Senate Bill No. 37–Committee on Commerce and Labor

CHAPTER........

Section 1. NRS 612.265 is hereby amended to read as follows:

612.265 1. Except as otherwise provided in this section, information

obtained from any employing unit or person pursuant to the administration

of this chapter and any determination as to the benefit rights of any person

is confidential and may not be disclosed or be open to public inspection in

any manner which would reveal the person's or employing unit's identity.

2. Any claimant or his legal representative is entitled to information

from the records of the division, to the extent necessary for the proper

presentation of his claim in any proceeding pursuant to this chapter. A

claimant or an employing unit is not entitled to information from the

records of the division for any other purpose.

3. Subject to such restrictions as the administrator may by regulation

prescribe, the information obtained by the division may be made available

to:

(a) Any agency of this or any other state or any federal agency charged

with the administration or enforcement of laws relating to unemployment

compensation, public assistance, workers' compensation or labor and

industrial relations, or the maintenance of a system of public employment

offices;

(b) Any state or local agency for the enforcement of child support;

(c) The Internal Revenue Service of the Department of the Treasury;

(d) The department of taxation; and

(e) The state contractors' board in the performance of its duties to

enforce the provisions of chapter 624 of NRS.Information obtained in connection with the administration of the

employment service may be made available to persons or agencies for

purposes appropriate to the operation of a public employment service or a

public assistance program.

4. Upon written request made by a public officer of a local

government, the administrator shall furnish from the records of the division

the name, address and place of employment of any person listed in the

records of employment of the division. The request must set forth the social

security number of the person about whom the request is made and contain

a statement signed by proper authority of the local government certifying

that the request is made to allow the proper authority to enforce a law to

recover a debt or obligation owed to the local government. The information

obtained by the local government is confidential and may not be used or

disclosed for any purpose other than the collection of a debt or obligation

owed to that local government. The administrator may charge a reasonable

fee for the cost of providing the requested information.

5. The administrator may publish or otherwise provide information on

the names of employers, their addresses, their type or class of business or

industry, and the approximate number of employees employed by each such

employer, if the information released will assist unemployed persons to

obtain employment or will be generally useful in developing and

diversifying the economic interests of this state. Upon request by a state

agency which is able to demonstrate that its intended use of the information

will benefit the residents of this state, the administrator may, in addition to

the information listed in this subsection, disclose the number of employees

employed by each employer and the total wages paid by each employer.

The administrator may charge a fee to cover the actual costs of any

administrative expenses relating to the disclosure of this information to a

state agency. The administrator may require the state agency to certify in

writing that the agency will take all actions necessary to maintain the

confidentiality of the information and prevent its unauthorized disclosure.

6. Upon request therefor the administrator shall furnish to any agency

of the United States charged with the administration of public works or

assistance through public employment, and may furnish to any state agency

employment status of each recipient of benefits and the recipient's rights to

further benefits pursuant to this chapter.

7. To further a current criminal investigation, the chief executive

officer of any law enforcement agency of this state may submit a written

request to the administrator that he furnish, from the records of the division,

the name, address and place of employment of any person listed in the

records of employment of the division. The request must set forth the social

security number of the person about whom the request is made and contain

a statement signed by the chief executive officer certifying that the request

is made to further a criminal investigation currently being conducted by the

agency. Upon receipt of such a request, the administrator shall furnish theinformation requested. He may charge a fee to cover the actual costs of any

related administrative expenses.

8. In addition to the provisions of subsection 5, the administrator shall

provide lists containing the names and addresses of employers, the number

of employees employed by each employer and the total wages paid by each

employer to the department of taxation, upon request, for use in verifying

returns for the business tax. The administrator may charge a fee to cover

the actual costs of any related administrative expenses.

carrier that provides industrial insurance in this state shall submit to the

administrator a list containing the name of each person who received

benefits pursuant to chapters 616A to 616D, inclusive, or 617 of NRS

during the preceding month and request that he compare the information so

provided with the records of the division regarding persons claiming

benefits pursuant to chapter 612 of NRS for the same period. The

form determined by the administrator and must contain the social security

number of each such person. Upon receipt of the request, the administrator

shall make such a comparison and, if it appears from the information

submitted that a person is simultaneously claiming benefits under chapter

612 of NRS and under chapters 616A to 616D, inclusive, or 617 of NRS,

the administrator shall notify the attorney general or any other appropriate

law enforcement agency. The administrator shall charge a fee to cover the

actual costs of any related administrative expenses.

10. The administrator may request the Comptroller of the Currency of

the United States to cause an examination of the correctness of any return

or report of any national banking association rendered pursuant to the

provisions of this chapter, and may in connection with the request transmit

any such report or return to the Comptroller of the Currency of the United

States as provided in Section 3305(c) of the Internal Revenue Code of

1954.

administrator or any employee of the administrator, in violation of the

provisions of this section, discloses information obtained from any

employing unit or person in the administration of this chapter, or if any

person who has obtained a list of applicants for work, or of claimants or

recipients of benefits pursuant to this chapter uses or permits the use of the

list for any political purpose, he is guilty of a gross misdemeanor.

12. All letters, reports or communications of any kind, oral or written,

from the employer or employee to each other or to the division or any of its

agents, representatives or employees are privileged and must not be the

subject matter or basis for any lawsuit if the letter, report or communication

is written, sent, delivered or prepared pursuant to the requirements of this

chapter.

Sec. 2. Chapter 616A of NRS is hereby amended by adding thereto the

provisions set forth as sections 3 and 4 of this act.

Sec. 5. NRS 616A.015 is hereby amended to read as follows:

616A.015 1. All premiums, contributions, penalties, money,

properties, securities, funds, deposits, contracts and awards received,

2. All proceedings must be had and rights determined under the

Sec. 6. NRS 616A.025 is hereby amended to read as follows:

616A.025 As used in chapters 616A to 616D, inclusive, of NRS,

unless the context otherwise requires, the words and terms defined in NRS

meanings ascribed to them in those sections.

Sec. 7. NRS 616A.045 is hereby amended to read as follows:

616A.045 "Advisory organization" means the organization designated

and licensed by the commissioner to file the classifications of risks for

inclusive, and chapter 686B of NRS.

Sec. 8. NRS 616A.127 is hereby amended to read as follows:

in grades 7 through 12, inclusive, the skills to make the transition from

school to careers established pursuant to NRS 388.368, works without pay

for an employer other than the school district, university or community

college with which the teacher is employed, and is not specifically covered

by any other provisions of chapters 616A to 616D, inclusive, of NRS,

while engaging in that work; or

enrolled in grades 7 through 12, inclusive, the skills to make the transitionfrom school to careers established pursuant to NRS 388.368, works without

pay for an employer,

shall be deemed for the purposes of chapters 616A to 616D, inclusive, of

NRS to be an employee of that employer at the wage of $900 per month.

The teacher or pupil is entitled to the benefits of those chapters when the

employer complies with the provisions of those chapters and the regulations

adopted pursuant thereto.

Sec. 9. NRS 616A.270 is hereby amended to read as follows:

616A.270 "Insurer" includes:

Sec. 10. NRS 616A.290 is hereby amended to read as follows:

616A.290 "Private carrier" means any insurer or the legal

representative of an insurer authorized to provide industrial insurance

pursuant to chapters 616A to 617, inclusive, of NRS. The term does not

Sec. 11. NRS 616A.400 is hereby amended to read as follows:

616A.400 The administrator shall:

1. Prescribe by regulation the time within which adjudications and

awards must be made.

2. Regulate forms of notices, claims and other blank forms deemed

proper and advisable.

3. Prescribe by regulation the methods by which an insurer may

approve or reject claims, and may determine the amount and nature of

benefits payable in connection therewith.

4. Prescribe by regulation the method for reimbursing an injured

employee for expenses necessarily incurred for travel more than 20 miles

one way from his residence or place of employment to his destination as a

result of an industrial injury.

5. Determine whether an insurer has provided adequate facilities in this

state to administer claims and for the retention of a file on each claim.

employers in:

(a) Controlling losses; and

(b) Providing information on the prevention of industrial accidents or

occupational diseases. 7. Conduct such investigations and examinations of insurers as he

deems reasonable to determine whether any person has violated the

provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS or

to obtain information useful to enforce or administer these chapters.

8. Except with respect to any matter committed by specific statute to

the regulatory authority of another person or agency, adopt such other

regulations as he deems necessary to carry out the provisions of chapters

616A to 617, inclusive, of NRS.

Sec. 12. (Deleted by amendment.)

Sec. 12.5. NRS 616A.425 is hereby amended to read as follows:

616A.425 1. There is hereby established in the state treasury the fund

for workers' compensation and safety as a special revenue fund. All money

received from assessments levied on insurers and employers by the

administrator pursuant to NRS 232.680 must be deposited in this fund.

2. All assessments, penalties, bonds, securities and all other properties

received, collected or acquired by the division for functions supported in

whole or in part from the fund must be delivered to the custody of the state

treasurer for deposit to the credit of the fund.

3. All money and securities in the fund must be used to defray all costs

and expenses of administering the program of workmen's compensation,

including the payment of:

(a) All salaries and other expenses in administering the division of

industrial relations, including the costs of the office and staff of the

administrator.

(b) All salaries and other expenses of administering NRS 616A.435 to

616A.460, inclusive, the offices of the hearings division of the department

of administration and the programs of self-insurance and review of

NRS 616C.220 and 617.401.

4. The state treasurer may disburse money from the fund only upon

written order of the controller. 5. The state treasurer shall invest money of the fund in the same

manner and in the same securities in which he is authorized to invest state

general funds which are in his custody. Income realized from the

investment of the assets of the fund must be credited to the fund.

6. The commissioner shall assign an actuary to review the

establishment of assessment rates. The rates must be filed with the

commissioner 30 days before their effective date. Any insurer or employer

who wishes to appeal the rate so filed must do so pursuant to NRS

679B.310.

Sec. 13. NRS 616A.470 is hereby amended to read as follows:

616A.470 1. Except as otherwise provided in subsection 2, each self

-insured employer, association of self-insured public or private employers

attorney for injured workers or the hearings division of the department of

occupational safety and health review board, the Nevada attorney for

injured workers, the mediators and the appeals officers provide to those

employers. The cost of any service must be negotiated by the employer,

injured workers or the division, as appropriate, before the employer,

association or private carrier is charged for the service.

2. All compensation must be on the basis of actual cost and not on a

attorney for injured workers, the division or other employers.

Sec. 14. NRS 616A.475 is hereby amended to read as follows:

private employers or private carrier shall furnish to the administrator, upon

request, all information required to carry out the purposes of chapters 616A

to 616D, inclusive, or chapter 617 of NRS. The administrator or any person

employed by him for that purpose, may examine, under oath, any employer

or officer, agent or employee thereof.

sufficient supply of blank forms furnished by the insurer.

Sec. 15. NRS 616A.485 is hereby amended to read as follows:

a member of an association of self-insured public or private employers or

insured by a private carrier must be open to inspection by the administrator

Sec. 16. Chapter 616B of NRS is hereby amended by adding thereto

the provisions set forth as sections 17 to 20.5, inclusive, of this act.

Sec. 21. NRS 616B.027 is hereby amended to read as follows:

616B.027 1. Every insurer shall provide:

(a) An office in this state operated by the insurer or its third-party

administrator in which:

(1) A complete file of each claim is kept

; (2) Persons authorized to act for the insurer and, if necessary, licensed

pursuant to chapter 683A of NRS, may receive information related to a

claim and provide the services to an employer and his employees required

by chapters 616A to 617, inclusive, of NRS; and

(3) An employee or his employer, upon request, is provided with

information related to a claim filed by the employee or a copy of the

information from the file for that claim.

(b) Statewide, toll-free telephone service to that office or accept collect

calls from injured employees.

(a) Adequate services to its insured employers in controlling losses; and

(b) Adequate information on the prevention of industrial accidents and

occupational diseases.

Sec. 22. NRS 616B.030 is hereby amended to read as follows:

(a) Must be in writing;

(b) Must contain the insuring agreements and exclusions;

(c) Is subject to chapters 616A to 617, inclusive, of NRS and regulations

adopted pursuant to those chapters; and

(d) If it contains a provision inconsistent with this chapter or chapter

616A, 616C, 616D or 617 of NRS, shall be deemed to be reformed to

conform with that chapter.

2. The commissioner shall, by regulation, prescribe the basic policy to

be used by private carriers.

Sec. 23. NRS 616B.036 is hereby amended to read as follows:

provide industrial insurance for an organization or association of employers

as a group if:

(a) The members of the group or organization are engaged in a common

trade or business; and

(b) The formation and operation of a program of industrial insurance for

the organization or association will substantially assist in the handling of

claims and the prevention of accidents for the employers as a group.

2. The commissioner must approve each group or organization before a

policy of industrial insurance may be issued to it.

3. The commissioner shall adopt regulations for the qualification of

groups for industrial insurance.

Sec. 24. NRS 616B.050 is hereby amended to read as follows:

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

established as an independent actuarially funded system to insure

employers against liability for injuries and occupational diseases for which

their employees may be entitled to receive compensation pursuant to

chapters 616A to 616D, inclusive, of NRS or chapter 617 of NRS, and the

under any legal name in addition to the state industrial insurance system on

behalf of the system.

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

the state insurance fund. The executive and legislative departments of the

state government shall regularly review the system.

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

Sec. 25. NRS 616B.065 is hereby amended to read as follows:

salaries fixed by the manager.

2. The assistant managers shall serve at the pleasure of the manager.

3. The assistant managers must be graduates of a 4-year college or

university with a degree in business administration or public administration

or an equivalent degree.

Sec. 26. NRS 616B.068 is hereby amended to read as follows:

Sec. 27. NRS 616B.083 is hereby amended to read as follows:

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

include:

(a) All premiums and other money paid to the system;

(b) All property and securities acquired through the use of money in the

state insurance fund; and

(c) All interest and dividends earned upon money in the state insurance

fund and deposited or invested as provided in chapters 616A to 616D,

inclusive, of NRS.

beginning on or after July 1, 1995, at a rate determined by the manager, but

not to exceed 4 percent.

Sec. 28. NRS 616B.086 is hereby amended to read as follows:

officer or panel his authority to take any disciplinary action pursuant to

NRS 616B.318, 616B.321, 616B.350 to 616B.446, inclusive, 616B.463,

616B.472 or 616D.120, impose and collect administrative fines pursuant to

those sections and deposit the money in the fund for workers'

compensation and safety.

administrator deposits the money collected from the imposition of

administrative fines with the state treasurer for credit to the state general

fund, he may present a claim to the state board of examiners for

recommendation to the interim finance committee if money is needed to

pay attorney's fees or the costs of an investigation, or both.

Sec. 29. NRS 616B.167 is hereby amended to read as follows:

616B.167 The manager:

1. Has full power, authority and jurisdiction over the system.

2. May perform all acts necessary or convenient in the exercise of any

power, authority or jurisdiction over the system, either in the administration

of the system or in connection with the business of insurance to be carried

on by the system under the provisions of chapters 616A to 616D, inclusive,

of NRS, including the establishment of premium rates.

than five persons, engaged in management, who report directly to the

manager or an assistant manager. The manager shall designate these

positions, and may not change them without the approval of the personnel

commission. These persons are entitled to receive annual salaries fixed by

the manager.

Sec. 29.5. NRS 616B.167 is hereby amended to read as follows:

616B.167 The manager:

1. Has full power, authority and jurisdiction over the system.

2. May perform all acts necessary or convenient in the exercise of any

power, authority or jurisdiction over the system, either in the administration

of the system or in connection with the business of insurance to be carried

on by the system under the provisions of chapters 616A to 616D, inclusive,

or chapter 617 of NRS, including the establishment of premium rates.

than five persons engaged in management who report directly to the

manager or an assistant manager. The manager shall designate these

positions and may not change them without the approval of the personnel

commission. These persons are entitled to receive annual salaries fixed by

the manager. Sec. 30. NRS 616B.185 is hereby amended to read as follows:

616B.185 1. Any offender confined at the state prison, while engaged

in work in a prison industry or work program, whether the program is

operated by an institution of the department of prisons, by contract with a

public entity or by a private employer, is entitled to coverage under the

modified program of industrial insurance established by regulations

adopted by the division if the director of the department of prisons

complies with the provisions of the regulations, and coverage is approved

2. An offender is limited to the rights and remedies established by the

provisions of the modified program of industrial insurance established by

regulations adopted by the division. The offender is not entitled to any

rights and remedies established by the provisions of chapters 616A to 617,

inclusive, of NRS.

3. The division shall, in cooperation with the department of prisons and

the risk management division of the department of administration, adopt

regulations setting forth a modified program of industrial insurance to

provide offenders with industrial insurance against personal injuries arising

out of and in the course of their work in a prison industry or work program.

Sec. 31. NRS 616B.194 is hereby amended to read as follows:

616B.194 Each insurer shall cooperate with the commissioner in the

performance of his duties pursuant to chapters 616A to 616D, inclusive, or

commissioner with any information, statistics or data in its records which

pertain to any employer who is making an application to become self-

insured or who is self-insured, or who is becoming or who is a member of

an association of self-insured public or private employers.

Sec. 32. 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.

of this section operates as a rejection of chapters 616A to 616D, inclusive,

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.

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.

Sec. 33. NRS 616B.227 is hereby amended to read as follows:

616B.227 1. An employer shall:

(a) Make a copy of each report that an employee files with the employer

pursuant to 26 U.S.C. § 6053(a) to report the amount of his tips to the

United States Internal Revenue Service;

and retain another copy for his records or, if the employer is self-insured or

a member of an association of self-insured public or private employers,

retain the copy for his records; and

(c) If he is not self-insured or a member of an association of self-insured

premiums for the reported tips at the same rate as he pays on regular wages.

2. The division shall adopt regulations specifying the form of the

declaration required pursuant to subsection 1.

shall calculate compensation for an employee on the basis of wages paid by

the employer plus the amount of tips reported by the employee pursuant to

26 U.S.C. § 6053. Reports made after the date of injury may not be used

for the calculation of compensation.

4. An employer shall notify his employees of the requirement to report

income from tips to calculate his federal income tax and to include the

income in the computation of benefits pursuant to chapters 616A to 616D,

inclusive, and chapter 617 of NRS.

5. The administrator shall adopt such regulations as are necessary to

carry out the provisions of this section.

Secs. 34 and 35. (Deleted by amendment.

) Sec. 36. NRS 616B.386 is hereby amended to read as follows:

616B.386 1. If an employer wishes to become a member of an

association of self-insured public or private employers, the employer must:

(a) Submit an application for membership to the board of trustees or

third-party administrator of the association; and

(b) Enter into an indemnity agreement as required by NRS 616B.353.

2. The membership of the applicant becomes effective when each

member of the association approves the application or on a later date

specified by the association. The application for membership and the action

taken on the application must be maintained as permanent records of the

board of trustees.

3. Each member who is a member of an association during the 12

months immediately following the formation of the association must:

(a) Have a tangible net worth of at least $500,000; or

(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. 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 isgiven pursuant to paragraph (b), unless the association first receives notice

from the administrator that the member has:

616B.312;

public or private employers; or

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 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.

Sec. 37. NRS 616B.460 is hereby amended to read as follows:

616B.460 1. An employer may elect to purchase industrial insurance

from a private carrier for his employees pursuant to chapters 616A to 617,

inclusive, of NRS.

2. An employer may elect to purchase insurance from an insurer other

than his present insurer if the employer has:

(a) Given at least 10 days' notice to the administrator of the change of

insurer; and

(b) Furnished evidence satisfactory to the administrator that the payment

of compensation has otherwise been secured.

an employer has changed his insurer or has allowed his insurance to lapse,

within 24 hours or by the end of the next working day after the insurer has

notice of the change or lapse.

Sec. 38. NRS 616B.500 is hereby amended to read as follows:

616B.500 1. An insurer may enter into a contract to have his plan of

insurance administered by a third-party administrator.

2. An insurer shall not enter into a contract with any person for the

administration of any part of the plan of insurance unless that person

maintains an office in this state and has a valid certificate issued by the

Sec. 39. NRS 616B.527 is hereby amended to read as follows:

616B.527 A self-insured employer, an association of self-insured

public or private employers or a private carrier may:

1. Enter into a contract or contracts with one or more organizations for

managed care to provide comprehensive medical and health care services toemployees for injuries and diseases that are compensable pursuant to

chapters 616A to 617, inclusive, of NRS.

2. Enter into a contract or contracts with providers of health care,

including, without limitation, physicians who provide primary care,

specialists, pharmacies, physical therapists, radiologists, nurses, diagnostic

facilities, laboratories, hospitals and facilities that provide treatment to

outpatients, to provide medical and health care services to employees for

injuries and diseases that are compensable pursuant to chapters 616A to

617, inclusive, of NRS.

their industrial injuries from those organizations and persons with whom

the self-insured employer, association or private carrier has contracted

pursuant to subsections 1 and 2, or as the self-insured employer, association

or private carrier otherwise prescribes.

employer, association or private carrier before obtaining medical and health

care services for their industrial injuries from a provider of health care who

has not been previously approved by the self-insured employer, association

or private carrier.

Sec. 40. NRS 616B.554 is hereby amended to read as follows:

616B.554 1. There is hereby established as a special revenue fund in

the state treasury the subsequent injury fund for self-insured employers,

which may be used only to make payments in accordance with the

provisions of NRS 616B.557 and 616B.560. The board shall administer the

fund based upon recommendations made by the administrator pursuant to

subsection 8.

2. All assessments, penalties, bonds, securities and all other properties

received, collected or acquired by the board for the subsequent injury fund

for self-insured employers must be delivered to the custody of the state

treasurer.

3. All money and securities in the fund must be held by the state

treasurer as custodian thereof to be used solely for workers' compensation

for employees of self-insured employers.

4. The state treasurer may disburse money from the fund only upon

written order of the board.

5. The state treasurer shall invest money of the fund in the same

manner and in the same securities in which he is authorized to invest state

general funds which are in his custody. Income realized from the

investment of the assets of the fund must be credited to the fund.

6. The board shall adopt regulations for the establishment and

administration of assessment rates, payments and penalties. Assessment

rates must reflect the relative hazard of the employments covered by self-

insured employers, and must be based upon expected annual expendituresfor claims for payments from the subsequent injury fund for self-insured

7. The commissioner shall assign an actuary to review the

establishment of assessment rates. The rates must be filed with the

commissioner 30 days before their effective date. Any self-insured

employer who wishes to appeal the rate so filed must do so pursuant to

NRS 679B.310.

8. The administrator shall:

(a) Evaluate any claim submitted to the board for payment or

reimbursement from the subsequent injury fund for self-insured employers

and recommend to the board any appropriate action to be taken concerning

the claim; and

(b) Submit to the board any other recommendations relating to the fund.

Sec. 41. NRS 616B.575 is hereby amended to read as follows:

616B.575 1. There is hereby established as a special revenue fund in

the state treasury the subsequent injury fund for associations of self-insured

public or private employers, which may be used only to make payments in

accordance with the provisions of NRS 616B.578 and 616B.581. The

board shall administer the fund based upon recommendations made by the

administrator pursuant to subsection 8.

2. All assessments, penalties, bonds, securities and all other properties

received, collected or acquired by the board for the subsequent injury fund

for associations of self-insured public or private employers must be

delivered to the custody of the state treasurer.

3. All money and securities in the fund must be held by the state

treasurer as custodian thereof to be used solely for workers' compensation

for employees of members of associations of self-insured public or private

employers.

4. The state treasurer may disburse money from the fund only upon

written order of the board.

5. The state treasurer shall invest money of the fund in the same

manner and in the same securities in which he is authorized to invest state

general funds which are in his custody. Income realized from the

investment of the assets of the fund must be credited to the fund.

6. The board shall adopt regulations for the establishment and

administration of assessment rates, payments and penalties. Assessment

rates must reflect the relative hazard of the employments covered by

associations of self-insured public or private employers, and must be based

upon expected annual expenditures for claims for payments from the

subsequent injury fund for associations of self-insured public or private

establishment of assessment rates. The rates must be filed with the

commissioner 30 days before their effective date. Any association of self-

insured public or private employers that wishes to appeal the rate so filed

must do so pursuant to NRS 679B.310.

8. The administrator shall:

(a) Evaluate any claim submitted to the board for payment or

reimbursement from the subsequent injury fund for associations of self-

insured public or private employers and recommend to the board any

appropriate action to be taken concerning the claim; and

(b) Submit to the board any other recommendations relating to the fund.

Sec. 42. NRS 616B.584 is hereby amended to read as follows:

616B.584 1. There is hereby established as a special revenue fund in

the state treasury the subsequent injury fund for private carriers, which may

be used only to make payments in accordance with the provisions of NRS

616B.587 and 616B.590. The administrator shall administer the fund.

2. All assessments, penalties, bonds, securities and all other properties

received, collected or acquired by the administrator for the subsequent

injury fund for private carriers must be delivered to the custody of the state

treasurer.

3. All money and securities in the fund must be held by the state

treasurer as custodian thereof to be used solely for workers' compensation

for employees whose employers are insured by private carriers.

4. The state treasurer may disburse money from the fund only upon

written order of the state controller.

5. The state treasurer shall invest money of the fund in the same

manner and in the same securities in which he is authorized to invest state

general funds which are in his custody. Income realized from the

investment of the assets of the fund must be credited to the fund.

6. The administrator shall adopt regulations for the establishment and

administration of assessment rates, payments and penalties. Assessment

rates must reflect the relative hazard of the employments covered by private

carriers and must be based upon expected annual expenditures for claims

7. The commissioner shall assign an actuary to review the

establishment of assessment rates. The rates must be filed with the

commissioner 30 days before their effective date. Any private carrier who

wishes to appeal the rate so filed must do so pursuant to NRS 679B.310.

Sec. 43. NRS 616B.659 is hereby amended to read as follows:

616B.659 1. A sole proprietor may elect to be included within the

terms, conditions and provisions of chapters 616A to 616D, inclusive, of

NRS to secure for himself compensation equivalent to that to which an

employee is entitled for any accidental injury sustained by the soleproprietor which arises out of and in the course of his self-employment by

a private carrier.

2. A sole proprietor who elects to accept the terms, conditions and

provisions of chapters 616A to 616D, inclusive, of NRS shall submit to a

private carrier shall prescribe the scope of the examination and shall

consider it for rating purposes. The cost of the physical examination must

be paid by the sole proprietor.

3. A sole proprietor who elects to submit to the provisions of chapters

carrier premiums in such manner and amounts as may be prescribed by the

regulations of the commissioner.

4. If a sole proprietor fails to pay all premiums required by the

regulations of the commissioner, the failure operates as a rejection of

chapters 616A to 616D, inclusive, of NRS.

5. A sole proprietor who elects to be included pursuant to the

provisions of chapters 616A to 616D, inclusive, of NRS remains subject to

all terms, conditions and provisions of those chapters and all regulations of

the commissioner until he files written notice with the administrator and the

sole proprietor shall be deemed to be receiving a wage of $300 per month

unless, at least 90 days before any injury for which he requests coverage, he

carrier that he elects to pay an additional amount of premiums for

additional premiums it requires for such additional coverage, the sole

proprietor shall be deemed to be receiving a wage of $1,800 per month.

Secs. 44-49. (Deleted by amendment.)

Sec. 49.5. Chapter 616C of NRS is hereby amended by adding thereto

a new section to read as follows:

Sec. 50. NRS 616C.015 is hereby amended to read as follows:

616C.015 1. An employee or, in the event of the employee's death,

one of his dependents, shall provide written notice of an injury that arose

out of and in the course of employment to the employer of the employee as

soon as practicable, but within 7 days after the accident. 2. The notice required by subsection 1 must:

(a) Be on a form prescribed by the administrator. The form must allow

the injured employee or his dependent to describe briefly the accident that

caused the injury or death.

(b) Be signed by the injured employee or by a person on his behalf, or in

the event of the employee's death, by one of his dependents or by a person

acting on behalf of the dependent.

(c) Include an explanation of the procedure for filing a claim for

compensation.

(d) Be prepared in duplicate so that the injured employee or his

dependent and the employer can retain a copy of the notice.

3. Upon receipt of the notice required by subsection 1, the employer,

the injured employee's supervisor or the agent of the employer who was in

charge of the type of work or the area where the accident occurred shall

sign the notice. The signature of the employer, the supervisor or the

employer's agent is an acknowledgment of the receipt of the notice and

shall not be deemed to be a waiver of any of the employer's defenses or

rights.

4. An employer shall maintain a sufficient supply of the forms required

to file the notice required by subsection 1 for use by his employees.

5. An employer shall retain any notice provided pursuant to subsection

Sec. 51. NRS 616C.055 is hereby amended to read as follows:

616C.055 1. The insurer may not, in accepting responsibility for any

charges, use fee schedules which unfairly discriminate among physicians

and chiropractors.

2. If a physician or chiropractor is removed from the panel established

pursuant to NRS 616C.090 or from participation in a plan for managed care

for any services rendered to the injured employee after the date of his

removal.

Sec. 52. NRS 616C.090 is hereby amended to read as follows:

616C.090 1. The administrator shall establish a panel of physicians

and chiropractors who have demonstrated special competence and interest

in industrial health to treat injured employees under chapters 616A to

616D, inclusive, or chapter 617 of NRS. Every employer whose insurer has

shall maintain a list of those physicians and chiropractors on the panel who

are reasonably accessible to his employees.

physician or chiropractor from the panel of physicians and chiropractors. Ifthe injured employee is not satisfied with the first physician or chiropractor

he so chooses, he may make an alternative choice of physician or

chiropractor from the panel if the choice is made within 90 days after his

injury. The insurer shall notify the first physician or chiropractor in writing.

The notice must be postmarked within 3 working days after the insurer

receives knowledge of the change. The first physician or chiropractor must

be reimbursed only for the services he rendered to the injured employee up

to and including the date of notification. Any further change is subject to

the approval of the insurer, which must be granted or denied within 10 days

after a written request for such a change is received from the injured

employee. If no action is taken on the request within 10 days, the request

shall be deemed granted. Any request for a change of physician or

chiropractor must include the name of the new physician or chiropractor

chosen by the injured employee.

3. An injured employee employed or residing in any county in this state

to the terms of that contract. If the employee, after choosing his treating

physician or chiropractor, moves to a county which is not served by the

employee to continue treatment with the physician or chiropractor, the

employee must choose a treating physician or chiropractor who has agreed

to the terms of that contract unless the insurer authorizes the employee to

choose another physician or chiropractor.

4. Except when emergency medical care is required and except as

otherwise provided in NRS 616C.055, the insurer is not responsible for any

charges for medical treatment or other accident benefits furnished or

ordered by any physician, chiropractor or other person selected by the

employee in disregard of the provisions of this section or for any

compensation for any aggravation of the employee's injury attributable to

improper treatments by such physician, chiropractor or other person.

5. The administrator may order necessary changes in a panel of

physicians and chiropractors and shall suspend or remove any physician or

chiropractor from a panel for good cause shown.

6. An injured employee may receive treatment by more than one

physician or chiropractor if the insurer provides written authorization for

such treatment.

Sec. 52.5. NRS 616C.100 is hereby amended to read as follows:

616C.100 1. If an injured employee disagrees with the percentage of

disability determined by a physician or chiropractor, the injured employee

may obtain a second determination of the percentage of disability. If the

employee wishes to obtain such a determination, he must select the next

physician or chiropractor in rotation from the list of qualified physicians or

chiropractors maintained by the administrator pursuant to subsection 2 ofNRS 616C.490. If a second determination is obtained, the injured

2. The results of a second determination made pursuant to subsection 1

may be offered at any hearing or settlement conference.

Sec. 53. NRS 616C.110 is hereby amended to read as follows:

616C.490 and 617.459, the division shall adopt regulations incorporating

the American Medical Association's Guides to the Evaluation of Permanent

Impairment by reference and may amend those regulations from time to

time as it deems necessary. In adopting the Guides to the Evaluation of

Permanent Impairment, the division shall consider the edition most recently

published by the American Medical Association.

2. If the Guides to the Evaluation of Permanent Impairment adopted by

the division contain more than one method of determining the rating of an

impairment, the administrator shall designate by regulation the method

which must be used to rate an impairment pursuant to NRS 616C.490.

Sec. 53.5. NRS 616C.175 is hereby amended to read as follows:

out of or in the course of his current or past employment; and

arising out of and in the course of his employment which aggravates,

precipitates or accelerates his preexisting condition,

the resulting condition.

employment; and

accelerates the injury in a manner that does not arise out of and in the

course of his employment,

cause of the resulting condition.

Sec. 54. NRS 616C.190 is hereby amended to read as follows:

616C.190 1. Except as otherwise provided in subsection 4 of NRS

616B.600, if an employee who has been hired or is regularly employed in

course of such employment outside of this state, he, or his dependents in

case of his death, are entitled to receive compensation according to the law

of this state, and such compensation is the exclusive remedy of the

employee or dependents.

2. The provisions of this section apply only to those injuries received

by the employee within 6 months after leaving this state, unless before the

association of self-insured public or private employers, with the

administrator notice that he has elected to extend the coverage for a greater

period.

Sec. 55. NRS 616C.200 is hereby amended to read as follows:

616C.200 1. If an employee who has been hired or is regularly

of and in the course of such employment outside this state, and he, or his

personal or legal representatives, dependents or next of kin commence any

action or proceeding in any other state to recover any damages or

compensation from his employer for the injury or death, the act of

commencing such an action or proceeding constitutes an irrevocable waiver

of all compensation for the injury or death to which persons would

otherwise have been entitled under the laws of this state.

dependents or next of kin recover a final judgment against the employer for

damages arising out of the injury or death in any court of competent

jurisdiction in any other state, the compensation which would otherwise

have been payable under the laws of this state, up to the full amount

thereof, but less any sums previously paid for the injury or death, must be

applied in satisfaction of the judgment as follows:

(a) Upon receipt of an authenticated copy of the final judgment and writ

of execution or other process issued in aid thereof, the insurer shall

immediately determine the total amount of compensation which would have

been payable under the laws of this state if a claim therefor had been made

to the insurer. In the case of compensation payable in installments, the

the administrator deems proper.

(b) The insurer shall thereupon order to be paid in full or partial

satisfaction of the judgment a sum not to exceed the total amount of

compensation computed as provided in this section or the amount of the

judgment, whichever is less. (c) Except for a self-insured employer or an employer who is a member

of an association of self-insured public or private employers, if the

judgment is satisfied fully by the employer before any payment by the

thereunder must be paid to the employer.

Sec. 56. NRS 616C.215 is hereby amended to read as follows:

616C.215 1. If an injured employee or, in the event of his death, his

dependents, bring an action in tort against his employer to recover payment

for an injury which is compensable pursuant to the provisions of chapters

616A to 616D, inclusive, or chapter 617 of NRS and, notwithstanding the

provisions of NRS 616A.020, receive payment from the employer for that

injury:

(a) The amount of compensation the injured employee or his dependents

are entitled to receive pursuant to the provisions of chapters 616A to 616D,

inclusive, or chapter 617 of NRS, including any future compensation, must

be reduced by the amount paid by the employer.

(b) The insurer, or in the case of claims involving the uninsured

employer's claim fund or a subsequent injury fund the administrator, has a

lien upon the total amount paid by the employer if the injured employee or

his dependents receive compensation pursuant to the provisions of chapters

616A to 616D, inclusive, or chapter 617 of NRS.

This subsection is applicable whether the money paid to the employee or

his dependents by the employer is classified as a gift, a settlement or

otherwise. The provisions of this subsection do not grant to an injured

employee any right of action in tort to recover damages from his employer

for his injury.

2. When an employee receives an injury for which compensation is

payable pursuant to the provisions of chapters 616A to 616D, inclusive, or

chapter 617 of NRS and which was caused under circumstances creating a

legal liability in some person, other than the employer or a person in the

same employ, to pay damages in respect thereof:

(a) The injured employee, or in case of death his dependents, may take

proceedings against that person to recover damages, but the amount of the

compensation the injured employee or his dependents are entitled to

receive pursuant to the provisions of chapters 616A to 616D, inclusive, or

chapter 617 of NRS, including any future compensation, must be reduced

by the amount of the damages recovered, notwithstanding any act or

omission of the employer or a person in the same employ which was a

direct or proximate cause of the employee's injury.

(b) If the injured employee, or in case of death his dependents, receive

compensation pursuant to the provisions of chapters 616A to 616D,

inclusive, or chapter 617 of NRS, the insurer, or in case of claims involving

the uninsured employers' claim fund or a subsequent injury fund the

administrator, has a right of action against the person so liable to pay

damages and is subrogated to the rights of the injured employee or of his

dependents to recover therefor. 3. When an injured employee incurs an injury for which compensation

is payable pursuant to the provisions of chapters 616A to 616D, inclusive,

or chapter 617 of NRS and which was caused under circumstances entitling

him, or in the case of death his dependents, to receive proceeds under his

employer's policy of uninsured or underinsured vehicle coverage:

(a) The injured employee, or in the case of death his dependents, may

take proceedings to recover those proceeds, but the amount of

compensation the injured employee or his dependents are entitled to

receive pursuant to the provisions of chapters 616A to 616D, inclusive, or

chapter 617 of NRS, including any future compensation, must be reduced

by the amount of proceeds received.

(b) If an injured employee, or in the case of death his dependents,

receive compensation pursuant to the provisions of chapters 616A to 616D,

inclusive, or chapter 617 of NRS, the insurer, or in the case of claims

involving the uninsured employers' claim fund or a subsequent injury fund

the administrator, is subrogated to the rights of the injured employee or his

dependents to recover proceeds under the employer's policy of uninsured

or underinsured vehicle coverage. The insurer and the administrator are not

subrogated to the rights of an injured employee or his dependents under a

policy of uninsured or underinsured vehicle coverage purchased by the

employee.

4. In any action or proceedings taken by the insurer or the

administrator pursuant to this section, evidence of the amount of

compensation, accident benefits and other expenditures which the insurer,

the uninsured employers' claim fund or a subsequent injury fund have paid

or become obligated to pay by reason of the injury or death of the employee

is admissible. If in such action or proceedings the insurer or the

administrator recovers more than those amounts, the excess must be paid to

the injured employee or his dependents.

5. In any case where the insurer or the administrator is subrogated to

the rights of the injured employee or of his dependents as provided in

subsection 2 or 3, the insurer or the administrator has a lien upon the total

proceeds of any recovery from some person other than the employer,

whether the proceeds of such recovery are by way of judgment, settlement

or otherwise. The injured employee, or in the case of his death his

dependents, are not entitled to double recovery for the same injury,

notwithstanding any act or omission of the employer or a person in the

same employ which was a direct or proximate cause of the employee's

injury.

6. The lien provided for pursuant to subsection 1 or 5 includes the total

compensation expenditure incurred by the insurer, the uninsured

employers' claim fund or a subsequent injury fund for the injured employee

and his dependents.

7. An injured employee, or in the case of death his dependents, or the

attorney or representative of the injured employee or his dependents, shall

notify the insurer, or in the case of claims involving the uninsuredemployers' claim fund or a subsequent injury fund the administrator, in

writing before initiating a proceeding or action pursuant to this section.

8. Within 15 days after the date of recovery by way of actual receipt of

the proceeds of the judgment, settlement or otherwise:

(a) The injured employee or his dependents, or the attorney or

representative of the injured employee or his dependents; and

(b) The third-party insurer,

shall notify the insurer, or in the case of claims involving the uninsured

employers' claim fund or a subsequent injury fund the administrator, of the

recovery and pay to the insurer or the administrator, respectively, the

amount due pursuant to this section together with an itemized statement

showing the distribution of the total recovery. The attorney or

representative of the injured employee or his dependents and the third-party

insurer are jointly and severally liable for any amount to which an insurer is

entitled pursuant to this section if the attorney, representative or third-party

insurer has knowledge of the lien provided for in this section.

9. An insurer shall not sell its lien to a third-party insurer unless the

injured employee or his dependents, or the attorney or representative of the

injured employee or his dependents, refuses to provide to the insurer

information concerning the action against the third party.

10. In any trial of an action by the injured employee, or in the case of

his death by his dependents, against a person other than the employer or a

person in the same employ, the jury must receive proof of the amount of all

payments made or to be made by the insurer or the administrator. The court

shall instruct the jury substantially as follows:

11. To calculate an employer's premium, the employer's account with

litigation incurred in obtaining the recovery, except that the total credit

must not exceed the amount of compensation actually paid or reserved by

12. As used in this section, "third-party insurer" means an insurer that

issued to a third party who is liable for damages pursuant to subsection 2, a

policy of liability insurance the proceeds of which are recoverable pursuant

to this section. The term includes an insurer that issued to an employer a

policy of uninsured or underinsured vehicle coverage.

Sec. 57. (Deleted by amendment.)

Sec. 57.2. NRS 616C.230 is hereby amended to read as follows:

616C.230 1. Compensation is not payable pursuant to the provisions

(a) Caused by the employee's willful intention to injure himself.

(b) Caused by the employee's willful intention to injure another.

(c) Proximately caused by the employee's intoxication. If the employee

was intoxicated at the time of his injury, intoxication must be presumed to

be a proximate cause unless rebutted by evidence to the contrary.

(d) Proximately caused by the employee's use of a controlled substance.

If the employee had any amount of a controlled substance in his system at

the time of his injury for which the employee did not have a current and

lawful prescription issued in his name, the controlled substance must be

presumed to be a proximate cause unless rebutted by evidence to the

contrary.

2. For the purposes of paragraphs (c) and (d) of subsection 1:

(a) The affidavit or declaration of an expert or other person described in

NRS 50.315 is admissible to prove the existence of any alcohol or the

existence, quantity or identity of a controlled substance in an employee's

system. If the affidavit or declaration is to be so used, it must be submitted

in the manner prescribed in NRS 616C.355.

(b) When an examination requested or ordered includes testing for the

3. No compensation is payable for the death, disability or treatment of

an employee if his death is caused by, or insofar as his disability is

aggravated, caused or continued by, an unreasonable refusal or neglect to

submit to or to follow any competent and reasonable surgical treatment or

medical aid. 4. If any employee persists in an unsanitary or injurious practice that

imperils or retards his recovery, or refuses to submit to such medical or

surgical treatment as is necessary to promote his recovery, his

compensation may be reduced or suspended.

5. An injured employee's compensation, other than accident benefits,

must be suspended if:

(a) A physician or chiropractor determines that the employee is unable

to undergo treatment, testing or examination for the industrial injury solely

because of a condition or injury that did not arise out of and in the course

of his employment; and

(b) It is within the ability of the employee to correct the nonindustrial

condition or injury.

The compensation must be suspended until the injured employee is able to

resume treatment, testing or examination for the industrial injury. The

insurer may elect to pay for the treatment of the nonindustrial condition or

injury.

Sec. 57.4. NRS 616C.235 is hereby amended to read as follows:

616C.235 1. Except as otherwise provided in subsection 2:

(a) When the insurer determines that a claim should be closed before all

benefits to which the claimant may be entitled have been paid, the insurer

shall send a written notice of its intention to close the claim to the claimant

by first-class mail addressed to the last known address of the claimant. The

notice must include a statement that if the claimant does not agree with the

determination, he has a right to request a resolution of the dispute pursuant

to NRS 616C.305 and 616C.315 to 616C.385, inclusive. A suitable form

for requesting a resolution of the dispute must be enclosed with the notice.

The closure of a claim is not effective unless notice is given as required by

this subsection.

(b) If the insurer does not receive a request for the resolution of the

dispute, it may close the claim.

(c) Notwithstanding the provisions of NRS 233B.125, if a hearing is

conducted to resolve the dispute, the decision of the hearing officer may be

served by first-class mail.

2. If the medical benefits required to be paid for a claim are less than

Sec. 58. NRS 616C.255 is hereby amended to read as follows:

chapter 686B of NRS.

2. Every employer paying this premium is relieved from furnishing

accident benefits, and the accident benefits must be provided by the

provided in this section. The account provided for accident benefits must

carrier.

Sec. 59. NRS 616C.260 is hereby amended to read as follows:

616C.260 1. All fees and charges for accident benefits must not:

(a) Exceed the fees and charges usually paid in the state for similar

treatment.

(b) Be unfairly discriminatory as between persons legally qualified to

provide the particular service for which the fees or charges are asked.

2. The administrator shall, giving consideration to the fees and charges

being paid in the state, establish a schedule of reasonable fees and charges

allowable for accident benefits provided to injured employees whose

The administrator shall review and revise the schedule on or before

October 1 of each year. The administrator may increase or decrease the

schedule, but shall not increase the schedule by any factor greater than the

such an increase.

3. The administrator may request a health insurer, health maintenance

organization or provider of accident benefits, an agent or employee of such

a person, or an agency of the state, to provide the administrator with such

information concerning fees and charges paid for similar services as he

deems necessary to carry out the provisions of subsection 2. The

administrator shall require a person or entity providing records or reports of

fees charged to provide interpretation and identification concerning the

information delivered. The administrator may impose an administrative fine

of $500 for each refusal to provide the information requested pursuant to

this subsection. 4. The division may adopt reasonable regulations necessary to carry

out the provisions of this section. The regulations must include provisions

concerning:

(a) Standards for the development of the schedule of fees and charges;

(b) The periodic revision of the schedule; and

(c) The monitoring of compliance by providers of benefits with the

adopted schedule of fees and charges.

5. The division shall adopt regulations requiring the utilization of a

system of billing codes as recommended by the American Medical

Association.

Sec. 60. NRS 616C.275 is hereby amended to read as follows:

616C.275 1. If the administrator finds that the employer is furnishing

the requirements of accident benefits in such a manner that there are

reasonable grounds for believing that the health, life or recovery of the

employee is being endangered or impaired thereby, or that an employer has

failed to provide benefits pursuant to NRS 616C.265 for which he has

made arrangements, the administrator may, upon application of the

employee, or upon his own motion, order a change of physicians or

chiropractors or of any other requirements of accident benefits.

2. If the administrator orders a change of physicians or chiropractors or

of any other accident benefits, the cost of the change must be borne by the

insurer.

3. The cause of action of an insured employee against an employer

Secs. 61 and 62. (Deleted by amendment.)

Sec. 62.1. NRS 616C.330 is hereby amended to read as follows:

616C.330 1. The hearing officer shall:

(a) Within 5 days after receiving a request for a hearing, set the hearing

for a date and time within 30 days after his receipt of the request;

(b) Give notice by mail or by personal service to all interested parties to

the hearing at least 15 days before the date and time scheduled; and

(c) Conduct hearings expeditiously and informally.

2. The notice must include a statement that the injured employee may

be represented by a private attorney or seek assistance and advice from the

Nevada attorney for injured workers.

3. If necessary to resolve a medical question concerning an injured

employee's condition, the hearing officer may refer the employee to a

physician or chiropractor chosen by the hearing officer. If the medical

question concerns the rating of a permanent disability, the hearing officer

may refer the employee to a rating physician or chiropractor. The rating

physician or chiropractor must be selected in rotation from the list of

qualified physicians and chiropractors maintained by the administrator

pursuant to subsection 2 of NRS 616C.490, unless the insurer and injured

employee otherwise agree to a rating physician or chiropractor. The insurershall pay the costs of any medical examination requested by the hearing

officer.

reporter and the use of a tape recorder in a hearing.

after:

(a) The hearing; or

(b) He receives a copy of the report from the medical examination he

requested.

format developed by the chief of the hearings division of the department of

administration.

party by mail. He shall include with the notice of his decision the necessary

forms for appealing from the decision.

the hearing officer is not stayed if an appeal from that decision is taken

unless an application for a stay is submitted by a party. If such an

application is submitted, the decision is automatically stayed until a

determination is made on the application. A determination on the

application must be made within 30 days after the filing of the application.

If, after reviewing the application, a stay is not granted by the hearing

officer or an appeals officer, the decision must be complied with within 10

days after the refusal to grant a stay.

Sec. 62.2. NRS 616C.360 is hereby amended to read as follows:

616C.360 1. A stenographic or electronic record must be kept of the

hearing before the appeals officer and the rules of evidence applicable to

contested cases under chapter 233B of NRS apply to the hearing.

2. The appeals officer must hear any matter raised before him on its

merits, including new evidence bearing on the matter.

3. If necessary to resolve a medical question concerning an injured

employee's condition, the appeals officer may refer the employee to a

physician or chiropractor chosen by the appeals officer. If the medical

question concerns the rating of a permanent disability, the appeals officer

may refer the employee to a rating physician or chiropractor. The rating

physician or chiropractor must be selected in rotation from the list of

qualified physicians or chiropractors maintained by the administratorpursuant to subsection 2 of NRS 616C.490, unless the insurer and the

injured employee otherwise agree to a rating physician or chiropractor. The

insurer shall pay the costs of any examination requested by the appeals

officer.

of the record of the hearing at any time before the seventh day after the

hearing. The transcript must be filed within 30 days after the date of the

order unless the appeals officer otherwise orders.

(a) If a transcript is ordered within 7 days after the hearing, within 30

days after the transcript is filed; or

(b) If a transcript has not been ordered, within 30 days after the date of

the hearing.

made by the hearing officer and issue any necessary and proper order to

give effect to his decision.

Sec. 62.3. NRS 616C.390 is hereby amended to read as follows:

616C.390 1. If an application to reopen a claim to increase or

rearrange compensation is made in writing more than 1 year after the date

on which the claim was closed, the insurer shall reopen the claim if:

(a) A change of circumstances warrants an increase or rearrangement of

compensation during the life of the claimant;

(b) The primary cause of the change of circumstances is the injury for

which the claim was originally made; and

(c) The application is accompanied by the certificate of a physician or a

chiropractor showing a change of circumstances which would warrant an

increase or rearrangement of compensation.

2. After a claim has been closed, the insurer, upon receiving an

application and for good cause shown, may authorize the reopening of the

claim for medical investigation only. The application must be accompanied

by a written request for treatment from the physician or chiropractor

treating the claimant, certifying that the treatment is indicated by a change

in circumstances and is related to the industrial injury sustained by the

claimant.

3. If a claimant applies for a claim to be reopened pursuant to

subsection 1 or 2 and a final determination denying the reopening is issued,the claimant shall not reapply to reopen the claim until at least 1 year after

the date on which the final determination is issued.

4. Except as otherwise provided in subsection 5, if an application to

reopen a claim is made in writing within 1 year after the date on which the

claim was closed, the insurer shall reopen the claim only if:

(a) The application is supported by medical evidence demonstrating an

objective change in the medical condition of the claimant; and

(b) There is clear and convincing evidence that the primary cause of the

change of circumstances is the injury for which the claim was originally

made.

5. An application to reopen a claim must be made in writing within 1

year after the date on which the claim was closed if:

(a) The claimant was not off work as a result of the injury; and

(b) The claimant did not receive benefits for a permanent partial

disability.

If an application to reopen a claim to increase or rearrange compensation is

made pursuant to this subsection, the insurer shall reopen the claim if the

requirements set forth in paragraphs (a), (b) and (c) of subsection 1 are met.

6. If an employee's claim is reopened pursuant to this section, he is not

entitled to vocational rehabilitation services or benefits for a temporary

total disability if, before his claim was reopened, he:

(a) Retired; or

(b) Otherwise voluntarily removed himself from the work force,

for reasons unrelated to the injury for which the claim was originally made.

7. One year after the date on which the claim was closed, an insurer

may dispose of the file of a claim authorized to be reopened pursuant to

subsection 5, unless an application to reopen the claim has been filed

pursuant to that subsection.

8. An increase or rearrangement of compensation is not effective

before an application for reopening a claim is made unless good cause is

shown. The insurer shall, upon good cause shown, allow the cost of

emergency treatment the necessity for which has been certified by a

physician or a chiropractor.

may not be reopened pursuant to this section.

10. The provisions of this section apply to any claim for which an

application to reopen the claim or to increase or rearrange compensation is

made pursuant to this section, regardless of the date of the injury or

accident to the claimant. If a claim is reopened pursuant to this section, the

amount of any compensation or benefits provided must be determined in

accordance with the provisions of NRS 616C.425.

Sec. 62.4. NRS 616C.440 is hereby amended to read as follows:

616C.440 1. Except as otherwise provided in this section and NRS

616C.175, every employee in the employ of an employer, within theprovisions of chapters 616A to 616D, inclusive, of NRS, who is injured by

accident arising out of and in the course of employment, or his dependents

as defined in chapters 616A to 616D, inclusive, of NRS, is entitled to

receive the following compensation for permanent total disability:

(a) In cases of total disability adjudged to be permanent, compensation

per month of 66 2/3 percent of the average monthly wage.

(b) If there is a previous disability, as the loss of one eye, one hand, one

foot or any other previous permanent disability, the percentage of disability

for a subsequent injury must be determined by computing the percentage of

the entire disability and deducting therefrom the percentage of the previous

disability as it existed at the time of the subsequent injury, but such a

deduction for a previous award for permanent partial disability must be

made in a reasonable manner and must not be more than the total amount

which was paid for the previous award for permanent partial disability.

(c) If the character of the injury is such as to render the employee so

physically helpless as to require the service of a constant attendant, an

additional allowance may be made so long as such requirements continue,

but the allowance may not be made while the employee is receiving

benefits for care in a hospital or facility for intermediate care pursuant to

2. Except as otherwise provided in NRS 616B.185 and 616B.186, an

injured employee or his dependents are not entitled to accrue or be paid any

benefits for a permanent total disability during the time the injured

employee is incarcerated. The injured employee or his dependents are

entitled to receive such benefits when the injured employee is released from

incarceration if he is certified as permanently totally disabled by a

physician or chiropractor.

3. An employee is entitled to receive compensation for a permanent

total disability only so long as the permanent total disability continues to

exist. The insurer has the burden of proving that the permanent total

disability no longer exists.

4. If an employee who has received compensation in a lump sum for a

permanent partial disability pursuant to NRS 616C.495 is subsequently

determined to be permanently and totally disabled, the compensation for

the permanent total disability must be reduced as follows:

(a) If the employee has not received a minimum lump sum, the

compensation for the permanent total disability an amount equal to the

monthly installment rate for awards for permanent partial disability until

the permanent total disability an amount of not more than 10 percent of therate of compensation for a permanent total disability until the lump sum is

recovered.

The provisions of this subsection are retroactive for all claims for

Sec. 62.5. NRS 616C.475 is hereby amended to read as follows:

616C.475 1. Except as otherwise provided in this section, NRS

616C.175 and 616C.390, every employee in the employ of an employer,

within the provisions of chapters 616A to 616D, inclusive, of NRS, who is

injured by accident arising out of and in the course of employment, or his

dependents, is entitled to receive for the period of temporary total

disability, 66 2/3 percent of the average monthly wage.

2. Except as otherwise provided in NRS 616B.185 and 616B.186, an

injured employee or his dependents are not entitled to accrue or be paid any

benefits for a temporary total disability during the time the injured

employee is incarcerated. The injured employee or his dependents are

entitled to receive such benefits when the injured employee is released from

incarceration if he is certified as temporarily totally disabled by a physician

or chiropractor.

3. If a claim for the period of temporary total disability is allowed, the

first payment pursuant to this section must be issued by the insurer within

14 working days after receipt of the initial certification of disability and

regularly thereafter.

4. Any increase in compensation and benefits effected by the

amendment of subsection 1 is not retroactive.

5. Payments for a temporary total disability must cease when:

(a) A physician or chiropractor determines that the employee is

physically capable of any gainful employment for which the employee is

suited, after giving consideration to the employee's education, training and

experience;

(b) The employer offers the employee light-duty employment or

employment that is modified according to the limitations or restrictions

imposed by a physician or chiropractor pursuant to subsection 7; or

(c) Except as otherwise provided in NRS 616B.185 and 616B.186, the

employee is incarcerated.

6. Each insurer may, with each check that it issues to an injured

employee for a temporary total disability, include a form approved by the

division for the injured employee to request continued compensation for the

temporary total disability.

7. A certification of disability issued by a physician or chiropractor

must:

(a) Include the period of disability and a description of any physical

limitations or restrictions imposed upon the work of the employee;

(b) Specify whether the limitations or restrictions are permanent or

temporary; and (c) Be signed by the treating physician or chiropractor authorized

pursuant to NRS 616B.515 or 616B.527.

8. If certification of disability specifies that the physical limitations or

restrictions are temporary, the employer of the employee at the time of his

accident is not required to comply with NRS 616C.545 to 616C.575,

inclusive, and 616C.590 or the regulations adopted by the division

governing vocational rehabilitation services if the employer offers the

Sec. 63. NRS 616C.475 is hereby amended to read as follows:

616C.475 1. Except as otherwise provided in this section, NRS

616C.175 and 616C.390, every employee in the employ of an employer,

within the provisions of chapters 616A to 616D, inclusive, of NRS, who is

injured by accident arising out of and in the course of employment, or his

dependents, is entitled to receive for the period of temporary total

disability, 66 2/3 percent of the average monthly wage.

2. Except as otherwise provided in NRS 616B.185 and 616B.186, an

injured employee or his dependents are not entitled to accrue or be paid any

benefits for a temporary total disability during the time the injured

employee is incarcerated. The injured employee or his dependents are

entitled to receive such benefits when the injured employee is released from

incarceration if he is certified as temporarily totally disabled by a physician

or chiropractor.

3. If a claim for the period of temporary total disability is allowed, the

first payment pursuant to this section must be issued by the insurer within

14 working days after receipt of the initial certification of disability and

regularly thereafter.

4. Any increase in compensation and benefits effected by the

amendment of subsection 1 is not retroactive.

5. Payments for a temporary total disability must cease when:

(a) A physician or chiropractor determines that the employee is

physically capable of any gainful employment for which the employee is

suited, after giving consideration to the employee's education, training and

experience;

(b) The employer offers the employee light-duty employment or

employment that is modified according to the limitations or restrictions

imposed by a physician or chiropractor pursuant to subsection 7; or (c) Except as otherwise provided in NRS 616B.185 and 616B.186, the

employee is incarcerated.

6. Each insurer may, with each check that it issues to an injured

employee for a temporary total disability, include a form approved by the

division for the injured employee to request continued compensation for the

temporary total disability.

7. A certification of disability issued by a physician or chiropractor

must:

(a) Include the period of disability and a description of any physical

limitations or restrictions imposed upon the work of the employee;

(b) Specify whether the limitations or restrictions are permanent or

temporary; and

(c) Be signed by the treating physician or chiropractor authorized

or restrictions are temporary, the employer of the employee at the time of

his accident is not required to comply with NRS 616C.545 to 616C.575,

inclusive, and 616C.590 or the regulations adopted by the division

governing vocational rehabilitation services if the employer offers the

employee a position that:

required to work; and

(b) Provides a gross wage that is:

(1) If the position is in the same classification of employment, equal

to the gross wage the employee was earning at the time of his injury; or

(2) If the position is not in the same classification of employment,

substantially similar to the gross wage the employee was earning at the time

of his injury.

Secs. 64-68. (Deleted by amendment.)

Sec. 68.2. NRS 616C.490 is hereby amended to read as follows:

616C.490 1. Except as otherwise provided in NRS 616C.175, every

employee, in the employ of an employer within the provisions of chapters

616A to 616D, inclusive, of NRS, who is injured by an accident arising out

of and in the course of employment is entitled to receive the compensation

provided for permanent partial disability. As used in this section,

"disability" and "impairment of the whole man" are equivalent terms.

2. Within 30 days after receiving from a physician or chiropractor a

report indicating that the injured employee may have suffered a permanent

disability and is stable and ratable, the insurer shall schedule an

accordance with the American Medical Association's Guides to the

Evaluation of Permanent Impairment as adopted and supplemented by the

division pursuant to NRS 616C.110.

from the list of qualified physicians and chiropractors designated by the

administrator, according to their area of specialization and the order in

which their names appear on the list.

3. At the request of the insurer, the injured employee shall, before an

evaluation by a rating physician or chiropractor is performed, notify the

insurer of:

(a) Any previous evaluations performed to determine the extent of any

of the employee's disabilities; and

(b) Any previous injury, disease or condition sustained by the employee

which is relevant to the evaluation performed pursuant to this section.

The notice must be on a form approved by the administrator and provided

to the injured employee by the insurer at the time of the insurer's request.

4. Unless the regulations adopted pursuant to NRS 616C.110 provide

otherwise, a rating evaluation must include an evaluation of the loss of

motion, sensation and strength of an injured employee if the injury is of a

type that might have caused such a loss. No factors other than the degree of

physical impairment of the whole man may be considered in calculating the

5. The rating physician or chiropractor shall provide the insurer with

his evaluation of the injured employee. After receiving the evaluation, the

insurer shall, within 14 days, provide the employee with a copy of the

evaluation and notify the employee:

(a) Of the compensation to which he is entitled pursuant to this section;

or

(b) That he is not entitled to benefits for permanent partial disability.

6. Each 1 percent of impairment of the whole man must be

compensated by a monthly payment:

(a) Of 0.5 percent of the claimant's average monthly wage for injuries

sustained before July 1, 1981;

(b) Of 0.6 percent of the claimant's average monthly wage for injuries

(c) Of 0.54 percent of the claimant's average monthly wage for injuries

Compensation must commence on the date of the injury or the day

following the termination of temporary disability compensation, if any,

whichever is later, and must continue on a monthly basis for 5 years or until

the claimant is 70 years of age, whichever is later.

7. Compensation benefits may be paid annually to claimants who will

be receiving less than $100 a month. 8. Where there is a previous disability, as the loss of one eye, one

hand, one foot, or any other previous permanent disability, the percentage

of disability for a subsequent injury must be determined by computing the

percentage of the entire disability and deducting therefrom the percentage

of the previous disability as it existed at the time of the subsequent injury.

9. The division may adopt schedules for rating permanent disabilities

resulting from injuries sustained before July 1, 1973, and reasonable

regulations to carry out the provisions of this section.

10. The increase in compensation and benefits effected by the

amendment of this section is not retroactive for accidents which occurred

before July 1, 1973.

11. This section does not entitle any person to double payments for the

death of an employee and a continuation of payments for a permanent

partial disability, or to a greater sum in the aggregate than if the injury had

been fatal.

Sec. 68.4. NRS 616C.555 is hereby amended to read as follows:

616C.555 1. A vocational rehabilitation counselor shall develop a

plan for a program of vocational rehabilitation for each injured employee

who is eligible for vocational rehabilitation services pursuant to NRS

616C.590. The counselor shall work with the insurer and the injured

employee to develop a program that is compatible with the injured

employee's age, sex and physical condition.

2. If the counselor determined in the written assessment developed

pursuant to NRS 616C.550 that the injured employee has existing

marketable skills, the plan must consist of job placement assistance only.

When practicable, the goal of job placement assistance must be to aid the

employee in finding a position which pays a gross wage that is equal to or

greater than 80 percent of the gross wage that he was earning at the time of

his injury. An injured employee must not receive job placement assistance

that he is eligible only for job placement assistance because:

(a) He was physically capable of returning to work; or

(b) It was determined that he had existing marketable skills.

3. If the counselor determined in the written assessment developed

pursuant to NRS 616C.550 that the injured employee does not have

existing marketable skills, the plan must consist of a program which trains

or educates the injured employee and provides job placement assistance.

Except as otherwise provided in NRS 616C.560, such a program must not

exceed:

(a) If the injured employee has incurred a permanent physical

(b) If the injured employee has incurred a permanent physical

(c) If the injured employee has incurred a permanent physical

must be determined pursuant to NRS 616C.490.

4. A plan for a program of vocational rehabilitation must comply with

the requirements set forth in NRS 616C.585.

5. A program of vocational rehabilitation must not commence before

the treating physician or chiropractor, or an examining physician or

chiropractor determines that the injured employee is capable of safely

participating in the program.

6. If, based upon the opinion of a treating or an examining physician or

chiropractor, the counselor determines that an injured employee is not

eligible for vocational rehabilitation services, the counselor shall provide a

copy of the opinion to the injured employee, the injured employee's

employer and the insurer.

7. A plan for a program of vocational rehabilitation must be signed by

a certified vocational rehabilitation counselor.

8. If an initial program of vocational rehabilitation pursuant to this

section is unsuccessful, an injured employee may submit a written request

for the development of a second program of vocational rehabilitation which

relates to the same injury. An insurer shall authorize a second program for

an injured employee upon good cause shown.

9. If a second program of vocational rehabilitation pursuant to

subsection 8 is unsuccessful, an injured employee may submit a written

request for the development of a third program of vocational rehabilitation

which relates to the same injury. The insurer, with the approval of the

employer who was the injured employee's employer at the time of his

injury, may authorize a third program for the injured employee. If such an

employer has terminated operations, his approval is not required for

authorization of a third program. An insurer's determination to authorize or

deny a third program of vocational rehabilitation may not be appealed.

10. The division shall adopt regulations to carry out the provisions of

this section. The regulations must specify the contents of a plan for a

program of vocational rehabilitation.

Sec. 68.5. NRS 616C.560 is hereby amended to read as follows:

616C.560 1. A program for vocational rehabilitation developed

pursuant to subsection 3 of NRS 616C.555 may be extended:

(a) Without condition or limitation, by the insurer at his sole discretion;

or

(b) In accordance with this section if:

(1) The injured employee makes a written request to extend the

program within 30 days after he receives written notification that he is

eligible for vocational rehabilitation services; and

(2) There are exceptional circumstances which make it unlikely that

the injured employee will obtain suitable gainful employment as a result of

vocational rehabilitation which is limited to the period for which he is

eligible.An insurer's determination to grant or deny an extension pursuant to

paragraph (a) may not be appealed.

2. If an injured employee has incurred a permanent physical

impairment of less than 11 percent:

(a) The total length of the program, including any extension, must not

(b) "Exceptional circumstances" shall be deemed to exist for the

purposes of paragraph (b) of subsection 1, if:

(1) The injured employee lacks work experience, training, education

or other transferable skills for an occupation which he is physically capable

of performing; or

(2) Severe physical restrictions as a result of the industrial injury have

been imposed by a physician which significantly limit the employee's

occupational opportunities.

3. If an injured employee has incurred a permanent physical

impairment of 11 percent or more:

(a) The total length of the program, including any extension, must not

(b) "Exceptional circumstances" shall be deemed to exist for the

purposes of paragraph (b) of subsection 1, if the injured employee has

suffered:

(1) The total and permanent loss of sight of both eyes;

(2) The loss by separation of a leg at or above the knee;

(3) The loss by separation of a hand at or above the wrist;

(4) An injury to the head or spine which results in permanent and

complete paralysis of both legs, both arms or a leg and an arm;

(5) An injury to the head which results in a severe cognitive

functional impairment which may be established by a nationally recognized

form of objective psychological testing;

(6) The loss by separation of an arm at or above the elbow and the

loss by separation of a leg at or above the knee;

(7) An injury consisting of second or third degree burns on 50 percent

or more of the body, both hands or the face;

(8) A total bilateral loss of hearing;

(9) The total loss or significant and permanent impairment of speech;

or

(10) A permanent physical impairment of 50 percent or more

determined pursuant to NRS 616C.490, if the severity of the impairment

limits the injured employee's gainful employment to vocations that are

primarily intellectual and require a longer program of education.

4. The insurer shall deliver a copy of its decision granting or denying

an extension to the injured employee and the employer. Except as

otherwise provided in this section, the decision shall be deemed to be a

final determination of the insurer for the purposes of NRS 616C.315.

Sec. 68.7. NRS 616C.580 is hereby amended to read as follows:

2. An injured employee, who:

(a) Is eligible for vocational rehabilitation services pursuant to NRS

616C.590; and

may execute a written agreement with the insurer which provides for the

payment of compensation in a lump sum in lieu of the provision of

vocational rehabilitation services pursuant to NRS 616C.595. The amount

of the lump sum must not exceed $15,000.

to which he is entitled pursuant to NRS 616C.545 to 616C.575, inclusive,

Sec. 68.8. NRS 616D.120 is hereby amended to read as follows:

616D.120 1. Except as otherwise provided in this section, if the

administrator determines that an insurer, organization for managed care,

health care provider, third-party administrator or employer has:

(a) Through fraud, coercion, duress or undue influence:

(1) Induced a claimant to fail to report an accidental injury or

occupational disease;

(2) Persuaded a claimant to settle for an amount which is less than

reasonable;

(3) Persuaded a claimant to settle for an amount which is less than

reasonable while a hearing or an appeal is pending; or

(4) Persuaded a claimant to accept less than the compensation found

to be due him by a hearing officer, appeals officer, court of competent

jurisdiction, written settlement agreement, written stipulation or the

division when carrying out its duties pursuant to chapters 616A to 617,

inclusive, of NRS; (b) Refused to pay or unreasonably delayed payment to a claimant of

compensation found to be due him by a hearing officer, appeals officer,

court of competent jurisdiction, written settlement agreement, written

stipulation or the division when carrying out its duties pursuant to chapters

616A to 616D, inclusive, or chapter 617 of NRS, if the refusal or delay

occurs:

(1) Later than 10 days after the date of the settlement agreement or

stipulation;

(2) Later than 30 days after the date of the decision of a court, hearing

officer, appeals officer or division, unless a stay has been granted; or

(3) Later than 10 days after a stay of the decision of a court, hearing

officer, appeals officer or division has been lifted;

(c) Refused to process a claim for compensation pursuant to chapters

616A to 616D, inclusive, or chapter 617 of NRS;

(d) Made it necessary for a claimant to initiate proceedings pursuant to

chapters 616A to 616D, inclusive, or chapter 617 of NRS for compensation

found to be due him by a hearing officer, appeals officer, court of

competent jurisdiction, written settlement agreement, written stipulation or

the division when carrying out its duties pursuant to chapters 616A to

616D, inclusive, or chapter 617 of NRS;

(e) Failed to comply with the division's regulations covering the

payment of an assessment relating to the funding of costs of administration

of chapters 616A to 617, inclusive, of NRS;

(f) Failed to provide or unreasonably delayed payment to an injured

employee or reimbursement to an insurer pursuant to NRS 616C.165; or

(g) Intentionally failed to comply with any provision of, or regulation

adopted pursuant to, this chapter or chapter 616A, 616B, 616C or 617 of

NRS,

the administrator shall impose an administrative fine of $1,000 for each

initial violation, or a fine of $10,000 for a second or subsequent violation.

2. Except as otherwise provided in chapters 616A to 616D, inclusive,

or chapter 617 of NRS, if the administrator determines that an insurer,

organization for managed care, health care provider, third-party

administrator or employer has failed to comply with any provision of this

chapter or chapter 616A, 616B, 616C or 617 of NRS, or any regulation

adopted pursuant thereto, the administrator may take any of the following

actions:

(a) Issue a notice of correction for:

(1) A minor violation, as defined by regulations adopted by the

division; or

(2) A violation involving the payment of compensation in an amount

which is greater than that required by any provision of this chapter or

chapter 616A, 616B, 616C or 617 of NRS, or any regulation adopted

pursuant thereto.

The notice of correction must set forth with particularity the violation

the administrator to modify or negate in any manner a determination or any

portion of a determination made by a hearing officer, appeals officer or

court of competent jurisdiction or a provision contained in a written

settlement agreement or written stipulation.

(b) Impose an administrative fine for:

(1) A second or subsequent violation for which a notice of correction

has been issued pursuant to paragraph (a); or

(2) Any other violation of this chapter or chapter 616A, 616B, 616C

or 617 of NRS, or any regulation adopted pursuant thereto, for which a

notice of correction may not be issued pursuant to paragraph (a).

The fine imposed may not be greater than $250 for an initial violation, or

more than $1,000 for any second or subsequent violation.

(c) Order a plan of corrective action to be submitted to the administrator

within 30 days after the date of the order.

3. If the administrator determines that a violation of any of the

provisions of paragraphs (a) to (d), inclusive, of subsection 1 has occurred,

the administrator shall order the insurer, organization for managed care,

health care provider, third-party administrator or employer to pay to the

benefit penalty is for the benefit of the claimant and must be paid directly

of the payment of the benefit penalty must be submitted to the administrator

within 10 days after the date of his determination unless an appeal is filed

pursuant to NRS 616D.140. Any compensation to which the claimant may

otherwise be entitled pursuant to chapters 616A to 616D, inclusive, or

chapter 617 of NRS must not be reduced by the amount of any benefit

penalty received pursuant to this subsection. 4. In addition to any fine or benefit penalty imposed pursuant to this

section, the administrator may assess against an insurer who violates any

regulation concerning the reporting of claims expenditures used to calculate

an assessment an administrative penalty of up to twice the amount of any

underpaid assessment.

5. If:

(a) The administrator determines that a person has violated any of the

provisions of NRS 616D.200, 616D.220, 616D.240, 616D.300, 616D.310

or 616D.350 to 616D.440, inclusive; and

(b) The fraud control unit for industrial insurance established pursuant

to NRS 228.420 notifies the administrator that the unit will not prosecute

the person for that violation,

the administrator shall impose an administrative fine of not more than

$10,000.

6. Two or more fines of $1,000 or more imposed in 1 year for acts

enumerated in subsection 1 must be considered by the commissioner as

evidence for the withdrawal of:

(a) A certificate to act as a self-insured employer.

(b) A certificate to act as an association of self-insured public or private

employers.

(c) A certificate of registration as a third-party administrator.

7. The commissioner may, without complying with the provisions of

NRS 616B.327 or 616B.431, withdraw the certification of a self-insured

employer, association of self-insured public or private employers or third-

party administrator if, after a hearing, it is shown that the self-insured

employer, association of self-insured public or private employers or third-

party administrator violated any provision of subsection 1.

Sec. 69. 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:

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

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. 70. NRS 616D.210 is hereby amended to read as follows:

616D.210 1. Any person who:

(a) Is the legal or beneficial owner of 25 percent or more of a business

which terminates operations while owing a premium, interest or penalty to

another person to become, the legal or beneficial owner of 25 percent or

more of a new business engaging in similar operations; or

(b) Knowingly aids or abets another person in carrying out such

conduct,

is liable in a civil action for the payment of any premium, interest and

such conduct.

business which engages in the conduct described in subsection 1 unless the

premium and any interest and penalties owed to the prior insurer have been

paid to that insurer.

3. As used in this section, "business" includes, but is not limited to, a

association or private corporation.

Sec. 71. NRS 616D.250 is hereby amended to read as follows:

public or private employers or an employer insured by a private carrier who

refuses to submit his books, records and payroll to the administrator for

inspection as provided by NRS 616A.485, is subject to a penalty of $1,000

for each offense, to be collected by a civil action in the name of the

administrator.

misdemeanor.

Sec. 72. NRS 616D.260 is hereby amended to read as follows:

616D.260 1. If an employer refuses to produce any book, record,

payroll report or other document in conjunction with an audit conducted by

employer's premium, the administrator may issue a subpoena to require the

production of that document.

2. If an employer refuses to produce any document as required by the

subpoena, the administrator may report to the district court by petition,

setting forth that:

(a) Due notice has been given of the time and place of the production of

the document;

(b) The employer has been subpoenaed by the administrator pursuant to

this section; and

(c) The employer has failed or refused to produce the document required

by the subpoena,

and asking for an order of the court compelling the employer to produce the

document.

3. Upon such petition, the court shall enter an order directing the

employer to appear before the court at a time and place to be fixed by the

court in its order, the time to be not more than 10 days after the date of the

order, and to show cause why he has not produced the document. A

certified copy of the order must be served upon the employer. 4. If it appears to the court that the subpoena was regularly issued by

the administrator, the court shall enter an order that the employer produce

the required document at the time and place fixed in the order. Failure to

obey the order constitutes contempt of court.

Sec. 73. NRS 616D.400 is hereby amended to read as follows:

616D.400 1. A person who, upon submitting a charge for or upon

receiving payment for accident benefits pursuant to chapters 616A to 616D,

inclusive, or chapter 617 of NRS, intentionally fails to maintain such

records as are necessary to disclose fully the nature of the accident benefits

for which a charge was submitted or payment was received, or such records

as are necessary to disclose fully all income and expenditures upon which

rates of payment were based, for at least 5 years after the date on which

payment was received, is guilty of a gross misdemeanor.

2. A person who fails to make such records available to the attorney

of a gross misdemeanor.

3. A person who intentionally destroys such records within 5 years

after the date payment was received is guilty of a category D felony and

shall be punished as provided in NRS 193.130.

Sec. 74. NRS 616D.430 is hereby amended to read as follows:

616D.430 1. A person who receives a payment or benefit to which he

is not entitled by reason of a violation of any of the provisions of NRS

616D.300, 616D.370, 616D.380, 616D.390, 616D.400 or 616D.410 is

liable in a civil action commenced by the attorney general for:

(a) An amount equal to three times the amount unlawfully obtained;

(b) Not less than $5,000 for each act of deception;

(c) An amount equal to three times the total amount of the reasonable

expenses incurred by the state in enforcing this section; and

(d) Payment of interest on the amount of the excess payment at the rate

fixed pursuant to NRS 99.040 for the period from the date upon which

payment was made to the date upon which repayment is made.

2. A criminal action need not be brought against a person who receives

a payment or benefit to which he is not entitled by reason of a violation of

any of the provisions of NRS 616D.300, 616D.370, 616D.380, 616D.390,

616D.400 or 616D.410 before civil liability attaches under this section.

3. A person who unknowingly accepts a payment in excess of the

amount to which he is entitled is liable for the repayment of the excess

amount. It is a defense to any action brought pursuant to this subsection

that the person returned or attempted to return the amount which was in

excess of that to which he was entitled within a reasonable time after

receiving it.

4. Any repayment of money collected pursuant to paragraph (a) or (d)

of subsection 1 must be paid to the insurer who made the payment to the

person who violated the provisions of this section. Any payment made to an

5. Any penalty collected pursuant to paragraph (b) or (c) of subsection

1 must be used to pay the salaries and other expenses of the fraud control

unit for industrial insurance established pursuant to NRS 228.420. Any

money remaining at the end of any fiscal year does not revert to the state

general fund.

Sec. 75. NRS 617.1665 is hereby amended to read as follows:

to receive the benefits of this chapter and to provide and secure

compensation for his employees, shall pay premiums according to the

classification and rules filed by the advisory organization, and the rates

filed by the insurers, with the commissioner.

Sec. 76. NRS 617.1675 is hereby amended to read as follows:

617.1675 1. There is hereby created in the state general fund the

account for pensions for silicosis, diseases related to asbestos and other

disabilities. The account consists of money appropriated to the account by

the legislature and interest and income earned pursuant to subsection 2.

2. The interest and income earned on money in the account, after

deducting any applicable charges, must be credited to the account.

3. The account must be administered by the state treasurer. The money

in the account may be expended only for the purposes set forth in NRS

617.168 and none of the money in the account may be expended for

administrative purposes. The expenditures must be made on claims

are paid.

Sec. 77. NRS 617.168 is hereby amended to read as follows:

617.168 1. The money in the account for pensions for silicosis,

diseases related to asbestos and other disabilities must be expended to

provide:

(a) The continuing benefits described in subsection 6 of NRS 617.460;

(b) The increased benefits for permanent total disability described in

NRS 616C.455; and

(c) The increased death benefits described in NRS 616C.510.

2. Upon receiving a monthly statement showing the amount of benefits

to be paid for the month to the persons entitled thereto pursuant to

subsection 1, the state treasurer shall pay an amount equal to that shown on

3. At such time as all claimants, their dependents, widows, widowers,

surviving children or surviving parent who are provided benefits or

increased benefits pursuant to the provisions of subsection 1 are no longer

eligible for those benefits, the balance of the account must revert to the

state general fund.

Sec. 78. NRS 617.225 is hereby amended to read as follows:

617.225 1. A sole proprietor may elect to be included within the

terms, conditions and provisions of this chapter to secure for himselfcompensation equivalent to that to which an employee is entitled for any

occupational disease contracted by the sole proprietor which arises out of

and in the course of his self-employment by filing a written notice of

2. A sole proprietor who elects to accept the terms, conditions and

provisions of this chapter shall submit to a physical examination by a

consider it for rating purposes. The cost of the physical examination must

be paid by the sole proprietor.

3. A sole proprietor who elects to submit to the provisions of this

manner and amounts as may be prescribed by the regulations of the

commissioner.

4. If a sole proprietor fails to pay all premiums required by the

regulations of the commissioner, the failure operates as a rejection of this

chapter.

5. A sole proprietor who elects to be included under the provisions of

this chapter remains subject to all terms, conditions and provisions of this

withdraws his election.

6. For purposes of this chapter, a sole proprietor shall be deemed to be

an employee receiving a wage of $300 per month.

Sec. 79. NRS 617.342 is hereby amended to read as follows:

617.342 1. An employee or, in the event of the employee's death,

one of his dependents, shall provide written notice of an occupational

disease for which compensation is payable under this chapter to the

employer of the employee as soon as practicable, but within 7 days after the

employee or dependent has knowledge of the disability and its relationship

to the employee's employment.

2. The notice required by subsection 1 must:

(a) Be on a form prescribed by the administrator. The form must allow

the employee or his dependent to describe briefly the circumstances which

caused the disease or death.

(b) Be signed by the employee or by a person on his behalf, or in the

event of the employee's death, by one of his dependents or by a person

acting on behalf of the dependent.

(c) Include an explanation of the procedure for filing a claim for

compensation.

(d) Be prepared in duplicate so that the employee or his dependent and

the employer can retain a copy of the notice.

3. Upon receipt of the notice required by subsection 1, the employer,

the employee's supervisor or the agent of the employer who was in charge

of the type of work performed by the employee shall sign the notice. Thesignature of the employer, the supervisor or the employer's agent is an

acknowledgment of the receipt of the notice and shall not be deemed to be

a waiver of any of the employer's defenses or rights.

4. An employer shall maintain a sufficient supply of the forms required

to file the notice required by subsection 1 for use by his employees.

5. An employer shall retain any notice provided pursuant to subsection

1 for 3 years after the date of the receipt of the notice. An employer insured

Sec. 80. (Deleted by amendment.)

Sec. 80.5. NRS 617.366 is hereby amended to read as follows:

out of and in the course of his current or past employment; and

which aggravates, precipitates or accelerates his preexisting condition,

accelerates the occupational disease in a manner that does not arise out of

and in the course of his employment,

Sec. 81. NRS 617.430 is hereby amended to read as follows:

617.430 1. Every employee who is disabled or dies because of an

occupational disease, as defined in this chapter, arising out of and in the

course of employment in the State of Nevada, or the dependents, as that

term is defined in chapters 616A to 616D, inclusive, of NRS, of an

employee whose death is caused by an occupational disease, are entitled to

the compensation provided by those chapters for temporary disability,

permanent disability or death, as the facts may warrant, subject to the

modifications mentioned in this chapter. 2. In cases of tenosynovitis, prepatellar bursitis, and infection or

inflammation of the skin, no person is entitled to such compensation unless

for 90 days next preceding the contraction of the occupational disease the

employee has been:

(a) A resident of the State of Nevada; or

(b) Employed by a self-insured employer, a member of an association of

Sec. 82. (Deleted by amendment.)

Sec. 83. NRS 218.2754 is hereby amended to read as follows:

218.2754 1. The summary of each bill or joint resolution introduced

in the legislature must include the statement:

(a) "Fiscal Note: Effect on Local Government: Yes,"

whichever is appropriate; and

whichever is appropriate.

2. The legislative counsel shall consult the fiscal analysis division to

secure the appropriate information for summaries of bills and joint

resolutions.

Sec. 84. NRS 218.5377 is hereby amended to read as follows:

218.5377 The committee:

1. May review issues related to workers' compensation.

2. May study the desirability of establishing a preferred employee

program which provides exemptions from the payment of premiums and

other financial incentives for employers who provide suitable employment

for injured employees and any other program for returning injured

employees to work.

3. May review the manner used by the division of industrial relations

of the department of business and industry to rate physical impairments of

injured employees.

carrying out its duties pursuant to this section.

research, investigations, hearings and reviews.

Sec. 85. NRS 218.610 is hereby amended to read as follows:

218.610 As used in NRS 218.610 to 218.735, inclusive, "agency of the

Sec. 86. NRS 218.737 is hereby amended to read as follows:

218.737 As used in NRS 218.740 to 218.893, inclusive, "agency of the

branch of government.

Sec. 86.1. Chapter 223 of NRS is hereby amended by adding thereto

the provisions set forth as sections 86.2 to 86.9, inclusive, of this act.

Sec. 87. NRS 228.420 is hereby amended to read as follows:

228.420 1. The attorney general has primary jurisdiction to

investigate and prosecute any alleged criminal violations of NRS

616D.200, 616D.220, 616D.240, 616D.300, 616D.310, 616D.350 to

616D.440, inclusive, and any fraud in the administration of chapter 616A,

616B, 616C, 616D or 617 of NRS or in the provision of compensation

required by chapters 616A to 617, inclusive, of NRS.

2. For this purpose, the attorney general shall establish within his office

a fraud control unit for industrial insurance. The unit must consist of such

persons as are necessary to carry out the duties set forth in this section,

including, without limitation, an attorney, an auditor and an investigator.

3. The attorney general, acting through the unit established pursuant to

subsection 2: (a) Is the single state agency responsible for the investigation and

prosecution of any alleged criminal violations of NRS 616D.200,

616D.220, 616D.240, 616D.300, 616D.310, 616D.350 to 616D.440,

inclusive, and any fraud in the administration of chapter 616A, 616B,

616C, 616D or 617 of NRS or in the provision of compensation required

by chapters 616A to 617, inclusive, of NRS;

division of industrial relations of the department of business and industry,

self-insured employers, associations of self-insured public or private

employers, private carriers and other state and federal investigators and

prosecutors in coordinating state and federal investigations and

prosecutions involving violations of NRS 616D.200, 616D.220, 616D.240,

616D.300, 616D.310, 616D.350 to 616D.440, inclusive, and any fraud in

the administration of chapter 616A, 616B, 616C, 616D or 617 of NRS or in

the provision of compensation required by chapters 616A to 617, inclusive,

of NRS;

(c) Shall protect the privacy of persons who are eligible to receive

compensation pursuant to the provisions of chapter 616A, 616B, 616C,

616D or 617 of NRS and establish procedures to prevent the misuse of

information obtained in carrying out this section; and

(d) May, upon request, inspect the records of any self-insured employer,

the department of business and industry and the state contractors' board to

investigate any alleged violation of any of the provisions of NRS

616D.200, 616D.220, 616D.240, 616D.300, 616D.310, 616D.350 to

616D.440, inclusive, or any fraud in the administration of chapter 616A,

616B, 616C, 616D or 617 of NRS or in the provision of compensation

required by chapters 616A to 617, inclusive, of NRS.

a criminal action without leave of court, and he has exclusive charge of the

conduct of the prosecution.

5. The attorney general shall report the name of any person who has

been convicted of violating any of the provisions of NRS 616D.200,

616D.220, 616D.240, 616D.300, 616D.310, 616D.350 to 616D.440,

inclusive, to the occupational board that issued the person's license or

certificate to provide medical care, remedial care or other services in this

state.

6. The attorney general shall establish a toll-free telephone number for

persons to report information regarding alleged violations of any of the

provisions of NRS 616D.200, 616D.220, 616D.240, 616D.300, 616D.310,

616D.350 to 616D.440, inclusive, and any fraud in the administration of

chapter 616A, 616B, 616C, 616D or 617 of NRS or in the provision of

compensation required by chapters 616A to 617, inclusive, of NRS.

7. As used in this section

: (a) "Association of self-insured private employers" has the meaning

ascribed to it in NRS 616A.050.

(b) "Association of self-insured public employers" has the meaning

ascribed to it in NRS 616A.055.

(c) "Private carrier" has the meaning ascribed to it in NRS 616A.290.

(d) "Self-insured employer" has the meaning ascribed to it in NRS

616A.305.

Sec. 88. NRS 232.550 is hereby amended to read as follows:

232.550 As used in NRS 232.550 to 232.700, inclusive, unless the

context otherwise requires:

1. "Administrator" means the administrator of the division.

2. "Director" means the director of the department of business and

industry.

3. "Division" means the division of industrial relations of the

department of business and industry.

4. "Insurer" includes:

Sec. 89. NRS 232.680 is hereby amended to read as follows:

232.680 1. The cost of carrying out the provisions of NRS 232.550

to 232.700, inclusive, and of supporting the division, a full-time employee

of the legislative counsel bureau, the fraud control unit for industrial

insurance established pursuant to NRS 228.420 and the legislative

committee on workers' compensation created pursuant to NRS 218.5375,

which establish formulas of assessment which result in an equitable

distribution of costs among the insurers and employers who provide

accident benefits for injured employees. The formulas may utilize actual

expenditures for claims. 2. Federal grants may partially defray the costs of the division.

3. Assessments made against insurers by the division after the adoption

of regulations must be used to defray all costs and expenses of

administering the program of workers' compensation, including the

payment of:

(a) All salaries and other expenses in administering the division,

including the costs of the office and staff of the administrator.

(b) All salaries and other expenses of administering NRS 616A.435 to

616A.460, inclusive, the offices of the hearings division of the department

of administration and the programs of self-insurance and review of

premium rates by the commissioner of insurance.

(c) The salary and other expenses of a full-time employee of the

legislative counsel bureau whose principal duties are limited to conducting

research and reviewing and evaluating data related to industrial insurance.

(d) All salaries and other expenses of the fraud control unit for industrial

insurance established pursuant to NRS 228.420.

(e) Claims against uninsured employers arising from compliance with

NRS 616C.220 and 617.401.

(f) All salaries and expenses of the members of the legislative committee

on workers' compensation and any other expenses incurred by the

committee in carrying out its duties pursuant to NRS 218.5375 to

218.5378, inclusive.

Sec. 90. NRS 242.131 is hereby amended to read as follows:

242.131 1. The department shall provide state agencies and elected

agencies and officers must use those services and equipment, except as

otherwise provided in subsection 2.

2. The following agencies may negotiate with the department for its

services or the use of its equipment, subject to the provisions of this

chapter, and the department shall provide those services and the use of that

equipment as may be mutually agreed:

(a) The court administrator;

(b) The department of motor vehicles and public safety;

(c) The department of transportation;

(d) The employment security division of the department of employment,

training and rehabilitation;

(e) The division of wildlife of the state department of conservation and

natural resources;

(f) The legislative counsel bureau;

commission; and

3. Any state agency or elected state officer who uses the services of the

department and desires to withdraw substantially from that use must apply

to the director for approval. The application must set forth justification for

the withdrawal. If the director denies the application, the agency or officer

must:

(a) If the legislature is in regular or special session, obtain the approval

of the legislature by concurrent resolution.

(b) If the legislature is not in regular or special session, obtain the

approval of the interim finance committee. The director shall, within 45

days after receipt of the application, forward the application together with

his recommendation for approval or denial to the interim finance

committee. The interim finance committee has 45 days after the application

and recommendation are submitted to its secretary within which to consider

the application. Any application which is not considered by the committee

within the 45-day period shall be deemed approved.

4. If the demand for services or use of equipment exceeds the

capability of the department to provide them, the department may contract

with other agencies or independent contractors to furnish the required

services or use of equipment and is responsible for the administration of the

contracts.

Sec. 91. NRS 244.33505 is hereby amended to read as follows:

244.33505 1. In a county in which a license to engage in a business is

required, the board of county commissioners shall not issue such a license

unless the applicant for the license signs an affidavit affirming that the

business:

private carrier as required pursuant to chapters 616A to 616D, inclusive,

and chapter 617 of NRS;

(b) Maintains a valid certificate of self-insurance pursuant to chapters

616A to 616D, inclusive, of NRS;

(c) Is a member of an association of self-insured public or private

employers; or

(d) Is not subject to the provisions of chapters 616A to 616D, inclusive,

or chapter 617 of NRS.

2. In a county in which such a license is not required, the board of

county commissioners shall require a business, when applying for a post

office box, to submit to the board the affidavit required by subsection 1.

3. Each board of county commissioners shall submit to the

administrator of the division of industrial relations of the department of

business and industry monthly a list of the names of those businesses which

have submitted an affidavit required by subsections 1 and 2.

4. Upon receiving an affidavit required by this section, a board of

county commissioners shall provide the owner of the business with adocument setting forth the rights and responsibilities of employers and

employees to promote safety in the workplace, in accordance with

regulations adopted by the division of industrial relations of the department

of business and industry pursuant to NRS 618.376.

Sec. 92. NRS 268.0955 is hereby amended to read as follows:

268.0955 1. In an incorporated city in which a license to engage in a

business is required, the city council or other governing body of the city

shall not issue such a license unless the applicant for the license signs an

affidavit affirming that the business:

private carrier as required pursuant to chapters 616A to 616D, inclusive,

and chapter 617 of NRS;

(b) Maintains a valid certificate of self-insurance pursuant to chapters

616A to 616D, inclusive, of NRS;

(c) Is a member of an association of self-insured public or private

employers; or

(d) Is not subject to the provisions of chapters 616A to 616D, inclusive,

or chapter 617 of NRS.

2. In an incorporated city in which such a license is not required, the

city council or other governing body of the city shall require a business,

when applying for a post office box, to submit to the governing body the

affidavit required by subsection 1.

3. Each city council or other governing body of an incorporated city

shall submit to the administrator of the division of industrial relations of the

department of business and industry monthly a list of the names of those

businesses which have submitted an affidavit required by subsections 1

and 2.

4. Upon receiving an affidavit required by this section, the city council

or other governing body of an incorporated city shall provide the applicant

with a document setting forth the rights and responsibilities of employers

and employees to promote safety in the workplace in accordance with

regulations adopted by the division of industrial relations of the department

of business and industry pursuant to NRS 618.376.

Sec. 93. NRS 277.185 is hereby amended to read as follows:

277.185 1. The agencies of this state, and the local governments

within this state, that collect taxes or fees from persons engaged in

business, or require such persons to provide related information and forms,

shall coordinate their collection of information and forms so that each

enterprise is required to furnish information in as few separate reports as

possible. This section applies specifically, but is not limited, to the

department of taxation, the employment security division of the department

of employment, training and rehabilitation, the state department of

and the counties and cities that require a business license.

2. On or before October 1 of each year, the executive director of the

department of taxation shall convene the heads, or persons designated bythe respective heads, of the state agencies named in subsection 1 and the

appropriate officers of the cities and counties that require a business

license. The secretary of state, a representative of the Nevada Association

of Counties and a representative of the Nevada League of Cities must be

invited to attend the meeting. If he knows, or is made aware by persuasive

information furnished by any enterprise required to pay a tax or fee or to

provide information, that any other state or local agency needs to

participate to accomplish the purpose set forth in subsection 1, he shall also

invite the head of that agency or the appropriate officer of the local

government, and the person so invited shall attend. The director of the

department of information technology shall assist in effecting the

consolidation of the information and the creation of the forms.

3. The persons so assembled shall design and modify, as appropriate,

the necessary joint forms for use during the ensuing fiscal year to

accomplish the purpose set forth in subsection 1. If any dispute cannot be

resolved by the participants, it must be referred to the Nevada tax

commission for a decision that is binding on all parties.

4. On or before February 15 of each year, the executive director of the

department of taxation shall submit a report to the director of the legislative

counsel bureau for presentation to the legislature. The report must include a

summary of the annual meeting held during the immediately preceding year

and any recommendations for proposed legislation.

5. The provisions of chapter 241 of NRS apply to a meeting held

pursuant to this section. The executive director of the department of

taxation shall provide members of the staff of the department of taxation to

assist in complying with the requirements of chapter 241 of NRS.

Sec. 94. NRS 281.125 is hereby amended to read as follows:

employee is determined by law, such salary must not be paid unless a

specific legislative appropriation of money or a specific legislative

authorization for the expenditure of money is made or enacted for the

department or agency.

Sec. 95. NRS 281.390 is hereby amended to read as follows:

281.390 1. When any public employee is eligible at the same time for

benefits for temporary total disability pursuant to chapters 616A to 616D,

inclusive, or 617 of NRS and for any sick leave benefit, he may, by giving

notice to his employer, elect to continue to receive his normal salary instead

of the benefits pursuant to those chapters until his accrued sick leave time is

election. The employer shall continue to pay the employee his normal

salary but charge against the employee's accrued sick leave time as taken

during the pay period an amount which represents the difference between

his normal salary and the amount of any benefit for temporary totaldisability received, exclusive of reimbursement or payment of medical or

hospital expenses pursuant to chapters 616A to 616D, inclusive, or 617 of

NRS for that pay period.

2. When the employee's accrued sick leave time is exhausted, payment

of his normal salary pursuant to subsection 1 must be discontinued and the

insurer that provides industrial insurance for that employer so that it may

begin paying the benefits to which the employee is entitled directly to the

employee.

3. An employee who declines to make the election provided in

subsection 1, may use all or part of the sick leave benefit normally payable

to him while directly receiving benefits for temporary total disability

pursuant to chapters 616A to 616D, inclusive, or 617 of NRS, but the

amount of sick leave benefit paid to the employee for any pay period must

not exceed the difference between his normal salary and the amount of any

benefit received, exclusive of reimbursement or payment of medical or

hospital expenses pursuant to those chapters for that pay period.

4. If the amount of the employee's sick leave benefit is reduced

pursuant to subsection 3 below the amount normally payable, the amount of

sick leave time charged against the employee as taken during that pay

period must be reduced in the same proportion.

5. The public employee may decline to use any or part of the sick leave

benefit normally payable to him while receiving benefits pursuant to

pay.

Sec. 96. NRS 284.013 is hereby amended to read as follows:

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

does not apply to:

(a) Agencies, bureaus, commissions, officers or personnel in the

legislative department or the judicial department of state government,

including the commission on judicial discipline;

(b) Any person who is employed by a board, commission, committee or

council created in chapters 590, 623 to 625A, inclusive, 628, 630 to 644,

inclusive, 648, 652, 654 and 656 of NRS; or

(c) Officers or employees of any agency of the executive department of

who are exempted by specific statute.

2. Except as otherwise provided in subsection 3, the terms and

conditions of employment of all persons referred to in subsection 1,

including salaries not prescribed by law and leaves of absence, including,

without limitation, annual leave and sick and disability leave, must be fixed

by the appointing or employing authority within the limits of legislative

appropriations or authorizations.

3. Except as otherwise provided in this subsection, leaves of absence

prescribed pursuant to subsection 2 must not be of lesser duration thanthose provided for other state officers and employees pursuant to the

provisions of this chapter. The provisions of this subsection do not govern

the legislative commission with respect to the personnel of the legislative

counsel bureau.

4. Any board, commission, committee or council created in chapters

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

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

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

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

Sec. 96.5. NRS 284.140 is hereby amended to read as follows:

284.140 The unclassified service of the state consists of positions held

by state officers or employees in the executive department of the state

government as follows:

1. Persons chosen by election or appointment to fill an elective office.

2. Members of boards and commissions, and heads of departments,

agencies and institutions required by law to be appointed.

3. At the discretion of the elective officer or head of each department,

agency or institution, one deputy and one chief assistant in each

department, agency or institution.

employees in the office of the governor and all persons required by law to

be appointed by the governor or heads of departments or agencies

appointed by the governor or by boards.

5. All employees other than clerical in the office of the attorney general

and the state public defender required by law to be appointed by the

attorney general or the state public defender.

6. Except as otherwise provided by the board of regents of the

University of Nevada pursuant to NRS 396.251, officers and members of

the teaching staff and the staffs of the agricultural extension department and

experiment station of the University and Community College System of

Nevada, or any other state institution of learning, and student employees of

these institutions. Custodial, clerical or maintenance employees of these

institutions are in the classified service. The board of regents of the

University of Nevada shall assist the director in carrying out the provisions

of this chapter applicable to the University and Community College System

of Nevada.

7. Officers and members of the Nevada National Guard.

8. Persons engaged in public work for the state but employed by

contractors when the performance of the contract is authorized by the

legislature or another competent authority.

9. Patient and inmate help in state charitable, penal, mental and

correctional institutions.

10. Part-time professional personnel who are paid for any form of

medical, nursing or other professional service and who are not engaged in

the performance of administrative or substantially recurring duties. 11. All other officers and employees authorized by law to be employed

in the unclassified service.

Sec. 97. NRS 284.173 is hereby amended to read as follows:

284.173 1. Elective officers and heads of departments, boards,

commissions or institutions may contract for the services of persons as

independent contractors. Except as otherwise provided by specific statute,

each contract for services must be awarded pursuant to the provisions of

chapter 333 of NRS.

2. An independent contractor is a natural person, firm or corporation

who agrees to perform services for a fixed price according to his or its own

methods and without subjection to the supervision or control of the other

contracting party, except as to the results of the work, and not as to the

means by which the services are accomplished.

3. For the purposes of this section:

(a) Travel, subsistence and other personal expenses may be paid to an

independent contractor, if provided for in the contract, in such amounts as

provided for in the contract. Those expenses must not be paid pursuant to

the provisions of NRS 281.160.

(b) There must be no:

(1) Withholding of income taxes by the state;

(2) Coverage for industrial insurance provided by the state;

(3) Participation in group insurance plans which may be available to

employees of the state;

(4) Participation or contributions by either the independent contractor

or the state to the public employees' retirement system;

(5) Accumulation of vacation leave or sick leave; or

(6) Coverage for unemployment compensation provided by the state

if the requirements of NRS 612.085 for independent contractors are met.

4. An independent contractor is not in the classified or unclassified

service of the state, and has none of the rights or privileges available to

officers or employees of the State of Nevada.

5. Except as otherwise provided in this subsection, each contract for

the services of an independent contractor must be in writing. The form of

the contract must be first approved by the attorney general, and, except as

otherwise provided in subsection 7, an executed copy of each contract must

be filed with the fiscal analysis division of the legislative counsel bureau

and the clerk of the state board of examiners. The state board of examiners

may waive the requirements of this subsection in the case of contracts

which are for amounts less than $750.

6. Except as otherwise provided in subsection 7, and except contracts

entered into by the University and Community College System of Nevada,

each proposed contract with an independent contractor must be submitted

to the state board of examiners. The contracts do not become effective

without the prior approval of the state board of examiners, but the state

board of examiners may authorize its clerk or his designee to approve

contracts which are: (a) For amounts less than $5,000 or, in contracts necessary to preserve

life and property, for amounts less than $25,000.

(b) Entered into by the state gaming control board for the purposes of

investigating an applicant for or holder of a gaming license.

The state board of examiners shall adopt regulations to carry out the

provisions of this section.

7. Copies of the following types of contracts need not be filed or

approved as provided in subsections 5 and 6:

(a) Contracts executed by the department of transportation for any work

of construction or reconstruction of highways.

(b) Contracts executed by the state public works board or any other state

department or agency for any work of construction or major repairs of state

buildings if the contracting process was controlled by the rules of open

competitive bidding.

(c) Contracts executed by the housing division of the department of

business and industry.

maintenance or repair of office machines and equipment.

8. The state board of examiners shall review each contract submitted

for approval pursuant to subsection 6 to consider:

(a) Whether sufficient authority exists to expend the money required by

the contract; and

(b) Whether the service which is the subject of the contract could be

provided by a state agency in a more cost-effective manner.

If the contract submitted for approval continues an existing contractual

relationship, the board shall ask each agency to ensure that the state is

receiving the services that the contract purports to provide.

9. If the services of an independent contractor are contracted for to

represent an agency of the state in any proceeding in any court, the contract

must require the independent contractor to identify in all pleadings the

specific state agency which he is representing.

Sec. 98. NRS 333.020 is hereby amended to read as follows:

333.020 As used in this chapter, unless the context otherwise requires:

1. "Chief" means the chief of the purchasing division.

2. "Director" means the director of the department of administration.

3. "Invitation to bid" means a written statement which sets forth the

requirements and specifications of a contract to be awarded by competitive

selection.

4. "Proprietary information" means:

(a) Any trade secret or confidential business information that is

contained in a bid or proposal submitted on a particular contract; or

(b) Any other trade secret or confidential business information

submitted in a bid or proposal and designated as proprietary by the

chief.As used in this subsection, "confidential business information" means any

information relating to the amount or source of any income, profits, losses

or expenditures of a person, including data relating to cost or price

submitted in support of a bid or proposal. The term does not include the

amount of a bid or proposal.

5. "Purchasing division" means the purchasing division of the

department of administration.

6. "Purchasing officer" means a person who is authorized by the chief

or a using agency to participate in:

(a) The evaluation of bids or proposals for a contract;

(b) Any negotiations concerning a contract; or

(c) The development, review or approval of a contract.

7. "Request for proposals" means a written statement which sets forth

the requirements and specifications of a contract to be awarded by

competitive selection.

8. "Trade secret" has the meaning ascribed to it in NRS 600A.030.

9. "Using agencies" means all officers, departments, institutions,

boards, commissions and other agencies in the executive department of the

state government which derive their support from public money in whole or

in part, whether the money is provided by the State of Nevada, received

from the Federal Government or any branch, bureau or agency thereof, or

derived from private or other sources. The term does not include the

Nevada rural housing authority, local governments as defined in NRS

Nevada.

10. "Volunteer fire department" means a volunteer fire department

which pays premiums for industrial insurance pursuant to the provisions of

chapters 616A to 616D, inclusive, or chapter 617 of NRS.

Sec. 99. NRS 333.470 is hereby amended to read as follows:

333.470 1. The University and Community College System of

defined in NRS 354.474, conservation districts and irrigation districts in the

State of Nevada may obtain supplies, materials and equipment on a

voluntary basis through the facilities of the purchasing division.

2. The chief shall issue bulletins from time to time to:

(a) Each state agency;

(b) Each local governmental agency;

(c) Each irrigation district;

indicating the supplies, materials and equipment available and the prices

thereof.

3. The specifications for all bids for supplies, materials or equipment to

be furnished pursuant to the provisions of subsection 1 must be so writtenthat all suppliers of the market in the industry or business concerned are

given an opportunity to bid pursuant to notice as provided for in this

chapter.

Sec. 100. NRS 338.1905 is hereby amended to read as follows:

338.1905 1. The governor shall designate one or more energy retrofit

coordinators for the buildings occupied by the executive branch of

public employees' retirement system.

2. The supreme court shall designate an energy retrofit coordinator for

the buildings occupied by the judicial branch of state government.

3. The legislature, by concurrent resolution, shall designate an energy

retrofit coordinator for the buildings occupied by the legislative branch of

government. If the position becomes vacant at a time when the legislature is

not in session, the legislative commission may designate a replacement.

4. The governor shall appoint a person who is trained in the

management of facilities to assist the energy retrofit coordinator of the:

(a) Judicial branch of government, upon request of the supreme court.

(b) Legislative branch of government, upon request of the legislative

commission.

A person appointed to assist an energy retrofit coordinator pursuant to this

subsection shall provide all assistance requested including making

recommendations for proposals for retrofitting buildings and any other

assistance necessary to enable the coordinator to carry out the provisions of

NRS 338.1906.

Sec. 101. NRS 353.210 is hereby amended to read as follows:

353.210 1. Except as otherwise provided in subsection 6, on or

before August 15 of each even-numbered year, all departments, institutions

and other agencies of the executive department of the state government,

and all agencies of the executive department of the state government

receiving state money, fees or other money under the authority of the state,

including those operating on money designated for specific purposes by the

constitution or otherwise, shall prepare, on blanks furnished them by the

chief, and submit to the chief estimates of their expenditure requirements,

together with all anticipated income from fees and all other sources, for the

next 2 fiscal years compared with the corresponding figures of the last

completed fiscal year and the estimated figures for the current fiscal year.

2. The chief shall direct that one copy of the forms submitted pursuant

to subsection 1, accompanied by every supporting schedule and any other

related material, be delivered directly to the fiscal analysis division of the

legislative counsel bureau on or before August 15 of each even-numbered

year.

3. The budget division of the department of administration shall give

advance notice to the fiscal analysis division of the legislative counsel

bureau of any conference between the budget division of the department of

administration and personnel of other state agencies regarding budgetestimates. A fiscal analyst of the legislative counsel bureau or his

designated representative may attend any such conference.

4. The estimates of expenditure requirements submitted pursuant to

subsection 1 must be classified to set forth the data of funds, organizational

units, and the character and objects of expenditures, and must include a

mission statement and measurement indicators for each program. The

organizational units may be subclassified by functions and activities, or in

any other manner at the discretion of the chief.

5. If any department, institution or other agency of the executive

department of the state government, whether its money is derived from

state money or from other money collected under the authority of the state,

fails or neglects to submit estimates of its expenditure requirements as

provided in this section, the chief may, from any data at hand in his office

or which he may examine or obtain elsewhere, make and enter a proposed

budget for the department, institution or agency in accordance with the

data.

6. Agencies, bureaus, commissions and officers of the legislative

submit to the chief for his information in preparing the proposed executive

budget the budgets which they propose to submit to the legislature.

Sec. 102. NRS 353.246 is hereby amended to read as follows:

353.246 1. Except as otherwise provided in subsection 2 of this

section and subsection 6 of NRS 353.210, the provisions of NRS 353.150

to 353.245, inclusive, do not apply to agencies, bureaus, commissions and

officers of the legislative department, the public employees' retirement

of the state government.

2. The legislative department, the public employees' retirement system

state government shall submit their budgets to the legislature in the same

format as the proposed executive budget unless otherwise provided by the

legislative commission. All projections of revenue and any other

information concerning future state revenue contained in those budgets

must be based upon the projections and estimates prepared by the economic

forum pursuant to NRS 353.228.

Sec. 103. NRS 353.335 is hereby amended to read as follows:

353.335 1. Except as otherwise provided in subsections 5 and 6, a

state agency may accept any gift or grant of property or services from any

source only if it is included in an act of the legislature authorizing

expenditures of nonappropriated money or, when it is not so included, if it

is approved as provided in subsection 2.

2. If:

(a) Any proposed gift or grant is necessary because of an emergency as

defined in NRS 353.263 or for the protection or preservation of life or

property, the governor shall take reasonable and proper action to accept itand shall report the action and his reasons for determining that immediate

action was necessary to the interim finance committee at its first meeting

after the action is taken. Action by the governor pursuant to this paragraph

constitutes acceptance of the gift or grant, and other provisions of this

chapter requiring approval before acceptance do not apply.

(b) The governor determines that any proposed gift or grant would be

forfeited if the state failed to accept it before the expiration of the period

prescribed in paragraph (c), he may declare that the proposed acceptance

requires expeditious action by the interim finance committee. Whenever the

governor so declares, the interim finance committee has 15 days after the

proposal is submitted to its secretary within which to approve or deny the

acceptance. Any proposed acceptance which is not considered within the

15-day period shall be deemed approved.

(c) The proposed acceptance of any gift or grant does not qualify

pursuant to paragraph (a) or (b), it must be submitted to the interim finance

committee. The interim finance committee has 45 days after the proposal is

submitted to its secretary within which to consider acceptance. Any

proposed acceptance which is not considered within the 45-day period shall

be deemed approved.

3. The secretary shall place each request submitted to him pursuant to

paragraph (b) or (c) of subsection 2 on the agenda of the next meeting of

the interim finance committee.

4. In acting upon a proposed gift or grant, the interim finance

committee shall consider, among other things:

(a) The need for the facility or service to be provided or improved;

(b) Any present or future commitment required of the state;

(c) The extent of the program proposed; and

(d) The condition of the national economy, and any related fiscal or

monetary policies.

5. A state agency may accept:

(a) Gifts, including grants from nongovernmental sources, not exceeding

$10,000 each in value; and

(b) Governmental grants not exceeding $100,000 each in value,

if the gifts or grants are used for purposes which do not involve the hiring

of new employees and if the agency has the specific approval of the

governor or, if the governor delegates this power of approval to the chief of

the budget division of the department of administration, the specific

approval of the chief.

6. This section does not apply to:

health planning and development agency pursuant to paragraph (d) of

subsection 2 of NRS 439A.081 or for donations, gifts or grants to be

disbursed pursuant to NRS 433.395.

Sec. 104. NRS 353A.010 is hereby amended to read as follows:

353A.010 As used in this chapter, unless the context otherwise

requires:

1. "Agency" means every agency, department, division, board,

commission or similar body, or elected officer, of the executive branch of

the state, except:

(a) A board or commission created by the provisions of chapters 623 to

625, inclusive, 628 to 644, inclusive, 654 and 656 of NRS.

(b) The University and Community College System of Nevada.

(c) The public employees' retirement system.

2. "Director" means the director of the department of administration.

3. "Internal accounting and administrative control" means a method

through which agencies can safeguard assets, check the accuracy and

reliability of their accounting information, promote efficient operations and

encourage adherence to prescribed managerial policies.

Sec. 105. NRS 355.140 is hereby amended to read as follows:

355.140 1. In addition to other investments provided for by a specific

statute, the following bonds and other securities are proper and lawful

investments of any of the money of this state, of its various departments,

institutions and agencies, and of the state insurance fund:

(a) Bonds and certificates of the United States;

(b) Bonds, notes, debentures and loans if they are underwritten by or

their payment is guaranteed by the United States;

(c) Obligations or certificates of the United States Postal Service, the

Federal National Mortgage Association, the Government National

Mortgage Association, the Federal Home Loan Banks, the Federal Home

Loan Mortgage Corporation or the Student Loan Marketing Association,

whether or not guaranteed by the United States;

(d) Bonds of this state or other states of the Union;

(e) Bonds of any county of this state or of other states;

(f) Bonds of incorporated cities in this state or in other states of the

Union, including special assessment district bonds if those bonds provide

that any deficiencies in the proceeds to pay the bonds are to be paid from

the general fund of the incorporated city;

(g) General obligation bonds of irrigation districts and drainage districts

in this state which are liens upon the property within those districts, if the

value of the property is found by the board or commission making the

investments to render the bonds financially sound over all other obligations

of the districts;

(h) Bonds of school districts within this state;

(i) Bonds of any general improvement district whose population is

200,000 or more and which is situated in two or more counties of this state

or of any other state, if: (1) The bonds are general obligation bonds and constitute a lien upon

the property within the district which is subject to taxation; and

(2) That property is of an assessed valuation of not less than five

times the amount of the bonded indebtedness of the district;

(j) Medium-term obligations for counties, cities and school districts

authorized pursuant to chapter 350 of NRS;

(k) Loans bearing interest at a rate determined by the state board of

finance when secured by first mortgages on agricultural lands in this state

of not less than three times the value of the amount loaned, exclusive of

perishable improvements, and of unexceptional title and free from all

encumbrances;

(l) Farm loan bonds, consolidated farm loan bonds, debentures,

consolidated debentures and other obligations issued by federal land banks

and federal intermediate credit banks under the authority of the Federal

Farm Loan Act, formerly 12 U.S.C. §§ 636 to 1012, inclusive, and §§ 1021

to 1129, inclusive, and the Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to

2259, inclusive, and bonds, debentures, consolidated debentures and other

obligations issued by banks for cooperatives under the authority of the

Farm Credit Act of 1933, formerly 12 U.S.C. §§ 1131 to 1138e, inclusive,

and the Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to 2259, inclusive,

excluding such money thereof as has been received or which may be

received hereafter from the Federal Government or received pursuant to

some federal law which governs the investment thereof;

(m) Negotiable certificates of deposit issued by commercial banks,

insured credit unions or savings and loan associations;

(n) Bankers' acceptances of the kind and maturities made eligible by

law for rediscount with Federal Reserve banks or trust companies which are

members of the Federal Reserve System, except that acceptances may not

exceed 180 days' maturity, and may not, in aggregate value, exceed 20

percent of the total par value of the portfolio as determined on the date of

purchase;

(o) Commercial paper issued by a corporation organized and operating

in the United States or by a depository institution licensed by the United

States or any state and operating in the United States that:

(2) Is rated by a nationally recognized rating service as "A-1," "P-1"

or its equivalent, or better,

except that investments pursuant to this paragraph may not, in aggregate

value, exceed 20 percent of the total par value of the portfolio as

determined on the date of purchase, and if the rating of an obligation is

reduced to a level that does not meet the requirements of this paragraph, it

must be sold as soon as possible;

(p) Notes, bonds and other unconditional obligations for the payment of

money, except certificates of deposit that do not qualify pursuant to

paragraph (m), issued by corporations organized and operating in theUnited States or by depository institutions licensed by the United States or

any state and operating in the United States that:

(1) Are purchased from a registered broker-dealer;

(3) Are rated by a nationally recognized rating service as "A" or its

equivalent, or better,

except that investments pursuant to this paragraph may not, in aggregate

value, exceed 20 percent of the total par value of the portfolio, and if the

rating of an obligation is reduced to a level that does not meet the

requirements of this paragraph, it must be sold as soon as possible;

(q) Money market mutual funds which:

(1) Are registered with the Securities and Exchange Commission;

(2) Are rated by a nationally recognized rating service as "AAA" or

its equivalent; and

(3) Invest only in securities issued by the Federal Government or

agencies of the Federal Government or in repurchase agreements fully

collateralized by such securities;

(r) Collateralized mortgage obligations that are rated by a nationally

recognized rating service as "AAA" or its equivalent; and

(s) Asset-backed securities that are rated by a nationally recognized

rating service as "AAA" or its equivalent.

2. Repurchase agreements are proper and lawful investments of money

of the state and the state insurance fund for the purchase or sale of

securities which are negotiable and of the types listed in subsection 1 if

made in accordance with the following conditions:

(a) The state treasurer shall designate in advance and thereafter maintain

a list of qualified counterparties which:

(1) Regularly provide audited and, if available, unaudited financial

statements to the state treasurer;

(2) The state treasurer has determined to have adequate capitalization

and earnings and appropriate assets to be highly credit worthy; and

(3) Have executed a written master repurchase agreement in a form

satisfactory to the state treasurer and the state board of finance pursuant to

which all repurchase agreements are entered into. The master repurchase

agreement must require the prompt delivery to the state treasurer and the

appointed custodian of written confirmations of all transactions conducted

thereunder, and must be developed giving consideration to the Federal

(b) In all repurchase agreements:

(1) At or before the time money to pay the purchase price is

transferred, title to the purchased securities must be recorded in the name of

the appointed custodian, or the purchased securities must be delivered with

all appropriate, executed transfer instruments by physical delivery to the

custodian; (2) The state must enter into a written contract with the custodian

appointed pursuant to subparagraph (1) which requires the custodian to:

(I) Disburse cash for repurchase agreements only upon receipt of

the underlying securities;

(II) Notify the state when the securities are marked to the market if

the required margin on the agreement is not maintained;

(III) Hold the securities separate from the assets of the custodian;

and

(IV) Report periodically to the state concerning the market value of

the securities;

(3) The market value of the purchased securities must exceed 102

percent of the repurchase price to be paid by the counterparty and the value

of the purchased securities must be marked to the market weekly;

(4) The date on which the securities are to be repurchased must not be

more than 90 days after the date of purchase; and

(5) The purchased securities must not have a term to maturity at the

time of purchase in excess of 10 years.

3. As used in subsection 2:

(a) "Counterparty" means a bank organized and operating or licensed to

operate in the United States pursuant to federal or state law or a securities

dealer which is:

(1) A registered broker-dealer;

(2) Designated by the Federal Reserve Bank of New York as a

"primary" dealer in United States government securities; and

(3) In full compliance with all applicable capital requirements.

(b) "Repurchase agreement" means a purchase of securities by the state

or state insurance fund from a counterparty which commits to repurchase

those securities or securities of the same issuer, description, issue date and

maturity on or before a specified date for a specified price.

4. No money of this state may be invested pursuant to a reverse

Sec. 106. NRS 355.150 is hereby amended to read as follows:

355.150 1. Before making any investment in the bonds and other

make due and diligent inquiry as to:

(a) Whether the bonds of such federal agencies are actually underwritten

or payment thereof is guaranteed by the United States.

(b) The financial standing and responsibility of the state or states,

county or counties, incorporated cities, irrigation districts, drainage

districts, school districts, and general improvement districts in the bonds or

securities of which such investments are contemplated or are to be made. (c) Whether such bonds and other securities are valid and duly

authorized and issued, and the proceedings incident thereto have been fully

complied with.

(d) The financial standing and responsibility of the person or persons,

company or companies, corporation or corporations to whom or to which

such loans are contemplated.

(e) The value of the lands so mortgaged.

2. Such commission, board or other state agency shall require the

attorney general:

(a) To give his legal opinion in writing as to:

(1) The validity of any laws under which such bonds or securities are

issued and authorized and in which such investments are contemplated.

(2) The validity of such bonds or other securities.

(b) To examine and pass upon and to give his official opinion in writing

upon the title and abstract of title or title insurance of all agricultural lands

so mortgaged to secure such loans.

3. Unless such commission, board or other state agency is satisfied

from such inquiry and opinion that the bonds of such federal agencies are

underwritten or payment thereof guaranteed by the United States and of the

financial standing and responsibility of the state, county, incorporated city

or district issuing such bonds, then such commission, board or other state

commission, board or other state agency may, at its option, so invest such

funds in such bonds.

Sec. 107. NRS 355.160 is hereby amended to read as follows:

355.160 Except as otherwise provided in NRS 355.140 and 355.150,

board of education or other state agency shall proceed in the same manner

as the law relating to each of them requires in the making of such

investments, the purpose of NRS 355.140 and 355.150, being merely to

designate the classes of bonds and other securities and loans in which the

funds mentioned in NRS 355.140 lawfully may be invested and the other

matters relating thereto as specified in NRS 355.140 and 355.150.

Sec. 108. NRS 396.591 is hereby amended to read as follows:

396.591 The University of Nevada, Reno, and the University of

Nevada, Las Vegas, may each elect to insure members of varsity and

freshman athletic teams representing the respective campuses for unlimited

medical coverage for injuries incurred while the members of the teams are

engaged in organized practice or actual competition or any activity related

Sec. 109. NRS 433A.430 is hereby amended to read as follows:

433A.430 1. Whenever the administrator determines that division

facilities within the state are inadequate for the care of any mentally ill

person, he may designate two physicians, licensed under the provisions of

chapter 630 of NRS, and familiar with the field of psychiatry, to examinethat person. If the two physicians concur with the opinion of the

administrator, the administrator may contract with appropriate

corresponding authorities in any other state of the United States having

adequate facilities for such purposes for the reception, detention, care or

treatment of that person, but if the person in any manner objects to the

transfer, the procedures in subsection 3 of NRS 433.484 and subsections 2

and 3 of NRS 433.534 must be followed. The two physicians so designated

must be paid by the county of the person's last known residence.

2. Money to carry out the provisions of this section must be provided

by direct legislative appropriation.

Sec. 110. NRS 475.110 is hereby amended to read as follows:

officers or any national forest officer may call upon able-bodied male

persons within the State of Nevada who are between the ages of 16 years

and 50 years for assistance in extinguishing fires in timber or in brush.

2. Persons who refuse to obey the summons or who refuse to assist in

fighting fire for the period stated in subsection 3, unless they present

sufficient reasons, are guilty of a misdemeanor.

3. No male person may be required to fight fires a total of more than 5

days during any 1 year.

4. The board of county commissioners may fix the amount of

compensation to be paid to male persons drafted to fight fires as provided

in this section, and the sums so fixed must be allowed and paid as other

claims against the county are paid.

5. For the purpose of obtaining the benefits of the Nevada Industrial

considered employees of the county demanding their services, and they are

entitled to receive for disability incurred by reason thereof the benefits

under the Nevada Industrial Insurance Act. The county shall report and pay

authorized to provide industrial insurance in this state for persons so

engaged.

Sec. 111. NRS 475.230 is hereby amended to read as follows:

475.230 1. Any fire department which engages in fighting a fire on

property owned by the state within the jurisdictional limits of the fire

department may submit a claim to the secretary of the state board of

examiners to recover any direct expenses and losses incurred as a result of

fighting that fire.

2. The claim must include:

(a) The name, address and jurisdictional limits of the fire department;

(b) The name, address and telephone number of the person making the

claim on behalf of the fire department;

(c) The name and address, if known, of the state agency having

jurisdiction over the property on which the fire occurred; (d) The exact location of the fire;

(e) A description of the property burned;

(f) The number and classification of the personnel and the number and

type of equipment used to fight the fire;

(g) A copy of the fire report; and

(h) An itemized list of direct expenses and losses incurred while fighting

statement of depreciated value immediately preceding and after the damage

to or destruction of any equipment and the extent of any insurance

coverage.

3. As used in this section, "direct expenses and losses" means certain

expenses and losses which were incurred while fighting a fire on property

owned by the state. The term is limited to:

(a) The depreciated value, if any, of any equipment or vehicle which

was damaged or destroyed; and

(b) If the employer maintains a plan which supplements coverage for

workers' compensation provided pursuant to chapters 616A to 616D,

not by an insurer, any injury or death benefits which would have been paid

by the employer from public money.

Sec. 112. NRS 538.101 is hereby amended to read as follows:

538.101 1. While engaged in official business of the commission,

each commissioner appointed by the governor is entitled to receive a salary

of not more than $80 per day, as fixed by the commission.

2. While engaged in the business of the commission, each member and

employee of the commission is entitled to receive the per diem allowance

and travel expenses provided for state officers and employees generally.

3. The director or an employee of the commission designated by the

director shall certify all bills and claims for compensation, per diem

expense allowances and travel expenses of the commissioners, and shall

submit them for payment in the same manner as all other state claims. The

bills and claims must be paid from the Colorado River commission fund or

any other fund administered by the commission and designated to be used

for those expenses by the director.

4. The commission shall provide its members who are appointed by the

this state and shall budget and pay for the premiums for that insurance.

Sec. 113. NRS 624.328 is hereby amended to read as follows:

624.328 The employment security division of the department of

employment, training and rehabilitation and the administrator of the

division of industrial relations of the department of business and industry

shall make available, upon request, to any licensed contractor the names

and addresses of subcontractors who are delinquent in paying the amounts

of NRS; and

provides industrial insurance in this state for premiums for industrial

insurance.

Sec. 114. NRS 668.045 is hereby amended to read as follows:

668.045 1. It is unlawful for a president, director, manager, cashier

or other officer or employee of any bank to permit the bank to remain open

for business, or to assent to the reception of deposits or the creation of

debts by the banking institution, after he has knowledge of the fact that it is

insolvent or in failing circumstances. An officer, director, manager or agent

of a bank shall examine the affairs of the bank and shall know its condition.

Upon the failure of any such person to discharge his duty of examination,

he must be held, for the purpose of this Title, to have had knowledge of the

insolvency of the bank, or that it was in failing circumstances, and shall be

deemed to have assented to the receipt of deposits while the bank was

insolvent or in failing circumstances. A person who violates the provisions

of this subsection is individually responsible for deposits so received, and

all such debts so contracted, but any director who has paid more than his

share of such liabilities has a remedy at law against other persons who have

not paid their full share of such liabilities for contribution.

2. It is unlawful for a president, director, manager, cashier or other

officer or employee of any bank willfully to give or concur in giving to a

creditor of the bank any fraudulent, undue or unfair preference over other

creditors, by giving security to the creditor, or by changing the nature of his

claim, or otherwise, but this subsection does not prohibit the bank from

giving security for public money of the State of Nevada or any political

States, or an officer, agent, agency or department thereof, in the manner

provided by law.

3. A person who violates the provisions of this section, or who is an

accessory to, or permits or connives at, the receiving or accepting of any

such deposits, or the giving of such preferences, is guilty of a category D

felony and shall be punished as provided in NRS 193.130.

Sec. 115. NRS 680B.027 is hereby amended to read as follows:

680B.027 1. Except as otherwise provided in NRS 680B.033 and

680B.050, for the privilege of transacting business in this state, each

insurer shall pay to the department of taxation a tax upon his net direct

premiums and net direct considerations written at the rate of 3.5 percent.

2. The tax must be paid in the manner required by NRS 680B.030 and

680B.032.

3. The commissioner or the executive director of the department of

taxation may require at any time verified supplemental statements with

Sec. 116. NRS 680B.050 is hereby amended to read as follows:

680B.050 1. Except as otherwise provided in this section, a domestic

or foreign insurer which owns and substantially occupies and uses any

building in this state as its home office or as a regional home office is

entitled to the following credits against the tax otherwise imposed by NRS

680B.027:

(a) An amount equal to 50 percent of the aggregate amount of the tax as

determined under NRS 680B.025 to 680B.039, inclusive; and

(b) An amount equal to the full amount of ad valorem taxes paid by the

insurer during the calendar year next preceding the filing of the report

required by NRS 680B.030, upon the home office or regional home office

together with the land, as reasonably required for the convenient use of the

office, upon which the home office or regional home office is situated.

These credits must not reduce the amount of tax payable to less than 20

percent of the tax otherwise payable by the insurer under NRS 680B.027.

2. As used in this section, a "regional home office" means an office of

the insurer performing for an area covering two or more states, with a

minimum of 25 employees on its office staff, the supervision, underwriting,

issuing and servicing of the insurance business of the insurer.

3. The insurer shall, on or before March 15 of each year, furnish proof

to the satisfaction of the executive director of the department of taxation,

on forms furnished by or acceptable to the executive director, as to its

entitlement to the tax reduction provided for in this section. A

determination of the executive director of the department of taxation

pursuant to this section is not binding upon the commissioner for the

purposes of NRS 682A.240.

4. An insurer is not entitled to the credits provided in this section

unless:

(a) The insurer owned the property upon which the reduction is based

for the entire year for which the reduction is claimed; and

(b) The insurer occupied at least 70 percent of the usable space in the

building to transact insurance or the insurer is a general or limited partner

and occupies 100 percent of its ownership interest in the building.

5. If two or more insurers under common ownership or management

and control jointly own in equal interest, and jointly occupy and use such a

home office or regional home office in this state for the conduct and

administration of their respective insurance businesses as provided in this

section, each of the insurers is entitled to the credits provided for by this

section if otherwise qualified therefor under this section.

Sec. 117. NRS 680B.060 is hereby amended to read as follows:

680B.060 1. Except as otherwise provided in subsection 6, the taxes

imposed under NRS 680B.027 must be collected by the department of

taxation and promptly deposited with the state treasurer for credit to the

state general fund.

2. If the tax is not paid by the insurer on or before the date required for

payment, the tax then becomes delinquent, and payment thereof may be

enforced by court action instituted on behalf of the state by the attorney

general. The attorney general may employ additional counsel in the city

compensation for such services by the state board of examiners. The

administrative and substantive enforcement provisions of chapters 360 and

372 of NRS apply to the enforcement of the taxes imposed under NRS

680B.027.

3. Upon the tax becoming delinquent, the executive director of the

department of taxation shall notify the commissioner, who shall suspend or

revoke the insurer's certificate of authority pursuant to NRS 680A.190.

4. If a dispute arises between an insurer and the state as to the amount

of tax, if any, payable, the insurer is entitled to pay under protest the tax in

the amount assessed by the department of taxation, without waiving or

otherwise affecting any right of the insurer to recover any amount

determined, through appropriate legal action taken by the insurer against

the department of taxation, to have been in excess of the amount of tax

lawfully payable.

5. Except as otherwise provided in subsection 6, all taxes, fees,

licenses, fines and charges collected under this code, including the general

premium tax provided for under NRS 680B.027 and as increased in any

instances pursuant to NRS 680A.330, must be promptly deposited with the

state treasurer for credit to the state general fund.

6. The taxes collected pursuant to NRS 680B.027 from insurers that

are writing industrial insurance in this state, including the state industrial

insurance system, which are attributable to industrial insurance must be

shall deposit the taxes collected from these insurers for credit to the state

general fund.

Sec. 118. NRS 680B.060 is hereby amended to read as follows:

taxes imposed under NRS 680B.027 must be collected by the department

of taxation and promptly deposited with the state treasurer for credit to the

state general fund.

2. If the tax is not paid by the insurer on or before the date required for

payment, the tax then becomes delinquent, and payment thereof may be

enforced by court action instituted on behalf of the state by the attorney

general. The attorney general may employ additional counsel in the city

where the home office of the insurer is located, subject to the approval of

compensation for such services by the state board of examiners. The

administrative and substantive enforcement provisions of chapters 360 and

372 of NRS apply to the enforcement of the taxes imposed under NRS

680B.027.

3. Upon the tax becoming delinquent, the executive director of the

department of taxation shall notify the commissioner, who shall suspend or

revoke the insurer's certificate of authority pursuant to NRS 680A.190.

4. If a dispute arises between an insurer and the state as to the amount

of tax, if any, payable, the insurer is entitled to pay under protest the tax in

the amount assessed by the department of taxation, without waiving or

otherwise affecting any right of the insurer to recover any amount

determined, through appropriate legal action taken by the insurer against

the department of taxation, to have been in excess of the amount of tax

lawfully payable.

licenses, fines and charges collected under this code, including the general

premium tax provided for under NRS 680B.027 and as increased in any

instances pursuant to NRS 680A.330, must be promptly deposited with the

state treasurer for credit to the state general fund.

Sec. 119. NRS 681B.020 is hereby amended to read as follows:

allowed as assets in any determination of the financial condition of an

insurer:

secured or not, and advances to employees, agents and other persons on

personal security only.