Revises provisions governing Nevada Educational Choice Scholarship Program. (BDR 34-130)

A.B. 214

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ASSEMBLY BILL NO. 214–ASSEMBLYMEMBER HAFEN

PREFILED FEBRUARY 3, 2025
____________

Referred to Committee on Education

SUMMARY—Revises provisions governing Nevada Educational
Choice Scholarship Program. (BDR 34-130)

FISCAL NOTE: Effect on Local Government: No.
Effect on the State: Yes.

~

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

AN ACT relating to education; revising the criteria for pupils to be
eligible for a grant from a scholarship organization under
the Nevada Educational Choice Scholarship Program;
establishing the order of priority in which a scholarship
organization must award such grants; e stablishing the
minimum amount of a grant provided on behalf of a pupil;
revising the amount of credits the Department of Taxation
is authorized to approve against the modified business tax
for taxpayers who donate to a scholarship organization ;
providing a tax credit for insurers who donate money to a
scholarship organization to be applied against the general
tax on insurance premiums; and providing other matters
properly relating thereto.
Legislative Counsel’s Digest:
Existing law requires financial inst itutions, mining businesses and other 1
employers to pay an excise tax (the modified business tax) on wages paid by them. 2
(NRS 363A.130, 363B.110) Existing law also requires certain insurers to pay a tax 3
of 3.5 percent upon net direct premiums and net direct considerations written by 4
those insurers (the insurance premium tax). (NRS 680B.027) Existing law 5
establishes a credit against the modified business tax for a taxpayer who makes a 6
donation to a scholarship organization that provides grants on behalf of pu pils who 7
are members of a household with a household income of not more than 300 percent 8
of the federally designated level signifying poverty to allow those pupils to attend 9
schools in this State, including private schools, chosen by the parents or legal 10
guardians of those pupils (the Nevada Educational Choice Scholarship Program). 11
(NRS 363A.139, 363B.119, 388D.270) Existing law authorizes the Department of 12
Taxation to approve applications for such tax credits until the total amount of 13
credits authorized for each fiscal year is $6,655,000. (NRS 363A.139, 363B.119) 14

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Sections 3 and 4 of this bill increase the amount of tax credits that the 15
Department of Taxation is authorized to approve for donations made to a 16
scholarship organization through the Nevada Educational Choice Scholarship 17
Program from $6,655,000 for each fiscal year to: (1 ) for Fiscal Year 2025 -2026, 18
$30,000,000; and (2) for each succeeding fiscal year, 110 percent of the amount 19
authorized for the immediately preceding fiscal year. Sections 7 and 8 of this bill 20
establish a credit against the insurance premium tax for an insurer who makes a 21
donation to a scholarship organization t hrough the Nevada Educational Choice 22
Scholarship Program to be administered in the same manner as the credit against 23
the modified business tax. Section 1 of this bill makes a conforming change to 24
indicate that this credit is part of the Nevada Educational Choice Scholarship 25
Program. Section 9 of this bill makes a conforming change to make certain 26
provisions governing the insurance premium tax applicable to this credit. Sections 27
5, 10 and 11 of this bill make conforming changes to make this credit applicable to 28
certain entities who are subject to the insurance premium tax. 29
Section 2 of this bill expands the existing criteria of pupils on whose behalf 30
scholarship organizations must provide grants to include pupils: (1) on whose 31
behalf a grant was awarded for the immediately precedi ng school year; (2) who are 32
the sibling of a pupil on whose behalf a grant was awarded for the current or 33
immediately preceding school year; (3) who have an individualized education 34
program; (4) who have a parent or legal guardian who is on active duty in the 35
Armed Forces of the United States; and (5) who have a parent or legal guardian 36
who is a peace officer or firefighter. Section 2 also modifies the existin g 37
requirement that scholarship organizations provide grants on behalf of pupils who 38
are members of a household that has a household income within a certain 39
percentage of the federally designated level signifying poverty by increasing that 40
percentage from 3 00 percent of the federally designated level to 400 percent. 41
Section 2 further establishes the order of priority in which a scholarship 42
organization is requ ired to award grants and requires that each grant made by a 43
scholarship organization be not less than $1,000. 44

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

Section 1. NRS 388D.250 is hereby amended to read as 1
follows: 2
388D.250 NRS 363A.139, 363B.119 and 388D.250 to 3
388D.280, inclusive, and sections 7 and 8 of this act may be cited 4
as the Nevada Educational Choice Scholarship Program. 5
Sec. 2. NRS 388D.270 is hereby amended to read as follows: 6
388D.270 1. A scholarship organization must: 7
(a) Be exempt from taxation pursuant to section 501(c)(3) of the 8
Internal Revenue Code, 26 U.S.C. § 501(c)(3). 9
(b) Not own or operate any school in this State, including, 10
without limitation, a private school, which receives any grant money 11
pursuant to the Nevada Educational Choice Scholarship Program. 12
(c) Accept donations from taxpayers and other persons and may 13
also solicit and accept gifts and grants. 14

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(d) Not expend more than 5 percent of the total amount of 1
money accepted pursuant to paragraph (c) to pay its administrative 2
expenses. 3
(e) Provide grants , which must not be less than $1,000 per 4
pupil, on behalf of pupils [who are members of a household that has 5
a household income which is not more than 300 percent of the 6
federally designated level signifying poverty ] in the order of 7
priority set forth in subsection 7 to allow those pup ils to attend 8
schools in this State chosen by the parents or legal guardians of 9
those pupils, including, without limitation, private schools. The total 10
amount of a grant provided by the scholarship organization on 11
behalf of a pupil pursuant to this paragra ph must not exceed $7,755 12
for Fiscal Year 2015-2016. 13
(f) Not limit to a single school the schools for which it provides 14
grants. 15
(g) Except as otherwise provided in paragraph (e), not limit to 16
specific pupils the grants provided pursuant to that paragraph. 17
2. The maximum amount of a grant provided by the 18
scholarship organization pursuant to paragraph (e) of subsection 1 19
must be adjusted on July 1 of each year for the fiscal year beginning 20
that day and ending June 30 in a rounded dollar amount 21
corresponding to the percentage of increase in the Consumer Price 22
Index (All Items) published by the United States Department of 23
Labor for the preceding calendar year. On May 1 of each year, the 24
Department of Education shall determine the amount of increase 25
required by this subsection, establish the adjusted amounts to take 26
effect on July 1 of that year and notify each scholarship organization 27
of the adjusted amounts. The Department of Education shall also 28
post the adjusted amounts on its Internet website. 29
3. A grant provided on behalf of a pupil pursuant to subsection 30
1 must be paid directly to the school chosen by the parent or legal 31
guardian of the pupil. 32
4. A scholarship organization shall provide each taxpayer and 33
other person who makes a donation, gift or gr ant of money to the 34
scholarship organization pursuant to paragraph (c) of subsection 1 35
with an affidavit, signed under penalty of perjury, which includes, 36
without limitation: 37
(a) A statement that the scholarship organization satisfies the 38
requirements set forth in subsection 1; and 39
(b) The total amount of the donation, gift or grant made to the 40
scholarship organization. 41
5. Each school in which a pupil is enrolled for whom a grant is 42
provided by a scholarship organization shall maintain a record of the 43
academic progress of the pupil. The record must be maintained in 44
such a manner that the information may be aggregated and reported 45

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for all such pupils if reporting is required by the regulations of the 1
Department of Education. 2
6. The Department of Education: 3
(a) Shall adopt regulations prescribing the contents of and 4
procedures for applications for grants provided pursuant to 5
subsection 1. 6
(b) May adopt such other regulations as the Department 7
determines necessary to carry out the provisions of this section. 8
7. A scholarship organization shall award grants on behalf of 9
pupils in the following order of priority: 10
(a) Pupils on whose behalf a grant was awarded for the 11
immediately preceding school year. 12
(b) Pupils who are the sibling of a pupil on whose b ehalf a 13
grant was awarded for the current school year or the immediately 14
preceding school year. 15
(c) Pupils who are members of a household that has a 16
household income which is not more than 400 percent of the 17
federally designated level signifying poverty. 18
(d) Pupils who meet one of the following criteria, in the order 19
in which a completed application for a grant was received on 20
behalf of any such pupil: 21
(1) A pupil who has an individualized education program; 22
(2) A pupil who has a parent or legal guard ian who is on 23
active duty in the Armed Forces of the United States; 24
(3) A pupil who has a parent or legal guardian who is a 25
peace officer; or 26
(4) A pupil who has a parent or legal guardian who is a 27
firefighter. 28
8. Notwithstanding the provisions of su bsection 7, a 29
scholarship organization shall prioritize the award of a grant to a 30
pupil described in subsection 7 and on whose behalf a completed 31
application for a grant was received on or before the deadline for 32
such applications over any pupil on whose b ehalf a completed 33
application was not received until after the deadline for such 34
applications. 35
9. As used in this section [, “private] : 36
(a) “Active duty” means full -time duty status in the active 37
uniformed armed service of the United States, including, without 38
limitation, members of the National Guard and Reserve on active 39
duty orders pursuant to 10 U.S.C. §§ 12301 -12304b and 10 U.S.C. 40
§ 12402. 41
(b) “Firefighter” means a person who is a salaried employee 42
of a fire-fighting agency and whose principal duties are to control, 43
extinguish, prevent and suppress fires. As used in this paragraph, 44
“fire-fighting agency” means a public fire department, fire 45

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protection district or other agency of this State or political 1
subdivision of this State, the primary functio ns of which are to 2
control, extinguish, prevent and suppress fires. 3
(c) “Individualized education program” has the meaning 4
ascribed to it in 20 U.S.C. § 1414(d)(1)(A). 5
(d) “Peace officer” has the meaning ascribed to it in 6
NRS 289.010. 7
(e) “Private school” has the meaning ascribed to it in 8
NRS 394.103. 9
Sec. 3. NRS 363A.139 is hereby amended to read as follows: 10
363A.139 1. Any taxpayer who is required to pay a tax 11
pursuant to NRS 363A.130 may receive a credit against the tax 12
otherwise due for any donation of money made by the taxpayer to a 13
scholarship organization in the manner provided by this section. 14
2. To receive the credit authorized by subsection 1, a taxpayer 15
who intends to make a donation of money to a scholarship 16
organization must, before making such a donation, notify the 17
scholarship organization of the taxpayer’s intent to make the 18
donation and to seek the credit authorized by subsection 1. A 19
scholarship organization shall, before accepting any such donation, 20
apply to the Department of Taxation for approval of the credit 21
authorized by subsection 1 for the donation. The Department of 22
Taxation shall, within 20 days after receiving the application, 23
approve or deny the application and provide to the scho larship 24
organization notice of the decision and, if the application is 25
approved, the amount of the credit authorized. Upon receipt of 26
notice that the application has been approved, the scholarship 27
organization shall provide notice of the approval to the ta xpayer 28
who must, not later than 30 days after receiving the notice, make the 29
donation of money to the scholarship organization. If the taxpayer 30
does not make the donation of money to the scholarship 31
organization within 30 days after receiving the notice, t he 32
scholarship organization shall provide notice of the failure to the 33
Department of Taxation and the taxpayer forfeits any claim to 34
the credit authorized by subsection 1. 35
3. The Department of Taxation shall approve or deny 36
applications for the credit a uthorized by subsection 1 in the order in 37
which the applications are received. 38
4. Except as otherwise provided in subsection 5, the 39
Department of Taxation may, for each fiscal year, approve 40
applications for the credit authorized by subsection 1 until the total 41
amount of the credits authorized by subsection 1 and approved by 42
the Department of Taxation pursuant to this subsection , [and] 43
subsection 4 of NRS 363B.119 and subsection 4 of section 7 of this 44
act is [$6,655,000.] : 45

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(a) For Fiscal Year 2025-2026, $30,000,000; and 1
(b) For each succeeding fiscal year, an amount equal to 110 2
percent of the amount authorized for the immediately preceding 3
fiscal year. 4
 The amount of any credit which is forfeited pursuant to 5
subsection 2 must not be considered in calculating the amount of 6
credits authorized for any fiscal year. 7
5. Except as otherwise provided in this subsection, in addition 8
to the amount of credits auth orized by subsection 4 for Fiscal Years 9
2019-2020, 2020-2021 and 2021 -2022, the Department of Taxation 10
may approve applications for the credit authorized by subsection 1 11
for each of those fiscal years until the total amount of the credits 12
authorized by sub section 1 and approved by the Department of 13
Taxation pursuant to this subsection and subsection 5 of NRS 14
363B.119 is $4,745,000. The provisions of subsection 4 do not 15
apply to the amount of credits authorized by this subsection and the 16
amount of credits au thorized by this subsection must not be 17
considered when determining the amount of credits authorized for a 18
fiscal year pursuant to subsection 4. If, in Fiscal Year 2019 -2020, 19
2020-2021 or 2021 -2022, the amount of credits authorized by 20
subsection 1 and appr oved pursuant to this subsection and 21
subsection 5 of NRS 363B.119 is less than $4,745,000, the 22
remaining amount of credits pursuant to this subsection and 23
subsection 5 of NRS 363B.119 must be carried forward and made 24
available for approval during subsequen t fiscal years until the total 25
amount of credits authorized by subsection 1 and approved pursuant 26
to this subsection and subsection 5 of NRS 363B.119 is equal to 27
$14,235,000. The amount of any credit which is forfeited pursuant 28
to subsection 2 must not be considered in calculating the amount of 29
credits authorized pursuant to this subsection. 30
6. If a taxpayer applies to and is approved by the Department 31
of Taxation for the credit authorized by subsection 1, the amount of 32
the credit provided by this section is equal to the amount approved 33
by the Department of Taxation pursuant to subsection 2, which must 34
not exceed the amount of the donation made by the taxpayer to a 35
scholarship organization. The total amount of the credit applied 36
against the taxes described in subsection 1 and otherwise due from a 37
taxpayer must not exceed the amount of the donation. 38
7. If the amount of the tax described in subsection 1 and 39
otherwise due from a taxpayer is less than the credit to which the 40
taxpayer is entitled pursuant to t his section, the taxpayer may, after 41
applying the credit to the extent of the tax otherwise due, carry the 42
balance of the credit forward for not more than 5 years after the end 43
of the calendar year in which the donation is made or until the 44
balance of the credit is applied, whichever is earlier. 45

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8. As used in this section, “scholarship organization” has the 1
meaning ascribed to it in NRS 388D.260. 2
Sec. 4. NRS 363B.119 is hereby amended to read as follows: 3
363B.119 1. Any taxpayer who is required to pay a tax 4
pursuant to NRS 363B.110 may receive a credit against the tax 5
otherwise due for any donation of money made by the taxpayer to a 6
scholarship organization in the manner provided by this section. 7
2. To receive the cred it authorized by subsection 1, a taxpayer 8
who intends to make a donation of money to a scholarship 9
organization must, before making such a donation, notify the 10
scholarship organization of the taxpayer’s intent to make the 11
donation and to seek the credit au thorized by subsection 1. A 12
scholarship organization shall, before accepting any such donation, 13
apply to the Department of Taxation for approval of the credit 14
authorized by subsection 1 for the donation. The Department of 15
Taxation shall, within 20 days aft er receiving the application, 16
approve or deny the application and provide to the scholarship 17
organization notice of the decision and, if the application is 18
approved, the amount of the credit authorized. Upon receipt of 19
notice that the application has been approved, the scholarship 20
organization shall provide notice of the approval to the taxpayer 21
who must, not later than 30 days after receiving the notice, make the 22
donation of money to the scholarship organization. If the taxpayer 23
does not make the donation of money to the scholarship 24
organization within 30 days after receiving the notice, the 25
scholarship organization shall provide notice of the failure to the 26
Department of Taxation and the taxpayer forfeits any claim to 27
the credit authorized by subsection 1. 28
3. The Department of Taxation shall approve or deny 29
applications for the credit authorized by subsection 1 in the order in 30
which the applications are received. 31
4. Except as otherwise provided in subsection 5, the 32
Department of Taxation may, for each fiscal year, approve 33
applications for the credit authorized by subsection 1 until the total 34
amount of the credits authorized by subsection 1 and approved by 35
the Department of Taxation pursuant to this subsection , [and] 36
subsection 4 of NRS 363A.139 and subsection 4 of section 7 of this 37
act is [$6,655,000.] : 38
(a) For Fiscal Year 2025-2026, $30,000,000; and 39
(b) For each succeeding fiscal year, an amount equal to 110 40
percent of the amount authorized for the immediately preceding 41
fiscal year. 42
 The amount of any credit which is forfeited pursuant to 43
subsection 2 must not be considered in calculating the amount of 44
credits authorized for any fiscal year. 45

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5. In addition to the amount of credits authorized by subsection 1
4 for Fiscal Years 2019 -2020, 2020 -2021 and 2021 -2022, the 2
Department of Taxation may approve applications for the credit 3
authorized by subsection 1 for each of those fiscal years until the 4
total amount of the credits authorized by subsection 1 and approved 5
by the Department of Taxation pursuant to this subsection and 6
subsection 5 of NRS 363A.139 is $4,745,000. The provisions 7
of subsection 4 do not apply to the amount of credits authorized by 8
this s ubsection and the amount of credits authorized by this 9
subsection must not be considered when determining the amount of 10
credits authorized for a fiscal year pursuant to subsection 4. If, in 11
Fiscal Year 2019 -2020, 2020 -2021 or 2021 -2022, the amount of 12
credits authorized by subsection 1 and approved pursuant to this 13
subsection and subsection 5 of NRS 363A.139 is less than 14
$4,745,000, the remaining amount of credits pursuant to this 15
subsection and subsection 5 of NRS 363A.139 must be carried 16
forward and made a vailable for approval during subsequent fiscal 17
years until the total amount of credits authorized by subsection 1 18
and approved pursuant to this subsection and subsection 5 of NRS 19
363A.139 is equal to $14,235,000. The amount of any credit which 20
is forfeited pursuant to subsection 2 must not be considered in 21
calculating the amount of credits authorized pursuant to this 22
subsection. 23
6. If a taxpayer applies to and is approved by the Department 24
of Taxation for the credit authorized by subsection 1, the amount of 25
the credit provided by this section is equal to the amount approved 26
by the Department of Taxation pursuant to subsection 2, which must 27
not exceed the amount of the donation made by the taxpayer to a 28
scholarship organization. The total amount of the cred it applied 29
against the taxes described in subsection 1 and otherwise due from a 30
taxpayer must not exceed the amount of the donation. 31
7. If the amount of the tax described in subsection 1 and 32
otherwise due from a taxpayer is less than the credit to which the 33
taxpayer is entitled pursuant to this section, the taxpayer may, after 34
applying the credit to the extent of the tax otherwise due, carry the 35
balance of the credit forward for not more than 5 years after the end 36
of the calendar year in which the donatio n is made or until the 37
balance of the credit is applied, whichever is earlier. 38
8. As used in this section, “scholarship organization” has the 39
meaning ascribed to it in NRS 388D.260. 40
Sec. 5. NRS 679A.160 is hereby amended to read as follows: 41
679A.160 Except as otherwise provided by specific statute, no 42
provision of this Code applies to: 43
1. Fraternal benefit societies, as identified in chapter 695A of 44
NRS, except as stated in chapter 695A of NRS. 45

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2. Hospital, medical o r dental service corporations, as 1
identified in chapter 695B of NRS, except as stated in chapter 695B 2
of NRS. 3
3. Motor clubs, as identified in chapter 696A of NRS, except as 4
stated in chapter 696A of NRS. 5
4. Bail agents, as identified in chapter 697 of NRS, except as 6
stated in NRS 680B.025 to 680B.039, inclusive, and sections 7 and 7
8 of this act and chapter 697 of NRS. 8
5. Risk retention groups, as identified in chapter 695E o f NRS, 9
except as stated in chapter 695E of NRS. 10
6. Captive insurers, as identified in chapter 694C of NRS, with 11
respect to their activities as captive insurers, except as stated in 12
chapter 694C of NRS. 13
7. Health and welfare plans arising out of collect ive bargaining 14
under chapter 288 of NRS, except that the Commissioner may 15
review the plan to ensure that the benefits are reasonable in relation 16
to the premiums and that the fund is financially sound. 17
8. Programs established pursuant to subsection 1 of N RS 18
315.725 and the entities administering those programs, except as 19
stated in NRS 315.725. 20
Sec. 6. Chapter 680B of NRS is hereby amended by adding 21
thereto the provisions set forth as sections 7 and 8 of this act. 22
Sec. 7. 1. Any taxpayer who is required to pay a tax 23
pursuant to NRS 680B.027 may receive a credit against the tax 24
otherwise due for any donation of money made by the taxpayer to 25
a scholarship organization in the manner provided by this section. 26
2. To receive the credit authorized by subsection 1, a taxpayer 27
who intends to make a donation of money to a scholarship 28
organization must, before making such a donation, notify the 29
scholarship organization of the taxpayer’s intent to make the 30
donation and to se ek the credit authorized by subsection 1. A 31
scholarship organization shall, before accepting any such 32
donation, apply to the Department of Taxation for approval of the 33
credit authorized by subsection 1 for the donation. The 34
Department of Taxation shall, wi thin 20 days after receiving 35
the application, approve or deny the application and provide the 36
scholarship organization notice of the decision and, if the 37
application is approved, the amount of the credit authorized. Upon 38
receipt of notice that the applica tion has been approved, the 39
scholarship organization shall provide notice of the approval to 40
the taxpayer who must, not later than 30 days after receiving the 41
notice, make the donation of money to the scholarship 42
organization. If the taxpayer does not make the donation of money 43
to the scholarship organization within 30 days after receiving the 44
notice, the scholarship organization shall provide notice of the 45

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failure to the Department of Taxation and the taxpayer forfeits 1
any claim to the credit authorized by subsection 1. 2
3. The Department of Taxation shall approve or deny 3
applications for the credit authorized by subsection 1 in the order 4
in which the applications are received. 5
4. The Department of Taxation may, for each fiscal year, 6
approve applications for the credit authorized by subsection 1 until 7
the amount of the credits authorized by subsection 1 and approved 8
by the Department of Taxation pursuant to this subsection, 9
subsection 4 of NRS 363A.139 and subsection 4 of NRS 363B.119 10
is: 11
(a) For Fiscal Year 2025-2026, $30,000,000; and 12
(b) For each succeeding fiscal year, an amount equal to 110 13
percent of the amount authorized for the immediately preceding 14
fiscal year. 15
 The amount of any credit which is forfeited pursuant to 16
subsection 2 must not be con sidered in calculating the amount of 17
credits authorized for any fiscal year. 18
5. If a taxpayer applies to and is approved by the Department 19
of Taxation for the credit authorized by subsection 1, the amount 20
of the credit provided by this section is equal t o the amount 21
approved by the Department of Taxation pursuant to subsection 2, 22
which must not exceed the amount of the donation made by the 23
taxpayer to the scholarship organization. The total amount of the 24
credit applied against the taxes described in subse ction 1 and 25
otherwise due from a taxpayer must not exceed the amount of the 26
donation. 27
6. If the amount of the tax described in subsection 1 and 28
otherwise due from a taxpayer is less than the credit to which the 29
taxpayer is entitled pursuant to this secti on, the taxpayer may, 30
after applying the credit to the extent of the tax otherwise due, 31
carry the balance of the credit forward for not more than 5 years 32
after the end of the calendar year in which the donation is made 33
or until the balance of the credit is applied, whichever is earlier. 34
7. As used in this section: 35
(a) “Scholarship organization” has the meaning ascribed to it 36
in NRS 388D.260. 37
(b) “Taxpayer” means any person liable for a tax imposed by 38
NRS 680B.027. 39
Sec. 8. 1. An insurer who makes a donation of money to a 40
scholarship organization during the calendar quarter for which a 41
report is filed pursuant to NRS 680B.032 or during a calendar 42
year in which a report is filed pursuant to NRS 680B.030 is 43
entitled, in accordance with section 7 of this act, to a credit equal 44

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to the amount authorized pursuant to section 7 of this act against 1
any tax otherwise due pursuant to NRS 680B.027. 2
2. As used in this section, “scholarship organization” has the 3
meaning ascribed to it in NRS 388D.260. 4
Sec. 9. NRS 680B.025 is hereby amended to read as follows: 5
680B.025 For the purposes of NRS 680B.025 to 680B.039, 6
inclusive [:] , and sections 7 and 8 of this act: 7
1. “Total income derived from direct premiums written”: 8
(a) Does not include premiums written or considerations 9
received from life insurance policies or annuity contracts issued in 10
connection with the funding of a pension, annuity or profit -sharing 11
plan qualified or exempt pursuant to sections 401, 403, 404, 408, 12
457 or 501 of the United States Internal Revenue Code as 13
renumbered from time to time. 14
(b) Does not include payments received by an insurer from the 15
Secretary of Health and Human Services pursuant to a contract 16
entered into pursuant to section 1876 of the Social Security Act, 42 17
U.S.C. § 1395mm. 18
(c) As to title insurance, consists of the total amount charged by 19
the company for the sale of policies of title insurance. 20
2. Money accepted by a life insurer pursuant to an agreement 21
which provides for an accumulation of money to purchase annuities 22
at future dates may be considered as “total income derived from 23
direct premiums written” either upon receipt or upon the actual 24
application of the money to the purchase of annuities, but any 25
interest credited to money accumulated while under the latter 26
alternative must also be included in “total income derived from 27
direct premiums wri tten,” and any money taxed upon receipt, 28
including any interest later credited thereto, is not subject to taxation 29
upon the purchase of annuities. Each life insurer shall signify on its 30
return covering premiums for the calendar year 1971 or for the first 31
calendar year it transacts business in this State, whichever is later, 32
its election between those two alternatives. Thereafter an insurer 33
shall not change his or her election without the consent of the 34
Commissioner. Any such money taxed as “total income der ived 35
from direct premiums written” is, in the event of withdrawal of the 36
money before its actual application to the purchase of annuities, 37
eligible to be included as “return premiums” pursuant to the 38
provisions of NRS 680B.030. 39
Sec. 10. NRS 695B.320 is hereby amended to read as follows: 40
695B.320 1. Nonprofit hospital and medical or dental service 41
corporations are subject to the provisions of this chapter, and to the 42
provisions of chapters 679A and 679B of NRS, subsections 2, 4, 17, 43
18 and 30 of NRS 680B.010, NRS 680B.025 to 680B.060, 44
inclusive, and sections 7 and 8 of this act, chapter 681B of NRS, 45

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NRS 686A.010 to 686A.315, inclusive, 686B.010 to 686B.175, 1
inclusive, 687B.010 to 687B.040, inclusive, 687B.070 to 687B.140, 2
inclusive, 687B.150, 687B.160, 687B.180, 687B.200 to 3
687B.255, inclusive, 687B.270, 687B.310 to 687B.380, inclusive, 4
687B.410, 687B.420, 687B.430, 687B.500 and chapters 692B, 5
692C, 693A and 696B of NRS, to the extent applicable and not in 6
conflict with the express provisions of this chapter. 7
2. For the purpose s of this section and the provisions set forth 8
in subsection 1, a nonprofit hospital and medical or dental service 9
corporation is included in the meaning of the term “insurer.” 10
Sec. 11. NRS 695F.090 is hereby amended to read as follows: 11
695F.090 1. Prepaid limited health service organizations are 12
subject to the provisions of this chapter and to the following 13
provisions, to the extent reasonably applicable: 14
(a) NRS 686B.010 to 686B.175, inclusive, concerning rates and 15
essential insurance. 16
(b) NRS 687B.310 to 687B.420, inclusive, concerning 17
cancellation and nonrenewal of policies. 18
(c) NRS 687B.122 to 687B.128, inclusive, concerning 19
readability of policies. 20
(d) The requirements of NRS 679B.152. 21
(e) The fees imposed pursuant to NRS 449.465. 22
(f) NRS 686A.010 to 686A.310, inclusive, concerning trade 23
practices and frauds. 24
(g) The assessment imposed pursuant to NRS 679B.700. 25
(h) Chapter 683A of NRS. 26
(i) To the extent applicable, the provisions of NRS 689B.340 to 27
689B.580, inclusive, and chapter 689C of NRS relating to the 28
portability and availability of health insurance. 29
(j) NRS 689A.035, 689A.0463, 689A.410, 689A.413 and 30
689A.415. 31
(k) NRS 680B.025 to 680B.060, inclusive, and sections 7 and 8 32
of this act concerning premium tax, premium tax rate, annual report 33
and estimated q uarterly tax payments. For the purposes of this 34
paragraph, unless the context otherwise requires that a section apply 35
only to insurers, any reference in those sections to “insurer” must be 36
replaced by a reference to “prepaid limited health service 37
organization.” 38
(l) Chapter 692C of NRS, concerning holding companies. 39
(m) NRS 689A.637, concerning health centers. 40
(n) Chapter 681B of NRS, concerning assets and liabilities. 41
(o) NRS 682A.400 to 682A.468, inclusive, concerning 42
investments. 43

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- *AB214*
2. For the purposes of this section and the provisions set forth 1
in subsection 1, a prepaid limited health service organization is 2
included in the meaning of the term “insurer.” 3
Sec. 12. 1. This section becomes effective upon passage and 4
approval. 5
2. Sections 1 to 11, inclusive, of this act become effective: 6
(a) Upon passage and approval for the purpose of adopting any 7
regulations and performing any other preparatory administrative 8
tasks that are necessary to carry out the provisions of this act; and 9
(b) On July 1, 2025, for all other purposes. 10

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