Nevada 2025 Regular Session

Nevada Senate Bill SB378 Latest Draft

Bill / Introduced Version

                              
  
  	S.B. 378 
 
- 	*SB378* 
 
SENATE BILL NO. 378–SENATORS DOÑATE, CRUZ-CRAWFORD, 
NGUYEN, FLORES; CANNIZZARO, LANGE AND OHRENSCHALL 
 
MARCH 17, 2025 
____________ 
 
JOINT SPONSOR: ASSEMBLYMEMBER GRAY 
____________ 
 
Referred to Committee on Health and Human Services 
 
SUMMARY—Makes revisions relating to health care. 
(BDR 40-705) 
 
FISCAL NOTE: Effect on Local Government: May have Fiscal Impact. 
 Effect on the State: Yes. 
 
CONTAINS UNFUNDED MANDATE (§ 33) 
(NOT REQUESTED BY AFFECTED LOCAL GOVERNMENT) 
 
~ 
 
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. 
 
 
AN ACT relating to health care; revising requirements governing 
the electronic maintenance, transmittal and exchange of 
health information; establishing a program to increase 
awareness of information concerning independent centers 
for emergency medical care; requiring certain facilities 
that are owned or operated by, or otherwise part of, 
hospitals to be licensed as independent centers for 
emergency medical care; requiring an independent center 
for emergency medical care to provide urgent care 
services under certain conditions; prohibiting a 
noncompetition covenant from applying to a physician; 
requiring a custodian of health records to furnish health 
records within a specified period of time and without 
charging a fee under certain circumstances; and providing 
other matters properly relating thereto. 
Legislative Counsel’s Digest: 
 Existing law requires the Director of the Department of Health and Human 1 
Services to prescribe by regulation a framework for the electronic maintenance, 2 
transmittal and exchange of electronic health records, prescriptions, health-related 3 
information and electronic signatures and requirements for electronic equivalents of 4   
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written entries or written approvals. With certain exceptions, existing law requires 5 
various entities involved in health care, including persons and facilities that provide 6 
health care, to maintain, transmit and exchange health information in accordance 7 
with those regulations. (NRS 439.589) Section 5 of this bill prohibits those 8 
regulations from authorizing such a person or entity to comply with that 9 
requirement by connecting with a health information exchange or utilizing any 10 
other service that charges a fee for providing electronic health records to such a 11 
person or entity or a patient upon request. Section 33 of this bill: (1) requires a 12 
custodian of health care records to furnish electronic health records to a patient or 13 
another person or entity upon the request of a patient within 2 business days; and 14 
(2) prohibits a custodian of health care records from charging a fee to furnish health 15 
care records under such circumstances.  16 
 Sections 4, 31 and 40 of this bill limit the health care providers that must 17 
maintain, transmit and exchange health information electronically to medical 18 
facilities and high-level providers of health care. Section 1 of this bill defines the 19 
term “high-level provider of health care” to mean a physician, physician assistant, 20 
dentist, advanced practice registered nurse, chiropractic physician, podiatric 21 
physician or physical therapist. Section 4 additionally exempts from requirements 22 
to maintain, transmit and exchange health information electronically high-level 23 
providers of health care whose solo practices are under a certain size or who work 24 
only in concierge medicine. However, section 4 requires such high-level providers 25 
of health care to furnish the medical records of a patient electronically to the patient 26 
upon request of the patient. Section 6 of this bill makes conforming changes to 27 
revise the applicability of a provision requiring the Department to notify the 28 
licensing board of a provider who fails to comply with requirements governing the 29 
electronic maintenance, transmittal and exchange of health information. Section 2 30 
of this bill establishes the applicability of the definition set forth in section 1, and 31 
sections 24, 25, 29, 35 and 36 of this bill make other conforming changes to 32 
indicate the proper placement of section 1 in the Nevada Revised Statutes. Section 33 
32 of this bill updates internal references changed by section 31. 34 
 Existing law prohibits a person or entity from operating an independent center 35 
for emergency medical care without a license issued by the Division of Public and 36 
Behavioral Health of the Department. (NRS 449.030) Section 14 of this bill 37 
requires a facility that is owned or operated by, or otherwise part of, a hospital that 38 
is structurally separate from the hospital and provides limited services for the 39 
treatment of a medical emergency to be licensed as an independent center for 40 
emergency medical care. (NRS 449.0151, 449.030) Sections 15 and 16 of this bill 41 
prohibit the Division or the State Board of Health from charging a fee for the 42 
issuance of such a license. Section 17 of this bill prohibits the Division from 43 
issuing a license to operate an independent center for emergency medical care that 44 
is located within a 5 mile radius of another independent center for emergency 45 
medical care. However, section 37 of this bill requires the Division to issue a 46 
license to an independent center for emergency medical care that: (1) is operating 47 
on January 1, 2026; (2) is newly required by section 14 to be licensed; and (3) 48 
otherwise meets the requirements for licensure, regardless of where the facility is 49 
located. Section 18 of this bill requires an independent center for emergency 50 
medical care to provide urgent care services during all operating hours and imposes 51 
certain additional requirements related to the provision of such urgent care. 52 
 Existing law establishes programs to increase awareness of information 53 
concerning hospitals and surgical centers for ambulatory patients. (NRS 439A.200-54 
439A.290) Section 9 of this bill requires the Department to establish a similar 55 
program to increase awareness of information concerning independent centers for 56 
emergency medical care. Sections 9, 10, 12, 13 and 19 of this bill provide for the 57 
Department to collect certain information on the operations of independent centers 58 
for emergency medical care and the outcomes for patients treated by independent 59   
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centers for emergency medical care. To facilitate such reporting, section 19 60 
requires an independent center for emergency medical care to use the same form 61 
prescribed by the Director for discharging patients as a hospital is currently 62 
required to use. Section 34 of this bill makes a conforming change to reflect that 63 
independent centers for emergency medical care will be using the same form. 64 
Sections 12 and 13 require the Department to: (1) make certain information 65 
concerning independent centers for emergency medical care available upon request; 66 
and (2) post certain information concerning independent centers for emergency 67 
medical care on an Internet website maintained by the Department. Section 23 of 68 
this bill makes a conforming change to reflect the revised content of that Internet 69 
website. Section 8 of this bill defines the term “independent center for emergency 70 
medical care” for that purpose. Section 11 of this bill establishes the applicability 71 
of certain definitions. Section 20 of this bill requires a report prepared by the 72 
Director on the status of the programs to increase public awareness of information 73 
concerning hospitals and surgical centers for ambulatory patients to additionally 74 
include information on the status of the program to increase awareness of 75 
information concerning independent centers for emergency medical care.  76 
 Existing law authorizes a court, upon a petition, to order the sealing of records 77 
of certain convictions if the person who was convicted: (1) has not been convicted 78 
of any additional offense, except for minor traffic violations, for a specified  79 
period of time; and (2) does not have charges pending for any offense, except for 80 
minor traffic violations. (NRS 179.245) Existing law also authorizes a court, upon a 81 
petition, to order the sealing of records of an arrest where the charges were 82 
dismissed, the prosecutor declined to prosecute or the person who was arrested was 83 
acquitted. (NRS 179.255) Section 21 of this bill authorizes the Department or the 84 
Division of Health Care Financing and Policy of the Department to review certain 85 
sealed records for the purpose of determining the suitability of the person to whom 86 
the records pertain to serve as a provider of services under Medicaid or to own or 87 
serve as an officer, managing employee or managing agent of such a provider of 88 
services. 89 
 Existing law prescribes a procedure for conducting a hearing to review an 90 
action taken against a provider of services under Medicaid. (NRS 422.306) Section 91 
27 of this bill requires such a provider of services to maintain and provide certain 92 
documents to the Department for the purpose of verifying claims. Section 27 93 
authorizes the Department to deny a claim or recover money already paid if the 94 
Department is unable to verify the claim. Section 28 of this bill: (1) prescribes a 95 
process for the Department to review claims for appropriateness and propriety; and 96 
(2) authorizes the Department to deny or recover any amount paid pursuant to such 97 
a claim or take certain actions based on such a review. Section 22 of this bill makes 98 
a conforming change to require the Director to administer sections 27 and 28 in the 99 
same manner as other provisions governing Medicaid. 100 
 Existing law provides that a noncompetition covenant is void unless the 101 
covenant: (1) is supported by valuable consideration; (2) does not impose any 102 
restraint that is greater than is required for the protection of the employer; (3) does 103 
not impose any undue hardship on the employee; and (4) imposes restrictions that 104 
are appropriately related to the consideration for the covenant. (NRS 613.195) 105 
Section 30 of this bill provides that a noncompetition covenant may not apply to a 106 
physician. 107 
 
   
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THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN 
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: 
 
 Section 1.  Chapter 439 of NRS is hereby amended by adding 1 
thereto a new section to read as follows: 2 
 “High-level provider of health care” means a physician or 3 
physician assistant licensed pursuant to chapter 630 or 633 of 4 
NRS, dentist, advanced practice registered nurse, chiropractic 5 
physician, podiatric physician or physical therapist. 6 
 Sec. 2.  NRS 439.581 is hereby amended to read as follows: 7 
 439.581 As used in NRS 439.581 to 439.597, inclusive, and 8 
section 1 of this act, unless the context otherwise requires, the 9 
words and terms defined in NRS 439.582 to 439.585, inclusive, and 10 
section 1 of this act have the meanings ascribed to them in those 11 
sections. 12 
 Sec. 3.  NRS 439.588 is hereby amended to read as follows: 13 
 439.588 1.  A health information exchange shall not operate 14 
in this State without first obtaining certification as provided in 15 
subsection 2. 16 
 2.  The Director shall by regulation establish the manner in 17 
which a health information exchange may apply for certification and 18 
the requirements for granting such certification, which must include, 19 
without limitation, that the health information exchange demonstrate 20 
its financial and operational sustainability, adherence to the privacy, 21 
security and patient consent standards adopted pursuant to NRS 22 
439.589 and capacity for interoperability with any other health 23 
information exchange certified pursuant to this section. 24 
 3. The Director may deny an application for certification or 25 
may suspend or revoke any certification issued pursuant to 26 
subsection 2 for failure to comply with the provisions of NRS 27 
439.581 to 439.597, inclusive, and section 1 of this act or the 28 
regulations adopted pursuant thereto or any applicable federal or 29 
state law. 30 
 4. When the Director intends to deny, suspend or revoke a 31 
certification, he or she shall give reasonable notice to all parties by 32 
certified mail. The notice must contain the legal authority, 33 
jurisdiction and reasons for the action to be taken. A health 34 
information exchange that wishes to contest the action of the 35 
Director must file an appeal with the Director. 36 
 5. The Director shall adopt regulations establishing the manner 37 
in which a person may file a complaint with the Director regarding a 38 
violation of the provisions of this section. 39 
 6. The Director may impose an administrative fine against a 40 
health information exchange which operates in this State without 41 
holding a certification in an amount established by the Director by 42   
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regulation. The Director shall afford a health information exchange 1 
so fined an opportunity for a hearing pursuant to the provisions of 2 
NRS 233B.121. 3 
 7. The Director may adopt such regulations as he or she 4 
determines are necessary to carry out the provisions of this section. 5 
 Sec. 4.  NRS 439.589 is hereby amended to read as follows: 6 
 439.589 1.  The Director, in consultation with health care 7 
providers, third parties and other interested persons and entities, 8 
shall by regulation prescribe a framework for the electronic 9 
maintenance, transmittal and exchange of electronic health records, 10 
prescriptions, health-related information and electronic signatures 11 
and requirements for electronic equivalents of written entries or 12 
written approvals in accordance with federal law. The regulations 13 
must: 14 
 (a) Establish standards for networks and technologies to be used 15 
to maintain, transmit and exchange health information, including, 16 
without limitation, standards: 17 
  (1) That require: 18 
   (I) The use of networks and technologies that allow 19 
patients to access electronic health records directly from the health 20 
care provider of the patient and forward such electronic health 21 
records electronically to other persons and entities; and  22 
   (II) The interoperability of such networks and 23 
technologies in accordance with the applicable standards for the 24 
interoperability of Qualified Health Information Networks 25 
prescribed by the Office of the National Coordinator for Health 26 
Information Technology of the United States Department of Health 27 
and Human Services; 28 
  (2) To ensure that electronic health records retained or shared 29 
are secure;  30 
  (3) To maintain the confidentiality of electronic health 31 
records and health-related information, including, without 32 
limitation, standards to maintain the confidentiality of electronic 33 
health records relating to a child who has received health care 34 
services without the consent of a parent or guardian and which 35 
ensure that a child’s right to access such health care services is not 36 
impaired; 37 
  (4) To ensure the privacy of individually identifiable health 38 
information, including, without limitation, standards to ensure the 39 
privacy of information relating to a child who has received health 40 
care services without the consent of a parent or guardian; 41 
  (5) For obtaining consent from a patient before retrieving the 42 
patient’s health records from a health information exchange, 43 
including, without limitation, standards for obtaining such consent 44   
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from a child who has received health care services without the 1 
consent of a parent or guardian; 2 
  (6) For making any necessary corrections to information or 3 
records; 4 
  (7) For notifying a patient if the confidentiality of 5 
information contained in an electronic health record of the patient is 6 
breached; 7 
  (8) Governing the ownership, management and use of 8 
electronic health records, health-related information and related 9 
data; and 10 
  (9) For the electronic transmission of prior authorizations for 11 
prescription medication; 12 
 (b) Ensure compliance with the requirements, specifications and 13 
protocols for exchanging, securing and disclosing electronic health 14 
records, health-related information and related data prescribed 15 
pursuant to the provisions of the Health Information Technology for 16 
Economic and Clinical Health Act, 42 U.S.C. §§ 300jj et seq. and 17 
17901 et seq., the Health Insurance Portability and Accountability 18 
Act of 1996, Public Law 104-191, and other applicable federal and 19 
state law; and 20 
 (c) Be based on nationally recognized best practices for 21 
maintaining, transmitting and exchanging health information 22 
electronically. 23 
 2.  The standards prescribed pursuant to this section must 24 
include, without limitation: 25 
 (a) Requirements for the creation, maintenance and transmittal 26 
of electronic health records; 27 
 (b) Requirements for protecting confidentiality, including 28 
control over, access to and the collection, organization and 29 
maintenance of electronic health records, health-related information 30 
and individually identifiable health information; 31 
 (c) Requirements for the manner in which a patient may, 32 
through a health care provider who participates in the sharing of 33 
health records using a health information exchange, revoke his or 34 
her consent for a health care provider to retrieve the patient’s health 35 
records from the health information exchange; 36 
 (d) A secure and traceable electronic audit system for 37 
identifying access points and trails to electronic health records and 38 
health information exchanges; and 39 
 (e) Any other requirements necessary to comply with all 40 
applicable federal laws relating to electronic health records, health-41 
related information, health information exchanges and the security 42 
and confidentiality of such records and exchanges. 43 
 3. The regulations adopted pursuant to this section must not 44 
require any person or entity to use a health information exchange. 45   
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 4. Except as otherwise provided in subsections 5, 6 and 7, the 1 
Department and the divisions thereof, other state and local 2 
governmental entities, medical facilities, high-level providers of 3 
health care , [providers,] third parties, pharmacy benefit managers 4 
and other entities licensed or certified pursuant to title 57 of NRS 5 
shall maintain, transmit and exchange health information in 6 
accordance with the regulations adopted pursuant to this section, the 7 
provisions of NRS 439.581 to 439.597, inclusive, and section 1 of 8 
this act and any other regulations adopted pursuant thereto.  9 
 5. The Federal Government and employees thereof, a provider 10 
of health coverage for federal employees, a provider of health 11 
coverage that is subject to the Employee Retirement Income 12 
Security Act of 1974, 29 U.S.C. §§ 1001 et seq., or a Taft-Hartley 13 
trust formed pursuant to 29 U.S.C. § 186(c)(5) is not required to but 14 
may maintain, transmit and exchange electronic information in 15 
accordance with the regulations adopted pursuant to this section.  16 
 6. A high-level provider of health care [provider] may apply to 17 
the Department for a waiver from the provisions of subsection 4 on 18 
the basis that the high-level provider of health care [provider] does 19 
not have the infrastructure necessary to comply with those 20 
provisions, including, without limitation, because the high-level 21 
provider of health care [provider] does not have access to the 22 
Internet. The Department shall grant a waiver if it determines that: 23 
 (a) The high-level provider of health care [provider] does not 24 
currently have the infrastructure necessary to comply with the 25 
provisions of subsection 4; and 26 
 (b) Obtaining such infrastructure is not reasonably practicable, 27 
including, without limitation, because the cost of such infrastructure 28 
would make it difficult for the high-level provider of health care 29 
[provider] to continue to operate. 30 
 7. The provisions of subsection 4 do not apply to [the] : 31 
 (a) The Department of Corrections [.] ; 32 
 (b) A high-level provider of health care whose solo practice: 33 
  (1) Provided care to fewer than 500 patients during the 34 
immediately preceding year and reasonably expects to provide care 35 
to fewer than 500 patients during the current year; or  36 
  (2) Only provides health care through concierge medicine; 37 
or 38 
 (c) A high-level provider of health care who, in combination 39 
with all other members of his or her group practice: 40 
  (1) Provided care to fewer than 500 patients during the 41 
immediately preceding year and reasonably expects to provide care 42 
to fewer than 500 patients during the current year; or  43 
  (2) Only provides health care through concierge medicine. 44   
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 8. A high-level provider of health care described in 1 
paragraphs (b) and (c) of subsection 7 shall furnish the medical 2 
records of a patient electronically to the patient or, upon the 3 
request of the patient, another person or entity, in accordance with 4 
NRS 629.062. 5 
 9. A violation of the provisions of this section or any 6 
regulations adopted pursuant thereto is not a misdemeanor. 7 
 [9.] 10.  As used in this section: 8 
 (a) “Concierge medicine” means the provision of health care 9 
services for an established period of time in exchange for a fee. 10 
 (b) “Medical facility” has the meaning ascribed to it in  11 
NRS 449.0151. 12 
 (c) “Pharmacy benefit manager” has the meaning ascribed to it 13 
in NRS 683A.174. 14 
 [(b)] (d) “Third party” means any insurer, governmental entity 15 
or other organization providing health coverage or benefits in 16 
accordance with state or federal law. 17 
 Sec. 5.  NRS 439.589 is hereby amended to read as follows: 18 
 439.589 1.  The Director, in consultation with health care 19 
providers, third parties and other interested persons and entities, 20 
shall by regulation prescribe a framework for the electronic 21 
maintenance, transmittal and exchange of electronic health records, 22 
prescriptions, health-related information and electronic signatures 23 
and requirements for electronic equivalents of written entries or 24 
written approvals in accordance with federal law. The regulations 25 
must: 26 
 (a) Establish standards for networks and technologies to be used 27 
to maintain, transmit and exchange health information, including, 28 
without limitation, standards: 29 
  (1) That require: 30 
   (I) The use of networks and technologies that allow 31 
patients to access electronic health records directly from the health 32 
care provider of the patient and forward such electronic health 33 
records electronically to other persons and entities; and  34 
   (II) The interoperability of such networks and 35 
technologies in accordance with the applicable standards for the 36 
interoperability of Qualified Health Information Networks 37 
prescribed by the Office of the National Coordinator for Health 38 
Information Technology of the United States Department of Health 39 
and Human Services; 40 
  (2) To ensure that electronic health records retained or shared 41 
are secure;  42 
  (3) To maintain the confidentiality of electronic health 43 
records and health-related information, including, without 44 
limitation, standards to maintain the confidentiality of electronic 45   
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health records relating to a child who has received health care 1 
services without the consent of a parent or guardian and which 2 
ensure that a child’s right to access such health care services is not 3 
impaired; 4 
  (4) To ensure the privacy of individually identifiable health 5 
information, including, without limitation, standards to ensure the 6 
privacy of information relating to a child who has received health 7 
care services without the consent of a parent or guardian; 8 
  (5) For obtaining consent from a patient before retrieving the 9 
patient’s health records from a health information exchange, 10 
including, without limitation, standards for obtaining such consent 11 
from a child who has received health care services without the 12 
consent of a parent or guardian; 13 
  (6) For making any necessary corrections to information or 14 
records; 15 
  (7) For notifying a patient if the confidentiality of 16 
information contained in an electronic health record of the patient is 17 
breached; 18 
  (8) Governing the ownership, management and use of 19 
electronic health records, health-related information and related 20 
data; and 21 
  (9) For the electronic transmission of prior authorizations for 22 
prescription medication; 23 
 (b) Ensure compliance with the requirements, specifications and 24 
protocols for exchanging, securing and disclosing electronic health 25 
records, health-related information and related data prescribed 26 
pursuant to the provisions of the Health Information Technology for 27 
Economic and Clinical Health Act, 42 U.S.C. §§ 300jj et seq. and 28 
17901 et seq., the Health Insurance Portability and Accountability 29 
Act of 1996, Public Law 104-191, and other applicable federal and 30 
state law; and 31 
 (c) Be based on nationally recognized best practices for 32 
maintaining, transmitting and exchanging health information 33 
electronically. 34 
 2.  The standards prescribed pursuant to this section must 35 
include, without limitation: 36 
 (a) Requirements for the creation, maintenance and transmittal 37 
of electronic health records; 38 
 (b) Requirements for protecting confidentiality, including 39 
control over, access to and the collection, organization and 40 
maintenance of electronic health records, health-related information 41 
and individually identifiable health information; 42 
 (c) Requirements for the manner in which a patient may, 43 
through a health care provider who participates in the sharing of 44 
health records using a health information exchange, revoke his or 45   
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her consent for a health care provider to retrieve the patient’s health 1 
records from the health information exchange; 2 
 (d) A secure and traceable electronic audit system for 3 
identifying access points and trails to electronic health records and 4 
health information exchanges; and 5 
 (e) Any other requirements necessary to comply with all 6 
applicable federal laws relating to electronic health records, health-7 
related information, health information exchanges and the security 8 
and confidentiality of such records and exchanges. 9 
 3. The regulations adopted pursuant to this section must not 10 
[require] : 11 
 (a) Require any person or entity to use a health information 12 
exchange [.] ; or  13 
 (b) Authorize a person or entity described in subsection 4 to 14 
comply with the requirements of that subsection by: 15 
  (1) Connecting with a health information exchange; or  16 
  (2) Utilizing any other service that charges a fee to such a 17 
person or entity or a patient for providing electronic health 18 
records to a patient upon request in violation of NRS 629.062. 19 
 4. Except as otherwise provided in subsections 5, 6 and 7, the 20 
Department and the divisions thereof, other state and local 21 
governmental entities, medical facilities, high-level providers of 22 
health care, third parties, pharmacy benefit managers and other 23 
entities licensed or certified pursuant to title 57 of NRS shall 24 
maintain, transmit and exchange health information in accordance 25 
with the regulations adopted pursuant to this section, the provisions 26 
of NRS 439.581 to 439.597, inclusive, and section 1 of this act and 27 
any other regulations adopted pursuant thereto.  28 
 5. The Federal Government and employees thereof, a provider 29 
of health coverage for federal employees, a provider of health 30 
coverage that is subject to the Employee Retirement Income 31 
Security Act of 1974, 29 U.S.C. §§ 1001 et seq., or a Taft-Hartley 32 
trust formed pursuant to 29 U.S.C. § 186(c)(5) is not required to but 33 
may maintain, transmit and exchange electronic information in 34 
accordance with the regulations adopted pursuant to this section.  35 
 6. A high-level provider of health care may apply to the 36 
Department for a waiver from the provisions of subsection 4 on the 37 
basis that the high-level provider of health care does not have  38 
the infrastructure necessary to comply with those provisions, 39 
including, without limitation, because the high-level provider of 40 
health care does not have access to the Internet. The Department 41 
shall grant a waiver if it determines that: 42 
 (a) The high-level provider of health care does not currently 43 
have the infrastructure necessary to comply with the provisions of 44 
subsection 4; and 45   
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 (b) Obtaining such infrastructure is not reasonably practicable, 1 
including, without limitation, because the cost of such infrastructure 2 
would make it difficult for the high-level provider of health care to 3 
continue to operate. 4 
 7. The provisions of subsection 4 do not apply to: 5 
 (a) The Department of Corrections; 6 
 (b) A high-level provider of health care whose solo practice: 7 
  (1) Provided care to fewer than 500 patients during the 8 
immediately preceding year and reasonably expects to provide care 9 
to fewer than 500 patients during the current year; or  10 
  (2) Only provides health care through concierge medicine; or 11 
 (c) A high-level provider of health care who, in combination 12 
with all other members of his or her group practice: 13 
  (1) Provided care to fewer than 500 patients during the 14 
immediately preceding year and reasonably expects to provide care 15 
to fewer than 500 patients during the current year; or  16 
  (2) Only provides health care through concierge medicine. 17 
 8. A high-level provider of health care described in paragraphs 18 
(b) and (c) of subsection 7 shall furnish the medical records of a 19 
patient electronically to the patient or, upon the request of the 20 
patient, another person or entity, in accordance with NRS 629.062. 21 
 9. A violation of the provisions of this section or any 22 
regulations adopted pursuant thereto is not a misdemeanor. 23 
 10.  As used in this section: 24 
 (a) “Concierge medicine” means the provision of health care 25 
services for an established period of time in exchange for a fee. 26 
 (b) “Medical facility” has the meaning ascribed to it in  27 
NRS 449.0151. 28 
 (c) “Pharmacy benefit manager” has the meaning ascribed to it 29 
in NRS 683A.174. 30 
 (d) “Third party” means any insurer, governmental entity or 31 
other organization providing health coverage or benefits in 32 
accordance with state or federal law. 33 
 Sec. 6.  NRS 439.5895 is hereby amended to read as follows: 34 
 439.5895 1. The Department shall notify each regulatory 35 
body of this State that has issued a current, valid license to a 36 
licensed provider or insurer if: 37 
 (a) The Department determines that the licensed provider or 38 
insurer is not in compliance with the requirements of subsection 4 of 39 
NRS 439.589 [;] and  40 
 [(b) The] the licensed provider or insurer: 41 
  (1) Is not exempt from those requirements pursuant to 42 
subsection 5 or 7 of NRS 439.589; and  43 
  (2) Has not received a waiver of those requirements pursuant 44 
to subsection 6 of NRS 439.589 [.] ; or 45   
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 (b) The licensed provider or insurer is a high-level provider of 1 
health care who is exempt from the requirements of subsection 4 2 
of NRS 439.589 pursuant to paragraph (b) or (c) of subsection 7 3 
of NRS 439.589 and the Department determines that the high-level 4 
provider of health care is not in compliance with subsection 8 of 5 
NRS 439.589. 6 
 2. If the Department determines that a licensed provider or 7 
insurer for which notice was previously provided pursuant to 8 
subsection 1 has come into compliance with the requirements of 9 
subsection 4 or 8, as applicable, of NRS 439.589, the Department 10 
shall immediately notify the regulatory body that issued the license. 11 
 3. As used in this section: 12 
 (a) “License” means any license, certificate, registration, permit 13 
or similar type of authorization to practice an occupation or 14 
profession or engage in a business in this State issued to a licensed 15 
provider or insurer. 16 
 (b) “Licensed provider or insurer” means: 17 
  (1) A medical facility licensed pursuant to chapter 449 of 18 
NRS; 19 
  (2) [The holder of a permit to operate an ambulance, an air 20 
ambulance or a vehicle of a fire-fighting agency pursuant to chapter 21 
450B of NRS; 22 
  (3)] A high-level provider of health care ; [, as defined in 23 
NRS 629.031, who is licensed pursuant to title 54 of NRS;] or 24 
  [(4)] (3) Any person licensed pursuant to title 57 of NRS. 25 
 (c) “Regulatory body” means any governmental entity that 26 
issues a license. 27 
 Sec. 7.  Chapter 439A of NRS is hereby amended by adding 28 
thereto the provisions set forth as sections 8, 9 and 10 of this act. 29 
 Sec. 8.  “Independent center for emergency medical care” 30 
has the meaning ascribed to it in NRS 449.013. 31 
 Sec. 9.  1. The Department shall establish and maintain a 32 
program to increase public awareness of health care information 33 
concerning the independent centers for emergency medical care in 34 
this State. The program must be designed to assist consumers with 35 
comparing the quality of care provided by the independent centers 36 
for emergency medical care in this State and the charges for that 37 
care. 38 
 2. The program must include, without limitation, the 39 
collection, maintenance and provision of information concerning: 40 
 (a) Patients of each independent center for emergency medical 41 
care in this State as reported in the forms submitted pursuant to 42 
NRS 449.485; 43 
 (b) The quality of care provided by each independent center 44 
for emergency medical care in this State as determined by 45   
 	– 13 – 
 
 
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applying measures of quality endorsed by the entities described in 1 
subparagraph (1) of paragraph (b) of subsection 1 of section 10 of 2 
this act, expressed as a number of events and rate of occurrence, if 3 
such measures can be applied to the information reported in the 4 
forms submitted pursuant to NRS 449.485; 5 
 (c) How consistently each independent center for emergency 6 
medical care follows recognized practices to prevent the infection 7 
of patients, to speed the recovery of patients and to avoid medical 8 
complications of patients; 9 
 (d) The total number of patients discharged from the 10 
independent center for emergency medical care and the total 11 
number of potentially preventable readmissions to a hospital or 12 
independent center for emergency medical care, which must be 13 
expressed as a total number and a rate of occurrence of potentially 14 
preventable readmissions, and the average length of stay and the 15 
average billed charges for those potentially preventable 16 
readmissions; and 17 
 (e) Any other information relating to the charges imposed and 18 
the quality of the services provided by the independent centers for 19 
emergency medical care in this State which the Department 20 
determines is: 21 
  (1) Useful to consumers; 22 
  (2) Nationally recognized; and  23 
  (3) Reported in a standard and reliable manner. 24 
 Sec. 10.  1. The Department shall, by regulation: 25 
 (a) Prescribe the information that each independent center for 26 
emergency medical care in this State must submit to the 27 
Department for the program established pursuant to section 9 of 28 
this act. 29 
 (b) Prescribe the measures of quality for independent centers 30 
for emergency medical care that are required pursuant to 31 
paragraph (b) of subsection 2 of section 9 of this act. In adopting 32 
the regulations, the Department shall: 33 
  (1) Use the measures of quality endorsed by the Agency for 34 
Healthcare Research and Quality, the National Quality Forum, 35 
Centers for Medicare and Medicaid Services of the United States 36 
Department of Health and Human Services, a quality 37 
improvement organization of the Centers for Medicare and 38 
Medicaid Services and the Joint Commission; 39 
  (2) Prescribe a reasonable number of measures of quality 40 
which must not be unduly burdensome on the independent centers 41 
for emergency medical care; and 42 
  (3) Take into consideration the financial burden placed on 43 
the independent centers for emergency medical care to comply 44 
with the regulations. 45   
 	– 14 – 
 
 
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 (c) Prescribe the manner in which an independent center for 1 
emergency medical care must determine whether the readmission 2 
of a patient must be reported pursuant to section 9 of this act as a 3 
potentially preventable readmission and prescribe the form for 4 
submission of such information. 5 
 (d) Require each independent center for emergency medical 6 
care to provide the information prescribed in paragraphs (a), (b) 7 
and (c) in the format required by the Department. 8 
 2. The information required pursuant to this section and 9 
section 9 of this act must be submitted to the Department not later 10 
than 45 days after the last day of each calendar month. 11 
 3. If an independent center for emergency medical care fails 12 
to submit the information required pursuant to this section or 13 
section 9 of this act or submits information that is incomplete or 14 
inaccurate, the Department shall send a notice of such failure to 15 
the independent center for emergency medical care and to the 16 
Division of Public and Behavioral Health of the Department. 17 
 Sec. 11.  NRS 439A.200 is hereby amended to read as follows: 18 
 439A.200 As used in NRS 439A.200 to 439A.290, inclusive, 19 
and sections 8, 9 and 10 of this act, unless the context otherwise 20 
requires, the words and terms defined in NRS 439A.205, 439A.207 21 
and 439A.210 and section 8 of this act have the meanings ascribed 22 
to them in those sections. 23 
 Sec. 12.  NRS 439A.260 is hereby amended to read as follows: 24 
 439A.260 1.  The Department shall collect and maintain all 25 
information that it receives from the hospitals , [and] surgical 26 
centers for ambulatory patients and independent centers for 27 
emergency medical care in this State pursuant to NRS 439A.220 to 28 
439A.250, inclusive [.] and sections 9 and 10 of this act. Upon 29 
request, the Department shall make a summary of the information 30 
available to: 31 
 (a) Consumers of health care; 32 
 (b) Providers of health care; 33 
 (c) Representatives of the health insurance industry; and 34 
 (d) The general public. 35 
 2.  The Department shall ensure that the information it provides 36 
pursuant to this section is aggregated so as not to reveal the identity 37 
of a specific inpatient or outpatient of a hospital , [or] of a surgical 38 
center for ambulatory patients [.] or of an independent center for 39 
emergency medical care. 40 
 Sec. 13.  NRS 439A.270 is hereby amended to read as follows: 41 
 439A.270 1.  The Department shall establish and maintain an 42 
Internet website that includes the information concerning the 43 
charges imposed and the quality of the services provided by the 44 
hospitals , [and] surgical centers for ambulatory patients and 45   
 	– 15 – 
 
 
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independent centers for emergency medical care in this State as 1 
required by the programs established pursuant to NRS 439A.220 2 
and 439A.240 [.] and section 9 of this act. The information must: 3 
 (a) Include, for each hospital in this State, the: 4 
  (1) Total number of patients discharged, the average length 5 
of stay and the average billed charges, reported for the diagnosis-6 
related groups for inpatients and the 50 medical treatments for 7 
outpatients that the Department determines are most useful for 8 
consumers; 9 
  (2) Total number of potentially preventable readmissions 10 
reported pursuant to NRS 439A.220, the rate of occurrence of 11 
potentially preventable readmissions, and the average length of stay 12 
and average billed charges of those potentially preventable 13 
readmissions, reported by the diagnosis-related group for inpatients 14 
for which the patient originally received treatment at a hospital; and 15 
  (3) Name of each physician who performed a surgical 16 
procedure in the hospital and the total number of surgical 17 
procedures performed by each physician in the hospital, reported for 18 
the most frequent surgical procedures that the Department 19 
determines are most useful for consumers if the information is 20 
available; 21 
 (b) Include, for each surgical center for ambulatory patients in 22 
this State, the: 23 
  (1) Total number of patients discharged and the average 24 
billed charges, reported for 50 medical treatments for outpatients 25 
that the Department determines are most useful for consumers; and 26 
  (2) Name of each physician who performed a surgical 27 
procedure in the surgical center for ambulatory patients and the total 28 
number of surgical procedures performed by each physician in the 29 
surgical center for ambulatory patients, reported for the most 30 
frequent surgical procedures that the Department determines are 31 
most useful for consumers; 32 
 (c) Include, for each independent center for emergency 33 
medical care in this State, the: 34 
  (1) Total number of patients discharged and the average 35 
billed charges, reported for the 50 medical treatments for patients 36 
of independent centers for emergency medical care that the 37 
Department determines are most useful for consumers; and 38 
  (2) Total number of potentially preventable readmissions 39 
reported pursuant to section 9 of this act, the rate of occurrence of 40 
potentially preventable readmissions, and the average length of 41 
stay and average billed charges of those potentially preventable 42 
readmissions, reported for the diagnosis for which the patient 43 
originally received treatment at an independent center for 44 
emergency medical care; 45   
 	– 16 – 
 
 
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 (d) Be presented in a manner that allows a person to view and 1 
compare the information for the hospitals by: 2 
  (1) Geographic location of each hospital; 3 
  (2) Type of medical diagnosis; and 4 
  (3) Type of medical treatment; 5 
 [(d)] (e) Be presented in a manner that allows a person to view 6 
and compare the information for the surgical centers for ambulatory 7 
patients by: 8 
  (1) Geographic location of each surgical center for 9 
ambulatory patients; 10 
  (2) Type of medical diagnosis; and 11 
  (3) Type of medical treatment; 12 
 [(e)] (f) Be presented in a manner that allows a person to view 13 
and compare the information for the independent centers for 14 
emergency medical care by: 15 
  (1) Geographic location of each independent center for 16 
emergency medical care; 17 
  (2) Type of medical diagnosis; and 18 
  (3) Type of medical treatment; 19 
 (g) Be presented in a manner that allows a person to view and 20 
compare the information separately for: 21 
  (1) The inpatients and outpatients of each hospital; [and] 22 
  (2) The outpatients of each surgical center for ambulatory 23 
patients; and 24 
  (3) The patients of each independent center for emergency 25 
medical care; 26 
 [(f)] (h) Be readily accessible and understandable by a member 27 
of the general public; 28 
 [(g)] (i) Include the annual summary of reports of sentinel 29 
events prepared for each health facility pursuant to paragraph (c) of 30 
subsection 1 of NRS 439.840; 31 
 [(h)] (j) Include the annual summary of reports of sentinel 32 
events prepared pursuant to paragraph (d) of subsection 1 of  33 
NRS 439.840; 34 
 [(i)] (k) Include the reports of information prepared for each 35 
medical facility pursuant to paragraph (b) of subsection 4 of  36 
NRS 439.847; 37 
 [(j)] (l) Include a link to electronic copies of all reports, 38 
summaries, compilations and supplementary reports required by 39 
NRS 449.450 to 449.530, inclusive; 40 
 [(k)] (m) Include, for each hospital with 100 or more beds, a 41 
summary of financial information which is readily understandable 42 
by a member of the general public and which includes, without 43 
limitation, a summary of: 44   
 	– 17 – 
 
 
- 	*SB378* 
  (1) The expenses of the hospital which are attributable to 1 
providing community benefits and in-kind services as reported 2 
pursuant to NRS 449.490; 3 
  (2) The capital improvement report submitted to the 4 
Department pursuant to NRS 449.490; 5 
  (3) The net income of the hospital; 6 
  (4) The net income of the consolidated corporation, if the 7 
hospital is owned by such a corporation and if that information is 8 
publicly available; 9 
  (5) The operating margin of the hospital; 10 
  (6) The ratio of the cost of providing care to patients covered 11 
by Medicare to the charges for such care; 12 
  (7) The ratio of the total costs to charges of the hospital; and 13 
  (8) The average daily occupancy of the hospital; and 14 
 [(l)] (n) Provide any other information relating to the charges 15 
imposed and the quality of the services provided by the hospitals , 16 
[and] surgical centers for ambulatory patients and independent 17 
centers for emergency medical care in this State which the 18 
Department determines is: 19 
  (1) Useful to consumers; 20 
  (2) Nationally recognized; and 21 
  (3) Reported in a standard and reliable manner. 22 
 2.  The Department shall: 23 
 (a) Publicize the availability of the Internet website; 24 
 (b) Update the information contained on the Internet website at 25 
least quarterly; 26 
 (c) Ensure that the information contained on the Internet website 27 
is accurate and reliable; 28 
 (d) Ensure that the information reported by a hospital , [or] 29 
surgical center for ambulatory patients or independent center for 30 
emergency medical care for inpatients and outpatients which is 31 
contained on the Internet website is expressed as a total number and 32 
as a rate, and [must be] is reported in a manner so as not to reveal 33 
the identity of a specific inpatient or outpatient of a hospital , [or] 34 
surgical center for ambulatory patients [;] or independent center for 35 
emergency medical care;  36 
 (e) Post a disclaimer on the Internet website indicating that the 37 
information contained on the website is provided to assist with the 38 
comparison of hospitals and independent centers for emergency 39 
medical care and is not a guarantee by the Department or its 40 
employees as to the charges imposed by the hospitals and 41 
independent centers for emergency medical care in this State or the 42 
quality of the services provided by the hospitals and independent 43 
centers for emergency medical care in this State, including, without 44 
limitation, an explanation that the actual amount charged to a person 45   
 	– 18 – 
 
 
- 	*SB378* 
by a particular hospital or independent center for emergency 1 
medical care may not be the same charge as posted on the website 2 
for that hospital [;] or independent center for emergency medical 3 
care; 4 
 (f) Provide on the Internet website established pursuant to this 5 
section a link to the Internet website of the Centers for Medicare and 6 
Medicaid Services of the United States Department of Health and 7 
Human Services; and 8 
 (g) Upon request, make the information that is contained on the 9 
Internet website available in printed form. 10 
 3. As used in this section, “diagnosis-related group” means 11 
groupings of medical diagnostic categories used as a basis for 12 
hospital payment schedules by Medicare and other third-party health 13 
care plans. 14 
 Sec. 14.  NRS 449.013 is hereby amended to read as follows: 15 
 449.013 “Independent center for emergency medical care” 16 
means a facility, structurally separate [and distinct] from a hospital, 17 
which provides limited services for the treatment of a medical 18 
emergency. The term includes, without limitation, such a facility 19 
that is owned or operated by, or otherwise part of, a hospital but is 20 
located more than 250 yards from the hospital. 21 
 Sec. 15.  NRS 449.0308 is hereby amended to read as follows: 22 
 449.0308 1.  Except as otherwise provided in this section, the 23 
Division may charge and collect from a medical facility, facility for 24 
the dependent or facility which is required by the regulations 25 
adopted by the Board pursuant to NRS 449.0303 to be licensed or a 26 
person who operates such a facility without a license issued by the 27 
Division the actual costs incurred by the Division for the 28 
enforcement of the provisions of NRS 449.029 to 449.2428, 29 
inclusive, including, without limitation, the actual cost of 30 
conducting an inspection or investigation of the facility. 31 
 2.  The Division shall not charge and collect the actual cost for 32 
enforcement pursuant to subsection 1 if the enforcement activity is: 33 
 (a) Related to the issuance or renewal of a license for which the 34 
Board charges a fee pursuant to NRS 449.050 or 449.089;  35 
 (b) Related to the issuance or renewal of a license to an 36 
independent center for emergency medical care that is owned or 37 
operated by, or otherwise part of, a hospital; or 38 
 [(b)] (c) Conducted pursuant to an agreement with the Federal 39 
Government which has appropriated money for that purpose. 40 
 3.  Any money collected pursuant to subsection 1 may be used 41 
by the Division to administer and carry out the provisions of NRS 42 
449.029 to 449.2428, inclusive, and the regulations adopted 43 
pursuant thereto. 44   
 	– 19 – 
 
 
- 	*SB378* 
 4.  The provisions of this section do not apply to any costs 1 
incurred by the Division for the enforcement of the provisions of 2 
NRS 449.24185, 449.2419 or 449.24195. 3 
 Sec. 16.  NRS 449.050 is hereby amended to read as follows: 4 
 449.050 1.  [Each] Except as otherwise provided in this 5 
section, each application for a license must be accompanied by such 6 
fee as may be determined by regulation of the Board. The Board 7 
may, by regulation, allow or require payment of a fee for a license in 8 
installments and may fix the amount of each payment and the date 9 
that the payment is due. 10 
 2.  The fee imposed by the Board for a facility for transitional 11 
living for released offenders must be based on the type of facility 12 
that is being licensed and must be calculated to produce the revenue 13 
estimated to cover the costs related to the license, but in no case 14 
may a fee for a license exceed the actual cost to the Division of 15 
issuing or renewing the license. 16 
 3.  If an application for a license for a facility for transitional 17 
living for released offenders is denied, any amount of the fee paid 18 
pursuant to this section that exceeds the expenses and costs incurred 19 
by the Division must be refunded to the applicant. 20 
 4. The Board shall not require a fee for the issuance or 21 
renewal of the license of an independent center for emergency 22 
medical care that is owned or operated by, or otherwise part of, a 23 
hospital. 24 
 Sec. 17.  NRS 449.080 is hereby amended to read as follows: 25 
 449.080 1.  [If,] Except as otherwise provided in this section, 26 
if, after investigation, the Division finds that the: 27 
 (a) Applicant is in full compliance with the provisions of NRS 28 
449.029 to 449.2428, inclusive; 29 
 (b) Applicant is in substantial compliance with the standards and 30 
regulations adopted by the Board; 31 
 (c) Applicant, if he or she has undertaken a project for which 32 
approval is required pursuant to NRS 439A.100 or 439A.102, has 33 
obtained the approval of the Director of the Department of Health 34 
and Human Services; and 35 
 (d) Facility conforms to the applicable zoning regulations, 36 
 the Division shall issue the license to the applicant. 37 
 2.  Any investigation of an applicant for a license to provide 38 
community-based living arrangement services conducted pursuant 39 
to subsection 1 must include, without limitation, an inspection of 40 
any building operated by the applicant in which the applicant 41 
proposes to provide community-based living arrangement services. 42 
 3.  The Division may not issue a license to operate an 43 
independent center for emergency medical care that is located 44   
 	– 20 – 
 
 
- 	*SB378* 
within a 5 mile radius of an existing independent center for 1 
emergency medical care. 2 
 4. A license applies only to the person to whom it is issued, is 3 
valid only for the premises described in the license and is not 4 
transferable. 5 
 Sec. 18.  NRS 449.1818 is hereby amended to read as follows: 6 
 449.1818 1.  Each off-campus location of a hospital shall 7 
obtain and use , and include on all claims for reimbursement or 8 
payment for health care services provided at the location , a national 9 
provider identifier that is distinct from the national provider 10 
identifier used by the main campus and any other off-campus 11 
location of the hospital. If the off-campus location includes the 12 
national provider identifier on such a claim, the off-campus location 13 
may also include on the claim the national provider identifier used 14 
by the main campus of the hospital. If the off-campus location 15 
includes both the national provider identifier used by the off-campus 16 
location and the national provider identifier used by the main 17 
campus on a claim, the claim must clearly identify which national 18 
provider identifier corresponds to the off-campus location and 19 
which national provider identifier corresponds to the main campus. 20 
 2.  An independent center for emergency medical care shall 21 
include on all claims for reimbursement or payment for health care 22 
services provided at the independent center for emergency medical 23 
care the national provider identifier used by the independent center 24 
for emergency medical care. 25 
 3. An independent center for emergency medical care: 26 
 (a) Shall provide urgent care during all operating hours 27 
through: 28 
  (1) A separate urgent care unit within the independent 29 
center for emergency medical care; or  30 
  (2) A system that uses the severity of the patient’s condition 31 
to determine whether the patient receives emergency services or 32 
urgent care; 33 
 (b) Shall not charge more for urgent care than the amount 34 
customarily charged for urgent care by an urgent care center;  35 
 (c) If urgent care services are sufficient to treat or manage the 36 
condition of a patient, shall inform the patient that he or she may 37 
receive urgent care rather than emergency services; and 38 
 (d) Shall not require a patient to wait longer to receive urgent 39 
care services than a patient with the same condition would be 40 
required to wait to receive emergency services. 41 
 4. As used in this section: 42 
 (a) “National provider identifier” means the standard, unique 43 
health identifier for health care providers that is issued by the 44 
national provider system in accordance with 45 C.F.R. Part 162. 45   
 	– 21 – 
 
 
- 	*SB378* 
 (b) “Off-campus location” means a facility: 1 
  (1) With operations that are directly or indirectly owned or 2 
controlled by, in whole or in part, a hospital or which is affiliated 3 
with a hospital, regardless of whether it is operated by the same 4 
governing body as the hospital; 5 
  (2) That is located more than 250 yards from the main 6 
campus of the hospital; 7 
  (3) That provides services which are organizationally and 8 
functionally integrated with the hospital; and 9 
  (4) That is an outpatient facility providing ambulatory 10 
surgery, urgent care or emergency room services. 11 
 (c) “Urgent care” means health care that is furnished to a 12 
person whose medical condition is sufficiently acute to require 13 
treatment unavailable through, or inappropriate to be provided by, 14 
a clinic or the office of a provider of health care, but not so acute 15 
as to require treatment in an emergency room. 16 
 Sec. 19.  NRS 449.485 is hereby amended to read as follows: 17 
 449.485 1.  Each hospital and independent center for 18 
emergency medical care in this State shall use for all patients 19 
discharged a form prescribed by the Director and shall include in the 20 
form all information required by the Department. Any form 21 
prescribed by the Director must be a form that is commonly used 22 
nationwide by hospitals [,] and independent centers for emergency 23 
medical care, if applicable, and comply with federal laws and 24 
regulations. 25 
 2.  Each hospital and independent center for emergency 26 
medical care in this State shall, on a monthly basis, report to the 27 
Department the information required to be included in the form for 28 
each patient. The information reported must be complete, accurate 29 
and timely. 30 
 3.  Each insurance company or other payer shall accept the form 31 
as the bill for services provided by hospitals and independent 32 
centers for emergency medical care in this State. 33 
 4.  Except as otherwise provided in subsection 5, each hospital 34 
and independent center for emergency medical care in this State 35 
shall provide the information required pursuant to subsection 2 in an 36 
electronic form specified by the Department. 37 
 5.  The Director may exempt a hospital or independent center 38 
for emergency medical care from the requirements of subsection 4 39 
if requiring the hospital or independent center for emergency 40 
medical care, as applicable, to comply with the requirements would 41 
cause the hospital financial hardship. 42 
 6. The Department shall use the information submitted 43 
pursuant to this section for the [program] programs established 44 
pursuant to NRS 439A.220 and section 9 of this act to increase 45   
 	– 22 – 
 
 
- 	*SB378* 
public awareness of health care information concerning the hospitals 1 
and independent centers for emergency medical care, respectively, 2 
in this State. 3 
 Sec. 20.  NRS 449.520 is hereby amended to read as follows: 4 
 449.520 1.  On or before October 1 of each year, the Director 5 
shall prepare and transmit to the Governor, the Joint Interim 6 
Standing Committee on Health and Human Services and the Interim 7 
Finance Committee a report of the Department’s operations and 8 
activities for the preceding fiscal year. 9 
 2.  The report prepared pursuant to subsection 1 must include: 10 
 (a) Copies of all reports, summaries, compilations and 11 
supplementary reports required by NRS 449.450 to 449.530, 12 
inclusive, together with such facts, suggestions and policy 13 
recommendations as the Director deems necessary; 14 
 (b) A summary of the trends of the audits of hospitals in this 15 
State that the Department required or performed during the previous 16 
year; 17 
 (c) An analysis of the trends in the costs, expenses and profits of 18 
hospitals in this State; 19 
 (d) An analysis of the methodologies used to determine the 20 
corporate home office allocation of hospitals in this State; 21 
 (e) An examination and analysis of the manner in which 22 
hospitals are reporting the information that is required to be filed 23 
pursuant to NRS 449.490, including, without limitation, an 24 
examination and analysis of whether that information is being 25 
reported in a standard and consistent manner, which fairly reflect the 26 
operations of each hospital; 27 
 (f) A review and comparison of the policies and procedures used 28 
by hospitals in this State to provide discounted services to, and to 29 
reduce charges for services provided to, persons without health 30 
insurance; 31 
 (g) A review and comparison of the policies and procedures 32 
used by hospitals in this State to collect unpaid charges for services 33 
provided by the hospitals; and 34 
 (h) A summary of the status of the programs established 35 
pursuant to NRS 439A.220 and 439A.240 and section 9 of this act 36 
to increase public awareness of health care information concerning 37 
the hospitals , [and] surgical centers for ambulatory patients and 38 
independent centers for emergency medical care in this State, 39 
including, without limitation, the information that was posted in the 40 
preceding fiscal year on the Internet website maintained for those 41 
programs pursuant to NRS 439A.270. 42 
 3.  The Joint Interim Standing Committee on Health and 43 
Human Services shall develop a comprehensive plan concerning the 44   
 	– 23 – 
 
 
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provision of health care in this State which includes, without 1 
limitation: 2 
 (a) A review of the health care needs in this State as identified 3 
by state agencies, local governments, providers of health care and 4 
the general public; and 5 
 (b) A review of the capital improvement reports submitted by 6 
hospitals pursuant to subsection 2 of NRS 449.490. 7 
 Sec. 21.  NRS 179.301 is hereby amended to read as follows: 8 
 179.301 1.  The Nevada Gaming Control Board and the 9 
Nevada Gaming Commission and their employees, agents and 10 
representatives may inquire into and inspect any records sealed 11 
pursuant to NRS 179.245 or 179.255, if the event or conviction was 12 
related to gaming, to determine the suitability or qualifications of 13 
any person to hold a state gaming license, manufacturer’s, seller’s or 14 
distributor’s license or registration as a gaming employee pursuant 15 
to chapter 463 of NRS. Events and convictions, if any, which are the 16 
subject of an order sealing records: 17 
 (a) May form the basis for recommendation, denial or 18 
revocation of those licenses. 19 
 (b) Must not form the basis for denial or rejection of a gaming 20 
work permit unless the event or conviction relates to the applicant’s 21 
suitability or qualifications to hold the work permit. 22 
 2.  The Division of Insurance of the Department of Business 23 
and Industry and its employees may inquire into and inspect any 24 
records sealed pursuant to NRS 179.245 or 179.255, if the event  25 
or conviction was related to insurance, to determine the suitability or 26 
qualifications of any person to hold a license, certification or 27 
authorization issued in accordance with title 57 of NRS. Events and 28 
convictions, if any, which are the subject of an order sealing records 29 
may form the basis for recommendation, denial or revocation of 30 
those licenses, certifications and authorizations. 31 
 3. The Department of Health and Human Services, the 32 
Division of Health Care Financing and Policy of the Department 33 
and their employees, agents and representatives may inquire into 34 
and inspect any records sealed pursuant to NRS 179.245 or 35 
179.255, if the event or conviction was related to Medicare or 36 
Medicaid or the provision of professional services for which a 37 
license or certification is required. Such inquiry or inspection 38 
must be for the purpose of determining the suitability of the 39 
person to render such professional services as a provider of 40 
services under Medicaid or to own or serve as an officer, 41 
managing employee or managing agent of a business seeking to 42 
enter into a contract with the Department or a health maintenance 43 
organization with which the Department has entered into a 44 
contract pursuant to NRS 422.273 for the provision of services 45   
 	– 24 – 
 
 
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under Medicaid. Events and convictions, if any, which are the 1 
subject of an order sealing records may form the basis of a 2 
decision of the Department to refuse to enter into or terminate 3 
such a contract. 4 
 4. A prosecuting attorney may inquire into and inspect any 5 
records sealed pursuant to NRS 179.245 or 179.255 if: 6 
 (a) The records relate to a violation or alleged violation of NRS 7 
202.485; and 8 
 (b) The person who is the subject of the records has been 9 
arrested or issued a citation for violating NRS 202.485. 10 
 [4.] 5.  The Central Repository for Nevada Records of Criminal 11 
History and its employees may inquire into and inspect any records 12 
sealed pursuant to NRS 179.245 or 179.255 that constitute 13 
information relating to sexual offenses, and may notify employers of 14 
the information in accordance with federal laws and regulations. 15 
 [5.] 6.  Records which have been sealed pursuant to NRS 16 
179.245 or 179.255 and which are retained in the statewide registry 17 
established pursuant to NRS 179B.200 may be inspected pursuant to 18 
chapter 179B of NRS by an officer or employee of the Central 19 
Repository for Nevada Records of Criminal History or a law 20 
enforcement officer in the regular course of his or her duties. 21 
 [6.] 7.  The State Board of Pardons Commissioners and its 22 
agents and representatives may inquire into and inspect any records 23 
sealed pursuant to NRS 179.245 or 179.255 if the person who is the 24 
subject of the records has applied for a pardon from the Board. 25 
 [7.] 8.  As used in this section: 26 
 (a) “Information relating to sexual offenses” means information 27 
contained in or concerning a record relating in any way to a sexual 28 
offense. 29 
 (b) “Sexual offense” has the meaning ascribed to it in  30 
NRS 179A.073. 31 
 Sec. 22.  NRS 232.320 is hereby amended to read as follows: 32 
 232.320 1.  The Director: 33 
 (a) Shall appoint, with the consent of the Governor, 34 
administrators of the divisions of the Department, who are 35 
respectively designated as follows: 36 
  (1) The Administrator of the Aging and Disability Services 37 
Division; 38 
  (2) The Administrator of the Division of Welfare and 39 
Supportive Services; 40 
  (3) The Administrator of the Division of Child and Family 41 
Services; 42 
  (4) The Administrator of the Division of Health Care 43 
Financing and Policy; and 44   
 	– 25 – 
 
 
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  (5) The Administrator of the Division of Public and 1 
Behavioral Health. 2 
 (b) Shall administer, through the divisions of the Department, 3 
the provisions of chapters 63, 424, 425, 427A, 432A to 442, 4 
inclusive, 446 to 450, inclusive, 458A and 656A of NRS, NRS 5 
127.220 to 127.310, inclusive, 422.001 to 422.410, inclusive, and 6 
sections 27 and 28 of this act, 422.580, 432.010 to 432.133, 7 
inclusive, 432B.6201 to 432B.626, inclusive, 444.002 to 444.430, 8 
inclusive, and 445A.010 to 445A.055, inclusive, and all other 9 
provisions of law relating to the functions of the divisions of the 10 
Department, but is not responsible for the clinical activities of the 11 
Division of Public and Behavioral Health or the professional line 12 
activities of the other divisions. 13 
 (c) Shall administer any state program for persons with 14 
developmental disabilities established pursuant to the 15 
Developmental Disabilities Assistance and Bill of Rights Act of 16 
2000, 42 U.S.C. §§ 15001 et seq. 17 
 (d) Shall, after considering advice from agencies of local 18 
governments and nonprofit organizations which provide social 19 
services, adopt a master plan for the provision of human services in 20 
this State. The Director shall revise the plan biennially and deliver a 21 
copy of the plan to the Governor and the Legislature at the 22 
beginning of each regular session. The plan must: 23 
  (1) Identify and assess the plans and programs of the 24 
Department for the provision of human services, and any 25 
duplication of those services by federal, state and local agencies; 26 
  (2) Set forth priorities for the provision of those services; 27 
  (3) Provide for communication and the coordination of those 28 
services among nonprofit organizations, agencies of local 29 
government, the State and the Federal Government; 30 
  (4) Identify the sources of funding for services provided by 31 
the Department and the allocation of that funding; 32 
  (5) Set forth sufficient information to assist the Department 33 
in providing those services and in the planning and budgeting for the 34 
future provision of those services; and 35 
  (6) Contain any other information necessary for the 36 
Department to communicate effectively with the Federal 37 
Government concerning demographic trends, formulas for the 38 
distribution of federal money and any need for the modification of 39 
programs administered by the Department. 40 
 (e) May, by regulation, require nonprofit organizations and state 41 
and local governmental agencies to provide information regarding 42 
the programs of those organizations and agencies, excluding 43 
detailed information relating to their budgets and payrolls, which the 44   
 	– 26 – 
 
 
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Director deems necessary for the performance of the duties imposed 1 
upon him or her pursuant to this section. 2 
 (f) Has such other powers and duties as are provided by law. 3 
 2.  Notwithstanding any other provision of law, the Director, or 4 
the Director’s designee, is responsible for appointing and removing 5 
subordinate officers and employees of the Department. 6 
 Sec. 23.  NRS 232.459 is hereby amended to read as follows: 7 
 232.459 1.  The Advocate shall: 8 
 (a) Respond to written and telephonic inquiries received from 9 
consumers and injured employees regarding concerns and problems 10 
related to health care and workers’ compensation; 11 
 (b) Assist consumers and injured employees in understanding 12 
their rights and responsibilities under health care plans, including, 13 
without limitation, the Public Employees’ Benefits Program and the 14 
Public Option, and policies of industrial insurance; 15 
 (c) Identify and investigate complaints of consumers and injured 16 
employees regarding their health care plans, including, without 17 
limitation, the Public Employees’ Benefits Program and the Public 18 
Option, and policies of industrial insurance and assist those 19 
consumers and injured employees to resolve their complaints, 20 
including, without limitation: 21 
  (1) Referring consumers and injured employees to the 22 
appropriate agency, department or other entity that is responsible for 23 
addressing the specific complaint of the consumer or injured 24 
employee; and 25 
  (2) Providing counseling and assistance to consumers and 26 
injured employees concerning health care plans, including, without 27 
limitation, the Public Employees’ Benefits Program and the Public 28 
Option, and policies of industrial insurance; 29 
 (d) Provide information to consumers and injured employees 30 
concerning health care plans, including, without limitation, the 31 
Public Employees’ Benefits Program and the Public Option, and 32 
policies of industrial insurance in this State; 33 
 (e) Establish and maintain a system to collect and maintain 34 
information pertaining to the written and telephonic inquiries 35 
received by the Office for Consumer Health Assistance; 36 
 (f) Take such actions as are necessary to ensure public 37 
awareness of the existence and purpose of the services provided by 38 
the Advocate pursuant to this section; 39 
 (g) In appropriate cases and pursuant to the direction of the 40 
Advocate, refer a complaint or the results of an investigation to the 41 
Attorney General for further action; 42 
 (h) Provide information to and applications for prescription drug 43 
programs for consumers without insurance coverage for prescription 44 
drugs or pharmaceutical services; 45   
 	– 27 – 
 
 
- 	*SB378* 
 (i) Establish and maintain an Internet website which includes: 1 
  (1) Information concerning purchasing prescription drugs 2 
from Canadian pharmacies that have been recommended by the 3 
State Board of Pharmacy for inclusion on the Internet website 4 
pursuant to subsection 4 of NRS 639.2328; 5 
  (2) Links to websites of Canadian pharmacies which have 6 
been recommended by the State Board of Pharmacy for inclusion on 7 
the Internet website pursuant to subsection 4 of NRS 639.2328; and 8 
  (3) A link to the website established and maintained pursuant 9 
to NRS 439A.270 which provides information to the general public 10 
concerning the charges imposed and the quality of the services 11 
provided by the hospitals , [and] surgical centers for ambulatory 12 
patients and independent centers for emergency medical care in 13 
this State;  14 
 (j) Assist consumers with accessing a navigator, case manager 15 
or facilitator to help the consumer obtain health care services;  16 
 (k) Assist consumers with scheduling an appointment with a 17 
provider of health care who is in the network of providers under 18 
contract to provide services to participants in the health care plan 19 
under which the consumer is covered; 20 
 (l) Assist consumers with filing complaints against health care 21 
facilities and health care professionals;  22 
 (m) Assist consumers with filing complaints with the 23 
Commissioner of Insurance against issuers of health care plans; and 24 
 (n) On or before January 31 of each year, compile a report of 25 
aggregated information submitted to the Office for Consumer 26 
Health Assistance pursuant to NRS 687B.675, aggregated for each 27 
type of provider of health care for which such information is 28 
provided and submit the report to the Director of the Legislative 29 
Counsel Bureau for transmittal to: 30 
  (1) In even-numbered years, the Joint Interim Standing 31 
Committee on Health and Human Services; and 32 
  (2) In odd-numbered years, the next regular session of the 33 
Legislature. 34 
 2.  The Advocate may adopt regulations to carry out the 35 
provisions of this section and NRS 232.461 and 232.462. 36 
 3. As used in this section: 37 
 (a) “Health care facility” has the meaning ascribed to it in  38 
NRS 162A.740. 39 
 (b) “Navigator, case manager or facilitator” has the meaning 40 
ascribed to it in NRS 687B.675. 41 
 (c) “Public Option” means the Public Option established 42 
pursuant to NRS 695K.200. 43   
 	– 28 – 
 
 
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 Sec. 24.  NRS 287.010 is hereby amended to read as follows: 1 
 287.010 1.  The governing body of any county, school 2 
district, municipal corporation, political subdivision, public 3 
corporation or other local governmental agency of the State of 4 
Nevada may: 5 
 (a) Adopt and carry into effect a system of group life, accident 6 
or health insurance, or any combination thereof, for the benefit of its 7 
officers and employees, and the dependents of officers and 8 
employees who elect to accept the insurance and who, where 9 
necessary, have authorized the governing body to make deductions 10 
from their compensation for the payment of premiums on the 11 
insurance. 12 
 (b) Purchase group policies of life, accident or health insurance, 13 
or any combination thereof, for the benefit of such officers and 14 
employees, and the dependents of such officers and employees, as 15 
have authorized the purchase, from insurance companies authorized 16 
to transact the business of such insurance in the State of Nevada, 17 
and, where necessary, deduct from the compensation of officers and 18 
employees the premiums upon insurance and pay the deductions 19 
upon the premiums. 20 
 (c) Provide group life, accident or health coverage through a 21 
self-insurance reserve fund and, where necessary, deduct 22 
contributions to the maintenance of the fund from the compensation 23 
of officers and employees and pay the deductions into the fund. The 24 
money accumulated for this purpose through deductions from the 25 
compensation of officers and employees and contributions of the 26 
governing body must be maintained as an internal service fund as 27 
defined by NRS 354.543. The money must be deposited in a state or 28 
national bank or credit union authorized to transact business in the 29 
State of Nevada. Any independent administrator of a fund created 30 
under this section is subject to the licensing requirements of chapter 31 
683A of NRS, and must be a resident of this State. Any contract 32 
with an independent administrator must be approved by the 33 
Commissioner of Insurance as to the reasonableness of 34 
administrative charges in relation to contributions collected and 35 
benefits provided. The provisions of NRS 439.581 to 439.597, 36 
inclusive, and section 1 of this act, 686A.135, 687B.352, 687B.408, 37 
687B.692, 687B.723, 687B.725, 687B.805, 689B.030 to 38 
689B.0317, inclusive, paragraphs (b) and (c) of subsection 1 of NRS 39 
689B.0319, subsections 2, 4, 6 and 7 of NRS 689B.0319, 689B.033 40 
to 689B.0369, inclusive, 689B.0375 to 689B.050, inclusive, 41 
689B.0675, 689B.265, 689B.287 and 689B.500 apply to coverage 42 
provided pursuant to this paragraph, except that the provisions of 43 
NRS 689B.0378, 689B.03785 and 689B.500 only apply to coverage 44   
 	– 29 – 
 
 
- 	*SB378* 
for active officers and employees of the governing body, or the 1 
dependents of such officers and employees. 2 
 (d) Defray part or all of the cost of maintenance of a self-3 
insurance fund or of the premiums upon insurance. The money for 4 
contributions must be budgeted for in accordance with the laws 5 
governing the county, school district, municipal corporation, 6 
political subdivision, public corporation or other local governmental 7 
agency of the State of Nevada. 8 
 2.  If a school district offers group insurance to its officers and 9 
employees pursuant to this section, members of the board of trustees 10 
of the school district must not be excluded from participating in the 11 
group insurance. If the amount of the deductions from compensation 12 
required to pay for the group insurance exceeds the compensation to 13 
which a trustee is entitled, the difference must be paid by the trustee. 14 
 3.  In any county in which a legal services organization exists, 15 
the governing body of the county, or of any school district, 16 
municipal corporation, political subdivision, public corporation or 17 
other local governmental agency of the State of Nevada in the 18 
county, may enter into a contract with the legal services 19 
organization pursuant to which the officers and employees of the 20 
legal services organization, and the dependents of those officers and 21 
employees, are eligible for any life, accident or health insurance 22 
provided pursuant to this section to the officers and employees, and 23 
the dependents of the officers and employees, of the county, school 24 
district, municipal corporation, political subdivision, public 25 
corporation or other local governmental agency. 26 
 4.  If a contract is entered into pursuant to subsection 3, the 27 
officers and employees of the legal services organization: 28 
 (a) Shall be deemed, solely for the purposes of this section, to be 29 
officers and employees of the county, school district, municipal 30 
corporation, political subdivision, public corporation or other local 31 
governmental agency with which the legal services organization has 32 
contracted; and 33 
 (b) Must be required by the contract to pay the premiums or 34 
contributions for all insurance which they elect to accept or of which 35 
they authorize the purchase. 36 
 5.  A contract that is entered into pursuant to subsection 3: 37 
 (a) Must be submitted to the Commissioner of Insurance for 38 
approval not less than 30 days before the date on which the contract 39 
is to become effective. 40 
 (b) Does not become effective unless approved by the 41 
Commissioner. 42 
 (c) Shall be deemed to be approved if not disapproved by the 43 
Commissioner within 30 days after its submission. 44   
 	– 30 – 
 
 
- 	*SB378* 
 6.  As used in this section, “legal services organization” means 1 
an organization that operates a program for legal aid and receives 2 
money pursuant to NRS 19.031. 3 
 Sec. 25.  NRS 287.04335 is hereby amended to read as 4 
follows: 5 
 287.04335 If the Board provides health insurance through a 6 
plan of self-insurance, it shall comply with the provisions of NRS 7 
439.581 to 439.597, inclusive, and section 1 of this act, 686A.135, 8 
687B.352, 687B.409, 687B.692, 687B.723, 687B.725, 687B.805, 9 
689B.0353, 689B.255, 695C.1723, 695G.150, 695G.155, 695G.160, 10 
695G.162, 695G.1635, 695G.164, 695G.1645, 695G.1665, 11 
695G.167, 695G.1675, 695G.170 to 695G.1712, inclusive, 12 
695G.1714 to 695G.174, inclusive, 695G.176, 695G.177, 695G.200 13 
to 695G.230, inclusive, 695G.241 to 695G.310, inclusive, 695G.405 14 
and 695G.415, in the same manner as an insurer that is licensed 15 
pursuant to title 57 of NRS is required to comply with those 16 
provisions. 17 
 Sec. 26.  Chapter 422 of NRS is hereby amended by adding 18 
thereto the provisions set forth as sections 27 and 28 of this act. 19 
 Sec. 27.  1. A provider of services under Medicaid shall: 20 
 (a) Maintain such documents as are required by regulation of 21 
the Administrator for the verification of claims for the period of 22 
time specified in those regulations; and 23 
 (b) Provide the documents maintained pursuant to paragraph 24 
(a) to the Department upon the request of the Department. 25 
 2. The Department may audit any documents provided 26 
pursuant to paragraph (b) of subsection 1. If the Department is 27 
unable to verify a claim using the documents maintained pursuant 28 
to subsection 1, the Department may deny the claim or, if the 29 
Department has already paid the claim, recover the amount of the 30 
payment from the provider. 31 
 Sec. 28.  1. If the Department determines that a provider of 32 
services under Medicaid may be prescribing or providing services 33 
in a manner that exceeds the needs of recipients of Medicaid, is 34 
unnecessary or otherwise conflicts with applicable professional 35 
standards or the requirements of the Medicaid program, the 36 
Department shall perform a review of the relevant claims to 37 
evaluate the appropriateness and propriety of the services for 38 
which payment is claimed. If the Department has not paid the 39 
claims, the review must occur before the Department pays the 40 
claims. 41 
 2. Upon deciding to conduct a review pursuant to subsection 42 
1, the Department shall: 43 
 (a) Notify the provider of services who submitted the claims 44 
subject to the review; and 45   
 	– 31 – 
 
 
- 	*SB378* 
 (b) Require the provider of services to submit to the 1 
Department within a period of time specified by the Department 2 
any documentation necessary to substantiate the claims. 3 
 3. If a provider of services fails to submit the documentation 4 
required by the Department pursuant to paragraph (b) of 5 
subsection 2 within the time specified pursuant to that paragraph, 6 
the Department may take the actions described in paragraph (a) of 7 
subsection 5 without the opportunity for a hearing pursuant to 8 
NRS 422.306. 9 
 4. Not later than 60 days after receiving the documentation 10 
requested pursuant to paragraph (b) of subsection 2, the 11 
Department shall complete a review pursuant to this section and 12 
either: 13 
 (a) Pay the claims that were subject to the review or, if the 14 
Department has already paid such a claim, notify the provider of 15 
services who made the claim that the claim has been upheld; or 16 
 (b) Take an action described in paragraph (a) of subsection 5 17 
with respect to the claims that were subject to the review. 18 
 5. If the Department determines after conducting a review 19 
pursuant to this section that a provider of services has prescribed 20 
or provided services in a manner that exceeds the needs of 21 
recipients of Medicaid, is unnecessary or otherwise conflicts with 22 
applicable professional standards or the requirements of the 23 
Medicaid program, the Department may, after the opportunity for 24 
a hearing pursuant to NRS 422.306: 25 
 (a) Deny the affected claims or, if the Department has already 26 
paid an affected claim, recover the amount of the payment from 27 
the provider; 28 
 (b) Require the provider to request and receive authorization 29 
for the delivery of services to recipients of Medicaid before 30 
delivering the services; or 31 
 (c) Take any other action authorized by this chapter and the 32 
regulations adopted pursuant thereto. 33 
 Sec. 29.  NRS 603A.100 is hereby amended to read as follows: 34 
 603A.100 1.  The provisions of NRS 603A.010 to 603A.290, 35 
inclusive, do not apply to the maintenance or transmittal of 36 
information in accordance with NRS 439.581 to 439.597, inclusive, 37 
and section 1 of this act and the regulations adopted pursuant 38 
thereto. 39 
 2.  A data collector who is also an operator, as defined in NRS 40 
603A.330, shall comply with the provisions of NRS 603A.300 to 41 
603A.360, inclusive. 42 
 3. Any waiver of the provisions of NRS 603A.010 to 43 
603A.290, inclusive, is contrary to public policy, void and 44 
unenforceable. 45   
 	– 32 – 
 
 
- 	*SB378* 
 Sec. 30.  NRS 613.195 is hereby amended to read as follows: 1 
 613.195 1.  A noncompetition covenant is void and 2 
unenforceable unless the noncompetition covenant: 3 
 (a) Is supported by valuable consideration; 4 
 (b) Does not impose any restraint that is greater than is required 5 
for the protection of the employer for whose benefit the restraint is 6 
imposed;  7 
 (c) Does not impose any undue hardship on the employee; and 8 
 (d) Imposes restrictions that are appropriate in relation to the 9 
valuable consideration supporting the noncompetition covenant. 10 
 2.  A noncompetition covenant may not restrict, and an 11 
employer may not bring an action to restrict, a former employee of 12 
an employer from providing service to a former customer or client 13 
if: 14 
 (a) The former employee did not solicit the former customer or 15 
client; 16 
 (b) The customer or client voluntarily chose to leave and seek 17 
services from the former employee; and 18 
 (c) The former employee is otherwise complying with the 19 
limitations in the covenant as to time, geographical area and scope 20 
of activity to be restrained, other than any limitation on providing 21 
services to a former customer or client who seeks the services of the 22 
former employee without any contact instigated by the former 23 
employee. 24 
 Any provision in a noncompetition covenant which violates the 25 
provisions of this subsection is void and unenforceable. 26 
 3.  A noncompetition covenant may not apply to a physician or 27 
an employee who is paid solely on an hourly wage basis, exclusive 28 
of any tips or gratuities.  29 
 4. An employer in this State who negotiates, executes or 30 
attempts to enforce a noncompetition covenant that is void and 31 
unenforceable under this section does not violate the provisions of 32 
NRS 613.200. 33 
 5.  If the termination of the employment of an employee is the 34 
result of a reduction of force, reorganization or similar restructuring 35 
of the employer, a noncompetition covenant is only enforceable 36 
during the period in which the employer is paying the employee’s 37 
salary, benefits or equivalent compensation, including, without 38 
limitation, severance pay. 39 
 6.  If an employer brings an action to enforce a noncompetition 40 
covenant or an employee brings an action to challenge a 41 
noncompetition covenant and the court finds the covenant is 42 
supported by valuable consideration but contains limitations as to 43 
time, geographical area or scope of activity to be restrained that are 44 
not reasonable, imposes a greater restraint than is necessary for the 45   
 	– 33 – 
 
 
- 	*SB378* 
protection of the employer for whose benefit the restraint is imposed 1 
or imposes undue hardship on the employee, the court shall revise 2 
the covenant to the extent necessary and enforce the covenant as 3 
revised. Such revisions must cause the limitations contained in the 4 
covenant as to time, geographical area and scope of activity to be 5 
restrained to be reasonable, to not impose undue hardship on the 6 
employee and to impose a restraint that is not greater than is 7 
necessary for the protection of the employer for whose benefit the 8 
restraint is imposed. 9 
 7.  If an employer brings an action to enforce a noncompetition 10 
covenant or an employee or contractor brings an action to challenge 11 
a noncompetition covenant and the court finds that the 12 
noncompetition covenant applies to [an employee] a person 13 
described in subsection 3 or that the employer has restricted or 14 
attempted to restrict a former employee in the manner described in 15 
subsection 2, the court shall award the employee or contractor 16 
reasonable attorney’s fees and costs. Nothing in this subsection shall 17 
be construed as prohibiting a court from otherwise awarding 18 
attorney’s fees to a prevailing party pursuant to NRS 18.010. 19 
 8. As used in this section: 20 
 (a) “Employer” means every person having control or custody of 21 
any employment, place of employment or any employee. 22 
 (b) “Noncompetition covenant” means an agreement between an 23 
employer and employee which, upon termination of the employment 24 
of the employee, prohibits the employee from pursuing a similar 25 
vocation in competition with or becoming employed by a competitor 26 
of the employer. 27 
 Sec. 31.  NRS 629.051 is hereby amended to read as follows: 28 
 629.051 1.  Except as otherwise provided in this section and 29 
in regulations adopted by the State Board of Health pursuant to NRS 30 
652.135 with regard to the records of a medical laboratory and 31 
unless a longer period is provided by federal law, each custodian of 32 
health care records shall retain the health care records of patients as 33 
part of the regularly maintained records of the custodian for 5 years 34 
after their receipt or production. Health care records may be retained 35 
in written form, or by microfilm or any other recognized form of 36 
size reduction, including, without limitation, microfiche, computer 37 
disc, magnetic tape and optical disc, which does not adversely affect 38 
their use for the purposes of NRS 629.061.  39 
 2. A high-level provider of health care shall comply with the 40 
requirements of subsection 4 of NRS 439.589 concerning the 41 
maintenance, transmittal and exchange of health records. Health 42 
care records [: 43   
 	– 34 – 
 
 
- 	*SB378* 
 (a) Must, except as otherwise provided in subsections 5 and 6 of 1 
NRS 439.589, be created, maintained, transmitted and exchanged 2 
electronically as required by subsection 4 of NRS 439.589; and 3 
 (b) May] may be created, authenticated and stored in a health 4 
information exchange which meets the requirements of NRS 5 
439.581 to 439.597, inclusive, and section 1 of this act and the 6 
regulations adopted pursuant thereto.  7 
 [2.] 3.  A provider of health care shall post, in a conspicuous 8 
place in each location at which the provider of health care performs 9 
health care services, a sign which discloses to patients that their 10 
health care records may be destroyed after the period set forth in 11 
subsection 1. 12 
 [3.] 4.  When a provider of health care performs health care 13 
services for a patient for the first time, the provider of health care 14 
shall deliver to the patient a written statement which discloses to the 15 
patient that the health care records of the patient may be destroyed 16 
after the period set forth in subsection 1. 17 
 [4.] 5.  If a provider of health care fails to deliver the written 18 
statement to the patient pursuant to subsection [3,] 4, the provider of 19 
health care shall deliver to the patient the written statement 20 
described in subsection [3] 4 when the provider of health care next 21 
performs health care services for the patient. 22 
 [5.] 6.  In addition to delivering a written statement pursuant to 23 
subsection [3 or] 4 [,] or 5, a provider of health care may deliver 24 
such a written statement to a patient at any other time. 25 
 [6.] 7.  A written statement delivered to a patient pursuant to 26 
this section may be included with other written information 27 
delivered to the patient by a provider of health care. 28 
 [7.] 8.  A custodian of health care records shall not destroy the 29 
health care records of a person who is less than 23 years of age on 30 
the date of the proposed destruction of the records. The health care 31 
records of a person who has attained the age of 23 years may be 32 
destroyed in accordance with this section for those records which 33 
have been retained for at least 5 years or for any longer period 34 
provided by federal law. 35 
 [8.] 9.  If a health care licensing board receives notification 36 
from the Department of Health and Human Services pursuant to 37 
NRS 439.5895 that a high-level provider of health care to which the 38 
health care licensing board has issued a license is not in compliance 39 
with the requirements of subsection 4 or 8, as applicable, of NRS 40 
439.589, the health care licensing board may, after notice and the 41 
opportunity for a hearing in accordance with the provisions of this 42 
title, require corrective action or impose an administrative penalty in 43 
an amount not to exceed the maximum penalty that the health care 44 
licensing board is authorized to impose for other violations. The 45   
 	– 35 – 
 
 
- 	*SB378* 
health care licensing board shall not suspend or revoke a license for 1 
failure to comply with the requirements of subsection 4 or 8 of  2 
NRS 439.589. 3 
 [9. The provisions of this section, except for the provisions of 4 
paragraph (a) of subsection 1 and subsection 8, do not apply to a 5 
pharmacist.] 6 
 10.  The State Board of Health shall adopt: 7 
 (a) Regulations prescribing the form, size, contents and 8 
placement of the signs and written statements required pursuant to 9 
this section; and 10 
 (b) Any other regulations necessary to carry out the provisions 11 
of this section. 12 
 11. As used in this section: 13 
 (a) “Health care licensing board” means: 14 
  (1) A board created pursuant to chapter 630, 630A, 631, 632, 15 
633, 634, 634A, 635, 636, 637, 637B, 639, 640, 640A, 640B, 640C, 16 
641, 641A, 641B, 641C or 641D of NRS. 17 
  (2) The Division of Public and Behavioral Health of the 18 
Department of Health and Human Services. 19 
  (3) The State Board of Health with respect to licenses issued 20 
pursuant to chapter 640D or 640E of NRS. 21 
 (b) “High-level provider of health care” has the meaning 22 
ascribed to it in section 1 of this act. 23 
 (c) “License” has the meaning ascribed to it in NRS 439.5895. 24 
 Sec. 32.  NRS 629.053 is hereby amended to read as follows: 25 
 629.053 1.  The State Board of Health and each board created 26 
pursuant to chapter 630, 630A, 631, 632, 633, 634, 634A, 635, 636, 27 
637, 637B, 640, 640A, 640B, 640C, 641, 641A, 641B, 641C or 28 
641D of NRS shall post on its website on the Internet, if any, a 29 
statement which discloses that: 30 
 (a) Pursuant to the provisions of subsection [7] 8 of  31 
NRS 629.051: 32 
  (1) The health care records of a person who is less than 23 33 
years of age may not be destroyed; and 34 
  (2) The health care records of a person who has attained the 35 
age of 23 years may be destroyed for those records which have been 36 
retained for at least 5 years or for any longer period provided by 37 
federal law; and 38 
 (b) Except as otherwise provided in subsection [7] 8 of NRS 39 
629.051 and unless a longer period is provided by federal law, the 40 
health care records of a patient who is 23 years of age or older may 41 
be destroyed after 5 years pursuant to subsection 1 of NRS 629.051. 42 
 2. The State Board of Health shall adopt regulations 43 
prescribing the contents of the statements required pursuant to this 44 
section. 45   
 	– 36 – 
 
 
- 	*SB378* 
 Sec. 33.  NRS 629.062 is hereby amended to read as follows: 1 
 629.062 1. If a person who is authorized to request a copy of 2 
health care records of a patient pursuant to NRS 629.061 requests 3 
that a copy of such records be furnished electronically, the custodian 4 
of health care records must electronically transmit a copy of the 5 
requested records to the person or, if the patient has provided 6 
written authorization for records to be furnished to another person or 7 
entity, to that person or entity. Such records must be furnished in an 8 
electronic format using a method of secure electronic transmission 9 
that complies with applicable federal and state law. If a patient 10 
requests that a copy his or her health care records be furnished 11 
electronically to the patient or any other person or entity, the 12 
custodian of health records shall furnish the copy not later than 13 
the end of the second business day after the request is made.  14 
 2.  Except as otherwise provided in this subsection and 15 
subsections 3 and 4, if a custodian of health care records maintains 16 
health care records electronically, any fee to furnish those records 17 
electronically pursuant to subsection 1 must not exceed $40 or the 18 
amount per page prescribed by NRS 629.061, whichever is less. A 19 
custodian of health care records shall not charge a fee to furnish 20 
health care records to a patient or, if the patient has requested a 21 
copy of his or her health care records to be furnished to another 22 
person or entity, to that person or entity.  23 
 3. If the total amount of the fee chargeable pursuant to 24 
subsection 2 for the furnishing of health care records electronically 25 
is less than $5, a custodian of health care records, other than a 26 
custodian of the health care records of a state or local governmental 27 
entity, may charge a fee of $5 for the furnishing of those health care 28 
records.  29 
 4. [A] Except as otherwise provided in subsection 2, a 30 
custodian of health care records, other than a custodian of the health 31 
care records of a state or local governmental entity, may charge the 32 
following fees to furnish health care records electronically, in 33 
addition to the total amount of the fee charged pursuant to 34 
subsection 2 or 3: 35 
 (a) A fee of $5 for written confirmation that no health care 36 
records were found. 37 
 (b) A fee of $5 for furnishing a copy of a certificate of the 38 
custodian of health care records. 39 
 (c) A fee of $20 for a copy of a printed film sheet. 40 
 (d) A fee of $25 for furnishing a copy of radiologic images in 41 
any form other than a printed film sheet. 42 
 5. As used in this section:  43 
 (a) “Custodian of health care records” has the meaning ascribed 44 
to it in NRS 629.016 and additionally includes a covered entity or 45   
 	– 37 – 
 
 
- 	*SB378* 
business associate, as those terms are defined in 45 C.F.R. § 1 
160.103. 2 
 (b) “Health care records” has the meaning ascribed to it in NRS 3 
629.021 and additionally includes individually identifiable health 4 
information, as defined in 45 C.F.R. § 160.103. 5 
 (c) “Secure electronic transmission” means the sending of 6 
information from one computer system to another computer system 7 
in such a manner as to ensure that: 8 
  (1) No person other than the intended recipient receives the 9 
information; 10 
  (2) The identity and signature of the sender of the 11 
information can be authenticated; and  12 
  (3) The information which is received by the intended 13 
recipient is identical to the information that was sent. 14 
 Sec. 34.  NRS 686A.315 is hereby amended to read as follows: 15 
 686A.315 1.  If a hospital or independent center for 16 
emergency medical care submits to an insurer the form prescribed 17 
by the Director of the Department of Health and Human Services 18 
pursuant to NRS 449.485, that form must contain or be 19 
accompanied by a statement that reads substantially as follows: 20 
 21 
 Any person who misrepresents or falsifies essential 22 
information requested on this form may, upon conviction, be 23 
subject to a fine and imprisonment under state or federal law, 24 
or both. 25 
 26 
 2.  If a person who is licensed to practice one of the health 27 
professions regulated by title 54 of NRS submits to an insurer the 28 
form commonly referred to as the “HCFA-1500” for a patient who 29 
is not covered by any governmental program which offers insurance 30 
coverage for health care, the form must be accompanied by a 31 
statement that reads substantially as follows: 32 
 33 
 Any person who knowingly files a statement of claim 34 
containing any misrepresentation or any false, incomplete or 35 
misleading information may be guilty of a criminal act 36 
punishable under state or federal law, or both, and may be 37 
subject to civil penalties. 38 
 39 
 3.  The failure to provide any of the statements required by this 40 
section is not a defense in a prosecution for insurance fraud pursuant 41 
to NRS 686A.291. 42   
 	– 38 – 
 
 
- 	*SB378* 
 Sec. 35.  NRS 719.200 is hereby amended to read as follows: 1 
 719.200 1.  Except as otherwise provided in subsection 2, the 2 
provisions of this chapter apply to electronic records and electronic 3 
signatures relating to a transaction. 4 
 2.  The provisions of this chapter do not apply to a transaction 5 
to the extent it is governed by: 6 
 (a) Except as otherwise specifically provided by law, a law 7 
governing the creation and execution of wills, codicils or 8 
testamentary trusts; 9 
 (b) The Uniform Commercial Code other than NRS 104.1306, 10 
104.2101 to 104.2725, inclusive, and 104A.2101 to 104A.2532, 11 
inclusive; or 12 
 (c) The provisions of NRS 439.581 to 439.597, inclusive, and 13 
section 1 of this act and the regulations adopted pursuant thereto. 14 
 3.  The provisions of this chapter apply to an electronic record 15 
or electronic signature otherwise excluded from the application of 16 
this chapter under subsection 2 to the extent it is governed by a law 17 
other than those specified in subsection 2. 18 
 4.  A transaction subject to the provisions of this chapter is also 19 
subject to other applicable substantive law. 20 
 Sec. 36.  NRS 720.140 is hereby amended to read as follows: 21 
 720.140 1.  Except as otherwise provided in this subsection, 22 
the provisions of this chapter apply to any transaction for which a 23 
digital signature is used to sign an electronic record. The provisions 24 
of this chapter do not apply to a digital signature that is used to sign 25 
an electronic health record in accordance with NRS 439.581 to 26 
439.597, inclusive, and section 1 of this act and the regulations 27 
adopted pursuant thereto. 28 
 2.  As used in this section, “electronic record” has the meaning 29 
ascribed to it in NRS 719.090. 30 
 Sec. 37.  1. Notwithstanding the amendatory provisions of 31 
section 14 of this act, an independent center for emergency medical 32 
care that is owned or operated by, or otherwise part of, a hospital 33 
may continue to operate without obtaining a license separate from 34 
the license of the hospital pursuant to NRS 449.080 until July 1, 35 
2026. 36 
 2. Notwithstanding the amendatory provisions of section 17 of 37 
this act, the Division of Public and Behavioral Health of the 38 
Department of Health and Human Services shall issue a license to 39 
operate an independent center for emergency medical care that is 40 
owned or operated by, or otherwise part of, a hospital, is operating 41 
on January 1, 2026, and is located within 5 miles of another 42 
independent center for emergency medical care if the independent 43 
center for emergency medical care otherwise qualifies for licensure 44 
pursuant to NRS 449.080.  45   
 	– 39 – 
 
 
- 	*SB378* 
 3. As used in this section, “independent center for emergency 1 
medical care” has the meaning ascribed to it in NRS 449.013, as 2 
amended by section 14 of this act.  3 
 Sec. 38.  The provisions of subsection 1 of NRS 218D.380 do 4 
not apply to any provision of this act which adds or revises a 5 
requirement to submit a report to the Legislature. 6 
 Sec. 39.  The provisions of NRS 354.599 do not apply to any 7 
additional expenses of a local government that are related to the 8 
provisions of this act. 9 
 Sec. 40.  NRS 450B.215 is hereby repealed. 10 
 Sec. 41.  1. This section and sections 1 to 4, inclusive, 6, 21, 11 
22, 24 to 32, inclusive, 35, 36 and 40 of this act become effective 12 
upon passage and approval. 13 
 2. Sections 5, 7 to 20, inclusive, 23, 33, 34, 37, 38 and 39 of 14 
this act become effective: 15 
 (a) Upon passage and approval for the purpose of adopting any 16 
regulations and performing any other preliminary administrative 17 
tasks that are necessary to carry out the provisions of this act; and 18 
 (b) On January 1, 2026, for all other purposes. 19 
 
 
TEXT OF REPEALED SECTION 
 
 
 450B.215 Administrative sanctions for failure to comply 
with requirements concerning electronic health information. 
 1. If the health authority receives notification from the 
Department of Health and Human Services pursuant to NRS 
439.5895 that the holder of a permit to operate an ambulance, air 
ambulance or vehicle of a fire-fighting agency is not in compliance 
with the requirements of subsection 4 of NRS 439.589, the health 
authority may, after notice and the opportunity for a hearing in 
accordance with the provisions of this chapter, require corrective 
action or impose an administrative penalty in an amount established 
by regulation of the board. 
 2. The health authority shall not suspend or revoke a permit  
for failure to comply with the requirements of subsection 4 of  
NRS 439.589. 
 
H