[Rev. 11/14/2017 12:00:37 PM]

Link to Page 1792

 

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ê2017 Statutes of Nevada, Page 1793ê

 

CHAPTER 321, SB 420

Senate Bill No. 420–Senator Cannizzaro

 

CHAPTER 321

 

[Approved: June 2, 2017]

 

AN ACT relating to education; requiring the board of trustees of each school district, the governing body of each charter school and the governing body of each university school for profoundly gifted pupils to adopt a written policy relating to the distribution of and right of expression for pupils working as journalists on pupil publications; requiring the Board of Regents of the University of Nevada to adopt a similar policy for student publications; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law provides that each pupil of a public school, including a pupil enrolled in a charter school or a university school for profoundly gifted pupils, is entitled to express himself or herself in a manner consistent with the rights guaranteed by the First and Fourteenth Amendments to the United States Constitution. (NRS 388.077) Section 1 of this bill requires the board of trustees of each school district, the governing body of each charter school and the governing body of each university school for profoundly gifted pupils to adopt a written policy for pupil publications which: (1) establishes reasonable provisions governing the time, place and manner for the distribution of those publications; (2) protects the right of expression for pupils working on those publications as journalists; (3) prohibits restrictions on the publication of any content in a pupil publication unless the content would substantially disrupt the performance of the school’s educational mission; and (4) includes a disclaimer indicating that any content published in a pupil publication is not endorsed by the public school. Section 2 of this bill requires the Board of Regents of the University of Nevada to adopt a similar written policy for student publications.

 

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

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. NRS 388.077 is hereby amended to read as follows:

      388.077  1.  Each pupil of a public school, including, without limitation, each pupil of a university school for profoundly gifted pupils, is entitled to express himself or herself in a manner consistent with the rights guaranteed by the First and Fourteenth Amendments to the United States Constitution.

      2.  Any expression described in subsection 1 must not be disruptive of instruction at a public school, including, without limitation, a university school for profoundly gifted pupils, must not be used to [bully] engage in bullying or cyber-bullying or intimidate any person and must not be organized, broadcast or endorsed by a public school, including, without limitation, a university school for profoundly gifted pupils.

      3.  The board of trustees of each school district, the governing body of each charter school and the governing body of each university school for profoundly gifted pupils shall adopt a written policy for pupil publications which:

 


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ê2017 Statutes of Nevada, Page 1794 (Chapter 321, SB 420)ê

 

      (a) Establishes reasonable provisions governing the time, place and manner for the distribution of pupil publications;

      (b) Protects the right of expression described in subsection 1 for pupils working on pupil publications as journalists in their determination of the news, opinions, feature content, advertising content and other content of the pupil publications;

      (c) Prohibits, without limitation, the following:

             (1) Restricting the publication of any content in pupil publications unless the content would substantially disrupt the ability of the public school to perform its educational mission;

             (2) Dismissing, suspending, disciplining or retaliating against an employee or other person acting as an adviser for a pupil publication or as an adviser for pupils working as journalists on a pupil publication for acting within the scope of that position, including, without limitation, taking responsible and appropriate action to protect a pupil engaged in conduct protected pursuant to the written policy or refusing to perform an action which violates the written policy; and

             (3) Expelling, suspending or otherwise disciplining a pupil for engaging in conduct in accordance with the policy, unless such conduct substantially disrupts the ability of the public school to perform its educational mission and the disruption was intentional; and

      (d) Includes a disclaimer indicating that any content published in a pupil publication is not endorsed by the public school.

      4.  The board of trustees of each school district, the governing body of each charter school and the governing body of each university school for profoundly gifted pupils [must] shall adopt a policy prescribing procedures for the resolution of a complaint by a pupil of the school district, charter school or university school for profoundly gifted pupils that the rights of the pupil described in subsection 1 or 3 have been violated. The policy required by this subsection may be part of a comprehensive discrimination grievance policy of the school district, charter school or university school for profoundly gifted pupils or may be a separate policy.

      5.  As used in this section:

      (a) “Bullying” has the meaning ascribed to it in NRS 388.122.

      (b) “Cyber-bullying” has the meaning ascribed to it in NRS 388.123.

      Sec. 2. Chapter 396 of NRS is hereby amended by adding thereto a new section to read as follows:

      The Board of Regents shall adopt a written policy for the Universities, state colleges and community colleges within the System for student publications which:

      1.  Establishes reasonable provisions governing the time, place and manner for the distribution of student publications;

      2.  Protects the right of expression in a manner consistent with the rights guaranteed by the First and Fourteenth Amendments to the United States Constitution for students working on student publications as journalists in their determination of the news, opinions, feature content, advertising content and other content of the student publications;

      3.  Prohibits, without limitation, the following:

      (a) Restricting the publication of any content in student publications unless the content would substantially disrupt the ability of the institution to perform its educational mission;

 


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ê2017 Statutes of Nevada, Page 1795 (Chapter 321, SB 420)ê

 

      (b) Dismissing, suspending, disciplining or retaliating against a faculty member, employee or other person acting as an adviser for a student publication or as an adviser to students working as journalists on a student publication for acting within the scope of that position, including, without limitation, taking responsible and appropriate action to protect a student engaged in conduct protected pursuant to the written policy or refusing to perform an action which violates the written policy; and

      (c) Expelling, suspending or otherwise disciplining a student for engaging in conduct in accordance with the policy, unless such conduct substantially disrupts the ability of the institution to perform its educational mission and the disruption was intentional; and

      4.  Includes a disclaimer indicating that any content published in a student publication is not endorsed by the Board of Regents, the System or a university, state college or community college within the System.

      Sec. 3.  (Deleted by amendment.)

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CHAPTER 322, SB 383

Senate Bill No. 383–Senator Ford

 

CHAPTER 322

 

[Approved: June 2, 2017]

 

AN ACT relating to financial planners; imposing a fiduciary duty on broker-dealers, sales representatives and investment advisers who for compensation advise other persons concerning the investment of money; authorizing the Administrator of the Securities Division of the Office of the Secretary of State to adopt regulations concerning such fiduciary duty; providing penalties; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law: (1) defines a “financial planner” as a person who for compensation, among other activities, advises others as to the investment of money, but excludes certain persons from the definition; (2) provides that a financial planner has the duty of a fiduciary toward a client; and (3) provides for civil liability of a financial planner under certain circumstances. (Chapter 628A of NRS) Section 1 of this bill revises the definition of financial planner to remove the exclusions for a broker-dealer, a sales representative and an investment adviser, thereby making such persons subject to the provisions of existing law governing financial planners. Section 1.3 of this bill provides that the requirement for a financial planner to maintain certain insurance or a surety bond does not apply to broker-dealers, sales representatives and investment advisers included in the definition of “financial planner” pursuant to section 1.

      Existing law provides that certain persons defined as a financial planner must be licensed as insurance consultants for certain purposes related to viatical settlements. (NRS 688C.212) Section 2 of this bill maintains the existing definition of financial planner for such purposes.

      Existing law generally provides that the Administrator of the Securities Division of the Office of the Secretary of State licenses and regulates broker-dealers, sales representatives, investment advisers and representatives of investment advisers. (Chapter 90 of NRS) If a person violates a provision of law administered by the Administrator, the Administrator may impose certain sanctions on that person, including, without limitation, the imposition of a civil penalty of not more than $25,000 for a willful violation of such a provision of law.

 


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ê2017 Statutes of Nevada, Page 1796 (Chapter 322, SB 383)ê

 

$25,000 for a willful violation of such a provision of law. (NRS 90.630, 90.640) Section 1.7 of this bill: (1) enacts a provision to enable the Administrator to enforce the fiduciary duty imposed on broker-dealers, sales representatives, investment advisers and representatives of investment advisers pursuant to section 1; and (2) authorizes the Administrator to adopt regulations defining or excluding acts, practices or courses of business as violations of that fiduciary duty and prescribing means to prevent violations of that fiduciary duty.

 

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 628A.010 is hereby amended to read as follows:

      628A.010  As used in this chapter, unless the context otherwise requires:

      1.  “Client” means a person who receives advice from a financial planner.

      2.  “Compensation” means a fee for services provided by a financial planner to a client or a commission or other remuneration derived by a financial planner from a person other than the client as the result of the purchase of a good or service by the client.

      3.  “Financial planner” means a person who for compensation advises others upon the investment of money or upon provision for income to be needed in the future, or who holds himself or herself out as qualified to perform either of these functions, but does not include:

      (a) An attorney and counselor at law admitted by the Supreme Court of this State;

      (b) A certified public accountant or a public accountant licensed pursuant to NRS 628.190 to 628.310, inclusive, or 628.350; or

      (c) [A broker-dealer or sales representative licensed pursuant to NRS 90.310 or exempt under NRS 90.320;

      (d) An investment adviser licensed pursuant to NRS 90.330 or exempt under NRS 90.340; or

      (e)] A producer of insurance licensed pursuant to chapter 683A of NRS or an insurance consultant licensed pursuant to chapter 683C of NRS,

Ê whose advice upon investment or provision of future income is incidental to the practice of his or her profession or business.

      Sec. 1.3. NRS 628A.040 is hereby amended to read as follows:

      628A.040  [A]

      1.  Except as otherwise provided in subsection 2, a financial planner shall maintain insurance covering liability for errors or omissions, or a surety bond to compensate clients for losses actionable pursuant to this chapter, in an amount of $1,000,000 or more.

      2.  The provisions of subsection 1 do not apply to:

      (a) A broker-dealer or sales representative licensed pursuant to NRS 90.310 or exempt under NRS 90.320; or

      (b) An investment adviser licensed pursuant to NRS 90.330 or exempt under NRS 90.340.

 


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ê2017 Statutes of Nevada, Page 1797 (Chapter 322, SB 383)ê

 

      Sec. 1.7. Chapter 90 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  A broker-dealer, sales representative, investment adviser or representative of an investment adviser shall not violate the fiduciary duty toward a client imposed by NRS 628A.020.

      2.  The Administrator may by regulation:

      (a) Define or exclude an act, practice or course of business of a broker-dealer, sales representative, investment adviser or representative of an investment adviser as a violation of the fiduciary duty toward a client imposed by NRS 628A.020; and

      (b) Prescribe means reasonably designed to prevent broker-dealers, sales representatives, investment advisers and representatives of investment advisers from engaging in acts, practices and courses of business defined as a violation of such fiduciary duty.

      Sec. 2. NRS 688C.212 is hereby amended to read as follows:

      688C.212  1.  A financial planner [, as defined in subsection 3 of NRS 628A.010,] who, on behalf of a viator and for a fee, commission or other valuable consideration not paid by a provider or purchaser of viatical settlements, offers or attempts to negotiate a viatical settlement between the viator and one or more providers or brokers of viatical settlements must be licensed as an insurance consultant pursuant to NRS 683C.020.

      2.  As used in this section, “financial planner” means a person who for compensation advises others upon the investment of money or upon provision for income to be needed in the future, or who holds himself or herself out as qualified to perform either of these functions, but does not include:

      (a) An attorney and counselor at law admitted by the Supreme Court of this State;

      (b) A certified public accountant or a public accountant licensed pursuant to NRS 628.190 to 628.310, inclusive, or 628.350;

      (c) A broker-dealer or sales representative licensed pursuant to NRS 90.310 or exempt under NRS 90.320;

      (d) An investment adviser licensed pursuant to NRS 90.330 or exempt under NRS 90.340; or

      (e) A producer of insurance licensed pursuant to chapter 683A of NRS or an insurance consultant licensed pursuant to chapter 683C of NRS,

Ê whose advice upon investment or provision of future income is incidental to the practice of his or her profession or business.

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

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ê2017 Statutes of Nevada, Page 1798ê

 

CHAPTER 323, SB 233

Senate Bill No. 233–Senators Ratti, Cancela, Spearman, Cannizzaro, Woodhouse; Atkinson, Denis, Ford, Manendo, Parks and Segerblom

 

Joint Sponsors: Assemblymen Benitez-Thompson and Frierson

 

CHAPTER 323

 

[Approved: June 3, 2017]

 

AN ACT relating to health care; requiring the State Plan for Medicaid and certain health insurance plans to provide certain benefits relating to reproductive health care, hormone replacement therapy and preventative health care; revising provisions relating to dispensing of contraceptives; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law requires most health insurance plans which cover prescription drugs and outpatient care to also include coverage for contraceptive drugs and devices without an additional copay, coinsurance or a higher deductible than that which may be charged for other prescription drugs and outpatient care under the plan. (NRS 689A.0415, 689A.0417, 689B.0376, 689B.0377, 695B.1916, 695B.1918, 695C.1694, 695C.1695) Existing law also requires most health insurance plans to include coverage for certain preventative services, including the human papillomavirus vaccine, cytological screenings and mammograms. (NRS 287.0272, 689A.0405, 689A.044, 689B.0313, 689B.0374, 695B.1912, 695B.1925, 695C.1735, 695C.1745, 695G.171) Certain plans, including small employer plans, benefit contracts provided by fraternal benefit societies, plans issued by a managed care organization and certain plans offered by governmental entities of this State are not currently subject to some of these requirements. (Chapters 287, 689C, 695A and 695G of NRS)

      The federal Patient Protection and Affordable Care Act (Public Law 111-148, as amended) requires certain preventative services to be covered by every health insurance plan without any copay, coinsurance or higher deductible, including, without limitation, certain contraceptive drugs, devices and services, certain vaccinations, mammograms, counseling concerning interpersonal and domestic violence, screenings for certain diseases and well-woman preventative visits. (42 U.S.C. § 300gg-13(a)(4); 45 C.F.R. § 147.130) This bill places those requirements in Nevada law, requiring all private health insurance plans and certain public health insurance plans made available in this State to provide coverage for certain preventative services without any copay, coinsurance or a higher deductible. The provisions of this bill do not require a public or private insurer to provide coverage for the purpose of terminating a pregnancy. Sections 7, 8 and 11-57 of this bill allow an insurer to require an insured to pay a higher deductible, copayment or coinsurance for a drug for contraception if the insured refused to accept a therapeutic equivalent of the contraceptive drug. In addition, a health insurance plan must include for each listed method of contraception which is approved by the Food and Drug Administration at least one contraceptive drug or device for which no deductible, copayment or coinsurance may be charged to the insured. Sections 7, 8 and 11-57 authorize an insurer to use medical management techniques, including step therapy and prior authorization, to determine the frequency of the preventative services required by this bill or the type of provider of health care who will provide such services. Sections 7, 8 and 11-57 also require certain contraceptive drugs, devices

 


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ê2017 Statutes of Nevada, Page 1799 (Chapter 323, SB 233)ê

 

and services to be covered by a health insurance plan, including up to a 12-month supply of contraceptives or a therapeutic equivalent, insertion or removal of a contraceptive device, education and counseling relating to contraception and voluntary sterilization for women. Sections 12, 18, 27, 33, 38, 45 and 54: (1) prohibit the use of medical management techniques to require an insured to use a method of contraception other than that prescribed or ordered by a provider of health care; and (2) require an insurer to provide a process by which an insured can request an exemption from a medical management technique required by an insurer to obtain contraception.

      Existing law authorizes an insurer which is affiliated with a religious organization and which objects on religious grounds to providing coverage for contraceptive drugs and devices to exclude coverage in its policies, plans or contracts for such drugs and devices. (NRS 689A.0415, 689A.0417, 689B.0376, 689B.0377, 695B.1916, 695B.1918, 695C.1694, 695C.1695) Sections 12, 20, 27, 33, 38, 45 and 54 of this bill move the religious exemption to the new provisions relating to coverage of contraception.

      Existing law requires most health insurance plans which cover prescription drugs and outpatient care to also include coverage for hormone replacement therapy without an additional copay, coinsurance or a higher deductible than that which may be charged for other prescription drugs and outpatient care under the plan. (NRS 689A.0415, 689A.0417, 689B.0376, 689B.0377, 695B.1916, 695B.1918, 695C.1694, 695C.1695) Sections 7, 8 and 11-57 of this bill expand this requirement to private health insurance plans and certain public health insurance plans made available in this State and require such health insurance plans to provide coverage for hormone replacement therapy without any copay, coinsurance or higher deductible.

      Existing law requires this State to develop a State Plan for Medicaid which includes, without limitation, a list of the medical services provided to Medicaid recipients. (42 U.S.C. § 1396a; NRS 422.063) Existing federal law authorizes a state to charge a copay, coinsurance or deductible for most Medicaid services, but prohibits any copay, coinsurance or deductible for certain contraceptive drugs, devices and services. (42 U.S.C. § 1396o-1) Existing federal law also authorizes a state to define the parameters of contraceptive coverage provided under Medicaid. (42 U.S.C. § 1396u-7) Existing law requires a number of specific medical services to be covered under Medicaid. (NRS 422.2717-422.27241) Sections 2-5.5 of this bill require the State Plan for Medicaid to include certain preventative services currently required to be covered by private health insurance plans pursuant to existing Nevada law, the Patient Protection and Affordable Care Act (Public Law 111-148 as amended) as well as the additional drugs, devices, supplies and services required by sections 7, 8 and 11-57 without any copay, coinsurance or deductible in most cases. The benefits relating to contraceptive drugs which are provided by section 2 of this bill are subject to step therapy and prior authorization requirements pursuant to existing law.

      Existing law authorizes a pharmacist to dispense up to a 90-day supply of a drug pursuant to a valid prescription or order in certain circumstances. (NRS 639.2396) Section 8.5 of this bill requires a pharmacist to dispense up to a 12-month or the balance of the plan year, whichever is shorter, supply of contraceptives or their therapeutic equivalent pursuant to a valid prescription or order if: (1) the patient has previously received a 3-month supply of the same drug; (2) the patient has previously received a 9-month supply of the same drug or a supply of the same drug for the balance of the plan year in which the 3-month supply was prescribed or ordered, whichever is shorter; (3) the patient is insured by the same health insurance plan; and (4) a provider of health care has not specified in the prescription or order that a different supply of the drug is necessary.

 


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ê2017 Statutes of Nevada, Page 1800 (Chapter 323, SB 233)ê

 

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

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 422 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 4.5, inclusive, of this act.

      Sec. 2. 1.  The Director shall include in the State Plan for Medicaid a requirement that the State pay the nonfederal share of expenditures incurred for:

      (a) Up to a 12-month supply, per prescription, of any type of drug for contraception or its therapeutic equivalent which is:

             (1) Lawfully prescribed or ordered;

             (2) Approved by the Food and Drug Administration; and

             (3) Dispensed in accordance with section 8.5 of this act.

      (b) Any type of device for contraception which is lawfully prescribed or ordered and which has been approved by the Food and Drug Administration;

      (c) Insertion or removal of a device for contraception;

      (d) Education and counseling relating to the initiation of the use of contraceptives and any necessary follow-up after initiating such use;

      (e) Management of side effects relating to contraception; and

      (f) Voluntary sterilization for women.

      2.  Except as otherwise provided in subsections 4 and 5, to obtain any benefit provided in the Plan pursuant to subsection 1, a person enrolled in Medicaid must not be required to:

      (a) Pay a higher deductible, any copayment or coinsurance; or

      (b) Be subject to a longer waiting period or any other condition.

      3.  The Director shall ensure that the provisions of this section are carried out in a manner which complies with the requirements established by the Drug Use Review Board and set forth in the list of preferred prescription drugs established by the Department pursuant to NRS 422.4025.

      4.  The Plan may require a person enrolled in Medicaid to pay a higher deductible, copayment or coinsurance for a drug for contraception if the person refuses to accept a therapeutic equivalent of the contraceptive drug.

      5.  For each method of contraception which is approved by the Food and Drug Administration, the Plan must include at least one contraceptive drug or device for which no deductible, copayment or coinsurance may be charged to the person enrolled in Medicaid, but the Plan may charge a deductible, copayment or coinsurance for any other contraceptive drug or device that provides the same method of contraception.

      6.  As used in this section, “therapeutic equivalent” means a drug which:

      (a) Contains an identical amount of the same active ingredients in the same dosage and method of administration as another drug;

      (b) Is expected to have the same clinical effect when administered to a patient pursuant to a prescription or order as another drug; and

      (c) Meets any other criteria required by the Food and Drug Administration for classification as a therapeutic equivalent.

 


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ê2017 Statutes of Nevada, Page 1801 (Chapter 323, SB 233)ê

 

      Sec. 3.  1.  The Director shall include in the State Plan for Medicaid a requirement that the State pay the nonfederal share of expenditures incurred for:

      (a) Counseling and support for breastfeeding;

      (b) Screening and counseling for interpersonal and domestic violence;

      (c) Counseling for sexually transmitted diseases;

      (d) Screening for blood pressure abnormalities and diabetes, including gestational diabetes;

      (e) An annual screening for cervical cancer;

      (f) Screening for depression;

      (g) Screening and counseling for the human immunodeficiency virus;

      (h) Smoking cessation programs;

      (i) All vaccinations recommended by the Advisory Committee on Immunization Practices of the Centers for Disease Control and Prevention of the United States Department of Health and Human Services or its successor organization; and

      (j) Such well-woman preventative visits as recommended by the Health Resources and Services Administration.

      2.  To obtain any benefit provided in the Plan pursuant to subsection 1, a recipient of Medicaid must not be required to:

      (a) Pay a higher deductible, any copayment or coinsurance; or

      (b) Be subject to a longer waiting period or any other condition.

      Sec. 4.  The Director shall include in the State Plan for Medicaid a requirement that the State pay the nonfederal share of expenditures incurred for a mammogram.

      Sec. 4.5. The Director may include in the State Plan for Medicaid a requirement that, to the extent money is available, the State pay the nonfederal share of expenditures incurred for:

      1.  Supplies for breastfeeding; and

      2.  Such prenatal screenings and tests as recommended by the American College of Obstetricians and Gynecologists or its successor organization.

      Sec. 5. NRS 422.2718 is hereby amended to read as follows:

      422.2718  1.  The Director shall include in the State Plan for Medicaid a requirement that the State shall pay the nonfederal share of expenses incurred for [administering] :

      (a) Testing for human papillomavirus; and

      (b) Administering the human papillomavirus vaccine [to women and girls] at such ages as recommended for vaccination by a competent authority, including, without limitation, the Centers for Disease Control and Prevention of the United States Department of Health and Human Services, the Food and Drug Administration or the manufacturer of the vaccine.

      2.  For the purposes of this section, “human papillomavirus vaccine” means the Quadrivalent Human Papillomavirus Recombinant Vaccine or its successor which is approved by the Food and Drug Administration to be used for the prevention of human papillomavirus infection and cervical cancer.

      Sec. 5.5. NRS 422.401 is hereby amended to read as follows:

      422.401  As used in NRS 422.401 to 422.406, inclusive, and sections 2 to 4.5, inclusive, of this act, unless the context otherwise requires, the words and terms defined in NRS 422.4015 and 422.402 have the meanings ascribed to them in those sections.

 


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ê2017 Statutes of Nevada, Page 1802 (Chapter 323, SB 233)ê

 

      Sec. 5.7. NRS 422.406 is hereby amended to read as follows:

      422.406 1.  The Department may, to carry out its duties set forth in NRS 422.401 to 422.406, inclusive, and sections 2 to 4.5, inclusive, of this act, and to administer the provisions of NRS 422.401 to 422.406, inclusive [:] , and sections 2 to 4.5, inclusive, of this act:

      (a) Adopt regulations; and

      (b) Enter into contracts for any services.

      2.  Any regulations adopted by the Department pursuant to NRS 422.401 to 422.406, inclusive, and sections 2 to 4.5, inclusive, of this act, must be adopted in accordance with the provisions of chapter 241 of NRS.

      Sec. 6. (Deleted by amendment.)

      Sec. 7. NRS 287.010 is hereby amended to read as follows:

      287.010  1.  The governing body of any county, school district, municipal corporation, political subdivision, public corporation or other local governmental agency of the State of Nevada may:

      (a) Adopt and carry into effect a system of group life, accident or health insurance, or any combination thereof, for the benefit of its officers and employees, and the dependents of officers and employees who elect to accept the insurance and who, where necessary, have authorized the governing body to make deductions from their compensation for the payment of premiums on the insurance.

      (b) Purchase group policies of life, accident or health insurance, or any combination thereof, for the benefit of such officers and employees, and the dependents of such officers and employees, as have authorized the purchase, from insurance companies authorized to transact the business of such insurance in the State of Nevada, and, where necessary, deduct from the compensation of officers and employees the premiums upon insurance and pay the deductions upon the premiums.

      (c) Provide group life, accident or health coverage through a self-insurance reserve fund and, where necessary, deduct contributions to the maintenance of the fund from the compensation of officers and employees and pay the deductions into the fund. The money accumulated for this purpose through deductions from the compensation of officers and employees and contributions of the governing body must be maintained as an internal service fund as defined by NRS 354.543. The money must be deposited in a state or national bank or credit union authorized to transact business in the State of Nevada. Any independent administrator of a fund created under this section is subject to the licensing requirements of chapter 683A of NRS, and must be a resident of this State. Any contract with an independent administrator must be approved by the Commissioner of Insurance as to the reasonableness of administrative charges in relation to contributions collected and benefits provided. The provisions of NRS 687B.408, 689B.030 to 689B.050, inclusive, and sections 20 and 21 of this act and 689B.287 apply to coverage provided pursuant to this paragraph [.] , except that the provisions of sections 20 and 21 of this act only apply to coverage for active officers and employees of the governing body, or the dependents of such officers and employees.

      (d) Defray part or all of the cost of maintenance of a self-insurance fund or of the premiums upon insurance. The money for contributions must be budgeted for in accordance with the laws governing the county, school district, municipal corporation, political subdivision, public corporation or other local governmental agency of the State of Nevada.

 


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ê2017 Statutes of Nevada, Page 1803 (Chapter 323, SB 233)ê

 

      2.  If a school district offers group insurance to its officers and employees pursuant to this section, members of the board of trustees of the school district must not be excluded from participating in the group insurance. If the amount of the deductions from compensation required to pay for the group insurance exceeds the compensation to which a trustee is entitled, the difference must be paid by the trustee.

      3.  In any county in which a legal services organization exists, the governing body of the county, or of any school district, municipal corporation, political subdivision, public corporation or other local governmental agency of the State of Nevada in the county, may enter into a contract with the legal services organization pursuant to which the officers and employees of the legal services organization, and the dependents of those officers and employees, are eligible for any life, accident or health insurance provided pursuant to this section to the officers and employees, and the dependents of the officers and employees, of the county, school district, municipal corporation, political subdivision, public corporation or other local governmental agency.

      4.  If a contract is entered into pursuant to subsection 3, the officers and employees of the legal services organization:

      (a) Shall be deemed, solely for the purposes of this section, to be officers and employees of the county, school district, municipal corporation, political subdivision, public corporation or other local governmental agency with which the legal services organization has contracted; and

      (b) Must be required by the contract to pay the premiums or contributions for all insurance which they elect to accept or of which they authorize the purchase.

      5.  A contract that is entered into pursuant to subsection 3:

      (a) Must be submitted to the Commissioner of Insurance for approval not less than 30 days before the date on which the contract is to become effective.

      (b) Does not become effective unless approved by the Commissioner.

      (c) Shall be deemed to be approved if not disapproved by the Commissioner within 30 days after its submission.

      6.  As used in this section, “legal services organization” means an organization that operates a program for legal aid and receives money pursuant to NRS 19.031.

      Sec. 8. NRS 287.04335 is hereby amended to read as follows:

      287.04335  If the Board provides health insurance through a plan of self-insurance, it shall comply with the provisions of NRS 689B.255, 695G.150, 695G.160, 695G.162, 695G.164, 695G.1645, 695G.1665, 695G.167, 695G.170 to 695G.173, inclusive, 695G.177, 695G.200 to 695G.230, inclusive, 695G.241 to 695G.310, inclusive, and 695G.405, and sections 54, 55 and 56 of this act in the same manner as an insurer that is licensed pursuant to title 57 of NRS is required to comply with those provisions.

      Sec. 8.5. Chapter 639 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  Except as otherwise provided in subsections 2 and 3, pursuant to a valid prescription or order for a drug to be used for contraception or its therapeutic equivalent which has been approved by the Food and Drug Administration a pharmacist shall:

 


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      (a) The first time dispensing the drug or therapeutic equivalent to the patient, dispense up to a 3-month supply of the drug or therapeutic equivalent.

      (b) The second time dispensing the drug or therapeutic equivalent to the patient, dispense up to a 9-month supply of the drug or therapeutic equivalent, or any amount which covers the remainder of the plan year if the patient is covered by a health care plan, whichever is less.

      (c) For a refill in a plan year following the initial dispensing of a drug or therapeutic equivalent pursuant to paragraphs (a) and (b), dispense up to a 12-month supply of the drug or therapeutic equivalent or any amount which covers the remainder of the plan year if the patient is covered by a health care plan, whichever is less.

      2.  The provisions of paragraphs (b) and (c) of subsection 1 only apply if:

      (a) The drug for contraception or the therapeutic equivalent of such drug is the same drug or therapeutic equivalent which was previously prescribed or ordered pursuant to paragraph (a) of subsection 1; and

      (b) The patient is covered by the same health care plan.

      3.  If a prescription or order for a drug for contraception or its therapeutic equivalent limits the dispensing of the drug or therapeutic equivalent to a quantity which is less than the amount otherwise authorized to be dispensed pursuant to subsection 1, the pharmacist must dispense the drug or therapeutic equivalent in accordance with the quantity specified in the prescription or order.

      4.  As used in this section:

      (a) “Health care plan” means a policy, contract, certificate or agreement offered or issued by an insurer, including without limitation, the State Plan for Medicaid, to provide, deliver, arrange for, pay for or reimburse any of the costs of health care services.

      (b) “Plan year” means the year designated in the evidence of coverage of a health care plan in which a person is covered by such plan.

      (c) “Therapeutic equivalent” means a drug which:

             (1) Contains an identical amount of the same active ingredients in the same dosage and method of administration as another drug;

             (2) Is expected to have the same clinical effect when administered to a patient pursuant to a prescription or order as another drug; and

             (3) Meets any other criteria required by the Food and Drug Administration for classification as a therapeutic equivalent.

      Sec. 9. NRS 639.2396 is hereby amended to read as follows:

      639.2396  1.  Except as otherwise provided by subsection 2, a prescription which bears specific authorization to refill, given by the prescribing practitioner at the time he or she issued the original prescription, or a prescription which bears authorization permitting the pharmacist to refill the prescription as needed by the patient, may be refilled for the number of times authorized or for the period authorized if it was refilled in accordance with the number of doses ordered and the directions for use.

      2.  [A] Except as otherwise provided in section 8.5 of this act, a pharmacist may, in his or her professional judgment and pursuant to a valid prescription that specifies an initial amount of less than a 90-day supply of a drug other than a controlled substance followed by periodic refills of the initial amount of the drug, dispense not more than a 90-day supply of the drug if:

 


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      (a) The patient has used an initial 30-day supply of the drug or the drug has previously been prescribed to the patient in a 90-day supply;

      (b) The total number of dosage units that are dispensed pursuant to the prescription does not exceed the total number of dosage units, including refills, that are authorized on the prescription by the prescribing practitioner; and

      (c) The prescribing practitioner has not specified on the prescription that dispensing the prescription in an initial amount of less than a 90-day supply followed by periodic refills of the initial amount of the drug is medically necessary.

      3.  Nothing in this section shall be construed to alter the coverage provided under any contract or policy of health insurance, health plan or program or other agreement arrangement that provides health coverage.

      Sec. 10. (Deleted by amendment.)

      Sec. 11. Chapter 689A of NRS is hereby amended by adding thereto the provisions set forth as sections 12 and 13 of this act.

      Sec. 12. 1.  Except as otherwise provided in subsection 5, an insurer that offers or issues a policy of health insurance shall include in the policy coverage for:

      (a) Up to a 12-month supply, per prescription, of any type of drug for contraception or its therapeutic equivalent which is:

             (1) Lawfully prescribed or ordered;

             (2) Approved by the Food and Drug Administration;

             (3) Listed in subsection 8; and

             (4) Dispensed in accordance with section 8.5 of this act;

      (b) Any type of device for contraception which is:

             (1) Lawfully prescribed or ordered;

             (2) Approved by the Food and Drug Administration; and

             (3) Listed in subsection 8;

      (c) Insertion of a device for contraception or removal of such a device if the device was inserted while the insured was covered by the same policy of health insurance;

      (d) Education and counseling relating to the initiation of the use of contraception and any necessary follow-up after initiating such use; and

      (e) Voluntary sterilization for women.

      2.  An insurer must ensure that the benefits required by subsection 1 are made available to an insured through a provider of health care who participates in the network plan of the insurer.

      3.  Except as otherwise provided in subsections 6, 7 and 9, an insurer that offers or issues a policy of health insurance shall not:

      (a) Require an insured to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition to obtain any benefit provided in the policy of health insurance pursuant to subsection 1;

      (b) Refuse to issue a policy of health insurance or cancel a policy of health insurance solely because the person applying for or covered by the policy uses or may use any such benefit;

      (c) Offer or pay any type of material inducement or financial incentive to an insured to discourage the insured from obtaining any such benefit;

      (d) Penalize a provider of health care who provides any such benefit to an insured, including, without limitation, reducing the reimbursement of the provider of health care;

 


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      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay access to any such benefit to an insured; or

      (f) Impose any other restrictions or delays on the access of an insured to any such benefit.

      4.  Except as otherwise provided in subsection 5, a policy of health insurance subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after January 1, 2018, has the legal effect of including the coverage required by subsection 1, and any provision of the policy or the renewal which is in conflict with this section is void.

      5.  An insurer that offers or issues a policy of health insurance and which is affiliated with a religious organization is not required to provide the coverage required by subsection 1 if the insurer objects on religious grounds. Such an insurer shall, before the issuance of a policy of health insurance and before the renewal of such a policy, provide to the prospective insured written notice of the coverage that the insurer refuses to provide pursuant to this subsection.

      6.  An insurer may require an insured to pay a higher deductible, copayment or coinsurance for a drug for contraception if the insured refuses to accept a therapeutic equivalent of the drug.

      7.  For each of the 18 methods of contraception listed in subsection 8 that has been approved by the Food and Drug Administration, a policy of health insurance must include at least one drug or device for contraception for which no deductible, copayment or coinsurance may be charged to the insured, but the insurer may charge a deductible, copayment or coinsurance for any other drug or device that provides the same method of contraception.

      8.  The following 18 methods of contraception must be covered pursuant to this section:

      (a) Voluntary sterilization for women;

      (b) Surgical sterilization implants for women;

      (c) Implantable rods;

      (d) Copper-based intrauterine devices;

      (e) Progesterone-based intrauterine devices;

      (f) Injections;

      (g) Combined estrogen- and progestin-based drugs;

      (h) Progestin-based drugs;

      (i) Extended- or continuous-regimen drugs;

      (j) Estrogen- and progestin-based patches;

      (k) Vaginal contraceptive rings;

      (l) Diaphragms with spermicide;

      (m) Sponges with spermicide;

      (n) Cervical caps with spermicide;

      (o) Female condoms;

      (p) Spermicide;

      (q) Combined estrogen- and progestin-based drugs for emergency contraception or progestin-based drugs for emergency contraception; and

      (r) Ulipristal acetate for emergency contraception.

      9.  Except as otherwise provided in this section and federal law, an insurer may use medical management techniques, including, without limitation, any available clinical evidence, to determine the frequency of or treatment relating to any benefit required by this section or the type of provider of health care to use for such treatment.

 


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treatment relating to any benefit required by this section or the type of provider of health care to use for such treatment.

      10.  An insurer shall not use medical management techniques to require an insured to use a method of contraception other than the method prescribed or ordered by a provider of health care.

      11.  An insurer must provide an accessible, transparent and expedited process which is not unduly burdensome by which an insured, or the authorized representative of the insured, may request an exception relating to any medical management technique used by the insurer to obtain any benefit required by this section without a higher deductible, copayment or coinsurance.

      12.  As used in this section:

      (a) “Medical management technique” means a practice which is used to control the cost or utilization of health care services or prescription drug use. The term includes, without limitation, the use of step therapy, prior authorization or categorizing drugs and devices based on cost, type or method of administration.

      (b) “Network plan” means a policy of health insurance offered by an insurer under which the financing and delivery of medical care, including items and services paid for as medical care, are provided, in whole or in part, through a defined set of providers under contract with the insurer. The term does not include an arrangement for the financing of premiums.

      (c) “Provider of health care” has the meaning ascribed to it in NRS 629.031.

      (d) “Therapeutic equivalent” means a drug which:

             (1) Contains an identical amount of the same active ingredients in the same dosage and method of administration as another drug;

             (2) Is expected to have the same clinical effect when administered to a patient pursuant to a prescription or order as another drug; and

             (3) Meets any other criteria required by the Food and Drug Administration for classification as a therapeutic equivalent.

      Sec. 13.  1.  An insurer that offers or issues a policy of health insurance shall include in the policy coverage for:

      (a) Counseling, support and supplies for breastfeeding, including breastfeeding equipment, counseling and education during the antenatal, perinatal and postpartum period for not more than 1 year;

      (b) Screening and counseling for interpersonal and domestic violence for women at least annually with intervention services consisting of education, strategies to reduce harm, supportive services or a referral for any other appropriate services;

      (c) Behavioral counseling concerning sexually transmitted diseases from a provider of health care for sexually active women who are at increased risk for such diseases;

      (d) Such prenatal screenings and tests as recommended by the American College of Obstetricians and Gynecologists or its successor organization;

      (e) Screening for blood pressure abnormalities and diabetes, including gestational diabetes, after at least 24 weeks of gestation or as ordered by a provider of health care;

      (f) Screening for cervical cancer at such intervals as are recommended by the American College of Obstetricians and Gynecologists or its successor organization;

 


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      (g) Screening for depression;

      (h) Screening and counseling for the human immunodeficiency virus consisting of a risk assessment, annual education relating to prevention and at least one screening for the virus during the lifetime of the insured or as ordered by a provider of health care;

      (i) Smoking cessation programs for an insured who is 18 years of age or older consisting of not more than two cessation attempts per year and four counseling sessions per year;

      (j) All vaccinations recommended by the Advisory Committee on Immunization Practices of the Centers for Disease Control and Prevention of the United States Department of Health and Human Services or its successor organization; and

      (k) Such well-woman preventative visits as recommended by the Health Resources and Services Administration, which must include at least one such visit per year beginning at 14 years of age.

      2.  An insurer must ensure that the benefits required by subsection 1 are made available to an insured through a provider of health care who participates in the network plan of the insurer.

      3.  Except as otherwise provided in subsection 5, an insurer that offers or issues a policy of health insurance shall not:

      (a) Require an insured to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition to obtain any benefit provided in the policy of health insurance pursuant to subsection 1;

      (b) Refuse to issue a policy of health insurance or cancel a policy of health insurance solely because the person applying for or covered by the policy uses or may use any such benefit;

      (c) Offer or pay any type of material inducement or financial incentive to an insured to discourage the insured from obtaining any such benefit;

      (d) Penalize a provider of health care who provides any such benefit to an insured, including, without limitation, reducing the reimbursement of the provider of health care;

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay access to any such benefit to an insured; or

      (f) Impose any other restrictions or delays on the access of an insured to any such benefit.

      4.  A policy of health insurance subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after January 1, 2018, has the legal effect of including the coverage required by subsection 1, and any provision of the policy or the renewal which is in conflict with this section is void.

      5.  Except as otherwise provided in this section and federal law, an insurer may use medical management techniques, including, without limitation, any available clinical evidence, to determine the frequency of or treatment relating to any benefit required by this section or the type of provider of health care to use for such treatment.

      6.  As used in this section:

      (a) “Medical management technique” means a practice which is used to control the cost or utilization of health care services or prescription drug use.

 


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ê2017 Statutes of Nevada, Page 1809 (Chapter 323, SB 233)ê

 

use. The term includes, without limitation, the use of step therapy, prior authorization or categorizing drugs and devices based on cost, type or method of administration.

      (b) “Network plan” means a policy of health insurance offered by an insurer under which the financing and delivery of medical care, including items and services paid for as medical care, are provided, in whole or in part, through a defined set of providers under contract with the insurer. The term does not include an arrangement for the financing of premiums.

      (c) “Provider of health care” has the meaning ascribed to it in NRS 629.031.

      Sec. 14. NRS 689A.0405 is hereby amended to read as follows:

      689A.0405  1.  A policy of health insurance must provide coverage for benefits payable for expenses incurred for [:

      (a) An annual cytologic screening test for women 18 years of age or older;

      (b) A baseline mammogram for women between the ages of 35 and 40; and

      (c) An annual] a mammogram every 2 years, or annually if ordered by a provider of health care, for women 40 years of age or older.

      2.  [A policy of health insurance must not require an insured to obtain prior authorization for any service provided pursuant to subsection 1.

      3.]An insurer must ensure that the benefits required by subsection 1 are made available to an insured through a provider of health care who participates in the network plan of the insurer.

      3.  Except as otherwise provided in subsection 5, an insurer that offers or issues a policy of health insurance shall not:

      (a) Require an insured to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition to obtain any benefit provided in the policy of health insurance pursuant to subsection 1;

      (b) Refuse to issue a policy of health insurance or cancel a policy of health insurance solely because the person applying for or covered by the policy uses or may use any such benefit;

      (c) Offer or pay any type of material inducement or financial incentive to an insured to discourage the insured from obtaining any such benefit;

      (d) Penalize a provider of health care who provides any such benefit to an insured, including, without limitation, reducing the reimbursement of the provider of health care;

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay access to any such benefit to an insured; or

      (f) Impose any other restrictions or delays on the access of an insured to any such benefit.

      4.  A policy subject to the provisions of this chapter which is delivered, issued for delivery or renewed on or after [October 1, 1989,] January 1, 2018, has the legal effect of including the coverage required by subsection 1, and any provision of the policy or the renewal which is in conflict with [subsection 1] this section is void.

      5.  Except as otherwise provided in this section and federal law, an insurer may use medical management techniques, including, without limitation, any available clinical evidence, to determine the frequency of or treatment relating to any benefit required by this section or the type of provider of health care to use for such treatment.

 


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treatment relating to any benefit required by this section or the type of provider of health care to use for such treatment.

      6.  As used in this section:

      (a) “Medical management technique” means a practice which is used to control the cost or utilization of health care services or prescription drug use. The term includes, without limitation, the use of step therapy, prior authorization or categorizing drugs and devices based on cost, type or method of administration.

      (b) “Network plan” means a policy of health insurance offered by an insurer under which the financing and delivery of medical care, including items and services paid for as medical care, are provided, in whole or in part, through a defined set of providers under contract with the insurer. The term does not include an arrangement for the financing of premiums.

      (c) “Provider of health care” has the meaning ascribed to it in NRS 629.031.

      Sec. 15. NRS 689A.0415 is hereby amended to read as follows:

      689A.0415  1.  [Except as otherwise provided in subsection 5, an] An insurer that offers or issues a policy of health insurance which provides coverage for prescription drugs or devices shall include in the policy coverage for [:

      (a) Any type of drug or device for contraception; and

      (b) Any] any type of hormone replacement therapy [,

Ê] which is lawfully prescribed or ordered and which has been approved by the Food and Drug Administration.

      2.  An insurer that offers or issues a policy of health insurance that provides coverage for prescription drugs shall not:

      (a) Require an insured to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition for coverage for a prescription for [a contraceptive or] hormone replacement therapy ; [than is required for other prescription drugs covered by the policy;]

      (b) Refuse to issue a policy of health insurance or cancel a policy of health insurance solely because the person applying for or covered by the policy uses or may use in the future [any of the services listed in subsection 1;] hormone replacement therapy;

      (c) Offer or pay any type of material inducement or financial incentive to an insured to discourage the insured from accessing [any of the services listed in subsection 1;] hormone replacement therapy;

      (d) Penalize a provider of health care who provides [any of the services listed in subsection 1] hormone replacement therapy to an insured, including, without limitation, reducing the reimbursement of the provider of health care; or

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay [any of the services listed in subsection 1] hormone replacement therapy to an insured.

      3.  [Except as otherwise provided in subsection 5, a] A policy subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 1999, has the legal effect of including the coverage required by subsection 1, and any provision of the policy or the renewal which is in conflict with this section is void.

      4.  The provisions of this section do not [:

 


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      (a) Require] require an insurer to provide coverage for fertility drugs.

      [(b) Prohibit an insurer from requiring an insured to pay a deductible, copayment or coinsurance for the coverage required by paragraphs (a) and (b) of subsection 1 that is the same as the insured is required to pay for other prescription drugs covered by the policy.]

      5.  [An insurer which offers or issues a policy of health insurance and which is affiliated with a religious organization is not required to provide the coverage required by paragraph (a) of subsection 1 if the insurer objects on religious grounds. Such an insurer shall, before the issuance of a policy of health insurance and before the renewal of such a policy, provide to the prospective insured, written notice of the coverage that the insurer refuses to provide pursuant to this subsection.

      6.]  As used in this section, “provider of health care” has the meaning ascribed to it in NRS 629.031.

      Sec. 16. NRS 689A.0417 is hereby amended to read as follows:

      689A.0417  1.  [Except as otherwise provided in subsection 5, an] An insurer that offers or issues a policy of health insurance which provides coverage for outpatient care shall include in the policy coverage for any health care service related to [contraceptives or] hormone replacement therapy.

      2.  An insurer that offers or issues a policy of health insurance that provides coverage for outpatient care shall not:

      (a) Require an insured to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition for coverage for outpatient care related to [contraceptives or] hormone replacement therapy ; [than is required for other outpatient care covered by the policy;]

      (b) Refuse to issue a policy of health insurance or cancel a policy of health insurance solely because the person applying for or covered by the policy uses or may use in the future [any of the services listed in subsection 1;] hormone replacement therapy;

      (c) Offer or pay any type of material inducement or financial incentive to an insured to discourage the insured from accessing [any of the services listed in subsection 1;] hormone replacement therapy;

      (d) Penalize a provider of health care who provides [any of the services listed in subsection 1] hormone replacement therapy to an insured, including, without limitation, reducing the reimbursement of the provider of health care; or

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay [any of the services listed in subsection 1] hormone replacement therapy to an insured.

      3.  [Except as otherwise provided in subsection 5, a] A policy subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 1999, has the legal effect of including the coverage required by subsection 1, and any provision of the policy or the renewal which is in conflict with this section is void.

      4.  [The provisions of this section do not prohibit an insurer from requiring an insured to pay a deductible, copayment or coinsurance for the coverage required by subsection 1 that is the same as the insured is required to pay for other outpatient care covered by the policy.

 


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      5.  An insurer which offers or issues such a policy of health insurance and which is affiliated with a religious organization is not required to provide the coverage for health care service related to contraceptives required by this section if the insurer objects on religious grounds. Such an insurer shall, before the issuance of a policy of health insurance and before the renewal of such a policy, provide to the prospective insured written notice of the coverage that the insurer refuses to provide pursuant to this subsection.

      6.]  As used in this section, “provider of health care” has the meaning ascribed to it in NRS 629.031.

      Sec. 17. NRS 689A.044 is hereby amended to read as follows:

      689A.044  1.  A policy of health insurance must provide coverage for benefits payable for expenses incurred for [administering] :

      (a) Deoxyribonucleic acid testing for high-risk strains of human papillomavirus every 3 years for women 30 years of age or older; and

      (b) Administering the human papillomavirus vaccine as recommended for vaccination by a competent authority, including, without limitation, the Centers for Disease Control and Prevention of the United States Department of Health and Human Services, the Food and Drug Administration or the manufacturer of the vaccine.

      2.  [A policy of health insurance must not require an insured to obtain prior authorization for any service provided pursuant to subsection 1.

      3.] An insurer must ensure that the benefits required by subsection 1 are made available to an insured through a provider of health care who participates in the network plan of the insurer.

      3.  Except as otherwise provided in subsection 5, an insurer that offers or issues a policy of health insurance shall not:

      (a) Require an insured to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition to obtain any benefit provided in the policy of health insurance pursuant to subsection 1;

      (b) Refuse to issue a policy of health insurance or cancel a policy of health insurance solely because the person applying for or covered by the policy uses or may use any such benefit;

      (c) Offer or pay any type of material inducement or financial incentive to an insured to discourage the insured from obtaining any such benefit;

      (d) Penalize a provider of health care who provides any such benefit to an insured, including, without limitation, reducing the reimbursement of the provider of health care;

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay access to any such benefit to an insured; or

      (f) Impose any other restrictions or delays on the access of an insured to any such benefit.

      4.  A policy subject to the provisions of this chapter which is delivered, issued for delivery or renewed on or after [July 1, 2007,] January 1, 2018, has the legal effect of including the coverage required by subsection 1, and any provision of the policy or the renewal which is in conflict with [subsection 1] this section is void.

      [4.  For the purposes of]

      5.  Except as otherwise provided in this section and federal law, an insurer may use medical management techniques, including, without limitation, any available clinical evidence, to determine the frequency of or treatment relating to any benefit required by this section or the type of provider of health care to use for such treatment.

 


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ê2017 Statutes of Nevada, Page 1813 (Chapter 323, SB 233)ê

 

treatment relating to any benefit required by this section or the type of provider of health care to use for such treatment.

      6.  As used in this section [, “human] :

      (a) “Human papillomavirus vaccine” means the Quadrivalent Human Papillomavirus Recombinant Vaccine or its successor which is approved by the Food and Drug Administration for the prevention of human papillomavirus infection and cervical cancer.

      (b) “Medical management technique” means a practice which is used to control the cost or utilization of health care services or prescription drug use. The term includes, without limitation, the use of step therapy, prior authorization or categorizing drugs and devices based on cost, type or method of administration.

      (c) “Network plan” means a policy of health insurance offered by an insurer under which the financing and delivery of medical care, including items and services paid for as medical care, are provided, in whole or in part, through a defined set of providers under contract with the insurer. The term does not include an arrangement for the financing of premiums.

      (d) “Provider of health care” has the meaning ascribed to it in NRS 629.031.

      Sec. 18. NRS 689A.330 is hereby amended to read as follows:

      689A.330  If any policy is issued by a domestic insurer for delivery to a person residing in another state, and if the insurance commissioner or corresponding public officer of that other state has informed the Commissioner that the policy is not subject to approval or disapproval by that officer, the Commissioner may by ruling require that the policy meet the standards set forth in NRS 689A.030 to 689A.320, inclusive [.] , and sections 12 and 13 of this act.

      Sec. 19. Chapter 689B of NRS is hereby amended by adding thereto the provisions set forth as sections 20 and 21 of this act.

      Sec. 20. 1.  Except as otherwise provided in subsection 5, an insurer that offers or issues a policy of group health insurance shall include in the policy coverage for:

      (a) Up to a 12-month supply, per prescription, of any type of drug for contraception or its therapeutic equivalent which is:

             (1) Lawfully prescribed or ordered;

             (2) Approved by the Food and Drug Administration;

             (3) Listed in subsection 9; and

             (4) Dispensed in accordance with section 8.5 of this act;

      (b) Any type of device for contraception which is:

             (1) Lawfully prescribed or ordered;

             (2) Approved by the Food and Drug Administration; and

             (3) Listed in subsection 9;

      (c) Insertion of a device for contraception or removal of such a device if the device was inserted while the insured was covered by the same policy of group health insurance;

      (d) Education and counseling relating to the initiation of the use of contraception and any necessary follow-up after initiating such use; and

      (e) Voluntary sterilization for women.

      2.  An insurer must ensure that the benefits required by subsection 1 are made available to an insured through a provider of health care who participates in the network plan of the insurer.

 


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ê2017 Statutes of Nevada, Page 1814 (Chapter 323, SB 233)ê

 

      3.  Except as otherwise provided in subsections 7, 8 and 10, an insurer that offers or issues a policy of group health insurance shall not:

      (a) Require an insured to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition to obtain any benefit provided in the policy of group health insurance pursuant to subsection 1;

      (b) Refuse to issue a policy of group health insurance or cancel a policy of group health insurance solely because the person applying for or covered by the policy uses or may use any such benefit;

      (c) Offer or pay any type of material inducement or financial incentive to an insured to discourage the insured from obtaining any such benefit;

      (d) Penalize a provider of health care who provides any such benefit to an insured, including, without limitation, reducing the reimbursement of the provider of health care;

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay access to any such benefit to an insured; or

      (f) Impose any other restrictions or delays on the access of an insured to any such benefit.

      4.  Except as otherwise provided in subsection 5, a policy of group health insurance subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after January 1, 2018, has the legal effect of including the coverage required by subsection 1, and any provision of the policy or the renewal which is in conflict with this section is void.

      5.  An insurer that offers or issues such a policy of group health insurance and which is affiliated with a religious organization is not required to provide the coverage required by subsection 1 if the insurer objects on religious grounds. Such an insurer shall, before the issuance of a policy of group health insurance and before the renewal of such a policy, provide to the group policyholder or prospective insured, as applicable, written notice of the coverage that the insurer refuses to provide pursuant to this subsection.

      6.  If an insurer refuses, pursuant to subsection 5, to provide the coverage required by subsection 1, an employer may otherwise provide for the coverage for the employees of the employer.

      7.  An insurer may require an insured to pay a higher deductible, copayment or coinsurance for a drug for contraception if the insured refuses to accept a therapeutic equivalent of the drug.

      8.  For each of the 18 methods of contraception listed in subsection 9 that has been approved by the Food and Drug Administration, a policy of group health insurance must include at least one drug or device for contraception for which no deductible, copayment or coinsurance may be charged to the insured, but the insurer may charge a deductible, copayment or coinsurance for any other drug or device that provides the same method of contraception.

      9.  The following 18 methods of contraception must be covered pursuant to this section:

      (a) Voluntary sterilization for women;

      (b) Surgical sterilization implants for women;

      (c) Implantable rods;

      (d) Copper-based intrauterine devices;

 


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ê2017 Statutes of Nevada, Page 1815 (Chapter 323, SB 233)ê

 

      (e) Progesterone-based intrauterine devices;

      (f) Injections;

      (g) Combined estrogen- and progestin-based drugs;

      (h) Progestin-based drugs;

      (i) Extended- or continuous-regimen drugs;

      (j) Estrogen- and progestin-based patches;

      (k) Vaginal contraceptive rings;

      (l) Diaphragms with spermicide;

      (m) Sponges with spermicide;

      (n) Cervical caps with spermicide;

      (o) Female condoms;

      (p) Spermicide;

      (q) Combined estrogen- and progestin-based drugs for emergency contraception or progestin-based drugs for emergency contraception; and

      (r) Ulipristal acetate for emergency contraception.

      10.  Except as otherwise provided in this section and federal law, an insurer may use medical management techniques, including, without limitation, any available clinical evidence, to determine the frequency of or treatment relating to any benefit required by this section or the type of provider of health care to use for such treatment.

      11.  An insurer shall not use medical management techniques to require an insured to use a method of contraception other than the method prescribed or ordered by a provider of health care.

      12.  An insurer must provide an accessible, transparent and expedited process which is not unduly burdensome by which an insured, or the authorized representative of the insured, may request an exception relating to any medical management technique used by the insurer to obtain any benefit required by this section without a higher deductible, copayment or coinsurance.

      13.  As used in this section:

      (a) “Medical management technique” means a practice which is used to control the cost or utilization of health care services or prescription drug use. The term includes, without limitation, the use of step therapy, prior authorization or categorizing drugs and devices based on cost, type or method of administration.

      (b) “Network plan” means a policy of group health insurance offered by an insurer under which the financing and delivery of medical care, including items and services paid for as medical care, are provided, in whole or in part, through a defined set of providers under contract with the insurer. The term does not include an arrangement for the financing of premiums.

      (c) “Provider of health care” has the meaning ascribed to it in NRS 629.031.

      (d) “Therapeutic equivalent” means a drug which:

             (1) Contains an identical amount of the same active ingredients in the same dosage and method of administration as another drug;

             (2) Is expected to have the same clinical effect when administered to a patient pursuant to a prescription or order as another drug; and

             (3) Meets any other criteria required by the Food and Drug Administration for classification as a therapeutic equivalent.

      Sec. 21.  1.  An insurer that offers or issues a policy of group health insurance shall include in the policy coverage for:

 


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ê2017 Statutes of Nevada, Page 1816 (Chapter 323, SB 233)ê

 

      (a) Counseling, support and supplies for breastfeeding, including breastfeeding equipment, counseling and education during the antenatal, perinatal and postpartum period for not more than 1 year;

      (b) Screening and counseling for interpersonal and domestic violence for women at least annually with initial intervention services consisting of education, strategies to reduce harm, supportive services or a referral for any other appropriate services;

      (c) Behavioral counseling concerning sexually transmitted diseases from a provider of health care for sexually active women who are at increased risk for such diseases;

      (d) Such prenatal screenings and tests as recommended by the American College of Obstetricians and Gynecologists or its successor organization;

      (e) Screening for blood pressure abnormalities and diabetes, including gestational diabetes, after at least 24 weeks of gestation or as ordered by a provider of health care;

      (f) Screening for cervical cancer at such intervals as are recommended by the American College of Obstetricians and Gynecologists or its successor organization;

      (g) Screening for depression;

      (h) Screening and counseling for the human immunodeficiency virus consisting of a risk assessment, annual education relating to prevention and at least one screening for the virus during the lifetime of the insured or as ordered by a provider of health care;

      (i) Smoking cessation programs for an insured who is 18 years of age or older consisting of not more than two cessation attempts per year and four counseling sessions per year;

      (j) All vaccinations recommended by the Advisory Committee on Immunization Practices of the Centers for Disease Control and Prevention of the United States Department of Health and Human Services or its successor organization; and

      (k) Such well-woman preventative visits as recommended by the Health Resources and Services Administration, which must include at least one such visit per year beginning at 14 years of age.

      2.  An insurer must ensure that the benefits required by subsection 1 are made available to an insured through a provider of health care who participates in the network plan of the insurer.

      3.  Except as otherwise provided in subsection 5, an insurer that offers or issues a policy of group health insurance shall not:

      (a) Require an insured to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition to obtain any benefit provided in the policy of group health insurance pursuant to subsection 1;

      (b) Refuse to issue a policy of group health insurance or cancel a policy of group health insurance solely because the person applying for or covered by the policy uses or may use any such benefit;

      (c) Offer or pay any type of material inducement or financial incentive to an insured to discourage the insured from obtaining any such benefit;

      (d) Penalize a provider of health care who provides any such benefit to an insured, including, without limitation, reducing the reimbursement of the provider of health care;

 


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ê2017 Statutes of Nevada, Page 1817 (Chapter 323, SB 233)ê

 

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay access to any such benefit to an insured; or

      (f) Impose any other restrictions or delays on the access of an insured to any such benefit.

      4.  A policy subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after January 1, 2018, has the legal effect of including the coverage required by subsection 1, and any provision of the policy or the renewal which is in conflict with this section is void.

      5.  Except as otherwise provided in this section and federal law, an insurer may use medical management techniques, including, without limitation, any available clinical evidence, to determine the frequency of or treatment relating to any benefit required by this section or the type of provider of health care to use for such treatment.

      6.  As used in this section:

      (a) “Medical management technique” means a practice which is used to control the cost or utilization of health care services or prescription drug use. The term includes, without limitation, the use of step therapy, prior authorization or categorizing drugs and devices based on cost, type or method of administration.

      (b) “Network plan” means a policy of group health insurance offered by an insurer under which the financing and delivery of medical care, including items and services paid for as medical care, are provided, in whole or in part, through a defined set of providers under contract with the insurer. The term does not include an arrangement for the financing of premiums.

      (c) “Provider of health care” has the meaning ascribed to it in NRS 629.031.

      Sec. 22. NRS 689B.0313 is hereby amended to read as follows:

      689B.0313  1.  A policy of group health insurance must provide coverage for benefits payable for expenses incurred for [administering] :

      (a) Deoxyribonucleic acid testing for high-risk strains of human papillomavirus every 3 years for women 30 years of age or older; and

      (b) Administering the human papillomavirus vaccine as recommended for vaccination by a competent authority, including, without limitation, the Centers for Disease Control and Prevention of the United States Department of Health and Human Services, the Food and Drug Administration or the manufacturer of the vaccine.

      2.  [A policy of group health insurance must not require an insured to obtain prior authorization for any service provided pursuant to subsection 1.

      3.] An insurer must ensure that the benefits required by subsection 1 are made available to an insured through a provider of health care who participates in the network plan of the insurer.

      3.  Except as otherwise provided in subsection 5, an insurer that offers or issues a policy of group health insurance shall not:

      (a) Require an insured to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition to obtain any benefit provided in the policy of group health insurance pursuant to subsection 1;

 


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ê2017 Statutes of Nevada, Page 1818 (Chapter 323, SB 233)ê

 

      (b) Refuse to issue a policy of group health insurance or cancel a policy of group health insurance solely because the person applying for or covered by the policy uses or may use any such benefit;

      (c) Offer or pay any type of material inducement or financial incentive to an insured to discourage the insured from obtaining any such benefit;

      (d) Penalize a provider of health care who provides any such benefit to an insured, including, without limitation, reducing the reimbursement of the provider of health care;

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay access to any such benefit to an insured; or

      (f) Impose any other restrictions or delays on the access of an insured to any such benefit.

      4.  A policy subject to the provisions of this chapter which is delivered, issued for delivery or renewed on or after [July 1, 2007,] January 1, 2018, has the legal effect of including the coverage required by subsection 1, and any provision of the policy or the renewal which is in conflict with [subsection 1] this section is void.

      [4.  For the purposes of]

      5.  Except as otherwise provided in this section and federal law, an insurer may use medical management techniques, including, without limitation, any available clinical evidence, to determine the frequency of or treatment relating to any benefit required by this section or the type of provider of health care to use for such treatment.

      6.  As used in this section [, “human] :

      (a) “Human papillomavirus vaccine” means the Quadrivalent Human Papillomavirus Recombinant Vaccine or its successor which is approved by the Food and Drug Administration for the prevention of human papillomavirus infection and cervical cancer.

      (b) “Medical management technique” means a practice which is used to control the cost or utilization of health care services or prescription drug use. The term includes, without limitation, the use of step therapy, prior authorization or categorizing drugs and devices based on cost, type or method of administration.

      (c) “Network plan” means a policy of group health insurance offered by an insurer under which the financing and delivery of medical care, including items and services paid for as medical care, are provided, in whole or in part, through a defined set of providers under contract with the insurer. The term does not include an arrangement for the financing of premiums.

      (d) “Provider of health care” has the meaning ascribed to it in NRS 629.031.

      Sec. 23. NRS 689B.0374 is hereby amended to read as follows:

      689B.0374  1.  A policy of group health insurance must provide coverage for benefits payable for expenses incurred for [:

      (a) An annual cytologic screening test for women 18 years of age or older;

      (b) A baseline mammogram for women between the ages of 35 and 40; and

      (c) An annual] a mammogram every 2 years, or annually if ordered by a provider of health care, for women 40 years of age or older.

 


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ê2017 Statutes of Nevada, Page 1819 (Chapter 323, SB 233)ê

 

      2.  [A policy of group health insurance must not require an insured to obtain prior authorization for any service provided pursuant to subsection 1.

      3.] An insurer must ensure that the benefits required by subsection 1 are made available to an insured through a provider of health care who participates in the network plan of the insurer.

      3.  Except as otherwise provided in subsection 5, an insurer that offers or issues a policy of group health insurance shall not:

      (a) Require an insured to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition to obtain any benefit provided in the policy of group health insurance pursuant to subsection 1;

      (b) Refuse to issue a policy of group health insurance or cancel a policy of group health insurance solely because the person applying for or covered by the policy uses or may use any such benefit;

      (c) Offer or pay any type of material inducement or financial incentive to an insured to discourage the insured from obtaining any such benefit;

      (d) Penalize a provider of health care who provides any such benefit to an insured, including, without limitation, reducing the reimbursement of the provider of health care;

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay access to any such benefit to an insured; or

      (f) Impose any other restrictions or delays on the access of an insured to any such benefit.

      4.  A policy subject to the provisions of this chapter which is delivered, issued for delivery or renewed on or after [October 1, 1989,] January 1, 2018, has the legal effect of including the coverage required by subsection 1, and any provision of the policy or the renewal which is in conflict with [subsection 1] this section is void.

      5.  Except as otherwise provided in this section and federal law, an insurer may use medical management techniques, including, without limitation, any available clinical evidence, to determine the frequency of or treatment relating to any benefit required by this section or the type of provider of health care to use for such treatment.

      6.  As used in this section:

      (a) “Medical management technique” means a practice which is used to control the cost or utilization of health care services or prescription drug use. The term includes, without limitation, the use of step therapy, prior authorization or categorizing drugs and devices based on cost, type or method of administration.

      (b) “Network plan” means a policy of group health insurance offered by an insurer under which the financing and delivery of medical care, including items and services paid for as medical care, are provided, in whole or in part, through a defined set of providers under contract with the insurer. The term does not include an arrangement for the financing of premiums.

      (c) “Provider of health care” has the meaning ascribed to it in NRS 629.031.

      Sec. 24. NRS 689B.0376 is hereby amended to read as follows:

      689B.0376  1.  [Except as otherwise provided in subsection 5, an] An insurer that offers or issues a policy of group health insurance which provides coverage for prescription drugs or devices shall include in the policy coverage for [:

 


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ê2017 Statutes of Nevada, Page 1820 (Chapter 323, SB 233)ê

 

      (a) Any type of drug or device for contraception; and

      (b) Any] any type of hormone replacement therapy [,

Ê] which is lawfully prescribed or ordered and which has been approved by the Food and Drug Administration.

      2.  An insurer that offers or issues a policy of group health insurance that provides coverage for prescription drugs shall not:

      (a) Require an insured to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition for coverage for a prescription for [a contraceptive or] hormone replacement therapy ; [than is required for other prescription drugs covered by the policy;]

      (b) Refuse to issue a policy of group health insurance or cancel a policy of group health insurance solely because the person applying for or covered by the policy uses or may use in the future [any of the services listed in subsection 1;] hormone replacement therapy;

      (c) Offer or pay any type of material inducement or financial incentive to an insured to discourage the insured from accessing [any of the services listed in subsection 1;] hormone replacement therapy;

      (d) Penalize a provider of health care who provides [any of the services listed in subsection 1] hormone replacement therapy to an insured, including, without limitation, reducing the reimbursement of the provider of health care; or

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay [any of the services listed in subsection 1] hormone replacement therapy to an insured.

      3.  [Except as otherwise provided in subsection 5, a] A policy subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 1999, has the legal effect of including the coverage required by subsection 1, and any provision of the policy or the renewal which is in conflict with this section is void.

      4.  The provisions of this section do not [:

      (a) Require] require an insurer to provide coverage for fertility drugs.

      [(b) Prohibit an insurer from requiring an insured to pay a deductible, copayment or coinsurance for the coverage required by paragraphs (a) and (b) of subsection 1 that is the same as the insured is required to pay for other prescription drugs covered by the policy.]

      5.  [An insurer which offers or issues a policy of group health insurance and which is affiliated with a religious organization is not required to provide the coverage required by paragraph (a) of subsection 1 if the insurer objects on religious grounds. Such an insurer shall, before the issuance of a policy of group health insurance and before the renewal of such a policy, provide to the group policyholder or prospective insured, as applicable, written notice of the coverage that the insurer refuses to provide pursuant to this subsection. The insurer shall provide notice to each insured, at the time the insured receives his or her certificate of coverage or evidence of coverage, that the insurer refused to provide coverage pursuant to this subsection.

      6.  If an insurer refuses, pursuant to subsection 5, to provide the coverage required by paragraph (a) of subsection 1, an employer may otherwise provide for the coverage for the employees of the employer.

      7.]  As used in this section, “provider of health care” has the meaning ascribed to it in NRS 629.031.

 


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ê2017 Statutes of Nevada, Page 1821 (Chapter 323, SB 233)ê

 

      Sec. 25. NRS 689B.0377 is hereby amended to read as follows:

      689B.0377  1.  [Except as otherwise provided in subsection 5, an] An insurer that offers or issues a policy of group health insurance which provides coverage for outpatient care shall include in the policy coverage for any health care service related to [contraceptives or] hormone replacement therapy.

      2.  An insurer that offers or issues a policy of group health insurance that provides coverage for outpatient care shall not:

      (a) Require an insured to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition for coverage for outpatient care related to [contraceptives or] hormone replacement therapy ; [than is required for other outpatient care covered by the policy;]

      (b) Refuse to issue a policy of group health insurance or cancel a policy of group health insurance solely because the person applying for or covered by the policy uses or may use in the future [any of the services listed in subsection 1;] hormone replacement therapy;

      (c) Offer or pay any type of material inducement or financial incentive to an insured to discourage the insured from accessing [any of the services listed in subsection 1;] hormone replacement therapy;

      (d) Penalize a provider of health care who provides [any of the services listed in subsection 1] hormone replacement therapy to an insured, including, without limitation, reducing the reimbursement of the provider of health care; or

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay [any of the services listed in subsection 1] hormone replacement therapy to an insured.

      3.  [Except as otherwise provided in subsection 5, a] A policy subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 1999, has the legal effect of including the coverage required by subsection 1, and any provision of the policy or the renewal which is in conflict with this section is void.

      4.  [The provisions of this section do not prohibit an insurer from requiring an insured to pay a deductible, copayment or coinsurance for the coverage required by subsection 1 that is the same as the insured is required to pay for other outpatient care covered by the policy.

      5.  An insurer which offers or issues a policy of group health insurance and which is affiliated with a religious organization is not required to provide the coverage for health care service related to contraceptives required by this section if the insurer objects on religious grounds. Such an insurer shall, before the issuance of a policy of group health insurance and before the renewal of such a policy, provide to the group policyholder or prospective insured, as applicable, written notice of the coverage that the insurer refuses to provide pursuant to this subsection. The insurer shall provide notice to each insured, at the time the insured receives his or her certificate of coverage or evidence of coverage, that the insurer refused to provide coverage pursuant to this subsection.

      6.  If an insurer refuses, pursuant to subsection 5, to provide the coverage required by paragraph (a) of subsection 1, an employer may otherwise provide for the coverage for the employees of the employer.

 


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ê2017 Statutes of Nevada, Page 1822 (Chapter 323, SB 233)ê

 

      7.]  As used in this section, “provider of health care” has the meaning ascribed to it in NRS 629.031.

      Sec. 26. Chapter 689C of NRS is hereby amended by adding thereto the provisions set forth as sections 27 to 30, inclusive, of this act.

      Sec. 27. 1.  Except as otherwise provided in subsection 5, a carrier that offers or issues a health benefit plan shall include in the plan coverage for:

      (a) Up to a 12-month supply, per prescription, of any type of drug for contraception or its therapeutic equivalent which is:

             (1) Lawfully prescribed or ordered;

             (2) Approved by the Food and Drug Administration;

             (3) Listed in subsection 8; and

             (4) Dispensed in accordance with section 8.5 of this act;

      (b) Any type of device for contraception which is:

             (1) Lawfully prescribed or ordered;

             (2) Approved by the Food and Drug Administration; and

             (3) Listed in subsection 8;

      (c) Insertion of a device for contraception or removal of such a device if the device was inserted while the insured was covered by the same health benefit plan;

      (d) Education and counseling relating to the initiation of the use of contraception and any necessary follow-up after initiating such use; and

      (e) Voluntary sterilization for women.

      2.  A carrier must ensure that the benefits required by subsection 1 are made available to an insured through a provider of health care who participates in the network plan of the carrier.

      3.  Except as otherwise provided in subsections 6, 7 and 9, a carrier that offers or issues a health benefit plan shall not:

      (a) Require an insured to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition to obtain any benefit provided in the health benefit plan pursuant to subsection 1;

      (b) Refuse to issue a health benefit plan or cancel a health benefit plan solely because the person applying for or covered by the plan uses or may use any such benefit;

      (c) Offer or pay any type of material inducement or financial incentive to an insured to discourage the insured from obtaining any such benefit;

      (d) Penalize a provider of health care who provides any such benefit to an insured, including, without limitation, reducing the reimbursement of the provider of health care;

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay access to any such benefit to an insured; or

      (f) Impose any other restrictions or delays on the access of an insured to any such benefit.

      4.  Except as otherwise provided in subsection 5, a health benefit plan subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after January 1, 2018, has the legal effect of including the coverage required by subsection 1, and any provision of the plan or the renewal which is in conflict with this section is void.

      5.  A carrier that offers or issues a health benefit plan and which is affiliated with a religious organization is not required to provide the coverage required by subsection 1 if the carrier objects on religious grounds.

 


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ê2017 Statutes of Nevada, Page 1823 (Chapter 323, SB 233)ê

 

grounds. Such a carrier shall, before the issuance of a health benefit plan and before the renewal of such a plan, provide to the prospective insured written notice of the coverage that the carrier refuses to provide pursuant to this subsection.

      6.  A carrier may require an insured to pay a higher deductible, copayment or coinsurance for a drug for contraception if the insured refuses to accept a therapeutic equivalent of the drug.

      7.  For each of the 18 methods of contraception listed in subsection 8 that has been approved by the Food and Drug Administration, a health benefit plan must include at least one drug or device for contraception for which no deductible, copayment or coinsurance may be charged to the insured, but the carrier may charge a deductible, copayment or coinsurance for any other drug or device that provides the same method of contraception.

      8.  The following 18 methods of contraception must be covered pursuant to this section:

      (a) Voluntary sterilization for women;

      (b) Surgical sterilization implants for women;

      (c) Implantable rods;

      (d) Copper-based intrauterine devices;

      (e) Progesterone-based intrauterine devices;

      (f) Injections;

      (g) Combined estrogen- and progestin-based drugs;

      (h) Progestin-based drugs;

      (i) Extended- or continuous-regimen drugs;

      (j) Estrogen- and progestin-based patches;

      (k) Vaginal contraceptive rings;

      (l) Diaphragms with spermicide;

      (m) Sponges with spermicide;

      (n) Cervical caps with spermicide;

      (o) Female condoms;

      (p) Spermicide;

      (q) Combined estrogen- and progestin-based drugs for emergency contraception or progestin-based drugs for emergency contraception; and

      (r) Ulipristal acetate for emergency contraception.

      9.  Except as otherwise provided in this section and federal law, a carrier may use medical management techniques, including, without limitation, any available clinical evidence, to determine the frequency of or treatment relating to any benefit required by this section or the type of provider of health care to use for such treatment.

      10.  A carrier shall not use medical management techniques to require an insured to use a method of contraception other than the method prescribed or ordered by a provider of health care.

      11.  A carrier must provide an accessible, transparent and expedited process which is not unduly burdensome by which an insured, or the authorized representative of the insured, may request an exception relating to any medical management technique used by the carrier to obtain any benefit required by this section without a higher deductible, copayment or coinsurance.

      12.  As used in this section:

      (a) “Medical management technique” means a practice which is used to control the cost or utilization of health care services or prescription drug use.

 


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ê2017 Statutes of Nevada, Page 1824 (Chapter 323, SB 233)ê

 

use. The term includes, without limitation, the use of step therapy, prior authorization or categorizing drugs and devices based on cost, type or method of administration.

      (b) “Network plan” means a health benefit plan offered by a carrier under which the financing and delivery of medical care, including items and services paid for as medical care, are provided, in whole or in part, through a defined set of providers under contract with the carrier. The term does not include an arrangement for the financing of premiums.

      (c) “Provider of health care” has the meaning ascribed to it in NRS 629.031.

      (d) “Therapeutic equivalent” means a drug which:

             (1) Contains an identical amount of the same active ingredients in the same dosage and method of administration as another drug;

             (2) Is expected to have the same clinical effect when administered to a patient pursuant to a prescription or order as another drug; and

             (3) Meets any other criteria required by the Food and Drug Administration for classification as a therapeutic equivalent.

      Sec. 28. 1.  A carrier that offers or issues a health benefit plan shall include in the plan coverage for:

      (a) Counseling, support and supplies for breastfeeding, including breastfeeding equipment, counseling and education during the antenatal, perinatal and postpartum period for not more than 1 year;

      (b) Screening and counseling for interpersonal and domestic violence for women at least annually, with initial intervention services consisting of education, strategies to reduce harm, supportive services or a referral for any other appropriate services;

      (c) Behavioral counseling concerning sexually transmitted diseases from a provider of health care for sexually active women who are at increased risk for such diseases;

      (d) Hormone replacement therapy;

      (e) Such prenatal screenings and tests as recommended by the American College of Obstetricians and Gynecologists or its successor organization;

      (f) Screening for blood pressure abnormalities and diabetes, including gestational diabetes, after at least 24 weeks of gestation or as ordered by a provider of health care;

      (g) Screening for cervical cancer at such intervals as are recommended by the American College of Obstetricians and Gynecologists or its successor organization;

      (h) Screening for depression;

      (i) Screening and counseling for the human immunodeficiency virus consisting of a risk assessment, annual education relating to prevention and at least one screening for the virus during the lifetime of the insured or as ordered by a provider of health care;

      (j) Smoking cessation programs for an insured who is 18 years of age or older consisting of not more than two cessation attempts per year and four counseling sessions per year;

      (k) All vaccinations recommended by the Advisory Committee on Immunization Practices of the Centers for Disease Control and Prevention of the United States Department of Health and Human Services or its successor organization; and

 


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ê2017 Statutes of Nevada, Page 1825 (Chapter 323, SB 233)ê

 

      (l) Such well-woman preventative visits as recommended by the Health Resources and Services Administration, which must include at least one such visit per year beginning at 14 years of age.

      2.  A carrier must ensure that the benefits required by subsection 1 are made available to an insured through a provider of health care who participates in the network plan of the carrier.

      3.  Except as otherwise provided in subsection 5, a carrier that offers or issues a health benefit plan shall not:

      (a) Require an insured to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition to obtain any benefit provided in the health benefit plan pursuant to subsection 1;

      (b) Refuse to issue a health benefit plan or cancel a health benefit plan solely because the person applying for or covered by the plan uses or may use any such benefit;

      (c) Offer or pay any type of material inducement or financial incentive to an insured to discourage the insured from obtaining any such benefit;

      (d) Penalize a provider of health care who provides any such benefit to an insured, including, without limitation, reducing the reimbursement of the provider of health care;

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay access to any such benefit to an insured; or

      (f) Impose any other restrictions or delays on the access of an insured to any such benefit.

      4.  A plan subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after January 1, 2018, has the legal effect of including the coverage required by subsection 1, and any provision of the plan or the renewal which is in conflict with this section is void.

      5.  Except as otherwise provided in this section and federal law, a carrier may use medical management techniques, including, without limitation, any available clinical evidence, to determine the frequency of or treatment relating to any benefit required by this section or the type of provider of health care to use for such treatment.

      6.  As used in this section:

      (a) “Medical management technique” means a practice which is used to control the cost or utilization of health care services or prescription drug use. The term includes, without limitation, the use of step therapy, prior authorization or categorizing drugs and devices based on cost, type or method of administration.

      (b) “Network plan” means a health benefit plan offered by a carrier under which the financing and delivery of medical care, including items and services paid for as medical care, are provided, in whole or in part, through a defined set of providers under contract with the carrier. The term does not include an arrangement for the financing of premiums.

      (c) “Provider of health care” has the meaning ascribed to it in NRS 629.031.

      Sec. 29. 1.  A health benefit plan must provide coverage for benefits payable for expenses incurred for:

      (a) Deoxyribonucleic acid testing for high-risk strains of human papillomavirus every 3 years for women 30 years of age or older; and

 


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ê2017 Statutes of Nevada, Page 1826 (Chapter 323, SB 233)ê

 

      (b) Administering the human papillomavirus vaccine as recommended for vaccination by a competent authority, including, without limitation, the Centers for Disease Control and Prevention of the United States Department of Health and Human Services, the Food and Drug Administration or the manufacturer of the vaccine.

      2.  A carrier must ensure that the benefits required by subsection 1 are made available to an insured through a provider of health care who participates in the network plan of the carrier.

      3.  Except as otherwise provided in subsection 5, a carrier that offers or issues a health benefit plan shall not:

      (a) Require an insured to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition to obtain any benefit provided in the health benefit plan pursuant to subsection 1;

      (b) Refuse to issue a health benefit plan or cancel a health benefit plan solely because the person applying for or covered by the plan uses or may use any such benefit;

      (c) Offer or pay any type of material inducement or financial incentive to an insured to discourage the insured from obtaining any such benefit;

      (d) Penalize a provider of health care who provides any such benefit to an insured, including, without limitation, reducing the reimbursement of the provider of health care;

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay access to any such benefit to an insured; or

      (f) Impose any other restrictions or delays on the access of an insured to any such benefit.

      4.  A plan subject to the provisions of this chapter which is delivered, issued for delivery or renewed on or after January 1, 2018, has the legal effect of including the coverage required by subsection 1, and any provision of the plan or the renewal which is in conflict with this section is void.

      5.  Except as otherwise provided in this section and federal law, a carrier may use medical management techniques, including, without limitation, any available clinical evidence, to determine the frequency of or treatment relating to any benefit required by this section or the type of provider of health care to use for such treatment.

      6.  As used in this section:

      (a) “Human papillomavirus vaccine” means the Quadrivalent Human Papillomavirus Recombinant Vaccine or its successor which is approved by the Food and Drug Administration for the prevention of human papillomavirus infection and cervical cancer.

      (b) “Medical management technique” means a practice which is used to control the cost or utilization of health care services or prescription drug use. The term includes, without limitation, the use of step therapy, prior authorization or categorizing drugs and devices based on cost, type or method of administration.

      (c) “Network plan” means a health benefit plan offered by a carrier under which the financing and delivery of medical care, including items and services paid for as medical care, are provided, in whole or in part, through a defined set of providers under contract with the carrier. The term does not include an arrangement for the financing of premiums.

 


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ê2017 Statutes of Nevada, Page 1827 (Chapter 323, SB 233)ê

 

      (d) “Provider of health care” has the meaning ascribed to it in NRS 629.031.

      Sec. 30. 1.  A health benefit plan must provide coverage for benefits payable for expenses incurred for a mammogram every 2 years, or annually if ordered by a provider of health care, for women 40 years of age or older.

      2.  A carrier must ensure that the benefits required by subsection 1 are made available to an insured through a provider of health care who participates in the network plan of the carrier.

      3.  Except as otherwise provided in subsection 5, a carrier that offers or issues a health benefit plan shall not:

      (a) Require an insured to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition to obtain any benefit provided in the health benefit plan pursuant to subsection 1;

      (b) Refuse to issue a health benefit plan or cancel a health benefit plan solely because the person applying for or covered by the plan uses or may use any such benefit;

      (c) Offer or pay any type of material inducement or financial incentive to an insured to discourage the insured from obtaining any such benefit;

      (d) Penalize a provider of health care who provides any such benefit to an insured, including, without limitation, reducing the reimbursement of the provider of health care;

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay access to any such benefit to an insured; or

      (f) Impose any other restrictions or delays on the access of an insured to any such benefit.

      4.  A plan subject to the provisions of this chapter which is delivered, issued for delivery or renewed on or after January 1, 2018, has the legal effect of including the coverage required by subsection 1, and any provision of the plan or the renewal which is in conflict with this section is void.

      5.  Except as otherwise provided in this section and federal law, a carrier may use medical management techniques, including, without limitation, any available clinical evidence, to determine the frequency of or treatment relating to any benefit required by this section or the type of provider of health care to use for such treatment.

      6.  As used in this section:

      (a) “Medical management technique” means a practice which is used to control the cost or utilization of health care services or prescription drug use. The term includes, without limitation, the use of step therapy, prior authorization or categorizing drugs and devices based on cost, type or method of administration.

      (b) “Network plan” means a health benefit plan offered by a carrier under which the financing and delivery of medical care, including items and services paid for as medical care, are provided, in whole or in part, through a defined set of providers under contract with the carrier. The term does not include an arrangement for the financing of premiums.

      (c) “Provider of health care” has the meaning ascribed to it in NRS 629.031.

 


…………………………………………………………………………………………………………………

ê2017 Statutes of Nevada, Page 1828 (Chapter 323, SB 233)ê

 

      Sec. 31. NRS 689C.425 is hereby amended to read as follows:

      689C.425  A voluntary purchasing group and any contract issued to such a group pursuant to NRS 689C.360 to 689C.600, inclusive, are subject to the provisions of NRS 689C.015 to 689C.355, inclusive, and sections 27 to 30, inclusive, of this act to the extent applicable and not in conflict with the express provisions of NRS 687B.408 and 689C.360 to 689C.600, inclusive.

      Sec. 32. Chapter 695A of NRS is hereby amended by adding thereto the provisions set forth as sections 33 to 36, inclusive, of this act.

      Sec. 33. 1.  Except as otherwise provided in subsection 5, a society that offers or issues a benefit contract which provides coverage for prescription drugs or devices shall include in the contract coverage for:

      (a) Up to a 12-month supply, per prescription, of any type of drug for contraception or its therapeutic equivalent which is:

             (1) Lawfully prescribed or ordered;

             (2) Approved by the Food and Drug Administration;

             (3) Listed in subsection 8; and

             (4) Dispensed in accordance with section 8.5 of this act;

      (b) Any type of device for contraception which is:

             (1) Lawfully prescribed or ordered;

             (2) Approved by the Food and Drug Administration; and

             (3) Listed in subsection 8;

      (c) Insertion of a device for contraception or removal of such a device if the device was inserted while the insured was covered by the same benefit contract;

      (d) Education and counseling relating to the initiation of the use of contraception and any necessary follow-up after initiating such use; and

      (e) Voluntary sterilization for women.

      2.  A society must ensure that the benefits required by subsection 1 are made available to an insured through a provider of health care who participates in the network plan of the society.

      3.  Except as otherwise provided in subsections 6, 7 and 9, a society that offers or issues a benefit contract shall not:

      (a) Require an insured to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition to obtain any benefit provided in the benefit contract pursuant to subsection 1;

      (b) Refuse to issue a benefit contract or cancel a benefit contract solely because the person applying for or covered by the contract uses or may use any such benefit;

      (c) Offer or pay any type of material inducement or financial incentive to an insured to discourage the insured from obtaining any such benefit;

      (d) Penalize a provider of health care who provides any such benefit to an insured, including, without limitation, reducing the reimbursement of the provider of health care;

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay access to any such benefit to an insured; or

      (f) Impose any other restrictions or delays on the access of an insured to any such benefit.

      4.  Except as otherwise provided in subsection 5, a benefit contract subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after January 1, 2018, has the legal effect of including the coverage required by subsection 1, and any provision of the contract or the renewal which is in conflict with this section is void.

 


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ê2017 Statutes of Nevada, Page 1829 (Chapter 323, SB 233)ê

 

or renewed on or after January 1, 2018, has the legal effect of including the coverage required by subsection 1, and any provision of the contract or the renewal which is in conflict with this section is void.

      5.  A society that offers or issues a benefit contract and which is affiliated with a religious organization is not required to provide the coverage required by subsection 1 if the society objects on religious grounds. Such a society shall, before the issuance of a benefit contract and before the renewal of such a contract, provide to the prospective insured written notice of the coverage that the society refuses to provide pursuant to this subsection.

      6.  A society may require an insured to pay a higher deductible, copayment or coinsurance for a drug for contraception if the insured refuses to accept a therapeutic equivalent of the drug.

      7.  For each of the 18 methods of contraception listed in subsection 8 that has been approved by the Food and Drug Administration, a benefit contract must include at least one drug or device for contraception for which no deductible, copayment or coinsurance may be charged to the insured, but the society may charge a deductible, copayment or coinsurance for any other drug or device that provides the same method of contraception.

      8.  The following 18 methods of contraception must be covered pursuant to this section:

      (a) Voluntary sterilization for women;

      (b) Surgical sterilization implants for women;

      (c) Implantable rods;

      (d) Copper-based intrauterine devices;

      (e) Progesterone-based intrauterine devices;

      (f) Injections;

      (g) Combined estrogen- and progestin-based drugs;

      (h) Progestin-based drugs;

      (i) Extended- or continuous-regimen drugs;

      (j) Estrogen- and progestin-based patches;

      (k) Vaginal contraceptive rings;

      (l) Diaphragms with spermicide;

      (m) Sponges with spermicide;

      (n) Cervical caps with spermicide;

      (o) Female condoms;

      (p) Spermicide;

      (q) Combined estrogen- and progestin-based drugs for emergency contraception or progestin-based drugs for emergency contraception; and

      (r) Ulipristal acetate for emergency contraception.

      9.  Except as otherwise provided in this section and federal law, a society may use medical management techniques, including, without limitation, any available clinical evidence, to determine the frequency of or treatment relating to any benefit required by this section or the type of provider of health care to use for such treatment.

      10.  A society shall not use medical management techniques to require an insured to use a method of contraception other than the method prescribed or ordered by a provider of health care.

      11.  A society must provide an accessible, transparent and expedited process which is not unduly burdensome by which an insured, or the authorized representative of the insured, may request an exception relating to any medical management technique used by the society to obtain any benefit required by this section without a higher deductible, copayment or coinsurance.

 


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ê2017 Statutes of Nevada, Page 1830 (Chapter 323, SB 233)ê

 

to any medical management technique used by the society to obtain any benefit required by this section without a higher deductible, copayment or coinsurance.

      12.  As used in this section:

      (a) “Medical management technique” means a practice which is used to control the cost or utilization of health care services or prescription drug use. The term includes, without limitation, the use of step therapy, prior authorization or categorizing drugs and devices based on cost, type or method of administration.

      (b) “Network plan” means a benefit contract offered by a society under which the financing and delivery of medical care, including items and services paid for as medical care, are provided, in whole or in part, through a defined set of providers under contract with the society. The term does not include an arrangement for the financing of premiums.

      (c) “Provider of health care” has the meaning ascribed to it in NRS 629.031.

      (d) “Therapeutic equivalent” means a drug which:

             (1) Contains an identical amount of the same active ingredients in the same dosage and method of administration as another drug;

             (2) Is expected to have the same clinical effect when administered to a patient pursuant to a prescription or order as another drug; and

             (3) Meets any other criteria required by the Food and Drug Administration for classification as a therapeutic equivalent.

      Sec. 34. 1.  A society that offers or issues a benefit contract shall include in the contract coverage for:

      (a) Counseling, support and supplies for breastfeeding, including breastfeeding equipment, counseling and education during the antenatal, perinatal and postpartum period for not more than 1 year;

      (b) Screening and counseling for interpersonal and domestic violence for women at least annually with initial intervention services consisting of education, strategies to reduce harm, supportive services or a referral for any other appropriate services;

      (c) Behavioral counseling concerning sexually transmitted diseases from a provider of health care for sexually active women who are at increased risk for such diseases;

      (d) Hormone replacement therapy;

      (e) Such prenatal screenings and tests as recommended by the American College of Obstetricians and Gynecologists or its successor organization;

      (f) Screening for blood pressure abnormalities and diabetes, including gestational diabetes, after at least 24 weeks of gestation or as ordered by a provider of health care;

      (g) Screening for cervical cancer at such intervals as are recommended by the American College of Obstetricians and Gynecologists or its successor organization;

      (h) Screening for depression;

      (i) Screening and counseling for the human immunodeficiency virus consisting of a risk assessment, annual education relating to prevention and at least one screening for the virus during the lifetime of the insured or as ordered by a provider of health care;

 


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ê2017 Statutes of Nevada, Page 1831 (Chapter 323, SB 233)ê

 

      (j) Smoking cessation programs for an insured who is 18 years of age or older consisting of not more than two cessation attempts per year and four counseling sessions per year;

      (k) All vaccinations recommended by the Advisory Committee on Immunization Practices of the Centers for Disease Control and Prevention of the United States Department of Health and Human Services or its successor organization; and

      (l) Such well-woman preventative visits as recommended by the Health Resources and Services Administration, which must include at least one such visit per year beginning at 14 years of age.

      2.  A society must ensure that the benefits required by subsection 1 are made available to an insured through a provider of health care who participates in the network plan of the society.

      3.  Except as otherwise provided in subsection 5, a society that offers or issues a benefit contract shall not:

      (a) Require an insured to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition to obtain any benefit provided in the benefit contract pursuant to subsection 1;

      (b) Refuse to issue a benefit contract or cancel a benefit contract solely because the person applying for or covered by the contract uses or may use any such benefit;

      (c) Offer or pay any type of material inducement or financial incentive to an insured to discourage the insured from obtaining any such benefit;

      (d) Penalize a provider of health care who provides any such benefit to an insured, including, without limitation, reducing the reimbursement of the provider of health care;

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay access to any such benefit to an insured; or

      (f) Impose any other restrictions or delays on the access of an insured to any such benefit.

      4.  A benefit contract subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after January 1, 2018, has the legal effect of including the coverage required by subsection 1, and any provision of the benefit contract or the renewal which is in conflict with this section is void.

      5.  Except as otherwise provided in this section and federal law, a society may use medical management techniques, including, without limitation, any available clinical evidence, to determine the frequency of or treatment relating to any benefit required by this section or the type of provider of health care to use for such treatment.

      6.  As used in this section:

      (a) “Medical management technique” means a practice which is used to control the cost or utilization of health care services or prescription drug use. The term includes, without limitation, the use of step therapy, prior authorization or categorizing drugs and devices based on cost, type or method of administration.

      (b) “Network plan” means a benefit contract offered by a society under which the financing and delivery of medical care, including items and services paid for as medical care, are provided, in whole or in part, through a defined set of providers under contract with the society. The term does not include an arrangement for the financing of premiums.

 


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ê2017 Statutes of Nevada, Page 1832 (Chapter 323, SB 233)ê

 

      (c) “Provider of health care” has the meaning ascribed to it in NRS 629.031.

      Sec. 35. 1.  A benefit contract must provide coverage for benefits payable for expenses incurred for:

      (a) Deoxyribonucleic acid testing for high-risk strains of human papillomavirus every 3 years for women 30 years of age and older; and

      (b) Administering the human papillomavirus vaccine, as recommended for vaccination by a competent authority, including, without limitation, the Centers for Disease Control and Prevention of the United States Department of Health and Human Services, the Food and Drug Administration or the manufacturer of the vaccine.

      2.  A society must ensure that the benefits required by subsection 1 are made available to an insured through a provider of health care who participates in the network plan of the society.

      3.  Except as otherwise provided in subsection 5, a society that offers or issues a benefit contract shall not:

      (a) Require an insured to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition for coverage to obtain any benefit provided in the benefit contract pursuant to subsection 1;

      (b) Refuse to issue a benefit contract or cancel a benefit contract solely because the person applying for or covered by the contract uses or may use any such benefit;

      (c) Offer or pay any type of material inducement or financial incentive to an insured to discourage the insured from obtaining any such benefit;

      (d) Penalize a provider of health care who provides any such benefit to an insured, including, without limitation, reducing the reimbursement of the provider of health care;

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay access to any such benefit to an insured; or

      (f) Impose any other restrictions or delays on the access of an insured to any such benefit.

      4.  A benefit contract subject to the provisions of this chapter which is delivered, issued for delivery or renewed on or after January 1, 2018, has the legal effect of including the coverage required by subsection 1, and any provision of the benefit contract or the renewal which is in conflict with this section is void.

      5.  Except as otherwise provided in this section and federal law, a society may use medical management techniques, including, without limitation, any available clinical evidence, to determine the frequency of or treatment relating to any benefit required by this section or the type of provider of health care to use for such treatment.

      6.  As used in this section:

      (a) “Human papillomavirus vaccine” means the Quadrivalent Human Papillomavirus Recombinant Vaccine or its successor which is approved by the Food and Drug Administration for the prevention of human papillomavirus infection and cervical cancer.

      (b) “Medical management technique” means a practice which is used to control the cost or utilization of health care services or prescription drug use.

 


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ê2017 Statutes of Nevada, Page 1833 (Chapter 323, SB 233)ê

 

use. The term includes, without limitation, the use of step therapy, prior authorization or categorizing drugs and devices based on cost, type or method of administration.

      (c) “Network plan” means a benefit contract offered by a society under which the financing and delivery of medical care, including items and services paid for as medical care, are provided, in whole or in part, through a defined set of providers under contract with the society. The term does not include an arrangement for the financing of premiums.

      (d) “Provider of health care” has the meaning ascribed to it in NRS 629.031.

      Sec. 36. 1.  A benefit contract must provide coverage for benefits payable for expenses incurred for a mammogram every 2 years, or annually if ordered by a provider of health care, for women 40 years of age or older.

      2.  A society must ensure that the benefits required by subsection 1 are made available to an insured through a provider of health care who participates in the network plan of the society.

      3.  Except as otherwise provided in subsection 5, a society that offers or issues a benefit contract shall not:

      (a) Require an insured to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition for coverage to obtain any benefit provided in a benefit contract pursuant to subsection 1;

      (b) Refuse to issue a benefit contract or cancel a benefit contract solely because the person applying for or covered by the contract uses or may use any such benefit;

      (c) Offer or pay any type of material inducement or financial incentive to an insured to discourage the insured from obtaining any such benefit;

      (d) Penalize a provider of health care who provides any such benefit to an insured, including, without limitation, reducing the reimbursement of the provider of health care;

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay access to any such benefit to an insured; or

      (f) Impose any other restrictions or delays on the access of an insured to any such benefit.

      4.  A benefit contract subject to the provisions of this chapter which is delivered, issued for delivery or renewed on or after January 1, 2018, has the legal effect of including the coverage required by subsection 1, and any provision of the benefit contract or the renewal which is in conflict with this section is void.

      5.  Except as otherwise provided in this section and federal law, a society may use medical management techniques, including, without limitation, any available clinical evidence, to determine the frequency of or treatment relating to any benefit required by this section or the type of provider of health care to use for such treatment.

      6.  As used in this section:

      (a) “Medical management technique” means a practice which is used to control the cost or utilization of health care services or prescription drug use. The term includes, without limitation, the use of step therapy, prior authorization or categorizing drugs and devices based on cost, type or method of administration.

 


…………………………………………………………………………………………………………………

ê2017 Statutes of Nevada, Page 1834 (Chapter 323, SB 233)ê

 

      (b) “Network plan” means a benefit contract offered by a society under which the financing and delivery of medical care, including items and services paid for as medical care, are provided, in whole or in part, through a defined set of providers under contract with the society. The term does not include an arrangement for the financing of premiums.

      (c) “Provider of health care” has the meaning ascribed to it in NRS 629.031.

      Sec. 37. Chapter 695B of NRS is hereby amended by adding thereto the provisions set forth as sections 38 and 39 of this act.

      Sec. 38. 1.  Except as otherwise provided in subsection 5, an insurer that offers or issues a contract for hospital or medical service shall include in the contract coverage for:

      (a) Up to a 12-month supply, per prescription, of any type of drug for contraception or its therapeutic equivalent which is:

             (1) Lawfully prescribed or ordered;

             (2) Approved by the Food and Drug Administration;

             (3) Listed in subsection 9; and

             (4) Dispensed in accordance with section 8.5 of this act;

      (b) Any type of device for contraception which is:

             (1) Lawfully prescribed or ordered;

             (2) Approved by the Food and Drug Administration; and

             (3) Listed in subsection 9;

      (c) Insertion of a device for contraception or removal of such a device if the device was inserted while the insured was covered by the same contract for hospital or medical service;

      (d) Education and counseling relating to the initiation of the use of contraception and any necessary follow-up after initiating such use; and

      (e) Voluntary sterilization for women.

      2.  An insurer must ensure that the benefits required by subsection 1 are made available to an insured through a provider of health care who participates in the network plan of the insurer.

      3.  Except as otherwise provided in subsections 7, 8 and 10, an insurer that offers or issues a contract for hospital or medical service shall not:

      (a) Require an insured to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition to obtain any benefit provided in the contract for hospital or medical service pursuant to subsection 1;

      (b) Refuse to issue a contract for hospital or medical service or cancel a contract for hospital or medical service solely because the person applying for or covered by the contract uses or may use any such benefit;

      (c) Offer or pay any type of material inducement or financial incentive to an insured to discourage the insured from obtaining any such benefit;

      (d) Penalize a provider of health care who provides any such benefit to an insured, including, without limitation, reducing the reimbursement of the provider of health care;

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay access to any such benefit to an insured; or

      (f) Impose any other restrictions or delays on the access of an insured to any such benefit.

      4.  Except as otherwise provided in subsection 5, a contract for hospital or medical service subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after January 1, 2018, has the legal effect of including the coverage required by subsection 1, and any provision of the contract or the renewal which is in conflict with this section is void.

 


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ê2017 Statutes of Nevada, Page 1835 (Chapter 323, SB 233)ê

 

delivered, issued for delivery or renewed on or after January 1, 2018, has the legal effect of including the coverage required by subsection 1, and any provision of the contract or the renewal which is in conflict with this section is void.

      5.  An insurer that offers or issues a contract for hospital or medical service and which is affiliated with a religious organization is not required to provide the coverage required by subsection 1 if the insurer objects on religious grounds. Such an insurer shall, before the issuance of a contract for hospital or medical service and before the renewal of such a contract, provide to the prospective insured written notice of the coverage that the insurer refuses to provide pursuant to this subsection.

      6.  If an insurer refuses, pursuant to subsection 5, to provide the coverage required by subsection 1, an employer may otherwise provide for the coverage for the employees of the employer.

      7.  An insurer may require an insured to pay a higher deductible, copayment or coinsurance for a drug for contraception if the insured refuses to accept a therapeutic equivalent of the drug.

      8.  For each of the 18 methods of contraception listed in subsection 9 that has been approved by the Food and Drug Administration, a contract for hospital or medical service must include at least one drug or device for contraception for which no deductible, copayment or coinsurance may be charged to the insured, but the insurer may charge a deductible, copayment or coinsurance for any other drug or device that provides the same method of contraception.

      9.  The following 18 methods of contraception must be covered pursuant to this section:

      (a) Voluntary sterilization for women;

      (b) Surgical sterilization implants for women;

      (c) Implantable rods;

      (d) Copper-based intrauterine devices;

      (e) Progesterone-based intrauterine devices;

      (f) Injections;

      (g) Combined estrogen- and progestin-based drugs;

      (h) Progestin-based drugs;

      (i) Extended- or continuous-regimen drugs;

      (j) Estrogen- and progestin-based patches;

      (k) Vaginal contraceptive rings;

      (l) Diaphragms with spermicide;

      (m) Sponges with spermicide;

      (n) Cervical caps with spermicide;

      (o) Female condoms;

      (p) Spermicide;

      (q) Combined estrogen- and progestin-based drugs for emergency contraception or progestin-based drugs for emergency contraception; and

      (r) Ulipristal acetate for emergency contraception.

      10.  Except as otherwise provided in this section and federal law, an insurer may use medical management techniques, including, without limitation, any available clinical evidence, to determine the frequency of or treatment relating to any benefit required by this section or the type of provider of health care to use for such treatment.

 


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ê2017 Statutes of Nevada, Page 1836 (Chapter 323, SB 233)ê

 

      11.  An insurer shall not use medical management techniques to require an insured to use a method of contraception other than the method prescribed or ordered by a provider of health care.

      12.  An insurer must provide an accessible, transparent and expedited process which is not unduly burdensome by which an insured, or the authorized representative of the insured, may request an exception relating to any medical management technique used by the insurer to obtain any benefit required by this section without a higher deductible, copayment or coinsurance.

      13.  As used in this section:

      (a) “Medical management technique” means a practice which is used to control the cost or utilization of health care services or prescription drug use. The term includes, without limitation, the use of step therapy, prior authorization or categorizing drugs and devices based on cost, type or method of administration.

      (b) “Network plan” means a contract for hospital or medical service offered by an insurer under which the financing and delivery of medical care, including items and services paid for as medical care, are provided, in whole or in part, through a defined set of providers under contract with the insurer. The term does not include an arrangement for the financing of premiums.

      (c) “Provider of health care” has the meaning ascribed to it in NRS 629.031.

      (d) “Therapeutic equivalent” means a drug which:

             (1) Contains an identical amount of the same active ingredients in the same dosage and method of administration as another drug;

             (2) Is expected to have the same clinical effect when administered to a patient pursuant to a prescription or order as another drug; and

             (3) Meets any other criteria required by the Food and Drug Administration for classification as a therapeutic equivalent.

      Sec. 39.  1.  An insurer that offers or issues a contract for hospital or medical service shall include in the contract coverage for:

      (a) Counseling, support and supplies for breastfeeding, including breastfeeding equipment, counseling and education during the antenatal, perinatal and postpartum period for not more than 1 year;

      (b) Screening and counseling for interpersonal and domestic violence for women at least annually with initial intervention services consisting of education, strategies to reduce harm, supportive services or a referral for any other appropriate services;

      (c) Behavioral counseling concerning sexually transmitted diseases from a provider of health care for sexually active women who are at increased risk for such diseases;

      (d) Such prenatal screenings and tests as recommended by the American College of Obstetricians and Gynecologists or its successor organization;

      (e) Screening for blood pressure abnormalities and diabetes, including gestational diabetes, after at least 24 weeks of gestation or as ordered by a provider of health care;

      (f) Screening for cervical cancer at such intervals as are recommended by the American College of Obstetricians and Gynecologists or its successor organization;

      (g) Screening for depression;

 


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ê2017 Statutes of Nevada, Page 1837 (Chapter 323, SB 233)ê

 

      (h) Screening and counseling for the human immunodeficiency virus consisting of a risk assessment, annual education relating to prevention and at least one screening for the virus during the lifetime of the insured or as ordered by a provider of health care;

      (i) Smoking cessation programs for an insured who is 18 years of age or older consisting of not more than two cessation attempts per year and four counseling sessions per year;

      (j) All vaccinations recommended by the Advisory Committee on Immunization Practices of the Centers for Disease Control and Prevention of the United States Department of Health and Human Services or its successor organization; and

      (k) Such well-woman preventative visits as recommended by the Health Resources and Services Administration, which must include at least one such visit per year beginning at 14 years of age.

      2.  An insurer must ensure that the benefits required by subsection 1 are made available to an insured through a provider of health care who participates in the network plan of the insurer.

      3.  Except as otherwise provided in subsection 5, an insurer that offers or issues a contract for hospital or medical service shall not:

      (a) Require an insured to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition to obtain any benefit provided in the contract for hospital or medical service pursuant to subsection 1;

      (b) Refuse to issue a contract for hospital or medical service or cancel a contract for hospital or medical service solely because the person applying for or covered by the contract uses or may use any such benefit;

      (c) Offer or pay any type of material inducement or financial incentive to an insured to discourage the insured from obtaining any such benefit;

      (d) Penalize a provider of health care who provides any such benefit to an insured, including, without limitation, reducing the reimbursement of the provider of health care;

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay access to any such benefit to an insured; or

      (f) Impose any other restrictions or delays on the access of an insured to any such benefit.

      4.  A contract for hospital or medical service subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after January 1, 2018, has the legal effect of including the coverage required by subsection 1, and any provision of the contract or the renewal which is in conflict with this section is void.

      5.  Except as otherwise provided in this section and federal law, an insurer may use medical management techniques, including, without limitation, any available clinical evidence, to determine the frequency of or treatment relating to any benefit required by this section or the type of provider of health care to use for such treatment.

      6.  As used in this section:

      (a) “Medical management technique” means a practice which is used to control the cost or utilization of health care services or prescription drug use. The term includes, without limitation, the use of step therapy, prior authorization or categorizing drugs and devices based on cost, type or method of administration.

 


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ê2017 Statutes of Nevada, Page 1838 (Chapter 323, SB 233)ê

 

      (b) “Network plan” means a contract for hospital or medical service offered by an insurer under which the financing and delivery of medical care, including items and services paid for as medical care, are provided, in whole or in part, through a defined set of providers under contract with the insurer. The term does not include an arrangement for the financing of premiums.

      (c) “Provider of health care” has the meaning ascribed to it in NRS 629.031.

      Sec. 40. NRS 695B.1912 is hereby amended to read as follows:

      695B.1912  1.  [A policy of health insurance issued by a hospital or medical service corporation] An insurer that offers or issues a contract for hospital or medical service must provide coverage for benefits payable for expenses incurred for [:

      (a) An annual cytologic screening test for women 18 years of age or older;

      (b) A baseline mammogram for women between the ages of 35 and 40; and

      (c) An annual] a mammogram every 2 years, or annually if ordered by a provider of health care, for women 40 years of age or older.

      2.  [A policy of health insurance issued by a hospital or medical service corporation must not require an insured to obtain prior authorization for any service provided pursuant to subsection 1.

      3.]An insurer must ensure that the benefits required by subsection 1 are made available to an insured through a provider of health care who participates in the network plan of the insurer.

      3.  Except as otherwise provided in subsection 5, an insurer that offers or issues a contract for hospital or medical service shall not:

      (a) Require an insured to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition to obtain any benefit provided in a contract for hospital or medical service pursuant to subsection 1;

      (b) Refuse to issue a contract for hospital or medical service or cancel a contract for hospital or medical service solely because the person applying for or covered by the contract uses or may use any such benefit;

      (c) Offer or pay any type of material inducement or financial incentive to an insured to discourage the insured from obtaining any such benefit;

      (d) Penalize a provider of health care who provides any such benefit to an insured, including, without limitation, reducing the reimbursement of the provider of health care;

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay access to any such benefit to an insured; or

      (f) Impose any other restrictions or delays on the access of an insured to any such benefit.

      4.  A [policy] contract for hospital or medical service subject to the provisions of this chapter which is delivered, issued for delivery or renewed on or after [October 1, 1989,] January 1, 2018, has the legal effect of including the coverage required by subsection 1, and any provision of the [policy] contract or the renewal which is in conflict with [subsection 1] this section is void.

      5.  Except as otherwise provided in this section and federal law, an insurer may use medical management techniques, including, without limitation, any available clinical evidence, to determine the frequency of or treatment relating to any benefit required by this section or the type of provider of health care to use for such treatment.

 


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ê2017 Statutes of Nevada, Page 1839 (Chapter 323, SB 233)ê

 

limitation, any available clinical evidence, to determine the frequency of or treatment relating to any benefit required by this section or the type of provider of health care to use for such treatment.

      6.  As used in this section:

      (a) “Medical management technique” means a practice which is used to control the cost or utilization of health care services or prescription drug use. The term includes, without limitation, the use of step therapy, prior authorization or categorizing drugs and devices based on cost, type or method of administration.

      (b) “Network plan” means a contract for hospital or medical service offered by an insurer under which the financing and delivery of medical care, including items and services paid for as medical care, are provided, in whole or in part, through a defined set of providers under contract with the insurer. The term does not include an arrangement for the financing of premiums.

      (c) “Provider of health care” has the meaning ascribed to it in NRS 629.031.

      Sec. 41. NRS 695B.1916 is hereby amended to read as follows:

      695B.1916  1.  [Except as otherwise provided in subsection 5, an] An insurer that offers or issues a contract for hospital or medical service which provides coverage for prescription drugs or devices shall include in the contract coverage for [:

      (a) Any type of drug or device for contraception; and

      (b) Any] any type of hormone replacement therapy [,

Ê] which is lawfully prescribed or ordered and which has been approved by the Food and Drug Administration.

      2.  An insurer that offers or issues a contract for hospital or medical service that provides coverage for prescription drugs shall not:

      (a) Require an insured to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition for coverage for a prescription for [a contraceptive or] hormone replacement therapy ; [than is required for other prescription drugs covered by the contract;]

      (b) Refuse to issue a contract for hospital or medical service or cancel a contract for hospital or medical service solely because the person applying for or covered by the contract uses or may use in the future [any of the services listed in subsection 1;] hormone replacement therapy;

      (c) Offer or pay any type of material inducement or financial incentive to an insured to discourage the insured from accessing [any of the services listed in subsection 1;] hormone replacement therapy;

      (d) Penalize a provider of health care who provides [any of the services listed in subsection 1] hormone replacement therapy to an insured, including, without limitation, reducing the reimbursement of the provider of health care; or

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay [any of the services listed in subsection 1] hormone replacement therapy to an insured.

      3.  [Except as otherwise provided in subsection 5, a] A contract for hospital or medical service subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 1999, has the legal effect of including the coverage required by subsection 1, and any provision of the contract or the renewal which is in conflict with this section is void.

 


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ê2017 Statutes of Nevada, Page 1840 (Chapter 323, SB 233)ê

 

legal effect of including the coverage required by subsection 1, and any provision of the contract or the renewal which is in conflict with this section is void.

      4.  The provisions of this section do not [:

      (a) Require] require an insurer to provide coverage for fertility drugs.

      [(b) Prohibit an insurer from requiring an insured to pay a deductible, copayment or coinsurance for the coverage required by paragraphs (a) and (b) of subsection 1 that is the same as the insured is required to pay for other prescription drugs covered by the contract.]

      5.  [An insurer which offers or issues a contract for hospital or medical service and which is affiliated with a religious organization is not required to provide the coverage required by paragraph (a) of subsection 1 if the insurer objects on religious grounds. Such an insurer shall, before the issuance of a contract for hospital or medical service and before the renewal of such a contract, provide to the group policyholder or prospective insured, as applicable, written notice of the coverage that the insurer refuses to provide pursuant to this subsection. The insurer shall provide notice to each insured, at the time the insured receives his or her certificate of coverage or evidence of coverage, that the insurer refused to provide coverage pursuant to this subsection.

      6.  If an insurer refuses, pursuant to subsection 5, to provide the coverage required by paragraph (a) of subsection 1, an employer may otherwise provide for the coverage for the employees of the employer.

      7.] As used in this section, “provider of health care” has the meaning ascribed to it in NRS 629.031.

      Sec. 42. NRS 695B.1918 is hereby amended to read as follows:

      695B.1918  1.  [Except as otherwise provided in subsection 5, an] An insurer that offers or issues a contract for hospital or medical service which provides coverage for outpatient care shall include in the contract coverage for any health care service related to [contraceptives or] hormone replacement therapy.

      2.  An insurer that offers or issues a contract for hospital or medical service that provides coverage for outpatient care shall not:

      (a) Require an insured to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition for coverage for outpatient care related to [contraceptives or] hormone replacement therapy ; [than is required for other outpatient care covered by the contract;]

      (b) Refuse to issue a contract for hospital or medical service or cancel a contract for hospital or medical service solely because the person applying for or covered by the contract uses or may use in the future [any of the services listed in subsection 1;] hormone replacement therapy;

      (c) Offer or pay any type of material inducement or financial incentive to an insured to discourage the insured from accessing [any of the services listed in subsection 1;] hormone replacement therapy;

      (d) Penalize a provider of health care who provides [any of the services listed in subsection 1] hormone replacement therapy to an insured, including, without limitation, reducing the reimbursement of the provider of health care; or

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay [any of the services listed in subsection 1] hormone replacement therapy to an insured.

 


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ê2017 Statutes of Nevada, Page 1841 (Chapter 323, SB 233)ê

 

withhold, limit or delay [any of the services listed in subsection 1] hormone replacement therapy to an insured.

      3.  [Except as otherwise provided in subsection 5, a] A contract for hospital or medical service subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 1999, has the legal effect of including the coverage required by subsection 1, and any provision of the contract or the renewal which is in conflict with this section is void.

      4.  [The provisions of this section do not prohibit an insurer from requiring an insured to pay a deductible, copayment or coinsurance for the coverage required by subsection 1 that is the same as the insured is required to pay for other outpatient care covered by the contract.

      5.  An insurer which offers or issues a contract for hospital or medical service and which is affiliated with a religious organization is not required to provide the coverage for health care service related to contraceptives required by this section if the insurer objects on religious grounds. Such an insurer shall, before the issuance of a contract for hospital or medical service and before the renewal of such a contract, provide to the group policyholder or prospective insured, as applicable, written notice of the coverage that the insurer refuses to provide pursuant to this subsection. The insurer shall provide notice to each insured, at the time the insured receives his or her certificate of coverage or evidence of coverage, that the insurer refused to provide coverage pursuant to this subsection.

      6.  If an insurer refuses, pursuant to subsection 5, to provide the coverage required by paragraph (a) of subsection 1, an employer may otherwise provide for the coverage for the employees of the employer.

      7.]  As used in this section, “provider of health care” has the meaning ascribed to it in NRS 629.031.

      Sec. 43. NRS 695B.1925 is hereby amended to read as follows:

      695B.1925  1.  [A policy of health insurance issued by a hospital or medical service corporation] An insurer that offers or issues a contract for hospital or medical service must provide coverage for benefits payable for expenses incurred for [administering] :

      (a) Deoxyribonucleic acid testing for high-risk strains of human papillomavirus every 3 years for women 30 years of age and older; and

      (b) Administering the human papillomavirus vaccine [to women and girls] at such ages as recommended for vaccination by a competent authority, including, without limitation, the Centers for Disease Control and Prevention of the United States Department of Health and Human Services, the Food and Drug Administration or the manufacturer of the vaccine.

      2.  [A policy of health insurance issued by a hospital or medical service corporation must not require an insured to obtain prior authorization for any service provided pursuant to subsection 1.

      3.]An insurer must ensure that the benefits required by subsection 1 are made available to an insured through a provider of health care who participates in the network plan of the insurer.

      3.  Except as otherwise required by subsection 5, an insurer that offers or issues a contract for hospital or medical service shall not:

      (a) Require an insured to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition to obtain any benefit provided in the contract for hospital or medical service pursuant to subsection 1;

 


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ê2017 Statutes of Nevada, Page 1842 (Chapter 323, SB 233)ê

 

      (b) Refuse to issue a contract for hospital or medical service or cancel a contract for hospital or medical service solely because the person applying for or covered by the contract uses or may use any such benefit;

      (c) Offer or pay any type of material inducement or financial incentive to an insured to discourage the insured from obtaining any such benefit;

      (d) Penalize a provider of health care who provides any such benefit to an insured, including, without limitation, reducing the reimbursement of the provider of health care;

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay access to any such benefit to an insured; or

      (f) Impose any other restrictions or delays on the access of an insured to any such benefit.

      4.  A [policy] contract for hospital or medical service subject to the provisions of this chapter which is delivered, issued for delivery or renewed on or after [July 1, 2007,] January 1, 2018, has the legal effect of including the coverage required by subsection 1, and any provision of the [policy] contract or the renewal which is in conflict with [subsection 1] this section is void.

      [4.  For the purposes of]

      5.  Except as otherwise provided in this section and federal law, an insurer may use medical management techniques, including, without limitation, any available clinical evidence, to determine the frequency of or treatment relating to any benefit required by this section or the type of provider of health care to use for such treatment.

      6.  As used in this section [, “human] :

      (a) “Human papillomavirus vaccine” means the Quadrivalent Human Papillomavirus Recombinant Vaccine or its successor which is approved by the Food and Drug Administration for the prevention of human papillomavirus infection and cervical cancer.

      (b) “Medical management technique” means a practice which is used to control the cost or utilization of health care services or prescription drug use. The term includes, without limitation, the use of step therapy, prior authorization or categorizing drugs and devices based on cost, type or method of administration.

      (c) “Network plan” means a contract for hospital or medical service offered by an insurer under which the financing and delivery of medical care, including items and services paid for as medical care, are provided, in whole or in part, through a defined set of providers under contract with the insurer. The term does not include an arrangement for the financing of premiums.

      (d) “Provider of health care” has the meaning ascribed to it in NRS 629.031.

      Sec. 44. Chapter 695C of NRS is hereby amended by adding thereto the provisions set forth as sections 45 and 46 of this act.

      Sec. 45. 1.  Except as otherwise provided in subsection 5, a health maintenance organization that offers or issues a health care plan shall include in the plan coverage for:

      (a) Up to a 12-month supply, per prescription, of any type of drug for contraception or its therapeutic equivalent which is:

             (1) Lawfully prescribed or ordered;

             (2) Approved by the Food and Drug Administration;

 


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ê2017 Statutes of Nevada, Page 1843 (Chapter 323, SB 233)ê

 

             (3) Listed in subsection 9; and

             (4) Dispensed in accordance with section 8.5 of this act;

      (b) Any type of device for contraception which is:

             (1) Lawfully prescribed or ordered;

             (2) Approved by the Food and Drug Administration; and

             (3) Listed in subsection 9;

      (c) Insertion of a device for contraception or removal of such a device if the device was inserted while the enrollee was covered by the same health care plan;

      (d) Education and counseling relating to the initiation of the use of contraception and any necessary follow-up after initiating such use; and

      (e) Voluntary sterilization for women.

      2.  A health maintenance organization must ensure that the benefits required by subsection 1 are made available to an enrollee through a provider of health care who participates in the network plan of the health maintenance organization.

      3.  Except as otherwise provided in subsections 7, 8 and 10, a health maintenance organization that offers or issues a health care plan shall not:

      (a) Require an enrollee to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition to obtain any benefit provided in the health care plan pursuant to subsection 1;

      (b) Refuse to issue a health care plan or cancel a health care plan solely because the person applying for or covered by the plan uses or may use any such benefit;

      (c) Offer or pay any type of material inducement or financial incentive to an enrollee to discourage the enrollee from obtaining any such benefit;

      (d) Penalize a provider of health care who provides any such benefit to an enrollee, including, without limitation, reducing the reimbursement of the provider of health care;

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay access to any such benefit to an enrollee; or

      (f) Impose any other restrictions or delays on the access of an enrollee to any such benefit.

      4.  Except as otherwise provided in subsection 5, a health care plan subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after January 1, 2018, has the legal effect of including the coverage required by subsection 1, and any provision of the plan or the renewal which is in conflict with this section is void.

      5.  A health maintenance organization that offers or issues a health care plan and which is affiliated with a religious organization is not required to provide the coverage required by subsection 1 if the health maintenance organization objects on religious grounds. Such an organization shall, before the issuance of a health care plan and before the renewal of such a plan, provide to the prospective insured written notice of the coverage that the health maintenance organization refuses to provide pursuant to this subsection.

      6.  If a health maintenance organization refuses, pursuant to subsection 5, to provide the coverage required by subsection 1, an employer may otherwise provide for the coverage for the employees of the employer.

      7.  A health maintenance organization may require an enrollee to pay a higher deductible, copayment or coinsurance for a drug for contraception if the enrollee refuses to accept a therapeutic equivalent of the drug.

 


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ê2017 Statutes of Nevada, Page 1844 (Chapter 323, SB 233)ê

 

      8.  For each of the 18 methods of contraception listed in subsection 9 that has been approved by the Food and Drug Administration, a health care plan must include at least one drug or device for contraception for which no deductible, copayment or coinsurance may be charged to the enrollee, but the health maintenance organization may charge a deductible, copayment or coinsurance for any other drug or device that provides the same method of contraception.

      9.  The following 18 methods of contraception must be covered pursuant to this section:

      (a) Voluntary sterilization for women;

      (b) Surgical sterilization implants for women;

      (c) Implantable rods;

      (d) Copper-based intrauterine devices;

      (e) Progesterone-based intrauterine devices;

      (f) Injections;

      (g) Combined estrogen- and progestin-based drugs;

      (h) Progestin-based drugs;

      (i) Extended- or continuous-regimen drugs;

      (j) Estrogen- and progestin-based patches;

      (k) Vaginal contraceptive rings;

      (l) Diaphragms with spermicide;

      (m) Sponges with spermicide;

      (n) Cervical caps with spermicide;

      (o) Female condoms;

      (p) Spermicide;

      (q) Combined estrogen- and progestin-based drugs for emergency contraception or progestin-based drugs for emergency contraception; and

      (r) Ulipristal acetate for emergency contraception.

      10.  Except as otherwise provided in this section and federal law, a health maintenance organization may use medical management techniques, including, without limitation, any available clinical evidence, to determine the frequency of or treatment relating to any benefit required by this section or the type of provider of health care to use for such treatment.

      11.  A health maintenance organization shall not use medical management techniques to require an enrollee to use a method of contraception other than the method prescribed or ordered by a provider of health care.

      12.  A health maintenance organization must provide an accessible, transparent and expedited process which is not unduly burdensome by which an enrollee, or the authorized representative of the enrollee, may request an exception relating to any medical management technique used by the health maintenance organization to obtain any benefit required by this section without a higher deductible, copayment or coinsurance.

      13.  As used in this section:

      (a) “Medical management technique” means a practice which is used to control the cost or utilization of health care services or prescription drug use. The term includes, without limitation, the use of step therapy, prior authorization or categorizing drugs and devices based on cost, type or method of administration.

      (b) “Network plan” means a health care plan offered by a health maintenance organization under which the financing and delivery of medical care, including items and services paid for as medical care, are provided, in whole or in part, through a defined set of providers under contract with the health maintenance organization.

 


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medical care, including items and services paid for as medical care, are provided, in whole or in part, through a defined set of providers under contract with the health maintenance organization. The term does not include an arrangement for the financing of premiums.

      (c) “Provider of health care” has the meaning ascribed to it in NRS 629.031.

      (d) “Therapeutic equivalent” means a drug which:

             (1) Contains an identical amount of the same active ingredients in the same dosage and method of administration as another drug;

             (2) Is expected to have the same clinical effect when administered to a patient pursuant to a prescription or order as another drug; and

             (3) Meets any other criteria required by the Food and Drug Administration for classification as a therapeutic equivalent.

      Sec. 46. 1.  A health maintenance organization that offers or issues a health care plan shall include in the plan coverage for:

      (a) Counseling, support and supplies for breastfeeding, including breastfeeding equipment, counseling and education during the antenatal, perinatal and postpartum period for not more than 1 year;

      (b) Screening and counseling for interpersonal and domestic violence for women at least annually with initial intervention services consisting of education, strategies to reduce harm, supportive services or a referral for any other appropriate services;

      (c) Behavioral counseling concerning sexually transmitted diseases from a provider of health care for sexually active women who are at increased risk for such diseases;

      (d) Such prenatal screenings and tests as recommended by the American College of Obstetricians and Gynecologists or its successor organization;

      (e) Screening for blood pressure abnormalities and diabetes, including gestational diabetes, after at least 24 weeks of gestation or as ordered by a provider of health care;

      (f) Screening for cervical cancer at such intervals as are recommended by the American College of Obstetricians and Gynecologists or its successor organization;

      (g) Screening for depression;

      (h) Screening and counseling for the human immunodeficiency virus consisting of a risk assessment, annual education relating to prevention and at least one screening for the virus during the lifetime of the enrollee or as ordered by a provider of health care;

      (i) Smoking cessation programs for an enrollee who is 18 years of age or older not more than two cessation attempts per year and four counseling sessions per year;

      (j) All vaccinations recommended by the Advisory Committee on Immunization Practices of the Centers for Disease Control and Prevention of the United States Department of Health and Human Services or its successor organization; and

      (k) Such well-woman preventative visits as recommended by the Health Resources and Services Administration, which must include at least one such visit per year beginning at 14 years of age.

      2.  A health maintenance organization must ensure that the benefits required by subsection 1 are made available to an enrollee through a provider of health care who participates in the network plan of the health maintenance organization.

 


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      3.  Except as otherwise provided in subsection 5, a health maintenance organization that offers or issues a health care plan shall not:

      (a) Require an enrollee to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition to obtain any benefit provided in the health care plan pursuant to subsection 1;

      (b) Refuse to issue a health care plan or cancel a health care plan solely because the person applying for or covered by the plan uses or may use any such benefit;

      (c) Offer or pay any type of material inducement or financial incentive to an enrollee to discourage the enrollee from obtaining any such benefit;

      (d) Penalize a provider of health care who provides any such benefit to an enrollee, including, without limitation, reducing the reimbursement of the provider of health care;

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay access to any such benefit to an enrollee; or

      (f) Impose any other restrictions or delays on the access of an enrollee to any such benefit.

      4.  A health care plan subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after January 1, 2018, has the legal effect of including the coverage required by subsection 1, and any provision of the plan or the renewal which is in conflict with this section is void.

      5.  Except as otherwise provided in this section and federal law, a health maintenance organization may use medical management techniques, including, without limitation, any available clinical evidence, to determine the frequency of or treatment relating to any benefit required by this section or the type of provider of health care to use for such treatment.

      6.  As used in this section:

      (a) “Medical management technique” means a practice which is used to control the cost or utilization of health care services or prescription drug use. The term includes, without limitation, the use of step therapy, prior authorization or categorizing drugs and devices based on cost, type or method of administration.

      (b) “Network plan” means a health care plan offered by a health maintenance organization under which the financing and delivery of medical care, including items and services paid for as medical care, are provided, in whole or in part, through a defined set of providers under contract with the health maintenance organization. The term does not include an arrangement for the financing of premiums.

      (c) “Provider of health care” has the meaning ascribed to it in NRS 629.031.

      Sec. 47. NRS 695C.050 is hereby amended to read as follows:

      695C.050  1.  Except as otherwise provided in this chapter or in specific provisions of this title, the provisions of this title are not applicable to any health maintenance organization granted a certificate of authority under this chapter. This provision does not apply to an insurer licensed and regulated pursuant to this title except with respect to its activities as a health maintenance organization authorized and regulated pursuant to this chapter.

 


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      2.  Solicitation of enrollees by a health maintenance organization granted a certificate of authority, or its representatives, must not be construed to violate any provision of law relating to solicitation or advertising by practitioners of a healing art.

      3.  Any health maintenance organization authorized under this chapter shall not be deemed to be practicing medicine and is exempt from the provisions of chapter 630 of NRS.

      4.  The provisions of NRS 695C.110, 695C.125, 695C.1691, 695C.1693, 695C.170, 695C.1703, 695C.1705, 695C.1709 to 695C.173, inclusive, 695C.1733, 695C.17335, 695C.1734, [695C.1735 to] 695C.1751, 695C.1755, [inclusive,] 695C.176 to 695C.200, inclusive, and 695C.265 do not apply to a health maintenance organization that provides health care services through managed care to recipients of Medicaid under the State Plan for Medicaid or insurance pursuant to the Children’s Health Insurance Program pursuant to a contract with the Division of Health Care Financing and Policy of the Department of Health and Human Services. This subsection does not exempt a health maintenance organization from any provision of this chapter for services provided pursuant to any other contract.

      5.  The provisions of NRS 695C.1694, 695C.1695, 695C.1708, 695C.1731, 695C.17345 [and] , 695C.1735, 695C.1745 and 695C.1757 and sections 45 and 46 of this act apply to a health maintenance organization that provides health care services through managed care to recipients of Medicaid under the State Plan for Medicaid.

      Sec. 48. NRS 695C.1694 is hereby amended to read as follows:

      695C.1694  1.  [Except as otherwise provided in subsection 5, a] A health maintenance organization which offers or issues a health care plan that provides coverage for prescription drugs or devices shall include in the plan coverage for [:

      (a) Any type of drug or device for contraception; and

      (b) Any] any type of hormone replacement therapy [,

Ê] which is lawfully prescribed or ordered and which has been approved by the Food and Drug Administration.

      2.  A health maintenance organization that offers or issues a health care plan that provides coverage for prescription drugs shall not:

      (a) Require an enrollee to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition for coverage for [a prescription for a contraceptive or] hormone replacement therapy ; [than is required for other prescription drugs covered by the plan;]

      (b) Refuse to issue a health care plan or cancel a health care plan solely because the person applying for or covered by the plan uses or may use in the future [any of the services listed in subsection 1;] hormone replacement therapy;

      (c) Offer or pay any type of material inducement or financial incentive to an enrollee to discourage the enrollee from accessing [any of the services listed in subsection 1;] hormone replacement therapy;

      (d) Penalize a provider of health care who provides [any of the services listed in subsection 1] hormone replacement therapy to an enrollee, including, without limitation, reducing the reimbursement of the provider of health care; or

 

 


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      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay [any of the services listed in subsection 1] hormone replacement therapy to an enrollee.

      3.  [Except as otherwise provided in subsection 5, evidence] Evidence of coverage subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 1999, has the legal effect of including the coverage required by subsection 1, and any provision of the evidence of coverage or the renewal which is in conflict with this section is void.

      4.  The provisions of this section do not [:

      (a) Require] require a health maintenance organization to provide coverage for fertility drugs.

      [(b) Prohibit a health maintenance organization from requiring an enrollee to pay a deductible, copayment or coinsurance for the coverage required by paragraphs (a) and (b) of subsection 1 that is the same as the enrollee is required to pay for other prescription drugs covered by the plan.]

      5.  [A health maintenance organization which offers or issues a health care plan and which is affiliated with a religious organization is not required to provide the coverage required by paragraph (a) of subsection 1 if the health maintenance organization objects on religious grounds. The health maintenance organization shall, before the issuance of a health care plan and before renewal of enrollment in such a plan, provide to the group policyholder or prospective enrollee, as applicable, written notice of the coverage that the health maintenance organization refuses to provide pursuant to this subsection. The health maintenance organization shall provide notice to each enrollee, at the time the enrollee receives his or her evidence of coverage, that the health maintenance organization refused to provide coverage pursuant to this subsection.

      6.  If a health maintenance organization refuses, pursuant to subsection 5, to provide the coverage required by paragraph (a) of subsection 1, an employer may otherwise provide for the coverage for the employees of the employer.

      7.]  As used in this section, “provider of health care” has the meaning ascribed to it in NRS 629.031.

      Sec. 49. NRS 695C.1695 is hereby amended to read as follows:

      695C.1695  1.  [Except as otherwise provided in subsection 5, a] A health maintenance organization that offers or issues a health care plan which provides coverage for outpatient care shall include in the plan coverage for any health care service related to [contraceptives or] hormone replacement therapy.

      2.  A health maintenance organization that offers or issues a health care plan that provides coverage for outpatient care shall not:

      (a) Require an enrollee to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition for coverage for outpatient care related to [contraceptives or] hormone replacement therapy ; [than is required for other outpatient care covered by the plan;]

      (b) Refuse to issue a health care plan or cancel a health care plan solely because the person applying for or covered by the plan uses or may use in the future [any of the services listed in subsection 1;] hormone replacement therapy;

 


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      (c) Offer or pay any type of material inducement or financial incentive to an enrollee to discourage the enrollee from accessing [any of the services listed in subsection 1;] hormone replacement therapy;

      (d) Penalize a provider of health care who provides [any of the services listed in subsection 1] hormone replacement therapy to an enrollee, including, without limitation, reducing the reimbursement of the provider of health care; or

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay [any of the services listed in subsection 1] hormone replacement therapy to an enrollee.

      3.  [Except as otherwise provided in subsection 5, evidence] Evidence of coverage subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 1999, has the legal effect of including the coverage required by subsection 1, and any provision of the evidence of coverage or the renewal which is in conflict with this section is void.

      4.  [The provisions of this section do not prohibit a health maintenance organization from requiring an enrollee to pay a deductible, copayment or coinsurance for the coverage required by subsection 1 that is the same as the enrollee is required to pay for other outpatient care covered by the plan.

      5.  A health maintenance organization which offers or issues a health care plan and which is affiliated with a religious organization is not required to provide the coverage for health care service related to contraceptives required by this section if the health maintenance organization objects on religious grounds. The health maintenance organization shall, before the issuance of a health care plan and before renewal of enrollment in such a plan, provide to the group policyholder or prospective enrollee, as applicable, written notice of the coverage that the health maintenance organization refuses to provide pursuant to this subsection. The health maintenance organization shall provide notice to each enrollee, at the time the enrollee receives his or her evidence of coverage, that the health maintenance organization refused to provide coverage pursuant to this subsection.

      6.  If a health maintenance organization refuses, pursuant to subsection 5, to provide the coverage required by paragraph (a) of subsection 1, an employer may otherwise provide for the coverage for the employees of the employer.

      7.]  As used in this section, “provider of health care” has the meaning ascribed to it in NRS 629.031.

      Sec. 50.  NRS 695C.1735 is hereby amended to read as follows:

      695C.1735  1.  A health [maintenance] care plan of a health maintenance organization must provide coverage for benefits payable for expenses incurred for [:

      (a) An annual cytologic screening test for women 18 years of age or older;

      (b) A baseline mammogram for women between the ages of 35 and 40; and

      (c) An annual] a mammogram every 2 years, or annually if ordered by a provider of health care, for women 40 years of age or older.

      2.  [A health maintenance plan must not require an insured to obtain prior authorization for any service provided pursuant to subsection 1.

 


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      3.]A health maintenance organization must ensure that the benefits required by subsection 1 are made available to an enrollee through a provider of health care who participates in the network plan of the health maintenance organization.

      3.  Except as otherwise provided in subsection 5, a health maintenance organization that offers or issues a health care plan shall not:

      (a) Require an enrollee to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition to obtain any benefit provided in the health care plan pursuant to subsection 1;

      (b) Refuse to issue a health care plan or cancel a health care plan solely because the person applying for or covered by the plan uses or may use any such benefit;

      (c) Offer or pay any type of material inducement or financial incentive to an enrollee to discourage the enrollee from obtaining any benefit provided in the health care plan pursuant to subsection 1;

      (d) Penalize a provider of health care who provides any such benefit to an enrollee, including, without limitation, reducing the reimbursement of the provider of health care;

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay access to any such benefit to an enrollee; or

      (f) Impose any other restrictions or delays on the access of an enrollee to any such benefit.

      4.  A [policy] health care plan subject to the provisions of this chapter which is delivered, issued for delivery or renewed on or after [October 1, 1989,] January 1, 2018, has the legal effect of including the coverage required by subsection 1, and any provision of the [policy] plan or the renewal which is in conflict with [subsection 1] this section is void.

      5.  Except as otherwise provided in this section and federal law, a health maintenance organization may use medical management techniques, including, without limitation, any available clinical evidence, to determine the frequency of or treatment relating to any benefit required by this section or the type of provider of health care to use for such treatment.

      6.  As used in this section:

      (a) “Medical management technique” means a practice which is used to control the cost or utilization of health care services or prescription drug use. The term includes, without limitation, the use of step therapy, prior authorization or categorizing drugs and devices based on cost, type or method of administration.

      (b) “Network plan” means a health care plan offered by a health maintenance organization under which the financing and delivery of medical care, including items and services paid for as medical care, are provided, in whole or in part, through a defined set of providers under contract with the health maintenance organization. The term does not include an arrangement for the financing of premiums.

      (c) “Provider of health care” has the meaning ascribed to it in NRS 629.031.

      Sec. 51. NRS 695C.1745 is hereby amended to read as follows:

      695C.1745  1.  A health care plan of a health maintenance organization must provide coverage for benefits payable for expenses incurred for [administering] :

 


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      (a) Deoxyribonucleic acid testing for high-risk strains of human papillomavirus every 3 years for women 30 years of age and older; and

      (b) Administering the human papillomavirus vaccine as recommended for vaccination by a competent authority, including, without limitation, the Centers for Disease Control and Prevention of the United States Department of Health and Human Services, the Food and Drug Administration or the manufacturer of the vaccine.

      2.  [A health care plan of a health maintenance organization must not require an insured to obtain prior authorization for any service provided pursuant to subsection 1.

      3.]A health maintenance organization must ensure that the benefits required by subsection 1 are made available to an enrollee through a provider of health care who participates in the network plan of the health maintenance organization.

      3.  Except as otherwise provided in subsection 5, a health maintenance organization that offers or issues a health care plan shall not:

      (a) Require an enrollee to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition to obtain any benefit provided in the health care plan pursuant to subsection 1;

      (b) Refuse to issue a health care plan or cancel a health care plan solely because the person applying for or covered by the plan uses or may use any such benefit;

      (c) Offer or pay any type of material inducement or financial incentive to an enrollee to discourage the enrollee from obtaining any such benefit;

      (d) Penalize a provider of health care who provides any such benefit to an enrollee, including, without limitation, reducing the reimbursement of the provider of health care;

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay access to any such benefit to an enrollee; or

      (f) Impose any other restrictions or delays on the access of an enrollee to any such benefit.

      4.  Any evidence of coverage subject to the provisions of this chapter which is delivered, issued for delivery or renewed on or after [July 1, 2007,] January 1, 2018, has the legal effect of including the coverage required by subsection 1, and any provision of the evidence of coverage or the renewal which is in conflict with [subsection 1] this section is void.

      [4.  For the purposes of]

      5.  Except as otherwise provided in this section and federal law, a health maintenance organization may use medical management techniques, including, without limitation, any available clinical evidence, to determine the frequency of or treatment relating to any benefit required by this section or the type of provider of health care to use for such treatment.

      6.  As used in this section [, “human] :

      (a) “Human papillomavirus vaccine” means the Quadrivalent Human Papillomavirus Recombinant Vaccine or its successor which is approved by the Food and Drug Administration for the prevention of human papillomavirus infection and cervical cancer.

      (b) “Medical management technique” means a practice which is used to control the cost or utilization of health care services or prescription drug use.

 


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use. The term includes, without limitation, the use of step therapy, prior authorization or categorizing drugs and devices based on cost, type or method of administration.

      (c) “Network plan” means a health care plan offered by a health maintenance organization under which the financing and delivery of medical care, including items and services paid for as medical care, are provided, in whole or in part, through a defined set of providers under contract with the health maintenance organization. The term does not include an arrangement for the financing of premiums.

      (d) “Provider of health care” has the meaning ascribed to it in NRS 629.031.

      Sec. 52. NRS 695C.330 is hereby amended to read as follows:

      695C.330  1.  The Commissioner may suspend or revoke any certificate of authority issued to a health maintenance organization pursuant to the provisions of this chapter if the Commissioner finds that any of the following conditions exist:

      (a) The health maintenance organization is operating significantly in contravention of its basic organizational document, its health care plan or in a manner contrary to that described in and reasonably inferred from any other information submitted pursuant to NRS 695C.060, 695C.070 and 695C.140, unless any amendments to those submissions have been filed with and approved by the Commissioner;

      (b) The health maintenance organization issues evidence of coverage or uses a schedule of charges for health care services which do not comply with the requirements of NRS 695C.1691 to 695C.200, inclusive, and sections 45 and 46 of this act or 695C.207;

      (c) The health care plan does not furnish comprehensive health care services as provided for in NRS 695C.060;

      (d) The Commissioner certifies that the health maintenance organization:

             (1) Does not meet the requirements of subsection 1 of NRS 695C.080; or

             (2) Is unable to fulfill its obligations to furnish health care services as required under its health care plan;

      (e) The health maintenance organization is no longer financially responsible and may reasonably be expected to be unable to meet its obligations to enrollees or prospective enrollees;

      (f) The health maintenance organization has failed to put into effect a mechanism affording the enrollees an opportunity to participate in matters relating to the content of programs pursuant to NRS 695C.110;

      (g) The health maintenance organization has failed to put into effect the system required by NRS 695C.260 for:

             (1) Resolving complaints in a manner reasonably to dispose of valid complaints; and

             (2) Conducting external reviews of adverse determinations that comply with the provisions of NRS 695G.241 to 695G.310, inclusive;

      (h) The health maintenance organization or any person on its behalf has advertised or merchandised its services in an untrue, misrepresentative, misleading, deceptive or unfair manner;

      (i) The continued operation of the health maintenance organization would be hazardous to its enrollees;

      (j) The health maintenance organization fails to provide the coverage required by NRS 695C.1691; or

 


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      (k) The health maintenance organization has otherwise failed to comply substantially with the provisions of this chapter.

      2.  A certificate of authority must be suspended or revoked only after compliance with the requirements of NRS 695C.340.

      3.  If the certificate of authority of a health maintenance organization is suspended, the health maintenance organization shall not, during the period of that suspension, enroll any additional groups or new individual contracts, unless those groups or persons were contracted for before the date of suspension.

      4.  If the certificate of authority of a health maintenance organization is revoked, the organization shall proceed, immediately following the effective date of the order of revocation, to wind up its affairs and shall conduct no further business except as may be essential to the orderly conclusion of the affairs of the organization. It shall engage in no further advertising or solicitation of any kind. The Commissioner may, by written order, permit such further operation of the organization as the Commissioner may find to be in the best interest of enrollees to the end that enrollees are afforded the greatest practical opportunity to obtain continuing coverage for health care.

      Sec. 53. Chapter 695G of NRS is hereby amended by adding thereto the provisions set forth as sections 54, 55 and 56 of this act.

      Sec. 54. 1.  Except as otherwise provided in subsection 5, a managed care organization that offers or issues a health care plan shall include in the plan coverage for:

      (a) Up to a 12-month supply, per prescription, of any type of drug for contraception or its therapeutic equivalent which is:

             (1) Lawfully prescribed or ordered;

             (2) Approved by the Food and Drug Administration;

             (3) Listed in subsection 8; and

             (4) Dispensed in accordance with section 8.5 of this act;

      (b) Any type of device for contraception which is:

             (1) Lawfully prescribed or ordered;

             (2) Approved by the Food and Drug Administration; and

             (3) Listed in subsection 8;

      (c) Insertion of a device for contraception or removal of such a device if the device was inserted while the insured was covered by the same health care plan;

      (d) Education and counseling relating to the initiation of the use of contraception and any necessary follow-up after initiating such use;

      (e) Voluntary sterilization for women; and

      (f) Hormone replacement therapy.

      2.  A managed care organization must ensure that the benefits required by subsection 1 are made available to an insured through a provider of health care who participates in the network plan of the managed care organization.

      3.  Except as otherwise provided in subsections 6, 7 and 9, a managed care organization that offers or issues a health care plan which provides coverage for prescription drugs shall not:

      (a) Require an insured to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition to obtain any benefit provided in the health care plan pursuant to subsection 1;

 


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      (b) Refuse to issue a health care plan or cancel a health care plan solely because the person applying for or covered by the plan uses or may use any such benefit;

      (c) Offer or pay any type of material inducement or financial incentive to an insured to discourage the insured from obtaining any such benefit;

      (d) Penalize a provider of health care who provides any such benefit to an insured, including, without limitation, reducing the reimbursement of the provider of health care;

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay access to any such benefit to an insured; or

      (f) Impose any other restrictions or delays on the access of an insured to any such benefit.

      4.  Except as otherwise provided in subsection 5, a health care plan subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after January 1, 2018, has the legal effect of including the coverage required by subsection 1, and any provision of the plan or the renewal which is in conflict with this section is void.

      5.  A managed care organization that offers or issues a health care plan and which is affiliated with a religious organization is not required to provide the coverage required by subsection 1 if the managed care organization objects on religious grounds. Such an organization shall, before the issuance of a health care plan and before the renewal of such a plan, provide to the prospective insured written notice of the coverage that the managed care organization refuses to provide pursuant to this subsection.

      6.  A managed care organization may require an insured to pay a higher deductible, copayment or coinsurance for a drug for contraception if the insured refuses to accept a therapeutic equivalent of the drug.

      7.  For each of the 18 methods of contraception listed in subsection 8 that has been approved by the Food and Drug Administration, a health care plan must include at least one drug or device for contraception for which no deductible, copayment or coinsurance may be charged to the insured, but the managed care organization may charge a deductible, copayment or coinsurance for any other drug or device that provides the same method of contraception.

      8.  The following 18 methods of contraception must be covered pursuant to this section:

      (a) Voluntary sterilization for women;

      (b) Surgical sterilization implants for women;

      (c) Implantable rods;

      (d) Copper-based intrauterine devices;

      (e) Progesterone-based intrauterine devices;

      (f) Injections;

      (g) Combined estrogen- and progestin-based drugs;

      (h) Progestin-based drugs;

      (i) Extended- or continuous-regimen drugs;

      (j) Estrogen- and progestin-based patches;

      (k) Vaginal contraceptive rings;

      (l) Diaphragms with spermicide;

      (m) Sponges with spermicide;

      (n) Cervical caps with spermicide;

 


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      (o) Female condoms;

      (p) Spermicide;

      (q) Combined estrogen- and progestin-based drugs for emergency contraception or progestin-based drugs for emergency contraception; and

      (r) Ulipristal acetate for emergency contraception.

      9.  Except as otherwise provided in this section and federal law, a managed care organization may use medical management techniques, including, without limitation, any available clinical evidence, to determine the frequency of or treatment relating to any benefit required by this section or the type of provider of health care to use for such treatment.

      10.  A managed care organization shall not use medical management techniques to require an insured to use a method of contraception other than the method prescribed or ordered by a provider of health care.

      11.  A managed care organization must provide an accessible, transparent and expedited process which is not unduly burdensome by which an insured, or the authorized representative of the insured, may request an exception relating to any medical management technique used by the managed care organization to obtain any benefit required by this section without a higher deductible, copayment or coinsurance.

      12.  As used in this section:

      (a) “Medical management technique” means a practice which is used to control the cost or utilization of health care services or prescription drug use. The term includes, without limitation, the use of step therapy, prior authorization or categorizing drugs and devices based on cost, type or method of administration.

      (b) “Network plan” means a health care plan offered by a managed care organization under which the financing and delivery of medical care, including items and services paid for as medical care, are provided, in whole or in part, through a defined set of providers under contract with the managed care organization. The term does not include an arrangement for the financing of premiums.

      (c) “Provider of health care” has the meaning ascribed to it in NRS 629.031.

      (d) “Therapeutic equivalent” means a drug which:

             (1) Contains an identical amount of the same active ingredients in the same dosage and method of administration as another drug;

             (2) Is expected to have the same clinical effect when administered to a patient pursuant to a prescription or order as another drug;

            (3) Meets any other criteria required by the Food and Drug Administration for classification as a therapeutic equivalent.

      Sec. 55. 1.  A managed care organization that offers or issues a health care plan shall include in the plan coverage for:

      (a) Counseling, support and supplies for breastfeeding, including breastfeeding equipment, counseling and education during the antenatal, perinatal and postpartum period for not more than 1 year;

      (b) Screening and counseling for interpersonal and domestic violence for women at least annually with initial intervention services consisting of education, strategies to reduce harm, supportive services or a referral for any other appropriate services;

      (c) Behavioral counseling concerning sexually transmitted diseases from a provider of health care for sexually active women who are at increased risk for such diseases;

 


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ê2017 Statutes of Nevada, Page 1856 (Chapter 323, SB 233)ê

 

      (d) Hormone replacement therapy;

      (e) Such prenatal screenings and tests as recommended by the American College of Obstetricians and Gynecologists or its successor organization;

      (f) Screening for blood pressure abnormalities and diabetes, including gestational diabetes, after at least 24 weeks of gestation or as ordered by a provider of health care;

      (g) Screening for cervical cancer at such intervals as are recommended by the American College of Obstetricians and Gynecologists or its successor organization;

      (h) Screening for depression;

      (i) Screening and counseling for the human immunodeficiency virus consisting of a risk assessment, annual education relating to prevention and at least one screening for the virus during the lifetime of the insured or as ordered by a provider of health care;

      (j) Smoking cessation programs for an insured who is 18 years of age or older consisting of not more than two cessation attempts per year and four counseling sessions per year;

      (k) All vaccinations recommended by the Advisory Committee on Immunization Practices of the Centers for Disease Control and Prevention of the United States Department of Health and Human Services or its successor organization; and

      (l) Such well-woman preventative visits as recommended by the Health Resources and Services Administration, which must include at least one such visit per year beginning at 14 years of age.

      2.  A managed care organization must ensure that the benefits required by subsection 1 are made available to an insured through a provider of health care who participates in the network plan of the managed care organization.

      3.  Except as otherwise provided in subsection 5, a managed care organization that offers or issues a health care plan shall not:

      (a) Require an insured to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition to obtain any benefit provided in the health care plan pursuant to subsection 1;

      (b) Refuse to issue a health care plan or cancel a health care plan solely because the person applying for or covered by the plan uses or may use any such benefit;

      (c) Offer or pay any type of material inducement or financial incentive to an insured to discourage the insured from obtaining any such benefit;

      (d) Penalize a provider of health care who provides any such benefit to an insured, including, without limitation, reducing the reimbursement of the provider of health care;

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay access to any such benefit to an insured; or

      (f) Impose any other restrictions or delays on the access of an insured to any such benefit.

      4.  A health care plan subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after January 1, 2018, has the legal effect of including the coverage required by subsection 1, and any provision of the plan or the renewal which is in conflict with this section is void.

 


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ê2017 Statutes of Nevada, Page 1857 (Chapter 323, SB 233)ê

 

      5.  Except as otherwise provided in this section and federal law, a managed care organization may use medical management techniques, including, without limitation, any available clinical evidence, to determine the frequency of or treatment relating to any benefit required by this section or the type of provider of health care to use for such treatment.

      6.  As used in this section:

      (a) “Medical management technique” means a practice which is used to control the cost or utilization of health care services or prescription drug use. The term includes, without limitation, the use of step therapy, prior authorization or categorizing drugs and devices based on cost, type or method of administration.

      (b) “Network plan” means a health care plan offered by a managed care organization under which the financing and delivery of medical care, including items and services paid for as medical care, are provided, in whole or in part, through a defined set of providers under contract with the managed care organization. The term does not include an arrangement for the financing of premiums.

      (c) “Provider of health care” has the meaning ascribed to it in NRS 629.031.

      Sec. 56. 1.  A health care plan issued by a managed care organization must provide coverage for benefits payable for expenses incurred for a mammogram every 2 years, or annually if ordered by a provider of health care, for women 40 years of age or older.

      2.  A managed care organization must ensure that the benefits required by subsection 1 are made available to an insured through a provider of health care who participates in the network plan of the managed care organization.

      3.  Except as otherwise provided in subsection 5, a managed care organization that offers or issues a health care plan which provides coverage for prescription drugs shall not:

      (a) Require an insured to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition to obtain any benefit provided in the health care plan pursuant to subsection 1;

      (b) Refuse to issue a health care plan or cancel a health care plan solely because the person applying for or covered by the plan uses or may use any such benefit;

      (c) Offer or pay any type of material inducement or financial incentive to an insured to discourage the insured from obtaining any such benefit;

      (d) Penalize a provider of health care who provides any such benefit to an insured, including, without limitation, reducing the reimbursement of the provider of health care;

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay access to any such benefit to an insured; or

      (f) Impose any other restrictions or delays on the access of an insured to any such benefit.

      4.  A health care plan subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after January 1, 2018, has the legal effect of including the coverage required by subsection 1, and any provision of the plan or the renewal which is in conflict with this section is void.

 


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ê2017 Statutes of Nevada, Page 1858 (Chapter 323, SB 233)ê

 

      5.  Except as otherwise provided in this section and federal law, a managed care organization may use medical management techniques, including, without limitation, any available clinical evidence, to determine the frequency of or treatment relating to any benefit required by this section or the type of provider of health care to use for such treatment.

      6.  As used in this section:

      (a) “Medical management technique” means a practice which is used to control the cost or utilization of health care services or prescription drug use. The term includes, without limitation, the use of step therapy, prior authorization or categorizing drugs and devices based on cost, type or method of administration.

      (b) “Network plan” means a health care plan offered by a managed care organization under which the financing and delivery of medical care, including items and services paid for as medical care, are provided, in whole or in part, through a defined set of providers under contract with the managed care organization. The term does not include an arrangement for the financing of premiums.

      (c) “Provider of health care” has the meaning ascribed to it in NRS 629.031.

      Sec. 57. NRS 695G.171 is hereby amended to read as follows:

      695G.171 1.  A health care plan issued by a managed care organization must provide coverage for benefits payable for expenses incurred for [administering] :

      (a) Deoxyribonucleic acid testing for high-risk strains of human papillomavirus every 3 years for women 30 years of age and older; and

      (b) Administering the human papillomavirus vaccine as recommended for vaccination by a competent authority, including, without limitation, the Centers for Disease Control and Prevention of the United States Department of Health and Human Services, the Food and Drug Administration or the manufacturer of the vaccine.

      2.  [A health care plan must not require an insured to obtain prior authorization for any service provided pursuant to subsection 1.

      3.]A managed care organization must ensure that the benefits required by subsection 1 are made available to an insured through a provider of health care who participates in the network plan of the managed care organization.

      3.  Except as otherwise provided in subsection 5, a managed care organization that offers or issues a health care plan which provides coverage for prescription drugs shall not:

      (a) Require an insured to pay a higher deductible, any copayment or coinsurance or require a longer waiting period or other condition to obtain any benefit provided in a health care plan pursuant to subsection 1;

      (b) Refuse to issue a health care plan or cancel a health care plan solely because the person applying for or covered by the plan uses or may use any such benefit;

 

 

 

 

 

 


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ê2017 Statutes of Nevada, Page 1859 (Chapter 323, SB 233)ê

 

      (c) Offer or pay any type of material inducement or financial incentive to an insured to discourage the insured from obtaining any such benefit;

      (d) Penalize a provider of health care who provides any such benefit to an insured, including, without limitation, reducing the reimbursement of the provider of health care;

      (e) Offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay access to any such benefit to an insured; or

      (f) Impose any other restrictions or delays on the access of an insured to any such benefit.

      4.  An evidence of coverage for a health care plan subject to the provisions of this chapter which is delivered, issued for delivery or renewed on or after [July 1, 2007,] January 1, 2018, has the legal effect of including the coverage required by subsection 1, and any provision of the evidence of coverage or the renewal thereof which is in conflict with [subsection 1] this section is void.

      [4.  For the purposes of]

      5.  Except as otherwise provided in this section and federal law, a managed care organization may use medical management techniques, including, without limitation, any available clinical evidence, to determine the frequency of or treatment relating to any benefit required by this section or the type of provider of health care to use for such treatment.

      6.  As used in this section [, “human] :

      (a) “Human papillomavirus vaccine” means the Quadrivalent Human Papillomavirus Recombinant Vaccine or its successor which is approved by the Food and Drug Administration for the prevention of human papillomavirus infection and cervical cancer.

      (b) “Medical management technique” means a practice which is used to control the cost or utilization of health care services or prescription drug use. The term includes, without limitation, the use of step therapy, prior authorization or categorizing drugs and devices based on cost, type or method of administration.

      (c) “Network plan” means a health care plan offered by a managed care organization under which the financing and delivery of medical care, including items and services paid for as medical care, are provided, in whole or in part, through a defined set of providers under contract with the managed care organization. The term does not include an arrangement for the financing of premiums.

      (d) “Provider of health care” has the meaning ascribed to it in NRS 629.031.

      Sec. 58.  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. 59.  This act becomes effective on January 1, 2018.

________

 


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ê2017 Statutes of Nevada, Page 1860ê

 

CHAPTER 324, AB 276

Assembly Bill No. 276–Assemblymen Spiegel, Joiner, Diaz; Bilbray-Axelrod, Carlton, Cohen, Miller, Swank, Thompson and Yeager

 

Joint Sponsors: Senators Parks; Manendo and Segerblom

 

CHAPTER 324

 

[Approved: June 3, 2017]

 

AN ACT relating to employment; prohibiting an employer, employment agency or labor organization from discriminating against certain persons for inquiring about, discussing or voluntarily disclosing information about wages under certain circumstances; revising provisions governing noncompetition covenants; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law establishes certain employment practices as unlawful and prohibits certain employers, employment agencies and labor organizations from engaging in such practices. (NRS 613.330) With certain exceptions, this prohibition only applies to employers who have 15 or more employees for each working day in each of 20 or more calendar weeks, either in the same or the preceding calendar year as when an unlawful employment practice occurred. (NRS 613.310) Section 3 of this bill prohibits such an employer, an employment agency or a labor organization from discriminating against a person with respect to employment or membership, as applicable, for inquiring about, discussing or voluntarily disclosing information about wages. This provision does not apply to any person who has access to information about the wages of other persons as part of his or her essential job functions and discloses the information to a person who does not have access to that information, except as ordered by the Labor Commissioner or a court of competent jurisdiction.

      Existing law also prohibits a person, association, company or corporation, or agent or officer thereof, from preventing any person who for any cause left or was discharged from their employ from obtaining employment elsewhere in this State. However, under existing law, a person, association, company or corporation, or agent or officer thereof, is not prohibited from negotiating, executing and enforcing an agreement with an employee which, upon termination of employment, prohibits the former employee from pursuing a similar vocation in competition with or becoming employed by a competitor of the former employer. (NRS 613.200) Section 2 of this bill removes this provision from existing law, allowing for noncompetition agreements. Section 1 of this bill adds requirements governing noncompetition covenants, providing that such covenants are void and unenforceable unless the covenant: (1) is supported by valuable consideration; (2) does not impose any restraint that is greater than is required for the protection of the employer; (3) does not impose any undue hardship on the employee; and (4) imposes restrictions that are appropriate in relation to the valuable consideration supporting the covenant. Section 1 further provides that a noncompetition covenant may not restrict a former employee of an employer from providing service to a former customer or client if: (1) the former employee did not solicit the former customer or client; (2) the customer or client voluntarily chose to leave and seek the services of the former employee; and (3) the former employee is otherwise complying with the noncompetition covenant. Section 1 also provides that if an employee is terminated because of a reduction in force, reorganization or similar restructuring, a noncompetition covenant is only enforceable during the time in which the employer is paying the employee’s salary, benefits or equivalent compensation. Finally, section 1 provides that if an employer brings an action to enforce a noncompetition covenant and the court finds the covenant contains limitations that are not reasonable and impose a greater restraint than is necessary, the court shall revise the covenant to the extent necessary and enforce the covenant as revised.

 


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ê2017 Statutes of Nevada, Page 1861 (Chapter 324, AB 276)ê

 

brings an action to enforce a noncompetition covenant and the court finds the covenant contains limitations that are not reasonable and impose a greater restraint than is necessary, the court shall revise the covenant to the extent necessary and enforce the covenant as revised.

 

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

      1.  A noncompetition covenant is void and unenforceable unless the noncompetition covenant:

      (a) Is supported by valuable consideration;

      (b) Does not impose any restraint that is greater than is required for the protection of the employer for whose benefit the restraint is imposed;

      (c) Does not impose any undue hardship on the employee; and

      (d) Imposes restrictions that are appropriate in relation to the valuable consideration supporting the noncompetition covenant.

      2.  A noncompetition covenant may not restrict a former employee of an employer from providing service to a former customer or client if:

      (a) The former employee did not solicit the former customer or client;

      (b) The customer or client voluntarily chose to leave and seek services from the former employee; and

      (c) The former employee is otherwise complying with the limitations in the covenant as to time, geographical area and scope of activity to be restrained, other than any limitation on providing services to a former customer or client who seeks the services of the former employee without any contact instigated by the former employee.

Ê Any provision in a noncompetition covenant which violates the provisions of this subsection is void and unenforceable. 

      3.  An employer in this State who negotiates, executes or attempts to enforce a noncompetition covenant that is void and unenforceable under this section does not violate the provisions of NRS 613.200.

      4.  If the termination of the employment of an employee is the result of a reduction of force, reorganization or similar restructuring of the employer, a noncompetition covenant is only enforceable during the period in which the employer is paying the employee’s salary, benefits or equivalent compensation, including, without limitation, severance pay.

      5.  If an employer brings an action to enforce a noncompetition covenant and the court finds the covenant is supported by valuable consideration but contains limitations as to time, geographical area or scope of activity to be restrained that are not reasonable, impose a greater restraint than is necessary for the protection of the employer for whose benefit the restraint is imposed and impose undue hardship on the employee, the court shall revise the covenant to the extent necessary and enforce the covenant as revised. Such revisions must cause the limitations contained in the covenant as to time, geographical area and scope of activity to be restrained to be reasonable and to impose a restraint that is not greater than is necessary for the protection of the employer for whose benefit the restraint is imposed.

 


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ê2017 Statutes of Nevada, Page 1862 (Chapter 324, AB 276)ê

 

      6.  As used in this section:

      (a) “Employer” means every person having control or custody of any employment, place of employment or any employee.

      (b) “Noncompetition covenant” means an agreement between an employer and employee which, upon termination of the employment of the employee, prohibits the employee from pursuing a similar vocation in competition with or becoming employed by a competitor of the employer.

      Sec. 2. NRS 613.200 is hereby amended to read as follows:

      613.200  1.  Except as otherwise provided in this section [,] and section 1 of this act, any person, association, company or corporation within this State, or any agent or officer on behalf of the person, association, company or corporation, who willfully does anything intended to prevent any person who for any cause left or was discharged from his, her or its employ from obtaining employment elsewhere in this State is guilty of a gross misdemeanor and shall be punished by a fine of not more than $5,000.

      2.  In addition to any other remedy or penalty, the Labor Commissioner may impose against each culpable party an administrative penalty of not more than $5,000 for each such violation.

      3.  If a fine or an administrative penalty is imposed pursuant to this section, the costs of the proceeding, including investigative costs and attorney’s fees, may be recovered by the Labor Commissioner.

      4.  The provisions of this section do not prohibit a person, association, company, corporation, agent or officer from negotiating, executing and enforcing an agreement with an employee of the person, association, company or corporation which, upon termination of the employment, prohibits the employee from [:

      (a) Pursuing a similar vocation in competition with or becoming employed by a competitor of the person, association, company or corporation; or

      (b) Disclosing] disclosing any trade secrets, business methods, lists of customers, secret formulas or processes or confidential information learned or obtained during the course of his or her employment with the person, association, company or corporation [,

Ê] if the agreement is supported by valuable consideration and is otherwise reasonable in its scope and duration.

      Sec. 3. NRS 613.330 is hereby amended to read as follows:

      613.330  1.  Except as otherwise provided in NRS 613.350, it is an unlawful employment practice for an employer:

      (a) To fail or refuse to hire or to discharge any person, or otherwise to discriminate against any person with respect to the person’s compensation, terms, conditions or privileges of employment, because of his or her race, color, religion, sex, sexual orientation, gender identity or expression, age, disability or national origin; [or]

      (b) To limit, segregate or classify an employee in a way which would deprive or tend to deprive the employee of employment opportunities or otherwise adversely affect his or her status as an employee, because of his or her race, color, religion, sex, sexual orientation, gender identity or expression, age, disability or national origin [.] ; or

      (c) Except as otherwise provided in subsection 7, to discriminate against any employee because the employee has inquired about, discussed or voluntarily disclosed his or her wages or the wages of another employee.

 


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ê2017 Statutes of Nevada, Page 1863 (Chapter 324, AB 276)ê

 

      2.  It is an unlawful employment practice for an employment agency : [to:]

      (a) [Fail] To fail or refuse to refer for employment, or otherwise to discriminate against, any person because of the race, color, religion, sex, sexual orientation, gender identity or expression, age, disability or national origin of that person; [or]

      (b) [Classify] To classify or refer for employment any person on the basis of the race, color, religion, sex, sexual orientation, gender identity or expression, age, disability or national origin of that person [.] ; or

      (c) Except as otherwise provided in subsection 7, to discriminate against any person because the person has inquired about, discussed or voluntarily disclosed his or her wages or the wages of another person.

      3.  It is an unlawful employment practice for a labor organization:

      (a) To exclude or to expel from its membership, or otherwise to discriminate against, any person because of his or her race, color, religion, sex, sexual orientation, gender identity or expression, age, disability or national origin;

      (b) To limit, segregate or classify its membership, or to classify or fail or refuse to refer for employment any person, in any way which would deprive or tend to deprive the person of employment opportunities, or would limit the person’s employment opportunities or otherwise adversely affect the person’s status as an employee or as an applicant for employment, because of his or her race, color, religion, sex, sexual orientation, gender identity or expression, age, disability or national origin; [or]

      (c) Except as otherwise provided in subsection 7, to discriminate or take any other action prohibited by this section against any member thereof or any applicant for membership because the member or applicant has inquired about, discussed or voluntarily disclosed his or her wages or the wages of another member or applicant; or

      (d) To cause or attempt to cause an employer to discriminate against any person in violation of this section.

      4.  It is an unlawful employment practice for any employer, labor organization or joint labor-management committee controlling apprenticeship or other training or retraining, including, without limitation, on-the-job training programs, to discriminate against any person because of his or her race, color, religion, sex, sexual orientation, gender identity or expression, age, disability or national origin in admission to, or employment in, any program established to provide apprenticeship or other training.

      5.  Except as otherwise provided in subsection 6, it is an unlawful employment practice for any employer, employment agency, labor organization or joint labor-management committee to discriminate against a person with a disability by interfering, directly or indirectly, with the use of an aid or appliance, including, without limitation, a service animal, by such a person.

      6.  It is an unlawful employment practice for an employer, directly or indirectly, to refuse to permit an employee with a disability to keep the employee’s service animal with him or her at all times in his or her place of employment, except that an employer may refuse to permit an employee to keep a service animal that is a miniature horse with him or her if the employer determines that it is not reasonable to comply, using the assessment factors set forth in 28 C.F.R. § 36.302.

 


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ê2017 Statutes of Nevada, Page 1864 (Chapter 324, AB 276)ê

 

      7.  The provisions of paragraph (c) of subsection 1, paragraph (c) of subsection 2 and paragraph (c) of subsection 3, as applicable, do not apply to any person who has access to information about the wages of other persons as part of his or her essential job functions and discloses that information to a person who does not have access to that information unless the disclosure is ordered by the Labor Commissioner or a court of competent jurisdiction.

      8.  As used in this section, “service animal” has the meaning ascribed to it in NRS 426.097.

      Sec. 4.  This act becomes effective upon passage and approval.

________

CHAPTER 325, SB 56

Senate Bill No. 56–Committee on Government Affairs

 

CHAPTER 325

 

[Approved: June 3, 2017]

 

AN ACT providing a charter for the City of Mesquite, in Clark County, Nevada; authorizing the City Council of the City of Mesquite to establish certain fees and impose certain taxes; requiring the City Council to levy a tax upon the assessed value of real and personal property; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      The Nevada Constitution authorizes the Legislature to provide for the incorporation of a city by a special act. (Nev. Const. Art. 8, § 8) Section 1 of this bill provides a charter for the City of Mesquite in Clark County, Nevada. Article I of the Charter provides that the elective officers of the City consist of a Mayor, five members of the City Council and such other officers as provided in the Charter. (Section 1.050) Article I also requires the City Council to establish a Charter Committee, which is required to prepare recommendations to be presented to the Legislature on behalf of the City concerning all necessary amendments to the Charter. (Section 1.110)

      Articles II, III and IV of the Charter establish provisions relating to the legislative, executive and judicial departments of the City, respectively. Article II provides for the qualifications, election, term of office and salary of the members of the City Council and establishes the various powers of the City Council, including the power to fix, impose and collect a license tax for revenue upon all businesses, trades and professions. (Sections 2.010, 2.080, 2.110-2.280) Article II also authorizes the City Council to establish and impose various fees. (Sections 2.170, 2.210, 2.270) Article II further establishes several provisions concerning the sale or lease of real property owned by the City and the redevelopment of communities. (Sections 2.300-2.370) Article III provides for the qualifications, duties, election, term of office and salary of the Mayor and the election by the City Council of one of its members to be Mayor pro tempore. (Section 3.010) Article III also establishes provisions relating to the City Manager, City Clerk, City Attorney and City Assessor. (Sections 3.020-3.070) Article IV provides for a Municipal Court and establishes provisions relating to the departments of the Municipal Court and the Municipal Court Judges. (Sections 4.010-4.030)

      Article V of the Charter establishes provisions concerning elections, including certain procedures relating to the election of members of the City Council. (Sections 5.010, 5.020) Article VI of the Charter pertains to local improvements and generally authorizes the City Council to acquire, improve, equip, operate and maintain, convert to or authorize certain improvements.

 


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ê2017 Statutes of Nevada, Page 1865 (Chapter 325, SB 56)ê

 

authorizes the City Council to acquire, improve, equip, operate and maintain, convert to or authorize certain improvements. (Section 6.010) Article VII of the Charter: (1) prohibits the City from incurring any indebtedness in excess of a certain amount; (2) authorizes the City to grant franchises and acquire any public utility; and (3) authorizes the City to borrow money for any corporate purpose. (Sections 7.010-7.030)

      Article VIII of the Charter authorizes express trusts to be created in real or personal property, with the City as the beneficiary thereof, for the furtherance, or the providing of funds for the furtherance, of any authorized or proper function of the City. (Section 8.010) Article IX of the Charter authorizes the City Council to levy an annual tax at a rate allowable under state law upon the assessed value of all applicable real and personal property within the City. (Section 9.010) Article X of the Charter establishes certain miscellaneous provisions concerning the Charter. (Sections 10.010, 10.020)

      Section 2 of this bill provides that the effective date of incorporation of the City of Mesquite is July 1, 2017.

 

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

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  The Charter of the City of Mesquite is as follows. Each section of the Charter shall be deemed to be a section of this act for the purpose of any subsequent amendment.

 

ARTICLE I

 

Incorporation of City; General Powers; Boundaries;

Annexations; City Offices; Charter Committee

 

      Section 1.010  Preamble: Legislative intent.

      1.  In order to provide for the orderly government of the City of Mesquite and the general welfare of its citizens, the Legislature hereby establishes this Charter for the government of the City of Mesquite. It is expressly declared as the intent of the Legislature that all provisions of this Charter be liberally construed to carry out the express purposes of the Charter and that the specific mention of particular powers must not be construed as limiting in any way the general powers necessary to carry out the purposes of the Charter.

      2.  Any powers expressly granted by this Charter are in addition to any powers granted to a city by the general law of this State. All provisions of the Nevada Revised Statutes which are applicable generally to cities, not including, unless otherwise expressly mentioned in this Charter, chapter 265, 266 or 267 of NRS, which are not in conflict with the provisions of this Charter apply to the City of Mesquite.

      3.  Except as otherwise expressly provided in a particular section or required by the context:

      (a) The masculine gender includes the feminine and neuter genders.

      (b) The singular number includes the plural number and the plural includes the singular.

      (c) The present tense includes the future tense.

Ê The use of a masculine noun or pronoun in conferring a benefit or imposing a duty does not exclude a female person from that benefit or duty.

 


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ê2017 Statutes of Nevada, Page 1866 (Chapter 325, SB 56)ê

 

duty. The use of a feminine noun or pronoun in conferring a benefit or imposing a duty does not exclude a male person from that benefit or duty.

      Sec. 1.020  Incorporation of City.

      1.  All persons who are inhabitants of that portion of the State of Nevada embraced within the limits set forth in section 1.030 constitute a political and corporate body by the name of “City of Mesquite” and by that name they and their successors must be known in law, have perpetual succession and may sue or be sued in all courts.

      2.  Whenever used throughout this Charter, “City” means the City of Mesquite.

      Sec. 1.030  Description of territory.  The territory embraced in the City is that certain land described in the official plat required by NRS 234.250 to be filed with the County Recorder and the County Assessor of Clark County, as such plat is revised from time to time.

      Sec. 1.040  Annexations.  The City may annex territory by following the procedure provided for the annexation of cities in those sections of chapter 268 of NRS, as amended from time to time, which apply to a county whose population is 700,000 or more.

      Sec. 1.050  Elective offices.  The elective officers of the City consist of:

      1.  A Mayor;

      2.  Five Council members; and

      3.  Such other officers as provided by this Charter.

      Sec. 1.060  Elective offices: Vacancies.

      1.  A vacancy in the City Council or in the office of Mayor must be filled for the remainder of the unexpired term by a majority vote of the members of the City Council, or the remaining members in the case of a vacancy in the City Council, within 45 days after the occurrence of the vacancy.

      2.  A person appointed to fill a vacancy:

      (a) Must have the same qualifications as are required of the elective official; and

      (b) Shall enter upon the discharge of his or her respective duties at the first meeting of the City Council held after the vote to fill the vacancy.

      Sec. 1.070  Mayor and Council members not to hold other office; authorization to run for other office.

      1.  The Mayor and Council members:

      (a) Shall not hold any other elective office with the State of Nevada or any of its political subdivisions or any other employment with the City.

      (b) Must not be elected or appointed to any office created by or the compensation for which was increased or fixed by the City Council until 1 year after the expiration of the term for which he or she was elected.

      2.  Any person holding any office proscribed by subsection 1 automatically forfeits his or her office as Mayor or Council member.

      3.  Subject to the provisions of subsections 1 and 2, the Mayor and any Council member may run for an elective office with the State or any political subdivision thereof while still serving in his or her capacity as Mayor or Council member.

      Sec. 1.080  Executive officers.

      1.  The following positions are executive officers within the City:

      (a) City Manager.

      (b) City Attorney.

 


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      (c) Assistant City Manager or Deputy City Manager.

      (d) City Clerk.

      (e) Director of Finance.

      (f) Chief of Police.

      (g) Fire Chief.

      2.  The City Council may combine any positions for executive officers by ordinance.

      3.  The appointments of the City Manager and City Attorney must be made by the Mayor, subject to the advice and consent of the City Council.

      4.  The appointments and termination of all other executive officers must be made by the City Manager and are subject to ratification by the City Council.

      Sec. 1.090  Executive officers: Duties; salary.

      1.  All executive officers other than the City Attorney shall perform such duties as may be designated by the City Manager.

      2.  Any executive officer who becomes aware of any supposed nonfeasance, misfeasance or malfeasance shall report such behavior in accordance with the proper chain of command. If the person who has allegedly committed the nonfeasance, misfeasance or malfeasance is ranked higher than the executive officer in the proper chain of command, the executive officer shall report the behavior to the appropriate legal authorities.

      3.  The City Manager shall set the salary for all executive officers other than the City Attorney.

      Sec. 1.100  Oath of office.  Every person elected or appointed to fill any elective office shall subscribe to the official oath as provided by the City Council. Every such person shall swear or affirm that he or she is not under any direct or indirect obligation to vote for, appoint or elect any person to any office, position or employment in the City.

      Sec. 1.110  Charter Committee: Creation; appointment; qualifications; terms; compensation.

      1.  The City Council shall establish a Charter Committee which shall meet as required to prepare recommendations to be presented to the Legislature on behalf of the City concerning all necessary amendments to the City Charter.

      2.  The Charter Committee must be appointed as follows:

      (a) The Mayor and each member of the City Council shall appoint one member;

      (b) Each member of the Senate and Assembly delegation representing the residents of the City shall appoint one member; and

      (c) Before the conclusion of the second meeting of the Charter Committee, the Committee shall appoint one member.

      3.  Each member of the Charter Committee:

      (a) Must be a registered voter of the City;

      (b) If appointed pursuant to:

             (1) Paragraph (a) or (b) of subsection 2, serves a term concurrent to the term of the public officer by whom he or she was appointed; or

             (2) Paragraph (c) of subsection 2, serves a term of 2 years;

      (c) Must reside in the City during his or her term of office; and

      (d) Serves without compensation.

 


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      Sec. 1.120  Charter Committee: Officers; meetings; duties; legislative measures.

      1.  The Charter Committee shall:

      (a) Elect from among its members a Chair and Vice Chair, who each serve a term of 2 years unless he or she resigns or is removed from the Committee pursuant to section 1.130;

      (b) Meet at least once every 2 years before the beginning of each regular session of the Legislature and when requested by the City Council or the Chair of the Committee;

      (c) Meet jointly with the City Council on a date to be set after the final biennial meeting of the Committee is conducted pursuant to paragraph (b) and before the beginning of the next regular session of the Legislature to advise the City Council with regard to the recommendations of the Committee concerning necessary amendments to this Charter;

      (d) If the City Council elects to submit the Committee’s recommended amendments to the Legislature as one of the City’s legislative measures, assist the City Council in the timely preparation of such amendments for presentation to the Legislature on behalf of the City; and

      (e) Perform all functions and do all things necessary to accomplish the purposes for which it is established, including, without limitation, holding meetings and public hearings and obtaining assistance from officers of the City to ensure the Committee’s compliance with any law applicable to a public body.

      2.  If the City Council elects not to submit the Committee’s recommended amendments to the Legislature as one of the City’s legislative measures, the Committee may vote to authorize a member of the Committee to seek sponsorship of a legislative measure by a member of the Senate or Assembly delegation representing the residents of the City and to assist the Senator, Assemblyman or Assemblywoman, as applicable, in the timely preparation of such amendments for presentation to the Legislature. The member of the Committee shall not represent that any such legislative measure is approved or supported by the City Council and shall disclose to the Senator, Assemblyman or Assemblywoman, as applicable, that the legislative measure is not approved or supported by the City Council.

      Sec. 1.130  Charter Committee: Removal of member; vacancies.

      1.  Any member of the Charter Committee may be removed by a majority of the remaining members of the Charter Committee for any of the following reasons:

      (a) Failure or refusal to perform the duties of office;

      (b) Absence from three consecutive regular meetings;

      (c) Ceasing to meet any qualification for appointment to the Charter Committee; or

      (d) Any conduct deemed inappropriate by a majority vote of the members of the Charter Committee.

      2.  A vote for removal of a member of the Charter Committee pursuant to paragraph (d) of subsection 1 must be ratified by a majority vote of the City Council.

      3.  If a vacancy occurs on the Charter Committee, the vacancy must be filled in the same manner as the original appointment for the remainder of the unexpired term.

 


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ARTICLE II

 

Legislative Department

 

      Sec. 2.010  City Council: Qualifications; election; term of office; salary.

      1.  The legislative power of the City is vested in a City Council consisting of five Council members.

      2.  Each Council member must be elected at large and without respect to the location of his or her residence, as long as the residence is within the city limits of the City of Mesquite.

      3.  Each Council member must be:

      (a) A bona fide resident of the territory which is established by the boundaries of the City for the 12 months immediately preceding the last day for filing a declaration of candidacy for the office.

      (b) A qualified elector within the City.

      4.  All Council members must be voted upon by the registered voters of the City at large and shall serve for terms of 4 years.

      5.  The Council members are entitled to receive a salary in an amount fixed by the City Council. The City Council shall not adopt an ordinance which increases or decreases the salary of the Council members and becomes effective during the term for which they have been elected or appointed.

      Sec. 2.020  City Council: Contracts.  Members of the City Council may vote on any lease, contract or other agreement which extends beyond their terms of office.

      Sec. 2.030  City Council: Discipline of members and other persons; subpoena power.

      1.  The City Council may:

      (a) Provide for the punishment of any member for disorderly conduct committed in its presence.

      (b) Order the attendance of witnesses and the production of all documents and data relating to any business before the City Council.

      2.  If any person ordered to appear before the City Council or to produce documents or data fails to obey such order:

      (a) The City Council or any member thereof may direct the City Attorney to apply to the Municipal Court for a subpoena commanding the attendance of the person before the City Council or production of the documents or data to the City Council.

      (b) A Municipal Court Judge may issue the subpoena, and any peace officer may serve it.

      (c) If the person upon whom the subpoena is served fails to obey it, the Municipal Court may issue an order to show cause why such person should not be held in contempt of the Municipal Court and upon hearing of the matter may adjudge such person guilty of contempt and punish him or her accordingly.

      Sec. 2.040  Meetings: Quorum.

      1.  Unless the Mayor or a majority of Council members decide otherwise, the City Council shall hold at least two regular meetings each month. In no case may the City Council not hold a regular meeting during any given month.

 


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      2.  Before each regular meeting, but after the previous meeting, the City Council shall hold a work session to discuss the contents of the upcoming meeting.

      3.  Except as otherwise provided in NRS 241.0355, a majority of all members of the City Council constitutes a quorum to do business, but a lesser number may meet and recess from time to time, and compel the attendance of the absent members.

      4.  Except as otherwise provided by law, all sessions and all proceedings of the City Council must be public.

      Sec. 2.050  Meetings: Special.

      1.  Special meetings may be held on call of the Mayor or by a majority of the City Council, by giving notice of the special meeting pursuant to NRS 241.020.

      2.  At a special meeting, no contract involving the expenditure of money may be made or claim allowed unless notice of the meeting called to consider the action is given pursuant to the provisions of NRS 241.020.

      Sec. 2.060  Meetings: Time and place; rules.  The City Council may:

      1.  Fix the time and place of its meetings.

      2.  Adopt rules for the government of its members and proceedings.

      Sec. 2.070  Oaths and affirmations.  The Mayor, the Mayor pro tempore while acting for the Mayor and the City Clerk may administer oaths and affirmations relating to any business pertaining to the City before the City Council or to be considered by the City Council.

      Sec. 2.080  Powers of City Council: Ordinances, resolutions and orders.

      1.  The City Council may make and pass all ordinances, resolutions and orders not repugnant to the Constitution of the United States or the State of Nevada, or to the provisions of the Nevada Revised Statutes or of this Charter, necessary for the municipal government and the management of the affairs of the City, and for the execution of all the powers vested in the City.

      2.  When power is conferred upon the City Council to do and perform anything, and the manner of exercising such power is not specifically provided for, the City Council may provide by ordinance the manner and details necessary for the full exercise of such power.

      3.  The City Council may enforce ordinances by providing penalties not to exceed those established by the Legislature for misdemeanors.

      4.  The City Council has such powers, not in conflict with the express or implied provisions of this Charter, as are conferred generally by statute upon the governing bodies of cities organized under a special charter.

      Sec. 2.090  Ordinances: Passage by bill; amendments; subject matter; title requirements.

      1.  No ordinance may be passed except by bill and by a majority vote of the whole City Council. The style of all ordinances must be as follows: “The City Council of the City of Mesquite does ordain:”.

      2.  No ordinance may contain more than one subject, which must be briefly indicated in the title. If the subject of the ordinance is not so expressed in the title, the ordinance is void as to the matter not expressed in the title.

      3.  Any ordinance which amends an existing ordinance must set out in full the ordinance or sections thereof to be amended, must indicate matter to be omitted by enclosing it in brackets or by using another similar conspicuous marking, and must indicate new matter by underscoring, by italics or by another similar conspicuous marking.

 


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conspicuous marking, and must indicate new matter by underscoring, by italics or by another similar conspicuous marking.

      Sec. 2.100  Ordinances: Enactment procedure; emergency ordinances.

      1.  All proposed ordinances when first proposed must be read to the City Council by title and referred to a committee for consideration, if such a committee has been established, after which an adequate number of copies of the proposed ordinance must be filed with the City Clerk for public distribution. Except as otherwise provided in subsection 3, notice of the filing must be published once in a newspaper qualified pursuant to the provisions of chapter 238 of NRS, and published in the City at least 10 days before the adoption of the ordinance. The City Council shall adopt or reject the ordinance or an amendment thereto within 30 days after the date of publication.

      2.  At the next regular meeting or special meeting of the City Council following the proposal of an ordinance and its reference to a committee, if such a committee has been established, any such committee shall report the ordinance back to the City Council. Before the City Council considers the action to be taken on the proposed ordinance, a public hearing on the proposed ordinance must be held. Upon the conclusion of the public hearing, the proposed ordinance must be finally voted upon or action thereon postponed.

      3.  In cases of emergency or where the ordinance is of a kind specified in section 7.030, by unanimous consent of the City Council, final action may be taken immediately or at a special meeting called for that purpose, and no notice of the filing of the copies of the proposed ordinance with the City Clerk need be published.

      4.  All ordinances must be signed by the Mayor, attested by the City Clerk and published at least once by title, together with the names of the Council members voting for or against passage, in a newspaper qualified pursuant to the provisions of chapter 238 of NRS and published in the City, before the ordinance becomes effective. The City Council may, by majority vote, order the publication of the ordinance in full in lieu of publication by title only.

      5.  The City Clerk shall keep a record of all ordinances together with the affidavits of publication.

      Sec. 2.110  Powers of City Council: Public property, buildings.  The City Council may:

      1.  Control the property of the City.

      2.  Erect and maintain all buildings necessary for the use of the City.

      3.  Purchase, receive, hold, sell, lease, convey and dispose of property, wherever situated, for the benefit of the City, improve and protect such property, and do all other things in relation thereto which natural persons might do.

      Sec. 2.120  Powers of City Council: Eminent domain.  The City Council may condemn property for the public use in the manner prescribed by chapter 37 of NRS, as amended from time to time.

      Sec. 2.130  Powers of City Council: Licensing, regulation and prohibition of businesses, trades and professions.

      1.  The City Council may:

      (a) Except as otherwise provided in NRS 598D.150 and 640C.100, regulate all businesses, trades and professions.

 


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      (b) Fix, impose and collect a license tax for revenue upon all businesses, trades and professions.

      2.  The City Council may establish by ordinance or resolution any equitable standard to be used in fixing license taxes required to be collected pursuant to this section.

      Sec. 2.140  Powers of City Council: Police ordinances.

      1.  The City Council may enact and enforce such local police ordinances as are not in conflict with the general laws of the State of Nevada.

      2.  Any offense made a misdemeanor by the laws of the State of Nevada shall also be deemed to be a misdemeanor in the City whenever such offense is committed within the City.

      Sec. 2.150  Powers of City Council: Fire protection; regulation of explosives, inflammable materials; fire codes and regulations.  The City Council may:

      1.  Organize, regulate and maintain a fire department.

      2.  Regulate or prohibit the storage of any explosive, combustible or inflammable material in or transported through the City, and prescribe the distance from any residential or commercial area where it may be kept. Any ordinance adopted pursuant to this subsection that regulates places of employment where explosives are stored must be at least as stringent as the standards and procedures adopted by the Division of Industrial Relations of the Department of Business and Industry pursuant to NRS 618.890.

      3.  Establish, by ordinance, a fire code and other regulations necessary to carry out the purposes of this section.

      Sec. 2.160  Powers of City Council: Public health; Southern Nevada Health District; regulations.  The City Council may:

      1.  Provide for safeguarding public health in the City.

      2.  Provide for the enforcement of all regulations and quarantines established by the Southern Nevada Health District or its successor by imposing adequate penalties for violations thereof.

      3.  Provide by ordinance any rules and regulations specific to the health and welfare of the City of Mesquite and its residents and, in accordance with subsection 3 of section 2.080, provide that the penalty for any violation thereof is equivalent to the penalty established by the Legislature for a misdemeanor.

      Sec. 2.170  Powers of City Council: Buildings; construction and maintenance regulations; building and safety codes.  The City Council may:

      1.  Regulate all matters relating to the construction, maintenance and safety of buildings, structures and property within the City.

      2.  Adopt any building or safety code necessary to carry out the provisions of this section and establish such fees as may be necessary.

      Sec. 2.180  Powers of City Council: Zoning and planning.  The City Council may adopt ordinances and regulations relating to zoning and planning pursuant to the provisions of chapter 278 of NRS.

      Sec. 2.190  Powers of City Council: Rights-of-way, parks, public buildings and grounds and other public places.  The City Council may:

      1.  Lay out, maintain, alter, improve or vacate all public rights-of-way in the City.

      2.  Regulate the use of public parks, buildings, grounds and rights-of-way and prevent the unlawful use thereof.

 


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      3.  Require landowners to keep the adjacent streets, sidewalks and public parks, buildings and grounds free from encroachments or obstructions.

      4.  Regulate in all public places:

      (a) The distribution and exhibition of handbills or signs.

      (b) Any practice tending to annoy persons passing or being in such public places.

      (c) Public demonstrations and processions.

      5.  Prevent riots or any act tending to promote riots in any public place.

      Sec. 2.200  Powers of City Council: Traffic control.  The City Council may, by ordinance, regulate:

      1.  Except as otherwise provided in NRS 707.375, all vehicular, pedestrian and other traffic within the City and provide generally for the public safety on public streets and rights-of-way.

      2.  The length of time for which vehicles may be parked upon the public streets and publicly owned parking lots.

      Sec. 2.210  Powers of City Council: Parking meters; off-street public parking facilities.

      1.  The City Council may acquire, install, maintain, operate and regulate parking meters at the curbs of the streets or upon publicly owned property made available for public parking. The parking fees to be charged for the use of the parking facilities regulated by parking meters must be fixed by the City Council.

      2.  Except as otherwise provided by this Charter, the City Council may acquire property within the City by any lawful means, including eminent domain, for the purpose of establishing off-street public parking facilities for vehicles. The City Council may, in bonds issued to acquire property for this purpose, pledge the on-street parking revenues, the general credit of the City, or both, to secure the payment of the principal and interest thereon.

      Sec. 2.220  Powers of City Council: Airports.  The City Council may acquire, provide for, operate and maintain an airport for public use.

      Sec. 2.230  Powers of City Council: Railroads.  The City Council may:

      1.  License, regulate or prohibit the location, construction or laying of tracks of any railroad or streetcar in any public right-of-way.

      2.  Grant franchises to any person or corporation to operate a railroad, streetcar or other public transit system upon public rights-of-way and adjacent property.

      3.  Declare a nuisance and require the removal of the tracks of any railroad or streetcar in any public right-of-way.

      4.  Condemn rights-of-way for any public purpose across any railroad right-of-way.

      5.  Prescribe the length of time any public right-of-way may be obstructed by trains standing thereon.

      6.  Require railroad companies to fence their tracks and to construct cattle guards and crossings and to keep them in repair.

      7.  Acquire, provide for, operate and maintain a railroad for public use.

      Sec. 2.240  Powers of City Council: Nuisances.  The City Council may:

 


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      1.  Determine by ordinance what shall be deemed nuisances.

      2.  Provide for the abatement, prevention and removal of such nuisances at the expense of the person creating, causing or committing such nuisances.

      3.  Provide that such expense of removal is a lien upon the property upon which the nuisance is located. Such lien must:

      (a) Be perfected by filing with the County Recorder of Clark County a statement by the City Clerk of the amount of expenses due and unpaid and describing the property subject to the lien.

      (b) Be coequal with the latest lien thereon to secure the payment of general taxes.

      (c) Not be subject to extinguishment by the sale of any property on account of the nonpayment of general taxes.

      (d) Be prior and superior to all liens, claims, encumbrances and titles other than the liens of assessments and general taxes.

      4.  Provide any other penalty or punishment of persons responsible for such nuisances.

      Sec. 2.250  Powers of City Council: Animals.  The City Council may regulate and control animals in the City and may construct facilities for this purpose.

      Sec. 2.260  Powers of City Council: Abatement of noxious insects, rats and disease-bearing organisms.  The City Council may take all steps necessary and proper for the extermination of noxious insects, rats and other disease-bearing organisms, either in the City or in territory outside the City but so situated that such insects, rats and disease-bearing organisms migrate or are carried into the City.

      Sec. 2.270  Powers of City Council: Sanitary sewer facilities.  The City Council may:

      1.  Provide for a sanitary sewer system or any part thereof, including, without limitation, a wastewater treatment plant, and obtain property therefor either within or without the City.

      2.  Sell any product or by-product thereof and acquire the appropriate outlets within or without the City and extend the sewer lines thereto.

      3.  Establish sewer fees and provide for the enforcement and collection thereof.

      Sec. 2.280  Powers of City Council: Provision of utilities.

      1.  Except as otherwise provided in subsection 3 and section 2.290, the City Council may:

      (a) Provide, by license, contract, franchise, public enterprise or any other appropriate means, for any utility to be furnished to the City for the residents thereof.

      (b) Provide for the construction of any facility necessary for the provision of such utilities.

      (c) Fix the rate to be paid for any utility provided by public enterprise.

      2.  Any charges due for services, facilities or commodities furnished by any utility owned by the City is a lien upon the property to which the service is rendered. Each such lien must:

      (a) Be perfected by filing with the County Recorder of Clark County a statement by the City Clerk of the amount due and unpaid and describing the property subject to the lien.

      (b) Be coequal with the latest lien thereon to secure the payment of general taxes.

 


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      (c) Not be subject to extinguishment by the sale of any property on account of the nonpayment of general taxes.

      (d) Be prior and superior to all liens, claims, encumbrances and titles other than the liens of assessments and general taxes.

      3.  The City Council:

      (a) Shall not sell telecommunication service to the general public.

      (b) May purchase or construct facilities for providing telecommunication that intersect with public rights-of-way if the governing body:

             (1) Conducts a study to evaluate the costs and benefits associated with purchasing or constructing the facilities; and

             (2) Determines from the results of the study that the purchase or construction is in the interest of the general public.

      4.  Any information relating to the study conducted pursuant to subsection 3 must be maintained by the City Clerk and made available for public inspection during the business hours of the Office of the City Clerk.

      5.  Notwithstanding the provisions of paragraph (a) of subsection 3, an airport may sell telecommunication service to the general public.

      6.  As used in this section:

      (a) “Telecommunication” has the meaning ascribed to it in NRS 704.025.

      (b) “Telecommunication service” has the meaning ascribed to it in NRS 704.028.

      Sec. 2.290  Franchises for the provision of telecommunication service.

      1.  The City Council shall not:

      (a) Impose any terms or conditions on a franchise for the provision of telecommunication service or interactive computer service other than terms or conditions concerning the placement and location of the telephone or telegraph lines and fees imposed for a business license or the franchise, right or privilege to construct, install or operate such lines.

      (b) Require a company that provides telecommunication service or interactive computer service to obtain a franchise if it provides telecommunication service over the telephone or telegraph lines owned by another company.

      (c) Require a person who holds a franchise for the provision of telecommunication service or interactive computer service to place its facilities in ducts or conduits or on poles owned or leased by the City.

      2.  As used in this section:

      (a) “Interactive computer service” has the meaning ascribed to it in 47 U.S.C. § 230(f)(2), as that section existed on January 1, 2007.

      (b) “Telecommunication service” has the meaning ascribed to it in NRS 704.028.

      Sec. 2.300  Sale or lease of real property owned by City: Appraisals.

      1.  Except as otherwise provided in this section, whenever real property owned by the City is to be leased or sold, the City shall:

      (a) Select one or two independent appraisers, as applicable, from the list of appraisers created pursuant to subsection 2. The cost of an appraisal must be borne by the successful purchaser of the real property unless the City Council decides otherwise during a public meeting.

 


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      (b) Verify the qualifications of each appraiser selected pursuant to paragraph (a). The determination of the City Council as to the qualifications of the appraiser is conclusive.

      2.  The City Council shall adopt by ordinance the procedures for creating or amending a list of appraisers who are qualified to conduct appraisals of real property offered for sale or lease by the City Council. The list must:

      (a) Contain the names of all persons licensed as an appraiser in Clark County; and

      (b) Be organized at random and reorganized from time to time.

      3.  An appraiser chosen pursuant to subsection 1 must provide a disclosure statement which includes, without limitation:

      (a) All sources of income of the appraiser that might constitute a conflict of interest; and

      (b) Any relationship of the appraiser with the City or the owner of an adjoining property.

      4.  An appraiser shall not perform an appraisal on any real property offered for sale or lease by the City Council if the appraiser or a person related to the appraiser within the first degree of consanguinity or affinity has an interest in the real property or an adjoining property.

      5.  If real property is sold or leased in violation of this section, the sale or lease is void.

      Sec. 2.310  Sale or lease of real property owned by City: Sale or lease to public entity.

      1.  The City Council may sell, lease or otherwise dispose of real property owned by the City to another public entity if:

      (a) The sale or lease restricts the use of the real property to a public use; and

      (b) The City Council adopts a resolution finding that the sale or lease will be in the best interest of the City.

      2.  If the provisions of subsection 1 are satisfied, the City Council may lease, sell or otherwise dispose of the real property, subject to the following conditions:

      (a) The City Council shall publish a notice at least once, in a newspaper qualified pursuant to the provisions of chapter 238 of NRS that is published in Clark County, setting forth the description of the real property proposed to be sold or leased in such a manner as to make the real property identifiable; and

      (b) The City Council shall hold a public hearing on the matter not less than 10 days and not more than 20 days after the date of the publication of the notice.

      3.  Any transaction made pursuant to this section may be made pursuant to any additional terms or conditions that the City Council deems proper.

      4.  If real property is sold or leased in violation of this section:

      (a) The sale or lease is void; and

      (b) Any change to an ordinance governing the zoning or use of the real property is void if the change takes place within 5 years after the date of the sale or lease, unless any such change applies to all real property within the applicable zoning district.

 


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      5.  The provisions of paragraph (b) of subsection 4 must be included as part of an applicable lease or, if the real property is being sold, recorded with the real property as a condition of the sale.

      Sec. 2.320  Sale or lease of real property owned by City: Sale of parcels less than 25,000 square feet.

      1.  The City Council may sell, lease or otherwise dispose of parcels of property owned by the City if the parcel is less than 25,000 square feet and one of the following conditions is met:

      (a) The parcel is a remnant that was separated from its original parcel due to the construction of a public infrastructure, public utility or other public facility;

      (b) The parcel is, as a result of its size, too small to establish an economically viable use by anyone other than the person who owns real property adjacent to the parcel; or

      (c) The parcel is subject to a deed restriction prohibiting the use of the parcel by anyone other than the person who owns real property adjacent to the parcel.

      2.  If any of the conditions in subsection 1 is satisfied, the City Council may sell, lease or otherwise dispose of the parcel, subject to the following conditions:

      (a) The City Council must adopt a resolution stating that it is in the best interest of the City to sell, lease or otherwise dispose of the parcel:

             (1) Without offering the parcel to the public; and

             (2) For less than the fair market value of the parcel, if applicable;

      (b) The City Council must obtain an appraisal;

      (c) The City Council must publish a notice at least once, in a newspaper qualified pursuant to the provisions of chapter 238 of NRS that is published in Clark County, setting forth the description of the parcel proposed to be sold or leased in such a manner as to make the parcel identifiable; and

      (d) The City Council must hold a public hearing on the matter not less than 10 days and not more than 20 days after the date of the publication of the notice.

      3.  Any transaction made pursuant to this section may be made pursuant to any additional terms or conditions that the City Council deems proper.

      4.  If a parcel is sold or leased in violation of this section:

      (a) The sale or lease is void; and

      (b) Any change to an ordinance governing the zoning or use of the parcel is void if the change takes place within 5 years after the date of the sale or lease, unless any such change applies to all real property within the applicable zoning district.

      5.  The provisions of paragraph (b) of subsection 4 must be included as part of an applicable lease or, if the parcel is being sold, recorded with the parcel as a condition of the sale.

      Sec. 2.330  Sale or lease of real property owned by City: Sale of property less than 25,000 square feet.

      1.  The City Council may sell or lease any building or portion thereof or any other real property owned by the City that is less than 25,000 square feet if the City Council adopts a resolution stating that it is in the best interest of the City to sell or lease the real property:

 


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ê2017 Statutes of Nevada, Page 1878 (Chapter 325, SB 56)ê

 

      (a) Without offering the real property to the public; and

      (b) For less than the fair market value of the real property, if applicable.

      2.  The City Council shall:

      (a) Obtain an appraisal only if the real property is being sold;

      (b) Publish a notice at least once, in a newspaper qualified pursuant to the provisions of chapter 238 of NRS that is published in Clark County, setting forth the description of the real property proposed to be sold or leased in such a manner as to make the real property identifiable; and

      (c) Hold a public hearing on the matter not less than 10 days and not more than 20 days after the date of the publication of the notice.

      3.  Any transaction made pursuant to this section may be made pursuant to any additional terms or conditions that the City Council deems proper.

      4.  If real property is sold or leased in violation of this section:

      (a) The sale or lease is void; and

      (b) Any change to an ordinance governing the zoning or use of the real property is void if the change takes place within 5 years after the date of the sale or lease, unless any such change applies to all real property within the applicable zoning district.

      5.  The provisions of paragraph (b) of subsection 4 must be included as part of an applicable lease or, if the real property is being sold, recorded with the real property as a condition of the sale.

      Sec. 2.340  Sale or lease of real property owned by City: Sale or lease for purpose of economic development or redevelopment.

      1.  The City Council may sell, lease or otherwise dispose of real property for the purposes of economic development or redevelopment:

      (a) Without first offering the real property to the public; and

      (b) For less than the fair market value of the real property.

      2.  The City Council may adopt an ordinance or approve a resolution enabling the establishment of criteria for the disposal of real property for the purposes of economic development or redevelopment.

      3.  Before the City Council may sell, lease or otherwise dispose of real property pursuant to this section, the City Council must:

      (a) Obtain two appraisals of the real property;

      (b) Adopt a resolution finding that it is in the best interests of the public to sell, lease or otherwise dispose of the real property:

             (1) Without offering the real property to the public; and

             (2) For less than the fair market value of the real property; and

      (c) Adopt a resolution finding that the sale or lease is consistent with any ordinances and resolutions adopted by the City Council regarding the disposal of real property for the purposes of economic development or redevelopment.

      4.  If real property is sold, leased or otherwise disposed of in violation of this section:

      (a) The sale or lease is void; and

      (b) Any change to an ordinance governing the zoning or use of the real property is void if the change takes place within 5 years after the date of the sale or lease, unless any such change applies to all real property within the applicable zoning district.

 


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ê2017 Statutes of Nevada, Page 1879 (Chapter 325, SB 56)ê

 

      5.  The provisions of paragraph (b) of subsection 4 must be included as part of an applicable lease or, if the real property is being sold, recorded with the real property as a condition of the sale.

      6.  As used in this section:

      (a) “Economic development” has the meaning ascribed to it in NRS 268.063.

      (b) “Redevelopment” has the meaning ascribed to it in NRS 279.408.

      Sec. 2.350  Sale or lease of real property owned by City: Public auctions.  If the City Council intends to sell or lease any real property at a public auction, the City Council shall follow the process established pursuant to NRS 268.062.

      Sec. 2.360  Sale or lease of real property owned by City: Use of services of real estate agency or real estate professional.

      1.  The City Council may decide by resolution to retain the services of a real estate agency or real estate professional to sell or lease real property pursuant to sections 2.300 to 2.360, inclusive, and may compensate the real estate agency or real estate professional for such services.

      2.  If the City Council desires to sell real property that is 25,000 square feet or larger, the City may retain the services of a real estate agency or real estate professional to sell the real property if the following conditions are met:

      (a) The City Council adopts a resolution stating that it is in the best interest of the City to sell, lease or otherwise dispose of the real property by using the services of a real estate agency or real estate professional to offer the real property to the public;

      (b) The City Council obtains two appraisals, the average of which establishes the minimum price for the sale of the real property;

      (c) The City Council lists the real property for sale for not less than the value established pursuant to paragraph (b);

      (d) The City Council publishes a notice at least once, in a newspaper qualified pursuant to the provisions of chapter 238 of NRS that is published in Clark County, setting forth the description of the real property proposed to be sold or leased in such a manner as to make the real property identifiable; and

      (e) The City Council holds a public hearing on the matter not less than 10 days and not more than 20 days after the date of the publication of the notice.

      3.  A real estate agency or real estate professional that provides services pursuant to this section shall present all offers to purchase the real property to the City Council. If the City Council does not accept an offer and enter into a purchase and sale agreement for the real property within 45 days after the offer is made, the offer shall be deemed to be rejected.

      Sec. 2.370  Redevelopment of communities.  Except as otherwise provided in this Charter:

      1.  All transactions involving land are subject to the requirements set forth in chapter 268 of NRS, as amended from time to time.

      2.  All transactions involving land that are subject to the provisions of chapter 279 of NRS must comply with all the requirements set forth in chapter 279 of NRS, as amended from time to time.

 


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ê2017 Statutes of Nevada, Page 1880 (Chapter 325, SB 56)ê

 

ARTICLE III

 

Executive Department

 

      Sec. 3.010  Mayor: Qualifications; duties; election; term of office; salary; Mayor pro tempore.

      1.  The Mayor must be:

      (a) A bona fide resident of the territory which is established by the boundaries of the City for the 12 months immediately preceding the last day for filing a declaration of candidacy for the office.

      (b) A qualified elector within the City.

      2.  The Mayor:

      (a) Shall preside over the meetings of the City Council, but may not vote except in the case of breaking a tie vote. While presiding over a meeting, the Mayor shall preserve order and decorum among the members and enforce the rules of the City Council and determine the order of business, subject to those rules and appeal to the City Council, or as provided by ordinance.

      (b) Must be recognized as the official head of the City Government for all ceremonial purposes and for the performance of all duties lawfully delegated to the Mayor by this Charter, by action of the City Council or by any law.

      (c) Has the authority to declare emergencies as necessary to protect the general health, welfare and safety of the City. Any such declaration of emergency:

             (1) May include a provision authorizing the Mayor to act as the chief executive officer of all affairs of the City during the emergency; and

             (2) Must be reviewed by the City Council at its next meeting.

      (d) Shall provide an annual address to the City Council during the first quarter of each year relating to the state of the City, and recommend such measures as the Mayor may deem beneficial to the City.

      (e) Shall take all proper measures for the preservation of public peace and order, and the suppression of riots, tumults and all forms of public disturbances, for which purpose the Mayor may, if the City is not participating in a metropolitan police department, appoint extra police officers temporarily and use and command the police force. If the City is participating in a metropolitan police department, the Mayor may request law enforcement assistance from the sheriff. In either case, if local law enforcement forces are inadequate, the Mayor shall call upon the Governor for military aid in the manner provided by law.

      (f) Shall sign all licenses and warrants and claims against the City.

      (g) May, subject to ratification by the City Council:

             (1) Appoint himself or herself or any member of the City Council to, or remove himself or herself or any member of the City Council from, any board, commission or advisory agency if the Mayor or Council member is granted a seat on the board, commission or advisory agency because of his or her elective office; or

             (2) Appoint a person whom the City Council determines to be qualified to fill the seat of any person granted a seat pursuant to subparagraph (1) or remove such a qualified person from that seat.

      (h) Shall, with the advice and consent of the City Council, appoint the City Manager and City Attorney.

 


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      (i) May propose ordinances, resolutions and proclamations that the City Council shall consider.

      (j) Shall perform such other duties as the City Council prescribes by ordinance.

      3.  The Mayor may exercise the right of veto upon all matters passed by the City Council, but has no power to exercise a line-item veto. To pass any matter receiving the Mayor’s veto requires a four-fifths vote of the City Council.

      4.  No resolution or contract requiring the payment of money approved by the City Council or any ordinance may go into force or have any effect until approved in writing by the Mayor or his or her authorized designee, unless passed over the Mayor’s veto. If the Mayor does not approve the resolution, contract or ordinance so submitted, the Mayor shall, within 5 days after the receipt thereof, return it to the City Clerk with his or her reasons in writing for not approving it. If the Mayor does not so return it, the resolution or contract thereupon goes into effect and the ordinance becomes a law, in like manner and with the same effect as if it had been approved by the Mayor.

      5.  Any of the duties set forth in:

      (a) Subsection 2 or 4, other than the duties set forth in paragraph (c) or (f) of subsection 2, may be delegated to the Mayor pro tempore by the Mayor administratively or in instances of abstention during an official meeting.

      (b) Paragraph (c) or (f) of subsection 2 may be delegated to the City Manager by the Mayor administratively.

      6.  The Mayor:

      (a) Must be voted upon by the registered voters of the City at large and shall serve for a term of 4 years.

      (b) Is entitled to receive a salary in an amount fixed by the City Council. The City Council shall not adopt an ordinance which increases or decreases the salary of the Mayor during the term for which he or she has been elected.

      7.  The City Council shall elect one of its members to be Mayor pro tempore. Such person shall:

      (a) Hold such office and title, without additional compensation, during the term for which he or she was elected.

      (b) Perform the duties of Mayor during the absence or disability of the Mayor.

      (c) Act as Mayor until the City Council appoints a Mayor, if the office of Mayor becomes vacant.

      Sec. 3.020  City Manager: Duties.

      1.  Except as otherwise provided in paragraph (b) of subsection 2 of section 3.010, the City Manager is the chief executive officer of the City and is responsible for the effective administration of the City Government.

      2.  The City Manager shall:

      (a) Ensure that all the general laws and ordinances of the City are enforced.

      (b) Administer and exercise supervision and control over all offices, departments and services of the City under the jurisdiction and control of the City Manager.

      (c) Except as otherwise provided in this Charter, appoint all heads or directors of departments of the City and all subordinate officers and employees, and may discipline and remove any such appointed officer or employee.

 


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ê2017 Statutes of Nevada, Page 1882 (Chapter 325, SB 56)ê

 

      (d) Make such recommendations to the Mayor and City Council as he or she deems appropriate concerning the operation, affairs and future needs of the City.

      (e) Attend all regular and special meetings of the City Council and may participate in the discussion of any matters pending before the City Council, but may not vote on any such matter.

      (f) Ensure that all terms or conditions imposed in favor of the City or the residents of the City in any contract, franchise, lease or permit are faithfully kept and performed, and upon obtaining knowledge of any violation thereof, shall notify the City Council of such a violation.

      (g) If authorized by the provisions of this Charter or an ordinance or resolution, sign all contracts, franchises, leases, permits or other documents that do not require approval of the City Council and execute on behalf of the City all contracts, franchises, leases, permits or other documents required to be executed by an officer of the City.

      (h) Keep the Mayor and City Council fully advised as to the operations, financial conditions and needs of the City.

      (i) Prepare and present an annual budget pursuant to the laws of this State.

      (j) Perform such other duties as may be prescribed by the City Council.

      3.  The salary of the City Manager must be set by the City Council.

      4.  The City Manager may appoint such clerical and administrative assistants as he or she may deem necessary.

      5.  The Mayor or a Council member may not be appointed as City Manager during the term for which he or she was elected or within 1 year after the expiration of his or her term.

      Sec. 3.030  City Manager: Removal.  The Mayor and City Council may vote to determine whether to remove the City Manager. The City Manager may be removed for any reason, subject to any employment agreement, upon receiving four votes for removal. Such removal is not subject to the ability of the Mayor to exercise the right of veto or the ability of the City Council to override any veto.

      Sec. 3.040  City Clerk: Duties.  The City Clerk shall:

      1.  Keep the corporate seal and all books, records and historical papers belonging to the City.

      2.  Attend all meetings of the City Council and keep an accurate journal of its proceedings, including a record of all ordinances, bylaws and resolutions passed or adopted by it. After approval at each meeting of the City Council, the City Clerk shall attest the journal after it has been signed by the Mayor.

      3.  Enter upon the journal the result of the vote of the City Council upon the passage of all ordinances and resolutions.

      4.  Perform such other duties as may be required by the City Manager.

      Sec. 3.050  City Attorney: Qualifications; duties.

      1.  The City Attorney must be a duly licensed member of the State Bar of Nevada.

      2.  The City Attorney is the chief legal officer of the City and shall:

      (a) Advise the City Council and all of the offices, departments and divisions of the City in all matters with respect to the affairs of the City;

      (b) Prosecute any violation of law occurring within the City of Mesquite that the Nevada Revised Statutes authorize a city to prosecute;

 


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ê2017 Statutes of Nevada, Page 1883 (Chapter 325, SB 56)ê

 

      (c) Determine whether the City should initiate any judicial or administrative proceedings; and

      (d) Perform such other duties as may be designated by the City Council or prescribed by ordinance.

      3.  The City Attorney may employ legal counsel on a contract or full-time basis as needed by the City.

      Sec. 3.060  City Attorney: Removal.  The Mayor and City Council may vote to determine whether to remove the City Attorney. The City Attorney may be removed for any reason, subject to any employment agreement, upon receiving four votes for removal. Such removal is not subject to the ability of the Mayor to exercise the right of veto or the ability of the City Council to override any veto.

      Sec. 3.070  County Assessor to be ex officio City Assessor; duties.

      1.  The County Assessor of Clark County is ex officio City Assessor of the City. The County Assessor shall perform such duties for the City without additional compensation.

      2.  Upon request of the ex officio City Assessor, the City Council may appoint and set the salary of a Deputy City Assessor to perform such duties relative to city assessments as may be deemed necessary.

      Sec. 3.080  Collection and disposition of money.

      1.  All fines, forfeitures or other money, except taxes collected or recovered by any employee of the City or other person pursuant to the provisions of this Charter or of any valid ordinance of the City, must be paid by the employee or person collecting or receiving them to the Director of Finance, who shall dispose of them in accordance with the ordinances, regulations and procedures established by the City Council.

      2.  The City Council, City Manager or City Attorney may by proper legal action collect all money, including taxes, which are due and unpaid to the City or any office thereof, and the City Council may pay from the General Fund all fees and expenses necessarily incurred by it in connection with the collection of such money.

      Sec. 3.090  Interference by City Council.  Except for the purpose of inquiry, the City Council and its members shall deal with employees solely through the City Manager or City Attorney, as applicable, or their designees. Neither the City Council nor any member thereof may give orders to any subordinate of the City Manager or City Attorney, either publicly or privately.

 

ARTICLE IV

 

Judicial Department

 

      Sec. 4.010  Municipal Court.

      1.  There is a Municipal Court of the City which consists of at least one department. Each department must be presided over by a Municipal Court Judge and has such power and jurisdiction as is prescribed in, and is, in all respects which are not inconsistent with this Charter, governed by, the provisions of chapter 5 of NRS.

      2.  The City Council may from time to time establish additional departments of the Municipal Court.

      3.  The respective departments of the Municipal Court must be numbered 1 through the appropriate Arabic number, as additional departments are approved by the City Council.

 


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ê2017 Statutes of Nevada, Page 1884 (Chapter 325, SB 56)ê

 

departments are approved by the City Council. A Municipal Court Judge must be appointed or elected, as applicable, for each department by number.

      4.  The Senior Municipal Court Judge is selected by a majority of the sitting judges for a term of 2 years. If no Municipal Court Judge receives a majority of the votes, the Senior Municipal Court Judge is the Municipal Court Judge who has continuously served as a Municipal Court Judge for the longest period.

      Sec. 4.020  Municipal Court: Appointment or election; terms of office; removal of Municipal Court Judge.

      1.  If the Municipal Court consists of only one department:

      (a) The Justice of the Peace for the Township of Mesquite shall be ex officio Municipal Court Judge unless the Mayor, with the advice and consent of the City Council, appoints a different person to serve as the Municipal Court Judge presiding over the department. No provision of this Charter or an ordinance may preclude the Justice of the Peace for the Township of Mesquite from also serving as the Municipal Court Judge presiding over the department.

      (b) The Mayor and City Council may vote to determine whether to remove the Municipal Court Judge. The Municipal Court Judge may be removed for any reason, subject to any employment agreement, upon receiving four votes for removal. Such removal is not subject to the ability of the Mayor to exercise the right of veto or the ability of the City Council to override any veto.

      2.  If the Municipal Court consists of more than one department:

      (a) Each Municipal Court Judge presiding over a department must be elected.

      (b) The term of office of each Municipal Court Judge must be staggered, with each judge serving a term of 6 years. Except as otherwise provided by law, there is no limit on the number of terms a Municipal Court Judge may serve.

      Sec. 4.030  Municipal Court: Qualifications of Municipal Court Judge; salary.

      1.  Each Municipal Court Judge must have been a resident of the territory which is established by the boundaries of the City for the 12 months immediately preceding the last day for seeking appointment for the office.

      2.  If the Municipal Court consists of only one department:

      (a) Unless the City Council passes an ordinance to the contrary, the Municipal Court Judge will serve on an as-needed basis.

      (b) The Municipal Court Judge must not be required to be a licensed member of the State Bar of Nevada or have any previous legal training.

      3.  If the City Council establishes a second or subsequent department of the Municipal Court pursuant to subsection 2 of section 4.010, each Municipal Court Judge shall devote his or her full time to the duties of his or her office and must be a duly licensed member, in good standing, of the State Bar of Nevada.

      4.  The salary of each Municipal Court Judge must be fixed by the City Council and be uniform for all departments in the Municipal Court. The salary may be increased during the terms for which the Judges are appointed or elected, applicable.

 


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ê2017 Statutes of Nevada, Page 1885 (Chapter 325, SB 56)ê

 

      5.  If the City Council establishes a second or subsequent department of the Municipal Court pursuant to subsection 2 of section 4.010, the department must not begin operating as a department of the Municipal Court until a qualified candidate is elected as the Municipal Court Judge who will preside over the department. Such a Municipal Court Judge must be elected during the next general municipal election following the establishment of such a department.

      Sec. 4.040  Disposition of fines.  All fines and forfeitures for the violation of ordinances must be paid to the Director of Finance.

 

ARTICLE V

 

Elections

 

      Sec. 5.010  Election for City Council.

      1.  Candidates for City Council must be elected at large and by seat. Each Council seat must be consecutively numbered 1 through 5. The number of each Council seat is for informational purposes only and the sequencing of such seats does not grant or denote any special authority or ability.

      2.  Upon passage and approval of this Charter, the incumbent Council members shall draw a number by lot to determine the number assigned to each Council seat. The number assigned to each Council seat will remain until such time as this Charter is amended to provide otherwise.

      3.  The term of office for each Council seat must be consistent with the term of office of the incumbent Council member assigned to that seat.

      4.  After each Council seat has been assigned a number, any candidate for City Council shall file by seat number.

      5.  If:

      (a) Not more than two candidates file for a seat, the names of the candidates must not be listed on the ballot for the primary municipal election and the candidates must advance directly to the general municipal election.

      (b) Three or more candidates file for a seat, the names of the candidates must be listed on the ballot for the primary municipal election.

      Sec. 5.020  Primary municipal election.

      1.  A primary municipal election must be held on the second Tuesday in June in each even-numbered year pursuant to NRS 293.175, as amended from time to time.

      2.  In a primary municipal election, if the number of votes a candidate receives is:

      (a) Equal to or greater than a majority of the number of voters participating in the primary election for that seat, that candidate must be declared elected and the name of the candidate must not be placed on the ballot for the general municipal election.

      (b) Less than a majority of the number of voters participating in the primary election for that seat, the names of the two candidates receiving the highest number of votes must be placed on the ballot for the general municipal election.

      3.  For the purposes of this section, a majority of the number of voters participating in a primary municipal election for a seat is determined as follows:

 


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      (a) If there is an even number of voters participating in the primary election for a seat, a majority of those voters is determined by dividing the number of voters in half and adding one.

      (b) If there is an odd number of voters participating in the primary election for a seat, a majority of those voters is determined by dividing the number of voters in half and rounding up to the nearest whole number.

      Sec. 5.030  General municipal election.  A general municipal election must be held in the City on the first Tuesday after the first Monday of November in each even-numbered year pursuant to NRS 293.12755, as amended from time to time.

      Sec. 5.040  Applicability of state election laws; elections under City Council control.

      1.  All elections held under this Charter are governed by the provisions of the election laws of this State, so far as those laws can be made applicable and are not inconsistent herewith.

      2.  The conduct of all municipal elections is under the control of the City Council.

      3.  The City Council shall by ordinance provide for the holding of a municipal election, appoint the necessary officers thereof and do all the things required to carry the election into effect as it considers desirable and consistent with law and this Charter.

      4.  Notwithstanding any other provision of this Charter, the City Council may enter into an interlocal agreement with another public entity to conduct municipal elections or any portion thereof.

      Sec. 5.050  Qualifications.  Every person who resides within the City and who is a legally registered voter of the City is entitled to vote at each municipal election, including, without limitation, primary, general or special elections.

      Sec. 5.060  Names on ballots.

      1.  The full names of all candidates, except those who have withdrawn, died or become ineligible, must be printed on the official ballots without party designation or symbol.

      2.  If two or more candidates have the same surname or surnames so similar as to be likely to cause confusion and:

      (a) None of the candidates is an incumbent, the middle names or middle initials, if any, of both candidates must be included in their names as printed on the ballot; or

      (b) One of the candidates is an incumbent, the name of the incumbent must be listed first and must be printed in bold type.

      Sec. 5.070  Ballots for ordinance and Charter amendments.  An ordinance or Charter amendment to be voted on in the City must be presented for voting by ballot title. The ballot title of a measure may differ from its legal title and must be a clear, concise statement describing the substance of the measure without argument or prejudice. Below the ballot title must appear the following question: “Shall the above described (ordinance) (amendment) be adopted?” The ballot or voting machine or device must be so marked as to indicate clearly in what manner the voter may cast his or her vote, either for or against the ordinance or amendment.

      Sec. 5.080  Availability of lists of registered voters.  Any person who desires a copy of a list of registered voters in the City may obtain a copy pursuant to the provisions of NRS 293.440.

 


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      Sec. 5.090  Voting machines.  The City Council may provide for the use of mechanical or other devices for voting or counting the votes not inconsistent with law or regulations of the Secretary of State.

      Sec. 5.100  Election returns; canvass; certificates of election; entry of officers upon duties; tie vote procedure.

      1.  The election returns from any special, primary or general municipal election must be filed with the City Clerk, who shall immediately place the returns in a safe or vault, and no person may handle, inspect or in any manner interfere with the returns until canvassed by the City Council.

      2.  The City Council shall meet at any time within 10 days after any election and canvass the returns and declare the result. The election returns must then be sealed and kept by the City Clerk for 6 months. No person may have access to the returns except on order of a court of competent jurisdiction or by order of the City Council.

      3.  The City Clerk, under his or her hand and official seal, shall issue to each person elected a certificate of election. Except as otherwise provided in section 1.060, the officers so elected shall qualify and enter upon the discharge of their respective duties at the first meeting of the City Council held in December of the year of the general municipal election.

      4.  If any election results in a tie, the City Council shall summon the candidates who received the tie vote and determine the tie by lot. The City Clerk shall then issue to the winner a certificate of election.

      Sec. 5.110  Contest of election.  A contested election for any municipal office must be determined according to the law of the State regulating proceedings in contested elections in political subdivisions.

 

ARTICLE VI

 

Local Improvements

 

      Sec. 6.010  Local improvement law.  Except as otherwise provided in subsection 3 of section 2.280 and section 2.290, the City Council, on behalf of the City and in its name, without any election, may from time to time acquire, improve, equip, operate and maintain, convert to or authorize:

      1.  Curb and gutter projects;

      2.  Drainage projects;

      3.  Off-street parking projects;

      4.  Overpass projects;

      5.  Park or recreation projects;

      6.  Sanitary sewer projects;

      7.  Security walls;

      8.  Sidewalk projects;

      9.  Storm sewer projects;

      10.  Street projects;

      11.  Telephone projects;

      12.  Transportation projects;

      13.  Underground and aboveground electric and communication facilities;

      14.  Underpass projects;

      15.  Water projects;

 


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      16.  Such other utility projects as are deemed necessary by the City Council; and

      17.  Any combination thereof.

      Sec. 6.020  Local improvement law: Collateral powers.  The City Council on behalf of the City for the purpose of defraying all the costs of acquiring, improving or converting to any project authorized by section 6.010, or any portion of the cost thereof not to be defrayed with money otherwise available therefor, is vested with the powers granted to municipalities by chapters 271 and 704A of NRS, as amended from time to time.

 

ARTICLE VII

 

Local Bonds and Franchises

 

      Sec. 7.010  Debt limit.

      1.  The City shall not incur an indebtedness in excess of 25 percent of the total assessed valuation of the taxable property within the boundaries of the City.

      2.  In determining any debt limitation under this section, the following must be counted as indebtedness:

      (a) Any liabilities of the City that are due in more than 1 year, including, without limitation, revenue bonds, general obligation bonds and short-term securities.

      (b) Any outstanding personnel-related liabilities.

      (c) Any special assessment bonds, if the full faith and credit of the City is pledged to the payment thereof.

      (d) Any other liabilities that are identified as part of the annual audit of the City and determined by the Director of Finance to be appropriate to include as indebtedness.

      3.  In determining any debt limitation under this section, the following must not be counted as indebtedness:

      (a) Any special assessment bonds if the full faith and credit of the City is not pledged to the payment thereof.

      (b) Any liabilities of the City due within 1 year that are accounted for within the budget for the current fiscal year.

      Sec. 7.020  Acquisition, operation of municipal utilities.  Except as otherwise provided in subsection 3 of section 2.280 and section 2.290, the City may, in the manner and for the purposes provided in this Charter and the Nevada Revised Statutes as they apply to cities, grant franchises and acquire in any manner any public utility, and hold, manage and operate it either alone or jointly, with any level of government or instrumentality or subdivision thereof.

      Sec. 7.030  Borrowing money.

      1.  Subject to the limitations imposed by this article, the City may borrow money for any corporate purpose, including, without limitation, any purpose authorized by this Charter or by the Nevada Revised Statutes for a city, and for such purpose may issue bonds or other securities. The Local Government Securities Law, as amended from time to time, applies to all securities so issued except for securities issued under section 6.020.

 


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      2.  Any property tax levied to pay the principal of or interest on such indebtedness must be levied upon all taxable property within the City as provided in NRS 350.590 to 350.602, inclusive.

      3.  Any ordinance pertaining to the sale or issuance of bonds or other securities, including, without limitation, securities issued under section 6.020, may be adopted in the same manner as is provided for cases of emergency. A declaration by the City Council in any ordinance that it is of this kind is conclusive in the absence of fraud or gross abuse of discretion.

 

ARTICLE VIII

 

Trusts for Furtherance of Public Functions

 

      Sec. 8.010  Trusts for furtherance of public functions: Authorization to create; purposes; eligible beneficiaries; power of beneficiary to lease trust property.

      1.  Express trusts may be created in real or personal property, or either or both, or in any estate or interest in either or both, with the City as the beneficiary thereof, and the purpose thereof may be the furtherance, or the providing of funds for the furtherance, of any authorized or proper function of the beneficiary, but no funds of the beneficiary derived from sources other than the trust property, or the operation thereof, may be charged with or expended for the execution of the trust, except by express action of the legislative authority of the beneficiary first had.

      2.  The officers or any other governmental agencies or authorities having the custody, management or control of any property, real or personal or both, of the beneficiary of such trust, or of such a proposed trust, which property is necessary for the execution of the trust purposes, are hereby authorized and empowered to lease such property for such purposes, after the acceptance of the beneficial interest therein by the beneficiary as provided in this article, or conditioned upon such acceptance.

      Sec. 8.020  Creation by written instrument; execution, recording of trust instrument; acceptance by beneficiary creates contract between State, grantor; duration of trust.

      1.  Such trusts may be created by written instruments, or by will. A written instrument must be subscribed by the grantor or grantors and duly acknowledged as conveyances of real property are acknowledged. Before the same becomes effective, the beneficial interest therein must be accepted by the governing body of the beneficiary, which power and authority of acceptance is hereby conferred upon the City Council. Thereupon the instrument or will, together with the written acceptance of the beneficial interest endorsed thereon, must be recorded in the Office of the County Recorder of each county in which is situated any real property, or any interest therein, belonging to the trust, as well as in the county where the trust property is located or its principal operations are conducted.

      2.  Upon the acceptance of the beneficial interest by the beneficiary as authorized in subsection 1, the same must be and constitute a binding contract between the State of Nevada and the grantor or grantors, or the executor of the estate of the testator, for the acceptance of the beneficial interest in the trust property by the designated beneficiary and the application of the proceeds of the trust property and its operation for the purposes and in accordance with the stipulations specified by the trustor or trustors.

 


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      3.  Such trusts have duration for the term of duration of the beneficiary, or such shorter length of time as is specified in the instrument or will creating the trust.

      Sec. 8.030  Trustees: Appointment; succession, powers; duties, terms, compensation controlled by trust instrument.

      1.  The instrument or will creating such trust may provide for the appointment, succession, powers, duties, term and compensation of the trustee or trustees, and in all such respects the terms of the instrument or will are controlling, except as otherwise provided in subsections 2 and 3. If the instrument or will makes no provision in regard to any of the foregoing, then the general laws of the State control as to such omission or omissions.

      2.  All meetings of the trustees must be open to the public to the same extent as required by chapter 241 of NRS for state and local agencies. If the trustee is a partnership, corporation or banking association, this requirement applies to that part of every meeting of the partners or directors at which trust affairs are discussed.

      3.  All records of the trust are public records and must be kept in a place which is identified by documents recorded in the Office of the County Recorder of each county in which the instrument creating the trust is recorded.

      Sec. 8.040  Trustees: Eligibility and status; standard of care; exemption from personal liability.

      1.  The trustee or trustees under such an instrument or will may be two or more natural persons or a partnership, corporation, community foundation, national banking association or state banking association selected by the City Council, and such trustee or trustees must be an agency of the State and the regularly constituted authority of the beneficiary for the performance of the functions for which the trust has been created.

      2.  The provisions of NRS 164.700 to 164.775, inclusive, relating to the standard of care for a trustee in investing and managing trust property apply to the trustee or trustees of a trust created by a written instrument or will pursuant to this article.

      3.  No trustee or beneficiary may be charged personally with any liability whatsoever by reason of any act or omission committed or suffered in the performance of such trust or in the operation of the trust property, but any act, liability for any omission or obligation of a trustee or trustees, in the execution of such trust, or in the operation of the trust property, extends to the whole of the trust estate, or so much thereof as may be necessary to discharge such liability or obligation, and not otherwise.

      Sec. 8.050  Annual audit of trust funds, accounts, fiscal affairs: Requirements; distribution of copies; expenses.

      1.  The trustee or trustees of every trust created for the benefit and furtherance of any public function with the City as the beneficiary thereof shall cause an audit to be made of the funds, accounts and fiscal affairs of such trust, such audit to be ordered within 30 days after the close of each fiscal year of the trust.

      2.  The audits required by subsection 1 must be certified with the unqualified opinion of a certified public accountant or a public accountant notwithstanding any lesser requirement by any instrument under which the trust may have covenanted for an audit to be made or furnished. One copy of the annual audit must be filed with the Legislative Auditor of the Legislative Counsel Bureau and one copy with each beneficiary of the trust not later than 90 days following the close of each fiscal year of the trust.

 


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Legislative Counsel Bureau and one copy with each beneficiary of the trust not later than 90 days following the close of each fiscal year of the trust.

      3.  If a copy of the required audit is not filed with the Legislative Auditor of the Legislative Counsel Bureau within the time provided, the Legislative Auditor is authorized to employ, at the cost and expense of the trust, a certified public accountant or a public accountant to make the required audit.

      4.  The necessary expense of such audits, including the cost of typing, printing and binding, must be paid from funds of the trust.

      Sec. 8.060  Franchise not required for acquisition, ownership or operation of trust property.  No franchise is required for the acquisition, ownership or operation of any properties of a trust created for the benefit and furtherance of any public function.

      Sec. 8.070  Approval of certain contracts and resolutions required.  The trustees shall not enter into contracts for the acquisition or construction of buildings or public improvements or for the acquisition or disposal of trust properties by purchase, lease, gift, bequest or devise or any other lawful means until such contract is first approved by the City Council by ordinance. The City Council shall so approve the resolution providing for the issuance of bonds or other securities to be issued by the trustees and proposed terms of sale thereof, but is not required to approve the award of such bonds to the purchaser thereof if such bonds are sold in compliance with the resolution of issuance and terms of sale.

      Sec. 8.080  Approval of financing method, underwriters by State Board of Finance.  The State Board of Finance shall first review and approve the method of finance proposed by any trust created pursuant to the former provisions of NRS 242B.010 to 242B.100, inclusive, or the provisions of this article, and must approve the underwriter or financial institution preparing and offering the proposed issue for sale, as to the financial responsibility of such underwriter or financial institution, before such issue may be offered or sold.

      Sec. 8.090  Exemption from securities laws.

      1.  The provisions of the State Securities Law, the Local Government Securities Law, the University Securities Law, or any other general, special or local statute relating to the issuance of public securities or other debt obligations do not apply to a trust created for the benefit and furtherance of any public function.

      2.  All bonds issued by any trust created for the benefit and furtherance of any public function must:

      (a) Be sold at public or private sale, as determined by the trustees and approved by the City Council. If the bonds are offered at public sale, but no satisfactory bids are received from responsible bidders at the public sale, the bonds may be sold at private sale.

      (b) Be secured:

             (1) By property, real or personal or both, having a market value equal to at least twice the principal amount of the bonds sold; or

             (2) By gross revenues from an existing revenue producing facility equal to at least one and one-half times the average annual debt service payable on the bonds.

      Sec. 8.100  Competitive bidding not required.  Except as otherwise provided in section 8.090, no statute, general, special or local, requiring competitive bidding applies to a trust created for the benefit and furtherance of a public function.

 


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      Sec. 8.110  Rejection of contribution to trust.  A trustee may reject any contribution to a trust created for the benefit and furtherance of a public function that the trustee deems not to be in the best interest of the trust. If the trustee rejects any contribution, the trustee shall provide notice of the rejection in writing.

      Sec. 8.120  Termination of trust.  Any trust created for the benefit and furtherance of a public function may be terminated by agreement of the trustee, or if there is more than one, then all of the trustees, and the governing body of the beneficiary, with the approval of the Governor of the State of Nevada, but such trust must not be terminated while there exists outstanding any contractual obligations chargeable against the trust property, which, by reason of such termination, might become an obligation of the beneficiary of such trust.

 

ARTICLE IX

 

Revenue

 

      Sec. 9.010  Municipal taxes.

      1.  The City Council shall annually, at the time prescribed by law for levying taxes for State and county purposes, levy a tax at a rate allowable under applicable provisions of the Nevada Revised Statutes upon the assessed value of all real and personal property within the City except as provided in the Local Government Securities Law and the Consolidated Local Improvements Law, as amended from time to time. The taxes so levied must be collected at the same time and in the same manner and by the same officers, exercising the same functions, as prescribed in the laws of the State of Nevada for collection of state and county taxes. The revenue laws of the State, in every respect not inconsistent with the provisions of this Charter, are applicable to the levying, assessing and collecting of the municipal taxes.

      2.  In the matter of equalization of assessments, the rights of the City and the inhabitants thereof must be protected in the same manner and to the same extent by the action of the county board of equalization as are the State and county.

      3.  All forms and blanks used in levying, assessing and collecting the revenues of the State and counties must, with such alterations or additions as may be necessary, be used in levying, assessing and collecting the revenues of the City. The City Council shall enact all such ordinances as it may deem necessary and not inconsistent with this Charter and the laws of the State for the prompt, convenient and economical collecting of the revenue.

      Sec. 9.020  Revenue ordinances.  The City Council may pass and enact all ordinances necessary to carry into effect the revenue laws in the City and to enlarge, fix and determine the powers and duties of all officers in relation thereto.

 


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ARTICLE X

 

Miscellaneous Provisions

 

      Sec. 10.010  Severability of provisions.  If any portion of this Charter is held to be unconstitutional or invalid for any reason by the decision of any court of competent jurisdiction, such decision does not affect the validity of the remaining portion of this Charter. The Legislature hereby declares that it would have passed this Charter and each portion thereof, irrespective of the portion which may be deemed unconstitutional or otherwise invalid.

      Sec. 10.020  Effect of enactment of Charter.

      1.  All rights and property of every kind and description which were vested in the City before the enactment of this Charter are vested in the City on July 1, 2017. No right or liability, either in favor of or against the City existing at the time of becoming incorporated under this Charter, and no action or prosecution is affected by such change, but it stands and progresses as if no change had been made.

      2.  Whenever a different remedy is given by this Charter, which may properly be made applicable to any right existing at the time of the City so becoming incorporated under this Charter, such remedy is cumulative to the remedy before provided, and used accordingly.

      3.  All ordinances and resolutions in effect in the City before July 1, 2017, unless in conflict with the provisions of this Charter, continue in full force and effect until amended or repealed.

      4.  The enactment of this Charter does not effect any change in the legal identity of the City.

      5.  The enactment of this Charter must not be construed to repeal or in any way affect or modify:

      (a) Any special, local or temporary law.

      (b) Any law or ordinance making an appropriation.

      (c) Any ordinance affecting any bond issue or by which any bond issue may have been authorized.

      (d) The running of the statute of limitations in force at the time this Charter becomes effective.

      (e) Any bond of any public officer.

      Sec. 2.  This act becomes effective:

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

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

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CHAPTER 326, SB 71

Senate Bill No. 71–Committee on Health and Human Services

 

CHAPTER 326

 

[Approved: June 3, 2017]

 

AN ACT relating to health care; making certain provisions relating to the licensing and regulation of a medical facility applicable to a program of hospice care; revising the definition of the term “psychiatric hospital”; requiring persons who operate or work for psychiatric residential treatment facilities and certain psychiatric hospitals to undergo a criminal background check; revising certain administrative penalties; authorizing the Division of Public and Behavioral Health of the Department of Health and Human Services to take certain actions concerning a facility required by regulation of the State Board of Health to be licensed; amending the procedure by which the Division may impose a penalty or seek an injunction against certain persons; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law requires: (1) each medical facility to be licensed by the Division of Public and Behavioral Health of the Department of Health and Human Services according to standards adopted by the State Board of Health except in certain circumstances; and (2) each program of hospice care to be licensed by the State Board of Health. (NRS 449.030, 449.0302) Section 1 of this bill includes a program of hospice care in the definition of “medical facility” for the purposes of the provisions relating to licensing, and section 3 of this bill removes the separate licensing requirement for a program of hospice care. Sections 1 and 3 therefore provide for a program of hospice care to be licensed and regulated in the same manner as a medical facility. Sections 4-8, 13, 14, 17 and 18 of this bill make conforming changes.

      Section 2 of this bill amends the definition of “psychiatric hospital” to remove the requirement that a hospital for the diagnosis, care and treatment of mental illness must provide residential care in order to be considered a psychiatric hospital.

      Existing law: (1) requires persons who apply for a license to operate certain facilities, hospitals, agencies, programs or homes and persons employed to work for such a facility, hospital, agency, program or home to undergo a criminal background check; and (2) prohibits a person from being licensed to operate or employed to work for such a facility, hospital, agency, program or home if he or she has been convicted of certain crimes. (NRS 449.089, 449.119-449.125, 449.174) Sections 8, 9-12 and 15 of this bill provide that persons who apply for a license to operate a psychiatric hospital that provides inpatient services to children or a psychiatric residential treatment facility and persons employed to work at such a psychiatric hospital or a psychiatric residential treatment facility are subject to those provisions. Sections 1.6, 1.9, 3-8, 13, 17 and 18 of this bill make conforming changes.

      Existing law authorizes the State Board of Health to adopt regulations requiring the licensing of facilities that provide medical care or treatment that are not required by statute to be licensed. (NRS 449.0303) Section 4 of this bill clarifies that such facilities are not required to be licensed if they are operated by the United States Government. Sections 7.3, 7.6, 8.5, 12.5 and 14 of this bill provide for the inspection of, issuance of a provisional license to and imposition of discipline against such a facility under the same circumstances as a medical facility or facility for the dependent. Section 14.6 of this bill authorizes the Division of Public and Behavioral Health of the Department of Health and Human Services to take control of and ensure the safety of the medical records of such a facility if the facility ceases to operate.

 


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      Existing law: (1) authorizes the Division to impose a maximum administrative penalty of $1,000 per day against a medical facility or facility for the dependent that violates certain provisions of law; and (2) establishes the minimum and maximum authorized amounts of such a penalty for a violation relating to the health or safety of a patient. (NRS 449.163) Section 14 of this bill: (1) additionally authorizes the imposition of administrative penalties against a facility that is required by the regulations of the Board to be licensed; (2) increases the maximum civil penalty imposed for any violation to $5,000 per day; and (3) removes the minimum and maximum penalty for a violation relating to the health or safety of a patient. The general penalty provisions would apply to any violation relating to the health and safety of a patient. Section 14.3 of this bill requires the Board to adopt regulations establishing an administrative penalty to be imposed when a facility commits a violation that causes harm or a risk of harm to more than one person.

      Existing law prescribes the procedure by which the Division may impose a civil penalty or seek an injunction against a person operating a medical facility or a facility for the dependent without a license and the amount of a civil penalty that may be imposed against such a person. (NRS 449.210, 449.220) Existing law also prescribes a different procedure by which the Division may impose a civil penalty or seek an injunction against a person operating a facility for refractive surgery without a license and the amount of a civil penalty that may be imposed against such a person. (NRS 449.24897) Sections 16 and 19 of this bill standardize the procedure by which the Division may seek an injunction and the imposition of a civil penalty against a person operating a medical facility, including a facility for refractive surgery, a facility for the dependent or a facility that is required by the regulations of the Board to be licensed without a license and the amount of the civil penalty that may be imposed against such a person. Section 16 also eliminates certain uses for money collected from persons found to have operated a medical facility, facility for the dependent or a facility that is required by the regulations of the Board to be licensed without a 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. Chapter 449 of NRS is hereby amended by adding thereto the provisions set forth as sections 1.3, 1.6 and 1.9 of this act.

      Sec. 1.3. As used in NRS 449.030 to 449.240, inclusive, unless the context otherwise requires, “medical facility” has the meaning ascribed to it in NRS 449.0151 and includes a program of hospice care described in NRS 449.196.

      Sec. 1.6. As used in NRS 449.119 to 449.125, inclusive, and section 1.9 of this act, unless the context otherwise requires, the words and terms defined in NRS 449.119 and section 1.9 of this act have the meanings ascribed to them in those sections.

      Sec. 1.9. “Psychiatric residential treatment facility” means a facility, other than a hospital, that provides a range of psychiatric services to treat residents under the age of 21 years on an inpatient basis under the direction of a physician.

      Sec. 2.  NRS 449.0165 is hereby amended to read as follows:

      449.0165  “Psychiatric hospital” means a hospital for the diagnosis, care and treatment of mental illness which provides 24-hour [residential] care.

      Sec. 3. NRS 449.030 is hereby amended to read as follows:

      449.030  [1.]  Except as otherwise provided in NRS 449.03013 and 449.03015, no person, state or local government or agency thereof may operate or maintain in this State any medical facility or facility for the dependent without first obtaining a license therefor as provided in NRS 449.030 to 449.2428, inclusive [.

 


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operate or maintain in this State any medical facility or facility for the dependent without first obtaining a license therefor as provided in NRS 449.030 to 449.2428, inclusive [.

      2.  Unless licensed as a facility for hospice care, a person, state or local government or agency thereof shall not operate a program of hospice care without first obtaining a license for the program from the Board.] , and sections 1.3, 1.6 and 1.9 of this act.

      Sec. 4. NRS 449.0301 is hereby amended to read as follows:

      449.0301  The provisions of NRS 449.030 to 449.2428, inclusive, and sections 1.3, 1.6 and 1.9 of this act do not apply to:

      1.  Any facility conducted by and for the adherents of any church or religious denomination for the purpose of providing facilities for the care and treatment of the sick who depend solely upon spiritual means through prayer for healing in the practice of the religion of the church or denomination, except that such a facility shall comply with all regulations relative to sanitation and safety applicable to other facilities of a similar category.

      2.  Foster homes as defined in NRS 424.014.

      3.  Any medical facility , [or] facility for the dependent or facility which is otherwise required by the regulations adopted by the Board pursuant to NRS 449.0303 to be licensed that is operated and maintained by the United States Government or an agency thereof.

      Sec. 5. NRS 449.0302 is hereby amended to read as follows:

      449.0302  1.  The Board shall adopt:

      (a) Licensing standards for each class of medical facility or facility for the dependent covered by NRS 449.030 to 449.2428, inclusive, [and for programs of hospice care.] and sections 1.3, 1.6 and 1.9 of this act.

      (b) Regulations governing the licensing of such facilities . [and programs.]

      (c) Regulations governing the procedure and standards for granting an extension of the time for which a natural person may provide certain care in his or her home without being considered a residential facility for groups pursuant to NRS 449.017. The regulations must require that such grants are effective only if made in writing.

      (d) Regulations establishing a procedure for the indemnification by the Division, from the amount of any surety bond or other obligation filed or deposited by a facility for refractive surgery pursuant to NRS 449.068 or 449.069, of a patient of the facility who has sustained any damages as a result of the bankruptcy of or any breach of contract by the facility.

      (e) Any other regulations as it deems necessary or convenient to carry out the provisions of NRS 449.030 to 449.2428, inclusive [.] , and sections 1.3, 1.6 and 1.9 of this act.

      2.  The Board shall adopt separate regulations governing the licensing and operation of:

      (a) Facilities for the care of adults during the day; and

      (b) Residential facilities for groups,

Ê which provide care to persons with Alzheimer’s disease.

      3.  The Board shall adopt separate regulations for:

      (a) The licensure of rural hospitals which take into consideration the unique problems of operating such a facility in a rural area.

      (b) The licensure of facilities for refractive surgery which take into consideration the unique factors of operating such a facility.

 


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      (c) The licensure of mobile units which take into consideration the unique factors of operating a facility that is not in a fixed location.

      4.  The Board shall require that the practices and policies of each medical facility or facility for the dependent provide adequately for the protection of the health, safety and physical, moral and mental well-being of each person accommodated in the facility.

      5.  In addition to the training requirements prescribed pursuant to NRS 449.093, the Board shall establish minimum qualifications for administrators and employees of residential facilities for groups. In establishing the qualifications, the Board shall consider the related standards set by nationally recognized organizations which accredit such facilities.

      6.  The Board shall adopt separate regulations regarding the assistance which may be given pursuant to NRS 453.375 and 454.213 to an ultimate user of controlled substances or dangerous drugs by employees of residential facilities for groups. The regulations must require at least the following conditions before such assistance may be given:

      (a) The ultimate user’s physical and mental condition is stable and is following a predictable course.

      (b) The amount of the medication prescribed is at a maintenance level and does not require a daily assessment.

      (c) A written plan of care by a physician or registered nurse has been established that:

             (1) Addresses possession and assistance in the administration of the medication; and

             (2) Includes a plan, which has been prepared under the supervision of a registered nurse or licensed pharmacist, for emergency intervention if an adverse condition results.

      (d) The prescribed medication is not administered by injection or intravenously.

      (e) The employee has successfully completed training and examination approved by the Division regarding the authorized manner of assistance.

      7.  The Board shall adopt separate regulations governing the licensing and operation of residential facilities for groups which provide assisted living services. The Board shall not allow the licensing of a facility as a residential facility for groups which provides assisted living services and a residential facility for groups shall not claim that it provides “assisted living services” unless:

      (a) Before authorizing a person to move into the facility, the facility makes a full written disclosure to the person regarding what services of personalized care will be available to the person and the amount that will be charged for those services throughout the resident’s stay at the facility.

      (b) The residents of the facility reside in their own living units which:

             (1) Except as otherwise provided in subsection 8, contain toilet facilities;

             (2) Contain a sleeping area or bedroom; and

             (3) Are shared with another occupant only upon consent of both occupants.

      (c) The facility provides personalized care to the residents of the facility and the general approach to operating the facility incorporates these core principles:

 


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             (1) The facility is designed to create a residential environment that actively supports and promotes each resident’s quality of life and right to privacy;

             (2) The facility is committed to offering high-quality supportive services that are developed by the facility in collaboration with the resident to meet the resident’s individual needs;

             (3) The facility provides a variety of creative and innovative services that emphasize the particular needs of each individual resident and the resident’s personal choice of lifestyle;

             (4) The operation of the facility and its interaction with its residents supports, to the maximum extent possible, each resident’s need for autonomy and the right to make decisions regarding his or her own life;

             (5) The operation of the facility is designed to foster a social climate that allows the resident to develop and maintain personal relationships with fellow residents and with persons in the general community;

             (6) The facility is designed to minimize and is operated in a manner which minimizes the need for its residents to move out of the facility as their respective physical and mental conditions change over time; and

             (7) The facility is operated in such a manner as to foster a culture that provides a high-quality environment for the residents, their families, the staff, any volunteers and the community at large.

      8.  The Division may grant an exception from the requirement of subparagraph (1) of paragraph (b) of subsection 7 to a facility which is licensed as a residential facility for groups on or before July 1, 2005, and which is authorized to have 10 or fewer beds and was originally constructed as a single-family dwelling if the Division finds that:

      (a) Strict application of that requirement would result in economic hardship to the facility requesting the exception; and

      (b) The exception, if granted, would not:

             (1) Cause substantial detriment to the health or welfare of any resident of the facility;

             (2) Result in more than two residents sharing a toilet facility; or

             (3) Otherwise impair substantially the purpose of that requirement.

      9.  The Board shall, if it determines necessary, adopt regulations and requirements to ensure that each residential facility for groups and its staff are prepared to respond to an emergency, including, without limitation:

      (a) The adoption of plans to respond to a natural disaster and other types of emergency situations, including, without limitation, an emergency involving fire;

      (b) The adoption of plans to provide for the evacuation of a residential facility for groups in an emergency, including, without limitation, plans to ensure that nonambulatory patients may be evacuated;

      (c) Educating the residents of residential facilities for groups concerning the plans adopted pursuant to paragraphs (a) and (b); and

      (d) Posting the plans or a summary of the plans adopted pursuant to paragraphs (a) and (b) in a conspicuous place in each residential facility for groups.

      10.  The regulations governing the licensing and operation of facilities for transitional living for released offenders must provide for the licensure of at least three different types of facilities, including, without limitation:

 


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      (a) Facilities that only provide a housing and living environment;

      (b) Facilities that provide or arrange for the provision of supportive services for residents of the facility to assist the residents with reintegration into the community, in addition to providing a housing and living environment; and

      (c) Facilities that provide or arrange for the provision of alcohol and drug abuse programs, in addition to providing a housing and living environment and providing or arranging for the provision of other supportive services.

Ê The regulations must provide that if a facility was originally constructed as a single-family dwelling, the facility must not be authorized for more than eight beds.

      11.  As used in this section, “living unit” means an individual private accommodation designated for a resident within the facility.

      Sec. 6. NRS 449.0305 is hereby amended to read as follows:

      449.0305  1.  Except as otherwise provided in subsection 5, a person must obtain a license from the Board to operate a business that provides referrals to residential facilities for groups.

      2.  The Board shall adopt:

      (a) Standards for the licensing of businesses that provide referrals to residential facilities for groups;

      (b) Standards relating to the fees charged by such businesses;

      (c) Regulations governing the licensing of such businesses; and

      (d) Regulations establishing requirements for training the employees of such businesses.

      3.  A licensed nurse, social worker, physician or hospital, or a provider of geriatric care who is licensed as a nurse or social worker, may provide referrals to residential facilities for groups through a business that is licensed pursuant to this section. The Board may, by regulation, authorize a public guardian or any other person it determines appropriate to provide referrals to residential facilities for groups through a business that is licensed pursuant to this section.

      4.  A business that is licensed pursuant to this section or an employee of such a business shall not:

      (a) Refer a person to a residential facility for groups that is not licensed.

      (b) Refer a person to a residential facility for groups if the business or its employee knows or reasonably should know that the facility, or the services provided by the facility, are not appropriate for the condition of the person being referred.

      (c) Refer a person to a residential facility for groups that is owned by the same person who owns the business.

Ê A person who violates the provisions of this subsection is liable for a civil penalty to be recovered by the Attorney General in the name of the Board for the first offense of not more than $10,000 and for a second or subsequent offense of not less than $10,000 nor more than $20,000. Unless otherwise required by federal law, the Board shall deposit all civil penalties collected pursuant to this section into a separate account in the State General Fund to be used to administer and carry out the provisions of NRS 449.001 to 449.430, inclusive, and sections 1.3, 1.6 and 1.9 of this act and 449.435 to 449.965, inclusive, and to protect the health, safety, well-being and property of the patients and residents of facilities in accordance with applicable state and federal standards.

 


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      5.  This section does not apply to a medical facility that is licensed pursuant to NRS 449.030 to 449.2428, inclusive, and sections 1.3, 1.6 and 1.9 of this act on October 1, 1999.

      Sec. 7. NRS 449.0306 is hereby amended to read as follows:

      449.0306  1.  Money received from licensing medical facilities and facilities for the dependent must be forwarded to the State Treasurer for deposit in the State General Fund.

      2.  The Division shall enforce the provisions of NRS 449.030 to 449.245, inclusive, and sections 1.3, 1.6 and 1.9 of this act, and may incur any necessary expenses not in excess of money appropriated for that purpose by the State or received from the Federal Government.

      Sec. 7.3. NRS 449.0307 is hereby amended to read as follows:

      449.0307  The Division may:

      1.  Upon receipt of an application for a license, conduct an investigation into the premises, facilities, qualifications of personnel, methods of operation, policies and purposes of any person proposing to engage in the operation of a medical facility , [or] a facility for the dependent [.] or facility which is required by the regulations adopted by the Board pursuant to NRS 449.0303 to be licensed. The facility is subject to inspection and approval as to standards for safety from fire, on behalf of the Division, by the State Fire Marshal.

      2.  Upon receipt of a complaint against a medical facility , [or] facility for the dependent [,] or facility which is required by the regulations adopted by the Board pursuant to NRS 449.0303 to be licensed, except for a complaint concerning the cost of services, conduct an investigation into the premises, facilities, qualifications of personnel, methods of operation, policies, procedures and records of that facility or any other medical facility , [or] facility for the dependent or facility which is required by the regulations adopted by the Board pursuant to NRS 449.0303 to be licensed which may have information pertinent to the complaint.

      3.  Employ such professional, technical and clerical assistance as it deems necessary to carry out the provisions of NRS 449.030 to 449.245, inclusive [.] , and sections 1.3, 1.6 and 1.9 of this act.

      Sec. 7.6. NRS 449.0308 is hereby amended to read as follows:

      449.0308  1.  Except as otherwise provided in this section, the Division may charge and collect from a medical facility , [or] facility for the dependent or facility which is required by the regulations adopted by the Board pursuant to NRS 449.0303 to be licensed or a person who operates such a facility without a license issued by the Division the actual costs incurred by the Division for the enforcement of the provisions of NRS 449.030 to 449.2428, inclusive, and sections 1.3, 1.6 and 1.9 of this act including, without limitation, the actual cost of conducting an inspection or investigation of the facility.

      2.  The Division shall not charge and collect the actual cost for enforcement pursuant to subsection 1 if the enforcement activity is:

      (a) Related to the issuance or renewal of a license for which the Board charges a fee pursuant to NRS 449.050 or 449.089; or

      (b) Conducted pursuant to an agreement with the Federal Government which has appropriated money for that purpose.

 

 


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      3.  Any money collected pursuant to subsection 1 may be used by the Division to administer and carry out the provisions of NRS 449.030 to 449.2428, inclusive, and sections 1.3, 1.6 and 1.9 of this act and the regulations adopted pursuant thereto.

      Sec. 8. NRS 449.089 is hereby amended to read as follows:

      449.089  1.  Each license issued pursuant to NRS 449.030 to 449.2428, inclusive, and sections 1.3, 1.6 and 1.9 of this act expires on December 31 following its issuance and is renewable for 1 year upon reapplication and payment of all fees required pursuant to NRS 449.050 unless the Division finds, after an investigation, that the facility has not:

      (a) Satisfactorily complied with the provisions of NRS 449.030 to 449.2428, inclusive, and sections 1.3, 1.6 and 1.9 of this act or the standards and regulations adopted by the Board;

      (b) Obtained the approval of the Director of the Department of Health and Human Services before undertaking a project, if such approval is required by NRS 439A.100; or

      (c) Conformed to all applicable local zoning regulations.

      2.  Each reapplication for an agency to provide personal care services in the home, an agency to provide nursing in the home, a community health worker pool, a facility for intermediate care, a facility for skilled nursing, a hospital described in 42 U.S.C. § 1395ww(d)(1)(B)(iv) which accepts payment through Medicare, a psychiatric hospital that provides inpatient services to children, a psychiatric residential treatment facility, a residential facility for groups, a program of hospice care, a home for individual residential care, a facility for the care of adults during the day, a facility for hospice care, a nursing pool, a peer support recovery organization, the distinct part of a hospital which meets the requirements of a skilled nursing facility or nursing facility pursuant to 42 C.F.R. § 483.5(b)(2), a hospital that provides swing-bed services as described in 42 C.F.R. § [482.66] 482.58 or, if residential services are provided to children, a medical facility or facility for the treatment of abuse of alcohol or drugs must include, without limitation, a statement that the facility, hospital, agency, program, pool, organization or home is in compliance with the provisions of NRS 449.119 to 449.125, inclusive, and sections 1.6 and 1.9 of this act and 449.174.

      3.  Each reapplication for an agency to provide personal care services in the home, a community health worker pool, a facility for intermediate care, a facility for skilled nursing, a facility for the care of adults during the day, a peer support recovery organization, a residential facility for groups or a home for individual residential care must include, without limitation, a statement that the holder of the license to operate, and the administrator or other person in charge and employees of, the facility, agency, pool, organization or home are in compliance with the provisions of NRS 449.093.

      Sec. 8.5. NRS 449.091 is hereby amended to read as follows:

      449.091  1.  The Division may cancel the license of a medical facility , [or] facility for the dependent or a facility which is required by the regulations adopted by the Board pursuant to NRS 449.0303 to be licensed and issue a provisional license, effective for a period determined by the Division, to such a facility if it:

      (a) Is in operation at the time of the adoption of standards and regulations pursuant to the provisions of NRS 449.030 to 449.2428, inclusive, and sections 1.3, 1.6 and 1.9 of this act and the Division determines that the facility requires a reasonable time under the particular circumstances within which to comply with the standards and regulations; or

 


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ê2017 Statutes of Nevada, Page 1902 (Chapter 326, SB 71)ê

 

determines that the facility requires a reasonable time under the particular circumstances within which to comply with the standards and regulations; or

      (b) Has failed to comply with the standards or regulations and the Division determines that the facility is in the process of making the necessary changes or has agreed to make the changes within a reasonable time.

      2.  The provisions of subsection 1 do not require the issuance of a license or prevent the Division from refusing to renew or from revoking or suspending any license where the Division deems such action necessary for the health and safety of the occupants of any facility.

      Sec. 9.  NRS 449.119 is hereby amended to read as follows:

      449.119  [As used in NRS 449.119 to 449.125, inclusive, “facility,] “Facility, hospital, agency, program or home” means an agency to provide personal care services in the home, an agency to provide nursing in the home, a community health worker pool, a facility for intermediate care, a facility for skilled nursing, a hospital described in 42 U.S.C. § 1395ww(d)(1)(B)(iv) which accepts payment through Medicare, a psychiatric hospital that provides inpatient services to children, a psychiatric residential treatment facility, a peer support recovery organization, a residential facility for groups, a program of hospice care, a home for individual residential care, a facility for the care of adults during the day, a facility for hospice care, a nursing pool, the distinct part of a hospital which meets the requirements of a skilled nursing facility or nursing facility pursuant to 42 C.F.R. § 483.5(b)(2), a hospital that provides swing-bed services as described in 42 C.F.R. § [482.66] 482.58 or, if residential services are provided to children, a medical facility or facility for the treatment of abuse of alcohol or drugs.

      Sec. 10. NRS 449.122 is hereby amended to read as follows:

      449.122  1.  Each applicant for a license to operate a facility, hospital, agency, program or home shall submit to the Central Repository for Nevada Records of Criminal History one complete set of fingerprints for submission to the Federal Bureau of Investigation for its report.

      2.  The Central Repository for Nevada Records of Criminal History shall determine whether the applicant has been convicted of a crime listed in paragraph (a) of subsection 1 of NRS 449.174 and immediately inform the administrator of the facility, hospital, agency, program or home, if any, and the Division of whether the applicant has been convicted of such a crime.

      3.  A person who holds a license to operate a facility, hospital, agency, program or home which provides residential services to children , a psychiatric hospital that provides inpatient services to children or a psychiatric residential treatment facility shall submit to the Central Repository for Nevada Records of Criminal History one complete set of fingerprints for a report required by this section at least once every 5 years after the initial investigation.

      Sec. 11. NRS 449.123 is hereby amended to read as follows:

      449.123  1.  Except as otherwise provided in subsections 2 and 3, within 10 days after hiring an employee, accepting an employee of a temporary employment service or entering into a contract with an independent contractor, the administrator of, or the person licensed to operate a facility, hospital, agency, program or home shall:

      (a) Obtain a written statement from the employee, employee of the temporary employment service or independent contractor stating whether he or she has been convicted of any crime listed in NRS 449.174;

 


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      (b) Obtain an oral and written confirmation of the information contained in the written statement obtained pursuant to paragraph (a);

      (c) Obtain proof that the employee, employee of the temporary employment service or independent contractor holds any required license, permit or certificate;

      (d) Obtain from the employee, employee of the temporary employment service or independent contractor one set of fingerprints and a written authorization to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report;

      (e) Submit to the Central Repository for Nevada Records of Criminal History the fingerprints obtained pursuant to paragraph (d) to obtain information on the background and personal history of each employee, employee of a temporary employment service or independent contractor to determine whether the person has been convicted of any crime listed in NRS 449.174; and

      (f) If an Internet website has been established pursuant to NRS 439.942:

             (1) Screen the employee, employee of the temporary employment service or independent contractor using the Internet website. Upon request of the Division, proof that the employee, temporary employee or independent contractor was screened pursuant to this subparagraph must be provided to the Division.

             (2) Enter on the Internet website information to be maintained on the website concerning the employee, employee of the temporary employment service or independent contractor.

      2.  The administrator of, or the person licensed to operate, a facility, hospital, agency, program or home is not required to obtain the information described in subsection 1 from an employee, employee of a temporary employment service or independent contractor if his or her fingerprints have been submitted to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report within the immediately preceding 6 months and the report of the Federal Bureau of Investigation indicated that the employee, employee of the temporary employment service or independent contractor has not been convicted of any crime set forth in NRS 449.174.

      3.  The administrator of, or the person licensed to operate, a facility, hospital, agency, program or home is not required to obtain the information described in subsection 1, other than the information described in paragraph (c) of subsection 1, from an employee, employee of a temporary employment service or independent contractor if:

      (a) The employee, employee of the temporary employment service or independent contractor agrees to allow the administrator of, or the person licensed to operate, a facility, hospital, agency, program or home to receive notice from the Central Repository for Nevada Records of Criminal History regarding any conviction and subsequent conviction of the employee, employee of the temporary employment service or independent contractor of a crime listed in NRS 449.174;

      (b) An agency, board or commission that regulates an occupation or profession pursuant to title 54 of NRS or temporary employment service has, within the immediately preceding 5 years, submitted the fingerprints of the employee, employee of the temporary employment service or independent contractor to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report; and

 


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contractor to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report; and

      (c) The report of the Federal Bureau of Investigation indicated that the employee, employee of the temporary employment service or independent contractor has not been convicted of any crime set forth in NRS 449.174.

      4.  The administrator of, or the person licensed to operate, a facility, hospital, agency, program or home shall ensure that the information concerning the background and personal history of each employee, employee of a temporary employment service or independent contractor who works at the facility, hospital, agency, program or home:

      (a) Except as otherwise provided in subsection 2, is completed as soon as practicable, and if residential services are provided to children [,] or the facility is a psychiatric hospital that provides inpatient services to children or a psychiatric residential treatment facility, before the employee, employee of the temporary employment service or independent contractor provides any care or services to a child in the facility, hospital, agency, program or home without supervision; and

      (b) At least once every 5 years after the date of the initial investigation.

      5.  The administrator or person shall, when required:

      (a) Obtain one set of fingerprints from the employee, employee of the temporary employment service or independent contractor;

      (b) Obtain written authorization from the employee, employee of the temporary employment service or independent contractor to forward the fingerprints obtained pursuant to paragraph (a) to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report; and

      (c) Submit the fingerprints to the Central Repository for Nevada Records of Criminal History or, if the fingerprints were submitted electronically, obtain proof of electronic submission of the fingerprints to the Central Repository for Nevada Records of Criminal History.

      6.  Upon receiving fingerprints submitted pursuant to this section, the Central Repository for Nevada Records of Criminal History shall determine whether the employee, employee of the temporary employment service or independent contractor has been convicted of a crime listed in NRS 449.174 and immediately inform the Division and the administrator of, or the person licensed to operate, the facility, hospital, agency, program or home at which the person works whether the employee, employee of the temporary employment service or independent contractor has been convicted of such a crime.

      7.  The Central Repository for Nevada Records of Criminal History may impose a fee upon a facility, hospital, agency, program or home that submits fingerprints pursuant to this section for the reasonable cost of the investigation. The facility, hospital, agency, program or home may recover from the employee or independent contractor whose fingerprints are submitted not more than one-half of the fee imposed by the Central Repository. If the facility, hospital, agency, program or home requires the employee or independent contractor to pay for any part of the fee imposed by the Central Repository, it shall allow the employee or independent contractor to pay the amount through periodic payments. The facility, hospital, agency, program or home may require a temporary employment service which employs a temporary employee whose fingerprints are submitted to pay the fee imposed by the Central Repository. A facility, hospital, agency, program or home shall notify a temporary employment service if a person employed by the temporary employment service is determined to be ineligible to provide services at the facility, hospital, agency, program or home based upon the results of an investigation conducted pursuant to this section.

 


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or home shall notify a temporary employment service if a person employed by the temporary employment service is determined to be ineligible to provide services at the facility, hospital, agency, program or home based upon the results of an investigation conducted pursuant to this section.

      8.  Unless a greater penalty is provided by law, a person who willfully provides a false statement or information in connection with an investigation of the background and personal history of the person pursuant to this section that would disqualify the person from employment, including, without limitation, a conviction of a crime listed in NRS 449.174, is guilty of a misdemeanor.

      Sec. 12. NRS 449.125 is hereby amended to read as follows:

      449.125  1.  Upon receiving information from the Central Repository for Nevada Records of Criminal History pursuant to NRS 449.123, or evidence from any other source, that an employee, employee of a temporary employment service or independent contractor of a facility, hospital, agency, program or home:

      (a) Has been convicted of a crime listed in paragraph (a) of subsection 1 of NRS 449.174; or

      (b) Has had a substantiated report of abuse or neglect made against him or her, if he or she is employed at a facility, hospital, agency, program or home that provides residential services to children, a psychiatric hospital that provides inpatient services to children or a psychiatric residential treatment facility,

Ê the administrator of, or the person licensed to operate, the facility, hospital, agency, program or home shall terminate the employment or contract of that person or notify the temporary employment service that its employee is prohibited from providing services for the facility, hospital, agency, program or home after allowing the person time to correct the information as required pursuant to subsection 2.

      2.  If an employee, employee of a temporary employment service or independent contractor believes that the information provided by the Central Repository is incorrect, the employee, employee of the temporary employment service or independent contractor may immediately inform the facility, hospital, agency, program or home or temporary employment service. The facility, hospital, agency, program, home or temporary employment service that is so informed shall give the employee, employee of the temporary employment service or independent contractor a reasonable amount of time of not less than 30 days to correct the information received from the Central Repository before terminating the employment or contract of the person pursuant to subsection 1.

      3.  A facility, hospital, agency, program or home that has complied with NRS 449.123 may not be held civilly or criminally liable based solely upon the ground that the facility, hospital, agency, program or home allowed an employee, employee of a temporary employment service or independent contractor to work:

      (a) Before it received the information concerning the employee, employee of the temporary employment service or independent contractor from the Central Repository, except that an employee, employee of the temporary employment service or independent contractor shall not have contact with a child without supervision before such information is received;

      (b) During the period required pursuant to subsection 2 to allow the employee, employee of the temporary employment service or independent contractor to correct that information, except that an employee, employee of the temporary employment service or independent contractor shall not have contact with a child without supervision during such period;

 


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contractor to correct that information, except that an employee, employee of the temporary employment service or independent contractor shall not have contact with a child without supervision during such period;

      (c) Based on the information received from the Central Repository, if the information received from the Central Repository was inaccurate; or

      (d) Any combination thereof.

Ê A facility, hospital, agency, program or home may be held liable for any other conduct determined to be negligent or unlawful.

      Sec. 12.5. NRS 449.132 is hereby amended to read as follows:

      449.132  Every medical facility , [or] facility for the dependent or facility which is required by the regulations adopted by the Board pursuant to NRS 449.0303 to be licensed may be inspected at any time, with or without notice, as often as is necessary by:

      1.  The Division of Public and Behavioral Health to ensure compliance with all applicable regulations and standards; and

      2.  Any person designated by the Aging and Disability Services Division of the Department of Health and Human Services to investigate complaints made against the facility.

      Sec. 13. NRS 449.160 is hereby amended to read as follows:

      449.160  1.  The Division may deny an application for a license or may suspend or revoke any license issued under the provisions of NRS 449.030 to 449.2428, inclusive, and sections 1.3, 1.6 and 1.9 of this act upon any of the following grounds:

      (a) Violation by the applicant or the licensee of any of the provisions of NRS 439B.410 or 449.030 to 449.245, inclusive, and sections 1.3, 1.6 and 1.9 of this act, or of any other law of this State or of the standards, rules and regulations adopted thereunder.

      (b) Aiding, abetting or permitting the commission of any illegal act.

      (c) Conduct inimical to the public health, morals, welfare and safety of the people of the State of Nevada in the maintenance and operation of the premises for which a license is issued.

      (d) Conduct or practice detrimental to the health or safety of the occupants or employees of the facility.

      (e) Failure of the applicant to obtain written approval from the Director of the Department of Health and Human Services as required by NRS 439A.100 or as provided in any regulation adopted pursuant to NRS 449.001 to 449.430, inclusive, and sections 1.3, 1.6 and 1.9 of this act and 449.435 to 449.965, inclusive, if such approval is required.

      (f) Failure to comply with the provisions of NRS 449.2486.

      2.  In addition to the provisions of subsection 1, the Division may revoke a license to operate a facility for the dependent if, with respect to that facility, the licensee that operates the facility, or an agent or employee of the licensee:

      (a) Is convicted of violating any of the provisions of NRS 202.470;

      (b) Is ordered to but fails to abate a nuisance pursuant to NRS 244.360, 244.3603 or 268.4124; or

      (c) Is ordered by the appropriate governmental agency to correct a violation of a building, safety or health code or regulation but fails to correct the violation.

 

 


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      3.  The Division shall maintain a log of any complaints that it receives relating to activities for which the Division may revoke the license to operate a facility for the dependent pursuant to subsection 2. The Division shall provide to a facility for the care of adults during the day:

      (a) A summary of a complaint against the facility if the investigation of the complaint by the Division either substantiates the complaint or is inconclusive;

      (b) A report of any investigation conducted with respect to the complaint; and

      (c) A report of any disciplinary action taken against the facility.

Ê The facility shall make the information available to the public pursuant to NRS 449.2486.

      4.  On or before February 1 of each odd-numbered year, the Division shall submit to the Director of the Legislative Counsel Bureau a written report setting forth, for the previous biennium:

      (a) Any complaints included in the log maintained by the Division pursuant to subsection 3; and

      (b) Any disciplinary actions taken by the Division pursuant to subsection 2.

      Sec. 14. NRS 449.163 is hereby amended to read as follows:

      449.163  1.  In addition to the payment of the amount required by NRS 449.0308, if a medical facility , [or] facility for the dependent or facility which is required by the regulations adopted by the Board pursuant to NRS 449.0303 to be licensed violates any provision related to its licensure, including any provision of NRS 439B.410 or 449.030 to 449.2428, inclusive, and sections 1.3, 1.6 and 1.9 of this act, or any condition, standard or regulation adopted by the Board, the Division, in accordance with the regulations adopted pursuant to NRS 449.165, may:

      (a) Prohibit the facility from admitting any patient until it determines that the facility has corrected the violation;

      (b) Limit the occupancy of the facility to the number of beds occupied when the violation occurred, until it determines that the facility has corrected the violation;

      (c) If the license of the facility limits the occupancy of the facility and the facility has exceeded the approved occupancy, require the facility, at its own expense, to move patients to another facility that is licensed;

      (d) Impose an administrative penalty of not more than [$1,000] $5,000 per day for each violation, together with interest thereon at a rate not to exceed 10 percent per annum; and

      (e) Appoint temporary management to oversee the operation of the facility and to ensure the health and safety of the patients of the facility, until:

             (1) It determines that the facility has corrected the violation and has management which is capable of ensuring continued compliance with the applicable statutes, conditions, standards and regulations; or

             (2) Improvements are made to correct the violation.

      2.  [If a violation by a medical facility or facility for the dependent relates to the health or safety of a patient, an administrative penalty imposed pursuant to paragraph (d) of subsection 1 must be in a total amount of not less than $1,000 and not more than $10,000 for each patient who was harmed or at risk of harm as a result of the violation.

 


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      3.]  If the facility fails to pay any administrative penalty imposed pursuant to paragraph (d) of subsection 1, the Division may:

      (a) Suspend the license of the facility until the administrative penalty is paid; and

      (b) Collect court costs, reasonable attorney’s fees and other costs incurred to collect the administrative penalty.

      [4.]3.  The Division may require any facility that violates any provision of NRS 439B.410 or 449.030 to 449.2428, inclusive, and sections 1.3, 1.6 and 1.9 of this act, or any condition, standard or regulation adopted by the Board to make any improvements necessary to correct the violation.

      [5.]4.  Any money collected as administrative penalties pursuant to paragraph (d) of subsection 1 must be accounted for separately and used to administer and carry out the provisions of NRS 449.001 to 449.430, inclusive, and sections 1.3, 1.6 and 1.9 of this act and 449.435 to 449.965, inclusive, to protect the health, safety, well-being and property of the patients and residents of facilities in accordance with applicable state and federal standards or for any other purpose authorized by the Legislature.

      Sec. 14.3. NRS 449.165 is hereby amended to read as follows:

      449.165  The Board shall adopt regulations establishing the criteria for the imposition of each sanction prescribed by NRS 449.163. These regulations must:

      1.  Prescribe the circumstances and manner in which each sanction applies;

      2.  Minimize the time between identification of a violation and the imposition of a sanction;

      3.  Provide for the imposition of incrementally more severe sanctions for repeated or uncorrected violations; [and]

      4.  Provide for less severe sanctions for lesser violations of applicable state statutes, conditions, standards or regulations [.] ; and

      5.  Establish an administrative penalty to be imposed if a violation by a medical facility, facility for the dependent or a facility which is required by the regulations adopted by the Board pursuant to NRS 449.0303 to be licensed causes harm or the risk of harm to more than one person.

      Sec. 14.6.NRS 449.171 is hereby amended to read as follows:

      449.171  1.  If the Division suspends the license of a medical facility , [or] a facility for the dependent or a facility which is required by the regulations adopted by the Board pursuant to NRS 449.0303 to be licensed pursuant to the provisions of this chapter, or if a facility otherwise ceases to operate, including, without limitation, pursuant to an action or order of a health authority pursuant to chapter 441A of NRS, the Division may, if deemed necessary by the Administrator of the Division, take control of and ensure the safety of the medical records of the facility.

      2.  Subject to the provisions of the Health Insurance Portability and Accountability Act of 1996, Public Law 104-191, the Division shall:

      (a) Maintain the confidentiality of the medical records obtained pursuant to subsection 1.

      (b) Share medical records obtained pursuant to subsection 1 with law enforcement agencies in this State and other governmental entities which have authority to license the facility or to license the owners or employees of the facility.

 


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      (c) Release a medical record obtained pursuant to subsection 1 to the patient or legal guardian of the patient who is the subject of the medical record.

      3.  The Board shall adopt regulations to carry out the provisions of this section, including, without limitation, regulations for contracting with a person to maintain any medical records under the control of the Division pursuant to subsection 1 and for payment by the facility of the cost of maintaining medical records.

      Sec. 15. NRS 449.174 is hereby amended to read as follows:

      449.174  1.  In addition to the grounds listed in NRS 449.160, the Division may deny a license to operate a facility, hospital, agency, program or home to an applicant or may suspend or revoke the license of a licensee to operate such a facility, hospital, agency, program or home if:

      (a) The applicant or licensee has been convicted of:

             (1) Murder, voluntary manslaughter or mayhem;

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

             (3) Sexual assault, statutory sexual seduction, incest, lewdness or indecent exposure, or any other sexually related crime that is punished as a felony;

             (4) Prostitution, solicitation, lewdness or indecent exposure, or any other sexually related crime that is punished as a misdemeanor, within the immediately preceding 7 years;

             (5) A crime involving domestic violence that is punished as a felony;

             (6) A crime involving domestic violence that is punished as a misdemeanor, within the immediately preceding 7 years;

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

             (8) A violation of any federal or state law regulating the possession, distribution or use of any controlled substance or any dangerous drug as defined in chapter 454 of NRS, within the immediately preceding 7 years;

             (9) Abuse, neglect, exploitation, isolation or abandonment of older persons or vulnerable persons, including, without limitation, a violation of any provision of NRS 200.5091 to 200.50995, inclusive, or a law of any other jurisdiction that prohibits the same or similar conduct;

             (10) A violation of any provision of law relating to the State Plan for Medicaid or a law of any other jurisdiction that prohibits the same or similar conduct, within the immediately preceding 7 years;

             (11) A violation of any provision of NRS 422.450 to 422.590, inclusive;

             (12) A criminal offense under the laws governing Medicaid or Medicare, within the immediately preceding 7 years;

             (13) Any offense involving fraud, theft, embezzlement, burglary, robbery, fraudulent conversion or misappropriation of property, within the immediately preceding 7 years;

             (14) Any other felony involving the use or threatened use of force or violence against the victim or the use of a firearm or other deadly weapon; or

             (15) An attempt or conspiracy to commit any of the offenses listed in this paragraph, within the immediately preceding 7 years;

      (b) The licensee has, in violation of NRS 449.125, continued to employ a person who has been convicted of a crime listed in paragraph (a); or

 


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      (c) The applicant or licensee has had a substantiated report of child abuse or neglect made against him or her and if the facility, hospital, agency, program or home provides residential services to children [.] , is a psychiatric hospital that provides inpatient services to children or is a psychiatric residential treatment facility.

      2.  In addition to the grounds listed in NRS 449.160, the Division may suspend or revoke the license of a licensee to operate an agency to provide personal care services in the home, an agency to provide nursing in the home, a community health worker pool or a peer support recovery organization if the licensee has, in violation of NRS 449.125, continued to employ a person who has been convicted of a crime listed in paragraph (a) of subsection 1.

      3.  As used in this section:

      (a) “Domestic violence” means an act described in NRS 33.018.

      (b) “Facility, hospital, agency, program or home” has the meaning ascribed to it in NRS 449.119.

      (c) “Medicaid” has the meaning ascribed to it in NRS 439B.120.

      (d) “Medicare” has the meaning ascribed to it in NRS 439B.130.

      Sec. 16. NRS 449.210 is hereby amended to read as follows:

      449.210  1.  In addition to the payment of the amount required by NRS 449.0308 [, except as otherwise provided in subsection 2 and NRS 449.24897,] and any civil penalty imposed pursuant to subsection 4, a person who operates a medical facility , [or] facility for the dependent or a facility which is required by the regulations adopted by the Board pursuant to NRS 449.0303 to be licensed without a license issued by the Division is guilty of a misdemeanor.

      2.  [In addition to the payment of the amount required by NRS 449.0308, if a person operates a facility for the dependent without a license issued by the Division, the Division shall:

      (a) Impose a civil penalty on the operator in the following amount:

             (1) For a first offense, $10,000.

             (2) For a second offense, $25,000.

             (3) For a third or subsequent offense, $50,000.

      (b) Order the operator, at the operator’s own expense, to move all of the persons who are receiving services in the facility for the dependent to a facility for the dependent of the same type that is licensed.

      (c) Prohibit the operator from applying for a license to operate the type of facility for the dependent that the operator was found to be operating without a license. The duration of the period of prohibition must be:

             (1) For 6 months if the operator is punished pursuant to subparagraph (1) of paragraph (a).

             (2) For 1 year if the operator is punished pursuant to subparagraph (2) of paragraph (a).

             (3) Permanent if the operator is punished pursuant to subparagraph (3) of paragraph (a).

      3.  Before the Division imposes an administrative sanction pursuant to subsection 2, the Division shall provide the operator of a facility for the dependent with reasonable notice. The notice must contain the legal authority, jurisdiction and reasons for the action to be taken. If the operator of a facility for the dependent wants to contest the action, the operator may file an appeal pursuant to the regulations of the State Board of Health adopted pursuant to NRS 449.165 and 449.170. Upon receiving notice of an appeal, the Division shall hold a hearing in accordance with those regulations.

 


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appeal, the Division shall hold a hearing in accordance with those regulations. For the purpose of this subsection, it is no defense to the violation of operating a facility for the dependent without a license that the operator thereof subsequently licensed the facility in accordance with law.] If the Division believes that a person is operating a medical facility, facility for the dependent or a facility which is required by the regulations adopted by the Board pursuant to NRS 449.0303 to be licensed without such a license, the Division may issue an order to cease and desist the operation of the facility. The order must be served upon the person by personal delivery or by certified or registered mail, return receipt requested. The order is effective upon service.

      3.  If a person does not voluntarily cease operating a medical facility, facility for the dependent or a facility which is required by the regulations adopted by the Board pursuant to NRS 449.0303 to be licensed without a license or apply for licensure within 30 days after the date of service of the order pursuant to subsection 2, the Division may bring an action in a court of competent jurisdiction pursuant to NRS 449.220.

      4.  Upon a showing by the Division that a person is operating a medical facility, facility for the dependent or a facility which is required by the regulations adopted by the Board pursuant to NRS 449.0303 to be licensed without a license, a court of competent jurisdiction may:

      (a) Enjoin the person from operating the facility.

      (b) Impose a civil penalty on the operator to be recovered by the Division of not more than $10,000 for the first offense or not less than $10,000 or more than $25,000 for a second or subsequent offense.

      5.  Unless otherwise required by federal law, the Division shall deposit all civil penalties collected pursuant to paragraph [(a)] (b) of subsection [2] 4 into a separate account in the State General Fund to be used to administer and carry out the provisions of NRS 449.001 to 449.430, inclusive, and [449.935 to 449.965, inclusive,] sections 1.3, 1.6 and 1.9 of this act, and to protect the health, safety, well-being and property of the patients and residents of facilities in accordance with applicable state and federal standards.

      Sec. 17. NRS 449.220 is hereby amended to read as follows:

      449.220  1.  The Division may bring an action in the name of the State to enjoin any person, state or local government unit or agency thereof from operating or maintaining any facility within the meaning of NRS 449.030 to 449.2428, inclusive [:] , and sections 1.3, 1.6 and 1.9 of this act:

      (a) Without first obtaining a license therefor; or

      (b) After his or her license has been revoked or suspended by the Division.

      2.  It is sufficient in such action to allege that the defendant did, on a certain date and in a certain place, operate and maintain such a facility without a license.

      Sec. 18. NRS 654.190 is hereby amended to read as follows:

      654.190  1.  The Board may, after notice and an opportunity for a hearing as required by law, impose an administrative fine of not more than $10,000 for each violation on, recover reasonable investigative fees and costs incurred from, suspend, revoke, deny the issuance or renewal of or place conditions on the license of, and place on probation or impose any combination of the foregoing on any nursing facility administrator or administrator of a residential facility for groups who:

 


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      (a) Is convicted of a felony relating to the practice of administering a nursing facility or residential facility or of any offense involving moral turpitude.

      (b) Has obtained his or her license by the use of fraud or deceit.

      (c) Violates any of the provisions of this chapter.

      (d) Aids or abets any person in the violation of any of the provisions of NRS 449.030 to 449.2428, inclusive, and sections 1.3, 1.6 and 1.9 of this act, as those provisions pertain to a facility for skilled nursing, facility for intermediate care or residential facility for groups.

      (e) Violates any regulation of the Board prescribing additional standards of conduct for nursing facility administrators or administrators of residential facilities for groups, including, without limitation, a code of ethics.

      (f) Engages in conduct that violates the trust of a patient or resident or exploits the relationship between the nursing facility administrator or administrator of a residential facility for groups and the patient or resident for the financial or other gain of the licensee.

      2.  If a licensee requests a hearing pursuant to subsection 1, the Board shall give the licensee written notice of a hearing pursuant to NRS 233B.121 and 241.034. A licensee may waive, in writing, his or her right to attend the hearing.

      3.  The Board may compel the attendance of witnesses or the production of documents or objects by subpoena. The Board may adopt regulations that set forth a procedure pursuant to which the Chair of the Board may issue subpoenas on behalf of the Board. Any person who is subpoenaed pursuant to this subsection may request the Board to modify the terms of the subpoena or grant additional time for compliance.

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

      5.  The expiration of a license by operation of law or by order or decision of the Board or a court, or the voluntary surrender of a license, does not deprive the Board of jurisdiction to proceed with any investigation of, or action or disciplinary proceeding against, the licensee or to render a decision suspending or revoking the license.

      Sec. 19. NRS 449.24897 is hereby repealed.

      Sec. 20.  This act becomes effective on July 1, 2017.

________

 

 

 

 


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CHAPTER 327, SB 81

Senate Bill No. 81–Committee on Commerce, Labor and Energy

 

CHAPTER 327

 

[Approved: June 3, 2017]

 

AN ACT relating to financial institutions; converting state-chartered savings and loan associations to savings banks; providing for the oversight and regulation of savings banks by the Commissioner of Financial Institutions and the Division of Financial Institutions of the Department of Business and Industry; establishing requirements for the operation of savings banks; establishing the powers of savings banks; providing for the liquidation, reopening and reorganization of savings banks; providing for the conversion of certain types of financial institutions to savings banks and of savings banks to certain types of financial institutions; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law provides for the creation, operation and oversight of state-chartered savings and loan associations. (Chapter 673 of NRS) While savings and loan associations were generally subject to federal oversight by the Office of Thrift Supervision of the United States Department of the Treasury, the Dodd-Frank Wall Street Reform and Consumer Protection Act abolished that office and generally transferred the responsibility for oversight of savings and loan associations to the Office of the Comptroller of the Currency of the United States Department of the Treasury. (Pub. L. No. 111-203) This bill revises existing law to eliminate state-chartered savings and loan associations and instead provide for the creation, operation and oversight of state-chartered savings banks.

      Section 34 of this bill converts all savings and loan associations or other depository institutions chartered under chapter 673 of NRS to savings banks upon passage and approval of this bill. Section 34 also requires the Commissioner of Financial Institutions to immediately issue a savings bank charter to each such entity. Section 35 of this bill grants to each such converted entity the same powers, privileges, immunities and exceptions provided by this bill to savings banks.

      Section 52 of this bill prohibits carrying on the business of a savings bank without being incorporated as a state-chartered savings bank. Sections 11 and 53-59 of this bill provide for the formation and organization of a savings bank and the establishment of its main office and any branch offices or service offices in a manner generally consistent with the existing provisions for a savings and loan association. Sections 60-72 of this bill establish certain requirements relating to the officers, directors, employees and capital stockholders of a savings bank in a manner generally consistent with the existing provisions for a savings and loan association. Sections 12 and 73-75 of this bill establish the powers and privileges of a savings bank. Sections 76-78 of this bill establish requirements for the stocks and certificates of a savings bank in a manner generally consistent with the existing provisions for a savings and loan association. Section 79 of this bill requires a savings bank to maintain a reserve for losses in a manner generally consistent with the existing provisions for a savings and loan association. Sections 80-91 of this bill establish provisions relating to the investments and borrowing of a savings bank in a manner generally consistent with the existing provisions for a savings and loan association. In addition, section 13 of this bill authorizes a savings bank to become a member of the Federal Reserve System, engage in certain related investments and borrowing, and exercise certain related powers. Sections 93-98 of this bill establish provisions relating to loans issued by a savings bank. Sections 101-110 of this bill establish provisions relating to the reports, examinations and audits of a savings bank.

 


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reports, examinations and audits of a savings bank. Section 111 of this bill provides for the suspension or revocation of the charter of a savings bank by the Commissioner. Section 112 of this bill provides for the reorganization, merger or consolidation of a savings bank with another financial institution.

      Sections 14-31 of this bill provide for the liquidation of a savings bank. Sections 32 and 33 of this bill provide for the reopening and reorganization of a savings bank. Sections 114 and 115 of this bill establish provisions relating to the treatment of foreign savings banks which do business in this State. Sections 116-128 of this bill establish provisions relating to the conversion of a savings bank into certain other financial institutions or the conversion of certain other financial institutions into a savings bank. Section 129 of this bill grants federal savings banks and holders of shares or share accounts issued by a federal savings bank the same powers, privileges, exemptions and immunities granted to savings banks and holders of shares or share accounts issued by a savings bank. Sections 130-132 of this bill establish prohibitions against the exploitation of older or vulnerable persons by a savings bank in a manner generally consistent with the existing provisions for a savings and loan association. Sections 133-136 of this bill prohibit certain acts by a savings bank in a manner generally consistent with the existing provisions for a savings and loan association.

 

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 673 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 35, inclusive, of this act.

      Sec. 2. “Deposit account” means an account that holds deposits, whether in a commercial, demand, time, checking, savings or similar type of account, or which is evidenced by a certificate of deposit, investment certificate, certificate of indebtedness or other similar name, for which the savings bank is primarily liable.

      Sec. 3. “Depository institution” means any state bank or savings bank, association, limited-liability company, corporation or other person organized for the purpose of conducting a banking business, whether chartered by this State, another state or the Federal Government, which:

      1.  Holds or receives deposits, savings or share accounts;

      2.  Issues certificates of deposit; or

      3.  Provides to its customers other deposit accounts which are subject to withdrawal by checks, drafts or other instruments or by electronic means to effect payment to a third party.

      Sec. 4. “Division of Financial Institutions” means the Division of Financial Institutions of the Department of Business and Industry.

      Sec. 5. “Federal savings bank” means any type of federal savings association organized pursuant to the Home Owners’ Loan Act of 1933, 12 U.S.C. §§ 1461 to 1468, inclusive.

      Sec. 6. “Insolvency” or “insolvent” means one or more of the following:

      1.  When a savings bank cannot meet its deposit liabilities as they become due in the regular course of business.

      2.  When the actual cash market value of the assets of a savings bank is insufficient to pay its liabilities to depositors and other creditors.

      3.  When the reserves of a savings bank fall under the amount required by this chapter, and the savings bank fails to make good such reserve within 30 days after being required to do so by the Commissioner.

 


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      4.  When the undivided profits and surplus of a savings bank are inadequate to cover losses of the savings bank and the stockholders’ or members’ equity in the savings bank has been reduced below the requirements of law.

      Sec. 7. “Main office” means the office of a savings bank identified as such in the application submitted pursuant to subsection 4 of NRS 673.080 or the location to which the main office is changed pursuant to subsection 14 of NRS 673.080 or other applicable law.

      Sec. 8. “Savings association” means a savings association, savings and loan association or other depository institution chartered under this chapter before the effective date of this act.

      Sec. 9. “State bank” or “commercial bank” means a limited-liability company, corporation or other person organized for the purpose of conducting a banking business that is chartered by this State to conduct the business of banking and is organized pursuant to the provisions of chapter 659 of NRS.

      Sec. 10. The Commissioner may, by regulation, waive, modify or alter any requirement of this chapter.

      Sec. 11. Before a savings bank begins business, the savings bank must file with the Commissioner:

      1.  A statement, under oath by the president or a manager, containing the names of all the directors, managers and officers, with the date of their election or appointment, terms of office, primary residence and post office address of each, the amount of stock of which each is the owner in good faith and the amount of money paid in on account of the stock, or the contribution made. Nothing may be received in payment of stock or contribution except money.

      2.  Proof that the savings bank has obtained the approval of the Federal Deposit Insurance Corporation to insure its deposit accounts.

      Sec. 12. 1.  In addition to all powers, express or implied, that a savings bank has under this chapter, a savings bank has the powers, privileges and authorities that:

      (a) A state bank has under title 55 of NRS; and

      (b) A national bank has,

Ê except as may be expressly denied or limited by the Commissioner after notice and a hearing.

      2.  Any restriction, limitation or requirement applicable to a specific power, privilege or authority of a state bank or national bank applies to a savings bank exercising such a power, privilege or authority pursuant to this section to the extent that a savings bank exercises such a power, privilege or authority.

      Sec. 13. 1.  Any savings bank licensed pursuant to this chapter may subscribe to the stock of a Federal Reserve Bank and become a member of the Federal Reserve System.

      2.  Any savings bank licensed pursuant to this chapter which is, or which becomes, a member bank is, by this section, vested with all powers conferred upon member banks of the Federal Reserve System by the terms of the Federal Reserve Act as fully and completely as if such powers were specifically enumerated and described in this section, and all such powers must be exercised subject to all restrictions and limitations imposed by the Federal Reserve Act, or by regulations of the Board of Governors of the Federal Reserve System made pursuant thereto.

 


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Federal Reserve System made pursuant thereto. The right, however, is expressly reserved to revoke or to amend the powers conferred in this section.

      3.  Compliance on the part of any such savings bank with the reserve requirements of the Federal Reserve Act shall be deemed to be full compliance with those provisions of the laws of this State which require savings banks to maintain cash balances in their vaults or with other banks, and no such savings bank need carry or maintain a reserve other than such as is required under the terms of the Federal Reserve Act.

      4.  Any such savings bank continues to be subject to supervision and examinations required by the laws of this State, except that the Board of Governors of the Federal Reserve System may, if it deems necessary, make examinations of the savings bank. The authorities of this State having supervision over such savings bank may disclose to the Board of Governors of the Federal Reserve System, or to examiners appointed by it, all information in reference to the affairs of any savings bank which has become, or desires to become, a member bank of the Federal Reserve System.

      5.  The provisions of this section shall not be construed to limit the ability of a savings bank to engage in any activity authorized by NRS 673.300.

      6.  As used in this section:

      (a) “Board of Governors of the Federal Reserve System” means the Board of Governors of the Federal Reserve System created and described in the Federal Reserve Act.

      (b) “Federal Reserve Act” means the Act of Congress, approved December 23, 1913, being c. 6, 38 Stat. 251, as amended.

      (c) “Federal Reserve Bank” means the Federal Reserve Banks created and organized under authority of the Federal Reserve Act.

      (d) “Federal Reserve System” means, collectively, the Federal Reserve Banks and the Board of Governors of the Federal Reserve System.

      (e) “Member bank” means any national bank, state bank, savings bank or banking and trust company which has become or which becomes a member of the Federal Reserve System.

      Sec. 14. 1.  Except as otherwise provided in this section, a savings bank may go into voluntary liquidation pursuant to the provisions of NRS 78.580 or 86.491.

      2.  If the voluntary liquidation of the savings bank results from a vote or agreement of the stockholders or members of the savings bank, a certified copy of all proceedings of the meeting at which that action is taken, verified by the oath of the president or a manager, must be transmitted to the Commissioner for the Commissioner’s approval. If the Commissioner approves the liquidation, the Commissioner shall issue to the savings bank, under the Commissioner’s seal, a permit for that purpose. No permit may be issued by the Commissioner until the Commissioner is satisfied that provision has been made by the savings bank to satisfy and pay off all depositors and all creditors of the savings bank. If the Commissioner is not satisfied, the Commissioner shall not issue a permit, but the Commissioner may take possession of the savings bank, its assets and business, and liquidate the savings bank in the manner provided by this chapter.

 


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      3.  When the Commissioner approves the voluntary liquidation of a savings bank pursuant to subsection 2, the directors or managers of the savings bank shall cause to be published, in a newspaper in the city, town or county in which the main office of the savings bank is located, a notice that the savings bank is closing its affairs and going into liquidation, and that its depositors and creditors are to present their claims for payment.

      4.  When any savings bank is in the process of voluntary liquidation, it is subject to examination by the Commissioner, and the savings bank shall furnish such reports, from time to time, as may be called for by the Commissioner.

      5.  All unclaimed deposits and dividends remaining in the hands of the savings bank are subject to the provisions of this chapter.

      6.  Any savings bank that is in the process of voluntary liquidation may sell and transfer to any other state bank, national bank or federal savings bank all or any portion of its assets of every kind upon such terms as may be agreed upon and approved by the Commissioner and by a majority vote of the savings bank’s board of directors or of its managers. A certified copy of the minutes of any meeting at which that action is taken, under the oath of the president or a manager, and a copy of the contract of sale and transfer must be filed with the Commissioner.

      7.  If a voluntary liquidation or the sale and transfer of the assets of any savings bank is approved by the Commissioner, a certified copy of that approval under seal of the Commissioner, filed in the Office of the Secretary of State, authorizes the cancellation of the articles of incorporation or organization of the savings bank, subject to its continued existence, as provided by law.

      Sec. 15. 1.  The Federal Deposit Insurance Corporation created by the Federal Deposit Insurance Act, 12 U.S.C. § 1811, may act without bond as receiver or liquidator of any savings bank which:

      (a) Has been closed because of inability to meet the demands of its depositors; or

      (b) Is insured by the Federal Deposit Insurance Corporation and has been taken possession of by the Commissioner pursuant to NRS 658.151.

      2.  The appropriate state authority having the right to appoint a receiver or liquidator of a savings bank may, upon such closing, tender to the Federal Deposit Insurance Corporation the appointment as receiver or liquidator of such savings bank. If the Federal Deposit Insurance Corporation accepts the appointment, it shall have and possess all the powers and privileges provided by the laws of this State with respect to a receiver or liquidator, respectively, of a savings bank, its depositors and other creditors, and is subject to all the duties of such receiver or liquidator, except insofar as such powers, privileges or duties are in conflict with the provisions of the Federal Deposit Insurance Act.

      Sec. 16. Upon the acceptance of the appointment as receiver or liquidator by the Federal Deposit Insurance Corporation, the possession of and title to all the assets, business and property of such savings bank of every kind and nature shall pass to and vest in the Federal Deposit Insurance Corporation without the execution of any instruments of conveyance, assignment, transfer or endorsement.

      Sec. 17. Among its other powers, the Federal Deposit Insurance Corporation, in the performance of its powers and duties as receiver or liquidator, may, upon the order of a court of record of competent jurisdiction, enforce the individual liability of the stockholders or members and directors or managers of any such savings bank.

 


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jurisdiction, enforce the individual liability of the stockholders or members and directors or managers of any such savings bank.

      Sec. 18. 1.  When any state savings bank has been closed as provided in section 15 of this act, and the Federal Deposit Insurance Corporation pays, or makes available for payment, the insured deposit liabilities of such closed savings bank, the Federal Deposit Insurance Corporation, whether or not it has become receiver or liquidator of such closed savings bank, must be subrogated to all rights against such closed bank of the owners of such deposits in the same manner and to the same extent as subrogation of the Federal Deposit Insurance Corporation is provided for in the Federal Deposit Insurance Act in the case of the closing of a national bank.

      2.  The rights of depositors and other creditors of such closed savings bank will be determined in accordance with the applicable provisions of the laws of this State.

      Sec. 19. 1.  Any savings bank which is, or may hereafter be, closed on account of inability to meet the demands of its depositors, by action of the Commissioner, by action of a court, by action of its directors or due to its insolvency or suspension, the Commissioner, or the receiver or liquidator of the savings bank with the permission of the Commissioner, may borrow from the Federal Deposit Insurance Corporation and furnish any part or all of the assets of the savings bank to the Federal Deposit Insurance Corporation as security for a loan from it, but where the Federal Deposit Insurance Corporation is acting as the receiver or liquidator, the order of a court of record of competent jurisdiction must be first obtained approving the loan.

      2.  The Commissioner, or the receiver or liquidator of any savings bank with the permission of the Commissioner, upon the order of a court of record of competent jurisdiction, may sell to the Federal Deposit Insurance Corporation any part or all of the assets of the savings bank.

      3.  The provisions of this section do not limit the power of any savings bank, the Commissioner, receivers or liquidators to pledge or sell assets in accordance with any other existing law.

      Sec. 20. 1.  The Commissioner shall furnish to the Federal Deposit Insurance Corporation, or to any official or examiner thereof, a copy of all examinations made of any savings bank and of all reports made by the savings bank. The Commissioner shall give access to and disclose to the Federal Deposit Insurance Corporation, or to any official or examiner thereof, all information possessed by the office of the Division of Financial Institutions with reference to the conditions or affairs of any savings bank.

      2.  Nothing in this section limits:

      (a) The duty of any savings bank in this State from complying with the provisions of the Federal Deposit Insurance Act, its amendments or substitutions, or the requirements of the Federal Deposit Insurance Corporation relative to examinations and reports; or

      (b) The powers of the Commissioner with reference to examinations and reports pursuant to the provisions of title 55 of NRS.

      Sec. 21. All books, papers and records of a savings bank which has been finally liquidated must be deposited by the receiver in the Office of the Commissioner.

      Sec. 22. 1.  Except as otherwise provided in subsections 2 and 3, after the expiration of 10 years from the filing by the Commissioner of a final report of liquidation of any insolvent savings bank, the Commissioner, with the consent of the State Board of Finance, may destroy the records of any insolvent savings bank held in the Office of the Commissioner in connection with the liquidation of the savings bank.

 


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final report of liquidation of any insolvent savings bank, the Commissioner, with the consent of the State Board of Finance, may destroy the records of any insolvent savings bank held in the Office of the Commissioner in connection with the liquidation of the savings bank.

      2.  If there are any unpaid dividends of the insolvent savings bank, the Commissioner shall preserve the deposit ledger or other evidence of indebtedness of the savings bank which refers to the unpaid dividends until the dividends have been paid.

      3.  The Commissioner may not destroy any of the formal records of liquidation or any of the records made in the Commissioner’s office with reference to the liquidation of any insolvent savings bank.

      Sec. 23. 1.  Except as otherwise provided in subsection 2, if any savings bank has been or is appointed trustee in any indenture, deed of trust or other instrument of like character, executed to secure the payment of any bonds, notes or other evidences of indebtedness, is taken over for liquidation by the Commissioner, by the Federal Deposit Insurance Corporation or by any other legally constituted authority, the powers and duties of the savings bank as trustee cease upon the entry of an order of the district court appointing a successor trustee pursuant to a petition as provided for in sections 24 to 30, inclusive, of this act.

      2.  If an indenture, deed of trust or other instrument of like character that appoints a savings bank as trustee pursuant to subsection 1 includes a provision which provides for the appointment of a successor trustee if the savings bank is taken over for liquidation, the powers and duties of the savings bank as trustee cease upon being taken over by the Commissioner, the Federal Deposit Insurance Corporation or any other legally constituted authority and the successor trustee named, or whose selection is provided for, in the instrument immediately assumes the duties as trustee without appointment by the district court pursuant to sections 24 to 30, inclusive, of this act.

      Sec. 24. In all cases to which subsection 1 of section 23 of this act is applicable, the district court for the county in which such indenture, deed of trust or other instrument of like character is recorded shall, upon the verified petition of any person interested in any such trust, either as trustee, beneficiary or otherwise, which interest must be set out in the petition, issue its order directing service on all interested parties, personally or by the publication in a newspaper published in the county, or in some adjoining county if no newspaper is published in the county where the application is made, of a notice directed to all persons concerned, commanding and requiring all persons having any interest in the trust, to appear in court on a day designated in the order and notice, not less than 30 days after the date of the order and notice, to show cause why a new trustee should not be appointed.

      Sec. 25. Such notice must be published in the manner required by the Nevada Rules of Civil Procedure for service of summons by publication, and shall set forth the names of the parties to the indenture, deed of trust or other such instrument, the date thereof, and the place or places where such instrument is recorded.

      Sec. 26. If, upon the day fixed in the order and notice, no person appears and objects to the appointment of a substitute trustee, the district court shall, upon such terms as it deems advisable to serve the best interest of all interested parties, appoint some competent person, or corporation authorized to act as a trustee, as a substitute trustee.

 


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authorized to act as a trustee, as a substitute trustee. Such appointed trustee is vested with and shall exercise all the powers conferred upon the trustee named in the instrument.

      Sec. 27. If, upon the day fixed in the order and notice, objection is made to the appointment of a new trustee, the court shall hear and determine the matter. An appeal may be taken from the decision of the court by any party who made an appearance in the proceeding.

      Sec. 28. The final order of appointment of any such new trustee upon its entry must be recorded in the office of the county recorder in the county or counties in which the instrument under which such appointment has been made is recorded, and a minute of the same must be entered by the county recorder on the margin of the record where the original instrument is recorded.

      Sec. 29. The petition and the order appointing such new trustee may include, relate to and apply to any number of indentures, deeds of trust or other instruments, wherein the same trustee is named.

      Sec. 30. Sections 23 to 29, inclusive, of this act are in addition to and not in substitution for any other remedy provided by law.

      Sec. 31. If the Commissioner, the Federal Deposit Insurance Corporation or any liquidating agent appointed pursuant to the provisions of sections 15 to 20, inclusive, of this act exercises the power of sale set up in any mortgage, deed of trust or other written instrument for the security of the payment of money in which any savings bank then in liquidation was named trustee, the exercise of the power of sale and the acts of resigning the trust, of the Commissioner, the Federal Deposit Insurance Corporation or the appointed liquidating agent have the same effect as if done by the savings bank named as trustee in the mortgage, deed of trust or other instrument.

      Sec. 32. When the Commissioner or the Federal Deposit Insurance Corporation has taken possession of any savings bank, the savings bank may, with the consent of the Commissioner, resume business upon such terms and conditions as may be approved by the Commissioner and the Federal Deposit Insurance Corporation.

      Sec. 33. 1.  When any savings bank is authorized to dissolve and has taken the necessary steps to effect dissolution in accordance with the laws of this State or the laws of the United States, but before actual dissolution, a majority of the directors or managers of the savings bank, upon authority in writing of the owners of two-thirds of its stock or two-thirds of the members’ interests and with the approval of the Commissioner, may execute articles of incorporation or organization as provided in this chapter for the organization of a new savings bank. The articles must further set forth the authority derived from the stockholders or members of the savings bank.

      2.  Upon the filing of articles of incorporation or organization in the same manner as provided for the organization of new savings banks, the reorganized savings bank is a savings bank under the laws of this State. Upon reorganization, all assets, real and personal, of the dissolved savings bank, by operation of law, vest in and become the property of the reorganized savings bank, subject to all liabilities of the savings bank existing before the reorganization.

 


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      Sec. 34. Every savings association chartered under the laws of this State in existence on the effective date of this act is automatically converted, by operation of law, into a savings bank licensed under the laws of this State. The Commissioner shall issue a savings bank charter to each such entity immediately after the effective date of this act.

      Sec. 35. Every savings bank that is converted from a savings association pursuant to section 34 of this act shall have all of the rights, powers, privileges, immunities and exceptions provided by this chapter to a savings bank.

      Sec. 36. NRS 673.001 is hereby amended to read as follows:

      673.001  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 673.002 to 673.034, inclusive, and sections 2 to 9, inclusive, of this act have the meanings ascribed to them in those sections.

      Sec. 37. NRS 673.002 is hereby amended to read as follows:

      673.002  [“Association”] “Savings bank” means a [savings and loan association] depository institution subject to the provisions of this chapter [.] to conduct the business of a savings bank.

      Sec. 38. NRS 673.0056 is hereby amended to read as follows:

      673.0056  “Cooperative housing corporation” means a corporation organized under the laws of this State or any other state for the purpose of the cooperative ownership of real estate whereby each of the stockholders or members is entitled, through ownership of stock or a certificate of membership in the corporation, to occupy a house, apartment or other dwelling unit on real estate owned by the corporation.

      Sec. 39. NRS 673.0057 is hereby amended to read as follows:

      673.0057  “Deposit” means that part of the [savings] liability of [an association] a savings bank which is credited to the account of the holder thereof [.] and is eligible to be insured by the Federal Deposit Insurance Corporation.

      Sec. 40. NRS 673.008 is hereby amended to read as follows:

      673.008  “Foreign,” used in connection with an association, limited-liability company , [or] corporation [,] or other person organized for the purpose of conducting a banking business, means an association, limited-liability company , [or] corporation or person organized for the purpose of conducting a banking business that is organized or incorporated under the laws of some government other than that of the State of Nevada. The term includes any savings association, savings and loan association or other depository institution that specializes in accepting deposits and making mortgage and other loans pursuant to its charter, which is organized under the laws of another state or the United States.

      Sec. 41. NRS 673.016 is hereby amended to read as follows:

      673.016  “Insured [association”] depository institution” means [an association] a depository institution the [savings] deposit accounts of which are insured wholly or in part by the Federal Deposit Insurance Corporation.

      Sec. 42. NRS 673.017 is hereby amended to read as follows:

      673.017  1.  “Investment certificate” means any certificate or contract, either paid up or purchasable on an installment basis, which is issued for the purpose of providing a means of investment or savings.

 

 


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      2.  An accumulative investment certificate is an investment certificate, not full-paid and without an expressed date of maturity, upon which the holder has the option of making payments at such times and in such amounts as the holder elects and as the [association] savings bank permits.

      3.  A full-paid investment certificate is an investment certificate, with or without an expressed date of maturity, for which the [association] savings bank has received the principal amount thereof at or prior to the time of the issuance of the certificate.

      4.  A minimum term investment certificate is an investment certificate for which the [association] savings bank has received a single payment equal to the principal amount thereof and which has a date expressed therein before which notice of intention to withdraw cannot be given, or which requires written notice from the holder to the [association] savings bank for a period specified therein before the expiration of which period notice of intention to withdraw cannot be given. On and after such date, or upon and after the expiration of the specified period following such written notice, each such certificate ceases to be a minimum term investment certificate and becomes a full-paid investment certificate, subject to the same withdrawal rights and restrictions as a full-paid investment certificate.

      Sec. 43. NRS 673.0185 is hereby amended to read as follows:

      673.0185  “Merger” means that consolidation of corporate structures which results in the uniting of substantially all the assets and liabilities of one state-chartered [association] savings bank with those of another such [association] savings bank or state bank or with those of a federal [association.] savings bank or national bank, or other insured depository institution.

      Sec. 44. NRS 673.0321 is hereby amended to read as follows:

      673.0321  “Service office” means any office or other place of business in this [state operated by one or more savings and loan associations other than the principal office or a branch of an association, where activities are confined to processing and storing data and records, accounting, printing, storing of supplies, and such other activities as the Commissioner approves which involve no personal contact with the public. At a service office, payment on account of savings or loan may be processed, but the association shall have all payments which are initially received at a service office, rather than at the principal office or branch of the association, made by mail only and directed to a post office box and not to the address or location of the service office. The Commissioner may require that an association’s name not be displayed at or near a service office.] State where the functions of a savings bank that do not involve receiving deposits, paying checks or lending money are performed.

      Sec. 45. NRS 673.034 is hereby amended to read as follows:

      673.034  “Withdrawal value” means the amount credited to a [savings] deposit account, less lawful deductions therefrom, as shown by the records of the [association.] savings bank.

      Sec. 46. NRS 673.03531 is hereby amended to read as follows:

      673.03531  1.  Except as provided in subsections 3 and 4, an officer or employee of the Division of Financial Institutions shall not:

      (a) Be directly or indirectly interested in or act on behalf of any [association;] savings bank;

      (b) Receive, directly or indirectly, any payment from [an association;] a savings bank;

 


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      (c) Be indebted to any [association;] savings bank;

      (d) Engage in the negotiation of loans for others with any [association;] savings bank; or

      (e) Obtain credit or services from [an association] a savings bank conditioned upon a fraudulent practice or undue or unfair preference over other customers.

      2.  An employee of the Division of Financial Institutions in the unclassified service of the State shall not obtain new extensions of credit from [an association] a savings bank while in office.

      3.  Any officer or employee of the Division of Financial Institutions may be indebted to [an association] a savings bank on the same terms as are available to the public generally upon:

      (a) A mortgage loan upon his or her own real property.

      (b) A secured installment debt.

      (c) An unsecured debt.

      4.  Any officer or employee of the Division of Financial Institutions may establish and maintain savings deposits with [associations] savings banks to the greatest amount insured, receive interest on those deposits and borrow money secured by a pledge of those deposits.

      5.  If an officer or employee of the Division of Financial Institutions has a service, a preferred consideration, an interest or a relationship prohibited by this section at the time of his or her appointment or employment, or obtains it during his or her employment, he or she shall terminate it within 120 days after the date of his or her appointment or employment or the discovery of the prohibited act.

      Sec. 47. NRS 673.039 is hereby amended to read as follows:

      673.039  The Commissioner shall:

      1.  Keep in his or her office:

      (a) For no less than 5 years, every report made by [an association.] a savings bank.

      (b) The original application of every [association] savings bank in a permanent file.

      (c) Other administrative documents in the manner provided by law or by appropriate regulations.

      2.  Provide a complete stenographic record of every hearing and proceeding conducted by his or her office and maintain, for no less than 5 years, a transcript of the hearing or proceeding, together with any regulation, order, decision, determination or consent entered in connection with the hearing or proceeding.

      Sec. 48. NRS 673.040 is hereby amended to read as follows:

      673.040  The Commissioner shall supervise and make all policy with regard to all foreign and domestic [associations,] savings banks, companies and corporations governed by this chapter and doing business in this state.

      Sec. 49. NRS 673.043 is hereby amended to read as follows:

      673.043  [1.]  The Commissioner may adopt such regulations as may be reasonable or necessary to carry out the purposes of this chapter.

      [2.  The regulations as originally drafted, and as amended from time to time, must be printed and distributed by the Commissioner to all associations, and become effective not earlier than 30 days from the date of issuance, but before the regulations become effective and within that 30-day period any association may appeal to the Director as to the reasonableness and necessity of any of or all of the regulations.]

 


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      Sec. 50. NRS 673.045 is hereby amended to read as follows:

      673.045  The Commissioner may, for reasonable cause and upon 15 days’ notice, amend or alter any license issued by him or her, but the [association] savings bank may appeal the order of the Commissioner in the manner provided in this chapter.

      Sec. 51. NRS 673.060 is hereby amended to read as follows:

      673.060  Except as otherwise provided in NRS 673.080, 673.112 and [673.595:] 673.2176:

      1.  All fees, charges for expenses, assessments and other money collected under the provisions of this chapter from foreign and domestic [associations,] savings banks, companies and corporations governed by this chapter must be deposited in the State Treasury pursuant to the provisions of NRS 658.091.

      2.  The compensation provided for by this chapter and all expenses incurred under this chapter must be paid from the money deposited in the State Treasury pursuant to the provisions of NRS 658.091.

      Sec. 52. NRS 673.070 is hereby amended to read as follows:

      673.070  1.  Savings [and loan associations,] banks, except state banks [,] and trust companies [,] organized pursuant to title 55 of NRS, licensed brokers, small loan companies, thrift companies and credit unions, whose principal and primary business is to borrow, loan and invest money, shall be incorporated under the provisions of this chapter. For that purpose all of the provisions of chapter 78 of NRS (Private Corporations) which are not in conflict with this chapter are hereby adopted as parts of this chapter, and all the rights, privileges and powers and all the duties and obligations of such domestic corporations and of the officers and stockholders thereof shall be as provided in chapter 78 of NRS except as otherwise provided in this chapter.

      2.  A person, firm, partnership, association or corporation except a savings [and loan association] bank incorporated under this chapter , an affiliate of a savings bank or an entity otherwise lawfully conducting business in this State pursuant to this chapter, shall not conduct or carry on the business of soliciting or advertising [for savings deposits and loaning of such] the products or services of a savings [.] bank. This subsection does not apply to banks, trust companies, licensed brokers, thrift companies, credit unions and licensees under chapter 675 of NRS.

      Sec. 53. NRS 673.080 is hereby amended to read as follows:

      673.080  1.  The Secretary of State shall not issue any certificate to [an association] a savings bank or company authorizing it to do business until the articles of association, agreement or incorporation are approved by the Commissioner.

      2.  No amendment to the articles of the organization may be filed by the Secretary of State without the written approval of the articles by the Commissioner.

      3.  No [association] savings bank may sell, offer for sale, negotiate for the sale of, take subscriptions for, or issue any of its common or preferred stock until it has first applied for and secured from the Commissioner approval of an application for permission to organize as provided for in this section.

      4.  Persons who desire to organize [an association] a savings bank in accordance with this chapter shall first execute in triplicate an application, in the form prescribed by the Commissioner, for permission to organize [an association] a savings bank before taking any other action in connection with the organization.

 


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with the organization. Upon execution of an application for permission to organize by [seven] one or more responsible [citizens,] natural persons, referred to in this section as “applicants,” the original and two copies of the application must be submitted to the Commissioner. The applicants shall submit with their application the names and addresses of the applicants, the location of the proposed main office, an itemized account of the financial condition of the proposed [association] savings bank and of the applicants, the amount and character of the proposed stock, statements, exhibits, maps and such additional information as the Commissioner requires, together with an affidavit that the representations made thereby are consistent with the facts to the best of the applicants’ information and belief. This data must be sufficiently detailed and comprehensive to enable the Commissioner to pass upon the application as to:

      (a) The character and responsibility of the applicants;

      (b) The need for the [association] savings bank in the community to be served;

      (c) The reasonable probability of its usefulness and success; and

      (d) Whether such [an association] a savings bank can be established without undue injury to any properly conducted existing savings [and loan institutions.] banks.

      5.  If the Commissioner approves the application he or she shall, within 30 days, notify all [associations] savings banks within 100 miles of the community where the applicant intends to establish [an association.] a savings bank. Any [association] savings bank so notified may, within 20 days, protest in writing the granting of the application. Within 30 days after receipt by the Commissioner of a written protest, the Commissioner shall fix a date for a hearing upon the protest, and the hearing must be held not earlier than 30 days nor more than 60 days after the date of receipt of written notice by registered or certified mail by the parties. The Commissioner shall approve or deny the application within 90 days after the date of the conclusion of the hearing and give all parties written notice of his or her decision on or before that date.

      6.  If the Commissioner approves the application, he or she shall establish as conditions to be met before the issuance of a charter requirements as to:

      (a) The minimum number of shares of common or preferred stock to be subscribed to the [association’s] permanent capital [;] of the savings bank;

      (b) The minimum amount of paid-in surplus;

      (c) The minimum amount of investment certificates to be paid into the [association’s savings] deposit accounts of the savings bank upon issuance of a charter to it; and

      (d) Such other requirements as he or she deems necessary or desirable.

Ê At least 75 percent of the capital must be subscribed by bona fide residents of this State or a depository institution or holding company qualified to control the savings bank pursuant to the provisions of this chapter or chapter 666 or 666A of NRS . [or NRS 666A.010 to 666A.400, inclusive.] Approval of an application for permission to organize [an association] a savings bank does not in any manner obligate the Commissioner to issue a charter, except that when all requirements of this chapter and of the Commissioner have been fulfilled, he or she shall issue a charter.

 


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      7.  The charter expires 180 days after issuance, unless, within that time, the [association] savings bank has obtained insurance of accounts from the Federal Deposit Insurance Corporation. The Commissioner may, for good cause, extend the time of the conditional expiration of the charter for an additional period or periods not exceeding 360 days in the aggregate.

      8.  [An association] A savings bank shall not sell or issue any of its permanent stock until it has first applied for and secured from the Commissioner a license authorizing it to operate as a savings [and loan association] bank pursuant to the laws of this State and until it has applied for and secured insurance of accounts in accordance with the regulations of the Federal Deposit Insurance Corporation. This insurance of accounts must be maintained at all times.

      9.  The Commissioner may extend the time for any hearing provided for in this section, to the time agreed upon by the parties.

      10.  The filing fees are:

      (a) For filing an original application, not more than $4,000 for the [principal] main office. The applicant shall also pay such additional expenses incurred in the process of investigation as the Commissioner deems necessary. All money received by the Commissioner pursuant to this paragraph must be placed in the Investigative Account for Financial Institutions created by NRS 232.545.

      (b) If the license is approved for issuance, not more than $2,000 for the [principal] main office before issuance.

      11.  The Commissioner may impose conditions requiring the impoundment of proceeds from the sale of any stock, limiting the expense in connection with the sale of stock, and such other conditions as are reasonable and necessary or advisable to insure the disposition of the proceeds from the sale of the stock in the manner and for the purposes provided in the permission to organize.

      12.  Every permission to organize issued by the Commissioner must recite in bold type that its issuance is permissive only and does not constitute a recommendation or endorsement of the organization or of the stock permitted to be issued.

      13.  Any corporation applying pursuant to this section or authorized to organize or authorized to establish a savings [and loan association] bank shall provide for a minimum par value of its permanent capital stock of at least $1 in its articles of incorporation. Par value of permanent capital stock may not be reduced below $1 without written permission of the Commissioner.

      14.  The removal of the [home] main office or of any branch office of [an association] a savings bank to any other location from its then existing location requires [prior approval of] submission of written notice at least 30 days before relocation to the Commissioner [.] and, if the Commissioner determines that his or her approval is necessary, approval of the Commissioner. An application seeking approval , if required by the Commissioner, must be delivered to the Commissioner, together with a fee to cover expenses attendant upon the investigation required for the approval, which must be not less than $200. All money received by the Commissioner pursuant to this subsection must be placed in the Investigative Account for Financial Institutions created by NRS 232.545.

 


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      15.  [An association] A savings bank shall not pay any commissions or other compensation for the subscription to or sale of the original issue of its stock.

      16.  The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section.

      17.  The Commissioner shall consider an application to be withdrawn if the Commissioner has not received all information and fees required to complete the application within 12 months after the date the application is first submitted to the Commissioner or within such later period as the Commissioner determines in accordance with any existing policies of joint regulatory partners. If an application is deemed to be withdrawn pursuant to this subsection or if the applicant otherwise withdraws the application, the Commissioner may not issue a license to the applicant unless the applicant submits a new application and pays any required fees.

      Sec. 54. NRS 673.090 is hereby amended to read as follows:

      673.090  The powers, privileges, duties and restrictions conferred and imposed upon any such [association,] savings bank, company or corporation, whether foreign or domestic, existing or doing business under the laws of this state are hereby abridged, enlarged or modified, as each particular case may require, to conform to the provisions of this chapter, notwithstanding anything to the contrary in their respective articles of incorporation or charters.

      Sec. 55. NRS 673.112 is hereby amended to read as follows:

      673.112  1.  A branch office is a legally established place of business of [an association,] a savings bank, other than the [home] main office, which is authorized by the board of directors and approved by the Commissioner and at which any of the [association’s] business of the savings bank may be conducted.

      2.  All branch offices are subject to direction from the [home] main office.

      3.  No [association] savings bank may establish or maintain a branch office without prior written approval of the Commissioner. Each application for approval of the establishment and maintenance of a branch office must:

      (a) State the proposed location thereof, the need therefor, the functions to be performed therein, the estimated annual expense thereof and the mode of payment therefor.

      (b) Be accompanied by a budget of the [association] savings bank for the current semiannual period and for the next succeeding semiannual period, which reflects the estimated additional expense of the maintenance of the branch office.

      4.  After receipt of an application the Commissioner shall determine:

      (a) Whether the establishment and maintenance of the branch office will unduly injure any properly conducted existing [association] savings bank in the community where the branch office is proposed to be established or in any neighboring community; and

      (b) Whether or not the establishment and maintenance of the branch office will serve the public interest.

      5.  Before issuance of a charter for a branch office, the Commissioner shall notify all [associations] savings banks doing business within a radius of 100 miles of the principal place of business of the applicant, and within a radius of 100 miles of the proposed branch office. Any [association] savings bank so notified may, within 20 days, protest in writing the granting of the application.

 


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application. Within 30 days after receipt by the Commissioner of a written protest, the Commissioner shall fix a date for a hearing upon the protest. The hearing must be held not earlier than 60 days nor more than 90 days after the date of receipt of written notice by registered or certified mail by the parties.

      6.  If the Commissioner finds that no undue injury is likely to result, that the establishment and maintenance of the branch office is advisable and will serve the public interest, he or she may approve the application.

      7.  Approval of [an association’s] a savings bank’s application for a branch office charter permits the [association] savings bank to establish an operating office in a temporary or a permanent building, if the building is placed on or erected at the approved location within 12 months after the approval.

      8.  For good cause and after notice to the [association,] savings bank, the Commissioner may revoke his or her approval for the maintenance of a branch office. Failure to establish a branch office in the manner and within the time permitted under this section constitutes a good cause for revocation, unless a prior, written request for a waiver of the time limitation is sought by the [association] savings bank and an extension, in writing, is granted by the Commissioner.

      9.  [An association] A savings bank which maintains one or more branch offices shall give each branch office a specific designation by name and include in the designation the word “branch” and shall prominently display the designation at the place of business of the branch. When [an association] a savings bank is operating a branch office, all advertising of or by the branch office must state clearly the location of the [principal] main office of the [association.] savings bank.

      10.  The filing fees are:

      (a) For filing an original application, not more than $400 for each branch office. The applicant shall also pay such additional expenses incurred in the process of investigation as the Commissioner deems necessary. All money received by the Commissioner pursuant to this subsection must be placed in the Investigative Account for Financial Institutions created by NRS 232.545.

      (b) If the license is approved for issuance, not more than $200 for each branch office before issuance.

      11.  The Commissioner shall adopt regulations establishing the amount of the filing fees required pursuant to this section.

      Sec. 56. NRS 673.113 is hereby amended to read as follows:

      673.113  1.  Every [association] savings bank shall maintain bond coverage [with a bonding company] in such amounts and form which is acceptable to the Commissioner and the Federal Deposit Insurance Corporation . [for an amount to be determined by the Commissioner not to exceed 5 percent of the total assets of the association, nor for an amount greater than $3,000,000, covering all directors, officers, employees, agents, data processing service firms and all other operating hazards that are normally covered under the bond. The bond must be in the form known as Standard Form No. 22, its equivalent or some other form which may be acceptable to the Federal Deposit Insurance Corporation and the Commissioner.] The bond coverage may allow for a deductible amount or provision adopted under [Title 12, Code of Federal Regulations, Section 563.19(a), (b) and (c), and under any subsequent amendments thereto.] federal regulations applicable to federal savings banks.

 


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      2.  [A true copy of the surety bond must be placed in the custody of the Commissioner and the original maintained in the office of the association at all times.

      3.  The surety bond must provide that a cancellation thereof, either by the surety company or by the insured, does not become effective until 10 days’ notice in writing is first given to the Commissioner, or unless he or she earlier approves the cancellation in writing.

      4.]  When requested by the Commissioner, the [association] savings bank shall provide a duplicate copy of the invoice showing that the bond premium has been paid or satisfied.

      [5.]3.  The face amount of the surety bond must comply with the requirements of the Federal Deposit Insurance Corporation.

      Sec. 57. NRS 673.114 is hereby amended to read as follows:

      673.114  1.  [No association may open,] A savings bank organized under this chapter may establish and maintain one or [conduct a service office without approval from the Commissioner.] more service offices within or outside this State according to the needs of the savings bank.

      2.  [For good cause, and after notice to the association,] A savings bank shall notify the Commissioner [may revoke his or her approval for the maintenance of a] in writing of the location of any service office [.] not later than 30 days after establishment of the service office.

      3.  A service office does not constitute a branch office and is not subject to the issuance of any license, certificate or prior approval of the Commissioner, the Department of Business and Industry or the Division of Financial Institutions before establishment.

      Sec. 58. NRS 673.115 is hereby amended to read as follows:

      673.115  1.  [An association] A savings bank shall not issue or publish, or cause or permit to be issued or published, any advertisement that it is doing or is permitted to do any business which is prohibited by law to [an association,] a savings bank, or which misrepresents the nature of its stock, investment certificates, savings deposits or the right of investors or depositors in respect thereto.

      2.  [An association] A savings bank may set forth in any of its advertisements any of the purposes for which it is organized.

      3.  [An association] A savings bank shall not issue, circulate or publish any advertisement after notice in writing from the Commissioner that in his or her opinion the advertisement is unauthorized, false, misleading or likely to deceive the public.

      4.  [An association] A savings bank shall not:

      (a) State in any advertisement that it is under state supervision or control.

      (b) Include in any advertisement or in any instrument used by it a replica of the Great Seal of the State of Nevada.

      (c) [State or imply in any advertisement that money may be invested with the association at any place other than the principal office or branch of the association.

      (d)] Use the word “deposit” or “deposits” in any form of advertising [, unless the use of that word is authorized in the advertising of a federal savings and loan association pursuant to] that would be prohibited under federal law.

      [5.  No association may offer or deliver any gift or premium to any investor or saver of an investment certificate or to any savings depositor in excess of basic cost to the association of $2.50.]

 


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      Sec. 59. NRS 673.117 is hereby amended to read as follows:

      673.117  1.  [Except as otherwise provided in NRS 673.110, a] A licensee must obtain the approval of the Commissioner before using or changing a business name.

      2.  A licensee shall not:

      (a) Use any business name which is identical or similar to a business name used by another licensee under this chapter [or] which may mislead or confuse the public.

      (b) Use any printed forms which may mislead or confuse the public.

      Sec. 60. NRS 673.207 is hereby amended to read as follows:

      673.207  1.  The business and affairs of every [association] savings bank must be managed and controlled by a board of not less than five nor more than 25 directors, a majority of which must not [more than a minority, but not more than three, may] be full-time officers of the [association.] savings bank. The persons designated in the articles of incorporation are the first directors.

      2.  Vacancies in the board of directors must be filled by vote of the stockholders at the annual meetings or at a special meeting called for that purpose. The board of directors may fill vacancies occurring on the board, such appointees to serve until the next annual meeting of the stockholders.

      3.  The board of directors of [any association] a savings bank may amend the bylaws of the [association.] savings bank.

      Sec. 61. NRS 673.208 is hereby amended to read as follows:

      673.208  No person is eligible to serve as a director of [an association] a savings bank without the written permission of the Commissioner if he or she:

      1.  Has been adjudicated [a] bankrupt or has taken the benefit of any assignment for the benefit of creditors or has suffered a judgment recovered against him or her for a sum of money to remain unsatisfied of record or not safeguarded by supersedeas bond on appeal for a period of more than 3 months.

      2.  Is a director, officer or employee of any other unaffiliated savings [and loan association.] bank.

      3.  Is an officer or employee of [a] an unaffiliated commercial bank in this state.

      4.  Is not an investor in the [association,] savings bank or its holding company, if applicable, owning in his or her own right or in a representative capacity as an executor, administrator, guardian or trustee stock in the [association] savings bank or its holding company, if applicable, of the par value of at least $1,000, or full-paid investment certificates in the [association] savings bank or its holding company, if applicable, of the value of at least $1,000. For the purpose of this chapter, a person who owns stock or investment certificates as a joint tenant with one other person shall be deemed to own, in his or her own right, one-half of the stock or investment certificates.

      5.  Sells or hypothecates all the stock or investment certificates owned by him or her, or so much thereof that he or she ceases to be the owner, free from encumbrances, of the amount of stock or investment certificates required by subsection 4.

      Sec. 62. NRS 673.209 is hereby amended to read as follows:

      673.209  If the Commissioner notifies the board of directors of any [association,] savings bank, in writing, that he or she has information that any director, officer or employee of the [association] savings bank is failing in the performance of his or her duties, the board of directors shall meet and consider the matter forthwith.

 


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in the performance of his or her duties, the board of directors shall meet and consider the matter forthwith. The Commissioner must have notice of the time and place of the meeting. If the board of directors finds the Commissioner’s objection to be well founded, the director, officer or employee shall be removed immediately.

      Sec. 63. NRS 673.212 is hereby amended to read as follows:

      673.212  Directors and officers of [an association shall be deemed to stand in a fiduciary relation to the association and] a savings bank shall discharge the duties of their respective positions in good faith and with the diligence, care and skill which ordinary, prudent persons would exercise under similar circumstances in a similar position.

      Sec. 64. NRS 673.214 is hereby amended to read as follows:

      673.214  [1.]  The board of directors of [the association] a savings bank shall elect the officers named in the bylaws of the [association,] savings bank, which officers shall serve at the pleasure of the board of directors.

      [2.  The principal officers’ salaries shall be set by the board of directors.]

      Sec. 65. NRS 673.215 is hereby amended to read as follows:

      673.215  1.  The board of directors of each [association] savings bank shall hold a regular meeting at least once each quarter, at a time to be designated by it in accordance with its bylaws.

      2.  Special meetings of the board of directors may be held upon notice to each director sufficient to permit his or her attendance. The president or any three members of the board of directors may call a meeting of the board of directors by giving notice to all of the directors.

      3.  At any meeting of the board of directors, a majority of the members constitutes a quorum for the transaction of business.

      Sec. 66. NRS 673.216 is hereby amended to read as follows:

      673.216  Every official communication by the Commissioner directed to the board of directors of [an association] a savings bank must be [read] presented at the next meeting of the board of directors and made a part of the minutes of the meeting.

      Sec. 67. NRS 673.2176 is hereby amended to read as follows:

      673.2176  1.  [An association] A savings bank shall immediately notify the Commissioner of any change or proposed change in ownership of the [association’s] stock of the savings bank which would result in any person, including a business trust, obtaining 5 percent or more of the [association’s] outstanding capital stock [.] of the savings bank.

      2.  An application must be submitted to the Commissioner, pursuant to NRS 673.080, by a person who acquires:

      (a) At least 25 percent of [an association’s] the outstanding stock [;] of the savings bank; or

      (b) Any outstanding stock of [an association] a savings bank if the change will result in a change in the control of the [association.] savings bank.

Ê Except as otherwise provided in subsection 4, the Commissioner shall conduct an investigation to determine whether the character and responsibility of the applicant is such as to command the confidence of the community in which the [association] main office of the savings bank is located. If the Commissioner denies the application, he or she may forbid the applicant from participating in the business of the [association.] savings bank.

 


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      3.  The [association] savings bank with which the applicant is affiliated shall pay such a portion of the cost of the investigation as the Commissioner requires. All money received by the Commissioner pursuant to this section must be placed in the Investigative Account for Financial Institutions created by NRS 232.545.

      4.  A savings [and loan association] bank may submit a written request to the Commissioner to waive an investigation pursuant to subsection 2. The Commissioner may grant a waiver if the applicant has undergone a similar investigation by a state or federal agency in connection with the licensing of or his or her employment with a financial institution.

      Sec. 68. NRS 673.218 is hereby amended to read as follows:

      673.218  [An association] A savings bank may provide for pensions, retirement plans and other benefits for its officers and employees, and may contribute to the cost thereof in accordance with the plan adopted by its board of directors.

      Sec. 69. NRS 673.219 is hereby amended to read as follows:

      673.219  The board of directors shall approve the depositary or depositaries for funds of the [association.] savings bank.

      Sec. 70. NRS 673.221 is hereby amended to read as follows:

      673.221  1.  It is unlawful for an officer, director, employee or capital stockholder of [an association:] a savings bank:

      (a) To solicit, accept or agree to accept, directly or indirectly, from any person other than the [association,] savings bank or an affiliate of the savings bank, any gratuity, compensation or other personal benefit for any action taken by the [association] savings bank or for endeavoring to procure any such action.

      (b) To have any interest, direct or indirect, in the purchase at less than its face value of any evidence of a [savings] deposit account or other indebtedness issued by the [association,] savings bank, excluding stock certificates and junior capital notes.

      2.  It is unlawful for any stockholder with more than 5 percent of the outstanding capital stock of [an association,] a savings bank or any director or principal officer, to have any interest, direct or indirect, in the proceeds of a loan or of a purchase or sale made by the [association,] savings bank, unless the loan, purchase or sale complies with the provisions of NRS 673.3244 or is otherwise authorized expressly by this chapter or by a resolution of the board of directors of the [association.] savings bank. The resolution must be approved by a vote of at least two-thirds of all the directors of the [association,] savings bank, and an interested director may not take part in the vote. The loan must also conform to federal regulations for the insurance of accounts.

      3.  Any violation of the provisions of this section is a misdemeanor.

      Sec. 71. NRS 673.2211 is hereby amended to read as follows:

      673.2211  Any [association] savings bank director, officer or other person who knowingly and willingly participates in any violation of the laws of this state relative to savings [and loan associations] banks is liable for all damage which the savings [and loan association,] bank, its stockholders, savings depositors or creditors sustain in consequence of such violation.

      Sec. 72. NRS 673.222 is hereby amended to read as follows:

      673.222  [1.  An association shall pay on behalf of or reimburse an officer, director or employee for the expenses of defending an action brought on behalf of the association or the savings account holders, other creditors or borrowers thereof, founded upon any act or acts performed or omitted by such person acting as such officer, director or employee under the following conditions:

 


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borrowers thereof, founded upon any act or acts performed or omitted by such person acting as such officer, director or employee under the following conditions:

      (a) If the person is adjudicated to be not liable, then all reasonable expenses of such litigation shall be paid by the association.

      (b) If the person is held to be liable on certain items and not liable on others, the association shall pay the proportion of the total reasonable expense of the litigation which the items on which he or she is held to be not liable bear to all the items alleged.

      2.  If, in the opinion of the association, any such person is not liable upon the substantive issues alleged, the association is authorized to compromise and settle such claim or litigation in its discretion and to pay the entire expense thereof, including the compromise settlement, if the expense is reasonable. Any action taken by the association under this subsection requires approval by a vote of at least two-thirds of all the directors of the association (an interested director taking no part in the vote), or by a majority vote of the stockholders.] Nothing in this chapter limits the authority of a savings bank to indemnify and defend, or to provide reimbursement for expenses of defending an action to, officers, directors, employees, agents or other parties as such authority may be provided under the laws of this State, if such indemnification does not violate the limitations on indemnification imposed by section 18(k) of the Federal Deposit Insurance Act, 12 U.S.C. § 1828(k), and the regulations issued thereunder by the Federal Deposit Insurance Corporation.

      Sec. 73. NRS 673.225 is hereby amended to read as follows:

      673.225  1.  Notwithstanding any other provision of this chapter, every [company, association or corporation] savings bank licensed under the provisions of this chapter whose accounts are insured by the Federal Deposit Insurance Corporation or its successor, [or which is a member of a Federal Home Loan Bank or its successor as an insured association,] has the same rights, powers, privileges, immunities and exceptions which are possessed by any [federally chartered association unless] federal savings bank, including all such fiduciary powers that a federal savings bank is authorized to exercise, except as may be expressly denied or limited by the Commissioner [.] after notice and a hearing.

      2.  Whenever additional rights, powers, privileges or exceptions are granted to any [federally chartered association, every company, association or corporation] federal savings bank, including under principles of federal preemption, every savings bank licensed under the provisions of this chapter whose accounts are federally insured has those additional rights, powers, privileges or exceptions [unless] , except as may be expressly denied or limited by the Commissioner [.] after notice and a hearing.

      3.  If federal law conflicts with any of the provisions of this chapter, except as otherwise provided by the Commissioner, the provisions of federal law shall prevail as to such conflict, and satisfaction of any obligations imposed under federal law by the savings bank shall be deemed to also satisfy the obligations of the savings bank under state law.

      4.  In addition to all powers otherwise granted by this chapter, every savings bank licensed under the provisions of this chapter has the powers, privileges and authorities granted by regulations promulgated under the Federal Deposit Insurance Act for foreign savings banks, except as may be expressly denied or limited by the Commissioner after notice and hearing.

 


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      5.  A savings bank shall have any power reasonably incident, convenient or useful to the accomplishment of the powers conferred upon the savings bank by this chapter.

      Sec. 74. NRS 673.227 is hereby amended to read as follows:

      673.227  1.  [An association] A savings bank may purchase or lease property for its office buildings or construct its office buildings on property purchased or leased by it, if the total cost of land and improvements does not exceed 70 percent of the sum of the [association’s] capital, surplus and reserves [.] of the savings bank.

      2.  With the approval of the Commissioner, senior capital notes of the Federal Deposit Insurance Corporation may be included in capital for the purposes of this section.

      Sec. 75. NRS 673.228 is hereby amended to read as follows:

      673.228  1.  [An association may act as a trustee or custodian as provided by the Federal Employee Retirement Security Act of 1974, as amended or supplemented.

      2.  An association] A savings bank shall have the powers, privileges and authorities to engage in trust company business, including engaging in custodial activities and establishing common trust funds, either directly or indirectly through a subsidiary, that any state bank, foreign bank, foreign savings bank, national bank or federal savings bank may exercise, subject to the requirements and conditions for engaging in such business of a trust company set forth in this section.

      2.  Before engaging in trust company business, a savings bank shall apply to the Commissioner on such form as he or she shall determine and pay the same fee as required for a state bank to engage in trust company business. In considering such an application, the Commissioner shall determine whether:

      (a) The management and personnel of the savings bank are qualified to conduct trust company business;

      (b) Trust company business will be adequately conducted in compliance with the law; and

      (c) The financial and managerial resources of the savings bank are sufficient to support the conduct of trust company business.

      3.  A savings bank subscribing to trustee and custodial power authorized by this section shall be required to segregate all funds held in such fiduciary capacity from the general assets of the [association] savings bank and keep a separate set of books and records showing in proper detail all transactions engaged in under the authority of this section.

      [3.]4.  If individual records are kept of each self-employed individual retirement plan, all funds held in such trust or custodial capacity by the [association] savings bank may be commingled for appropriate purposes of investment.

      [4.]5.  No funds held in [such] a fiduciary capacity by a savings bank may be used by the [association] savings bank in the conduct of its business, although such funds may be invested in the [savings] deposit accounts of the [institution] savings bank if the trust or custodial retirement plan does not prohibit the investment.

      6.  As used in this section, “business of a trust company” or “trust company business” has the meaning ascribed to it in NRS 669.029.

 


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      Sec. 76. NRS 673.250 is hereby amended to read as follows:

      673.250  1.  No [association] savings bank may sell or issue any of its common or preferred stock until it has first applied for and secured from the Commissioner a license authorizing it so to do as provided in NRS 673.080.

      2.  Every license must recite in bold type that the issuance of the license is permissive only and does not constitute a recommendation or endorsement of the stock permitted to be issued.

      3.  Before the sale of, or option to buy, any additional authorized but unissued common or preferred stock, the [association] savings bank must have the written approval of the Commissioner.

      4.  The Commissioner may impose conditions requiring the impoundment of the proceeds from the sale of any stock, limiting the expense in connection with the sale and such other conditions as are reasonable and necessary or advisable to ensure the disposition of the proceeds from the sale of the stock in the manner and for the purposes provided in the license.

      Sec. 77. NRS 673.260 is hereby amended to read as follows:

      673.260  1.  The license specified in NRS 673.250 authorizes the company, [association] savings bank or corporation to whom it is issued to sell its approved securities and contracts within this State for the remainder of the fiscal year ending on June 30 next succeeding. Each license is renewable, under like restrictions, annually thereafter.

      2.  For the issuing of any license provided for in NRS 673.250 and for any renewal thereof, the fee of the Commissioner is:

      (a) For [each home] the main office, not more than $400; and

      (b) For each branch office, not more than $200.

      3.  The fees must accompany the license renewal application. A penalty of 10 percent of the fee payable must be charged for each month or part thereof that the fees are not paid after June 30 of each year.

      4.  The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section. [All sums received by the Commissioner pursuant to this section must be deposited in the State Treasury pursuant to the provisions of NRS 658.091.]

      Sec. 78. NRS 673.2755 is hereby amended to read as follows:

      673.2755  1.  [An association] A savings bank may issue investment certificates, with or without passbooks. The holders of investment certificates are not liable for debts or assessments, and are entitled upon liquidation of [an association] a savings bank to receive payment in full before any payment or distribution is made to stockholders. The holders of investment certificates have no right to participate in the profits of the [association.] savings bank.

      2.  Investment certificates may be issued as fully paid investment certificates, accumulative investment certificates, minimum term investment certificates or other types of certificates approved by the Commissioner. The Commissioner shall not approve any certificates whose issuance would impair the insurance of the [association’s] accounts of the savings bank by the Federal Deposit Insurance Corporation.

      Sec. 79. NRS 673.2758 is hereby amended to read as follows:

      673.2758  A reserve for losses shall be maintained by each [association,] savings bank, which shall allow for the write-down of assets to their fair market value in accordance with generally accepted accounting principles [.]

 


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principles [.] to the same extent that such principles are used to determine compliance with federal regulations applicable to federal savings banks.

      Sec. 80. NRS 673.276 is hereby amended to read as follows:

      673.276  [An association] A savings bank may invest in:

      1.  Without limit, obligations of, or obligations guaranteed as to principal and interest by, the United States or any state.

      2.  Obligations of the United States Postal Service, whether or not guaranteed as to principal and interest by the United States.

      3.  Stock of a Federal Home Loan Bank or Federal Reserve Bank of which the [association] savings bank is eligible to be a member.

      4.  Any obligations or consolidated obligations of any Federal Home Loan Bank or Banks [.] or any Federal Reserve Bank or Banks.

      5.  Stock or obligations of the Federal Deposit Insurance Corporation.

      6.  Stock or obligations of a national mortgage association or any successor or successors thereto, including the Federal National Mortgage Association [.] or the Federal Home Loan Mortgage Corporation.

      7.  Demand, time or savings deposits with any bank, credit union or trust company whose deposits are insured by the Federal Deposit Insurance Corporation, the National Credit Union Share Insurance Fund or a private insurer approved pursuant to NRS 678.755.

      8.  Stock or obligations of any corporation or agency of the United States or any state, or in deposits therewith to the extent that such a corporation or agency assists in furthering or facilitating the [association’s] purposes or powers [.] of the savings bank.

      9.  [Savings] Deposit accounts of any insured [association] depository institution licensed by the State and of any [federal savings and loan association,] federally chartered depository institution, if the accounts of [the savings and loan association] such institution are insured by the Federal Deposit Insurance Corporation.

      10.  Bonds, notes or other evidences of indebtedness which are general obligations of any city, town, county, school district or other municipal corporation or political subdivision of any state.

      11.  Any other investment at the discretion of the [association’s] directors of the savings bank if, after the investment is made, the [association’s] accounts of the savings bank remain insurable by the Federal Deposit Insurance Corporation.

      Sec. 81. NRS 673.2765 is hereby amended to read as follows:

      673.2765  [1.  An association] A savings bank may invest in the capital stock, obligations or other securities of a related service [corporation organized under the laws of this state, except a corporation organized for the underwriting or sale of insurance,] company, operating subsidiary or financial subsidiary, subject to any regulations concerning the insurability of the [association’s] accounts of the savings bank by the Federal Deposit Insurance Corporation and to whatever regulations the Commissioner may impose in this regard, if the entire capital stock of the corporation is available for purchase by [associations organized under the laws of this state only.

      2.  No association may make the investment if its aggregate, outstanding investments, pursuant to subsection 1, would then be in excess of 1 percent of its assets.] insured depository institutions under any federal or state law.

      Sec. 82. NRS 673.2766 is hereby amended to read as follows:

      673.2766  1.  Any investment in real property for purposes of subdivision or for residential development must not exceed the market value or appraisal valuation as evidenced by an appraisal report prepared within 120 days of the investment by a member of the [American Institute of Real Estate Appraisers, the Society of Real Estate Appraisers,] Appraisal Institute or the National Association of Independent Fee Appraisers , [Society,] or by such other appraiser as may be approved by the Commissioner.

 


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or appraisal valuation as evidenced by an appraisal report prepared within 120 days of the investment by a member of the [American Institute of Real Estate Appraisers, the Society of Real Estate Appraisers,] Appraisal Institute or the National Association of Independent Fee Appraisers , [Society,] or by such other appraiser as may be approved by the Commissioner.

      2.  [Within 30 days after the investment is made, the association shall provide the Commissioner with a certified copy of one or more appraisal reports on the real property involved and with a title insurance company report, reflecting the chain of title for a period of at least 3 years and the amount of consideration, as available, given for each title transfer that may have occurred during the reported period.

      3.]  The Commissioner may require a statement from the [association] savings bank disclosing whether any director, officer or employee of the [association] savings bank has a direct or indirect interest in the real property involved or has had an interest at any time during the past 3 years. Stock ownership in an interested corporation may be considered the direct or indirect interest of the investor. Failure to make a required disclosure is unlawful.

      Sec. 83. NRS 673.278 is hereby amended to read as follows:

      673.278  The power of [an association] a savings bank to make loans shall include:

      1.  The power to purchase loans of any type that the [association] savings bank may make.

      2.  The power to make loans upon the security of loans of any type that the [association] savings bank may make.

      Sec. 84. NRS 673.279 is hereby amended to read as follows:

      673.279  [An association] A savings bank may invest its funds in the purchase of real property contracts under the following conditions only:

      1.  That it must acquire the merchantable title to the property covered by such contracts.

      2.  That the type of property be such as would be eligible for a mortgage or deed of trust loan under this chapter.

      3.  Before making any such purchase, the property shall be appraised or evaluated and the purchase approved [,] in the same manner as in the case of the purchase of loans secured using a mortgage or deed of trust [loans, by the board or the executive committee of the association.] on real estate.

      Sec. 85. NRS 673.280 is hereby amended to read as follows:

      673.280  Any savings [and loan association] bank may invest its funds, or money in its custody, [in the bonds of the Home Owners’ Loan Corporation or] in the bonds of any Federal Home Loan Bank [,] or Federal Reserve Bank, or in consolidated Federal Home Loan Bank or Federal Reserve Bank bonds, debentures or notes, or in farm loan bonds, consolidated farm loan bonds, debentures, consolidated debentures and other obligations issued by federal land banks and federal intermediate credit banks under the authority of [the Federal Farm Loan Act, formerly 12 U.S.C. §§ 636 to 1012, inclusive, and §§ 1021 to 1129, inclusive, and] the Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to 2259, inclusive, as amended or supplemented, and the bonds, debentures, consolidated debentures and other obligations issued by banks for cooperatives under the authority of the Farm Credit Act, formerly 12 U.S.C. §§ 1131 to 1138e, inclusive, and the Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to 2259, inclusive, as amended or supplemented.

 


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      Sec. 86. NRS 673.300 is hereby amended to read as follows:

      673.300  1.  Any savings [and loan association] bank which may now or hereafter be eligible to become a member of any Federal Home Loan Bank according to the terms of the Federal Home Loan Bank Act of 1932, 12 U.S.C. §§ 1421 to 1449, inclusive, as amended or supplemented, may:

      (a) Subscribe for, purchase, own and hold stock in such Federal Home Loan Bank, and become a member thereof.

      (b) Borrow money from any Federal Home Loan Bank pursuant to the Federal Home Loan Bank Act, as amended or supplemented.

      (c) Invest in the bonds of any Federal Home Loan Bank.

      (d) Give its obligations and pledge securities and conform to the provisions of the Federal Home Loan Bank Act, and to the rules and regulations from time to time fixed and prescribed either by the Federal Home Loan Bank Board or the Federal Home Loan Bank of which it is a member.

      (e) Perform any acts and execute any instruments authorized or required by the Federal Home Loan Bank Act, as amended or supplemented, or by rules and regulations adopted pursuant to the Act.

      2.  All acts authorized by subsection 1 performed prior to March 18, 1935, are hereby validated and confirmed.

      Sec. 87. NRS 673.301 is hereby amended to read as follows:

      673.301  The power of [an association] a savings bank to borrow money and contract debts shall include the power to issue capital notes evidencing such borrowings and to subordinate the same to investment certificates and other liabilities. [An association] A savings bank may confer upon the holders of any capital notes, issued or to be issued by the [association,] savings bank, such rights to vote in the election of directors and on any other matters as shall be stated and expressed in the articles of incorporation, or in any amendment thereto.

      Sec. 88. NRS 673.302 is hereby amended to read as follows:

      673.302  The aggregate amount of all borrowings of any [association in force at any one time, excluding borrowings from the Federal Home Loan Banks, the Federal Deposit Insurance Corporation or other similar federal agencies, must not exceed 5 percent of the total assets of the association without the approval of the Commissioner. The Commissioner shall not approve any borrowing] savings bank shall not exceed an amount which would impair the insurance of the [association’s] accounts of the savings bank by the Federal Deposit Insurance Corporation.

      Sec. 89. NRS 673.310 is hereby amended to read as follows:

      673.310  1.  Subject to such regulations as may be prescribed by the Federal Housing [Administrator] Administration or Department of Veterans Affairs, savings [and loan associations] banks may:

      (a) Make such loans and advances of credit, and purchases of obligations representing the loans and advances of credit, as are eligible for insurance by the Federal Housing [Administrator] Administration or are guaranteed by the Department of Veterans Affairs, and to obtain such insurance.

      (b) Make such loans secured by mortgages on real property as are eligible for insurance by the Federal Housing [Administrator] Administration or are guaranteed by the Department of Veterans Affairs, and to obtain such insurance.

      (c) Purchase, invest in and dispose of notes or bonds secured by mortgages insured by the Federal Housing [Administrator] Administration or guaranteed by the Department of Veterans Affairs, securities of national mortgage associations, and debentures issued by the Department of Veterans Affairs or the Federal Housing [Administrator.]

 


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or guaranteed by the Department of Veterans Affairs, securities of national mortgage associations, and debentures issued by the Department of Veterans Affairs or the Federal Housing [Administrator.] Administration.

      2.  No law of this State, nor any articles of incorporation or bylaws of any savings [and loan associations,] bank, prescribing the nature, amount or form of security or requiring security upon which loans or advances of credit may be made, prescribing or limiting interest rates upon loans or advances of credit, or prescribing or limiting the period for which loans or advances of credit may be made, applies to loans, advances of credit or purchases made pursuant to subsection 1.

      3.  All loans, advances of credit, and purchases of obligations described in this section made and insured pursuant to the terms of the National Housing Act [or Servicemen’s Readjustment Act of 1944] , 12 U.S.C. §§ 1701 et seq., are hereby validated and confirmed.

      Sec. 90. NRS 673.315 is hereby amended to read as follows:

      673.315  1.  Notwithstanding any other provision of law, any savings [and loan association] bank organized under the laws of this State, which has as one of its principal purposes the making or purchasing of loans secured by real property mortgages, is authorized to sell such mortgage loans to the Federal National Mortgage Association [,] or the Federal Home Loan Mortgage Corporation, a corporation chartered by an Act of Congress, or any successor thereof, and in connection therewith to make payments of any capital contributions, required pursuant to law, in the nature of subscriptions for stock of the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, or any successor thereof, to receive stock evidencing such capital contributions, and to hold or dispose of such stock.

      2.  Any savings bank organized under the laws of this State, which engages in the making or purchasing of federally guaranteed student loans is authorized to sell such student loans to SLM Corporation, or any successor thereof, and in connection therewith to make payments of any capital contributions, required pursuant to law, in the nature of subscriptions for stock of SLM Corporation, or any successor thereof, to receive stock evidencing such capital contributions, and to hold or dispose of such stock.

      Sec. 91. NRS 673.316 is hereby amended to read as follows:

      673.316  1.  [Nothing in this chapter requires any association to sell, transfer or dispose of any investment or loan made or purchased by the association before March 30, 1959. Any association may:

      (a) Renew, extend the time of payment of, or rewrite any loan made before that date.

      (b)]Any savings bank may:

      (a) Make additional advances or loans for the purpose of preserving the security of the loan or for the purpose of protecting the property securing the loan.

      [(c)](b) Make any renewal, extension, advance or loan to the borrower or to any successor in interest in the property securing the loan.

      [(d)](c) Make loans on property sold by [an association] a savings bank or extend credit thereon for the purpose of facilitating the sale of the property regardless of any other provision of this chapter.

      2.  No advance or loan may be made under the provisions of this section if the advance or loan would increase the total liability to the [association] savings bank making the advance or loan to [more than 2 percent of total assets, except with the approval of the Commissioner.]

 


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assets, except with the approval of the Commissioner.] a level that would be prohibited pursuant to regulations applicable to federally chartered banks as set forth by the Office of the Comptroller of the Currency.

      3.  For the purpose of preserving the security of any loan or of protecting the property securing any loan made in compliance with this chapter, [an association] a savings bank may make additional advances or loans to the borrower or any successor in interest in the property securing the loan. Regardless of any other provision of this chapter [an association] , a savings bank may make loans or extend credit for the purpose of facilitating the sale of property acquired by repossession, foreclosure or conveyance in lieu of foreclosure if that activity conforms to generally accepted accounting practices.

      Sec. 92. NRS 673.318 is hereby amended to read as follows:

      673.318  Every [association] savings bank shall appraise or evaluate each parcel of real estate at the time of acquisition thereof [. The report of each appraisal must be submitted in writing to the board of directors and must be kept in the records of the association. The Commissioner may require the appraisal of real estate securing loans by an appraiser selected by the Commissioner. The association whose securities are appraised under this section shall pay the expense of the appraisal to the Commissioner upon demand. Money so received must be deposited in the State Treasury pursuant to the provisions of NRS 658.091. Copies of appraisals must be furnished to the association.] , except where such appraisal or evaluation is not required under federal law.

      Sec. 93. NRS 673.324 is hereby amended to read as follows:

      673.324  1.  [An association] A savings bank may make any loan which:

      (a) Is secured by real property;

      (b) Is secured by personal property [;] , including, without limitation, stock or other securities;

      (c) Results from a credit card issued by the [association;] savings bank;

      (d) Is unsecured;

      (e) Is made to the United States, its agencies or any governmental agency of the State of Nevada; or

      (f) Is made at the discretion of the [association’s] directors [,] of the savings bank if the loan will not impair the insurability of the [association’s] accounts of the savings bank by the Federal Deposit Insurance Corporation.

      2.  Additional loans or advances on the same property, without intervening liens, shall be deemed to be first liens for the purpose of this chapter.

      Sec. 94. NRS 673.3244 is hereby amended to read as follows:

      673.3244  [1.  No association may make any loans to a:

      (a) Corporation if the majority of the stock is owned or controlled individually or collectively by any one or more of the directors, officers or majority stockholders of the association; or

      (b) Partnership if the limited or general partner is a director, officer or the majority owner of the association,

Ê unless the loan is expressly authorized by this chapter or by a resolution of the board of directors of the association. The resolution must be approved by a vote of at least two-thirds of all the disinterested directors of the association.

 


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      2.  An association may make loans to any corporation or partnership in which a director or officer of the association is a minority stockholder or partner if the loan is authorized or confirmed, at a meeting held within 30 days after the loan is made, by the affirmative vote of all the disinterested directors of the association present at the meeting and if the affirmative vote constitutes a majority of all the directors of the association. The interested director or officer shall not vote or participate in any manner in the action of the board of directors upon the loan. The authorization or confirmation must be entered in the minutes of the association. The loan must in all other respects comply with the provisions covering the granting of loans.

      3.  If a loan is made to a corporation or partnership as set forth in subsection 2, and if the director or officer of the association owns more than 10 percent of the paid-in capital of the corporation, or if any two or more officers or directors own more than 20 percent of the paid-in capital of the corporation or if any one or more of the directors is a general partner, the association shall file reports with the Commissioner showing the following:

      (a) The fact of making the loan.

      (b) The names of the directors authorizing or confirming the loan.

      (c) The corporate or partnership name of the borrower.

      (d) The name of each director or officer of the association who is a stockholder, officer, director or partner of the corporation or partnership to which the loan was made.

      (e) The amount of stock held by the officer or director in the corporation.

      (f) The amount of the loan, the rate of interest thereon, the time when the loan becomes due, the amount, character and value of the security given therefor, and the fact of final payment when made.

      4.  All officers, directors or stockholders holding more than 10 percent of the paid-in capital of the association shall disclose annually to the Commissioner their investments in any partnership or corporation to which a loan is made. If any changes in those investments occur, the Commissioner must be notified.] No savings bank may make any loan to a director, officer or principal shareholder of the savings bank or any company owned or controlled by the savings bank if such a loan would be prohibited for a bank that is subject to 12 C.F.R. Part 215, commonly known as Regulation O.

      Sec. 95. NRS 673.3255 is hereby amended to read as follows:

      673.3255  1.  [An association] A savings bank may make or invest [any of its money] in a loan to finance a borrower’s interest in or to refinance his or her existing interest in a cooperative housing corporation if the loan is secured by:

      (a) A first security interest in stock or a certificate of membership in the cooperative housing corporation; and

      (b) An assignment of or lien on the borrower’s interest in the lease or other right of tenancy to a dwelling unit of the cooperative housing corporation.

      2.  A first security interest may exist even though a mortgage or deed of trust encumbers the property owned by the cooperative housing corporation if the stock or certificate of membership in the corporation and the borrower’s lease or other right of tenancy are not encumbered with a prior security interest. For purposes of this chapter, additional loans or advances on the same interest in a cooperative housing corporation, without intervening liens, shall be deemed to be first security interests. For purposes of this chapter, the interest in a cooperative housing corporation which is encumbered by a security interest shall be deemed to be real property and security interest shall be deemed to be a mortgage on real property.

 


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of this chapter, the interest in a cooperative housing corporation which is encumbered by a security interest shall be deemed to be real property and security interest shall be deemed to be a mortgage on real property.

      Sec. 96. NRS 673.3271 is hereby amended to read as follows:

      673.3271  [1.  An association] A savings bank shall not make at one time loans to any one borrower, or under any one transaction, or applicable to any one project, or tract, if the [loans in the aggregate are in excess of whichever of the following is the lesser:

      (a) Ten percent of its total savings accounts, unless that requirement is waived by written approval of the Commissioner.

      (b) An amount equal to the sum of its capital, surplus, undivided profits, loan reserve, federal insurance reserve, capital notes and such other reserves as the Commissioner may prescribe.

      2.  For the purpose of this section, the term “one borrower” means:

      (a) Any person or entity that is, or that upon the making of a loan will become, obligor on a loan.

      (b) Nominees of the obligor.

      (c) All persons, trusts, partnerships, syndicates and corporations of which the obligor is a nominee or a beneficiary, partner, member, or stockholder of record or beneficial interest stockholder owning 10 percent or more of the capital stock of any corporation.

      (d) If the obligor is a trust, partnership, syndicate or corporation, all trusts, partnerships, syndicates and corporations of which any beneficiary, partner, member, or stockholder of record or beneficial interest stockholder owning 10 percent or more of the capital stock is also a beneficiary, partner, member or stockholder of record or beneficial interest stockholder owning 10 percent or more of the capital stock of the association.

      3.  For the purpose of this section, the term “loans to any one borrower” means the amount of the new loan plus the total balances of all outstanding loans owed to the association by the borrower. Notwithstanding any other limitations of this section, the loan may be made if the new loan when added to the total balances of all outstanding loans owed to the association by the borrower does not exceed $250,000.

      4.  For the purpose of this section, the term “balances of all outstanding loans” means the original amounts loaned by the association plus any additional advances and interest due and unpaid, less repayments and participating interests sold and exclusive of any loan on the security of real estate the title to which has been conveyed to a bona fide purchaser of the real estate.

      5.  If an association makes a loan to any one borrower in an amount which, when added to the total balances of all outstanding loans owed to the association by the borrower, exceeds $250,000, the records of the association with respect to the loan must include documentation showing that the loan was made within the limitations of this chapter. For the purpose of that documentation, the association may require, and may accept in good faith, a certification by the borrower identifying the persons, entities and interests described in the definition of one borrower in subsection 2.] savings bank would be prohibited from making such a loan under federal law applicable to federal savings banks pursuant to 12 C.F.R. § 32.3.

 

 


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      Sec. 97. NRS 673.3272 is hereby amended to read as follows:

      673.3272  1.  [An association] A savings bank may pay:

      (a) Current or past-due taxes , [or] assessments or other applicable fees levied upon secured property;

      (b) Insurance premiums;

      (c) Life insurance premiums on policies that [an association] a savings bank may require to be assigned as additional collateral; or

      (d) [Other] Any similar or other charges required for the protection or preservation of its investments [.] or as necessary to discharge any lien.

Ê Such payments shall be added to the unpaid loan balance and shall have the same secured status under the deed of trust provisions as the loan itself. No [association] savings bank may require, as a condition of loan approval or in the extension of any other service, that any kind of insurance coverage be purchased from or through the [association] savings bank or from any agency in which a director or officer of the corporation has any interest.

      2.  [An association] A savings bank may require advance monthly payments on:

      (a) Principal.

      (b) Interest.

      (c) Taxes.

      (d) Assessments.

      (e) Insurance premiums.

      (f) Other statutory charges accruing upon the secured property.

Ê [Each] The amount of each such payment and the period over which payment will be made may be agreed upon by the parties. In the absence of such an agreement, each such payment may be equivalent to one-twelfth of the estimated annual amount due. Monthly charges may be adjusted to provide a reasonable method for the payment of estimated taxes, assessments, insurance premiums and other charges. Upon receipt thereof such payments may be carried in a separate trust account or they may be applied to the loan account as a credit upon receipt and debit when disbursed.

      Sec. 98. NRS 673.332 is hereby amended to read as follows:

      673.332  1.  [An association] A savings bank may hold, manage and convey real property, including apartments and other buildings:

      (a) Acquired at or by foreclosure of the real property or a conveyance in lieu of foreclosure; or

      (b) Developed or built by the [association.] savings bank.

Ê Unless the [association] savings bank has received a written waiver from the Commissioner, the total of money which it has advanced or committed for property which it has developed or built may not exceed twice the sum of its capital, surplus, undivided profits, loan reserve, federal insurance reserve and any other reserves specified by the Commissioner.

      2.  When [an association] a savings bank acquires title to any real property pursuant to subsection 1, the document representing the transaction must be recorded . [immediately.] This subsection does not require recordation of the evidences of any transfer of stock resulting from foreclosure of an interest in a cooperative housing corporation.

      [3.  An appropriate real-estate-owned account must be set up for the property acquired and a separate subsidiary ledger or other appropriate record must be maintained therefor. The amount carried in the account must be the sum of the unpaid principal balance of the loan plus foreclosure costs, less any advance payments and any money held in the loans-in-process account at the time of acquisition, together with:

 


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less any advance payments and any money held in the loans-in-process account at the time of acquisition, together with:

      (a) Any amounts paid after acquisition for real property taxes which have accrued before acquisition;

      (b) Assessments due or delinquent at the time of acquisition; and

      (c) Necessary acquisition costs and costs of insurance premiums.

      4.  The subsidiary ledger record or other appropriate record on each property acquired must indicate:

      (a) The type and character of the property acquired.

      (b) All capitalized items of investment with related costs.

      (c) Former loan or contract of sale account numbers.]

      Sec. 99.  NRS 673.340 is hereby amended to read as follows:

      673.340  1.  Any savings [and loan association and any federal savings and loan association operating in this state] bank may issue [savings] deposit accounts or investment certificates to minors with the written consent of their parents, trustees or guardians, and to married persons, each in their own right.

      2.  Any payment thereon, or delivery thereof, or of any rights thereunder, to a minor of the age of 14 years or over, or to a married person, or a receipt or acquittance signed by the minor and parent, trustee or guardian or by a married person who holds such [savings] deposit accounts or investment certificates, is a valid and sufficient release and discharge of the [association] savings bank for any such payment or delivery.

      Sec. 100. NRS 673.360 is hereby amended to read as follows:

      673.360  1.  A [savings] deposit account or investment certificate of any [association, including a federal savings and loan association,] savings bank may be purchased and held by any person as administrator, executor, guardian, or as trustee or other fiduciary, in trust for a named beneficiary or beneficiaries.

      2.  Any person holding a [savings] deposit account as a fiduciary may make payments upon, and withdraw, in whole or in part, the [savings] deposit account or investment certificate.

      3.  The withdrawal value of any such [savings] deposit account or investment certificate and interest thereon, or other rights relating thereto, may be paid or delivered to the fiduciary, and the payment or delivery to the fiduciary or a receipt or acquittance signed by the fiduciary, to whom any payment or delivery of rights is made, is a valid and sufficient release and discharge of the [association] savings bank for the payment or delivery so made.

      Sec. 101. NRS 673.430 is hereby amended to read as follows:

      673.430  1.  Each [association] savings bank doing business in this State shall file annually with the Commissioner on or before March 1, a [sworn statement in two sections.] report containing the information set forth in subsection 2.

      2.  [One section of the] The annual report must contain, in such form and detail as the Commissioner may prescribe, the following:

      (a) The amount of authorized capital by classes and the par value of each class of stock.

      (b) A statement of its assets, liabilities and capital accounts as of the immediately preceding December 31.

      (c) Any other facts which the Commissioner requires.

 


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[Ê This section must be furnished in duplicate, one certified copy to be returned for publication at least two times in a newspaper having a general circulation in each county in which the association maintains an office. Publication must be completed on or before May 1, and proof of publication must be filed in the Office of the Commissioner.

      3.  One section of the annual report must contain such other information as the Commissioner may require to be furnished. This section need not be published and, except as otherwise provided in NRS 239.0115, must be treated as confidential by the Commissioner.

      4.]3.  The Commissioner may impose and collect a fee of not more than $10 for each day the annual report is overdue. The Commissioner shall adopt regulations establishing the amount of the fee that may be imposed pursuant to this subsection. Every [association] savings bank shall pay to the Commissioner for supervision and examination a fee based on the rate established pursuant to NRS 658.101.

      [5.  All sums received by the Commissioner pursuant to this section must be deposited in the State Treasury pursuant to the provisions of NRS 658.091.]

      Sec. 102. NRS 673.440 is hereby amended to read as follows:

      673.440  Each such foreign or domestic savings bank, association, company or corporation shall cause to be supplied to the Commissioner at any time, upon his or her demand, any information which he or she may require as to its condition, affairs or methods.

      Sec. 103. NRS 673.450 is hereby amended to read as follows:

      673.450  1.  The Commissioner may conduct or cause to be conducted such hearings, investigations or examinations of the books and records, wherever they may be, relating to the affairs of such organizations as he or she may deem expedient and in aid of the proper administration of the provisions of this chapter.

      2.  Except as otherwise provided in NRS 673.480, all examination reports and all information obtained by the Commissioner in conducting hearings, investigations or examinations under the provisions of this chapter, including all related correspondence and memoranda, and information obtained by the Commissioner from other state or federal bank regulatory authorities with whom the Commissioner has entered into agreements for the confidential sharing of such information, and information obtained by the Commissioner relating to the examination and supervision of any corporation which is an affiliate of a savings bank is confidential and privileged information and must not be made public or otherwise disclosed to any person, firm, corporation, agency, association, governmental body, court or other entity.

      3.  Any information submitted by a person to the Commissioner for any purpose under this chapter shall not be construed as waiving, destroying or otherwise affecting any privilege such person may claim with respect to such information under federal or state law as to any person or entity other than the Commissioner.

      4.  In connection with the conduct of any hearing, investigation or examination, the Commissioner or other person designated by him or her to conduct it may:

      (a) Compel the attendance of any person by subpoena.

      (b) Administer oaths.

 


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      (c) Examine any person under oath concerning the business and conduct of affairs of any [association] savings bank subject to the provisions of this chapter, and require the production of any books, papers, records, money and securities relevant to the inquiry. Any willful false swearing is perjury and is punishable as such.

      [3.]5.  The Commissioner shall conduct at least once every 2 years an examination of the books and records of each [association] savings bank licensed under this chapter.

      Sec. 104. NRS 673.451 is hereby amended to read as follows:

      673.451  1.  For the purpose of discovering violations of this chapter or of securing information lawfully required under this chapter, the Commissioner or his or her duly authorized representatives may at any time investigate the business and examine the books, accounts, papers and records used therein of:

      (a) Any [association;] savings bank;

      (b) Any other person engaged in an activity regulated pursuant to the provisions of this chapter; and

      (c) Any person whom the Commissioner has reasonable cause to believe is violating or is about to violate any provision of this chapter, whether or not the person claims to be within the authority or beyond the scope of this chapter.

      2.  For the purpose of examination, the Commissioner or his or her authorized representatives must have and be given free access to the offices and places of business, files, safes and vaults of such persons.

      3.  The Commissioner may require the attendance of any person and examine him or her under oath regarding:

      (a) Any transaction or business regulated pursuant to the provisions of this chapter; or

      (b) The subject matter of any audit, examination, investigation or hearing.

      Sec. 105. NRS 673.455 is hereby amended to read as follows:

      673.455  1.  The Commissioner may, at the time of examining a savings [and loan association,] bank, inspect the books, ledgers and minutes of any corporation which is registered or required to be registered under section [408 of the National Housing Act] 5 of the Bank Holding Company Act of 1956, 12 U.S.C. § 1844, or section 10 of the Home Owners’ Loan Act of 1933, 12 U.S.C. § 1467a, as a holding company whenever, in his or her discretion, he or she considers it advisable to ascertain facts which may relate to transactions between the holding company and the affiliated [association.] savings bank. The provisions of NRS 673.450 apply to the examination of such corporation.

      2.  Upon making findings to that end, the Commissioner may order the discontinuance of borrowing or lending, selling or buying of assets, extending credit or guaranteeing obligations of the holding company which has been undertaken without the written approval of the Commissioner.

      3.  No unreasonable supervisory fees may be imposed upon any [association] savings bank by a holding company which controls [an association.] the savings bank.

      Sec. 106. NRS 673.460 is hereby amended to read as follows:

      673.460  1.  Whenever in connection with an examination it is necessary or expedient that the Commissioner or his or her [deputy,] designee, or both, leave this State, there must be assessed against the organization under examination a fee of not more than [$50 per day] the per diem allowance and travel expenses provided for state officers and employees generally for each person while [without] outside the State in connection with an examination, together with all actual and necessary expenses.

 


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examination a fee of not more than [$50 per day] the per diem allowance and travel expenses provided for state officers and employees generally for each person while [without] outside the State in connection with an examination, together with all actual and necessary expenses.

      2.  The fee charged must be remitted to the Commissioner . [, who shall deposit the fees in the State Treasury pursuant to the provisions of NRS 658.091.

      3.]  The Commissioner shall adopt regulations establishing the amount of the fee required pursuant to this section.

      Sec. 107. NRS 673.470 is hereby amended to read as follows:

      673.470  In lieu of making any examination, the Commissioner may accept any examination of any [association] savings bank made by the Board of Governors of the Federal Reserve System, any Federal Home Loan Bank [Board, any Federal Home Loan] or Federal Reserve Bank, or the Federal Deposit Insurance Corporation, or may examine any such institution in conjunction with the Board of Governors of the Federal Reserve System, a Federal Home Loan Bank [Board, a Federal Home Loan] or Federal Reserve Bank, or the Federal Deposit Insurance Corporation.

      Sec. 108. NRS 673.480 is hereby amended to read as follows:

      673.480  1.  Before disclosing or furnishing any document, report or information under this section, the Commissioner must determine that such document, report or information shall receive protection from further disclosure comparable to the protections provided by this chapter.

      2.  The Commissioner, his or her agents and employees may furnish [to the Federal Home Loan Bank Board, or to any Federal Home Loan Bank, or to examiners appointed by the Federal Home Loan Bank Board or any Federal Home Loan Bank, or to any federal loan agency, copies of any instruments concerning, and may disclose any information with reference to, the conditions or affairs of any such foreign or domestic association, company or corporation.] all or any part of an examination report, work paper, supervisory agreement or directive, order or other information obtained in the conduct of a hearing, investigation or examination under the provisions of this chapter to:

      (a) An agency of the Federal Government or of another state empowered to examine or supervise a savings bank, a bank holding company or savings and loan holding company owning a savings bank, or a subsidiary of such holding company;

      (b) An official empowered to investigate criminal charges subject to legal process, valid search warrant or subpoena, provided that the Commissioner may only furnish that part of any document or report which is necessary and pertinent to the investigation, and the Commissioner may do this only after notifying the affected savings bank and any customer of the savings bank who is named in such part of the document or report ordered to be furnished unless the official requesting the document or report first obtains a waiver of the notice requirement from a court of competent jurisdiction for good cause;

      (c) The examined savings bank or holding company thereof;

      (d) A receiver or liquidator appointed pursuant to this chapter; or

      (e) The court in a proceeding initiated by the Commissioner concerning the savings bank if the Commissioner first provides such notice to the savings bank as will afford the savings bank an opportunity to object or to seek a protective order.

 


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      3.  Except as otherwise provided in subsections 4 and 5, all documents, reports and information furnished by the Commissioner pursuant to this section remain the property of the Division of Financial Institutions, and no person, agency or authority to whom such documents, reports or information are made available, or any officer, director or employee thereof, may disclose any of the documents, reports or information contained therein, except in published statistical material that does not disclose the affairs of any natural person or corporation.

      4.  An examination report made by the Division of Financial Institutions is designed for use in the supervision of a savings bank. The report shall remain the property of the Commissioner and will be furnished to the savings bank solely for its confidential use. The savings bank may disclose the report or relevant portions thereof to any of its directors, officers, employees, agents or affiliates as necessary and appropriate in the conduct of its affairs. Under no circumstances may the savings bank or any of its directors, officers, employees, agents or affiliates disclose or make public in any manner the report or any portion thereof to any person or organization not connected with the savings bank as officer, director, employee, attorney, auditor or candidate for executive office with the savings bank or its holding company. The savings bank may also, after execution of an agreement not to disclose information in the report, disclose the report or relevant portions thereof to a party proposing to acquire or merge with the savings bank.

      5.  Except for an examination report as provided in subsection 4, a savings bank may disclose any document, report or information provided by the savings bank to the Commissioner and any document, report or information received by the savings bank from the Commissioner to any of its directors, officers, employees, agents or affiliates as necessary and appropriate in the conduct of its affairs.

      6.  A savings bank, a bank holding company or a savings and loan holding company owning a savings bank, or a subsidiary of such a holding company, does not violate this section by complying with a duty to report to the Securities and Exchange Commission, including, without limitation, by disclosing any order of the Commissioner pursuant to such a duty.

      Sec. 109. NRS 673.483 is hereby amended to read as follows:

      673.483  1.  Each [association] savings bank shall, at least once each year, cause its books and accounts to be audited at its own expense by a certified public accountant or firm of such accountants selected by the [association] savings bank and approved by the Commissioner.

      2.  The Commissioner may prescribe the scope of the audit.

      3.  A certified copy of the audit, including the management and internal control letters relating to the audit, must be furnished to the Commissioner.

      Sec. 110. NRS 673.4835 is hereby amended to read as follows:

      673.4835  Each [association] savings bank shall pay the assessment levied pursuant to NRS 658.055 and cooperate fully with the audits and examinations performed pursuant thereto.

      Sec. 111. NRS 673.484 is hereby amended to read as follows:

      673.484  The Commissioner may after notice and hearing suspend or revoke the charter of any [association] savings bank for:

      1.  Repeated failure to abide by the provisions of this chapter or the regulations adopted thereunder.

 


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      2.  Failure to pay a tax as required pursuant to the provisions of chapter 363A or 363C of NRS.

      Sec. 112. NRS 673.4845 is hereby amended to read as follows:

      673.4845  1.  [An association] A savings bank may reorganize, merge or consolidate with another state or federal [association,] savings bank, national bank, state bank or other insured depository institution, if the reorganization, merger or consolidation is based upon a plan which has been adopted by the board of directors and approved at a regular or special stockholders’ meeting which has been called to consider the action. The approval must rest on a favorable vote of a majority of the voting power of the [association] savings bank as established by its articles.

      2.  Any such plan for reorganization, merger or consolidation must be approved by the Commissioner, who shall satisfy himself or herself that the plan, if approved, would be equitable for the stockholders of the affected [association or associations] savings bank and other institutions subject to his or her jurisdiction and would not impair the usefulness or success of other properly conducted [associations] savings banks in the community. In submitting an application for approval of any such plan, each [association] savings bank proposing to reorganize, merge or consolidate must provide a comprehensive review of its present financial statement and a projected view of the financial statement of the reorganized, merged or consolidated [association.] savings bank, bank or other depository institution.

      3.  Unless its action is specifically authorized by or taken in conformity with this chapter, no [association] savings bank may, directly or indirectly:

      (a) Reorganize, merge or consolidate.

      (b) Assume liability to pay [savings] deposit accounts or other liabilities of any financial institution or any other organization, person or entity.

      (c) Transfer assets to any financial institution or any other organization, person or entity in consideration of the transferee’s assumption of liability for any portion of the transferor’s [savings] deposit accounts, deposits or other liability.

      (d) Acquire the assets of any financial institution or any other organization, person or entity.

      4.  Each application which is made under this section must be accompanied by a fee payment of not more than $300. The responsibility for payment of the fee must be shared equally by the [associations] savings bank participating in each proposed plan.

      5.  The Commissioner shall adopt regulations establishing the amount of the fee required pursuant to this section.

      Sec. 113. NRS 673.485 is hereby amended to read as follows:

      673.485  1.  If the Commissioner finds as the result of any examination or from any report made to him or her or to any [association] savings bank doing business in this state or from any report made to any of its investors that the [association] savings bank is violating the provisions of its articles of incorporation, charter, bylaws, or any law of this state, or is conducting its business in an unsafe or injurious manner, he or she may by an order addressed to such [association] savings bank direct a discontinuance of such violations or unsafe or injurious practices and a conformity with all the requirements of law.

      2.  If [an association] a savings bank does not comply with such order, the Commissioner may order the corporate secretary to call a special directors’ meeting to consider the matter of noncompliance.

 


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      3.  The meeting must be held no later than 60 days after issuance of the order to hold the meeting, unless otherwise restrained by court order or by the board. The business of the meeting must be limited to the matter of noncompliance and remedies therefor and the notice of such meeting must set forth in detail the Commissioner’s discontinuance order and order to call a directors’ meeting.

      4.  Action taken at the meeting is binding upon the officers of the [association.] savings bank.

      Sec. 114. NRS 673.595 is hereby amended to read as follows:

      673.595  1.  [A foreign association] Except as otherwise provided in this section, a foreign savings bank shall be considered a savings bank subject to the provisions of this chapter for the purpose of engaging in any activities for which a license or other approval by the Commissioner is required pursuant to this chapter, except that a foreign savings bank whose activities are limited to any one or more of those enumerated in NRS 80.015 need not be licensed under this chapter.

      2.  [Except as otherwise provided in chapter 666 of NRS and NRS 666A.010 to 666A.400, inclusive, a foreign association may not solicit or accept deposits in this state, but if it was licensed before July 1, 1985, under the provisions of this section then in force, it may renew that license annually subject to all the provisions, and upon payment of the fee, then in force.] A foreign savings bank organized under the laws of another state or the United States which is insured by the Federal Deposit Insurance Corporation may operate in this State in accordance with the provisions of this chapter on the same terms as a savings bank organized under this chapter, but only to the extent that the laws of the state under which the foreign savings bank is organized permit a savings bank organized under this chapter to operate in accordance with the laws of that state on the same terms as the foreign savings bank.

      3.  A foreign savings bank organized under the laws of another state or the United States which is insured by the Federal Deposit Insurance Corporation may establish one or more service offices within this State as allowed by this chapter, but only to the same extent, and subject to the same restrictions, that the laws of the state under which the foreign savings bank is organized allows a savings bank organized under this chapter to establish and maintain one or more service offices within that state.

      Sec. 115. NRS 673.597 is hereby amended to read as follows:

      673.597  1.  If any savings bank, association, company or corporation organized or incorporated under the laws of any governing body other than the State of Nevada is doing business in this state under the provisions of this chapter, and the laws of the other governing body conflict with any of the provisions of this chapter, the provisions of the laws of this governing body prevail as to each conflict.

      2.  Whenever any foreign organization follows a course or performs any act which is forbidden to any domestic organization under the terms of this chapter, it shall report to the Commissioner all of the facts relating thereto.

      Sec. 116. NRS 673.600 is hereby amended to read as follows:

      673.600  Any savings [and loan association eligible to become a member of the Federal Home Loan Bank,] bank may convert itself into a federal savings [and loan association] bank pursuant to the Home Owners’ Loan Act of 1933, 12 U.S.C. §§ 1461 to 1468, inclusive, a national bank pursuant to the National Bank Act, 12 U.S.C. §§ 214 to 214d, inclusive, or a state bank pursuant to title 55 of NRS, with the same effect as though originally incorporated under [that] the act [,] or title, as applicable, and the proceedings to effect the conversion shall be as outlined in NRS 673.610 to 673.640, inclusive.

 


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a state bank pursuant to title 55 of NRS, with the same effect as though originally incorporated under [that] the act [,] or title, as applicable, and the proceedings to effect the conversion shall be as outlined in NRS 673.610 to 673.640, inclusive.

      Sec. 117. NRS 673.620 is hereby amended to read as follows:

      673.620  1.  At a meeting of the stockholders held as provided in NRS 673.610, the stockholders may, by the affirmative vote of the majority of the stockholders present, in person or by proxy, declare by resolution the determination to convert the [state company, association or corporation] savings bank into a federal savings [and loan association.] bank, national bank or state bank.

      2.  A copy of the minutes of the meeting, verified by the affidavit of the president or vice president and the secretary of the meeting, must be filed in the Office of the Commissioner within 10 days after the date of the meeting. The sworn copy of the proceedings of the meeting, when so filed, is presumptive evidence of the holding and the action of the meeting.

      Sec. 118. NRS 673.630 is hereby amended to read as follows:

      673.630  1.  After the holding of the meeting of stockholders, the [state company, association or corporation] savings bank shall take such action, in the manner prescribed or authorized by the laws of the United States or the rules and regulations promulgated pursuant thereto, as shall make it a federal savings [and loan association,] bank, national bank or state bank, and there shall thereupon be filed in the Office of the Commissioner a copy of the charter of authorization issued to the [association] institution by the appropriate supervising [federal] regulatory body or a certificate showing the organization of the [association] institution as a federal savings [and loan association,] bank, national bank or state bank, as applicable, certified by the appropriate supervising [federal] regulatory body. Upon filing with the Commissioner, the [association] institution ceases to be a [state] savings [and loan association,] bank, but retains all rights, privileges and exemptions of a domestic [association] institution of the same kind and character [.] of its resulting charter.

      2.  A fee of not more than [$40] $100 must accompany the copy of the charter of authorization.

      3.  Federal [associations] savings banks so converted and their members are subject to the same form of taxation and on the same basis as [state associations] savings banks and their stockholders, and national banks so converted and their members are subject to the same form of taxation and on the same basis as state banks and their stockholders.

      4.  The Commissioner shall adopt regulations establishing the amount of the fee required pursuant to this section.

      Sec. 119. NRS 673.640 is hereby amended to read as follows:

      673.640  1.  At the time when the conversion becomes effective, the [company, association or corporation] savings bank shall cease to be supervised by this state [,] pursuant to this chapter, but shall continue as a body corporate converted pursuant to the provisions of the Home Owners’ Loan Act of 1933 , the National Bank Act or title 55 of NRS, as applicable, and subject to examination and regulation pursuant to [that act.] the act or title, as applicable.

      2.  All the property of the [state company, association or corporation,] savings bank, including all its right, title and interest in and to all property of whatever kind, whether real, personal or mixed, and things in action, and every right, privilege, interest and asset of any conceivable value of benefit then existing, belonging or pertaining to it, or which would inure to it, shall immediately by operation of law, and without any conveyance or transfer, and without any further act or deed be vested in and become the property of the federal savings [and loan association.

 


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every right, privilege, interest and asset of any conceivable value of benefit then existing, belonging or pertaining to it, or which would inure to it, shall immediately by operation of law, and without any conveyance or transfer, and without any further act or deed be vested in and become the property of the federal savings [and loan association. The federal savings and loan association] bank, national bank or state bank, as applicable. Such institution shall have, hold and enjoy the same in its own right as fully and to the same extent as the same was possessed, held and enjoyed by the [state company, association or corporation.] savings bank.

      3.  The federal savings [and loan association] bank, national bank or state bank, as applicable, as of the time of taking effect of such conversion shall succeed to all the rights, obligations and relations of the [state company, association or corporation.] savings bank.

      Sec. 120. NRS 673.650 is hereby amended to read as follows:

      673.650  [Any] A federal savings [and loan association]