Restricts the use of certain products by governmental entities and government-funded entities. (BDR 19-737)

EXEMPT
(Reprinted with amendments adopted on April 18, 2025)
FIRST REPRINT A.B. 208

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ASSEMBLY BILL NO. 208–ASSEMBLYMEMBER YEAGER

PREFILED FEBRUARY 3, 2025
____________

Referred to Committee on Government Affairs

SUMMARY—Restricts the use of certain products by governmental
entities and government -funded entities.
(BDR 19-737)

FISCAL NOTE: Effect on Local Government: May have Fiscal Impact.
Effect on the State: Yes.

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

AN ACT relating to governmental entities; restricting the manner in
which certain governmental entities or government-
funded entities may use certain products; providing
certain exceptions; and providing other matters properly
relating thereto.
Legislative Counsel’s Digest:
This bill prohibits, with certain exceptions, a governmental entity or a 1
government-funded entity that operates, administers or contracts with a mental 2
health facility or place of confinement from using a product that is or has ever been 3
protected by a patent granted by the United States Patent and Trademark Office or is 4
subject to review by certain federal agencies in a manner: (1) that is contrary to the 5
terms of use of that product established by the curr ent or most recent holder of the 6
patent for the product or the manufacturer or distributor of the product; (2) that is 7
inconsistent with any written instructions, limitations or directed uses included with 8
the product; or (3) that exceeds the scope of the approved usage of the product, if a 9
federal agency has approved the product for specific uses. This bill also prohibits 10
such a governmental entity or government -funded entity from providing or 11
dispensing such a product for use in such a manner. 12
However, t his bill authorizes a covered entity to use , provide or dispense a 13
product in such a manner if the covered entity transmits a written notice of the 14
intended use to the patent holder and the manufacturer or distributor of the product, 15
if different from the patent holder, that: (1) identifies the specific product at issue; 16
and (2) describes the specific manner in which the entity plans to use , provide or 17
dispense the product. This bill authorizes the patent holder or the manufacturer or 18
distributor of a produ ct to object to the use , provision or dispensing of the product 19
in such a manner by transmitting a written notice of the objection to the covered 20
entity. Once the covered entity receives a notice of objection from the patent 21
holder, manufacturer or distributor, this bill requires the covered entity to cease and 22
desist from using , providing or dispensing the product in the manner to which the 23

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patent holder, manufacturer or distributor objects. This bill further authorizes a 24
covered entity to provide or dispe nse a patented or reviewed product to a resident 25
of a mental health facility or place of confinement to be used in a non -conforming 26
manner without providing notice to the patent holder, manufacturer and distributor 27
of the product if the resident to whom the product is provided or dispensed provides 28
informed consent with respect to the use and receipt of the product. 29

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 237 of NRS is hereby amended by adding 1
thereto a new section to read as follows: 2
1. Except as authorized by this section, a covered entity shall 3
not use a federally reviewed product or provide or dispense a 4
federally reviewed product to a resident for use, regardless of how 5
the product was obtained, in a manner that: 6
(a) Is contrary to the terms of use established for the federally 7
reviewed product by the patent holder, manufacturer or 8
distributor; 9
(b) Is inconsistent with any written directions, instructions, 10
limitations or intended usages for the federally reviewed product 11
that: 12
(1) Accompany the product; 13
(2) Are printed on the product; or 14
(3) Are printed on any label or packaging for the product; 15
or 16
(c) Is not one of the approved uses or purposes of the federally 17
reviewed product, i f the product is approved for specific uses or 18
purposes by an agency of the Federal Government. 19
2. Except as otherwise provided by subsection 5, a covered 20
entity may use, provide or dispense a federally reviewed product in 21
a manner described in subsection 1 if: 22
(a) The covered entity transmits a written notice to the patent 23
holder and the manufacturer and distributor of the federally 24
reviewed product, if different from the patent holder, that: 25
(1) Sufficiently identifies the federally reviewed product 26
that the covered entity seeks to use, provide or dispense; and 27
(2) Describes the specific manner in or purposes for which 28
the covered entity plans to use , provide or dispense the federally 29
reviewed product; and 30
(b) At least 30 days have elapsed after th e transmission of the 31
notice described in paragraph (a) without the patent holder, 32
manufacturer or distributor of the federally reviewed product 33
transmitting an objection to the covered entity pursuant to 34
subsection 3. 35

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3. If a patent holder or a manufact urer or distributor of a 1
federally reviewed product has reason to believe that a covered 2
entity is using, providing or dispensing or plans to use, provide or 3
dispense a federally reviewed product in a manner described in 4
subsection 1, based on a notice rec eived pursuant to subsection 2 5
or for any other reason, the patent holder, manufacturer or 6
distributor may object to such use by transmitting a written notice 7
to the covered entity that: 8
(a) Identifies the federally reviewed product at issue; 9
(b) Specifically describes the manner of use of the federally 10
reviewed product to which the patent holder, manufacturer or 11
distributor, as applicable, objects; 12
(c) Explains the reasons that the patent holder, manufacturer 13
or distributor believes such manner of use o f the federally 14
reviewed product violates subsection 1; and 15
(d) Requests that the covered entity cease and desist from 16
using, providing or dispensing the federally reviewed product in 17
the manner described in paragraph (b). 18
4. A patent holder or a manufacturer or distributor of a 19
federally reviewed product may withdraw an objection made 20
pursuant to subsection 3 by transmitting a written notice to the 21
covered entity to which the patent holder, manufacturer or 22
distributor, as applicable, transmitted t he objection pursuant to 23
subsection 3. The notice must identify: 24
(a) The federally reviewed product at issue; and 25
(b) The manner of use of the federally reviewed product 26
described in paragraph (b) of subsection 3 to which the patent 27
holder, manufacturer or distributor, as applicable, no longer 28
objects. 29
5. Except as otherwise provided in this subsection and 30
subsection 6, upon receiving a written notice described in 31
subsection 3 from a patent holder or the manufacturer or 32
distributor of a federally review ed product, a covered entity shall 33
immediately cease and desist from using , providing or dispensing 34
the federally reviewed product in the manner described in the 35
notice pursuant to paragraph (b) of subsection 3. A covered entity 36
may use , provide or dispens e the federally reviewed product in 37
such a manner if the covered entity subsequently receives a written 38
notice withdrawing any objection for that particular manner of 39
use pursuant to subsection 4 from all patent holders, 40
manufacturers and distributors that have objected to that 41
particular manner of use pursuant to subsection 3. 42
6. A covered entity may provide or dispense a federally 43
reviewed product to a resident to be used in a manner described in 44
subsection 1 if the resident to whom the product is provi ded or 45

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dispensed provides informed consent to the covered entity with 1
respect to the particular use and receipt of the product. A covered 2
entity is not required to provide the notice required pursuant to 3
subsection 2 to the patent holder, manufacturer and distributor of 4
a federally reviewed product that is provided or dispensed in a 5
manner consistent with the provisions of this subsection. 6
7. The provisions of this section shall not be construed to 7
require a covered entity to perform any action or use, pr ovide or 8
dispense a federally reviewed product in a manner that is in 9
violation of any condition to the receipt of federal money. 10
8. As used in this section: 11
(a) “Covered entity” means: 12
(1) A governmental entity that operates or administers a 13
covered facility; and 14
(2) A government-funded entity that: 15
(I) Maintains a contract with a governmental entity to 16
provide services in or assist in the operations of a covered facility; 17
or 18
(II) Operates or administers a covered facility. 19
(b) “Covered facility” means: 20
(1) A facility that provides care, treatment or training of 21
consumers and persons with mental illnesses, including, without 22
limitation, the facilities listed in NRS 433.233 and 433B.110; or 23
(2) A community correctional center, conservation camp, 24
facility of minimum security, prison or other place of confinement 25
for the custody, care or training of persons sentenced to 26
imprisonment. 27
(c) “Federally reviewed product” means any product or 28
invention that: 29
(1) Is currently protected by, or has ever been protected by, 30
a patent issued by the United States Patent and Trademark Office; 31
and 32
(2) Has received or is pending approval by the United 33
States Food and Drug Administration or the United States 34
Department of Agriculture. 35
(d) “Governmental entity” means the State of Nevada or any 36
agency, institution, board, commission, bureau, council, 37
department, division, office, authority or other unit of government 38
of the State of Nevada. 39
(e) “Government-funded entity” means any entity that received 40
50 pe rcent or more of its operating budget in the immediately 41
preceding calendar year from any combination of: 42
(1) One or more governmental entities; or 43
(2) Appropriations, grants or transfers from the State 44
General Fund or any other fund or account established by law. 45

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(f) “Patent holder” means: 1
(1) A person or entity that holds a valid patent for a 2
federally reviewed product issued by the United States Patent and 3
Trademark Office; or 4
(2) If the patent issued by the United States Patent and 5
Trademark Office for a federally approved product is expired, the 6
person or entity that held the patent at the time of the expiration. 7
(g) “Resident” means a person who is ordered into the custody 8
of, confined in or otherwise resides within a covered facility. 9
Sec. 2. 1. This section becomes effective upon passage and 10
approval. 11
2. Section 1 of this act becomes effective: 12
(a) Upon passage and approval for the purpose of adopting any 13
regulations and performing any other preparatory administrative 14
tasks that are necessary to carry out the provisions of this act; and 15
(b) On July 1, 2025, for all other purposes. 16

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