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1999 Statutes of Nevada, Pages 3179-3272

Source 2020: https://www.leg.state.nv.us/Statutes/70th/Stats199920.html | 2020-02-12

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	panose-1:4 4 9 5 8 11 2 2 5 2;}
@font-face
	{font-family:"Brush Script MT";
	panose-1:3 6 8 2 4 4 6 7 3 4;}
@font-face
	{font-family:"Californian FB";
	panose-1:2 7 4 3 6 8 11 3 2 4;}
@font-face
	{font-family:Centaur;
	panose-1:2 3 5 4 5 2 5 2 3 4;}
@font-face
	{font-family:Chiller;
	panose-1:4 2 4 4 3 16 7 2 6 2;}
@font-face
	{font-family:"Colonna MT";
	panose-1:4 2 8 5 6 2 2 3 2 3;}
@font-face
	{font-family:"Cooper Black";
	panose-1:2 8 9 4 4 3 11 2 4 4;}
@font-face
	{font-family:"Footlight MT Light";
	panose-1:2 4 6 2 6 3 10 2 3 4;}
@font-face
	{font-family:"Harlow Solid Italic";
	panose-1:4 3 6 4 2 15 2 2 13 2;}
@font-face
	{font-family:Harrington;
	panose-1:4 4 5 5 5 10 2 2 7 2;}
@font-face
	{font-family:"High Tower Text";
	panose-1:2 4 5 2 5 5 6 3 3 3;}
@font-face
	{font-family:Jokerman;
	panose-1:4 9 6 5 6 13 6 2 7 2;}
@font-face
	{font-family:"Kunstler Script";
	panose-1:3 3 4 2 2 6 7 13 13 6;}
@font-face
	{font-family:"Lucida Bright";
	panose-1:2 4 6 3 7 5 5 2 4 4;}
@font-face
	{font-family:"Lucida Calligraphy";
	panose-1:3 1 1 1 1 1 1 1 1 1;}
@font-face
	{font-family:"Lucida Fax";
	panose-1:2 6 6 2 5 5 5 2 2 4;}
@font-face
	{font-family:Magneto;
	panose-1:4 3 8 5 5 8 2 2 13 2;}
@font-face
	{font-family:"Matura MT Script Capitals";
	panose-1:3 2 8 2 6 6 2 7 2 2;}
@font-face
	{font-family:"Modern No\. 20";
	panose-1:2 7 7 4 7 5 5 2 3 3;}
@font-face
	{font-family:"Niagara Engraved";
	panose-1:4 2 5 2 7 7 3 3 2 2;}
@font-face
	{font-family:"Niagara Solid";
	panose-1:4 2 5 2 7 7 2 2 2 2;}
@font-face
	{font-family:"Old English Text MT";
	panose-1:3 4 9 2 4 5 8 3 8 6;}
@font-face
	{font-family:Onyx;
	panose-1:4 5 6 2 8 7 2 2 2 3;}
@font-face
	{font-family:Parchment;
	panose-1:3 4 6 2 4 7 8 4 8 4;}
@font-face
	{font-family:Playbill;
	panose-1:4 5 6 3 10 6 2 2 2 2;}
@font-face
	{font-family:"Poor Richard";
	panose-1:2 8 5 2 5 5 5 2 7 2;}
@font-face
	{font-family:Ravie;
	panose-1:4 4 8 5 5 8 9 2 6 2;}
@font-face
	{font-family:"Informal Roman";
	panose-1:3 6 4 2 3 4 6 11 2 4;}
@font-face
	{font-family:"Showcard Gothic";
	panose-1:4 2 9 4 2 1 2 2 6 4;}
@font-face
	{font-family:"Snap ITC";
	panose-1:4 4 10 7 6 10 2 2 2 2;}
@font-face
	{font-family:Stencil;
	panose-1:4 4 9 5 13 8 2 2 4 4;}
@font-face
	{font-family:"Viner Hand ITC";
	panose-1:3 7 5 2 3 5 2 2 2 3;}
@font-face
	{font-family:Vivaldi;
	panose-1:3 2 6 2 5 5 6 9 8 4;}
@font-face
	{font-family:"Vladimir Script";
	panose-1:3 5 4 2 4 4 7 7 3 5;}
@font-face
	{font-family:"Wide Latin";
	panose-1:2 10 10 7 5 5 5 2 4 4;}
@font-face
	{font-family:"Tw Cen MT";
	panose-1:2 11 6 2 2 1 4 2 6 3;}
@font-face
	{font-family:"Tw Cen MT Condensed";
	panose-1:2 11 6 6 2 1 4 2 2 3;}
@font-face
	{font-family:"Script MT Bold";
	panose-1:3 4 6 2 4 6 7 8 9 4;}
@font-face
	{font-family:"Rockwell Extra Bold";
	panose-1:2 6 9 3 4 5 5 2 4 3;}
@font-face
	{font-family:"Rockwell Condensed";
	panose-1:2 6 6 3 5 4 5 2 1 4;}
@font-face
	{font-family:Rockwell;
	panose-1:2 6 6 3 2 2 5 2 4 3;}
@font-face
	{font-family:"Rage Italic";
	panose-1:3 7 5 2 4 5 7 7 3 4;}
@font-face
	{font-family:"Perpetua Titling MT";
	panose-1:2 2 5 2 6 5 5 2 8 4;}
@font-face
	{font-family:Perpetua;
	panose-1:2 2 5 2 6 4 1 2 3 3;}
@font-face
	{font-family:"Palace Script MT";
	panose-1:3 3 3 2 2 6 7 12 11 5;}
@font-face
	{font-family:"OCR A Extended";
	panose-1:2 1 5 9 2 1 2 1 3 3;}
@font-face
	{font-family:"Maiandra GD";
	panose-1:2 14 5 2 3 3 8 2 2 4;}
@font-face
	{font-family:"Lucida Sans Typewriter";
	panose-1:2 11 5 9 3 5 4 3 2 4;}
@font-face
	{font-family:"Lucida Sans";
	panose-1:2 11 6 2 3 5 4 2 2 4;}
@font-face
	{font-family:"Imprint MT Shadow";
	panose-1:4 2 6 5 6 3 3 3 2 2;}
@font-face
	{font-family:"Goudy Stout";
	panose-1:2 2 9 4 7 3 11 2 4 1;}
@font-face
	{font-family:"Goudy Old Style";
	panose-1:2 2 5 2 5 3 5 2 3 3;}
@font-face
	{font-family:"Gloucester MT Extra Condensed";
	panose-1:2 3 8 8 2 6 1 1 1 1;}
@font-face
	{font-family:"Gill Sans Ultra Bold Condensed";
	panose-1:2 11 10 6 2 1 4 2 2 3;}
@font-face
	{font-family:"Gill Sans Ultra Bold";
	panose-1:2 11 10 2 2 1 4 2 2 3;}
@font-face
	{font-family:"Gill Sans MT Condensed";
	panose-1:2 11 5 6 2 1 4 2 2 3;}
@font-face
	{font-family:"Gill Sans MT";
	panose-1:2 11 5 2 2 1 4 2 2 3;}
@font-face
	{font-family:"Gill Sans MT Ext Condensed Bold";
	panose-1:2 11 9 2 2 1 4 2 2 3;}
@font-face
	{font-family:Gigi;
	panose-1:4 4 5 4 6 16 7 2 13 2;}
@font-face
	{font-family:"Franklin Gothic Medium Cond";
	panose-1:2 11 6 6 3 4 2 2 2 4;}
@font-face
	{font-family:"Franklin Gothic Heavy";
	panose-1:2 11 9 3 2 1 2 2 2 4;}
@font-face
	{font-family:"Franklin Gothic Demi Cond";
	panose-1:2 11 7 6 3 4 2 2 2 4;}
@font-face
	{font-family:"Franklin Gothic Demi";
	panose-1:2 11 7 3 2 1 2 2 2 4;}
@font-face
	{font-family:"Franklin Gothic Book";
	panose-1:2 11 5 3 2 1 2 2 2 4;}
@font-face
	{font-family:Forte;
	panose-1:3 6 9 2 4 5 2 7 2 3;}
@font-face
	{font-family:"Felix Titling";
	panose-1:4 6 5 5 6 2 2 2 10 4;}
@font-face
	{font-family:"Eras Medium ITC";
	panose-1:2 11 6 2 3 5 4 2 8 4;}
@font-face
	{font-family:"Eras Light ITC";
	panose-1:2 11 4 2 3 5 4 2 8 4;}
@font-face
	{font-family:"Eras Demi ITC";
	panose-1:2 11 8 5 3 5 4 2 8 4;}
@font-face
	{font-family:"Eras Bold ITC";
	panose-1:2 11 9 7 3 5 4 2 2 4;}
@font-face
	{font-family:"Engravers MT";
	panose-1:2 9 7 7 8 5 5 2 3 4;}
@font-face
	{font-family:Elephant;
	panose-1:2 2 9 4 9 5 5 2 3 3;}
@font-face
	{font-family:"Edwardian Script ITC";
	panose-1:3 3 3 2 4 7 7 13 8 4;}
@font-face
	{font-family:"Curlz MT";
	panose-1:4 4 4 4 5 7 2 2 2 2;}
@font-face
	{font-family:"Copperplate Gothic Light";
	panose-1:2 14 5 7 2 2 6 2 4 4;}
@font-face
	{font-family:"Copperplate Gothic Bold";
	panose-1:2 14 7 5 2 2 6 2 4 4;}
@font-face
	{font-family:"Century Schoolbook";
	panose-1:2 4 6 4 5 5 5 2 3 4;}
@font-face
	{font-family:Castellar;
	panose-1:2 10 4 2 6 4 6 1 3 1;}
@font-face
	{font-family:"Calisto MT";
	panose-1:2 4 6 3 5 5 5 3 3 4;}
@font-face
	{font-family:"Bookman Old Style";
	panose-1:2 5 6 4 5 5 5 2 2 4;}
@font-face
	{font-family:"Bodoni MT Condensed";
	panose-1:2 7 6 6 8 6 6 2 2 3;}
@font-face
	{font-family:"Bodoni MT Black";
	panose-1:2 7 10 3 8 6 6 2 2 3;}
@font-face
	{font-family:"Bodoni MT";
	panose-1:2 7 6 3 8 6 6 2 2 3;}
@font-face
	{font-family:"Blackadder ITC";
	panose-1:4 2 5 5 5 16 7 2 13 2;}
@font-face
	{font-family:"Arial Rounded MT Bold";
	panose-1:2 15 7 4 3 5 4 3 2 4;}
@font-face
	{font-family:"Agency FB";
	panose-1:2 11 5 3 2 2 2 2 2 4;}
@font-face
	{font-family:"Bookshelf Symbol 7";
	panose-1:5 1 1 1 1 1 1 1 1 1;}
@font-face
	{font-family:"MS Reference Sans Serif";
	panose-1:2 11 6 4 3 5 4 4 2 4;}
@font-face
	{font-family:"MS Reference Specialty";
	panose-1:5 0 5 0 0 0 0 0 0 0;}
@font-face
	{font-family:"Berlin Sans FB Demi";
	panose-1:2 14 8 2 2 5 2 2 3 6;}
@font-face
	{font-family:"Tw Cen MT Condensed Extra Bold";
	panose-1:2 11 8 3 2 2 2 2 2 4;}
@font-face
	{font-family:Speedway;
	panose-1:0 0 0 0 0 0 0 0 0 0;}
@font-face
	{font-family:BreezedCaps;
	panose-1:0 0 7 0 0 0 0 0 0 0;}
@font-face
	{font-family:Desert;
	panose-1:0 0 4 0 0 0 0 0 0 0;}
@font-face
	{font-family:"MT Extra";
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@font-face
	{font-family:SWMacro;
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@font-face
	{font-family:Pincoyablack;
	panose-1:2 0 0 0 0 0 0 0 0 0;}
@font-face
	{font-family:ATOldEnglish;
	panose-1:0 0 5 0 0 0 0 0 0 0;}
@font-face
	{font-family:LogosServiceP03;
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@font-face
	{font-family:NumericsP01;
	panose-1:0 11 5 0 0 0 0 0 0 0;}
@font-face
	{font-family:PiKeyWP;
	panose-1:0 0 0 0 0 0 0 0 0 0;}
@font-face
	{font-family:"Times New Roman Bold";
	panose-1:2 2 8 3 7 5 5 2 3 4;}
@font-face
	{font-family:"Symbol \(AS\)";
	panose-1:0 0 0 0 0 0 0 0 0 0;}
 /* Style Definitions */
 p.MsoNormal, li.MsoNormal, div.MsoNormal
	{margin:0in;
	margin-bottom:.0001pt;
	text-align:justify;
	line-height:10.0pt;
	font-size:10.0pt;
	font-family:"Times New Roman","serif";}
h1
	{margin-top:3.0pt;
	margin-right:0in;
	margin-bottom:3.0pt;
	margin-left:0in;
	text-align:center;
	line-height:10.0pt;
	page-break-after:avoid;
	font-size:10.0pt;
	font-family:"Times New Roman","serif";}
h2
	{margin-top:10.0pt;
	margin-right:0in;
	margin-bottom:10.0pt;
	margin-left:0in;
	text-align:center;
	line-height:10.0pt;
	page-break-after:avoid;
	font-size:10.0pt;
	font-family:"Times New Roman","serif";}
p.MsoCommentText, li.MsoCommentText, div.MsoCommentText
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:4.0pt;
	margin-left:0in;
	text-align:justify;
	line-height:8.0pt;
	font-size:8.0pt;
	font-family:"Times New Roman","serif";}
p.MsoHeader, li.MsoHeader, div.MsoHeader
	{margin:0in;
	margin-bottom:.0001pt;
	text-align:justify;
	text-indent:13.7pt;
	line-height:10.0pt;
	font-size:10.0pt;
	font-family:"Times New Roman","serif";}
p.MsoFooter, li.MsoFooter, div.MsoFooter
	{margin:0in;
	margin-bottom:.0001pt;
	text-align:justify;
	text-indent:13.7pt;
	line-height:10.0pt;
	font-size:10.0pt;
	font-family:"Times New Roman","serif";}
span.MsoFootnoteReference
	{color:red;
	vertical-align:baseline;}
p.MsoMacroText, li.MsoMacroText, div.MsoMacroText
	{margin:0in;
	margin-bottom:.0001pt;
	line-height:10.0pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Courier New";}
p.MsoTitle, li.MsoTitle, div.MsoTitle
	{margin-top:12.0pt;
	margin-right:0in;
	margin-bottom:3.0pt;
	margin-left:0in;
	text-align:center;
	line-height:200%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:12.0pt;
	font-family:"Times New Roman","serif";
	font-weight:bold;}
p.MsoBodyText, li.MsoBodyText, div.MsoBodyText
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:0in;
	text-align:justify;
	text-indent:13.7pt;
	line-height:10.0pt;
	font-size:10.0pt;
	font-family:"Times New Roman","serif";}
p.MsoMessageHeader, li.MsoMessageHeader, div.MsoMessageHeader
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:0in;
	margin-left:.75in;
	margin-bottom:.0001pt;
	text-align:justify;
	text-indent:-.75in;
	line-height:10.0pt;
	background:#CCCCCC;
	border:none;
	padding:0in;
	font-size:12.0pt;
	font-family:"Arial","sans-serif";}
a:link, span.MsoHyperlink
	{font-family:"Times New Roman","serif";
	color:blue;
	text-decoration:underline;}
a:visited, span.MsoHyperlinkFollowed
	{color:purple;
	text-decoration:underline;}
p.BillBody, li.BillBody, div.BillBody
	{mso-style-name:"Bill Body";
	margin:0in;
	margin-bottom:.0001pt;
	text-align:justify;
	text-indent:.25in;
	line-height:200%;
	font-size:10.0pt;
	font-family:"Times New Roman","serif";}
p.SectBody, li.SectBody, div.SectBody
	{mso-style-name:"Sect Body";
	mso-style-link:"Sect Body Char";
	margin:0in;
	margin-bottom:.0001pt;
	text-align:justify;
	text-indent:0in;
	line-height:10.0pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman","serif";}
p.SourceNote, li.SourceNote, div.SourceNote
	{mso-style-name:"Source Note";
	margin-top:0in;
	margin-right:0in;
	margin-bottom:10.0pt;
	margin-left:0in;
	text-align:justify;
	line-height:10.0pt;
	font-size:10.0pt;
	font-family:"Times New Roman","serif";}
p.AnnoCenter, li.AnnoCenter, div.AnnoCenter
	{mso-style-name:"Anno Center";
	margin-top:4.0pt;
	margin-right:0in;
	margin-bottom:4.0pt;
	margin-left:0in;
	text-align:center;
	line-height:8.0pt;
	page-break-after:avoid;
	font-size:8.0pt;
	font-family:"Times New Roman","serif";
	font-weight:bold;}
span.AnnoLeadline
	{mso-style-name:"Anno Leadline";
	font-family:"Times New Roman","serif";
	color:windowtext;
	font-weight:bold;}
p.AnnotationHead, li.AnnotationHead, div.AnnotationHead
	{mso-style-name:"Annotation Head";
	margin:0in;
	margin-bottom:.0001pt;
	text-align:justify;
	line-height:8.0pt;
	page-break-after:avoid;
	font-size:8.0pt;
	font-family:"Times New Roman","serif";
	font-weight:bold;}
p.Article, li.Article, div.Article
	{mso-style-name:Article;
	margin-top:0in;
	margin-right:0in;
	margin-bottom:9.0pt;
	margin-left:0in;
	text-align:center;
	text-indent:13.7pt;
	line-height:10.0pt;
	page-break-after:avoid;
	font-size:10.0pt;
	font-family:"Times New Roman","serif";}
p.ChapterTitle, li.ChapterTitle, div.ChapterTitle
	{mso-style-name:"Chapter Title";
	margin-top:0in;
	margin-right:0in;
	margin-bottom:10.0pt;
	margin-left:0in;
	text-align:center;
	line-height:10.0pt;
	font-size:10.0pt;
	font-family:"Times New Roman","serif";
	font-weight:bold;}
p.COHead1, li.COHead1, div.COHead1
	{mso-style-name:"CO Head 1";
	margin-top:0in;
	margin-right:0in;
	margin-bottom:10.0pt;
	margin-left:0in;
	text-align:center;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman","serif";}
p.COHead2, li.COHead2, div.COHead2
	{mso-style-name:"CO Head 2";
	margin-top:0in;
	margin-right:0in;
	margin-bottom:10.0pt;
	margin-left:0in;
	text-align:center;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman","serif";
	font-weight:bold;}
p.COHead3, li.COHead3, div.COHead3
	{mso-style-name:"CO Head 3";
	margin-top:0in;
	margin-right:0in;
	margin-bottom:10.0pt;
	margin-left:0in;
	text-align:center;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:8.0pt;
	font-family:"Times New Roman","serif";}
p.COHead4, li.COHead4, div.COHead4
	{mso-style-name:"CO Head 4";
	margin-top:0in;
	margin-right:0in;
	margin-bottom:8.0pt;
	margin-left:0in;
	text-align:center;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:8.0pt;
	font-family:"Times New Roman","serif";
	font-weight:bold;}
p.COLeadline, li.COLeadline, div.COLeadline
	{mso-style-name:"CO Leadline";
	margin-top:0in;
	margin-right:0in;
	margin-bottom:0in;
	margin-left:.9in;
	margin-bottom:.0001pt;
	text-indent:-.9in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:8.0pt;
	font-family:"Times New Roman","serif";
	font-weight:bold;}
p.J-Dash, li.J-Dash, div.J-Dash
	{mso-style-name:J-Dash;
	margin-top:12.0pt;
	margin-right:0in;
	margin-bottom:0in;
	margin-left:0in;
	margin-bottom:.0001pt;
	text-align:center;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman","serif";
	font-weight:bold;}
span.Leadline
	{mso-style-name:Leadline;
	font-family:"Times New Roman","serif";
	color:windowtext;
	font-weight:bold;}
span.Section
	{mso-style-name:Section;
	font-family:"Times New Roman","serif";
	color:windowtext;
	font-weight:bold;}
p.WestPub, li.WestPub, div.WestPub
	{mso-style-name:WestPub;
	margin:0in;
	margin-bottom:.0001pt;
	text-align:justify;
	line-height:8.0pt;
	font-size:8.0pt;
	font-family:"Times New Roman","serif";}
span.AdvanceChapter
	{mso-style-name:AdvanceChapter;}
p.Billupper, li.Billupper, div.Billupper
	{mso-style-name:"Bill upper";
	margin:0in;
	margin-bottom:.0001pt;
	text-align:justify;
	text-indent:.2in;
	line-height:10.0pt;
	font-size:10.0pt;
	font-family:"Times New Roman","serif";}
span.AdvanceSection
	{mso-style-name:AdvanceSection;
	font-family:"CG Times","serif";}
p.AdvanceSheet, li.AdvanceSheet, div.AdvanceSheet
	{mso-style-name:"Advance Sheet";
	margin:0in;
	margin-bottom:.0001pt;
	text-align:justify;
	font-size:10.0pt;
	font-family:"Times New Roman","serif";}
span.AdvanceTitle
	{mso-style-name:AdvanceTitle;
	font-family:"CG Times","serif";}
span.AdvanceGroup
	{mso-style-name:AdvanceGroup;
	font-family:"CG Times","serif";}
span.Empty
	{mso-style-name:Empty;
	font-family:"Times New Roman","serif";
	color:windowtext;
	font-weight:bold;}
span.NACSection
	{mso-style-name:NACSection;
	font-weight:bold;}
p.StatTitleText, li.StatTitleText, div.StatTitleText
	{mso-style-name:StatTitleText;
	margin:0in;
	margin-bottom:.0001pt;
	text-align:justify;
	line-height:9.0pt;
	font-size:8.0pt;
	font-family:"Times New Roman","serif";}
span.newLang
	{mso-style-name:newLang;
	color:blue;
	font-weight:bold;
	font-style:italic;}
p.DocHeading, li.DocHeading, div.DocHeading
	{mso-style-name:DocHeading;
	margin-top:10.0pt;
	margin-right:0in;
	margin-bottom:10.0pt;
	margin-left:0in;
	text-align:center;
	line-height:10.0pt;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman","serif";
	font-weight:bold;}
p.Citation, li.Citation, div.Citation
	{mso-style-name:Citation;
	margin:0in;
	margin-bottom:.0001pt;
	text-align:justify;
	line-height:10.0pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman","serif";
	display:none;}
p.StatsPageBreak, li.StatsPageBreak, div.StatsPageBreak
	{mso-style-name:StatsPageBreak;
	margin:0in;
	margin-bottom:.0001pt;
	text-align:justify;
	line-height:10.0pt;
	font-size:10.0pt;
	font-family:"Arial","sans-serif";
	color:#003300;
	font-weight:bold;}
span.Extension
	{mso-style-name:Extension;
	font-family:"Tahoma","sans-serif";
	color:white;
	font-weight:bold;
	font-style:italic;}
p.statChapter, li.statChapter, div.statChapter
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<div class="WordSection1">

<p class="MsoNormal"><b><span style='color:white'>[Rev. 2/11/2019 1:13:04 PM]</span></b></p>

<p class="MsoNormal" align=left style='text-align:left;line-height:normal'><b><span
style='font-size:14.0pt;font-family:"Arial","sans-serif"'><a
href="Stats199919.html#Stats199919page3178">Link to Page 3178</a></span></b></p>

<p class="StatsPageBreak"> </p>

<p class="StatsPageBreak"><a name="Stats199920page3179"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3179 (<a href="Stats199919.html#Stats199919_CH590">CHAPTER
590, AB 564</a>)<span style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><b>      Sec. 3.  NRS 444A.040</b> is
hereby amended to read as follows:</p>

<p class="SectBody">    444A.040<span class=Empty>  </span>1.  The
board of county commissioners in a county whose population is more than
100,000, or its designee, shall make available for use in that county a program
for: </p>

<p class="SectBody">    (a) The separation at the source of recyclable
material from other solid waste originating from the residential premises<span
class=newLang><span style='color:blue'> and public buildings </span></span>where
services for the collection of solid waste are provided.</p>

<p class="SectBody">    (b) The establishment of recycling centers for the
collection and disposal of recyclable material where existing recycling centers
do not carry out the purposes of the program.</p>

<p class="SectBody">    (c) The disposal of hazardous household products
which are capable of causing harmful physical effects if inhaled, absorbed or
ingested. This program may be included as a part of any other program made
available pursuant to this subsection.</p>

<p class="SectBody">    2.  The board of county commissioners of a
county whose population is more than 25,000 but not more than 100,000, or its
designee:</p>

<p class="SectBody">    (a) May make available for use in that county a
program for the separation at the source of recyclable material from other
solid waste originating from the residential premises <span class=newLang><span
style='color:blue'>and public buildings </span></span>where services for the
collection of solid waste are provided.</p>

<p class="SectBody">    (b) Shall make available for use in that county a
program for:</p>

<p class="SectBody">      (1) The establishment of recycling centers for
the collection and disposal of recyclable material where existing recycling
centers do not carry out the purposes of the program established pursuant to
paragraph (a).</p>

<p class="SectBody">      (2) The disposal of hazardous household products
which are capable of causing harmful physical effects if inhaled, absorbed or
ingested. This program may be included as a part of any other program made
available pursuant to this subsection.</p>

<p class="SectBody">    3.  The board of county commissioners of a
county whose population is not more than 25,000, or its designee, may make
available for use in that county a program for:</p>

<p class="SectBody">    (a) The separation at the source of recyclable
material from other solid waste originating from the residential premises <span
class=newLang><span style='color:blue'>and public buildings </span></span>where
services for the collection of solid waste are provided.</p>

<p class="SectBody">    (b) The establishment of recycling centers for the
collection and disposal of recyclable material where existing recycling centers
do not carry out the purposes of the program.</p>

<p class="SectBody">    (c) The disposal of hazardous household products
which are capable of causing harmful physical effects if inhaled, absorbed or
ingested. This program may be included as a part of any other program made
available pursuant to this subsection.</p>

<p class="SectBody">    4.  Any program made available pursuant to
this section:</p>

<p class="SectBody">    (a) Must not:</p>

<p class="SectBody">      (1) Conflict with the standards adopted by the
state environmental commission pursuant to NRS 444A.020; and</p>

<p class="SectBody">      (2) Become effective until approved by the
department.</p>

<p class="SectBody">    (b) May be based on the model plans adopted
pursuant to NRS 444A.030.</p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3180"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3180 (<a href="Stats199919.html#Stats199919_CH590">CHAPTER
590, AB 564</a>)<span style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody">    5.  The governing body of a municipality may
adopt and carry out within the municipality such programs made available
pursuant to this section as are deemed necessary and appropriate for that
municipality.</p>

<p class="SectBody">    6.  Any municipality may, with the approval
of the governing body of an adjoining municipality, participate in any program
adopted by the adjoining municipality pursuant to subsection 5.</p>

<p class="SectBody">    7.  Persons residing on an Indian reservation
or Indian colony may participate in any program adopted pursuant to subsection
5 by a municipality in which the reservation or colony is located if the
governing body of the reservation or colony adopts an ordinance requesting such
participation. Upon receipt of such a request, the governing body of the
municipality shall make available to the residents of the reservation or colony
those programs requested.</p>

<p class="SectBody"><b>      Sec. 4.  NRS 444A.050</b> is
hereby amended to read as follows:</p>

<p class="SectBody">    444A.050<span class=Empty>  </span>1.  A
county or health district that adopts a program pursuant to NRS 444A.040 shall:</p>

<p class="SectBody">    (a) On or before July 1 of each year, submit a
report to the department of the number of tons of material disposed of in the
area covered by the program.</p>

<p class="SectBody">      (b) Within 6 months after adopting the program,
and at least once every 6 months thereafter, notify all persons occupying
residential, commercial<span class=newLang><span style='color:blue'> ,
governmental</span></span> and institutional premises within the area covered
by the program of the local recycling opportunities and the need to reduce the
amount of waste generated.</p>

<p class="SectBody">    2.  The governing body of a municipality that
adopts a program pursuant to NRS 444A.040 shall:</p>

<p class="SectBody">    (a) Adopt such ordinances as are necessary for the
enforcement of the program.</p>

<p class="SectBody">    (b) At least once every 36 months, conduct a review
of the program and make such revisions to the program and any ordinances
adopted pursuant thereto as are deemed necessary and appropriate.</p>

<p class="SectBody"><b>      Sec. 5.  NRS 444A.110</b> is hereby
amended to read as follows:</p>

<p class="SectBody">    444A.110<span class=Empty>  </span>1.  The
division of environmental protection of the state department of conservation
and natural resources shall develop a program of public education to provide
information, increase public awareness of the individual responsibility of
properly disposing of solid waste and encouraging public participation in
recycling, reuse and waste reduction. The program must be designed in
accordance with the plans to provide for a solid waste management system
approved pursuant to NRS 444.510 to communicate the importance of conserving
natural resources, in addition to the importance of protecting public health
and the environment. The program must include promotion of the private and
public efforts to accomplish conservation, recovery and reuse.</p>

<p class="SectBody">    2.  The division of environmental protection
of the state department of conservation and natural resources shall encourage
the reduction of waste and litter by:</p>

<p class="SectBody">    (a) Providing, upon request, advice to persons
regarding techniques to reduce waste and general information on recycling.</p>

<p class="SectBody">    (b) Establishing a computer data base to process
related information.</p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3181"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3181 (<a href="Stats199919.html#Stats199919_CH590">CHAPTER
590, AB 564</a>)<span style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody">    (c) Establishing a toll-free telephone line to
assist in the dissemination of information.</p>

<p class="SectBody">    (d) Sponsoring or cosponsoring technical workshops
and seminars on waste reduction.</p>

<p class="SectBody">    (e) Assisting local programs for the research and
development of plans to reduce waste.</p>

<p class="SectBody">    (f) Coordinating the dissemination of publications
on waste reduction, regardless of the source of those publications.</p>

<p class="SectBody">    (g) Assisting in the development and promotion of
programs of continuing education for educators and administrators to enable
them to teach and encourage methods of waste reduction.</p>

<p class="SectBody">    (h) Developing an emblem to signify and advertise
the efforts in Nevada to encourage recycling.</p>

<p class="SectBody">    (i) Recommending to educational institutions
courses and curricula relating to recycling and the reduction of waste.</p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    (j) Assisting
state agencies, upon request, to develop and carry out programs for recycling
within state buildings.</span></span></p>

<p class="SectBody">    3.  The division of environmental protection
of the state department of conservation and natural resources shall coordinate
the technical assistance available from the various state agencies. The
administrator of that division shall prepare and deliver biennial reports to the
governor regarding the progress of the program.</p>

<p class="SectBody"><b>      Sec. 6.  NRS 1.115</b> is hereby
amended to read as follows:</p>

<p class="SectBody">    1.115<span class=Empty>  </span>1.  Except
as otherwise provided in this section, each court of justice for this state
shall recycle or cause to be recycled the paper and paper products it uses.
This subsection does not apply to confidential documents if there is an
additional cost for recycling those documents.</p>

<p class="SectBody">    2.  A court of justice may apply for a waiver
from the requirements of subsection 1. For such a waiver, the supreme court
must apply to the interim finance committee, a district court or a justice’s
court must apply to the board of county commissioners of the county in which it
is located and a municipal court must apply to the governing body of the city
in which it is located. A waiver must be granted if it is determined that the
cost to recycle or cause to be recycled the paper and paper products used by
the court is unreasonable and would place an undue burden on the operations of
the court.</p>

<p class="SectBody">    3.  The court administrator shall, after
consulting with the state department of conservation and natural resources,
prescribe the procedure for the disposition of the paper and paper products to
be recycled.<span class=newLang><span style='color:blue'> The court
administrator may prescribe a procedure for the recycling of other waste
materials produced on the premises of the court building.</span></span></p>

<p class="SectBody">    4.  Any money received by a court of justice
for recycling or causing to be recycled the paper and paper products it uses
must be paid by the clerk of that court to the state treasurer for credit to
the state general fund.</p>

<p class="SectBody">    5.  As used in this section:</p>

<p class="SectBody">    (a) “Paper” includes newspaper, high-grade office
paper, fine paper, bond paper, offset paper, xerographic paper, mimeo paper,
duplicator paper and any other cellulosic material which contains not more than
10 percent by weight or volume of a noncellulosic material, including, but not
limited to, a laminate, binder, coating and saturant.</p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3182"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3182 (<a href="Stats199919.html#Stats199919_CH590">CHAPTER
590, AB 564</a>)<span style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody">    (b) “Paper product” means any paper article or
commodity, including, but not limited to, paper napkins, towels, cardboard,
construction material, paper and any other cellulosic material which contains
not more than 10 percent by weight or volume of a noncellulosic material,
including, but not limited to, a laminate, binder, coating and saturant.</p>

<p class="SectBody"><b>      Sec. 7.  NRS 218.655</b> is hereby
amended to read as follows:</p>

<p class="SectBody">    218.655<span class=Empty>  </span>1.  Except
as otherwise provided in this section, the legislative counsel bureau shall
recycle or cause to be recycled the paper and paper products it uses. This
subsection does not apply to confidential documents if there is an additional
cost for recycling those documents.</p>

<p class="SectBody">    2.  The director of the legislative counsel
bureau may apply to the legislative commission for a waiver from the
requirements of subsection 1. The legislative commission shall grant a waiver
if it determines that the cost to recycle or cause to be recycled the paper and
paper products used by the bureau is unreasonable and would place an undue
burden on the operations of the bureau.</p>

<p class="SectBody">    3.  The legislative commission shall, after
consulting with the state department of conservation and natural resources,
adopt regulations which prescribe the procedure for the disposition of the
paper and paper products to be recycled.<span class=newLang><span
style='color:blue'> The legislative commission may prescribe a procedure for
the recycling of other waste materials produced on the premises of the
legislative building.</span></span></p>

<p class="SectBody">    4.  Any money received by the legislative
counsel bureau for recycling or causing to be recycled the paper and paper
products it uses must be paid by the director of the legislative counsel bureau
to the state treasurer for credit to the state general fund.</p>

<p class="SectBody">    5.  As used in this section:</p>

<p class="SectBody">    (a) “Paper” includes newspaper, high-grade office
paper, fine paper, bond paper, offset paper, xerographic paper, mimeo paper,
duplicator paper and any other cellulosic material which contains not more than
10 percent by weight or volume of a noncellulosic material, including, but not
limited to, a laminate, binder, coating and saturant.</p>

<p class="SectBody">    (b) “Paper product” means any paper article or
commodity, including, but not limited to, paper napkins, towels, cardboard,
construction material, paper and any other cellulosic material which contains
not more than 10 percent by weight or volume of a noncellulosic material,
including, but not limited to, a laminate, binder, coating and saturant.</p>

<p class="SectBody"><b>      Sec. 8.  NRS 232.007</b> is hereby
amended to read as follows:</p>

<p class="SectBody">    232.007<span class=Empty>  </span>1.  Except
as otherwise provided in this section, each state agency shall recycle or cause
to be recycled the paper and paper products it uses. This subsection does not
apply to confidential documents if there is an additional cost for recycling
those documents.</p>

<p class="SectBody">    2.  A state agency may apply to the chief of
the budget division of the department of administration for a waiver from the
requirements of subsection 1. The chief shall grant a waiver to the state
agency if he determines that the cost to recycle or cause to be recycled the
paper and paper products used by the agency is unreasonable and would place an
undue burden on the operations of the agency. </p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3183"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3183 (<a href="Stats199919.html#Stats199919_CH590">CHAPTER
590, AB 564</a>)<span style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody">    3.  The state environmental commission shall,
through the state department of conservation and natural resources, adopt
regulations which prescribe the procedure for the disposition of the paper and
paper products to be recycled. In adopting such regulations, the commission <span
class=oldLang><b><span style='color:red'>[</span></b><span style='color:red'>shall<b>]</b></span></span><span
class=newLang><span style='color:blue'> :</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    (a) Shall</span></span>
consult with any other state agencies which are coordinating or have
coordinated programs for recycling paper and paper products.</p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    (b) May
prescribe a procedure for the recycling of other waste materials produced by state
agencies.</span></span></p>

<p class="SectBody">    4.  Any money received by a state agency for
recycling or causing to be recycled the paper and paper products it uses must
be paid by the chief administrative officer of that agency to the state
treasurer for credit to the state general fund.</p>

<p class="SectBody">    5.  As used in this section:</p>

<p class="SectBody">    (a) “Paper” includes newspaper, high‑grade
office paper, fine paper, bond paper, offset paper, xerographic paper, mimeo
paper, duplicator paper and any other cellulosic material which contains not
more than 10 percent by weight or volume of a noncellulosic material,
including, but not limited to, a laminate, binder, coating and saturant.</p>

<p class="SectBody">    (b) “Paper product” means any paper article or
commodity, including, but not limited to, paper napkins, towels, cardboard,
construction material, paper and any other cellulosic material which contains
not more than 10 percent by weight or volume of a noncellulosic material,
including, but not limited to, a laminate, binder, coating and saturant.</p>

<p class="SectBody">    (c) “State agency” means every public agency,
bureau, board, commission, department, division, officer or employee of the
executive department of state government.</p>

<p class="SectBody"><b>      Sec. 9.  Chapter 386 of NRS</b> is
hereby amended by adding thereto a new section to read as follows:</p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      1.  Except
as otherwise provided in this section, each school district shall recycle or
cause to be recycled the paper and paper products it uses. This subsection does
not apply to confidential documents if there is an additional cost for
recycling those documents.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    2.  A
school district is not required to comply with the requirements of subsection 1
if the board of trustees of the school district determines that the cost to
recycle or cause to be recycled the paper and paper products used by the
schools in the district is unreasonable and would place an undue burden on the
operations of the district or a particular school.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    3.  The
board of trustees shall adopt rules which prescribe the procedure for the
disposition of the paper and paper products to be recycled. The board of
trustees may prescribe a procedure for the recycling of other waste material
produced on the premises of the schools in the school district and the
administrative offices of the school district.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    4.  Any
money received by the school district for recycling or causing to be recycled
the paper and paper products it uses must be paid by the board of trustees for
credit to the general fund of the school district.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    5.  As
used in this section:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    (a) “Paper”
includes newspaper, high-grade office paper, fine paper, bond paper, offset
paper, xerographic paper, mimeo paper, duplicator paper and any other
cellulosic material which contains not more than 10 </span></span><span
class=Extension>percent by weight or volume of a noncellulosic material,
including, but not limited to, a laminate, binder, coating and saturant.</span></p>

<span class=newLang><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:blue;font-weight:normal'><br clear=all style='page-break-before:always'>
</span></span>

<p class="StatsPageBreak"><a name="Stats199920page3184"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3184 (<a href="Stats199919.html#Stats199919_CH590">CHAPTER
590, AB 564</a>)<span style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><span class=newLang><span style='color:blue'>percent by
weight or volume of a noncellulosic material, including, but not limited to, a
laminate, binder, coating and saturant.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    (b) “Paper
product” means any paper article or commodity, including, but not limited to,
paper napkins, towels, cardboard, construction material, paper and any other
cellulosic material which contains not more than 10 percent by weight or volume
of a noncellulosic material, including, but not limited to, a laminate, binder,
coating and saturant.</span></span></p>

<p class="SectBody"><b>      Sec. 10.  NRS 396.437</b> is
hereby amended to read as follows:</p>

<p class="SectBody">    396.437<span class=Empty>  </span>1.  Except
as otherwise provided in this section, the system shall recycle or cause to be
recycled the paper and paper products it uses. This subsection does not apply
to confidential documents if there is an additional cost for recycling those
documents.</p>

<p class="SectBody">    2.  The system is not required to comply with
the requirements of subsection 1 if the board of regents determines that the
cost to recycle or cause to be recycled the paper and paper products used by
the system or one of its branches or facilities is unreasonable and would place
an undue burden on the operations of the system, branch or facility.</p>

<p class="SectBody">    3.  The board of regents shall adopt
regulations which prescribe the procedure for the disposition of the paper and
paper products to be recycled.<span class=newLang><span style='color:blue'> The
board of regents may prescribe a procedure for the recycling of other waste
material produced on the premises of the system, a branch or a facility.</span></span></p>

<p class="SectBody">    4.  Any money received by the system for
recycling or causing to be recycled the paper and paper products it uses must
be paid by the board of regents to the state treasurer for credit to the state
general fund.</p>

<p class="SectBody">    5.  As used in this section:</p>

<p class="SectBody">    (a) “Paper” includes newspaper, high-grade office
paper, fine paper, bond paper, offset paper, xerographic paper, mimeo paper,
duplicator paper and any other cellulosic material which contains not more than
10 percent by weight or volume of a noncellulosic material, including, but not
limited to, a laminate, binder, coating and saturant.</p>

<p class="SectBody">      (b) “Paper product” means any paper article or
commodity, including, but not limited to, paper napkins, towels, cardboard,
construction material, paper and any other cellulosic material which contains
not more than 10 percent by weight or volume of a noncellulosic material,
including, but not limited to, a laminate, binder, coating and saturant.</p>

<p class="SectBody" align=center style='text-align:center'>________</p>

<p class="SectBody" align=center style='text-align:center'> </p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3185"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3185<span style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="DocHeading"><a name="Stats199920_CH591"></a><span style='display:none;
font-weight:normal'>CHAPTER 591, AB 521</span></p>

<p class="MsoNormal" style='margin-left:15.1pt;text-indent:-15.1pt'>Assembly Bill
No. 521–Assemblymen Dini, Perkins, Buckley, Arberry, Evans, Giunchigliani,
Parks, Price, Williams, Manendo, Chowning, Koivisto, de Braga, Bache,
Ohrenschall, Lee, Neighbors, Thomas, Mortenson, Leslie, Goldwater, Anderson,
McClain, Segerblom, Collins, Freeman, Parnell, Claborn, Hettrick, Gibbons,
Beers, Marvel, Carpenter, Nolan, Von Tobel, Tiffany and Humke</p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.0pt'> </p>

<p class="statChapter">CHAPTER<span class=AdvanceChapter> 591</span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'> </span></p>

<p class="MsoNormal" style='margin-left:30.25pt;text-indent:-30.25pt;line-height:
8.0pt'><span style='font-size:8.0pt'>AN ACT relating to education; making
various changes relating to the discipline of pupils; requiring the
superintendent of public instruction to establish a pilot project for
alternative programs of education for disruptive pupils; requiring certain
selected schools to participate in the pilot project and establish alternative
programs of education for disruptive pupils; making an appropriation; and
providing other matters properly relating thereto.</span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'> </span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'>[Approved June 9, 1999]</span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'> </span></p>

<p class="Billupper" align=center style='margin-top:2.0pt;margin-right:.4in;
margin-bottom:0in;margin-left:.4in;margin-bottom:.0001pt;text-align:center;
text-indent:0in;line-height:8.5pt'><span style='font-size:8.0pt'>THE PEOPLE OF
THE STATE OF NEVADA, REPRESENTED IN </span></p>

<p class="Billupper" align=center style='margin-top:2.0pt;margin-right:.4in;
margin-bottom:0in;margin-left:.4in;margin-bottom:.0001pt;text-align:center;
text-indent:0in;line-height:8.5pt'><span style='font-size:8.0pt'>SENATE AND
ASSEMBLY, DO ENACT AS FOLLOWS:</span></p>

<p class="MsoNormal"> </p>

<p class="SectBody">      <b>Section 1. </b> <b>Chapter 392 of
NRS</b> is hereby amended by adding thereto the provisions set forth as
sections 2 to 8, inclusive, of this act.</p>

<p class="SectBody"><b>      Sec. 2. </b> <span class=newLang><span
style='color:blue'>As used in sections 2 to 8, inclusive, of this act, unless
the context otherwise requires, “principal” means the principal of a school or
his designee.</span></span></p>

<p class="SectBody"><b>      Sec. 3. </b> <span class=newLang><span
style='color:blue'>The principal of each public school shall establish a plan
to provide for the progressive discipline of pupils and on-site review of
disciplinary decisions. The plan must:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      1.  Be
developed with the input and participation of teachers and parents of pupils
who are enrolled in the school.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  Be
consistent with the written rules of behavior prescribed in accordance with NRS
392.463.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  Include,
without limitation, provisions designed to address the specific disciplinary
needs and concerns of the school.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      4.  Provide
for the temporary removal of a pupil from a classroom in accordance with
section 4 of this act.</span></span></p>

<p class="SectBody"><b>      Sec. 4. </b> <span class=newLang><span
style='color:blue'>1.  The plan established pursuant to section 3
of this act must provide for the temporary removal of a pupil from a classroom
if, in the judgment of the teacher, the pupil has engaged in behavior that
seriously interferes with the ability of the teacher to teach the other pupils
in the classroom and with the ability of the other pupils to learn. The plan
must provide that, upon the removal of a pupil from a classroom pursuant to
this section, the principal of the school shall provide an explanation of the
reason for the removal of the pupil to the pupil and offer the pupil an
opportunity to respond to the explanation. Within 24 hours after the removal of
a pupil pursuant to this section, the principal of the school shall notify the
parent or legal guardian of the pupil of the removal.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  Except
as otherwise provided in subsection 3, a pupil who is removed from a classroom
pursuant to this section must be assigned to a temporary alternative placement
pursuant to which the pupil:</span></span></p>

<span class=newLang><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:blue;font-weight:normal'><br clear=all style='page-break-before:always'>
</span></span>

<p class="StatsPageBreak"><a name="Stats199920page3186"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3186 (<a href="#Stats199920_CH591">CHAPTER 591, AB 521</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Is
separated, to the extent practicable, from pupils who are not assigned to a
temporary alternative placement;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) Studies
under the supervision of appropriate personnel of the school district; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) Is
prohibited from engaging in any extracurricular activity sponsored by the
school.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  The
principal shall not assign a pupil to a temporary alternative placement if the
suspension or expulsion of a pupil who is removed from the classroom pursuant
to this section is:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Required
by NRS 392.466; or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) Authorized
by NRS 392.467 and the principal decides to proceed in accordance with that
section. </span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>If the principal
proceeds in accordance with NRS 392.466 or 392.467, the pupil must be removed
from school in accordance with those sections and the provisions of sections 2
to 8, inclusive, of this act do not apply to the pupil.</span></span></p>

<p class="SectBody"><b>      Sec. 5. </b> <span class=newLang><span
style='color:blue'>1.  Except as otherwise provided in this
section, not later than 3 school days after a pupil is removed from a classroom
pursuant to section 4 of this act, a conference must be held with:</span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>(a) The
pupil;</span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>(b) A
parent or legal guardian of the pupil;</span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>(c) The
principal of the school; and</span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>(d) The
teacher who removed the pupil.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>The principal
shall give an oral or written notice of the conference, as appropriate, to each
person who is required to participate.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  After
receipt of the notice required pursuant to subsection 1, the parent or legal
guardian of the pupil may, not later than 3 school days after the removal of
the pupil, request that the date of the conference be postponed. The principal
shall accommodate such a request. If the date of the conference is postponed
pursuant to this subsection, the principal shall send written notice to the
parent or legal guardian confirming that the conference has been postponed at
the request of the parent or legal guardian.</span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>3.  If
a parent or legal guardian of a pupil refuses to attend a conference, the
principal of the school shall send a written notice to the parent or legal
guardian confirming that the parent or legal guardian has waived the right to a
conference provided by this section and authorized the principal to recommend
the placement of the pupil pursuant to subsection 6.</span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>4.  Except
as otherwise provided in this subsection, a pupil must not return to the
classroom from which he was removed before the conference is held. If the
conference is not held within 3 school days after the removal of the pupil, the
pupil must be allowed to return to the classroom unless:</span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>(a) The
parent or legal guardian of the pupil refuses to attend the conference; </span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>(b) The
failure to hold a conference is attributed to the action or inaction of the
pupil or the parent or legal guardian of the pupil; or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) The
parent or legal guardian requested that the date of the conference be
postponed.</span></span></p>

<p class="MsoNormal"> </p>

<span class=newLang><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:blue;font-weight:normal'><br clear=all style='page-break-before:always'>
</span></span>

<p class="StatsPageBreak"><a name="Stats199920page3187"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3187 (<a href="#Stats199920_CH591">CHAPTER 591, AB 521</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>5.  During
the conference, the teacher who removed the pupil from the classroom or the
principal shall provide the pupil and his parent or legal guardian with an
explanation of the reason for the removal of the pupil from the classroom. The
pupil and his parent or legal guardian must be granted an opportunity to
respond to the explanation of the pupil’s behavior and to indicate whether the
removal of the pupil from the classroom was appropriate in their opinion based
upon the behavior of the pupil.</span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>6.  Upon
conclusion of the conference or, if a conference is not held pursuant to
subsection 3 not later than 3 school days after the removal of a pupil from a
classroom, the principal shall recommend whether to return the pupil to the
classroom or continue the temporary alternative placement of the pupil.</span></span></p>

<p class="SectBody"><b>      Sec. 6. </b> <span class=newLang><span
style='color:blue'>1.  The principal of each public school shall
establish at least one committee to review the temporary alternative placement
of pupils. A committee established pursuant to this section must consist of the
principal and two regular members who are teachers selected for membership by a
majority of the teachers who are employed at the school. One additional teacher
must be selected in the same manner to serve as an alternate member.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  If
a pupil is removed from the classroom pursuant to section 4 of this act by a
teacher who is a member of a committee established pursuant to this section,
the teacher shall not participate in the review of the placement of the pupil
and the alternate member shall serve on the committee for that review.</span></span> </p>

<p class="SectBody"><b>      Sec. 7. </b> <span class=newLang><span
style='color:blue'>If, in accordance with subsection 6 of section 5 of this
act, the principal recommends that a pupil be returned to the classroom from
which he was removed and the teacher who removed the pupil does not agree with
the recommendation, the principal shall continue the temporary alternative
placement of the pupil and shall immediately convene a meeting of the committee
created pursuant to section 6 of this act. The principal shall inform the
parent or legal guardian of the pupil that the committee will be conducting a
meeting. The committee shall review the circumstances of the pupil’s removal
from the classroom and the pupil’s behavior that caused him to be removed from
the classroom. Based upon its review, the committee shall assess the best placement
available for the pupil and shall, without limitation:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      1.  Direct
that the pupil be returned to the classroom from which he was removed;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  Assign
the pupil to another appropriate classroom;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  Assign
the pupil to an alternative program of education, if available;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      4.  Recommend
the suspension or expulsion of the pupil in accordance with NRS 392.467; or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      5.  Take
any other appropriate disciplinary action against the pupil that the committee
deems necessary.</span></span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3188"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3188 (<a href="#Stats199920_CH591">CHAPTER 591, AB 521</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><b>      Sec. 8. </b> <span class=newLang><span
style='color:blue'>An action must not be taken pursuant to the provisions of
sections 2 to 8, inclusive, of this act against a pupil with a disability who
is participating in a program of special education pursuant to NRS 388.440 to
388.520, inclusive, unless the action complies with:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      1.  The
Individuals with Disabilities Education Act, 20 U.S.C. §§ 1400 et seq.;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  The
Americans with Disabilities Act of 1990, 42 U.S.C. §§ 12101 et seq.;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  Title
V of the Rehabilitation Act of 1973, 29 U.S.C. §§ 791 et seq.;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      4.  Any
other federal law applicable to children with disabilities; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      5.  The
procedural policy adopted by the board of trustees of the school district for
such matters.</span></span></p>

<p class="SectBody"><b>      Sec. </b><b>9.  </b>1.  The
superintendent of public instruction shall establish a pilot project for
alternative programs of education for disruptive pupils.</p>

<p class="SectBody">      2.  The superintendent of public
instruction shall select eight schools to participate in the pilot project,
which must include:</p>

<p class="SectBody">      (a) One elementary school located in a rural
area;</p>

<p class="SectBody">      (b) One secondary school located in a rural area;</p>

<p class="SectBody">      (c) Two elementary schools located in an urban
area;</p>

<p class="SectBody">      (d) Two middle schools located in an urban area;
and</p>

<p class="SectBody">      (e) Two high schools located in an urban area. </p>

<p class="SectBody">      3.  Each school selected pursuant to
subsection 2 shall establish an alternative program of education for disruptive
pupils, which may be located on the grounds of the school or at another
location. The alternative program must:</p>

<p class="SectBody">      (a) Be provided in a setting outside the regular
classroom of the pupil;</p>

<p class="SectBody">      (b) Ensure that pupils who are participating in
the program are separated from pupils who are not participating in the program;</p>

<p class="SectBody">      (c) Provide supervision of and counseling to
pupils who participate in the program;</p>

<p class="SectBody">      (d) Provide and emphasize instruction in language
arts, mathematics, science and history, as appropriate to the grade level of
the pupils participating in the program; and</p>

<p class="SectBody">      (e) Provide and emphasize training in
self-discipline.</p>

<p class="SectBody"><b>      Sec. </b><b>10.  </b>1.  There
is hereby appropriated from the state general fund to the department of
education for the pilot project established pursuant to section 9 of this act:</p>

<p class="MsoNormal" style='margin-left:.4in'>For the fiscal year 1999-2000............................................................................................................................ $500,000</p>

<p class="MsoNormal" style='margin-left:.4in'>For the fiscal year 2000-2001 ........................................................................................................................... $500,000</p>

<p class="SectBody">      2.  The department shall allocate the money
appropriated pursuant to subsection 1 to the schools selected pursuant to
section 9 of this act.</p>

<p class="SectBody">      3.  The money allocated to the schools
selected pursuant to section 9 of this act must not be used by those schools
to:</p>

<p class="SectBody">      (a) Settle or arbitrate disputes or negotiate
settlements between an organization that represents licensed employees of the
school district and the school district; or</p>

<p class="SectBody">      (b) Adjust the schedules of salaries and benefits
of the employees of the school district.</p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3189"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3189 (<a href="#Stats199920_CH591">CHAPTER 591, AB 521</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody">      4.  Any balance of the sums appropriated by
subsection 1 remaining at the end of the respective fiscal years must not be
committed for expenditure after June 30 of the respective fiscal years and
reverts to the state general fund as soon as all payments of money committed
have been made.</p>

<p class="SectBody"><b>      Sec. 11.  </b>1.  On
or before October 1, 2000, the schools selected pursuant to section 9 of this
act shall report to the department of education for the period ending September
1, 2000:</p>

<p class="SectBody">      (a) The manner in which the alternative program
that the school established pursuant to section 9 of this act was carried out;</p>

<p class="SectBody">      (b) The expenditures made by the school for the
alternative program;</p>

<p class="SectBody">      (c) The number of pupils who were removed
temporarily from the classroom pursuant to section 4 of this act and the number
of those pupils who were permanently removed from the classroom;</p>

<p class="SectBody">      (d) The reasons for which pupils were removed
from the classroom pursuant to section 4 of this act;</p>

<p class="SectBody">      (e) The average length of time during which
pupils who were removed from the classroom pursuant to section 4 of this act
remained out of the classroom;</p>

<p class="SectBody">      (f) The number of disciplinary referrals,
suspensions and expulsions that occurred at the school before and after the
establishment of the alternative program; and</p>

<p class="SectBody">      (g) An analysis of the academic achievement and
performance of the pupils before and after the pupils participated in the
alternative program.</p>

<p class="SectBody">      2.  The department of education shall
evaluate the effectiveness of the pilot project for alternative programs of
education for disruptive pupils established pursuant to section 9 of this act based
on the reports submitted by the schools pursuant to subsection 1. In addition,
the department shall solicit and analyze data from schools that were not
included in the pilot project but have established alternative programs of
education for disruptive pupils. The department may spend not more than $10,000
of the amount appropriated pursuant to section 10 of this act during the fiscal
years 1999-2001 to hire a contractor to assist with the evaluation.</p>

<p class="SectBody">      3.  After conducting an evaluation pursuant
to subsection 2, the department of education shall submit a report of its
findings to the legislative committee on education created pursuant to NRS
218.5352 on or before November 1, 2000, and shall submit a final report to the
director of the legislative counsel bureau for transmission to the next regular
session of the legislature on or before February 15, 2001.</p>

<p class="SectBody"><b>      Sec. 12.  </b>1.  This
section and section 10 of this act become effective upon passage and approval.</p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      </span></span>2.  Sections
1 to 9, inclusive, and 11 of this act become effective on July 1, 1999.</p>

<p class="SectBody" align=center style='text-align:center'>________</p>

<p class="SectBody" align=center style='text-align:center'> </p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3190"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3190<span style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="DocHeading"><a name="Stats199920_CH592"></a><span style='display:none;
font-weight:normal'>CHAPTER 592, AB 477</span></p>

<p class="SectBody" align=center style='text-align:center'>Assembly Bill No.
477–Committee on Commerce and Labor</p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.0pt'> </p>

<p class="statChapter">CHAPTER<span class=AdvanceChapter> 592</span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'> </span></p>

<p class="MsoNormal" style='margin-left:30.25pt;text-indent:-30.25pt;line-height:
8.0pt'><span style='font-size:8.0pt'>AN ACT relating to mobile home parks;
requiring a landlord of a mobile home park to remove snow from certain areas of
the park; requiring a landlord to trim the trees within the park and dispose of
the trimmings from those trees; increasing the fee for a late monthly rental
payment; authorizing a landlord to give a discount on the monthly rental
payment to a tenant who pays his rent in a timely manner or pays his rent by
check, money order or electronic means; prohibiting a tenant from harassing a landlord,
manager or assistant manager of a mobile home park, or an employee or agent of
a landlord; providing remedies for failure of the buyer and tenant of a mobile
home to gain prior approval of landlord where required; providing a civil
penalty; and providing other matters properly relating thereto.</span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'> </span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'>[Approved June 9, 1999]</span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'> </span></p>

<p class="Billupper" align=center style='margin-top:2.0pt;margin-right:.4in;
margin-bottom:0in;margin-left:.4in;margin-bottom:.0001pt;text-align:center;
text-indent:0in;line-height:8.5pt'><span style='font-size:8.0pt'>THE PEOPLE OF
THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, </span></p>

<p class="Billupper" align=center style='margin-top:2.0pt;margin-right:.4in;
margin-bottom:0in;margin-left:.4in;margin-bottom:.0001pt;text-align:center;
text-indent:0in;line-height:8.5pt'><span style='font-size:8.0pt'>DO ENACT AS
FOLLOWS:</span></p>

<p class="MsoNormal"> </p>

<p class="SectBody">      <b>Section 1.</b>  <b>NRS 118B.090</b>
is hereby amended to read as follows:</p>

<p class="SectBody">    118B.090<span class=Empty>  </span>The
landlord shall:</p>

<p class="SectBody">    1.  Maintain all common areas of the park in
a clean and safe condition;</p>

<p class="SectBody">    2.  Maintain in good working order all
electrical, plumbing and sanitary facilities, appliances and recreational
facilities which he furnishes;</p>

<p class="SectBody">    3.  Maintain in a safe and secure location
individual mail boxes for the tenants if the mail is delivered to the landlord
for distribution to the tenants; <span class=oldLang><b><span style='color:
red'>[</span></b><span style='color:red'>and<b>]</b></span></span></p>

<p class="SectBody">    4.  Maintain all driveways within the park and
sidewalks adjacent to the street<span class=newLang><span style='color:blue'> </span></span><span
class=oldLang><b><span style='color:red'>[</span></b><span style='color:red'>.<b>]</b></span></span><span
class=newLang><span style='color:blue'> ; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    5.  Remove
snow from the sidewalks and streets within the park, and from sidewalks
adjacent to the street.</span></span></p>

<p class="SectBody"><b>      Sec. 2.  NRS 118B.120</b> is
hereby amended to read as follows:</p>

<p class="SectBody">    118B.120<span class=Empty>  </span>1.  The
landlord or his agent or employee may:</p>

<p class="SectBody">    (a) Require that the tenant landscape and maintain
the tenant’s lot if the landlord advises the tenant in writing of reasonable
requirements for the landscaping.</p>

<p class="SectBody">    (b) If the tenant does not comply with the
provisions of paragraph (a), maintain the tenant’s lot and charge the tenant a
service fee for the actual cost of that maintenance.</p>

<p class="SectBody">    (c) Require that the mobile home be removed from
the park if it is unoccupied for more than 90 consecutive days and the tenant
or dealer is not making good faith and diligent efforts to sell it.</p>

<p class="SectBody">    2.  The landlord shall maintain, in the
manner required for the other tenants, any lot on which is located a mobile
home within the park which has been repossessed, abandoned or held for rent or
taxes. The landlord is entitled to reimbursement for the cost of that
maintenance from the repossessor or lien holder or from the proceeds of any
sale for taxes, as the case may be.</p>

<p class="SectBody">    3.  <span class=newLang><span
style='color:blue'>The landlord shall trim all the trees located within the
park and dispose of the trimmings from those trees absent a voluntary
assumption of that duty by the tenant for trees on the tenant’s lot.</span></span></p>

<span class=newLang><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:blue;font-weight:normal'><br clear=all style='page-break-before:always'>
</span></span>

<p class="StatsPageBreak"><a name="Stats199920page3191"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3191 (<a href="#Stats199920_CH592">CHAPTER 592, AB 477</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    4.  </span></span>For
the purposes of this section, a mobile home shall be deemed to be abandoned if:</p>

<p class="SectBody">    (a) It is located on a lot in a mobile home park
for which no rent has been paid for at least 60 days;</p>

<p class="SectBody">    (b) It is unoccupied; and</p>

<p class="SectBody">      (c) The manager of the mobile home park
reasonably believes it to be abandoned.</p>

<p class="SectBody"><b>      Sec. 3.  NRS 118B.140</b> is
hereby amended to read as follows:</p>

<p class="SectBody">    118B.140<span class=Empty>  </span>The
landlord or his agent or employee shall not:</p>

<p class="SectBody">    1.  Require a person to purchase a mobile
home from him or any other person as a condition to renting a mobile home lot
to the purchaser or give an adjustment of rent or fees, or provide any other
incentive to induce the purchase of a mobile home from him or any other person.</p>

<p class="SectBody">    2.  Charge or receive:</p>

<p class="SectBody">    (a) Any entrance or exit fee for assuming or leaving
occupancy of a mobile home lot.</p>

<p class="SectBody">    (b) Any transfer or selling fee or commission as a
condition to permitting a tenant to sell his mobile home or recreational
vehicle within the mobile home park even if the mobile home or recreational
vehicle is to remain within the park, unless the landlord is licensed as a
dealer of mobile homes pursuant to NRS 489.311 and has acted as the tenant’s
agent in the sale pursuant to a written contract.</p>

<p class="SectBody">    (c) Any fee for the tenant’s spouse or children.</p>

<p class="SectBody">    (d) Any fee for pets kept by a tenant in the park.
If special facilities or services are provided, the landlord may also charge a
fee reasonably related to the cost of maintenance of the facility or service
and the number of pets kept in the facility.</p>

<p class="SectBody">    (e) Any additional service fee unless the landlord
provides an additional service which is needed to protect the health and
welfare of the tenants, and written notice advising each tenant of the
additional fee is sent to the tenant 90 days in advance of the first payment to
be made, and written notice of the additional fee is given to prospective
tenants on or before commencement of their tenancy. A tenant may only be
required to pay the additional service fee for the duration of the additional
service.</p>

<p class="SectBody">    (f) Any fee for a late monthly rental payment
within 4 days <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>of<b>]</b></span></span> <span class=newLang><span
style='color:blue'>after </span></span>the date the rental payment is due or
which exceeds <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>$1<b>]</b></span></span><span class=newLang><span
style='color:blue'> $5</span></span> for each day <span class=newLang><span
style='color:blue'>, excluding Saturdays, Sundays and legal holidays, </span></span>which
the payment is overdue, beginning on the day after the payment was due. Any fee
for late payment of charges for utilities must be in accordance with the
requirements prescribed by the public utilities commission of Nevada.</p>

<p class="SectBody">    (g) Any fee, surcharge or rent increase to recover
from his tenants the costs resulting from converting from a master-metered
water system to individual water meters for each mobile home lot.</p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    (h) Any
fee, surcharge or rent increase to recover from his tenants any amount that
exceeds the amount of the cost for a governmentally mandated service or tax
that was paid by the landlord.</span></span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3192"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3192 (<a href="#Stats199920_CH592">CHAPTER 592, AB 477</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><b>      Sec. 4.  NRS 118B.150</b> is
hereby amended to read as follows:</p>

<p class="SectBody">    118B.150<span class=Empty>  </span>The
landlord or his agent or employee shall not:</p>

<p class="SectBody">    1.  Increase rent or additional charges
unless:</p>

<p class="SectBody">    (a) The rent charged after the increase is the same
rent charged for mobile homes of the same size or lots of the same size or of a
similar location within the park, except that a discount may be selectively
given to persons who <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>are:</span></span></p>

<p class="SectBody"><span class=oldLang><span style='color:red'>      (1) Handicapped;</span></span></p>

<p class="SectBody"><span class=oldLang><span style='color:red'>      (2) Fifty-five<b>]</b></span></span><span
class=newLang><span style='color:blue'> :</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (1) Are
handicapped;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (2) Are
55</span></span> years of age or older; <span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>or </span></span></p>

<p class="SectBody"><span class=oldLang><span style='color:red'>      (3) Long-term<b>]</b></span></span><span
class=newLang><span style='color:blue'> </span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (3) Are
long-term</span></span> tenants of the park if the landlord has specified in
the rental agreement or lease the period of tenancy required to qualify for
such a discount;<span class=newLang><span style='color:blue'> </span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (4) Pay
their rent in a timely manner; or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (5) Pay
their rent by check, money order or electronic means;</span></span></p>

<p class="SectBody">    (b) Any increase in additional charges for special
services is the same amount for each tenant using the special service; and</p>

<p class="SectBody">    (c) Written notice advising a tenant of the
increase is received by the tenant 90 days before the first payment to be
increased and written notice of the increase is given to prospective tenants
before commencement of their tenancy. In addition to the notice provided to a
tenant pursuant to this paragraph, if the landlord or his agent or employee
knows or reasonably should know that the tenant receives assistance from the
fund created pursuant to NRS 118B.215, the landlord or his agent or employee
shall provide to the administrator written notice of the increase 90 days
before the first payment to be increased.</p>

<p class="SectBody">    2.  Require a tenant to pay for an
improvement to the common area of a mobile home park unless the landlord is
required to make the improvement pursuant to an ordinance of a local
government.</p>

<p class="SectBody">    3.  Require a tenant to pay for a capital
improvement to the mobile home park unless the tenant has notice of the
requirement at the time he enters into the rental agreement. A tenant may not
be required to pay for a capital improvement after the tenant enters into the
rental agreement unless the tenant consents to it in writing or is given 60
days’ notice of the requirement in writing. The landlord may not establish such
a requirement unless a meeting of the tenants is held to discuss the proposal
and the landlord provides each tenant with notice of the proposal and the date,
time and place of the meeting not less than 60 days before the meeting. The
notice must include a copy of the proposal. A notice in a periodic publication
of the park does not constitute notice for the purposes of this subsection.</p>

<p class="SectBody">    4.  Require a tenant to pay his rent by check
or money order.</p>

<p class="SectBody">    5.  Require a tenant who pays his rent in
cash to apply any change to which he is entitled to the next periodic payment
that is due. The landlord or his agent or employee shall have an adequate
amount of money available to provide change to such a tenant.</p>

<p class="SectBody">    6.  Prohibit or require fees or deposits for
any meetings held in the park’s community or recreational facility by the
tenants or occupants of any mobile home or recreational vehicle in the park to
discuss the park’s affairs, or any <span class=Extension>political or social
meeting sponsored by a tenant, if the meetings are held at reasonable hours and
when the facility is not otherwise in use, or prohibit the distribution of
notices of those meetings.</span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3193"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3193 (<a href="#Stats199920_CH592">CHAPTER 592, AB 477</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody">political or social meeting sponsored by a tenant, if the
meetings are held at reasonable hours and when the facility is not otherwise in
use, or prohibit the distribution of notices of those meetings.</p>

<p class="SectBody">    7.  Interrupt, with the intent to terminate
occupancy, any utility service furnished the tenant except for nonpayment of
utility charges when due. Any landlord who violates this subsection is liable
to the tenant for actual damages.</p>

<p class="SectBody">    8.  Prohibit a tenant from having guests, but
he may require the tenant to register the guest within 48 hours after his
arrival, Sundays and <span class=newLang><span style='color:blue'>legal </span></span>holidays
excluded, and if the park is a secured park, a guest may be required to
register upon entering and leaving.</p>

<p class="SectBody">    9.  Charge a fee for a guest who does not
stay with the tenant for more than a total of 60 days in a calendar year. The
tenant of a mobile home lot who is living alone may allow one other person to
live in his home without paying an additional charge or fee, unless such a
living arrangement constitutes a violation of chapter 315 of NRS. No agreement
between a tenant and his guest alters or varies the terms of the rental
contract between the tenant and the landlord <span class=newLang><span
style='color:blue'>, </span></span>and the guest is subject to the rules and
regulations of the landlord.</p>

<p class="SectBody">    10.  Prohibit a tenant from erecting a fence
along the perimeter of the tenant’s lot if the fence complies with any
standards for fences established by the landlord, including limitations
established for the height of fences, the materials used for fences and the
manner in which fences are to be constructed.</p>

<p class="SectBody">    11.  Prohibit any tenant from soliciting
membership in any association which is formed by the tenants who live in the
park. As used in this subsection, “solicit” means to make an oral or written
request for membership or the payment of dues or to distribute, circulate or
post a notice for payment of those dues.</p>

<p class="SectBody">    12.  Prohibit a public officer or candidate
for public office from walking through the park to talk with the tenants.</p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    13.  If
a tenant has voluntarily assumed responsibility to trim the trees on his lot,
require the tenant to trim any particular tree located on the lot or dispose of
the trimmings unless a danger or hazard exists.</span></span></p>

<p class="SectBody"><b>      Sec. 5.  NRS 118B.170</b> is
hereby amended to read as follows:</p>

<p class="SectBody">    118B.170<span class=Empty>  </span>1.  The
landlord may require approval of a prospective buyer and tenant before the sale
of a tenant’s mobile home or recreational vehicle, if the mobile home or
vehicle will remain in the park.<span class=newLang><span style='color:blue'>
The landlord shall consider the record, if any, of the prospective buyer and
tenant concerning the payment of rent.</span></span> The landlord shall not
unreasonably withhold his consent.</p>

<p class="SectBody">    2.  If a tenant sells his mobile home or
recreational vehicle, the landlord may require that the mobile home or
recreational vehicle be removed from the park if it is deemed by the park’s
written rules or regulations in the possession of the tenants to be in a
run-down condition or in disrepair or does not meet the safety standards set
forth in NRS 461A.120. If the mobile home must be inspected to determine
compliance with the standards, the person requesting the inspection shall pay
for it.</p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3194"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3194 (<a href="#Stats199920_CH592">CHAPTER 592, AB 477</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody">    3.  If the landlord requires <span
class=newLang><span style='color:blue'>the </span></span>approval of a
prospective buyer and tenant, he shall post and maintain a sign which is
clearly readable at the entrance to the park which advises the reader that
before a mobile home in the park is sold, the prospective buyer must be
approved by the landlord.</p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    4.  If
the landlord requires the approval of a prospective buyer and tenant of a
mobile home or recreational vehicle and the mobile home or recreational vehicle
is sold without the approval of the landlord, the landlord may:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    (a) After
providing at least 10 days’ written notice to the buyer and tenant, bring an
action for an unlawful detainer in the manner prescribed in chapter 40 of NRS;
or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) Require
the buyer and tenant to sign a rental agreement. If the buyer and tenant refuse
to sign the rental agreement within 5 days after such a request, the landlord
may, after providing at least 10 days’ written notice to the buyer and tenant,
bring an action for an unlawful detainer in the manner provided in chapter 40
of NRS.</span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>5.  For
the purposes of NRS 40.251, a person who:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Purchases
a mobile home or recreational vehicle from a tenant of a mobile home park which
will remain in the park;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) Was
required to be approved by the landlord of the mobile home park before the sale
of the mobile home or recreational vehicle; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) Was
not approved by the landlord before he purchased that mobile home or
recreational vehicle,</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>shall be deemed
a tenant at will and a lessee of the mobile home park.</span></span></p>

<p class="SectBody"><b>      Sec. 6.  NRS 118B.210</b> is
hereby amended to read as follows:</p>

<p class="SectBody">    118B.210<span class=Empty>  </span>1.  The
landlord shall not terminate a tenancy, refuse to renew a tenancy, increase
rent or decrease services he normally supplies, or bring or threaten to bring
an action for possession of a mobile home lot as retaliation upon the tenant
because:</p>

<p class="SectBody">    (a) He has complained in good faith about a
violation of a building, safety or health code or regulation pertaining to a
mobile home park to the governmental agency responsible for enforcing the code
or regulation.</p>

<p class="SectBody">    (b) He has complained to the landlord concerning
the maintenance, condition or operation of the park or a violation of any
provision of NRS 118B.040 to 118B.220, inclusive, and 118B.240.</p>

<p class="SectBody">    (c) He has organized or become a member of a
tenants’ league or similar organization.</p>

<p class="SectBody">    (d) He has requested the reduction in rent required
by:</p>

<p class="SectBody">      (1) NRS 118.165 as a result of a reduction in
property taxes.</p>

<p class="SectBody">      (2) NRS 118B.153 when a service, utility or
amenity is decreased or eliminated by the landlord.</p>

<p class="SectBody">    (e) A citation has been issued to the landlord as
the result of a complaint of the tenant.</p>

<p class="SectBody">    (f) In a judicial proceeding or arbitration between
the landlord and the tenant, an issue has been determined adversely to the
landlord.</p>

<p class="SectBody">    2.  A landlord, manager or assistant manager
of a mobile home park shall not willfully harass a tenant.</p>

<p class="SectBody">    3.  <span class=newLang><span
style='color:blue'>A tenant shall not willfully harass a landlord, manager,
assistant manager of a mobile home park or an employee or agent of the
landlord.</span></span></p>

<span class=newLang><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:blue;font-weight:normal'><br clear=all style='page-break-before:always'>
</span></span>

<p class="StatsPageBreak"><a name="Stats199920page3195"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3195 (<a href="#Stats199920_CH592">CHAPTER 592, AB 477</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    4.  </span></span>As
used in this section, “harass” means to threaten or intimidate, through words
or conduct, with the intent to affect the terms or conditions of a tenancy or <span
class=oldLang><b><span style='color:red'>[</span></b><span style='color:red'>the
tenant’s<b>]</b></span></span><span class=newLang><span style='color:blue'> a
person’s</span></span> exercise of his rights pursuant to this chapter.</p>

<p class="SectBody"><b>      Sec. 7.  NRS 118B.260</b> is
hereby amended to read as follows:</p>

<p class="SectBody">    118B.260<span class=Empty>  </span>Any
landlord who violates any of the provisions of this chapter<span class=newLang><span
style='color:blue'> </span></span><span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>:<b>]</b></span></span><span
class=newLang><span style='color:blue'> and any other person who violates NRS
118B.210:</span></span></p>

<p class="SectBody">    1.  For the first violation, shall pay a
civil penalty of not more than $1,000.</p>

<p class="SectBody">    2.  For the second violation, shall pay a
civil penalty of not more than $2,500.</p>

<p class="SectBody">    3.  For the third or subsequent violation,
shall pay a civil penalty of not more than $5,000 for each violation.</p>

<p class="SectBody">If a <span class=newLang><span style='color:blue'>civil </span></span>penalty
is imposed pursuant to this section, the costs of the proceeding, including
investigative costs and attorney’s fees, must be recovered by the
administrator, if possible.</p>

<p class="SectBody"><b>      Sec. 8.  NRS 40.251</b> is hereby
amended to read as follows:</p>

<p class="SectBody">    40.251<span class=Empty>  </span>A tenant of
real property, a recreational vehicle or a mobile home for a term less than
life is guilty of an unlawful detainer when having leased:</p>

<p class="SectBody">    1.  Real property, except as otherwise
provided in this section, or a mobile home for an indefinite time, with monthly
or other periodic rent reserved, he continues in possession thereof, in person
or by subtenant, without the landlord’s consent after the expiration of a
notice of:</p>

<p class="SectBody">    (a) For tenancies from week to week, at least 7
days;</p>

<p class="SectBody">    (b) For all other periodic tenancies, at least 30
days; or</p>

<p class="SectBody">    (c) For tenancies at will, at least 5 days.</p>

<p class="SectBody">    2.  A dwelling unit subject to the provisions
of chapter 118A of NRS, he continues in possession, in person or by subtenant,
without the landlord’s consent after expiration of:</p>

<p class="SectBody">    (a) The term of the rental agreement or its
termination and, except as otherwise provided in paragraph (b), the expiration
of a notice of at least 7 days for tenancies from week to week and 30 days for
all other periodic tenancies; or</p>

<p class="SectBody">    (b) A notice of at least 5 days where the tenant
has failed to perform his basic or contractual obligations under chapter 118A
of NRS.</p>

<p class="SectBody">    3.  A mobile home lot subject to the
provisions of chapter 118B of NRS, or a lot for a recreational vehicle in an
area of a mobile home park other than an area designated as a recreational
vehicle lot pursuant to the provisions of subsection 6 of NRS 40.215, he
continues in possession, in person or by subtenant, without the landlord’s
consent, after notice has been given pursuant to NRS <span class=newLang><span
style='color:blue'>118B.170 or </span></span>118B.190 and the period of the
notice has expired.</p>

<p class="SectBody">      4.  A recreational vehicle lot, he
continues in possession, in person or by subtenant, without the landlord’s
consent, after the expiration of a notice of at least 5 days.</p>

<p class="SectBody" align=center style='text-align:center'>________</p>

<p class="SectBody" align=center style='text-align:center'> </p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3196"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3196<span style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="DocHeading"><a name="Stats199920_CH593"></a><span style='display:none;
font-weight:normal'>CHAPTER 593, AB 472</span></p>

<p class="MsoNormal" style='margin-left:15.1pt;text-indent:-15.1pt'>Assembly Bill
No. 472–Assemblymen Arberry, Buckley, Goldwater, Mortenson, Parks, Anderson,
Dini, Claborn, de Braga, Chowning, Parnell, Koivisto, McClain, Williams,
Neighbors, Lee, Thomas, Segerblom and Perkins</p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.0pt'> </p>

<p class="statChapter">CHAPTER<span class=AdvanceChapter> 593</span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'> </span></p>

<p class="MsoNormal" style='margin-left:30.25pt;text-indent:-30.25pt;line-height:
8.0pt'><span style='font-size:8.0pt'>AN ACT relating to the judicial system;
increasing the additional salary for longevity paid to certain justices and
judges; making an appropriation; and providing other matters properly relating
thereto.</span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'> </span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'>[Approved June 9, 1999]</span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'> </span></p>

<p class="Billupper" align=center style='margin-top:2.0pt;margin-right:.4in;
margin-bottom:0in;margin-left:.4in;margin-bottom:.0001pt;text-align:center;
text-indent:0in;line-height:8.5pt'><span style='font-size:8.0pt'>THE PEOPLE OF
THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, </span></p>

<p class="Billupper" align=center style='margin-top:2.0pt;margin-right:.4in;
margin-bottom:0in;margin-left:.4in;margin-bottom:.0001pt;text-align:center;
text-indent:0in;line-height:8.5pt'><span style='font-size:8.0pt'>DO ENACT AS
FOLLOWS:</span></p>

<p class="MsoNormal"> </p>

<p class="SectBody">      <b>Section 1.</b>  <b>NRS 3.030</b>
is hereby amended to read as follows:</p>

<p class="SectBody">    3.030<span class=Empty>  </span>1.  Until
the first Monday in January 1997, the annual base salary of each district judge
is $79,000. From and after the first Monday in January 1997, the annual base
salary of each district judge is $100,000.</p>

<p class="SectBody">    2.  If a district judge has served in his
office for at least <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>5<b>]</b></span></span> <span class=newLang><span
style='color:blue'>4</span></span> years, he is entitled to an additional
salary of <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>1<b>]</b></span></span><span class=newLang><span
style='color:blue'> 2</span></span> percent of his base salary for each year of
service. The additional salary must not exceed 22 percent of his base salary.</p>

<p class="SectBody">    3.  The base salaries and the additional
salary for longevity must be paid in biweekly installments out of the district
judges’ salary account of the supreme court.</p>

<p class="SectBody">    4.  No salary of any district judge may be
paid in advance.</p>

<p class="SectBody"><b>      Sec. 2.  NRS 213.015</b> is hereby
amended to read as follows:</p>

<p class="SectBody">      213.015<span class=Empty>  </span>1.  A
member of the board who has served as a district judge or as a justice of the
supreme court, or any combination thereof, for at least <span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>6<b>]</b></span></span><span
class=newLang><span style='color:blue'> 4</span></span> years, is entitled to
compensation as a member of the board in the amount of <span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>1<b>]</b></span></span><span
class=newLang><span style='color:blue'> 2</span></span> percent of his annual
salary as a justice of the supreme court for each year of service as a district
judge or as a justice of the supreme court, or any combination thereof. The
compensation received by a justice for his service on the board<span
class=newLang><span style='color:blue'> </span></span>must not exceed 22
percent of his annual salary as a justice of the supreme court.</p>

<p class="SectBody">      2.  The salaries provided for in this
section must be paid out of money provided by direct legislative appropriation
from the state general fund.</p>

<p class="SectBody"><b>      Sec. 3.  </b>1.  There
is hereby appropriated from the state general fund to the Supreme Court for
carrying out the amendatory provisions of this act:</p>

<p class="MsoNormal" style='margin-left:.4in'>For the fiscal year 1999-2000............................................................................................................................ $182,612</p>

<p class="MsoNormal" style='margin-left:.4in'>For the fiscal year 2000-2001............................................................................................................................ $205,367</p>

<p class="SectBody">      2.  Any balance of the sums appropriated by
subsection 1 remaining at the end of the respective fiscal years must not be
committed for expenditure after June 30 of the respective fiscal years and
reverts to the state general fund as soon as all payments of money committed
have been made.</p>

<p class="SectBody"><b>      Sec. 4.  </b>This act becomes
effective on July 1, 1999.</p>

<p class="SectBody" align=center style='text-align:center'>________</p>

<p class="SectBody" align=center style='text-align:center'> </p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3197"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3197<span style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="DocHeading"><a name="Stats199920_CH594"></a><span style='display:none;
font-weight:normal'>CHAPTER 594, SB 521</span></p>

<p class="SectBody" align=center style='text-align:center'>Senate Bill No.
521–Committee on Taxation</p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.0pt'> </p>

<p class="statChapter">CHAPTER<span class=AdvanceChapter> 594</span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'> </span></p>

<p class="MsoNormal" style='margin-left:30.25pt;text-indent:-30.25pt;line-height:
8.0pt'><span style='font-size:8.0pt'>AN ACT relating to taxation; revising the
provisions governing the exemption of works of fine art from certain taxes; and
providing other matters properly relating thereto.</span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'> </span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'>[Approved June 9, 1999]</span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'> </span></p>

<p class="Billupper" align=center style='margin-top:2.0pt;margin-right:.4in;
margin-bottom:0in;margin-left:.4in;margin-bottom:.0001pt;text-align:center;
text-indent:0in;line-height:8.5pt'><span style='font-size:8.0pt'>THE PEOPLE OF
THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, </span></p>

<p class="Billupper" align=center style='margin-top:2.0pt;margin-right:.4in;
margin-bottom:0in;margin-left:.4in;margin-bottom:.0001pt;text-align:center;
text-indent:0in;line-height:8.5pt'><span style='font-size:8.0pt'>DO ENACT AS
FOLLOWS:</span></p>

<p class="MsoNormal"> </p>

<p class="SectBody">      <b>Section 1.</b>  <b>Chapter 361 of
NRS</b> is hereby amended by adding thereto the provisions set forth as
sections 2 and 3 of this act.</p>

<p class="SectBody"><b>    Sec. 2.  <span class=newLang><span
style='color:blue'>1.  A taxpayer may collect an admission fee for
the exhibition of fine art otherwise exempt from taxation pursuant to NRS
361.068 if the taxpayer offers to residents of the State of Nevada a discount
of 50 percent from any admission fee charged to nonresidents. The discounted
admission fee for residents must be offered at any time the exhibition is open
to the public and admission fees are being charged.</span></span></b></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>2.  Except
as otherwise provided in subsection 5, if a taxpayer collects a fee for the
exhibition of fine art otherwise exempt from taxation pursuant to NRS 361.068,
the exemption pertaining to that fine art for the fiscal year must be reduced
by the net revenue derived by the taxpayer for that fiscal year. The exemption
pertaining to fine art for a particular fiscal year must not be reduced below
zero, regardless of the amount of the net revenue derived by the taxpayer for
that fiscal year.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  A
tax resulting from the operation of this section is due with the tax otherwise
due under the taxpayer’s first statement filed pursuant to NRS 361.265 after
the 15th day of the fourth month after the end of the fiscal year in which the
net revenue was received or, if no such statement is required to be filed,
under a statement of the net revenue filed on or before the last day of the
fourth month after the end of that fiscal year.</span></span></p>

<p class="SectBody">    <span class=newLang><span style='color:blue'>4.  A
taxpayer who is required to pay a tax resulting from the operation of this
section may receive a credit against the tax for any donations made by the
taxpayer to the state arts council, the division of museums and history
dedicated trust fund established pursuant to NRS 381.0031, a museum that
provides exhibits specifically related to nature or a museum that provides
exhibits specifically related to children, if the taxpayer:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    (a) Made
the donation before the date that either statement required pursuant to
subsection 3 is due; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    (b) Provides
to the county assessor documentation of the donation at the time that he files
the statement required pursuant to subsection 3.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    5.  If
a taxpayer qualifies for and avails himself of both of the exemptions from taxation
provided by NRS 361.068 and 374.291, the reduction of the exemptions by the net
revenue derived by the taxpayer, as required pursuant to subsection 2 of this
section and subsection 2 of section 6 of this act, must be carried out in such
a manner that the total net revenue derived by the taxpayer is first applied to
reduce the exemption provided pursuant to NRS 374.291. If the net revenue
exceeds the amount of the exemption provided pursuant to NRS 374.291, the
remaining net </span></span><span class=Extension>revenue must be applied to
reduce the exemption provided pursuant to NRS 361.068.</span></p>

<span class=newLang><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:blue;font-weight:normal'><br clear=all style='page-break-before:always'>
</span></span>

<p class="StatsPageBreak"><a name="Stats199920page3198"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3198 (<a href="#Stats199920_CH594">CHAPTER 594, SB 521</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><span class=newLang><span style='color:blue'>revenue must be
applied to reduce the exemption provided pursuant to NRS 361.068. If the net
revenue is less than or equal to the exemption provided pursuant to NRS 374.291
for that fiscal year, the exemption provided pursuant to NRS 361.068 must not
be reduced.</span></span></p>

<p class="SectBody">    <span class=newLang><span style='color:blue'>6.  For
the purposes of this section:</span></span></p>

<p class="SectBody">    <span class=newLang><span style='color:blue'>(a) “Direct
costs of owning and exhibiting the fine art” does not include any allocation of
the general and administrative expense of a business or organization that
conducts activities in addition to the operation of the facility in which the
fine art is displayed, including, without limitation, an allocation of the
salary and benefits of a senior executive who is responsible for the oversight
of the facility in which the fine art is displayed and who has substantial responsibilities
related to the other activities of the business or organization.</span></span></p>

<p class="SectBody">    <span class=newLang><span style='color:blue'>(b) “Net
revenue” means the amount of the fees collected for exhibiting the fine art
during that fiscal year less the following paid or made during that fiscal
year:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (1) The
direct costs of owning and exhibiting the fine art; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>             (2) The
cost of educational programs associated with the taxpayer’s public display of
fine art, including the cost of meeting the requirements of sub-subparagraph
(IV) of subparagraph (1) of paragraph (b) of subsection 5 of NRS 361.068.</span></span></p>

<p class="SectBody"><b>      Sec. 3. </b> <span class=newLang><span
style='color:blue'>The exemption provided in paragraph (j) of subsection 1 of
NRS 361.068 applies to taxes on personal property otherwise due from the owner
of a work of fine art that is leased to a person who publicly displays the
work. The price or value to which that section refers is the price or value of
the work that is leased.</span></span></p>

<p class="SectBody"><b>      Sec. 4.  NRS 361.068</b> is hereby
amended to read as follows:</p>

<p class="SectBody">    361.068<span class=Empty>  </span>1.  The
following personal property is exempt from taxation:</p>

<p class="SectBody">    (a) Personal property held for sale by a merchant;</p>

<p class="SectBody">    (b) Personal property held for sale by a
manufacturer;</p>

<p class="SectBody">    (c) Raw materials and components held by a
manufacturer for manufacture into products, and supplies to be consumed in the
process of manufacture;</p>

<p class="SectBody">    (d) Tangible personal property purchased by a
business which will be consumed during the operation of the business;</p>

<p class="SectBody">    (e) Livestock;</p>

<p class="SectBody">    (f) Colonies of bees;</p>

<p class="SectBody">    (g) Pipe and other agricultural equipment used to
convey water for the irrigation of legal crops;</p>

<p class="SectBody">    (h) All boats;</p>

<p class="SectBody">    (i) Slide-in campers and camper shells;</p>

<p class="SectBody">    (j) <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>Fine<b>]</b></span></span> <span class=newLang><span
style='color:blue'>Except as otherwise provided in section 2 of this act, fine </span></span>art
for public display; and</p>

<p class="SectBody">    (k) Computers and related equipment donated for use
in schools in this state.</p>

<p class="SectBody">    2.  The Nevada tax commission may exempt from
taxation that personal property for which the annual taxes would be less than
the cost of collecting those taxes. If such an exemption is provided, the
Nevada tax commission <span class=Extension>shall annually determine the
average cost of collecting property taxes in this state which must be used in
determining the applicability of the exemption.</span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3199"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3199 (<a href="#Stats199920_CH594">CHAPTER 594, SB 521</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody">shall annually determine the average cost of collecting
property taxes in this state which must be used in determining the
applicability of the exemption.</p>

<p class="SectBody">    3.  A person claiming the exemption provided
for in paragraph (j) of subsection 1 shall <span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>, on<b>]</b></span></span>
<span class=newLang><span style='color:blue'>:</span></span></p>

<p class="SectBody">    <span class=newLang><span style='color:blue'>(a) On</span></span>
or before June 15 for the next ensuing fiscal year, file with the county
assessor an affidavit declaring that the fine art<span class=newLang><span
style='color:blue'> </span></span><span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>:</span></span></p>

<p class="SectBody"><span class=oldLang><span style='color:red'>    (a) Was
purchased in an arm’s length transaction for $25,000 or more, or has an
appraised value of $25,000 or more;</span></span></p>

<p class="SectBody"><span class=oldLang><span style='color:red'>    (b) Will
be on public display in a public or private art gallery, museum or other
building or area in this state for at least 20 hours per week during at least
35 weeks of the year for which the exemption is claimed; and</span></span></p>

<p class="SectBody"><span class=oldLang><span style='color:red'>    (c) Will
be available for educational purposes.<b>]</b></span></span><span
class=newLang><span style='color:blue'> will, during that ensuing fiscal year,
meet all the criteria set forth in paragraph (b) of subsection 5; and</span></span></p>

<p class="SectBody">    <span class=newLang><span style='color:blue'>(b) During
any fiscal year in which he claims the exemption, make available for
educational purposes and not for resale, upon written request and without
charge to any public school as defined in NRS 385.007, private school as
defined in NRS 394.103 and parent of a child who receives instruction in a home
pursuant to NRS 392.070, one copy of a poster depicting the fine art that the
facility has on public display if such a poster is available for purchase by
the public at the time of the request.</span></span></p>

<p class="SectBody">    4.  To qualify for the exemption provided in
paragraph (k) of subsection 1, a taxpayer must donate the property through a
foundation or organization, not for profit, that accepts such property for use
in schools in this state. The foundation or organization shall issue a voucher
identifying each item of property donated. To obtain the benefit of the
exemption, the taxpayer must apply to the county assessor and tender the
voucher. The county assessor shall compute the assessed value of the property
for the year in which the donation was made using the original cost and the
year of acquisition. The county assessor shall allow a credit of that amount
against the personal property assessment for the year following the donation.</p>

<p class="SectBody">    5.  As used in this section:</p>

<p class="SectBody">    (a) “Boat” includes any vessel or other watercraft,
other than a seaplane, used or capable of being used as a means of
transportation on the water.</p>

<p class="SectBody">    (b) “Fine art for public display” <span
class=newLang><span style='color:blue'>:</span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>(1) Except
as otherwise provided in subparagraph (2), </span></span>means a work of art
which:</p>

<p class="SectBody">      <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>(1)<b>]</b></span></span> <span class=newLang><span
style='color:blue'>(I)</span></span> Is an original painting in oil,
mineral, water colors, vitreous enamel, pastel or other medium, an original
mosaic, drawing or sketch, an original sculpture of clay, textiles, fiber,
wood, metal, plastic, glass or a similar material, an original work of mixed
media or a lithograph;</p>

<p class="SectBody">      <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>(2)<b>]</b></span></span> <span class=newLang><span
style='color:blue'>(II)</span></span> Was purchased in an arm’s length
transaction for $25,000 or more, or has an appraised value of $25,000 or more;</p>

<p class="SectBody">      <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>(3)<b>]</b></span></span> <span class=newLang><span
style='color:blue'>(III)</span></span> Is on public display in a public
or private art gallery, museum or other building or area in this state for at
least 20 hours per week during at least 35 weeks of each year for which the
exemption is claimed<span class=newLang><span style='color:blue'> </span></span><span
class=oldLang><b><span style='color:red'>[</span></b><span style='color:red'>;<b>]</b></span></span>
<span class=newLang><span style='color:blue'>or, if the facility displaying the
fine art disposes of it before the end of that year, during at least two-thirds
of the full weeks during which the facility had possession of it, or if the
gallery, museum or other building or area in </span></span><span
class=Extension>which the fine art will be displayed will not be opened until
after the beginning of the fiscal year for which the exemption is claimed,
these display requirements must instead be met for the first full fiscal year
after the date of opening, and the date of opening must not be later than 2
years after the purchase of the fine art being displayed; and</span></p>

<span class=newLang><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:blue;font-weight:normal'><br clear=all style='page-break-before:always'>
</span></span>

<p class="StatsPageBreak"><a name="Stats199920page3200"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3200 (<a href="#Stats199920_CH594">CHAPTER 594, SB 521</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><span class=newLang><span style='color:blue'>which the fine
art will be displayed will not be opened until after the beginning of the
fiscal year for which the exemption is claimed, these display requirements must
instead be met for the first full fiscal year after the date of opening, and
the date of opening must not be later than 2 years after the purchase of the
fine art being displayed; </span></span>and</p>

<p class="SectBody">      <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>(4)<b>]</b></span></span> <span class=newLang><span
style='color:blue'>(IV)</span></span> Is<span class=newLang><span
style='color:blue'> on display in a facility that is</span></span> available
for <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>educational purposes.<b>]</b></span></span><span
class=newLang><span style='color:blue'> group tours by pupils or students for
at least 5 hours on at least 60 days of each full year for which the exemption
is claimed, during which the facility in which it is displayed is open, by
prior appointment and at reasonable times, without charge; and</span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>(2) Does
not include:</span></span></p>

<p class="SectBody">         <span class=newLang><span style='color:blue'>(I) A
work of fine art that is a fixture or an improvement to real property;</span></span></p>

<p class="SectBody">         <span class=newLang><span style='color:blue'>(II) A
work of fine art that constitutes a copy of an original work of fine art,
unless the work is a lithograph that is a limited edition and that is signed
and numbered by the artist;</span></span></p>

<p class="SectBody">         <span class=newLang><span style='color:blue'>(III) Products
of filmmaking or photography, including, without limitation, motion pictures;</span></span></p>

<p class="SectBody">         <span class=newLang><span style='color:blue'>(IV) Literary
works;</span></span></p>

<p class="SectBody">         <span class=newLang><span style='color:blue'>(V) Property
used in the performing arts, including, without limitation, scenery or props
for a stage; or</span></span></p>

<p class="SectBody">         <span class=newLang><span style='color:blue'>(VI) Property
that was created for a functional use other than, or in addition to, its
aesthetic qualities, including, without limitation, a classic or custom-built
automobile or boat, a sign that advertises a business, and custom or antique
furniture, lamps, chandeliers, jewelry, mirrors, doors or windows.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) “Personal
property held for sale by a merchant” includes property that:</span></span></p>

<p class="SectBody">             <span class=newLang><span style='color:blue'>(1) Meets
the requirements of sub-subparagraphs (I) and (II) of subparagraph (1) of
paragraph (b);</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>             (2) Is
made available for sale within 2 years after it is acquired; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>             (3) Is
made available for viewing by the public or prospective purchasers, or both,
within 2 years after it is acquired, whether or not a fee is charged for
viewing it and whether or not it is also used for purposes other than viewing.</span></span></p>

<p class="SectBody">    <span class=newLang><span style='color:blue'>(d) “Public
display” means the display of a work of fine art where members of the public
have access to the work of fine art for viewing during publicly advertised
hours. The term does not include the display of a work of fine art in an area
where the public does not generally have access, including, without limitation,
a private office, hallway or meeting room of a business, a room of a business
used for private lodging and a private residence.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    (e) “Pupil”
means a person who:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (1) Is
enrolled for the current academic year in a public school as defined in NRS
385.007 or a private school as defined in NRS 394.103; or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (2) Receives
instruction in a home and is excused from compulsory attendance pursuant to NRS
392.070.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    (f) “Student”
means a person who is enrolled for the current academic year in:</span></span></p>

<span class=newLang><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:blue;font-weight:normal'><br clear=all style='page-break-before:always'>
</span></span>

<p class="StatsPageBreak"><a name="Stats199920page3201"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3201 (<a href="#Stats199920_CH594">CHAPTER 594, SB 521</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (1) A
community college or university; or </span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>             (2) A
licensed postsecondary educational institution as defined in NRS 394.099 and a
course concerning fine art.</span></span></p>

<p class="SectBody"><b>      Sec. 5.  NRS 361.068</b> is hereby
amended to read as follows:</p>

<p class="SectBody">    361.068<span class=Empty>  </span>1.  The
following personal property is exempt from taxation:</p>

<p class="SectBody">    (a) Personal property held for sale by a merchant;</p>

<p class="SectBody">    (b) Personal property held for sale by a
manufacturer;</p>

<p class="SectBody">    (c) Raw materials and components held by a
manufacturer for manufacture into products, and supplies to be consumed in the
process of manufacture;</p>

<p class="SectBody">    (d) Tangible personal property purchased by a
business which will be consumed during the operation of the business;</p>

<p class="SectBody">    (e) Livestock;</p>

<p class="SectBody">    (f) Colonies of bees;</p>

<p class="SectBody">    (g) Pipe and other agricultural equipment used to
convey water for the irrigation of legal crops;</p>

<p class="SectBody">    (h) All boats;</p>

<p class="SectBody">    (i) Slide-in campers and camper shells; and</p>

<p class="SectBody">    (j) <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>Fine<b>]</b></span></span> <span class=newLang><span
style='color:blue'>Except as otherwise provided in section 2 of this act, fine </span></span>art
for public display.</p>

<p class="SectBody">    2.  The Nevada tax commission may exempt from
taxation that personal property for which the annual taxes would be less than
the cost of collecting those taxes. If such an exemption is provided, the
Nevada tax commission shall annually determine the average cost of collecting
property taxes in this state which must be used in determining the applicability
of the exemption.</p>

<p class="SectBody">    3.  A person claiming the exemption provided
for in paragraph (j) of subsection 1 shall <span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>, on<b>]</b></span></span>
<span class=newLang><span style='color:blue'>:</span></span></p>

<p class="SectBody">    <span class=newLang><span style='color:blue'>(a) On</span></span>
or before June 15 for the next ensuing fiscal year, file with the county
assessor an affidavit declaring that the fine art<span class=newLang><span
style='color:blue'> </span></span><span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>:</span></span></p>

<p class="SectBody"><span class=oldLang><span style='color:red'>    (a) Was
purchased in an arm’s length transaction for $25,000 or more, or has an
appraised value of $25,000 or more;</span></span></p>

<p class="SectBody"><span class=oldLang><span style='color:red'>    (b) Will
be on public display in a public or private art gallery, museum or other
building or area in this state for at least 20 hours per week during at least
35 weeks of the year for which the exemption is claimed; and</span></span></p>

<p class="SectBody"><span class=oldLang><span style='color:red'>    (c) Will
be available for educational purposes.<b>]</b></span></span><span
class=newLang><span style='color:blue'> will, during that ensuing fiscal year,
meet all the criteria set forth in paragraph (b) of subsection 4; and</span></span></p>

<p class="SectBody">    <span class=newLang><span style='color:blue'>(b) During
any fiscal year in which he claims the exemption, make available for
educational purposes and not for resale, upon written request and without
charge to any public school as defined in NRS 385.007, private school as
defined in NRS 394.103 and parent of a child who receives instruction in a home
pursuant to NRS 392.070, one copy of a poster depicting the fine art that the
facility has on public display if such a poster is available for purchase by
the public at the time of the request.</span></span></p>

<p class="SectBody">    4.  As used in this section:</p>

<p class="SectBody">    (a) “Boat” includes any vessel or other watercraft,
other than a seaplane, used or capable of being used as a means of
transportation on the water.</p>

<p class="SectBody">    (b) “Fine art for public display” <span
class=newLang><span style='color:blue'>:</span></span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3202"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3202 (<a href="#Stats199920_CH594">CHAPTER 594, SB 521</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>(1) Except
as otherwise provided in subparagraph (2), </span></span>means a work of art
which:</p>

<p class="SectBody">      <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>(1)<b>]</b></span></span> <span class=newLang><span
style='color:blue'>(I)</span></span> Is an original painting in oil,
mineral, water colors, vitreous enamel, pastel or other medium, an original
mosaic, drawing or sketch, an original sculpture of clay, textiles, fiber,
wood, metal, plastic, glass or a similar material, an original work of mixed
media or a lithograph;</p>

<p class="SectBody">      <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>(2)<b>]</b></span></span> <span class=newLang><span
style='color:blue'>(II)</span></span> Was purchased in an arm’s length
transaction for $25,000 or more, or has an appraised value of $25,000 or more;</p>

<p class="SectBody">      <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>(3)<b>]</b></span></span> <span class=newLang><span
style='color:blue'>(III)</span></span> Is on public display in a public
or private art gallery, museum or other building or area in this state for at
least 20 hours per week during at least 35 weeks of each year for which the
exemption is claimed<span class=newLang><span style='color:blue'> </span></span><span
class=oldLang><b><span style='color:red'>[</span></b><span style='color:red'>;<b>]</b></span></span>
<span class=newLang><span style='color:blue'>or, if the facility displaying the
fine art disposes of it before the end of that year, during at least two-thirds
of the full weeks during which the facility had possession of it, or if the gallery,
museum or other building or area in which the fine art will be displayed will
not be opened until after the beginning of the fiscal year for which the
exemption is claimed, these display requirements must be met for the first full
fiscal year after the date of opening, and the date of opening must not be
later than 2 years after the purchase of the fine art being displayed; </span></span>and</p>

<p class="SectBody">      <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>(4)<b>]</b></span></span> <span class=newLang><span
style='color:blue'>(IV)</span></span> Is<span class=newLang><span
style='color:blue'> on display in a facility that is </span></span>available
for <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>educational purposes.<b>]</b></span></span><span
class=newLang><span style='color:blue'> group tours by pupils or students for at
least 5 hours on at least 60 days of each full year for which the exemption is
claimed, during which the facility in which it is displayed is open, by prior
appointment and at reasonable times, without charge; and</span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>(2) Does
not include:</span></span></p>

<p class="SectBody">         <span class=newLang><span style='color:blue'>(I) A
work of fine art that is a fixture or an improvement to real property;</span></span></p>

<p class="SectBody">         <span class=newLang><span style='color:blue'>(II) A
work of fine art that constitutes a copy of an original work of fine art,
unless the work is a lithograph that is a limited edition and that is signed
and numbered by the artist;</span></span></p>

<p class="SectBody">         <span class=newLang><span style='color:blue'>(III) Products
of filmmaking or photography, including, without limitation, motion pictures;</span></span></p>

<p class="SectBody">         <span class=newLang><span style='color:blue'>(IV) Literary
works;</span></span></p>

<p class="SectBody">         <span class=newLang><span style='color:blue'>(V) Property
used in the performing arts, including, without limitation, scenery or props
for a stage; or</span></span></p>

<p class="SectBody">         <span class=newLang><span style='color:blue'>(VI) Property
that was created for a functional use other than, or in addition to, its
aesthetic qualities, including, without limitation, a classic or custom-built
automobile or boat, a sign that advertises a business, and custom or antique
furniture, lamps, chandeliers, jewelry, mirrors, doors or windows.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) “Personal
property held for sale by a merchant” includes property that:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>             (1) Meets
the requirements of sub-subparagraphs (I) and (II) of subparagraph (1) of
paragraph (b);</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>             (2) Is
made available for sale within 2 years after it is acquired; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (3) Is
made available for viewing by the public or prospective purchasers, or both,
within 2 years after it is acquired, whether or not a fee is charged for
viewing it and whether or not it is also used for purposes other than viewing.</span></span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3203"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3203 (<a href="#Stats199920_CH594">CHAPTER 594, SB 521</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody">    <span class=newLang><span style='color:blue'>(d) “Public
display” means the display of a work of fine art where members of the public
have access to the work of fine art for viewing during publicly advertised
hours. The term does not include the display of a work of fine art in an area
where the public does not generally have access, including, without limitation,
a private office, hallway or meeting room of a business, a room of a business
used for private lodging and a private residence.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    (e) “Pupil”
means a person who:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (1) Is
enrolled for the current academic year in a public school as defined in NRS
385.007 or a private school as defined in NRS 394.103; or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (2) Receives
instruction in a home and is excused from compulsory attendance pursuant to NRS
392.070.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    (f) “Student”
means a person who is enrolled for the current academic year in:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (1) A
community college or university; or </span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (2) A
licensed postsecondary educational institution as defined in NRS 394.099 and a
course concerning fine art.</span></span></p>

<p class="SectBody"><b>      Sec. 6.  Chapter 374 of NRS</b> is
hereby amended by adding thereto a new section to read as follows:</p>

<p class="SectBody"><b>    <span class=newLang><span style='color:blue'>1.  A
taxpayer may collect an admission fee for the exhibition of fine art otherwise
exempt from taxation on its sale, storage, use or other consumption pursuant to
NRS 374.291 if the taxpayer offers to residents of the State of Nevada a
discount of 50 percent from any admission fee charged to nonresidents. The
discounted admission fee for residents must be offered at any time the
exhibition is open to the public and admission fees are being charged.</span></span></b></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>2.  If
a taxpayer collects a fee for the exhibition of fine art otherwise exempt from
taxation on its sale, storage, use or other consumption pursuant to NRS 374.291
and the fee is collected during the first full fiscal year after the purchase
of the fine art, the exemption pertaining to that fine art must be reduced by
the net revenue derived by the taxpayer for that first full fiscal year. The
exemption pertaining to fine art must not be reduced below zero, regardless of
the amount of the net revenue derived by the taxpayer for that first full
fiscal year.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  Any
tax due pursuant to this section must be paid with the first sales and use tax
return otherwise required to be filed by the taxpayer following the 15th day of
the fourth month after the end of the first full fiscal year following the
purchase of the fine art or, if no sales and use tax return is otherwise
required to be filed by the taxpayer, with a sales and use tax return filed
specifically for this purpose on or before the last day of the fourth month after
the end of the first full fiscal year following the purchase of the fine art.</span></span></p>

<p class="SectBody">    <span class=newLang><span style='color:blue'>4.  A
taxpayer who is required to pay a tax resulting from the operation of this
section may receive a credit against the tax for any donations made by the
taxpayer to the state arts council, the division of museums and history
dedicated trust fund established pursuant to NRS 381.0031, a museum that
provides exhibits specifically related to nature or a museum that provides
exhibits specifically related to children, if the taxpayer:</span></span></p>

<span class=newLang><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:blue;font-weight:normal'><br clear=all style='page-break-before:always'>
</span></span>

<p class="StatsPageBreak"><a name="Stats199920page3204"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3204 (<a href="#Stats199920_CH594">CHAPTER 594, SB 521</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    (a) Made
the donation before the date that either return required pursuant to subsection
3 is due; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    (b) Provides
the department documentation of the donation at the time that he files the
return required pursuant to subsection 3.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    5.  For
the purposes of this section:</span></span></p>

<p class="SectBody">    <span class=newLang><span style='color:blue'>(a) “Direct
costs of owning and exhibiting the fine art” does not include any allocation of
the general and administrative expense of a business or organization that
conducts activities in addition to the operation of the facility in which the
fine art is displayed, including, without limitation, an allocation of the
salary and benefits of a senior executive who is responsible for the oversight
of the facility in which the fine art is displayed and who has substantial
responsibilities related to the other activities of the business or
organization.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) “Net
revenue” means the amount of the fees collected for exhibiting the fine art
during the fiscal year less the following paid or made during the fiscal year:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>             (1) The
direct costs of owning and exhibiting the fine art; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>             (2) The
cost of educational programs associated with the taxpayer’s public display of
fine art, including the cost of meeting the requirements</span></span> <span
class=newLang><span style='color:blue'>of paragraph (d) of subsection 4 of NRS
374.291.</span></span></p>

<p class="SectBody"><b>      Sec. 7.  NRS 374.055</b> is hereby
amended to read as follows:</p>

<p class="SectBody">      374.055<span class=Empty>  </span>1.  “Retail
sale” or “sale at retail” means a sale for any purpose other than resale in the
regular course of business of tangible personal property. <span class=newLang><span
style='color:blue'>The terms do not include a sale of property that:</span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>(a) Meets
the requirements of subparagraphs (1) and (2) of paragraph (a) of subsection 4
of NRS 374.291;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) Is
made available for sale within 2 years after it is acquired; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    (c) Is
made available for viewing by the public or prospective purchasers, or both,
within 2 years after it is acquired, whether or not a fee is charged for
viewing it and whether or not it is also used for purposes other than viewing.</span></span></p>

<p class="SectBody">    2.  The delivery in a county of tangible
personal property by an owner or former owner thereof or by a factor, or agent
of such owner, former owner or factor, if the delivery is to a consumer or
person for redelivery to a consumer, pursuant to a retail sale made by a
retailer not engaged in business in the county, is a retail sale in the county
by the person making the delivery. He shall include the retail selling price of
the property in his gross receipts.</p>

<p class="SectBody"><b>      Sec. 8.  </b>(Deleted by
amendment.)</p>

<p class="SectBody"><b>      Sec. 9.  NRS 374.085</b> is hereby
amended to read as follows:</p>

<p class="SectBody">    374.085<span class=Empty>  </span>“Storage<span
class=newLang><span style='color:blue'> </span></span><span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>” and “use” do<b>]</b></span></span>
<span class=newLang><span style='color:blue'>, use or other consumption” does</span></span>
not include <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>the<b>]</b></span></span><span class=newLang><span
style='color:blue'> :</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    1.  The
</span></span>keeping, retaining or exercising any right or power over tangible
personal property for the purpose of subsequently transporting it outside the
state for use thereafter solely outside the state, or for the purpose of being
processed, fabricated or manufactured into, attached to, or incorporated into,
other tangible personal property to be transported outside the state and
thereafter used solely outside the state<span class=newLang><span
style='color:blue'> </span></span><span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>.<b>]</b></span></span><span
class=newLang><span style='color:blue'> ; or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    2.  The
keeping, retaining or exercising any right or power over tangible property
that:</span></span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3205"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3205 (<a href="#Stats199920_CH594">CHAPTER 594, SB 521</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>(a) Meets
the requirements of subparagraphs (1) and (2) of paragraph (a) of subsection 4
of NRS 374.291;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) Is
made available for sale within 2 years after it is acquired; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    (c) Is
made available for viewing by the public or prospective purchasers, or both,
within 2 years after it is acquired, whether or not a fee is charged for
viewing it and whether or not it is also used for purposes other than viewing.</span></span></p>

<p class="SectBody"><b>      Sec. 10.  NRS 374.291</b> is
hereby amended to read as follows:</p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    </span></span>374.291  1.  <span
class=oldLang><b><span style='color:red'>[</span></b><span style='color:red'>There<b>]</b></span></span>
<span class=newLang><span style='color:blue'>Except as otherwise provided in
section 6 of this act, there </span></span>are exempted from the taxes imposed
by this chapter the gross receipts from the sales of, and the storage, use or
other consumption in a county of, works of fine art for public display.</p>

<p class="SectBody">    2.  <span class=newLang><span
style='color:blue'>In determining whether a payment made pursuant to a lease of
a work of fine art is exempt under subsection 1, the value for the purpose of
paragraph (b) of subsection 4 is the value of the work and not the value of
possession for the term of the lease, and the year described in paragraphs (c)
and (d) of subsection 4 is the first full calendar year after the payment is
made.</span></span></p>

<p class="SectBody">    <span class=newLang><span style='color:blue'>3.  During
the first full fiscal year following the purchase of fine art for which a
taxpayer receives the exemption provided in this section, make available, upon
written request and without charge to any public school as defined in NRS
385.007, private school as defined in NRS 394.103 and parent of a child who
receives instruction in a home pursuant to NRS 392.070, one copy of a poster
depicting the fine art that the facility has on public display and that the
facility makes available for purchase by the public at the time of the request.</span></span></p>

<p class="SectBody">    <span class=newLang><span style='color:blue'>4.  </span></span>As
used in this section <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>, “fine<b>]</b></span></span> <span class=newLang><span
style='color:blue'>:</span></span></p>

<p class="SectBody">    <span class=newLang><span style='color:blue'>(a) “Fine</span></span>
art for public display” <span class=newLang><span style='color:blue'>:</span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>(1) Except
as otherwise provided in subparagraph (2), </span></span>means a work of art
which:</p>

<p class="SectBody">    <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>(a)<b>]</b></span></span><span class=newLang><span
style='color:blue'> (I)</span></span> Is an original painting in
oil, mineral, water colors, vitreous enamel, pastel or other medium, an
original mosaic, drawing or sketch, an original sculpture of clay, textiles,
fiber, wood, metal, plastic, glass or a similar material, an original work of
mixed media or a lithograph;</p>

<p class="SectBody">    <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>(b)<b>]</b></span></span><span class=newLang><span
style='color:blue'> (II)</span></span> Is purchased in an arm’s
length transaction for $25,000 or more, or has an appraised value of $25,000 or
more;</p>

<p class="SectBody">    <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>(c)<b>]</b></span></span> <span class=newLang><span
style='color:blue'>(III)</span></span> Will be on public display in a
public or private art gallery, museum or other building or area in this state
for at least 20 hours per week during at least 35 weeks of the first full
calendar year after the date on which it is purchased <span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>;<b>]</b></span></span><span
class=newLang><span style='color:blue'> , or if the facility displaying the
fine art disposes of it before the end of that year, during at least two-thirds
of the full weeks during which the facility had possession of it, or if the gallery,
museum, or other building or area in which the fine art will be displayed will
not be opened until after the beginning of the first full calendar year after
the date on which the fine art is purchased, these display requirements must
instead be met for the first full fiscal year after the date of opening, and
the date of opening must not be later than 2 years after the purchase of the
fine art being displayed;</span></span> and</p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3206"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3206 (<a href="#Stats199920_CH594">CHAPTER 594, SB 521</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody">    <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>(d)<b>]</b></span></span> <span class=newLang><span
style='color:blue'>(IV)</span></span> Will be<span class=newLang><span
style='color:blue'> on display in a facility that is</span></span> available
for <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>educational purposes.<b>]</b></span></span><span
class=newLang><span style='color:blue'> group tours by pupils or students for
at least 5 hours on at least 60 days of the first full fiscal year after the
purchase of the fine art, during which the facility in which it is displayed is
open, by prior appointment and at reasonable times, without charge; and</span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>(2) Does
not include:</span></span></p>

<p class="SectBody">         <span class=newLang><span style='color:blue'>(I) A
work of fine art that is a fixture or an improvement to real property;</span></span></p>

<p class="SectBody">         <span class=newLang><span style='color:blue'>(II) Materials
purchased by an artist for consumption in the production of a work of art that
is to be a fixture or an improvement to real property;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>         (III) A
work of fine art that constitutes a copy of an original work of fine art,
unless the work is a lithograph that is a limited edition and that is signed
and numbered by the artist;</span></span></p>

<p class="SectBody">         <span class=newLang><span style='color:blue'>(IV) Products
of filmmaking or photography, including, without limitation, motion pictures;</span></span></p>

<p class="SectBody">         <span class=newLang><span style='color:blue'>(V) Literary
works;</span></span></p>

<p class="SectBody">         <span class=newLang><span style='color:blue'>(VI) Property
used in the performing arts, including, without limitation, scenery or props
for a stage; or</span></span></p>

<p class="SectBody">         <span class=newLang><span style='color:blue'>(VII) Property
that was created for a functional use other than, or in addition to, its
aesthetic qualities, including, without limitation, a classic or custom-built
automobile or boat, a sign that advertises a business, and custom or antique
furniture, lamps, chandeliers, jewelry, mirrors, doors or windows.</span></span></p>

<p class="SectBody">    <span class=newLang><span style='color:blue'>(b) “Public
display” means the display of a work of fine art where members of the public
have access to the work of fine art for viewing during publicly advertised
hours. The term does not include the display of a work of fine art in an area
where the public does not generally have access, including, without limitation,
a private office, hallway or meeting room of a business, a room of a business
used for private lodging and a private residence.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    (c) “Pupil”
means a person who:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (1) Is
enrolled for the current academic year in a public school as defined in NRS
385.007 or a private school as defined in NRS 394.103; or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (2) Receives
instruction in a home and is excused from compulsory attendance pursuant to NRS
392.070.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    (d) “Student”
means a person who is enrolled for the current academic year in:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (1) A
community college or university; or </span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (2) A
licensed postsecondary educational institution as defined in NRS 394.099 and a
course concerning fine art.</span></span></p>

<p class="SectBody"><b>      Sec. 11.  </b>If a facility
containing a public or private art gallery, museum or other building or area
for exhibition was under development or construction on July 1, 1997, sections
1 and 2 of chapter 592, Statutes of Nevada 1997, at pages 2979 and 2980, apply
to works of art purchased before that date and displayed in the gallery, museum
or other building or area within 2 years after their purchase. In that case,
the required period of display is the later of the year for which the exemption
is claimed or the first full year after the gallery, museum or other area or
building is first opened for <span class=Extension>exhibition, and the
affidavit required by section 1 of chapter 592, Statutes of Nevada 1997, at
page 2979, must be filed on or before June 15 preceding the applicable year.</span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3207"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3207 (<a href="#Stats199920_CH594">CHAPTER 594, SB 521</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody">exhibition, and the affidavit required by section 1 of
chapter 592, Statutes of Nevada 1997, at page 2979, must be filed on or before
June 15 preceding the applicable year. As used in this section, “year” means
fiscal year for purposes of section 1 of chapter 592, Statutes of Nevada 1997,
and calendar year for purposes of section 2 of chapter 592, Statutes of Nevada
1997.</p>

<p class="SectBody"><b>      Sec. 12.  </b>1.  This
section and sections 1 to 4, inclusive, and 6 to 11, inclusive, of this act
become effective on July 1, 1999, and apply to sales, leases, dispositions,
keeping and retention of property, and to property held, before, on or after
that date except that the provisions of subsection 1 of sections 2 and 6 of
this act do not apply to require the taxpayer to have offered discounted
admission fees for residents before July 1, 1999.</p>

<p class="SectBody">      2.  Section 4 of this act expires by
limitation on June 30, 2003.</p>

<p class="SectBody">      3.  Section 5 of this act becomes effective
on July 1, 2003.</p>

<p class="SectBody" align=center style='text-align:center'>________</p>

<p class="SectBody" align=center style='text-align:center'> </p>

<p class="DocHeading"><a name="Stats199920_CH595"></a><span style='display:none;
font-weight:normal'>CHAPTER 595, AB 635</span></p>

<p class="SectBody" align=center style='text-align:center'>Assembly Bill No.
635–Committee on Commerce and Labor</p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.0pt'> </p>

<p class="statChapter">CHAPTER<span class=AdvanceChapter> 595</span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'> </span></p>

<p class="MsoNormal" style='margin-left:30.25pt;text-indent:-30.25pt;line-height:
8.0pt'><span style='font-size:8.0pt'>AN ACT relating to insurance; providing
for the regulation of captive insurers; establishing requirements for licensure
in this state as a captive insurer; establishing minimum required amounts of
capital and surplus that must be maintained by a captive insurer; providing for
a premium tax; exempting licensed captive insurers from certain taxes;
authorizing the commissioner of insurance to adopt regulations; prohibiting a
captive insurer from transacting insurance without a license; providing a
penalty; and providing other matters properly relating thereto.</span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'> </span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'>[Approved June 9, 1999]</span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'> </span></p>

<p class="Billupper" align=center style='margin-top:2.0pt;margin-right:.4in;
margin-bottom:0in;margin-left:.4in;margin-bottom:.0001pt;text-align:center;
text-indent:0in;line-height:8.5pt'><span style='font-size:8.0pt'>THE PEOPLE OF
THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, </span></p>

<p class="Billupper" align=center style='margin-top:2.0pt;margin-right:.4in;
margin-bottom:0in;margin-left:.4in;margin-bottom:.0001pt;text-align:center;
text-indent:0in;line-height:8.5pt'><span style='font-size:8.0pt'>DO ENACT AS
FOLLOWS:</span></p>

<p class="MsoNormal"> </p>

<p class="SectBody">      <b>Section 1.</b>  <b>Title 57 of NRS</b>
is hereby amended by adding thereto a new chapter to consist of the provisions
set forth as sections 2 to 40, inclusive, of this act.</p>

<p class="SectBody"><b>      Sec. 2. </b> <span class=newLang><span
style='color:blue'>As used in this chapter, unless the context otherwise
requires, the words and terms defined in sections 3 to 16, inclusive, of this
act have the meanings ascribed to them in those sections.</span></span></p>

<p class="SectBody"><b>      Sec. 3. </b> <span class=newLang><span
style='color:blue'>“Affiliated company” means a company in the same corporate
system as its parent or a member organization by virtue of common ownership,
control, operation or management.</span></span></p>

<p class="SectBody"><b>      Sec. 4. </b> <span class=newLang><span
style='color:blue'>“Agency captive insurer” means a captive insurer that is
owned by an insurance agency or brokerage and that only insures risks of
policies which are placed by or through the agency or brokerage.</span></span></p>

<p class="SectBody"><b>      Sec. 5. </b> <span class=newLang><span
style='color:blue'>“Association” means a legal entity consisting of two or more
corporations, partnerships, associations or other forms of business
organizations.</span></span></p>

<p class="SectBody"><b>      Sec. 6. </b> <span class=newLang><span
style='color:blue'>“Association captive insurer” means a captive insurer that
only insures risks of the member organizations of an association and the
affiliated companies of those members, including groups formed pursuant to the
Product Liability Risk Retention Act of 1981, as amended, 15 U.S.C. §§ 3901 et
seq.</span></span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3208"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3208 (<a href="#Stats199920_CH595">CHAPTER 595, AB 635</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><b>      Sec. 7. </b> <span class=newLang><span
style='color:blue'>“Captive insurer” means any pure captive insurer,
association captive insurer, agency captive insurer and rental captive insurer
licensed pursuant to this chapter.</span></span></p>

<p class="SectBody"><b>      Sec. 8. </b> <span class=newLang><span
style='color:blue'>“Commissioner” means the commissioner of insurance.</span></span></p>

<p class="SectBody"><b>      Sec. 9. </b> <span class=newLang><span
style='color:blue'>“Division” means the division of insurance of the department
of business and industry.</span></span></p>

<p class="SectBody"><b>      Sec. 10. </b> <span class=newLang><span
style='color:blue'>“Member organization” means any corporation, partnership,
association or other form of business organization that belongs to an
association.</span></span></p>

<p class="SectBody"><b>      Sec. 11. </b> <span class=newLang><span
style='color:blue'>“Mutual insurer” has the meaning ascribed to it in NRS
680A.030.</span></span></p>

<p class="SectBody"><b>      Sec. 12. </b> <span class=newLang><span
style='color:blue'>“Parent” means a corporation, partnership, association or
other form of business organization that directly or indirectly owns, controls
or holds with power to vote more than 50 percent of the outstanding voting
securities of a pure captive insurer.</span></span></p>

<p class="SectBody"><b>      Sec. 13. </b> <span class=newLang><span
style='color:blue'>“Pure captive insurer” means a captive insurer that only
insures risks of its parent and affiliated companies.</span></span></p>

<p class="SectBody"><b>      Sec. 14. </b> <span class=newLang><span
style='color:blue'>“Reciprocal insurer” has the meaning ascribed to it in NRS
680A.040.</span></span></p>

<p class="SectBody"><b>      Sec. 15. </b> <span class=newLang><span
style='color:blue'>“Rental captive insurer” means a captive insurer formed to
enter into contractual agreements with policyholders or associations to offer
some or all of the benefits of a program of captive insurance and that only
insures risks of such policyholders or associations.</span></span></p>

<p class="SectBody"><b>      Sec. 16. </b> <span class=newLang><span
style='color:blue'>“Stock insurer” has the meaning ascribed to it in NRS
680A.050.</span></span></p>

<p class="SectBody"><b>      Sec. 17. </b> <span class=newLang><span
style='color:blue'>1.  A captive insurer, when authorized by its
articles of association, articles of incorporation or charter, may apply to the
commissioner for a license to transact insurance.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  A
captive insurer shall not transact insurance in this state unless the captive
insurer first obtains a license from the commissioner.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  A
person who violates this section is subject to the provisions of, and shall be
punished pursuant to, the Unauthorized Insurers Act set forth in NRS 685B.020
to 685B.080, inclusive.</span></span></p>

<p class="SectBody"><b>      Sec. 18. </b> <span class=newLang><span
style='color:blue'>1.  Except as otherwise provided in this
section, a captive insurer licensed pursuant to this chapter may transact any
form of insurance described in NRS 681A.020 to 681A.080, inclusive.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  A
captive insurer licensed pursuant to this chapter:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Shall
not directly provide personal motor vehicle or homeowners’ insurance coverage,
or any component thereof.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) Shall
not accept or cede reinsurance, except as otherwise provided in section 34 of
this act.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) May
provide excess workers’ compensation insurance to its parent and affiliated
companies, unless otherwise prohibited by the laws of the state in which the
insurance is transacted.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (d) May
reinsure workers’ compensation insurance provided pursuant to a program of
self-funded insurance of its parent and affiliated companies if:</span></span></p>

<span class=newLang><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:blue;font-weight:normal'><br clear=all style='page-break-before:always'>
</span></span>

<p class="StatsPageBreak"><a name="Stats199920page3209"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3209 (<a href="#Stats199920_CH595">CHAPTER 595, AB 635</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><span class=newLang><span style='color:blue'>             (1) The
parent or affiliated company which is providing the self-funded insurance is
certified as a self-insured employer by the commissioner, if the insurance is
being transacted in this state; or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>             (2) The
program of self-funded insurance is otherwise qualified pursuant to, or in
compliance with, the laws of the state in which the insurance is transacted.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  A
pure captive insurer shall not insure any risks other than those of its parent
and affiliated companies.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      4.  An
association captive insurer shall not insure any risks other than those of the
member organizations of its association and the affiliated companies of the
member organizations.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      5.  An
agency captive insurer shall not insure any risks other than those of the
policies that are placed by or through the insurance agency or brokerage that
owns the captive insurer.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      6.  A
rental captive insurer shall not insure any risks other than those of the
policyholders or associations that have entered into agreements with the rental
captive insurer for the insurance of those risks. Such agreements must be in a
form which has been approved by the commissioner.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      7.  As
used in this section, “excess workers’ compensation insurance” means insurance
in excess of the specified per-incident or aggregate limit, if any, established
by:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) The
commissioner, if the insurance is being transacted in this state; or </span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) The
chief regulatory officer for insurance in the state in which the insurance is
being transacted.</span></span></p>

<p class="SectBody"><b>      Sec. 19. </b> <span class=newLang><span
style='color:blue'>1.  The board of directors of a captive insurer
shall meet at least one time each year in this state. The captive insurer
shall:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Maintain
its principal place of business in this state; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) Appoint
a resident of this state as a registered agent to accept service of process and
otherwise act on behalf of the captive insurer in this state. If the registered
agent cannot be located with reasonable diligence for the purpose of serving a
notice or demand on the captive insurer, the notice or demand may be served on
the secretary of state who shall be deemed to be the agent for the captive
insurer.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  A
captive insurer shall not transact insurance in this state unless:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) The
captive insurer has made adequate arrangements with a bank located in this
state that is authorized pursuant to state or federal law to transfer money;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) If
the captive insurer employs or has entered into a contract with a natural
person or business organization to manage the affairs of the captive insurer,
the natural person or business organization meets the standards of competence
and experience satisfactory to the commissioner;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) The
captive insurer employs or has entered into a contract with a qualified and
experienced certified public accountant or a firm of certified public
accountants that is nationally recognized;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (d) The
captive insurer employs or has entered into a contract with qualified,
experienced actuaries to perform reviews and evaluations of the operations of
the captive insurer; and</span></span></p>

<span class=newLang><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:blue;font-weight:normal'><br clear=all style='page-break-before:always'>
</span></span>

<p class="StatsPageBreak"><a name="Stats199920page3210"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3210 (<a href="#Stats199920_CH595">CHAPTER 595, AB 635</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (e) The
captive insurer employs or has entered into a contract with an attorney who is
licensed to practice law in this state and who meets the standards of
competence and experience in matters concerning the regulation of insurance in
this state established by the commissioner by regulation.</span></span></p>

<p class="SectBody"><b>      Sec. 20. </b> <span class=newLang><span
style='color:blue'>A captive insurer must apply to the commissioner for a
license. The application must include:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      1.  A
certified copy of the charter and bylaws of the captive insurer;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  A
pro forma financial statement for the captive insurer that has been prepared by
a certified public accountant;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  Any
other statements or documents that the commissioner requires to be filed with
the application;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      4.  Evidence
of:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) The
amount and liquidity of its assets relative to the risks to be assumed by the
captive insurer;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) The
expertise, experience and character of the persons who will manage the captive
insurer;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) The
overall soundness of the plan of operation of the captive insurer; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (d) The
adequacy of the programs of the captive insurer providing for loss prevention
by its parent or member organizations, as applicable; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      5.  Such
other information deemed to be relevant by the commissioner in ascertaining
whether the proposed captive insurer will be able to meet its policy
obligations.</span></span></p>

<p class="SectBody"><b>      Sec. 21. </b> <span class=newLang><span
style='color:blue'>An application by a captive insurer for licensure must
include a non-refundable application fee of $500. The commissioner may retain
legal, financial and examination services from outside the division to review
and make recommendations regarding the qualifying examination of the applicant.
The cost of those services must be paid by the applicant. The provisions of NRS
679B.230 to 679B.287, inclusive, apply to examinations, investigations and
processing conducted pursuant to this section.</span></span></p>

<p class="SectBody"><b>      Sec. 22. </b> <span class=newLang><span
style='color:blue'>1.  If the commissioner determines that the
documents and statements filed by the captive insurer satisfy the requirements
for licensure, the commissioner shall issue a license to the captive insurer.
The license is valid for 1 year after the date on which it is issued. The
license may be renewed upon the satisfaction of all requirements imposed by the
commissioner and payment of the renewal fee.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  A
captive insurer must pay a fee of $300 for the issuance of a license and an
annual fee of $300 for the renewal of a license.</span></span></p>

<p class="SectBody"><b>      Sec. 23. </b> <span class=newLang><span
style='color:blue'>A captive insurer shall include its business plan with its
application for the issuance and renewal of a license. If the captive insurer
makes any changes to the business plan, the captive insurer shall, as soon as
practicable, file a copy of the updated business plan with the commissioner.</span></span></p>

<p class="SectBody"><b>      Sec. 24. </b> <span class=newLang><span
style='color:blue'>A captive insurer shall not use or adopt a name that is the
same, deceptively similar or likely to be confused with or mistaken for any
other existing business name registered in this state.</span></span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3211"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3211 (<a href="#Stats199920_CH595">CHAPTER 595, AB 635</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><b>      Sec. 25. </b> <span class=newLang><span
style='color:blue'>1.  A captive insurer must not be issued a
license, and shall not hold a license, unless the captive insurer has and
maintains, in addition to any other capital required to be maintained pursuant
to subsection 3, unimpaired paid-in capital of:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) For
a pure captive insurer, not less than $100,000;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) For
an association captive insurer incorporated as a stock insurer, not less than
$200,000;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) For
an agency captive insurer, not less than $300,000; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (d) For
a rental captive insurer, not less than $400,000.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  Except
as otherwise provided by the commissioner pursuant to subsection 3, the capital
required to be maintained pursuant to this section must be in the form of cash
or an irrevocable letter of credit.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  The
commissioner may prescribe additional requirements relating to capital based on
the type, volume and nature of the insurance business that is transacted by the
captive insurer and requirements regarding which capital, if any, may be in the
form of an irrevocable letter of credit.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      4.  A
letter of credit used by a captive insurer as evidence of capital required
pursuant to this section must:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Be
issued by a bank chartered by this state or a bank that is a member of the
United States Federal Reserve System and has been approved by the commissioner;
and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) Include
a provision pursuant to which the letter of credit is automatically renewable
each year, unless the issuer gives written notice to the commissioner and the
captive insurer at least 90 days before the expiration date.</span></span></p>

<p class="SectBody"><b>      Sec. 26. </b> <span class=newLang><span
style='color:blue'>The commissioner may approve an ongoing plan for the payment
of dividends or other distributions by a captive insurer if, at the time of
each payment or distribution, the retention of capital by the captive insurer
is in excess of the amounts required by the commissioner. The commissioner
shall adopt by regulation:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      1.  A
specific amount that a captive insurer must have in excess capital for the
approval of an ongoing plan for the payment of dividends or other
distributions; or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  A
formula pursuant to which the specific amount of required excess capital may be
calculated.</span></span></p>

<p class="SectBody"><b>      Sec. 27. </b> <span class=newLang><span
style='color:blue'>1.  A captive insurer must not be issued a
license, and shall not hold a license, unless the captive insurer has and
maintains, in addition to any other surplus required to be maintained pursuant
to subsection 3, an unencumbered surplus of:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) For
a pure captive insurer, not less than $150,000;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) For
an association captive insurer incorporated as a stock insurer, not less than
$300,000;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) For
an agency captive insurer, not less than $300,000;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (d) For
a rental captive insurer, not less than $350,000; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (e) For
an association captive insurer incorporated as a mutual insurer or reciprocal
insurer, not less than $500,000.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  Except
as otherwise provided in subsection 3, the surplus required to be maintained
pursuant to this section must be in the form of cash or an irrevocable letter
of credit.</span></span></p>

<span class=newLang><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:blue;font-weight:normal'><br clear=all style='page-break-before:always'>
</span></span>

<p class="StatsPageBreak"><a name="Stats199920page3212"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3212 (<a href="#Stats199920_CH595">CHAPTER 595, AB 635</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  The
commissioner may prescribe additional requirements relating to surplus based on
the type, volume and nature of the insurance business that is transacted by the
captive insurer and requirements regarding which surplus, if any, may be in the
form of an irrevocable letter of credit.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      4.  A
letter of credit used by a captive insurer as evidence of required surplus
pursuant to this section must:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Be
issued by a bank chartered by this state or a bank that is a member of the
United States Federal Reserve System and has been approved by the commissioner;
and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) Include
a provision pursuant to which the letter of credit is automatically renewable
each year, unless the issuer gives written notice to the commissioner and the
captive insurer at least 90 days before the expiration date.</span></span></p>

<p class="SectBody"><b>      Sec. 28. </b> <span class=newLang><span
style='color:blue'>Except as otherwise provided in this section, a captive
insurer shall pay dividends out of, or make any other distributions from, its
capital or surplus, or both, in accordance with the provisions set forth in NRS
693A.140, 693A.150 and 693A.160. A captive insurer shall not pay dividends out
of, or make any other distribution with respect to, its capital or surplus, or
both, in violation of this section unless the captive insurer has obtained the
prior approval of the commissioner to make such a payment or distribution.</span></span></p>

<p class="SectBody"><b>      Sec. 29. </b> <span class=newLang><span
style='color:blue'>1.  A pure captive insurer, an agency captive
insurer or a rental captive insurer shall be incorporated as a stock insurer.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  An
association captive insurer shall be formed as a:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Stock
insurer;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) Mutual
insurer; or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) Reciprocal
insurer, except that its attorney-in-fact must be a corporation incorporated in
this state.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  A
captive insurer shall have not less than three incorporators, at least two of
whom must be residents of this state.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      4.  Before
the articles of incorporation of a captive insurer may be filed with the
secretary of state, the commissioner must approve the articles of
incorporation. In determining whether to grant such approval, the commissioner
shall consider:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) The
character, reputation, financial standing and purposes of the incorporators;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) The
character, reputation, financial responsibility, experience relating to
insurance and business qualifications of the officers and directors of the
captive insurer;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) The
competence of any person who, pursuant to a contract with the captive insurer,
will manage the affairs of the captive insurer;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (d) The
competence, reputation and experience of the legal counsel of the captive
insurer relating to the regulation of insurance;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (e) If
the captive insurer is a rental captive insurer, the competence, reputation and
experience of the underwriter of the captive insurer;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (f) The
business plan of the captive insurer; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (g) Such
other aspects of the captive insurer as the commissioner deems advisable.</span></span></p>

<span class=newLang><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:blue;font-weight:normal'><br clear=all style='page-break-before:always'>
</span></span>

<p class="StatsPageBreak"><a name="Stats199920page3213"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3213 (<a href="#Stats199920_CH595">CHAPTER 595, AB 635</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      5.  The
capital stock of a captive insurer incorporated as a stock insurer must be
issued at not less than par value.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      6.  At
least one of member of the board of directors of a captive insurer or of its
attorney-in-fact must be a resident of this state.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      7.  A
captive insurer formed pursuant to the provisions of this chapter has the
privileges of, and is subject to, the provisions of general corporation law set
forth in chapter 78 of NRS as well as the applicable provisions contained in
this chapter. If the provisions of this chapter conflict with the general
provisions in chapter 78 of NRS governing corporations, the provisions of this
chapter control. The provisions of chapter 693A of NRS relating to mergers,
consolidations, conversions, mutualizations and transfers of domicile to this
state apply to determine the procedures to be followed by captive insurers in
carrying out any of those transactions in accordance with this chapter.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      8.  The
articles of association, articles of incorporation, charter or bylaws of a
captive insurer must require that a quorum of the board of directors consists
of not less than one-third of the number of directors prescribed by the
articles of association, articles of incorporation, charter or bylaws.</span></span></p>

<p class="SectBody"><b>      Sec. 30. </b> <span class=newLang><span
style='color:blue'>1.  On or before March 1 of each year, a captive
insurer shall submit to the commissioner a report of its financial condition,
as prepared by a certified public accountant. A captive insurer shall use
generally accepted accounting principles and include any useful or necessary
modifications or adaptations thereof that have been approved or accepted by the
commissioner for the type of insurance and kinds of insurers to be reported
upon, and as supplemented by additional information required by the
commissioner. Except as otherwise provided in this section, each association
captive insurer, agency captive insurer or rental captive insurer shall file
its report in the form required by NRS 680A.265. The commissioner shall adopt
regulations designating the form in which pure captive insurers must report.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  A
pure captive insurer may apply, in writing, for authorization to file its
annual report based on a fiscal year that is consistent with the fiscal year of
the parent company of the pure captive insurer. If an alternative date is
granted:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) The
annual report is due not later than 60 days after the end of each such fiscal
year; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) The
pure captive insurer shall file on or before March 1 of each year such forms as
required by the commissioner by regulation to provide sufficient detail to
support its premium tax return filed pursuant to section 37 of this act.</span></span></p>

<p class="SectBody"><b>      Sec. 31. </b> <span class=newLang><span
style='color:blue'>1.  Except as otherwise provided in this
section, at least once every 3 years, and at such other times as the
commissioner determines necessary, the commissioner, or his designee, shall
visit each captive insurer and thoroughly inspect and examine the affairs of
the captive insurer to ascertain:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) The
financial condition of the captive insurer;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) The
ability of the captive insurer to fulfill its obligations; and</span></span></p>

<span class=newLang><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:blue;font-weight:normal'><br clear=all style='page-break-before:always'>
</span></span>

<p class="StatsPageBreak"><a name="Stats199920page3214"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3214 (<a href="#Stats199920_CH595">CHAPTER 595, AB 635</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) Whether
the captive insurer has complied with the provisions of this chapter and the
regulations adopted pursuant thereto.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  Upon
the application of a captive insurer, the commissioner may conduct the visits
required pursuant to subsection 1 every 5 years if the captive insurer conducts
comprehensive annual audits:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) The
scope of which is satisfactory to the commissioner; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) Which
are conducted by an independent auditor appointed by the commissioner.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  The
commissioner may contract to obtain legal, financial and examination services
from outside the division to conduct the examination and make recommendations
to the commissioner. The cost of the examination must be paid to the
commissioner by the captive insurer.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      4.  The
provisions of NRS 679B.230 to 679B.287, inclusive, apply to examinations
conducted pursuant to this section.</span></span></p>

<p class="SectBody"><b>      Sec. 32. </b> <span class=newLang><span
style='color:blue'>1.  The commissioner may suspend or revoke the
license of a captive insurer if, after an examination and hearing, the
commissioner determines that:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) The
captive insurer:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>             (1) Is
insolvent or has impaired its required capital or surplus;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>             (2) Has
failed to meet the requirement of sections 25 to 28, inclusive, of this act;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>             (3) Has
refused or failed to submit an annual report, as required by section 30 of this
act, or any other report or statement required by law or by order of the
commissioner;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>             (4) Has
failed to comply with the provisions of its charter or bylaws;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>             (5) Has
failed to submit to an examination required pursuant to section 31 of this act;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>             (6) Has
refused or failed to pay the cost of an examination required pursuant to
section 31 of this act;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>             (7) Has
used any method in transacting insurance pursuant to this chapter which is
detrimental to the operation of the captive insurer or would make its condition
unsound with respect to its policyholders or the general public; or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>             (8) Has
failed otherwise to comply with the laws of this state; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) The
suspension or revocation of the license of the captive insurer is in the best interest
of its policyholders or the general public.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  The
provisions of NRS 679B.310 to 679B.370, inclusive, apply to hearings conducted
pursuant to this section.</span></span></p>

<p class="SectBody"><b>      Sec. 33. </b> <span class=newLang><span
style='color:blue'>1.  Except as otherwise provided in this
section, an association captive insurer, an agency captive insurer or a rental
captive insurer shall comply with the requirements relating to investments set
forth in chapter 682A of NRS. Upon the request of the association captive
insurer, agency captive insurer or rental captive insurer, the commissioner may
approve the use of reliable, alternative methods of valuation and rating.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  A
pure captive insurer is not subject to any restrictions on allowable
investments, except that the commissioner may prohibit or limit any investment
that threatens the solvency or liquidity of the pure captive insurer.</span></span></p>

<span class=newLang><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:blue;font-weight:normal'><br clear=all style='page-break-before:always'>
</span></span>

<p class="StatsPageBreak"><a name="Stats199920page3215"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3215 (<a href="#Stats199920_CH595">CHAPTER 595, AB 635</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  A
pure captive insurer may make a loan to its parent or affiliated company if the
loan:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Is
first approved in writing by the commissioner;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) Is
evidenced by a note that is in a form that is approved by the commissioner; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) Does
not include any money that has been set aside as capital or surplus as required
by subsection 1 of section 25 of this act or subsection 1 of section 27 of this
act.</span></span></p>

<p class="SectBody"><b>      Sec. 34. </b> <span class=newLang><span
style='color:blue'>1.  A captive insurer may provide reinsurance on
risks ceded by any other insurer.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  A
captive insurer may take credit for reserves on risks or portions of risks
ceded to a reinsurer that is in compliance with NRS 681A.140 to 681A.240,
inclusive. A captive insurer shall not take credit for reserves on risks or
portions of risks ceded to a reinsurer if the reinsurer is not in compliance
with NRS 681A.140 to 681A.240, inclusive.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  The
commissioner may authorize a captive insurer to take credit for reserves on
risks or portions of risks ceded to a pool, an exchange or an association
acting as a reinsurer. The commissioner may require such documents, financial
information or other evidence as he determines necessary to show that the pool,
exchange or association will be able to provide adequate security for its
financial obligations. The commissioner may deny authorization or impose any
limitations on the activities of a reinsurance pool, exchange or association
that, in his judgment, are necessary and proper to provide adequate security
for the ceding captive insurer and for the protection and benefit of the
general public.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      4.  For
the purposes of this chapter, insurance provided by a captive insurer of any
plan for workers’ compensation of its parent and affiliated companies which is
certified or otherwise qualified in the state in which the insurance is
provided as a self-insurance plan shall be deemed to be reinsurance.</span></span></p>

<p class="SectBody"><b>      Sec. 34.5. </b> <span
class=newLang><span style='color:blue'>Insurance provided by a captive insurer
in accordance with this chapter may not be used to satisfy the requirements set
forth in chapter 706 of NRS relating to the insurance required to be maintained
by vehicles subject to the jurisdiction of the transportation services
authority or taxicab authority, unless the transportation services authority or
taxicab authority, as appropriate, specifically approves the use of insurance
provided by a captive insurer for that purpose.</span></span></p>

<p class="SectBody"><b>      Sec. 35. </b> <span class=newLang><span
style='color:blue'>A captive insurer is not required to join a rating
organization.</span></span></p>

<p class="SectBody"><b>      Sec. 36. </b> <span class=newLang><span
style='color:blue'>A captive insurer shall not join or contribute financially
to any risk-sharing plan, risk pool or insurance insolvency guaranty fund in
this state. A captive insurer or its insured, its parent or an affiliated
company, or any member organization of its association shall not receive any
benefit from such a plan, pool or fund for claims arising out of the operations
of the captive insurer.</span></span></p>

<p class="SectBody"><b>      Sec. 37. </b> <span class=newLang><span
style='color:blue'>1.  Except as otherwise provided in this
section, a captive insurer shall pay to the division, not later than March 1 of
each year, a tax at the rate of:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Two-fifths
of 1 percent on the first $20,000,000 of its net direct premiums;</span></span></p>

<span class=newLang><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:blue;font-weight:normal'><br clear=all style='page-break-before:always'>
</span></span>

<p class="StatsPageBreak"><a name="Stats199920page3216"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3216 (<a href="#Stats199920_CH595">CHAPTER 595, AB 635</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) One-fifth
of 1 percent on the next $20,000,000 of its net direct premiums; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) Seventy-five
thousandths of 1 percent on each additional dollar of its net direct premiums.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  Except
as otherwise provided in this section, a captive insurer shall pay to the
division, not later than March 1 of each year, a tax at a rate of:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Two
hundred twenty-five thousandths of 1 percent on the first $20,000,000 of revenue
from assumed reinsurance premiums;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) One
hundred fifty thousandths of 1 percent on the next $20,000,000 of revenue from
assumed reinsurance premiums; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) Twenty-five
thousandths of 1 percent on each additional dollar of revenue from assumed
reinsurance premiums.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>The tax on
reinsurance premiums pursuant to this subsection must not be levied on premiums
for risks or portions of risks which are subject to taxation on a direct basis
pursuant to subsection 1. A captive insurer is not required to pay any
reinsurance premium tax pursuant to this subsection on revenue related to the
receipt of assets by the captive insurer in exchange for the assumption of loss
reserves and other liabilities of another insurer that is under common
ownership and control with the captive insurer, if the transaction is part of a
plan to discontinue the operation of the other insurer and the intent of the
parties to the transaction is to renew or maintain such business with the
captive insurer.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  If
the sum of the taxes to be paid by a captive insurer calculated pursuant to
subsections 1 and 2 is less than $5,000 in any given year, the captive insurer
shall pay a tax of $5,000 for that year.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      4.  Two
or more captive insurers under common ownership and control must be taxed as if
they were a single captive insurer.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      5.  Notwithstanding
any specific statute to the contrary and except as otherwise provided in this
subsection, the tax provided for by this section constitutes all the taxes
collectible pursuant to the laws of this state from a captive insurer, and no
occupation tax or other taxes may be levied or collected from a captive insurer
by this state or by any county, city or municipality within this state, except
for ad valorem taxes on real or personal property located in this state used in
the production of income by the captive insurer.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      6.  Ten
percent of the revenues collected from the tax imposed pursuant to this section
must be deposited with the state treasurer for credit to the account for the
regulation and supervision of captive insurers created pursuant to section 38
of this act. The remaining 90 percent of the revenues collected must be
deposited with the state treasurer for credit to the state general fund.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      7.  As
used in this section, unless the context otherwise requires:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) “Common
ownership and control” means:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>             (1) In
the case of a stock insurer, the direct or indirect ownership of 80 percent or
more of the outstanding voting stock of two or more corporations by the same
member or members.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>             (2) In
the case of a mutual insurer, the direct or indirect ownership of 80 percent or
more of the surplus and the voting power of two or more corporations by the
same member or members.</span></span></p>

<span class=newLang><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:blue;font-weight:normal'><br clear=all style='page-break-before:always'>
</span></span>

<p class="StatsPageBreak"><a name="Stats199920page3217"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3217 (<a href="#Stats199920_CH595">CHAPTER 595, AB 635</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) “Net
direct premiums” means the direct premiums collected or contracted for on
policies or contracts of insurance written by a captive insurer during the
preceding calendar year, less the amounts paid to policyholders as return
premiums, including dividends on unabsorbed premiums or premium deposits
returned or credited to policyholders.</span></span></p>

<p class="SectBody"><b>      Sec. 38. </b> <span class=newLang><span
style='color:blue'>1.  There is hereby created in the state general
fund an account for the regulation and supervision of captive insurers. Money
in the account must be used only to carry out the provisions of this chapter.
Except as otherwise provided in section 37 of this act, all fees and
assessments received by the commissioner or division pursuant to this chapter
must be credited to the account. Not more than 2 percent of the tax collected
and deposited in the account pursuant to section 37 of this act, may, upon application
by the division or an agency for economic development to, and with the approval
of, the interim finance committee, be transferred to an agency for economic
development to be used by that agency to promote the industry of captive
insurance in this state.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  Except
as otherwise provided in this section, all payments from the account for the
maintenance of staff and associated expenses, including contractual services,
as necessary, must be disbursed from the state treasury only upon warrants
issued by the state controller, after receipt of proper documentation of the
services rendered and expenses incurred.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  At
the end of each fiscal year, that portion of the balance in the account which
exceeds $100,000 must be transferred to the state general fund.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      4.  The
state controller may anticipate receipts to the account and issue warrants
based thereon.</span></span></p>

<p class="SectBody"><b>      Sec. 39. </b> <span class=newLang><span
style='color:blue'>1.  The terms and conditions set forth in
chapter 696B of NRS pertaining to insurance reorganization, receiverships and
injunctions apply to captive insurers incorporated pursuant to this chapter.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  An
agency captive insurer, a rental captive insurer and an association captive
insurer are subject to those provisions of chapter 686A of NRS which are
applicable to insurers.</span></span></p>

<p class="SectBody"><b>      Sec. 40. </b> <span class=newLang><span
style='color:blue'>The commissioner may establish such regulations as are
necessary to carry out the provisions of the chapter.</span></span></p>

<p class="SectBody"><b>      Sec. 41.  NRS 679A.160</b> is
hereby amended to read as follows:</p>

<p class="SectBody">      679A.160<span class=Empty>  </span>Except
as otherwise provided by specific statute, no provision of this code applies
to:</p>

<p class="SectBody">      1.  Fraternal benefit societies, as
identified in chapter 695A of NRS, except as stated in chapter 695A of NRS.</p>

<p class="SectBody">      2.  Hospital, medical or dental service
corporations, as identified in chapter 695B of NRS, except as stated in chapter
695B of NRS.</p>

<p class="SectBody">      3.  Motor clubs, as identified in chapter
696A of NRS, except as stated in chapter 696A of NRS.</p>

<p class="SectBody">      4.  Bail agents, as identified in chapter
697 of NRS, except as stated in NRS 680B.025 to 680B.039, inclusive, and
chapter 697 of NRS.</p>

<p class="SectBody">      5.  Risk retention groups, as identified in
chapter 695E of NRS, except as stated in chapter 695E of NRS.</p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3218"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3218 (<a href="#Stats199920_CH595">CHAPTER 595, AB 635</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody">    6.  <span class=newLang><span
style='color:blue'>Captive insurers, as identified in sections 2 to 40,
inclusive, of this act, with respect to their activities as captive insurers,
except as stated in sections 2 to 40, inclusive, of this act.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      7.  </span></span>Health
and welfare plans arising out of collective bargaining under chapter 288 of
NRS, except that the commissioner may review the plan to ensure that the
benefits are reasonable in relation to the premiums and that the fund is
financially sound.</p>

<p class="SectBody"><b>      Sec. 42.  </b>The amendatory
provisions of this act do not apply to offenses committed before October 1,
1999.</p>

<p class="SectBody"><b>      Sec. 43.  </b>This act becomes
effective upon passage and approval for the purpose of adopting regulations to
carry out the provisions of this act, and on October 1, 1999, for all other
purposes.</p>

<p class="SectBody" align=center style='text-align:center'>________</p>

<p class="SectBody" align=center style='text-align:center'> </p>

<p class="DocHeading"><a name="Stats199920_CH596"></a><span style='display:none;
font-weight:normal'>CHAPTER 596, AB 597</span></p>

<p class="SectBody" align=center style='text-align:center'>Assembly Bill No.
597–Committee on Ways and Means</p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.0pt'> </p>

<p class="statChapter">CHAPTER<span class=AdvanceChapter> 596</span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'> </span></p>

<p class="MsoNormal" style='margin-left:30.25pt;text-indent:-30.25pt;line-height:
8.0pt'><span style='font-size:8.0pt'>AN ACT relating to governmental
administration; providing for the revision of provisions governing the
construction and financing of school facilities; creating a fund to assist
school districts in financing capital improvements in certain circumstances;
revising the provisions relating to the period in which the board of trustees
of a school district may issue bonds without an election; imposing an
additional sales tax to pay the cost of extraordinary maintenance,
extraordinary repair and extraordinary improvement of school facilities in
certain circumstances; extending the duration and changing the duties of the
state planning commission for the new construction, design, maintenance and
repair of school facilities; authorizing the issuance of general obligation
bonds to assist school districts in financing certain capital improvements; and
providing other matters properly relating thereto.</span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'> </span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'>[Approved June 9, 1999]</span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'> </span></p>

<p class="Billupper" align=center style='margin-top:2.0pt;margin-right:.4in;
margin-bottom:0in;margin-left:.4in;margin-bottom:.0001pt;text-align:center;
text-indent:0in;line-height:8.5pt'><span style='font-size:8.0pt'>THE PEOPLE OF
THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, </span></p>

<p class="Billupper" align=center style='margin-top:2.0pt;margin-right:.4in;
margin-bottom:0in;margin-left:.4in;margin-bottom:.0001pt;text-align:center;
text-indent:0in;line-height:8.5pt'><span style='font-size:8.0pt'>DO ENACT AS
FOLLOWS:</span></p>

<p class="MsoNormal"> </p>

<p class="SectBody">      <b>Section 1.</b>  <b>Chapter 387 of
NRS</b> is hereby amended by adding thereto the provisions set forth as
sections 2 and 3 of this act.</p>

<p class="SectBody"><b>      Sec. 2. </b> <span class=newLang><span
style='color:blue'>1.  The fund to assist school districts in
financing capital improvements is hereby created in the state treasury, to be
administered by the director of the department of administration. All money
received and held by the state treasurer for the purpose of the fund must be
deposited in the fund. </span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>2.  The
director of the department of administration may accept gifts and grants from
any source for deposit in the fund.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  The
money in the fund must be invested as the money in other state funds is
invested. All interest and income earned on the money in the fund must be
credited to the fund.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      4.  Claims
against the fund must be paid as other claims against the state are paid. </span></span></p>

<p class="SectBody"><b>      Sec. 3. </b> <span class=newLang><span
style='color:blue'>1.  The board of trustees of a school district
may apply to the director of the department of administration for a grant of
money from the fund created pursuant to section 2 of this act on a form
provided by the director of the department of administration. The application
must be </span></span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3219"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3219 (<a href="#Stats199920_CH596">CHAPTER 596, AB 597</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><span class=newLang><span style='color:blue'>accompanied by
proof that the following emergency conditions exist within the school district:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) The
assessed valuation of the taxable property in the county in which the school
district is located is declining and all other resources available to the
school district for financing capital improvements are diminishing;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) The
combined ad valorem tax rate of the county is at the limit imposed by NRS
361.453; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) At
least:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>             (1) One
building that is located on the grounds of a school within the school district
has been condemned;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>             (2) One
of the facilities that is located on the grounds of a school within the school
district is unsuitable for use as a result of:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>                   (I) Structural
defects;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>                   (II) Barriers
to accessibility; or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>                   (III) Hazards
to life, health or safety, including, without limitation, environmental hazards
and the operation of the facility in an unsafe manner; or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>             (3) One
of the facilities that is located on the grounds of a school within the school
district is in such a condition that the cost of renovating the facility would
exceed 40 percent of the cost of constructing a new facility.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  Upon
receipt of an application submitted pursuant to subsection 1, the director of
the department of administration shall forward the application to the:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Department
of taxation to determine whether or not:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>             (1) The
application satisfies the showing of proof required pursuant to paragraphs (a)
and (b) of subsection 1; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>             (2) The
board of county commissioners in the county in which the school district is
located has imposed a tax of more than one-eighth of 1 percent pursuant to NRS
377B.100; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) State
public works board to determine whether the application satisfies the showing
of proof required pursuant to paragraph (c) of subsection 1; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) Department
of education for informational purposes.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  The
department of taxation and the state public works board shall submit written
statements of their determinations pursuant to subsection 2 regarding an
application to the director of the department of administration. Upon receipt
of such statements, the director shall submit the application accompanied by
the written statements from the department of taxation and state public works
board to the state board of examiners for approval.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      4.  The
director of the department of administration shall make grants from the fund
created pursuant to section 2 of this act based upon the need of each school
district whose application is approved by the state board of examiners.</span></span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3220"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3220 (<a href="#Stats199920_CH596">CHAPTER 596, AB 597</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      5.  The
director of the department of administration shall adopt regulations that
prescribe the annual deadline for submission of an application to the director
of the department of administration by a school district that desires to
receive a grant of money from the fund.</span></span></p>

<p class="SectBody"><b>      Sec. 4.  NRS 350.020</b> is hereby
amended to read as follows:</p>

<p class="SectBody">    350.020<span class=Empty>  </span>1.  Except
as otherwise provided by subsections 3 and 4, if a municipality proposes to
issue or incur general obligations, the proposal must be submitted to the
electors of the municipality at a special election called for that purpose or
the next general municipal election or general state election.</p>

<p class="SectBody">    2.  Such a special election may be held:</p>

<p class="SectBody">    (a) At any time if the governing body of the
municipality determines, by a unanimous vote, that an emergency exists; or</p>

<p class="SectBody">    (b) On the first Tuesday after the first Monday in
June of an odd-numbered year.</p>

<p class="SectBody">The determination made by the governing body is conclusive
unless it is shown that the governing body acted with fraud or a gross abuse of
discretion. An action to challenge the determination made by the governing body
must be commenced within 15 days after the governing body’s determination is
final. As used in this subsection, “emergency” means any occurrence or
combination of occurrences which requires immediate action by the governing
body of the municipality to prevent or mitigate a substantial financial loss to
the municipality or to enable the governing body to provide an essential
service to the residents of the municipality.</p>

<p class="SectBody">    3.  If payment of a general obligation of the
municipality is additionally secured by a pledge of gross or net revenue of a
project to be financed by its issue, and the governing body determines, by an
affirmative vote of two-thirds of the members elected to the governing body,
that the pledged revenue will at least equal the amount required in each year
for the payment of interest and principal, without regard to any option
reserved by the municipality for early redemption, the municipality may, after
a public hearing, incur this general obligation without an election unless,
within 60 days after publication of a resolution of intent to issue the bonds,
a petition is presented to the governing body signed by not less than 5 percent
of the registered voters of the municipality who together with any corporate
petitioners own not less than 2 percent in assessed value of the taxable
property of the municipality. Any member elected to the governing body whose
authority to vote is limited by charter, statute or otherwise may vote on the
determination required to be made by the governing body pursuant to this
subsection. The determination by the governing body becomes conclusive on the
last day for filing the petition. For the purpose of this subsection, the
number of registered voters must be determined as of the close of registration
for the last preceding general election and assessed values must be determined
from the next preceding final assessment roll. An authorized corporate officer
may sign such a petition whether or not he is a registered voter. The
resolution of intent need not be published in full, but the publication must
include the amount of the obligation and the purpose for which it is to be
incurred. Notice of the public hearing must be published at least 10 days
before the day of the hearing. The publications must be made once in a
newspaper of general circulation in the municipality. When <span
class=Extension>published, the notice of the public hearing must be at least as
large as 5 inches high by 4 inches wide.</span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3221"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3221 (<a href="#Stats199920_CH596">CHAPTER 596, AB 597</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody">published, the notice of the public hearing must be at least
as large as 5 inches high by 4 inches wide.</p>

<p class="SectBody">    4.  <span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>Until June 30, 2008, the<b>]</b></span></span><span
class=newLang><span style='color:blue'> The</span></span> board of trustees of
a school district may issue general obligation bonds which are not expected to
result in an increase in the existing property tax levy for the payment of
bonds of the school district without holding an election for each issuance of
the bonds if the qualified electors approve a question submitted by the board
of trustees that authorizes issuance of bonds <span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>in such a manner.<b>]</b></span></span><span
class=newLang><span style='color:blue'> for a period of 10 years after the date
of approval by the voters.</span></span> If the question is approved, the board
of trustees of the school district may issue the bonds<span class=newLang><span
style='color:blue'> </span></span><span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>,<b>]</b></span></span><span
class=newLang><span style='color:blue'> for a period of 10 years after the date
of approval by the voters,</span></span> after obtaining the approval of the
debt management commission in the county in which the school district is
located and, in a county whose population is 100,000 or more, the approval of
the oversight panel for school facilities established pursuant to NRS 393.092
in that county, if the board of trustees of the school district finds that the
existing tax for debt service will at least equal the amount required to pay
the principal and interest on the outstanding general obligations of the school
district and the general obligations proposed to be issued. The finding made by
the board of trustees is conclusive in the absence of fraud or gross abuse of
discretion. As used in this subsection, “general obligations” does not include
medium-term obligations issued pursuant to NRS 350.085 to 350.095, inclusive. </p>

<p class="SectBody">    5.  At the time of issuance of bonds
authorized pursuant to subsection 4, the board of trustees shall establish a
reserve account in its debt service fund for payment of the outstanding bonds
of the school district. The reserve account must be established and maintained
in an amount at least equal to the lesser of the amount of principal and
interest payments due on all of the outstanding bonds of the school district in
the next fiscal year or 10 percent of the outstanding principal amount of the
outstanding bonds of the school district. If the amount in the reserve account
falls below the amount required by this subsection:</p>

<p class="SectBody">    (a) The board of trustees shall not issue
additional bonds pursuant to subsection 4 until the reserve account is restored
to the level required by this subsection; and</p>

<p class="SectBody">    (b) The board of trustees shall apply all of the
taxes levied by the school district for payment of bonds of the school district
that are not needed for payment of the principal and interest on bonds of the
school district in the current fiscal year to restore the reserve account to
the level required pursuant to this subsection. </p>

<p class="SectBody">    6.  A municipality may issue special or
medium-term obligations without an election.</p>

<p class="SectBody"><b>    Sec. 5.  Title 32 of NRS</b> is
hereby amended by adding thereto a new chapter to consist of the provisions set
forth as sections 6 and 7 of this act.</p>

<p class="SectBody"><b>      Sec. 6. </b> <span class=newLang><span
style='color:blue'>1.  A tax is hereby imposed on all retailers
within a county in which:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) The
board of county commissioners of the county has not imposed the maximum rate of
tax that it is authorized to impose pursuant to NRS 377B.100;</span></span></p>

<span class=newLang><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:blue;font-weight:normal'><br clear=all style='page-break-before:always'>
</span></span>

<p class="StatsPageBreak"><a name="Stats199920page3222"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3222 (<a href="#Stats199920_CH596">CHAPTER 596, AB 597</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) The
board of trustees of a county school district has applied for a grant from the
fund to assist school districts in financing capital improvements pursuant to
section 3 of this act; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    (c) The
state board of examiners has approved the application by the board of trustees.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  The
rate of the tax imposed by subsection 1 is the difference between:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) The
rate of tax that the board of county commissioners of the county has imposed
pursuant to NRS 377B.100; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) The
maximum rate of tax that the board of county commissioners of the county is
authorized to impose pursuant to NRS 377B.100,</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>but in no event
may the rate imposed by subsection 1 exceed one-eighth of 1 percent of the
gross receipts of any retailer from the sale of all tangible personal property
sold at retail, or stored, used or otherwise consumed, in the county.</span></span></p>

<p class="SectBody"><b>      Sec. 7. </b> <span class=newLang><span
style='color:blue'>1.  The collection of the tax imposed by section
6 of this act must be commenced on the first day of the first calendar quarter
that begins at least 30 days after the last condition in subsection 1 of
section 6 of this act is met.</span></span></p>

<p class="SectBody">    <span class=newLang><span style='color:blue'>2.  The
tax must be administered, collected and distributed in the manner set forth in
chapter 374 of NRS.</span></span></p>

<p class="SectBody">    <span class=newLang><span style='color:blue'>3.  The
board of trustees of the school district shall transfer the proceeds of the tax
imposed by section 6 of this act from the county school district fund to the
fund described in NRS 354.611 which has been established by the board of
trustees. The money deposited in the fund described in NRS 354.611 pursuant to
this subsection must be accounted for separately in that fund and must only be
expended by the board of trustees for the cost of the extraordinary
maintenance, extraordinary repair and extraordinary improvement of school
facilities within the county.</span></span></p>

<p class="SectBody"><b>      Sec. 8. </b> <b>Sections 23, 24,
25, 29 and 31 of chapter 516, Statutes of Nevada 1997, at pages 2467, 2468,
2469 and 2470</b>, respectively, are hereby amended to read as follows:</p>

<p class="MsoNormal" style='margin-left:.4in'>       <b>Sec. 23.  </b>1.  There
is hereby created the state planning commission for the new construction,
design, maintenance and repair of school facilities. The membership of the
commission consists of <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>nine<b>]</b></span></span> <span class=newLang><span
style='color:blue'>10</span></span> members selected as follows:</p>

<p class="MsoNormal" style='margin-left:.4in'>       (a) <span
class=oldLang><b><span style='color:red'>[</span></b><span style='color:red'>One
member<b>]</b></span></span><span class=newLang><span style='color:blue'> Two
members</span></span> of the <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>senate standing committee on finance,<b>]</b></span></span><span
class=newLang><span style='color:blue'> legislature</span></span> appointed by
the majority leader of the senate <span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>;</span></span></p>

<p class="MsoNormal" style='margin-left:.4in'><span class=oldLang><span
style='color:red'>       (b) One member<b>]</b></span></span><span
class=newLang><span style='color:blue'> , one of whom must represent a rural
area of this state;</span></span></p>

<p class="MsoNormal" style='margin-left:.4in'><span class=newLang><span
style='color:blue'>       (b) Two members </span></span>of the <span
class=oldLang><b><span style='color:red'>[</span></b><span style='color:red'>senate
standing committee on human resources and facilities,<b>]</b></span></span> <span
class=newLang><span style='color:blue'>legislature</span></span> appointed by
the <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>majority leader of the senate;</span></span></p>

<p class="MsoNormal" style='margin-left:.4in'><span class=oldLang><span
style='color:red'>       (c) One member of the assembly standing
committee on ways and means, appointed by the<b>]</b></span></span> speaker of
the assembly <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>;<b>]</b></span></span> <span class=newLang><span
style='color:blue'>, one of whom must represent a rural area of this state;</span></span></p>

<p class="MsoNormal" style='margin-left:.4in'><span class=newLang><span
style='color:blue'>       (c) The superintendent of public instruction;</span></span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3223"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3223 (<a href="#Stats199920_CH596">CHAPTER 596, AB 597</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="MsoNormal" style='margin-left:.4in'>       (d) One member <span
class=oldLang><b><span style='color:red'>[</span></b><span style='color:red'>of
the assembly standing committee on education, appointed by the speaker of the
assembly;</span></span></p>

<p class="MsoNormal" style='margin-left:.4in'><span class=oldLang><span
style='color:red'>       (e) The superintendent of public instruction; and</span></span></p>

<p class="MsoNormal" style='margin-left:.4in'><span class=oldLang><span
style='color:red'>       (f) Four members appointed by the governor, one
of whom must be a representative of the construction industry.<b>]</b></span></span>
<span class=newLang><span style='color:blue'>who is employed by a city and has
substantial experience in financial matters with respect to cities, appointed
by the Nevada League of Cities;</span></span></p>

<p class="MsoNormal" style='margin-left:.4in'><span class=newLang><span
style='color:blue'>       (e) One member who is employed by a county and
has substantial experience in financial matters with respect to counties,
appointed by the Nevada Association of Counties; </span></span></p>

<p class="MsoNormal" style='margin-left:.4in'><span class=newLang><span
style='color:blue'>       (f) One member who is employed by a school
district and has substantial experience in financial matters with respect to
school districts, appointed by the Nevada Association of School Boards; </span></span></p>

<p class="MsoNormal" style='margin-left:.4in'><span class=newLang><span
style='color:blue'>       (g) The director of the department of
administration in his capacity as chairman of the state public works board or
his designee; and</span></span></p>

<p class="MsoNormal" style='margin-left:.4in'><span class=newLang><span
style='color:blue'>       (h) The executive director of the department of
taxation or his designee.</span></span></p>

<p class="MsoNormal" style='margin-left:.4in'>       2.  The members
of the commission shall elect a chairman from among their members.</p>

<p class="MsoNormal" style='margin-left:.4in'>       3.  Except
during a regular or special session of the legislature, for each day or portion
of a day during which a member of the commission who is a legislator attends a
meeting of the commission or is otherwise engaged in the work of the
commission, he is entitled to receive the:</p>

<p class="MsoNormal" style='margin-left:.4in'>       (a) Compensation
provided for a majority of the members of the legislature during the first 60
days of the preceding regular session;</p>

<p class="MsoNormal" style='margin-left:.4in'>       (b) Per diem allowance
provided for state officers and employees generally; and</p>

<p class="MsoNormal" style='margin-left:.4in'>       (c) Travel expenses
pursuant to NRS 218.2207.</p>

<p class="MsoNormal" style='margin-left:.4in'>The compensation, per diem
allowances and travel expenses of the members of the commission who are
legislators must be paid from the legislative fund.</p>

<p class="MsoNormal" style='margin-left:.4in'>       4.  For each day
or portion of a day during which a member of the commission who is not a
legislator attends a meeting of the commission or is otherwise engaged in the
work of the commission, he is entitled to receive the per diem allowance and
travel expenses provided for state officers and employees generally, if the
legislature has made an appropriation or otherwise made available money for
this purpose.</p>

<p class="MsoNormal" style='margin-left:.4in'><b>       Sec. 24.  </b>1.  The
commission shall hold at least four meetings annually and may hold additional
meetings at the call of the chairman.</p>

<p class="MsoNormal" style='margin-left:.4in'>       2.  The
commission <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>, in consultation with the state public works board or its
designee shall:</span></span></p>

<p class="MsoNormal" style='margin-left:.4in'><span class=oldLang><span
style='color:red'>       (a) Analyze the projections for the enrollment
of pupils in each school district for the succeeding 10 years;</span></span></p>

<p class="MsoNormal" style='margin-left:.4in'><span class=oldLang><span
style='color:red'>       (b) Enter into a contract with a qualified,
independent consultant to conduct an evaluation of existing school facilities
in each school </span></span><span class=Extension>district in this state and
to provide additional assistance as requested by the commission;</span></p>

<span class=oldLang><b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:red'><br clear=all style='page-break-before:always'>
</span></b></span>

<p class="StatsPageBreak"><a name="Stats199920page3224"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3224 (<a href="#Stats199920_CH596">CHAPTER 596, AB 597</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="MsoNormal" style='margin-left:.4in'><span class=oldLang><span
style='color:red'>district in this state and to provide additional assistance
as requested by the commission;</span></span></p>

<p class="SectBody" style='margin-left:.4in;text-indent:0in'><span class=oldLang><span
style='color:red'>       (c) Based upon the evaluation, determine the
need, if any, for:</span></span></p>

<p class="SectBody" style='margin-left:.4in;text-indent:0in'><span class=oldLang><span
style='color:red'>             (1) The maintenance and repair of existing
school facilties in each school district, including, without limitation, the
costs of such maintenance or repair; and</span></span></p>

<p class="SectBody" style='margin-left:.4in;text-indent:0in'><span class=oldLang><span
style='color:red'>             (2) New school facilities in each school
district, including, without limitation, the cost of such new facilities;</span></span></p>

<p class="MsoNormal" style='margin-left:.4in'><span class=oldLang><span
style='color:red'>       (d) Determine whether the current system of
financing the costs of new construction, design, maintenance and repair of
school facilities is sufficient to:</span></span></p>

<p class="SectBody" style='margin-left:.4in;text-indent:0in'><span class=oldLang><span
style='color:red'>             (1) Pay the interest and redemption of
outstanding bonds of each school district; and </span></span></p>

<p class="SectBody" style='margin-left:.4in;text-indent:0in'><span class=oldLang><span
style='color:red'>             (2) Meet the needs for new school
facilities and the maintenance and repair of existing school facilities in each
school district;</span></span></p>

<p class="SectBody" style='margin-left:.4in;text-indent:0in'><span class=oldLang><span
style='color:red'>       (e) Analyze the efforts being made by each school
district relating to the financing of the costs of the construction, design,
maintenance and repair of school facilities;</span></span></p>

<p class="SectBody" style='margin-left:.4in;text-indent:0in'><span class=oldLang><span
style='color:red'>       (f) Consider the manner in which the boards of
trustees of school districts in this state may enter into agreements with the
University and Community College System of Nevada to share resources and
facilities;</span></span></p>

<p class="MsoNormal" style='margin-left:.4in'><span class=oldLang><span
style='color:red'>       (g) Determine the feasibility of adopting
uniform plans for the construction of new school facilities throughout this
state; and</span></span></p>

<p class="MsoNormal" style='margin-left:.4in'><span class=oldLang><span
style='color:red'>       (h) Identify any improvements that are necessary
to ensure that existing school facilities comply with all applicable
requirements of the Americans with Disabilities Act of 1990 (42 U.S.C. §§ 12101
to 12213, inclusive).</span></span></p>

<p class="MsoNormal" style='margin-left:.4in'><span class=oldLang><span
style='color:red'>       3.  On or before December 1, 1998, the
commission shall, based upon the evaluation of existing school facilities
conducted by the consultant pursuant to this section and the written
recommendations and other information submitted by each oversight panel for
school facilities and each board of trustees in a county whose population is less
than 100,000 pursuant to section 25 of this act, develop a plan by which each
school district in this state may adequately finance the costs of new
construction, design, maintenance and repair of school facilities in the school
district. The plan must provide for the efficient use of resources in the new
construction, design, maintenance and repair of school facilities.</span></span></p>

<p class="MsoNormal" style='margin-left:.4in'><span class=oldLang><span
style='color:red'>       4.  On or before December 31, 1998, the
commission shall submit to the director of the legislative counsel bureau for
transmission to the 70th session of the Nevada legislature:</span></span></p>

<p class="MsoNormal" style='margin-left:.4in'><span class=oldLang><span
style='color:red'>       (a) A written report of its findings pursuant to
subsection 2;</span></span></p>

<p class="MsoNormal" style='margin-left:.4in'><span class=oldLang><span
style='color:red'>       (b) The plan developed by the commission
pursuant to subsection 3; and</span></span></p>

<p class="MsoNormal" style='margin-left:.4in'><span class=oldLang><span
style='color:red'>       (c) Any recommendations for legislation that are
not contained in the plan.</span></span></p>

<p class="MsoNormal" style='margin-left:.4in'><span class=oldLang><span
style='color:red'>       5.<b>]</b></span></span><span class=newLang><span
style='color:blue'> shall:</span></span></p>

<span class=newLang><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:blue;font-weight:normal'><br clear=all style='page-break-before:always'>
</span></span>

<p class="StatsPageBreak"><a name="Stats199920page3225"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3225 (<a href="#Stats199920_CH596">CHAPTER 596, AB 597</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="MsoNormal" style='margin-left:.4in'><span class=newLang><span
style='color:blue'>       (a) Develop a plan pursuant to which each
school district in this state may adequately finance the costs of designing and
constructing new school facilities and maintaining and repairing existing
school facilities in the school district. The plan must provide for the
efficient use of resources in the design, construction, maintenance and repair
of school facilities.</span></span></p>

<p class="MsoNormal" style='margin-left:.4in'><span class=newLang><span
style='color:blue'>       (b) Review the number of hours required to
transport pupils by bus to and from school and the costs associated with that
transportation, and compare those costs to the costs that would be incurred to
build new school facilities or change the boundaries of the zones within which
pupils are transported to certain schools.</span></span></p>

<p class="MsoNormal" style='margin-left:.4in'><span class=newLang><span
style='color:blue'>       3.  </span></span>The board of trustees
of each school district shall:</p>

<p class="MsoNormal" style='margin-left:.4in'>       (a) Comply with all
requests by the commission for information, including, without limitation, the
projections for the enrollment of pupils in a school district for the
succeeding 10 years; and</p>

<p class="MsoNormal" style='margin-left:.4in'>       (b) Otherwise
cooperate with the commission in carrying out its duties pursuant to this
section.<b> </b></p>

<p class="MsoNormal" style='margin-left:.4in'><span class=SectBodyChar><b>       </b></span><b>Sec. 25.  </b>1.  <span
class=oldLang><b><span style='color:red'>[</span></b><span style='color:red'>On
or before July 1, 1998, each oversight panel for school facilities established
in a county whose population is 100,000 or more pursuant to section 6 of this
act and each board of trustees of a school district in a county whose
population is less than 100,000 shall:</span></span></p>

<p class="MsoNormal" style='margin-left:.4in'><span class=oldLang><span
style='color:red'>       (a) Submit to the commission written
recommendations for financing the costs of new construction, design,
maintenance and repair of school facilities;</span></span></p>

<p class="MsoNormal" style='margin-left:.4in'><span class=oldLang><span
style='color:red'>       (b) Provide any other information relating to
the new construction, design, maintenance and repair of school facilities
requested by the commission; and</span></span></p>

<p class="MsoNormal" style='margin-left:.4in'><span class=oldLang><span
style='color:red'>       (c) Otherwise work cooperatively with the
commission in the development and revision of a plan for financing the costs of
new construction, design, maintenance and repair of school facilities.</span></span></p>

<p class="MsoNormal" style='margin-left:.4in'><span class=oldLang><span
style='color:red'>       2.  In a county whose population is
100,000 or more, the oversight panel for school facilities shall review and
approve or disapprove a request by the board of trustees of the school district
for the issuance of general obligation bonds pursuant to subsection 4 of NRS
350.020.<b>]</b></span></span><span class=newLang><span style='color:blue'> The
department of education shall provide administrative support to the commission.</span></span></p>

<p class="MsoNormal" style='margin-left:.4in'>       <span class=newLang><span
style='color:blue'>2.  In carrying out its duties pursuant to
subsection 1, the department of education shall ensure that notice of the
meetings of the commission is provided to the director of the legislative
counsel bureau for publication with the agendas of scheduled meetings of the
legislative committees that are published by the legislative counsel bureau.</span></span></p>

<p class="MsoNormal" style='margin-left:.4in'><b>       Sec. 29.  </b>1.  There
is hereby appropriated from the state general fund to the state planning
commission for the new construction, design, maintenance and repair of school
facilities created pursuant to section 23 of this act the sum of <span
class=oldLang><b><span style='color:red'>[</span></b><span style='color:red'>$300,000<b>]</b></span></span>
<span class=newLang><span style='color:blue'>$75,000</span></span> for use by
the state planning commission for:</p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3226"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3226 (<a href="#Stats199920_CH596">CHAPTER 596, AB 597</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="MsoNormal" style='margin-left:.4in'>       (a) The <span
class=oldLang><b><span style='color:red'>[</span></b><span style='color:red'>evaluation
of existing school facilities to be conducted by a consultant pursuant to<b>]</b></span></span><span
class=newLang><span style='color:blue'> carrying out of the duties set forth in</span></span>
section 24 of this act; and</p>

<p class="MsoNormal" style='margin-left:.4in'>       (b) Expenses relating
to the operation of the state planning commission.</p>

<p class="MsoNormal" style='margin-left:.4in'>       2.  Any
remaining balance of the appropriation made by subsection 1 must not be
committed for expenditure after June 30, <span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>1999,<b>]</b></span></span><span
class=newLang><span style='color:blue'> 2001,</span></span> and reverts to the
state general fund as soon as all payments of money committed have been made.</p>

<p class="MsoNormal" style='margin-left:.4in'><b>       Sec. 31.  </b>1.  This
section and sections 1 to 7, inclusive, 9, 10, 22 to 25, inclusive, and 27 to
30, inclusive, of this act, become effective upon passage and approval.
Sections 22 to 25, inclusive, of this act, expire by limitation on June 30, <span
class=oldLang><b><span style='color:red'>[</span></b><span style='color:red'>1999,<b>]</b></span></span>
<span class=newLang><span style='color:blue'>2001. </span></span></p>

<p class="MsoNormal" style='margin-left:.4in'>       2.  Sections 11,
11.5, 13, 14, 14.5, 16, 20 and 21 of this act become effective on August 1,
1997.</p>

<p class="MsoNormal" style='margin-left:.4in'>       3.  Sections 8,
12 and 15 of this act become effective on July 1, 1999.</p>

<p class="MsoNormal" style='margin-left:.4in'>       4.  Sections 17,
18 and 19 of this act become effective on October 1, 1997. <span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>The amendatory provisions
of sections 17, 18 and 19 of this act expire by limitation on June 30, 2008.</span></span></p>

<p class="MsoNormal" style='margin-left:.4in'><span class=oldLang><span
style='color:red'>       5.  Section 26 of this act becomes
effective on July 1, 2008.<b>]</b></span></span></p>

<p class="SectBody"><b>      Sec. 9. </b> <b>Section 2 of
Senate Bill No. 501 of this session</b> is hereby amended to read as follows:</p>

<p class="MsoNormal" style='margin-left:.4in'><b>       Sec. 2.  </b>NRS
350.020 is hereby amended to read as follows:</p>

<p class="MsoNormal" style='margin-left:.4in'>       350.020<span class=Empty>  </span>1.  Except
as otherwise provided by subsections 3 and 4, if a municipality proposes to
issue or incur general obligations, the proposal must be submitted to the
electors of the municipality at a special election called for that purpose or
the next general municipal election or general state election.</p>

<p class="MsoNormal" style='margin-left:.4in'>       2.  Such a
special election may be held:</p>

<p class="MsoNormal" style='margin-left:.4in'>       (a) At any time,<span
class=newLang><span style='color:blue'> including, without limitation, on the
date of a primary municipal election or a primary state election, </span></span>if
the governing body of the municipality determines, by a unanimous vote, that an
emergency exists; or</p>

<p class="MsoNormal" style='margin-left:.4in'>       (b) On the first
Tuesday after the first Monday in June of an odd-numbered year.</p>

<p class="MsoNormal" style='margin-left:.4in'>The determination made by the
governing body is conclusive unless it is shown that the governing body acted
with fraud or a gross abuse of discretion. An action to challenge the
determination made by the governing body must be commenced within 15 days after
the governing body’s determination is final. As used in this subsection, “emergency”
means any occurrence or combination of occurrences which requires immediate
action by the governing body of the municipality to prevent or mitigate a
substantial financial loss to the municipality or to enable the governing body
to provide an essential service to the residents of the municipality.</p>

<p class="MsoNormal" style='margin-left:.4in'>       3.  If payment
of a general obligation of the municipality is additionally secured by a pledge
of gross or net revenue of a project to be financed by its issue, and the
governing body determines, by an <span class=Extension>affirmative vote of
two-thirds of the members elected to the governing body, that the pledged
revenue will at least equal the amount required in each year for the payment of
interest and principal, without regard to any option reserved by the
municipality for early redemption, the municipality may, after a public
hearing, incur this general obligation without an election unless, within 60
days after publication of a resolution of intent to issue the bonds, a petition
is presented to the governing body signed by not less than 5 percent of the
registered voters of the municipality who together with any corporate
petitioners own not less than 2 percent in assessed value of the taxable
property of the municipality.</span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3227"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999 Statutes
of Nevada, Page 3227 (<a href="#Stats199920_CH596">CHAPTER 596, AB 597</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="MsoNormal" style='margin-left:.4in'>affirmative vote of two-thirds of
the members elected to the governing body, that the pledged revenue will at
least equal the amount required in each year for the payment of interest and
principal, without regard to any option reserved by the municipality for early
redemption, the municipality may, after a public hearing, incur this general
obligation without an election unless, within 60 days after publication of a resolution
of intent to issue the bonds, a petition is presented to the governing body
signed by not less than 5 percent of the registered voters of the municipality
who together with any corporate petitioners own not less than 2 percent in
assessed value of the taxable property of the municipality. Any member elected
to the governing body whose authority to vote is limited by charter, statute or
otherwise may vote on the determination required to be made by the governing
body pursuant to this subsection. The determination by the governing body
becomes conclusive on the last day for filing the petition. For the purpose of
this subsection, the number of registered voters must be determined as of the
close of registration for the last preceding general election and assessed
values must be determined from the next preceding final assessment roll. An
authorized corporate officer may sign such a petition whether or not he is a
registered voter. The resolution of intent need not be published in full, but
the publication must include the amount of the obligation and the purpose for
which it is to be incurred. Notice of the public hearing must be published at
least 10 days before the day of the hearing. The publications must be made once
in a newspaper of general circulation in the municipality. When published, the
notice of the public hearing must be at least as large as 5 inches high by 4
inches wide.</p>

<p class="MsoNormal" style='margin-left:.4in'>       4.  The board of
trustees of a school district may issue general obligation bonds which are not
expected to result in an increase in the existing property tax levy for the
payment of bonds of the school district without holding an election for each
issuance of the bonds if the qualified electors approve a question submitted by
the board of trustees that authorizes issuance of bonds for a period of 10
years after the date of approval by the voters. If the question is approved,
the board of trustees of the school district may issue the bonds for a period
of 10 years after the date of approval by the voters, after obtaining the
approval of the debt management commission in the county in which the school
district is located and, in a county whose population is 100,000 or more, the
approval of the oversight panel for school facilities established pursuant to
NRS 393.092 in that county, if the board of trustees of the school district
finds that the existing tax for debt service will at least equal the amount
required to pay the principal and interest on the outstanding general
obligations of the school district and the general obligations proposed to be
issued. The finding made by the board of trustees is conclusive in the absence
of fraud or gross abuse of discretion. As used in this subsection, “general
obligations” does not include medium-term obligations issued pursuant to NRS
350.085 to 350.095, inclusive. </p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3228"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3228 (<a href="#Stats199920_CH596">CHAPTER 596, AB 597</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="MsoNormal" style='margin-left:.4in'>       5.  At the time
of issuance of bonds authorized pursuant to subsection 4, the board of trustees
shall establish a reserve account in its debt service fund for payment of the
outstanding bonds of the school district. The reserve account must be
established and maintained in an amount at least equal to the lesser of the
amount of principal and interest payments due on all of the outstanding bonds
of the school district in the next fiscal year or 10 percent of the outstanding
principal amount of the outstanding bonds of the school district. If the amount
in the reserve account falls below the amount required by this subsection:</p>

<p class="MsoNormal" style='margin-left:.4in'>       (a) The board of
trustees shall not issue additional bonds pursuant to subsection 4 until the
reserve account is restored to the level required by this subsection; and</p>

<p class="MsoNormal" style='margin-left:.4in'>       (b) The board of
trustees shall apply all of the taxes levied by the school district for payment
of bonds of the school district that are not needed for payment of the
principal and interest on bonds of the school district in the current fiscal
year to restore the reserve account to the level required pursuant to this
subsection. </p>

<p class="MsoNormal" style='margin-left:.4in'>       6.  A municipality
may issue special or medium-term obligations without an election.</p>

<p class="SectBody"><b>      Sec. 10.  Section 26 of chapter
516, Statutes of Nevada 1997, at page 2469</b>, and sections 3 and 15 of Senate
Bill No. 501 of this session are hereby repealed. </p>

<p class="SectBody"><b>      Sec. 11.  </b>At the request of
the director of the department of administration, the state board of finance
shall issue general obligation bonds of the State of Nevada in a face amount
not exceeding $16,000,000 pursuant to the State Securities Law. The proceeds of
the bonds remaining after the payment of the costs of issuance of the bonds
must be deposited in the fund to assist school districts in financing capital
improvements, created pursuant to section 2 of this act, and used by the
director of the department of administration pursuant to section 3 of this act
to make grants to school districts for capital improvements.</p>

<p class="SectBody"><b>      Sec. 12.  </b>1.  The
state controller may advance temporarily from the state general fund, upon the
approval of the chief of the budget division of the department of
administration, to the fund to assist school districts in financing capital
improvements created pursuant to section 2 of this act, until the date on which
bonds authorized by section 11 of this act are sold, amounts necessary to
facilitate the making of grants to school districts pursuant to section 3 of
this act. The state controller shall not advance more than the face amount of
the bonds authorized to be issued. The advanced amounts must be repaid
immediately to the state general fund upon the sale of the bonds.</p>

<p class="SectBody">    2.  The chief of the budget division of the
department of administration shall notify the state controller and the fiscal
analysis division of the legislative counsel bureau of the approval of an
advance from the state general fund to the fund to assist school districts in
financing capital improvements pursuant to subsection 1.</p>

<p class="SectBody"><b>      Sec. 13.  </b>This act becomes
effective on July 1, 1999.</p>

<p class="SectBody" align=center style='text-align:center'>________</p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3229"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3229<span style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="DocHeading"><a name="Stats199920_CH597"></a><span style='display:none;
font-weight:normal'>CHAPTER 597, AB 280</span></p>

<p class="MsoNormal" style='margin-left:15.1pt;text-indent:-15.1pt'>Assembly Bill
No. 280–Assemblymen Buckley, Carpenter, Ohrenschall, Leslie, Thomas, Segerblom,
Perkins, Giunchigliani, Lee, Arberry, Parks, Williams, Manendo, Anderson,
Price, Freeman, Goldwater, Gibbons, McClain, Koivisto, Collins, Bache, Tiffany,
Neighbors, Nolan, Hettrick and Evans</p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.0pt'> </p>

<p class="statChapter">CHAPTER<span class=AdvanceChapter> 597</span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'> </span></p>

<p class="MsoNormal" style='margin-left:30.25pt;text-indent:-30.25pt;line-height:
8.0pt'><span style='font-size:8.0pt'>AN ACT relating to persons with
disabilities; prohibiting the use of aversive intervention on persons with
disabilities under certain circumstances; providing penalties; and providing
other matters properly relating thereto.</span></p>

<p class="MsoNormal"> </p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'>[Approved June 9, 1999]</span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'> </span></p>

<p class="SectBody">      W<span style='font-variant:small-caps'>hereas</span>, Providing
appropriate health and educational services to persons with disabilities is
essential to fulfilling this state’s important goal of ensuring equality of
opportunity, full participation, independent living and economic
self-sufficiency for persons with disabilities; and</p>

<p class="SectBody"><span style='font-variant:small-caps'>      Whereas, </span>A
person with a disability who is receiving health or educational services in
this state deserves to receive those services in an environment that is the
least restrictive, as determined by his disability, and deserves to be treated
with dignity and respect by the staff of the facility or school where he is
receiving services; and </p>

<p class="SectBody"><span style='font-variant:small-caps'>      Whereas, </span>A
person with a disability who is receiving health or educational services in
this state deserves a comprehensive treatment or educational program that does
not authorize disciplinary measures when convenient for the members of the
staff of the facility or school; now, therefore,</p>

<p class="Billupper" align=center style='margin-top:2.0pt;margin-right:.4in;
margin-bottom:0in;margin-left:.4in;margin-bottom:.0001pt;text-align:center;
text-indent:0in;line-height:8.5pt'><span style='font-size:8.0pt'> </span></p>

<p class="Billupper" align=center style='margin-top:2.0pt;margin-right:.4in;
margin-bottom:0in;margin-left:.4in;margin-bottom:.0001pt;text-align:center;
text-indent:0in;line-height:8.5pt'><span style='font-size:8.0pt'>THE PEOPLE OF
THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, </span></p>

<p class="Billupper" align=center style='margin-top:2.0pt;margin-right:.4in;
margin-bottom:0in;margin-left:.4in;margin-bottom:.0001pt;text-align:center;
text-indent:0in;line-height:8.5pt'><span style='font-size:8.0pt'>DO ENACT AS
FOLLOWS:</span></p>

<p class="MsoNormal"> </p>

<p class="SectBody">      <b>Section 1.  Chapter 433 of NRS</b>
is hereby amended by adding thereto the provisions set forth as sections 2 to
19, inclusive, of this act.</p>

<p class="SectBody"><b>      Sec. 2. </b> <span class=newLang><span
style='color:blue'>As used in sections 2 to 19, inclusive, of this act, unless
the context otherwise requires, the words and terms defined in sections 3 to
11, inclusive, of this act have the meanings ascribed to them in those
sections.</span></span></p>

<p class="SectBody"><b>      Sec. 3. </b> <span class=newLang><span
style='color:blue'>“Aversive intervention” means any of the following actions
if the action is used to punish a person with a disability or to eliminate,
reduce or discourage maladaptive behavior of a person with a disability:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      1.  The
use of noxious odors and tastes;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  The
use of water and other mists or sprays;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  The
use of blasts of air;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      4.  The
use of corporal punishment;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      5.  The
use of verbal and mental abuse;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      6.  The
use of electric shock;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      7.  Requiring
a person to perform exercise under forced conditions if the:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Person
is required to perform the exercise because he exhibited a behavior that is
related to his disability;</span></span></p>

<span class=newLang><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:blue;font-weight:normal'><br clear=all style='page-break-before:always'>
</span></span>

<p class="StatsPageBreak"><a name="Stats199920page3230"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3230 (<a href="#Stats199920_CH597">CHAPTER 597, AB 280</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) Exercise
is harmful to the health of the person because of his disability; or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) Nature
of the person’s disability prevents him from engaging in the exercise;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      8.  Any
intervention, technique or procedure that deprives a person of the use of one
or more of his senses, regardless of the length of the deprivation, including,
without limitation, the use of sensory screens; or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      9.  The
deprivation of necessities needed to sustain the health of a person, regardless
of the length of the deprivation, including, without limitation, the denial or
unreasonable delay in the provision of:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Food
or liquid at a time when it is customarily served; or</span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>(b) Medication.</span></span></p>

<p class="SectBody"><b>      Sec. 4. </b> <span class=newLang><span
style='color:blue'>“Chemical restraint” means the administration of drugs for
the specific and exclusive purpose of controlling an acute or episodic
aggressive behavior when alternative intervention techniques have failed to
limit or control the behavior. The term does not include the administration of
drugs on a regular basis, as prescribed by a physician, to treat the symptoms
of mental, physical, emotional or behavioral disorders and for assisting a
person in gaining self-control over his impulses.</span></span></p>

<p class="SectBody"><b>      Sec. 5. </b> <span class=newLang><span
style='color:blue'>“Corporal punishment” means the intentional infliction of
physical pain, including, without limitation, hitting, pinching or striking.</span></span></p>

<p class="SectBody"><b>      Sec. 6. </b> <span class=newLang><span
style='color:blue'>“Electric shock” means the application of electric current
to a person’s skin or body. The term does not include electroconvulsive
therapy.</span></span></p>

<p class="SectBody"><b>      Sec. 7. </b> <span class=newLang><span
style='color:blue'>“Emergency” means a situation in which immediate
intervention is necessary to protect the physical safety of a person or others
from an immediate threat of physical injury or to protect against an immediate
threat of severe property damage.</span></span></p>

<p class="SectBody"><b>      Sec. 8. </b> <span class=newLang><span
style='color:blue'>“Mechanical restraint” means the use of devices, including,
without limitation, mittens, straps and restraint chairs to limit a person’s
movement or hold a person immobile.</span></span></p>

<p class="SectBody"><b>      Sec. 9. </b> <span class=newLang><span
style='color:blue'>“Person with a disability” means a person who:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      1.  Has
a physical or mental impairment that substantially limits one or more of the
major life activities of the person;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  Has
a record of such an impairment; or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  Is
regarded as having such an impairment.</span></span></p>

<p class="SectBody"><b>      Sec. 10. </b> <span class=newLang><span
style='color:blue'>“Physical restraint” means the use of physical contact to
limit a person’s movement or hold a person immobile.</span></span></p>

<p class="SectBody"><b>      Sec. 11. </b> <span class=newLang><span
style='color:blue'>“Verbal and mental abuse” means verbal intimidation or
coercion of a person without a redeeming purpose.</span></span></p>

<p class="SectBody"><b>      Sec. 12. </b> <span class=newLang><span
style='color:blue'>A person employed by a facility or any other person shall
not use any aversive intervention on a person with a disability who is a
client.</span></span></p>

<p class="SectBody"><b>      Sec. 13. </b> <span class=newLang><span
style='color:blue'>Notwithstanding the provisions of sections 14 to 17,
inclusive, of this act to the contrary, a facility may use or authorize the use
of physical restraint, mechanical restraint or chemical restraint on a person
with a disability who is a client if the facility is:</span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>1.  Accredited
by a nationally recognized accreditation association or agency; or</span></span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3231"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3231 (<a href="#Stats199920_CH597">CHAPTER 597, AB 280</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>2.  Certified
for participation in the Medicaid or Medicare program,</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>only to the
extent that the accreditation or certification allows the use of such
restraint.</span></span></p>

<p class="SectBody"><b>      Sec. 14. </b> <span class=newLang><span
style='color:blue'>A person employed by a facility or any other person shall
not:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      1.  Except
as otherwise provided in section 15 of this act, use physical restraint on a
person with a disability who is a client.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  Except
as otherwise provided in section 16 of this act, use mechanical restraint on a
person with a disability who is a client.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  Except
as otherwise provided in section 17 of this act, use chemical restraint on a
person with a disability who is client.</span></span></p>

<p class="SectBody"><b>      Sec. 15. </b> <span class=newLang><span
style='color:blue'>1.  Except as otherwise provided in subsection
2, physical restraint may be used on a person with a disability who is a client
only if:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) An
emergency exists that necessitates the use of physical restraint;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) The
physical restraint is used only for the period that is necessary to contain the
behavior of the client so that the client is no longer an immediate threat of
causing physical injury to himself or others or causing severe property damage;
and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) The
use of force in the application of physical restraint does not exceed the force
that is reasonable and necessary under the circumstances precipitating the use
of physical restraint.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  Physical
restraint may be used on a person with a disability who is a client and the
provisions of subsection 1 do not apply if the physical restraint is used to:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Assist
the client in completing a task or response if the client does not resist the
application of physical restraint or if his resistance is minimal in intensity
and duration;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) Escort
or carry a client to safety if the client is in danger in his present location;
or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) Conduct
medical examinations or treatments on the client that are necessary.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  If
physical restraint is used on a person with a disability who is a client in an
emergency, the use of the procedure must be reported as a denial of rights
pursuant to NRS 433.534, regardless of whether the use of the procedure is
authorized by statute. The report must be made not later than 1 working day
after the procedure is used. </span></span></p>

<p class="SectBody"><b>      Sec. 16. </b> <span class=newLang><span
style='color:blue'>1.  Except as otherwise provided in subsection
2, mechanical restraint may be used on a person with a disability who is a
client only if:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) An
emergency exists that necessitates the use of mechanical restraint;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) A
medical order authorizing the use of mechanical restraint is obtained from the
client’s treating physician before the application of the mechanical restraint
or not later than 15 minutes after the application of the mechanical restraint;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) The
physician who signed the order required pursuant to paragraph (b) or the attending
physician examines the client not later than 1 working day immediately after
the application of the mechanical restraint;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (d) The
mechanical restraint is applied by a member of the staff of the facility who is
trained and qualified to apply mechanical restraint;</span></span></p>

<span class=newLang><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:blue;font-weight:normal'><br clear=all style='page-break-before:always'>
</span></span>

<p class="StatsPageBreak"><a name="Stats199920page3232"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3232 (<a href="#Stats199920_CH597">CHAPTER 597, AB 280</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (e) The
client is given the opportunity to move and exercise the parts of his body that
are restrained at least 10 minutes per every 60 minutes of restraint;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (f) A
member of the staff of the facility lessens or discontinues the restraint every
15 minutes to determine whether the client will stop or control his
inappropriate behavior without the use of the restraint;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (g) The
record of the client contains a notation that includes the time of day that the
restraint was lessened or discontinued pursuant to paragraph (f), the response
of the client and the response of the member of the staff of the facility who
applied the mechanical restraint; </span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (h) A
member of the staff of the facility continuously monitors the client during the
time that mechanical restraint is used on the client; and </span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (i) The
mechanical restraint is used only for the period that is necessary to contain
the behavior of the client so that the client is no longer an immediate threat
of causing physical injury to himself or others or causing severe property
damage.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  Mechanical
restraint may be used on a person with a disability who is a client and the
provisions of subsection 1 do not apply if the mechanical restraint is used to:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Treat
the medical needs of a client;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) Protect
a client who is known to be at risk of injury to himself because he lacks
coordination or suffers from frequent loss of consciousness;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) Provide
proper body alignment to a client; or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (d) Position
a client who has physical disabilities in a manner prescribed in the client’s
plan of services.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  If
mechanical restraint is used on a person with a disability who is a client in
an emergency, the use of the procedure must be reported as a denial of rights
pursuant to NRS 433.534, regardless of whether the use of the procedure is
authorized by statute. The report must be made not later than 1 working day
after the procedure is used.</span></span></p>

<p class="SectBody"><b>      Sec. 17. </b> <span class=newLang><span
style='color:blue'>1.  Chemical restraint may only be used on a
person with a disability who is a client if:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) The
client has been diagnosed as mentally ill, as defined in NRS 433A.115, and is
receiving mental health services from a facility;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) The
chemical restraint is administered to the client while he is under the care of
the facility;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) An
emergency exists that necessitates the use of chemical restraint;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (d) A
medical order authorizing the use of chemical restraint is obtained from the
client’s attending physician or psychiatrist;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (e) The
physician or psychiatrist who signed the order required pursuant to paragraph
(d) examines the client not later than 1 working day immediately after the
administration of the chemical restraint; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (f) The
chemical restraint is administered by a person licensed to administer
medication.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  If
chemical restraint is used on a person with a disability who is a client, the
use of the procedure must be reported as a denial of rights pursuant to NRS
433.534, regardless of whether the use of the procedure is </span></span><span
class=Extension>authorized by statute.</span></p>

<span class=newLang><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:blue;font-weight:normal'><br clear=all style='page-break-before:always'>
</span></span>

<p class="StatsPageBreak"><a name="Stats199920page3233"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3233 (<a href="#Stats199920_CH597">CHAPTER 597, AB 280</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><span class=newLang><span style='color:blue'>authorized by
statute. The report must be made not later than 1 working day after the
procedure is used.</span></span></p>

<p class="SectBody"><b>      Sec. 18. </b> <span class=newLang><span
style='color:blue'>1.  Each facility shall develop a program of
education for the members of the staff of the facility to provide instruction
in positive behavioral interventions and positive behavioral supports that:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Includes
positive methods to modify the environment of clients to promote adaptive
behavior and reduce the occurrence of inappropriate behavior;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) Includes
methods to teach skills to clients so that clients can replace inappropriate
behavior with adaptive behavior;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) Includes
methods to enhance a client’s independence and quality of life; </span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (d) Includes
the use of the least intrusive methods to respond to and reinforce the behavior
of clients; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (e) Offers
a process for designing interventions based upon the client that are focused on
promoting appropriate changes in behavior as well as enhancing the overall
quality of life for the client.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  Each
facility shall provide appropriate training for the members of the staff of the
facility who are authorized to carry out and monitor physical restraint,
mechanical restraint and chemical restraint to ensure that those members of the
staff are competent and qualified to carry out the procedures in accordance
with sections 2 to 19, inclusive, of this act.</span></span></p>

<p class="SectBody"><b>      Sec. 19. <span class=newLang><span
style='color:blue'> 1.  A facility where a violation of the
provisions of sections 2 to 19, inclusive, of this act occurs shall:</span></span></b></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Not
later than 24 hours after a violation occurs, or as soon thereafter as the
violation is discovered, report the violation to the division; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) Develop,
in cooperation with the division, a corrective plan to ensure that within 30
calendar days after the violation occurred, appropriate action is taken by the
facility to prevent future violations.   </span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  The
division shall forward the plan to the director of the department. The director
or his designee shall review the plan to ensure that it complies with
applicable federal law and the statutes and regulations of this state. The
director or his designee may require appropriate revision of the plan to ensure
compliance.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  If
the facility where the violation occurred does not meet the requirements of the
plan to the satisfaction of the director or his designee, the department may
withhold funding for the facility until the facility meets the requirements of
the plan.</span></span></p>

<p class="SectBody"><b>    Sec. 20. </b> <b>NRS 433.484</b> is
hereby amended to read as follows:</p>

<p class="SectBody">    433.484  Each client admitted for evaluation,
treatment or training to a facility has the following rights concerning care,
treatment and training, a list of which must be prominently posted in all
facilities providing those services and must be otherwise brought to the
attention of the client by such additional means as prescribed by regulation:</p>

<p class="SectBody">    1.  To medical, psychosocial and
rehabilitative care, treatment and training including prompt and appropriate
medical treatment and care for physical and mental ailments and for the
prevention of any illness or disability. All of that care, treatment and
training must be consistent with <span class=Extension>standards of practice of
the respective professions in the community and is subject to the following
conditions:</span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3234"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3234 (<a href="#Stats199920_CH597">CHAPTER 597, AB 280</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody">standards of practice of the respective professions in the
community and is subject to the following conditions:</p>

<p class="SectBody">    (a) Before instituting a plan of care, treatment or
training or carrying out any necessary surgical procedure, express and informed
consent must be obtained in writing from:</p>

<p class="SectBody">      (1) The client if he is 18 years of age or over
or legally emancipated and competent to give that consent, and from his legal
guardian, if any;</p>

<p class="SectBody">      (2) The parent or guardian of a client under 18
years of age and not legally emancipated; or</p>

<p class="SectBody">      (3) The legal guardian of a client of any age who
has been adjudicated mentally incompetent;</p>

<p class="SectBody">    (b) An informed consent requires that the person
whose consent is sought be adequately informed as to:</p>

<p class="SectBody">      (1) The nature and consequences of the procedure;</p>

<p class="SectBody">      (2) The reasonable risks, benefits and purposes
of the procedure; and</p>

<p class="SectBody">      (3) Alternative procedures available;</p>

<p class="SectBody">    (c) The consent of a client as provided in
paragraph (b) may be withdrawn by the client in writing at any time with or
without cause;</p>

<p class="SectBody">    (d) Even in the absence of express and informed
consent, a licensed and qualified physician may render emergency medical care
or treatment to any client who has been injured in an accident or who is
suffering from an acute illness, disease or condition, if within a reasonable
degree of medical certainty, delay in the initiation of emergency medical care
or treatment would endanger the health of the client and if the treatment is
immediately entered into the client’s record of treatment, subject to the
provisions of paragraph (e); and</p>

<p class="SectBody">    (e) If the proposed emergency medical care or
treatment is deemed by the chief medical officer of the facility to be unusual,
experimental or generally occurring infrequently in routine medical practice,
the chief medical officer shall request consultation from other physicians or
practitioners of healing arts who have knowledge of the proposed care or
treatment.</p>

<p class="SectBody">    2.  To be free from <span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>the application of any
mechanical restraint, except if prescribed by a physician. If so prescribed,
the restraint must be removed whenever the condition justifying its use no
longer exists, and any use of a mechanical restraint, together with the reasons
therefor, must be made a part of the client’s record of treatment.<b>]</b></span></span><span
class=newLang><span style='color:blue'> abuse, neglect and aversive
intervention.</span></span></p>

<p class="SectBody">    3.  To consent to his transfer from one
facility to another, except that the administrator of the division of mental
health and developmental services of the department or his designee, or the
administrator of the division of child and family services of the department or
his designee, may order a transfer to be made whenever conditions concerning
care, treatment or training warrant it. If the client in any manner objects to
the transfer, the person ordering it must enter the objection and a written
justification of the transfer in the client’s record of treatment and
immediately forward a notice of the objection to the administrator who ordered
the transfer, and the commission shall review the transfer pursuant to
subsection 3 of NRS 433.534.</p>

<p class="SectBody">    4.  Other rights concerning care, treatment
and training as may be specified by regulation of the commission.</p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3235"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3235 (<a href="#Stats199920_CH597">CHAPTER 597, AB 280</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="MsoNormal"><b>      Sec. 21. </b> <b>NRS 433.554</b>
is hereby amended to read as follows:</p>

<p class="MsoNormal">      433.554<span class=Empty> </span> 1.  An
employee of a public or private mental health facility or any other person,
except a client, who:</p>

<p class="MsoNormal">      (a) Has reason to believe that a client of the
division or of a private facility offering mental health services has been or
is being abused or neglected and fails to report it;</p>

<p class="MsoNormal">      (b) Brings intoxicating beverages or a
controlled substance into any division facility occupied by clients unless
specifically authorized to do so by the administrative officer or a staff
physician of the facility;</p>

<p class="MsoNormal">      (c) Is under the influence of liquor or a
controlled substance while employed in contact with clients, unless in
accordance with a lawfully issued prescription;</p>

<p class="MsoNormal">      (d) Enters into any transaction with a client
involving the transfer of money or property for personal use or gain at the
expense of the client; or</p>

<p class="MsoNormal">      (e) Contrives the escape, elopement or absence
of a client,</p>

<p class="MsoNormal">is guilty of a misdemeanor, in addition to any other
penalties provided by law.</p>

<p class="MsoNormal">      2.  In addition to any other penalties
provided by law, an employee of a public or private mental health facility or
any other person, except a client, who willfully abuses or neglects a client:</p>

<p class="MsoNormal">      (a) <span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>If no<b>]</b></span></span>
<span class=newLang><span style='color:blue'>For a first violation that does
not result in</span></span> substantial bodily harm to the client <span
class=newLang><span style='color:blue'>,</span></span> <span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>results,<b>]</b></span></span>
is guilty of a gross misdemeanor.</p>

<p class="MsoNormal">      (b) <span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>If<b>]</b></span></span> <span
class=newLang><span style='color:blue'>For a first violation that results in</span></span>
substantial bodily harm to the client <span class=newLang><span
style='color:blue'>,</span></span> <span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>results,<b>]</b></span></span>
is guilty of a category B felony <span class=newLang><span style='color:blue'>.</span></span>
<span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>and<b>]</b></span></span></p>

<p class="MsoNormal">      <span class=newLang><span style='color:blue'>(c) For
a second or subsequent violation, is guilty of a category B felony.</span></span></p>

<p class="MsoNormal"><span class=newLang><span style='color:blue'>A person
convicted of a category B felony pursuant to this section</span></span> shall
be punished by imprisonment in the state prison for a minimum term of not less
than 1 year and a maximum term of not more than 6 years, or by a fine of not
more than $5,000, or by both fine and imprisonment.</p>

<p class="MsoNormal">      3.  A person who is convicted pursuant to
this section is ineligible for 5 years for appointment to or employment in a
position in the state service and, if he is an officer or employee of the
state, he forfeits his office or position.</p>

<p class="MsoNormal">      4.  <span class=newLang><span
style='color:blue'>A conviction pursuant to NRS 433.554 is, when applicable,
grounds for disciplinary action against the person so convicted and the
facility where the violation occurred. The division may recommend to the
appropriate agency or board the suspension or revocation of the professional
license, registration, certificate or permit of a person convicted pursuant to
NRS 433.554.</span></span></p>

<p class="MsoNormal"><span class=newLang><span style='color:blue'>      5.</span></span>  For
the purposes of this section:</p>

<p class="MsoNormal">      (a) “Abuse” means any willful and unjustified
infliction of pain, injury or mental anguish upon a client, including, but not
limited to:</p>

<p class="MsoNormal">             (1) The rape, sexual assault or sexual
exploitation of the client;</p>

<p class="MsoNormal">             (2) <span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>Striking the client;</span></span></p>

<p class="MsoNormal"><span class=oldLang><span style='color:red'>            (3) Verbal
intimidation or coercion of the client without a redeeming purpose;</span></span></p>

<p class="MsoNormal"><span class=oldLang><span style='color:red'>            (4) The
use of excessive force when placing the client in physical restraints; and</span></span></p>

<p class="MsoNormal"><span class=oldLang><span style='color:red'>            (5)<b>]</b></span></span>
<span class=newLang><span style='color:blue'>The use of any type of aversive
intervention; </span></span></p>

<span class=newLang><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:blue;font-weight:normal'><br clear=all style='page-break-before:always'>
</span></span>

<p class="StatsPageBreak"><a name="Stats199920page3236"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3236 (<a href="#Stats199920_CH597">CHAPTER 597, AB 280</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (3) Except
as otherwise provided in section 13 of this act, a violation of section 14 of
this act; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>             (4)</span></span> The
use of physical <span class=newLang><span style='color:blue'>,</span></span> <span
class=oldLang><b><span style='color:red'>[</span></b><span style='color:red'>or<b>]</b></span></span>
chemical <span class=newLang><span style='color:blue'>or mechanical</span></span>
restraints <span class=newLang><span style='color:blue'>or the use of seclusion</span></span>
in violation of <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>state or<b>]</b></span></span> federal law.</p>

<p class="SectBody">Any act which meets the standard of practice for care and
treatment does not constitute abuse.</p>

<p class="SectBody">    (b) “Client” includes any person who seeks, on his
own or others’ initiative, and can benefit from care<span class=newLang><span
style='color:blue'> , </span></span>treatment and training in a public or
private institution or facility offering mental health services. The term <span
class=oldLang><b><span style='color:red'>[</span></b><span style='color:red'>does
not include<b>]</b></span></span><span class=newLang><span style='color:blue'>
includes</span></span> a client of the division of child and family services of
the department.</p>

<p class="SectBody">    (c) “Neglect” means any omission to act which
causes injury to a client or which places the client at risk of injury,
including, but not limited to, the failure to follow:</p>

<p class="SectBody">      (1) An appropriate plan of treatment to which the
client has consented; and</p>

<p class="SectBody">             (2) The policies of the facility for the
care and treatment of clients.</p>

<p class="SectBody">Any omission to act which meets the standard of practice for
care and treatment does not constitute neglect.</p>

<p class="SectBody">    (d) “Standard of practice” means the skill and care
ordinarily exercised by prudent professional personnel engaged in health care.</p>

<p class="SectBody"><b>    Sec. 22. </b> <b>NRS 435.350</b> is
hereby amended to read as follows:</p>

<p class="SectBody">    435.350  1.  Each mentally
retarded person or person with a related condition admitted to a division
facility is entitled to all rights enumerated in <span class=newLang><span
style='color:blue'>sections 2 to 19, inclusive, of this act and </span></span>NRS
433.482 and 433.484.</p>

<p class="SectBody">    2.  The administrator shall designate a
person or persons to be responsible for establishment of regulations relating
to denial of rights of mentally retarded persons and persons with related
conditions. The person designated shall file the regulations with the
administrator.</p>

<p class="SectBody">    3.  Clients’ rights specified in NRS 433.482
and 433.484 may be denied only for cause. Any denial of such rights must be
entered in the client’s treatment record, and notice of the denial must be
forwarded to the administrator’s designee or designees as provided in
subsection 2. Failure to report denial of rights by an employee may be grounds
for dismissal.</p>

<p class="SectBody">    4.  Upon receipt of notice of a denial of
rights as provided in subsection 3, the administrator’s designee or designees
shall cause a full report to be prepared which sets forth in detail the factual
circumstances surrounding the denial. A copy of the report must be sent to the
administrator and the commission.</p>

<p class="SectBody">    5.  The commission has such powers and duties
with respect to reports of denial of rights as are enumerated in subsection 3
of NRS 433.534.</p>

<p class="SectBody"><b>      Sec. 23. </b> <b>Chapter 388 of
NRS</b> is hereby amended by adding thereto the provisions set forth as
sections 24 to 42, inclusive, of this act.</p>

<p class="SectBody"><b>      Sec. 24. </b> <span class=newLang><span
style='color:blue'>As used in sections 24 to 42, inclusive, of this act, unless
the context otherwise requires, the words and terms defined in sections 25 to
33, inclusive, of this act have the meanings ascribed to them in those
sections.</span></span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3237"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3237 (<a href="#Stats199920_CH597">CHAPTER 597, AB 280</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><b>      Sec. 25. </b> <span class=newLang><span
style='color:blue'>“Aversive intervention” means any of the following actions
if the action is used to punish a pupil with a disability or to eliminate,
reduce or discourage maladaptive behavior of a pupil with a disability:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      1.  The
use of noxious odors and tastes;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  The
use of water and other mists or sprays;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  The
use of blasts of air;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      4.  The
use of corporal punishment;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      5.  The
use of verbal and mental abuse;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      6.  The
use of electric shock;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      7.  The
administration of chemical restraint to a person;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      8.  The
placement of a person alone in a room where release from the room is prohibited
by a mechanism, including, without limitation, a lock, device or object
positioned to hold the door closed or otherwise prevent the person from leaving
the room;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      9.  Requiring
a person to perform exercise under forced conditions if the:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Person
is required to perform the exercise because he exhibited a behavior that is
related to his disability;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) Exercise
is harmful to the health of the person because of his disability; or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) Nature
of the person’s disability prevents him from engaging in the exercise; or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      10.  The
deprivation of necessities needed to sustain the health of a person, regardless
of the length of the deprivation, including, without limitation, the denial or
unreasonable delay in the provision of:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Food
or liquid at a time when it is customarily served; or</span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>(b) Medication.</span></span></p>

<p class="SectBody"><b>      Sec. 26. </b> <span class=newLang><span
style='color:blue'>“Chemical restraint” means the administration of drugs for
the specific and exclusive purpose of controlling an acute or episodic
aggressive behavior when alternative intervention techniques have failed to
limit or control the behavior. The term does not include the administration of
drugs on a regular basis, as prescribed by a physician, to treat the symptoms
of mental, physical, emotional or behavioral disorders and for assisting a
person in gaining self-control over his impulses.</span></span></p>

<p class="SectBody"><b>      Sec. 27. <span class=newLang><span
style='color:blue'> “Corporal punishment” means the intentional
infliction of physical pain, including, without limitation, hitting, pinching
or striking.</span></span></b></p>

<p class="SectBody"><b>      Sec. 28. </b> <span class=newLang><span
style='color:blue'>“Electric shock” means the application of electric current
to a person’s skin or body. The term does not include electroconvulsive
therapy.</span></span></p>

<p class="SectBody"><b>      Sec. 29. </b> <span class=newLang><span
style='color:blue'>“Emergency” means a situation in which immediate
intervention is necessary to protect the physical safety of a person or others
from an immediate threat of physical injury or to protect against an immediate
threat of severe property damage.</span></span></p>

<p class="SectBody"><b>      Sec. 29.5. </b> <span
class=newLang><span style='color:blue'>“Individualized education program” has
the meaning ascribed to it in 20 U.S.C. § 1414(d)(1)(A).</span></span></p>

<p class="SectBody"><b>      Sec. 30. </b> <span class=newLang><span
style='color:blue'>“Individualized education program team” has the meaning
ascribed to it in 20 U.S.C. § 1414(d)(1)(B).</span></span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3238"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999 Statutes
of Nevada, Page 3238 (<a href="#Stats199920_CH597">CHAPTER 597, AB 280</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><b>      Sec. 31. </b> <span class=newLang><span
style='color:blue'>“Mechanical restraint” means the use of devices, including,
without limitation, mittens, straps and restraint chairs to limit a person’s
movement or hold a person immobile.</span></span></p>

<p class="SectBody"><b>      Sec. 32. </b> <span class=newLang><span
style='color:blue'>“Physical restraint” means the use of physical contact to
limit a person’s movement or hold a person immobile. </span></span></p>

<p class="SectBody"><b>      Sec. 33. </b> <span class=newLang><span
style='color:blue'>“Verbal and mental abuse” means actions or utterances that
are intended to cause and actually cause severe emotional distress to a person.</span></span></p>

<p class="SectBody"><b>      Sec. 34. </b> <span class=newLang><span
style='color:blue'>A person employed by the board of trustees of a school
district or any other person shall not use any aversive intervention on a pupil
with a disability.</span></span></p>

<p class="SectBody"><b>      Sec. 35. </b> <span class=newLang><span
style='color:blue'>A person employed by the board of trustees of a school
district or any other person shall not:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      1.  Except
as otherwise provided in section 36 of this act, use physical restraint on a
pupil with a disability.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  Except
as otherwise provided in section 37 of this act, use mechanical restraint on a
pupil with a disability.</span></span></p>

<p class="SectBody"><b>      Sec. 36. </b> <span class=newLang><span
style='color:blue'>1.  Except as otherwise provided in subsection
2, physical restraint may be used on a pupil with a disability only if:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) An
emergency exists that necessitates the use of physical restraint;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) The
physical restraint is used only for the period that is necessary to contain the
behavior of the pupil so that the pupil is no longer an immediate threat of
causing physical injury to himself or others or causing severe property damage;
and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) The
use of force in the application of physical restraint does not exceed the force
that is reasonable and necessary under the circumstances precipitating the use
of physical restraint.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  Physical
restraint may be used on a pupil with a disability and the provisions of
subsection 1 do not apply if the physical restraint is used to:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Assist
the pupil in completing a task or response if the pupil does not resist the
application of physical restraint or if his resistance is minimal in intensity
and duration;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) Escort
or carry a pupil to safety if the pupil is in danger in his present location;
or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) Conduct
medical examinations or treatments on the pupil that are necessary.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  If
physical restraint is used on a pupil with a disability in an emergency, the
use of the procedure must be reported in the pupil’s cumulative record and a
confidential file maintained for the pupil not later than 1 working day after
the procedure is used. A copy of the report must be provided to the board of
trustees of the school district, the pupil’s individualized education program
team and the parent or guardian of the pupil. If the board of trustees
determines that a denial of the pupil’s rights has occurred, the board of
trustees may submit a report to the department in accordance with section 42 of
this act. </span></span></p>

<p class="SectBody"><b>      Sec. 37. <span class=newLang><span
style='color:blue'> 1.  Except as otherwise provided in
subsection 2, mechanical restraint may be used on a pupil with a disability
only if:</span></span></b></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) An
emergency exists that necessitates the use of mechanical restraint;</span></span></p>

<span class=newLang><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:blue;font-weight:normal'><br clear=all style='page-break-before:always'>
</span></span>

<p class="StatsPageBreak"><a name="Stats199920page3239"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3239 (<a href="#Stats199920_CH597">CHAPTER 597, AB 280</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) A
medical order authorizing the use of mechanical restraint is obtained from the
pupil’s treating physician before the application of the mechanical restraint
or not later than 15 minutes after the application of the mechanical restraint;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) The
physician who signed the order required pursuant to paragraph (b) or the
attending physician examines the pupil as soon as practicable;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (d) The
mechanical restraint is applied by a member of the staff of the school who is
trained and qualified to apply mechanical restraint;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (e) The
pupil is given the opportunity to move and exercise the parts of his body that
are restrained at least 10 minutes per every 60 minutes of restraint, unless
otherwise prescribed by the physician who signed the order;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (f) A
member of the staff of the school lessens or discontinues the restraint every
15 minutes to determine whether the pupil will stop or control his inappropriate
behavior without the use of the restraint;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (g) The
record of the pupil contains a notation that includes the time of day that the
restraint was lessened or discontinued pursuant to paragraph (f), the response
of the pupil and the response of the member of the staff of the school who
applied the mechanical restraint;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (h) A
member of the staff of the school continuously monitors the pupil during the
time that mechanical restraint is used on the pupil; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (i) The
mechanical restraint is used only for the period that is necessary to contain
the behavior of the pupil so that the pupil is no longer an immediate threat of
causing physical injury to himself or others or causing severe property damage.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  Mechanical
restraint may be used on a pupil with a disability and the provisions of
subsection 1 do not apply if the mechanical restraint is used to:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Treat
the medical needs of the pupil;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) Protect
a pupil who is known to be at risk of injury to himself because he lacks
coordination or suffers from frequent loss of consciousness;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) Provide
proper body alignment to a pupil; or </span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (d) Position
a pupil who has physical disabilities in a manner prescribed in the pupil’s
individualized education program.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  If
mechanical restraint is used on a pupil with a disability in an emergency, the
use of the procedure must be reported in the pupil’s cumulative record and a
confidential file maintained for the pupil not later than 1 working day after
the procedure is used. A copy of the report must be provided to the board of
trustees of the school district, the pupil’s individualized education program
team and the parent or guardian of the pupil. If the board of trustees
determines that a denial of the pupil’s rights has occurred, the board of
trustees may submit a report to the department in accordance with section 42 of
this act.</span></span></p>

<p class="SectBody"><b>      Sec. 38. </b> <span class=newLang><span
style='color:blue'>1.  The department shall develop a model program
of education for use by the school districts to train the members of the staff
of the schools within the school districts who are identified in the
individualized education programs of pupils with disabilities to provide
services to those pupils. The model program of education must provide </span></span><span
class=Extension>instruction in positive behavioral interventions and positive
behavioral supports that:</span></p>

<span class=newLang><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:blue;font-weight:normal'><br clear=all style='page-break-before:always'>
</span></span>

<p class="StatsPageBreak"><a name="Stats199920page3240"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3240 (<a href="#Stats199920_CH597">CHAPTER 597, AB 280</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><span class=newLang><span style='color:blue'>instruction in
positive behavioral interventions and positive behavioral supports that:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Includes
positive methods to modify the environment of pupils with disabilities to
promote adaptive behavior and reduce the occurrence of inappropriate behavior;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) Includes
methods to teach skills to pupils with disabilities so that the pupils can
replace inappropriate behavior with adaptive behavior;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) Includes
methods to enhance the independence and quality of life for pupils with
disabilities; </span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (d) Includes
the use of the least intrusive methods to respond to and reinforce the behavior
of pupils with disabilities; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (e) Offers
a process for designing interventions based upon the pupil that are focused on
promoting appropriate changes in behavior as well as enhancing the overall
quality of life for the pupil.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  The
board of trustees of each school district shall provide for appropriate
training for the members of the staff of the schools within the school district
who are authorized to carry out and monitor physical restraint and mechanical
restraint to ensure that those members of the staff are qualified to carry out
the procedures in accordance with sections 24 to 42, inclusive, of this act.</span></span></p>

<p class="SectBody"><b>      Sec. 39. </b> <span class=newLang><span
style='color:blue'>In addition to any penalty prescribed by specific statute, a
person who intentionally uses aversive intervention on a pupil with a
disability or intentionally violates section 35 of this act, is subject to
disciplinary action pursuant to NRS 391.312 or 391.330, or both.</span></span></p>

<p class="SectBody"><b>      Sec. 40. </b> <span class=newLang><span
style='color:blue'>1.  A school where a violation of sections 24 to
42, inclusive, of this act occurs shall report the violation to the board of
trustees of the school district not later than 24 hours after the violation
occurred, or as soon thereafter as the violation is discovered. </span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  The
board of trustees of the school district where the violation occurred shall
develop, in cooperation with the superintendent of schools of the school
district, a corrective plan to ensure that within 30 calendar days after the
violation occurred, appropriate action is taken by the school and the board of
trustees to prevent future violations.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  The
superintendent of schools of the school district shall submit the plan to the
department. The department shall review the plan to ensure that it complies
with applicable federal law and the statutes and regulations of this state. The
department may require appropriate revision of the plan to ensure compliance.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    4.  If
the school where the violation occurred does not meet the requirements of the
plan to the satisfaction of the department, the department may appoint a
licensed administrator to oversee the school to ensure that the school meets
the requirements of the plan. An administrator serves at the pleasure of the
superintendent of public instruction and is entitled to receive such
compensation as may be set by the superintendent. A school district that
contains a school for which an administrator is appointed pursuant to this
subsection shall reimburse the department for any expenses incurred by the
department pursuant to this subsection.</span></span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3241"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3241 (<a href="#Stats199920_CH597">CHAPTER 597, AB 280</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><b>      Sec. 41. </b> <span class=newLang><span
style='color:blue'>An officer, administrator or employee of a public school
shall not retaliate against any person for having:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      1.  Reported
a violation of sections 24 to 42, inclusive, of this act; or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  Provided
information regarding a violation of sections 24 to 42, inclusive, of this act,</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>by a public
school or a member of the staff of the public school.</span></span></p>

<p class="SectBody"><b>      Sec. 42. </b> <span class=newLang><span
style='color:blue'>1.  A denial of rights of a pupil with a
disability pursuant to sections 24 to 42, inclusive, of this act must be
entered in the pupil’s cumulative record and a confidential file maintained for
that pupil. Notice of the denial must be provided to the board of trustees of
the school district.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  If
the board of trustees of a school district receives notice of a denial of
rights pursuant to subsection 1, it shall cause a full report to be prepared
which must set forth in detail the factual circumstances surrounding the
denial. A copy of the report must be provided to the department.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  The
department:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Shall
receive reports made pursuant to subsection 2;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) May
investigate apparent violations of the rights of pupils with disabilities; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) May
act to resolve disputes relating to apparent violations.</span></span></p>

<p class="SectBody"><b>      Sec. 43. </b> <b>NRS 388.440</b>
is hereby amended to read as follows:</p>

<p class="SectBody">    388.440<span class=Empty> </span> As used in
NRS 388.440 to 388.520, inclusive<span class=newLang><span style='color:blue'> </span></span><span
class=oldLang><b><span style='color:red'>[</span></b><span style='color:red'>:<b>]</b></span></span>
<span class=newLang><span style='color:blue'>, and sections 24 to 42,
inclusive, of this act:</span></span></p>

<p class="SectBody">    1.  “Gifted and talented pupil” means a
person under the age of 18 years who demonstrates such outstanding academic skills
or aptitudes that he cannot progress effectively in a regular school program
and therefore needs special instruction or special services.</p>

<p class="SectBody">    2.  “Pupil with a disability” means a person
under the age of 22 years who deviates either educationally, physically,
socially or emotionally so markedly from normal patterns that he cannot
progress effectively in a regular school program and therefore needs special
instruction or special services.</p>

<p class="SectBody"><b>    Sec. 44. </b> <b>NRS 391.312</b> is
hereby amended to read as follows:</p>

<p class="SectBody">    391.312  1.  A teacher may be
suspended, dismissed or not reemployed and an administrator may be demoted,
suspended, dismissed or not reemployed for the following reasons:</p>

<p class="SectBody">    (a) Inefficiency;</p>

<p class="SectBody">    (b) Immorality;</p>

<p class="SectBody">    (c) Unprofessional conduct;</p>

<p class="SectBody">    (d) Insubordination;</p>

<p class="SectBody">    (e) Neglect of duty;</p>

<p class="SectBody">    (f) Physical or mental incapacity;</p>

<p class="SectBody">    (g) A justifiable decrease in the number of
positions due to decreased enrollment or district reorganization;</p>

<p class="SectBody">    (h) Conviction of a felony or of a crime involving
moral turpitude;</p>

<p class="SectBody">    (i) Inadequate performance;</p>

<p class="SectBody">    (j) Evident unfitness for service;</p>

<p class="SectBody">    (k) Failure to comply with such reasonable
requirements as a board may prescribe;</p>

<p class="SectBody">    (l) Failure to show normal improvement and evidence
of professional training and growth;</p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3242"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3242 (<a href="#Stats199920_CH597">CHAPTER 597, AB 280</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody" style='margin-left:0in;text-indent:0in'>      (m) Advocating
overthrow of the Government of the United States or of the State of Nevada by
force, violence or other unlawful means, or the advocating or teaching of
communism with the intent to indoctrinate pupils to subscribe to communistic
philosophy;</p>

<p class="SectBody" style='margin-left:0in;text-indent:0in'>      (n) Any
cause which constitutes grounds for the revocation of a teacher’s license;</p>

<p class="SectBody" style='margin-left:0in;text-indent:0in'>      (o) Willful
neglect or failure to observe and carry out the requirements of this Title; </p>

<p class="SectBody" style='margin-left:0in;text-indent:0in'>      (p) Dishonesty;
<span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>or<b>]</b></span></span></p>

<p class="SectBody" style='margin-left:0in;text-indent:0in'>      (q) Breaches
in the security or confidentiality of the questions and answers of the
achievement and proficiency examinations that are administered pursuant to NRS
389.015<span class=newLang><span style='color:blue'> </span></span><span
class=oldLang><b><span style='color:red'>[</span></b><span style='color:red'>.<b>]</b></span></span><span
class=newLang><span style='color:blue'> ; or</span></span></p>

<p class="SectBody" style='margin-left:0in;text-indent:0in'><span class=newLang><span
style='color:blue'>      (r) An intentional violation of section 34 or 35
of this act. </span></span></p>

<p class="SectBody" style='margin-left:0in;text-indent:0in'>      2.  In
determining whether the professional performance of a licensed employee is
inadequate, consideration must be given to the regular and special evaluation
reports prepared in accordance with the policy of the employing school district
and to any written standards of performance which may have been adopted by the
board.</p>

<p class="SectBody" style='margin-left:0in;text-indent:0in'><b>      Sec. 45.  NRS
391.330</b> is hereby amended to read as follows:</p>

<p class="SectBody" style='margin-left:0in;text-indent:0in'>      391.330  The
state board may suspend or revoke the license of any teacher, administrator or
other licensed employee, after notice and an opportunity for hearing have been
provided pursuant to NRS 391.322 and 391.323, for:</p>

<p class="SectBody" style='margin-left:0in;text-indent:0in'>      1.  Immoral
or unprofessional conduct.</p>

<p class="SectBody" style='margin-left:0in;text-indent:0in'>      2.  Evident
unfitness for service.</p>

<p class="SectBody" style='margin-left:0in;text-indent:0in'>      3.  Physical
or mental incapacity which renders the teacher, administrator or other licensed
employee unfit for service.</p>

<p class="SectBody" style='margin-left:0in;text-indent:0in'>      4.  Conviction
of a felony or crime involving moral turpitude.</p>

<p class="SectBody" style='margin-left:0in;text-indent:0in'>      5.  Conviction
of a sex offense under NRS 200.366, 200.368, 201.190, 201.220, 201.230 or
207.260 in which a pupil enrolled in a school of a county school district was
the victim.</p>

<p class="SectBody" style='margin-left:0in;text-indent:0in'>      6.  Knowingly
advocating the overthrow of the Federal Government or of the State of Nevada by
force, violence or unlawful means.</p>

<p class="SectBody" style='margin-left:0in;text-indent:0in'>      7.  Persistent
defiance of or refusal to obey the regulations of the state board, the
commission or the superintendent of public instruction, defining and governing
the duties of teachers, administrators and other licensed employees.</p>

<p class="SectBody" style='margin-left:0in;text-indent:0in'>      8.  Breaches
in the security or confidentiality of the questions and answers of the
achievement and proficiency examinations that are administered pursuant to NRS
389.015.</p>

<p class="SectBody" style='margin-left:0in;text-indent:0in'><span class=newLang><span
style='color:blue'>      9.  An intentional violation of section 34
or 35 of this act.</span></span></p>

<p class="SectBody" style='margin-left:0in;text-indent:0in'><span class=newLang><span
style='color:blue'>      </span></span><b>Sec. 46.  Chapter
394 of NRS</b> is hereby amended by adding thereto the provisions set forth as
sections 47 to 66, inclusive, of this act.</p>

<p class="SectBody" style='margin-left:0in;text-indent:0in'><b>      Sec. 47. </b> <span
class=newLang><span style='color:blue'>As used in sections 47 to 66, inclusive,
of this act, unless the context otherwise requires, the words and terms defined
in sections 48 to 57, inclusive, of this act have the meanings ascribed to them
in those sections.</span></span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3243"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3243 (<a href="#Stats199920_CH597">CHAPTER 597, AB 280</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><b>      Sec. 48. <span class=newLang><span
style='color:blue'> “Aversive intervention” means any of the following
actions if the action is used to punish a pupil with a disability or to
eliminate, reduce or discourage maladaptive behavior of a pupil with a
disability:</span></span></b></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      1.  The
use of noxious odors and tastes;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  The
use of water and other mists or sprays;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  The
use of blasts of air;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      4.  The
use of corporal punishment;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      5.  The
use of verbal and mental abuse;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      6.  The
use of electric shock;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      7.  The
administration of chemical restraint to a person;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      8.  The
placement of a person alone in a room where release from the room is prohibited
by a mechanism, including, without limitation, a lock, device or object
positioned to hold the door closed or otherwise prevent the person from leaving
the room;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      9.  Requiring
a person to perform exercise under forced conditions if the:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Person
is required to perform the exercise because he exhibited a behavior that is
related to his disability;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) Exercise
is harmful to the health of the person because of his disability; or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) Nature
of the person’s disability prevents him from engaging in the exercise; or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      10.  The
deprivation of necessities needed to sustain the health of a person, regardless
of the length of the deprivation, including, without limitation, the denial or
unreasonable delay in the provision of:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Food
or liquid at a time when it is customarily served; or</span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>(b) Medication.</span></span></p>

<p class="SectBody"><b>      Sec. 49. </b> <span class=newLang><span
style='color:blue'>“Chemical restraint” means the administration of drugs for
the specific and exclusive purpose of controlling an acute or episodic
aggressive behavior when alternative intervention techniques have failed to
limit or control the behavior. The term does not include the administration of
drugs on a regular basis, as prescribed by a physician, to treat the symptoms
of mental, physical, emotional or behavioral disorders and for assisting a
person in gaining self-control over his impulses.</span></span></p>

<p class="SectBody"><b>      Sec. 50. </b> <span class=newLang><span
style='color:blue'>“Corporal punishment” means the intentional infliction of
physical pain, including, without limitation, hitting, pinching or striking.</span></span></p>

<p class="SectBody"><b>      Sec. 51. </b> <span class=newLang><span
style='color:blue'>“Electric shock” means the application of electric current
to a person’s skin or body. The term does not include electroconvulsive
therapy.</span></span></p>

<p class="SectBody"><b>      Sec. 52. </b> <span class=newLang><span
style='color:blue'>“Emergency” means a situation in which immediate
intervention is necessary to protect the physical safety of a person or others
from an immediate threat of physical injury or to protect against an immediate
threat of severe property damage.</span></span></p>

<p class="SectBody"><b>      Sec. 53. </b> <span class=newLang><span
style='color:blue'>“Individualized education program team” has the meaning
ascribed to it in 20 U.S.C. § 1414(d)(1)(B).</span></span></p>

<p class="SectBody"><b>      Sec. 54. </b> <span class=newLang><span
style='color:blue'>“Mechanical restraint” means the use of devices, including,
without limitation, mittens, straps and restraint chairs to limit a person’s
movement or hold a person immobile.</span></span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3244"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3244 (<a href="#Stats199920_CH597">CHAPTER 597, AB 280</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><b>      Sec. 55. </b> <span class=newLang><span
style='color:blue'>“Physical restraint” means the use of physical contact to
limit a person’s movement or hold a person immobile.</span></span></p>

<p class="SectBody"><b>      Sec. 56. </b> <span class=newLang><span
style='color:blue'>“Pupil with a disability” has the meaning ascribed to it in
NRS 388.440.</span></span></p>

<p class="SectBody"><b>      Sec. 57. </b> <span class=newLang><span
style='color:blue'>“Verbal and mental abuse” means actions or utterances that
are intended to cause and actually cause severe emotional distress to a person.</span></span></p>

<p class="SectBody"><b>      Sec. 58. </b> <span class=newLang><span
style='color:blue'>A person employed by a private school or any other person
shall not use any aversive intervention on a pupil with a disability.</span></span></p>

<p class="SectBody"><b>      Sec. 59. </b> <span class=newLang><span
style='color:blue'>A person employed by a private school or any other person
shall not:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      1.  Except
as otherwise provided in section 60 of this act, use physical restraint on a
pupil with a disability.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  Except
as otherwise provided in section 61 of this act, use mechanical restraint on a
pupil with a disability.</span></span></p>

<p class="SectBody"><b>      Sec. 60. </b> <span class=newLang><span
style='color:blue'>1.  Except as otherwise provided in subsection
2, physical restraint may be used on a pupil with a disability only if:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) An
emergency exists that necessitates the use of physical restraint;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) The
physical restraint is used only for the period that is necessary to contain the
behavior of the pupil so that the pupil is no longer an immediate threat of
causing physical injury to himself or others or causing severe property damage;
and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) The
use of force in the application of physical restraint does not exceed the force
that is reasonable and necessary under the circumstances precipitating the use
of physical restraint.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  Physical
restraint may be used on a pupil with a disability and the provisions of
subsection 1 do not apply if the physical restraint is used to:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Assist
the pupil in completing a task or response if the pupil does not resist the
application of physical restraint or if his resistance is minimal in intensity
and duration;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) Escort
or carry a pupil to safety if the pupil is in danger in his present location;
or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) Conduct
medical examinations or treatments on the pupil that are necessary.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  If
physical restraint is used on a pupil with a disability in an emergency, the
use of the procedure must be reported in the pupil’s cumulative record not
later than 1 working day after the procedure is used. A copy of the report must
be provided to the superintendent, the administrator of the private school, the
pupil’s individualized education program team, if applicable, and the parent or
guardian of the pupil. If the administrator of the private school determines
that a denial of the pupil’s rights has occurred, the administrator shall
submit a report to the superintendent in accordance with section 66 of this act.</span></span></p>

<p class="SectBody"><b>      Sec. 61. </b> <span class=newLang><span
style='color:blue'>1.  Except as otherwise provided in subsection
2, mechanical restraint may be used on a pupil with a disability only if:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) An
emergency exists that necessitates the use of mechanical restraint;</span></span></p>

<span class=newLang><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:blue;font-weight:normal'><br clear=all style='page-break-before:always'>
</span></span>

<p class="StatsPageBreak"><a name="Stats199920page3245"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3245 (<a href="#Stats199920_CH597">CHAPTER 597, AB 280</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) A
medical order authorizing the use of mechanical restraint is obtained from the
pupil’s treating physician before the application of the mechanical restraint
or not later than 15 minutes after the application of the mechanical restraint;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) The
physician who signed the order required pursuant to paragraph (b) or the
attending physician examines the pupil as soon as practicable after the
application of the mechanical restraint;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (d) The
mechanical restraint is applied by a member of the staff of the private school
who is trained and qualified to apply mechanical restraint;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (e) The
pupil is given the opportunity to move and exercise the parts of his body that
are restrained at least 10 minutes per every 60 minutes of restraint, unless
otherwise prescribed by the physician who signed the order;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (f) A
member of the staff of the private school lessens or discontinues the restraint
every 15 minutes to determine whether the pupil will stop or control his
inappropriate behavior without the use of the restraint;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (g) The
record of the pupil contains a notation that includes the time of day that the
restraint was lessened or discontinued pursuant to paragraph (f), the response
of the pupil and the response of the member of the staff of the private school
who applied the mechanical restraint;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (h) A
member of the staff of the private school continuously monitors the pupil
during the time that mechanical restraint is used on the pupil; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (i) The
mechanical restraint is used only for the period that is necessary to contain
the behavior of the pupil so that the pupil is no longer an immediate threat of
causing physical injury to himself or others or causing severe property damage.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  Mechanical
restraint may be used on a pupil with a disability and the provisions of
subsection 1 do not apply if the mechanical restraint is used to:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Treat
the medical needs of the pupil;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) Protect
a pupil who is known to be at risk of injury to himself because he lacks
coordination or suffers from frequent loss of consciousness;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) Provide
proper body alignment to a pupil; or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (d) Position
a pupil who has physical disabilities in a manner prescribed in the pupil’s
service plan developed pursuant to 34 C.F.R. § 300.455 or the pupil’s
individualized education program, whichever is appropriate.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  If
mechanical restraint is used on a pupil with a disability in an emergency, the
use of the procedure must be reported in the pupil’s cumulative record not
later than 1 working day after the procedure is used. A copy of the report must
be provided to the superintendent, the administrator of the private school, the
pupil’s individualized education program team, if applicable, and the parent or
guardian of the pupil. If the administrator of the private school determines
that a denial of the pupil’s rights has occurred, the administrator shall
submit a report to the superintendent in accordance with section 66 of this
act.</span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>4.  As
used in this section, “individualized education program” has the meaning
ascribed to it in 20 U.S.C. § 1414(d)(1)(A).</span></span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3246"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3246 (<a href="#Stats199920_CH597">CHAPTER 597, AB 280</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><b>      Sec. 62. <span class=newLang><span
style='color:blue'> 1.  If a private school provides
instruction to pupils with disabilities, the school shall develop a program of
education for the members of the staff of the school who provide services to
pupils with disabilities. The program of education must provide instruction in
positive behavioral interventions and positive behavioral supports that:</span></span></b></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Includes
positive methods to modify the environment of pupils with disabilities to
promote adaptive behavior and reduce the occurrence of inappropriate behavior;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) Includes
methods to teach skills to pupils with disabilities so that the pupils can
replace inappropriate behavior with adaptive behavior;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) Includes
methods to enhance the independence and quality of life for pupils with
disabilities;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (d) Includes
the use of the least intrusive methods to respond to and reinforce the behavior
of pupils with disabilities; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (e) Offers
a process for deigning interventions based upon the pupil that are focused on
promoting appropriate changes in behavior as well as enhancing the overall
quality of life for the pupil.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  If
a private school provides instruction to pupils with disabilities, the school
shall provide appropriate training for the members of the staff of the school
who are authorized to carry out and monitor physical restraint and mechanical
restraint to ensure that those members of the staff are qualified to carry out
the procedures in accordance with sections 47 to 66, inclusive, of this act.</span></span></p>

<p class="SectBody"><b>      Sec. 63. <span class=newLang><span
style='color:blue'> In addition to any penalty prescribed by specific
statute, a person who intentionally uses aversive intervention on a pupil with
a disability or intentionally violates section 59 of this act, is subject to
appropriate disciplinary action by the private school that employs him.</span></span></b></p>

<p class="SectBody"><b>      Sec. 64. </b> <span class=newLang><span
style='color:blue'>1.  A private school where a violation of
sections 47 to 66, inclusive, of this act occurs shall report the violation to
the superintendent not later than 24 hours after the violation occurred, or as
soon thereafter as the violation is discovered.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  The
private school where a violation occurred shall develop, in cooperation with
the superintendent, a corrective plan to ensure that within 30 calendar days
after the violation occurred, appropriate action is taken by the private school
to prevent future violations.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  The
superintendent shall submit the plan to the department. The department shall
review the plan to ensure that it complies with applicable federal law and the
statutes and regulations of this state. The department may require appropriate
revision of the plan to ensure compliance.</span></span></p>

<p class="SectBody"><b>      Sec. 65. </b> <span class=newLang><span
style='color:blue'>An officer, administrator or employee of a private school
shall not retaliate against any person for having:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      1.  Reported
a violation of sections 47 to 66, inclusive, of this act; or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  Provided
information regarding a violation of sections 47 to 66, inclusive, of this act,</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>by a private
school or a member of the staff of the private school.</span></span></p>

<p class="SectBody"><b>      Sec. 66. </b> <span class=newLang><span
style='color:blue'>1.  A denial of rights of a pupil with a
disability pursuant to sections 47 to 66, inclusive, of this act must be
entered in the pupil’s cumulative record. Notice of the denial must be provided
to the administrator of the private school. </span></span></p>

<span class=newLang><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:blue;font-weight:normal'><br clear=all style='page-break-before:always'>
</span></span>

<p class="StatsPageBreak"><a name="Stats199920page3247"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3247 (<a href="#Stats199920_CH597">CHAPTER 597, AB 280</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  If
the administrator of a private school receives notice of a denial of rights
pursuant to subsection 1, he shall cause a full report to be prepared which
must set forth in detail the factual circumstances surrounding the denial. A
copy of the report must be provided to the superintendent.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  The
superintendent:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Shall
receive reports made pursuant to subsection 2;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) May
investigate apparent violations of the rights of pupils with disabilities; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) May
act to resolve disputes relating to apparent violations.</span></span></p>

<p class="SectBody"><b>      Sec. 67. </b> <b>Chapter 449 of
NRS</b> is hereby amended by adding thereto the provisions set forth as
sections 68 to 86, inclusive, of this act.</p>

<p class="SectBody"><b>      Sec. 68. </b> <span class=newLang><span
style='color:blue'>As used in sections 68 to 86, inclusive, of this act, unless
the context otherwise requires, the words and terms defined in sections 69 to
77, inclusive, of this act have the meanings ascribed to them in those
sections.</span></span></p>

<p class="SectBody"><b>      Sec. 69. </b> <span class=newLang><span
style='color:blue'>“Aversive intervention” means any of the following actions
if the action is used to punish a person with a disability or to eliminate,
reduce or discourage maladaptive behavior of a person with a disability:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      1.  The
use of noxious odors and tastes;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  The
use of water and other mists or sprays;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  The
use of blasts of air;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      4.  The
use of corporal punishment;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      5.  The
use of verbal and mental abuse;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      6.  The
use of electric shock;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      7.  Requiring
a person to perform exercise under forced conditions if the:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Person
is required to perform the exercise because he exhibited a behavior that is
related to his disability;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) Exercise
is harmful to the health of the person because of his disability; or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) Nature
of the person’s disability prevents him from engaging in the exercise;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      8.  Any
intervention, technique or procedure that deprives a person of the use of one
or more of his senses, regardless of the length of the deprivation, including,
without limitation, the use of sensory screens; or</span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>9.  The
deprivation of necessities needed to sustain the health of a person, regardless
of the length of the deprivation, including, without limitation, the denial or
unreasonable delay in the provision of:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Food
or liquid at a time when it is customarily served; or</span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>(b) Medication.
</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>The term does
not include the withholding or withdrawal of life-sustaining treatment in
accordance with NRS 449.626.</span></span></p>

<p class="SectBody"><b>      Sec. 69.5. </b> <span
class=newLang><span style='color:blue'>“Chemical restraint” means the
administration of drugs for the specific and exclusive purpose of controlling
an acute or episodic aggressive behavior when alternative intervention
techniques have failed to limit or control the behavior. The term does not
include the administration of drugs on a regular basis, as prescribed by a
physician, to treat the symptoms of mental, physical, emotional or behavioral
disorders and for assisting a person in gaining self-control over his impulses.</span></span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3248"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3248 (<a href="#Stats199920_CH597">CHAPTER 597, AB 280</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><b>      Sec. 70. </b> <span class=newLang><span
style='color:blue'>“Corporal punishment” means the intentional infliction of
physical pain, including, without limitation, hitting, pinching or striking.</span></span></p>

<p class="SectBody"><b>      Sec. 71. </b> <span class=newLang><span
style='color:blue'>“Electric shock” means the application of electric current
to a person’s skin or body. The term does not include electroconvulsive
therapy.</span></span></p>

<p class="SectBody"><b>      Sec. 72. </b> <span class=newLang><span
style='color:blue'>“Emergency” means a situation in which immediate
intervention is necessary to protect the physical safety of a person or others
from an immediate threat of physical injury or to protect against an immediate
threat of severe property damage.</span></span></p>

<p class="SectBody"><b>      Sec. 73. </b> <span class=newLang><span
style='color:blue'>“Facility” means a facility licensed pursuant to this
chapter that is a psychiatric hospital or a unit of a hospital that is
specifically designated to provide care and services to persons with
psychiatric or developmental disabilities.</span></span></p>

<p class="SectBody"><b>      Sec. 74. </b> <span class=newLang><span
style='color:blue'>“Mechanical restraint” means the use of devices, including,
without limitation, mittens, straps and restraint chairs to limit a person’s
movement or hold a person immobile.</span></span></p>

<p class="SectBody"><b>      Sec. 75. </b> <span class=newLang><span
style='color:blue'>“Person with a disability” means a person who:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      1.  Has
a physical or mental impairment that substantially limits one or more of the
major life activities of the person;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  Has
a record of such an impairment; or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  Is
regarded as having such an impairment.</span></span></p>

<p class="SectBody"><b>      Sec. 76. </b> <span class=newLang><span
style='color:blue'>“Physical restraint” means the use of physical contact to
limit a person’s movement or hold a person immobile. </span></span></p>

<p class="SectBody"><b>      Sec. 77. </b> <span class=newLang><span
style='color:blue'>“Verbal and mental abuse” means actions or utterances that
are intended to cause and actually cause severe emotional distress to a person.</span></span></p>

<p class="SectBody"><b>      Sec. 78. <span class=newLang><span
style='color:blue'> A person employed by a facility licensed pursuant to
this chapter or any other person shall not use any aversive intervention on a
person with a disability who is a patient at the facility.</span></span></b></p>

<p class="SectBody"><b>      Sec. 78.5. </b> <span
class=newLang><span style='color:blue'>Notwithstanding the provisions of
sections 79 to 81.5, inclusive, of this act to the contrary, a facility may use
or authorize the use of physical restraint, mechanical restraint or chemical
restraint on a person with a disability who is a patient if the facility is:</span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>1.  Accredited
by a nationally recognized accreditation association or agency; or</span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>2.  Certified
for participation in the Medicaid or Medicare program,</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>only to the
extent that the accreditation or certification allows the use of such
restraint.</span></span></p>

<p class="SectBody"><b>      Sec. 79. </b> <span class=newLang><span
style='color:blue'>A person employed by a facility licensed pursuant to this
chapter or any other person shall not:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      1.  Except
as otherwise provided in section 80 of this act, use physical restraint on a
person with a disability who is a patient at the facility.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  Except
as otherwise provided in section 81 of this act, use mechanical restraint on a
person with a disability who is a patient at the facility.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  Except
as otherwise provided in section 81.5 of this act, use chemical restraint on a
person with a disability who is a patient at the facility.</span></span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3249"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3249 (<a href="#Stats199920_CH597">CHAPTER 597, AB 280</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><b>      Sec. 80. </b> <span class=newLang><span
style='color:blue'>1. </span></span> <span class=newLang><span
style='color:blue'>Except as otherwise provided in subsection 2, physical
restraint may be used on a person with a disability who is a patient at a
facility only if:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) An
emergency exists that necessitates the use of physical restraint;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) The
physical restraint is used only for the period that is necessary to contain the
behavior of the patient so that the patient is no longer an immediate threat of
causing physical injury to himself or others or causing severe property damage;
and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) The
use of force in the application of physical restraint does not exceed the force
that is reasonable and necessary under the circumstances precipitating the use
of physical restraint.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  Physical
restraint may be used on a person with a disability who is a patient at a
facility and the provisions of subsection 1 do not apply if the physical
restraint is used to:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Assist
the patient in completing a task or response if the patient does not resist the
application of physical restraint or if his resistance is minimal in intensity
and duration;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) Escort
or carry a patient to safety if the patient is in danger in his present
location; or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) Conduct
medical examinations or treatments on the patient that are necessary.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  If
physical restraint is used on a person with a disability who is a patient at a
facility in an emergency, the use of the procedure must be reported as a denial
of rights pursuant to section 86 of this act, regardless of whether the use of
the procedure is authorized by statute. The report must be made not later than
1 working day after the procedure is used. </span></span></p>

<p class="SectBody"><b>      Sec. 81. </b> <span class=newLang><span
style='color:blue'>1.  Except as otherwise provided in subsection
2, mechanical restraint may be used on a person with a disability who is a patient
at a facility only if:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) An
emergency exists that necessitates the use of mechanical restraint;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) A
medical order authorizing the use of mechanical restraint is obtained from the
patient’s treating physician before the application of the mechanical restraint
or not later than 15 minutes after the application of the mechanical restraint;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) The
physician who signed the order required pursuant to paragraph (b) or the
attending physician examines the patient not later than 1 working day
immediately after the application of the mechanical restraint;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (d) The
mechanical restraint is applied by a member of the staff of the facility who is
trained and qualified to apply mechanical restraint;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (e) The
patient is given the opportunity to move and exercise the parts of his body
that are restrained at least 10 minutes per every 60 minutes of restraint;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (f) A
member of the staff of the facility lessens or discontinues the restraint every
15 minutes to determine whether the patient will stop or control his inappropriate
behavior without the use of the restraint;</span></span></p>

<span class=newLang><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:blue;font-weight:normal'><br clear=all style='page-break-before:always'>
</span></span>

<p class="StatsPageBreak"><a name="Stats199920page3250"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3250 (<a href="#Stats199920_CH597">CHAPTER 597, AB 280</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (g) The
record of the patient contains a notation that includes the time of day that
the restraint was lessened or discontinued pursuant to paragraph (f), the
response of the patient and the response of the member of the staff of the
facility who applied the mechanical restraint; </span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (h) A
member of the staff of the facility continuously monitors the patient during
the time that mechanical restraint is used on the patient; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (i) The
patient is released from the mechanical restraint as soon as his behavior no
longer presents an immediate threat to himself or others.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  Mechanical
restraint may be used on a person with a disability who is a patient at a
facility and the provisions of subsection 1 do not apply if the mechanical
restraint is used to:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Treat
the medical needs of a patient;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) Protect
a patient who is known to be at risk of injury to himself because he lacks
coordination or suffers from frequent loss of consciousness;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) Provide
proper body alignment to a patient; or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (d) Position
a patient who has physical disabilities in a manner prescribed in the patient’s
plan of treatment.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  If
mechanical restraint is used on a person with a disability who is a patient at
a facility in an emergency, the use of the procedure must be reported as a
denial of rights pursuant to section 86 of this act, regardless of whether the
use of the procedure is authorized by statute. The report must be made not
later than 1 working day after the procedure is used.</span></span></p>

<p class="SectBody"><b>      Sec. 81.5. </b> <span
class=newLang><span style='color:blue'>1.  Chemical restraint may
only be used on a person with a disability who is a patient at a facility if:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) The
patient has been diagnosed as mentally ill, as defined in NRS 433A.115, and is
receiving mental health services from a facility;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) The
chemical restraint is administered to the patient while he is under the care of
the facility;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) An
emergency exists that necessitates the use of chemical restraint;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (d) A
medical order authorizing the use of chemical restraint is obtained from the
patient’s attending physician or psychiatrist;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (e) The
physician or psychiatrist who signed the order required pursuant to paragraph
(d) examines the patient not later than 1 working day immediately after the
administration of the chemical restraint; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (f) The
chemical restraint is administered by a person licensed to administer
medication.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  If
chemical restraint is used on a person with a disability who is a patient, the
use of the procedure must be reported as a denial of rights pursuant to section
86 of this act, regardless of whether the use of the procedure is authorized by
statute. The report must be made not later than 1 working day after the
procedure is used.</span></span></p>

<p class="SectBody"><b>      Sec. 82. </b> <span class=newLang><span
style='color:blue'>1.  Each facility shall develop a program of
education for the members of the staff of the facility to provide instruction
in positive behavioral interventions and positive behavioral supports that:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Includes
positive methods to modify the environment of patients to promote adaptive
behavior and reduce the occurrence of inappropriate behavior;</span></span></p>

<span class=newLang><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:blue;font-weight:normal'><br clear=all style='page-break-before:always'>
</span></span>

<p class="StatsPageBreak"><a name="Stats199920page3251"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3251 (<a href="#Stats199920_CH597">CHAPTER 597, AB 280</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) Includes
methods to teach skills to patients so that patients can replace inappropriate
behavior with adaptive behavior;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) Includes
methods to enhance a patient’s independence and quality of life; </span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (d) Includes
the use of the least intrusive methods to respond to and reinforce the behavior
of patients; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (e) Offers
a process for designing interventions based upon the patient that are focused
on promoting appropriate changes in behavior as well as enhancing the overall
quality of life for the patient.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  Each
facility shall provide appropriate training for the members of the staff of the
facility who are authorized to carry out and monitor physical restraint and
mechanical restraint to ensure that those members of the staff are competent
and qualified to carry out the procedures in accordance with sections 68 to 86,
inclusive, of this act.</span></span></p>

<p class="SectBody"><b>      Sec. 83. </b> <span class=newLang><span
style='color:blue'>1.  Unless a more severe penalty is prescribed
by specific statute, a person who willfully uses aversive intervention on a
person with a disability who is a patient at a facility or, except as otherwise
provided in section 78.5 of this act, violates section 79 of this act: </span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) For
a first violation that does not result in substantial bodily harm to the person
with a disability, is guilty of a gross misdemeanor.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) For
a first violation that results in substantial bodily harm to the person with a
disability, is guilty of a category B felony.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) For
a second or subsequent violation, is guilty of a category B felony.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>A person who is
convicted of a category B felony pursuant to this section shall be punished by
imprisonment in the state prison for a minimum term of not less than 1 year and
a maximum term of not more than 6 years, or by a fine of not more than $5,000,
or by both fine and imprisonment.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  A
person who is convicted pursuant to this section is ineligible for 5 years for
employment with a facility.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  A
conviction pursuant to this section is, when applicable, grounds for
disciplinary action against the person so convicted and the facility where the
violation occurred. The health division may recommend to the appropriate agency
or board the suspension or revocation of the professional license,
registration, certificate or permit of a person convicted. </span></span></p>

<p class="SectBody"><b>      Sec. 84. </b> <span class=newLang><span
style='color:blue'>1.  A facility where a violation of the
provisions of sections 68 to 86, inclusive, of this act occurs shall report the
violation to the health division not later than 24 hours after the violation
occurred, or as soon thereafter as the violation is discovered.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  A
facility where a violation occurred shall develop, in cooperation with the
health division, a corrective plan to ensure that within 30 calendar days after
the violation occurred, appropriate action is taken by the facility to prevent
future violations.   </span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  The
health division shall forward the plan to the board. The board shall review the
plan to ensure that it complies with applicable federal law and the statutes
and regulations of this state. The board may require appropriate revision of
the plan to ensure compliance.</span></span></p>

<span class=newLang><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:blue;font-weight:normal'><br clear=all style='page-break-before:always'>
</span></span>

<p class="StatsPageBreak"><a name="Stats199920page3252"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3252 (<a href="#Stats199920_CH597">CHAPTER 597, AB 280</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      4.  If
the facility where the violation occurred does not meet the requirements of the
plan to the satisfaction of the board, the board may direct the agency that
administers funding for the facility to withhold state funding for the facility
until the facility meets the requirements of the plan.</span></span></p>

<p class="SectBody"><b>      Sec. 85. </b> <span class=newLang><span
style='color:blue'>An officer, administrator or employee of a facility licensed
pursuant to this chapter shall not retaliate against any person for having:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      1.  Reported
a violation of sections 68 to 86, inclusive, of this act; or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  Provided
information regarding a violation of sections 68 to 86, inclusive, of this act,</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>by a facility or
a member of the staff of the facility</span></span>.</p>

<p class="SectBody"><b>      Sec. 86. <span class=newLang><span
style='color:blue'> 1.  A denial of rights of a person with a
disability who is a patient of a facility pursuant to sections 68 to 86,
inclusive, of this act must be entered in the patient’s record. Notice of the
denial must be provided to the administrator of the facility. </span></span></b></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  If
the administrator of a facility receives notice of a denial of rights pursuant
to subsection 1, he shall cause a full report to be prepared which must set
forth in detail the factual circumstances surrounding the denial. A copy of the
report must be provided to the health division. </span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  The
health division:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) Shall
receive reports made pursuant to subsection 2;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) May
investigate apparent violations of the rights of persons with disabilities who
are patients at facilities; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) May
act to resolve disputes relating to apparent violations.</span></span></p>

<p class="SectBody"><b>    Sec. 87. </b> <b>NRS 449.730</b> is
hereby amended to read as follows:</p>

<p class="SectBody">    449.730  <span class=newLang><span
style='color:blue'>1.  </span></span>Every medical facility,
facility for the dependent and home for individual residential care shall
inform each patient or his legal representative, upon his admission to the
facility or home, of the patient’s rights as listed in NRS 449.700, 449.710 and
449.720.</p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    2.  In
addition to the requirements of subsection 1, if a person with a disability is
a patient at a facility, as that term is defined in section 73 of this act, the
facility shall inform the patient of his rights pursuant to sections 68 to 86,
inclusive, of this act. </span></span></p>

<p class="SectBody"><b>      Sec. 88. </b> <b>NRS 449.850</b>
is hereby amended to read as follows:</p>

<p class="SectBody">    449.850<span class=Empty> </span> 1.  The
attorney in fact may not consent to:</p>

<p class="SectBody">    (a) Commitment or placement of the principal in a
facility for treatment of mental illness;</p>

<p class="SectBody">    (b) Convulsive treatment;</p>

<p class="SectBody">    (c) Psychosurgery;</p>

<p class="SectBody">    (d) Sterilization;</p>

<p class="SectBody">    (e) Abortion; <span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>or<b>]</b></span></span></p>

<p class="SectBody">    (f) <span class=newLang><span style='color:blue'>Aversive
intervention, as that term is defined in section 69 of this act; or</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    (g) </span></span>Any
other treatment to which the principal, in the power of attorney, states that
the attorney in fact may not consent.</p>

<p class="SectBody">    2.  The attorney in fact must make decisions
concerning the use or nonuse of life sustaining treatment which conform to the
known desires of the principal. The principal may make these desires known in
the power of attorney.</p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3253"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3253 (<a href="#Stats199920_CH597">CHAPTER 597, AB 280</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><b>      Sec. 89. </b> The amendatory
provisions of this act do not apply to offenses that were committed before
October 1, 1999.</p>

<p class="SectBody"><b>      Sec. 90.  </b>Section 20 of this
act becomes effective at 12:01 a.m. on October 1, 1999.</p>

<p class="SectBody" align=center style='text-align:center'>________</p>

<p class="SectBody" align=center style='text-align:center'> </p>

<p class="DocHeading"><a name="Stats199920_CH598"></a><span style='display:none;
font-weight:normal'>CHAPTER 598, SB 556</span></p>

<p class="SectBody" align=center style='text-align:center'>Senate Bill No.
556–Committee on Finance</p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.0pt'> </p>

<p class="statChapter">CHAPTER<span class=AdvanceChapter> 598</span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'> </span></p>

<p class="MsoNormal" style='margin-left:30.25pt;text-indent:-30.25pt;line-height:
8.0pt'><span style='font-size:8.0pt'>AN ACT relating to health care; creating a
task force on the policy of the State of Nevada concerning access to public
health services; making an appropriation; and providing other matters properly
relating thereto.</span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'> </span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'>[Approved June 9, 1999]</span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'> </span></p>

<p class="Billupper" align=center style='margin-top:2.0pt;margin-right:.4in;
margin-bottom:0in;margin-left:.4in;margin-bottom:.0001pt;text-align:center;
text-indent:0in;line-height:8.5pt'><span style='font-size:8.0pt'>THE PEOPLE OF
THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, </span></p>

<p class="Billupper" align=center style='margin-top:2.0pt;margin-right:.4in;
margin-bottom:0in;margin-left:.4in;margin-bottom:.0001pt;text-align:center;
text-indent:0in;line-height:8.5pt'><span style='font-size:8.0pt'>DO ENACT AS
FOLLOWS:</span></p>

<p class="MsoNormal"> </p>

<p class="SectBody">      <b>Section 1.</b>  1.  The
task force on the policy of the State of Nevada concerning access to public
health services, consisting of 15 members, is hereby created. The membership of
the task force consists of:</p>

<p class="SectBody">      (a) Nine members appointed by the Governor in
accordance with subsection 2;</p>

<p class="SectBody">      (b) Three members appointed by the Majority
Leader of the Senate in accordance with subsection 3; and</p>

<p class="SectBody">      (c) Three members appointed by the Speaker of the
Assembly in accordance with subsection 3.</p>

<p class="SectBody">      2.  The Governor shall appoint to the task
force:</p>

<p class="SectBody">      (a) One representative of the State of Nevada who
has experience in the field of health care;</p>

<p class="SectBody">      (b) One representative of the Nevada State
Medical Association;</p>

<p class="SectBody">      (c) One representative of the Culinary Workers
Union;</p>

<p class="SectBody">      (d) One representative of the insurance industry
of the State of Nevada;</p>

<p class="SectBody">      (e) One representative of Nevadans for Affordable
Health Care;</p>

<p class="SectBody">      (f) One representative of the Nevada Public
Health Foundation;</p>

<p class="SectBody">      (g) One representative of the Nevada Women’s
Lobby;</p>

<p class="SectBody">      (h) One representative of the Nevada Association
of Health Plans; and</p>

<p class="SectBody">      (i) One member of the public.</p>

<p class="SectBody">      3.  The Majority Leader of the Senate and
the Speaker of the Assembly shall each ensure that at least one of the members
whom they appoint to the task force is a member of the minority party.</p>

<p class="SectBody">      4.  The Governor shall select a chairman
and a vice chairman from among the membership of the task force.</p>

<p class="SectBody">      5.  For each day or portion of a day during
which a member of the task force who is a legislator attends a meeting of the
task force or is otherwise engaged in the business of the task force, except
during a regular or special session of the Legislature, he is entitled to
receive the:</p>

<p class="SectBody">      (a) Compensation provided for a majority of the
members of the Legislature during the first 60 days of the preceding session;</p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3254"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3254 (<a href="#Stats199920_CH598">CHAPTER 598, SB 556</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody">      (b) Per diem allowance provided for state
officers and employees generally; and</p>

<p class="SectBody">      (c) Travel expenses provided pursuant to NRS
218.2207.</p>

<p class="SectBody">The compensation, per diem allowances and travel expenses of
the legislative members of the task force must be paid from the legislative
fund.</p>

<p class="SectBody">      6.  Each member of the task force who is
not a legislator:</p>

<p class="SectBody">      (a) Is entitled to receive a salary of $80 for
each day or portion of a day during which he attends a meeting of the task
force; and</p>

<p class="SectBody">      (b) Is entitled to receive the per diem allowance
and travel expenses provided for state officers and employees generally for
each day or portion of a day during which he attends a meeting of the task
force or is otherwise engaged in the business of the task force.</p>

<p class="SectBody">      7.  The Department of Human Resources and
the Division of Insurance of the Department of Business and Industry shall
provide the necessary staff to assist the task force in performing its duties.</p>

<p class="SectBody"><b>      Sec. 2.  </b>1.  The
task force on the policy of the State of Nevada concerning access to public
health services shall appoint a technical advisory committee that consists of
persons who have experience with public health issues to assist the task force
concerning technical issues.</p>

<p class="SectBody">      2.  The technical advisory committee must
include, without limitation, persons who are employed by the University of
Nevada School of Medicine and the dental school to be established in this state
pursuant to Assembly Bill No. 527 of this session and who are recommended by
the Board of Regents of the University of Nevada.</p>

<p class="SectBody"><b>      Sec. 3.  </b>The task force on the
policy of the State of Nevada concerning access to public health services
shall:</p>

<p class="SectBody">      1.  Establish the basic coverage that must
be included in each policy of health insurance and health plan that is issued
in the State of Nevada. To determine the basic coverage, the task force shall
consider public policy and actuarial evidence, including, without limitation,
an analysis of the cost of providing the coverage. The basic coverage must be
established as the minimum coverage to be offered which may be augmented based
upon the needs of insureds or employees and on economic considerations.</p>

<p class="SectBody">      2.  Identify, review and prioritize the
basic health care services, including, without limitation, public health
assessments and screenings, to which all residents of the State of Nevada
should have access, regardless of whether they have health insurance. The task
force shall identify the costs and benefits of providing each of these basic
health care services, including, without limitation, a consideration of at-risk
persons and the clinical consensus on the positive value of each preventative, screening
and primary health care service. The review must include, without limitation, a
review of methods to increase access to health care services for members of
minority groups and other persons who are medically underserved in this state.</p>

<p class="SectBody">      3.  Identify and analyze current public and
private resources within this state that provide health care services and
coverage to persons without health insurance, including, without limitation,
Medicaid, the children’s health insurance program, county indigent health
programs, care provided by hospitals or charities, federally qualified health
centers, clinics of county <span class=Extension>health departments and
community health nurses.</span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3255"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3255 (<a href="#Stats199920_CH598">CHAPTER 598, SB 556</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody">health departments and community health nurses. The analysis
must include, without limitation, a compilation of data concerning:</p>

<p class="SectBody">      (a) Persons in this state who do not have health
insurance;</p>

<p class="SectBody">      (b) The cost of providing health care services to
persons in this state;</p>

<p class="SectBody">      (c) Persons who receive services from the public
and private resources identified by the task force;</p>

<p class="SectBody">      (d) The public health care needs of minority
groups and other persons who are medically underserved and the services
available to these groups and persons; and</p>

<p class="SectBody">      (e) The demographics of persons in this state who
are covered by public or private health insurance and the demographics of
persons in this state who are not covered by public or private health insurance.</p>

<p class="SectBody"><b>      Sec. 4.  </b>1.  The
task force on the policy of the State of Nevada concerning access to public
health services shall sponsor forums throughout the State of Nevada, if money
for the forums is provided by the Nevada Public Health Foundation, to provide
information to the public concerning the work of the task force and to obtain
public comment on the work of the task force.</p>

<p class="SectBody">      2.  The forums must include, without
limitation, participation by providers of public health care, health care
advocacy groups and health care professionals.</p>

<p class="SectBody"><b>      Sec. 5.  </b>1.  The
task force on the policy of the State of Nevada concerning access to public
health services shall hold not less than eight meetings before the 71st session
of the Nevada Legislature convenes, and more frequently if needed.</p>

<p class="SectBody">      2.  In carrying out its duties, the task
force may contract for consulting services and other technical assistance.</p>

<p class="SectBody">      3.  The task force shall, on or before
December 1, 2000, submit written recommendations to the Governor and to the
Director of the Legislative Counsel Bureau for transmission to the 71st session
of the Nevada Legislature. Such recommendations must include, without
limitation, recommendations concerning:</p>

<p class="SectBody">      (a) The structure of, contents of and services
that must be included in a basic plan of health coverage offered to residents
of this state;</p>

<p class="SectBody">      (b) The establishment of minimum public health
services that must be provided to each resident of this state, regardless of
his ability to pay, including, without limitation, preventative care, health
screenings, primary care services and immunizations;</p>

<p class="SectBody">      (c) Potential plans and programs to improve the
quality of health care services provided to members of minority groups and
other persons who are medically underserved and to increase access to health
care services for members of minority groups and other persons who are
medically underserved;</p>

<p class="SectBody">      (d) Methods to provide funding to public health
clinics to enable them to provide health care services to residents of this
state; and</p>

<p class="SectBody">      (e) An estimate of the costs and benefits of
coordinating insurance coverage provided by the private sector with public
health care services.</p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3256"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3256 (<a href="#Stats199920_CH598">CHAPTER 598, SB 556</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><b>      Sec. 6.  </b>1.  There
is hereby appropriated from the state general fund to the Department of Human
Resources the sum of $50,000 for use by the task force on the policy of the
State of Nevada concerning access to public health services to pay for the
costs associated with carrying out the provisions of this act.</p>

<p class="SectBody">      2.  Any remaining balance of the
appropriation made by subsection 1 must not be committed for expenditure after
June 30, 2001, and reverts to the state general fund as soon as all payments of
money committed have been made.</p>

<p class="SectBody"><b>      Sec. 7.  </b>This act becomes
effective on July 1, 1999.</p>

<p class="SectBody" align=center style='text-align:center'>________</p>

<p class="SectBody" align=center style='text-align:center'> </p>

<p class="DocHeading"><a name="Stats199920_CH599"></a><span style='display:none;
font-weight:normal'>CHAPTER 599, SB 445</span></p>

<p class="SectBody" align=center style='text-align:center'>Senate Bill No.
445–Committee on Human Resources and Facilities</p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.0pt'> </p>

<p class="statChapter">CHAPTER<span class=AdvanceChapter> 599</span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'> </span></p>

<p class="MsoNormal" style='margin-left:30.25pt;text-indent:-30.25pt;line-height:
8.0pt'><span style='font-size:8.0pt'>AN ACT relating to education; prescribing
the academic subjects for public schools; requiring the state board of
education to adopt certain courses of study; repealing certain courses of
study; and providing other matters properly relating thereto.</span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'> </span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'>[Approved June 9, 1999]</span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'> </span></p>

<p class="Billupper" align=center style='margin-top:2.0pt;margin-right:.4in;
margin-bottom:0in;margin-left:.4in;margin-bottom:.0001pt;text-align:center;
text-indent:0in;line-height:8.5pt'><span style='font-size:8.0pt'>THE PEOPLE OF
THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, </span></p>

<p class="Billupper" align=center style='margin-top:2.0pt;margin-right:.4in;
margin-bottom:0in;margin-left:.4in;margin-bottom:.0001pt;text-align:center;
text-indent:0in;line-height:8.5pt'><span style='font-size:8.0pt'>DO ENACT AS
FOLLOWS:</span></p>

<p class="MsoNormal"> </p>

<p class="SectBody">      <b>Section 1.  NRS 386.550</b> is
hereby amended to read as follows:</p>

<p class="SectBody">    386.550<span class=Empty>  </span>A charter
school shall:</p>

<p class="SectBody">    1.  Comply with all laws and regulations
relating to discrimination and civil rights.</p>

<p class="SectBody">    2.  Remain nonsectarian, including, without
limitation, in its educational programs, policies for admission and employment
practices.</p>

<p class="SectBody">    3.  Refrain from charging tuition or fees,
levying taxes or issuing bonds.</p>

<p class="SectBody">    4.  Comply with any plan for desegregation
ordered by a court that is in effect in the school district in which the
charter school is located.</p>

<p class="SectBody">    5.  Comply with the provisions of chapter 241
of NRS.</p>

<p class="SectBody">    6.  Schedule and provide annually at least as
many days of instruction as are required of other public schools located in the
same school district as the charter school is located.</p>

<p class="SectBody">    7.  Cooperate with the board of trustees of
the school district in the administration of the achievement and proficiency
examinations administered pursuant to NRS 389.015 to the pupils who are
enrolled in the charter school. </p>

<p class="SectBody">    8.  Comply with applicable statutes and
regulations governing the achievement and proficiency of pupils in this state.</p>

<p class="SectBody">    9.  Provide <span class=newLang><span
style='color:blue'>instruction in the core academic subjects set forth in
subsection 1 of section 4 of this act, as applicable for the grade levels of
pupils who are enrolled in the charter school, and provide </span></span>at
least the courses of instruction that are required of pupils by statute or
regulation for promotion to the next grade or graduation from a public high
school and require the pupils who are enrolled in the charter school to take
those courses of study. This subsection does not preclude a charter school from
offering, or <span class=Extension>requiring the pupils who are enrolled in the
charter school to take, other courses of study that are required by statute or
regulation. </span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3257"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3257 (<a href="#Stats199920_CH599">CHAPTER 599, SB 445</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody">requiring the pupils who are enrolled in the charter school
to take, other courses of study that are required by statute or regulation. </p>

<p class="SectBody">    10.  Provide instruction on acquired immune
deficiency syndrome and the human reproductive system, related to communicable
diseases and sexual responsibility in accordance with NRS 389.065. </p>

<p class="SectBody">    11.  Adhere to the same transportation policy
that is in effect in the school district in which the charter school is
located.</p>

<p class="SectBody">    12.  Adopt a final budget in accordance with
the regulations adopted by the department. A charter school is not required to
adopt a final budget pursuant to NRS 354.598 or otherwise comply with the
provisions of chapter 354 of NRS.</p>

<p class="SectBody"><b>      Sec. 2.  NRS 388.380</b> is hereby
amended to read as follows:</p>

<p class="SectBody">    388.380<span class=Empty>  </span>1.  Except
as otherwise provided in subsection 2, the board of trustees of a school
district in a county whose population is 100,000 or more shall and any other
board of trustees of a school district may:</p>

<p class="SectBody">    (a) Establish and maintain occupational schools or
classes giving instruction in the subjects approved by the state board for
occupational education.</p>

<p class="SectBody">    (b) Raise and expend money for the establishment
and maintenance of occupational schools or classes.</p>

<p class="SectBody">    2.  The board of trustees of each school
district shall incorporate into the curriculum:</p>

<p class="SectBody">    (a) Occupational guidance and counseling<span
class=newLang><span style='color:blue'> </span></span><span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>;<b>]</b></span></span><span
class=newLang><span style='color:blue'> in accordance with NRS 389.180;</span></span>
and</p>

<p class="SectBody">    (b) Technology<span class=newLang><span
style='color:blue'> . </span></span><span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>,</span></span></p>

<p class="SectBody"><span class=oldLang><span style='color:red'>in accordance
with the courses of study adopted by the state board pursuant to NRS 389.170
and 389.180.<b>]</b></span></span></p>

<p class="SectBody"><b>      Sec. 3.  Chapter 389 of NRS</b> is
hereby amended by adding thereto the provisions set forth as sections 4 and 5
of this act.</p>

<p class="SectBody"><b>      Sec. 4. </b> <span class=newLang><span
style='color:blue'>1.  The following subjects are designated as the
core academic subjects that must be taught, as applicable for grade levels, in
all public schools, the Caliente youth center and the Nevada youth training
center:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    (a) English,
including reading, composition and writing;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    (b) Mathematics;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    (c) Science;
and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    (d) Social
studies, which includes only the subjects of history, geography, economics and
government.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    2.  Except
as otherwise provided in this subsection, in addition to the core academic
subjects, the following subjects must be taught as applicable for grade levels
and to the extent practicable in all public schools, the Caliente youth center
and the Nevada youth training center:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    (a) The
arts;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    (b) Computer
education and technology;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    (c) Health;
and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    (d) Physical
education.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>If the state
board requires the completion of course work in a subject area set forth in
this subsection for graduation from high school or promotion to the next grade,
a public school shall offer the required course work. </span></span><span
class=Extension>Unless a subject is required for graduation from high school or
promotion to the next grade, a charter school is not required to comply with
this subsection.</span></p>

<span class=newLang><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:blue;font-weight:normal'><br clear=all style='page-break-before:always'>
</span></span>

<p class="StatsPageBreak"><a name="Stats199920page3258"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999 Statutes
of Nevada, Page 3258 (<a href="#Stats199920_CH599">CHAPTER 599, SB 445</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><span class=newLang><span style='color:blue'>Unless a subject
is required for graduation from high school or promotion to the next grade, a
charter school is not required to comply with this subsection.</span></span></p>

<p class="SectBody"><b>      Sec. 5. </b> <span class=newLang><span
style='color:blue'>The state board shall adopt regulations establishing courses
of study and the grade levels for which the courses of study apply for:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    1.  The
academic subjects set forth in section 4 of this act.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    2.  Citizenship
and physical training for pupils enrolled in high school.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    3.  Physiology,
hygiene and cardiopulmonary resuscitation.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    4.  The
prevention of suicide.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    5.  Instruction
relating to child abuse.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    6.  The
economics of the American system of free enterprise.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    7.  American
Sign Language.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    8.  Environmental
education.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    9.  Adult
roles and responsibilities.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>A course of
study established for subsection 1 may include one or more of the subjects
listed in subsections 2 to 9, inclusive.</span></span></p>

<p class="SectBody"><b>      Sec. 6.  NRS 389.010</b> is hereby
amended to read as follows:</p>

<p class="SectBody">    389.010<span class=Empty>  </span>Except as
otherwise provided in NRS <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>389.170 and<b>]</b></span></span> 389.180, boards of trustees
of school districts shall enforce in schools the courses of study prescribed
and adopted by the state board.</p>

<p class="SectBody"><b>      Sec. 7. </b> 1.  The
subjects taught in public schools pursuant to section 4 of this act must be in
accordance with the standards of content and performance established for grade
levels by the council to establish academic standards for public schools
pursuant to section 45 of chapter 473, Statutes of Nevada 1997, at page 1780.</p>

<p class="SectBody">      2.  The courses of study<span
class=newLang><span style='color:blue'> </span></span>established by the state
board of education pursuant to subsection 1 of section 5 of this act must
comply with and carry out the standards of content and performance that are
submitted to the state board of education by the council to establish academic
standards for public schools pursuant to section 45 of chapter 473, Statutes of
Nevada 1997, at page 1780.</p>

<p class="SectBody"><b>      Sec. 8. </b> <b>NRS 389.050,
389.060, 389.063, 389.075, 389.080, 389.083, 389.085, 389.110, 389.120,
389.130, 389.140, 389.170 and 389.190</b> are hereby repealed.</p>

<p class="SectBody"><b>      Sec. 9.  </b>1.  This
section and sections 2 to 8, inclusive, of this act become effective on July 1,
1999.</p>

<p class="SectBody">      2.  Section 1 of this act becomes effective
at 12:01 a.m. on July 1, 1999.</p>

<p class="SectBody" align=center style='text-align:center'>________</p>

<p class="SectBody" align=center style='text-align:center'> </p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3259"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3259<span style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="DocHeading"><a name="Stats199920_CH600"></a><span style='display:none;
font-weight:normal'>CHAPTER 600, SB 438</span></p>

<p class="SectBody" align=center style='text-align:center'>Senate Bill No.
438–Committee on Commerce and Labor</p>

<p class="MsoNormal"> </p>

<p class="statChapter">CHAPTER<span class=AdvanceChapter> 600</span></p>

<p class="MsoNormal"> </p>

<p class="MsoNormal" style='margin-left:30.25pt;text-indent:-30.25pt;line-height:
8.0pt'><span style='font-size:8.0pt'>AN ACT relating to utilities; providing
for the appointment of hearing officers to conduct proceedings before the
public utilities commission of Nevada; revising the provisions governing
recoverable costs; providing for the provision of basic electric services
during the period of transition to a competitive market; providing for an
auction of the right to provide such electric services; making various changes
related to the provision of electricity in a competitive market; revising the
provisions governing the statutory deadline by which customers may begin
obtaining potentially competitive services; repealing provisions relating to
deferred accounting; authorizing the use of the name or logo of a provider of a
noncompetitive service by an affiliate of a provider of electric services or a
provider of natural gas; and providing other matters properly relating thereto.</span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'> </span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'>[Approved June 9, 1999]</span></p>

<p class="Billupper" align=center style='text-align:center;text-indent:0in;
line-height:8.5pt'><span style='font-size:8.0pt'> </span></p>

<p class="Billupper" align=center style='margin-top:2.0pt;margin-right:.4in;
margin-bottom:0in;margin-left:.4in;margin-bottom:.0001pt;text-align:center;
text-indent:0in;line-height:8.5pt'><span style='font-size:8.0pt'>THE PEOPLE OF
THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, </span></p>

<p class="Billupper" align=center style='margin-top:2.0pt;margin-right:.4in;
margin-bottom:0in;margin-left:.4in;margin-bottom:.0001pt;text-align:center;
text-indent:0in;line-height:8.5pt'><span style='font-size:8.0pt'>DO ENACT AS
FOLLOWS:</span></p>

<p class="MsoNormal"> </p>

<p class="SectBody">      <b>Section 1.</b>  <b>NRS 703.130</b>
is hereby amended to read as follows:</p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      </span></span>703.130<span
class=Empty>  </span>1.  The commission shall appoint a
deputy commissioner who shall serve in the unclassified service of the state.</p>

<p class="SectBody">      2.  The commission shall appoint a
secretary who shall perform such administrative and other duties as are
prescribed by the commission. The commission shall also appoint an assistant
secretary.</p>

<p class="SectBody">      3.  The commission may employ such other
clerks, experts or engineers as may be necessary.</p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      4.  The
commission may appoint one or more hearing officers for a period specified by
the commission to conduct proceedings or hearings that may be conducted by the
commission pursuant to chapters 704, 704A, 705, 708 and 711 of NRS. The
commission shall prescribe by regulation the procedure for appealing a decision
of a hearing officer to the commission.</span></span></p>

<p class="SectBody"><b>      Sec. 2.  Chapter 704 of NRS</b> is
hereby amended by adding thereto the provisions set forth as sections 3 to 6,
inclusive, of this act.</p>

<p class="SectBody"><b>      Sec. 3. </b> <span class=newLang><span
style='color:blue'>1.  A vertically integrated electric utility
that is in existence on January 1, 1999, or its successor electric distribution
utility or any assignee of the utility shall comply with the terms of any
existing obligations for the purchase of power.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  To
recover any costs associated with an obligation for the purchase of power, a
vertically integrated electric utility in existence on January 1, 1999, or its
successor electric distribution utility or any assignee of the utility must
demonstrate to the commission that it has made reasonable efforts to reduce the
cost or increase the value of the obligation, including, without limitation,
by: </span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>(a) Evaluating
the costs and benefits of the obligation and analyzing whether there are any
reasonable options under the existing provisions of the obligation that may
reduce the costs or increase the benefits of the obligation;</span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>(b) Reporting
on the good faith attempts by the utility or its assignee to seek an increase
in value or reduction in cost from the provider of the purchased power under
the existing provisions of the obligation;</span></span></p>

<span class=newLang><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:blue;font-weight:normal'><br clear=all style='page-break-before:always'>
</span></span>

<p class="StatsPageBreak"><a name="Stats199920page3260"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3260 (<a href="#Stats199920_CH600">CHAPTER 600, SB 438</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) Showing
that the utility or its assignee has exercised to the extent practicable the
terms of the existing obligation to mitigate the cost of the obligation or has
assessed the value of retaining the obligation;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (d) Providing
a citation to an order of the commission approving the obligation, or if such
an order does not exist or is not available, providing all information,
including, without limitation, any actions or statements by the commission or
any state or federal agency, that demonstrates the commitment of the utility or
its assignee to the obligation; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (e) Providing
all information indicating the extent to which the rates previously established
by the commission have compensated shareholders for the risk of not recovering the
costs of the obligation.</span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>3.  The
provisions of this section must not be construed to allow the commission, by
direct or indirect action, to modify or terminate any obligation for the
purchase of power in effect on June 1, 1999</span></span>.</p>

<p class="SectBody"><b>      Sec. 4. </b> <span class=newLang><span
style='color:blue'>The commission shall, for each class of customers of
electric service in this state, establish a total rate for the components of
electric service that are necessary to provide electric service to customers in
this state pursuant to subsection 1 of NRS 704.982. The total rate for each
class must be established at and must not exceed the total rate for each class
of customers of electric service in this state which is in effect on July 1,
1999, except that the commission shall modify the rates to account for the
effects of any decisions by the commission relating to any cases filed with the
commission before October 1, 1999, which involve the use of deferred
accounting. Upon approval by the commission, the provider designated pursuant
to subsection 1 of NRS 704.982 may reduce the total rate for any class of
customers. The total rates established pursuant to this subsection do not apply
to any customer who obtains generation, aggregation or any other potentially
competitive service from an alternative seller.</span></span></p>

<p class="SectBody"><b>      Sec. 5. </b> <span class=newLang><span
style='color:blue'>1.  The provider of electric service designated
pursuant to subsection 1 of NRS 704.982 is entitled to recover only from the
gain, if any, from the sale by the provider of its generation assets any
shortfall during the period commencing on March 1, 2000, or such other date
that is determined to be in the public interest by the governor pursuant to NRS
704.976, and ending on March 1, 2003, that results from the netting of any
difference between:</span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>(a) The
revenues generated by the total rates charged to all classes of customers
pursuant to section 4 of this act; and</span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>(b) The
total cost incurred by the provider to provide that service to all classes of
customers. </span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  Upon
approval of the amount of the net shortfall, if any, the commission shall
authorize the designated provider to recover that amount from the gain if any,
on the sale of its generation assets, after the deduction of any taxes.</span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>3.  As
used in this section, “total cost incurred by the provider” means the total
revenues generated by all classes by the rates in effect on July 1, 1999, as
adjusted to account for the effects of any decision of the commission relating
to any cases filed with the commission before October 1, 1999, which involve
the use of deferred accounting.</span></span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3261"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3261 (<a href="#Stats199920_CH600">CHAPTER 600, SB 438</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><b>      Sec. 6. </b> <span class=newLang><span
style='color:blue'>1.  At any time after July 1, 2001, a licensed
alternative seller may submit to the commission an offer to provide electric
service that is being provided by the provider designated pursuant to
subsection 1 of NRS 704.982. The offer must:</span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>(a) Request
to serve at least 10 percent of the load of the provider designated pursuant to
subsection 1 of NRS 704.982;</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (b) Provide
that the service will be provided by the alternative seller to more than one
class of customers; and</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (c) Provide
that there will be a discount of 5 percent off the rate prescribed in
subsection 2 of NRS 704.982.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      2.  Upon
the receipt of such an offer, the commission may conduct an auction if the
commission determines that it is in the public interest to conduct such an
auction. If the commission determines that such an auction is in the public
interest, the commission shall conduct the auction as soon as practicable. The
commission shall determine the terms and conditions for continued service by
the successful bidder at the auction. Any licensed alternative seller or
affiliate of an electric distribution utility may submit a bid. Bidding must be
done by sealed bid. Each bid must be not less than 10 percent of the load, as
measured in megawatts or megawatt hours, of the load of the provider designated
pursuant to subsection 1 of NRS 704.982.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      3.  The
commission shall review the bids. If the successful bidder is an alternative
seller or an affiliate of an electric distribution utility other than the
electric distribution utility that provided the service before the auction, the
successful bidder becomes the provider of the service for the percentage of the
load as indicated in its bid. For the remainder of the load that is not awarded
to a successful bidder, the electric distribution utility which provided
service to the customers before the auction remains the provider of the
service, and that service must continue to be provided under the same terms and
conditions as existed for the provision of that service by the electric
distribution utility immediately before the auction.</span></span></p>

<p class="SectBody"><b>      Sec. 7.  NRS 704.110</b> is hereby
amended to read as follows:</p>

<p class="SectBody">    704.110<span class=Empty>  </span>Except as
otherwise provided in NRS 704.075 or as otherwise provided by the commission
pursuant to NRS 704.095 or 704.097:</p>

<p class="SectBody">    1.  Whenever there is filed with the
commission any schedule stating a new or revised individual or joint rate or
charge, or any new or revised individual or joint regulation or practice
affecting any rate or charge, or any schedule resulting in a discontinuance,
modification or restriction of service, the commission may, upon complaint or
upon its own motion without complaint, at once, without answer or formal pleading
by the interested utility, investigate or, upon reasonable notice, conduct a
hearing concerning the propriety of the rate, charge, classification,
regulation, discontinuance, modification, restriction or practice.</p>

<p class="SectBody">    2.  Pending the investigation or hearing and
the decision thereon, the commission, upon delivering to the utility affected
thereby a statement in writing of its reasons for the suspension, may suspend
the operation of the schedule and defer the use of the rate, charge,
classification, regulation, discontinuance, modification, restriction or
practice, but not for more than 150 days beyond the time when the rate, charge,
classification, regulation, <span class=Extension>discontinuance, modification,
restriction or practice would otherwise go into effect.</span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3262"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3262 (<a href="#Stats199920_CH600">CHAPTER 600, SB 438</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody">discontinuance, modification, restriction or practice would
otherwise go into effect.</p>

<p class="SectBody">    3.  Whenever there is filed with the
commission any schedule stating an increased individual or joint rate or charge
for service or equipment, the public utility shall submit with its application
a statement showing the recorded results of revenues, expenses, investments and
costs of capital for its most recent 12 months for which data were available
when the application was prepared. During any hearing concerning the increased
rates or charges determined by the commission to be necessary, the commission
shall consider evidence in support of the increased rates or charges based upon
actual recorded results of operations for the same 12 months, adjusted for
increased revenues, any increased investment in facilities, increased expenses
for depreciation,<span class=newLang><span style='color:blue'> </span></span>certain
other operating expenses as approved by the commission and changes in the costs
of securities which are known and are measurable with reasonable accuracy at
the time of filing and which will become effective within 6 months after the
last month of those 12 months, but no new rates or charges may be placed into
effect until the changes have been experienced and certified by the utility to
the commission. The commission shall also consider evidence supporting expenses
for depreciation, calculated on an annual basis, applicable to major components
of the public utility’s plant placed into service during the recorded test
period or the period for certification as set forth in the application.
Adjustments to revenues, operating expenses and costs of securities must be
calculated on an annual basis. Within 90 days after the filing with the
commission of the certification required in this subsection, or before the
expiration of any period of suspension ordered pursuant to subsection 2,
whichever time is longer, the commission shall make such order in reference to
those rates or charges as is required by this chapter.</p>

<p class="SectBody">    4.  After full investigation or hearing,
whether completed before or after the date upon which the rate, charge,
classification, regulation, discontinuance, modification, restriction or
practice is to go into effect, the commission may make such order in reference
to the rate, charge, classification, regulation, discontinuance, modification,
restriction or practice as would be proper in a proceeding initiated after the
rate, charge, classification, regulation, discontinuance, modification,
restriction or practice has become effective.</p>

<p class="SectBody">    5.  <span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>Whenever an application
is filed by a public utility for an increase in any rate or charge based upon
increased costs in the purchase of fuel or power, and the public utility has
elected to use deferred accounting for costs of the purchase of fuel or power
in accordance with the commission’s regulations, the commission, by appropriate
order after a public hearing, shall allow the public utility to clear the
deferred account not more often than every 6 months by refunding any credit
balance or recovering any debit balance over a period not to exceed 1 year as
determined by the commission. The commission shall not allow a recovery of a
debit balance or any portion thereof in an amount which would result in a rate
of return in excess of the rate of return most recently granted the public
utility.</span></span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3263"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3263 (<a href="#Stats199920_CH600">CHAPTER 600, SB 438</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><span class=oldLang><span style='color:red'>    6.<b>]</b></span></span> Except
as otherwise provided in subsection <span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>7,<b>]</b></span></span><span
class=newLang><span style='color:blue'> 6,</span></span> whenever a general
rate application for an increased rate or charge for, or classification,
regulation, discontinuance, modification, restriction or practice involving
service or equipment has been filed with the commission, a public utility shall
not submit another general rate application until all pending general rate
applications for increases in rates submitted by that public utility have been
decided unless, after application and hearing, the commission determines that a
substantial financial emergency would exist if the other application is not
permitted to be submitted sooner.</p>

<p class="SectBody">    <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>7.<b>]</b></span></span><span class=newLang><span
style='color:blue'> 6.</span></span>  A public utility may
not file an application to recover the increased cost of purchased fuel,
purchased power, or natural gas purchased for resale more often than once every
30 days.</p>

<p class="SectBody">    <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>8.<b>]</b></span></span><span class=newLang><span
style='color:blue'> 7.</span></span>  A utility facility
identified in a 3-year plan submitted pursuant to NRS 704.741 and accepted by
the commission for acquisition or construction pursuant to NRS 704.751 and the
regulations adopted pursuant thereto shall be deemed to be a prudent
investment. The utility may recover all just and reasonable costs of planning
and constructing such a facility.</p>

<p class="SectBody"><b>      Sec. 8.  NRS 704.185</b> is hereby
amended to read as follows:</p>

<p class="SectBody">    704.185<span class=Empty>  </span>1.  A
public utility which purchases <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>fuel, including<b>]</b></span></span> natural gas for resale<span
class=newLang><span style='color:blue'> </span></span><span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>, or power<b>]</b></span></span>
may record upon its books and records all cost increases or decreases in <span
class=oldLang><b><span style='color:red'>[</span></b><span style='color:red'>fuels
or purchased power<b>]</b></span></span><span class=newLang><span
style='color:blue'> the natural gas purchased for resale</span></span> in
deferred accounts. Any public utility which utilizes deferred accounting to
reflect changes in costs of <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>fuels and purchased power<b>]</b></span></span><span
class=newLang><span style='color:blue'> natural gas purchased for resale</span></span>
shall include in its annual report to the commission a statement showing the
allocated rate of return for each of its operating departments in Nevada which
uses deferred accounting.</p>

<p class="SectBody">      2.  If the rate of return for any
department using deferred accounting is greater than the rate of return allowed
by the commission in the last rate proceeding, the commission shall order the
utility which recovered any <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>deferred fuel and purchased power<b>]</b></span></span> costs
<span class=newLang><span style='color:blue'>of natural gas purchased for
resale </span></span>through rates during the reported period to transfer to
the next energy adjustment period that portion of such recovered amounts which
exceeds the authorized rate of return.</p>

<p class="SectBody"><b>      Sec. 9.  NRS 704.965</b> is hereby
amended to read as follows:</p>

<p class="SectBody">    704.965<span class=Empty>  </span>As used in
NRS 704.965 to 704.990, inclusive, <span class=newLang><span style='color:blue'>and
sections 3 to 6, inclusive, of this act, </span></span>unless the context
otherwise requires, the words and terms defined in NRS 704.966 to 704.975,
inclusive, have the meanings ascribed to them in those sections.</p>

<p class="SectBody"><b>      Sec. 10.  NRS 704.970</b> is
hereby amended to read as follows:</p>

<p class="SectBody">    704.970<span class=Empty>  </span>“Electric
distribution utility” means a utility that is in the business of supplying
noncompetitive electric distribution or transmission service, or both, or a
noncompetitive service pursuant to NRS 704.982, on or after <span
class=oldLang><b><span style='color:red'>[</span></b><span style='color:red'>July
1, 1999, or the date on which alternative sellers are authorized to provide
potentially competitive services to customers in this state, as appropriate.<b>]</b></span></span>
<span class=newLang><span style='color:blue'>March 1, 2000, or such other date
that is determined to be in the public interest by the governor pursuant to NRS
704.976.</span></span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3264"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3264 (<a href="#Stats199920_CH600">CHAPTER 600, SB 438</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody"><b>      Sec. 11.  NRS 704.975</b> is
hereby amended to read as follows:</p>

<p class="SectBody">    704.975<span class=Empty>  </span>1.  “Vertically
integrated electric utility” means any public utility in the business of
supplying electricity or its successor in interest that, as of December 31,
1996:</p>

<p class="SectBody">    (a) Held a certificate of public convenience and
necessity issued pursuant to NRS 704.005 to 704.731, inclusive; and</p>

<p class="SectBody">    (b) Had an annual operating revenue of $250,000,000
or more<span class=newLang><span style='color:blue'> </span></span><span
class=oldLang><b><span style='color:red'>[</span></b><span style='color:red'>.<b>]</b></span></span><span
class=newLang><span style='color:blue'> in Nevada.</span></span></p>

<p class="SectBody">    2.  The term does not include a cooperative
association or nonprofit corporation or association or other provider of
electric service, which is declared to be a public utility pursuant to NRS
704.673 and provides service only to its members.</p>

<p class="SectBody"><b>      Sec. 12.  NRS 704.976</b> is
hereby amended to read as follows:</p>

<p class="SectBody">    704.976<span class=Empty>  </span>1.  The
date upon which customers may begin obtaining generation, aggregation<span
class=newLang><span style='color:blue'> , metering, billing</span></span> and
any other potentially competitive services from an alternative seller must be
no later than <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>December 31, 1999,<b>]</b></span></span> <span class=newLang><span
style='color:blue'>March 1, 2000,</span></span> unless the <span class=newLang><span
style='color:blue'>governor, after consultation with the </span></span>commission
<span class=newLang><span style='color:blue'>,</span></span> determines that a
different date is necessary to protect the public interest. <span
class=oldLang><b><span style='color:red'>[</span></b><span style='color:red'>If
the commission determines that a different date is necessary, the commission
shall provide a report to the director of the legislative counsel bureau for
transmittal to the legislature by February 1, 1999, which:</span></span></p>

<p class="SectBody"><span class=oldLang><span style='color:red'>    (a) Explains
the reason that the commission has not granted such an authorization; and</span></span></p>

<p class="SectBody"><span class=oldLang><span style='color:red'>    (b) States
whether the commission will grant such an authorization by December 31, 1999.<b>]</b></span></span></p>

<p class="SectBody">    2.  The commission may:</p>

<p class="SectBody">    (a) Establish different dates for the provision of
different services by alternative sellers in different geographic areas; and</p>

<p class="SectBody">    (b) Authorize, in gradual phases, the right <span
class=newLang><span style='color:blue'>of customers </span></span>to buy from
alternative sellers.</p>

<p class="SectBody">    3.  The commission shall determine that an
electric service is a potentially competitive service if provision of the
service by alternative sellers:</p>

<p class="SectBody">    (a) Will not harm any class of customers;</p>

<p class="SectBody">    (b) Will decrease the cost of providing the service
to customers in this state or increase the quality or innovation of the service
to customers in this state;</p>

<p class="SectBody">    (c) Is a service for which effective competition in
the market is likely to develop;</p>

<p class="SectBody">    (d) Will advance the competitive position of this
state relative to surrounding states; and</p>

<p class="SectBody">    (e) Will not otherwise jeopardize the safety and
reliability of the electric service in this state.</p>

<p class="SectBody">    4.  If the commission determines that a
market for a potentially competitive service does not have effective
competition, the commission shall, by regulation, establish the method for
determining prices for the service and the terms and conditions for providing
the service. The regulations must ensure that the pricing method, terms and
conditions are just and reasonable and not unduly discriminatory. The
regulations may include <span class=Extension>pricing alternatives which
authorize the seller to reduce prices below maximum pricing levels specified by
the commission or any other form of alternative pricing which the commission
determines to be consistent with the provisions of this subsection.</span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3265"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3265 (<a href="#Stats199920_CH600">CHAPTER 600, SB 438</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody">pricing alternatives which authorize the seller to reduce
prices below maximum pricing levels specified by the commission or any other
form of alternative pricing which the commission determines to be consistent
with the provisions of this subsection. In determining whether a market for an
electric service has effective competition, the commission shall:</p>

<p class="SectBody">    (a) Identify the relevant market;</p>

<p class="SectBody">    (b) Identify, where feasible, the alternative
sellers that participate and are reasonably expected to participate in the
relevant market; and</p>

<p class="SectBody">    (c) Calculate, where feasible, the market share of
each participant in the market and evaluate the significance of each share.</p>

<p class="SectBody">    5.  On <span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>or before October 1,
2000, the commission shall submit to the director of the legislative counsel
bureau for transmittal to the appropriate legislative committee a report which:</span></span></p>

<p class="SectBody"><span class=oldLang><span style='color:red'>    (a) Evaluates
the effectiveness of competition in the market for each service which customers
have the right to purchase from alternative sellers; and</span></span></p>

<p class="SectBody"><span class=oldLang><span style='color:red'>    (b) Recommends
actions which the legislature should take to increase the effectiveness of
competition in the markets for all potentially competitive services.</span></span></p>

<p class="SectBody"><span class=oldLang><span style='color:red'>    6.  On<b>]</b></span></span>
or before October 1, 2001, an electric service that has been found <span
class=newLang><span style='color:blue'>on or before that date </span></span>to
be potentially competitive shall be deemed to be competitive.</p>

<p class="SectBody">    <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>7.<b>]</b></span></span><span class=newLang><span
style='color:blue'> 6.</span></span>  The commission may
reconsider any determination made pursuant to this section upon its own motion
or upon a showing of good cause by a party requesting a reconsideration. Upon a
finding by the commission that the market for a service previously found not to
have effective competition has become effectively competitive, the commission
shall repeal the regulations which established the pricing methods and the
terms and conditions for providing that service. The commission shall conduct
any proceedings for the reconsideration of any such determination as
expeditiously as practicable considering the current work load of the
commission and the need to protect the public interest.</p>

<p class="SectBody">    <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>8.<b>]</b></span></span> <span class=newLang><span
style='color:blue'>7.</span></span>  A vertically integrated
electric utility shall not provide a potentially competitive service except
through an affiliate <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>:</span></span></p>

<p class="SectBody"><span class=oldLang><span style='color:red'>    (a) On
or after December 31, 1999; or</span></span></p>

<p class="SectBody"><span class=oldLang><span style='color:red'>    (b) The
date on which the commission determines that the service is potentially
competitive,</span></span></p>

<p class="SectBody"><span class=oldLang><span style='color:red'>whichever is
later.<b>]</b></span></span> <span class=newLang><span style='color:blue'>on or
after March 1, 2000, or such other date that is determined to be in the public
interest by the governor pursuant to subsection 1.</span></span></p>

<p class="SectBody"><b>      Sec. 13.  NRS 704.977</b> is
hereby amended to read as follows:</p>

<p class="SectBody">    704.977<span class=Empty>  </span>1.  It
is unlawful for an alternative seller to sell any electric service to a
customer for consumption within this state without having first obtained a
license from the commission to do so.</p>

<p class="SectBody">    2.  <span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>Not later than January 1,
1999, or any different date as determined by the commission pursuant to NRS
704.976, as appropriate, the<b>]</b></span></span><span class=newLang><span
style='color:blue'> The</span></span> commission shall by regulation set forth
the procedures and conditions that alternative sellers must satisfy to obtain a
license to sell any electric services <span class=Extension>to a customer in
this state, including, but not limited to, procedures and conditions relating to:</span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3266"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3266 (<a href="#Stats199920_CH600">CHAPTER 600, SB 438</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody">to a customer in this state, including, but not limited to,
procedures and conditions relating to:</p>

<p class="SectBody">    (a) Safety and reliability of service;</p>

<p class="SectBody">    (b) Financial and operational fitness; and</p>

<p class="SectBody">    (c) Billing practices and customer service,
including the initiation and termination of service.</p>

<p class="SectBody">    3.  If, after reviewing the application of an
alternative seller for a license, the commission finds that the applicant is
qualified to be an alternative seller, the commission shall issue a license to
the applicant.</p>

<p class="SectBody">    4.  The commission may deny the application
of an applicant for a license to operate as an alternative seller and may limit,
suspend or revoke a license issued to an alternative seller if the action is
necessary to protect the interests of the public or to enforce the provisions
of NRS 704.965 to 704.990, inclusive, <span class=newLang><span
style='color:blue'>and sections 3 to 6, inclusive, of this act, </span></span>or
a regulation of the commission.</p>

<p class="SectBody">    5.  In determining whether an applicant is
qualified for a license, whether to deny an application for a license to
operate as an alternative seller or whether to limit, suspend or revoke a
license issued to an alternative seller, the commission may consider whether
the applicant for or holder of the license, or any affiliate thereof, has
engaged in any activities which are inconsistent with effective competition.</p>

<p class="SectBody">    6.  A city, county or other local
governmental entity or a public utility, or any affiliate thereof, which is
authorized to provide electric service within the State of Nevada and which has
an annual operating revenue of less than $250,000,000, <span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>is<b>]</b></span></span><span
class=newLang><span style='color:blue'> becomes</span></span> subject to the
provisions of NRS 704.965 to 704.990, inclusive, <span class=newLang><span
style='color:blue'>and sections 3 to 6, inclusive, of this act, </span></span>and
any regulations adopted <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>by the commission that are in effect<b>]</b></span></span> <span
class=newLang><span style='color:blue'>pursuant thereto, </span></span>on the
date on which the city, county or other local governmental entity or a public
utility, or an affiliate thereof:</p>

<p class="SectBody">    (a) Applies to obtain a license as an alternative
seller; or</p>

<p class="SectBody">    (b) Directly or indirectly attempts to provide, or
act on behalf of an alternative seller in the provision of, electric service in
the territory served by another city, county or other local governmental entity
or public utility, or an affiliate thereof, unless the city, county or other
local governmental entity or public utility, or an affiliate thereof, is
otherwise required or permitted by specific statute to provide such service.</p>

<p class="SectBody">    7.  Notwithstanding the provisions of
subsection 6, a city, county or other local governmental entity or a public
utility, or any affiliate thereof, does not become subject to the provisions of
NRS 704.965 to 704.990, inclusive, <span class=newLang><span style='color:blue'>and
sections 3 to 6, inclusive, of this act, </span></span>or any regulations
adopted pursuant thereto, solely because the city, county or other local
governmental entity or a public utility, or any affiliate thereof, provides
transmission or distribution services to an alternative seller pursuant to a
contract, tariff or requirement of any state or federal law, except that the
city, county or other local governmental entity or public utility, or an
affiliate thereof, shall provide such transmission and distribution services on
an open and nondiscriminatory basis to alternative sellers in accordance with
such standards as the commission may establish by regulation for the provision
of transmission and distribution services in accordance with this subsection.</p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3267"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3267 (<a href="#Stats199920_CH600">CHAPTER 600, SB 438</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody">    8.  Regulations adopted pursuant to
subsection 2:</p>

<p class="SectBody">    (a) Must not be unduly burdensome;</p>

<p class="SectBody">    (b) Must not unnecessarily delay or inhibit the
initiation and development of competition for any service in any market; and</p>

<p class="SectBody">    (c) May establish different requirements for
licensing alternative sellers of:</p>

<p class="SectBody">      (1) Different services; or</p>

<p class="SectBody">      (2) Similar services to different classes of
customers,</p>

<p class="SectBody">whenever such different requirements are appropriate to carry
out the provisions of NRS 704.965 to 704.990, inclusive <span class=oldLang><b><span
style='color:red'>[</span></b></span><s><span style='color:red'>.<span
class=oldLang><b>]</b></span></span></s> <span class=newLang><span
style='color:blue'>, and sections 3 to 6, inclusive, of this act.</span></span></p>

<p class="SectBody">      <span class=newLang><span style='color:blue'>9.  An
alternative seller may combine two or more customers or any group of customers
to provide aggregation service. The commission may not limit the ability of:</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      (a) An
alternative seller to combine customers to provide aggregation service; or</span></span></p>

<p class="SectBody">    <span class=newLang><span style='color:blue'>(b) Customers
to form groups to obtain aggregation service from alternative sellers.</span></span></p>

<p class="SectBody"><b>      Sec. 14.  NRS 704.978</b> is
hereby amended to read as follows:</p>

<p class="SectBody">    704.978<span class=Empty>  </span>1.  The
commission shall prohibit a provider of a noncompetitive service from providing
a potentially competitive service, except through an affiliate of the provider.</p>

<p class="SectBody">    2.  The commission shall require each
provider of a noncompetitive service that is necessary to the provision of a
potentially competitive service to make its facilities or services available to
all alternative sellers on equal and nondiscriminatory terms and conditions.</p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    3.  In
providing a potentially competitive service, an affiliate of a provider of a
noncompetitive service may use the name or logo, or both, of the provider of
noncompetitive service.</span></span></p>

<p class="SectBody"><b>    Sec. 15.  NRS 704.981</b> is hereby
amended to read as follows:</p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    </span></span>704.981<span
class=Empty>  </span>1.  An electric distribution
utility shall provide all noncompetitive services within its territory unless
the commission authorizes another entity to provide the noncompetitive service.</p>

<p class="SectBody">    2.  A noncompetitive service is subject to
NRS 704.001 to 704.655, inclusive, 704.701 to 704.751, inclusive, and 704.800
to 704.900, inclusive.</p>

<p class="SectBody">    3.  <span class=newLang><span
style='color:blue'>The component rates for noncompetitive services established
by the commission pursuant to NRS 704.986 must be used by customers who elect
to receive competitive or potentially competitive services from alternative
sellers or from the Colorado River Commission pursuant to NRS 704.987.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    4.  </span></span>The
commission shall adopt regulations for noncompetitive services that allow
innovative pricing methods for noncompetitive services upon a finding that the
innovative pricing, when compared to pricing of services provided pursuant to
subsections 1 and 2, improves the performance of the service or lowers the cost
of the service to the customer, or both. The regulations for innovative pricing
must specify:</p>

<p class="SectBody">    (a) The provisions that must be included in a plan
of innovative pricing;</p>

<p class="SectBody">    (b) The procedures for submitting an innovative
plan for pricing to the commission for approval and implementation; and</p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3268"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3268 (<a href="#Stats199920_CH600">CHAPTER 600, SB 438</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody">    (c) Which provisions of this chapter do not apply
to pricing changes that are made during the period in which the innovative
pricing plan is in effect.</p>

<p class="SectBody">      <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>4.<b>]</b></span></span> <span class=newLang><span
style='color:blue'>5.</span></span>  The commission shall adopt
regulations which ensure that a person who owns a transmission or distribution
facility, or both, or a facility that provides access to a competitive service
shall make the facilities available on equal and nondiscriminatory terms and
conditions to all alternative sellers or to the customers of the alternative
sellers, or both, as the commission may determine.</p>

<p class="SectBody"><b>      Sec. 16. </b> <b>NRS 704.982</b>
is hereby amended to read as follows:</p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    </span></span>704.982<span
class=Empty>  </span>1.  The commission shall designate
a vertically integrated electric utility <span class=newLang><span
style='color:blue'>or its successor electric distribution utility </span></span>to
provide electric service to customers who are unable to obtain electric service
from an alternative seller or who fail to select an alternative seller. The
provider so designated by the commission is obligated to provide electric
service to the customers. Electric service provided by the utility pursuant to
this section shall be deemed to be a noncompetitive service for which the
utility may recover its costs pursuant to NRS 704.001 to 704.655, inclusive,
704.701 to 704.751, inclusive, and 704.800 to 704.900, inclusive.</p>

<p class="SectBody">    2.  <span class=newLang><span
style='color:blue'>The rate that the designated provider of electric service
must charge a customer for the provision of electric service pursuant to
subsection 1 is the total rate established for that class of customer by the
commission pursuant to section 4 of this act.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    3.  </span></span>Upon
a finding by the commission that the public interest will be promoted, the
commission may prescribe alternate methods for providing electric service to
those customers described in subsection 1. The alternate methods may include,
but are not limited to, the direct assignment of customers to alternative
sellers or electric distribution utilities or a process of competitive bidding
for the right to provide electric service to the designated customers<span
class=newLang><span style='color:blue'> </span></span><span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>. </span></span></p>

<p class="SectBody"><span class=oldLang><span style='color:red'>    3.<b>]</b></span></span><span
class=newLang><span style='color:blue'> , including, without limitation, an
auction conducted pursuant to section 6 of this act. Any alternate methods
prescribed by the commission pursuant to this subsection may not go into effect
before July 1, 2001. </span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    4.  A
customer who has obtained generation, aggregation or any other potentially
competitive service for at least 30 continuous days from an alternative seller
after March 1, 2000, or such other date that is determined to be in the public
interest by the governor pursuant to NRS 704.976, may reacquire service from
the designated provider of electric service pursuant to tariffs approved by the
commission. </span></span>The commission shall establish minimum terms and
conditions under which electric service must be provided pursuant to this
section, including a minimum period during which a customer must be obligated
to pay for the electric service from the assigned provider. The price charged
for electric service for a particular group of customers must reflect the
incremental cost of serving the group.</p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    </span></span><span
class=oldLang><b><span style='color:red'>[</span></b><span style='color:red'>4.<b>]</b></span></span> <span
class=newLang><span style='color:blue'>5.</span></span>  If the
designated provider of the electric service <span class=newLang><span
style='color:blue'>pursuant to subsection 1 </span></span>is a vertically
integrated electric utility, the utility shall provide the electric service<span
class=newLang><span style='color:blue'> on or after July 1, 2001,</span></span>
<span class=newLang><span style='color:blue'>only </span></span>through an
affiliate whose sole business activity is the provision of electric service.</p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3269"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3269 (<a href="#Stats199920_CH600">CHAPTER 600, SB 438</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody">    <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>5.  Except as otherwise provided in this
subsection and subsection 6, the rate charged for residential service provided
pursuant to subsection 1 must not exceed the rate charged for that service on
July 1, 1997. The limitation set forth in this subsection is effective until 2
years after the date upon which, in accordance with NRS 704.976, the commission
repeals the regulations which established the pricing method for that service
and the terms and conditions for providing that service.</span></span></p>

<p class="SectBody"><span class=oldLang><span style='color:red'>    6.  The
commission may, in accordance with NRS 704.110, 704.120 and 704.130, approve an
increase in the rate charged for residential service provided pursuant to
subsection 1 in an amount that does not exceed the increase necessitated, if
any, to ensure the recovery by the vertically integrated electric utility of
its just and reasonable costs. The provisions of this section do not limit or
prohibit in any manner the operation of any order issued by the commission
before July 1, 1997.<b>]</b></span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    6.  Except
upon the application of the designated provider to reduce the total rate for
any class of customers pursuant to section 4 of this act, the commission shall
not initiate or conduct any proceedings to adjust the rates, earnings, rate
base or rate of return of the designated provider of electric service during
the period in which the provider is providing that service to customers
pursuant to this section.</span></span></p>

<p class="SectBody"><b>      Sec. 17.  NRS 704.982</b> is
hereby amended to read as follows:</p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    </span></span>704.982<span
class=Empty>  </span>1.  The commission shall designate
<span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>a vertically integrated electric utility or its successor<b>]</b></span></span><span
class=newLang><span style='color:blue'> an</span></span> electric distribution
utility to provide electric service to customers who are unable to obtain
electric service from an alternative seller or who fail to select an
alternative seller. The provider so designated by the commission is obligated
to provide electric service to the customers. Electric service provided by the
utility pursuant to this section shall be deemed to be a noncompetitive service
for which the utility may recover its costs pursuant to NRS 704.001 to 704.655,
inclusive, 704.701 to 704.751, inclusive, and 704.800 to 704.900, inclusive.</p>

<p class="SectBody">    2.  <span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>The rate that the
designated provider of electric service must charge a customer for the
provision of electric service pursuant to subsection 1 is the total rate
established for that class of customer by the commission pursuant to section 4
of this act.</span></span></p>

<p class="SectBody"><span class=oldLang><span style='color:red'>    3.<b>]</b></span></span>  Upon
a finding by the commission that the public interest will be promoted, the
commission may prescribe alternate methods for providing electric service to
those customers described in subsection 1. The alternate methods may include,
but are not limited to, the direct assignment of customers to alternative
sellers or <span class=newLang><span style='color:blue'>other </span></span>electric
distribution utilities or a process of competitive bidding for the right to
provide electric service to the designated customers, including, without
limitation, an auction conducted pursuant to section 6 of this act. <span
class=oldLang><b><span style='color:red'>[</span></b><span style='color:red'>Any
alternate methods prescribed by the commission pursuant to this subsection may
not go into effect before July 1, 2001. </span></span></p>

<p class="SectBody"><span class=oldLang><span style='color:red'>      4.<b>]</b></span></span><b> <span
class=newLang><span style='color:blue'>3.  </span></span></b>A
customer who has obtained generation, aggregation or any other potentially
competitive service for at least 30 continuous days from an alternative seller <span
class=oldLang><b><span style='color:red'>[</span></b><span style='color:red'>after
March 1, 2000, or such other date that is determined to be in the public
interest by the governor pursuant to NRS 704.976,<b>]</b></span></span> may
reacquire service from the designated provider of electric service pursuant to <span
class=Extension>tariffs approved by the commission.</span></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3270"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3270 (<a href="#Stats199920_CH600">CHAPTER 600, SB 438</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody">tariffs approved by the commission. The commission shall
establish minimum terms and conditions under which electric service must be
provided pursuant to this section, including a minimum period during which a
customer must be obligated to pay for the electric service from the assigned provider.
The price charged for electric service for a particular group of customers must
reflect the incremental cost of serving the group.</p>

<p class="SectBody">    <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>5.<b>]</b></span></span><span class=newLang><span
style='color:blue'> 4.</span></span>  If the designated
provider of the electric service pursuant to subsection 1<span class=newLang><span
style='color:blue'> </span></span>is <span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>a vertically integrated<b>]</b></span></span>
<span class=newLang><span style='color:blue'>an </span></span>electric <span
class=newLang><span style='color:blue'>distribution </span></span>utility, the
utility shall provide the electric service <span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>on or after July 1, 2001,<b>]</b></span></span>
only through an affiliate whose sole business activity is the provision of
electric service.</p>

<p class="SectBody">    <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>6.  Except upon the application of the designated
provider to reduce the total rate for any class of customers pursuant to
section 4 of this act, the commission shall not initiate or conduct any
proceedings to adjust the rates, earnings, rate base or rate of return of the
designated provider of electric service during the period in which the provider
is providing that service to customers pursuant to this section.<b>]</b></span></span></p>

<p class="SectBody"><b>      Sec. 18.  NRS 704.983</b> is
hereby amended to read as follows:</p>

<p class="SectBody">    704.983<span class=Empty>  </span>1.  The
commission shall determine the recoverable costs associated with assets and
obligations that are documented in the accounting records of a vertically
integrated electric utility <span class=newLang><span style='color:blue'>and
its successor electric distribution utility </span></span>and that are properly
allocable to a particular potentially competitive service as of the date on which
alternative sellers of similar potentially competitive services begin providing
such service to customers in this state. Shareholders of the vertically
integrated electric utility must be compensated fully for all such costs
determined by the commission. <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>In<b>]</b></span></span> <span class=newLang><span
style='color:blue'>Except as otherwise provided in section 3 of this act, in</span></span>
determining the recoverable costs, the commission shall take into account:</p>

<p class="SectBody">    (a) The extent to which the utility was legally
required to incur the costs of the assets and obligations <span class=newLang><span
style='color:blue'>. </span></span><span class=oldLang><b><span
style='color:red'>[</span></b></span><s><span style='color:red'>;<span
class=oldLang><b>]</b></span></span></s></p>

<p class="SectBody">    (b) The extent to which the market value of the
assets and obligations of the utility, relating to the provision of potentially
competitive services, exceeds the costs of the assets and obligations <span
class=newLang><span style='color:blue'>. </span></span><span class=oldLang><b><span
style='color:red'>[</span></b></span><s><span style='color:red'>;<span
class=oldLang><b>]</b></span></span></s></p>

<p class="SectBody">    (c) <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>The<b>]</b></span></span> <span class=newLang><span
style='color:blue'>Except as otherwise provided in this paragraph, the</span></span>
effectiveness of the efforts of the utility to increase the market value and
realize the market value of any assets, and to decrease the costs of any
obligations, associated with the provision of potentially competitive services <span
class=newLang><span style='color:blue'>. </span></span><span class=oldLang><b><span
style='color:red'>[</span></b></span><s><span style='color:red'>;<span
class=oldLang><b>]</b></span></span></s><span class=newLang><span
style='color:blue'> If a utility purchases generation services pursuant to the
approval of the appropriate governmental agencies to meet its obligations to
provide electric service pursuant to NRS 704.982 from a generation unit that
the utility has divested, the commission shall not impute a value to the
generation unit other than the sales price of the unit.</span></span></p>

<p class="SectBody">    (d) The extent to which the rates previously
established by the commission have compensated shareholders for the risk of not
recovering the costs of the assets and obligations <span class=newLang><span
style='color:blue'>. </span></span><span class=oldLang><b><span
style='color:red'>[</span></b></span><s><span style='color:red'>;<span
class=oldLang><b>]</b></span></span></s></p>

<p class="SectBody">    (e) The effects of the difference between the
market value and the cost, including, without limitation, tax considerations,
for the assets and obligations <span class=newLang><span style='color:blue'>. </span></span><span
class=oldLang><b><span style='color:red'>[</span></b></span><s><span
style='color:red'>; and<span class=oldLang><b>]</b></span></span></s></p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3271"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3271 (<a href="#Stats199920_CH600">CHAPTER 600, SB 438</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody">    (f) If the utility had the discretion to determine
whether to incur or mitigate the costs, the conduct of the utility with respect
to the costs of the assets and obligations when compared to other utilities
with similar obligations to serve the public.</p>

<p class="SectBody">    2.  <span class=oldLang><b><span
style='color:red'>[</span></b><span style='color:red'>For the purposes of this
section,<b>]</b></span></span> <span class=newLang><span style='color:blue'>If </span></span>the
commission <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>may impose a procedure<b>]</b></span></span><b> <span
class=newLang><span style='color:blue'>determines that costs are recoverable
pursuant to subsection 1, the commission shall, for the purposes of this section
and section 3 of this act, adopt by regulation procedures to provide</span></span></b>
for the direct and unavoidable recovery from ratepayers of the portion of the
past costs which are determined by the commission to be owed by the ratepayers.
The <span class=oldLang><b><span style='color:red'>[</span></b><span
style='color:red'>procedure<b>]</b></span></span><span class=newLang><span
style='color:blue'> procedures</span></span> must include a determination of
the period over which the recovery may occur and include the authority for the
commission to assess charges on those customers on whose behalf the vertically
integrated electric utility incurred costs who are no longer receiving
transmission or distribution service, or both, from the vertically integrated
electric utility. Such determinations and procedures must not discriminate
against a participant in the market.</p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    3.  Failure
by a utility to minimize, in a reasonable and prudent manner, federal taxes
resulting from the offsetting of gains and losses of assets and obligations
properly allocable to a potentially competitive service must be considered by
the commission in determining the recoverable costs for the utility.</span></span></p>

<p class="SectBody"><b>      Sec. 19. </b> <b>NRS 704.984</b>
is hereby amended to read as follows:</p>

<p class="SectBody"><span class=newLang><span style='color:blue'>    </span></span>704.984<span
class=Empty>  </span>A vertically integrated electric utility shall
take such reasonable steps as are necessary to minimize layoffs and any other
adverse effects on the employees of the vertically integrated electric utility
that result from the beginning of provision of potentially competitive services
by alternative sellers.<span class=newLang><span style='color:blue'> In
determining the recoverable costs of the vertically integrated electric utility
pursuant to NRS 704.983, the commission shall consider any reasonable costs
incurred by the vertically integrated electric utility pursuant to this
section, including, without limitation, the costs for severance pay,
retraining, job placement and early retirement for employees of the vertically
integrated electric utility.</span></span></p>

<p class="SectBody"><b>      Sec. 20.  NRS 704.997</b> is
hereby amended to read as follows:</p>

<p class="SectBody">    704.997<span class=Empty>  </span>1.  Upon
the receipt of a specific request for an exemption by a public utility that
supplies natural gas, the commission may, to the extent it deems necessary,
exempt any service offered by the public utility from the strict application of
one or more provisions of this chapter. Such an exemption may be made only upon
a determination by the commission, after notice and an opportunity for a
hearing, that the service is competitive, discretionary or potentially
competitive.</p>

<p class="SectBody">    2.  The commission shall adopt regulations
necessary to establish an alternative plan of regulation of a public utility
that supplies natural gas and that is otherwise subject to regulation pursuant
to the provisions of this chapter. The alternative plan may include, but is not
limited to, provisions that:</p>

<p class="SectBody">    (a) Allow adjustment of the rates charged by the
public utility during the period in which the utility elects the alternative
plan of regulation.</p>

<b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#003300'><br
clear=all style='page-break-before:always'>
</span></b>

<p class="StatsPageBreak"><a name="Stats199920page3272"></a>…………………………………………………………………………………………………………………</p>

<p class="StatsPageBreak"><span style='font-family:Wingdings'>ê</span>1999
Statutes of Nevada, Page 3272 (<a href="#Stats199920_CH600">CHAPTER 600, SB 438</a>)<span
style='font-family:Wingdings'>ê</span></p>

<p class="StatsPageBreak"> </p>

<p class="SectBody">    (b) Specify the provisions of this chapter that do
not apply to a public utility which elects to be regulated under the
alternative plan.</p>

<p class="SectBody">    (c) Provide for flexibility of pricing for services
that are discretionary, competitive or potentially competitive.</p>

<p class="SectBody">    3.  A public utility that elects to be
regulated under the alternative plan established pursuant to this section is
not subject to the remaining provisions of this chapter to the extent specified
pursuant to this section.</p>

<p class="SectBody">    4.  <span class=newLang><span
style='color:blue'>In providing a potentially competitive service, an affiliate
of a provider of a noncompetitive service may use the name or logo, or both, of
the provider of noncompetitive service.</span></span></p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      5.  </span></span>It
is unlawful for an alternative seller to sell any service relating to the
supply of natural gas to a customer for his consumption within this state
without first having obtained a license from the commission to do so.</p>

<p class="SectBody"><span class=newLang><span style='color:blue'>      </span></span><b>Sec. 21. </b> On
or before March 1, 2000, or such other date that is determined to be in the
public interest by the governor pursuant to NRS 704.976, the commission shall,
for the purposes of NRS 704.986, establish for each class of customers of
electric service in this state the rate for each component and a total rate for
electric services for customers based on the cost to provide electric service
to each class of customers in this state. The total rate established for each
class of customers pursuant to this section must be the same as the total rate
for each class of customers that is in effect on June 1, 1999.</p>

<p class="SectBody"><b>      Sec. 22.  </b>On or before March
1, 2000, or such other date that is determined to be in the public interest by
the governor pursuant to NRS 704.976, an alternative seller and a vertically
integrated electric utility may negotiate and enter into a contract with a
customer for the provision of electric service, but no such contract is
effective before March 1, 2000, or such other date that is determined to be in
the public interest by the governor pursuant to NRS 704.976.</p>

<p class="SectBody"><b>      Sec. 23.  </b>This act must not be
construed to impair any existing rights under contracts with customers in
effect on June 1, 1999.</p>

<p class="SectBody"><b>      Sec. 24.  </b>This act must not be
construed to impair any existing rights under any labor agreement to which a
vertically integrated electric utility or its successor electric distribution
utility or an affiliate thereof is a party on July 1, 1999.</p>

<p class="SectBody"><b>      Sec. 25.  </b>1.  This
section and sections 1 to 6, inclusive, 9 to 16, inclusive, 18 to 22,
inclusive, and 26 of this act become effective on July 1, 1999.</p>

<p class="SectBody">      2.  Sections 23 and 24 become effective
upon passage and approval.</p>

<p class="SectBody">      3.  Sections 7 and 8 of this act become
effective on October 1, 1999.</p>

<p class="SectBody">      4.  Sections 4 and 16 expire by limitation
on March 1, 2003.</p>

<p class="SectBody">      5.  Section 5 expires by limitation on
September 1, 2003.</p>

<p class="SectBody">      6.  Section 17 becomes effective on March
1, 2003.</p>

<p class="SectBody"><b>      Sec. 26.  </b>If the pending
merger between Sierra Pacific Resources and Nevada Power Company, referred to in
the records of the Public Utilities Commission of Nevada as Docket No. 98-7023,
is terminated for any reason before the completion of the merger, this act
expires by limitation on the date on which the pending merger is terminated.</p>

<p class="SectBody" align=center style='text-align:center'>________</p>

<p class="SectBody" align=center style='text-align:center'> </p>

<p class="MsoNormal" align=left style='text-align:left;line-height:normal'><b><span
style='font-size:14.0pt;font-family:"Arial","sans-serif"'><a
href="Stats199921.html#Stats199921page3273">Link to Page 3273</a></span></b></p>

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