NEVADA LEGISLATURE

Sixty-ninth Session, 1997
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ASSEMBLY DAILY JOURNAL
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THE ONE HUNDRED AND FIFTEENTH DAY
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Carson City (Wednesday), May 14, 1997

Assembly called to order at 10:51 a.m.
Mr. Speaker presiding.
Roll called.
All present.
Prayer by the Chaplain, The Reverend Jeffrey D. Paul.
Almighty God, give to the members of our Assembly courage, wisdom and foresight to provide for the needs of all our people; to promote their well-being and dignity; and to fulfill our obligations in all the communities of the State of Nevada; in Your Name we pray.

Amen.

Pledge of allegiance to the Flag.

Assemblyman Perkins moved that further reading of the Journal be dispensed with, and the Speaker and Chief Clerk be authorized to make the necessary corrections and additions.
Motion carried.

REPORTS OF COMMITTEES

Mr. Speaker:
Your Committee on Government Affairs, to which was referred Assembly Bill No. 407, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Douglas A. Bache,

Chairman

Mr. Speaker:
Your Committee on Government Affairs, to which was referred Assembly Bill No. 339, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended and re-refer to the Committee on Ways and Means.

Douglas A. Bache,

Chairman

Mr. Speaker:
Your Committee on Taxation, to which were referred Assembly Bill No. 158; Senate Bill No. 232, has had the same under consideration, and begs leave to report the same back with the recommendation: Do pass.

Robert E. Price,

Chairman

MESSAGES FROM THE SENATE

Senate Chamber, Carson City, May 13, 1997

To the Honorable the Assembly:
I have the honor to inform your honorable body that the Senate on this day passed, as amended, Assembly Bill No. 32 and respectfully requests your honorable body to concur in said amendment.
Also, I have the honor to inform your honorable body that the Senate on this day adopted Assembly Concurrent Resolution No. 24.
Also, I have the honor to inform your honorable body that the Senate on this day passed, as amended, Senate Bills Nos. 34, 180, 194.

Mary Jo Mongelli

Assistant Secretary of the Senate

Mr. Speaker announced that if there were no objections, the Assembly would recess subject to the call of the Chair.
Motion carried.

Assembly in recess at 10:57 a.m.

ASSEMBLY IN SESSION

At 10:59 a.m.
Mr. Speaker presiding.
Quorum present.

MOTIONS, RESOLUTIONS AND NOTICES

By the Committee on Transportation:
Assembly Joint Resolution No. 11--Urging Congress to continue transportation enhancement projects in the reauthorization of the Intermodal Surface Transportation Efficiency Act of 1991.
Assemblywoman Chowning moved that the resolution be referred to the Committee on Transportation.
Motion carried.

Assembly Concurrent Resolution No. 10.
Assemblywoman de Braga moved the adoption of the resolution.
Remarks by Assemblywoman de Braga.
Resolution adopted.

INTRODUCTION, FIRST READING AND REFERENCE

By Assemblymen de Braga, Neighbors, Segerblom, Collins, Chowning, Evans, Price, Koivisto, Braunlin, Parks, Ohrenschall, Lee, Bache, Anderson, Arberry, Giunchigliani, Goldwater, Amodei, Manendo and Berman:
Assembly Bill No. 481--An Act relating to the public employees' retirement system; reducing the number of years of service required for the retirement of police officers and firemen; raises the amount of retirement benefit for certain police officers and firemen; and providing other matters properly relating thereto.
Assemblywoman de Braga moved that the bill be referred to the Committee on Government Affairs.
Motion carried.

By the Committee on Taxation:
Assembly Bill No. 482--An Act relating to the tax on motor vehicle fuel; providing in skeleton form for the collection of the tax on certain types of motor vehicle fuel at the terminal rack by suppliers of those types of fuel; prohibiting exporters of certain types of motor vehicle fuel from selling or distributing those types of fuel in this state; providing a penalty; and providing other matters properly relating thereto.
Assemblyman Price moved that the bill be referred to the Committee on Taxation.
Motion carried.

By the Committee on Government Affairs:
Assembly Bill No. 483--An Act relating to telecommunication services; requiring the advocate for customers of public utilities to perform certain duties concerning telecommunication services in this state; imposing a monthly surcharge on telephone service to pay for the costs of carrying out such duties; authorizing the telephone companies and suppliers who collect the surcharge to retain an amount from the surcharge equal to their cost in collecting the surcharge; and providing other matters properly relating thereto.
Assemblyman Bache moved that the bill be referred to the Committee on Government Affairs.
Motion carried.

By the Committee on Judiciary:
Assembly Bill No. 484--An Act relating to property; revising the provisions governing certain procedures for summary eviction; and providing other matters properly relating thereto.
Assemblyman Anderson moved that the bill be referred to the Committee on Judiciary.
Motion carried.

Senate Bill No. 34.
Assemblyman Perkins moved that the bill be referred to the Concurrent Committees on Transportation and Ways and Means.
Motion carried.

Senate Bill No. 180.
Assemblyman Perkins moved that the bill be referred to the Concurrent Committees on Judiciary and Ways and Means.
Motion carried.

Senate Bill No. 194.
Assemblyman Perkins moved that the bill be referred to the Committee on Commerce.
Motion carried.

SECOND READING AND AMENDMENT

Assembly Bill No. 156.
Bill read second time.
The following amendment was proposed by the Committee on Commerce:
Amendment No. 342.
Amend section 1, page 1, line 2, by deleting "23," and inserting "27,".
Amend the bill as a whole by deleting sections 3 through 8, renumbering sec. 9 as sec. 8 and adding new sections designated sections 3 through 7, following sec. 2, to read as follows:
"Sec. 3. "Health care plan" means a policy, contract, certificate or agreement offered or issued by a managed care organization to provide, deliver, arrange for, pay for or reimburse any of the costs of health care services.
Sec. 4. "Insured" means a person who receives benefits under a health care plan.
Sec. 5. "Managed care" means a system for delivering health care services that encourages the efficient use of health care services by using employed or independently contracted providers of health care and by using various techniques which may include, without limitation:
1. Managing the health care services of an insured who has a serious, complicated, protracted or other health-related condition that requires the use of numerous providers of health care or other costly services;
2. Providing utilization review;
3. Offering financial incentives for the effective use of health care services; or
4. Any combination of those techniques.
Sec. 6. "Managed care organization" means any insurer or organization authorized pursuant to this Title to conduct business in this state that provides or arranges for the provision of health care services through managed care.
Sec. 7. "Primary care physician" means a physician or group of physicians who:
1. Provides initial and primary health care services to an insured;
2. Maintains the continuity of care for the insured; and
3. May refer the insured to a specialized provider of health care.".
Amend the bill as a whole by adding a new section designated sec. 9, following sec. 9, to read as follows:
"Sec. 9. "Utilization review" means the various methods that may be used by a managed care organization to review the amount and appropriateness of the provision of a specific health care service to an insured.".
Amend sec. 10, page 2, by deleting lines 28 through 31 and inserting:
"and insurer that operates as a managed care organization and may include, without limitation, an insurer that issues a policy of health insurance, an insurer that issues a policy of individual or group health".
Amend sec. 10, page 2, by deleting lines 36 and 37 and inserting:
"organization shall comply with any".
Amend sec. 11, pages 2 and 3, by deleting lines 39 through 44 on page 2 and lines 1 through 10 on page 3 and inserting:
"Sec. 11. Each managed care organization shall authorize coverage of a health care service that has been recommended for the insured by a provider of health care acting within the scope of his practice if that service is covered by the health care plan of the insured, unless:
1. The decision not to authorize coverage is made by a physician who:
(a) Is licensed to practice medicine in the State of Nevada pursuant to chapter 630 of NRS;
(b) Possesses the education, training and expertise to evaluate the medical condition of the insured; and
(c) Has reviewed the available medical documentation, notes of the attending physician, test results and other relevant medical records of the insured.
The physician may consult with other providers of health care in determining whether to authorize coverage.
2. The decision not to authorize coverage and the reason for the decision have been transmitted in writing in a timely manner to the insured, the provider of health care who recommended the service and the primary care physician of the insured, if any.".
Amend sec. 12, page 3, by deleting lines 11 through 13 and inserting:
"Sec. 12. 1. Each managed care organization shall establish written criteria:".
Amend sec. 12, page 3, lines 14 and 15, by deleting "or deny".
Amend sec. 12, page 3, line 16, by deleting "assuring" and inserting:
"reviewing standards for".
Amend sec. 12, page 3, by deleting lines 19 through 25 and inserting:
"(a) Developed with the assistance of practicing providers of health care;
(b) Developed using generally recognized and, if appropriate, specialized clinical principles and processes;
(c) Reviewed at least one time each year and, if appropriate, updated; and
(d) Made available to an insured for review upon request of the insured any time that the managed care organization denies coverage of a specific health care service to the insured.".
Amend the bill as a whole by renumbering sections 13 through 20 as sections 16 through 23 and adding new sections designated sections 13 through 15, following sec. 12, to read as follows:
"Sec. 13. Each managed care organization shall:
1. Develop and maintain written policies and procedures setting forth the manner in which it conducts utilization review; and
2. Require any person with whom it subcontracts to provide utilization review to use the same policies and procedures developed pursuant to subsection 1.
Sec. 14. 1. Each managed care organization shall establish a quality assurance program designed to direct, evaluate and monitor the effectiveness of health care services provided to its insureds. The program must include, without limitation:
(a) A method for analyzing the outcomes of health care services;
(b) Peer review;
(c) A system to collect and maintain information related to the health care services provided to insureds;
(d) Recommendations for remedial action; and
(e) Written guidelines that set forth the procedures for remedial action when problems related to quality of care are identified.
2. Each managed care organization shall:
(a) Maintain a written description of the quality assurance program established pursuant to subsection 1, including, without limitation, the specific actions used by the managed care organization to promote adequate quality of health care services provided to insureds and the persons responsible for such actions;
(b) Provide information to each provider of health care whom it employs or with whom it contracts to provide health care services to insureds regarding the manner in which the quality assurance program functions;
(c) Provide the necessary staff to implement the quality assurance program and to evaluate the effectiveness of the program; and
(d) At least one time each year, review the continuity and effectiveness of the quality assurance program, review any findings of the quality improvement committee established pursuant to section 15 of this act and take any reasonable actions to improve the program.
3. Each managed care organization is responsible for an activity conducted pursuant to its quality assurance program, regardless of whether the managed care organization or another entity performs the activity.
Sec. 15. 1. As part of a quality assurance program established pursuant to section 14 of this act, each managed care organization shall create a quality improvement committee directed by a physician who is licensed to practice medicine in the State of Nevada pursuant to chapter 630 of NRS.
2. Each managed care organization shall:
(a) Establish written guidelines setting forth the procedure for selecting the members of the committee;
(b) Select members pursuant to such guidelines; and
(c) Provide staff to assist the committee.
3. The committee shall:
(a) Select and review appropriate medical records of insureds and other data related to the quality of health care provided to insureds by providers of health care;
(b) Review the clinical processes used by providers of health care in providing services;
(c) Identify any problems related to the quality of health care to insureds; and
(d) Advise providers of health care regarding issues related to quality of care.".
Amend sec. 13, page 3, by deleting lines 26 through 28 and inserting:
"Sec. 16. A managed care organization shall not restrict or interfere with any communication between a provider of ".
Amend sec. 14, pages 3 and 4, by deleting lines 31 through 44 on page 3 and lines 1 through 7 on page 4 and inserting:
"Sec. 17. A managed care organization shall not terminate a contract with, demote, refuse to contract with or refuse to compensate a provider of health care solely because the provider, in good faith:
1. Advocates in private or in public on behalf of a patient;
2. Assists a patient in seeking reconsideration of a decision by the managed care organization to deny coverage for a health care service; or
3. Reports a violation of law to an appropriate authority.".
Amend sec. 15, page 4, by deleting lines 8 through 13 and inserting:
"Sec. 18. 1. A managed care organization shall not offer or pay any type of material inducement, bonus or other financial incentive to a provider of health care to deny, reduce, withhold, limit or delay specific medically necessary health care services to an insured.
2. Nothing in this section prohibits an arrangement for payment between a managed care organization and a provider of health care that uses capitation or other financial incentives, if the arrangement is designed to provide an incentive to the provider of health care to use health care services effectively and consistently in the best interest of the health care of the insured.".
Amend sec. 16, page 4, by deleting lines 14 through 30 and inserting:
"Sec. 19. 1. Each managed care organization shall provide coverage for medically necessary emergency services.
2. A managed care organization shall not require prior authorization for medically necessary emergency services.
3. As used in this section, "medically necessary emergency services" means health care services that are provided to an insured by a provider of health care after the sudden onset of a medical condition that manifests itself by symptoms of sufficient severity that a prudent person would believe that the absence of immediate medical attention could result in:
(a) Serious jeopardy to the health of an insured;
(b) Serious jeopardy to the health of an unborn child;
(c) Serious impairment of a bodily function; or
(d) Serious dysfunction of any bodily organ or part.
4. A health care plan subject to the provisions of this section that is".
Amend sec. 16, page 4, line 33, by deleting "policy" and inserting "plan".
Amend sec. 17, pages 4 and 5, by deleting lines 35 through 43 on page 4 and lines 1 through 3 on page 5 and inserting:
"Sec. 20. Each managed care organization shall employ or contract with a physician who is licensed to practice medicine in the State of Nevada pursuant to chapter 630 of NRS to serve as its medical director.".
Amend sec. 18, page 5, by deleting lines 5 through 20 and inserting:
"with the commissioner or the state board of health, each managed care organization shall file with the commissioner and the state board of health, on or before March 1 of each year, a report regarding its methods for reviewing the quality of health care services provided to its insureds.
2. Each managed care organization shall include in its report the criteria, data, benchmarks or studies used to:
(a) Assess the nature, scope, quality and staffing of health care services provided to insureds; or
(b) Determine any reduction or modification of the provision of health care services to insureds.
3. Except as already required to be filed with the commissioner or the state board of health, if the managed care organization is not owned and operated by a public entity and has more than 100 insureds, the report filed pursuant to subsection 1 must include:
(a) A copy of all of its quarterly and annual financial reports;".
Amend sec. 19, page 5, by deleting lines 30 through 36 and inserting:
"Sec. 22. Any person who receives, collects, disburses or invests money for a managed care organization is responsible for such money in a fiduciary relationship to the insured.".
Amend sec. 20, pages 5 and 6, by deleting lines 37 through 44 on page 5 and lines 1 through 18 on page 6 and inserting:
"Sec. 23. 1. Each managed care organization shall establish a system for resolving complaints of an insured concerning:
(a) Payment or reimbursement for covered health care services;
(b) Availability, delivery or quality of covered health care services, including, without limitation, an adverse determination made pursuant to utilization review; or
(c) The terms and conditions of a health care plan.
The system must be approved by the commissioner in consultation with the state board of health.
2. If an insured makes an oral complaint, a managed care organization shall inform the insured that if he is not satisfied with the resolution of the complaint, he must file the complaint in writing to receive further review of the complaint.
3. Each managed care organization shall:
(a) Upon request, assign an employee of the managed care organization to assist an insured or other person in filing a complaint or appealing a decision of the review board;
(b) Authorize an insured who appeals a decision of the review board to appear before the review board to present testimony at a hearing concerning the appeal; and
(c) Authorize an insured to introduce any documentation into evidence at a hearing of a review board and require an insured to provide the documentation required by his health care plan to the review board not later than 5 business days before a hearing of the review board.
4. The commissioner or the state board of health may examine the system for resolving complaints established pursuant to this section at such times as either deems necessary or appropriate.".
Amend the bill as a whole by renumbering sections 21 through 23 as sections 25 through 27 and adding a new section designated sec. 24, following sec. 20, to read as follows:
"Sec. 24. 1. A system for resolving complaints created pursuant to section 23 of this act must include, without limitation, an initial investigation, a review of the complaint by a review board and a procedure for appealing a determination regarding the complaint. The majority of the members of the review board must be insureds who receive health care services from the managed care organization.
2. Except as otherwise provided in subsection 3, a review board shall complete its review regarding a complaint or appeal and notify the insured of its determination not later than 30 days after the complaint or appeal is filed, unless the insured and the review board have agreed to a longer period of time.
3. If a complaint involves an imminent and serious threat to the health of the insured, the managed care organization shall inform the insured immediately of his right to an expedited review of his complaint. If an expedited review is required, the review board shall notify the insured in writing of its determination within 72 hours after the complaint is filed.
4. Notice provided to an insured by a review board regarding a complaint must include, without limitation, an explanation of any further rights of the insured regarding the complaint that are available under his health care plan.".
Amend sec. 21, page 6, by deleting lines 19 through 21 and inserting:
"Sec. 25. 1. Each managed care organization shall submit to the commissioner and the state board of ".
Amend sec. 21, page 6, line 23, by deleting "20" and inserting "23".
Amend sec. 21, page 6, line 26, by deleting "any".
Amend sec. 21, page 6, line 34, by deleting:
"and each insurer".
Amend sec. 22, page 6, by deleting lines 38 through 40 and inserting:
"Sec. 26. 1. Following approval by the commissioner, each managed care organization shall provide written notice to an insured, in clear and".
Amend sec. 22, page 6, line 42, after "a" by inserting "written".
Amend sec. 22, page 6, line 43, by deleting "20" and inserting "24".
Amend sec. 22, page 7, by deleting lines 1 and 2 and inserting:
"(a) At the time he receives his certificate of coverage or evidence of coverage;".
Amend sec. 22, page 7, line 3, by deleting "or insurer".
Amend sec. 22, page 7, line 7, by deleting "or insurer".
Amend sec. 22, page 7, by deleting lines 10 and 11.
Amend sec. 22, page 7, line 12, by deleting "(c)" and inserting "(b)".
Amend sec. 22, page 7, line 13, by deleting "a" and inserting "the".
Amend sec. 22, page 7, by deleting line 15 and inserting:
"(c) His right to file a written complaint.".
Amend sec. 22, page 7, between lines 15 and 16, by inserting:
"3. A written notice which is approved by the commissioner shall be deemed to be in clear and comprehensible language that is understandable to an ordinary layperson.".
Amend sec. 23, page 7, line 17, after "chapter" by inserting:
", other than medical records and other information relating to a specific insured,".
Amend the bill as a whole by renumbering sections 24 through 37 as sections 29 through 42 and adding a new section designated sec. 28, following sec. 23, to read as follows:
"Sec. 28. NRS 687B.225 is hereby amended to read as follows:
687B.2251. [Any] Except as otherwise provided in section 19 of this act, a contract for group, blanket or individual health insurance or any contract by a nonprofit hospital, medical or dental service corporation or organization for dental care which provides for payment of a certain part of medical or dental care may require the insured or member to obtain prior authorization for that care from the insurer or organization. The insurer or organization shall:
(a) File its procedure for obtaining approval of care [under] pursuant to this section for approval by the commissioner; and
(b) Respond to any request for approval by the insured or member [under] pursuant to this section within 20 days after it receives the request.
2. The procedure for prior authorization may not discriminate among persons licensed to provide the covered care.".
Amend sec. 24, page 7, line 19, by deleting:
"25, 26 and 27" and inserting:
"30, 31 and 32".
Amend sec. 25, page 7, line 25, by deleting "and " and inserting ", a".
Amend sec. 25, page 7, by deleting lines 32 through 35 and inserting:
"either deems necessary or appropriate.".
Amend sec. 26, page 7, line 39, by deleting "25" and inserting "30".
Amend sec. 27, page 8, line 11, by deleting "Each" and inserting:
"Following approval by the commissioner, each".
Amend sec. 27, page 8, line 14, after "a" by inserting "written".
Amend sec. 27, page 8, by deleting line 16 and inserting:
"(a) At the time he receives his evidence of coverage;".
Amend sec. 27, page 8, line 24, by deleting "a" and inserting "the".
Amend sec. 27, page 8, line 25, after "a" by inserting "written".
Amend sec. 27, page 8, between lines 25 and 26, by inserting:
"3. A written notice which is approved by the commissioner shall be deemed to be in clear and comprehensible language that is understandable to an ordinary layperson.".
Amend sec. 28, page 8, line 27, by deleting:
"29, 30 and 31" and inserting:
"34, 35 and 36".
Amend sec. 29, page 8, line 34, by deleting "and " and inserting ", a".
Amend sec. 29, page 8, by deleting lines 41 through 44 and inserting:
"either deems necessary or appropriate.".
Amend sec. 30, page 9, line 4, by deleting "29" and inserting "34".
Amend sec. 31, page 9, line 18, by deleting "Each" and inserting:
"Following approval by the commissioner, each".
Amend sec. 31, page 9, line 21, after "a" by inserting "written".
Amend sec. 31, page 9, by deleting line 23 and inserting:
"(a) At the time he receives his certificate of coverage or evidence of coverage;".
Amend sec. 31, page 9, line 31, by deleting "a" and inserting "the".
Amend sec. 31, page 9, line 32, after "a" by inserting "written".
Amend sec. 31, page 9, between lines 32 and 33, by inserting:
"3. A written notice which is approved by the commissioner shall be deemed to be in clear and comprehensible language that is understandable to an ordinary layperson.".
Amend sec. 32, page 9, line 34, by deleting:
"33, 34 and 35" and inserting:
"38, 39 and 40".
Amend sec. 33, page 9, line 41, by deleting "and " and inserting ", a".
Amend sec. 33, page 10, by deleting lines 5 through 8 and inserting:
"either deems necessary or appropriate.".
Amend sec. 34, page 10, line 12, by deleting "33" and inserting "38".
Amend sec. 35, page 10, line 27, by deleting "Each" and inserting:
"Following approval by the commissioner, each".
Amend sec. 35, page 10, line 30, after "a" by inserting "written".
Amend sec. 35, page 10, by deleting line 32 and inserting:
"(a) At the time he receives his certificate of coverage or evidence of coverage;".
Amend sec. 35, page 10, line 41, by deleting "a" and inserting "the".
Amend sec. 35, page 10, line 42, after "a" by inserting "written".
Amend sec. 35, page 10, after line 42, by inserting:
"3. A written notice which is approved by the commissioner shall be deemed to be in clear and comprehensible language that is understandable to an ordinary layperson.".
Amend sec. 36, page 11, line 16, by deleting:
"and sections 20, 21 and 22 of this act."
Amend sec. 37, page 11, line 25, by deleting "23," and inserting "27,".
Amend the bill as a whole by deleting sections 38 through 40, renumbering sec. 41 as sec. 44 and adding a new section designated sec. 43, following sec. 37, to read as follows:
"Sec. 43. NRS 695C.260 is hereby amended to read as follows:
695C.260[1.] Every health maintenance organization shall establish a complaint system [which has been approved by the commissioner after consultation with the state board of health to resolve complaints initiated by enrollees concerning health care services. Such system shall provide reasonable procedures for the resolution of complaints. Each health maintenance organization shall submit to the commissioner and the state board of health an annual report in a form prescribed by the commissioner after consultation with the state board of health which shall include:
(a) A description of the procedures of such complaint system; and
(b) The total number of complaints handled through such complaint system and a compilation of causes underlying the complaints filed.
2. The health maintenance organization shall maintain records of complaints filed with it concerning other than health care services and shall submit to the commissioner a summary report at such times and in such format as the commissioner may require. Such complaints involving other persons shall be referred to such persons with a copy to the commissioner.
3. The commissioner or the state board of health may examine such complaint system, subject to the limitations concerning medical records of individuals set forth in subsection 3 of NRS 695C.310.] which complies with the provisions of sections 23 to 26, inclusive, of this act.".
Amend the bill as a whole by deleting the text of the repealed section.
Amend the title of the bill, by deleting the fourth and fifth lines and inserting:
"that restrict the actions of a provider of health care; requiring such entities to provide coverage for medically necessary emergency services without requiring an insured to obtain any prior authorization for such services; requiring such".
Assemblywoman Buckley moved the adoption of the amendment.
Remarks by Assemblymen Buckley and Krenzer.
Conflict of interest declared by Assemblywoman Krenzer.
Amendment adopted.
Bill ordered reprinted, engrossed and to third reading.

Assembly Bill No. 309.
Bill read second time.
The following amendment was proposed by the Committee on Commerce:
Amendment No. 306.
Amend sec. 3, page 2, by deleting lines 11 through 14 and inserting:
"5. Willful disobedience of the law, or of the regulations of the state board of health [,] or of the [regulations of the Nevada state board of chiropractic examiners.] chiropractic physicians' board of Nevada.
6. Conviction of any offense involving moral turpitude, or the".
Amend sec. 3, page 2, line 17, by deleting " [7.] 6." and inserting "7.".
Amend sec. 3, page 2, line 19, by deleting " [8.] 7." and inserting "8.".
Amend sec. 3, page 2, line 22, by deleting " [9.] 8." and inserting "9.".
Amend sec. 3, page 2, line 24, by deleting " [10.] 9." and inserting "10.".
Amend sec. 3, page 2, line 26, by deleting " [11.] 10." and inserting "11.".
Amend sec. 3, page 2, by deleting lines 28 through 31 and inserting:
"provision of this chapter [.] or the regulations adopted by the board, or any other statute or regulation pertaining to the practice of chiropractic.
12. Employing, directly or indirectly, any suspended or unlicensed".
Amend sec. 3, page 2, line 35, by deleting " [13.] 12." and inserting "13.".
Amend sec. 3, page 2, line 37, by deleting " [14.] 13." and inserting "14.".
Amend sec. 3, page 3, line 1, by deleting " [15.] 14." and inserting "15.".
Amend sec. 3, page 3, by deleting lines 5 through 8.
Assemblyman Perkins moved the adoption of the amendment.
Remarks by Assemblyman Perkins.
Amendment adopted.
Bill ordered reprinted, engrossed and to third reading.

Assembly Bill No. 400.
Bill read second time and ordered to third reading.

Senate Bill No. 27.
Bill read second time.
The following amendment was proposed by the Committee on Natural Resources, Agriculture, and Mining:
Amendment No. 337.
Amend the bill as a whole by renumbering sections 2 and 3 as sections 5 and 6 and adding new sections designated sections 2 through 4, following section 1, to read as follows:
"Sec. 2. NRS 569.010 is hereby amended to read as follows:
569.010 1. Except as otherwise provided by law, all estrays within this state shall be deemed for the purpose of this section to be the property of the division.
2. The division has all rights accruing pursuant to the laws of this state to owners of such animals, and may:
(a) Dispose of estrays by sale through an agent appointed by the division; or
(b) Provide for the control, placement or disposition of estrays through cooperative agreements pursuant to NRS 569.031.
3. Except as otherwise provided by law, all money collected for the sale or for the injury or killing of any such animals must be held for 1 year, subject to the claim of any person who can establish legal title to any animal concerned. All money remaining unclaimed must be deposited in the livestock inspection account after 1 year. The division may disallow all claims if the division deems the claims illegal or not showing satisfactory evidence of title.
4. [The] Neither the division nor any political subdivision of this state is [not] liable for any trespass or other damage or injury caused by any of such estrays.
Sec. 3. NRS 569.031 is hereby amended to read as follows:
569.031 The division may enter into a cooperative agreement for the control, placement or disposition of the livestock with [the] another agency of this state or with a county, city, town, township , [or other] peace officer [or poundmaster.] , poundmaster or nonprofit organization. If an agreement is entered into, it must provide for:
1. The responsibility for the payment of the expenses incurred in taking up, holding, advertising and making the disposition of the estray, and any damages for trespass allowed pursuant to NRS 569.440;
2. The disposition of any money received from the sale of the livestock; [and]
3. The protection of the rights of a lawful owner of an estray pursuant to NRS 569.040 to 569.130, inclusive [.] ; and
4. The designation of the specific geographic area of this state to which the cooperative agreement applies.
The division shall annually review the actions of the cooperating person or entity for compliance with the agreement. The division may cancel the agreement upon a finding of noncompliant actions.
Sec. 4. NRS 569.040 is hereby amended to read as follows:
569.040 1. Except as otherwise provided in subsection 2, NRS 569.040 to 569.130, inclusive, or pursuant to a cooperative agreement established pursuant to NRS 569.031, it is unlawful for any person or his employees or agents, other than an authorized agent of the division, to [take] :
(a) Take
up any estray and retain possession of it [.] ; or
(b) Feed any estray.
2. For a first violation of paragraph (b) of subsection 1, a person may not be cited or charged criminally but must be reminded that it is unlawful to feed an estray.
".
Amend sec. 3, page 2, line 21, by deleting "Given" and inserting:
"[Given] Held by the division until given".
Amend sec. 3, page 2, after line 24, by inserting:
"3. Estray horses must be marked or branded before placement.".
Amend the bill as a whole by adding new sections designated sections 7 and 8, following sec. 3, to read as follows:
"Sec. 7. The amendatory provisions of this act do not apply to offenses that are committed before October 1, 1997.
Sec. 8. The provisions of subsection 1 of NRS 354.599 do not apply to any additional expenses of a local government that are related to the provisions of this act.".
Amend the title of the bill to read as follows:
"AN ACT relating to estrays; expanding the definition of "estray" to include sheep or other animals of the ovine species; expanding immunity from liability for trespass, damage or injury caused by an estray; expanding the list of entities with which the division of agriculture of the department of business and industry may enter into a cooperative agreement for the control, placement or disposition of estray livestock; making it unlawful to feed an estray; authorizing the division to sell an injured, sick or otherwise debilitated estray under certain circumstances; shortening the period during which an estray must remain unclaimed before it is sold or given a placement or other disposition; requiring that an estray horse be branded before it is placed; providing a penalty; and providing other matters properly relating thereto.".
Assemblywoman de Braga moved the adoption of the amendment.
Remarks by Assemblymen de Braga and Collins.
Amendment adopted.
Bill ordered reprinted, re-engrossed and to third reading.

Senate Bill No. 51.
Bill read second time and ordered to third reading.

Senate Bill No. 54.
Bill read second time and ordered to third reading.

Senate Bill No. 294.
Bill read second time and ordered to third reading.

MOTIONS, RESOLUTIONS AND NOTICES

Assemblyman Perkins moved that Senate Bill No. 96 be taken from the Second Reading File and re-referred to the Committee on Commerce.
Motion carried.

Assemblyman Perkins moved that Assembly Bill No. 291 be taken from its position on the General File and placed at the top of the General File.
Motion carried.

Assemblyman Perkins moved that the Assembly recess subject to the call of the Chair.
Motion carried.

Assembly in recess at 11:19 a.m.

ASSEMBLY IN SESSION

At 12:52 p.m.
Mr. Speaker presiding.
Quorum present.

GENERAL FILE AND THIRD READING

Assembly Bill No. 291.
Bill read third time.
The following amendment was proposed by Assemblymen Sandoval, Anderson, Ernaut, Evans, Lambert, Freeman, Humke, Hickey and Gustavson:
Amendment No. 340.
Amend sec. 7, page 3, line 25, before "The" by inserting:
"Before adopting a plan pursuant to this subsection, the board of county commissioners of a county in which a regional planning commission has been established pursuant to NRS 278.0262 shall transmit to the regional planning commission a list of the proposed projects for which a tax for infrastructure may be imposed. The regional planning commission shall hold a public hearing at which it shall rank each project in relative priority. The regional planning commission shall transmit its rankings to the board of county commissioners. The recommendations of the regional planning commission regarding the priority of the proposed projects are not binding on the board of county commissioners.".
Assemblyman Sandoval moved the adoption of the amendment.
Remarks by Assemblymen Sandoval, Hickey, Ernaut and Anderson.
Amendment adopted.
The following amendment was proposed by Assemblywoman Giunchigliani:
Amendment No. 343.
Amend sec. 7, pages 2 and 3, by deleting lines 42 through 44 on page 2 and lines 1 through 3 on page 3 and inserting:
"4. The board of county commissioners in a county whose population is 400,000 or more and in which a water authority exists shall review the necessity for the continued imposition of the tax authorized pursuant to this chapter at least once every 10 years.".
Amend sec. 18, page 9, line 25, by deleting "may" and inserting "must ".
Amend sec. 18, page 9, line 26, by deleting "or to" and inserting "and must ".
Amend sec. 18, page 9, line 27, by deleting "or the" and inserting "and the".
Amend sec. 18, page 9, by deleting line 30 and inserting:
"(a) The rate or rates of the tax, which must not exceed one-quarter of 1 percent of the monthly water bill of customers of all residential classes and 5 percent of the monthly water bill of customers of all commercial classes and any other class;".
Amend sec. 18, page 9, line 43, after "5." by inserting:
"Subject to the provisions of this subsection, the governing body of the city may reduce the amount of the tax imposed pursuant to this section as the obligations of the city and the water authority allow. No ordinance imposing a tax which is enacted pursuant to this section may be repealed or amended or otherwise directly or indirectly modified in such a manner as to impair any outstanding bonds or other obligations which are payable from or secured by a pledge of a tax enacted pursuant to this section until those bonds or other obligations have been discharged in full.
6. The governing body of the city shall review the necessity for the continued imposition of the tax authorized pursuant to this section at least once every 10 years.
7.
".
Amend sec. 19, page 10, line 40, by deleting "may" and inserting "must ".
Amend sec. 19, page 10, line 41, by deleting "or to" and inserting "and must ".
Amend sec. 19, page 10, line 43, by deleting "or" and inserting "and ".
Amend sec. 19, page 11, by deleting line 1 and inserting:
"(a) The amount of the rate or charge, which must not exceed one-quarter of 1 percent of the monthly water bill of customers of all residential classes and 5 percent of the monthly water bill of customers of all commercial classes and any other class;".
Amend sec. 19, page 11, line 15, after "5." by inserting:
"Subject to the provisions of this subsection, the board of directors of the district may reduce the amount of the tax imposed pursuant to this section as the obligations of the district or the water authority allow. The board of directors of the district shall not repeal or amend or otherwise directly or indirectly modify the tax in such a manner as to impair any outstanding bonds or other obligations which are payable from or secured by a pledge of a tax imposed pursuant to this section until those bonds or other obligations have been discharged in full.
6. The board of directors of the district shall review the necessity for the continued imposition of the tax authorized pursuant to this section at least once every 10 years.
7.
".
Assemblywoman Giunchigliani moved the adoption of the amendment.
Remarks by Assemblymen Giunchigliani and Close.
Amendment adopted.
The following amendment was proposed by Assemblywoman Lambert:
Amendment No. 344.
Amend sec. 7, page 3, by deleting lines 4 through 7 and inserting:
"5. Before enacting an ordinance pursuant to this chapter, the board of county commissioners shall hold a public hearing regarding the imposition of a tax for infrastructure. In a county whose population is 400,000 or more and in which a water authority exists, the water authority shall also hold a public hearing regarding the tax for infrastructure. Notice of the time and place of each hearing must be:".
Amend sec. 7, page 3, by deleting lines 30 through 33 and inserting:
"which a plan expires, the board of county commissioners shall determine whether a necessity exists for the continued imposition of the tax. If the board of county commissioners determines that the tax must be continued for a purpose set forth in section 14 of this act, the board shall adopt, in the manner prescribed in this subsection, a new plan for the expenditure of the proceeds of the tax.
7. No ordinance imposing a tax which is enacted pursuant to this chapter may be repealed or amended or otherwise directly or indirectly modified in such a manner as to impair any outstanding bonds or other obligations which are payable from or secured by a pledge of a tax enacted pursuant to this chapter until those bonds or other obligations have been discharged in full.".
Assemblywoman Lambert moved the adoption of the amendment.
Remarks by Assemblywoman Lambert.
Amendment adopted.
The following amendment was proposed by Assemblywoman Tiffany:
Amendment No. 339.
Amend sec. 7, page 2, by deleting lines 29 through 34 and inserting:
"by a majority of the registered voters of the county voting upon the question which the board may submit to the voters at any general election. The board shall also submit to the voters at a general election any proposal to increase the rate of the tax or change the previously approved uses for the proceeds of the tax. A previously approved use for the proceeds of the tax must not be changed to a use that is not authorized for that county".
Amend sec. 7, page 2, by deleting lines 40 and 41 and inserting:
"which the voters approved the question.".
Assemblywoman Tiffany moved the adoption of the amendment.
Remarks by Assemblymen Tiffany, Goldwater, Carpenter, Mortenson, Perkins and Williams.
Assemblyman Goldwater requested that Assemblyman Perkins' remarks be entered in the Journal.
I rise in opposition to Amendment 339 to Assembly Bill 291. Mr. Speaker, we talk about disenfranchising our voters. In the municipal elections that just occurred, on the high end, we had a 20-percent turnout. That tells me that, for the most part, the people that we represent are not being heard. Mr. Speaker, I've got a fairly lengthy statement that speaks fairly directly to the amendment, but with your indulgence, I'd like to move to Order of Business 15.
It should be no surprise that I rise in support of AB 291. AB 291 began as a state-imposed one-quarter-cent-sales tax increase in Clark County to help fund the construction of the water delivery system in the Las Vegas area. As originally written, I would not support it; however, as amended, this bill is a potential tool for all Nevada counties to address their particular infrastructure needs. It is no longer state imposed. It was appropriately amended to allow all counties to take critical infrastructure issues back to our constituents and make funding decisions based upon those hearings--hearings in which the citizens we all represent will have a better opportunity to participate. Again, this bill does not raise a single tax. It provides the counties the ability to consider this revenue in a forum where all our constituents can better voice their opinions, those that vote and those that do not.
Most of the controversy has been about the Clark County portion of the bill, whether or not the funding is needed; whether or not the sales tax should be made available to Clark County as a part of that funding, and now to the rest of the state; whether or not we are advocating runaway growth; whether or not this is for special interests; and whether or not this is the right thing to do.
Ladies and gentlemen, let us lower ourselves from our ascension to arrogance back to our rightful place as humble public servants. Let us not forget how the original proposal ended up in Carson City. We hold the purse strings and won't let them go. A 24-person citizens' committee which included seniors, business people, a representative from the Nevada Taxpayers Association, labor, environmental representatives and many more, studied this issue for two years and determined this revenue source to be the best for that particular project. It continues with Nevada's philosophy that tourists who visit our state should help pay our bills. Let me emphasize that this proposal is supported by working men and women; business people, including the Las Vegas Chamber of Commerce; Seniors United; the Nevada Taxpayers Association; and many more. Ask yourselves this: When is the last time you saw the Las Vegas Chamber of Commerce and the Nevada Taxpayers Association advocate the ability for a county to levy a tax?
We are not debating whether or not to build this water system or better manage growth. Those are local decisions. Yes, we can provide some leadership in the growth arena, and I believe that we will before this session is over. But again, we are not debating building this system, just how it should be funded. If not the sales tax, then what? The alternatives appear to be water rates and water connection fees for new homes. The sales tax would mean an additional 12 cents on a $50 restaurant bill or $100 on a $40,000 car, neither of which are likely purchases for those low- or fixed-income people that we all need to look out for.
In our state, rent, mortgage payments, food and prescriptions are exempt from the sales tax, yet everyone--the rich and the poor have to pay their water bills. Most of us tend to look out for seniors, as we very well should. Let us not forget, however, about those new families just starting out. The two youngest of my five children are 9 and ten years old. Their youth and innocence is something I will always cherish. But I worry that 15 or 20 years from now, when they decide to have a family and want to buy a home--one of the most coveted moments in a young family's life--the price of a home will be $30,000 higher because this body did not have the courage or the leadership to make good public policy for years to come. Let me repeat that. Fifteen or 20 years from now when our children and, for some of us, our grandchildren, want to start a family and buy that first home, they won't be able to because this legislature did not have the foresight, the leadership and conviction to create the appropriate public policy.
I don't know about you, but I know my children have a lot of faith in me to come here and do the right thing. I remember when I sat down with my family, as I always do before a campaign, to decide if we were going to again run for office. As you all know, this is a "we" decision as it affects the entire family. I asked them, "Do we want to do this again?" You know, my ten-year-old daughter turned to me and she said, "Daddy, if you don't do it, who will?" I'll never forget that moment, ladies and gentlemen, and I often remember her trust when I have difficult decisions to make. How could anyone possibly look their loved ones in the eyes in 20 years and explain to them how they couldn't do the right thing, and that's why you cannot afford that new home. Mr. Speaker, you said it best last session when you said that the reason we are elected is to make the difficult decisions.
You know, Mr. Speaker, I truly respect those in this body who have an honest difference of opinion on this and other issues. This is not a partisan issue, and I applaud the Assistant Minority Leader and others on both sides of the aisle for their work on this bill. But when some elected members of this body only think ahead to the next election cycle or purposefully just make themselves an aggravation for superfluous political gain, we all are painted with the same brush, and this honorable institution is tarnished.
I hope for the sake of our state and its citizens, including seniors, children, grandchildren, and everyone in between, and for the sake of this institution that, believe me, ladies and gentlemen, will be here long after we are gone, that courage and leadership will prevail today. I urge you to defeat this amendment and support the bill when it comes back up. Thank you, Mr. Speaker.
Assemblymen Williams, Giunchigliani and Hettrick moved the previous question.
Motion carried.
The question being on the adoption of Amendment No. 339 to Assembly Bill No. 291.
Amendment lost.
Bill ordered reprinted, re-engrossed and to third reading.

MOTIONS, RESOLUTIONS AND NOTICES

Assemblyman Perkins moved that Assembly Bills Nos. 115, 350; Senate Bills Nos. 68, 98, 176, 178, 202, 249 be taken from the General File and placed on the General File for the next legislative day.
Motion carried.

INTRODUCTION, FIRST READING AND REFERENCE

By Assemblymen Ohrenschall, Anderson, Buckley, Manendo, Perkins, Segerblom, Herrera, Collins, Berman, Koivisto, Carpenter, Sandoval, Amodei, Bache, Arberry, Chowning, Evans, Williams, Hickey, Price, de Braga, Giunchigliani, Close, Marvel, Neighbors, Humke, Goldwater, Parks, Krenzer, Mortenson and Lee:
Assembly Bill No. 485--An Act relating to actions concerning persons; revising the provisions governing immunity for a person engaging in a communication in furtherance of the right to petition; and providing other matters properly relating thereto.
Assemblywoman Ohrenschall moved that the bill be referred to the Committee on Judiciary.
Motion carried.

UNFINISHED BUSINESS
Consideration of Senate Amendments

Assembly Bill No. 201.
The following Senate amendment was read:
Amendment No. 257.
Amend section 1, page 1, by deleting line 5 and inserting:
"as a political subdivision created by cooperative agreement:
(a) The water authority must obtain approval for the bonds from the debt management commission of each county in which any member of the water authority that is obligated to make payments on the bonds of the water authority is located; and
(b) The members of
".
Amend section 1, page 1, by deleting line 17 and inserting:
"2. Notwithstanding the provisions of paragraph (a) of subsection 1, the obligations of the members of the water authority to the water".
Assemblyman Bache moved that the Assembly concur in the Senate amendment to Assembly Bill No. 201.
Remarks by Assemblyman Bache.
Motion carried.
Bill ordered enrolled.

Signing of Bills and Resolutions

There being no objection, the Speaker and Chief Clerk signed Assembly Concurrent Resolution No. 22; Senate Bills Nos. 90, 125, 153.

GUESTS EXTENDED PRIVILEGE OF ASSEMBLY FLOOR

On request of Assemblyman Anderson, the privilege of the floor of the Assembly Chamber for this day was extended to Doug Matejovsky and Clara Matejovsky.

On request of Assemblywoman Buckley, the privilege of the floor of the Assembly Chamber for this day was extended to Jan Chaslain and Conrad Jamboni.

On request of Assemblyman Dini, the privilege of the floor of the Assembly Chamber for this day was extended to Charlie Cox and Carol Cox.

On request of Assemblyman Hettrick, the privilege of the floor of the Assembly Chamber for this day was extended to Patty Fore, Courtney Bowland, Jessica Caisse, Anthony Christensen, Timothy Clisham, Anna Croke, Alison Dunleavy, Jessica Fleigle, Christopher Foti, Stefanie Hatcher, Nathaniel Hoch, Scotty Jones, Vicky Kalashian, Anton Kokunin, Brad Lipovsky, Alex Lurkins, Alan Mayoral, Brandon McCarthy, Ivonne Morales, Maria Olmos, Chris Pavich, Romana Croke, Jean Lurkins, Kathy Pavich, Stephanie Seppa, Susan Shay, Linda Lipovsky, Chelsea Spingola, Nick Summers, Elise Thomas, Kay Fagan, Nichole Adams, Jannette Bak, Chase Bartholomew, Steven Cheatham, Michael Chilton, Adam Cronis, Ashley Daws, Elise Ehrler, Devin Farnsworth, Jane Gibbs, Denisse Gonzalez, Jenna Hayes, Michael Komorowski, Christopher McGary, Danny Mitchell, Geoff Palmer, Jonathan Rodriguez, Daniel Sammons, Manuel Sanchez, Danny Shapiro, Sheila Adams, Ewa Bak, Gina Daw, Jan Shapiro, Charlene Summers, Daniel Roth, Elisa Seppa, Garrett Swearingen and Erika Van Schoyck.

On request of Assemblyman Hickey, the privilege of the floor of the Assembly Chamber for this day was extended to Benjamin Carman, Joseph Caron, Bradley Edwards, Jeannette Green, Benjamin Guild, James Johns, Ayonie Macarthur, Michael Miller, Catherine Parks, Maren Rush, Bianca Townsend, Matt Wong, Erik Fletcher, Lindsay Marshall, Sinead Caldwell, Samuel Cothrun, Shannon Disney, Breena Holcombe, Desiree Lapham, Christopher Leonard, Lisa Loomis, James Martinez, Shawna Myhre, Jennifer Navrkal, Matthew Pickens, Inglebert Salanguit, Marc Vetovitz, Brent Vetovitz and Barbara Fleisher.

On request of Assemblyman Lee, the privilege of the floor of the Assembly Chamber for this day was extended to Arnie Adamsen.

On request of Assemblyman Perkins, the privilege of the floor of the Assembly Chamber for this day was extended to Kenneth Judge.

On request of Assemblyman Price, the privilege of the floor of the Assembly Chamber for this day was extended to Gail Scalzi.

On request of Assemblywoman Segerblom, the privilege of the floor of the Assembly Chamber for this day was extended to Alice Martz.

On request of Assemblywoman Tiffany, the privilege of the floor of the Assembly Chamber for this day was extended to Dianna Fyke.

Assemblyman Perkins moved that the Assembly adjourn until Thursday, May 15, 1997 at 10:30 a.m.
Motion carried.

Assembly adjourned at 1:41 p.m.

Approved:

Joseph E. Dini, Jr.

Speaker of the Assembly

Attest: Linda B. Alden
Chief Clerk of the Assembly