Senate Bill No. 37–Committee on Commerce and Labor

Prefiled January 26, 1999

(On Behalf of Legislative Committee on Workers’ Compensation)

____________

Referred to Committee on Commerce and Labor

 

SUMMARY—Makes various changes regarding industrial insurance. (BDR 53-382)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: No.

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

 

AN ACT relating to industrial insurance; authorizing the manager of the state industrial insurance system to establish a domestic mutual insurance company to transact industrial insurance and other casualty and property insurance in this state; abolishing the state industrial insurance system and authorizing the transfer of the assets of the system to the company under certain circumstances; allowing certain employees of the system and the company to retain their rights to reemployment in the executive branch of state government under certain circumstances; and providing other matters properly relating thereto.

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

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

1-2 612.265 1. Except as otherwise provided in this section, information

1-3 obtained from any employing unit or person pursuant to the administration

1-4 of this chapter and any determination as to the benefit rights of any person

1-5 is confidential and may not be disclosed or be open to public inspection in

1-6 any manner which would reveal the person’s or employing unit’s identity.

1-7 2. Any claimant or his legal representative is entitled to information

1-8 from the records of the division, to the extent necessary for the proper

1-9 presentation of his claim in any proceeding pursuant to this chapter. A

1-10 claimant or an employing unit is not entitled to information from the

1-11 records of the division for any other purpose.

2-1 3. Subject to such restrictions as the administrator may by regulation

2-2 prescribe, the information obtained by the division may be made available

2-3 to:

2-4 (a) Any agency of this or any other state or any federal agency charged

2-5 with the administration or enforcement of laws relating to unemployment

2-6 compensation, public assistance, workers’ compensation or labor and

2-7 industrial relations, or the maintenance of a system of public employment

2-8 offices;

2-9 (b) Any state or local agency for the enforcement of child support;

2-10 (c) The Internal Revenue Service of the Department of the Treasury;

2-11 (d) The department of taxation; and

2-12 (e) The state contractors’ board in the performance of its duties to

2-13 enforce the provisions of chapter 624 of NRS.

2-14 Information obtained in connection with the administration of the

2-15 employment service may be made available to persons or agencies for

2-16 purposes appropriate to the operation of a public employment service or a

2-17 public assistance program.

2-18 4. Upon written request made by a public officer of a local

2-19 government, the administrator shall furnish from the records of the division

2-20 the name, address and place of employment of any person listed in the

2-21 records of employment of the division. The request must set forth the social

2-22 security number of the person about whom the request is made and contain

2-23 a statement signed by proper authority of the local government certifying

2-24 that the request is made to allow the proper authority to enforce a law to

2-25 recover a debt or obligation owed to the local government. The information

2-26 obtained by the local government is confidential and may not be used or

2-27 disclosed for any purpose other than the collection of a debt or obligation

2-28 owed to that local government. The administrator may charge a reasonable

2-29 fee for the cost of providing the requested information.

2-30 5. The administrator may publish or otherwise provide information on

2-31 the names of employers, their addresses, their type or class of business or

2-32 industry, and the approximate number of employees employed by each such

2-33 employer, if the information released will assist unemployed persons to

2-34 obtain employment or will be generally useful in developing and

2-35 diversifying the economic interests of this state. Upon request by a state

2-36 agency which is able to demonstrate that its intended use of the information

2-37 will benefit the residents of this state, the administrator may, in addition to

2-38 the information listed in this subsection, disclose the number of employees

2-39 employed by each employer and the total wages paid by each employer.

2-40 The administrator may charge a fee to cover the actual costs of any

2-41 administrative expenses relating to the disclosure of this information to a

2-42 state agency. The administrator may require the state agency to certify in

3-1 writing that the agency will take all actions necessary to maintain the

3-2 confidentiality of the information and prevent its unauthorized disclosure.

3-3 6. Upon request therefor the administrator shall furnish to any agency

3-4 of the United States charged with the administration of public works or

3-5 assistance through public employment, and may furnish to any state agency

3-6 similarly charged, the name, address, ordinary occupation [,] and

3-7 employment status of each recipient of benefits and the recipient’s rights to

3-8 further benefits pursuant to this chapter.

3-9 7. To further a current criminal investigation, the chief executive

3-10 officer of any law enforcement agency of this state may submit a written

3-11 request to the administrator that he furnish, from the records of the division,

3-12 the name, address and place of employment of any person listed in the

3-13 records of employment of the division. The request must set forth the social

3-14 security number of the person about whom the request is made and contain

3-15 a statement signed by the chief executive officer certifying that the request

3-16 is made to further a criminal investigation currently being conducted by the

3-17 agency. Upon receipt of such a request, the administrator shall furnish the

3-18 information requested. He may charge a fee to cover the actual costs of any

3-19 related administrative expenses.

3-20 8. In addition to the provisions of subsection 5, the administrator shall

3-21 provide lists containing the names and addresses of employers, the number

3-22 of employees employed by each employer and the total wages paid by each

3-23 employer to the department of taxation, upon request, for use in verifying

3-24 returns for the business tax. The administrator may charge a fee to cover

3-25 the actual costs of any related administrative expenses.

3-26 9. [The manager of the state industrial insurance system or a] A private

3-27 carrier that provides industrial insurance in this state shall submit to the

3-28 administrator a list containing the name of each person who received

3-29 benefits pursuant to chapters 616A to 616D, inclusive, or 617 of NRS

3-30 during the preceding month and request that he compare the information so

3-31 provided with the records of the division regarding persons claiming

3-32 benefits pursuant to chapter 612 of NRS for the same period. The

3-33 information submitted by the [manager or the] private carrier must be in a

3-34 form determined by the administrator and must contain the social security

3-35 number of each such person. Upon receipt of the request, the administrator

3-36 shall make such a comparison and, if it appears from the information

3-37 submitted that a person is simultaneously claiming benefits under chapter

3-38 612 of NRS and under chapters 616A to 616D, inclusive, or 617 of NRS,

3-39 the administrator shall notify the attorney general or any other appropriate

3-40 law enforcement agency. The administrator shall charge a fee to cover the

3-41 actual costs of any related administrative expenses.

3-42 10. The administrator may request the Comptroller of the Currency of

3-43 the United States to cause an examination of the correctness of any return

4-1 or report of any national banking association rendered pursuant to the

4-2 provisions of this chapter, and may in connection with the request transmit

4-3 any such report or return to the Comptroller of the Currency of the United

4-4 States as provided in Section 3305(c) of the Internal Revenue Code of

4-5 1954.

4-6 11. If any employee or member of the board of review , [or] the

4-7 administrator or any employee of the administrator, in violation of the

4-8 provisions of this section, discloses information obtained from any

4-9 employing unit or person in the administration of this chapter, or if any

4-10 person who has obtained a list of applicants for work, or of claimants or

4-11 recipients of benefits pursuant to this chapter uses or permits the use of the

4-12 list for any political purpose, he is guilty of a gross misdemeanor.

4-13 12. All letters, reports or communications of any kind, oral or written,

4-14 from the employer or employee to each other or to the division or any of its

4-15 agents, representatives or employees are privileged and must not be the

4-16 subject matter or basis for any lawsuit if the letter, report or communication

4-17 is written, sent, delivered or prepared pursuant to the requirements of this

4-18 chapter.

4-19 Sec. 2. Chapter 616A of NRS is hereby amended by adding thereto the

4-20 provisions set forth as sections 3 and 4 of this act.

4-21 Sec. 3. If there is a conflict between the provisions of chapters 616A

4-22 to 617, inclusive, of NRS and the provisions of Title 57 of NRS, the

4-23 provisions of chapters 616A to 617, inclusive, of NRS control.

4-24 Sec. 4. "State industrial insurance system" means that entity

4-25 established by section 79 of chapter 642, Statutes of Nevada 1981, at

4-26 page 1449.

4-27 Sec. 5. NRS 616A.015 is hereby amended to read as follows:

4-28 616A.015 1. All premiums, contributions, penalties, money,

4-29 properties, securities, funds, deposits, contracts and awards received,

4-30 collected, acquired, established or made by the [Nevada industrial

4-31 commission before July 1, 1947, and under the provisions of chapter 111,

4-32 Statutes of Nevada 1913,] state industrial insurance system under the

4-33 provisions of chapters 616A to 617, inclusive, of NRS before January 1,

4-34 2000, continue in full force and effect, and the rights, obligations and

4-35 liabilities of the [commission] system thereunder must be assumed and

4-36 performed by the [system created in chapters 616A to 616D, inclusive, of

4-37 NRS.] successor organization of the system.

4-38 2. All proceedings must be had and rights determined under the

4-39 provisions of [chapter 111, Statutes of Nevada 1913, and acts amendatory

4-40 thereof and supplemental thereto,] chapters 616A to 617, inclusive, of

4-41 NRS on any claims or actions pending or causes of action existing on [June

4-42 30, 1947.] December 31, 1999.

5-1 Sec. 6. NRS 616A.025 is hereby amended to read as follows:

5-2 616A.025 As used in chapters 616A to 616D, inclusive, of NRS,

5-3 unless the context otherwise requires, the words and terms defined in NRS

5-4 616A.030 to 616A.360, inclusive, and section 4 of this act, have the

5-5 meanings ascribed to them in those sections.

5-6 Sec. 7. NRS 616A.045 is hereby amended to read as follows:

5-7 616A.045 "Advisory organization" means the organization designated

5-8 and licensed by the commissioner to file the classifications of risks for

5-9 private carriers [and the system] pursuant to chapters 616A to 616D,

5-10 inclusive, and chapter 686B of NRS.

5-11 Sec. 8. NRS 616A.127 is hereby amended to read as follows:

5-12 616A.127 [1. Any:

5-13 (a)] Any:

5-14 1. Teacher who, as part of the program to offer pupils who are enrolled

5-15 in grades 7 through 12, inclusive, the skills to make the transition from

5-16 school to careers established pursuant to NRS 388.368, works without pay

5-17 for an employer other than the school district, university or community

5-18 college with which the teacher is employed, and is not specifically covered

5-19 by any other provisions of chapters 616A to 616D, inclusive, of NRS,

5-20 while engaging in that work; or

5-21 [(b)] 2. Pupil who, as part of the program to offer pupils who are

5-22 enrolled in grades 7 through 12, inclusive, the skills to make the transition

5-23 from school to careers established pursuant to NRS 388.368, works without

5-24 pay for an employer,

5-25 shall be deemed for the purposes of chapters 616A to 616D, inclusive, of

5-26 NRS to be an employee of that employer at the wage of $900 per month.

5-27 The teacher or pupil is entitled to the benefits of those chapters when the

5-28 employer complies with the provisions of those chapters and the regulations

5-29 adopted pursuant thereto.

5-30 [2. A person who is insured by the system and is deemed to be the

5-31 employer of a teacher or pupil pursuant to subsection 1 shall:

5-32 (a) Report to the insurer the name of the teacher or pupil and the

5-33 classification of risk assigned for the teacher or pupil; and

5-34 (b) Pay the premium for each month or portion thereof for which the

5-35 teacher or pupil performs work without pay for the employer.]

5-36 Sec. 9. NRS 616A.270 is hereby amended to read as follows:

5-37 616A.270 "Insurer" includes:

5-38 1. [The state industrial insurance system;

5-39 2.] A self-insured employer;

5-40 [3.] 2. An association of self-insured public employers;

5-41 [4.] 3. An association of self-insured private employers; and

5-42 [5.] 4. A private carrier.

6-1 Sec. 10. NRS 616A.290 is hereby amended to read as follows:

6-2 616A.290 "Private carrier" means any insurer or the legal

6-3 representative of an insurer authorized to provide industrial insurance

6-4 pursuant to chapters 616A to 617, inclusive, of NRS. The term does not

6-5 include a self-insured employer [,] or an association of self-insured public

6-6 or private employers . [or the system.]

6-7 Sec. 11. NRS 616A.400 is hereby amended to read as follows:

6-8 616A.400 The administrator shall:

6-9 1. Prescribe by regulation the time within which adjudications and

6-10 awards must be made.

6-11 2. Regulate forms of notices, claims and other blank forms deemed

6-12 proper and advisable.

6-13 3. Prescribe by regulation the methods by which an insurer may

6-14 approve or reject claims, and may determine the amount and nature of

6-15 benefits payable in connection therewith.

6-16 4. Prescribe by regulation the method for reimbursing an injured

6-17 employee for expenses necessarily incurred for travel more than 20 miles

6-18 one way from his residence or place of employment to his destination as a

6-19 result of an industrial injury.

6-20 5. Determine whether an insurer has provided adequate facilities in this

6-21 state to administer claims and for the retention of a file on each claim.

6-22 6. Evaluate the services of private carriers [and the system] provided to

6-23 employers in:

6-24 (a) Controlling losses; and

6-25 (b) Providing information on the prevention of industrial accidents or

6-26 occupational diseases.

6-27 7. Conduct such investigations and examinations of insurers as he

6-28 deems reasonable to determine whether any person has violated the

6-29 provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS or

6-30 to obtain information useful to enforce or administer these chapters.

6-31 8. Except with respect to any matter committed by specific statute to

6-32 the regulatory authority of another person or agency, adopt such other

6-33 regulations as he deems necessary to carry out the provisions of chapters

6-34 616A to 617, inclusive, of NRS.

6-35 Sec. 12. NRS 616A.465 is hereby amended to read as follows:

6-36 616A.465 1. Except as otherwise provided in this section, the

6-37 division shall:

6-38 (a) Regulate insurers pursuant to chapters 616A to 617, inclusive, of

6-39 NRS; [and]

6-40 (b) Investigate insurers regarding compliance with statutes and the

6-41 division’s regulations [.] ;

6-42 (c) Determine whether an employee leasing company is entitled to a

6-43 certificate of registration pursuant to NRS 616B.673; and

7-1 (d) Regulate employee leasing companies pursuant to the provisions

7-2 of NRS 616B.670 to 616B.697, inclusive.

7-3 2. The commissioner is responsible for reviewing rates, investigating

7-4 the solvency of insurers, authorizing private carriers pursuant to chapter

7-5 680A of NRS and certifying:

7-6 (a) Self-insured employers pursuant to NRS 616B.300 to 616B.330,

7-7 inclusive, and 616B.336;

7-8 (b) Associations of self-insured public or private employers pursuant to

7-9 NRS 616B.350 to 616B.446, inclusive; and

7-10 (c) Third-party administrators pursuant to chapter 683A of NRS.

7-11 3. The department of administration is responsible for contested claims

7-12 relating to industrial insurance pursuant to NRS 616C.310 to 616C.385,

7-13 inclusive. The administrator is responsible for administrative appeals

7-14 pursuant to NRS 616B.215.

7-15 4. The Nevada attorney for injured workers is responsible for legal

7-16 representation of claimants pursuant to NRS 616A.435 to 616A.460,

7-17 inclusive, and 616D.120.

7-18 5. The division is responsible for the investigation of complaints. If a

7-19 complaint is filed with the division, the administrator shall cause to be

7-20 conducted an investigation which includes a review of relevant records and

7-21 interviews of affected persons. If the administrator determines that a

7-22 violation may have occurred, the administrator shall proceed in accordance

7-23 with the provisions of NRS 616D.120 and 616D.130.

7-24 Sec. 13. NRS 616A.470 is hereby amended to read as follows:

7-25 616A.470 1. Except as otherwise provided in subsection 2, each self-

7-26 insured employer, association of self-insured public or private employers

7-27 and private carrier shall compensate the [system, the] office of the Nevada

7-28 attorney for injured workers or the hearings division of the department of

7-29 administration, as appropriate, for all services which the [system, the]

7-30 occupational safety and health review board, the Nevada attorney for

7-31 injured workers, the mediators and the appeals officers provide to those

7-32 employers. The cost of any service must be negotiated by the employer,

7-33 association or private carrier , and [the system,] the Nevada attorney for

7-34 injured workers or the division, as appropriate, before the employer,

7-35 association or private carrier is charged for the service.

7-36 2. All compensation must be on the basis of actual cost and not on a

7-37 basis which includes any subsidy for the [system, the] office of the Nevada

7-38 attorney for injured workers, the division or other employers.

7-39 Sec. 14. NRS 616A.475 is hereby amended to read as follows:

7-40 616A.475 1. [Every employer insured by the system shall furnish the

7-41 system or the administrator, upon request, all information required to carry

7-42 out the purposes of chapters 616A to 616D, inclusive, of NRS. The

7-43 administrator, or any person employed by the administrator for that

8-1 purpose, may examine, under oath, any employer or officer, agent or

8-2 employee thereof.

8-3 2.] Every self-insured employer, association of self-insured public or

8-4 private employers or private carrier shall furnish to the administrator, upon

8-5 request, all information required to carry out the purposes of chapters 616A

8-6 to 616D, inclusive, of NRS. The administrator or any person employed by

8-7 him for that purpose, may examine, under oath, any employer or officer,

8-8 agent or employee thereof.

8-9 [3.] 2. Every insured employer shall keep on hand constantly a

8-10 sufficient supply of blank forms furnished by the insurer.

8-11 Sec. 15. NRS 616A.485 is hereby amended to read as follows:

8-12 616A.485 [1. The books, records and payrolls of an employer

8-13 insured by the system must be open to inspection by the administrator, the

8-14 system or its auditor or agent or by auditors of the department of taxation to

8-15 determine:

8-16 (a) The accuracy of the payroll;

8-17 (b) The number of persons employed; and

8-18 (c) Any other information necessary for the administration of chapters

8-19 616A to 617, inclusive, of NRS.

8-20 2.] The books, records and payroll of an employer who is self-insured,

8-21 a member of an association of self-insured public or private employers or

8-22 insured by a private carrier must be open to inspection by the administrator

8-23 or his auditor or agent [in the manner prescribed in subsection 1.] to

8-24 determine:

8-25 1. The accuracy of the payroll;

8-26 2. The number of persons employed; and

8-27 3. Any other information necessary for the administration of

8-28 chapters 616A to 617, inclusive, of NRS.

8-29 Sec. 16. Chapter 616B of NRS is hereby amended by adding thereto

8-30 the provisions set forth as sections 17 to 20, inclusive, of this act.

8-31 Sec. 17. 1. The chief executive officer of any successor

8-32 organization to the state industrial insurance system shall continue to

8-33 hold in trust any money paid to the system for the purpose of providing

8-34 compensation for industrial accidents and occupational diseases and

8-35 administrative expenses incidental thereto. The successor organization

8-36 shall use that money only for the purpose for which it was paid.

8-37 2. If any successor organization to the state industrial insurance

8-38 system ceases to provide industrial insurance in this state, all money held

8-39 in trust pursuant to subsection 1 must be delivered to the commissioner

8-40 on a date that ensures that all benefits will be paid to qualified claimants

8-41 under policies of industrial insurance previously issued by the state

8-42 industrial insurance system or the successor organization. The

9-1 commissioner shall deposit the money delivered to him pursuant to this

9-2 subsection in the state insurance fund.

9-3 Sec. 18. 1. There is hereby established in the state treasury the

9-4 state insurance fund. The commissioner shall administer the fund.

9-5 2. The money in the fund may be invested by the state treasurer in

9-6 accordance with the provisions of NRS 355.140, 355.150 and 355.160.

9-7 3. Any money delivered to the commissioner pursuant to section 17

9-8 of this act and NRS 696B.360 must be deposited in the fund and be held

9-9 in trust by the commissioner as custodian thereof for the purpose of

9-10 providing compensation for industrial accidents and occupational

9-11 diseases and for administrative expenses incidental thereto.

9-12 Sec. 19. 1. Any successor organization to the state industrial

9-13 insurance system may take as credit as an asset or as a deduction from

9-14 liability on account of reinsurance for reinsurance ceded to an assuming

9-15 alien insurer with security based on discounted reserves for losses that

9-16 were maintained by the system for accounting periods beginning before

9-17 July 1, 1995, at a rate not to exceed 6 percent.

9-18 2. As used in this section, "alien insurer" has the meaning ascribed

9-19 to it in NRS 679A.090.

9-20 Sec. 20. 1. Except as otherwise provided in this section, all officers

9-21 and employees of the system are exempt from the provisions of chapter

9-22 284 of NRS and are entitled to such terms and conditions of employment

9-23 as the manager prescribes.

9-24 2. An employee hired by the system as a classified employee before

9-25 July 1, 1999, retains his rights to reemployment, including, without

9-26 limitation, the right to be placed on an appropriate reemployment list

9-27 maintained by the department of personnel and to be allowed a

9-28 preference on that list. The department of personnel shall maintain such

9-29 an employee on the reemployment list for at least 24 months after the

9-30 effective date of the layoff or until he is reemployed by the executive

9-31 branch of state government, whichever occurs earlier.

9-32 3. The manager shall comply with, and the officers and employees of

9-33 the system are entitled to the rights and privileges granted by, those

9-34 provisions of chapter 284 of NRS governing:

9-35 (a) Sick and disability leave as set forth on NRS 284.355;

9-36 (b) Annual leave as set forth in NRS 284.350;

9-37 (c) Catastrophic leave as set forth in NRS 284.362 to 284.3626,

9-38 inclusive;

9-39 (d) Leave of absence for military service as set forth in NRS 284.365;

9-40 (e) Leave of absence without pay as set forth in NRS 284.360; and

9-41 (f) The plan to encourage continuity of service as set forth in NRS

9-42 284.177.

10-1 4. If the manager lays off an employee described in subsection 2, the

10-2 manager shall:

10-3 (a) Give the employee at least 60 days’ written notice before the

10-4 effective date of the layoff; and

10-5 (b) Provide the department of personnel with such information as is

10-6 necessary for the department to ensure the employee receives his rights to

10-7 reemployment.

10-8 5. As used in this section, "rights to reemployment" means all rights

10-9 to be reemployed by the executive branch of state government established

10-10 by the provisions of chapter 284 of NRS and the regulations adopted

10-11 pursuant thereto. The term does not include the right to displace another

10-12 person employed by the executive branch of state government in lieu of

10-13 being laid off.

10-14 Sec. 21. NRS 616B.027 is hereby amended to read as follows:

10-15 616B.027 1. Every insurer shall provide:

10-16 (a) An office in this state operated by the insurer or its third-party

10-17 administrator in which:

10-18 (1) A complete file of each claim is kept;

10-19 (2) Persons authorized to act for the insurer and, if necessary, licensed

10-20 pursuant to chapter 683A of NRS, may receive information related to a

10-21 claim and provide the services to an employer and his employees required

10-22 by chapters 616A to 617, inclusive, of NRS; and

10-23 (3) An employee or his employer, upon request, is provided with

10-24 information related to a claim filed by the employee or a copy of the

10-25 information from the file for that claim.

10-26 (b) Statewide, toll-free telephone service to that office or accept collect

10-27 calls from injured employees.

10-28 2. [The system and each] Each private carrier shall provide:

10-29 (a) Adequate services to its insured employers in controlling losses; and

10-30 (b) Adequate information on the prevention of industrial accidents and

10-31 occupational diseases.

10-32 Sec. 22. NRS 616B.030 is hereby amended to read as follows:

10-33 616B.030 1. Every policy of insurance issued by a private carrier :

10-34 [or the system:]

10-35 (a) Must be in writing;

10-36 (b) Must contain the insuring agreements and exclusions;

10-37 (c) Is subject to chapters 616A to 617, inclusive, of NRS and regulations

10-38 adopted pursuant to those chapters; and

10-39 (d) If it contains a provision inconsistent with this chapter or chapter

10-40 616A, 616C, 616D or 617 of NRS, shall be deemed to be reformed to

10-41 conform with that chapter.

10-42 2. The commissioner shall, by regulation, prescribe the basic policy to

10-43 be used by private carriers.

11-1 Sec. 23. NRS 616B.036 is hereby amended to read as follows:

11-2 616B.036 1. [The system and private carriers] A private carrier may

11-3 provide industrial insurance for an organization or association of employers

11-4 as a group if:

11-5 (a) The members of the group or organization are engaged in a common

11-6 trade or business; and

11-7 (b) The formation and operation of a program of industrial insurance for

11-8 the organization or association will substantially assist in the handling of

11-9 claims and the prevention of accidents for the employers as a group.

11-10 2. The commissioner must approve each group or organization before a

11-11 policy of industrial insurance may be issued to it.

11-12 3. The commissioner shall adopt regulations for the qualification of

11-13 groups for industrial insurance.

11-14 Sec. 24. NRS 616B.050 is hereby amended to read as follows:

11-15 616B.050 1. The state industrial insurance system is hereby

11-16 established as an independent actuarially funded system to insure

11-17 employers against liability for injuries and occupational diseases for which

11-18 their employees may be entitled to receive compensation pursuant to

11-19 chapters 616A to 616D, inclusive, of NRS or chapter 617 of NRS, and the

11-20 federal [Longshoremen’s] Longshore and Harbor Workers’ Compensation

11-21 Act [.] , 33 U.S.C. §§ 901 et seq. The system may create one or more

11-22 entities to carry out the business of the system, which may be operated

11-23 under any legal name in addition to the state industrial insurance system on

11-24 behalf of the system.

11-25 2. The system is a public agency which administers and is supported by

11-26 the state insurance fund. The executive and legislative departments of the

11-27 state government shall regularly review the system.

11-28 3. The system is entitled but not required to use any services provided

11-29 to state agencies. [Except as otherwise provided for specified positions, its

11-30 employees are in the classified service of the state.]

11-31 Sec. 25. NRS 616B.065 is hereby amended to read as follows:

11-32 616B.065 1. The manager shall select assistant managers who are [in

11-33 the unclassified service of the state and are] entitled to receive annual

11-34 salaries fixed by the manager.

11-35 2. The assistant managers shall serve at the pleasure of the manager.

11-36 3. The assistant managers must be graduates of a 4-year college or

11-37 university with a degree in business administration or public administration

11-38 or an equivalent degree.

11-39 Sec. 26. NRS 616B.068 is hereby amended to read as follows:

11-40 616B.068 The manager is [in the unclassified service of the state but

11-41 is] entitled to receive an annual salary fixed by the governor.

12-1 Sec. 27. NRS 616B.083 is hereby amended to read as follows:

12-2 616B.083 1. The money and assets held in trust by the system

12-3 include:

12-4 (a) All premiums and other money paid to the system;

12-5 (b) All property and securities acquired through the use of money in the

12-6 state insurance fund; and

12-7 (c) All interest and dividends earned upon money in the state insurance

12-8 fund and deposited or invested as provided in chapters 616A to 616D,

12-9 inclusive, of NRS.

12-10 2. The system shall [:

12-11 (a) Report to the commissioner only its financial statement and results of

12-12 operations for the account for current claims in accordance with those

12-13 accounting principles that are prescribed by the commissioner and applied

12-14 to other insurers providing coverage for workers’ compensation.

12-15 (b) Discount] discount its reserve for losses for accounting periods

12-16 beginning on or after July 1, 1995, at a rate determined by the manager, but

12-17 not to exceed 4 percent.

12-18 [(c) Allocate to the account for the administration of extended claims

12-19 created pursuant to NRS 616B.087 $650,000,000 in invested assets.]

12-20 Sec. 28. NRS 616B.086 is hereby amended to read as follows:

12-21 616B.086 1. [Except as otherwise provided in subsection 3, all

12-22 premiums, contributions, penalties, bonds, securities and all other

12-23 properties received, collected or acquired by the system pursuant to the

12-24 terms of chapters 616A to 616D, inclusive, of NRS:

12-25 (a) Must be credited on the records of the system to the state insurance

12-26 fund.

12-27 (b) Constitute, for the purpose of custody thereof, the state insurance

12-28 fund, which must be held by the manager as custodian thereof for the

12-29 benefit of employees and their dependents within the provisions of chapters

12-30 616A to 616D, inclusive, of NRS. The manager is liable on his official

12-31 bond for the faithful performance of his custodial duty.

12-32 2.] The commissioner or the administrator may delegate to a hearing

12-33 officer or panel his authority to take any disciplinary action pursuant to

12-34 NRS 616B.318, 616B.321, 616B.350 to 616B.446, inclusive, 616B.472 or

12-35 616D.120, impose and collect administrative fines pursuant to those

12-36 sections and deposit the money in the fund for workers’ compensation and

12-37 safety.

12-38 [3.] 2. If a hearing officer or panel is not authorized to take disciplinary

12-39 action pursuant to subsection [2] 1 and the commissioner or the

12-40 administrator deposits the money collected from the imposition of

12-41 administrative fines with the state treasurer for credit to the state general

13-1 fund, he may present a claim to the state board of examiners for

13-2 recommendation to the interim finance committee if money is needed to

13-3 pay attorney’s fees or the costs of an investigation, or both.

13-4 Sec. 29. NRS 616B.167 is hereby amended to read as follows:

13-5 616B.167 The manager:

13-6 1. Has full power, authority and jurisdiction over the system.

13-7 2. May perform all acts necessary or convenient in the exercise of any

13-8 power, authority or jurisdiction over the system, either in the administration

13-9 of the system or in connection with the business of insurance to be carried

13-10 on by the system under the provisions of chapters 616A to 616D, inclusive,

13-11 of NRS, including the establishment of premium rates.

13-12 3. May appoint [in the unclassified service of the state no] not more

13-13 than five persons, engaged in management, who report directly to the

13-14 manager or an assistant manager. The manager shall designate these

13-15 positions, and may not change them without the approval of the personnel

13-16 commission. These persons are entitled to receive annual salaries fixed by

13-17 the manager.

13-18 Sec. 30. NRS 616B.185 is hereby amended to read as follows:

13-19 616B.185 1. Any offender confined at the state prison, while engaged

13-20 in work in a prison industry or work program, whether the program is

13-21 operated by an institution of the department of prisons, by contract with a

13-22 public entity or by a private employer, is entitled to coverage under the

13-23 modified program of industrial insurance established by regulations

13-24 adopted by the [system when] administrator if the director of the

13-25 department of prisons [requests such coverage and] complies with the

13-26 provisions of the regulations, and coverage is approved by [the system.] a

13-27 private carrier.

13-28 2. An offender is limited to the rights and remedies established by the

13-29 provisions of the modified program of industrial insurance established by

13-30 regulations adopted by the [system.] administrator. The offender is not

13-31 entitled to any rights and remedies established by the provisions of chapters

13-32 616A to 617, inclusive, of NRS.

13-33 3. The [system] administrator shall, in cooperation with the

13-34 department of prisons and the risk management division of the department

13-35 of administration, adopt regulations setting forth a modified program of

13-36 industrial insurance to provide offenders with industrial insurance against

13-37 personal injuries arising out of and in the course of their work in a prison

13-38 industry or work program.

13-39 Sec. 31. NRS 616B.194 is hereby amended to read as follows:

13-40 616B.194 Each insurer shall cooperate with the commissioner in the

13-41 performance of his duties pursuant to chapters 616A to 616D, inclusive, of

13-42 NRS. Each private carrier [and the system] shall provide the commissioner

14-1 with any information, statistics or data in its records which pertain to any

14-2 employer who is making an application to become self-insured or who is

14-3 self-insured, or who is becoming or who is a member of an association of

14-4 self-insured public or private employers.

14-5 Sec. 32. NRS 616B.224 is hereby amended to read as follows:

14-6 616B.224 1. Every employer who is not a self-insured employer or a

14-7 member of an association of self-insured public or private employers shall,

14-8 at intervals established by his insurer, furnish the insurer with a true and

14-9 accurate payroll showing:

14-10 (a) The total amount paid to employees for services performed;

14-11 (b) The amount of tips reported to him by every employee pursuant to

14-12 26 U.S.C. § 6053(a) whose tips in cash totaled $20 or more; and

14-13 (c) A segregation of employment in accordance with the requirements of

14-14 the commissioner,

14-15 together with the premium due thereon. The payroll and premium must be

14-16 furnished to the insurer on or before the date established by the insurer for

14-17 the receipt of the payroll and premium.

14-18 2. Any employer by agreement in writing with the insurer may arrange

14-19 for the payment of premiums in advance at an interval established by the

14-20 insurer.

14-21 3. [Failure] The failure of any employer to comply with the provisions

14-22 of this section [and NRS 616B.218] operates as a rejection of chapters

14-23 616A to 616D, inclusive, and chapter 617 of NRS . [, effective at the

14-24 expiration of the period covered by his estimate.] The insurer shall notify

14-25 the administrator of each such rejection [.] within the period specified in

14-26 NRS 616B.460.

14-27 4. If an audit of the accounts or actual payroll of an employer shows

14-28 that the actual premium earned exceeds the estimated premium paid in

14-29 advance, the insurer may require the payment of money sufficient to cover

14-30 the deficit, together with such an amount as in his judgment constitutes an

14-31 adequate advance premium for the period covered by the estimate.

14-32 5. The insurer shall notify any employer or his representative by first-

14-33 class mail of any failure on his part to comply with the provisions of this

14-34 section. The notice or its omission does not modify or waive the

14-35 requirements or effective rejection of chapters 616A to 616D, inclusive, of

14-36 NRS as otherwise provided in those chapters.

14-37 6. [The system may impose a penalty not to exceed 10 percent of the

14-38 premiums which are due for the failure of an employer insured by the

14-39 system to submit the information and premium required in subsection 1

14-40 within the time allowed, unless the employer has applied for and been

14-41 granted an extension of that time by the manager.

14-42 7.] To the extent permitted by federal law, the insurer shall vigorously

14-43 pursue the collection of premiums that are due under the provisions of

15-1 chapters 616A to 616D, inclusive, of NRS even if an employer’s debts have

15-2 been discharged in a bankruptcy proceeding.

15-3 Sec. 33. NRS 616B.227 is hereby amended to read as follows:

15-4 616B.227 1. An employer shall:

15-5 (a) Make a copy of each report that an employee files with the employer

15-6 pursuant to 26 U.S.C. § 6053(a) to report the amount of his tips to the

15-7 United States Internal Revenue Service;

15-8 (b) Submit the copy to [the system or] his private carrier upon request

15-9 and retain another copy for his records or, if the employer is self-insured or

15-10 a member of an association of self-insured public or private employers,

15-11 retain the copy for his records; and

15-12 (c) If he is not self-insured or a member of an association of self-insured

15-13 public or private employers, pay the [system or] private carrier the

15-14 premiums for the reported tips at the same rate as he pays on regular wages.

15-15 2. The division shall adopt regulations specifying the form of the

15-16 declaration required pursuant to subsection 1.

15-17 3. The [system,] private carrier, self-insured employer or association

15-18 shall calculate compensation for an employee on the basis of wages paid by

15-19 the employer plus the amount of tips reported by the employee pursuant to

15-20 26 U.S.C. § 6053. Reports made after the date of injury may not be used

15-21 for the calculation of compensation.

15-22 4. An employer shall notify his employees of the requirement to report

15-23 income from tips for the purposes of calculating his federal income tax and

15-24 for including the income in the computation of benefits pursuant to chapters

15-25 616A to 616D, inclusive, of NRS.

15-26 5. The administrator shall adopt such regulations as are necessary to

15-27 carry out the provisions of this section.

15-28 Sec. 34. NRS 616B.230 is hereby amended to read as follows:

15-29 616B.230 [1. As soon as possible after the expiration of each quarter

15-30 year, every] Every state office, department, board, commission, bureau,

15-31 agency or institution, operating by authority of law, and [the auditor or

15-32 comptroller of each county, and the clerk or other chief financial officer of]

15-33 each county, city, school district and other political subdivision [insured by

15-34 the system shall furnish the manager with an accurate payroll of the state

15-35 office, department, board, commission, bureau, agency or institution, and

15-36 county, metropolitan police department, city, or school district or other

15-37 political subdivision showing:

15-38 (a) The aggregate number of shifts worked during the preceding quarter.

15-39 (b) The total amount paid to employees for services performed during

15-40 the quarter.

15-41 (c) A segregation of employment in accordance with the requirements of

15-42 the system.

16-1 2. Each of the state offices, departments, boards, commissions,

16-2 bureaus, agencies and institutions shall submit claims for the amount of

16-3 premiums due to the system. Each of the auditors, comptrollers, clerks and

16-4 other chief financial officers shall make up and submit to the respective

16-5 governing boards of the appropriate county, metropolitan police

16-6 department, city, school district or other political subdivision, for approval,

16-7 claims for the amount of premiums due to the system.

16-8 3. Each public employer described in this section] of this state shall

16-9 budget for industrial insurance in the same manner as for other expenses

16-10 and, if insured by a private carrier, shall pay premiums as required by its

16-11 contract.

16-12 Sec. 35. NRS 616B.386 is hereby amended to read as follows:

16-13 616B.386 1. If an employer wishes to become a member of an

16-14 association of self-insured public or private employers, the employer must:

16-15 (a) Submit an application for membership to the board of trustees or

16-16 third-party administrator of the association; and

16-17 (b) Enter into an indemnity agreement as required by NRS 616B.353.

16-18 2. The membership of the applicant becomes effective when each

16-19 member of the association approves the application or on a later date

16-20 specified by the association. The application for membership and the action

16-21 taken on the application must be maintained as permanent records of the

16-22 board of trustees.

16-23 3. Each member who is a member of an association during the 12

16-24 months immediately following the formation of the association must:

16-25 (a) Have a tangible net worth of at least $500,000; or

16-26 (b) Have had a reported payroll for the previous 12 months which would

16-27 have resulted in a manual premium [calculated according to the regulations

16-28 adopted pursuant to NRS 616B.206] of at least $15,000 [.] , calculated in

16-29 accordance with a manual prepared pursuant to subsection 4 of NRS

16-30 686B.1765.

16-31 Any employer who seeks to become a member of the association

16-32 subsequently must meet the requirement set forth in paragraph (a) or (b)

16-33 unless the commissioner adjusts the requirement for membership in the

16-34 association after conducting an annual review of the actuarial solvency of

16-35 the association pursuant to subsection 1 of NRS 616B.353.

16-36 4. Except as otherwise provided in NRS 616B.389, a member of an

16-37 association may terminate his membership at any time. To terminate his

16-38 membership, a member must submit to the association’s administrator a

16-39 notice of intent to withdraw from the association at least 120 days before

16-40 the effective date of withdrawal. The association’s administrator shall,

16-41 within 10 days after receipt of the notice, notify the commissioner of the

16-42 employer’s intent to withdraw from the association.

17-1 5. The members of an association may cancel the membership of any

17-2 member of the association in accordance with the bylaws of the association.

17-3 6. The association shall:

17-4 (a) Notify the commissioner and the administrator of the termination or

17-5 cancellation of the membership of any member of the association within 10

17-6 days after the termination or cancellation; and

17-7 (b) At the expense of the member whose membership is terminated or

17-8 canceled, maintain coverage for that member for 30 days after notice is

17-9 given pursuant to paragraph (a), unless the association first receives notice

17-10 from the administrator that the member has:

17-11 (1) Become insured by the system;

17-12 (2) Been certified as a self-insured employer pursuant to NRS

17-13 616B.312;

17-14 (3) Become a member of another association of self-insured public or

17-15 private employers; or

17-16 (4) Become insured by a private carrier.

17-17 7. If a member of an association changes his name or form of

17-18 organization, the member remains liable for any obligations incurred or any

17-19 responsibilities imposed pursuant to chapters 616A to 617, inclusive, of

17-20 NRS under his former name or form of organization.

17-21 8. An association is liable for the payment of any compensation

17-22 required to be paid by a member of the association pursuant to chapters

17-23 616A to 616D, inclusive, or chapter 617 of NRS during his period of

17-24 membership. The insolvency or bankruptcy of a member does not relieve

17-25 the association of liability for the payment of the compensation.

17-26 Sec. 36. NRS 616B.386 is hereby amended to read as follows:

17-27 616B.386 1. If an employer wishes to become a member of an

17-28 association of self-insured public or private employers, the employer must:

17-29 (a) Submit an application for membership to the board of trustees or

17-30 third-party administrator of the association; and

17-31 (b) Enter into an indemnity agreement as required by NRS 616B.353.

17-32 2. The membership of the applicant becomes effective when each

17-33 member of the association approves the application or on a later date

17-34 specified by the association. The application for membership and the action

17-35 taken on the application must be maintained as permanent records of the

17-36 board of trustees.

17-37 3. Each member who is a member of an association during the 12

17-38 months immediately following the formation of the association must:

17-39 (a) Have a tangible net worth of at least $500,000; or

17-40 (b) Have had a reported payroll for the previous 12 months which would

17-41 have resulted in a manual premium of at least $15,000, calculated in

17-42 accordance with a manual prepared pursuant to subsection 4 of NRS

17-43 686B.1765.

18-1 Any employer who seeks to become a member of the association

18-2 subsequently must meet the requirement set forth in paragraph (a) or (b)

18-3 unless the commissioner adjusts the requirement for membership in the

18-4 association after conducting an annual review of the actuarial solvency of

18-5 the association pursuant to subsection 1 of NRS 616B.353.

18-6 4. [Except as otherwise provided in NRS 616B.389, a] A member of an

18-7 association may terminate his membership at any time. To terminate his

18-8 membership, a member must submit to the association’s administrator a

18-9 notice of intent to withdraw from the association at least 120 days before

18-10 the effective date of withdrawal. The association’s administrator shall,

18-11 within 10 days after receipt of the notice, notify the commissioner of the

18-12 employer’s intent to withdraw from the association.

18-13 5. The members of an association may cancel the membership of any

18-14 member of the association in accordance with the bylaws of the association.

18-15 6. The association shall:

18-16 (a) Notify the commissioner and the administrator of the termination or

18-17 cancellation of the membership of any member of the association within 10

18-18 days after the termination or cancellation; and

18-19 (b) At the expense of the member whose membership is terminated or

18-20 canceled, maintain coverage for that member for 30 days after notice is

18-21 given pursuant to paragraph (a), unless the association first receives notice

18-22 from the administrator that the member has:

18-23 (1) [Become insured by the system;

18-24 (2)] Been certified as a self-insured employer pursuant to NRS

18-25 616B.312;

18-26 [(3)] (2) Become a member of another association of self-insured

18-27 public or private employers; or

18-28 [(4)] (3) Become insured by a private carrier.

18-29 7. If a member of an association changes his name or form of

18-30 organization, the member remains liable for any obligations incurred or any

18-31 responsibilities imposed pursuant to chapters 616A to 617, inclusive, of

18-32 NRS under his former name or form of organization.

18-33 8. An association is liable for the payment of any compensation

18-34 required to be paid by a member of the association pursuant to chapters

18-35 616A to 616D, inclusive, or chapter 617 of NRS during his period of

18-36 membership. The insolvency or bankruptcy of a member does not relieve

18-37 the association of liability for the payment of the compensation.

18-38 Sec. 37. NRS 616B.460 is hereby amended to read as follows:

18-39 616B.460 1. An employer may elect to purchase industrial insurance

18-40 from a private carrier for his employees pursuant to chapters 616A to 617,

18-41 inclusive, of NRS.

18-42 2. An employer may elect to purchase insurance from an insurer other

18-43 than his present insurer if the employer has:

19-1 (a) Given at least 10 days’ notice to the administrator of the change of

19-2 insurer; and

19-3 (b) Furnished evidence satisfactory to the administrator that the payment

19-4 of compensation has otherwise been secured.

19-5 3. Each private carrier [and the system] shall notify the administrator if

19-6 an employer has changed his insurer or has allowed his insurance to lapse,

19-7 within 24 hours or by the end of the next working day after the insurer has

19-8 notice of the change or lapse.

19-9 Sec. 38. NRS 616B.500 is hereby amended to read as follows:

19-10 616B.500 1. An insurer may enter into a contract to have his plan of

19-11 insurance administered by a third-party administrator.

19-12 2. An insurer shall not enter into a contract with any person for the

19-13 administration of any part of the plan of insurance unless that person

19-14 maintains an office in this state and has a valid certificate issued by the

19-15 commissioner pursuant to NRS 683A.085. [The system may, as a part of a

19-16 contract entered into with an organization for managed care pursuant to

19-17 NRS 616B.515, require the organization to act as its third-party

19-18 administrator.]

19-19 Sec. 39. NRS 616B.527 is hereby amended to read as follows:

19-20 616B.527 A self-insured employer, an association of self-insured

19-21 public or private employers or a private carrier may:

19-22 1. Enter into a contract or contracts with one or more organizations for

19-23 managed care to provide comprehensive medical and health care services to

19-24 employees for injuries and diseases that are compensable pursuant to

19-25 chapters 616A to 617, inclusive, of NRS.

19-26 2. Enter into a contract or contracts with providers of health care,

19-27 including, without limitation, physicians who provide primary care,

19-28 specialists, pharmacies, physical therapists, radiologists, nurses, diagnostic

19-29 facilities, laboratories, hospitals and facilities that provide treatment to

19-30 outpatients, to provide medical and health care services to employees for

19-31 injuries and diseases that are compensable pursuant to chapters 616A to

19-32 617, inclusive, of NRS.

19-33 3. [Use the services of an organization for managed care that has

19-34 entered into a contract with the manager pursuant to NRS 616B.515, but is

19-35 not required to use such services.

19-36 4.] Require employees to obtain medical and health care services for

19-37 their industrial injuries from those organizations and persons with whom

19-38 the self-insured employer, association or private carrier has contracted

19-39 pursuant to subsections 1 and 2, or as the self-insured employer, association

19-40 or private carrier otherwise prescribes.

19-41 [5.] 4. Require employees to obtain the approval of the self-insured

19-42 employer, association or private carrier before obtaining medical and health

19-43 care services for their industrial injuries from a provider of health care who

20-1 has not been previously approved by the self-insured employer, association

20-2 or private carrier.

20-3 Sec. 40. NRS 616B.554 is hereby amended to read as follows:

20-4 616B.554 1. There is hereby established as a special revenue fund in

20-5 the state treasury the subsequent injury fund for self-insured employers,

20-6 which may be used only to make payments in accordance with the

20-7 provisions of NRS 616B.557 and 616B.560. The board shall administer the

20-8 fund based upon recommendations made by the administrator pursuant to

20-9 subsection 8.

20-10 2. All assessments, penalties, bonds, securities and all other properties

20-11 received, collected or acquired by the board for the subsequent injury fund

20-12 for self-insured employers must be delivered to the custody of the state

20-13 treasurer.

20-14 3. All money and securities in the fund must be held by the state

20-15 treasurer as custodian thereof to be used solely for workers’ compensation

20-16 for employees of self-insured employers.

20-17 4. The state treasurer may disburse money from the fund only upon

20-18 written order of the board.

20-19 5. The state treasurer shall invest money of the fund in the same

20-20 manner and in the same securities in which he is authorized to invest state

20-21 general funds which are in his custody. Income realized from the

20-22 investment of the assets of the fund must be credited to the fund.

20-23 6. The board shall adopt regulations for the establishment and

20-24 administration of assessment rates, payments and penalties. Assessment

20-25 rates must reflect the relative hazard of the employments covered by self-

20-26 insured employers, and must be based upon expected annual expenditures

20-27 for claims for payments from the subsequent injury fund for self-insured

20-28 employers. [The system must not be required to pay any assessments,

20-29 payments or penalties into the subsequent injury fund for self-insured

20-30 employers, or any costs associated with the fund.]

20-31 7. The commissioner shall assign an actuary to review the

20-32 establishment of assessment rates. The rates must be filed with the

20-33 commissioner 30 days before their effective date. Any self-insured

20-34 employer who wishes to appeal the rate so filed must do so pursuant to

20-35 NRS 679B.310.

20-36 8. The administrator shall:

20-37 (a) Evaluate any claim submitted to the board for payment or

20-38 reimbursement from the subsequent injury fund for self-insured employers

20-39 and recommend to the board any appropriate action to be taken concerning

20-40 the claim; and

20-41 (b) Submit to the board any other recommendations relating to the fund.

21-1 Sec. 41. NRS 616B.575 is hereby amended to read as follows:

21-2 616B.575 1. There is hereby established as a special revenue fund in

21-3 the state treasury the subsequent injury fund for associations of self-insured

21-4 public or private employers, which may be used only to make payments in

21-5 accordance with the provisions of NRS 616B.578 and 616B.581. The

21-6 board shall administer the fund based upon recommendations made by the

21-7 administrator pursuant to subsection 8.

21-8 2. All assessments, penalties, bonds, securities and all other properties

21-9 received, collected or acquired by the board for the subsequent injury fund

21-10 for associations of self-insured public or private employers must be

21-11 delivered to the custody of the state treasurer.

21-12 3. All money and securities in the fund must be held by the state

21-13 treasurer as custodian thereof to be used solely for workers’ compensation

21-14 for employees of members of associations of self-insured public or private

21-15 employers.

21-16 4. The state treasurer may disburse money from the fund only upon

21-17 written order of the board.

21-18 5. The state treasurer shall invest money of the fund in the same

21-19 manner and in the same securities in which he is authorized to invest state

21-20 general funds which are in his custody. Income realized from the

21-21 investment of the assets of the fund must be credited to the fund.

21-22 6. The board shall adopt regulations for the establishment and

21-23 administration of assessment rates, payments and penalties. Assessment

21-24 rates must reflect the relative hazard of the employments covered by

21-25 associations of self-insured public or private employers, and must be based

21-26 upon expected annual expenditures for claims for payments from the

21-27 subsequent injury fund for associations of self-insured public or private

21-28 employers. [The system must not be required to pay any assessments,

21-29 payments or penalties into the subsequent injury fund for associations of

21-30 self-insured public or private employers, or any costs associated with the

21-31 fund.]

21-32 7. The commissioner shall assign an actuary to review the

21-33 establishment of assessment rates. The rates must be filed with the

21-34 commissioner 30 days before their effective date. Any association of self-

21-35 insured public or private employers that wishes to appeal the rate so filed

21-36 must do so pursuant to NRS 679B.310.

21-37 8. The administrator shall:

21-38 (a) Evaluate any claim submitted to the board for payment or

21-39 reimbursement from the subsequent injury fund for associations of self-

21-40 insured public or private employers and recommend to the board any

21-41 appropriate action to be taken concerning the claim; and

21-42 (b) Submit to the board any other recommendations relating to the fund.

22-1 Sec. 42. NRS 616B.584 is hereby amended to read as follows:

22-2 616B.584 1. There is hereby established as a special revenue fund in

22-3 the state treasury the subsequent injury fund for private carriers, which may

22-4 be used only to make payments in accordance with the provisions of NRS

22-5 616B.587 and 616B.590. The administrator shall administer the fund.

22-6 2. All assessments, penalties, bonds, securities and all other properties

22-7 received, collected or acquired by the administrator for the subsequent

22-8 injury fund for private carriers must be delivered to the custody of the state

22-9 treasurer.

22-10 3. All money and securities in the fund must be held by the state

22-11 treasurer as custodian thereof to be used solely for workers’ compensation

22-12 for employees whose employers are insured by private carriers.

22-13 4. The state treasurer may disburse money from the fund only upon

22-14 written order of the state controller.

22-15 5. The state treasurer shall invest money of the fund in the same

22-16 manner and in the same securities in which he is authorized to invest state

22-17 general funds which are in his custody. Income realized from the

22-18 investment of the assets of the fund must be credited to the fund.

22-19 6. The administrator shall adopt regulations for the establishment and

22-20 administration of assessment rates, payments and penalties. Assessment

22-21 rates must reflect the relative hazard of the employments covered by private

22-22 carriers and must be based upon expected annual expenditures for claims

22-23 for payments from the subsequent injury fund for private carriers. [The

22-24 system must not be required to pay any assessments, payments or penalties

22-25 into the subsequent injury fund for private carriers, or any costs associated

22-26 with the fund.]

22-27 7. The commissioner shall assign an actuary to review the

22-28 establishment of assessment rates. The rates must be filed with the

22-29 commissioner 30 days before their effective date. Any private carrier who

22-30 wishes to appeal the rate so filed must do so pursuant to NRS 679B.310.

22-31 Sec. 43. NRS 616B.659 is hereby amended to read as follows:

22-32 616B.659 1. A sole proprietor may elect to be included within the

22-33 terms, conditions and provisions of chapters 616A to 616D, inclusive, of

22-34 NRS to secure for himself compensation equivalent to that to which an

22-35 employee is entitled for any accidental injury sustained by the sole

22-36 proprietor which arises out of and in the course of his self-employment by

22-37 filing a written notice of election with the administrator and [the system or]

22-38 a private carrier.

22-39 2. A sole proprietor who elects to accept the terms, conditions and

22-40 provisions of chapters 616A to 616D, inclusive, of NRS shall submit to a

22-41 physical examination before his coverage commences. The [system or the]

22-42 private carrier shall prescribe the scope of the examination and shall

23-1 consider it for rating purposes. The cost of the physical examination must

23-2 be paid by the sole proprietor.

23-3 3. A sole proprietor who elects to submit to the provisions of chapters

23-4 616A to 616D, inclusive, of NRS shall pay to the [system or the] private

23-5 carrier premiums in such manner and amounts as may be prescribed by the

23-6 regulations of the commissioner.

23-7 4. If a sole proprietor fails to pay all premiums required by the

23-8 regulations of the commissioner, the failure operates as a rejection of

23-9 chapters 616A to 616D, inclusive, of NRS.

23-10 5. A sole proprietor who elects to be included pursuant to the

23-11 provisions of chapters 616A to 616D, inclusive, of NRS remains subject to

23-12 all terms, conditions and provisions of those chapters and all regulations of

23-13 the commissioner until he files written notice with the administrator and the

23-14 [system or the] private carrier that he withdraws his election.

23-15 6. For the purposes of chapters 616A to 616D, inclusive, of NRS, a

23-16 sole proprietor shall be deemed to be receiving a wage of $300 per month

23-17 unless, at least 90 days before any injury for which he requests coverage, he

23-18 files written notice with the administrator and the [system or the] private

23-19 carrier that he elects to pay an additional amount of premiums for

23-20 additional coverage. If the [system or the] private carrier receives the

23-21 additional premiums it requires for such additional coverage, the sole

23-22 proprietor shall be deemed to be receiving a wage of $1,800 per month.

23-23 Sec. 44. NRS 616B.670 is hereby amended to read as follows:

23-24 616B.670 As used in NRS 616B.670 to 616B.697, inclusive, unless

23-25 the context otherwise requires:

23-26 1. "Applicant" means a person seeking a certificate of [insurance]

23-27 registration pursuant to NRS 616B.670 to 616B.697, inclusive, to operate

23-28 an employee leasing company.

23-29 2. "Client company" means a company which leases employees, for a

23-30 fee, from an employee leasing company pursuant to a written or oral

23-31 agreement.

23-32 3. "Employee leasing company" means a company which, pursuant to a

23-33 written or oral agreement:

23-34 (a) Places any of the regular, full-time employees of a client company on

23-35 its payroll and, for a fee, leases them to the client company on a regular

23-36 basis without any limitation on the duration of their employment; or

23-37 (b) Leases to a client company:

23-38 (1) Five or more part-time or full-time employees; or

23-39 (2) Ten percent or more of the total number of employees within a

23-40 classification of risk established by the [system.] commissioner.

23-41 Sec. 45. NRS 616B.673 is hereby amended to read as follows:

23-42 616B.673 1. A person shall not operate an employee leasing

23-43 company in this state unless he has complied with the provisions of NRS

24-1 616B.670 to 616B.697, inclusive. The [manager] administrator shall issue

24-2 a certificate of [insurance] registration to each applicant who complies

24-3 with the provisions of NRS 616B.670 to 616B.697, inclusive.

24-4 2. Any person who violates the provisions of subsection 1 is guilty of a

24-5 misdemeanor.

24-6 3. Each certificate of [insurance] registration issued by the [manager]

24-7 administrator pursuant to NRS 616B.670 to 616B.697, inclusive, expires 1

24-8 year after it is issued unless renewed before that date.

24-9 Sec. 46. NRS 616B.676 is hereby amended to read as follows:

24-10 616B.676 An applicant for the issuance or renewal of a certificate of

24-11 [insurance] registration must submit to the [manager] administrator a

24-12 written application upon a form provided by the [manager.] administrator.

24-13 Sec. 47. NRS 616B.679 is hereby amended to read as follows:

24-14 616B.679 1. Each application must include:

24-15 (a) The applicant’s name and title of his position with the employee

24-16 leasing company.

24-17 (b) The applicant’s age, place of birth and social security number.

24-18 (c) The applicant’s address.

24-19 (d) The business address of the employee leasing company.

24-20 (e) The business address of the resident agent of the employee leasing

24-21 company, if the applicant is not the resident agent.

24-22 (f) If the applicant is a:

24-23 (1) Partnership, the name of the partnership and the name, address,

24-24 age, social security number and title of each partner.

24-25 (2) Corporation, the name of the corporation and the name, address,

24-26 age, social security number and title of each officer of the corporation.

24-27 (g) Proof of:

24-28 (1) The payment of any taxes required by chapter 364A of NRS.

24-29 (2) The payment of any premiums for industrial insurance required by

24-30 chapters 616A to 617, inclusive, of NRS.

24-31 (3) The payment of contributions or payments in lieu of contributions

24-32 required by chapter 612 of NRS.

24-33 (4) Insurance coverage for any benefit plan from an insurer

24-34 authorized pursuant to Title 57 of NRS that is offered by the employee

24-35 leasing company to its employees.

24-36 [(5) Membership in the National Staff Leasing Association, or its

24-37 successor organization.]

24-38 (h) Any other information the [manager] administrator requires.

24-39 2. Each application must be notarized and signed under penalty of

24-40 perjury:

24-41 (a) If the applicant is a sole proprietorship, by the sole proprietor.

24-42 (b) If the applicant is a partnership, by each partner.

24-43 (c) If the applicant is a corporation, by each officer of the corporation.

25-1 3. An applicant shall submit to the [manager] administrator any

25-2 change in the information required by this section within 30 days after the

25-3 change occurs. The [manager] administrator may revoke the certificate of

25-4 [insurance] registration of an employee leasing company which fails to

25-5 comply with the provisions of [this subsection. If the manager revokes the

25-6 certificate of insurance and cancels the] NRS 616B.670 to 616B.697,

25-7 inclusive.

25-8 4. If an insurer cancels an employee leasing company’s policy, the

25-9 [manager] insurer shall immediately notify the administrator [, who shall

25-10 proceed in accordance with the provisions of NRS 616D.110.] in writing.

25-11 The notice must comply with the provisions of NRS 687B.310 to

25-12 687B.355, inclusive, and must be served personally on or sent by first-

25-13 class mail or electronic transmission to the administrator.

25-14 Sec. 48. NRS 616B.694 is hereby amended to read as follows:

25-15 616B.694 The [manager, in cooperation with the administrator of the

25-16 employment security division of the department of employment, training

25-17 and rehabilitation, shall, and the commissioner of insurance may,]

25-18 administrator may adopt regulations to carry out the provisions of NRS

25-19 616B.670 to 616B.697, inclusive.

25-20 Sec. 49. NRS 616B.697 is hereby amended to read as follows:

25-21 616B.697 An action for damages caused by the failure of an employee

25-22 leasing company to comply with the provisions of NRS 616B.670 to

25-23 616B.697, inclusive, may be brought against any person who is required to

25-24 sign the application for a certificate of [insurance] registration for the

25-25 employee leasing company.

25-26 Sec. 50. NRS 616C.015 is hereby amended to read as follows:

25-27 616C.015 1. An employee or, in the event of the employee’s death,

25-28 one of his dependents, shall provide written notice of an injury that arose

25-29 out of and in the course of employment to the employer of the employee as

25-30 soon as practicable, but within 7 days after the accident.

25-31 2. The notice required by subsection 1 must:

25-32 (a) Be on a form prescribed by the administrator. The form must allow

25-33 the injured employee or his dependent to describe briefly the accident that

25-34 caused the injury or death.

25-35 (b) Be signed by the injured employee or by a person on his behalf, or in

25-36 the event of the employee’s death, by one of his dependents or by a person

25-37 acting on behalf of the dependent.

25-38 (c) Include an explanation of the procedure for filing a claim for

25-39 compensation.

25-40 (d) Be prepared in duplicate so that the injured employee or his

25-41 dependent and the employer can retain a copy of the notice.

25-42 3. Upon receipt of the notice required by subsection 1, the employer,

25-43 the injured employee’s supervisor or the agent of the employer who was in

26-1 charge of the type of work or the area where the accident occurred shall

26-2 sign the notice. The signature of the employer, the supervisor or the

26-3 employer’s agent is an acknowledgment of the receipt of the notice and

26-4 shall not be deemed to be a waiver of any of the employer’s defenses or

26-5 rights.

26-6 4. An employer shall maintain a sufficient supply of the forms required

26-7 to file the notice required by subsection 1 for use by his employees.

26-8 5. An employer shall retain any notice provided pursuant to subsection

26-9 1 for 3 years after the date of the accident. An employer insured by [the

26-10 system or] a private carrier shall not file a notice of injury with the [system

26-11 or the] private carrier.

26-12 Sec. 51. NRS 616C.055 is hereby amended to read as follows:

26-13 616C.055 1. The insurer may not, in accepting responsibility for any

26-14 charges, use fee schedules which unfairly discriminate among physicians

26-15 and chiropractors.

26-16 2. If a physician or chiropractor is removed from the panel established

26-17 pursuant to NRS 616C.090 or from participation in a plan for managed care

26-18 established pursuant to NRS [616B.515 or] 616B.527, he must not be paid

26-19 for any services rendered to the injured employee after the date of his

26-20 removal.

26-21 Sec. 52. NRS 616C.090 is hereby amended to read as follows:

26-22 616C.090 1. The administrator shall establish a panel of physicians

26-23 and chiropractors who have demonstrated special competence and interest

26-24 in industrial health to treat injured employees under chapters 616A to

26-25 616D, inclusive, of NRS. Every employer whose insurer has not entered

26-26 into a contract with an organization for managed care or with providers of

26-27 health care services pursuant to NRS [616B.515] 616B.527 shall maintain

26-28 a list of those physicians and chiropractors on the panel who are reasonably

26-29 accessible to his employees.

26-30 2. An injured employee whose employer’s insurer has not entered into

26-31 a contract with an organization for managed care or with providers of

26-32 health care services pursuant to NRS 616B.527 may choose his treating

26-33 physician or chiropractor from the panel of physicians and chiropractors. If

26-34 the injured employee is not satisfied with the first physician or chiropractor

26-35 he so chooses, he may make an alternative choice of physician or

26-36 chiropractor from the panel if the choice is made within 90 days after his

26-37 injury. The insurer shall notify the first physician or chiropractor in writing.

26-38 The notice must be postmarked within 3 working days after the insurer

26-39 receives knowledge of the change. The first physician or chiropractor must

26-40 be reimbursed only for the services he rendered to the injured employee up

26-41 to and including the date of notification. Any further change is subject to

26-42 the approval of the insurer, which must be granted or denied within 10 days

26-43 after a written request for such a change is received from the injured

27-1 employee. If no action is taken on the request within 10 days, the request

27-2 shall be deemed granted. Any request for a change of physician or

27-3 chiropractor must include the name of the new physician or chiropractor

27-4 chosen by the injured employee.

27-5 3. An injured employee employed or residing in any county in this state

27-6 whose employer’s insurer has entered into a contract with an organization

27-7 for managed care or with providers of health care services pursuant to

27-8 NRS 616B.527 must choose his treating physician or chiropractor pursuant

27-9 to the terms of that contract. If the employee, after choosing his treating

27-10 physician or chiropractor, moves to a county which is not served by the

27-11 organization for managed care or providers of health care services named

27-12 in the contract and the insurer determines that it is impractical for the

27-13 employee to continue treatment with the physician or chiropractor, the

27-14 employee must choose a treating physician or chiropractor who has agreed

27-15 to the terms of that contract unless the insurer authorizes the employee to

27-16 choose another physician or chiropractor.

27-17 4. Except when emergency medical care is required and except as

27-18 otherwise provided in NRS 616C.055, the insurer is not responsible for any

27-19 charges for medical treatment or other accident benefits furnished or

27-20 ordered by any physician, chiropractor or other person selected by the

27-21 employee in disregard of the provisions of this section or for any

27-22 compensation for any aggravation of the employee’s injury attributable to

27-23 improper treatments by such physician, chiropractor or other person.

27-24 5. The administrator may order necessary changes in a panel of

27-25 physicians and chiropractors and shall suspend or remove any physician or

27-26 chiropractor from a panel for good cause shown.

27-27 6. An injured employee may receive treatment by more than one

27-28 physician or chiropractor if the insurer provides written authorization for

27-29 such treatment.

27-30 Sec. 53. NRS 616C.110 is hereby amended to read as follows:

27-31 616C.110 1. For the purposes of NRS [616B.540,] 616B.557,

27-32 616C.490 and 617.459, the division shall adopt regulations incorporating

27-33 the American Medical Association’s Guides to the Evaluation of Permanent

27-34 Impairment by reference and may amend those regulations from time to

27-35 time as it deems necessary. In adopting the Guides to the Evaluation of

27-36 Permanent Impairment, the division shall consider the edition most recently

27-37 published by the American Medical Association.

27-38 2. If the Guides to the Evaluation of Permanent Impairment adopted by

27-39 the division contain more than one method of determining the rating of an

27-40 impairment, the administrator shall designate by regulation the method

27-41 which must be used to rate an impairment pursuant to NRS 616C.490.

28-1 Sec. 54. NRS 616C.190 is hereby amended to read as follows:

28-2 616C.190 1. Except as otherwise provided in subsection 4 of NRS

28-3 616B.600, if an employee who has been hired or is regularly employed in

28-4 this state receives a personal injury by an accident arising out of and in the

28-5 course of such employment outside of this state, he, or his dependents in

28-6 case of his death, are entitled to receive compensation according to the law

28-7 of this state, and such compensation is the exclusive remedy of the

28-8 employee or dependents.

28-9 2. The provisions of this section apply only to those injuries received

28-10 by the employee within 6 months after leaving this state, unless before the

28-11 expiration of the 6-month period the employer has filed with the [system

28-12 or] private carrier or, in the case of a self-insured employer or an

28-13 association of self-insured public or private employers, with the

28-14 administrator notice that he has elected to extend the coverage for a greater

28-15 period.

28-16 Sec. 55. NRS 616C.200 is hereby amended to read as follows:

28-17 616C.200 1. If an employee who has been hired or is regularly

28-18 employed in this state receives a personal injury by an accident arising out

28-19 of and in the course of such employment outside this state, and he, or his

28-20 personal or legal representatives, dependents or next of kin commence any

28-21 action or proceeding in any other state to recover any damages or

28-22 compensation from his employer for the injury or death, the act of

28-23 commencing such an action or proceeding constitutes an irrevocable waiver

28-24 of all compensation for the injury or death to which persons would

28-25 otherwise have been entitled under the laws of this state.

28-26 2. If the injured employee [,] or his personal or legal representatives,

28-27 dependents or next of kin recover a final judgment against the employer for

28-28 damages arising out of the injury or death in any court of competent

28-29 jurisdiction in any other state, the compensation which would otherwise

28-30 have been payable under the laws of this state, up to the full amount

28-31 thereof, but less any sums previously paid for the injury or death, must be

28-32 applied in satisfaction of the judgment as follows:

28-33 (a) Upon receipt of an authenticated copy of the final judgment and writ

28-34 of execution or other process issued in aid thereof, the insurer shall

28-35 immediately determine the total amount of compensation which would have

28-36 been payable under the laws of this state if a claim therefor had been made

28-37 to the insurer. In the case of compensation payable in installments, the

28-38 insurer shall convert it into a lump sum by such a system of computation as

28-39 the administrator deems proper.

28-40 (b) The insurer shall thereupon order to be paid in full or partial

28-41 satisfaction of the judgment a sum not to exceed the total amount of

28-42 compensation computed as provided in this section or the amount of the

28-43 judgment, whichever is less.

29-1 (c) Except for a self-insured employer or an employer who is a member

29-2 of an association of self-insured public or private employers, if the

29-3 judgment is satisfied fully by the employer before any payment by the

29-4 [system or] private carrier pursuant to paragraph (b), the amount payable

29-5 thereunder must be paid to the employer.

29-6 Sec. 56. NRS 616C.215 is hereby amended to read as follows:

29-7 616C.215 1. If an injured employee or, in the event of his death, his

29-8 dependents, bring an action in tort against his employer to recover payment

29-9 for an injury which is compensable under chapters 616A to 616D,

29-10 inclusive, or chapter 617 of NRS and, notwithstanding the provisions of

29-11 NRS 616A.020, receive payment from the employer for that injury:

29-12 (a) The amount of compensation the injured employee or his dependents

29-13 are entitled to receive pursuant to the provisions of chapters 616A to 616D,

29-14 inclusive, of NRS, including any future compensation, must be reduced by

29-15 the amount paid by the employer.

29-16 (b) The insurer, or in the case of claims involving the uninsured

29-17 employer’s claim fund or a subsequent injury fund the administrator, has a

29-18 lien upon the total amount paid by the employer if the injured employee or

29-19 his dependents receive compensation pursuant to the provisions of chapters

29-20 616A to 616D, inclusive, of NRS.

29-21 This subsection is applicable whether the money paid to the employee or

29-22 his dependents by the employer is classified as a gift, a settlement or

29-23 otherwise. The provisions of this subsection do not grant to an injured

29-24 employee any right of action in tort to recover damages from his employer

29-25 for his injury.

29-26 2. When an employee receives an injury for which compensation is

29-27 payable pursuant to the provisions of chapters 616A to 616D, inclusive, of

29-28 NRS and which was caused under circumstances creating a legal liability in

29-29 some person, other than the employer or a person in the same employ, to

29-30 pay damages in respect thereof:

29-31 (a) The injured employee, or in case of death his dependents, may take

29-32 proceedings against that person to recover damages, but the amount of the

29-33 compensation the injured employee or his dependents are entitled to

29-34 receive pursuant to the provisions of chapters 616A to 616D, inclusive, of

29-35 NRS, including any future compensation, must be reduced by the amount of

29-36 the damages recovered, notwithstanding any act or omission of the

29-37 employer or a person in the same employ which was a direct or proximate

29-38 cause of the employee’s injury.

29-39 (b) If the injured employee, or in case of death his dependents, receive

29-40 compensation pursuant to the provisions of chapters 616A to 616D,

29-41 inclusive, of NRS, the insurer, or in case of claims involving the uninsured

29-42 employers’ claim fund or a subsequent injury fund the administrator, has a

29-43 right of action against the person so liable to pay damages and is

30-1 subrogated to the rights of the injured employee or of his dependents to

30-2 recover therefor.

30-3 3. When an injured employee incurs an injury for which compensation

30-4 is payable pursuant to the provisions of chapters 616A to 616D, inclusive,

30-5 of NRS and which was caused under circumstances entitling him, or in the

30-6 case of death his dependents, to receive proceeds under his employer’s

30-7 policy of uninsured or underinsured vehicle coverage:

30-8 (a) The injured employee, or in the case of death his dependents, may

30-9 take proceedings to recover those proceeds, but the amount of

30-10 compensation the injured employee or his dependents are entitled to

30-11 receive pursuant to the provisions of chapters 616A to 616D, inclusive, of

30-12 NRS, including any future compensation, must be reduced by the amount of

30-13 proceeds received.

30-14 (b) If an injured employee, or in the case of death his dependents,

30-15 receive compensation pursuant to the provisions of chapters 616A to 616D,

30-16 inclusive, of NRS, the insurer, or in the case of claims involving the

30-17 uninsured employers’ claim fund or a subsequent injury fund the

30-18 administrator, is subrogated to the rights of the injured employee or his

30-19 dependents to recover proceeds under the employer’s policy of uninsured

30-20 or underinsured vehicle coverage. The insurer and the administrator are not

30-21 subrogated to the rights of an injured employee or his dependents under a

30-22 policy of uninsured or underinsured vehicle coverage purchased by the

30-23 employee.

30-24 4. In any action or proceedings taken by the insurer or the

30-25 administrator pursuant to this section, evidence of the amount of

30-26 compensation, accident benefits and other expenditures which the insurer,

30-27 the uninsured employers’ claim fund or a subsequent injury fund have paid

30-28 or become obligated to pay by reason of the injury or death of the employee

30-29 is admissible. If in such action or proceedings the insurer or the

30-30 administrator recovers more than those amounts, the excess must be paid to

30-31 the injured employee or his dependents.

30-32 5. In any case where the insurer or the administrator is subrogated to

30-33 the rights of the injured employee or of his dependents as provided in

30-34 subsection 2 or 3, the insurer or the administrator has a lien upon the total

30-35 proceeds of any recovery from some person other than the employer,

30-36 whether the proceeds of such recovery are by way of judgment, settlement

30-37 or otherwise. The injured employee, or in the case of his death his

30-38 dependents, are not entitled to double recovery for the same injury,

30-39 notwithstanding any act or omission of the employer or a person in the

30-40 same employ which was a direct or proximate cause of the employee’s

30-41 injury.

30-42 6. The lien provided for under subsection 1 or 5 includes the total

30-43 compensation expenditure incurred by the insurer, the uninsured

31-1 employers’ claim fund or a subsequent injury fund for the injured employee

31-2 and his dependents.

31-3 7. An injured employee, or in the case of death his dependents, shall

31-4 notify the insurer, or in the case of claims involving the uninsured

31-5 employers’ claim fund or a subsequent injury fund the administrator, in

31-6 writing before initiating a proceeding or action pursuant to this section.

31-7 8. Within 15 days after the date of recovery by way of actual receipt of

31-8 the proceeds of the judgment, settlement or otherwise:

31-9 (a) The injured employee or his dependents, or the attorney or

31-10 representative of the injured employee or his dependents; and

31-11 (b) The third-party insurer,

31-12 shall notify the insurer, or in the case of claims involving the uninsured

31-13 employers’ claim fund or a subsequent injury fund the administrator, of the

31-14 recovery and pay to the insurer or the administrator, respectively, the

31-15 amount due under this section together with an itemized statement showing

31-16 the distribution of the total recovery. The attorney or representative of the

31-17 injured employee or his dependents and the third-party insurer are jointly

31-18 and severally liable for any amount to which an insurer is entitled pursuant

31-19 to this section if the attorney, representative or third-party insurer has

31-20 knowledge of the lien provided for in this section.

31-21 9. An insurer shall not sell its lien to a third-party insurer unless the

31-22 injured employee or his dependents, or the attorney or representative of the

31-23 injured employee or his dependents, refuses to provide to the insurer

31-24 information concerning the action against the third party.

31-25 10. In any trial of an action by the injured employee, or in the case of

31-26 his death by his dependents, against a person other than the employer or a

31-27 person in the same employ, the jury must receive proof of the amount of all

31-28 payments made or to be made by the insurer or the administrator. The court

31-29 shall instruct the jury substantially as follows:

31-30 Payment of workmen’s compensation benefits by the insurer, or

31-31 in the case of claims involving the uninsured employers’ claim fund

31-32 or a subsequent injury fund the administrator, is based upon the fact

31-33 that a compensable industrial accident occurred, and does not

31-34 depend upon blame or fault. If the plaintiff does not obtain a

31-35 judgment in his favor in this case, he is not required to repay his

31-36 employer, the insurer or the administrator any amount paid to him

31-37 or paid on his behalf by his employer, the insurer or the

31-38 administrator.

31-39 If you decide that the plaintiff is entitled to judgment against the

31-40 defendant, you shall find his damages in accordance with the court’s

31-41 instructions on damages and return your verdict in the plaintiff’s

31-42 favor in the amount so found without deducting the amount of any

32-1 compensation benefits paid to or for the plaintiff. The law provides

32-2 a means by which any compensation benefits will be repaid from

32-3 your award.

32-4 11. For the purposes of calculating an employer’s premium, the

32-5 employer’s account with the [system] private carrier must be credited with

32-6 an amount equal to that recovered by the [system] private carrier from a

32-7 third party pursuant to this section, less the [system’s] private carrier’s

32-8 share of the expenses of litigation incurred in obtaining the recovery,

32-9 except that the total credit must not exceed the amount of compensation

32-10 actually paid or reserved by the [system] private carrier on the injured

32-11 employee’s claim.

32-12 12. As used in this section, "third-party insurer" means an insurer that

32-13 issued to a third party who is liable for damages pursuant to subsection 2, a

32-14 policy of liability insurance the proceeds of which are recoverable pursuant

32-15 to this section. The term includes an insurer that issued to an employer a

32-16 policy of uninsured or underinsured vehicle coverage.

32-17 Sec. 57. NRS 616C.220 is hereby amended to read as follows:

32-18 616C.220 1. The division shall designate one:

32-19 (a) Third-party administrator who has a valid certificate issued by the

32-20 commissioner pursuant to NRS 683A.085; or

32-21 (b) Insurer, other than a self-insured employer or association of self-

32-22 insured public or private employers,

32-23 to administer claims against the uninsured employers’ claim fund. The

32-24 designation must be made pursuant to reasonable competitive bidding

32-25 procedures established by the administrator.

32-26 2. An employee may receive compensation from the uninsured

32-27 employers’ claim fund if:

32-28 (a) He was hired in this state or he is regularly employed in this state;

32-29 (b) He suffers an accident or injury in this state which arises out of and

32-30 in the course of his employment;

32-31 (c) He files a claim for compensation with the division; and

32-32 (d) He makes an irrevocable assignment to the division of a right to be

32-33 subrogated to the rights of the injured employee pursuant to NRS

32-34 616C.215.

32-35 [2.] 3. If the division receives a claim pursuant to subsection [1,] 2, the

32-36 division shall immediately notify the employer of the claim.

32-37 [3.] 4. For the purposes of this section, the employer has the burden of

32-38 proving that he provided mandatory industrial insurance coverage for the

32-39 employee or that he was not required to maintain industrial insurance for

32-40 the employee.

32-41 [4.] 5. Any employer who has failed to provide mandatory coverage

32-42 required by the provisions of chapters 616A to 616D, inclusive, of NRS is

33-1 liable for all payments made on his behalf, including any benefits,

33-2 administrative costs or attorney’s fees paid from the uninsured employers’

33-3 claim fund or incurred by the division.

33-4 [5.] 6. The division:

33-5 (a) May recover from the employer the payments made by the division

33-6 that are described in subsection [4] 5 and any accrued interest by bringing a

33-7 civil action in district court.

33-8 (b) In any civil action brought against the employer, is not required to

33-9 prove that negligent conduct by the employer was the cause of the

33-10 employee’s injury.

33-11 (c) May enter into a contract with any person to assist in the collection

33-12 of any liability of an uninsured employer.

33-13 (d) In lieu of a civil action, may enter into an agreement or settlement

33-14 regarding the collection of any liability of an uninsured employer.

33-15 [6.] 7. The division shall:

33-16 (a) Determine whether the employer was insured within 30 days after

33-17 receiving notice of the claim from the employee.

33-18 (b) Assign the claim to the [system] third-party administrator or

33-19 insurer designated pursuant to subsection 1 for administration [of the

33-20 claim, payment of benefits and reimbursement of costs of administration

33-21 and benefits paid to the system. Upon determining that a claim is invalid,

33-22 the system] and payment of compensation.

33-23 Upon determining whether the claim is accepted or denied, the

33-24 designated third-party administrator or insurer shall notify the [claimant,]

33-25 injured employee, the named employer and the division [that the claim will

33-26 not be assigned for benefits from the uninsured employers’ claim fund.

33-27 7.] of its determination.

33-28 (c) Upon demonstration of the:

33-29 (1) Costs incurred by the designated third-party administrator or

33-30 insurer to administer the claim or pay compensation to the injured

33-31 employee; or

33-32 (2) Amount that the designated third-party administrator or insurer

33-33 will pay for administrative expenses or compensation to the injured

33-34 employee and that such amounts are justified by the circumstances of the

33-35 claim,

33-36 the division shall authorize payment from the uninsured employers’

33-37 claim fund.

33-38 8. Any party aggrieved by a [decision] determination regarding the

33-39 administration of an assigned claim or a [decision] determination made by

33-40 the division or by the [system] designated third-party administrator or

33-41 insurer regarding any claim made pursuant to this section may appeal that

33-42 [decision] determination within 60 days after the [decision] determination

33-43 is rendered to the hearings division of the department of administration in

34-1 the manner provided by NRS 616C.305 and 616C.315 to 616C.385,

34-2 inclusive.

34-3 [8.] 9. All insurers shall bear a proportionate amount of a claim made

34-4 pursuant to chapters 616A to 616D, inclusive, of NRS, and are entitled to a

34-5 proportionate amount of any collection made pursuant to this section as an

34-6 offset against future liabilities.

34-7 [9.] 10. An uninsured employer is liable for the interest on any amount

34-8 paid on his claims from the uninsured employers’ claim fund. The interest

34-9 must be calculated at a rate equal to the prime rate at the largest bank in

34-10 Nevada, as ascertained by the commissioner of financial institutions, on

34-11 January 1 or July 1, as the case may be, immediately preceding the date of

34-12 the claim, plus 3 percent, compounded monthly, from the date the claim is

34-13 paid from the fund until payment is received by the division from the

34-14 employer.

34-15 [10.] 11. Attorney’s fees recoverable by the division pursuant to this

34-16 section must be:

34-17 (a) If a private attorney is retained by the division, paid at the usual and

34-18 customary rate for that attorney.

34-19 (b) If the attorney is an employee of the division, paid at the rate

34-20 established by regulations adopted by the division.

34-21 Any money collected must be deposited [to] in the uninsured employers’

34-22 claim fund.

34-23 [11.] 12. In addition to any other liabilities provided for in this section,

34-24 the administrator may impose an administrative fine of not more than

34-25 $10,000 against an employer if the employer fails to provide mandatory

34-26 coverage required by the provisions of chapters 616A to 616D, inclusive,

34-27 of NRS.

34-28 Sec. 58. NRS 616C.255 is hereby amended to read as follows:

34-29 616C.255 1. [The system and each] Each private carrier shall collect

34-30 a premium upon the total payroll of every employer insured by the [system

34-31 or] private carrier at the rate filed with the commissioner pursuant to

34-32 chapter 686B of NRS.

34-33 2. Every employer paying this premium is relieved from furnishing

34-34 accident benefits, and the accident benefits must be provided by the

34-35 [system or] private carrier.

34-36 3. The [system or] private carrier is liable for any accident benefits

34-37 provided in this section. The account provided for accident benefits must

34-38 be kept as a separate account on the records of the [system or] private

34-39 carrier.

34-40 Sec. 59. NRS 616C.260 is hereby amended to read as follows:

34-41 616C.260 1. All fees and charges for accident benefits must not:

34-42 (a) Exceed the fees and charges usually paid in the state for similar

34-43 treatment.

35-1 (b) Be unfairly discriminatory as between persons legally qualified to

35-2 provide the particular service for which the fees or charges are asked.

35-3 2. The administrator shall, giving consideration to the fees and charges

35-4 being paid in the state, establish a schedule of reasonable fees and charges

35-5 allowable for accident benefits provided to injured employees whose

35-6 insurers have not contracted with an organization for managed care or with

35-7 providers of health care services pursuant to NRS [616B.515.] 616B.527.

35-8 The administrator shall review and revise the schedule on or before

35-9 October 1 of each year. The administrator may increase or decrease the

35-10 schedule, but shall not increase the schedule by any factor greater than the

35-11 corresponding annual increase in the Consumer Price Index , [(] Medical

35-12 Care Component , [),] unless the advisory council of the division approves

35-13 such an increase.

35-14 3. The administrator may request a health insurer, health maintenance

35-15 organization or provider of accident benefits, an agent or employee of such

35-16 a person, or an agency of the state, to provide the administrator with such

35-17 information concerning fees and charges paid for similar services as he

35-18 deems necessary to carry out the provisions of subsection 2. The

35-19 administrator shall require a person or entity providing records or reports of

35-20 fees charged to provide interpretation and identification concerning the

35-21 information delivered. The administrator may impose an administrative fine

35-22 of $500 for each refusal to provide the information requested pursuant to

35-23 this subsection.

35-24 4. The division may adopt reasonable regulations necessary to carry

35-25 out the provisions of this section. The regulations must include provisions

35-26 concerning:

35-27 (a) Standards for the development of the schedule of fees and charges;

35-28 (b) The periodic revision of the schedule; and

35-29 (c) The monitoring of compliance by providers of benefits with the

35-30 adopted schedule of fees and charges.

35-31 5. The division shall adopt regulations requiring the utilization of a

35-32 system of billing codes as recommended by the American Medical

35-33 Association.

35-34 Sec. 60. NRS 616C.275 is hereby amended to read as follows:

35-35 616C.275 1. If the administrator finds that the employer is furnishing

35-36 the requirements of accident benefits in such a manner that there are

35-37 reasonable grounds for believing that the health, life or recovery of the

35-38 employee is being endangered or impaired thereby, or that an employer has

35-39 failed to provide benefits pursuant to NRS 616C.265 for which he has

35-40 made arrangements, the administrator may, upon application of the

35-41 employee, or upon his own motion, order a change of physicians or

35-42 chiropractors or of any other requirements of accident benefits.

36-1 2. If the administrator orders a change of physicians or chiropractors or

36-2 of any other accident benefits, the cost of the change must be borne by the

36-3 insurer.

36-4 3. The cause of action of an insured employee against an employer

36-5 insured by [the system or] a private carrier must be assigned to the [system

36-6 or the] private carrier.

36-7 Sec. 61. NRS 616C.355 is hereby amended to read as follows:

36-8 616C.355 At any time 10 or more days before a scheduled hearing

36-9 before an appeals officer, the administrator [, the manager or the

36-10 manager’s] or the administrator’s designee, a party shall mail or deliver to

36-11 the opposing party any affidavit or declaration which he proposes to

36-12 introduce into evidence and notice to the effect that unless the opposing

36-13 party, within 7 days after the mailing or delivery of such affidavit or

36-14 declaration, mails or delivers to the proponent a request to cross-examine

36-15 the affiant or declarant, his right to cross-examine the affiant or declarant is

36-16 waived and the affidavit or declaration, if introduced into evidence, will

36-17 have the same effect as if the affiant or declarant had given sworn

36-18 testimony before the appeals officer, the administrator [, the manager or the

36-19 manager’s] or the administrator’s designee.

36-20 Sec. 62. NRS 616C.385 is hereby amended to read as follows:

36-21 616C.385 If a party petitions the district court for judicial review of a

36-22 final decision of an appeals officer, the [manager or the manager’s]

36-23 administrator or the administrator’s designee, and the petition is found by

36-24 the district court to be frivolous or brought without reasonable grounds, the

36-25 district court may order costs and a reasonable attorney’s fee to be paid by

36-26 the petitioner.

36-27 Sec. 63. NRS 616C.475 is hereby amended to read as follows:

36-28 616C.475 1. Except as otherwise provided in this section, NRS

36-29 616C.175 and 616C.390, every employee in the employ of an employer,

36-30 within the provisions of chapters 616A to 616D, inclusive, of NRS, who is

36-31 injured by accident arising out of and in the course of employment, or his

36-32 dependents, is entitled to receive for the period of temporary total

36-33 disability, 66 2/3 percent of the average monthly wage.

36-34 2. Except as otherwise provided in NRS 616B.185 and 616B.186, an

36-35 injured employee or his dependents are not entitled to accrue or be paid any

36-36 benefits for a temporary total disability during the time the injured

36-37 employee is incarcerated. The injured employee or his dependents are

36-38 entitled to receive such benefits when the injured employee is released from

36-39 incarceration if he is certified as temporarily totally disabled by a physician

36-40 or chiropractor.

36-41 3. If a claim for the period of temporary total disability is allowed, the

36-42 first payment pursuant to this section must be issued by the insurer within

37-1 14 working days after receipt of the initial certification of disability and

37-2 regularly thereafter.

37-3 4. Any increase in compensation and benefits effected by the

37-4 amendment of subsection 1 is not retroactive.

37-5 5. Payments for a temporary total disability must cease when:

37-6 (a) A physician or chiropractor determines that the employee is

37-7 physically capable of any gainful employment for which the employee is

37-8 suited, after giving consideration to the employee’s education, training and

37-9 experience;

37-10 (b) The employer offers the employee light-duty employment or

37-11 employment that is modified according to the limitations or restrictions

37-12 imposed by a physician or chiropractor pursuant to subsection 7; or

37-13 (c) Except as otherwise provided in NRS 616B.185 and 616B.186, the

37-14 employee is incarcerated.

37-15 6. Each insurer may, with each check that it issues to an injured

37-16 employee for a temporary total disability, include a form approved by the

37-17 division for the injured employee to request continued compensation for the

37-18 temporary total disability.

37-19 7. A certification of disability issued by a physician or chiropractor

37-20 must:

37-21 (a) Include the period of disability and a description of any physical

37-22 limitations or restrictions imposed upon the work of the employee;

37-23 (b) Specify whether the limitations or restrictions are permanent or

37-24 temporary; and

37-25 (c) Be signed by the treating physician or chiropractor authorized

37-26 pursuant to NRS [616B.515 or] 616B.527.

37-27 8. If the certification of disability specifies that the physical limitations

37-28 or restrictions are temporary, the employer of the employee at the time of

37-29 his accident is not required to comply with NRS 616C.545 to 616C.575,

37-30 inclusive, and 616C.590 or the regulations adopted by the division

37-31 governing vocational rehabilitation services if the employer offers the

37-32 employee a position that is substantially similar to the employee’s position

37-33 at the time of his injury in relation to the location of the employment, the

37-34 hours he is required to work and the salary he will be paid.

37-35 Sec. 64. NRS 616C.535 is hereby amended to read as follows:

37-36 616C.535 1. [The system] A private carrier may execute agreements

37-37 for the provision of vocational rehabilitation services for injured employees

37-38 with the employment security division of the department of employment,

37-39 training and rehabilitation, the rehabilitation division of the department of

37-40 human resources and any other state or federal agency which provides such

37-41 services. The fees for those services must be established by the agency

37-42 which provides the services. The provisions of this subsection do not

38-1 preclude the [system] private carrier from providing vocational

38-2 rehabilitation services for injured employees.

38-3 2. The administrator shall adopt regulations concerning the use of

38-4 programs that provide vocational rehabilitation services and which are

38-5 located outside Nevada.

38-6 Sec. 65. NRS 616D.050 is hereby amended to read as follows:

38-7 616D.050 1. Appeals officers, the administrator [, the manager and

38-8 the manager’s] and the administrator’s designee, in conducting hearings or

38-9 other proceedings pursuant to the provisions of chapters 616A to 616D,

38-10 inclusive, of NRS or regulations adopted pursuant to those chapters may:

38-11 (a) Issue subpoenas requiring the attendance of any witness or the

38-12 production of books, accounts, papers, records and documents.

38-13 (b) Administer oaths.

38-14 (c) Certify to official acts.

38-15 (d) Call and examine under oath any witness or party to a claim.

38-16 (e) Maintain order.

38-17 (f) Rule upon all questions arising during the course of a hearing or

38-18 proceeding.

38-19 (g) Permit discovery by deposition or interrogatories.

38-20 (h) Initiate and hold conferences for the settlement or simplification of

38-21 issues.

38-22 (i) Dispose of procedural requests or similar matters.

38-23 (j) Generally regulate and guide the course of a pending hearing or

38-24 proceeding.

38-25 2. Hearing officers, in conducting hearings or other proceedings

38-26 pursuant to the provisions of chapters 616A to 616D, inclusive, of NRS or

38-27 regulations adopted pursuant to those chapters, may:

38-28 (a) Issue subpoenas requiring the attendance of any witness or the

38-29 production of books, accounts, papers, records and documents that are

38-30 relevant to the dispute for which the hearing or other proceeding is being

38-31 held.

38-32 (b) Maintain order.

38-33 (c) Permit discovery by deposition or interrogatories.

38-34 (d) Initiate and hold conferences for the settlement or simplification of

38-35 issues.

38-36 (e) Dispose of procedural requests or similar matters.

38-37 (f) Generally regulate and guide the course of a pending hearing or

38-38 proceeding.

38-39 Sec. 66. NRS 616D.070 is hereby amended to read as follows:

38-40 616D.070 If any person:

38-41 1. Disobeys an order of an appeals officer, a hearing officer, the

38-42 administrator [, the manager or the manager’s] or the administrator’s

38-43 designee, or a subpoena issued by the [manager, manager’s designee,]

39-1 administrator, administrator’s designee, appeals officer, hearing officer,

39-2 inspector or examiner;

39-3 2. Refuses to permit an inspection; or

39-4 3. As a witness, refuses to testify to any matter for which he may be

39-5 lawfully interrogated,

39-6 the district judge of the county in which the person resides, on application

39-7 of the appeals officer, the hearing officer, the administrator [, the manager

39-8 or the manager’s] or the administrator’s designee, shall compel obedience

39-9 by attachment proceedings as for contempt, as in the case of disobedience

39-10 of the requirements of subpoenas issued from the court on a refusal to

39-11 testify therein.

39-12 Sec. 67. NRS 616D.080 is hereby amended to read as follows:

39-13 616D.080 1. Each officer who serves a subpoena is entitled to

39-14 receive the same fees as a sheriff.

39-15 2. Each witness who appears, in obedience to a subpoena which has

39-16 been issued pursuant to this chapter or chapter 616A, 616B or 616C of

39-17 NRS, before an appeals officer, a hearing officer, the administrator [, the

39-18 manager or the manager’s] or the administrator’s designee, is entitled to

39-19 receive for his attendance the fees and mileage provided for witnesses in

39-20 civil cases in courts of record.

39-21 3. The appeals officer, hearing officer, administrator [, manager or

39-22 manager’s] or the administrator’s designee shall:

39-23 (a) Authorize payment from his administrative budget of the fees and

39-24 mileage due to such a witness; or

39-25 (b) Impose those costs upon the party at whose instance the witness was

39-26 subpoenaed or, for good cause shown, upon any other party.

39-27 Sec. 68. NRS 616D.100 is hereby amended to read as follows:

39-28 616D.100 1. A transcribed copy of the evidence and proceedings, or

39-29 any specific part thereof, of any final hearing or investigation, [made]

39-30 which is:

39-31 (a) Made by a stenographer appointed by an appeals officer, a hearing

39-32 officer, the administrator [, the manager or the manager’s designee, being

39-33 certified] or the administrator’s designee;

39-34 (b) Carefully compared by that stenographer with his original notes;

39-35 and

39-36 (c) Certified by that stenographer to be a true and correct transcript of

39-37 the testimony in the final hearing or investigation, or of a particular witness,

39-38 or of a specific part thereof, [and carefully compared by him with his

39-39 original notes,] and to be a correct statement of the evidence and

39-40 proceedings had on the final hearing or investigation so purporting to be

39-41 taken and transcribed,

39-42 may be received in evidence with the same effect as if the stenographer had

39-43 been present and testified to the facts so certified.

40-1 2. A copy of the transcript must be furnished on demand to any party

40-2 upon the payment of the fee required for transcripts in courts of record.

40-3 Sec. 69. NRS 616D.200 is hereby amended to read as follows:

40-4 616D.200 1. If the administrator finds that an employer within the

40-5 provisions of NRS 616B.633 has failed to provide and secure

40-6 compensation as required by the terms of chapters 616A to 616D,

40-7 inclusive, of NRS or that the employer has provided and secured that

40-8 compensation but has failed to maintain it, he shall make a determination

40-9 thereon and may charge the employer an amount equal to the sum of:

40-10 (a) The premiums that would otherwise have been owed [to the system]

40-11 pursuant to the terms of chapters 616A to 616D, inclusive, of NRS , as

40-12 determined by the administrator based upon the manual rates adopted by

40-13 the commissioner, for the period that the employer was doing business in

40-14 this state without providing, securing or maintaining that compensation, but

40-15 not to exceed 6 years; and

40-16 (b) [The actual costs incurred by the system in reinstating the policy, but

40-17 not to exceed 10 percent of the premiums owed by the employer; and

40-18 (c)] Interest at a rate determined pursuant to NRS 17.130 computed

40-19 from the time that the premiums should have been paid.

40-20 2. The administrator shall deliver a copy of his determination to the

40-21 employer. An employer who is aggrieved by the determination of the

40-22 administrator may appeal from the determination pursuant to subsection 2

40-23 of NRS 616D.220.

40-24 3. Any employer within the provisions of NRS 616B.633 who fails to

40-25 provide, secure or maintain compensation as required by the terms of

40-26 chapters 616A to 616D, inclusive, of NRS, is:

40-27 (a) For the first offense, guilty of a misdemeanor.

40-28 (b) For a second or subsequent offense committed within 7 years after

40-29 the previous offense, guilty of a category C felony and shall be punished as

40-30 provided in NRS 193.130.

40-31 Any criminal penalty imposed must be in addition to the amount charged

40-32 pursuant to subsection 1.

40-33 Sec. 70. NRS 616D.210 is hereby amended to read as follows:

40-34 616D.210 1. Any person who:

40-35 (a) Is the legal or beneficial owner of 25 percent or more of a business

40-36 which terminates operations while owing a premium to [the system or] a

40-37 private carrier and becomes, or induces or procures another person to

40-38 become, the legal or beneficial owner of 25 percent or more of a new

40-39 business engaging in similar operations; or

40-40 (b) Knowingly aids or abets another person in carrying out such

40-41 conduct,

40-42 is liable in a civil action for the payment of any premium, interest and

40-43 penalties owed to the [system or the] private carrier and the reasonable

41-1 costs incurred by the [system or] private carrier to investigate and act upon

41-2 such conduct.

41-3 2. The [system or] private carrier shall not knowingly insure any

41-4 business which engages in the conduct described in subsection 1 unless the

41-5 premium and any interest and penalties owed to the [system or] private

41-6 carrier have been paid.

41-7 3. As used in this section, "business" includes, but is not limited to, a

41-8 firm, sole proprietorship, general or limited partnership, voluntary

41-9 association or private corporation.

41-10 Sec. 71. NRS 616D.250 is hereby amended to read as follows:

41-11 616D.250 1. [Any employer insured by the system who refuses to

41-12 submit his books, records and payroll for inspection, as provided by NRS

41-13 616A.485, to a representative of the system or the administrator, or to an

41-14 auditor from the department of taxation, presenting written authority for the

41-15 inspection, is subject to a penalty of $1,000 for each offense, to be

41-16 collected by a civil action in the name of the system or the administrator.

41-17 2.] A self-insured employer, a member of an association of self-insured

41-18 public or private employers or an employer insured by a private carrier who

41-19 refuses to submit his books, records and payroll to the administrator for

41-20 inspection as provided by NRS 616A.485, is subject to a penalty of $1,000

41-21 for each offense, to be collected by a civil action in the name of the

41-22 administrator.

41-23 [3.] 2. The person who [gives] makes such refusal is guilty of a

41-24 misdemeanor.

41-25 Sec. 72. NRS 616D.260 is hereby amended to read as follows:

41-26 616D.260 1. If an employer refuses to produce any book, record,

41-27 payroll report or other document in conjunction with an audit conducted by

41-28 [the system,] a private carrier or the department of taxation to verify the

41-29 employer’s premium, the administrator may issue a subpoena to require the

41-30 production of that document.

41-31 2. If an employer refuses to produce any document as required by the

41-32 subpoena, the administrator may report to the district court by petition,

41-33 setting forth that:

41-34 (a) Due notice has been given of the time and place of the production of

41-35 the document;

41-36 (b) The employer has been subpoenaed by the administrator pursuant to

41-37 this section; and

41-38 (c) The employer has failed or refused to produce the document required

41-39 by the subpoena,

41-40 and asking for an order of the court compelling the employer to produce the

41-41 document.

41-42 3. Upon such petition, the court shall enter an order directing the

41-43 employer to appear before the court at a time and place to be fixed by the

42-1 court in its order, the time to be not more than 10 days after the date of the

42-2 order, and to show cause why he has not produced the document. A

42-3 certified copy of the order must be served upon the employer.

42-4 4. If it appears to the court that the subpoena was regularly issued by

42-5 the administrator, the court shall enter an order that the employer produce

42-6 the required document at the time and place fixed in the order. Failure to

42-7 obey the order constitutes contempt of court.

42-8 Sec. 73. NRS 616D.400 is hereby amended to read as follows:

42-9 616D.400 1. A person who, upon submitting a charge for or upon

42-10 receiving payment for accident benefits pursuant to chapters 616A to 616D,

42-11 inclusive, or chapter 617 of NRS, intentionally fails to maintain such

42-12 records as are necessary to disclose fully the nature of the accident benefits

42-13 for which a charge was submitted or payment was received, or such records

42-14 as are necessary to disclose fully all income and expenditures upon which

42-15 rates of payment were based, for at least 5 years after the date on which

42-16 payment was received, is guilty of a gross misdemeanor.

42-17 2. A person who fails to make such records available to the attorney

42-18 general [, manager] or the administrator upon reasonable request is guilty

42-19 of a gross misdemeanor.

42-20 3. A person who intentionally destroys such records within 5 years

42-21 after the date payment was received is guilty of a category D felony and

42-22 shall be punished as provided in NRS 193.130.

42-23 Sec. 74. NRS 616D.430 is hereby amended to read as follows:

42-24 616D.430 1. A person who receives a payment or benefit to which he

42-25 is not entitled by reason of a violation of any of the provisions of NRS

42-26 616D.300, 616D.370, 616D.380, 616D.390, 616D.400 or 616D.410 is

42-27 liable in a civil action commenced by the attorney general for:

42-28 (a) An amount equal to three times the amount unlawfully obtained;

42-29 (b) Not less than $5,000 for each act of deception;

42-30 (c) An amount equal to three times the total amount of the reasonable

42-31 expenses incurred by the state in enforcing this section; and

42-32 (d) Payment of interest on the amount of the excess payment at the rate

42-33 fixed pursuant to NRS 99.040 for the period from the date upon which

42-34 payment was made to the date upon which repayment is made.

42-35 2. A criminal action need not be brought against a person who receives

42-36 a payment or benefit to which he is not entitled by reason of a violation of

42-37 any of the provisions of NRS 616D.300, 616D.370, 616D.380, 616D.390,

42-38 616D.400 or 616D.410 before civil liability attaches under this section.

42-39 3. A person who unknowingly accepts a payment in excess of the

42-40 amount to which he is entitled is liable for the repayment of the excess

42-41 amount. It is a defense to any action brought pursuant to this subsection

42-42 that the person returned or attempted to return the amount which was in

43-1 excess of that to which he was entitled within a reasonable time after

43-2 receiving it.

43-3 4. Any repayment of money collected pursuant to paragraph (a) or (d)

43-4 of subsection 1 must be paid to the insurer who made the payment to the

43-5 person who violated the provisions of this section. Any payment made to an

43-6 insurer may not exceed the amount paid by the insurer to that person. [If the

43-7 insurer is the system, the system shall deposit any repayment of money

43-8 collected pursuant to this section with the state treasurer for credit to the

43-9 state insurance fund.]

43-10 5. Any penalty collected pursuant to paragraph (b) or (c) of subsection

43-11 1 must be used to pay the salaries and other expenses of the fraud control

43-12 unit for industrial insurance established pursuant to NRS 228.420. Any

43-13 money remaining at the end of any fiscal year does not revert to the state

43-14 general fund.

43-15 Sec. 75. NRS 617.1665 is hereby amended to read as follows:

43-16 617.1665 Every employer insured by [the system or] a private carrier,

43-17 to receive the benefits of this chapter and to provide and secure

43-18 compensation for his employees, shall pay premiums according to the

43-19 classification and rules filed by the advisory organization, and the rates

43-20 filed by the insurers, with the commissioner.

43-21 Sec. 76. NRS 617.1675 is hereby amended to read as follows:

43-22 617.1675 1. There is hereby created in the state general fund the

43-23 account for pensions for silicosis, diseases related to asbestos and other

43-24 disabilities. The account consists of money appropriated to the account by

43-25 the legislature and interest and income earned pursuant to subsection 2.

43-26 2. The interest and income earned on money in the account, after

43-27 deducting any applicable charges, must be credited to the account.

43-28 3. The account must be administered by the state treasurer. The money

43-29 in the account may be expended only for the purposes set forth in NRS

43-30 617.168 and none of the money in the account may be expended for

43-31 administrative purposes. The expenditures must be made on claims

43-32 approved by the [system] insurer and paid as other claims against the state

43-33 are paid.

43-34 Sec. 77. NRS 617.168 is hereby amended to read as follows:

43-35 617.168 1. The money in the account for pensions for silicosis,

43-36 diseases related to asbestos and other disabilities must be expended to

43-37 provide:

43-38 (a) The continuing benefits described in subsection 6 of NRS 617.460;

43-39 (b) The increased benefits for permanent total disability described in

43-40 NRS 616C.455; and

43-41 (c) The increased death benefits described in NRS 616C.510.

43-42 2. Upon receiving a monthly statement showing the amount of benefits

43-43 to be paid for the month to the persons entitled thereto pursuant to

44-1 subsection 1, the state treasurer shall pay an amount equal to that shown on

44-2 the statement from the account to the [system.] insurer.

44-3 3. At such time as all claimants, their dependents, widows, widowers,

44-4 surviving children or surviving parent who are provided benefits or

44-5 increased benefits pursuant to the provisions of subsection 1 are no longer

44-6 eligible for those benefits, the balance of the account must revert to the

44-7 state general fund.

44-8 Sec. 78. NRS 617.225 is hereby amended to read as follows:

44-9 617.225 1. A sole proprietor may elect to be included within the

44-10 terms, conditions and provisions of this chapter to secure for himself

44-11 compensation equivalent to that to which an employee is entitled for any

44-12 occupational disease contracted by the sole proprietor which arises out of

44-13 and in the course of his self-employment by filing a written notice of

44-14 election with the administrator and [the system or] a private carrier.

44-15 2. A sole proprietor who elects to accept the terms, conditions and

44-16 provisions of this chapter shall submit to a physical examination by a

44-17 physician selected by the [system or the] private carrier before the

44-18 commencement of coverage and on a yearly basis thereafter. The [system

44-19 or the] private carrier shall prescribe the scope of the examination and shall

44-20 consider it for rating purposes. The cost of the physical examination must

44-21 be paid by the sole proprietor.

44-22 3. A sole proprietor who elects to submit to the provisions of this

44-23 chapter shall pay to the [system or the] private carrier premiums in such

44-24 manner and amounts as may be prescribed by the regulations of the

44-25 commissioner.

44-26 4. If a sole proprietor fails to pay all premiums required by the

44-27 regulations of the commissioner, the failure operates as a rejection of this

44-28 chapter.

44-29 5. A sole proprietor who elects to be included under the provisions of

44-30 this chapter remains subject to all terms, conditions and provisions of this

44-31 chapter and all regulations of the commissioner until he files a written

44-32 notice with the [system or the] private carrier and the administrator that he

44-33 withdraws his election.

44-34 6. For purposes of this chapter, a sole proprietor shall be deemed to be

44-35 an employee receiving a wage of $300 per month.

44-36 Sec. 79. NRS 617.342 is hereby amended to read as follows:

44-37 617.342 1. An employee or, in the event of the employee’s death,

44-38 one of his dependents, shall provide written notice of an occupational

44-39 disease for which compensation is payable under this chapter to the

44-40 employer of the employee as soon as practicable, but within 7 days after the

44-41 employee or dependent has knowledge of the disability and its relationship

44-42 to the employee’s employment.

44-43 2. The notice required by subsection 1 must:

45-1 (a) Be on a form prescribed by the administrator. The form must allow

45-2 the employee or his dependent to describe briefly the circumstances which

45-3 caused the disease or death.

45-4 (b) Be signed by the employee or by a person on his behalf, or in the

45-5 event of the employee’s death, by one of his dependents or by a person

45-6 acting on behalf of the dependent.

45-7 (c) Include an explanation of the procedure for filing a claim for

45-8 compensation.

45-9 (d) Be prepared in duplicate so that the employee or his dependent and

45-10 the employer can retain a copy of the notice.

45-11 3. Upon receipt of the notice required by subsection 1, the employer,

45-12 the employee’s supervisor or the agent of the employer who was in charge

45-13 of the type of work performed by the employee shall sign the notice. The

45-14 signature of the employer, the supervisor or the employer’s agent is an

45-15 acknowledgment of the receipt of the notice and shall not be deemed to be

45-16 a waiver of any of the employer’s defenses or rights.

45-17 4. An employer shall maintain a sufficient supply of the forms required

45-18 to file the notice required by subsection 1 for use by his employees.

45-19 5. An employer shall retain any notice provided pursuant to subsection

45-20 1 for 3 years after the date of the receipt of the notice. An employer insured

45-21 by [the system or] a private carrier shall not file a notice of injury with the

45-22 [system or the] private carrier.

45-23 Sec. 80. NRS 617.401 is hereby amended to read as follows:

45-24 617.401 1. The division shall designate one:

45-25 (a) Third-party administrator who has a valid certificate issued by the

45-26 commissioner pursuant to NRS 683A.085; or

45-27 (b) Insurer, other than a self-insured employer or association of self-

45-28 insured public or private employers,

45-29 to administer claims against the uninsured employers’ claim fund. The

45-30 designation must be made pursuant to reasonable competitive bidding

45-31 procedures established by the administrator.

45-32 2. An employee may receive compensation from the uninsured

45-33 employers’ claim fund if:

45-34 (a) He was hired in this state or he is regularly employed in this state;

45-35 (b) He contracts an occupational disease as a result of work performed

45-36 in this state;

45-37 (c) He files a claim for compensation with the division; and

45-38 (d) He makes an irrevocable assignment to the division of a right to be

45-39 subrogated to the rights of the employee pursuant to NRS 616C.215.

45-40 [2.] 3. If the division receives a claim pursuant to subsection [1,] 2, the

45-41 division shall immediately notify the employer of the claim.

45-42 [3.] 4. For the purposes of this section, the employer has the burden of

45-43 proving that he provided mandatory coverage for occupational diseases for

46-1 the employee or that he was not required to maintain industrial insurance

46-2 for the employee.

46-3 [4.] 5. Any employer who has failed to provide mandatory coverage

46-4 required by the provisions of this chapter is liable for all payments made on

46-5 his behalf, including, but not limited to, any benefits, administrative costs

46-6 or attorney’s fees paid from the uninsured employers’ claim fund or

46-7 incurred by the division.

46-8 [5.] 6. The division:

46-9 (a) May recover from the employer the payments made by the division

46-10 that are described in subsection [4] 5 and any accrued interest by bringing a

46-11 civil action in district court.

46-12 (b) In any civil action brought against the employer, is not required to

46-13 prove that negligent conduct by the employer was the cause of the

46-14 occupational disease.

46-15 (c) May enter into a contract with any person to assist in the collection

46-16 of any liability of an uninsured employer.

46-17 (d) In lieu of a civil action, may enter into an agreement or settlement

46-18 regarding the collection of any liability of an uninsured employer.

46-19 [6.] 7. The division shall:

46-20 (a) Determine whether the employer was insured within 30 days after

46-21 receiving the claim from the employee.

46-22 (b) Assign the claim to the [system] third-party administrator or

46-23 insurer designated pursuant to subsection 1 for administration [of the

46-24 claim, payment of benefits and reimbursement of costs of administration

46-25 and benefits paid to the system. Upon determining that a claim is invalid,

46-26 the system] and payment of compensation.

46-27 Upon determining whether the claim is accepted or denied, the

46-28 designated third-party administrator or insurer shall notify the [claimant,]

46-29 injured employee, the named employer and the division [that the claim will

46-30 not be assigned for benefits from the uninsured employers’ claim fund.

46-31 7.] of its determination.

46-32 (c) Upon demonstration of the:

46-33 (1) Costs incurred by the designated third-party administrator or

46-34 insurer to administer the claim or pay compensation to the injured

46-35 employee; or

46-36 (2) Amount that the designated third-party administrator or insurer

46-37 will pay for administrative expenses or compensation to the injured

46-38 employee and that such amounts are justified by the circumstances of the

46-39 claim,

46-40 the division shall authorize payment from the uninsured employers’

46-41 claim fund.

46-42 8. Any party aggrieved by a [decision] determination regarding the

46-43 administration of an assigned claim or a [decision] determination made by

47-1 the division or by the [system] designated third-party administrator or

47-2 insurer regarding any claim made pursuant to this section may appeal that

47-3 [decision] determination within 60 days after the [decision] determination

47-4 is rendered to the hearings division of the department of administration in

47-5 the manner provided by NRS 616C.305 and 616C.315 to 616C.385,

47-6 inclusive.

47-7 [8.] 9. All insurers shall bear a proportionate amount of a claim made

47-8 pursuant to this chapter, and are entitled to a proportionate amount of any

47-9 collection made pursuant to this section as an offset against future

47-10 liabilities.

47-11 [9.] 10. An uninsured employer is liable for the interest on any amount

47-12 paid on his claims from the uninsured employers’ claim fund. The interest

47-13 must be calculated at a rate equal to the prime rate at the largest bank in

47-14 Nevada, as ascertained by the commissioner of financial institutions, on

47-15 January 1 or July 1, as the case may be, immediately preceding the date of

47-16 the claim, plus 3 percent, compounded monthly, from the date the claim is

47-17 paid from the fund until payment is received by the division from the

47-18 employer.

47-19 [10.] 11. Attorney’s fees recoverable by the division pursuant to this

47-20 section must be:

47-21 (a) If a private attorney is retained by the division, paid at the usual and

47-22 customary rate for that attorney.

47-23 (b) If the attorney is an employee of the division, paid at the rate

47-24 established by regulations adopted by the division.

47-25 Any money collected must be deposited [to] in the uninsured employers’

47-26 claim fund.

47-27 [11.] 12. In addition to any other liabilities provided for in this section,

47-28 the administrator may impose an administrative fine of not more than

47-29 $10,000 against an employer if the employer fails to provide mandatory

47-30 coverage required by the provisions of this chapter.

47-31 Sec. 81. NRS 617.430 is hereby amended to read as follows:

47-32 617.430 1. Every employee who is disabled or dies because of an

47-33 occupational disease, as defined in this chapter, arising out of and in the

47-34 course of employment in the State of Nevada, or the dependents, as that

47-35 term is defined in chapters 616A to 616D, inclusive, of NRS, of an

47-36 employee whose death is caused by an occupational disease, are entitled to

47-37 the compensation provided by those chapters for temporary disability,

47-38 permanent disability or death, as the facts may warrant, subject to the

47-39 modifications mentioned in this chapter.

47-40 2. In cases of tenosynovitis, prepatellar bursitis, and infection or

47-41 inflammation of the skin, no person is entitled to such compensation unless

47-42 for 90 days next preceding the contraction of the occupational disease the

47-43 employee has been:

48-1 (a) A resident of the State of Nevada; or

48-2 (b) Employed by a self-insured employer, a member of an association of

48-3 self-insured public or private employers, or an employer insured by a

48-4 private carrier that provides coverage for occupational diseases . [or an

48-5 employer insured by the system.]

48-6 Sec. 82. NRS 209.189 is hereby amended to read as follows:

48-7 209.189 1. The fund for prison industries is hereby created as an

48-8 enterprise fund to receive all revenues derived from programs for

48-9 vocational training and employment of offenders and the operation of the

48-10 prison farm and to receive all revenues raised by the department from

48-11 private employers for the leasing of space, facilities or equipment within

48-12 the institutions or facilities of the department of prisons.

48-13 2. Money in the fund must be maintained in separate budgetary

48-14 accounts, including at least one account for industrial programs and one for

48-15 the prison farm.

48-16 3. Subject to the approval of the state board of examiners, the director

48-17 may expend money deposited in this fund for the promotion and

48-18 development of these programs and the prison farm. The director [shall]

48-19 may expend money deposited in this fund to pay [to the state industrial

48-20 insurance system the] any premiums required for coverage of offenders

48-21 under the modified program of industrial insurance adopted pursuant to

48-22 NRS 616B.185.

48-23 4. The interest and income earned on the money in the fund, after

48-24 deducting any applicable charges, must be credited to the fund.

48-25 5. If money owed to the department for the leasing of space, facilities

48-26 or equipment within the institutions or facilities of the department or for the

48-27 purchase of goods or services, which must be deposited into the fund for

48-28 prison industries pursuant to subsection 1, is not paid on or before the date

48-29 due, the department shall charge and collect, in addition to the money due,

48-30 interest on the money due at the rate of 1.5 percent per month or fraction

48-31 thereof from the date on which the money became due until the date of

48-32 payment.

48-33 Sec. 83. NRS 218.2754 is hereby amended to read as follows:

48-34 218.2754 1. The summary of each bill or joint resolution introduced

48-35 in the legislature must include the statement:

48-36 (a) "Fiscal Note: Effect on Local Government: Yes,"

48-37 "Fiscal Note: Effect on Local Government: No,"

48-38 "Fiscal Note: Effect on Local Government: Contains Appropriation

48-39 included in Executive Budget," or

48-40 "Fiscal Note: Effect on Local Government: Contains Appropriation

48-41 not included in Executive Budget,"

48-42 whichever is appropriate; and

48-43 (b) "Effect on the State : [or on Industrial Insurance:] Yes,"

49-1 "Effect on the State : [or on Industrial Insurance:] No,"

49-2 "Effect on the State : [or on Industrial Insurance:] Contains

49-3 Appropriation included in Executive Budget,"

49-4 "Effect on the State : [or on Industrial Insurance:] Executive

49-5 Budget," or

49-6 "Effect on the State : [or on Industrial Insurance:] Contains

49-7 Appropriation not included in Executive Budget,"

49-8 whichever is appropriate.

49-9 2. The legislative counsel shall consult the fiscal analysis division to

49-10 secure the appropriate information for summaries of bills and joint

49-11 resolutions.

49-12 Sec. 84. NRS 218.5377 is hereby amended to read as follows:

49-13 218.5377 The committee:

49-14 1. May review issues related to workers’ compensation.

49-15 2. May study the desirability of establishing a preferred employee

49-16 program which provides exemptions from the payment of premiums and

49-17 other financial incentives for employers who provide suitable employment

49-18 for injured employees and any other program for returning injured

49-19 employees to work.

49-20 3. May review the manner used by the division of industrial relations

49-21 of the department of business and industry to rate physical impairments of

49-22 injured employees.

49-23 4. [Shall, to ensure the solvency of the state industrial insurance

49-24 system:

49-25 (a) Review and study the financial condition of the state industrial

49-26 insurance system; and

49-27 (b) Determine the extent of any apparent insolvency of the system.

49-28 5.] May conduct investigations and hold hearings in connection with

49-29 carrying out its duties pursuant to this section.

49-30 [6.] 5. May direct the legislative counsel bureau to assist in its

49-31 research, investigations, hearings and reviews.

49-32 Sec. 85. NRS 218.610 is hereby amended to read as follows:

49-33 218.610 As used in NRS 218.610 to 218.735, inclusive, "agency of the

49-34 state" includes all offices, departments, boards, commissions [or] and

49-35 institutions of the state . [, and the state industrial insurance system.]

49-36 Sec. 86. NRS 218.737 is hereby amended to read as follows:

49-37 218.737 As used in NRS 218.740 to 218.893, inclusive, "agency of the

49-38 state" includes all offices, departments, boards, commissions [or] and

49-39 institutions of the state [,] and the judicial department of the state , [and the

49-40 state industrial insurance system,] but does not include the legislative

49-41 branch of government.

50-1 Sec. 87. NRS 228.420 is hereby amended to read as follows:

50-2 228.420 1. The attorney general has primary jurisdiction to

50-3 investigate and prosecute any alleged criminal violations of NRS

50-4 616D.200, 616D.220, 616D.240, 616D.300, 616D.310, 616D.350 to

50-5 616D.440, inclusive, and any fraud in the administration of chapter 616A,

50-6 616B, 616C, 616D or 617 of NRS or in the provision of compensation

50-7 required by chapters 616A to 617, inclusive, of NRS.

50-8 2. For this purpose, the attorney general shall establish within his office

50-9 a fraud control unit for industrial insurance. The unit must consist of such

50-10 persons as are necessary to carry out the duties set forth in this section,

50-11 including, without limitation, an attorney, an auditor and an investigator.

50-12 3. The attorney general, acting through the unit established pursuant to

50-13 subsection 2:

50-14 (a) Is the single state agency responsible for the investigation and

50-15 prosecution of any alleged criminal violations of NRS 616D.200,

50-16 616D.220, 616D.240, 616D.300, 616D.310, 616D.350 to 616D.440,

50-17 inclusive, and any fraud in the administration of chapter 616A, 616B,

50-18 616C, 616D or 617 of NRS or in the provision of compensation required

50-19 by chapters 616A to 617, inclusive, of NRS;

50-20 (b) Shall cooperate with the [state industrial insurance system, the]

50-21 division of industrial relations of the department of business and industry,

50-22 self-insured employers, associations of self-insured public or private

50-23 employers, private carriers and other state and federal investigators and

50-24 prosecutors in coordinating state and federal investigations and

50-25 prosecutions involving violations of NRS 616D.200, 616D.220, 616D.240,

50-26 616D.300, 616D.310, 616D.350 to 616D.440, inclusive, and any fraud in

50-27 the administration of chapter 616A, 616B, 616C, 616D or 617 of NRS or in

50-28 the provision of compensation required by chapters 616A to 617, inclusive,

50-29 of NRS;

50-30 (c) Shall protect the privacy of persons who are eligible to receive

50-31 compensation pursuant to the provisions of chapter 616A, 616B, 616C,

50-32 616D or 617 of NRS and establish procedures to prevent the misuse of

50-33 information obtained in carrying out this section; and

50-34 (d) May, upon request, inspect the records of any self-insured employer,

50-35 association of self-insured public or private employers, or private carrier,

50-36 [the state industrial insurance system,] the division of industrial relations of

50-37 the department of business and industry and the state contractors’ board to

50-38 investigate any alleged violation of any of the provisions of NRS

50-39 616D.200, 616D.220, 616D.240, 616D.300, 616D.310, 616D.350 to

50-40 616D.440, inclusive, or any fraud in the administration of chapter 616A,

50-41 616B, 616C, 616D or 617 of NRS or in the provision of compensation

50-42 required by chapters 616A to 617, inclusive, of NRS.

51-1 4. When acting pursuant to this section or NRS 228.175, 228.410 , [or

51-2 this section,] the attorney general may commence his investigation and file

51-3 a criminal action without leave of court, and he has exclusive charge of the

51-4 conduct of the prosecution.

51-5 5. The attorney general shall report the name of any person who has

51-6 been convicted of violating any of the provisions of NRS 616D.200,

51-7 616D.220, 616D.240, 616D.300, 616D.310, 616D.350 to 616D.440,

51-8 inclusive, to the occupational board that issued the person’s license or

51-9 certificate to provide medical care, remedial care or other services in this

51-10 state.

51-11 6. The attorney general shall establish a toll-free telephone number for

51-12 persons to report information regarding alleged violations of any of the

51-13 provisions of NRS 616D.200, 616D.220, 616D.240, 616D.300, 616D.310,

51-14 616D.350 to 616D.440, inclusive, and any fraud in the administration of

51-15 chapter 616A, 616B, 616C, 616D or 617 of NRS or in the provision of

51-16 compensation required by chapters 616A to 617, inclusive, of NRS.

51-17 7. As used in this section:

51-18 (a) "Association of self-insured private employers" has the meaning

51-19 ascribed to it in NRS 616A.050.

51-20 (b) "Association of self-insured public employers" has the meaning

51-21 ascribed to it in NRS 616A.055.

51-22 (c) "Private carrier" has the meaning ascribed to it in NRS 616A.290.

51-23 (d) "Self-insured employer" has the meaning ascribed to it in NRS

51-24 616A.305.

51-25 Sec. 88. NRS 232.550 is hereby amended to read as follows:

51-26 232.550 As used in NRS 232.550 to 232.700, inclusive, unless the

51-27 context otherwise requires:

51-28 1. "Administrator" means the administrator of the division.

51-29 2. "Director" means the director of the department of business and

51-30 industry.

51-31 3. "Division" means the division of industrial relations of the

51-32 department of business and industry.

51-33 4. "Insurer" includes:

51-34 (a) [The state industrial insurance system;

51-35 (b)] A self-insured employer;

51-36 [(c)] (b) An association of self-insured public employers;

51-37 [(d)] (c) An association of self-insured private employers; and

51-38 [(e)] (d) A private carrier.

51-39 Sec. 89. NRS 232.680 is hereby amended to read as follows:

51-40 232.680 1. The cost of carrying out the provisions of NRS 232.550

51-41 to 232.700, inclusive, and of supporting the division, a full-time employee

51-42 of the legislative counsel bureau, the fraud control unit for industrial

51-43 insurance established pursuant to NRS 228.420 and the legislative

52-1 committee on workers’ compensation created pursuant to NRS 218.5375,

52-2 must be paid from assessments payable by each [:

52-3 (a) Insurer based upon expected annual premiums to be received; and

52-4 (b) Employer] insurer, including each employer who provides accident

52-5 benefits for injured employees pursuant to NRS 616C.265, based upon [his

52-6 expected annual expenses of providing those benefits.

52-7 For the purposes of this subsection, the "premiums to be received" by a

52-8 self-insured employer or an association of self-insured public or private

52-9 employers shall be deemed to be the same fraction of the premiums to be

52-10 received by the state industrial insurance system that his expected annual

52-11 expenditure for claims is of the expected annual expenditure of the system

52-12 for claims.] expected annual expenditures for claims for injuries

52-13 occurring on or after July 1, 1999. The division shall adopt regulations

52-14 which establish formulas of assessment which result in an equitable

52-15 distribution of costs among the insurers and employers who provide

52-16 accident benefits for injured employees. The formulas may utilize actual

52-17 expenditures for claims.

52-18 2. Federal grants may partially defray the costs of the division.

52-19 3. Assessments made against insurers by the division after the adoption

52-20 of regulations must be used to defray all costs and expenses of

52-21 administering the program of workers’ compensation, including the

52-22 payment of:

52-23 (a) All salaries and other expenses in administering the division,

52-24 including the costs of the office and staff of the administrator.

52-25 (b) All salaries and other expenses of administering NRS 616A.435 to

52-26 616A.460, inclusive, the offices of the hearings division of the department

52-27 of administration and the programs of self-insurance and review of

52-28 premium rates by the commissioner of insurance.

52-29 (c) The salary and other expenses of a full-time employee of the

52-30 legislative counsel bureau whose principal duties are limited to conducting

52-31 research and reviewing and evaluating data related to industrial insurance.

52-32 (d) All salaries and other expenses of the fraud control unit for industrial

52-33 insurance established pursuant to NRS 228.420.

52-34 (e) Claims against uninsured employers arising from compliance with

52-35 NRS 616C.220 and 617.401.

52-36 (f) All salaries and expenses of the members of the legislative committee

52-37 on workers’ compensation and any other expenses incurred by the

52-38 committee in carrying out its duties pursuant to NRS 218.5375 to

52-39 218.5378, inclusive.

52-40 Sec. 90. NRS 242.131 is hereby amended to read as follows:

52-41 242.131 1. The department shall provide state agencies and elected

52-42 state officers with all [of] their required design of information systems. All

53-1 agencies and officers must use those services and equipment, except as

53-2 otherwise provided in subsection 2.

53-3 2. The following agencies may negotiate with the department for its

53-4 services or the use of its equipment, subject to the provisions of this

53-5 chapter, and the department shall provide such services and the use of such

53-6 equipment as may be mutually agreed:

53-7 (a) Court administrator;

53-8 (b) Department of motor vehicles and public safety;

53-9 (c) Department of transportation;

53-10 (d) Employment security division of the department of employment,

53-11 training and rehabilitation;

53-12 (e) Legislative counsel bureau;

53-13 (f) [State industrial insurance system;

53-14 (g)] State controller;

53-15 [(h)] (g) State gaming control board and Nevada gaming commission;

53-16 and

53-17 [(i)] (h) University and Community College System of Nevada.

53-18 3. Any state agency or elected state officer who uses the services of the

53-19 department and desires to withdraw substantially from that use must apply

53-20 to the director for approval. The application must set forth justification for

53-21 the withdrawal. If the director denies the application, the agency or officer

53-22 must:

53-23 (a) If the legislature is in regular or special session, obtain the approval

53-24 of the legislature by concurrent resolution.

53-25 (b) If the legislature is not in regular or special session, obtain the

53-26 approval of the interim finance committee. The director shall, within 45

53-27 days after receipt of the application, forward the application together with

53-28 his recommendation for approval or denial to the interim finance

53-29 committee. The interim finance committee has 45 days after the application

53-30 and recommendation are submitted to its secretary within which to consider

53-31 the application. Any application which is not considered by the committee

53-32 within the 45-day period shall be deemed approved.

53-33 4. If the demand for services or use of equipment exceeds the

53-34 capability of the department to provide them, the department may contract

53-35 with other agencies or independent contractors to furnish the required

53-36 services or use of equipment and is responsible for the administration of the

53-37 contracts.

53-38 Sec. 91. NRS 244.33505 is hereby amended to read as follows:

53-39 244.33505 1. In a county in which a license to engage in a business is

53-40 required, the board of county commissioners shall not issue such a license

53-41 unless the applicant for the license signs an affidavit affirming that the

53-42 business:

54-1 (a) Has received coverage by [the state industrial insurance system or] a

54-2 private carrier as required pursuant to chapters 616A to 616D, inclusive, of

54-3 NRS;

54-4 (b) Maintains a valid certificate of self-insurance pursuant to chapters

54-5 616A to 616D, inclusive, of NRS;

54-6 (c) Is a member of an association of self-insured public or private

54-7 employers; or

54-8 (d) Is not subject to the provisions of chapters 616A to 616D, inclusive,

54-9 of NRS.

54-10 2. In a county in which such a license is not required, the board of

54-11 county commissioners shall require a business, when applying for a post

54-12 office box, to submit to the board the affidavit required by subsection 1.

54-13 3. Each board of county commissioners shall submit to the

54-14 administrator of the division of industrial relations of the department of

54-15 business and industry monthly a list of the names of those businesses which

54-16 have submitted an affidavit required by subsections 1 and 2.

54-17 4. Upon receiving an affidavit required by this section, a board of

54-18 county commissioners shall provide the owner of the business with a

54-19 document setting forth the rights and responsibilities of employers and

54-20 employees to promote safety in the workplace, in accordance with

54-21 regulations adopted by the division of industrial relations of the department

54-22 of business and industry pursuant to NRS 618.376.

54-23 Sec. 92. NRS 268.0955 is hereby amended to read as follows:

54-24 268.0955 1. In an incorporated city in which a license to engage in a

54-25 business is required, the city council or other governing body of the city

54-26 shall not issue such a license unless the applicant for the license signs an

54-27 affidavit affirming that the business:

54-28 (a) Has received coverage by [the state industrial insurance system or] a

54-29 private carrier as required pursuant to chapters 616A to 616D, inclusive, of

54-30 NRS;

54-31 (b) Maintains a valid certificate of self-insurance pursuant to chapters

54-32 616A to 616D, inclusive, of NRS;

54-33 (c) Is a member of an association of self-insured public or private

54-34 employers; or

54-35 (d) Is not subject to the provisions of chapters 616A to 616D, inclusive,

54-36 of NRS.

54-37 2. In an incorporated city in which such a license is not required, the

54-38 city council or other governing body of the city shall require a business,

54-39 when applying for a post office box, to submit to the governing body the

54-40 affidavit required by subsection 1.

54-41 3. Each city council or other governing body of an incorporated city

54-42 shall submit to the administrator of the division of industrial relations of the

54-43 department of business and industry monthly a list of the names of those

55-1 businesses which have submitted an affidavit required by subsections 1 and

55-2 2.

55-3 4. Upon receiving an affidavit required by this section, the city council

55-4 or other governing body of an incorporated city shall provide the applicant

55-5 with a document setting forth the rights and responsibilities of employers

55-6 and employees to promote safety in the workplace, in accordance with

55-7 regulations adopted by the division of industrial relations of the department

55-8 of business and industry pursuant to NRS 618.376.

55-9 Sec. 93. NRS 277.185 is hereby amended to read as follows:

55-10 277.185 1. The agencies of this state, and the local governments

55-11 within this state, that collect taxes or fees from persons engaged in

55-12 business, or require such persons to provide related information and forms,

55-13 shall coordinate their collection of information and forms so that each

55-14 enterprise is required to furnish information in as few separate reports as

55-15 possible. This section applies specifically, but is not limited, to the

55-16 department of taxation, the employment security division of the department

55-17 of employment, training and rehabilitation, the state department of

55-18 conservation and natural resources, [the state industrial insurance system,]

55-19 and the counties and cities that require a business license.

55-20 2. On or before October 1 of each year, the executive director of the

55-21 department of taxation shall convene the heads, or persons designated by

55-22 the respective heads, of the state agencies named in subsection 1 and the

55-23 appropriate officers of the cities and counties that require a business

55-24 license. The secretary of state, a representative of the Nevada Association

55-25 of Counties and a representative of the Nevada League of Cities must be

55-26 invited to attend the meeting. If he knows, or is made aware by persuasive

55-27 information furnished by any enterprise required to pay a tax or fee or to

55-28 provide information, that any other state or local agency needs to

55-29 participate to accomplish the purpose set forth in subsection 1, he shall also

55-30 invite the head of that agency or the appropriate officer of the local

55-31 government, and the person so invited shall attend. The director of the

55-32 department of information technology shall assist in effecting the

55-33 consolidation of the information and the creation of the forms.

55-34 3. The persons so assembled shall design and modify, as appropriate,

55-35 the necessary joint forms for use during the ensuing fiscal year to

55-36 accomplish the purpose set forth in subsection 1. If any dispute cannot be

55-37 resolved by the participants, it must be referred to the Nevada tax

55-38 commission for a decision that is binding on all parties.

55-39 4. On or before February 15 of each year, the executive director of the

55-40 department of taxation shall submit a report to the director of the legislative

55-41 counsel bureau for presentation to the legislature. The report must include a

55-42 summary of the annual meeting held during the immediately preceding year

55-43 and any recommendations for proposed legislation.

56-1 5. The provisions of chapter 241 of NRS apply to a meeting held

56-2 pursuant to this section. The executive director of the department of

56-3 taxation shall provide members of the staff of the department of taxation to

56-4 assist in complying with the requirements of chapter 241 of NRS.

56-5 Sec. 94. NRS 281.125 is hereby amended to read as follows:

56-6 281.125 [1.] In cases where the salary of an appointive officer or

56-7 employee is determined by law, such salary must not be paid unless a

56-8 specific legislative appropriation of money or a specific legislative

56-9 authorization for the expenditure of money is made or enacted for the

56-10 department or agency.

56-11 [2. None of the provisions of this section apply to any officers or

56-12 employees of the state industrial insurance system.]

56-13 Sec. 95. NRS 281.390 is hereby amended to read as follows:

56-14 281.390 1. When any public employee is eligible at the same time for

56-15 benefits for temporary total disability pursuant to chapters 616A to 616D,

56-16 inclusive, or 617 of NRS and for any sick leave benefit, he may, by giving

56-17 notice to his employer, elect to continue to receive his normal salary instead

56-18 of the benefits pursuant to those chapters until his accrued sick leave time is

56-19 exhausted. The employer shall notify the [state industrial insurance system

56-20 or the] insurer that provides industrial insurance for that employer of the

56-21 election. The employer shall continue to pay the employee his normal

56-22 salary but charge against the employee’s accrued sick leave time as taken

56-23 during the pay period an amount which represents the difference between

56-24 his normal salary and the amount of any benefit for temporary total

56-25 disability received, exclusive of reimbursement or payment of medical or

56-26 hospital expenses pursuant to chapters 616A to 616D, inclusive, or 617 of

56-27 NRS for that pay period.

56-28 2. When the employee’s accrued sick leave time is exhausted, payment

56-29 of his normal salary pursuant to subsection 1 must be discontinued and the

56-30 employer shall promptly notify the [state industrial insurance system or the]

56-31 insurer that provides industrial insurance for that employer so that it may

56-32 begin paying the benefits to which the employee is entitled directly to the

56-33 employee.

56-34 3. An employee who declines to make the election provided in

56-35 subsection 1, may use all or part of the sick leave benefit normally payable

56-36 to him while directly receiving benefits for temporary total disability

56-37 pursuant to chapters 616A to 616D, inclusive, or 617 of NRS, but the

56-38 amount of sick leave benefit paid to the employee for any pay period must

56-39 not exceed the difference between his normal salary and the amount of any

56-40 benefit received, exclusive of reimbursement or payment of medical or

56-41 hospital expenses pursuant to those chapters for that pay period.

56-42 4. If the amount of the employee’s sick leave benefit is reduced

56-43 pursuant to subsection 3 below the amount normally payable, the amount of

57-1 sick leave time charged against the employee as taken during that pay

57-2 period must be reduced in the same proportion.

57-3 5. The public employee may decline to use any or part of the sick leave

57-4 benefit normally payable to him while receiving benefits pursuant to

57-5 chapters 616A to 616D, inclusive, or 617 of NRS. During that [period of]

57-6 time , the employee [shall] must be considered on leave of absence without

57-7 pay.

57-8 Sec. 96. NRS 284.013 is hereby amended to read as follows:

57-9 284.013 1. Except as otherwise provided in subsection 4, this chapter

57-10 does not apply to:

57-11 (a) Agencies, bureaus, commissions, officers or personnel in the

57-12 legislative department or the judicial department of state government,

57-13 including the commission on judicial discipline;

57-14 (b) Any person who is employed by a board, commission, committee or

57-15 council created in chapters 590, 623 to 625A, inclusive, 628, 630 to 644,

57-16 inclusive, 648, 652, 654 and 656 of NRS; or

57-17 (c) Officers or employees of any agency of the executive department of

57-18 the state government , including the state industrial insurance system,

57-19 who are exempted by specific statute.

57-20 2. Except as otherwise provided in subsection 3, the terms and

57-21 conditions of employment of all persons referred to in subsection 1,

57-22 including salaries not prescribed by law and leaves of absence, including,

57-23 without limitation, annual leave and sick and disability leave, must be fixed

57-24 by the appointing or employing authority within the limits of legislative

57-25 appropriations or authorizations.

57-26 3. Except as otherwise provided in this subsection, leaves of absence

57-27 prescribed pursuant to subsection 2 must not be of lesser duration than

57-28 those provided for other state officers and employees pursuant to the

57-29 provisions of this chapter. The provisions of this subsection do not govern

57-30 the legislative commission with respect to the personnel of the legislative

57-31 counsel bureau.

57-32 4. Any board, commission, committee or council created in chapters

57-33 590, 623 to 625A, inclusive, 628, 630 to 644, inclusive, 648, 652, 654 and

57-34 656 of NRS which contracts for the services of a person, shall require the

57-35 contract for those services to be in writing. The contract must be approved

57-36 by the state board of examiners before those services may be provided.

57-37 Sec. 97. NRS 284.173 is hereby amended to read as follows:

57-38 284.173 1. Elective officers and heads of departments, boards,

57-39 commissions or institutions may contract for the services of persons as

57-40 independent contractors.

57-41 2. An independent contractor is a natural person, firm or corporation

57-42 who agrees to perform services for a fixed price according to his or its own

57-43 methods and without subjection to the supervision or control of the other

58-1 contracting party, except as to the results of the work, and not as to the

58-2 means by which the services are accomplished.

58-3 3. For the purposes of this section:

58-4 (a) Travel, subsistence and other personal expenses may be paid to an

58-5 independent contractor, if provided for in the contract, in such amounts as

58-6 provided for in the contract. Those expenses must not be paid pursuant to

58-7 the provisions of NRS 281.160.

58-8 (b) There must be no:

58-9 (1) Withholding of income taxes by the state;

58-10 (2) Coverage for industrial insurance provided by the state;

58-11 (3) Participation in group insurance plans which may be available to

58-12 employees of the state;

58-13 (4) Participation or contributions by either the independent contractor

58-14 or the state to the public employees’ retirement system;

58-15 (5) Accumulation of vacation leave or sick leave; or

58-16 (6) Coverage for unemployment compensation provided by the state

58-17 if the requirements of NRS 612.085 for independent contractors are met.

58-18 4. An independent contractor is not in the classified or unclassified

58-19 service of the state, and has none of the rights or privileges available to

58-20 officers or employees of the State of Nevada.

58-21 5. Except as otherwise provided in this subsection, each contract for

58-22 the services of an independent contractor must be in writing. The form of

58-23 the contract must be first approved by the attorney general, and, except as

58-24 otherwise provided in subsection 7, an executed copy of each contract must

58-25 be filed with the fiscal analysis division of the legislative counsel bureau

58-26 and the clerk of the state board of examiners. The state board of examiners

58-27 may waive the requirements of this subsection in the case of contracts

58-28 which are for amounts less than $750.

58-29 6. Except as otherwise provided in subsection 7, and except contracts

58-30 entered into by the University and Community College System of Nevada,

58-31 each proposed contract with an independent contractor must be submitted

58-32 to the state board of examiners. The contracts do not become effective

58-33 without the prior approval of the state board of examiners, but the state

58-34 board of examiners may authorize its clerk or his designee to approve

58-35 contracts which are:

58-36 (a) For amounts less than $5,000 or, in contracts necessary to preserve

58-37 life and property, for amounts less than $25,000.

58-38 (b) Entered into by the state gaming control board for the purposes of

58-39 investigating an applicant for or holder of a gaming license.

58-40 The state board of examiners shall adopt regulations to carry out the

58-41 provisions of this section.

58-42 7. Copies of the following types of contracts need not be filed or

58-43 approved as provided in subsections 5 and 6:

59-1 (a) Contracts executed by the department of transportation for any work

59-2 of construction or reconstruction of highways.

59-3 (b) Contracts executed by the state public works board or any other state

59-4 department or agency for any work of construction or major repairs of state

59-5 buildings if the contracting process was controlled by the rules of open

59-6 competitive bidding.

59-7 (c) Contracts executed by the housing division of the department of

59-8 business and industry.

59-9 (d) [Contracts executed by the state industrial insurance system.

59-10 (e)] Contracts executed with business entities for any work of

59-11 maintenance or repair of office machines and equipment.

59-12 8. The state board of examiners shall review each contract submitted

59-13 for approval pursuant to subsection 6 to consider:

59-14 (a) Whether sufficient authority exists to expend the money required by

59-15 the contract; and

59-16 (b) Whether the service which is the subject of the contract could be

59-17 provided by a state agency in a more cost-effective manner.

59-18 If the contract submitted for approval continues an existing contractual

59-19 relationship, the board shall ask each agency to ensure that the state is

59-20 receiving the services that the contract purports to provide.

59-21 9. If the services of an independent contractor are contracted for to

59-22 represent an agency of the state in any proceeding in any court, the contract

59-23 must require the independent contractor to identify in all pleadings the

59-24 specific state agency which he is representing.

59-25 Sec. 98. NRS 333.020 is hereby amended to read as follows:

59-26 333.020 As used in this chapter, unless the context otherwise requires:

59-27 1. "Chief" means the chief of the purchasing division.

59-28 2. "Director" means the director of the department of administration.

59-29 3. "Proprietary information" means:

59-30 (a) Any trade secret or confidential business information that is

59-31 contained in a bid submitted on a particular contract; or

59-32 (b) Any other trade secret or confidential business information

59-33 submitted by a bidder and designated as proprietary by the chief.

59-34 As used in this subsection, "confidential business information" means any

59-35 information relating to the amount or source of any income, profits, losses

59-36 or expenditures of a person, including data relating to cost or price

59-37 submitted in support of a bid or proposal. The term does not include the

59-38 amount of a bid or proposal.

59-39 4. "Purchasing division" means the purchasing division of the

59-40 department of administration.

59-41 5. "Purchasing officer" means a person who is authorized by the chief

59-42 or a using agency to participate in:

59-43 (a) The evaluation of bids or proposals for a contract;

60-1 (b) Any negotiations concerning a contract; or

60-2 (c) The development, review or approval of a contract.

60-3 6. "Request for a proposal" means a statement which sets forth the

60-4 requirements and specifications of a contract to be awarded by competitive

60-5 selection.

60-6 7. "Trade secret" has the meaning ascribed to it in NRS 600A.030.

60-7 8. "Using agencies" means all officers, departments, institutions,

60-8 boards, commissions and other agencies in the executive department of the

60-9 state government which derive their support from public money in whole or

60-10 in part, whether the money is provided by the State of Nevada, received

60-11 from the Federal Government or any branch, bureau or agency thereof, or

60-12 derived from private or other sources, except the Nevada rural housing

60-13 authority, local governments as defined in NRS 354.474, conservation

60-14 districts, irrigation districts [, the state industrial insurance system] and the

60-15 University and Community College System of Nevada.

60-16 9. "Volunteer fire department" means a volunteer fire department

60-17 which pays premiums for industrial insurance pursuant to the provisions of

60-18 chapters 616A to 616D, inclusive, of NRS.

60-19 Sec. 99. NRS 333.470 is hereby amended to read as follows:

60-20 333.470 1. The University and Community College System of

60-21 Nevada, [the state industrial insurance system and] local governments as

60-22 defined in NRS 354.474, conservation districts and irrigation districts in the

60-23 State of Nevada may obtain supplies, materials and equipment on a

60-24 voluntary basis through the facilities of the purchasing division.

60-25 2. The chief shall issue bulletins from time to time to:

60-26 (a) Each state agency;

60-27 (b) Each local governmental agency;

60-28 (c) Each irrigation district;

60-29 (d) Each conservation district; and

60-30 (e) The University and Community College System of Nevada , [; and

60-31 (f) The state industrial insurance system,]

60-32 indicating the supplies, materials and equipment available and the prices

60-33 thereof.

60-34 3. The specifications for all bids for supplies, materials or equipment to

60-35 be furnished pursuant to the provisions of subsection 1 must be so written

60-36 that all suppliers of the market in the industry or business concerned are

60-37 given an opportunity to bid pursuant to notice as provided for in this

60-38 chapter.

60-39 Sec. 100. NRS 338.1905 is hereby amended to read as follows:

60-40 338.1905 1. The governor shall designate one or more energy retrofit

60-41 coordinators for the buildings occupied by the executive branch of

60-42 government, including, without limitation, the [state industrial insurance

61-1 system, the] University and Community College System of Nevada and the

61-2 public employees’ retirement system.

61-3 2. The supreme court shall designate an energy retrofit coordinator for

61-4 the buildings occupied by the judicial branch of state government.

61-5 3. The legislature, by concurrent resolution, shall designate an energy

61-6 retrofit coordinator for the buildings occupied by the legislative branch of

61-7 government. If the position becomes vacant at a time when the legislature is

61-8 not in session, the legislative commission may designate a replacement.

61-9 4. The governor shall appoint a person who is trained in the

61-10 management of facilities to assist the energy retrofit coordinator of the:

61-11 (a) Judicial branch of government, upon request of the supreme court.

61-12 (b) Legislative branch of government, upon request of the legislative

61-13 commission.

61-14 A person appointed to assist an energy retrofit coordinator pursuant to this

61-15 subsection shall provide all assistance requested including making

61-16 recommendations for proposals for retrofitting buildings and any other

61-17 assistance necessary to enable the coordinator to carry out the provisions of

61-18 NRS 338.1906.

61-19 Sec. 101. NRS 353.210 is hereby amended to read as follows:

61-20 353.210 1. Except as otherwise provided in subsection 6, on or

61-21 before August 15 of each even-numbered year, all departments, institutions

61-22 and other agencies of the executive department of the state government,

61-23 and all agencies of the executive department of the state government

61-24 receiving state money, fees or other money under the authority of the state,

61-25 including those operating on money designated for specific purposes by the

61-26 constitution or otherwise, shall prepare, on blanks furnished them by the

61-27 chief, and submit to the chief estimates of their expenditure requirements,

61-28 together with all anticipated income from fees and all other sources, for the

61-29 next 2 fiscal years compared with the corresponding figures of the last

61-30 completed fiscal year and the estimated figures for the current fiscal year.

61-31 2. The chief shall direct that one copy of the forms submitted pursuant

61-32 to subsection 1, accompanied by every supporting schedule and any other

61-33 related material, be delivered directly to the fiscal analysis division of the

61-34 legislative counsel bureau on or before August 15 of each even-numbered

61-35 year.

61-36 3. The budget division of the department of administration shall give

61-37 advance notice to the fiscal analysis division of the legislative counsel

61-38 bureau of any conference between the budget division of the department of

61-39 administration and personnel of other state agencies regarding budget

61-40 estimates. A fiscal analyst of the legislative counsel bureau or his

61-41 designated representative may attend any such conference.

61-42 4. The estimates of expenditure requirements submitted pursuant to

61-43 subsection 1 must be classified to set forth the data of funds, organizational

62-1 units, and the character and objects of expenditures, and must include a

62-2 mission statement and measurement indicators for each program. The

62-3 organizational units may be subclassified by functions and activities, or in

62-4 any other manner at the discretion of the chief.

62-5 5. If any department, institution or other agency of the executive

62-6 department of the state government, whether its money is derived from

62-7 state money or from other money collected under the authority of the state,

62-8 fails or neglects to submit estimates of its expenditure requirements as

62-9 provided in this section, the chief may, from any data at hand in his office

62-10 or which he may examine or obtain elsewhere, make and enter a proposed

62-11 budget for the department, institution or agency in accordance with the

62-12 data.

62-13 6. Agencies, bureaus, commissions and officers of the legislative

62-14 department, the public employees’ retirement system [, the state industrial

62-15 insurance system] and the judicial department of the state government shall

62-16 submit to the chief for his information in preparing the proposed executive

62-17 budget the budgets which they propose to submit to the legislature.

62-18 Sec. 102. NRS 353.246 is hereby amended to read as follows:

62-19 353.246 1. Except as otherwise provided in subsection 2 of this

62-20 section and subsection 6 of NRS 353.210, the provisions of NRS 353.150

62-21 to 353.245, inclusive, do not apply to agencies, bureaus, commissions and

62-22 officers of the legislative department, the public employees’ retirement

62-23 system [, the state industrial insurance system] and the judicial department

62-24 of the state government.

62-25 2. The legislative department, the public employees’ retirement system

62-26 [, the state industrial insurance system] and the judicial department of the

62-27 state government shall submit their budgets to the legislature in the same

62-28 format as the proposed executive budget unless otherwise provided by the

62-29 legislative commission. All projections of revenue and any other

62-30 information concerning future state revenue contained in those budgets

62-31 must be based upon the projections and estimates prepared by the economic

62-32 forum pursuant to NRS 353.228.

62-33 Sec. 103. NRS 353.335 is hereby amended to read as follows:

62-34 353.335 1. Except as otherwise provided in subsections 5 and 6, a

62-35 state agency may accept any gift or grant of property or services from any

62-36 source only if it is included in an act of the legislature authorizing

62-37 expenditures of nonappropriated money or, when it is not so included, if it

62-38 is approved as provided in subsection 2.

62-39 2. If:

62-40 (a) Any proposed gift or grant is necessary because of an emergency as

62-41 defined in NRS 353.263 or for the protection or preservation of life or

62-42 property, the governor shall take reasonable and proper action to accept it

62-43 and shall report the action and his reasons for determining that immediate

63-1 action was necessary to the interim finance committee at its first meeting

63-2 after the action is taken. Action by the governor pursuant to this paragraph

63-3 constitutes acceptance of the gift or grant, and other provisions of this

63-4 chapter requiring approval before acceptance do not apply.

63-5 (b) The governor determines that any proposed gift or grant would be

63-6 forfeited if the state failed to accept it before the expiration of the period

63-7 prescribed in paragraph (c), he may declare that the proposed acceptance

63-8 requires expeditious action by the interim finance committee. Whenever the

63-9 governor so declares, the interim finance committee has 15 days after the

63-10 proposal is submitted to its secretary within which to approve or deny the

63-11 acceptance. Any proposed acceptance which is not considered within the

63-12 15-day period shall be deemed approved.

63-13 (c) The proposed acceptance of any gift or grant does not qualify

63-14 pursuant to paragraph (a) or (b), it must be submitted to the interim finance

63-15 committee. The interim finance committee has 45 days after the proposal is

63-16 submitted to its secretary within which to consider acceptance. Any

63-17 proposed acceptance which is not considered within the 45-day period shall

63-18 be deemed approved.

63-19 3. The secretary shall place each request submitted to him pursuant to

63-20 paragraph (b) or (c) of subsection 2 on the agenda of the next meeting of

63-21 the interim finance committee.

63-22 4. In acting upon a proposed gift or grant, the interim finance

63-23 committee shall consider, among other things:

63-24 (a) The need for the facility or service to be provided or improved;

63-25 (b) Any present or future commitment required of the state;

63-26 (c) The extent of the program proposed; and

63-27 (d) The condition of the national economy, and any related fiscal or

63-28 monetary policies.

63-29 5. A state agency may accept:

63-30 (a) Gifts, including grants from nongovernmental sources, not exceeding

63-31 $10,000 each in value; and

63-32 (b) Governmental grants not exceeding $100,000 each in value,

63-33 if the gifts or grants are used for purposes which do not involve the hiring

63-34 of new employees and if the agency has the specific approval of the

63-35 governor or, if the governor delegates this power of approval to the chief of

63-36 the budget division of the department of administration, the specific

63-37 approval of the chief.

63-38 6. This section does not apply to:

63-39 (a) [The state industrial insurance system;

63-40 (b)] The University and Community College System of Nevada; or

63-41 [(c)] (b) The department of human resources while acting as the state

63-42 health planning and development agency pursuant to paragraph (d) of

64-1 subsection 2 of NRS 439A.081 or for donations, gifts or grants to be

64-2 disbursed pursuant to NRS 433.395.

64-3 Sec. 104. NRS 353A.010 is hereby amended to read as follows:

64-4 353A.010 As used in this chapter, unless the context otherwise

64-5 requires:

64-6 1. "Agency" means every agency, department, division, board,

64-7 commission or similar body, or elected officer, of the executive branch of

64-8 the state, except:

64-9 (a) A board or commission created by the provisions of chapters 623 to

64-10 625, inclusive, 628 to 644, inclusive, 654 and 656 of NRS.

64-11 (b) The University and Community College System of Nevada.

64-12 (c) The public employees’ retirement system.

64-13 (d) [The state industrial insurance system.

64-14 (e)] The housing division of the department of business and industry.

64-15 [(f)] (e) The Colorado River commission.

64-16 2. "Director" means the director of the department of administration.

64-17 3. "Internal accounting and administrative control" means a method

64-18 through which agencies can safeguard assets, check the accuracy and

64-19 reliability of their accounting information, promote efficient operations and

64-20 encourage adherence to prescribed managerial policies.

64-21 Sec. 105. NRS 355.140 is hereby amended to read as follows:

64-22 355.140 1. In addition to other investments provided for by a specific

64-23 statute, the following bonds and other securities are proper and lawful

64-24 investments of any of the money of this state, of its various departments,

64-25 institutions and agencies, and of the state insurance fund:

64-26 (a) Bonds and certificates of the United States;

64-27 (b) Bonds, notes, debentures and loans if they are underwritten by or

64-28 their payment is guaranteed by the United States;

64-29 (c) Obligations or certificates of the United States Postal Service, the

64-30 Federal National Mortgage Association, the Federal Home Loan Banks, the

64-31 Federal Home Loan Mortgage Corporation or the Student Loan Marketing

64-32 Association, whether or not guaranteed by the United States;

64-33 (d) Bonds of this state or other states of the Union;

64-34 (e) Bonds of any county of this state or of other states;

64-35 (f) Bonds of incorporated cities in this state or in other states of the

64-36 Union, including special assessment district bonds if those bonds provide

64-37 that any deficiencies in the proceeds to pay the bonds are to be paid from

64-38 the general fund of the incorporated city;

64-39 (g) General obligation bonds of irrigation districts and drainage districts

64-40 in this state which are liens upon the property within those districts, if the

64-41 value of the property is found by the board or commission making the

64-42 investments to render the bonds financially sound over and above all other

64-43 obligations of the districts;

65-1 (h) Bonds of school districts within this state;

65-2 (i) Bonds of any general improvement district whose population is

65-3 200,000 or more and which is situated in two or more counties of this state

65-4 or of any other state, if:

65-5 (1) The bonds are general obligation bonds and constitute a lien upon

65-6 the property within the district which is subject to taxation; and

65-7 (2) That property is of an assessed valuation of not less than five

65-8 times the amount of the bonded indebtedness of the district;

65-9 (j) Medium-term obligations for counties, cities and school districts

65-10 authorized pursuant to chapter 350 of NRS;

65-11 (k) Loans bearing interest at a rate determined by the state board of

65-12 finance when secured by first mortgages on agricultural lands in this state

65-13 of not less than three times the value of the amount loaned, exclusive of

65-14 perishable improvements, and of unexceptional title and free from all

65-15 encumbrances;

65-16 (l) Farm loan bonds, consolidated farm loan bonds, debentures,

65-17 consolidated debentures and other obligations issued by federal land banks

65-18 and federal intermediate credit banks under the authority of the Federal

65-19 Farm Loan Act, formerly 12 U.S.C. §§ 636 to 1012, inclusive, and §§ 1021

65-20 to 1129, inclusive, and the Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to

65-21 2259, inclusive, and bonds, debentures, consolidated debentures and other

65-22 obligations issued by banks for cooperatives under the authority of the

65-23 Farm Credit Act of 1933, formerly 12 U.S.C. §§ 1131 to 1138e, inclusive,

65-24 and the Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to 2259, inclusive,

65-25 excluding such money thereof as has been received or which may be

65-26 received hereafter from the Federal Government or received pursuant to

65-27 some federal law which governs the investment thereof;

65-28 (m) Negotiable certificates of deposit issued by commercial banks or

65-29 insured savings and loan associations;

65-30 (n) Bankers’ acceptances of the kind and maturities made eligible by

65-31 law for rediscount with Federal Reserve banks or trust companies which are

65-32 members of the Federal Reserve System, except that acceptances may not

65-33 exceed 180 days’ maturity, and may not, in aggregate value, exceed 20

65-34 percent of the total par value of the portfolio as determined on the date of

65-35 purchase;

65-36 (o) Commercial paper issued by a corporation organized and operating

65-37 in the United States or by a depository institution licensed by the United

65-38 States or any state and operating in the United States that:

65-39 (1) At the time of purchase has a remaining term to maturity of [no]

65-40 not more than 270 days; and

65-41 (2) Is rated by a nationally recognized rating service as "A-1," "P-1"

65-42 or its equivalent, or better,

66-1 except that investments pursuant to this paragraph may not, in aggregate

66-2 value, exceed 20 percent of the total par value of the portfolio as

66-3 determined on the date of purchase, and if the rating of an obligation is

66-4 reduced to a level that does not meet the requirements of this paragraph, it

66-5 must be sold as soon as possible;

66-6 (p) Notes, bonds and other unconditional obligations for the payment of

66-7 money, except certificates of deposit that do not qualify pursuant to

66-8 paragraph (m), issued by corporations organized and operating in the

66-9 United States or by depository institutions licensed by the United States or

66-10 any state and operating in the United States that:

66-11 (1) Are purchased from a registered broker-dealer;

66-12 (2) At the time of purchase have a remaining term to maturity of [no]

66-13 not more than 3 years; and

66-14 (3) Are rated by a nationally recognized rating service as "A" or its

66-15 equivalent, or better,

66-16 except that investments pursuant to this paragraph may not, in aggregate

66-17 value, exceed 20 percent of the total par value of the portfolio, and if the

66-18 rating of an obligation is reduced to a level that does not meet the

66-19 requirements of this paragraph, it must be sold as soon as possible;

66-20 (q) Money market mutual funds which:

66-21 (1) Are registered with the Securities and Exchange Commission;

66-22 (2) Are rated by a nationally recognized rating service as "AAA" or

66-23 its equivalent; and

66-24 (3) Invest only in securities issued by the Federal Government or

66-25 agencies of the Federal Government or in repurchase agreements fully

66-26 collateralized by such securities; and

66-27 (r) Collateralized mortgage obligations that are rated by a nationally

66-28 recognized rating service as "AAA" or its equivalent.

66-29 2. Repurchase agreements are proper and lawful investments of money

66-30 of the state and the state insurance fund for the purchase or sale of

66-31 securities which are negotiable and of the types listed in subsection 1 if

66-32 made in accordance with the following conditions:

66-33 (a) The state treasurer shall designate in advance and thereafter maintain

66-34 a list of qualified counterparties which:

66-35 (1) Regularly provide audited and, if available, unaudited financial

66-36 statements to the state treasurer;

66-37 (2) The state treasurer has determined to have adequate capitalization

66-38 and earnings and appropriate assets to be highly credit worthy; and

66-39 (3) Have executed a written master repurchase agreement in a form

66-40 satisfactory to the state treasurer and the state board of finance pursuant to

66-41 which all repurchase agreements are entered into. The master repurchase

66-42 agreement must require the prompt delivery to the state treasurer and the

66-43 appointed custodian of written confirmations of all transactions conducted

67-1 thereunder, and must be developed giving consideration to the Federal

67-2 Bankruptcy Act [.] , 11 U.S.C. §§ 101 et seq.

67-3 (b) In all repurchase agreements:

67-4 (1) At or before the time money to pay the purchase price is

67-5 transferred, title to the purchased securities must be recorded in the name of

67-6 the appointed custodian, or the purchased securities must be delivered with

67-7 all appropriate, executed transfer instruments by physical delivery to the

67-8 custodian;

67-9 (2) The state must enter into a written contract with the custodian

67-10 appointed pursuant to subparagraph (1) which requires the custodian to:

67-11 (I) Disburse cash for repurchase agreements only upon receipt of

67-12 the underlying securities;

67-13 (II) Notify the state when the securities are marked to the market if

67-14 the required margin on the agreement is not maintained;

67-15 (III) Hold the securities separate from the assets of the custodian;

67-16 and

67-17 (IV) Report periodically to the state concerning the market value of

67-18 the securities;

67-19 (3) The market value of the purchased securities must exceed 102

67-20 percent of the repurchase price to be paid by the counterparty and the value

67-21 of the purchased securities must be marked to the market weekly;

67-22 (4) The date on which the securities are to be repurchased must not be

67-23 more than 90 days after the date of purchase; and

67-24 (5) The purchased securities must not have a term to maturity at the

67-25 time of purchase in excess of 10 years.

67-26 3. As used in subsection 2:

67-27 (a) "Counterparty" means a bank organized and operating or licensed to

67-28 operate in the United States pursuant to federal or state law or a securities

67-29 dealer which is:

67-30 (1) A registered broker-dealer;

67-31 (2) Designated by the Federal Reserve Bank of New York as a

67-32 "primary" dealer in United States government securities; and

67-33 (3) In full compliance with all applicable capital requirements.

67-34 (b) "Repurchase agreement" means a purchase of securities by the state

67-35 or state insurance fund from a counterparty which commits to repurchase

67-36 those securities or securities of the same issuer, description, issue date and

67-37 maturity on or before a specified date for a specified price.

67-38 4. No money of this state may be invested pursuant to a reverse-

67-39 repurchase agreement, except money invested pursuant to chapter 286 [or

67-40 chapters 616A to 616D, inclusive,] of NRS.

67-41 Sec. 106. NRS 355.150 is hereby amended to read as follows:

67-42 355.150 1. Before making any investment in the bonds and other

67-43 securities designated in NRS 355.140, the [state industrial insurance

68-1 system, the] state board of finance, or other board, commission or agency

68-2 of the state [,] contemplating the making of any such investments shall

68-3 make due and diligent inquiry as to:

68-4 (a) Whether the bonds of such federal agencies are actually underwritten

68-5 or payment thereof is guaranteed by the United States.

68-6 (b) The financial standing and responsibility of the state or states,

68-7 county or counties, incorporated cities, irrigation districts, drainage

68-8 districts, school districts, and general improvement districts in the bonds or

68-9 securities of which such investments are contemplated or are to be made.

68-10 (c) Whether such bonds and other securities are valid and duly

68-11 authorized and issued, and the proceedings incident thereto have been fully

68-12 complied with.

68-13 (d) The financial standing and responsibility of the person or persons,

68-14 company or companies, corporation or corporations to whom or to which

68-15 such loans are contemplated.

68-16 (e) The value of the lands so mortgaged.

68-17 2. Such commission, board or other state agency shall require the

68-18 attorney general:

68-19 (a) To give his legal opinion in writing as to:

68-20 (1) The validity of any laws under which such bonds or securities are

68-21 issued and authorized and in which such investments are contemplated.

68-22 (2) The validity of such bonds or other securities.

68-23 (b) To examine and pass upon and to give his official opinion in writing

68-24 upon the title and abstract of title or title insurance of all agricultural lands

68-25 so mortgaged to secure such loans.

68-26 3. Unless such commission, board or other state agency is satisfied

68-27 from such inquiry and opinion that the bonds of such federal agencies are

68-28 underwritten or payment thereof guaranteed by the United States and of the

68-29 financial standing and responsibility of the state, county, incorporated city

68-30 or district issuing such bonds, then such commission, board or other state

68-31 agency shall not invest such funds therein , [;] but if satisfied, such

68-32 commission, board or other state agency may, at its option, so invest such

68-33 funds in such bonds.

68-34 Sec. 107. NRS 355.160 is hereby amended to read as follows:

68-35 355.160 Except as otherwise provided in NRS 355.140 and 355.150,

68-36 the [state industrial insurance system, the] state board of finance, [the] state

68-37 board of education or other state agency shall proceed in the same manner

68-38 as the law relating to each of them requires in the making of such

68-39 investments, the purpose of NRS 355.140 and 355.150, being merely to

68-40 designate the classes of bonds and other securities and loans in which the

68-41 funds mentioned in NRS 355.140 lawfully may be invested and the other

68-42 matters relating thereto as specified in NRS 355.140 and 355.150.

69-1 Sec. 108. NRS 396.591 is hereby amended to read as follows:

69-2 396.591 The University of Nevada, Reno, and the University of

69-3 Nevada, Las Vegas, may each elect to insure members of varsity and

69-4 freshman athletic teams representing the respective campuses for unlimited

69-5 medical coverage for injuries incurred while the members of the teams are

69-6 engaged in organized practice or actual competition or any activity related

69-7 thereto. Such insurance [may] must be obtained from a private carrier . [or

69-8 from the state industrial insurance system.]

69-9 Sec. 109. NRS 433A.430 is hereby amended to read as follows:

69-10 433A.430 1. Whenever the administrator determines that division

69-11 facilities within the state are inadequate for the care of any mentally ill

69-12 person, he may designate two physicians, licensed under the provisions of

69-13 chapter 630 of NRS, and familiar with the field of psychiatry, to examine

69-14 that person. If the two physicians concur with the opinion of the

69-15 administrator, the administrator may contract with appropriate

69-16 corresponding authorities in any other state of the United States having

69-17 adequate facilities for such purposes for the reception, detention, care or

69-18 treatment of that person, but if the person in any manner objects to the

69-19 transfer, the procedures in subsection 3 of NRS 433.484 and subsections 2

69-20 and 3 of NRS 433.534 must be followed. The two physicians so designated

69-21 are entitled to a reasonable fee for their services [based upon rates set by

69-22 the state industrial insurance system for similar services, which fee] which

69-23 must be paid by the county of the person’s last known residence.

69-24 2. Money to carry out the provisions of this section must be provided

69-25 by direct legislative appropriation.

69-26 Sec. 110. NRS 475.110 is hereby amended to read as follows:

69-27 475.110 1. All sheriffs, their deputies, firewardens [,] or other peace

69-28 officers or any national forest officer may call upon able-bodied male

69-29 persons within the State of Nevada who are between the ages of 16 years

69-30 and 50 years for assistance in extinguishing fires in timber or in brush.

69-31 2. Persons who refuse to obey the summons or who refuse to assist in

69-32 fighting fire for the period stated in subsection 3, unless they present

69-33 sufficient reasons, are guilty of a misdemeanor.

69-34 3. No male person may be required to fight fires a total of more than 5

69-35 days during any 1 year.

69-36 4. The board of county commissioners may fix the amount of

69-37 compensation to be paid to male persons drafted to fight fires as provided

69-38 in this section, and the sums so fixed must be allowed and paid as other

69-39 claims against the county are paid.

69-40 5. For the purpose of obtaining the benefits of the Nevada Industrial

69-41 Insurance Act, male persons drafted to fight fires [shall] must be

69-42 considered employees of the county demanding their services, and they are

69-43 entitled to receive for disability incurred by reason thereof the benefits

70-1 under the Nevada Industrial Insurance Act. The county shall report and pay

70-2 premiums to [the state industrial insurance system or] a private carrier

70-3 authorized to provide industrial insurance in this state for persons so

70-4 engaged.

70-5 Sec. 111. NRS 475.230 is hereby amended to read as follows:

70-6 475.230 1. Any fire department which engages in fighting a fire on

70-7 property owned by the state within the jurisdictional limits of the fire

70-8 department may submit a claim to the secretary of the state board of

70-9 examiners to recover any direct expenses and losses incurred as a result of

70-10 fighting that fire.

70-11 2. The claim must include:

70-12 (a) The name, address and jurisdictional limits of the fire department;

70-13 (b) The name, address and telephone number of the person making the

70-14 claim on behalf of the fire department;

70-15 (c) The name and address, if known, of the state agency having

70-16 jurisdiction over the property on which the fire occurred;

70-17 (d) The exact location of the fire;

70-18 (e) A description of the property burned;

70-19 (f) The number and classification of the personnel and the number and

70-20 type of equipment used to fight the fire;

70-21 (g) A copy of the fire report; and

70-22 (h) An itemized list of direct expenses and losses incurred while fighting

70-23 the fire , including the purchase cost, estimated cost of repairs and a

70-24 statement of depreciated value immediately preceding and after the damage

70-25 to or destruction of any equipment and the extent of any insurance

70-26 coverage.

70-27 3. As used in this section, "direct expenses and losses" means certain

70-28 expenses and losses which were incurred while fighting a fire on property

70-29 owned by the state. The term is limited to:

70-30 (a) The depreciated value, if any, of any equipment or vehicle which

70-31 was damaged or destroyed; and

70-32 (b) If the employer maintains a plan which supplements coverage for

70-33 workers’ compensation provided pursuant to chapters 616A to 616D,

70-34 inclusive, of NRS by [the state industrial insurance system] a private

70-35 carrier and the benefits are provided from public money and not by an

70-36 insurer, any injury or death benefits which would have been paid by the

70-37 employer from public money.

70-38 Sec. 112. NRS 538.101 is hereby amended to read as follows:

70-39 538.101 1. While engaged in official business of the commission,

70-40 each commissioner appointed by the governor is entitled to receive a salary

70-41 of not more than $80 per day, as fixed by the commission.

71-1 2. While engaged in the business of the commission, each member and

71-2 employee of the commission is entitled to receive the per diem allowance

71-3 and travel expenses provided for state officers and employees generally.

71-4 3. The director or an employee of the commission designated by the

71-5 director shall certify all bills and claims for compensation, per diem

71-6 expense allowances and travel expenses of the commissioners, and shall

71-7 submit them for payment in the same manner as all other state claims. The

71-8 bills and claims must be paid from the Colorado River commission fund or

71-9 any other fund administered by the commission and designated to be used

71-10 for those expenses by the director.

71-11 4. The commission shall provide its members who are appointed by the

71-12 governor with industrial insurance through [the state industrial insurance

71-13 system or] a private carrier authorized to provide industrial insurance in

71-14 this state and shall budget and pay for the premiums for that insurance.

71-15 Sec. 113. NRS 624.328 is hereby amended to read as follows:

71-16 624.328 The employment security division of the department of

71-17 employment, training and rehabilitation and the administrator of the

71-18 division of industrial relations of the department of business and industry

71-19 shall make available, upon request, to any licensed contractor the names

71-20 and addresses of subcontractors who are delinquent in paying the amounts

71-21 owed by the subcontractor to [the:

71-22 1. Division] :

71-23 1. The division for benefits for unemployment pursuant to chapter 612

71-24 of NRS; and

71-25 2. [State industrial insurance system or a] A private carrier that

71-26 provides industrial insurance in this state for premiums for industrial

71-27 insurance.

71-28 Sec. 114. NRS 668.045 is hereby amended to read as follows:

71-29 668.045 1. It is unlawful for a president, director, manager, cashier

71-30 or other officer or employee of any bank to permit the bank to remain open

71-31 for business, or to assent to the reception of deposits or the creation of

71-32 debts by the banking institution, after he has knowledge of the fact that it is

71-33 insolvent or in failing circumstances. An officer, director, manager or agent

71-34 of a bank shall examine the affairs of the bank and shall know its condition.

71-35 Upon the failure of any such person to discharge his duty of examination,

71-36 he must be held, for the purpose of this Title, to have had knowledge of the

71-37 insolvency of the bank, or that it was in failing circumstances, and shall be

71-38 deemed to have assented to the receipt of deposits while the bank was

71-39 insolvent or in failing circumstances. A person who violates the provisions

71-40 of this subsection is individually responsible for deposits so received, and

71-41 all such debts so contracted, but any director who has paid more than his

71-42 share of such liabilities has a remedy at law against other persons who have

71-43 not paid their full share of such liabilities for contribution.

72-1 2. It is unlawful for a president, director, manager, cashier or other

72-2 officer or employee of any bank willfully to give or concur in giving to a

72-3 creditor of the bank any fraudulent, undue or unfair preference over other

72-4 creditors, by giving security to the creditor, or by changing the nature of his

72-5 claim, or otherwise, but this subsection does not prohibit the bank from

72-6 giving security for public money of the State of Nevada or any political

72-7 subdivision thereof, [the state industrial insurance system,] or of the United

72-8 States, or an officer, agent, agency or department thereof, in the manner

72-9 provided by law.

72-10 3. A person who violates the provisions of this section, or who is an

72-11 accessory to, or permits or connives at, the receiving or accepting of any

72-12 such deposits, or the giving of such preferences, is guilty of a category D

72-13 felony and shall be punished as provided in NRS 193.130.

72-14 Sec. 115. NRS 680B.027 is hereby amended to read as follows:

72-15 680B.027 1. Except as otherwise provided in NRS 680B.033 and

72-16 680B.050, for the privilege of transacting business in this state, each

72-17 insurer shall pay to the department of taxation a tax upon his net direct

72-18 premiums and net direct considerations written at the rate of 3.5 percent.

72-19 2. The tax must be paid in the manner required by NRS 680B.030 and

72-20 680B.032.

72-21 3. The commissioner or the executive director of the department of

72-22 taxation may require at any time verified supplemental statements with

72-23 reference to any matter pertinent to the proper assessment of the tax.

72-24 [4. For the purposes of this section, "insurer" includes the state

72-25 industrial insurance system.]

72-26 Sec. 116. NRS 680B.050 is hereby amended to read as follows:

72-27 680B.050 1. Except as otherwise provided in this section, a domestic

72-28 or foreign insurer which owns and substantially occupies and uses any

72-29 building in this state as its home office or as a regional home office, as

72-30 defined in subsection 2, is entitled to the following credits against the tax

72-31 otherwise imposed by NRS 680B.027:

72-32 (a) An amount equal to 50 percent of the aggregate amount of the tax as

72-33 determined under NRS 680B.025 to 680B.039, inclusive; and

72-34 (b) An amount equal to the full amount of ad valorem taxes paid by the

72-35 insurer during the calendar year next preceding the filing of the report

72-36 required by NRS 680B.030, upon the home office or regional home office

72-37 together with the land, as reasonably required for the convenient use of the

72-38 office, upon which the home office or regional home office is situated.

72-39 These credits must not reduce the amount of tax payable to less than 20

72-40 percent of the tax otherwise payable by the insurer under NRS 680B.027.

72-41 2. For the purposes of this section, a "regional home office" means an

72-42 office of the insurer performing for an area covering two or more states,

73-1 with a minimum of 25 employees on its office staff, the supervision,

73-2 underwriting, issuing and servicing of the insurance business of the insurer.

73-3 3. The insurer shall on or before March 1 of each year furnish proof to

73-4 the satisfaction of the executive director of the department of taxation, on

73-5 forms furnished by or acceptable to the executive director, as to its

73-6 entitlement to the tax reduction provided for in this section. A

73-7 determination of the executive director of the department of taxation

73-8 pursuant to this section is not binding upon the commissioner for the

73-9 purposes of NRS 682A.240.

73-10 4. An insurer is not entitled to the credits provided in this section

73-11 unless:

73-12 (a) The insurer owned the property upon which the reduction is based

73-13 for the entire year for which the reduction is claimed; and

73-14 (b) The insurer occupied at least 70 percent of the usable space in the

73-15 building to transact insurance or the insurer is a general or limited partner

73-16 and occupies 100 percent of its ownership interest in the building.

73-17 5. If two or more insurers under common ownership or management

73-18 and control jointly own in equal interest, and jointly occupy and use such a

73-19 home office or regional home office in this state for the conduct and

73-20 administration of their respective insurance businesses as provided in this

73-21 section, each of the insurers is entitled to the credits provided for by this

73-22 section if otherwise qualified therefor under this section.

73-23 6. The state industrial insurance system is entitled to a credit against

73-24 the tax otherwise imposed by NRS 680B.027 in an amount equal to 50

73-25 percent of the aggregate amount of the tax as determined under NRS

73-26 680B.025 to 680B.039, inclusive. This credit must not reduce the amount

73-27 of tax payable to less than 20 percent of the tax otherwise payable by the

73-28 system under NRS 680B.027.

73-29 Sec. 117. NRS 680B.060 is hereby amended to read as follows:

73-30 680B.060 1. Except as otherwise provided in subsection 6, the taxes

73-31 imposed under NRS 680B.027 must be collected by the department of

73-32 taxation and promptly deposited with the state treasurer for credit to the

73-33 state general fund.

73-34 2. If the tax is not paid by the insurer on or before the date required for

73-35 payment, the tax then becomes delinquent, and payment thereof may be

73-36 enforced by court action instituted on behalf of the state by the attorney

73-37 general. The attorney general may employ additional counsel in the city

73-38 where the home office of the insurer is located, subject to the approval of

73-39 compensation for such services by the state board of examiners. The

73-40 administrative and substantive enforcement provisions of chapters 360 and

73-41 372 of NRS apply to the enforcement of the taxes imposed under NRS

73-42 680B.027.

74-1 3. Upon the tax becoming delinquent, the executive director of the

74-2 department of taxation shall notify the commissioner, who shall suspend or

74-3 revoke the insurer’s certificate of authority pursuant to NRS 680A.190.

74-4 4. If a dispute arises between an insurer and the state as to the amount

74-5 of tax, if any, payable, the insurer is entitled to pay under protest the tax in

74-6 the amount assessed by the department of taxation, without waiving or

74-7 otherwise affecting any right of the insurer to recover any amount

74-8 determined, through appropriate legal action taken by the insurer against

74-9 the department of taxation, to have been in excess of the amount of tax

74-10 lawfully payable.

74-11 5. Except as otherwise provided in subsection 6, all taxes, fees,

74-12 licenses, fines and charges collected under this code, including the general

74-13 premium tax provided for under NRS 680B.027 and as increased in any

74-14 instances pursuant to NRS 680A.330, must be promptly deposited with the

74-15 state treasurer for credit to the state general fund.

74-16 6. The taxes collected pursuant to NRS 680B.027 from insurers that

74-17 are writing industrial insurance in this state, including the state industrial

74-18 insurance system, which are attributable to industrial insurance must be

74-19 promptly deposited with the state treasurer for credit to [the account for the

74-20 administration of extended claims established in] the state insurance fund

74-21 [pursuant to NRS 616B.087,] until the commissioner notifies the state

74-22 treasurer that the balance in the [account is sufficient to satisfy all

74-23 obligations and liabilities of the account as they become due.] state

74-24 insurance fund is sufficient to ensure the solvency of the state industrial

74-25 insurance system. Upon receipt of such a notice, the state treasurer shall

74-26 discontinue depositing the taxes in the [account] state insurance fund and

74-27 shall deposit the taxes collected from these insurers for credit to the state

74-28 general fund.

74-29 Sec. 118. NRS 680B.060 is hereby amended to read as follows:

74-30 680B.060 1. [Except as otherwise provided in subsection 6, the] The

74-31 taxes imposed under NRS 680B.027 must be collected by the department

74-32 of taxation and promptly deposited with the state treasurer for credit to the

74-33 state general fund.

74-34 2. If the tax is not paid by the insurer on or before the date required for

74-35 payment, the tax then becomes delinquent, and payment thereof may be

74-36 enforced by court action instituted on behalf of the state by the attorney

74-37 general. The attorney general may employ additional counsel in the city

74-38 where the home office of the insurer is located, subject to the approval of

74-39 compensation for such services by the state board of examiners. The

74-40 administrative and substantive enforcement provisions of chapters 360 and

74-41 372 of NRS apply to the enforcement of the taxes imposed under NRS

74-42 680B.027.

75-1 3. Upon the tax becoming delinquent, the executive director of the

75-2 department of taxation shall notify the commissioner, who shall suspend or

75-3 revoke the insurer’s certificate of authority pursuant to NRS 680A.190.

75-4 4. If a dispute arises between an insurer and the state as to the amount

75-5 of tax, if any, payable, the insurer is entitled to pay under protest the tax in

75-6 the amount assessed by the department of taxation, without waiving or

75-7 otherwise affecting any right of the insurer to recover any amount

75-8 determined, through appropriate legal action taken by the insurer against

75-9 the department of taxation, to have been in excess of the amount of tax

75-10 lawfully payable.

75-11 5. [Except as otherwise provided in subsection 6, all] All taxes, fees,

75-12 licenses, fines and charges collected under this code, including the general

75-13 premium tax provided for under NRS 680B.027 and as increased in any

75-14 instances pursuant to NRS 680A.330, must be promptly deposited with the

75-15 state treasurer for credit to the state general fund.

75-16 [6. The taxes collected pursuant to NRS 680B.027 from insurers that

75-17 are writing industrial insurance in this state, including the state industrial

75-18 insurance system, which are attributable to industrial insurance must be

75-19 promptly deposited with the state treasurer for credit to the state insurance

75-20 fund until the commissioner notifies the state treasurer that the balance in

75-21 the state insurance fund is sufficient to ensure the solvency of the state

75-22 industrial insurance system. Upon receipt of such a notice, the state

75-23 treasurer shall discontinue depositing the taxes in the state insurance fund

75-24 and shall deposit the taxes collected from these insurers for credit to the

75-25 state general fund.]

75-26 Sec. 119. NRS 681B.020 is hereby amended to read as follows:

75-27 681B.020 1. In addition to assets impliedly excluded by the

75-28 provisions of NRS 681B.010, the following expressly [shall] may not be

75-29 allowed as assets in any determination of the financial condition of an

75-30 insurer:

75-31 [1.] (a) Goodwill, trade names and other like intangible assets.

75-32 [2.] (b) Advances to officers , [(] other than policy loans , [)] whether

75-33 secured or not, and advances to employees, agents and other persons on

75-34 personal security only.

75-35 [3.] (c) Stock of such insurer, owned by it, or any equity therein or loans

75-36 secured thereby, or any proportionate interest in such stock acquired or

75-37 held through the ownership by such insurer of an interest in another firm,

75-38 corporation or business unit.

75-39 [4.] (d) Furniture, fixtures, furnishings, safes, vehicles, libraries,

75-40 stationery, literature and supplies , [(] other than data processing,

75-41 recordkeeping and accounting systems authorized under subsection 13 of

75-42 NRS 681B.010 [), except:

75-43 (a)] , except:

76-1 (1) In the case of title insurers such materials and plants as the insurer

76-2 is expressly authorized to invest in under NRS 682A.220; and

76-3 [(b)] (2) In the case of any insurer, such personal property as the insurer

76-4 is permitted to hold pursuant to chapter 682A of NRS , [(investments),] or

76-5 which is reasonably necessary for the maintenance and operation of real

76-6 property lawfully acquired and held by the insurer other than real property

76-7 used by it for home office, branch office and similar purposes.

76-8 [5.] (e) The amount, if any, by which the aggregate book value of

76-9 investments as carried in the ledger assets of the insurer exceeds the

76-10 aggregate value thereof as determined under this code.

76-11 2. If any successor organization to the state industrial insurance

76-12 system that was established by section 79 of chapter 642, Statutes of

76-13 Nevada 1981, at page 1449, wishes to transact in this state property or

76-14 casualty insurance other than industrial insurance, the money required

76-15 to be held in trust by that organization pursuant to section 17 of this act

76-16 may not be allowed as assets of the successor organization in

76-17 determining its financial condition to transact such insurance.

76-18 Sec. 120. NRS 682A.020 is hereby amended to read as follows:

76-19 682A.020 1. Insurers [shall] may invest in or lend their funds on the

76-20 security of, and [shall] may hold as invested assets, only eligible

76-21 investments as prescribed in this chapter.

76-22 2. Any particular investment held by an insurer on January 1, 1972,

76-23 which was a legal investment at the time it was made, and which the insurer

76-24 was legally entitled to possess immediately [prior to] before January 1,

76-25 1972, shall be deemed to be an eligible investment.

76-26 3. Any particular investment held by a successor organization to the

76-27 state industrial insurance system that was established by section 79 of

76-28 chapter 642, Statutes of Nevada 1981, at page 1449, which was a legal

76-29 investment of the system made before January 1, 2000, and which the

76-30 successor organization is legally entitled to possess on or after January 1,

76-31 2000, shall be deemed to be an eligible investment of the successor

76-32 organization.

76-33 4. Eligibility of an investment [shall] must be determined as of the date

76-34 of its making or acquisition, except as stated in [subsection 2.

76-35 4.] subsections 2 and 3.

76-36 5. Any investment limitation based upon the amount of the insurer’s

76-37 assets or particular funds [shall] must relate to such assets or funds as

76-38 shown by the insurer’s annual statement as of December 31 next preceding

76-39 the date of acquisition of the investment by the insurer, or as shown by a

76-40 current financial statement resulting from merger of another insurer, bulk

76-41 reinsurance or change in capitalization.

76-42 [5.] 6. No insurer [shall] may pay any commission or brokerage for the

76-43 purchase or sale of property in excess of that usual and customary at the

77-1 time and in the locality where such purchases or sales are made, and

77-2 complete information regarding all payments of commission and brokerage

77-3 [shall] must be reported in the next annual statement.

77-4 Sec. 121. NRS 682B.055 is hereby amended to read as follows:

77-5 682B.055 The commissioner [may] :

77-6 1. May allow an insurer to use securities as a deposit or as a part of a

77-7 deposit without delivering the securities to the commissioner under the

77-8 conditions specified in regulations adopted pursuant to subsection 1 of

77-9 NRS 680A.140.

77-10 2. Shall allow any successor organization to the state industrial

77-11 insurance system that was established by section 79 of chapter 642,

77-12 Statutes of Nevada 1981, at page 1449, to use the money held in trust by

77-13 the organization pursuant to section 17 of this act as a deposit or as a

77-14 part of a deposit for authority to transact industrial insurance without

77-15 delivering that money to the commissioner.

77-16 Sec. 122. NRS 683A.100 is hereby amended to read as follows:

77-17 683A.100 In addition to persons excluded by the terms thereof, the

77-18 definitions of an agent, broker, solicitor or managing general agent shall not

77-19 be deemed to include any of the following:

77-20 1. Salaried employees rendering solely clerical and administrative

77-21 services in the office of the employer.

77-22 2. Salaried administrative and clerical employees of agents and brokers

77-23 performing any functions in the office and under the supervision of the

77-24 employer and receiving no commissions.

77-25 3. Salaried employees of insurers, [or of] organizations employed by

77-26 insurers [,] or the state industrial insurance system engaged in inspecting,

77-27 rating or classifying risks, or in general supervision of agents, and not in the

77-28 solicitation or writing of insurance.

77-29 4. Officers of insurers or of an association of insurers engaged in the

77-30 performance of their usual and customary executive duties, exclusive of

77-31 field solicitation of insurance other than rendering assistance to or on

77-32 behalf of a licensed agent but receiving no commission or other

77-33 compensation directly dependent upon the amount of business transacted.

77-34 5. Persons completing or delivering declarations or certificates of

77-35 coverage under running inland marine insurance contracts evidencing

77-36 coverage thereunder, if:

77-37 (a) Such persons receive no commissions directly or indirectly on such

77-38 insurance; and

77-39 (b) Such persons or their employers have an insurable interest in the risk

77-40 evidenced by the certificate or declaration.

77-41 6. Persons who secure and furnish information for the purposes of

77-42 group life insurance, group or blanket health insurance or annuity

77-43 coverages, or for enrolling individuals under such plans or issuing

78-1 certificates thereunder or otherwise assisting in administering such plans

78-2 where no commission is paid for such services.

78-3 7. Service representatives.

78-4 Sec. 123. NRS 686B.1759 is hereby amended to read as follows:

78-5 686B.1759 "Insurer" means [the state industrial insurance system and

78-6 all private carriers] any private carrier authorized to provide industrial

78-7 insurance in this state.

78-8 Sec. 124. NRS 687A.020 is hereby amended to read as follows:

78-9 687A.020 Except as otherwise provided in subsection 5 of NRS

78-10 695E.200, this chapter applies to all direct insurance, except:

78-11 1. Life, annuity, health or disability insurance;

78-12 2. Mortgage guaranty, financial guaranty or other forms of insurance

78-13 offering protection against investment risks;

78-14 3. Fidelity or surety bonds or any other bonding obligations;

78-15 4. Credit insurance as defined in NRS 690A.015;

78-16 5. Insurance of warranties or service contracts;

78-17 6. Title insurance;

78-18 7. Ocean marine insurance;

78-19 8. Any transaction or combination of transactions between a person,

78-20 including affiliates of the person, and an insurer, including affiliates of the

78-21 insurer, which involves the transfer of investment or credit risk

78-22 unaccompanied by the transfer of insurance risk; or

78-23 9. Any insurance provided by or guaranteed by a governmental entity .

78-24 [or industrial insurance provided by the state industrial insurance system.]

78-25 Sec. 125. NRS 695C.120 is hereby amended to read as follows:

78-26 695C.120 The powers of a health maintenance organization include,

78-27 but are not limited to , the following:

78-28 1. The purchase, lease, construction, renovation, operation or

78-29 maintenance of hospitals, medical facilities, or both, and their ancillary

78-30 equipment, and such property as may reasonably be required for its

78-31 principal office or for such other purposes as may be necessary in the

78-32 transaction of the business of the organization;

78-33 2. The making of loans to a medical group under contract with it in

78-34 furtherance of its program or the making of loans to a corporation under its

78-35 control for the purpose of acquiring or constructing medical facilities and

78-36 hospitals or in furtherance of a program providing health care services to

78-37 enrollees;

78-38 3. The furnishing of health care service through providers which are

78-39 under contract with or employed by the health maintenance organization;

78-40 4. The contracting with any person for the performance on its behalf of

78-41 certain functions such as marketing, enrollment and administration; and

78-42 5. The contracting with an insurance company licensed in this state or

78-43 authorized to do business in this state for the provision of such insurance,

79-1 indemnity, or reimbursement against the cost of health care services

79-2 provided by the health maintenance organization . [; and

79-3 6. The contracting with the manager of the state industrial insurance

79-4 system pursuant to NRS 616B.515 to provide comprehensive medical and

79-5 health care services to injured employees whose employers are insured by

79-6 the state industrial insurance system for injuries and diseases that are

79-7 compensable pursuant to chapters 616A to 617, inclusive, of NRS.]

79-8 Sec. 126. NRS 696B.360 is hereby amended to read as follows:

79-9 696B.360 1. [The moneys] Except as otherwise provided in this

79-10 section:

79-11 (a) The money collected by the commissioner in a proceeding under this

79-12 chapter [shall] must be from time to time deposited in one or more state or

79-13 national banks, savings banks or trust companies, and in the case of the

79-14 insolvency or voluntary or involuntary liquidation of any such depositary

79-15 which is an institution organized and supervised under the laws of this

79-16 state, such deposits [shall be] are entitled to priority of payment on an

79-17 equality with any other priority given by the banking laws of this state.

79-18 [2.] (b) The commissioner may [in his discretion] deposit such [moneys]

79-19 money or any part thereof in a national bank or trust company as a trust

79-20 fund.

79-21 2. The commissioner shall deposit in the state insurance fund any

79-22 money collected in a proceeding under this chapter that is required to be

79-23 held in trust by a successor organization of the state industrial insurance

79-24 system by section 17 of this act. The money must be used by the

79-25 commissioner for the payment of claims made against the successor

79-26 organization under a policy of industrial insurance issued by that

79-27 organization, and any administration costs and expenses related thereto.

79-28 The payment of the claims must be made in accordance with the

79-29 provisions of this chapter.

79-30 Sec. 127. 1. NRS 616B.087 and 616B.088 are hereby repealed.

79-31 2. NRS 218.2725, 616A.275, 616A.325, 616B.014, 616B.050,

79-32 616B.056, 616B.059, 616B.062, 616B.065, 616B.068, 616B.071,

79-33 616B.074, 616B.077, 616B.083, 616B.089, 616B.092, 616B.095,

79-34 616B.104, 616B.107, 616B.167, 616B.170, 616B.173, 616B.176,

79-35 616B.179, 616B.182, 616B.188, 616B.191, 616B.197, 616B.209,

79-36 616B.211, 616B.212, 616B.218, 616B.239, 616B.242, 616B.245,

79-37 616B.248, 616B.251, 616B.254, 616B.257, 616B.260, 616B.263,

79-38 616B.266, 616B.269, 616B.389, 616B.515, 616B.518, 616B.521,

79-39 616B.524, 616B.530, 616B.533, 616B.536, 616B.540, 616C.565, 617.167

79-40 and 679B.223 are hereby repealed.

79-41 Sec. 128. 1. On or before August 1, 1999, the manager of the state

79-42 industrial insurance system may take such actions as are necessary to

79-43 establish a domestic mutual insurance company in this state to:

80-1 (a) Insure employers against liability for injuries and occupational

80-2 diseases for which their employees may be entitled to receive compensation

80-3 pursuant to chapters 616A to 617, inclusive, of NRS and the federal

80-4 Longshore and Harbor Workers’ Compensation Act, 33 U.S.C. §§ 901 et

80-5 seq.;

80-6 (b) Provide employer’s liability insurance incidental to and provided in

80-7 connection with the insurance specified in paragraph (a); and

80-8 (c) Transact such other kinds of property and casualty insurance for

80-9 which the company is otherwise qualified under the provisions of Title 57

80-10 of NRS.

80-11 2. If the manager establishes a domestic mutual insurance company

80-12 pursuant to subsection 1:

80-13 (a) On or before September 1, 1999, that company shall file with the

80-14 commissioner of insurance all documents and information required,

80-15 pursuant to chapters 680A and 692B of NRS, to obtain:

80-16 (1) A certificate of authority to transact industrial insurance in this

80-17 state; and

80-18 (2) An order authorizing the company to issue nonassessable policies

80-19 of insurance pursuant to NRS 693A.250.

80-20 (b) The governor shall appoint an advisory committee to adopt the

80-21 initial bylaws of the company. The advisory committee must be composed

80-22 of representatives of employers who are insured by the state industrial

80-23 insurance system on the effective date of this section. To the extent

80-24 practicable:

80-25 (1) The members of the advisory committee must include

80-26 representatives of employers designated by the manager as small, medium

80-27 and large employers.

80-28 (2) The members of the advisory committee must include

80-29 representatives of employers whose places of employment are located in

80-30 the various regions of the state.

80-31 (3) The members of the advisory committee must include

80-32 representatives of employers with different occupations, industries or

80-33 operations.

80-34 (4) No two members of the advisory committee may represent the

80-35 same employer.

80-36 A majority vote of the members of the advisory committee is required to

80-37 adopt the initial bylaws of the company. Upon the adoption of the initial

80-38 bylaws, the advisory committee shall cause a copy of those bylaws to be

80-39 delivered to the chief executive officer of the company. The provisions of

80-40 this paragraph do not prohibit the amendment of the initial bylaws of the

80-41 company in accordance with the provisions of chapter 693A of NRS and

80-42 the applicable provisions of the general statutes of this state relating to

80-43 private corporations.

81-1 3. On or before December 31, 1999, the commissioner of insurance

81-2 shall review all the documents and information submitted pursuant to

81-3 paragraph (a) of subsection 2 to determine whether the domestic mutual

81-4 insurance company established pursuant to subsection 1 qualifies for:

81-5 (a) A certificate of authority to transact industrial insurance in this state;

81-6 and

81-7 (b) The authority to issue nonassessable policies of insurance pursuant

81-8 to NRS 693A.250.

81-9 In making these determinations, the commissioner shall consider the receipt

81-10 of assets and the assumption of debts and liabilities described in subsection

81-11 2 of section 129 of this act to have occurred.

81-12 Sec. 129. 1. On or before December 31, 1999, if the governor

81-13 determines that:

81-14 (a) The state industrial insurance system has purchased a sufficient

81-15 amount of reinsurance to enable it to operate in a financially responsible

81-16 manner;

81-17 (b) The manager of the state industrial insurance system has established

81-18 a domestic mutual insurance company pursuant to section 128 of this act;

81-19 (c) The state industrial insurance system has received a private letter

81-20 ruling from the Internal Revenue Service which states substantially that the

81-21 Internal Revenue Service will not consider the domestic mutual insurance

81-22 company established by the manager pursuant to section 128 of this act to

81-23 have recognized any gain or income if it receives the assets and assumes

81-24 the debts and liabilities of the state industrial insurance system pursuant to

81-25 subsection 2; and

81-26 (d) The commissioner of insurance has determined that the domestic

81-27 mutual insurance company established by the manager pursuant to section

81-28 128 of this act qualifies:

81-29 (1) For a certificate of authority to transact industrial insurance in this

81-30 state; and

81-31 (2) For the authority to issue nonassessable policies of insurance

81-32 pursuant to NRS 693A.250,

81-33 the governor shall issue a proclamation stating that the events described in

81-34 paragraphs (a) to (d), inclusive, have occurred.

81-35 2. If the governor issues a proclamation pursuant to subsection 1, on

81-36 January 1, 2000:

81-37 (a) The manager of the state industrial insurance system may transfer to

81-38 the chief executive officer of the domestic mutual insurance company

81-39 established pursuant to section 128 of this act the premiums and other

81-40 money paid to the state industrial insurance system, including contributions

81-41 and penalties, all property and securities acquired through the use of money

81-42 in the state insurance fund, all interests and dividends earned upon money

81-43 from the state insurance fund that were deposited or invested, and all other

82-1 properties received, collected or acquired by the state industrial insurance

82-2 system before January 1, 2000;

82-3 (b) If the manager transfers the assets of the system pursuant to

82-4 paragraph (a):

82-5 (1) The domestic mutual insurance company to whom the assets are

82-6 so transferred shall assume all debts and liabilities, known and unknown, of

82-7 the state industrial insurance system and the state insurance fund and shall

82-8 issue an endorsement to each outstanding policy evidencing the equity

82-9 ownership interest of the policyholders in the domestic mutual insurance

82-10 company pursuant to chapter 693A of NRS;

82-11 (2) The division of state lands of the state department of conservation

82-12 and natural resources shall transfer the title to all real property held by the

82-13 division in the name of the State of Nevada pursuant to NRS 616B.176 to

82-14 the domestic mutual insurance company;

82-15 (3) The division of state library and archives of the department of

82-16 museums, library and arts shall release all records of the state industrial

82-17 insurance system held by the division to the domestic mutual insurance

82-18 company; and

82-19 (4) The commissioner of insurance shall issue:

82-20 (I) A certificate of authority to the domestic mutual insurance

82-21 company for the purpose of transacting industrial insurance in this state;

82-22 and

82-23 (II) An order authorizing the domestic mutual insurance company

82-24 to issue nonassessable policies of insurance pursuant to NRS 693A.250;

82-25 (c) If the manager does not transfer the assets of the system pursuant to

82-26 paragraph (a), he shall take such actions as are necessary to dissolve the

82-27 domestic mutual insurance company established pursuant to section 128 of

82-28 this act; and

82-29 (d) The manager shall notify the director of the legislative counsel

82-30 bureau of his actions taken pursuant to this section.

82-31 Sec. 130. 1. A classified employee of the state industrial insurance

82-32 system who:

82-33 (a) Is employed by the system on June 30, 1999; and

82-34 (b) Is laid off by the state industrial insurance system before January 1,

82-35 2000,

82-36 is entitled to the rights to reemployment provided by chapter 284 of NRS

82-37 and the regulations adopted pursuant thereto, including, without limitation,

82-38 the right to be placed on an appropriate reemployment list maintained by

82-39 the department of personnel and to be allowed a preference on that list. The

82-40 department of personnel shall maintain such an employee on the

82-41 reemployment list for at least 24 months after the effective date of the

82-42 layoff or until he is reemployed by the executive branch of state

82-43 government, whichever occurs earlier.

83-1 2. If the state industrial insurance system lays off an employee

83-2 described in subsection 1 before January 1, 2000, it shall:

83-3 (a) Give the employee at least 60 days’ written notice before the

83-4 effective date of the layoff; and

83-5 (b) Provide the department of personnel with such information as is

83-6 necessary for the department to ensure the employee receives his rights to

83-7 reemployment.

83-8 3. As used in this section, "rights to reemployment" does not include

83-9 the right to displace another person employed by the executive branch of

83-10 state government in lieu of being laid off.

83-11 Sec. 131. 1. If a domestic mutual insurance company receives the

83-12 assets and assumes the debts and liabilities of the state industrial system on

83-13 January 1, 2000, pursuant to section 129 of this act, a person who:

83-14 (a) Is employed on January 1, 2000, by that company;

83-15 (b) Was employed as a classified employee by the state industrial

83-16 insurance system on June 30, 1999; and

83-17 (c) Is laid off by the company on or after January 1, 2000, but before

83-18 January 1, 2003,

83-19 is entitled to the rights to reemployment provided by chapter 284 of NRS

83-20 and the regulations adopted pursuant thereto, including, without limitation,

83-21 the right to be placed on an appropriate reemployment list maintained by

83-22 the department of personnel and to be allowed a preference on that list. The

83-23 department of personnel shall maintain such an employee on the

83-24 reemployment list for at least 24 months after the effective date of the

83-25 layoff or until he is reemployed by the executive branch of state

83-26 government, whichever occurs earlier.

83-27 2. If the domestic mutual insurance company lays off an employee

83-28 described in subsection 1 on or before December 31, 2002, it shall:

83-29 (a) Give the employee at least 60 days’ written notice before the

83-30 effective date of the layoff; and

83-31 (b) Provide the department of personnel with such information as is

83-32 necessary for the department to ensure the employee receives his rights to

83-33 reemployment.

83-34 3. As used in this section, "rights to reemployment" does not include

83-35 the right to displace another person employed by the executive branch of

83-36 state government in lieu of being laid off.

83-37 Sec. 132. 1. A person who is employed by the state industrial

83-38 insurance system on July 1, 1999, may request the department of personnel

83-39 to place his name on an appropriate reemployment list maintained by the

83-40 department and is entitled to be allowed a preference on that list. Upon

83-41 receipt of such a request, the department shall maintain such an employee

83-42 on the reemployment list until July 1, 2001, or until he is reemployed by the

83-43 executive branch of state government, whichever occurs earlier.

84-1 2. If a domestic mutual insurance company receives the assets and

84-2 assumes the debts and liabilities of the state industrial system on January 1,

84-3 2000, pursuant to section 129 of this act, a person who is employed on

84-4 January 1, 2000, by that company may request the department of personnel

84-5 to place his name on an appropriate reemployment list maintained by the

84-6 department and is entitled to be allowed a preference on that list. Upon

84-7 receipt of such a request, the department shall maintain such an employee

84-8 on the reemployment list until January 1, 2002, or until he is reemployed by

84-9 the executive branch of state government, whichever occurs earlier.

84-10 Sec. 133. If a domestic mutual insurance company receives the assets

84-11 and assumes the debts and liabilities of the state industrial insurance system

84-12 on January 1, 2000, pursuant to section 129 of this act and, after January 1,

84-13 2000, that company is required to reduce the number of its employees, the

84-14 chief executive officer of the company shall enter into an agreement with

84-15 the department of employment, training and rehabilitation for the provision

84-16 of services and training to an employee of the company who is laid off

84-17 before January 1, 2002, and requires additional training to obtain other

84-18 gainful employment. The company shall pay the fees required for those

84-19 services and training in an amount established by the department, which

84-20 must not exceed $2,000,000.

84-21 Sec. 134. If a domestic mutual insurance company receives the assets

84-22 and assumes the debts and liabilities of the state industrial insurance system

84-23 on January 1, 2000, pursuant to section 129 of this act and, after January 1,

84-24 2000, that company is required to reduce the number of its employees, the

84-25 company shall pay the full actuarial cost to purchase credit for not more

84-26 than 5 years of service pursuant to NRS 286.300 for an employee who:

84-27 1. Is eligible to purchase credit;

84-28 2. Will be made eligible to receive an unreduced service retirement

84-29 allowance pursuant to chapter 286 of NRS by the purchase of the credit;

84-30 and

84-31 3. Agrees to retire upon completion of the purchase or on or before

84-32 July 1, 2001, whichever occurs earlier.

84-33 Sec. 135. Any retrospective rating agreement or contract of the state

84-34 industrial insurance system that exists on June 30, 1999, shall be deemed to

84-35 be approved by the commissioner of insurance until December 31, 2000, or

84-36 until the agreement or contract expires or is renewed, reissued or amended,

84-37 whichever occurs earlier.

84-38 Sec. 136. A certificate of insurance issued by the manager of the state

84-39 industrial insurance system pursuant to NRS 616B.670 to 616B.697,

84-40 inclusive, on or before December 31, 1999, which has not expired or been

84-41 revoked before that date, shall be deemed to be a certificate of registration

84-42 issued by the administrator of the division of industrial relations of the

85-1 department of business and industry pursuant to NRS 616B.670 to

85-2 616B.697, inclusive, as amended by this act.

85-3 Sec. 137. Any writ of attachment issued pursuant to the provisions of

85-4 NRS 616B.239 or any lien created pursuant to the provisions of NRS

85-5 616B.251 or 616B.266 before January 1, 2000, may be executed,

85-6 foreclosed, released, compromised or satisfied on or after that date by any

85-7 successor organization to the state industrial insurance system.

85-8 Sec. 138. 1. If a domestic mutual insurance company receives the

85-9 assets and assumes the debts and liabilities of the state industrial insurance

85-10 system on January 1, 2000, pursuant to section 129 of this act, any person

85-11 employed by the state industrial insurance system on December 31, 1999,

85-12 shall be deemed to be employed by that company on January 1, 2000. The

85-13 provisions of this section do not prohibit the company from terminating the

85-14 employment of such a person after that date.

85-15 2. A person employed by that domestic mutual insurance company on

85-16 January 1, 2000, shall be deemed to be an employee of the state whose

85-17 employment has been terminated for the purposes of chapter 286 of NRS

85-18 and NRS 287.041 to 287.049, inclusive, and is entitled to all of the benefits

85-19 and privileges granted to such an employee pursuant to those provisions

85-20 and federal law.

85-21 Sec. 139. 1. Except as otherwise provided in this section, a

85-22 regulation adopted by the state industrial insurance system before January

85-23 1, 2000, is hereby repealed.

85-24 2. A regulation adopted by the state industrial insurance system before

85-25 January 1, 2000, pursuant to NRS 616B.185 or 616B.694 remains in effect

85-26 as a regulation of the administrator of the division of industrial relations of

85-27 the department of business and industry until amended or repealed by the

85-28 administrator.

85-29 Sec. 140. 1. This section, section 27, subsection 1 of section 127,

85-30 and sections 128 and 129 of this act become effective upon passage and

85-31 approval.

85-32 2. Sections 2, 3, 20, 24, 25, 26, 29, 96, 116, 122, subsection 1 of

85-33 section 132 and section 135 of this act become effective on July 1, 1999.

85-34 3. Sections 35, 89 and 117 of this act become effective at 12:01 a.m.

85-35 on July 1, 1999.

85-36 4. Sections 1, 4 to 19, inclusive, 21, 22, 23, 28, 30 to 34, inclusive, 36

85-37 to 88, inclusive, 90 to 95, inclusive, 97 to 115, inclusive, 118 to 121,

85-38 inclusive, 123 to 126, inclusive, subsection 2 of 127, 130, 131, subsection 2

85-39 of section 132, 133, 134, 136 to 139, inclusive, and 141 of this act become

85-40 effective on January 1, 2000, only if, on that date, the manager of the state

85-41 industrial insurance system transfers the assets of the state industrial

85-42 insurance system to a domestic mutual insurance company pursuant to

85-43 section 129 of this act.

86-1 5. Sections 20, 96, 116 and 122 of this act expire by limitation on

86-2 January 1, 2000, if the manager of the state industrial insurance system

86-3 transfers the assets of the state industrial insurance system to a domestic

86-4 mutual insurance company pursuant to section 129 of this act.

86-5 6. Section 8 of this act expires by limitation on June 30, 2003.

86-6 7. Section 100 of this act expires by limitation on May 1, 2013.

86-7 Sec. 141. The legislative counsel shall:

86-8 1. In preparing the reprint and supplements to the Nevada Revised

86-9 Statutes, appropriately correct any obsolete or incorrect reference to the

86-10 state industrial insurance system or the manager of the system.

86-11 2. In preparing supplements to the Nevada Administrative Code,

86-12 appropriately correct any obsolete or incorrect reference to the state

86-13 industrial insurance system or the manager of the system.

 

86-14 LEADLINES OF REPEALED SECTIONS

 

86-15 218.2725 Fiscal note required for bills and joint resolutions

86-16 affecting state insurance fund or premiums for industrial insurance.

86-17 616A.275 "Manager" defined.

86-18 616A.325 "System" defined.

86-19 616B.014 Confidentiality of certain records of the system;

86-20 exceptions.

86-21 616B.050 Creation; purpose; use of multiple entities to carry out

86-22 business of system; status as public agency; executive and legislative

86-23 review; use of state services; classification of employees.

86-24 616B.056 Duties of manager.

86-25 616B.059 Liability of manager.

86-26 616B.062 Manager: Appointment; function; qualifications; bond.

86-27 616B.065 Assistant managers: Selection; classification; salaries;

86-28 qualifications.

86-29 616B.068 Manager: Classification and salary.

86-30 616B.071 Manager and assistant managers: Other employment;

86-31 conflicts of interest prohibited.

86-32 616B.074 Manager, assistant managers and staff: Administration

86-33 of system.

86-34 616B.077 Facsimile signature of manager.

86-35 616B.083 Money and assets held in trust by system; accounting

86-36 practices; allocation to account for administration of extended claims.

86-37 616B.087 Account for administration of extended claims.

86-38 616B.088 Account for administration of current claims

86-39 .

87-1 616B.089 Liability of State of Nevada for payment of

87-2 compensation, salaries or expenses in administration of statutes

87-3 relating to workers’ compensation; responsibility for preservation of

87-4 state insurance fund.

87-5 616B.092 Reinsurance for protection of state insurance fund.

87-6 616B.095 Effect of declarations of invalidity; accounting.

87-7 616B.104 Investment of money in funds of system.

87-8 616B.107 Qualifications and employment of investment counsel;

87-9 duties of state board of finance.

87-10 616B.167 General powers of manager.

87-11 616B.170 General powers of system.

87-12 616B.173 Buildings: Acquisition and sale; rentals of space.

87-13 616B.176 Acquisition of real property in name of State of Nevada;

87-14 system’s power to sell or exchange property.

87-15 616B.179 Power of system to insure and reinsure.

87-16 616B.182 System to provide separate program of medical coverage

87-17 for members of athletic teams of University and Community College

87-18 System of Nevada.

87-19 616B.188 Cooperative agreements to provide services to claimants

87-20 and other patients.

87-21 616B.191 Manager may contract with private persons for

87-22 provision of services necessary or appropriate to carry out functions

87-23 and duties of system; procedures for award of contract.

87-24 616B.197 Duty of system to comply with statutes regarding

87-25 insurance and orders issued by commissioner; limitations; payment of

87-26 costs of examination by commissioner.

87-27 616B.209 Employers of excluded persons to be placed in separate

87-28 class.

87-29 616B.211 Establishment of plan for insuring small employers;

87-30 determination by manager of premiums of employers in plan.

87-31 616B.212 Establishment of plan for insuring high-risk employers;

87-32 determination by manager of premiums of employers in plan.

87-33 616B.218 Payment of premiums or deposit upon entering or

87-34 resuming business.

87-35 616B.239 Power of manager or authorized representative to bring

87-36 action to collect amount of delinquent premiums; issuance of writ of

87-37 attachment; determination of delinquency and amount of premium

87-38 due.

87-39 616B.242 Payment of lien for premiums upon distribution of

87-40 employer’s assets; priority of premiums due upon employer’s

87-41 adjudication in bankruptcy.

87-42 616B.245 Adjustment or refund for amount of premiums, penalties

87-43 or interest erroneously collected.

88-1 616B.248 Power of manager to assess accrued premiums, penalties

88-2 and interest before prescribed date for paying premiums; stay of

88-3 assessment by employer upon filing of bond or other security.

88-4 616B.251 Unpaid premiums, penalties and interest constitute lien

88-5 upon assets of employer; filing of notice of claim of lien by manager;

88-6 foreclosure of lien in district court; release of lien by manager; filing of

88-7 notice of release or satisfaction of lien.

88-8 616B.254 Authorization to give notice of payment owed by

88-9 employer to person in possession or having control of money, credits

88-10 or other personal property of, or owing debts to, delinquent employer;

88-11 effect of notice; demand for remission or delivery of money, credits or

88-12 other personal property up to amount owed by delinquent employer.

88-13 616B.257 Filing of certificate specifying amounts owed to system

88-14 with clerk of court; request for entry of judgment against employer.

88-15 616B.260 Entry of judgment against employer required by county

88-16 clerk upon filing of certificate by manager.

88-17 616B.263 Execution of judgment upon request of manager; sales

88-18 under execution.

88-19 616B.266 Recording of abstract or copy of judgment against

88-20 delinquent employer; recorded judgment becomes lien upon real and

88-21 personal property owned by delinquent employer; force, effect and

88-22 priority of lien; extension of lien.

88-23 616B.269 Successors or assigns of business to withhold sufficient

88-24 portion of purchase price to cover amounts owing to system; personal

88-25 liability of purchaser of business or stock of goods when amount not

88-26 withheld; time within which obligation of successor may be enforced.

88-27 616B.389 Membership in association: Required period of

88-28 insurance coverage by system upon termination or cancellation of

88-29 membership; determination of premium; exception.

88-30 616B.515 Authority of manager to contract with organizations for

88-31 managed care; competitive bidding required; discriminatory practices

88-32 prohibited.

88-33 616B.518 Required provisions in plan for provision of services.

88-34 616B.521 Selection of organization for managed care in which

88-35 employer will participate.

88-36 616B.524 Participation of employees in plan for managed care

88-37 established by system; selection of treating physician or chiropractor

88-38 by injured employee.

88-39 616B.530 Common agreement to form organization for managed

88-40 care: Definitions.

88-41 616B.533 Common agreement to form organization for managed

88-42 care: Application for preliminary permit to discuss formation of

88-43 organization; effect of preliminary permit; renewal.

89-1 616B.536 Common agreement to form organization for managed

89-2 care: Application for permit to form organization; effect of permit;

89-3 renewal; modification of agreement; revocation of permit.

89-4 616B.540 Claim to remove charge from employer’s account for

89-5 compensation due for subsequent injury; appeal of decision.

89-6 616C.565 Duty of system to develop and maintain list of jobs

89-7 suitable for injured employees; reference to list required before plan

89-8 for program of vocational rehabilitation is developed.

89-9 617.167 Occupational diseases account.

89-10 679B.223 Review of balance of state insurance fund.

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