(REPRINTED WITH ADOPTED AMENDMENTS)
SECOND REPRINT A.B. 135
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.
~
EXPLANATION
– Matter in bolded italics is new; matter
between brackets [omitted material] is material to be omitted.
Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).
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; 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;
1-17 2. Against any person or entity who is or has been engaged in the
1-18 business of insurance without a license as required by this Title,
2-1 including, without limitation, the unauthorized transaction of insurance
2-2 in violation of chapter 685B of NRS; or
2-3 3. Against any person or entity as the commissioner deems
2-4 appropriate.
2-5 Sec. 6. (Deleted by amendment.)
2-6 Sec. 6.5 1. All records and other information related to an
2-7 investigation conducted by the attorney general and the fraud control
2-8 unit for the prosecution of insurance fraud are confidential unless:
2-9 (a) The attorney general releases, in such manner as he deems
2-10 appropriate, all or any part of the records or information for public
2-11 inspection after determining that the release of the records or
2-12 information:
2-13 (1) Will not harm the investigation or the person who is being
2-14 investigated; or
2-15 (2) Serves the interests of a policyholder, the shareholders of the
2-16 insurer or the public; or
2-17 (b) A court orders the release of the records or information after
2-18 determining that the production of the records or information will not
2-19 damage any investigation being conducted by the fraud control unit.
2-20 2. The attorney general may classify as confidential specific records
2-21 and other information if the records or other information was obtained
2-22 from a governmental agency or other source upon the express condition
2-23 that the contents would remain confidential.
2-24 3. All information and documents in the possession of the attorney
2-25 general and the fraud control unit that are related to cases or matters
2-26 under investigation are confidential for the duration of the investigation
2-27 and may not be made public unless the attorney general finds the
2-28 existence of an imminent threat of harm to the safety or welfare of the
2-29 policyholder, shareholders or the public and determines that the interests
2-30 of the policyholder, shareholders or the public will be served by
2-31 publication thereof, in which event he may make a record public or
2-32 publish all or any part of the record in any manner he deems
2-33 appropriate.
2-34 Sec. 7. NRS 679B.155 is hereby amended to read as follows:
2-35 679B.155 To investigate [fraudulent claims for benefits from a policy
2-36 of insurance,] violations of the provisions of this Title, or to assist the
2-37 attorney general or other local, state or federal investigative and law
2-38 enforcement agencies in investigating an act of insurance fraud, the
2-39 commissioner may:
2-40 1. Designate employees of the division as investigators to carry out the
2-41 provisions of NRS 679B.153 to 679B.158, inclusive[.] , and sections 2 to
2-42 6.5, inclusive, of this act.
2-43 2. Conduct investigations into such activities occurring outside this
2-44 state, if necessary. To conduct these investigations, the commissioner or
2-45 his investigators may:
2-46 (a) Travel outside this state;
2-47 (b) Cooperate with appropriate agencies or persons outside this state; or
2-48 (c) Designate those agencies to conduct investigations for the
2-49 commissioner.
3-1 3. Assist officials of investigative or law enforcement agencies of any
3-2 other state or the Federal Government who are investigating fraudulent
3-3 claims and who request assistance from the commissioner.
3-4 Sec. 8. NRS 679B.156 is hereby amended to read as follows:
3-5 679B.156 1. Every person in charge of an investigative or law
3-6 enforcement agency within this state shall [cooperate] :
3-7 (a) Cooperate with the commissioner [or] and his investigators [and
3-8 shall furnish the commissioner, upon his] , and the attorney general and
3-9 the members of the fraud control unit; and
3-10 (b) Upon request, furnish the commissioner or attorney general, as
3-11 appropriate, with any information necessary for [his] the investigation of
3-12 [fraudulent claims.] insurance fraud.
3-13 2. The commissioner and the attorney general shall:
3-14 (a) Assist any official of an investigative or a law enforcement agency
3-15 of this state, any other state or the Federal Government who requests
3-16 assistance in investigating [fraudulent claims against an insurer;] any act of
3-17 insurance fraud; and
3-18 (b) Furnish to those officials any information, not otherwise
3-19 confidential, concerning his investigation or his report on [fraudulent
3-20 claims.] insurance fraud.
3-21 Sec. 9. NRS 679B.157 is hereby amended to read as follows:
3-22 679B.157 [An]Any person, governmental entity, insurer, employee or
3-23 representative of an insurer, official of an investigative or law enforcement
3-24 agency, employee of the division ,[or]the commissioner , the attorney
3-25 general or a member of the fraud control unit is not subject to a criminal
3-26 penalty or subject to civil liability for libel, slander or any similar cause of
3-27 action in tort if he, without malice, discloses information on a fraudulent
3-28 claim or suspicious fire.
3-29 Secs. 10-12. (Deleted by amendment.)
3-30 Sec. 13. Chapter 686A of NRS is hereby amended by adding thereto
3-31 the provisions set forth as sections 14 to 17, inclusive, of this act.
3-32 Sec. 14. “Insurance fraud” means knowingly and willfully:
3-33 1. Presenting or causing to be presented any statement to an insurer,
3-34 a reinsurer, a producer, a broker or any agent thereof, if the person who
3-35 presents or causes the presentation of the statement knows that the
3-36 statement conceals or omits facts, or contains false or misleading
3-37 information concerning any fact material to an application for the
3-38 issuance of a policy of insurance pursuant to this Title.
3-39 2. Presenting or causing to be presented any statement as a part of,
3-40 or in support of, a claim for payment or other benefits under a policy of
3-41 insurance issued pursuant to this Title, if the person who presents or
3-42 causes the presentation of the statement knows that the statement
3-43 conceals or omits facts, or contains false or misleading information
3-44 concerning any fact material to that claim.
3-45 3. Assisting, abetting, soliciting or conspiring with another person to
3-46 present or cause to be presented any statement to an insurer, a reinsurer,
3-47 a producer, a broker or any agent thereof, if the person who assists,
3-48 abets, solicits or conspires knows that the statement conceals or omits
3-49 facts, or contains false or misleading information concerning any fact
4-1 material to an application for the issuance of a policy of insurance
4-2 pursuant to this Title or a claim for payment or other benefits under such
4-3 a policy.
4-4 4. Acting or failing to act with the intent of defrauding or deceiving
4-5 an insurer, a reinsurer, a producer, a broker or any agent thereof, to
4-6 obtain a policy of insurance pursuant to this Title or any proceeds or
4-7 other benefits under such a policy.
4-8 5. As a practitioner, an insurer or any agent thereof, acting to assist,
4-9 conspire with or urge another person to commit any act or omission
4-10 specified in this section through deceit, misrepresentation or other
4-11 fraudulent means.
4-12 6. Accepting any proceeds or other benefits under a policy of
4-13 insurance issued pursuant to this Title, if the person who accepts the
4-14 proceeds or other benefits knows that the proceeds or other benefits are
4-15 derived from any act or omission specified in this section.
4-16 7. Employing a person to procure clients, patients or other persons
4-17 who obtain services or benefits under a policy of insurance issued
4-18 pursuant to this Title for the purpose of engaging in any act or omission
4-19 specified in this section, except that such insurance fraud does not
4-20 include contact or communication by an insurer or his agent or
4-21 representative with a client, patient or other person if the contact or
4-22 communication is made for a lawful purpose, including, without
4-23 limitation, communication by an insurer with a holder of a policy of
4-24 insurance issued by the insurer or with a claimant concerning the
4-25 settlement of any claims against the policy.
4-26 8. Participating in, aiding, abetting, conspiring to commit, soliciting
4-27 another person to commit, or permitting an employee or agent to commit
4-28 any act or omission specified in this section.
4-29 Sec. 15. “Investigative or law enforcement agency” includes:
4-30 1. The state fire marshal;
4-31 2. The chief or other officer of the fire department in whose
4-32 jurisdiction a fire has occurred;
4-33 3. The district attorney of the county where any fraudulent activity
4-34 has occurred or where a fraudulent claim has been made; and
4-35 4. Any other officer of an agency in this state who has the authority
4-36 to investigate the fraudulent activity or claim.
4-37 Sec. 16. “Practitioner” means:
4-38 1. A physician, dentist, nurse, dispensing optician, optometrist,
4-39 physical therapist, podiatric physician, psychologist, chiropractor, doctor
4-40 of Oriental medicine in any form, director or technician of a medical
4-41 laboratory, pharmacist or other provider of health services who is
4-42 authorized to engage in his occupation by the laws of this state or
4-43 another state; and
4-44 2. An attorney admitted to practice law in this state or any other
4-45 state.
4-46 Sec. 17. 1. A court may, in addition to imposing the penalties set
4-47 forth in NRS 193.130, order a person who is convicted of, or who pleads
4-48 guilty or nolo contendere to, insurance fraud to pay:
4-49 (a) Court costs; and
5-1 (b) The cost of the investigation and prosecution of the insurance
5-2 fraud for which the person was convicted or to which the person pleaded
5-3 guilty or nolo contendere.
5-4 2. Any money received by the attorney general pursuant to
5-5 paragraph (b) of subsection 1 must be accounted for separately and used
5-6 to pay the expenses of the fraud control unit for insurance established
5-7 pursuant to section 27 of this act, and is hereby authorized for
5-8 expenditure for that purpose. The money in the account does not revert
5-9 to the state general fund at the end of any fiscal year and must be carried
5-10 forward to the next fiscal year.
5-11 3. An insurer or other organization, or any other person, subject to
5-12 the jurisdiction of the commissioner pursuant to this Title shall be
5-13 deemed to be a victim for the purposes of restitution in a case that
5-14 involves insurance fraud or that is related to a claim of insurance fraud.
5-15 Sec. 18. NRS 686A.281 is hereby amended to read as follows:
5-16 686A.281 As used in NRS 686A.281 to 686A.295, inclusive, and
5-17 sections 14 to 17, inclusive, of this act, unless the context otherwise
5-18 requires, the [term “investigative or law enforcement agency” includes:
5-19 1. The state fire marshal;
5-20 2. The district attorney of the county where any fraudulent activity has
5-21 occurred or a fraudulent claim has been made;
5-22 3. The chief or other officer of the fire department where a fire
5-23 occurred; and
5-24 4. Any other agency in this state who has the authority to investigate
5-25 the fraudulent claims or activities.] words and terms defined in sections
5-26 14, 15 and 16 of this act have the meanings ascribed to them in those
5-27 sections.
5-28 Sec. 19. NRS 686A.283 is hereby amended to read as follows:
5-29 686A.283 1. Any person,governmental entity, insurer or authorized
5-30 representative of an insurer [, who believes, or has reason to believe, that a
5-31 fraudulent claim for benefits under a policy of insurance has been made, or
5-32 is about to be made] shall report any information concerning [that claim]
5-33 insurance fraud to the commissioner and attorney general on a form
5-34 prescribed by the commissioner[.] and attorney general.
5-35 2. The commissioner and attorney general shall[:] each
5-36 independently:
5-37 (a) Review each report of [a fraudulent claim;] insurance fraud; and
5-38 (b) Determine whether an investigation should be made of the facts in
5-39 the report.
5-40 3. During [his investigation,] their respective investigations, the
5-41 commissioner and attorney general shall independently determine
5-42 whether there is probable cause to believe that [there was deceit, fraud or
5-43 an intentional misrepresentation of a material fact in the claim.
5-44 4. If the commissioner determines that the provisions of NRS
5-45 686A.010 to 686A.310, inclusive, have been violated he shall report his
5-46 findings to the district attorney of the county where the violation occurred.]
5-47 insurance fraud has occurred.
5-48 4. A district attorney of any county where fraudulent activity has
5-49 occurred or is occurring or where a fraudulent claim that would
6-1 constitute insurance fraud has been made may, with the permission of
6-2 the attorney general or at the request of the attorney general, institute
6-3 proceedings in the name of the State of Nevada.
6-4 Sec. 20. NRS 686A.285 is hereby amended to read as follows:
6-5 686A.285 1. If an insurer [believes] has a reasonable suspicion that
6-6 a loss to an insured may have been caused by other than an accidental or a
6-7 natural occurrence, the insurer shall notify the commissioner and attorney
6-8 general in writing of the insurer’s reasons for [so believing.] the suspicion.
6-9 2. Any insurer making such a report shall provide the commissioner
6-10 and attorney general with any information the insurer obtained during its
6-11 investigation of the claim.
6-12 3. If the loss referred to in subsection 1 is believed to be caused by
6-13 fire, the insurer shall also so notify an investigative or law enforcement
6-14 agency.
6-15 Sec. 21. NRS 686A.287 is hereby amended to read as follows:
6-16 686A.287 1. Every insurer shall provide information [on a fraudulent
6-17 claim] concerning insurance fraud to the attorney general, the
6-18 commissioner, any investigative or law enforcement agency or any agency
6-19 of the Federal Government , if the insurer receives a request in writing for
6-20 that information.
6-21 2. The information requested from an insurer may include:
6-22 (a) Information about the policy of insurance on the property which was
6-23 demolished or destroyed, including information from the application for
6-24 insurance;
6-25 (b) Information on previous claims made by the insured;
6-26 (c) Records of the premiums paid for the policy of insurance; and
6-27 (d) Information concerning the insurer’s investigation of the claim,
6-28 including statements of any person, information submitted as proof of the
6-29 loss or any other relevant information on the claim.
6-30 Sec. 22. NRS 686A.289 is hereby amended to read as follows:
6-31 686A.289 1. Any insurer giving information to the attorney general,
6-32 the commissioner or any investigative or law enforcement agency
6-33 concerning an act or omission alleged [fraudulent claim] to be insurance
6-34 fraud is entitled to receive, upon completion of the investigation or
6-35 prosecution of the [claim,] insurance fraud, whichever occurs later, any
6-36 relevant information concerning the [claim.] fraudulent activity.
6-37 2. The attorney general, the commissioner or any investigative or law
6-38 enforcement agency receiving information from another person, agency or
6-39 insurer shall:
6-40 (a) Keep the information confidential and not release the information
6-41 except pursuant to subsection 1;
6-42 (b) Provide information concerning its investigation of the [claim]
6-43 insurance fraud to the insurer reporting the [claim] fraudulent activity
6-44 upon the completion of its investigation or a criminal prosecution,
6-45 whichever occurs later; and
6-46 (c) Provide any documents necessary or allow its employees or agents
6-47 to testify in any action by or against the insurer if the insurer or its insured
6-48 furnished the information for the investigation or a criminal prosecution.
7-1 Sec. 23. NRS 686A.291 is hereby amended to read as follows:
7-2 686A.291 [1. A person commits insurance fraud if he knowingly and
7-3 willfully:
7-4 (a) Presents or causes to be presented any statement to an insurer, a
7-5 reinsurer, a producer, a broker or any agent thereof, known by him to
7-6 contain false, incomplete or misleading information concerning any fact
7-7 material to an application for the issuance of a policy of insurance pursuant
7-8 to this Title.
7-9 (b) Presents or causes to be presented any statement as a part of, or in
7-10 support of, a claim for payment or other benefits under a policy of
7-11 insurance issued pursuant to this Title, known by him to contain false,
7-12 incomplete or misleading information concerning any fact material to that
7-13 claim.
7-14 (c) Assists, abets, solicits or conspires with another person to present or
7-15 cause to be presented any statement to an insurer, reinsurer, producer,
7-16 broker or any agent thereof, known by him to contain false, incomplete or
7-17 misleading information concerning any fact material to an application for
7-18 the issuance of a policy of insurance pursuant to this Title or a claim for
7-19 payment or other benefits under such a policy.
7-20 (d) Acts or fails to act with the intent of defrauding or deceiving an
7-21 insurer, a reinsurer, a producer, a broker or any agent thereof, in order to
7-22 obtain a policy of insurance pursuant to this Title or any proceeds or other
7-23 benefits under such a policy.
7-24 (e) As a practitioner, an insurer or any agent thereof, acts to assist,
7-25 conspire with or urge another person to violate any provision of this section
7-26 through deceit, misrepresentation or other fraudulent means.
7-27 (f) Accepts any proceeds or other benefits under a policy of insurance
7-28 issued pursuant to this Title known by him to be derived from any act or
7-29 omission which violates any provision of this section.
7-30 (g) Employs a person to procure clients, patients or other persons who
7-31 obtain services or benefits under a policy of insurance issued pursuant to
7-32 this Title for the purpose of engaging in any activity prohibited by this
7-33 section. This paragraph does not prohibit contact or communication by an
7-34 insurer or his agent or representative with a client, patient or other person if
7-35 the contact or communication is made for a lawful purpose, including,
7-36 without limitation, communication by an insurer with a holder of a policy
7-37 of insurance issued by the insurer or with a claimant concerning the
7-38 settlement of any claims against the policy.
7-39 2. A person commits insurance fraud if he knowingly and willfully
7-40 participates in, aids, abets, conspires to commit, solicits another person to
7-41 commit, or permits an employee or agent to commit an act of insurance
7-42 fraud prohibited by subsection 1.
7-43 3.] A person who commits insurance fraud is guilty of a category D
7-44 felony and shall be punished as provided in NRS 193.130.
7-45 [4. For the purposes of this section, “practitioner” means:
7-46 (a) A physician, dentist, nurse, dispensing optician, optometrist,
7-47 physical therapist, podiatric physician, psychologist, chiropractor, doctor of
7-48 Oriental medicine in any form, director or technician of a medical
7-49 laboratory, pharmacist or other provider of health services who is
8-1 authorized to engage in his occupation by the laws of this state or another
8-2 state; and
8-3 (b) An attorney admitted to practice law in this state or any other state.]
8-4 Sec. 24. NRS 686A.295 is hereby amended to read as follows:
8-5 686A.295 If a person who is licensed or registered under the laws of
8-6 the State of Nevada to engage in a business or profession is convicted of or
8-7 pleads guilty to engaging in an act of insurance fraud , [prohibited by NRS
8-8 686A.291,] the commissioner and the attorney general shall forward to
8-9 each agency by which the convicted person is licensed or registered a copy
8-10 of the conviction or plea and all supporting evidence of the act of insurance
8-11 fraud. An agency that receives information from the commissioner and
8-12 attorney general pursuant to this section shall, not later than 1 year after the
8-13 date on which it receives the information, submit a report which sets forth
8-14 the action taken by the agency against the convicted person, including, but
8-15 not limited to, the revocation or suspension of the license or any other
8-16 disciplinary action, to the director of the legislative counsel bureau for
8-17 transmittal to the legislature.
8-18 Sec. 25. NRS 686A.315 is hereby amended to read as follows:
8-19 686A.315 1. If a hospital submits to an insurer the form commonly
8-20 referred to as the “UB-82,” the form must contain or be accompanied by a
8-21 statement in substantially the following form:
8-22 Any person who misrepresents or falsifies essential information
8-23 requested on this form may, upon conviction, be subject to a fine and
8-24 imprisonment under state or federal law, or both.
8-25 2. If a person who is licensed to practice one of the health professions
8-26 regulated by Title 54 of NRS submits to an insurer the form commonly
8-27 referred to as the “HCFA-1500” for a patient who is not covered by any
8-28 governmental program which offers insurance coverage for health care, the
8-29 form must be accompanied by a statement in substantially the following
8-30 form:
8-31 Any person who knowingly files a statement of claim containing any
8-32 misrepresentation or any false, incomplete or misleading information
8-33 may be guilty of a criminal act punishable under state or federal law,
8-34 or both, and may be subject to civil penalties.
8-35 3. The failure to provide any of the statements required by this section
8-36 is not a defense in a prosecution for [a violation of] insurance fraud
8-37 pursuant to NRS 686A.291.
8-38 Sec. 26. NRS 207.360 is hereby amended to read as follows:
8-39 207.360 “Crime related to racketeering” means the commission of,
8-40 attempt to commit or conspiracy to commit any of the following crimes:
8-41 1. Murder;
8-42 2. Manslaughter;
8-43 3. Mayhem;
8-44 4. Battery which is punished as a felony;
8-45 5. Kidnapping;
9-1 6. Sexual assault;
9-2 7. Arson;
9-3 8. Robbery;
9-4 9. Taking property from another under circumstances not amounting to
9-5 robbery;
9-6 10. Extortion;
9-7 11. Statutory sexual seduction;
9-8 12. Extortionate collection of debt in violation of NRS 205.322;
9-9 13. Forgery;
9-10 14. Any violation of NRS 199.280 which is punished as a felony;
9-11 15. Burglary;
9-12 16. Grand larceny;
9-13 17. Bribery or asking for or receiving a bribe in violation of chapter
9-14 197 or 199 of NRS which is punished as a felony;
9-15 18. Battery with intent to commit a crime in violation of NRS 200.400;
9-16 19. Assault with a deadly weapon;
9-17 20. Any violation of NRS 453.232, 453.316 to 453.3395, inclusive, or
9-18 453.375 to 453.401, inclusive;
9-19 21. Receiving or transferring a stolen vehicle;
9-20 22. Any violation of NRS 202.260, 202.275 or 202.350 which is
9-21 punished as a felony;
9-22 23. Any violation of subsection 2 or 3 of NRS 463.360 or chapter 465
9-23 of NRS;
9-24 24. Receiving, possessing or withholding stolen goods valued at $250
9-25 or more;
9-26 25. Embezzlement of money or property valued at $250 or more;
9-27 26. Obtaining possession of money or property valued at $250 or
9-28 more, or obtaining a signature by means of false pretenses;
9-29 27. Perjury or subornation of perjury;
9-30 28. Offering false evidence;
9-31 29. Any violation of NRS 201.300 or 201.360;
9-32 30. Any violation of NRS 90.570, 91.230[,] or 686A.290 , or
9-33 insurance fraud pursuant to NRS 686A.291; or
9-34 31. Any violation of NRS 205.506, 205.920 or 205.930.
9-35 Sec. 27. Chapter 228 of NRS is hereby amended by adding thereto a
9-36 new section to read as follows:
9-37 1. The attorney general has primary jurisdiction to conduct criminal
9-38 investigations into and may bring a criminal prosecution for any act
9-39 alleged to be insurance fraud.
9-40 2. The attorney general shall establish within his office a fraud
9-41 control unit for insurance. The fraud control unit must consist of such
9-42 persons as are necessary to carry out the duties set forth in this section,
9-43 NRS 679B.153 to 679B.158, inclusive, and sections 2 to 6.5, inclusive, of
9-44 this act, and NRS 686A.281 to 686A.291, inclusive, and sections 14 to 17,
9-45 inclusive, of this act, including, without limitation, attorneys and
9-46 investigators.
9-47 3. The attorney general, acting through the fraud control unit:
9-48 (a) Is the single state agency responsible for the criminal prosecution
9-49 of insurance fraud;
10-1 (b) Shall cooperate with the commissioner of insurance, insurers, and
10-2 investigators and prosecutors of other states and the Federal Government
10-3 in coordinating state and federal criminal investigations and criminal
10-4 prosecutions involving insurance fraud;
10-5 (c) Shall protect the privacy of insurers and insured persons who are
10-6 eligible to receive benefits pursuant to the provisions of Title 57 of NRS
10-7 and shall establish procedures to prevent the misuse of information
10-8 obtained in carrying out this section; and
10-9 (d) May, upon written request, inspect the records of any insurer, the
10-10 commissioner of insurance and the division of insurance of the
10-11 department of business and industry to conduct a criminal investigation
10-12 into any act alleged to be insurance fraud.
10-13 4. To investigate any act alleged to be insurance fraud, the attorney
10-14 general and members of the fraud control unit may conduct
10-15 investigations into any activity related thereto occurring outside of this
10-16 state, if necessary. To conduct these investigations, the attorney general
10-17 and members of the fraud control unit may:
10-18 (a) Travel outside of this state;
10-19 (b) Cooperate with appropriate agencies or persons outside of this
10-20 state; and
10-21 (c) Designate those agencies or persons to conduct investigations for
10-22 the attorney general.
10-23 5. When acting pursuant to this section, the attorney general may
10-24 commence his investigation and file a criminal action without leave of
10-25 court, and he has exclusive charge of the conduct of the prosecution. The
10-26 attorney general may conduct preliminary hearings or grand juries for
10-27 the purposes of filing an information or indictment.
10-28 6. The attorney general shall report the name of each person who
10-29 has been convicted of insurance fraud to the commissioner of insurance.
10-30 7. The provisions of this section must not be construed to limit or
10-31 diminish the jurisdiction of the commissioner of insurance to regulate
10-32 persons transacting insurance in this state.
10-33 8. As used in this section, “insurance fraud” has the meaning
10-34 ascribed to it in section 14 of this act.
10-35 Sec. 28. NRS 477.030 is hereby amended to read as follows:
10-36 477.030 1. Except as otherwise provided in this section, the state fire
10-37 marshal shall enforce all laws and adopt regulations relating to:
10-38 (a) The prevention of fire.
10-39 (b) The storage and use of:
10-40 (1) Combustibles, flammables and fireworks; and
10-41 (2) Explosives in any commercial construction, but not in mining or
10-42 the control of avalanches,
10-43 under those circumstances that are not otherwise regulated by the division
10-44 of industrial relations of the department of business and industry pursuant
10-45 to NRS 618.890.
10-46 (c) The safety, access, means and adequacy of exit in case of fire from
10-47 mental and penal institutions, facilities for the care of children, foster
10-48 homes, residential facilities for groups, facilities for intermediate care,
10-49 nursing homes, hospitals, schools, all buildings, except private residences,
11-1 which are occupied for sleeping purposes, buildings used for public
11-2 assembly and all other buildings where large numbers of persons work, live
11-3 or congregate for any purpose. As used in this paragraph, “public
11-4 assembly” means a building or a portion of a building used for the
11-5 gathering together of 50 or more persons for purposes of deliberation,
11-6 education, instruction, worship, entertainment, amusement or awaiting
11-7 transportation, or the gathering together of 100 or more persons in
11-8 establishments for drinking or dining.
11-9 (d) The suppression and punishment of arson and fraudulent claims or
11-10 practices in connection with fire losses.
11-11 The regulations of the state fire marshal apply throughout the state, but,
11-12 except with respect to state-owned or state-occupied buildings, his
11-13 authority to enforce them or conduct investigations under this chapter does
11-14 not extend to a county whose population is 50,000 or more or which has
11-15 been converted into a consolidated municipality, except in those local
11-16 jurisdictions in those counties where he is requested to exercise that
11-17 authority by the chief officer of the organized fire department of that
11-18 jurisdiction.
11-19 2. The state fire marshal may set standards for equipment and
11-20 appliances pertaining to fire safety or to be used for fire protection within
11-21 this state, including the threads used on fire hose couplings and hydrant
11-22 fittings.
11-23 3. The state fire marshal shall cooperate with the state forester
11-24 firewarden in the preparation of regulations relating to standards for fire
11-25 retardant roofing materials pursuant to paragraph (e) of subsection 1 of
11-26 NRS 472.040.
11-27 4. The state fire marshal shall cooperate with the division of child and
11-28 family services of the department of human resources in establishing
11-29 reasonable minimum standards for overseeing the safety of and directing
11-30 the means and adequacy of exit in case of fire from family foster homes
11-31 and group foster homes.
11-32 5. The state fire marshal shall coordinate all activities conducted
11-33 pursuant to 15 U.S.C. §§ 2201 et seq. and receive and distribute money
11-34 allocated by the United States pursuant to that act.
11-35 6. Except as otherwise provided in subsection 10, the state fire marshal
11-36 shall:
11-37 (a) Investigate any fire which occurs in a county other than one whose
11-38 population is 50,000 or more or which has been converted into a
11-39 consolidated municipality, and from which a death results or which is of a
11-40 suspicious nature.
11-41 (b) Investigate any fire which occurs in a county whose population is
11-42 50,000 or more or which has been converted into a consolidated
11-43 municipality, and from which a death results or which is of a suspicious
11-44 nature, if requested to do so by the chief officer of the fire department in
11-45 whose jurisdiction the fire occurs.
11-46 (c) Cooperate with the commissioner of insurance , the attorney
11-47 general and the fraud control unit established pursuant to section 27 of
11-48 this act in any investigation of a fraudulent claim under an insurance policy
11-49 for any fire of a suspicious nature.
12-1 (d) Cooperate with any local fire department in the investigation of any
12-2 report received pursuant to NRS 629.045.
12-3 (e) Provide specialized training in investigating the causes of fires if
12-4 requested to do so by the chief officer of an organized fire department.
12-5 7. The state fire marshal shall put the National Fire Incident Reporting
12-6 System into effect throughout the state and publish at least annually a
12-7 summary of data collected under the system.
12-8 8. The state fire marshal shall provide assistance and materials to local
12-9 authorities, upon request, for the establishment of programs for public
12-10 education and other fire prevention activities.
12-11 9. The state fire marshal shall:
12-12 (a) Assist in checking plans and specifications for construction;
12-13 (b) Provide specialized training to local fire departments; and
12-14 (c) Assist local governments in drafting regulations and ordinances,
12-15 on request or as he deems necessary.
12-16 10. In a county other than one whose population is 50,000 or more or
12-17 which has been converted into a consolidated municipality, the state fire
12-18 marshal shall, upon request by a local government, delegate to the local
12-19 government by interlocal agreement all or a portion of his authority or
12-20 duties if the local government’s personnel and programs are, as determined
12-21 by the state fire marshal, equally qualified to perform those functions. If a
12-22 local government fails to maintain the qualified personnel and programs in
12-23 accordance with such an agreement, the state fire marshal shall revoke the
12-24 agreement.
12-25 Sec. 29. This act becomes effective upon passage and approval.
12-26 H