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- 83rd Session (2025)
Assembly Bill No. 15–Committee
on Government Affairs
CHAPTER..........
AN ACT relating to Medicaid fraud; revising the authority of the
Attorney General, acting through the Medicaid Fraud Control
Unit, to issue subpoenas; setting forth procedures for the
enforcement of such a subpoena; revising p rovisions
governing certain actions for false or fraudulent claims;
revising the penalties for failing to maintain certain records
relating to Medicaid claims; and providing other matters
properly relating thereto.
Legislative Counsel’s Digest:
Existing law establishes the Medicaid Fraud Control Unit within the Office of
the Attorney General as the agency responsible for the investigation and
prosecution of violations or offenses relating to the State Plan for Medicaid. (NRS
228.410) In carrying out those duties and responsibilities, existing law authorizes
the Attorney General, acting through the chief executive of the Medicaid Fraud
Control Unit or his or her designee, to issue a subpoena for documents, records or
materials. (NRS 228.411) Section 1 of thi s bill additionally authorizes such a
subpoena to compel a person to: (1) appear and be examined under oath; and (2)
answer written interrogatories under oath. Under section 1 the Attorney General is
authorized to use any documents, records, materials, testimony or answers
produced pursuant to such a subpoena in the course of a civil action involving
Medicaid fraud, but prohibited from using those items in the course of a criminal
action. Section 1 sets forth procedures by which the Attorney General may petition
a court for the issuance of an order to compel compliance with such a subpoena.
Existing federal law provides financial incentives for states that enact laws
establishing liability for false or fraudulent claim s made to the State Plan for
Medicaid. (42 U.S.C. § 1396h) To be eligible for these financial incentives, the
laws of a state must contain provisions that are at least as effective at rewarding and
facilitating certain qui tam actions for false or fraudule nt claims as those described
in the federal False Claims Act. (31 U.S.C. §§ 3729 -3732) Existing federal law
prohibits a private person from bringing a qui tam action against a person for false
or fraudulent claims if the action is based upon allegations or transactions which are
the subject of a civil suit or an administrative civil money penalty proceeding in
which the Federal Government is already a party. (31 U.S.C. § 3730(e)(3)) Existing
state law contains similar provisions, but prohibits a private pla intiff from
maintaining, rather than bringing, a qui tam action for false or fraudulent claims if
the action is based upon allegations or transactions that are the subject of a civil
action or administrative proceeding for a monetary penalty to which the S tate or
political subdivision is already a party. (NRS 357.080) Section 2 of this bill revises
that prohibition, consistent with federal law, to prohibit a person from bringing,
rather than maintaining, such an action under those circumstances.
Existing law makes it a gross misdemeanor for a person to intentionally fail to
maintain certain records relating to a claim for payment for goods or services
pursuant to the State Plan for Medicaid. (NRS 422.570) Section 3 of this bill
instead makes the punishment for such an offense: (1) a misdemeanor if the amount
of the claim was less than $650; and (2) a gross misdemeanor if the amount of the
claim was $650 or more.
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- 83rd Session (2025)
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 228.411 is hereby amended to read as follows:
228.411 1. In carrying out the duties and responsibilities
under NRS 228.410, the Attorney General, acting through the chief
executive of the Medicaid Fraud Control Unit or his or her designee,
may issue a subpoena [for] to compel a person to:
(a) Produce documents, records or materials [.] ;
(b) Appear and be examined under oath;
(c) Answer written interrogatories under oath; or
(d) Perform any combination of the actions described in
paragraphs (a), (b) and (c).
2. The Attorney General may use any documents, records , [or]
materials , testimony or answers produced pursuant to a subpoena
issued under this section in the course of a civil action brought
pursuant to NRS 228.410. The Attorney General may not use any
documents, records, materials, testimony or answers produced
pursuant to a subpoena issued under this section in the course of a
criminal action.
3. [Any] If a person [who willfully] fails or refuses to comply
with a subpoena issued pursuant to this section [is guilty of a
misdemeanor.] , the Attorney General may petition the district
court in the county in which the person resides or has his or her
principal place of business. Upon the filing of such a petition, the
court shall set a time for a hearing on the p etition and provide
notice of the petition and hearing to the parties.
4. Except as otherwise provided in subsection 5, the court
shall enter an order compelling compliance with the subpoena if,
at the hearing, the court finds that:
(a) The subpoena was properly issued;
(b) There is reasonable cause to believe that a violation of
NRS 422.540 to 422.570, inclusive, or any fraud in the
administration of the Plan or in the provision of medical
assistance pursuant to the Plan has occurred or is occurring; and
(c) The document, record, material, testimony or answer is
relevant to the investigation of the Attorney General.
5. The court may, on motion by the person upon whom the
subpoena was served and upon a showing of good cause, modify
the order issued p ursuant to subsection 4 or issue any further
order that justice may require to protect the person from
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unreasonable annoyance, embarrassment, oppression, burden or
expense.
[4.] 6. A subpoena issued pursuant to this section must include
a copy of the provisions of subsections 1 [, 2 and 3.] to 5, inclusive.
7. As used in this section, “Plan” has the meaning ascribed to
it in NRS 228.410.
Sec. 2. NRS 357.080 is hereby amended to read as follows:
357.080 1. Except as otherwise provided in this section and
NRS 357.100, a private plaintiff may bring an action pursuant to
this chapter for a violation of NRS 357.040 on his or her own
account and that of the State or a political subdivision, or both the
State and a politica l subdivision. The action must be brought in the
name of the State or the political subdivision, or both. After such an
action is commenced, it may be dismissed only with written consent
of the court and the Attorney General. The court and the Attorney
General shall take into account the public purposes of this chapter
and the best interests of the parties in dismissing the action or
consenting to the dismissal, as applicable, and provide the reasons
for dismissing the action or consenting to the dismissal, as
applicable.
2. If a private plaintiff brings an action pursuant to this chapter,
no person other than the Attorney General or the Attorney General’s
designee may intervene or bring a related action pursuant to this
chapter based on the facts underlying the first action.
3. An action may not be [maintained] brought by a private
plaintiff pursuant to this chapter:
(a) Against a member of the Legislature or the Judiciary, an
elected officer of the Executive Department of the State
Government, or a mem ber of the governing body of a political
subdivision, if the action is based upon evidence or information
known to the State or political subdivision at the time the action was
brought.
(b) If the action is based upon allegations or transactions that are
the subject of a civil action or an administrative proceeding for a
monetary penalty to which the State or political subdivision is
already a party.
4. A complaint filed pursuant to this section must be placed
under seal and so remain for at least 60 day s or until the Attorney
General or a designee of the Attorney General pursuant to NRS
357.070 has elected whether to intervene. No service may be made
upon the defendant until so ordered by the court.
5. On the date the private plaintiff files a complain t, he or she
shall send a copy of the complaint to the Attorney General by mail
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with return receipt requested. The private plaintiff shall send with
each copy of the complaint a written disclosure of substantially all
material evidence and information he o r she possesses. If a district
attorney or city attorney has accepted a designation from the
Attorney General pursuant to NRS 357.070, the Attorney General
shall forward a copy of the complaint to the district attorney or city
attorney, as applicable.
6. An action pursuant to this chapter may be brought in any
judicial district in this State in which the defendant can be found,
resides, transacts business or in which any of the alleged fraudulent
activities occurred.
Sec. 3. NRS 422.570 is hereby amended to read as follows:
422.570 1. A person [is guilty of a gross misdemeanor if, ]
who, upon submitting a claim for or upon receiving payment for
goods or services pursuant to the Plan, [the person ] intentionally
fails to maintain such records as are necessary to disclose fully the
nature of the goods or services for which a claim was submitted or
payment was received, or such records as are necessary to disclose
fully all income and expenditures upon which rates of payment were
based, for at least 5 years after the date on which payment was
received [.] is guilty of:
(a) If the amount of the claim is less than $650, a
misdemeanor.
(b) If the amount of the claim is $650 or more, a gross
misdemeanor.
2. A person who intentionally destroys such records within 5
years after the date payment was received is guilty of a category D
felony and shall be punished as provided in NRS 193.130.
Sec. 4. This act becomes effective upon passage and approval.
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