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).

1-1 Section 1. Chapter 616B of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 2 to 5, inclusive, of this act.

1-3 Sec. 2. 1. Except as otherwise provided in this section, all officers

1-4 and employees of the system are exempt from the provisions of chapter

2-1 284 of NRS and are entitled to such salaries, leaves of absences and other

2-2 terms and conditions of employment as the manager prescribes.

2-3 2. An employee hired by the system as a classified employee before

2-4 the effective date of this act retains his rights to reemployment.

2-5 3. If the manager lays off an employee described in subsection 2, the

2-6 manager shall:

2-7 (a) Give the employee at least 30 days’ written notice before the

2-8 effective date of the layoff; and

2-9 (b) Provide the department of personnel with such information as is

2-10 necessary for the department to ensure the employee receives his rights to

2-11 reemployment.

2-12 4. As used in this section, "rights to reemployment" means all rights

2-13 to be reemployed by the executive branch of state government established

2-14 by the provisions of chapter 284 of NRS and the regulations adopted

2-15 pursuant thereto, including, without limitation, the right to be placed on

2-16 an appropriate reemployment list in the appropriate order.

2-17 Sec. 3. 1. The system may enter into an agreement with an agent,

2-18 broker or insurer for the provision and marketing of packages of

2-19 insurance coverage to employers that consist of:

2-20 (a) Industrial insurance which is provided by the system; and

2-21 (b) One or more kinds of insurance, other than industrial insurance,

2-22 which are not provided by the system.

2-23 2. The system shall not accept, assume or otherwise undertake any

2-24 manner of financial liability or responsibility with respect to insurance

2-25 that is provided by an insurer pursuant to paragraph (b) of subsection 1.

2-26 3. An agreement entered into pursuant to subsection 1 may provide

2-27 for the system to pay a commission to an agent, broker or insurer for

2-28 soliciting, negotiating, procuring, effecting or renewing a contract for a

2-29 package of insurance coverage that includes industrial insurance which

2-30 is provided by the system.

2-31 4. As used in this section:

2-32 (a) "Agent" has the meaning ascribed to it in NRS 683A.030.

2-33 (b) "Broker" has the meaning ascribed to it in NRS 683A.040.

2-34 (c) "Insurer" has the meaning ascribed to it in NRS 679A.100.

2-35 Sec. 4. 1. After the close of each fiscal year of the system, the

2-36 manager shall:

2-37 (a) Prepare a written report concerning the status for that fiscal year

2-38 of the account for the administration of extended claims created pursuant

2-39 to NRS 616B.087;

2-40 (b) Submit the report to the legislative committee on workers’

2-41 compensation; and

2-42 (c) Testify before the committee concerning the report.

3-1 2. The report must be submitted within 4 months after the close of

3-2 each fiscal year of the system. The manager may testify before the

3-3 committee after the end of the 4-month period if the report was submitted

3-4 in a timely manner and no meeting of the committee is scheduled after

3-5 the date of submission of the report and before the end of the 4-month

3-6 period.

3-7 3. The report must include the:

3-8 (a) Financial statement of the system which must include:

3-9 (1) A balance sheet indicating the amount of assets and liabilities of

3-10 the account at the close of that fiscal year; and

3-11 (2) A statement of operations for the account indicating the:

3-12 (I) Amount of money paid on claims against the account and

3-13 other operating expenses in that fiscal year;

3-14 (II) Investment income and other income generated by the

3-15 account in that fiscal year; and

3-16 (III) Changes in the accumulated deficit or accumulated earnings

3-17 that occurred during that fiscal year; and

3-18 (b) Manager’s opinion as to whether the amount of money allocated to

3-19 the account pursuant to NRS 616B.083 and 680B.060 will be adequate to

3-20 satisfy the obligations and liabilities of the state insurance fund for claims

3-21 for workers’ compensation that are related to injuries which were

3-22 incurred before July 1, 1995.

3-23 Sec. 5. 1. Notwithstanding any other provision of law, the system

3-24 shall comply with those provisions of Title 57 of NRS that require a

3-25 private carrier to provide information to the commissioner, except those

3-26 provisions that the commissioner determines are not reasonably

3-27 applicable to the system. In complying with such provisions, the system

3-28 shall provide to the commissioner the same or substantially similar

3-29 information as that which a private carrier is required to provide to the

3-30 commissioner.

3-31 2. The commissioner shall make information received from the

3-32 system pursuant to this section available publicly only if the commissioner

3-33 makes the same or substantially similar information received from a

3-34 private carrier available publicly.

3-35 Sec. 6. NRS 616B.014 is hereby amended to read as follows:

3-36 616B.014 1. Except as otherwise provided in this section and in NRS

3-42 (c) Any proprietary information of the system.

4-1 2. The system [may] shall, upon request, disclose such confidential

4-2 information:

4-3 (a) To the governor and any member of his staff authorized to receive

4-4 such information;

4-5 (b) To a member of the legislature and any member of his staff

4-6 authorized to receive such information;

4-7 (c) To the administrative director of an executive agency who is

4-8 otherwise authorized to receive such information pursuant to specific statute

4-9 or administrative regulation; or

4-10 (d) Pursuant to a lawful order issued by a court of competent jurisdiction.

4-11 3. [A] Except as otherwise provided in section 5 of this act, a person

4-12 who obtains such confidential information pursuant to subsection 2 shall not

4-13 disclose:

4-14 (a) The identity of an individual claimant or policyholder of the system;

4-15 or

4-16 (b) Any proprietary information of the system,

4-17 except pursuant to a lawful order of a court of competent jurisdiction.

4-18 4. As used in this section, "proprietary information" means any

4-19 information which, if disclosed to the general public, may result in a

4-20 competitive disadvantage to the system, including, without limitation:

4-21 (a) Rules, criteria and standards for underwriting policies that are applied

4-22 by the system.

4-23 (b) Plans or other documents concerning the marketing or strategic

4-24 planning of the system.

4-25 (c) Data, studies and reports concerning the development of new

4-26 products or services.

4-27 (d) Data that identify the share of the market of the system within each

4-28 class of risk.

4-29 (e) Any worksheets relating to the financial condition of the system,

4-30 except [a] :

4-31 (1) A financial statement resulting from an audit of the system

4-32 conducted pursuant to NRS 616B.056 [and a] ;

4-33 (2) A final report of an audit conducted by the legislative auditor [.] ;

4-34 or

4-35 (3) The report concerning the account for the administration of

4-36 extended claims prepared pursuant to section 4 of this act.

4-37 (f) The annual actuarial valuation and report of the soundness of the

4-38 system prepared pursuant to NRS 616B.056.

4-39 Sec. 7. NRS 616B.050 is hereby amended to read as follows:

4-40 616B.050 1. The state industrial insurance system is hereby

4-43 employees may be entitled to receive compensation pursuant to chapters

5-1 616A to 616D, inclusive, of NRS or chapter 617 of NRS, and the federal

5-2 Longshoremen’s and Harbor Workers’ Compensation Act. The system may

5-3 create one or more entities to carry out the business of the system, which

5-4 may be operated under any legal name in addition to the state industrial

5-5 insurance system on behalf of the system.

5-6 2. The system is a public agency which administers and is supported by

5-7 the state insurance fund. The executive and legislative departments of the

5-8 state government shall regularly review the system.

5-9 3. The system is entitled but not required to use any services provided

5-10 to state agencies. [Except as otherwise provided for specified positions, its

5-11 employees are in the classified service of the state.]

5-12 Sec. 8. NRS 616B.065 is hereby amended to read as follows:

5-13 616B.065 1. The manager shall select assistant managers who are [in

5-19 or an equivalent degree.

5-20 Sec. 9. NRS 616B.068 is hereby amended to read as follows:

5-21 616B.068 The manager is [in the unclassified service of the state but is]

5-22 entitled to receive an annual salary fixed by the governor.

5-23 Sec. 10. NRS 616B.083 is hereby amended to read as follows:

5-24 616B.083 1. The money and assets held in trust by the system

5-41 with generally accepted accounting principles.

6-1 (b) Discount its reserve for losses for accounting periods beginning on or

6-2 after July 1, 1995, at a rate determined by the manager, but not to exceed 4

6-3 percent.

6-4 (c) Allocate to the account for the administration of extended claims

6-5 created pursuant to NRS 616B.087 $650,000,000 in invested assets.

6-6 Sec. 11. NRS 616B.167 is hereby amended to read as follows:

6-7 616B.167 The manager:

6-18 persons are entitled to receive annual salaries fixed by the manager.

6-19 Sec. 12. NRS 284.013 is hereby amended to read as follows:

6-20 284.013 1. Except as otherwise provided in subsection 4, this chapter

6-43 590, 623 to 625A, inclusive, 628, 630 to 644, inclusive, 648, 652, 654 and

7-1 656 of NRS which contracts for the services of a person, shall require the

7-2 contract for those services to be in writing. The contract must be approved

7-3 by the state board of examiners before those services may be provided.

7-4 Sec. 13. 1. This section and sections 1, 2, 7, 8, 9, 11 and 12 of this

7-5 act become effective upon passage and approval.

7-6 2. Sections 3 to 6, inclusive, and 10 of this act become effective on July

7-7 1, 1999.