Senate Bill No. 464–Committee on Commerce and Labor

(On Behalf of Employment Security Division)

March 17, 1999

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Referred to Committee on Commerce and Labor

 

SUMMARY—Revises provisions in cases of delinquency in payment of employers’ assessments for unemployment compensation. (BDR 53-769)

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 unemployment compensation; revising provisions in cases of delinquency in payment of employers’ assessments; 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. Chapter 612 of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 2 and 3 of this act.

1-3 Sec. 2. 1. If a check is tendered on or before the due date in

1-4 payment of contributions but is afterward dishonored by the financial

1-5 institution on which it is drawn, the check does not constitute timely

1-6 payment unless the administrator determines that dishonor occurred

1-7 because of fault on the part of the financial institution.

1-8 2. The administrator may charge an additional fee of $25 for

1-9 handling against a person who presents a check afterward dishonored.

1-10 The fee must be deposited in the unemployment compensation

1-11 administration fund.

1-12 Sec. 3. 1. If a debtor of an employing unit is notified of a

1-13 delinquency pursuant to NRS 612.685, he shall neither transfer, pay over

1-14 nor make any other disposition of money or property belonging to the

1-15 delinquent employing unit, or any portion thereof, until the administrator

1-16 consents thereto in writing.

2-1 2. A person so notified shall, within 10 days after receipt of the

2-2 notice, advise the administrator of all credits, debts or other personal

2-3 property of the delinquent employing unit in his possession, under his

2-4 control or owing by him, as the case may be.

2-5 3. The administrator may, personally or by registered or certified

2-6 mail, give the person so notified a demand to transmit. Upon receipt of

2-7 the demand, that person shall transmit to the division, within the time

2-8 and in the manner stated in the demand, the lesser of:

2-9 (a) All the credits, debts or other personal property of the delinquent

2-10 employing unit in his possession, under his control or owing by him; or

2-11 (b) The amount specified in the demand.

2-12 Except as otherwise provided in subsection 4, no further notice is

2-13 required.

2-14 4. If the property of the delinquent employing unit consists of a series

2-15 of payments owed to it, the person who owes or controls the payments

2-16 shall transmit them to the division until otherwise notified by the

2-17 administrator. If the debt is not paid within 1 year after the demand to

2-18 transmit was given, the administrator shall give another demand to the

2-19 person who owes or controls the payments, instructing him to continue to

2-20 transmit the payments or informing him that his duty to transmit them

2-21 has ceased.

2-22 5. A person notified of a delinquency who makes any transfer or

2-23 other disposition of property required to be withheld or transmitted to the

2-24 division is liable for the amount of the delinquency to the extent of the

2-25 value of the property or the amount of the debt so transferred or paid.

2-26 6. The division shall determine as promptly as practicable whether

2-27 sufficient liquid assets have been withheld or transmitted to satisfy its

2-28 claim. As soon as the division determines that the assets are sufficient, it

2-29 shall consent in writing to a transfer or other disposition of assets in

2-30 excess of the amount needed.

2-31 Sec. 4. NRS 612.620 is hereby amended to read as follows:

2-32 612.620 1. When any contribution as provided in this chapter

2-33 remains unpaid on the date on which it becomes due , [and payable,] as

2-34 prescribed by the administrator, it bears interest at the rate of [one-half of

2-35 1] 1.5 percent for each month or portion of a month thereafter until such

2-36 payment, plus accrued interest, is received by the administrator.

2-37 2. Interest accrued under this section may not be waived under any

2-38 circumstances.

2-39 3. Interest collected pursuant to this section must be paid into the

2-40 employment security fund.

3-1 Sec. 5. NRS 612.685 is hereby amended to read as follows:

3-2 612.685 1. As used in this section, "person" includes this state, and

3-3 any county, municipality, district or other political subdivision thereof.

3-4 2. If any employing unit is delinquent in the payment of any

3-5 contribution, forfeit or interest provided for in this chapter, the

3-6 administrator may, not later than 3 years after the payment became

3-7 delinquent, or within 6 years of the recording of the judgment under NRS

3-8 612.635, give notice of the [amount of such] delinquency by registered or

3-9 certified mail to any person having in his possession or under his control

3-10 any credit or other personal property belonging to such delinquent

3-11 employing unit, or owing any debt to such employing unit at the time of the

3-12 receipt of the registered or certified notice. Notice to a state officer,

3-13 department or agency is effective only if it is given before the claim of the

3-14 delinquent taxpayer is presented to the state controller.

3-15 3. [Any person so notified shall neither transfer, pay over, nor make

3-16 any other disposition of such debt, credit or other personal property until

3-17 the administrator consents thereto in writing, or until 30 days have elapsed

3-18 from and after the receipt of the notice.

3-19 4. All persons so notified must, within 5 days after receipt of the

3-20 notice, advise the administrator of any and all such credits, debts or other

3-21 personal property in their possession, under their control, or owing by

3-22 them, as the case may be.] A state officer, department or agency which

3-23 receives such a notice may satisfy any debt owed to it by the delinquent

3-24 employing unit before it honors the administrator’s notice.

3-25 Sec. 6. 1. This section and sections 1, 3 and 5 of this act become

3-26 effective upon passage and approval.

3-27 2. Sections 2 and 4 of this act become effective on July 1, 2000.

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