Senate Bill No. 84–Committee on Human
Resources and Facilities

 

(On Behalf of the Department of Human Resources, Division of Aging Services)

 

February 11, 2003

____________

 

Referred to Committee on Human Resources and Facilities

 

SUMMARY—Revises provisions relating to surety bonds and other obligations required of certain facilities that provide care for elderly persons. (BDR 40‑498)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

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

 

AN ACT relating to personal care facilities; revising provisions relating to the administration of surety bonds and other obligations required of certain facilities that provide care for elderly persons; decreasing the amount of those surety bonds and other obligations; exempting certain facilities from the requirement of filing such a surety bond or depositing such an obligation in certain banks or trust companies; 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. NRS 449.065 is hereby amended to read as follows:

1-2  449.065  1.  Except as otherwise provided in [subsection]

1-3  subsections 6 and 7 and NRS 449.067, each facility for intermediate

1-4  care, facility for skilled nursing, residential facility for groups and

1-5  agency to provide nursing in the home shall, when applying for a

1-6  license or renewing a license, file with the Administrator of the

1-7  [Aging Services Division of the Department of Human Resources]

1-8  Health Division a surety bond:

2-1  (a) If the facility or agency employs less than 7 employees, in

2-2  the amount of [$10,000;] $5,000;

2-3  (b) If the facility or agency employs at least 7 but not more than

2-4  25 employees, in the amount of [$50,000;] $25,000; or

2-5  (c) If the facility or agency employs more than 25 employees, in

2-6  the amount of [$100,000.] $50,000.

2-7  2.  A bond filed pursuant to this section must be executed by

2-8  the facility or agency as principal and by a surety company as

2-9  surety. The bond must be payable to the Aging Services Division of

2-10  the Department of Human Resources and must be conditioned to

2-11  provide indemnification to an older patient who the Specialist for

2-12  the Rights of Elderly Persons determines has suffered property

2-13  damage as a result of any act or failure to act by the facility or

2-14  agency to protect the property of the older patient.

2-15      3.  Except when a surety is released, the surety bond must cover

2-16  the period of the initial license to operate or the period of the

2-17  renewal, as appropriate.

2-18      4.  A surety on any bond filed pursuant to this section may be

2-19  released after the surety gives 30 days’ written notice to the

2-20  Administrator of the [Aging Services Division of the Department of

2-21  Human Resources,] Health Division, but the release does not

2-22  discharge or otherwise affect any claim filed by an older patient for

2-23  property damaged as a result of any act or failure to act by the

2-24  facility or agency to protect the property of the older patient alleged

2-25  to have occurred while the bond was in effect.

2-26      5.  A license is suspended by operation of law when the facility

2-27  or agency is no longer covered by a surety bond as required by this

2-28  section or by a substitute for the surety bond pursuant to NRS

2-29  449.067. The Administrator of the [Aging Services Division of the

2-30  Department of Human Resources] Health Division shall give the

2-31  facility or agency at least 20 days’ written notice before the release

2-32  of the surety or the substitute for the surety, to the effect that the

2-33  license will be suspended by operation of law until another surety

2-34  bond or substitute for the surety bond is filed in the same manner

2-35  and amount as the bond or substitute being terminated.

2-36      6.  The Administrator of the [Aging Services Division of the

2-37  Department of Human Resources] Health Division may exempt a

2-38  residential facility for groups from the requirement of filing a surety

2-39  bond pursuant to this section if the Administrator determines that

2-40  the requirement would result in undue hardship to the residential

2-41  facility for groups.

2-42      7.  The requirement of filing a surety bond set forth in this

2-43  section does not apply to a facility for intermediate care, facility

2-44  for skilled nursing, residential facility for groups or agency to

3-1  provide nursing in the home that is operated and maintained by

3-2  the State of Nevada or an agency thereof.

3-3  Sec. 2.  NRS 449.067 is hereby amended to read as follows:

3-4  449.067  1.  As a substitute for the surety bond required

3-5  pursuant to NRS 449.065, a facility for intermediate care, a facility

3-6  for skilled nursing, a residential facility for groups and an agency to

3-7  provide nursing in the home may deposit with any bank or trust

3-8  company authorized to do business in this state, upon approval from

3-9  the Administrator of the [Aging Services Division of the

3-10  Department of Human Resources:] Health Division:

3-11      (a) An obligation of a bank, savings and loan association, thrift

3-12  company or credit union licensed to do business in this state;

3-13      (b) Bills, bonds, notes, debentures or other obligations of the

3-14  United States or any agency or instrumentality thereof, or

3-15  guaranteed by the United States; or

3-16      (c) Any obligation of this state or any city, county, town,

3-17  township, school district or other instrumentality of this state, or

3-18  guaranteed by this state, in an aggregate amount, based upon

3-19  principal amount or market value, whichever is lower.

3-20      2.  The obligations of a bank, savings and loan association,

3-21  thrift company or credit union must be held to secure the same

3-22  obligation as would the surety bond required by NRS 449.065. With

3-23  the approval of the Administrator of the [Aging Services Division,]

3-24  Health Division, the depositor may substitute other suitable

3-25  obligations for those deposited, which must be assigned to the

3-26  Aging Services Division of the Department of Human Resources

3-27  and are negotiable only upon approval by the Administrator of the

3-28  Aging Services Division.

3-29      3.  Any interest or dividends earned on the deposit accrue to the

3-30  account of the depositor.

3-31      4.  The deposit must be an amount at least equal to the surety

3-32  bond required by NRS 449.065 and must state that the amount may

3-33  not be withdrawn except by direct and sole order of the

3-34  Administrator of the Aging Services Division.

3-35      Sec. 3.  On July 1, 2003, or as soon thereafter as practicable,

3-36  the Administrator of the Aging Services Division of the Department

3-37  of Human Resources shall transfer to the Administrator of the

3-38  Health Division of the Department to carry out the provisions of this

3-39  act:

3-40      1.  All bonds filed with the Administrator of the Aging Services

3-41  Division pursuant to NRS 449.065 and administered by the

3-42  Administrator of the Aging Services Division as of June 30, 2003;

3-43      2.  All information concerning obligations deposited with a

3-44  bank or trust company pursuant to NRS 449.067 and administered

4-1  by the Administrator of the Aging Services Division as of June 30,

4-2  2003; and

4-3  3.  Any other information that the Administrator of the Aging

4-4  Services Division believes would assist the Administrator of the

4-5  Health Division in carrying out the provisions of this act.

4-6  Sec. 4.  This act becomes effective on July 1, 2003.

 

4-7  H