AB 208 — 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.

EffectEffEffect on Localthe Government:State:

MayYes.May have Fiscal Impact.

Effect on the State:

Yes.

restricting the manner in which acertain governmental entityentities or agovernment- government-fundedfunded entityentities may use certain products;

This bill prohibits, with certain exceptions, a governmental entity or a government-funded entity that operates, administers or contracts with a mental health facility or place of confinement from using a product that is or has ever been protected by a patent granted by the United States Patent and Trademark Office or is subjectterms toof reviewuse of that product established by certainthe federalcurrent agenciesor inmost arecent manner:holder of thehe patent for the product or the manufacturer or distributor of the product;

(1) that is contrary to the terms of use of that product established by the current or most recent holder of the patent for the product or the manufacturer or distributor of the product;

or (3) approvedthat exceeds the productscope forof specificthe uses.usageapproved usage of the product, if a federal agency has However,approved thisthe bill authorizes a governmental entity or government-funded entity to use a product infor suchspecific auses. manner if the governmental entity or government-funded entity, as applicable, transmits a written notice of the intended use to the patent holder and the manufacturer or distributor of the product, if different from the patent holder, that:

This bill also prohibits such a governmental entity or government-funded entity from providing or dispensing such a product for use in such a manner.

product in such a manner if the covered entity transmits a written notice of the intended use to the patent holder and the manufacturer or distributor of the product, if different from the patent holder, that:

and (2) describes the specific manner the manufacturer or distributor of a product to object to the use of the product in suchwhich a manner by transmitting a written notice of the objectionentity plans to theuse, governmentalprovide entity or government-fundeddispense entity.the product.

OnceThis bill authorizes the governmentalpatent entityholder or government-fundedthe entitymanufacturer receivesor distributor of a product to object to the use, provision or dispensing of the product in such a manner by transmitting a written notice of the objection fromto the patentcovered holder, manufacturer or distributor, this bill requires the governmentalcovered entity or government-funded entity, as applicable, to cease and desist from usingusing, providing or dispensing the product in the manner to which the - *AB208_R1* – 2 – patent holder, manufacturer or distributor objects.

-This *AB208*bill –further 2authorizes –a THEcovered PEOPLEentity OFto THEprovide STATEor OFdispense NEVADA,a REPRESENTEDpatented INor SENATEreviewed ANDproduct ASSEMBLY,to DOa ENACTresident ASmanner FOLLOWS:without providing notice to the patent holder, manufacturer and distributor of the product if the resident to whom the product is provided or dispensed provides informed consent with respect to the use and receipt of the product.

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

Except as authorized by this section, a governmentalcovered entity orshall not use a government-fundedfederally entityreviewed shallproduct notor useprovide or dispense a federally reviewed product,product to a resident for use, regardless of how the product was obtained, in a manner that:

Except as otherwise provided by subsection 5, a governmentalcovered entity ormay ause, government-fundedprovide entityor maydispense use a federally reviewed product in a manner described in subsection 1 if:

(a) The governmentalcovered entity or government-funded entity transmits a written notice to the patent holder and the manufacturer and distributor of the federally reviewed product, if different from the patent holder, that:

(1) Sufficiently identifies the federally reviewed product use;that the covered entity seeks to use, provide or dispense;

and governmental entity or government-funded entity seeks to (2) Describes the specific manner in or purposes for which the governmentalcovered entity orplans government-fundedto entityuse, plansprovide toor usedispense the federally reviewed product;

and (b) At least 30 days have elapsed after the transmission of the notice described in paragraph (a) without the patent holder, manufacturer or distributor of the federally reviewed product transmitting an objection to the governmentalcovered entity or government-funded entity, as applicable, pursuant to subsection 3.

- *AB208_R1* – 3 – 3.

If a patent holder or a manufacturer or distributor of a federally reviewed product has reason to believe that a governmentalcovered entity oris ausing, government-fundedproviding entityor isdispensing using, or plans to use, provide or dispense a federally reviewed product in a manner described - *AB208* – 3 – in subsection 1, based on a notice received pursuant to subsection 2 or for any other reason, the patent holder, manufacturer or distributor may object to such use by transmitting a written notice to the governmentalcovered entity or government-funded entity that:

(b) Specifically describes the manner of use of the federally reviewed product to which the patent holder, manufacturer or distributor, as applicable, objects;

(c) Explains the reasons that the patent holder, manufacturer or distributor believes such manner of use of the federally reviewed product violates subsection 1;

and (d) Requests that the governmentalcovered entity or government- funded entity, as applicable, cease and desist from usingusing, providing or dispensing the federally reviewed product in the manner described in paragraph (b).

A patent holder or a manufacturer or distributor of a federally reviewed product may withdraw an objection made pursuant to subsection 3 by transmitting a written notice to the governmentalcovered entity or government-funded entity to which the patent holder, manufacturer or distributor, as applicable, transmitted the objection pursuant to subsection 3.

and (b) The manner of use of the federally reviewed product described in paragraph (b) of subsection 3 to which the patent holder, manufacturer or distributor, as applicable, no longer objects.

Except as otherwise provided in this subsection,subsection and subsection 6, upon receiving a written notice described in subsection 3 from a patent holder or the manufacturer or distributor of a federally reviewed product, a governmentalcovered entity or government-funded entity shall immediately cease and desist from usingusing, providing or dispensing the federally reviewed product in the manner described in the notice pursuant to paragraph (b) of subsection 3.

A governmentalcovered entity ormay government-fundeduse, entityprovide mayor usedispense the federally reviewed product in such a manner if the governmentalcovered entity or government- funded entity, as applicable, subsequently receives a written notice withdrawing any objection for that particular manner of use pursuant to subsection 4 from all patent holders, manufacturers and distributors that have objected to that particular manner of use pursuant to subsection 3.

A covered entity may provide or dispense a federally reviewed product to a resident to be used in a manner described in subsection 1 if the resident to whom the product is provided or - *AB208_R1* – 4 – dispensed provides informed consent to the covered entity with respect to the particular use and receipt of the product.

A covered entity is not required to provide the notice required pursuant to subsection 2 to the patent holder, manufacturer and distributor of a federally reviewed product that is provided or dispensed in a manner consistent with the provisions of this subsection.

7.

The provisions of this section shall not be construed to require a covered entity to perform any action or use, provide or dispense a federally reviewed product in a manner that is in violation of any condition to the receipt of federal money.

8.

(a) “Federally“Covered reviewedentity” product”means: means any product or invention that:

(1) A governmental entity that operates or administers a covered facility;

and (2) A government-funded entity that:

(I) Maintains a contract with a governmental entity to provide services in or assist in the operations of a covered facility;

or (II) Operates or administers a covered facility.