Amendment No. 884

Assembly Amendment to Senate Bill No. 495 First Reprint (BDR 53-1382)

Proposed by: Committee on Commerce and Labor

Amendment Box: Replaces Amendment No. 792. Resolves conflict with S.B. No. 44, S.B. No. 92 and S.B. No. 175.

Resolves Conflicts with: SB44, SB92, SB175

Amends: Summary: Title: Preamble: Joint Sponsorship:

ASSEMBLY ACTION Initial and Date | SENATE ACTION Initial and Date

Adopted Lost | Adopted Lost

Concurred In Not | Concurred In Not

Receded Not | Receded Not

Amend sec. 13, page 8, by deleting lines 1 through 42 and inserting:

"(b) Have had a reported payroll for the previous 12 months which would have resulted in a manual premium of at least $15,000, calculated in accordance with a manual prepared pursuant to subsection 4 of NRS 686B.1765.

4. An employer who seeks to become a member of the association after the 12 months immediately following the formation of the association must meet the requirement set forth in paragraph (a) or (b) of subsection 3 unless the commissioner adjusts the requirement for membership in the association after conducting an annual review of the actuarial solvency of the association pursuant to subsection 1 of NRS 616B.353.

5. An association of self-insured private employers may apply to the commissioner for authority to determine the amount of tangible net worth and manual premium that an employer must have to become a member of the association. The commissioner shall approve the application if the association:

(a) Has been certified to act as an association for at least the 3 consecutive years immediately preceding the date on which the association filed the application with the commissioner;

(b) Has a combined tangible net worth of all members in the association of at least $5,000,000;

(c) Has at least 15 members; and

(d) Has not been required to meet informally with the commissioner pursuant to subsection 1 of NRS 616B.431 during the 18-month period immediately preceding the date on which the association filed the application with the commissioner or, if the association has been required to attend such a meeting during that period, has not had its certificate withdrawn before the date on which the association filed the application.

6. An association of self-insured private employers may apply to the commissioner for authority to determine the documentation demonstrating solvency that an employer must provide to become a member of the association. The commissioner shall approve the application if the association:

(a) Has been certified to act as an association for at least the 3 consecutive years immediately preceding the date on which the association filed the application with the commissioner;

(b) Has a combined tangible net worth of all members in the association of at least $5,000,000; and

(c) Has at least 15 members.

7. The commissioner may withdraw his approval of an application submitted pursuant to subsection 5 or 6 if he determines the association has ceased to comply with any of the requirements set forth in subsection 5 or 6, as applicable.

8. [Except as otherwise provided in NRS 616B.389, a] A member of an association may terminate his membership at any time. To terminate his membership, a member must submit to the association’s administrator a notice of intent to withdraw from the association at least 120 days before the effective date of withdrawal. The association’s administrator shall, within 10 days after receipt of the notice, notify the commissioner of the employer’s intent to withdraw from the association.

9. The members of an association may cancel the membership of any member of the association in accordance with the bylaws of the association.

10. The association shall:

(a) Within 30 days after the addition of an employer to the membership of the association, notify the commissioner of the addition and:

(1) If the association has not received authority from the commissioner pursuant to subsection 5 or 6, as applicable, provide to the commissioner all information and assurances for the new member that were required from each of the original members of the association upon its organization; or

(2) If the association has received authority from the commissioner pursuant to subsection 5 or 6, as applicable, provide to the commissioner evidence that is satisfactory to the commissioner that the new member is a member or associate member of the bona fide trade association as required pursuant to paragraph (a) of subsection 2 of NRS 616B.350, a copy of the indemnity agreement that jointly and severally binds the new member, the other members of the association and the association that is required to be executed pursuant to paragraph (a) of subsection 1 of NRS 616B.353 and any other information the commissioner may reasonably require to determine whether the amount of security deposited with the commissioner pursuant to paragraph (d) or (e) of subsection 1 of NRS 616B.353 is sufficient, but such information must not exceed the information required to be provided to the commissioner pursuant to subparagraph (1);

(b) Notify the commissioner and the administrator of the termination or cancellation of the membership of any member of the association within 10 days after the termination or cancellation; and

(c) At the expense of the member whose membership is terminated or canceled, maintain coverage for that member for 30 days after notice is given pursuant to paragraph (b), unless the association first receives notice from the administrator that the member has:

(1) Become insured by the system;

(2) Been certified as a self-insured employer pursuant to NRS 616B.312;

(3) Become a member of another association of self-insured public or private employers; or

(4) Become insured by a private carrier.

11. If a member of an association changes his name or form of organization, the member remains liable for any obligations incurred or any responsibilities imposed pursuant to chapters 616A to 617, inclusive, of NRS under his former name or form of organization.

12. An association is liable for the payment of any compensation required to be paid by a member of the association pursuant to chapters 616A to 616D, inclusive, or [chapter] 617 of NRS during his period of membership. The insolvency or bankruptcy of a member does not relieve the association of liability for the payment of the compensation.".

Amend the bill as a whole by renumbering sections 41 and 42 as sections 47 and 48 and adding new sections designated sections 41 through 46, following sec. 40, to read as follows:

"Sec. 41. Section 11 of Senate Bill No. 92 of this session is hereby amended to read as follows:

Sec. 11. NRS 616B.095 is hereby amended to read as follows:

616B.095 If the provisions of NRS 616B.224 concerning the state insurance fund, or the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS making the compensation to the workman provided in those chapters exclusive of any other remedy on the part of the workman, [shall be] are held invalid, each of those chapters [shall] must be thereby invalidated, except the provisions of NRS 616B.101, and an accounting according to the justice of the case [shall] must be had on [moneys] money received. In other respects an adjudication of invalidity of any part of this chapter or chapter 616A, 616C , [or] 616D or 617 of NRS [shall] must not affect the validity of any of those chapters as a whole or any part thereof.

Sec. 42. Section 15 of Senate Bill No. 92 of this session is hereby amended to read as follows:

Sec. 15. NRS 616B.224 is hereby amended to read as follows:

616B.224 1. Every private or public employer who is not a self-insured employer or a member of an association of self-insured public or private employers shall, at intervals and on or before dates established by his insurer, furnish the insurer with:

(a) A true and accurate payroll showing:

(1) The total amount paid to employees for services performed;

(2) The amount of tips reported to him by every employee pursuant to 26 U.S.C. § 6053(a) whose tips in cash totaled $20 or more; and

(3) A segregation of employment in accordance with the requirements of the commissioner; and

(b) Any premium due pursuant to the terms of the policy of industrial insurance.

The payroll reports and any premium may be furnished to the insurer on different dates, as established by the insurer.

2. Failure of any employer to comply with the provisions of this section operates as a rejection of chapters 616A to 616D, inclusive, and chapter 617 of NRS, effective on the date established by the insurer pursuant to subsection 1. The insurer shall notify the administrator of each such rejection.

3. The insurer shall notify any employer or his representative by first-class mail of any failure on his part to comply with the provisions of this section. The notice or its omission does not modify or waive the requirements or effective rejection of chapters 616A to 616D, inclusive, and chapter 617 of NRS as otherwise provided in those chapters.

4. The system may impose a penalty not to exceed 10 percent of the premiums which are due for the failure of an employer insured by the system to submit the information and premium required in subsection 1 within the time allowed, unless the employer has applied for and been granted an extension of that time by the manager.

5. To the extent permitted by federal law, the insurer shall vigorously pursue the collection of premiums that are due under the provisions of chapters 616A to 616D, inclusive, and chapter 617 of NRS even if an employer’s debts have been discharged in a bankruptcy proceeding.

6. Every employer insured by the system shall pay its premiums to the state insurance fund. All money received by the system pursuant to this section must be deposited with the state treasurer to the credit of the state insurance fund.

Sec. 43. Section 41 of Senate Bill No. 92 of this session is hereby amended to read as follows:

Sec. 41. NRS 616D.050 is hereby amended to read as follows:

616D.050 1. Appeals officers, the administrator and the administrator’s designee, in conducting hearings or other proceedings pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS or regulations adopted pursuant to those chapters may:

(a) Issue subpoenas requiring the attendance of any witness or the production of books, accounts, papers, records and documents.

(b) Administer oaths.

(c) Certify to official acts.

(d) Call and examine under oath any witness or party to a claim.

(e) Maintain order.

(f) Rule upon all questions arising during the course of a hearing or proceeding.

(g) Permit discovery by deposition or interrogatories.

(h) Initiate and hold conferences for the settlement or simplification of issues.

(i) Dispose of procedural requests or similar matters.

(j) Generally regulate and guide the course of a pending hearing or proceeding.

2. Hearing officers, in conducting hearings or other proceedings pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS or regulations adopted pursuant to those chapters, may:

(a) Issue subpoenas requiring the attendance of any witness or the production of books, accounts, papers, records and documents that are relevant to the dispute for which the hearing or other proceeding is being held.

(b) Maintain order.

(c) Permit discovery by deposition or interrogatories.

(d) Initiate and hold conferences for the settlement or simplification of issues.

(e) Dispose of procedural requests or similar matters.

(f) Generally regulate and guide the course of a pending hearing or proceeding.

Sec. 44. Section 43 of Senate Bill No. 92 of this session is hereby amended to read as follows:

Sec. 43. NRS 616D.080 is hereby amended to read as follows:

616D.080 1. Each officer who serves a subpoena is entitled to receive the same fees as a sheriff.

2. Each witness who appears, in obedience to a subpoena which has been issued pursuant to this chapter or chapter 616A, 616B , [or] 616C or 617 of NRS, before an appeals officer, a hearing officer, the administrator or the administrator’s designee, is entitled to receive for his attendance the fees and mileage provided for witnesses in civil cases in courts of record. For subpoenas issued on behalf of this state or an officer or agency thereof, the fees and mileage are not required to be tendered at the same time that the subpoena is delivered to the person named therein.

3. The appeals officer, hearing officer, administrator or the administrator’s designee shall:

(a) Authorize payment from his administrative budget of the fees and mileage due to such a witness; or

(b) Impose those costs upon the party at whose instance the witness was subpoenaed or, for good cause shown, upon any other party.

Sec. 45. Section 1 of Senate Bill No. 175 of this session is hereby amended to read as follows:

Section 1. NRS 616D.200 is hereby amended to read as follows:

616D.200 1. If the administrator finds that an employer within the provisions of NRS 616B.633 has failed to provide and secure compensation as required by the terms of chapters 616A to 616D, inclusive, or chapter 617 of NRS or that the employer has provided and secured that compensation but has failed to maintain it, he shall make a determination thereon and may charge the employer an amount equal to the sum of:

(a) The premiums that would otherwise have been owed to the system or a private carrier pursuant to the terms of chapters 616A to 616D, inclusive, or chapter 617 of NRS for the period that the employer was doing business in this state without providing, securing or maintaining that compensation, but not to exceed 6 years; and

(b) Interest at a rate determined pursuant to NRS 17.130 computed from the time that the premiums should have been paid.

The money collected pursuant to this subsection must be paid into the uninsured employers’ claim fund.

2. The administrator shall deliver a copy of his determination to the employer. An employer who is aggrieved by the determination of the administrator may appeal from the determination pursuant to subsection 2 of NRS 616D.220.

3. Any employer within the provisions of NRS 616B.633 who fails to provide, secure or maintain compensation as required by the terms of chapters 616A to 616D, inclusive, or chapter 617 of NRS, [is:

(a) For the first offense, guilty of a misdemeanor.

(b) For a second or subsequent offense committed within 7 years after the previous offense, guilty of a category C felony and shall be punished as provided in NRS 193.130.] shall be punished as follows:

(a) Except as otherwise provided in paragraph (b), if it is a first offense, for a misdemeanor.

(b) If it is a first offense and, during the period the employer was doing business in this state without providing, securing or maintaining compensation, one of his employees suffers an injury arising out of and in the course of his employment that results in substantial bodily harm to the employee or the death of the employee, for a category C felony punishable by imprisonment in the state prison for a minimum term of not less than 1 year and a maximum term of not more than 5 years and by a fine of not less than $1,000 nor more than $50,000.

(c) If it is a second or subsequent offense committed within 7 years after the previous offense, for a category C felony punishable by imprisonment in the state prison for a minimum term of not less than 1 year and a maximum term of not more than 5 years and by a fine of not less than $1,000 nor more than $50,000.

4. In addition to any other penalty imposed pursuant to paragraph (b) or (c) of subsection 3, the court shall order the employer to:

(a) Pay restitution to an insurer who has incurred costs as a result of the violation in an amount equal to the costs that have been incurred minus any costs incurred that have otherwise been recovered; and

(b) Reimburse the uninsured employers’ claim fund for all payments made from the fund on the employer’s behalf, including any benefits, administrative costs or attorney’s fees paid from the fund, that have not otherwise been recovered pursuant to NRS 616C.220.

5. Any criminal penalty imposed pursuant to subsections 3 and 4 must be in addition to the amount charged pursuant to subsection 1.

Sec. 46. Senate Bill No. 175 of this session is hereby amended by adding thereto a new section designated sec. 2, following section 1, to read as follows:

Sec. 2. This act becomes effective at 12:01 a.m. on October 1, 1999.".

Amend sec. 42, page 25, line 29, after "40" by inserting:

"to 46, inclusive,".

Amend sec. 42, page 25, line 30, by deleting "41" and inserting "47".

Amend sec. 42, page 25, line 31, by deleting "13,".

Amend sec. 42, page 25, line 32, by deleting "41" and inserting "47".

Amend sec. 42, page 25, after line 32, by inserting:

"3. Section 13 of this act becomes effective at 12:02 a.m. on July 1, 1999.".