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. (Deleted by amendment.)

1-12 Sec. 4. Chapter 616B of NRS is hereby amended by adding thereto the

1-13 provisions set forth as sections 5 to 17, inclusive, of this act.

1-14 Sec. 5. 1. The appeals panel for industrial insurance is hereby

1-15 created. The appeals panel consists of seven members who are appointed

1-16 by the governor, in consultation with the commissioner. From the

1-17 appropriate list of persons, if any, provided by the advisory organization

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

2-2 commissioner, shall appoint:

2-3 (a) An employee of the division of insurance of the department of

2-4 business and industry;

2-5 (b) An agent who is:

2-6 (1) Licensed pursuant to chapter 683A of NRS and qualified

2-7 pursuant to regulations adopted by the commissioner to take an

2-8 application for, procure or place on behalf of others, industrial

2-9 insurance; and

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

2-11 profession of insurance agents;

2-12 (c) Two representatives of the general public:

2-13 (1) One of which must be employed by, or the proprietor of, a

2-14 business which is a member of:

2-15 (I) A local chamber of commerce; or

2-16 (II) Another organization representing the general business

2-17 interests of a group of businesses located in this state.

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

2-19 employee or representative of, an insurance company, insurance broker,

2-20 insurance agent or insurance solicitor, a law firm, actuary or a

2-21 representative of a trade association that represents or supports the

2-22 interests specific to the trade of any such persons.

2-23 (3) Both of which must be knowledgeable in the field and business

2-24 of industrial insurance in this state;

2-25 (d) Two representatives of private carriers; and

2-26 (e) A representative of the advisory organization who administers

2-27 appeals panels for grievances of employers in other states.

2-28 2. On or before June 1 of a year in which the governor is to appoint

2-29 a member to the appeals panel, the advisory organization shall compile

2-30 lists of nominees for appointment pursuant to subsection 1 and provide

2-31 such lists to the governor and the commissioner. The advisory

2-32 organization shall compile three lists, each containing the names of at

2-33 least five persons who, in the opinion of the advisory organization, would

2-34 be appropriate members of the appeals panel as:

2-35 (a) The agent appointed pursuant to paragraph (b) of subsection 1;

2-36 (b) The two representatives of the general public appointed pursuant

2-37 to paragraph (c) of subsection 1; and

2-38 (c) The two representatives of private carriers appointed pursuant to

2-39 paragraph (d) of subsection 1.

2-40 3. Within 30 days after such appointments have been made, the

2-41 governor shall notify the advisory organization of the names of each new

2-42 member.

3-1 4. After the initial terms, members shall serve terms of 2 years,

3-2 except when appointed to fill unexpired terms.

3-3 5. A vacancy in the membership of the appeals panel must be filled

3-4 by the governor, in consultation with the commissioner, in accordance

3-5 with the provisions of subsections 1 and 2 for the remainder of the

3-6 unexpired term. The newly appointed member must have the same

3-7 qualifications as the vacating member, as specified in paragraph (a), (b),

3-8 (c), (d) or (e) of subsection 1, as appropriate.

3-9 Sec. 6. 1. At its first meeting of each year, the appeals panel shall

3-10 elect a chairman from among its members.

3-11 2. The chairman shall hold office for 1 year.

3-12 3. If a vacancy occurs in the chairmanship, the members of the

3-13 panel shall elect a chairman from among its members for the remainder

3-14 of the unexpired term of the chairman.

3-15 4. Unless the members agree unanimously to a different date, the

3-16 first meeting of each year must be as soon as practicable after July 1.

3-17 Sec. 7. 1. The chairman of the appeals panel shall:

3-18 (a) Schedule the time and place of the meetings and hearings of the

3-19 appeals panel;

3-20 (b) Establish the agenda for each meeting and hearing of the appeals

3-21 panel; and

3-22 (c) Ensure that the meetings of the appeals panel are conducted in an

3-23 efficient manner.

3-24 2. The chairman of the appeals panel may appoint from the

3-25 membership of the appeals panel a secretary to whom he may delegate

3-26 his administrative functions.

3-27 Sec. 8. 1. The appeals panel shall meet at the times and places

3-28 specified by a call of the chairman.

3-29 2. Four members of the appeals panel constitute a quorum to

3-30 transact all business, and a majority of those present must concur on any

3-31 decision.

3-32 Sec. 9. 1. Each member of the appeals panel is entitled to receive,

3-33 for his attendance at the meetings of the appeals panel, the per diem

3-34 allowance and travel expenses provided for state officers and employees

3-35 generally.

3-36 2. Expenses of the members of the appeals panel must be paid from

3-37 assessments payable by each insurer pursuant to the formula filed with

3-38 and approved by the commissioner pursuant to section 20.2 of this act.

3-39 3. As used in this section, "insurer" has the meaning ascribed to it in

3-40 NRS 686B.1759.

3-41 Sec. 10. 1. An employer, other than a self-insured employer, who

3-42 determines that circumstances specific to his case require a review of the:

4-1 (a) Establishment of the employer’s modification of premium based

4-2 on experience;

4-3 (b) Classification of risk assigned for the employer’s business; or

4-4 (c) Application of the supplementary rate information to the employer,

4-5 may file a written grievance with the appeals panel.

4-6 2. The insurer of that employer and the advisory organization may

4-7 participate in a hearing on the grievance by appearing and providing

4-8 testimony or other evidence. If an insurer or the advisory organization

4-9 participates in the hearing, the insurer or the advisory organization is a

4-10 party to the hearing and may appeal, pursuant to the provisions of

4-11 section 16 of this act, the decision made by the appeals panel.

4-12 3. As used in this section "supplementary rate information" has the

4-13 meaning ascribed to it in NRS 686B.020.

4-14 Sec. 11. 1. The appeals panel shall hear a grievance of an

4-15 employer filed pursuant to section 10 of this act.

4-16 2. The appeals panel shall not hear:

4-17 (a) Complaints concerning the effect of the classifications of risks or

4-18 rules that are applied by all insurers to all similarly classified businesses

4-19 within this state.

4-20 (b) Grievances concerning contested cases for compensation pursuant

4-21 to the provisions of chapters 616A to 616D, inclusive, or 617 of NRS.

4-22 Sec. 12. 1. Within 30 days after receipt of a written grievance from

4-23 an employer pursuant to section 10 of this act and not less than 10 days

4-24 before the hearing on such grievance, the appeals panel shall provide

4-25 written notice to the employer, his insurer and the advisory organization

4-26 of the date and place of the hearing.

4-27 2. A decision on a grievance must be issued pursuant to section 15 of

4-28 this act within 30 days after the hearing.

4-29 Sec. 13. A hearing held pursuant to section 11 of this act must be

4-30 open to the public, unless the appeals panel will be considering

4-31 proprietary information of the employer or the insurer. As used in this

4-32 section, the term "proprietary information" means any information

4-33 which, if disclosed to the general public, may result in a competitive

4-34 disadvantage to an insurer or employer, including, without limitation:

4-35 1. Rules, criteria and standards for underwriting policies that are

4-36 applied by an insurer.

4-37 2. Plans or other documents concerning the marketing or strategic

4-38 planning of an insurer or employer.

4-39 3. Data, studies and reports concerning the development of new

4-40 products or services.

4-41 4. Data that identify the share of the market of an insurer within

4-42 each class of risk.

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

5-2 has a personal interest or a conflict of interest, directly or indirectly, with

5-3 a party to a hearing or the subject matter of the hearing, the chairman of

5-4 the appeals panel shall appoint a substitute member for that hearing who

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

5-6 (e) of subsection 1 of section 5 of this act as the member who has the

5-7 conflict of interest. If the chairman is the member with the conflict of

5-8 interest, another member of the appeals panel shall appoint the

5-9 substitute.

5-10 2. A conflict of interest may be waived if, after full written disclosure

5-11 of the facts raising such a conflict, all parties to the appeal agree in

5-12 writing to the hearing of the appeal by the member. Such waiver must be

5-13 filed with the chairman of the appeals panel before the hearing. If the

5-14 chairman is the member with the conflict of interest, the waiver must be

5-15 filed with the commissioner.

5-16 3. The member of the appeals panel who represents the advisory

5-17 organization shall be deemed not to have a conflict of interest with

5-18 respect to the advisory organization if it is a party to a hearing.

5-19 Sec. 15. 1. Within 30 days after each hearing, the chairman or a

5-20 member of the appeals panel designated by the chairman shall prepare

5-21 and deliver personally or by mail to each party to the hearing and to the

5-22 commissioner a written memorandum stating:

5-23 (a) The reasons for the decision of the appeals panel concerning those

5-24 parties; and

5-25 (b) The rights of any party to the hearing to appeal pursuant to

5-26 section 16 of this act and a brief description of the procedure for making

5-27 such an appeal.

5-28 The votes of each member of the appeals panel must not be recorded on

5-29 this memorandum.

5-30 2. Each month, copies of all decisions made by the appeals panel

5-31 during the prior month must be delivered personally or by mail to the

5-32 advisory organization.

5-33 Sec. 16. 1. A party to the hearing who wishes to appeal a decision

5-34 of the appeals panel must do so pursuant to the provisions of NRS

5-35 679B.310. Such a hearing must be conducted by the commissioner

5-36 pursuant to the provisions of NRS 679B.310 to 679B.370, inclusive, and

5-37 the regulations adopted pursuant thereto.

5-38 2. The commissioner shall not hold a hearing on the request of an

5-39 employer concerning the establishment of the employer’s modification of

5-40 premium based on experience, the classification of risk assigned for the

5-41 employer’s business, or application of the insurer’s supplementary rate

5-42 information to the employer unless the employer has:

6-1 (a) Filed a written grievance with the appeals panel pursuant to

6-2 section 10 of this act; and

6-3 (b) Received a written decision from the appeals panel.

6-4 Sec. 17. The commissioner may adopt regulations to carry out the

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

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

6-7 616C.315 1. Any person who is subject to the jurisdiction of the

6-34 submit the contested claim directly to an appeals officer.

6-35 Sec. 19. (Deleted by amendment.)

6-36 Sec. 20. NRS 679B.370 is hereby amended to read as follows:

6-37 679B.370 1. Except as to matters arising under chapter 686B of NRS

6-42 or failed to hold a hearing after application therefor under NRS 679B.310,

7-1 or as to a matter concerning which the commissioner has refused or failed

7-2 to make his order on hearing as required by NRS 679B.360.

7-3 2. Any person who was a party to a hearing or whose pecuniary

7-4 interests are directly and immediately affected by any such refusal or

7-5 failure, and who is aggrieved by the order, refusal or failure, may petition

7-6 for judicial review in the manner provided by chapter 233B of NRS.

7-7 Sec. 20.2. Chapter 686B of NRS is hereby amended by adding thereto

7-8 a new section to read as follows:

7-9 1. The advisory organization shall, at least 60 days before imposing

7-10 an assessment pursuant to this section, file with the commissioner a

7-11 formula for an assessment on all insurers, which results in an equitable

7-12 distribution among all insurers, of:

7-13 (a) The costs of paying the expenses of the members of the appeals

7-14 panel for industrial insurance pursuant to the provisions of section 9 of

7-15 this act; and

7-16 (b) Any costs incurred by the advisory organization to administer the

7-17 appeals panel for industrial insurance pursuant to the provisions of

7-18 sections 5 to 17, inclusive, of this act.

7-19 2. The formula for the assessment filed pursuant to subsection 1

7-20 shall be deemed approved unless it is disapproved by the commissioner

7-21 within 60 days after it is filed.

7-22 Sec. 20.4. NRS 686B.1751 is hereby amended to read as follows:

7-23 686B.1751 As used in NRS 686B.1751 to 686B.1799, inclusive, and

7-26 meanings ascribed to them in those sections.

7-27 Sec. 21. NRS 686B.1785 is hereby amended to read as follows:

7-28 686B.1785 Any person aggrieved by any decision, action or omission

7-37 specifying the grounds relied upon.

7-38 Sec. 22. As soon as practicable after the effective date of this act, the

7-39 governor, in consultation with the commissioner of insurance shall appoint:

7-40 1. One of the members described in paragraph (c) of subsection 1 of

7-41 section 5 of this act and one of the members described in paragraph (d) of

7-42 subsection 1 of section 5 of this act to terms that expire on June 30, 2000.

8-1 2. One of the members described in paragraph (c) of subsection 1 of

8-2 section 5 of this act and one of the members described in paragraph (d) of

8-3 subsection 1 of section 5 of this act and the members described in

8-4 paragraphs (a), (b) and (e) of subsection 1 of section 5 of this act to terms

8-5 that expire on June 30, 2001.

8-6 Sec. 23. 1. This section and sections 1 to 18, inclusive, 20 and 22 of

8-7 this act become effective upon passage and approval and expire by

8-8 limitation on July 1, 2001.

8-9 2. Sections 20.2, 20.4 and 21 of this act become effective at 12:01 a.m.

8-10 on July 1, 1999, and expire by limitation on July 1, 2001.