(REPRINTED WITH ADOPTED AMENDMENTS)

 

Assembly Bill No. 135–Assemblymen Dini and Perkins

 

February 14, 2001

____________

 

Referred to Concurrent Committees on Commerce and Labor
and Ways and Means

 

SUMMARY—Makes various changes to provisions governing investigation and prosecution of insurance fraud. (BDR 57‑332)

 

FISCAL NOTE:  Effect on Local Government: No.

                             Effect on the State: Yes.

 

~

 

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

 

AN ACT relating to insurance; making various changes to the provisions governing the investigation and prosecution of insurance fraud; providing that an insurer and certain other organizations and persons shall be deemed to be victims in cases involving insurance fraud for purposes of restitution; requiring the establishment of a fraud control unit for insurance within the office of the attorney general; defining the duties of the fraud control unit; authorizing the fraud control unit to issue subpoenas to obtain documents relating to an investigation of insurance fraud; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1    Section 1.  Chapter 679B of NRS is hereby amended by adding thereto

1-2  the provisions set forth as sections 2 to 6.5, inclusive, of this act.

1-3    Sec. 2.  As used in NRS 679B.153 to 679B.158, inclusive, and

1-4  sections 2 to 6.5, inclusive, of this act, unless the context otherwise

1-5  requires, the words and terms defined in sections 3 and 4 of this act have

1-6  the meanings ascribed to them in those sections.

1-7    Sec. 3.  “Fraud control unit” means the fraud control unit for

1-8  insurance established by the attorney general pursuant to section 27 of

1-9  this act.

1-10  Sec. 4.  “Insurance fraud” has the meaning ascribed to it in section

1-11  14 of this act.

1-12  Sec. 5.  Nothing in section 27 of this act limits or diminishes the

1-13  exclusive jurisdiction of the commissioner otherwise granted by statute to

1-14  investigate or take administrative or civil action:

1-15  1.  For any violation of this Title by any person or entity who is or has

1-16  been licensed by the commissioner pursuant to this Title;

2-1    2.  Against any person or entity who is or has been engaged in the

2-2  business of insurance without a license as required by this Title,

2-3  including, without limitation, the unauthorized transaction of insurance

2-4  in violation of chapter 685B of NRS; or

2-5    3.  Against any person or entity as the commissioner deems

2-6  appropriate.

2-7    Sec. 6.  1.  The books, records, payroll reports and other documents

2-8  of a business which is not a criminal suspect that are relevant to an

2-9  investigation of insurance fraud must be open to inspection by an

2-10  investigator for the attorney general in order to ascertain the correctness

2-11  of such information and as may be necessary for the attorney general to

2-12  carry out his duties pursuant to section 27 of this act, NRS 679B.153 to

2-13  679B.158, inclusive, and sections 2 to 6.5, inclusive, of this act, and NRS

2-14  686A.281 to 686A.295, inclusive, and sections 14 to 17, inclusive, of this

2-15  act.

2-16  2.  If the business refuses to produce any book, record, payroll report

2-17  or other document in conjunction with an investigation conducted by the

2-18  fraud control unit, the attorney general may issue a subpoena to require

2-19  the production of that document.

2-20  3.  If the business refuses to produce any document as required by the

2-21  subpoena, the attorney general may report to the district court by

2-22  petition, setting forth that:

2-23  (a) Due notice has been given of the time and place of the production

2-24  of the document;

2-25  (b) The business has been subpoenaed by the attorney general

2-26  pursuant to this section; and

2-27  (c) The business has failed or refused to produce the document

2-28  required by the subpoena,

2-29  and asking for an order of the court compelling the business to produce

2-30  the document.

2-31  4.  Upon such petition, the court shall enter an order directing the

2-32  business to appear before the court at a time and place to be fixed by the

2-33  court in its order, the time to be not more than 10 days after the date of

2-34  the order, and to show cause why the business has not produced the

2-35  document. A certified copy of the order must be served upon the

2-36  business.

2-37  5.  If it appears to the court that the subpoena was regularly issued by

2-38  the attorney general, the court shall enter an order that the business

2-39  produce the required document at the time and place fixed in the order.

2-40  Failure to obey the order constitutes contempt of court.

2-41  Sec. 6.5  1.  All records and other information related to an

2-42  investigation conducted by the attorney general and the fraud control

2-43  unit for the prosecution of insurance fraud are confidential unless:

2-44  (a) The attorney general releases, in such manner as he deems

2-45  appropriate, all or any part of the records or information for public

2-46  inspection after determining that the release of the records or

2-47  information:

2-48      (1) Will not harm the investigation or the person who is being

2-49  investigated; or

3-1       (2) Serves the interests of a policyholder, the shareholders of the

3-2  insurer or the public; or

3-3    (b) A court orders the release of the records or information after

3-4  determining that the production of the records or information will not

3-5  damage any investigation being conducted by the fraud control unit.

3-6    2.  The attorney general may classify as confidential specific records

3-7  and other information if the records or other information was obtained

3-8  from a governmental agency or other source upon the express condition

3-9  that the contents would remain confidential.

3-10  3.  All information and documents in the possession of the attorney

3-11  general and the fraud control unit that are related to cases or matters

3-12  under investigation are confidential for the duration of the investigation

3-13  and may not be made public unless the attorney general finds the

3-14  existence of an imminent threat of harm to the safety or welfare of the

3-15  policyholder, shareholders or the public and determines that the interests

3-16  of the policyholder, shareholders or the public will be served by

3-17  publication thereof, in which event he may make a record public or

3-18  publish all or any part of the record in any manner he deems

3-19  appropriate.

3-20  Sec. 7.  NRS 679B.155 is hereby amended to read as follows:

3-21  679B.155 To investigate [fraudulent claims for benefits from a policy

3-22  of insurance,] violations of the provisions of this Title, or to assist the

3-23  attorney general or other local, state or federal investigative and law

3-24  enforcement agencies in investigating an act of insurance fraud, the

3-25  commissioner may:

3-26  1.  Designate employees of the division as investigators to carry out the

3-27  provisions of NRS 679B.153 to 679B.158, inclusive[.] , and sections 2 to

3-28  6.5, inclusive, of this act.

3-29  2.  Conduct investigations into such activities occurring outside this

3-30  state, if necessary. To conduct these investigations, the commissioner or

3-31  his investigators may:

3-32  (a) Travel outside this state;

3-33  (b) Cooperate with appropriate agencies or persons outside this state; or

3-34  (c) Designate those agencies to conduct investigations for the

3-35  commissioner.

3-36  3.  Assist officials of investigative or law enforcement agencies of any

3-37  other state or the Federal Government who are investigating fraudulent

3-38  claims and who request assistance from the commissioner.

3-39  Sec. 8.  NRS 679B.156 is hereby amended to read as follows:

3-40  679B.156 1.  Every person in charge of an investigative or law

3-41  enforcement agency within this state shall [cooperate] :

3-42  (a) Cooperate with the commissioner [or] and his investigators [and

3-43  shall furnish the commissioner, upon his] , and the attorney general and

3-44  the members of the fraud control unit; and

3-45  (b) Upon request, furnish the commissioner or attorney general, as

3-46  appropriate, with any information necessary for [his] the investigation of

3-47  [fraudulent claims.] insurance fraud.

3-48  2.  The commissioner and the attorney general shall:

4-1    (a) Assist any official of an investigative or a law enforcement agency

4-2  of this state, any other state or the Federal Government who requests

4-3  assistance in investigating [fraudulent claims against an insurer;] any act of

4-4  insurance fraud; and

4-5    (b) Furnish to those officials any information, not otherwise

4-6  confidential, concerning his investigation or his report on [fraudulent

4-7  claims.] insurance fraud.

4-8    Sec. 9.  NRS 679B.157 is hereby amended to read as follows:

4-9    679B.157  [An]Any person, governmental entity, insurer, employee or

4-10  representative of an insurer, official of an investigative or law enforcement

4-11  agency, employee of the division ,[or]the commissioner , the attorney

4-12  general or a member of the fraud control unit is not subject to a criminal

4-13  penalty or subject to civil liability for libel, slander or any similar cause of

4-14  action in tort if he, without malice, discloses information on a fraudulent

4-15  claim or suspicious fire.

4-16  Secs. 10-12.  (Deleted by amendment.)

4-17  Sec. 13.  Chapter 686A of NRS is hereby amended by adding thereto

4-18  the provisions set forth as sections 14 to 17, inclusive, of this act.

4-19  Sec. 14.  “Insurance fraud” means knowingly and willfully:

4-20  1.  Presenting or causing to be presented any statement to an insurer,

4-21  a reinsurer, a producer, a broker or any agent thereof, if the person who

4-22  presents or causes the presentation of the statement knows that the

4-23  statement conceals or omits facts, or contains false or misleading

4-24  information concerning any fact material to an application for the

4-25  issuance of a policy of insurance pursuant to this Title.

4-26  2.  Presenting or causing to be presented any statement as a part of,

4-27  or in support of, a claim for payment or other benefits under a policy of

4-28  insurance issued pursuant to this Title, if the person who presents or

4-29  causes the presentation of the statement knows that the statement

4-30  conceals or omits facts, or contains false or misleading information

4-31  concerning any fact material to that claim.

4-32  3.  Assisting, abetting, soliciting or conspiring with another person to

4-33  present or cause to be presented any statement to an insurer, a reinsurer,

4-34  a producer, a broker or any agent thereof, if the person who assists,

4-35  abets, solicits or conspires knows that the statement conceals or omits

4-36  facts, or contains false or misleading information concerning any fact

4-37  material to an application for the issuance of a policy of insurance

4-38  pursuant to this Title or a claim for payment or other benefits under such

4-39  a policy.

4-40  4.  Acting or failing to act with the intent of defrauding or deceiving

4-41  an insurer, a reinsurer, a producer, a broker or any agent thereof, to

4-42  obtain a policy of insurance pursuant to this Title or any proceeds or

4-43  other benefits under such a policy.

4-44  5.  As a practitioner, an insurer or any agent thereof, acting to assist,

4-45  conspire with or urge another person to commit any act or omission

4-46  specified in this section through deceit, misrepresentation or other

4-47  fraudulent means.

4-48  6.  Accepting any proceeds or other benefits under a policy of

4-49  insurance issued pursuant to this Title, if the person who accepts the

5-1  proceeds or other benefits knows that the proceeds or other benefits are

5-2  derived from any act or omission specified in this section.

5-3    7.  Employing a person to procure clients, patients or other persons

5-4  who obtain services or benefits under a policy of insurance issued

5-5  pursuant to this Title for the purpose of engaging in any act or omission

5-6  specified in this section, except that such insurance fraud does not

5-7  include contact or communication by an insurer or his agent or

5-8  representative with a client, patient or other person if the contact or

5-9  communication is made for a lawful purpose, including, without

5-10  limitation, communication by an insurer with a holder of a policy of

5-11  insurance issued by the insurer or with a claimant concerning the

5-12  settlement of any claims against the policy.

5-13  8.  Participating in, aiding, abetting, conspiring to commit, soliciting

5-14  another person to commit, or permitting an employee or agent to commit

5-15  any act or omission specified in this section.

5-16  Sec. 15.  “Investigative or law enforcement agency” includes:

5-17  1.  The state fire marshal;

5-18  2.  The chief or other officer of the fire department in whose

5-19  jurisdiction a fire has occurred;

5-20  3.  The district attorney of the county where any fraudulent activity

5-21  has occurred or where a fraudulent claim has been made; and

5-22  4.  Any other officer of an agency in this state who has the authority

5-23  to investigate the fraudulent activity or claim.

5-24  Sec. 16.  “Practitioner” means:

5-25  1.  A physician, dentist, nurse, dispensing optician, optometrist,

5-26  physical therapist, podiatric physician, psychologist, chiropractor, doctor

5-27  of Oriental medicine in any form, director or technician of a medical

5-28  laboratory, pharmacist or other provider of health services who is

5-29  authorized to engage in his occupation by the laws of this state or

5-30  another state; and

5-31  2.  An attorney admitted to practice law in this state or any other

5-32  state.

5-33  Sec. 17.  1.  A court may, in addition to imposing the penalties set

5-34  forth in NRS 193.130, order a person who is convicted of, or who pleads

5-35  guilty or nolo contendere to, insurance fraud to pay:

5-36  (a) Court costs; and

5-37  (b) The cost of the investigation and prosecution of the insurance

5-38  fraud for which the person was convicted or to which the person pleaded

5-39  guilty or nolo contendere.

5-40  2.  Any money received by the attorney general pursuant to

5-41  paragraph (b) of subsection 1 must be accounted for separately and used

5-42  to pay the expenses of the fraud control unit for insurance established

5-43  pursuant to section 27 of this act, and is hereby authorized for

5-44  expenditure for that purpose. The money in the account does not revert

5-45  to the state general fund at the end of any fiscal year and must be carried

5-46  forward to the next fiscal year.

5-47  3.  An insurer or other organization, or any other person, subject to

5-48  the jurisdiction of the commissioner pursuant to this Title shall be

6-1  deemed to be a victim for the purposes of restitution in a case that

6-2  involves insurance fraud or that is related to a claim of insurance fraud.

6-3    Sec. 18.  NRS 686A.281 is hereby amended to read as follows:

6-4    686A.281 As used in NRS 686A.281 to 686A.295, inclusive, and

6-5  sections 14 to 17, inclusive, of this act, unless the context otherwise

6-6  requires, the [term “investigative or law enforcement agency” includes:

6-7    1.  The state fire marshal;

6-8    2.  The district attorney of the county where any fraudulent activity has

6-9  occurred or a fraudulent claim has been made;

6-10  3.  The chief or other officer of the fire department where a fire

6-11  occurred; and

6-12  4.  Any other agency in this state who has the authority to investigate

6-13  the fraudulent claims or activities.] words and terms defined in sections

6-14  14, 15 and 16 of this act have the meanings ascribed to them in those

6-15  sections.

6-16  Sec. 19.  NRS 686A.283 is hereby amended to read as follows:

6-17  686A.283  1.  Any person,governmental entity, insurer or authorized

6-18  representative of an insurer [, who believes, or has reason to believe, that a

6-19  fraudulent claim for benefits under a policy of insurance has been made, or

6-20  is about to be made] shall report any information concerning [that claim]

6-21  insurance fraud to the commissioner and attorney general on a form

6-22  prescribed by the commissioner[.] and attorney general.

6-23  2.  The commissioner and attorney general shall[:] each

6-24  independently:

6-25  (a) Review each report of [a fraudulent claim;] insurance fraud; and

6-26  (b) Determine whether an investigation should be made of the facts in

6-27  the report.

6-28  3.  During [his investigation,] their respective investigations, the

6-29  commissioner and attorney general shall independently determine

6-30  whether there is probable cause to believe that [there was deceit, fraud or

6-31  an intentional misrepresentation of a material fact in the claim.

6-32  4.  If the commissioner determines that the provisions of NRS

6-33  686A.010 to 686A.310, inclusive, have been violated he shall report his

6-34  findings to the district attorney of the county where the violation occurred.]

6-35  insurance fraud has occurred.

6-36  4.  A district attorney of any county where fraudulent activity has

6-37  occurred or is occurring or where a fraudulent claim that would

6-38  constitute insurance fraud has been made may, with the permission of

6-39  the attorney general or at the request of the attorney general, institute

6-40  proceedings in the name of the State of Nevada.

6-41  Sec. 20.  NRS 686A.285 is hereby amended to read as follows:

6-42  686A.285  1.  If an insurer [believes] has a reasonable suspicion that

6-43  a loss to an insured may have been caused by other than an accidental or a

6-44  natural occurrence, the insurer shall notify the commissioner and attorney

6-45  general in writing of the insurer’s reasons for [so believing.] the suspicion.

6-46  2.  Any insurer making such a report shall provide the commissioner

6-47  and attorney general with any information the insurer obtained during its

6-48  investigation of the claim.

7-1    3.  If the loss referred to in subsection 1 is believed to be caused by

7-2  fire, the insurer shall also so notify an investigative or law enforcement

7-3  agency.

7-4    Sec. 21.  NRS 686A.287 is hereby amended to read as follows:

7-5    686A.287 1.  Every insurer shall provide information [on a fraudulent

7-6  claim] concerning insurance fraud to the attorney general, the

7-7  commissioner, any investigative or law enforcement agency or any agency

7-8  of the Federal Government , if the insurer receives a request in writing for

7-9  that information.

7-10  2.  The information requested from an insurer may include:

7-11  (a) Information about the policy of insurance on the property which was

7-12  demolished or destroyed, including information from the application for

7-13  insurance;

7-14  (b) Information on previous claims made by the insured;

7-15  (c) Records of the premiums paid for the policy of insurance; and

7-16  (d) Information concerning the insurer’s investigation of the claim,

7-17  including statements of any person, information submitted as proof of the

7-18  loss or any other relevant information on the claim.

7-19  Sec. 22.  NRS 686A.289 is hereby amended to read as follows:

7-20  686A.289 1.  Any insurer giving information to the attorney general,

7-21  the commissioner or any investigative or law enforcement agency

7-22  concerning an act or omission alleged [fraudulent claim] to be insurance

7-23  fraud is entitled to receive, upon completion of the investigation or

7-24  prosecution of the [claim,] insurance fraud, whichever occurs later, any

7-25  relevant information concerning the [claim.] fraudulent activity.

7-26  2.  The attorney general, the commissioner or any investigative or law

7-27  enforcement agency receiving information from another person, agency or

7-28  insurer shall:

7-29  (a) Keep the information confidential and not release the information

7-30  except pursuant to subsection 1;

7-31  (b) Provide information concerning its investigation of the [claim]

7-32  insurance fraud to the insurer reporting the [claim] fraudulent activity

7-33  upon the completion of its investigation or a criminal prosecution,

7-34  whichever occurs later; and

7-35  (c) Provide any documents necessary or allow its employees or agents

7-36  to testify in any action by or against the insurer if the insurer or its insured

7-37  furnished the information for the investigation or a criminal prosecution.

7-38  Sec. 23.  NRS 686A.291 is hereby amended to read as follows:

7-39  686A.291 [1.  A person commits insurance fraud if he knowingly and

7-40  willfully:

7-41  (a) Presents or causes to be presented any statement to an insurer, a

7-42  reinsurer, a producer, a broker or any agent thereof, known by him to

7-43  contain false, incomplete or misleading information concerning any fact

7-44  material to an application for the issuance of a policy of insurance pursuant

7-45  to this Title.

7-46  (b) Presents or causes to be presented any statement as a part of, or in

7-47  support of, a claim for payment or other benefits under a policy of

7-48  insurance issued pursuant to this Title, known by him to contain false,

8-1  incomplete or misleading information concerning any fact material to that

8-2  claim.

8-3    (c) Assists, abets, solicits or conspires with another person to present or

8-4  cause to be presented any statement to an insurer, reinsurer, producer,

8-5  broker or any agent thereof, known by him to contain false, incomplete or

8-6  misleading information concerning any fact material to an application for

8-7  the issuance of a policy of insurance pursuant to this Title or a claim for

8-8  payment or other benefits under such a policy.

8-9    (d) Acts or fails to act with the intent of defrauding or deceiving an

8-10  insurer, a reinsurer, a producer, a broker or any agent thereof, in order to

8-11  obtain a policy of insurance pursuant to this Title or any proceeds or other

8-12  benefits under such a policy.

8-13  (e) As a practitioner, an insurer or any agent thereof, acts to assist,

8-14  conspire with or urge another person to violate any provision of this section

8-15  through deceit, misrepresentation or other fraudulent means.

8-16  (f) Accepts any proceeds or other benefits under a policy of insurance

8-17  issued pursuant to this Title known by him to be derived from any act or

8-18  omission which violates any provision of this section.

8-19  (g) Employs a person to procure clients, patients or other persons who

8-20  obtain services or benefits under a policy of insurance issued pursuant to

8-21  this Title for the purpose of engaging in any activity prohibited by this

8-22  section. This paragraph does not prohibit contact or communication by an

8-23  insurer or his agent or representative with a client, patient or other person if

8-24  the contact or communication is made for a lawful purpose, including,

8-25  without limitation, communication by an insurer with a holder of a policy

8-26  of insurance issued by the insurer or with a claimant concerning the

8-27  settlement of any claims against the policy.

8-28  2.  A person commits insurance fraud if he knowingly and willfully

8-29  participates in, aids, abets, conspires to commit, solicits another person to

8-30  commit, or permits an employee or agent to commit an act of insurance

8-31  fraud prohibited by subsection 1.

8-32  3.] A person who commits insurance fraud is guilty of a category D

8-33  felony and shall be punished as provided in NRS 193.130.

8-34  [4.  For the purposes of this section, “practitioner” means:

8-35  (a) A physician, dentist, nurse, dispensing optician, optometrist,

8-36  physical therapist, podiatric physician, psychologist, chiropractor, doctor of

8-37  Oriental medicine in any form, director or technician of a medical

8-38  laboratory, pharmacist or other provider of health services who is

8-39  authorized to engage in his occupation by the laws of this state or another

8-40  state; and

8-41  (b) An attorney admitted to practice law in this state or any other state.]

8-42  Sec. 24.  NRS 686A.295 is hereby amended to read as follows:

8-43  686A.295 If a person who is licensed or registered under the laws of

8-44  the State of Nevada to engage in a business or profession is convicted of or

8-45  pleads guilty to engaging in an act of insurance fraud , [prohibited by NRS

8-46  686A.291,] the commissioner and the attorney general shall forward to

8-47  each agency by which the convicted person is licensed or registered a copy

8-48  of the conviction or plea and all supporting evidence of the act of insurance

8-49  fraud. An agency that receives information from the commissioner and

9-1  attorney general pursuant to this section shall, not later than 1 year after the

9-2  date on which it receives the information, submit a report which sets forth

9-3  the action taken by the agency against the convicted person, including, but

9-4  not limited to, the revocation or suspension of the license or any other

9-5  disciplinary action, to the director of the legislative counsel bureau for

9-6  transmittal to the legislature.

9-7    Sec. 25.  NRS 686A.315 is hereby amended to read as follows:

9-8    686A.315  1.  If a hospital submits to an insurer the form commonly

9-9  referred to as the “UB-82,” the form must contain or be accompanied by a

9-10  statement in substantially the following form:

 

9-11  Any person who misrepresents or falsifies essential information

9-12  requested on this form may, upon conviction, be subject to a fine and

9-13  imprisonment under state or federal law, or both.

 

9-14  2.  If a person who is licensed to practice one of the health professions

9-15  regulated by Title 54 of NRS submits to an insurer the form commonly

9-16  referred to as the “HCFA-1500” for a patient who is not covered by any

9-17  governmental program which offers insurance coverage for health care, the

9-18  form must be accompanied by a statement in substantially the following

9-19  form:

 

9-20  Any person who knowingly files a statement of claim containing any

9-21  misrepresentation or any false, incomplete or misleading information

9-22  may be guilty of a criminal act punishable under state or federal law,

9-23  or both, and may be subject to civil penalties.

 

9-24  3.  The failure to provide any of the statements required by this section

9-25  is not a defense in a prosecution for [a violation of] insurance fraud

9-26  pursuant to NRS 686A.291.

9-27  Sec. 26.  NRS 207.360 is hereby amended to read as follows:

9-28  207.360  “Crime related to racketeering” means the commission of,

9-29  attempt to commit or conspiracy to commit any of the following crimes:

9-30  1.  Murder;

9-31  2.  Manslaughter;

9-32  3.  Mayhem;

9-33  4.  Battery which is punished as a felony;

9-34  5.  Kidnapping;

9-35  6.  Sexual assault;

9-36  7.  Arson;

9-37  8.  Robbery;

9-38  9.  Taking property from another under circumstances not amounting to

9-39  robbery;

9-40  10.  Extortion;

9-41  11.  Statutory sexual seduction;

9-42  12.  Extortionate collection of debt in violation of NRS 205.322;

9-43  13.  Forgery;

9-44  14.  Any violation of NRS 199.280 which is punished as a felony;

9-45  15.  Burglary;

10-1  16.  Grand larceny;

10-2  17.  Bribery or asking for or receiving a bribe in violation of chapter

10-3  197 or 199 of NRS which is punished as a felony;

10-4  18.  Battery with intent to commit a crime in violation of NRS 200.400;

10-5  19.  Assault with a deadly weapon;

10-6  20.  Any violation of NRS 453.232, 453.316 to 453.3395, inclusive, or

10-7  453.375 to 453.401, inclusive;

10-8  21.  Receiving or transferring a stolen vehicle;

10-9  22.  Any violation of NRS 202.260, 202.275 or 202.350 which is

10-10  punished as a felony;

10-11  23.  Any violation of subsection 2 or 3 of NRS 463.360 or chapter 465

10-12  of NRS;

10-13  24.  Receiving, possessing or withholding stolen goods valued at $250

10-14  or more;

10-15  25.  Embezzlement of money or property valued at $250 or more;

10-16  26.  Obtaining possession of money or property valued at $250 or

10-17  more, or obtaining a signature by means of false pretenses;

10-18  27.  Perjury or subornation of perjury;

10-19  28.  Offering false evidence;

10-20  29.  Any violation of NRS 201.300 or 201.360;

10-21  30.  Any violation of NRS 90.570, 91.230[,] or 686A.290 , or

10-22  insurance fraud pursuant to NRS 686A.291; or

10-23  31.  Any violation of NRS 205.506, 205.920 or 205.930.

10-24  Sec. 27.  Chapter 228 of NRS is hereby amended by adding thereto a

10-25  new section to read as follows:

10-26  1.  The attorney general has primary jurisdiction to conduct criminal

10-27  investigations into and may bring a criminal prosecution for any act

10-28  alleged to be insurance fraud.

10-29  2.  The attorney general shall establish within his office a fraud

10-30  control unit for insurance. The fraud control unit must consist of such

10-31  persons as are necessary to carry out the duties set forth in this section,

10-32  NRS 679B.153 to 679B.158, inclusive, and sections 2 to 6.5, inclusive, of

10-33  this act, and NRS 686A.281 to 686A.291, inclusive, and sections 14 to 17,

10-34  inclusive, of this act, including, without limitation, attorneys and

10-35  investigators.

10-36  3.  The attorney general, acting through the fraud control unit:

10-37  (a) Is the single state agency responsible for the criminal prosecution

10-38  of insurance fraud;

10-39  (b) Shall cooperate with the commissioner of insurance, insurers, and

10-40  investigators and prosecutors of other states and the Federal Government

10-41  in coordinating state and federal criminal investigations and criminal

10-42  prosecutions involving insurance fraud;

10-43  (c) Shall protect the privacy of insurers and insured persons who are

10-44  eligible to receive benefits pursuant to the provisions of Title 57 of NRS

10-45  and shall establish procedures to prevent the misuse of information

10-46  obtained in carrying out this section; and

10-47  (d) May, upon written request, inspect the records of any insurer, the

10-48  commissioner of insurance and the division of insurance of the

11-1  department of business and industry to conduct a criminal investigation

11-2  into any act alleged to be insurance fraud.

11-3  4.  To investigate any act alleged to be insurance fraud, the attorney

11-4  general and members of the fraud control unit may conduct

11-5  investigations into any activity related thereto occurring outside of this

11-6  state, if necessary. To conduct these investigations, the attorney general

11-7  and members of the fraud control unit may:

11-8  (a) Travel outside of this state;

11-9  (b) Cooperate with appropriate agencies or persons outside of this

11-10  state; and

11-11  (c) Designate those agencies or persons to conduct investigations for

11-12  the attorney general.

11-13  5.  When acting pursuant to this section, the attorney general may

11-14  commence his investigation and file a criminal action without leave of

11-15  court, and he has exclusive charge of the conduct of the prosecution. The

11-16  attorney general may conduct preliminary hearings or grand juries for

11-17  the purposes of filing an information or indictment.

11-18  6.  The attorney general shall report the name of each person who

11-19  has been convicted of insurance fraud to the commissioner of insurance.

11-20  7.  The provisions of this section must not be construed to limit or

11-21  diminish the jurisdiction of the commissioner of insurance to regulate

11-22  persons transacting insurance in this state.

11-23  8.  As used in this section, “insurance fraud” has the meaning

11-24  ascribed to it in section 14 of this act.

11-25  Sec. 28.  NRS 477.030 is hereby amended to read as follows:

11-26  477.030  1.  Except as otherwise provided in this section, the state fire

11-27  marshal shall enforce all laws and adopt regulations relating to:

11-28  (a) The prevention of fire.

11-29  (b) The storage and use of:

11-30     (1) Combustibles, flammables and fireworks; and

11-31     (2) Explosives in any commercial construction, but not in mining or

11-32  the control of avalanches,

11-33  under those circumstances that are not otherwise regulated by the division

11-34  of industrial relations of the department of business and industry pursuant

11-35  to NRS 618.890.

11-36  (c) The safety, access, means and adequacy of exit in case of fire from

11-37  mental and penal institutions, facilities for the care of children, foster

11-38  homes, residential facilities for groups, facilities for intermediate care,

11-39  nursing homes, hospitals, schools, all buildings, except private residences,

11-40  which are occupied for sleeping purposes, buildings used for public

11-41  assembly and all other buildings where large numbers of persons work, live

11-42  or congregate for any purpose. As used in this paragraph, “public

11-43  assembly” means a building or a portion of a building used for the

11-44  gathering together of 50 or more persons for purposes of deliberation,

11-45  education, instruction, worship, entertainment, amusement or awaiting

11-46  transportation, or the gathering together of 100 or more persons in

11-47  establishments for drinking or dining.

11-48  (d) The suppression and punishment of arson and fraudulent claims or

11-49  practices in connection with fire losses.

12-1  The regulations of the state fire marshal apply throughout the state, but,

12-2  except with respect to state-owned or state-occupied buildings, his

12-3  authority to enforce them or conduct investigations under this chapter does

12-4  not extend to a county whose population is 50,000 or more or which has

12-5  been converted into a consolidated municipality, except in those local

12-6  jurisdictions in those counties where he is requested to exercise that

12-7  authority by the chief officer of the organized fire department of that

12-8  jurisdiction.

12-9  2.  The state fire marshal may set standards for equipment and

12-10  appliances pertaining to fire safety or to be used for fire protection within

12-11  this state, including the threads used on fire hose couplings and hydrant

12-12  fittings.

12-13  3.  The state fire marshal shall cooperate with the state forester

12-14  firewarden in the preparation of regulations relating to standards for fire

12-15  retardant roofing materials pursuant to paragraph (e) of subsection 1 of

12-16  NRS 472.040.

12-17  4.  The state fire marshal shall cooperate with the division of child and

12-18  family services of the department of human resources in establishing

12-19  reasonable minimum standards for overseeing the safety of and directing

12-20  the means and adequacy of exit in case of fire from family foster homes

12-21  and group foster homes.

12-22  5.  The state fire marshal shall coordinate all activities conducted

12-23  pursuant to 15 U.S.C. §§ 2201 et seq. and receive and distribute money

12-24  allocated by the United States pursuant to that act.

12-25  6.  Except as otherwise provided in subsection 10, the state fire marshal

12-26  shall:

12-27  (a) Investigate any fire which occurs in a county other than one whose

12-28  population is 50,000 or more or which has been converted into a

12-29  consolidated municipality, and from which a death results or which is of a

12-30  suspicious nature.

12-31  (b) Investigate any fire which occurs in a county whose population is

12-32  50,000 or more or which has been converted into a consolidated

12-33  municipality, and from which a death results or which is of a suspicious

12-34  nature, if requested to do so by the chief officer of the fire department in

12-35  whose jurisdiction the fire occurs.

12-36  (c) Cooperate with the commissioner of insurance , the attorney

12-37  general and the fraud control unit established pursuant to section 27 of

12-38  this act in any investigation of a fraudulent claim under an insurance policy

12-39  for any fire of a suspicious nature.

12-40  (d) Cooperate with any local fire department in the investigation of any

12-41  report received pursuant to NRS 629.045.

12-42  (e) Provide specialized training in investigating the causes of fires if

12-43  requested to do so by the chief officer of an organized fire department.

12-44  7.  The state fire marshal shall put the National Fire Incident Reporting

12-45  System into effect throughout the state and publish at least annually a

12-46  summary of data collected under the system.

12-47  8.  The state fire marshal shall provide assistance and materials to local

12-48  authorities, upon request, for the establishment of programs for public

12-49  education and other fire prevention activities.

13-1  9.  The state fire marshal shall:

13-2  (a) Assist in checking plans and specifications for construction;

13-3  (b) Provide specialized training to local fire departments; and

13-4  (c) Assist local governments in drafting regulations and ordinances,

13-5  on request or as he deems necessary.

13-6  10.  In a county other than one whose population is 50,000 or more or

13-7  which has been converted into a consolidated municipality, the state fire

13-8  marshal shall, upon request by a local government, delegate to the local

13-9  government by interlocal agreement all or a portion of his authority or

13-10  duties if the local government’s personnel and programs are, as determined

13-11  by the state fire marshal, equally qualified to perform those functions. If a

13-12  local government fails to maintain the qualified personnel and programs in

13-13  accordance with such an agreement, the state fire marshal shall revoke the

13-14  agreement.

13-15  Sec. 29.  This act becomes effective upon passage and approval.

 

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