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

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

1-5 pursuant to the provisions of sections 5 to 17, inclusive, of this act.

1-6 Sec. 2. NRS 616A.025 is hereby amended to read as follows:

1-7 616A.025 As used in chapters 616A to 616D, inclusive, of NRS,

1-10 meanings ascribed to them in those sections.

1-11 Sec. 3. NRS 616A.425 is hereby amended to read as follows:

1-12 616A.425 1. There is hereby established in the state treasury the fund

1-17 received, collected or acquired by the division for functions supported in

2-1 whole or in part from the fund must be delivered to the custody of the state

2-2 treasurer for deposit to the credit of the fund.

2-3 3. All money and securities in the fund must be used to defray all costs

2-4 and expenses of administering the program of workmen’s compensation,

2-5 including the payment of:

2-6 (a) All salaries and other expenses in administering the division of

2-7 industrial relations, including the costs of the office and staff of the

2-8 administrator.

2-9 (b) All salaries and other expenses of administering NRS 616A.435 to

2-10 616A.460, inclusive, the offices of the hearings division of the department

2-11 of administration and the programs of self-insurance and review of

2-12 premium rates by the commissioner . [of insurance.]

2-13 (c) The salary and other expenses of a full-time employee of the

2-14 legislative counsel bureau whose principal duties are limited to

2-15 conducting research and reviewing and evaluating data related to

2-16 industrial insurance.

2-17 (d) All salaries and other expenses of the fraud control unit for

2-18 industrial insurance established pursuant to NRS 228.420.

2-19 (e) Claims against uninsured employers arising from compliance with

2-20 NRS 616C.220 and 617.401.

2-21 (f) All salaries and expenses of the members of the legislative

2-22 committee on workers’ compensation and any other expenses incurred by

2-23 the committee in carrying out its duties pursuant to NRS 218.5375 to

2-24 218.5378, inclusive.

2-25 (g) All salaries and expenses of the members of the appeals board for

2-26 industrial insurance as set forth in section 9 of this act.

2-27 4. The state treasurer may disburse money from the fund only upon

2-28 written order of the controller.

2-29 5. The state treasurer shall invest money of the fund in the same

2-30 manner and in the same securities in which he is authorized to invest state

2-31 general funds which are in his custody. Income realized from the

2-32 investment of the assets of the fund must be credited to the fund.

2-33 6. The commissioner shall assign an actuary to review the

2-34 establishment of assessment rates. The rates must be filed with the

2-35 commissioner 30 days before their effective date. Any insurer or employer

2-36 who wishes to appeal the rate so filed must do so pursuant to NRS

2-37 679B.310.

2-38 Sec. 4. Chapter 616B of NRS is hereby amended by adding thereto the

2-39 provisions set forth as sections 5 to 17, inclusive, of this act.

2-40 Sec. 5. 1. The appeals board for industrial insurance is hereby

2-41 created. The appeals board consists of seven members who are appointed

2-42 by the governor, in consultation with the commissioner. From the

2-43 appropriate list of persons, if any, provided by the advisory organization

3-1 pursuant to subsection 2, the governor, in consultation with the

3-2 commissioner, shall appoint:

3-3 (a) An employee of the division of insurance of the department of

3-4 business and industry;

3-5 (b) An agent who is:

3-6 (1) Licensed pursuant to chapter 683A of NRS and qualified

3-7 pursuant to regulations adopted by the commissioner to take an

3-8 application for, procure or place on behalf of others, industrial

3-9 insurance; and

3-10 (2) A member of a nationally recognized association for the

3-11 profession of insurance agents;

3-12 (c) Two representatives of the general public:

3-13 (1) One of which must be employed by, or the proprietor of, a

3-14 business which is a member of:

3-15 (I) A local chamber of commerce; or

3-16 (II) Another organization representing the general business

3-17 interests of a group of businesses located in this state.

3-18 (2) Neither of which may be an independent contractor to, or an

3-19 employee or representative of, an insurance company, insurance broker,

3-20 insurance agent or insurance solicitor, a law firm, actuary or a

3-21 representative of a trade association that represents or supports the

3-22 interests specific to the trade of any such persons.

3-23 (3) Both of which must be knowledgeable in the field and business

3-24 of industrial insurance in this state;

3-25 (d) A representative of the system;

3-26 (e) A representative of a private carrier; and

3-27 (f) A representative of the advisory organization who administers

3-28 appeals boards for grievances of employers in other states.

3-29 2. On or before June 1 of a year in which the governor is to appoint

3-30 a member to the appeals board, the advisory organization shall compile

3-31 lists of nominees for appointment pursuant to subsection 1 and provide

3-32 such lists to the governor and the commissioner. The advisory

3-33 organization shall compile four lists, each containing the names of at

3-34 least five persons who, in the opinion of the advisory organization, would

3-35 be appropriate members of the appeals board as:

3-36 (a) The agent appointed pursuant to paragraph (b) of subsection 1;

3-37 (b) The two representatives of the general public appointed pursuant

3-38 to paragraph (c) of subsection 1;

3-39 (c) The representative of the system appointed pursuant to paragraph

3-40 (d) of subsection 1; and

3-41 (d) The representative of a private carrier appointed pursuant to

3-42 paragraph (e) of subsection 1.

4-1 3. Within 30 days after such appointments have been made, the

4-2 governor shall notify the advisory organization of the names of each new

4-3 member.

4-4 4. After the initial terms, members shall serve terms of 3 years,

4-5 except when appointed to fill unexpired terms.

4-6 5. A vacancy in the membership of the appeals board must be filled

4-7 by the governor, in consultation with the commissioner, in accordance

4-8 with the provisions of subsections 1 and 2 for the remainder of the

4-9 unexpired term. The newly appointed member must have the same

4-10 qualifications as the vacating member, as specified in paragraph (a), (b),

4-11 (c), (d), (e) or (f) of subsection 1, as appropriate.

4-12 Sec. 6. 1. At its first meeting of each year, the appeals board shall

4-13 elect a chairman from among its members.

4-14 2. The chairman shall hold office for 1 year.

4-15 3. If a vacancy occurs in the chairmanship, the members of the

4-16 board shall elect a chairman from among its members for the remainder

4-17 of the unexpired term of the chairman.

4-18 4. Unless the members agree unanimously to a different date, the

4-19 first meeting of each year must be as soon as practicable after July 1.

4-20 Sec. 7. 1. The chairman of the appeals board shall:

4-21 (a) Schedule the time and place of the meetings and hearings of the

4-22 appeals board;

4-23 (b) Establish the agenda for each meeting and hearing of the appeals

4-24 board; and

4-25 (c) Ensure that the meetings of the appeals board are conducted in an

4-26 efficient manner.

4-27 2. The chairman of the appeals board may appoint from the

4-28 membership of the appeals board a secretary to whom he may delegate

4-29 his administrative functions.

4-30 Sec. 8. 1. The appeals board shall meet at the times and places

4-31 specified by a call of the chairman.

4-32 2. Four members of the appeals board constitute a quorum to

4-33 transact all business, and a majority of those present must concur on any

4-34 decision.

4-35 Sec. 9. Each member of the appeals board is entitled to receive for

4-36 his attendance at meetings of the appeals board:

4-37 1. Compensation of not more than $80 per day, as fixed by the

4-38 appeals board, while engaged in the business of the appeals board; and

4-39 2. The per diem allowance and travel expenses provided for state

4-40 officers and employees generally.

5-1 Sec. 10. 1. An employer, other than a self-insured employer, who

5-2 determines that circumstances specific to his case require a review of the:

5-3 (a) Establishment of the employer’s modification of premium based

5-4 on experience;

5-5 (b) Classification of risk assigned for the employer’s business; or

5-6 (c) Application of the supplementary rate information to the employer,

5-7 may file a written grievance with the appeals board.

5-8 2. The insurer of that employer and the advisory organization may

5-9 participate in a hearing on the grievance by appearing and providing

5-10 testimony or other evidence. If an insurer or the advisory organization

5-11 participates in the hearing, the insurer or the advisory organization is a

5-12 party to the hearing and may appeal, pursuant to the provisions of

5-13 section 16 of this act, the decision made by the appeals board.

5-14 3. As used in this section "supplementary rate information" has the

5-15 meaning ascribed to it in NRS 686B.020.

5-16 Sec. 11. 1. The appeals board shall hear a grievance of an

5-17 employer filed pursuant to section 10 of this act.

5-18 2. The appeals board shall not hear:

5-19 (a) Complaints concerning the effect of the classifications of risks or

5-20 rules that are applied by all insurers to all similarly classified businesses

5-21 within this state.

5-22 (b) Grievances concerning contested cases for compensation pursuant

5-23 to the provisions of chapters 616A to 616D, inclusive, or 617 of NRS.

5-24 Sec. 12. 1. Within 30 days after receipt of a written grievance from

5-25 an employer pursuant to section 10 of this act and not less than 10 days

5-26 before the hearing on such grievance, the appeals board shall provide

5-27 written notice to the employer, his insurer and the advisory organization

5-28 of the date and place of the hearing.

5-29 2. A decision on a grievance must be issued pursuant to section 15 of

5-30 this act within 30 days after the hearing.

5-31 Sec. 13. A hearing held pursuant to section 11 of this act must be

5-32 open to the public, unless the appeals board will be considering

5-33 proprietary information of the employer or the insurer. As used in this

5-34 section, the term "proprietary information" has the meaning ascribed to

5-35 it in subsection 4 of NRS 616B.014.

5-36 Sec. 14. 1. If a member of the appeals board determines that he

5-37 has a personal interest or a conflict of interest, directly or indirectly, with

5-38 a party to a hearing or the subject matter of the hearing, the chairman of

5-39 the appeals board shall appoint a substitute member for that hearing who

5-40 has the same qualifications, as specified in paragraph (a), (b), (c), (d), (e)

5-41 or (f) of subsection 1 of section 5 of this act as the member who has the

5-42 conflict of interest. If the chairman is the member with the conflict of

6-1 interest, another member of the appeals board shall appoint the

6-2 substitute.

6-3 2. A conflict of interest may be waived if, after full written disclosure

6-4 of the facts raising such a conflict, all parties to the appeal agree in

6-5 writing to the hearing of the appeal by the member. Such waiver must be

6-6 filed with the chairman of the appeals board before the hearing. If the

6-7 chairman is the member with the conflict of interest, the waiver must be

6-8 filed with the commissioner.

6-9 3. The member of the appeals board who represents the advisory

6-10 organization shall be deemed not to have a conflict of interest with

6-11 respect to the advisory organization if it is a party to a hearing.

6-12 Sec. 15. 1. Within 30 days after each hearing, the chairman or a

6-13 member of the appeals board designated by the chairman shall prepare

6-14 and deliver personally or by mail to each party to the hearing and to the

6-15 commissioner a written memorandum stating:

6-16 (a) The reasons for the decision of the appeals board concerning

6-17 those parties; and

6-18 (b) The rights of any party to the hearing to appeal pursuant to

6-19 section 16 of this act and a brief description of the procedure for making

6-20 such an appeal.

6-21 The votes of each member of the appeals board must not be recorded on

6-22 this memorandum.

6-23 2. Each month, copies of all decisions made by the appeals board

6-24 during the prior month must be delivered personally or by mail to the

6-25 advisory organization.

6-26 Sec. 16. 1. A party to the hearing who wishes to appeal a decision

6-27 of the appeals board must do so pursuant to the provisions of NRS

6-28 679B.310. Such a hearing must be conducted by the commissioner

6-29 pursuant to the provisions of NRS 679B.310 to 679B.370, inclusive, and

6-30 the regulations adopted pursuant thereto.

6-31 2. The commissioner shall not hold a hearing on the request of an

6-32 employer concerning the establishment of the employer’s modification of

6-33 premium based on experience, the classification of risk assigned for the

6-34 employer’s business, or application of the insurer’s supplementary rate

6-35 information to the employer unless the employer has:

6-36 (a) Filed a written grievance with the appeals board pursuant to

6-37 section 10 of this act; and

6-38 (b) Received a written decision from the appeals board.

6-39 Sec. 17. The commissioner may adopt regulations to carry out the

6-40 provisions of sections 5 to 17, inclusive, of this act.

6-41 Sec. 18. NRS 616C.315 is hereby amended to read as follows:

6-42 616C.315 1. Any person who is subject to the jurisdiction of the

6-43 hearing officers pursuant to chapters 616A to 616D, inclusive, or chapter

7-1 617 of NRS may request a hearing before a hearing officer of any matter

7-2 within the hearing officer’s authority. The insurer shall provide, without

7-3 cost, the forms necessary to request a hearing to any person who requests

7-4 them.

7-5 2. Except as otherwise provided in NRS 616C.305, and sections 10, 11

7-6 and 16 of this act, a person who is aggrieved by:

7-7 (a) A written determination of an insurer; or

7-8 (b) The failure of an insurer to respond within 30 days to a written

7-9 request mailed to the insurer by the person who is aggrieved,

7-10 may appeal from the determination or failure to respond by filing a request

7-11 for a hearing before a hearing officer. Such a request must be filed within

7-12 70 days after the date on which the notice of the insurer’s determination

7-13 was mailed by the insurer or the unanswered written request was mailed to

7-14 the insurer, as applicable. The failure of an insurer to respond to a written

7-15 request for a determination within 30 days after receipt of such a request

7-16 shall be deemed by the hearing officer to be a denial of the request.

7-17 3. Failure to file a request for a hearing within the period specified in

7-18 subsection 2 may be excused if the person aggrieved shows by a

7-19 preponderance of the evidence that he did not receive the notice of the

7-20 determination and the forms necessary to request a hearing. The claimant or

7-21 employer shall notify the insurer of a change of address.

7-22 4. The hearing before the hearing officer must be conducted as

7-23 expeditiously and informally as is practicable.

7-24 5. The parties to a contested claim may, if the claimant is represented

7-25 by legal counsel, agree to forego a hearing before a hearing officer and

7-26 submit the contested claim directly to an appeals officer.

7-27 Sec. 19. NRS 232.680 is hereby amended to read as follows:

7-28 232.680 1. The cost of carrying out the provisions of NRS 232.550

7-43 received by the state industrial insurance system that his expected annual

8-1 expenditure for claims is of the expected annual expenditure of the system

8-2 for claims. The division shall adopt regulations which establish formulas of

8-3 assessment which result in an equitable distribution of costs among the

8-4 insurers and employers who provide accident benefits for injured

8-5 employees. The formulas may utilize actual expenditures for claims.

8-6 2. Federal grants may partially defray the costs of the division.

8-7 3. Assessments made against insurers by the division after the adoption

8-8 of regulations must be used to defray all costs and expenses of

8-9 administering the program of workers’ compensation, including the

8-10 payment of:

8-11 (a) All salaries and other expenses in administering the division,

8-12 including the costs of the office and staff of the administrator.

8-13 (b) All salaries and other expenses of administering NRS 616A.435 to

8-14 616A.460, inclusive, the offices of the hearings division of the department

8-15 of administration and the programs of self-insurance and review of

8-16 premium rates by the commissioner of insurance.

8-17 (c) The salary and other expenses of a full-time employee of the

8-18 legislative counsel bureau whose principal duties are limited to conducting

8-19 research and reviewing and evaluating data related to industrial insurance.

8-20 (d) All salaries and other expenses of the fraud control unit for industrial

8-21 insurance established pursuant to NRS 228.420.

8-22 (e) Claims against uninsured employers arising from compliance with

8-23 NRS 616C.220 and 617.401.

8-24 (f) All salaries and expenses of the members of the legislative committee

8-25 on workers’ compensation and any other expenses incurred by the

8-26 committee in carrying out its duties pursuant to NRS 218.5375 to

8-27 218.5378, inclusive.

8-28 (g) All salaries and expenses of the members of the appeals board for

8-29 industrial insurance as set forth in section 9 of this act.

8-30 Sec. 20. NRS 679B.370 is hereby amended to read as follows:

8-31 679B.370 1. Except as to matters arising under chapter 686B of NRS

8-42 for judicial review in the manner provided by chapter 233B of NRS.

9-1 Sec. 21. NRS 686B.1785 is hereby amended to read as follows:

9-2 686B.1785 Any person aggrieved by any decision, action or omission

9-11 specifying the grounds relied upon.

9-12 Sec. 22. As soon as practicable after the effective date of this act, the

9-13 governor, in consultation with the commissioner of insurance shall appoint:

9-14 1. One of the members described in paragraph (c) of subsection 1 of

9-15 section 5 of this act to a term that expires on June 30, 2000.

9-16 2. One of the members described in paragraph (c) of subsection 1 of

9-17 section 5 of this act to a term that expires on June 30, 2001.

9-18 3. The members described in paragraphs (a), (b), (d), (e) and (f) of

9-19 subsection 1 of section 5 of this act to a term that expires on June 30, 2002.

9-20 Sec. 23. 1. This section and sections 1 to 18, inclusive, and 20 of

9-21 this act become effective upon passage and approval.

9-22 2. Sections 19 and 21 become effective at 12:01 a.m. on July 1, 1999.