Senate Bill No. 175–Committee on Commerce and Labor

(On Behalf of Attorney General)

February 12, 1999

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Referred to Committee on Commerce and Labor

 

SUMMARY—Revises penalties for failure of employer to provide and secure or maintain workers’ compensation. (BDR 53-301)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: Yes.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to workers’ compensation; revising the penalties for the failure of an employer to provide and secure or maintain workers’ compensation; and providing other matters properly relating thereto.

 

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

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

1-2 616D.200 1. If the administrator finds that an employer within the

1-3 provisions of NRS 616B.633 has failed to provide and secure

1-4 compensation as required by the terms of chapters 616A to 616D,

1-5 inclusive, of NRS or that the employer has provided and secured that

1-6 compensation but has failed to maintain it, he shall make a determination

1-7 thereon and may charge the employer an amount equal to the sum of:

1-8 (a) The premiums that would otherwise have been owed to the system

1-9 pursuant to the terms of chapters 616A to 616D, inclusive, of NRS for the

1-10 period that the employer was doing business in this state without providing,

1-11 securing or maintaining that compensation, but not to exceed 6 years;

1-12 (b) The actual costs incurred by the system in reinstating the policy, but

1-13 not to exceed 10 percent of the premiums owed by the employer; and

1-14 (c) Interest at a rate determined pursuant to NRS 17.130 computed from

1-15 the time that the premiums should have been paid.

2-1 2. The administrator shall deliver a copy of his determination to the

2-2 employer. An employer who is aggrieved by the determination of the

2-3 administrator may appeal from the determination pursuant to subsection 2

2-4 of NRS 616D.220.

2-5 3. Any employer within the provisions of NRS 616B.633 who fails to

2-6 provide, secure or maintain compensation as required by the terms of

2-7 chapters 616A to 616D, inclusive, of NRS, [is:

2-8 (a) For the first offense, guilty of a misdemeanor.

2-9 (b) For a second or subsequent offense committed within 7 years after

2-10 the previous offense, guilty of a category C felony and shall be punished as

2-11 provided in NRS 193.130.] shall be punished as follows:

2-12 (a) Except as otherwise provided in paragraph (b), if it is a first

2-13 offense, for a misdemeanor.

2-14 (b) If it is a first offense and, during the period the employer was

2-15 doing business in this state without providing, securing or maintaining

2-16 compensation, one of his employees suffers an injury arising out of and

2-17 in the course of his employment that results in substantial bodily harm to

2-18 the employee or the death of the employee, for a category C felony

2-19 punishable by imprisonment in the state prison for a minimum term of

2-20 not less than 1 year and a maximum term of not more than 5 years and

2-21 by a fine of not less than $1,000 nor more than $50,000.

2-22 (c) If it is a second or subsequent offense committed within 7 years

2-23 after the previous offense, for a category C felony punishable by

2-24 imprisonment in the state prison for a minimum term of not less than 1

2-25 year and a maximum term of not more than 5 years and by a fine of not

2-26 less than $1,000 nor more than $50,000.

2-27 4. In addition to any other penalty imposed pursuant to paragraph

2-28 (b) or (c) of subsection 3, the court shall order the employer to:

2-29 (a) Pay restitution to an insurer who has incurred costs as a result of

2-30 the violation in an amount equal to the costs that have been incurred

2-31 minus any costs incurred that have otherwise been recovered; and

2-32 (b) Reimburse the uninsured employers’ claim fund for all payments

2-33 made from the fund on the employer’s behalf, including any benefits,

2-34 administrative costs or attorney’s fees paid from the fund, that have not

2-35 otherwise been recovered pursuant to NRS 616C.220.

2-36 5. Any criminal penalty imposed pursuant to subsections 3 and 4 must

2-37 be in addition to the amount charged pursuant to subsection 1.

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