to transfer authority to one or more local school precincts must be submitted for approval by the board of trustees of the large school district. The board of trustees of the large school district shall consider such a recommendation and determine whether to approve the transfer of additional authority at its next regularly scheduled meeting if submitted within 5 working days before the next regularly scheduled meeting and otherwise the recommendation shall be considered at the following meeting.

      8.  If the authority to carry out any responsibility is transferred to a local school precinct pursuant to subsection 7, the large school district must allocate additional money to the local school precinct in an amount equal to the amount that would otherwise be paid by the large school district to carry out the responsibility.

      Sec. 17. 1.  On or before January 15 of each year, to assist the local school precincts in preparing their budgets for the next school year, the superintendent shall establish and make public:

      (a) The average unit cost for each type of employee employed to work at a local school precinct which is determined based upon the average unit cost across the large school district. A separate average unit cost must be established for teachers and substitute teachers, respectively.

      (b) A list of equipment, services and supplies that a local school precinct may obtain from the large school district using the money allocated to the local school precinct and the cost for such equipment, services and supplies. The cost of such equipment, services and supplies must not exceed the actual cost to the large school district to provide the equipment, services and supplies to the local school precinct.

      2.  Each local school precinct must carry forward its year-end balance to the next school year for use by the local school precinct. The large school district must account for any such amount that is carried forward as a restricted fund balance.

      Sec. 18. 1.  On or before January 15 of each year, the superintendent shall establish for the next school year:

      (a) The estimated total amount of money to be received by the large school district from all sources, including any year-end balance that is carried forward, and shall identify the sources of such a year-end balance and whether the year-end balance is restricted. If the year-end balance is restricted, the superintendent shall identify the source of the restriction and the total of amount of money to be received by the large school district that is unrestricted. Money may only be identified as restricted if it is required by state or federal law, if it is proscribed by the Department or if it has been otherwise encumbered.

      (b) The estimated percentage of the amount of money determined pursuant to paragraph (a) to be unrestricted that will be allocated to the local school precincts. The percentage must equal:

             (1) For the first school year in which the large school district operates pursuant to the provisions of sections 2 to 34, inclusive, of this act, not less than 80 percent of the total amount of money from all sources received by the large school district that is unrestricted for the school year; and

 


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act, not less than 80 percent of the total amount of money from all sources received by the large school district that is unrestricted for the school year; and

             (2) For each subsequent school year, 85 percent of the total amount of money from all sources received by the large school district that is unrestricted for the school year.

      (c) The estimated amount of categorical funding to be received by the large school district and whether such funding is restricted in a manner that prohibits the large school district from including that categorical funding in the amount of funding per pupil that is allocated to the local school precincts.

      (d) The total estimated amount of money that will be allocated to each local school precinct as determined pursuant to section 20 of this act.

      2.  The superintendent shall post the information established pursuant to subsection 1 on the Internet website of the large school district and make the information available to any person upon request.

      Sec. 19. 1.  The amount of money allocated to a local school precinct by the large school district must be determined on a per pupil basis by assigning a category to each pupil and assigning weights to each category in a manner that provides a greater amount of funding for each pupil who belongs to certain designated categories. Except as otherwise provided in subsections 2 and 3, the categories for which a greater weight must be assigned must include, without limitation:

      (a) Pupils who are eligible for free or reduced-price lunches pursuant to 42 U.S.C. §§ 1751 et seq. or a similar alternative measure prescribed by the State Board of Education;

      (b) Pupils who are English learners;

      (c) Pupils with disabilities; and

      (d) Gifted and talented pupils.

      2.  Except as otherwise provided in subsection 3, to establish the weight for each category of pupil as required pursuant to subsection 1, the large school district shall apply the same weights and distribution of weights established by the Department for the state funding formula. If the large school district wishes to apply a different weight to any category or a different distribution of weights, the large school district must submit a request for a variance to use a different weight or distribution of weights to the Department for approval.

      3.  Except if a specialty school is proportionally reduced in size in the manner authorized pursuant to section 15 of this act, the weights and categories assigned pursuant to this section must ensure that any specialty school or rural school that exists on the effective date of this act or before the school district becomes a large school district continues to receive not less than the proportionally larger amount of money that was used to fund the specialty school or rural school before those dates.

      4.  Upon receipt of a request for a variance pursuant to subsection 2, the Department shall review the proposed weights, distribution of weights or request for a variance and inform the large school district whether it approves the proposed weights, distribution of weights or request within 30 days. Once approved, the weights assigned for each category of pupil and the distribution of weights must be posted on the Internet website of the large school district and made available to any person upon request.

 


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      5.  As used in this section, “distribution of weights” means the manner in which it is determined which weight or weights to apply to a pupil who may qualify for more than one category for which a weight is assigned.

      Sec. 20. 1.  On or before January 15 of each year, the superintendent shall inform each local school precinct of the estimated amount of money that will be allocated to the local school precinct for the next school year. The allocation must be based upon the number of pupils in each category who attend the local school precinct after applying the appropriate weight to each category of pupil as determined pursuant to section 19 of this act.

      2.  Except as otherwise provided in subsections 3 and 4, the number and category of pupils must be determined based upon the report of the pupils attending each local school precinct for the previous calendar quarter pursuant to NRS 387.1223.

      3.  If an additional local school precinct is added in the large school district, for the purpose of determining the first allocation for the new local school precinct, the large school district must estimate the number of pupils in each category who will attend the new local school precinct and the effect on any existing local school precinct. If the opening of a new local school precinct is anticipated to reduce the number of pupils who will attend another local school precinct, for purposes of determining the allocation, the number of pupils must be adjusted accordingly.

      4.  The estimated amount of money allocated to each local school precinct for the next school year must be adjusted on or before November 1 of each year to reflect the actual number of pupils in each category who attend the local school precinct.

      Sec. 21. 1.  On or before November 1 of the year after the first year that a large school district operates pursuant to the provisions of sections 2 to 34, inclusive, of this act, and on or before November 1 of each year thereafter, the superintendent shall determine for the immediately preceding school year:

      (a) The total per pupil allocation made to each local school precinct in the large school district and the actual amount expended by the large school district for the local school precinct;

      (b) The amount budgeted by each local school precinct for teacher salaries and benefits and the actual amount expended by the large school district for teacher salaries and benefits for teachers employed at each local school precinct;

      (c) The number of teacher vacancies at each local school precinct and the amount of money included in the allocation to that local school precinct which the local school precinct used for other purposes as a result of those vacancies; and

      (d) The amount budgeted by each local school precinct for each type of employee other than teachers and the actual amount expended by the large school district for salaries and benefits of such employees at each local school precinct.

      2.  The superintendent shall post the information determined pursuant to subsection 1 on the Internet website of the large school district and make the information available to any person upon request.

 

 


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      Sec. 22. 1.  The superintendent shall assign a school associate superintendent to oversee each local school precinct. Each school associate superintendent must not be assigned to oversee more than 25 local school precincts.

      2.  Whenever a vacancy occurs in the position of school associate superintendent, the superintendent shall post notice of the vacancy. The superintendent shall interview qualified candidates for the vacant position. At least one, but not more than two representatives of the principals of the local school precincts overseen by the vacant position must be allowed to participate in interviewing candidates for the vacant position. If the local governmental agency which has the most schools that are overseen by the vacant position is:

      (a) A city, the governing body of the city may appoint one representative to participate in interviewing candidates for the vacant position.

      (b) Not a city, the board of county commissioners for the county in which the large school district is located may appoint one representative to participate in interviewing candidates for the vacant position.

      3.  Each person who participates in interviewing candidates pursuant to subsection 2 shall comply with all laws that apply to an employer when making a decision about employment.

      4.  Upon completion of the interviews pursuant to subsection 2 and before the superintendent makes a final determination about which candidate to hire, the superintendent must notify the governing body of the city or the board of county commissioners for the county, as applicable, regarding the candidate whom the superintendent intends to hire. After receiving such notice, the governing body of the city or the board of county commissioners, as applicable, may hold a public meeting within 10 days to question the superintendent and the candidate for the vacant position and receive public input. After any such meeting or, if no such meeting is held, after 10 days, the superintendent shall, in his or her sole discretion, hire a candidate for the vacant position.

      5.  After the school associate superintendent is hired, the superintendent may, in his or her sole discretion, reassign and make other employment decisions concerning the school associate superintendent.

      Sec. 23. 1.  A school associate superintendent shall, with respect to each local school precinct to which he or she is assigned to oversee:

      (a) Provide training to and supervise the principal of the local school precinct;

      (b) Review and approve the plan of operation for the local school precinct and assist the principal of the local school precinct in making any necessary revisions to the plan;

      (c) Ensure that each local school precinct to which he or she is assigned to oversee remains in compliance with all applicable federal, state and local laws;

      (d) Provide a report in person, not less than quarterly, to the governing body of each city and county within which a local school precinct to which he or she is assigned to oversee is located and, if created pursuant to section 30 of this act, to the Community Education Advisory Board; and

      (e) Carry out any other duties assigned by the superintendent at his or her discretion or after approval by the superintendent of a request made by the local school precinct.

 


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      2.  The school associate superintendent must be held accountable for all aspects of the performance of each local school precinct to which he or she is assigned to oversee. As used in this subsection, “performance” means the overall operation of each such local school precinct as measured by:

      (a) The satisfaction of the parents and legal guardians of pupils and the teachers, administrators and other staff of the local school precinct as determined by the surveys administered pursuant to section 31 of this act; and

      (b) The progress made by the local school precinct to satisfy the goals and objectives set forth in the statewide system of accountability for public schools.

      Sec. 24. 1.  The principal of a local school precinct shall:

      (a) Establish an organizational team for the local school precinct consisting of the members described in section 26 of this act on or before October 1 of each school year;

      (b) Develop the proposed plan of operation for the local school precinct for the next school year with the assistance and advice of the organizational team; and

      (c) Submit the proposed plan of operation for the local school precinct to the school associate superintendent for approval.

      2.  The principal of the local school precinct shall select staff for the local school precinct as necessary to carry out the plan of operation from a list provided by the superintendent.

      3.  The plan of operation for the local school precinct must include, without limitation:

      (a) A plan to improve the achievement of pupils enrolled in the local school precinct, regardless of whether such a plan is required to be prepared pursuant to NRS 385A.650; and

      (b) A budget which itemizes the manner in which the local school precinct will use the money allocated to the local school precinct.

      4.  The budget included in the plan of operation for the local school precinct pursuant to subsection 3 must be based upon the average unit cost for each type of employee of the local school precinct established pursuant to paragraph (a) of subsection 1 of section 17 of this act, the actual cost for the procurement of equipment, services and supplies for the local school precinct and the actual cost of any other item included in the budget of the local school precinct. The budget must be developed in accordance with the criteria for determining budgetary priorities established by the board of trustees of the large school district pursuant to NRS 387.301.

      Sec. 25. 1.  Before approving a plan of operation for a local school precinct, the principal of the local school precinct shall present the plan at a public meeting held in accordance with subsection 2 at the local school precinct to which the plan of operation applies.

      2.  The principal shall post notice of the meeting not less than 3 working days before the date on which the meeting will be held. Members of the public must be allowed to attend any portion of the meeting, except any portion of the meeting during which confidential information is discussed, and each meeting must include a period for public comment. A meeting held pursuant to this subsection is not subject to the provisions of chapter 241 of NRS.

 


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      3.  When the plan of operation for the local school precinct is finalized by the principal, the principal must submit the plan to the school associate superintendent for approval. After receipt of the plan of operation, the school associate superintendent must approve or deny the plan of operation within 10 days. The plan of operation must be approved unless any provision of the plan violates any federal or state law or policy of the large school district.

      4.  If the school associate superintendent:

      (a) Approves the plan of operation for a local school precinct, the school associate superintendent must notify the principal of the local school precinct and cause the plan of operation to be posted on the Internet website of the large school district and on the Internet website of the local school precinct and make the plan of operation available to any person upon request.

      (b) Does not approve the plan of operation for a local school precinct, the school associate superintendent must notify the principal of the local school precinct of the reasons for not approving the plan and post those reasons on the Internet website of the large school district and on the Internet website of the local school precinct and make the plan of operation available to any person upon request. The school associate superintendent must assist the principal as necessary to revise the plan of operation.

      5.  Any adjustment to the budget that the principal of the local school precinct determines is necessary after the plan of operation has been approved may be made upon consultation with the organizational team and approval of the school associate superintendent.

      Sec. 26. 1.  The organizational team for a local school precinct must consist of:

      (a) The principal of the local school precinct who shall serve as a nonvoting member.

      (b) At least two but not more than four members, as determined by the principal, who are teachers or other licensed educational personnel at the local school precinct who are elected by a vote of the teachers and other licensed educational personnel at the local school precinct and at least one-half of whom are members of the association representing teachers and other licensed educational personnel. The association shall establish the process for nominating and electing the members pursuant to this paragraph, which must allow all teachers and other licensed educational personnel an opportunity to participate and be elected regardless of whether the teachers or other licensed educational personnel are members of the association.

      (c) One member who is employed at the local school precinct, other than a teacher or other licensed educational personnel, who is elected by a vote of all such employees, other than teachers or other licensed educational personnel, except that if four members are elected pursuant to paragraph (b), then two members who are elected by a vote of all such employees and who are members of an organization that represents those employees. The organization that represents those employees shall establish the process for nominating and electing the members pursuant to this paragraph, which must allow any eligible employee an opportunity to vote regardless of whether the employee is a member of the organization.

 


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      (d) A number of parents or legal guardians of pupils who are enrolled at the local school precinct which represents 50 percent of the total number of voting members if possible, or, if fewer are available to accept membership, then the greatest number of parents or legal guardians available. The parents or legal guardians must be elected by a vote of all parents and legal guardians of pupils enrolled at the local school precinct. A parent or legal guardian who is a teacher or other licensed educational personnel or employee of the local school precinct may not be elected to serve as a member pursuant to this paragraph, but may be elected to serve as a member of the organizational team pursuant to paragraph (b) or (c), as applicable. The association of parents for the school, if there is one, must establish the process for nominating and electing these members pursuant to this paragraph. If no such association exists, the principal of the local school precinct must inform all parents and legal guardians of the opportunity to serve on the organizational team and provide the parents and guardians with information about the responsibilities associated with serving as a member of the organizational team, the manner in which to submit a name to be included on a ballot, the date on which a vote will be taken and any other relevant information. The principal must post such information on the Internet website of the local school precinct and provide the information to the superintendent who shall post the information on the Internet website of the large school district. The information must also be made available to any person upon request.

      2.  If one or more specialty schools exist within a local school precinct, at least one member selected pursuant to paragraphs (b) and (d) of subsection 1 must represent each specialty school on the organizational team.

      3.  In addition to the members described in subsection 1, if the local school precinct is a middle school, junior high school or high school, the organizational team must have one nonvoting member who is a pupil enrolled at the local school precinct who is elected by a vote of all of the pupils enrolled at the local school precinct. Any pupil who attends the local school precinct may request to be placed on the ballot to be elected to serve as a member of the organizational team pursuant to this subsection. A teacher or administrator of the local school precinct may nominate a pupil but the pupil may only be placed on the ballot if the pupil agrees to have his or her name placed on the ballot. The principal of the local school precinct shall cause a vote to be taken of the entire student body at the local school precinct through secret ballot to elect the pupil member. A member elected pursuant to this subsection may only provide assistance and advice regarding the plan of operation for the local school precinct.

      4.  The organizational team may select one or more nonvoting advisory members from the community at large to assist the organizational team and provide input from the community. Such members must not be the parent or legal guardian of a pupil who attends the local school precinct and must not otherwise be qualified to serve as a voting member of the organizational team.

      5.  The principal of a local school precinct shall assist as necessary with establishing the process for nominating and electing the members described in subsection 1 and shall ensure that each member who is elected pursuant to paragraph (d) of subsection 1 is informed that the member is not an employee of the local school precinct or the large school district and of any potential liability for serving as a member of the organizational team.

 


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not an employee of the local school precinct or the large school district and of any potential liability for serving as a member of the organizational team.

      6.  A person who receives the highest number of votes must be appointed to the organizational team regardless of the total number of votes cast for the position.

      7.  Except as otherwise provided in this subsection, an organizational team and its members who are not employees of the large school district are immune from liability for civil damages as a result of an act or omission in performing any of the duties of the organizational team as set forth in sections 24 to 29, inclusive, of this act. This subsection does not restrict the liability of a local school precinct or the large school district for an act or omission of an organizational team or its members in performing the duties described in sections 24 to 29, inclusive, of this act.

      Sec. 27. 1.  Upon the establishment of an organizational team pursuant to section 24 of this act, the principal of the local school precinct shall schedule the first meeting of the team and act as the chair of the team until a chair is selected. The first item of business for the organizational team must be to select a chair and vice chair from among its members.

      2.  A majority of the voting members of the organizational team constitutes a quorum for purposes of voting. A majority vote of the quorum is required to take action with respect to any matter.

      3.  Notice of a meeting of the organizational team must be posted not less than 3 working days before the date on which the meeting will be held. Members of the public must be allowed to attend any portion of the meeting, except any portion of the meeting during which confidential information is discussed, and each meeting must include a period for public comment. A meeting held pursuant to this subsection is not subject to the provisions of chapter 241 of NRS.

      4.  Each member of the organizational team serves until October 1 of the year following his or her election and may serve additional terms.

      5.  The organizational team must meet not less than one time each month during the school year.

      6.  If a vacancy occurs in the membership of the organizational team, a new member must be elected in the same manner as the original selection, and the vacancy must be filled within 30 days.

      7.  Each member of the organizational team serves without compensation of any kind.

      Sec. 28. 1.  An organizational team shall:

      (a) Provide assistance and advice to the principal of the local school precinct regarding the development of the plan of operation for the local school precinct;

      (b) Provide continued assistance and advice to the principal of the local school precinct in carrying out the plan of operation for the local school precinct; and

      (c) Whenever a vacancy occurs in the position of principal for the local school precinct, assist with the selection of the next principal in accordance with the provisions of this section.

      2.  The organizational team may provide input regarding the principal of the local school precinct to the school associate superintendent not more than two times each school year.

 


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      3.  Whenever a vacancy occurs in the position of principal for the local school precinct, the organizational team shall establish a list of qualifications that the organizational team determines are desirable for the next principal of the local school precinct and provide the list to the superintendent. The superintendent shall post notice of the vacancy. The superintendent shall interview qualified candidates and establish a list of at least three but not more than five candidates to submit to the organizational team. One member of the organizational team must be allowed to participate in interviewing candidates with the superintendent.

      4.  From the list of candidates submitted by the superintendent pursuant to subsection 3, the organizational team shall recommend one candidate for the position of principal within 15 school days after receipt of the recommendation. The superintendent, in consultation with the school associate superintendent, must, in his or her sole discretion, determine whether to hire the candidate recommended.

      5.  Each person who participates in interviewing candidates pursuant to this section shall comply with all laws that apply to an employer when making a decision about employment.

      6.  After the principal of the local school precinct is hired, the superintendent may, in his or her sole discretion, reassign and make other employment decisions concerning the principal.

      Sec. 29. 1.  If an organizational team objects to any part of the plan of operation for the local school precinct that is submitted by the principal of the local school precinct for approval pursuant to section 24 of this act, the organizational team may submit a request to the school associate superintendent to consider revising the plan in accordance with the recommendations of the organizational team.

      2.  If the school associate superintendent receives a request pursuant to subsection 1, the school associate superintendent must consider the recommendations of the organizational team and provide a written response to the organizational team upon making a final determination about the plan of operation for the local school precinct within 5 working days.

      3.  If the school associate superintendent:

      (a) Agrees with the recommendations of the organizational team, the school associate superintendent must work with the principal of the local school precinct to revise the plan of operation.

      (b) Does not agree with the recommendations of the organizational team, the school associate superintendent must inform the organizational team pursuant to subsection 2.

      4.  If the school associate superintendent does not agree with the recommendations of the organizational team, the organizational team may appeal the decision of the school associate superintendent to the superintendent. The superintendent must consider such an appeal within 5 days after receipt of the appeal. The decision of the superintendent is final and not subject to any further appeal or judicial review.

      Sec. 30. To facilitate broad community input and to provide advice and assistance to the organizational team of any local school precinct and the board of trustees of the large school district, one or more community education advisory boards may be created by:

      1.  The governing body of a city in which one or more local school precincts are located.

 


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      2.  The board of county commissioners of the county in which the large school district is located for any area in the county in which a local school precinct is located and which is not a city.

      Sec. 31. 1.  On or before May 1 of each year, the superintendent shall cause a survey to be administered to all persons involved with the local school precincts in the large school district to measure their satisfaction with the local school precincts. A survey must be administered to each:

      (a) Employee of each such local school precinct by classification of employee. Such classifications must include, without limitation, principals, vice principals and other administrative staff, teachers, custodians, counselors and school nurses.

      (b) Pupil who attends such a local school precinct.

      (c) Parent or legal guardian of a child who attends such a local school precinct.

      2.  On or before May 1 of each year, the superintendent shall cause a survey to be administered to each employee of central services. The surveys must be administered to each employee by classification of employee within each department or other organizational unit of central services to measure the satisfaction of the employees concerning, without limitation, their ability to serve the local school precincts, provide services in a timely manner and provide quality services to the local school precincts. Such a survey must also be administered to each school associate superintendent, principal and teacher to determine their satisfaction with the services provided to the local school precincts by central services.

      3.  A summary of the results of the surveys administered pursuant to this section must be posted on the Internet website of the large school district before the commencement of the next school year and be made available to any person upon request. Such a summary must identify results by each group of respondents and as overall results.

      Sec. 32. 1.  On or before October 1 of each year, the superintendent shall prepare a report with information from the school year before the immediately preceding school year which includes, without limitation:

      (a) A summary of the responsibilities for which authority to carry out was transferred to the local school precincts pursuant to section 16 of this act;

      (b) A summary of the results of the surveys administered pursuant to section 31 of this act;

      (c) An assessment of the performance of the local school precincts based upon specific measures of achievement which are established by the superintendent on or before January 1 of the immediately preceding school year;

      (d) An assessment of the effectiveness of operating local school precincts and the large school district in the manner set forth in sections 2 to 34, inclusive, of this act; and

      (e) Any recommendations for regulations or legislation to improve the operation of the local school precincts and the large school district in the manner set forth in sections 2 to 34, inclusive, of this act.

      2.  The superintendent shall forward the report prepared pursuant to subsection 1 to the:

      (a) Governor;

      (b) Superintendent of Public Instruction; and

 


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      (c) Director of the Legislative Counsel Bureau for transmittal to the members of the Legislature.

      Sec. 33. 1.  The Superintendent of Public Instruction shall take such actions as deemed necessary and appropriate to ensure that each large school district carries out the reorganization of the school district in accordance with sections 2 to 34, inclusive, of this act and any regulations adopted pursuant thereto.

      2.  Each large school district shall cooperate with the Superintendent of Public Instruction in carrying out the provisions of sections 2 to 34, inclusive, of this act, including, without limitation, by providing any financial or other information requested, including any information requested to ensure that the intent of the provisions of sections 2 to 34, inclusive, of this act is carried out.

      3.  Information that may be requested pursuant to subsection 2 and which each large school district must provide upon request to the Superintendent of Public Instruction includes, without limitation:

      (a) Budgets for personnel, excluding any personally identifiable information and names, made available by local school precinct and job function;

      (b) Expenditures made by the large school district, including, without limitation, expenditures for programs, support, transportation, police, legal services, food services, internal services, settlements and risk management payments;

      (c) The amount paid for general administrative services, including, without limitation, the salaries of administrators, staff of central services and school administrators, the salaries of the members of the board of trustees of the large school district and support services for the board of trustees, and other amounts paid for central services and school administration; and

      (d) Detailed information regarding other budgetary items of the large school district, including, without limitation, identification of all sources of money available to the large school district, expenditures of money for buildings, capital projects, federally funded projects and state funded projects and any other expenditures of money.

      4.  Each large school district shall provide any information requested pursuant to subsection 2 as soon as possible and in the format requested by the Superintendent of Public Instruction. If the large school district is unable to provide the information in the format requested, the information must be provided in another easily interpreted format that is approved by the Superintendent of Public Instruction.

      Sec. 34. The State Board shall adopt such regulations as it deems necessary and appropriate to carry out the provisions of sections 2 to 34, inclusive, of this act.

      Sec. 35. NRS 385.007 is hereby amended to read as follows:

      385.007  As used in this title, unless the context otherwise requires:

      1.  “Achievement charter school” means a public school operated by a charter management organization, as defined in NRS 388B.020, an educational management organization, as defined in NRS 388B.030, or other person pursuant to a contract with the Achievement School District pursuant to NRS 388B.210 and subject to the provisions of chapter 388B of NRS.

      2.  “Department” means the Department of Education.

 


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      3.  “English learner” has the meaning ascribed to it in 20 U.S.C. § 7801(20).

      4.  “Homeschooled child” means a child who receives instruction at home and who is exempt from compulsory attendance pursuant to NRS 392.070, but does not include an opt-in child.

      [4.  “Limited English proficient” has the meaning ascribed to it in 20 U.S.C. § 7801(25).]

      5.  “Local school precinct” has the meaning ascribed to it in section 8 of this act.

      6.  “Opt-in child” means a child for whom an education savings account has been established pursuant to NRS 353B.850, who is not enrolled full-time in a public or private school and who receives all or a portion of his or her instruction from a participating entity, as defined in NRS 353B.750.

      [6.]7.  “Public schools” means all kindergartens and elementary schools, junior high schools and middle schools, high schools, charter schools and any other schools, classes and educational programs which receive their support through public taxation and, except for charter schools, whose textbooks and courses of study are under the control of the State Board.

      [7.]8.  “State Board” means the State Board of Education.

      [8.]9.  “University school for profoundly gifted pupils” has the meaning ascribed to it in NRS 388C.040.

      Sec. 36. NRS 388G.050 is hereby amended to read as follows:

      388G.050  1.  There is hereby established a Program of Empowerment Schools for public schools within this State. The Program does not include a university school for profoundly gifted pupils or an achievement charter school.

      2.  The board of trustees of a school district which is located:

      (a) In a county whose population is less than 100,000 may approve public schools located within the school district to operate as empowerment schools.

      (b) In a county whose population is 100,000 or more but less than 700,000 shall approve not less than 5 percent of the schools located within the school district to operate as empowerment schools.

      3.  The board of trustees of a school district which participates in the Program of Empowerment Schools shall, on or before September 1 of each year, provide notice to the Department of the number of schools within the school district that are approved to operate as empowerment schools for that school year.

      4.  The board of trustees of a school district that participates in the Program of Empowerment Schools may create a design team for the school district. If such a design team is created, the membership of the design team must consist of the following persons appointed by the board of trustees:

      (a) At least one representative of the board of trustees;

      (b) The superintendent of the school district, or the superintendent’s designee;

      (c) Parents and legal guardians of pupils enrolled in public schools in the school district;

      (d) Teachers and other educational personnel employed by the school district, including, without limitation, school administrators;

      (e) Representatives of organizations that represent teachers and other educational personnel;

 


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      (f) Representatives of the community in which the school district is located and representatives of businesses within the community; and

      (g) Such other members as the board of trustees determines are necessary.

      5.  If a design team is created for a school district, the design team shall:

      (a) Recommend policies and procedures relating to empowerment schools to the board of trustees of the school district; and

      (b) Advise the board of trustees on issues relating to empowerment schools.

      6.  The board of trustees of a school district may accept gifts, grants and donations from any source for the support of the empowerment schools within the school district.

      Sec. 37. NRS 241.016 is hereby amended to read as follows:

      241.016  1.  The meetings of a public body that are quasi-judicial in nature are subject to the provisions of this chapter.

      2.  The following are exempt from the requirements of this chapter:

      (a) The Legislature of the State of Nevada.

      (b) Judicial proceedings, including, without limitation, proceedings before the Commission on Judicial Selection and, except as otherwise provided in NRS 1.4687, the Commission on Judicial Discipline.

      (c) Meetings of the State Board of Parole Commissioners when acting to grant, deny, continue or revoke the parole of a prisoner or to establish or modify the terms of the parole of a prisoner.

      3.  Any provision of law, including, without limitation, NRS 91.270, 219A.210, 239C.140, 281A.350, 281A.440, 281A.550, 284.3629, 286.150, 287.0415, 288.220, 289.387, 295.121, 360.247, 388.261, 388A.495, 388C.150, 392.147, 392.467, 394.1699, 396.3295, 433.534, 435.610, 463.110, 622.320, 622.340, 630.311, 630.336, 639.050, 642.518, 642.557, 686B.170, 696B.550, 703.196 and 706.1725, and sections 25 and 27 of this act, which:

      (a) Provides that any meeting, hearing or other proceeding is not subject to the provisions of this chapter; or

      (b) Otherwise authorizes or requires a closed meeting, hearing or proceeding,

Ê prevails over the general provisions of this chapter.

      4.  The exceptions provided to this chapter, and electronic communication, must not be used to circumvent the spirit or letter of this chapter to deliberate or act, outside of an open and public meeting, upon a matter over which the public body has supervision, control, jurisdiction or advisory powers.

      Sec. 38.  Chapter 332 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  Any action taken by a local school precinct pursuant to this chapter shall not be deemed to be an action by the large school district within which the local school precinct is located for purposes of this chapter and must not be aggregated with any contract of the large school district or any other local school precinct within the large school district.

      2.  As used in this section, “large school district” has the meaning ascribed to it in section 7 of this act.

      Sec. 39. NRS 332.025 is hereby amended to read as follows:

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

 


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      1.  “Authorized representative” means a person designated by the governing body to be responsible for the development, award and proper administration of all purchases and contracts for a local government or a department, division, agency, board or unit of a local government made pursuant to this chapter.

      2.  “Chief administrative officer” means the person directly responsible to the governing body for the administration of that particular entity.

      3.  “Evaluator” means an authorized representative, officer, employee, representative, agent, consultant or member of a governing body who has participated in:

      (a) The evaluation of bids;

      (b) Negotiations concerning purchasing by a local government; or

      (c) The review or approval of the award, modification or extension of a contract.

      4.  “Governing body” means the board, council, commission or other body in which the general legislative and fiscal powers of the local government are vested. The term includes a local school precinct.

      5.  “Local school precinct” has the meaning ascribed to it in section 8 of this act.

      6.  “Proprietary information” means:

      (a) Any trade secret or confidential business information that is contained in a bid submitted to a governing body or its authorized representative on a particular contract; or

      (b) Any other trade secret or confidential business information submitted to a governing body or its authorized representative by a bidder and designated as proprietary by the governing body or its authorized representative.

Ê As used in this subsection, “confidential business information” means any information relating to the amount or source of any income, profits, losses or expenditures of a person, including data relating to cost, price, or the customers of a bidder which is submitted in support of a bid. The term does not include the amount of a bid submitted to a governing body or its authorized representative.

      [6.]7.  “Trade secret” has the meaning ascribed to it in NRS 600A.030.

      Sec. 40.  As used in sections 40 to 45, inclusive, of this act:

      1.  “Large school district” has the meaning ascribed to it in section 7 of this act.

      2.  “Local school precinct” has the meaning ascribed to it in section 8 of this act.

      Sec. 41.  1.  Notwithstanding any time frame established by the provisions of sections 2 to 34, inclusive, of this act and notwithstanding any other provisions of this act or any other law to the contrary, each large school district which exists on the effective date of this act shall comply with the provisions of this act, and any duty or act which was required to have been performed or completed before the effective date of this act pursuant to the regulation adopted by the State Board of Education, LCB File No. R142-16, shall be deemed to have been required pursuant to this act. Any failure to have performed or completed any such duty or act is not excused as a result of the enactment of this act, and the requirement to perform or complete those duties or acts continues on and after the effective date of this act.

      2.  If any other provisions of this act or any other law conflict with the provisions of this section, the provisions of this section prevail, take precedence and must control, and the conflicting provisions must be interpreted and applied in accordance with the purpose, intent and spirit of this section which is to implement and carry out, as soon as possible, but not later than the beginning of the 2017-2018 school year for each large school district which exists on the effective date of this act, the reorganization of each large school district from a centralized operational model to a more decentralized and autonomous site-based operational model in accordance with the educational policies and objectives of this State as set forth in section 2 of this act.

 


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precedence and must control, and the conflicting provisions must be interpreted and applied in accordance with the purpose, intent and spirit of this section which is to implement and carry out, as soon as possible, but not later than the beginning of the 2017-2018 school year for each large school district which exists on the effective date of this act, the reorganization of each large school district from a centralized operational model to a more decentralized and autonomous site-based operational model in accordance with the educational policies and objectives of this State as set forth in section 2 of this act.

      Sec. 42.  1.  On or before July 1, 2017, the Department of Education shall, in consultation with each large school district, review the responsibilities, skills and competencies necessary to serve as the principal of a local school precinct and consider whether the current licensing requirements adequately prepare a principal for that role.

      2.  If the Department determines that additional licensing requirements are necessary to ensure that principals are prepared to serve as the principal of a local school precinct, the Department must provide recommendations for revisions to the Nevada Administrative Code to the Commission on Professional Standards in Education created by NRS 391.011, including whether to create a separate endorsement for a person who will serve as the principal of a local school precinct.

      Sec. 43.  1.  On or before July 1, 2018, the Department of Education shall assess the equity of using the average unit cost for budgeting for the local school precincts and its financial impact on local school precincts.

      2.  Based upon the assessment made pursuant to subsection 1, the Department shall make a recommendation to the State Board of Education and the Nevada Legislature regarding whether to continue to use the average unit cost for budgeting for salaries and benefits of staff of the local school precincts or whether to budget for such expenditures in another manner.

      3.  If the Department recommends that local school precincts budget in another manner, the Department must submit any proposed legislation that is necessary to carry out the recommendation to the next session of the Nevada Legislature.

      Sec. 44.  1.  The regulation adopted by the State Board of Education, LCB File No. R142-16, is hereby declared to be void and unenforceable on the effective date of this act, except that the Clark County School District remains responsible for reimbursement for the cost of the consultant with whom a contract was entered into to oversee the transition of the school district. Such reimbursement must be made through a deduction in the money appropriated to the school district for the next biennium. In preparing supplements to the Nevada Administrative Code on or after the effective date of this act, the Legislative Counsel shall remove that regulation.

      2.  To the extent that any large school district began to reorganize pursuant to the regulation adopted by the State Board of Education, LCB File No. R142-16, the actions taken by the large school district shall be deemed to have been taken pursuant to the provisions of this act.

      Sec. 45.  1.  Notwithstanding section 48 of this act which repeals chapter 543, Statutes of Nevada 2015, at page 3842, the Advisory Committee to Develop a Plan to Reorganize the Clark County School District created pursuant to that chapter and the members appointed to the Advisory Committee shall continue as an Advisory Committee to Monitor the Implementation of the Reorganization of Large School Districts pursuant to this act until August 31, 2018.

 


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      2.  The Advisory Committee shall meet upon the call of the Chair to receive updates and information concerning the implementation of the reorganization of large school districts. The Advisory Committee may exercise any of the investigative powers set forth in NRS 218E.105 to 218E.140, inclusive.

      3.  Each large school district which is subject to the provisions of this act, and the superintendent of the large school district, shall cooperate with the Advisory Committee and provide such information as requested by the Advisory Committee, including, without limitation, any financial information, in a timely manner and in an agreed upon format.

      4.  The Advisory Committee may provide advice and recommendations to the Department of Education and the State Board of Education concerning the implementation of the reorganization of large school districts and shall submit any recommendations for legislation to the Director of the Legislative Counsel Bureau for transmittal to the 80th Session of the Nevada Legislature.

      5.  Any vacancy on the Advisory Committee must be filled in the same manner as the original appointment.

      6.  Members of the Advisory Committee continue to serve without compensation, except that a member is entitled, while engaged in the business of the Advisory Committee, to receive the per diem allowance and travel expenses provided for state officers and employees generally.

      Sec. 46.  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. 47.  The provisions of NRS 354.599 do not apply to any additional expenses of a local government that are related to the provisions of this act.

      Sec. 48. Chapter 543, Statutes of Nevada 2015, at page 3842, is hereby repealed.

      Sec. 49.  This act becomes effective upon passage and approval.

________

CHAPTER 12, AB 35

Assembly Bill No. 35–Committee on Commerce and Labor

 

CHAPTER 12

 

[Approved: May 8, 2017]

 

AN ACT relating to insurance; revising provisions governing examinations of insurers; requiring the annual submission of a corporate governance annual disclosure by certain insurers and insurance groups; making confidential certain information contained in and relating to a corporate governance annual disclosure; authorizing the sharing of items relating to a corporate governance annual disclosure in certain circumstances; authorizing the Commissioner of Insurance to retain third-party consultants and enter into certain agreements; providing for the group-wide supervision of internationally active insurance groups; revising provisions governing captive insurers; providing penalties; and providing other matters properly relating thereto.

 


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Legislative Counsel’s Digest:

      Existing law authorizes the Commissioner of Insurance to regulate insurance in this State. (NRS 679B.120) Sections 1 and 2 of this bill revise provisions governing examinations of insurers. Section 3 of this bill makes a conforming change related to section 1.

      Existing law authorizes a domestic insurer to organize or acquire one or more subsidiaries and requires certain insurers contained within such an insurance holding company system to register with the Commissioner. (NRS 692C.130, 692C.260) Existing law also requires an insurer or insurance group to regularly conduct an Own Risk and Solvency Assessment and submit a summary report to the Commissioner. (NRS 692C.3512, 692C.3514)

      Sections 5-12 of this bill adopt certain provisions of the National Association of Insurance Commissioners’ Corporate Governance Annual Disclosure Model Act. Section 7 requires certain insurers or insurance groups to annually submit to the Commissioner of Insurance a corporate governance annual disclosure and specifies the contents of the corporate governance annual disclosure. Section 9 authorizes the Commissioner to adopt regulations setting forth instructions for the preparation of a corporate governance annual disclosure. Section 10 makes a corporate governance annual disclosure and certain other documents, materials and information confidential and authorizes the Commissioner to share such items in certain circumstances. Section 11 authorizes the Commissioner to retain third-party consultants and enter into certain agreements to assist in the performance of his or her regulatory duties.

      Sections 13-16 of this bill adopt certain provisions of the National Association of Insurance Commissioners’ Insurance Holding Company System Regulatory Act. Section 16 authorizes the Commissioner to act as the group-wide supervisor for an internationally active insurance group in certain circumstances. Section 16 authorizes an insurance holding company system which does not qualify as an internationally active insurance group to request that the Commissioner determine or acknowledge a group-wide supervisor for the insurance holding company system. Section 16 provides for the Commissioner to determine whether the Commissioner or another person is the appropriate group-wide supervisor for an internationally active insurance group. Section 16 authorizes the Commissioner to cooperate with other regulatory officials and enter into agreements with or obtain documentation from certain persons or entities. Finally, section 16 requires an insurer subject to the section to pay the reasonable expenses of the Commissioner in administering the section.

      Existing law provides for the creation of captive insurers and their regulation by the Commissioner. (NRS 694C.180, 694C.195, 694C.200) Sections 21-27 of this bill add to and revise the provisions governing captive insurers, including, without limitation, state-chartered risk retention groups. Sections 22 and 25 provide for specified existing law to apply to state-chartered risk retention groups. Section 27 revises provisions governing reports and statements which must be filed by captive insurers and state-chartered risk retention groups. Sections 21, 23 and 24 make conforming changes related to sections 22 and 25.

 

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

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. NRS 679B.230 is hereby amended to read as follows:

      679B.230  1.  For the purpose of determining its financial condition, fulfillment of its contractual obligations and compliance with law, the Commissioner shall, as often as he or she deems advisable, examine the affairs, transactions, accounts, records and assets of each authorized insurer, and of any person as to any matter relevant to the financial affairs of the insurer or to the examination. Except as otherwise expressly provided in this title, the Commissioner shall so examine each authorized insurer not less frequently than every 5 years.

 


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title, the Commissioner shall so examine each authorized insurer not less frequently than every 5 years. In scheduling and determining the nature, scope and frequency of the examinations, the Commissioner shall consider:

      (a) The results of any analysis of any applicable financial statement;

      (b) Any change in management or ownership of the insurer;

      (c) Any applicable actuarial opinion or summary;

      (d) Any applicable report of an independent certified public accountant; and

      (e) Any other applicable criteria set forth in the most recent edition of the Financial Condition Examiners Handbook, published by the NAIC, and the most recent edition of the Market Regulation Handbook, published by the NAIC, which are in effect when the Commissioner exercises his or her discretion pursuant to this section.

      2.  In examining an insurer pursuant to this section, the Commissioner may examine or investigate any person, or the business of any person, if the examination or investigation is, in the sole discretion of the Commissioner, necessary or material to the examination of the insurer.

      3.  Examination of an alien insurer must be limited to its insurance transactions, assets, trust deposits and affairs in the United States, except as otherwise required by the Commissioner.

      [2.] 4.  The Commissioner shall in like manner examine each insurer applying for an initial certificate of authority to transact insurance in this state.

      [3.] 5.  In lieu of an examination under this chapter, the Commissioner may accept a report of the examination of a foreign or alien insurer prepared by the Division for a foreign insurer’s state of domicile or an alien insurer’s state of entry into the United States.

      [4.] 6.  As far as practical the examination of a foreign or alien insurer must be made in cooperation with the insurance supervisory officers of other states in which the insurer transacts business.

      Sec. 2. NRS 679B.270 is hereby amended to read as follows:

      679B.270  1.  No later than 60 days after the completion of an examination, the examiner designated by the Commissioner shall [make a true] file a verified report [thereof] of examination, in writing, which must [comprise] be comprised only of facts appearing upon the books, records or other documents of the [person] insurer or its agents or other persons examined [,] concerning its affairs, or as ascertained from the [sworn] testimony of the officers or agents or other persons examined concerning its affairs, and such conclusions and recommendations as [may] the examiner finds reasonably [be] warranted from the facts. The report of examination must be verified by the oath of the examiner making the report.

      2.  Such a report of examination of an insurer so verified is prima facie evidence in any action or proceeding for the receivership, conservation or liquidation of the insurer brought in the name of the state against the insurer, its officers or agents upon the facts stated therein.

      Sec. 3. NRS 681B.400 is hereby amended to read as follows:

      681B.400  1.  The following types of information shall qualify as confidential information:

      (a) A memorandum in support of an opinion submitted pursuant to NRS 681B.200 to 681B.260, inclusive, or 681B.350 and any other documents, materials and other information, including, without limitation, all working papers, and copies thereof, created, produced or obtained by or disclosed to the Commissioner or any other person in connection with such memorandum;

 


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papers, and copies thereof, created, produced or obtained by or disclosed to the Commissioner or any other person in connection with such memorandum;

      (b) All documents, materials and other information, including, without limitation, all working papers, and copies thereof, created, produced or obtained by or disclosed to the Commissioner or any other person in the course of an examination authorized by subsection [2] 4 of NRS 679B.230 or subsection 7 of NRS 681B.300, provided that if an examination report or other material prepared in connection with an examination authorized by NRS 679B.230 to 679B.300, inclusive, is not held as private and confidential information in accordance with the provisions of NRS 679B.230 to 679B.300, inclusive, an adopted examination report created in accordance with the provisions of subsection [2] 4 of NRS 679B.230 or subsection 7 of NRS 681B.300 shall not be deemed confidential information;

      (c) Any reports, documents, materials and other information developed by an applicable company in support of, or in connection with, an annual certification by the applicable company in accordance with the provisions of paragraph (b) of subsection 1 of NRS 681B.360 evaluating the effectiveness of the company’s internal controls with respect to a principle-based valuation, and any other documents, materials and other information, including, without limitation, all working papers, and copies thereof, created, produced or obtained by or disclosed to the Commissioner or any other person in connection with such reports, documents, materials and other information;

      (d) Any principle-based valuation report developed in accordance with paragraph (c) of subsection 1 of NRS 681B.360, and any other documents, materials and other information, including, without limitation, all working papers, and copies thereof, created, produced or obtained by or disclosed to the Commissioner or any other person in connection with such report; and

      (e) Any experience data and experience materials, and any other documents, materials, data and other information, including, without limitation, all working papers, and copies thereof, created, produced or obtained by or disclosed to the Commissioner or any other person in connection with such data and materials.

      2.  As used in this section:

      (a) “Experience data” means all documents, materials, data and other information submitted by an applicable company to the Commissioner, a designated experience reporting agent or other such person authorized to act on behalf of the Commissioner pursuant to NRS 681B.500 and 681B.510.

      (b) “Experience materials” means all documents, materials, data and other information, including, without limitation, all working papers, and copies thereof, created or produced in connection with experience data including, without limitation, any potentially company-identifying or personally identifiable information, that is provided to or obtained by the Commissioner, a designated experience reporting agent or other such person authorized to act on behalf of the Commissioner pursuant to NRS 681B.500 and 681B.510.

      Sec. 4. Chapter 692C of NRS is hereby amended by adding thereto the provisions set forth as sections 5 to 16, inclusive, of this act.

      Sec. 5. 1.  The requirements of sections 5 to 12, inclusive, of this act apply to all insurers domiciled in this State, including, without limitation:

 


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      (a) Insurers, as identified in chapter 680A of NRS;

      (b) Hospital, medical or dental service corporations, as identified in chapter 695B of NRS;

      (c) Health maintenance organizations, as identified in chapter 695C of NRS;

      (d) Plans for dental care, as identified in chapter 695D of NRS;

      (e) Prepaid limited health service organizations, as identified in chapter 695F of NRS; and

      (f) Risk retention groups and state-chartered risk retention groups, as identified in 15 U.S.C. § 3902, 42 U.S.C. § 9673 and chapters 694C and 695E of NRS.

      2.  Except as otherwise provided in subsection 3, nothing in sections 5 to 12, inclusive, of this act shall be construed to limit the Commissioner’s authority, or the rights or obligations of third parties, under NRS 679B.230 to 679B.300, inclusive.

      3.  Nothing in sections 5 to 12, inclusive, of this act shall be construed to prescribe or impose corporate governance standards and internal procedures beyond those which are required by the appropriate provisions of title 7 of NRS.

      Sec. 6. As used in sections 5 to 12, inclusive, of this act, unless the context otherwise requires, “corporate governance annual disclosure” means a confidential report filed by an insurer or insurance group made in accordance with the requirements of sections 5 to 12, inclusive, of this act.

      Sec. 7. 1.  Each insurer, or the insurance group of which the insurer is a member, shall, not later than June 1 of each calendar year, submit to the Commissioner a corporate governance annual disclosure which contains the information prescribed by the Commissioner by regulation pursuant to subsection 2 of section 9 of this act. If an insurer is a member of an insurance group, the insurer shall submit the report required by this section to the insurance commissioner of the lead state for the insurance group in accordance with the laws of the lead state, as determined by the procedures contained in the most recent Financial Analysis Handbook published by the National Association of Insurance Commissioners.

      2.  The corporate governance annual disclosure must include the signature of the chief executive officer or corporate secretary of the insurer or insurance group attesting that, to the best of that person’s belief and knowledge, the insurer or insurance group has implemented the corporate governance practices described in the corporate governance annual disclosure and that a copy of the corporate governance annual disclosure has been provided to the board of directors, or the appropriate committee thereof, of the insurer or insurance group.

      3.  An insurer that is not required to submit a corporate governance annual disclosure to the Commissioner pursuant to subsection 1 shall do so upon the Commissioner’s request.

      4.  For purposes of completing the corporate governance annual disclosure, the insurer or insurance group may provide information regarding the corporate governance at the level of the legal entity which exercises ultimate control over the insurer or insurance group, of an intermediate holding company or of the insurer or insurance group, depending upon the manner in which the insurer or insurance group has structured its system of corporate governance.

 


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structured its system of corporate governance. The insurer or insurance group shall, to the extent practicable, provide such information at the level at which:

      (a) The insurer or insurance group determines the amount of risk it is willing to bear;

      (b) The earnings, capital, liquidity, operations and reputation of the insurer or insurance group are overseen collectively and the supervision of those factors are coordinated and exercised; or

      (c) Legal liability for a failure of general corporate governance duties would be placed.

Ê If the insurer or insurance group determines the level of reporting based on these criteria, it shall indicate in the corporate governance annual disclosure which of the three criteria was used to determine the level of reporting and explain any changes in the level of reporting used for subsequent corporate governance annual disclosures.

      5.  The review of the corporate governance annual disclosure and any additional requests for information must be performed by the lead state as determined by the procedures contained in the most recent Financial Analysis Handbook published by the National Association of Insurance Commissioners.

      6.  An insurer or insurance group which provides information substantially similar to the information required by sections 5 to 12, inclusive, of this act in other documents provided to the Commissioner, including, without limitation, proxy statements filed in conjunction with any forms filed pursuant to NRS 692C.270 or any regulations adopted pursuant thereto, or other state or federal filings provided to the Division, may cross-reference in the corporate governance annual disclosure the document in which the information is included rather than duplicating such information in the corporate governance annual disclosure.

      Sec. 8. The Commissioner may, upon notice and opportunity for all interested persons to be heard, issue such rules, regulations and orders as are necessary to carry out the provisions of sections 5 to 12, inclusive, of this act.

      Sec. 9. 1.  Except as otherwise provided in subsection 2, an insurer or insurance group may exercise discretion over the responses to inquiries in the corporate governance annual disclosure if the corporate governance annual disclosure contains the material information necessary to allow the Commissioner to gain an understanding of the corporate governance structure, policies and practices of the insurer or insurance group. The Commissioner may request additional information that he or she determines is material and necessary to gain a clear understanding of the corporate governance policies or the reporting, information system or controls implementing the corporate governance policies of the insurer or insurance group.

      2.  Each insurer or insurance group shall prepare its corporate governance annual disclosure in a manner that is consistent with the instructions adopted by the Commissioner by regulation for the corporate governance annual disclosure. The insurer or insurance group shall maintain documentation and supporting information and make such material available upon examination or request by the Commissioner.

      Sec. 10. 1.  Except as otherwise provided in sections 5 to 12, inclusive, of this act, and NRS 239.0115, any documents, materials and other information, including, without limitation, a corporate governance annual disclosure, in the possession or control of the Division which are obtained by, created by or disclosed to the Commissioner or any other person in accordance with the provisions of sections 5 to 12, inclusive, of this act are proprietary and constitute trade secrets.

 


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other information, including, without limitation, a corporate governance annual disclosure, in the possession or control of the Division which are obtained by, created by or disclosed to the Commissioner or any other person in accordance with the provisions of sections 5 to 12, inclusive, of this act are proprietary and constitute trade secrets. All such documents, materials and other information are:

      (a) Confidential and privileged from disclosure;

      (b) Not subject to subpoena; and

      (c) Not subject to discovery or admissible in evidence in any private civil action.

      2.  The Commissioner may use the documents, materials or other information described in subsection 1 in the furtherance of any regulatory or legal action brought as a part of the official duties of the Commissioner. The Commissioner shall not otherwise make the documents, materials or other information public without the prior written consent of the insurer. Nothing in sections 5 to 12, inclusive, of this act shall be construed to require the written consent of the insurer before the Commissioner may share or receive confidential documents, materials or other information relating to a corporate governance annual disclosure pursuant to subsection 4 to assist in the performance of the regulatory duties of the Commissioner.

      3.  Neither the Commissioner nor any person who has received documents, materials or other information relating to a corporate governance annual disclosure through examination or otherwise, while acting under the authority of the Commissioner, or with whom such documents, materials or other information are shared pursuant to sections 5 to 12, inclusive, of this act, may be permitted or required to testify in any private civil action concerning any confidential documents, materials or information described in subsection 1.

      4.  To assist in the performance of his or her regulatory duties, the Commissioner may:

      (a) Upon request, share documents, materials or other information relating to a corporate governance annual disclosure, including, without limitation, the confidential documents, materials or information described in subsection 1 and any other proprietary or trade secret documents and materials, with another state, federal or international financial regulatory agency, including, without limitation, the members of any supervisory college, as defined in NRS 692C.359, the National Association of Insurance Commissioners and a third-party consultant retained pursuant to section 11 of this act, if the recipient:

             (1) Agrees in writing to maintain the confidentiality and privileged status of the documents, materials or other information relating to a corporate governance annual disclosure; and

             (2) Has verified in writing the legal authority to maintain confidentiality; and

      (b) Receive documents, materials and other information relating to a corporate governance annual disclosure, including, without limitation, documents, materials or information which would otherwise be confidential and privileged and any other proprietary or trade secret documents and materials, from a regulatory official of another state, federal or international financial regulatory agency, including, without limitation, the members of any supervisory college, as defined in NRS 692C.359, and the National Association of Insurance Commissioners and shall maintain as confidential or privileged any document, material or information received if the Commissioner is given notice or understands that such an item is confidential or privileged under the laws of the jurisdiction that is the source of the document, material or information.

 


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NRS 692C.359, and the National Association of Insurance Commissioners and shall maintain as confidential or privileged any document, material or information received if the Commissioner is given notice or understands that such an item is confidential or privileged under the laws of the jurisdiction that is the source of the document, material or information.

      5.  The sharing of information and documents by the Commissioner pursuant to sections 5 to 12, inclusive, of this act does not constitute a delegation of regulatory authority or rulemaking, and the Commissioner is solely responsible for the administration, execution and enforcement of the provisions of sections 5 to 12, inclusive, of this act.

      6.  The disclosure of a document, material or information relating to a corporate governance annual disclosure to the Commissioner pursuant to sections 5 to 12, inclusive, of this act and the sharing of such an item as authorized by this section does not waive any applicable privilege or claim of confidentiality in such an item.

      Sec. 11. To assist the performance of the Commissioner’s regulatory duties, the Commissioner:

      1.  May retain, at the expense of the insurer or insurance group, third-party consultants, including, without limitation, attorneys, actuaries, accountants and other experts who are not part of the staff of the Commissioner, as may be reasonably necessary to assist the Commissioner in reviewing a corporate governance annual disclosure and related information or the compliance of an insurer or insurance group with sections 5 to 12, inclusive, of this act, if:

      (a) Any third-party consultant so retained is under the direction and control of the Commissioner and acts in a purely advisory capacity;

      (b) The third-party consultant is subject to the same confidentiality standards and requirements as the Commissioner; and

      (c) The third-party consultant verifies to the Commissioner before being retained, and provides notice to the insurer or insurance group, as applicable, that he or she does not have a conflict of interest and has internal procedures in place to monitor the existence of a conflict of interest and to comply with the confidentiality standards and requirements of sections 5 to 12, inclusive, of this act.

      2.  Shall enter into a written agreement with the National Association of Insurance Commissioners and with any third-party consultant retained by the Commissioner which governs the sharing and use of information provided pursuant to sections 5 to 12, inclusive, of this act. Such a written agreement must:

      (a) Contain specific procedures and protocols for maintaining the confidentiality and security of information relating to a corporate governance annual disclosure which is shared with the National Association of Insurance Commissioners or third-party consultant, including, without limitation, procedures and protocols for sharing by the National Association of Insurance Commissioners only with other state regulators from states in which an insurance group has domiciled insurers;

      (b) Provide that the recipient of documents, materials or other information relating to a corporate governance annual disclosure agrees in writing to maintain the confidentiality and privileged status of such items and has verified in writing the legal authority to maintain confidentiality;

 


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      (c) Specify that ownership of any information relating to a corporate governance annual disclosure shared with the National Association of Insurance Commissioners or third-party consultant remains with the Commissioner and the use of the information by the National Association of Insurance Commissioners or third-party consultant is subject to the discretion of the Commissioner;

      (d) Prohibit the National Association of Insurance Commissioners or third-party consultant from storing the shared information in a permanent database after the underlying analysis is completed;

      (e) Require the National Association of Insurance Commissioners or third-party consultant to provide prompt notice to the Commissioner and to the insurer or insurance group, as applicable, regarding any subpoena, request for disclosure or request for production of the information relating to the corporate governance annual disclosure of the insurer or insurance group, as applicable; and

      (f) Require the National Association of Insurance Commissioners or third-party consultant to consent to intervention by an insurer or insurance group in any judicial or administrative action in which the National Association of Insurance Commissioners or third-party consultant may be required to disclose confidential information about the insurer or insurance group which is shared with the National Association of Insurance Commissioners or third-party consultant.

      Sec. 12. 1.  If an insurer or insurance group fails, without just cause, to timely file a corporate governance annual disclosure as required in sections 5 to 12, inclusive, of this act, the insurer or insurance group shall, after receiving notice and a hearing, pay a civil penalty of $1,500 for each day the insurer or insurance group fails to file the corporate governance annual disclosure. The civil penalty may be recovered in a civil action brought by the Commissioner. Any civil penalty paid pursuant to this subsection must be deposited into the State General Fund.

      2.  The maximum civil penalty that may be imposed pursuant to subsection 1 is $100,000. The Commissioner may reduce the amount of the civil penalty if the insurer or insurance group demonstrates to the satisfaction of the Commissioner that the payment of the civil penalty would constitute a financial hardship on the insurer or insurance group.

      Sec. 13. As used in sections 13 to 16, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 14 and 15 of this act have the meanings ascribed to them in those sections.

      Sec. 14. “Group-wide supervisor” means a regulatory official who is authorized to engage in conducting and coordinating supervision activities across an insurance group and who is determined or acknowledged by the Commissioner pursuant to section 16 of this act to have sufficient significant contacts with the internationally active insurance group.

      Sec. 15. “Internationally active insurance group” means an insurance holding company system which:

      1.  Includes an insurer registered under NRS 692C.260; and

      2.  Meets the following criteria:

      (a) Writes premiums in at least three countries;

      (b) Writes 10 percent or more of the insurance holding company system’s total gross written premiums outside of the United States; and

 


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      (c) Based on a 3-year rolling average, has total assets of $50 billion or more or total gross written premiums of $10 billion or more.

      Sec. 16. 1.  The Commissioner may act as the group-wide supervisor for an internationally active insurance group in accordance with the provisions of this section. The Commissioner may acknowledge another regulatory official as the group-wide supervisor of an internationally active insurance group if the internationally active insurance group:

      (a) Does not have substantial insurance operations in the United States;

      (b) Has substantial insurance operations in the United States, but not in this State; or

      (c) Has substantial insurance operations in the United States and this State, but the Commissioner has determined pursuant to the factors set forth in subsections 3 and 8 that the other regulatory official is the appropriate group-wide supervisor.

      2.  An insurance holding company system that does not otherwise qualify as an internationally active insurance group may request that the Commissioner make a determination or acknowledgment of a group-wide supervisor pursuant to this section.

      3.  In cooperation with other state, federal and international regulatory agencies, the Commissioner shall identify a single group-wide supervisor for each internationally active insurance group. The Commissioner may determine that the Commissioner is the appropriate group-wide supervisor for an internationally active insurance group which conducts substantial insurance operations that are concentrated in this State. The Commissioner may acknowledge that a regulatory official from another jurisdiction is the appropriate group-wide supervisor for an internationally active insurance group. The Commissioner shall consider the following factors when making a determination or acknowledgment under this subsection:

      (a) The place of domicile of the insurers within the internationally active insurance group that hold the largest share of the group’s written premiums, assets or liabilities;

      (b) The place of domicile of the top-tiered insurer or insurers in the insurance holding company system of the internationally active insurance group;

      (c) The location of the executive offices or largest operational offices of the internationally active insurance group;

      (d) Whether another regulatory official is acting or is seeking to act as the group-wide supervisor under a regulatory system that the Commissioner determines to be:

             (1) Substantially similar to the system of regulation provided under the laws of this State; or

             (2) Otherwise sufficient in terms of providing for group-wide supervision, enterprise risk analysis and cooperation with other regulatory officials; and

      (e) Whether another regulatory official acting or seeking to act as the group-wide supervisor provides the Commissioner with reasonably reciprocal recognition and cooperation.

Ê However, a person identified under this section as the group-wide supervisor may determine that it is appropriate to acknowledge another person to serve as the group-wide supervisor. The acknowledgment of the group-wide supervisor must be made after consideration of the factors listed in paragraphs (a) to (e), inclusive, and must be made in cooperation with and subject to the acknowledgment of other regulatory officials involved with supervision of members of the internationally active insurance group and in consultation with the internationally active insurance group.

 


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group-wide supervisor must be made after consideration of the factors listed in paragraphs (a) to (e), inclusive, and must be made in cooperation with and subject to the acknowledgment of other regulatory officials involved with supervision of members of the internationally active insurance group and in consultation with the internationally active insurance group.

      4.  Notwithstanding any other provision of law and except as otherwise provided in this subsection, when another regulatory official is acting as the group-wide supervisor of an internationally active insurance group, the Commissioner shall acknowledge that regulatory official as the group-wide supervisor. However, if a material change in the internationally active insurance group results in:

      (a) The internationally active insurance group’s insurers domiciled in this State holding the largest share of the group’s premiums, assets or liabilities; or

      (b) This State being the place of domicile of the top-tiered insurer or insurers in the insurance holding company system of the internationally active insurance group,

Ê the Commissioner shall make a determination or acknowledgment as to the appropriate group-wide supervisor for such an internationally active insurance group pursuant to subsection 3.

      5.  Pursuant to NRS 692C.410, the Commissioner may collect from any insurer registered pursuant to NRS 692C.260 all information necessary to determine whether the Commissioner may act as the group-wide supervisor of an internationally active insurance group or if the Commissioner may acknowledge another regulatory official to act as the group-wide supervisor. Before issuing a determination that the Commissioner act as the group-wide supervisor of an internationally active insurance group, the Commissioner shall notify the insurer registered pursuant to NRS 692C.410 and the ultimate controlling person within the internationally active insurance group. The Commissioner shall allow the internationally active insurance group not less than 30 days to provide the Commissioner with additional information pertinent to the pending determination.

      6.  If the Commissioner is the group-wide supervisor for an internationally active insurance group, the Commissioner may:

      (a) Assess the enterprise risks within the internationally active insurance group to ensure that:

             (1) The material financial condition and liquidity risks to the members of the internationally active insurance group that are engaged in the business of insurance are identified by management; and

             (2) Reasonable and effective mitigation measures are in place;

      (b) Request, from any member of the internationally active insurance group, any information necessary and appropriate to assess enterprise risk, including, without limitation, information about the members of the internationally active insurance group relating to:

             (1) Governance, risk assessment and management;

             (2) Capital adequacy; and

             (3) Material intercompany transactions;

      (c) Coordinate and, through the authority of the regulatory officials of the jurisdictions where members of the internationally active insurance group are domiciled, compel development and implementation of reasonable measures designed to ensure that the internationally active insurance group is able to timely recognize and mitigate enterprise risks to members of the internationally active insurance group that are engaged in the business of insurance;

 


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reasonable measures designed to ensure that the internationally active insurance group is able to timely recognize and mitigate enterprise risks to members of the internationally active insurance group that are engaged in the business of insurance;

      (d) Communicate with other state, federal and international regulatory agencies for members within the internationally active insurance group and share relevant information subject to the confidentiality provisions of NRS 692C.420, including, without limitation, through supervisory colleges as defined in NRS 692C.359;

      (e) Enter into agreements with or obtain documentation from any insurer registered under NRS 692C.410, any member of the internationally active insurance group and any other state, federal and international regulatory agencies for members of the internationally active insurance group which provide the basis for or otherwise clarify the role of the Commissioner as group-wide supervisor, including, without limitation, provisions for resolving disputes with other regulatory officials; and

      (f) Engage in such other group-wide supervision activities consistent with the provisions of this subsection as considered necessary by the Commissioner.

      7.  Any agreement entered into or document obtained pursuant to paragraph (e) of subsection 6 must not serve as evidence in any proceeding that any insurer or person within an insurance holding company system not domiciled or incorporated in this State is doing business in this State or is otherwise subject to jurisdiction in this State.

      8.  If the Commissioner acknowledges that another regulatory official from a jurisdiction that is not accredited by the National Association of Insurance Commissioners is a group-wide supervisor, the Commissioner may reasonably cooperate, through supervisory colleges as defined in NRS 692C.359 or otherwise, with activities undertaken by the group-wide supervisor if:

      (a) The Commissioner’s cooperation complies with the laws of this State; and

      (b) The regulatory official acknowledged as the group-wide supervisor also recognizes and cooperates with the Commissioner’s activities as a group-wide supervisor for other internationally active insurance groups where applicable.

Ê If such recognition and cooperation is not reasonably reciprocal, the Commissioner may refuse recognition and cooperation.

      9.  The Commissioner may enter into agreements with or obtain documentation from any insurer registered under NRS 692C.410, any affiliate of such an insurer and other state, federal and international regulatory agencies for members of an internationally active insurance group that provide the basis for or otherwise clarify a regulatory official’s role as group-wide supervisor.

      10.  The Commissioner may adopt regulations necessary for the administration of this section.

      11.  A registered insurer subject to this section shall be liable for and pay the reasonable expenses of the Commissioner for the administration of this section, including the engagement of attorneys, actuaries and any other professionals and all reasonable travel expenses.

 


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      Sec. 17. NRS 692C.057 is hereby amended to read as follows:

      692C.057  “Insurance group” means, for the purpose of conducting an ORSA [,] or submitting a corporate governance annual disclosure, those insurers and affiliates included within an insurance holding company system.

      Sec. 18. NRS 692C.060 is hereby amended to read as follows:

      692C.060  “Insurance holding company system” means a combination of two or more affiliated persons, one or more of which is an insurer. The term does not include a domestic insurer or domestic holding company system authorized and doing business solely in this State which is not affiliated with a foreign or alien insurer.

      Sec. 19. NRS 692C.420 is hereby amended to read as follows:

      692C.420  1.  Except as otherwise provided in NRS 239.0115, all information, documents and copies thereof obtained by or disclosed to the Commissioner or any other person in the course of an examination or investigation made pursuant to NRS 692C.410, and all information reported or provided to the Commissioner pursuant to section 16 of this act, subsections 12 and 13 of NRS 692C.190 and NRS 692C.260 to 692C.350, inclusive, is confidential, is not subject to subpoena, is not subject to discovery, is not admissible in evidence in any private civil action and must not be made public by the Commissioner or any other person, except to insurance departments of other states, without the prior written consent of the insurer to which it pertains unless the Commissioner, after giving the insurer and its affiliates who would be affected thereby notice and an opportunity to be heard, determines that the interests of policyholders, shareholders or the public will be served by the publication thereof, in which event he or she may publish all or any part thereof in any manner as he or she may deem appropriate.

      2.  The Commissioner or any person who receives any documents, materials or other information while acting under the authority of the Commissioner must not be permitted or required to testify in a private civil action concerning any information, document or copy thereof specified in subsection 1.

      3.  The Commissioner may share or receive any information, document or copy thereof specified in subsection 1 in accordance with NRS 679B.122. The sharing or receipt of the information, document or copy pursuant to this subsection does not waive any applicable privilege or claim of confidentiality in the information, document or copy.

      4.  The Commissioner shall enter into a written agreement with the NAIC governing the sharing and use of information specified in subsection 1 that must:

      (a) Specify procedures and protocols regarding the confidentiality and security of information shared with the NAIC and its affiliates and subsidiaries, including procedures and protocols for sharing by the NAIC with other state, federal and international regulators;

      (b) Specify that ownership of the information shared with the NAIC and its affiliates and subsidiaries remains with the Commissioner and the NAIC’s use of the information is subject to the discretion of the Commissioner;

      (c) Require prompt notice to be given to an insurer whose confidential information in the possession of the NAIC is subject to a request or subpoena to the NAIC for disclosure or production; and

      (d) Require the NAIC and its affiliates and subsidiaries to consent to intervention by an insurer in any judicial or administrative action in which the NAIC and its affiliates or subsidiaries may be required to disclose confidential information about the insurer shared with the NAIC and its affiliates and subsidiaries.

 


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the NAIC and its affiliates or subsidiaries may be required to disclose confidential information about the insurer shared with the NAIC and its affiliates and subsidiaries.

      5.  The sharing of information by the Commissioner does not constitute a delegation of regulatory authority or rulemaking, and the Commissioner is solely responsible for the administration, execution and enforcement of the provisions of this section.

      6.  No waiver of any applicable privilege or claim of confidentiality in the documents, materials or information shall occur as a result of disclosure to the Commissioner in accordance with this section or as a result of sharing as authorized in this section.

      7.  Documents, materials and other information in the possession or control of the NAIC in accordance with this section are:

      (a) Confidential by law and privileged;

      (b) Not subject to the provisions of chapter 239 of NRS;

      (c) Not subject to subpoena; and

      (d) Not subject to discovery or admissible in evidence in any private civil action.

      Sec. 20. Chapter 694C of NRS is hereby amended by adding thereto the provisions set forth as sections 21 and 22 of this act.

      Sec. 21. “Risk retention group” has the meaning ascribed to it in NRS 695E.110.

      Sec. 22. A state-chartered risk retention group must comply with all of the laws, regulations and requirements applicable to liability insurers in this State, unless otherwise approved by the Commissioner.

      Sec. 23. NRS 694C.010 is hereby amended to read as follows:

      694C.010  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 694C.020 to 694C.150, inclusive, and section 21 of this act have the meanings ascribed to them in those sections.

      Sec. 24. NRS 694C.149 is hereby amended to read as follows:

      694C.149  “State-chartered risk retention group” means any risk retention group [, as defined in NRS 695E.110,] that is formed in accordance with the laws of this State as an association captive insurer.

      Sec. 25. NRS 694C.160 is hereby amended to read as follows:

      694C.160  1.  The terms and conditions set forth in chapter 696B of NRS pertaining to insurance reorganization, receiverships and injunctions apply to captive insurers incorporated pursuant to this chapter.

      2.  An agency captive insurer, a rental captive insurer and an association captive insurer are subject to those provisions of chapter 686A of NRS which are applicable to insurers.

      3.  A state-chartered risk retention group is subject to the following:

      (a) The provisions of NRS 681A.250 to 681A.580, inclusive, regarding intermediaries;

      (b) The provisions of NRS 681B.550 regarding risk-based capital;

      (c) The provisions of chapter 683A of NRS regarding managing general agents; and

      (d) The provisions of NRS 693A.110 and any regulations adopted pursuant thereto regarding management and agency contracts of insurers.

      Sec. 26. NRS 694C.380 is hereby amended to read as follows:

      694C.380  A captive insurer shall not join or contribute financially to [any risk-sharing plan,] an assigned risk pool or insurance insolvency guaranty fund in this state. A captive insurer or its insured, its parent or an affiliated company, or any member organization of its association shall not receive any benefit from such a pool or fund for claims arising out of the operations of the captive insurer.

 


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affiliated company, or any member organization of its association shall not receive any benefit from such a pool or fund for claims arising out of the operations of the captive insurer.

      Sec. 27. NRS 694C.400 is hereby amended to read as follows:

      694C.400  1.  On or before March 1 of each year, a captive insurer shall submit to the Commissioner a report of its financial condition. A captive insurer shall use generally accepted accounting principles and include any useful or necessary modifications or adaptations thereof that have been approved or accepted by the Commissioner for the type of insurance and kinds of insurers to be reported upon, and as supplemented by additional information required by the Commissioner. Except as otherwise provided in this section, each association captive insurer, agency captive insurer, rental captive insurer or sponsored captive insurer shall file its report in the form required by NRS 680A.270. The Commissioner shall adopt regulations designating the form in which pure captive insurers must report.

      2.  Each captive insurer other than a state-chartered risk retention group shall submit to the Commissioner, on or before June 30 of each year, an annual audit as of December 31 of the preceding calendar year that is certified by a certified public accountant who is not an employee of the insurer. An annual audit submitted pursuant to this subsection must comply with the requirements set forth in regulations adopted by the Commissioner which govern such an annual audit.

      3.  Each state-chartered risk retention group shall file a financial statement pursuant to NRS 680A.265.

      4.  A pure captive insurer may apply, in writing, for authorization to file its annual report based on a fiscal year that is consistent with the fiscal year of the parent company of the pure captive insurer. If an alternative date is granted, the annual report is due not later than 60 days after the end of each such fiscal year.

      [3.]5.  A pure captive insurer shall file on or before March 1 of each year such forms as required by the Commissioner by regulation to provide sufficient detail to support its premium tax return filed pursuant to NRS 694C.450.

      [4.]6.  Any captive insurer failing, without just cause beyond the reasonable control of the captive insurer, to file its annual [statement] report of financial condition as required by subsection 1 , its annual audit as required by subsection 2 or its financial statement as required by subsection 3 shall pay a penalty of $100 for each day the captive insurer fails to file the report [,] of financial condition, the annual audit or the financial statement, but not to exceed an aggregate amount of $3,000, to be recovered in the name of the State of Nevada by the Attorney General.

      [5.]7.  Any director, officer, agent or employee of a captive insurer who subscribes to, makes or concurs in making or publishing, any annual or other statement required by law, knowing the same to contain any material statement which is false, is guilty of a gross misdemeanor.

      Sec. 28. 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.

 


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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, 632.405, 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 section 10 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.

 


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693A.615, 696B.550, 703.196, 704B.320, 704B.325, 706.1725, 706A.230, 710.159, 711.600, and section 10 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. 29.  This act becomes effective upon passage and approval for the purposes of adopting regulations and taking such other actions as are necessary to carry out the provisions of this act and:

      1.  This section and sections 1, 2, 3 and 20 to 27, inclusive, of this act become effective on July 1, 2017; and

      2.  Sections 4 to 19, inclusive, and 28 of this act become effective on January 1, 2018,

Ê for all other purposes.

________

 

 

 

 


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CHAPTER 13, AB 54

Assembly Bill No. 54–Committee on Commerce and Labor

 

CHAPTER 13

 

[Approved: May 8, 2017]

 

AN ACT relating to occupational safety; revising provisions relating to reports of certain accidents or motor vehicle crashes by employers; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law requires an employer to report to the Division of Industrial Relations of the Department of Business and Industry any accident or motor vehicle crash which is fatal to one or more employees or which results in the hospitalization of three or more employees within 8 hours after the time the accident or crash is reported to any agent or employee of the employer. (NRS 618.378) This bill retains the 8-hour reporting requirement for fatalities, but requires an employer to report to the Division any accident or motor vehicle crash which results in inpatient hospitalization of an employee, the amputation of a part of an employee’s body or an employee’s loss of an eye within 24 hours after the time the accident or crash is reported to any agent or employee of the employer. This bill also requires the employer to report the names of the employees who suffered fatalities, amputations or loss of an eye or who were admitted to a hospital as inpatients.

 

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 618.378 is hereby amended to read as follows:

      618.378  1.  Any accident or motor vehicle crash occurring in the course of employment which is fatal to one or more employees [or which results in the hospitalization of three or more employees] must be reported by the employer orally to the nearest office of the Division within 8 hours after the time that the accident or crash is reported to any agent or employee of the employer.

      2.  Any accident or motor vehicle crash occurring in the course of employment which results in the inpatient hospitalization of one or more employees, the amputation of a part of an employee’s body or an employee’s loss of an eye must be reported by the employer orally to the nearest office of the Division within 24 hours after the time that the accident or crash is reported to any agent or employee of the employer.

      3.  A report submitted to the Division pursuant to the provisions of [this] subsection 1 or 2 must include:

      (a) The name of the employer;

      (b) The location and time of the accident or crash;

      (c) The number of employees [killed or hospitalized] who were hospitalized as inpatients or who suffered fatalities, amputations or loss of an eye as a result of the accident or crash;

      (d) The names of the employees who were hospitalized as inpatients or who suffered fatalities, amputations or loss of an eye as a result of the accident or crash;

      (e) A brief description of the accident or crash; and

 


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      [(e)](f) The name of a person who may be contacted by the Division for further information.

Ê Upon receipt of such a report, the Division shall notify the employer of the estimated time that the Division’s investigator will arrive at the site of the accident or crash. The Division shall initiate an investigation at the site of the accident or crash within 8 hours after receiving the report.

      [2.] 4.  An industrial insurer shall provide to the Division a monthly report setting forth the number, type and severity of industrial injuries and occupational diseases reported or claimed by employees in the preceding month. The report must identify the employer and be sorted according to the employer’s Standard Industrial Classification or classification for the purposes of industrial insurance. The Division shall by regulation prescribe the form for the report made pursuant to this subsection. As used in this subsection, “industrial insurer” has the meaning ascribed to the term “insurer” in NRS 616A.270.

      [3.] 5. All employers shall maintain accurate records and make reports to the United States Assistant Secretary of Labor in the same manner and to the same extent as if this chapter were not in effect.

      [4.] 6. The Division shall make such reasonable reports to the Assistant Secretary of Labor in such form and containing such information as the Assistant Secretary of Labor may from time to time require.

      [5.] 7. Requests for variances to federal recordkeeping and reporting regulations must be submitted to and obtained from the Bureau of Labor Statistics, United States Department of Labor. All variances granted by the Bureau of Labor Statistics must be respected by the Division.

________

CHAPTER 14, AB 387

Assembly Bill No. 387–Assemblywoman Benitez-Thompson

 

CHAPTER 14

 

[Approved: May 8, 2017]

 

AN ACT relating to social work; revising provisions requiring licensed social workers to receive certain suicide prevention and awareness training in order to renew a license; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law requires social workers licensed to practice social work to complete certain continuing education as a condition to the renewal of their licenses, including 2 hours of instruction on evidence-based suicide prevention and awareness. (NRS 641B.280) Existing regulations require licensed social workers to complete 2 hours of such instruction every year. (NAC 641B.187, as amended by section 5 of Adopted Reg. of State Bd. of Examiners for Social Workers, LCB File No. R018-16) This bill provides that a licensed social worker seeking to renew his or her license must complete the 2 hours of instruction on evidence-based suicide prevention and awareness every 2 years.

 


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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. NRS 641B.280 is hereby amended to read as follows:

      641B.280  1.  Every holder of a license issued pursuant to this chapter may renew his or her license annually by:

      (a) Applying to the Board for renewal;

      (b) Paying the annual renewal fee set by the Board;

      (c) Submitting evidence to the Board of completion of the required continuing education as set forth in regulations adopted by the Board; and

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

      2.  The Board shall, as a prerequisite for the renewal of a license, require the holder to comply with the requirements for continuing education adopted by the Board, which must include, without limitation, a requirement that every 2 years the holder receive at least 2 hours of instruction on evidence-based suicide prevention and awareness.

      Sec. 2.  This act becomes effective on July 1, 2018, and expires by limitation on June 30, 2026.

________

 

CHAPTER 15, AB 476

Assembly Bill No. 476–Committee on Government Affairs

 

CHAPTER 15

 

[Approved: May 8, 2017]

 

AN ACT relating to notaries public; making various changes to the provisions governing electronic notaries public; providing a penalty; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law authorizes the Secretary of State to appoint electronic notaries public and provides for the performance of notarial acts on electronic records by electronic notaries public. (NRS 240.181-240.206) Section 1 of this bill clarifies that an appointment as an electronic notary public does not authorize the electronic notary public to perform notarial acts in another state. Sections 3 and 7 of this bill authorize an electronic notary public to certify a true and correct copy.

      Under existing law, to become an electronic notary public, a person is required to: (1) already be a notarial officer in Nevada; (2) successfully complete a course of study on electronic notarization; (3) enter into a bond; (4) pay an application fee; and (5) take an oath. (NRS 240.192) Under existing law a notary public is required to take an oath and file a bond. (NRS 240.033) Section 4 of this bill removes the requirement for an electronic notary public to file an additional bond and take an additional oath. However, section 2 of this bill requires that the bond filed by a person who is also an electronic notary public provide indemnification to a person determined to have suffered damage as a result of the electronic notary public’s violation of the statutes governing electronic notaries public, in addition to those statutes governing notaries public generally.

 


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      Under existing law, the term of an appointment as an electronic notary public is 4 years and commences on the effective date of the bond filed by the notary public. (NRS 240.020, 240.030) Under existing law, the initial term of an electronic notary public is 2 years and then 4 years thereafter. (NRS 240.194) Section 5 of this bill makes a person’s term of an appointment as an electronic notary public coterminous with that person’s term of appointment as a traditional notary public. Section 5 requires a person’s appointment as an electronic notary public to be renewed at the same time as the renewal of his or her appointment as a traditional notary public.

      Existing law requires a person to take a course that includes at least 3 hours of instruction to become an electronic notary public. (NRS 240.195) Section 6 of this bill limits the course to only online and decreases the length of the course to not longer than 3 hours, including the time necessary to take the required examination at the end of the course.

      Existing law requires a person, upon resignation, revocation or expiration of an appointment as an electronic notary public, to provide certain notarial records to the Secretary of State. (NRS 240.201) Section 8 of this bill instead requires a person to keep such records for a period of 7 years following the termination of his or her appointment as an electronic notary public.

      Section 9 of this bill requires an electronic notary public to notify the entity from which he or she obtained an electronic signature or electronic seal within 10 days if the signature or seal has been stolen, lost, damaged or otherwise rendered incapable of affixing a legible image.

      Existing law requires the Secretary of State to issue, upon request and the payment of certain fees, an authentication to verify that: (1) the electronic signature of the electronic notary public on a document is valid; and (2) the electronic notary public holds the office indicated on the document. (NRS 240.205) Section 10 of this bill requires a request for authentication to include a statement signed under penalty of perjury that the document will not be used to: (1) harass a person; or (2) accomplish any fraudulent, criminal or other unlawful purpose. Section 10 also prohibits the bringing of a civil action against the Secretary of State on the basis that: (1) the Secretary of State has issued such an authentication; and (2) the document has been used to harass a person or accomplish any fraudulent, criminal or other unlawful purpose. Additionally, section 10 provides that a person who uses a document for which an authentication has been issued for such unlawful purposes is guilty of a category C felony.

 

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 240.020 is hereby amended to read as follows:

      240.020  A person appointed as a notary public pursuant to this chapter may perform notarial acts in any part of this state for a term of 4 years, unless sooner removed. Such an appointment or an appointment as an electronic notary public pursuant to NRS 240.192 does not authorize the person to perform notarial acts in another state.

      Sec. 2. NRS 240.033 is hereby amended to read as follows:

      240.033  1.  The bond required to be filed pursuant to NRS 240.030 must be executed by the person applying to become a notary public as principal and by a surety company qualified and authorized to do business in this State. The bond must be made payable to the State of Nevada and be conditioned to provide indemnification to a person determined to have suffered damage as a result of an act by the notary public which violates a provision of NRS 240.001 to 240.169, inclusive [.] or, if applicable, an act by the electronic notary public which violates a provision of NRS 240.001 to 240.206, inclusive.

 


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to 240.206, inclusive. The surety company shall pay a final, nonappealable judgment of a court of this State that has jurisdiction, upon receipt of written notice of final judgment. The bond may be continuous but, regardless of the duration of the bond, the aggregate liability of the surety does not exceed the penal sum of the bond.

      2.  If the penal sum of the bond is exhausted, the surety company shall notify the Secretary of State in writing within 30 days after its exhaustion.

      3.  The surety bond must cover the period of the appointment of the notary public, except when a surety is released.

      4.  A surety on a bond filed pursuant to NRS 240.030 may be released after the surety gives 30 days’ written notice to the Secretary of State and notary public, but the release does not discharge or otherwise affect a claim filed by a person for damage resulting from an act of the notary public which is alleged to have occurred while the bond was in effect.

      5.  The appointment of a notary public is suspended by operation of law when the notary public is no longer covered by a surety bond as required by this section and NRS 240.030 or the penal sum of the bond is exhausted. If the Secretary of State receives notice pursuant to subsection 4 that the bond will be released or pursuant to subsection 2 that the penal sum of the bond is exhausted, the Secretary of State shall immediately notify the notary public in writing that his or her appointment will be suspended by operation of law until another surety bond is filed in the same manner and amount as the bond being terminated.

      6.  The Secretary of State may reinstate the appointment of a notary public whose appointment has been suspended pursuant to subsection 5, if the notary public, before his or her current term of appointment expires:

      (a) Submits to the Secretary of State:

             (1) An application for an amended certificate of appointment as a notary public; and

             (2) A certificate issued by the clerk of the county in which the applicant resides or, if the applicant is a resident of an adjoining state, the county in this State in which the applicant maintains a place of business or is employed, which indicates that the applicant filed a new surety bond with the clerk.

      (b) Pays to the Secretary of State a fee of $10.

      Sec. 3. NRS 240.185 is hereby amended to read as follows:

      240.185  “Electronic notarial act” means an act that an electronic notary public of this State is authorized to perform. The term includes:

      1.  Taking an acknowledgment;

      2.  Administering an oath or affirmation;

      3.  Executing a jurat; [and]

      4.  Certifying a true and correct copy; and

      5.  Performing such other duties as may be prescribed by a specific statute.

      Sec. 4. NRS 240.192 is hereby amended to read as follows:

      240.192  1.  Each person applying for appointment as an electronic notary public must:

      (a) At the time of application, be a notarial officer in this State who has complied with the requirements pertaining to taking an oath and filing a bond set forth in NRS 240.030 and [have] has been a notarial officer in this State for not less than 4 years;

 


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      (b) Submit to the Secretary of State an electronic application pursuant to subsection 2;

      (c) Pay to the Secretary of State an application fee of $50; and

      (d) [Take and subscribe to the oath set forth in Section 2 of Article 15 of the Constitution of the State of Nevada as if the applicant were a public officer;

      (e)] Submit to the Secretary of State proof satisfactory to the Secretary of State that the applicant has [successfully] :

             (1) Successfully completed a course of study provided pursuant to NRS 240.195; and

      [(f) Enter into a bond to the State of Nevada in the sum of $10,000, to be filed with the clerk of the county in which the applicant resides or, if the applicant is a resident of an adjoining state, with the clerk of the county in this State in which the applicant maintains a place of business or is employed. The applicant must submit to the Secretary of State a certificate issued by the appropriate county clerk which indicates that the applicant filed the bond required pursuant to this paragraph.]

             (2) Complied with the requirements pertaining to taking an oath and filing a bond set forth in NRS 240.030.

      2.  The application for an appointment as an electronic notary public must be submitted as an electronic document and must contain, without limitation, the following information:

      (a) The applicant’s full legal name, and the name to be used for appointment, if different.

      (b) The county in which the applicant resides.

      (c) The electronic mail address of the applicant.

      (d) [A description of the technology or device, approved by the Secretary of State, that the applicant intends to use to create his or her electronic signature in performing electronic notarial acts.

      (e)] The electronic signature of the applicant.

      [(f)](e) Any other information requested by the Secretary of State.

      3.  An applicant for appointment as an electronic notary public who resides in an adjoining state, in addition to the requirements set forth in subsections 1 and 2, must submit to the Secretary of State with the application:

      (a) An affidavit setting forth the adjoining state in which the applicant resides, the applicant’s mailing address and the address of the applicant’s place of business or employment that is located within the State of Nevada;

      (b) A copy of the applicant’s state business registration issued pursuant to chapter 76 of NRS and any business license required by the local government where the applicant’s business is located, if the applicant is self-employed; and

      (c) Unless the applicant is self-employed, a copy of the state business registration of the applicant’s employer issued pursuant to chapter 76 of NRS, a copy of any business license of the applicant’s employer that is required by the local government where the business is located and an affidavit from the applicant’s employer setting forth the facts which show that the employer regularly employs the applicant at an office, business or facility which is located within the State of Nevada.

      4.  In completing an application [, bond, oath] or other document necessary to apply for appointment as an electronic notary public, an applicant must not be required to disclose his or her residential address or telephone number on any such document which will become available to the public.

 


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applicant must not be required to disclose his or her residential address or telephone number on any such document which will become available to the public.

      5.  [The bond, together with the oath, must be filed and recorded in the office of the county clerk of the county in which the applicant resides when the applicant applies for appointment or, if the applicant is a resident of an adjoining state, with the clerk of the county in this State in which the applicant maintains a place of business or is employed. On a form provided by the Secretary of State, the county clerk shall immediately certify to the Secretary of State that the required bond and oath have been filed and recorded.] Upon receipt of the application, fee and [certification] proof that the [required] bond and oath required by NRS 240.030 have been filed and recorded, the Secretary of State shall issue a certificate of appointment as an electronic notary public to the applicant.

      6.  The term of an electronic notary public commences on the [effective] date [of the bond required pursuant to paragraph (f) of subsection 1.] on which the certificate of appointment is issued to the electronic notary public pursuant to subsection 5. An electronic notary public shall not perform an electronic notarial act [after the effective date of the bond] unless the electronic notary public has been issued a certificate of appointment pursuant to subsection 5.

      7.  Except as otherwise provided in this subsection, the Secretary of State shall charge a fee of $10 for each duplicate or amended certificate of appointment which is issued to an electronic notary public. If the electronic notary public does not receive an original certificate of appointment, the Secretary of State shall provide a duplicate certificate of appointment without charge if the electronic notary public requests such a duplicate within 60 days after the date on which the original certificate was issued.

      Sec. 5. NRS 240.194 is hereby amended to read as follows:

      240.194  1.  The [initial] term of appointment [as] of an electronic notary public is [2 years. Each] coterminous with his or her term of appointment as [an electronic] a notary public [subsequent to the initial term is 4 years.] pursuant to NRS 240.010. An appointment as an electronic notary public must be renewed at the same time a person renews his or her appointment as a notary public.

      2.  The appointment of an electronic notary public is suspended by operation of law when the electronic notary public is no longer appointed as a notary public in this State. If the appointment of an electronic notary public has expired or been revoked or suspended, the Secretary of State shall immediately notify the electronic notary public in writing that his or her appointment as an electronic notary public will be suspended by operation of law until he or she is appointed as a notary public in this State.

      3.  If, at any time during his or her appointment, an electronic notary public changes his or her electronic mail address, county of residence, name, electronic signature or the technology or device used to create his or her electronic signature, the electronic notary public shall, within 10 days after making the change, submit to the Secretary of State:

      (a) An electronic document, signed with the electronic signature submitted by the electronic notary public pursuant to subsection 2 of NRS 240.192, that includes the change of information; and

      (b) A fee of $10.

 


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      Sec. 6. NRS 240.195 is hereby amended to read as follows:

      240.195  1.  Except as otherwise provided in subsection 2, an applicant for appointment as an electronic notary public must successfully:

      (a) Complete a course of study that is in accordance with the requirements of subsection 5; and

      (b) Pass an examination at the completion of the course.

      2.  The following persons are required to enroll in and successfully complete a course of study as required pursuant to subsection 1:

      (a) A person applying for his or her first appointment as an electronic notary public;

      (b) A person renewing his or her appointment as an electronic notary public; and

      (c) A person who has committed a violation of this chapter or whose appointment as an electronic notary public has been suspended, and who has been required by the Secretary of State to enroll in a course of study provided pursuant to this section.

      3.  A course of study required to be completed pursuant to subsection 1 must:

      (a) [Include at least] Be taken online and be of a duration of not more than 3 hours [of instruction;] , including instruction and completion of an examination of the course content;

      (b) Provide instruction in electronic notarization, including, without limitation, notarial law and ethics, technology and procedures;

      (c) [Include an examination of the course content;

      (d)] Comply with the regulations adopted pursuant to NRS 240.206; and

      [(e)](d) Be approved by the Secretary of State.

      4.  The Secretary of State may, with respect to a course of study required to be completed pursuant to subsection 1 [:

      (a) Provide such a course of study; and

      (b) Charge] , charge a reasonable fee to each person who enrolls in such a course of study.

      5.  A course of study provided pursuant to this section:

      (a) Must satisfy the criteria set forth in subsection 3 and comply with the requirements set forth in the regulations adopted pursuant to NRS 240.206.

      (b) May be provided [in person or online] by the Secretary of State or a vendor approved by the Secretary of State.

      6.  The Secretary of State shall deposit the fees collected pursuant to [paragraph (b) of] subsection 4 in the Notary Public Training Account created pursuant to NRS 240.018.

      Sec. 7. NRS 240.196 is hereby amended to read as follows:

      240.196  A person appointed as an electronic notary public pursuant to NRS 240.181 to 240.206, inclusive, may, during normal business hours, perform the following electronic notarial acts for a person who requests the electronic notarial act and tenders the appropriate fee:

      1.  Taking an acknowledgment;

      2.  Executing a jurat; [and]

      3.  Administering an oath or affirmation [.] ; and

      4.  Certifying a true and correct copy.

      Sec. 8. NRS 240.201 is hereby amended to read as follows:

      240.201  1.  An electronic notary public shall keep a journal of each electronic notarial act which includes, without limitation, the requirements of subsections 1 and 5 of NRS 240.120.

 


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      2.  The Secretary of State may suspend the appointment of an electronic notary public who fails to produce any journal entry within 10 days after receipt of a request from the Secretary of State.

      3.  Upon resignation, revocation or expiration of an appointment as an electronic notary public, all notarial records required pursuant to NRS 240.001 to 240.206, inclusive, must be [delivered to the Secretary of State.] kept for a period of 7 years after the termination of the appointment as an electronic notary public.

      Sec. 9. NRS 240.202 is hereby amended to read as follows:

      240.202  1.  The electronic signature and electronic seal of an electronic notary public must be used only for the purposes of performing electronic notarial acts.

      2.  An electronic notary public shall safeguard his or her electronic signature, the electronic seal and all notarial records maintained by the electronic notary public as follows:

      (a) When not in use, the electronic notary public shall keep the electronic signature, electronic seal and all notarial records secure, under the exclusive control of the electronic notary public and protected by a password where applicable.

      (b) An electronic notary public shall not permit his or her electronic signature or electronic seal to be used by any other person.

      (c) An electronic notary public shall not surrender or destroy his or her notarial records except as otherwise required by the order of a court or as allowed pursuant to NRS 240.001 to 240.206, inclusive, or any regulations adopted pursuant thereto.

      (d) Except as otherwise provided in subsection 3, an electronic notary public, within 10 days after discovering that his or her electronic signature or electronic seal has been stolen, lost, damaged or otherwise rendered incapable of affixing a legible image, shall:

             (1) Inform the appropriate law enforcement agency in the case of theft or vandalism; and

             (2) Notify the Secretary of State and the entity from which the electronic notary public obtained the electronic signature or electronic seal in writing, including, without limitation, a signature using the name on the certificate of appointment issued pursuant to subsection 5 of NRS 240.192.

      3.  An electronic notary public shall take reasonable steps to maintain the technology or device used to create his or her electronic signature, and to ensure that the technology or device has not been recalled, revoked, terminated or otherwise rendered ineffective or unsecure by the entity that created the technology or device. Upon learning that the technology or device used to create his or her electronic signature has been rendered ineffective or unsecure, an electronic notary public shall cease performing electronic notarial acts until:

      (a) A new technology or device is acquired; and

      (b) The electronic notary public sends an electronic notice to the Secretary of State that includes [, without limitation,] the [information] electronic signature of the electronic notary public required pursuant to [paragraphs (d) and] paragraph (e) of subsection 2 of NRS 240.192 . [relating to the new technology or device.]

      Sec. 10. NRS 240.205 is hereby amended to read as follows:

      240.205  1.  Except as otherwise provided in subsection 2, the Secretary of State shall, upon request, issue an authentication to verify that the electronic signature of the electronic notary public on an electronic document is genuine and that the electronic notary public holds the office indicated on the electronic document.

 


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the electronic signature of the electronic notary public on an electronic document is genuine and that the electronic notary public holds the office indicated on the electronic document. The authentication must be:

      (a) Signed by the Secretary of State; and

      (b) In conformance with any relevant international treaties, agreements and conventions subscribed to by the Government of the United States, including, without limitation, the Hague Convention of October 5, 1961.

      2.  The Secretary of State shall not issue an authentication pursuant to subsection 1 if:

      (a) The electronic document has not been electronically notarized in accordance with the provisions of NRS 240.001 to 240.206, inclusive; [or]

      (b) The Secretary of State has reasonable cause to believe that the electronic document may be used to accomplish any fraudulent, criminal or unlawful purpose [.] ; or

      (c) The request to issue an authentication does not include a statement, in the form prescribed by the Secretary of State and signed under penalty of perjury, that the document for which the authentication is requested will not be used to:

             (1) Harass a person; or

             (2) Accomplish any fraudulent, criminal or other unlawful purpose.

      3.  No civil action may be brought against the Secretary of State on the basis that:

      (a) The Secretary of State has issued an authentication pursuant to subsection 1; and

      (b) The document has been used to:

             (1) Harass a person; or

             (2) Accomplish any fraudulent, criminal or other unlawful purpose.

      4.  A person who uses a document for which an authentication has been issued pursuant to subsection 1 to:

      (a) Harass a person; or

      (b) Accomplish any fraudulent, criminal or other unlawful purpose,

Ê is guilty of a category C 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 5 years, and may be further punished by a fine of not more than $5,000.

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

      Sec. 11. NRS 240.193 is hereby repealed.

      Sec. 12.  This act becomes effective on July 1, 2017.

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