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

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

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

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

2-1 is confidential and may not be disclosed or be open to public inspection in

2-2 any manner which would reveal the person’s or employing unit’s identity.

2-3 2. Any claimant or his legal representative is entitled to information

2-4 from the records of the division, to the extent necessary for the proper

2-5 presentation of his claim in any proceeding pursuant to this chapter. A

2-6 claimant or an employing unit is not entitled to information from the

2-7 records of the division for any other purpose.

2-8 3. Subject to such restrictions as the administrator may by regulation

2-9 prescribe, the information obtained by the division may be made available

2-10 to:

2-11 (a) Any agency of this or any other state or any federal agency charged

2-12 with the administration or enforcement of laws relating to unemployment

2-13 compensation, public assistance, workers’ compensation or labor and

2-14 industrial relations, or the maintenance of a system of public employment

2-15 offices;

2-16 (b) Any state or local agency for the enforcement of child support;

2-17 (c) The Internal Revenue Service of the Department of the Treasury;

2-18 (d) The department of taxation; and

2-19 (e) The state contractors’ board in the performance of its duties to

2-20 enforce the provisions of chapter 624 of NRS.

2-21 Information obtained in connection with the administration of the

2-22 employment service may be made available to persons or agencies for

2-23 purposes appropriate to the operation of a public employment service or a

2-24 public assistance program.

2-25 4. Upon written request made by a public officer of a local

2-26 government, the administrator shall furnish from the records of the division

2-27 the name, address and place of employment of any person listed in the

2-28 records of employment of the division. The request must set forth the social

2-29 security number of the person about whom the request is made and contain

2-30 a statement signed by proper authority of the local government certifying

2-31 that the request is made to allow the proper authority to enforce a law to

2-32 recover a debt or obligation owed to the local government. The information

2-33 obtained by the local government is confidential and may not be used or

2-34 disclosed for any purpose other than the collection of a debt or obligation

2-35 owed to that local government. The administrator may charge a reasonable

2-36 fee for the cost of providing the requested information.

2-37 5. The administrator may publish or otherwise provide information on

2-38 the names of employers, their addresses, their type or class of business or

2-39 industry, and the approximate number of employees employed by each such

2-40 employer, if the information released will assist unemployed persons to

2-41 obtain employment or will be generally useful in developing and

2-42 diversifying the economic interests of this state. Upon request by a state

2-43 agency which is able to demonstrate that its intended use of the information

3-1 will benefit the residents of this state, the administrator may, in addition to

3-2 the information listed in this subsection, disclose the number of employees

3-3 employed by each employer and the total wages paid by each employer.

3-4 The administrator may charge a fee to cover the actual costs of any

3-5 administrative expenses relating to the disclosure of this information to a

3-6 state agency. The administrator may require the state agency to certify in

3-7 writing that the agency will take all actions necessary to maintain the

3-8 confidentiality of the information and prevent its unauthorized disclosure.

3-9 6. Upon request therefor the administrator shall furnish to any agency

3-10 of the United States charged with the administration of public works or

3-11 assistance through public employment, and may furnish to any state agency

3-12 similarly charged, the name, address, ordinary occupation [,] and

3-13 employment status of each recipient of benefits and the recipient’s rights to

3-14 further benefits pursuant to this chapter.

3-15 7. To further a current criminal investigation, the chief executive

3-16 officer of any law enforcement agency of this state may submit a written

3-17 request to the administrator that he furnish, from the records of the division,

3-18 the name, address and place of employment of any person listed in the

3-19 records of employment of the division. The request must set forth the social

3-20 security number of the person about whom the request is made and contain

3-21 a statement signed by the chief executive officer certifying that the request

3-22 is made to further a criminal investigation currently being conducted by the

3-23 agency. Upon receipt of such a request, the administrator shall furnish the

3-24 information requested. He may charge a fee to cover the actual costs of any

3-25 related administrative expenses.

3-26 8. In addition to the provisions of subsection 5, the administrator shall

3-27 provide lists containing the names and addresses of employers, the number

3-28 of employees employed by each employer and the total wages paid by each

3-29 employer to the department of taxation, upon request, for use in verifying

3-30 returns for the business tax. The administrator may charge a fee to cover

3-31 the actual costs of any related administrative expenses.

3-32 9. [The manager of the state industrial insurance system or a] A private

3-33 carrier that provides industrial insurance in this state shall submit to the

3-34 administrator a list containing the name of each person who received

3-35 benefits pursuant to chapters 616A to 616D, inclusive, or 617 of NRS

3-36 during the preceding month and request that he compare the information so

3-37 provided with the records of the division regarding persons claiming

3-38 benefits pursuant to chapter 612 of NRS for the same period. The

3-39 information submitted by the [manager or the] private carrier must be in a

3-40 form determined by the administrator and must contain the social security

3-41 number of each such person. Upon receipt of the request, the administrator

3-42 shall make such a comparison and, if it appears from the information

3-43 submitted that a person is simultaneously claiming benefits under chapter

4-1 612 of NRS and under chapters 616A to 616D, inclusive, or 617 of NRS,

4-2 the administrator shall notify the attorney general or any other appropriate

4-3 law enforcement agency. The administrator shall charge a fee to cover the

4-4 actual costs of any related administrative expenses.

4-5 10. The administrator may request the Comptroller of the Currency of

4-6 the United States to cause an examination of the correctness of any return

4-7 or report of any national banking association rendered pursuant to the

4-8 provisions of this chapter, and may in connection with the request transmit

4-9 any such report or return to the Comptroller of the Currency of the United

4-10 States as provided in Section 3305(c) of the Internal Revenue Code of

4-11 1954.

4-12 11. If any employee or member of the board of review , [or] the

4-13 administrator or any employee of the administrator, in violation of the

4-14 provisions of this section, discloses information obtained from any

4-15 employing unit or person in the administration of this chapter, or if any

4-16 person who has obtained a list of applicants for work, or of claimants or

4-17 recipients of benefits pursuant to this chapter uses or permits the use of the

4-18 list for any political purpose, he is guilty of a gross misdemeanor.

4-19 12. All letters, reports or communications of any kind, oral or written,

4-20 from the employer or employee to each other or to the division or any of its

4-21 agents, representatives or employees are privileged and must not be the

4-22 subject matter or basis for any lawsuit if the letter, report or communication

4-23 is written, sent, delivered or prepared pursuant to the requirements of this

4-24 chapter.

4-25 Sec. 2. Chapter 616A of NRS is hereby amended by adding thereto the

4-26 provisions set forth as sections 3 and 4 of this act.

4-27 Sec. 3. If there is a conflict between the provisions of chapters 616A

4-28 to 617, inclusive, of NRS and the provisions of Title 57 of NRS, the

4-29 provisions of chapters 616A to 617, inclusive, of NRS control.

4-30 Sec. 4. "State industrial insurance system" means that entity

4-31 established by section 79 of chapter 642, Statutes of Nevada 1981, at

4-32 page 1449.

4-33 Sec. 5. NRS 616A.015 is hereby amended to read as follows:

4-34 616A.015 1. All premiums, contributions, penalties, money,

4-43 NRS.] successor organization of the system.

5-1 2. All proceedings must be had and rights determined under the

5-2 provisions of [chapter 111, Statutes of Nevada 1913, and acts amendatory

5-3 thereof and supplemental thereto,] chapters 616A to 617, inclusive, of

5-4 NRS on any claims or actions pending or causes of action existing on [June

5-5 30, 1947.] December 31, 1999.

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

5-7 616A.025 As used in chapters 616A to 616D, inclusive, of NRS,

5-10 meanings ascribed to them in those sections.

5-11 Sec. 7. NRS 616A.045 is hereby amended to read as follows:

5-12 616A.045 "Advisory organization" means the organization designated

5-15 inclusive, and chapter 686B of NRS.

5-16 Sec. 8. NRS 616A.127 is hereby amended to read as follows:

5-17 616A.127 [1. Any:

5-40 teacher or pupil performs work without pay for the employer.]

5-41 Sec. 9. NRS 616A.270 is hereby amended to read as follows:

5-42 616A.270 "Insurer" includes:

5-43 1. [The state industrial insurance system;

6-1 2.] A self-insured employer;

6-2 [3.] 2. An association of self-insured public employers;

6-3 [4.] 3. An association of self-insured private employers; and

6-4 [5.] 4. A private carrier.

6-5 Sec. 10. NRS 616A.290 is hereby amended to read as follows:

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

6-10 or private employers . [or the system.]

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

6-12 616A.400 The administrator shall:

6-38 616A to 617, inclusive, of NRS.

6-39 Sec. 12. (Deleted by amendment.)

6-40 Sec. 12.5. NRS 616A.425 is hereby amended to read as follows:

6-41 616A.425 1. There is hereby established in the state treasury the fund

6-42 for workers’ compensation and safety as a special revenue fund. All money

7-1 received from assessments levied on insurers and employers by the

7-2 administrator pursuant to NRS 232.680 must be deposited in this fund.

7-3 2. All assessments, penalties, bonds, securities and all other properties

7-4 received, collected or acquired by the division for functions supported in

7-5 whole or in part from the fund must be delivered to the custody of the state

7-6 treasurer for deposit to the credit of the fund.

7-7 3. All money and securities in the fund must be used to defray all costs

7-8 and expenses of administering the program of workmen’s compensation,

7-9 including the payment of:

7-10 (a) All salaries and other expenses in administering the division of

7-11 industrial relations, including the costs of the office and staff of the

7-12 administrator.

7-13 (b) All salaries and other expenses of administering NRS 616A.435 to

7-14 616A.460, inclusive, the offices of the hearings division of the department

7-15 of administration and the programs of self-insurance and review of

7-16 premium rates by the commissioner . [of insurance.]

7-17 (c) The salary and other expenses of a full-time employee of the

7-18 legislative counsel bureau whose principal duties are limited to

7-19 conducting research and reviewing and evaluating data related to

7-20 industrial insurance.

7-21 (d) All salaries and other expenses of the fraud control unit for

7-22 industrial insurance established pursuant to NRS 228.420.

7-23 (e) Claims against uninsured employers arising from compliance with

7-24 NRS 616C.220 and 617.401.

7-25 (f) All salaries and expenses of the members of the legislative

7-26 committee on workers’ compensation and any other expenses incurred by

7-27 the committee in carrying out its duties pursuant to NRS 218.5375 to

7-28 218.5378, inclusive.

7-29 (g) That portion of the salaries and other expenses of the office for

7-30 consumer health assistance established pursuant to section 86.6 of this

7-31 act that is related to providing assistance to consumers and injured

7-32 employees concerning workers’ compensation.

7-33 4. The state treasurer may disburse money from the fund only upon

7-34 written order of the controller.

7-35 5. The state treasurer shall invest money of the fund in the same

7-36 manner and in the same securities in which he is authorized to invest state

7-37 general funds which are in his custody. Income realized from the

7-38 investment of the assets of the fund must be credited to the fund.

7-39 6. The commissioner shall assign an actuary to review the

7-40 establishment of assessment rates. The rates must be filed with the

7-41 commissioner 30 days before their effective date. Any insurer or employer

7-42 who wishes to appeal the rate so filed must do so pursuant to NRS

7-43 679B.310.

8-1 Sec. 13. NRS 616A.470 is hereby amended to read as follows:

8-2 616A.470 1. Except as otherwise provided in subsection 2, each self-

8-15 attorney for injured workers, the division or other employers.

8-16 Sec. 14. NRS 616A.475 is hereby amended to read as follows:

8-17 616A.475 1. [Every employer insured by the system shall furnish the

8-30 sufficient supply of blank forms furnished by the insurer.

8-31 Sec. 15. NRS 616A.485 is hereby amended to read as follows:

8-32 616A.485 [1. The books, records and payrolls of an employer

8-42 insured by a private carrier must be open to inspection by the administrator

9-1 or his auditor or agent [in the manner prescribed in subsection 1.] to

9-2 determine:

9-3 1. The accuracy of the payroll;

9-4 2. The number of persons employed; and

9-5 3. Any other information necessary for the administration of

9-6 chapters 616A to 617, inclusive, of NRS.

9-7 Sec. 16. Chapter 616B of NRS is hereby amended by adding thereto

9-8 the provisions set forth as sections 17 to 20.5, inclusive, of this act.

9-9 Sec. 17. 1. The chief executive officer of any successor

9-10 organization to the state industrial insurance system shall continue to

9-11 hold in trust any money paid to the system for the purpose of providing

9-12 compensation for industrial accidents and occupational diseases and

9-13 administrative expenses incidental thereto. The successor organization

9-14 shall use that money only for the purpose for which it was paid.

9-15 2. If any successor organization to the state industrial insurance

9-16 system ceases to provide industrial insurance in this state, all money held

9-17 in trust pursuant to subsection 1 must be delivered to the commissioner

9-18 on a date that ensures that all benefits will be paid to qualified claimants

9-19 under policies of industrial insurance previously issued by the state

9-20 industrial insurance system or the successor organization. The

9-21 commissioner shall deposit the money delivered to him pursuant to this

9-22 subsection in the state insurance fund.

9-23 Sec. 18. 1. There is hereby established in the state treasury the

9-24 state insurance fund. The commissioner shall administer the fund.

9-25 2. The money in the fund may be invested by the state treasurer in

9-26 accordance with the provisions of NRS 355.140, 355.150 and 355.160.

9-27 3. Any money delivered to the commissioner pursuant to section 17

9-28 of this act and NRS 696B.360 must be deposited in the fund and be held

9-29 in trust by the commissioner as custodian thereof for the purpose of

9-30 providing compensation for industrial accidents and occupational

9-31 diseases and for administrative expenses incidental thereto.

9-32 Sec. 19. 1. Any successor organization to the state industrial

9-33 insurance system may take as credit as an asset or as a deduction from

9-34 liability on account of reinsurance for reinsurance ceded to an assuming

9-35 alien insurer with security based on discounted reserves for losses that

9-36 were maintained by the system for accounting periods beginning before

9-37 July 1, 1995, at a rate not to exceed 6 percent.

9-38 2. As used in this section, "alien insurer" has the meaning ascribed

9-39 to it in NRS 679A.090.

9-40 Sec. 20. 1. Except as otherwise provided in this section, all officers

9-41 and employees of the system are exempt from the provisions of chapter

9-42 284 of NRS and are entitled to such terms and conditions of employment

9-43 as the manager prescribes.

10-1 2. A classified employee of the system who is employed by the system

10-2 on July 1, 1999, retains his rights to reemployment, including, without

10-3 limitation, the right to be placed on an appropriate reemployment list

10-4 maintained by the department of personnel and to be allowed a

10-5 preference on that list. The department of personnel shall maintain such

10-6 an employee on the reemployment list for at least 24 months after the

10-7 effective date of the layoff or until he is reemployed by the executive

10-8 branch of state government, whichever occurs earlier.

10-9 3. The manager shall comply with, and the officers and employees of

10-10 the system are entitled to the rights and privileges granted by, those

10-11 provisions of chapter 284 of NRS governing:

10-12 (a) Sick and disability leave as set forth on NRS 284.355;

10-13 (b) Annual leave as set forth in NRS 284.350;

10-14 (c) Catastrophic leave as set forth in NRS 284.362 to 284.3626,

10-15 inclusive;

10-16 (d) Leave of absence for military service as set forth in NRS 284.365;

10-17 (e) Leave of absence without pay as set forth in NRS 284.360; and

10-18 (f) The plan to encourage continuity of service as set forth in NRS

10-19 284.177.

10-20 4. If the manager lays off an employee described in subsection 2, the

10-21 manager shall:

10-22 (a) Give the employee at least 60 days’ written notice before the

10-23 effective date of the layoff; and

10-24 (b) Provide the department of personnel with such information as is

10-25 necessary for the department to ensure the employee receives his rights to

10-26 reemployment.

10-27 5. As used in this section, "rights to reemployment" means all rights

10-28 to be reemployed by the executive branch of state government established

10-29 by the provisions of chapter 284 of NRS and the regulations adopted

10-30 pursuant thereto. The term does not include the right to displace another

10-31 person employed by the executive branch of state government in lieu of

10-32 being laid off.

10-33 Sec. 20.5. Every state office, department, board, commission,

10-34 bureau, agency or institution, operating by authority of law, and each

10-35 county, city, school district and other political subdivision of this state

10-36 shall budget for industrial insurance in the same manner as for other

10-37 expenses and, if insured by a private carrier, shall pay premiums as

10-38 required by its contract.

10-39 Sec. 21. NRS 616B.027 is hereby amended to read as follows:

10-40 616B.027 1. Every insurer shall provide:

10-43 (1) A complete file of each claim is kept;

11-1 (2) Persons authorized to act for the insurer and, if necessary, licensed

11-2 pursuant to chapter 683A of NRS, may receive information related to a

11-3 claim and provide the services to an employer and his employees required

11-4 by chapters 616A to 617, inclusive, of NRS; and

11-5 (3) An employee or his employer, upon request, is provided with

11-6 information related to a claim filed by the employee or a copy of the

11-7 information from the file for that claim.

11-8 (b) Statewide, toll-free telephone service to that office or accept collect

11-9 calls from injured employees.

11-10 2. [The system and each] Each private carrier shall provide:

11-11 (a) Adequate services to its insured employers in controlling losses; and

11-12 (b) Adequate information on the prevention of industrial accidents and

11-13 occupational diseases.

11-14 Sec. 22. NRS 616B.030 is hereby amended to read as follows:

11-15 616B.030 1. Every policy of insurance issued by a private carrier :

11-25 be used by private carriers.

11-26 Sec. 23. NRS 616B.036 is hereby amended to read as follows:

11-27 616B.036 1. [The system and private carriers] A private carrier may

11-38 groups for industrial insurance.

11-39 Sec. 24. NRS 616B.050 is hereby amended to read as follows:

11-40 616B.050 1. The state industrial insurance system is hereby

11-43 their employees may be entitled to receive compensation pursuant to

12-1 chapters 616A to 616D, inclusive, of NRS or chapter 617 of NRS, and the

12-2 federal [Longshoremen’s] Longshore and Harbor Workers’ Compensation

12-3 Act [.] , 33 U.S.C. §§ 901 et seq. The system may create one or more

12-4 entities to carry out the business of the system, which may be operated

12-5 under any legal name in addition to the state industrial insurance system on

12-6 behalf of the system.

12-7 2. The system is a public agency which administers and is supported by

12-8 the state insurance fund. The executive and legislative departments of the

12-9 state government shall regularly review the system.

12-10 3. The system is entitled but not required to use any services provided

12-11 to state agencies. [Except as otherwise provided for specified positions, its

12-12 employees are in the classified service of the state.]

12-13 Sec. 25. NRS 616B.065 is hereby amended to read as follows:

12-14 616B.065 1. The manager shall select assistant managers who are [in

12-20 or an equivalent degree.

12-21 Sec. 26. NRS 616B.068 is hereby amended to read as follows:

12-22 616B.068 The manager is [in the unclassified service of the state but

12-23 is] entitled to receive an annual salary fixed by the governor.

12-24 Sec. 27. NRS 616B.083 is hereby amended to read as follows:

12-25 616B.083 1. The money and assets held in trust by the system

12-42 created pursuant to NRS 616B.087 $650,000,000 in invested assets.]

13-1 Sec. 28. NRS 616B.086 is hereby amended to read as follows:

13-2 616B.086 1. [Except as otherwise provided in subsection 3, all

13-25 pay attorney’s fees or the costs of an investigation, or both.

13-26 Sec. 29. NRS 616B.167 is hereby amended to read as follows:

13-27 616B.167 The manager:

13-39 the manager.

13-40 Sec. 29.5. NRS 616B.167 is hereby amended to read as follows:

13-41 616B.167 The manager:

13-42 1. Has full power, authority and jurisdiction over the system.

14-1 2. May perform all acts necessary or convenient in the exercise of any

14-2 power, authority or jurisdiction over the system, either in the administration

14-3 of the system or in connection with the business of insurance to be carried

14-4 on by the system under the provisions of chapters 616A to 616D, inclusive,

14-5 or chapter 617 of NRS, including the establishment of premium rates.

14-6 3. May appoint [in the unclassified service of the state no] not more

14-7 than five persons engaged in management who report directly to the

14-8 manager or an assistant manager. The manager shall designate these

14-9 positions and may not change them without the approval of the personnel

14-10 commission. These persons are entitled to receive annual salaries fixed by

14-11 the manager.

14-12 Sec. 30. NRS 616B.185 is hereby amended to read as follows:

14-13 616B.185 1. Any offender confined at the state prison, while engaged

14-30 out of and in the course of their work in a prison industry or work program.

14-31 Sec. 31. NRS 616B.194 is hereby amended to read as follows:

14-32 616B.194 Each insurer shall cooperate with the commissioner in the

14-38 an association of self-insured public or private employers.

14-39 Sec. 32. NRS 616B.224 is hereby amended to read as follows:

14-40 616B.224 1. Every private or public employer who is not a self-

14-43 his insurer, furnish the insurer with:

15-1 (a) A true and accurate payroll showing:

15-2 (1) The total amount paid to employees for services performed;

15-3 (2) The amount of tips reported to him by every employee pursuant to

15-4 26 U.S.C. § 6053(a) whose tips in cash totaled $20 or more; and

15-5 (3) A segregation of employment in accordance with the requirements

15-6 of the commissioner; and

15-7 (b) Any premium due pursuant to the terms of the policy of industrial

15-8 insurance.

15-9 The payroll reports and any premium may be furnished to the insurer on

15-10 different dates, as established by the insurer.

15-11 2. [Failure] The failure of any employer to comply with the provisions

15-12 of this section operates as a rejection of chapters 616A to 616D, inclusive,

15-13 and chapter 617 of NRS . [, effective on the date established by the insurer

15-14 pursuant to subsection 1.] The insurer shall notify the administrator of each

15-15 such rejection [.] within the period specified in NRS 616B.460.

15-16 3. The insurer shall notify any employer or his representative by first-

15-17 class mail of any failure on his part to comply with the provisions of this

15-18 section. The notice or its omission does not modify or waive the

15-19 requirements or effective rejection of chapters 616A to 616D, inclusive,

15-20 and chapter 617 of NRS as otherwise provided in those chapters.

15-21 4. [The system may impose a penalty not to exceed 10 percent of the

15-22 premiums which are due for the failure of an employer insured by the

15-23 system to submit the information and premium required in subsection 1

15-24 within the time allowed, unless the employer has applied for and been

15-25 granted an extension of that time by the manager.

15-26 5.] To the extent permitted by federal law, the insurer shall vigorously

15-27 pursue the collection of premiums that are due under the provisions of

15-28 chapters 616A to 616D, inclusive, and chapter 617 of NRS even if an

15-29 employer’s debts have been discharged in a bankruptcy proceeding.

15-30 [6. Every employer insured by the system shall pay its premiums to the

15-31 state insurance fund. All money received by the system pursuant to this

15-32 section must be deposited with the state treasurer to the credit of the state

15-33 insurance fund.]

15-34 Sec. 33. NRS 616B.227 is hereby amended to read as follows:

15-35 616B.227 1. An employer shall:

15-40 and retain another copy for his records or, if the employer is self-insured or

16-1 a member of an association of self-insured public or private employers,

16-2 retain the copy for his records; and

16-3 (c) If he is not self-insured or a member of an association of self-insured

16-4 public or private employers, pay the [system or] private carrier the

16-5 premiums for the reported tips at the same rate as he pays on regular wages.

16-6 2. The division shall adopt regulations specifying the form of the

16-7 declaration required pursuant to subsection 1.

16-8 3. The [system,] private carrier, self-insured employer or association

16-9 shall calculate compensation for an employee on the basis of wages paid by

16-10 the employer plus the amount of tips reported by the employee pursuant to

16-11 26 U.S.C. § 6053. Reports made after the date of injury may not be used

16-12 for the calculation of compensation.

16-13 4. An employer shall notify his employees of the requirement to report

16-14 income from tips to calculate his federal income tax and to include the

16-15 income in the computation of benefits pursuant to chapters 616A to 616D,

16-16 inclusive, and chapter 617 of NRS.

16-17 5. The administrator shall adopt such regulations as are necessary to

16-18 carry out the provisions of this section.

16-19 Secs. 34 and 35. (Deleted by amendment.)

16-20 Sec. 36. NRS 616B.386 is hereby amended to read as follows:

16-21 616B.386 1. If an employer wishes to become a member of an

16-22 association of self-insured public or private employers, the employer must:

16-23 (a) Submit an application for membership to the board of trustees or

16-24 third-party administrator of the association; and

16-25 (b) Enter into an indemnity agreement as required by NRS 616B.353.

16-26 2. The membership of the applicant becomes effective when each

16-27 member of the association approves the application or on a later date

16-28 specified by the association. The application for membership and the action

16-29 taken on the application must be maintained as permanent records of the

16-30 board of trustees.

16-31 3. Each member who is a member of an association during the 12

16-32 months immediately following the formation of the association must:

16-33 (a) Have a tangible net worth of at least $500,000; or

16-34 (b) Have had a reported payroll for the previous 12 months which would

16-35 have resulted in a manual premium of at least $15,000, calculated in

16-36 accordance with a manual prepared pursuant to subsection 4 of NRS

16-37 686B.1765.

16-38 4. An employer who seeks to become a member of the association after

16-39 the 12 months immediately following the formation of the association must

16-40 meet the requirement set forth in paragraph (a) or (b) of subsection 3 unless

16-41 the commissioner adjusts the requirement for membership in the

16-42 association after conducting an annual review of the actuarial solvency of

16-43 the association pursuant to subsection 1 of NRS 616B.353.

17-1 5. An association of self-insured private employers may apply to the

17-2 commissioner for authority to determine the amount of tangible net worth

17-3 and manual premium that an employer must have to become a member of

17-4 the association. The commissioner shall approve the application if the

17-5 association:

17-6 (a) Has been certified to act as an association for at least the 3

17-7 consecutive years immediately preceding the date on which the association

17-8 filed the application with the commissioner;

17-9 (b) Has a combined tangible net worth of all members in the association

17-10 of at least $5,000,000;

17-11 (c) Has at least 15 members; and

17-12 (d) Has not been required to meet informally with the commissioner

17-13 pursuant to subsection 1 of NRS 616B.431 during the 18-month period

17-14 immediately preceding the date on which the association filed the

17-15 application with the commissioner or, if the association has been required

17-16 to attend such a meeting during that period, has not had its certificate

17-17 withdrawn before the date on which the association filed the application.

17-18 6. An association of self-insured private employers may apply to the

17-19 commissioner for authority to determine the documentation demonstrating

17-20 solvency that an employer must provide to become a member of the

17-21 association. The commissioner shall approve the application if the

17-22 association:

17-23 (a) Has been certified to act as an association for at least the 3

17-24 consecutive years immediately preceding the date on which the association

17-25 filed the application with the commissioner;

17-26 (b) Has a combined tangible net worth of all members in the association

17-27 of at least $5,000,000; and

17-28 (c) Has at least 15 members.

17-29 7. The commissioner may withdraw his approval of an application

17-30 submitted pursuant to subsection 5 or 6 if he determines the association has

17-31 ceased to comply with any of the requirements set forth in subsection 5 or

17-32 6, as applicable.

17-33 8. A member of an association may terminate his membership at any

17-34 time. To terminate his membership, a member must submit to the

17-35 association’s administrator a notice of intent to withdraw from the

17-36 association at least 120 days before the effective date of withdrawal. The

17-37 association’s administrator shall, within 10 days after receipt of the notice,

17-38 notify the commissioner of the employer’s intent to withdraw from the

17-39 association.

17-40 9. The members of an association may cancel the membership of any

17-41 member of the association in accordance with the bylaws of the association.

17-42 10. The association shall:

18-1 (a) Within 30 days after the addition of an employer to the membership

18-2 of the association, notify the commissioner of the addition and:

18-3 (1) If the association has not received authority from the

18-4 commissioner pursuant to subsection 5 or 6, as applicable, provide to the

18-5 commissioner all information and assurances for the new member that were

18-6 required from each of the original members of the association upon its

18-7 organization; or

18-8 (2) If the association has received authority from the commissioner

18-9 pursuant to subsection 5 or 6, as applicable, provide to the commissioner

18-10 evidence that is satisfactory to the commissioner that the new member is a

18-11 member or associate member of the bona fide trade association as required

18-12 pursuant to paragraph (a) of subsection 2 of NRS 616B.350, a copy of the

18-13 indemnity agreement that jointly and severally binds the new member, the

18-14 other members of the association and the association that is required to be

18-15 executed pursuant to paragraph (a) of subsection 1 of NRS 616B.353 and

18-16 any other information the commissioner may reasonably require to

18-17 determine whether the amount of security deposited with the commissioner

18-18 pursuant to paragraph (d) or (e) of subsection 1 of NRS 616B.353 is

18-19 sufficient, but such information must not exceed the information required to

18-20 be provided to the commissioner pursuant to subparagraph (1);

18-21 (b) Notify the commissioner and the administrator of the termination or

18-22 cancellation of the membership of any member of the association within 10

18-23 days after the termination or cancellation; and

18-24 (c) At the expense of the member whose membership is terminated or

18-25 canceled, maintain coverage for that member for 30 days after notice is

18-26 given pursuant to paragraph (b), unless the association first receives notice

18-27 from the administrator that the member has:

18-28 (1) [Become insured by the system;

18-29 (2)] Been certified as a self-insured employer pursuant to NRS

18-30 616B.312;

18-31 [(3)] (2) Become a member of another association of self-insured

18-32 public or private employers; or

18-33 [(4)] (3) Become insured by a private carrier.

18-34 11. If a member of an association changes his name or form of

18-35 organization, the member remains liable for any obligations incurred or any

18-36 responsibilities imposed pursuant to chapters 616A to 617, inclusive, of

18-37 NRS under his former name or form of organization.

18-38 12. An association is liable for the payment of any compensation

18-39 required to be paid by a member of the association pursuant to chapters

18-40 616A to 616D, inclusive, or 617 of NRS during his period of membership.

18-41 The insolvency or bankruptcy of a member does not relieve the association

18-42 of liability for the payment of the compensation.

19-1 Sec. 37. NRS 616B.460 is hereby amended to read as follows:

19-2 616B.460 1. An employer may elect to purchase industrial insurance

19-14 notice of the change or lapse.

19-15 Sec. 38. NRS 616B.500 is hereby amended to read as follows:

19-16 616B.500 1. An insurer may enter into a contract to have his plan of

19-24 administrator.]

19-25 Sec. 39. NRS 616B.527 is hereby amended to read as follows:

19-26 616B.527 A self-insured employer, an association of self-insured

19-43 their industrial injuries from those organizations and persons with whom

20-1 the self-insured employer, association or private carrier has contracted

20-2 pursuant to subsections 1 and 2, or as the self-insured employer, association

20-3 or private carrier otherwise prescribes.

20-4 [5.] 4. Require employees to obtain the approval of the self-insured

20-5 employer, association or private carrier before obtaining medical and health

20-6 care services for their industrial injuries from a provider of health care who

20-7 has not been previously approved by the self-insured employer, association

20-8 or private carrier.

20-9 Sec. 40. NRS 616B.554 is hereby amended to read as follows:

20-10 616B.554 1. There is hereby established as a special revenue fund in

20-42 8. The administrator shall:

21-1 (a) Evaluate any claim submitted to the board for payment or

21-2 reimbursement from the subsequent injury fund for self-insured employers

21-3 and recommend to the board any appropriate action to be taken concerning

21-4 the claim; and

21-5 (b) Submit to the board any other recommendations relating to the fund.

21-6 Sec. 41. NRS 616B.575 is hereby amended to read as follows:

21-7 616B.575 1. There is hereby established as a special revenue fund in

21-42 8. The administrator shall:

22-1 (a) Evaluate any claim submitted to the board for payment or

22-2 reimbursement from the subsequent injury fund for associations of self-

22-3 insured public or private employers and recommend to the board any

22-4 appropriate action to be taken concerning the claim; and

22-5 (b) Submit to the board any other recommendations relating to the fund.

22-6 Sec. 42. NRS 616B.584 is hereby amended to read as follows:

22-7 616B.584 1. There is hereby established as a special revenue fund in

22-35 wishes to appeal the rate so filed must do so pursuant to NRS 679B.310.

22-36 Sec. 43. NRS 616B.659 is hereby amended to read as follows:

22-37 616B.659 1. A sole proprietor may elect to be included within the

22-43 a private carrier.

23-1 2. A sole proprietor who elects to accept the terms, conditions and

23-2 provisions of chapters 616A to 616D, inclusive, of NRS shall submit to a

23-3 physical examination before his coverage commences. The [system or the]

23-4 private carrier shall prescribe the scope of the examination and shall

23-5 consider it for rating purposes. The cost of the physical examination must

23-6 be paid by the sole proprietor.

23-7 3. A sole proprietor who elects to submit to the provisions of chapters

23-8 616A to 616D, inclusive, of NRS shall pay to the [system or the] private

23-9 carrier premiums in such manner and amounts as may be prescribed by the

23-10 regulations of the commissioner.

23-11 4. If a sole proprietor fails to pay all premiums required by the

23-12 regulations of the commissioner, the failure operates as a rejection of

23-13 chapters 616A to 616D, inclusive, of NRS.

23-14 5. A sole proprietor who elects to be included pursuant to the

23-15 provisions of chapters 616A to 616D, inclusive, of NRS remains subject to

23-16 all terms, conditions and provisions of those chapters and all regulations of

23-17 the commissioner until he files written notice with the administrator and the

23-18 [system or the] private carrier that he withdraws his election.

23-19 6. For the purposes of chapters 616A to 616D, inclusive, of NRS, a

23-20 sole proprietor shall be deemed to be receiving a wage of $300 per month

23-21 unless, at least 90 days before any injury for which he requests coverage, he

23-22 files written notice with the administrator and the [system or the] private

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

23-24 additional coverage. If the [system or the] private carrier receives the

23-25 additional premiums it requires for such additional coverage, the sole

23-26 proprietor shall be deemed to be receiving a wage of $1,800 per month.

23-27 Secs. 44-49. (Deleted by amendment.)

23-28 Sec. 49.5. Chapter 616C of NRS is hereby amended by adding thereto

23-29 a new section to read as follows:

23-30 1. An insurer may inquire about and request medical records of an

23-31 injured employee that concern a preexisting medical condition that is

23-32 reasonably related to the industrial injury of that injured employee.

23-33 2. An injured employee must sign all medical releases necessary for

23-34 the insurer of his employer to obtain information and records about a

23-35 preexisting medical condition that is reasonably related to the industrial

23-36 injury of the employee and that will assist the insurer to determine the

23-37 nature and amount of workers’ compensation to which the employee is

23-38 entitled.

23-39 Sec. 50. NRS 616C.015 is hereby amended to read as follows:

23-40 616C.015 1. An employee or, in the event of the employee’s death,

23-43 soon as practicable, but within 7 days after the accident.

24-1 2. The notice required by subsection 1 must:

24-2 (a) Be on a form prescribed by the administrator. The form must allow

24-3 the injured employee or his dependent to describe briefly the accident that

24-4 caused the injury or death.

24-5 (b) Be signed by the injured employee or by a person on his behalf, or in

24-6 the event of the employee’s death, by one of his dependents or by a person

24-7 acting on behalf of the dependent.

24-8 (c) Include an explanation of the procedure for filing a claim for

24-9 compensation.

24-10 (d) Be prepared in duplicate so that the injured employee or his

24-11 dependent and the employer can retain a copy of the notice.

24-12 3. Upon receipt of the notice required by subsection 1, the employer,

24-13 the injured employee’s supervisor or the agent of the employer who was in

24-14 charge of the type of work or the area where the accident occurred shall

24-15 sign the notice. The signature of the employer, the supervisor or the

24-16 employer’s agent is an acknowledgment of the receipt of the notice and

24-17 shall not be deemed to be a waiver of any of the employer’s defenses or

24-18 rights.

24-19 4. An employer shall maintain a sufficient supply of the forms required

24-20 to file the notice required by subsection 1 for use by his employees.

24-21 5. An employer shall retain any notice provided pursuant to subsection

24-22 1 for 3 years after the date of the accident. An employer insured by [the

24-23 system or] a private carrier shall not file a notice of injury with the [system

24-24 or the] private carrier.

24-25 Sec. 51. NRS 616C.055 is hereby amended to read as follows:

24-26 616C.055 1. The insurer may not, in accepting responsibility for any

24-33 removal.

24-34 Sec. 52. NRS 616C.090 is hereby amended to read as follows:

24-35 616C.090 1. The administrator shall establish a panel of physicians

24-42 are reasonably accessible to his employees.

25-1 2. An injured employee whose employer’s insurer has not entered into

25-2 a contract with an organization for managed care or with providers of

25-3 health care services pursuant to NRS 616B.527 may choose his treating

25-4 physician or chiropractor from the panel of physicians and chiropractors. If

25-5 the injured employee is not satisfied with the first physician or chiropractor

25-6 he so chooses, he may make an alternative choice of physician or

25-7 chiropractor from the panel if the choice is made within 90 days after his

25-8 injury. The insurer shall notify the first physician or chiropractor in writing.

25-9 The notice must be postmarked within 3 working days after the insurer

25-10 receives knowledge of the change. The first physician or chiropractor must

25-11 be reimbursed only for the services he rendered to the injured employee up

25-12 to and including the date of notification. Any further change is subject to

25-13 the approval of the insurer, which must be granted or denied within 10 days

25-14 after a written request for such a change is received from the injured

25-15 employee. If no action is taken on the request within 10 days, the request

25-16 shall be deemed granted. Any request for a change of physician or

25-17 chiropractor must include the name of the new physician or chiropractor

25-18 chosen by the injured employee.

25-19 3. An injured employee employed or residing in any county in this state

25-20 whose employer’s insurer has entered into a contract with an organization

25-21 for managed care or with providers of health care services pursuant to

25-22 NRS 616B.527 must choose his treating physician or chiropractor pursuant

25-23 to the terms of that contract. If the employee, after choosing his treating

25-24 physician or chiropractor, moves to a county which is not served by the

25-25 organization for managed care or providers of health care services named

25-26 in the contract and the insurer determines that it is impractical for the

25-27 employee to continue treatment with the physician or chiropractor, the

25-28 employee must choose a treating physician or chiropractor who has agreed

25-29 to the terms of that contract unless the insurer authorizes the employee to

25-30 choose another physician or chiropractor.

25-31 4. Except when emergency medical care is required and except as

25-32 otherwise provided in NRS 616C.055, the insurer is not responsible for any

25-33 charges for medical treatment or other accident benefits furnished or

25-34 ordered by any physician, chiropractor or other person selected by the

25-35 employee in disregard of the provisions of this section or for any

25-36 compensation for any aggravation of the employee’s injury attributable to

25-37 improper treatments by such physician, chiropractor or other person.

25-38 5. The administrator may order necessary changes in a panel of

25-39 physicians and chiropractors and shall suspend or remove any physician or

25-40 chiropractor from a panel for good cause shown.

25-41 6. An injured employee may receive treatment by more than one

25-42 physician or chiropractor if the insurer provides written authorization for

25-43 such treatment.

26-1 Sec. 52.5. NRS 616C.100 is hereby amended to read as follows:

26-2 616C.100 1. If an injured employee disagrees with the percentage of

26-16 may be offered at any hearing or settlement conference.

26-17 Sec. 53. NRS 616C.110 is hereby amended to read as follows:

26-18 616C.110 1. For the purposes of NRS [616B.540,] 616B.557,

26-28 which must be used to rate an impairment pursuant to NRS 616C.490.

26-29 Sec. 53.5. NRS 616C.175 is hereby amended to read as follows:

26-30 616C.175 1. [An employee is not entitled to compensation pursuant

26-43 the resulting condition.

27-1 2. [An employee is not entitled to compensation pursuant to the

27-2 provisions of chapters 616A to 616D, inclusive, of NRS if:

27-3 (a) He sustains] The resulting condition of an employee who:

27-4 (a) Sustains an injury by accident arising out of and in the course of his

27-5 employment; and

27-6 (b) [He subsequently] Subsequently aggravates, precipitates or

27-7 accelerates the injury in a manner that does not arise out of and in the

27-8 course of his employment,

27-9 shall be deemed to be an injury by accident that is compensable pursuant

27-10 to the provisions of chapters 616A to 616D, inclusive, of NRS, unless the

27-11 insurer can prove by a preponderance of the evidence that the injury

27-12 described in paragraph (a) is [the primary] not a substantial contributing

27-13 cause of the resulting condition.

27-14 Sec. 54. NRS 616C.190 is hereby amended to read as follows:

27-15 616C.190 1. Except as otherwise provided in subsection 4 of NRS

27-28 period.

27-29 Sec. 55. NRS 616C.200 is hereby amended to read as follows:

27-30 616C.200 1. If an employee who has been hired or is regularly

27-43 have been payable under the laws of this state, up to the full amount

28-1 thereof, but less any sums previously paid for the injury or death, must be

28-2 applied in satisfaction of the judgment as follows:

28-3 (a) Upon receipt of an authenticated copy of the final judgment and writ

28-4 of execution or other process issued in aid thereof, the insurer shall

28-5 immediately determine the total amount of compensation which would have

28-6 been payable under the laws of this state if a claim therefor had been made

28-7 to the insurer. In the case of compensation payable in installments, the

28-8 insurer shall convert it into a lump sum by such a system of computation as

28-9 the administrator deems proper.

28-10 (b) The insurer shall thereupon order to be paid in full or partial

28-11 satisfaction of the judgment a sum not to exceed the total amount of

28-12 compensation computed as provided in this section or the amount of the

28-13 judgment, whichever is less.

28-14 (c) Except for a self-insured employer or an employer who is a member

28-15 of an association of self-insured public or private employers, if the

28-16 judgment is satisfied fully by the employer before any payment by the

28-17 [system or] private carrier pursuant to paragraph (b), the amount payable

28-18 thereunder must be paid to the employer.

28-19 Sec. 56. NRS 616C.215 is hereby amended to read as follows:

28-20 616C.215 1. If an injured employee or, in the event of his death, his

28-42 chapter 617 of NRS and which was caused under circumstances creating a

29-1 legal liability in some person, other than the employer or a person in the

29-2 same employ, to pay damages in respect thereof:

29-3 (a) The injured employee, or in case of death his dependents, may take

29-4 proceedings against that person to recover damages, but the amount of the

29-5 compensation the injured employee or his dependents are entitled to

29-6 receive pursuant to the provisions of chapters 616A to 616D, inclusive, or

29-7 chapter 617 of NRS, including any future compensation, must be reduced

29-8 by the amount of the damages recovered, notwithstanding any act or

29-9 omission of the employer or a person in the same employ which was a

29-10 direct or proximate cause of the employee’s injury.

29-11 (b) If the injured employee, or in case of death his dependents, receive

29-12 compensation pursuant to the provisions of chapters 616A to 616D,

29-13 inclusive, or chapter 617 of NRS, the insurer, or in case of claims involving

29-14 the uninsured employers’ claim fund or a subsequent injury fund the

29-15 administrator, has a right of action against the person so liable to pay

29-16 damages and is subrogated to the rights of the injured employee or of his

29-17 dependents to recover therefor.

29-18 3. When an injured employee incurs an injury for which compensation

29-19 is payable pursuant to the provisions of chapters 616A to 616D, inclusive,

29-20 or chapter 617 of NRS and which was caused under circumstances entitling

29-21 him, or in the case of death his dependents, to receive proceeds under his

29-22 employer’s policy of uninsured or underinsured vehicle coverage:

29-23 (a) The injured employee, or in the case of death his dependents, may

29-24 take proceedings to recover those proceeds, but the amount of

29-25 compensation the injured employee or his dependents are entitled to

29-26 receive pursuant to the provisions of chapters 616A to 616D, inclusive, or

29-27 chapter 617 of NRS, including any future compensation, must be reduced

29-28 by the amount of proceeds received.

29-29 (b) If an injured employee, or in the case of death his dependents,

29-30 receive compensation pursuant to the provisions of chapters 616A to 616D,

29-31 inclusive, or chapter 617 of NRS, the insurer, or in the case of claims

29-32 involving the uninsured employers’ claim fund or a subsequent injury fund

29-33 the administrator, is subrogated to the rights of the injured employee or his

29-34 dependents to recover proceeds under the employer’s policy of uninsured

29-35 or underinsured vehicle coverage. The insurer and the administrator are not

29-36 subrogated to the rights of an injured employee or his dependents under a

29-37 policy of uninsured or underinsured vehicle coverage purchased by the

29-38 employee.

29-39 4. In any action or proceedings taken by the insurer or the

29-40 administrator pursuant to this section, evidence of the amount of

29-41 compensation, accident benefits and other expenditures which the insurer,

29-42 the uninsured employers’ claim fund or a subsequent injury fund have paid

30-1 or become obligated to pay by reason of the injury or death of the employee

30-2 is admissible. If in such action or proceedings the insurer or the

30-3 administrator recovers more than those amounts, the excess must be paid to

30-4 the injured employee or his dependents.

30-5 5. In any case where the insurer or the administrator is subrogated to

30-6 the rights of the injured employee or of his dependents as provided in

30-7 subsection 2 or 3, the insurer or the administrator has a lien upon the total

30-8 proceeds of any recovery from some person other than the employer,

30-9 whether the proceeds of such recovery are by way of judgment, settlement

30-10 or otherwise. The injured employee, or in the case of his death his

30-11 dependents, are not entitled to double recovery for the same injury,

30-12 notwithstanding any act or omission of the employer or a person in the

30-13 same employ which was a direct or proximate cause of the employee’s

30-14 injury.

30-15 6. The lien provided for pursuant to subsection 1 or 5 includes the total

30-16 compensation expenditure incurred by the insurer, the uninsured

30-17 employers’ claim fund or a subsequent injury fund for the injured employee

30-18 and his dependents.

30-19 7. An injured employee, or in the case of death his dependents, or the