Senate Bill No. 495–Committee on Commerce and Labor

CHAPTER........

Section 1. NRS 616A.465 is hereby amended to read as follows:

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

division shall:

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

(b) Investigate insurers regarding compliance with statutes and the

2. The commissioner is responsible for reviewing rates, investigating

the solvency of insurers, authorizing private carriers pursuant to chapter

680A of NRS and certifying:

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

inclusive, and 616B.336;

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

NRS 616B.350 to 616B.446, inclusive; and

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

3. The department of administration is responsible for contested claims

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

inclusive. The administrator is responsible for administrative appeals

pursuant to NRS 616B.215.

4. The Nevada attorney for injured workers is responsible for legal

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

inclusive, and 616D.120. 5. The division is responsible for the investigation of complaints. If a

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

conducted an investigation which includes a review of relevant records and

interviews of affected persons. If the administrator determines that a

violation may have occurred, the administrator shall proceed in accordance

with the provisions of NRS 616D.120 and 616D.130.

Sec. 2. Chapter 616B of NRS is hereby amended by adding thereto a

new section to read as follows:

Sec. 3. NRS 616B.039 is hereby amended to read as follows:

Sec. 4. NRS 616B.086 is hereby amended to read as follows:

616B.086 1. Except as otherwise provided in subsection 3, all

premiums, contributions, penalties, bonds, securities and all other

properties received, collected or acquired by the system pursuant to the

terms of chapters 616A to 616D, inclusive, of NRS:

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

fund.

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

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

benefit of employees and their dependents within the provisions of chapters

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

bond for the faithful performance of his custodial duty.

2. The commissioner or the administrator may delegate to a hearing

officer or panel his authority to take any disciplinary action pursuant to

616B.472 or 616D.120, impose and collect administrative fines pursuant to

those sections and deposit the money in the fund for workers'

compensation and safety.

3. If a hearing officer or panel is not authorized to take disciplinary

action pursuant to subsection 2 and the commissioner or the administrator

deposits the money collected from the imposition of administrative fines

with the state treasurer for credit to the state general fund, he may present a

claim to the state board of examiners for recommendation to the interim

finance committee if money is needed to pay attorney's fees or the costs of

an investigation, or both.

Sec. 5. NRS 616B.095 is hereby amended to read as follows:

making the compensation to the workman provided in those chapters

exclusive of any other remedy on the part of the workman, shall be held

invalid, each of those chapters shall be thereby invalidated, except the

provisions of NRS 616B.101, and an accounting according to the justice of

the case shall be had on moneys received. In other respects an adjudication

of invalidity of any part of this chapter or chapter 616A, 616C or 616D of

NRS shall not affect the validity of any of those chapters as a whole or any

part thereof.

Sec. 6. NRS 616B.104 is hereby amended to read as follows:

616B.104 1. Notwithstanding the provisions of chapter 355 of NRS

or of any other law, the manager may invest and reinvest any money in the

may employ investment counsel for that purpose.

in accordance with the provisions of chapter 355 of NRS.

Sec. 7. NRS 616B.107 is hereby amended to read as follows:

616B.107 1. No person engaged in business as a broker or dealer in

securities or who has a direct pecuniary interest in any such business who

receives commissions for transactions performed as an agent for the system

is eligible for employment as investment counsel for the system.

2. The manager shall not engage investment counsel unless:

(a) The principal business of the person selected by the manager consists

of rendering investment supervisory services, that is, the giving of

continuous advice as to the investment of money on the basis of the

individual needs of each client;

(b) The person and his predecessors have been continuously engaged in

such business for a period of 3 or more years, and, if a firm or corporation,

the senior management personnel of the firm or corporation have an

average of 10 years professional experience as investment managers;

(c) The person as of the time originally hired, has at least $250,000,000

of assets under management contract, exclusive of any assets related to

governmental agencies in this state;

(d) The person is registered as an investment adviser under the laws of

the United States as from time to time in effect, or is a bank or an

investment management subsidiary of a bank;

(e) The contract between the system and the investment counsel is of no

specific duration and is voidable at any time by either party; and

(f) The person has been approved by the state board of finance for

employment as investment counsel.

3. More than one investment counsel may be employed in the

discretion of the manager.

4. The expense of such employment must be paid from the state

insurance fund. 5. Any investment program adopted by the system and all investments

made thereunder must be reported quarterly in writing by the manager to

the state board of finance, and the report is subject to review by the state

board of finance. The state board of finance may require the manager to

provide further reports and may recommend modifications in the

investment program, including replacement of the investment counsel. If,

after a reasonable time, the manager has not taken suitable corrective action

in response to recommendations by the state board of finance, the state

board of finance may direct the manager to carry out its recommendations

in a manner acceptable to the state board of finance. Any directives from

the state board of finance must be in writing.

6. With the approval of the state board of finance, the manager may

designate the bank or banks which shall have the custody of the various

7. The system may accept due bills from brokers upon delivery of

warrants if the certificates representing the investments are not readily

available.

Sec. 8. NRS 616B.185 is hereby amended to read as follows:

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

in work in a prison industry or work program, whether the program is

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

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

modified program of industrial insurance established by regulations

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

provisions of the modified program of industrial insurance established by

to any rights and remedies established by the provisions of chapters 616A

to 617, inclusive, of NRS.

prisons and the risk management division of the department of

administration, adopt regulations setting forth a modified program of

industrial insurance to provide offenders with industrial insurance against

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

industry or work program.

Sec. 9. NRS 616B.186 is hereby amended to read as follows:

616B.186 1. Any offender confined in a county jail, city jail or other

local detention facility, while engaged in work in a work program directed

by the administrator of the jail or other detention facility, whether the work

program is operated by contract with a public entity or by a private

employer, may receive coverage under the modified program of industrial

insurance established by regulations adopted by the division if the

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

provisions of the modified program of industrial insurance established by

regulations adopted by the division. The offender is not entitled to any

rights and remedies established by the provisions of chapters 616A to 617,

inclusive, of NRS.

3. The division, in cooperation with the various administrators of jails

and other detention facilities, shall adopt regulations setting forth a

modified program of industrial insurance to provide offenders with

industrial insurance against personal injuries arising out of and in the

course of their work in a work program.

4. As used in this section, "administrator of the jail or other detention

facility" means the sheriff of a county jail, chief of police of a city jail or

director of a local detention facility.

Sec. 10. NRS 616B.211 is hereby amended to read as follows:

the system as small employers pursuant to chapters 616A to 616D,

manager may, with the approval of the commissioner, determine and fix the

premium rates of those employers pursuant to the plan.

Sec. 11. NRS 616B.212 is hereby amended to read as follows:

for classifying employers insured by the system who, because of the risks

inherent in the businesses in which the employers are engaged, are

reasonably likely to incur a greater number of claims for compensation

Upon establishing such a plan, the manager may, with the approval of the

commissioner, determine and fix the premium rates of those employers.

Sec. 12. NRS 616B.224 is hereby amended to read as follows:

-insured employer or a member of an association of self-insured public or

pursuant to 26 U.S.C. § 6053(a) whose tips in cash totaled $20 or more;

and

rejection.

first-class mail of any failure on his part to comply with the provisions of

this section. The notice or its omission does not modify or waive the

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

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

system to submit the information and premium required in subsection 1

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

granted an extension of that time by the manager.

vigorously pursue the collection of premiums that are due under the

employer's debts have been discharged in a bankruptcy proceeding.

Sec. 13. NRS 616B.386 is hereby amended to read as follows:

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

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

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

third-party administrator of the association; and

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

2. The membership of the applicant becomes effective when each

member of the association approves the application or on a later date

specified by the association. The application for membership and the actiontaken on the application must be maintained as permanent records of the

board of trustees.

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

months immediately following the formation of the association must:

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

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

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

accordance with a manual prepared pursuant to subsection 4 of NRS

686B.1765.

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

the 12 months immediately following the formation of the association must

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

the commissioner adjusts the requirement for membership in the

association after conducting an annual review of the actuarial solvency of

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

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

commissioner for authority to determine the amount of tangible net worth

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

the association. The commissioner shall approve the application if the

association:

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

consecutive years immediately preceding the date on which the association

filed the application with the commissioner;

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

of at least $5,000,000;

(c) Has at least 15 members; and

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

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

immediately preceding the date on which the association filed the

application with the commissioner or, if the association has been required

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

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

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

commissioner for authority to determine the documentation demonstrating

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

association. The commissioner shall approve the application if the

association:

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

consecutive years immediately preceding the date on which the association

filed the application with the commissioner;

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

of at least $5,000,000; and

(c) Has at least 15 members.

7. The commissioner may withdraw his approval of an application

submitted pursuant to subsection 5 or 6 if he determines the association hasceased to comply with any of the requirements set forth in subsection 5 or

6, as applicable.

association may terminate his membership at any time. To terminate his

membership, a member must submit to the association's administrator a

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

the effective date of withdrawal. The association's administrator shall,

within 10 days after receipt of the notice, notify the commissioner of the

employer's intent to withdraw from the association.

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

member of the association in accordance with the bylaws of the association.

10. The association shall:

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

of the association, notify the commissioner of the addition and:

(1) If the association has not received authority from the

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

commissioner all information and assurances for the new member that were

required from each of the original members of the association upon its

organization; or

(2) If the association has received authority from the commissioner

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

evidence that is satisfactory to the commissioner that the new member is a

member or associate member of the bona fide trade association as required

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

indemnity agreement that jointly and severally binds the new member, the

other members of the association and the association that is required to be

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

any other information the commissioner may reasonably require to

determine whether the amount of security deposited with the commissioner

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

sufficient, but such information must not exceed the information required to

be provided to the commissioner pursuant to subparagraph (1);

(b) Notify the commissioner and the administrator of the termination or

cancellation of the membership of any member of the association within 10

days after the termination or cancellation; and

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

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

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

from the administrator that the member has:

(1) Become insured by the system;

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

616B.312;

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

private employers; or

(4) Become insured by a private carrier

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

organization, the member remains liable for any obligations incurred or any

responsibilities imposed pursuant to chapters 616A to 617, inclusive, of

NRS under his former name or form of organization.

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

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

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

the association of liability for the payment of the compensation.

Sec. 14. NRS 616B.407 is hereby amended to read as follows:

616B.407 1. Except as otherwise provided in subsection 2, the

annual assessment required to be paid by each member of an association of

of that member, adjusted by the member's individual experience.

If approved by the commissioner, payments of assessments may be reduced

by an amount based on the association's level of expenses and loss

experience.

2. If approved by the commissioner, an association may calculate the

annual assessment required to be paid by each member of the association.

An assessment calculated by the association must be based on at least 5

years of the member's individual experience.

Sec. 15. NRS 616B.463 is hereby amended to read as follows:

616B.463 1. Before a private carrier may provide industrial

insurance pursuant to chapters 616A to 617, inclusive, of NRS, the private

carrier must be authorized by the commissioner pursuant to chapter 680A

of NRS and maintain such security of the kind described in NRS 680A.120

and 680A.140 as may be required.

2. A private carrier shall not provide industrial insurance pursuant to

chapters 616A to 617, inclusive, of NRS as an unauthorized insurer

pursuant to subsection 9 of NRS 680A.070.

Sec. 16. NRS 616B.472 is hereby amended to read as follows:

616B.472 1. The commissioner shall suspend the authorization of a

repeatedly failed to comply with the provisions of chapters 616A to 616D,

be kept but it need not be transcribed unless requested by the private

carrier. The cost of transcription must be charged to the private carrier.

Sec. 17. NRS 616B.612 is hereby amended to read as follows:

616B.612 1. Every employer within the provisions of chapters 616A

terms of those chapters and are governed by their provisions, shall provide

and secure compensation according to the terms, conditions and provisions

of those chapters for any personal injuries by accident sustained by an

employee arising out of and in the course of the employment.

2. Travel for which an employee receives wages shall, for the purposes

of chapters 616A to 616D, inclusive, of NRS, be deemed in the course of

employment.

3. In such cases the employer or any insurer of the employer is relieved

from other liability for recovery of damages or other compensation for

those personal injuries unless otherwise provided by the terms of chapters

616A to 616D, inclusive, of NRS. Sec. 18. NRS 616B.624 is hereby amended to read as follows:

616B.624 1. If a quasi-public or private corporation or a limited

-liability company is required to be insured pursuant to chapters 616A to

616D, inclusive, of NRS, an officer of the corporation or a manager of the

company who:

(a) Receives pay for services performed as an officer, manager or

employee of the corporation or company shall be deemed for the purposes

(b) Does not receive pay for services performed as an officer, manager

or employee of the corporation or company shall be deemed for the

purposes of those chapters to receive a minimum pay of $500 per month or

2. An officer or manager who does not receive pay for services

performed as an officer, manager or employee of the corporation or

company may elect to reject coverage by filing written notice thereof with

the corporation or company and the insurer. The rejection is effective upon

receipt of the notice by the insurer.

3. An officer or manager who has rejected coverage may rescind that

rejection by filing written notice thereof with the corporation or company

and the insurer. The rescission is effective upon receipt of the notice by the

insurer. If an officer or manager who has rejected coverage receives pay for

services performed as an officer, manager or employee of the corporation

or company, the officer or manager shall be deemed to have rescinded that

rejection.

4. A nonprofit corporation whose officers do not receive pay for

services performed as officers or employees of the corporation may elect to

reject coverage for its current officers and all future officers who do not

receive such pay by filing written notice thereof with the corporation and

the insurer. The rejection is effective upon receipt of the notice by the

insurer.

5. A nonprofit corporation which has rejected coverage for its officers

who do not receive pay for services performed as officers or employees of

the corporation may rescind that rejection by filing written notice thereof

with the corporation and the insurer. The rescission is effective upon

receipt of the notice by the insurer. If an officer of a nonprofit corporation

which has rejected coverage receives pay for services performed as an

officer or employee of the corporation, the corporation shall be deemed to

have rescinded that rejection.

Sec. 19. NRS 616B.670 is hereby amended to read as follows:

616B.670 As used in NRS 616B.670 to 616B.697, inclusive, unless the

an employee leasing company.

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

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

agreement.

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

written or oral agreement:

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

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

basis without any limitation on the duration of their employment; or

(b) Leases to a client company:

(1) Five or more part-time or full-time employees; or

(2) Ten percent or more of the total number of employees within a

Sec. 20. NRS 616B.673 is hereby amended to read as follows:

616B.673 1. A person shall not operate an employee leasing

company in this state unless he has complied with the provisions of NRS

with the provisions of NRS 616B.670 to 616B.697, inclusive.

2. Any person who violates the provisions of subsection 1 is guilty of a

misdemeanor.

year after it is issued unless renewed before that date.

Sec. 21. NRS 616B.676 is hereby amended to read as follows:

616B.676 An applicant for the issuance or renewal of a certificate of

Sec. 22. NRS 616B.679 is hereby amended to read as follows:

616B.679 1. Each application must include:

(a) The applicant's name and title of his position with the employee

leasing company.

(b) The applicant's age, place of birth and social security number.

(c) The applicant's address.

(d) The business address of the employee leasing company.

(e) The business address of the resident agent of the employee leasing

company, if the applicant is not the resident agent.

(f) If the applicant is a:

(1) Partnership, the name of the partnership and the name, address,

age, social security number and title of each partner.

(2) Corporation, the name of the corporation and the name, address,

age, social security number and title of each officer of the corporation.

(g) Proof of:

(1) The payment of any taxes required by chapter 364A of NRS

. (2) The payment of any premiums for industrial insurance required by

chapters 616A to 617, inclusive, of NRS.

(3) The payment of contributions or payments in lieu of contributions

required by chapter 612 of NRS.

(4) Insurance coverage for any benefit plan from an insurer

authorized pursuant to Title 57 of NRS that is offered by the employee

leasing company to its employees.

2. Each application must be notarized and signed under penalty of

perjury:

(a) If the applicant is a sole proprietorship, by the sole proprietor.

(b) If the applicant is a partnership, by each partner.

(c) If the applicant is a corporation, by each officer of the corporation.

change in the information required by this section within 30 days after the

Sec. 23. NRS 616B.694 is hereby amended to read as follows:

may, adopt regulations to carry out the provisions of NRS 616B.670 to

616B.697, inclusive.

Sec. 24. NRS 616B.697 is hereby amended to read as follows:

616B.697 An action for damages caused by the failure of an employee

leasing company to comply with the provisions of NRS 616B.670 to

616B.697, inclusive, may be brought against any person who is required to

employee leasing company.

Sec. 25. NRS 616C.220 is hereby amended to read as follows:

employers' claim fund if:

(a) He was hired in this state or he is regularly employed in this state;

(b) He suffers an accident or injury in this state which arises out of and

in the course of his employment;

(c) He files a claim for compensation with the division; and

(d) He makes an irrevocable assignment to the division of a right to be

subrogated to the rights of the injured employee pursuant to NRS

616C.215.

division shall immediately notify the employer of the claim.

proving that he provided mandatory industrial insurance coverage for the

employee or that he was not required to maintain industrial insurance for

the employee.

required by the provisions of chapters 616A to 616D, inclusive, of NRS is

liable for all payments made on his behalf, including any benefits,

administrative costs or attorney's fees paid from the uninsured employers'

claim fund or incurred by the division.

(a) May recover from the employer the payments made by the division

civil action in district court.

(b) In any civil action brought against the employer, is not required to

prove that negligent conduct by the employer was the cause of the

employee's injury.

(c) May enter into a contract with any person to assist in the collection

of any liability of an uninsured employer.

(d) In lieu of a civil action, may enter into an agreement or settlement

regarding the collection of any liability of an uninsured employer.

(a) Determine whether the employer was insured within 30 days after

receiving notice of the claim from the employee.

is rendered to the hearings division of the department of administration in

the manner provided by NRS 616C.305 and 616C.315 to 616C.385,

inclusive.

pursuant to chapters 616A to 616D, inclusive, of NRS, and are entitled to a

proportionate amount of any collection made pursuant to this section as an

offset against future liabilities.

paid on his claims from the uninsured employers' claim fund. The interest

must be calculated at a rate equal to the prime rate at the largest bank in

Nevada, as ascertained by the commissioner of financial institutions, on

January 1 or July 1, as the case may be, immediately preceding the date of

the claim, plus 3 percent, compounded monthly, from the date the claim is

paid from the fund until payment is received by the division from the

employer.

section must be:

(a) If a private attorney is retained by the division, paid at the usual and

customary rate for that attorney.

(b) If the attorney is an employee of the division, paid at the rate

established by regulations adopted by the division.

Any money collected must be deposited to the uninsured employers' claim

fund.

the administrator may impose an administrative fine of not more than

$10,000 against an employer if the employer fails to provide mandatory

coverage required by the provisions of chapters 616A to 616D, inclusive,

of NRS.

Sec. 26. NRS 616C.355 is hereby amended to read as follows:

616C.355 At any time 10 or more days before a scheduled hearing

the opposing party any affidavit or declaration which he proposes to

introduce into evidence and notice to the effect that unless the opposing

party, within 7 days after the mailing or delivery of such affidavit or

declaration, mails or delivers to the proponent a request to cross-examine

the affiant or declarant, his right to cross-examine the affiant or declarant is

waived and the affidavit or declaration, if introduced into evidence, will

have the same effect as if the affiant or declarant had given sworn

Sec. 27. NRS 616C.385 is hereby amended to read as follows:

616C.385 If a party petitions the district court for judicial review of a

the district court to be frivolous or brought without reasonable grounds, the

district court may order costs and a reasonable attorney's fee to be paid by

the petitioner.

Sec. 28. NRS 616D.050 is hereby amended to read as follows:

other proceedings pursuant to the provisions of chapters 616A to 616D,

inclusive, of NRS or regulations adopted pursuant to those chapters may:

(a) Issue subpoenas requiring the attendance of any witness or the

production of books, accounts, papers, records and documents.

(b) Administer oaths.

(c) Certify to official acts.

(d) Call and examine under oath any witness or party to a claim.

(e) Maintain order.

(f) Rule upon all questions arising during the course of a hearing or

proceeding.

(g) Permit discovery by deposition or interrogatories.

(h) Initiate and hold conferences for the settlement or simplification of

issues.

(i) Dispose of procedural requests or similar matters.

(j) Generally regulate and guide the course of a pending hearing or

proceeding.

2. Hearing officers, in conducting hearings or other proceedings

pursuant to the provisions of chapters 616A to 616D, inclusive, of NRS or

regulations adopted pursuant to those chapters, may:

(a) Issue subpoenas requiring the attendance of any witness or the

production of books, accounts, papers, records and documents that are

relevant to the dispute for which the hearing or other proceeding is being

held. (b) Maintain order.

(c) Permit discovery by deposition or interrogatories.

(d) Initiate and hold conferences for the settlement or simplification of

issues.

(e) Dispose of procedural requests or similar matters.

(f) Generally regulate and guide the course of a pending hearing or

proceeding.

Sec. 29. NRS 616D.070 is hereby amended to read as follows:

616D.070 If any person:

1. Disobeys an order of an appeals officer, a hearing officer, the

inspector or examiner;

2. Refuses to permit an inspection; or

3. As a witness, refuses to testify to any matter for which he may be

lawfully interrogated,

the district judge of the county in which the person resides, on application

by attachment proceedings as for contempt, as in the case of disobedience

of the requirements of subpoenas issued from the court on a refusal to

testify therein.

Sec. 30. NRS 616D.080 is hereby amended to read as follows:

616D.080 1. Each officer who serves a subpoena is entitled to

receive the same fees as a sheriff.

2. Each witness who appears, in obedience to a subpoena which has

been issued pursuant to this chapter or chapter 616A, 616B or 616C of

receive for his attendance the fees and mileage provided for witnesses in

(a) Authorize payment from his administrative budget of the fees and

mileage due to such a witness; or

(b) Impose those costs upon the party at whose instance the witness was

subpoenaed or, for good cause shown, upon any other party.

Sec. 31. NRS 616D.100 is hereby amended to read as follows:

616D.100 1. A transcribed copy of the evidence and proceedings, or

any specific part thereof, of any final hearing or investigation, made by a

stenographer appointed by an appeals officer, a hearing officer, the

transcript of the testimony in the final hearing or investigation, or of a

particular witness, or of a specific part thereof, and carefully compared by

him with his original notes, and to be a correct statement of the evidence

and proceedings had on the final hearing or investigation so purporting to

be taken and transcribed, may be received in evidence with the same effect

as if the stenographer had been present and testified to the facts so certified.

2. A copy of the transcript must be furnished on demand to any party

upon the payment of the fee required for transcripts in courts of record.

Sec. 32. NRS 616D.200 is hereby amended to read as follows:

616D.200 1. If the administrator finds that an employer within the

provisions of NRS 616B.633 has failed to provide and secure

compensation as required by the terms of chapters 616A to 616D,

inclusive, of NRS or that the employer has provided and secured that

compensation but has failed to maintain it, he shall make a determination

thereon and may charge the employer an amount equal to the sum of:

of NRS for the period that the employer was doing business in this state

without providing, securing or maintaining that compensation, but not to

from the time that the premiums should have been paid.

2. The administrator shall deliver a copy of his determination to the

employer. An employer who is aggrieved by the determination of the

administrator may appeal from the determination pursuant to subsection 2

of NRS 616D.220.

3. Any employer within the provisions of NRS 616B.633 who fails to

provide, secure or maintain compensation as required by the terms of

chapters 616A to 616D, inclusive, of NRS, is:

(a) For the first offense, guilty of a misdemeanor.

(b) For a second or subsequent offense committed within 7 years after

the previous offense, guilty of a category C felony and shall be punished as

provided in NRS 193.130.

Any criminal penalty imposed must be in addition to the amount charged

pursuant to subsection 1.

Sec. 33. NRS 616D.210 is hereby amended to read as follows:

616D.210 1. Any person who:

(a) Is the legal or beneficial owner of 25 percent or more of a business

the system or a private carrier and becomes, or induces or procures anotherperson to become, the legal or beneficial owner of 25 percent or more of a

new business engaging in similar operations; or

(b) Knowingly aids or abets another person in carrying out such

conduct,

is liable in a civil action for the payment of any premium, interest and

penalties owed to the system or the private carrier and the reasonable costs

incurred by the system or private carrier to investigate and act upon such

conduct.

2. The system or private carrier shall not insure any business which

engages in the conduct described in subsection 1 unless the premium and

3. As used in this section, "business" includes, but is not limited to, a

firm, sole proprietorship, voluntary association or private corporation.

Sec. 34. NRS 616D.220 is hereby amended to read as follows:

616D.220 1. If the administrator finds that any employer or any

employee, officer or agent of any employer has knowingly:

(a) Made a false statement or has knowingly failed to report a material

fact concerning the amount of payroll upon which a premium is based; or

(b) Misrepresented the classification or duties of an employee,

he shall make a determination thereon and charge the employer's account

2. An employer who is aggrieved by the determination of the

administrator may appeal from the determination by filing a request for a

hearing. The request must be filed within 30 days after the date on which a

copy of the determination was delivered to the employer. The administrator

shall hold a hearing within 30 days after he receives the request. The

determination of the administrator made pursuant to a hearing is a final

decision for the purposes of judicial review. The amount of the

determination as finally decided by the administrator becomes due within

30 days after the determination is served on the employer.

3. A person who knowingly:

(a) Makes a false statement or representation or who knowingly fails to

report a material fact concerning the amount of payroll upon which a

premium is based; or

(b) Misrepresents the classification or duties of an employee,

is guilty of a gross misdemeanor. Any criminal penalty imposed must be in

addition to the amount charged pursuant to subsection 1.

Sec. 35. NRS 617.105 is hereby amended to read as follows:

617.105 Any real estate licensee doing business in this state and

Sec. 36. NRS 617.207 is hereby amended to read as follows:

617.207 1. If a quasi-public or private corporation or limited-liability

company is required to be insured pursuant to this chapter, an officer of the

corporation or a manager of the company who:

(a) Receives pay for service performed shall be deemed for the purposes

(b) Does not receive pay for services performed shall be deemed for the

purposes of this chapter to receive a minimum pay of $500 per month or

2. An officer or manager who does not receive pay for services

performed may elect to reject coverage by filing written notice thereof with

the corporation or company and the insurer. The rejection is effective upon

receipt of the notice by the insurer.

3. An officer or manager who has rejected coverage may rescind that

rejection by filing written notice thereof with the corporation or company

and the insurer. The rescission is effective upon receipt of the notice by the

insurer.

Sec. 37. NRS 617.401 is hereby amended to read as follows:

employers' claim fund if:

(a) He was hired in this state or he is regularly employed in this state;

(b) He contracts an occupational disease as a result of work performed

in this state;

(c) He files a claim for compensation with the division; and

(d) He makes an irrevocable assignment to the division of a right to be

subrogated to the rights of the employee pursuant to NRS 616C.215.

division shall immediately notify the employer of the claim.

proving that he provided mandatory coverage for occupational diseases for

the employee or that he was not required to maintain industrial insurance

required by the provisions of this chapter is liable for all payments made on

his behalf, including, but not limited to, any benefits, administrative costs

or attorney's fees paid from the uninsured employers' claim fund or

incurred by the division.

(a) May recover from the employer the payments made by the division

civil action in district court.

(b) In any civil action brought against the employer, is not required to

prove that negligent conduct by the employer was the cause of the

occupational disease.

(c) May enter into a contract with any person to assist in the collection

of any liability of an uninsured employer.

(d) In lieu of a civil action, may enter into an agreement or settlement

regarding the collection of any liability of an uninsured employer.

(a) Determine whether the employer was insured within 30 days after

receiving the claim from the employee.

is rendered to the hearings division of the department of administration inthe manner provided by NRS 616C.305 and 616C.315 to 616C.385,

inclusive.

pursuant to this chapter, and are entitled to a proportionate amount of any

collection made pursuant to this section as an offset against future

liabilities.

paid on his claims from the uninsured employers' claim fund. The interest

must be calculated at a rate equal to the prime rate at the largest bank in

Nevada, as ascertained by the commissioner of financial institutions, on

January 1 or July 1, as the case may be, immediately preceding the date of

the claim, plus 3 percent, compounded monthly, from the date the claim is

paid from the fund until payment is received by the division from the

employer.

section must be:

(a) If a private attorney is retained by the division, paid at the usual and

customary rate for that attorney.

(b) If the attorney is an employee of the division, paid at the rate

established by regulations adopted by the division.

Any money collected must be deposited to the uninsured employers' claim

fund.

the administrator may impose an administrative fine of not more than

$10,000 against an employer if the employer fails to provide mandatory

coverage required by the provisions of this chapter.

Sec. 38. NRS 209.189 is hereby amended to read as follows:

209.189 1. The fund for prison industries is hereby created as an

enterprise fund to receive all revenues derived from programs for

vocational training and employment of offenders and the operation of the

prison farm and to receive all revenues raised by the department from

private employers for the leasing of space, facilities or equipment within

the institutions or facilities of the department of prisons.

2. Money in the fund must be maintained in separate budgetary

accounts, including at least one account for industrial programs and one for

the prison farm.

3. Subject to the approval of the state board of examiners, the director

may expend money deposited in this fund for the promotion and

development of these programs and the prison farm. The director shall

the modified program of industrial insurance adopted pursuant to NRS

616B.185.

4. The interest and income earned on the money in the fund, after

deducting any applicable charges, must be credited to the fund. 5. If money owed to the department for the leasing of space, facilities

or equipment within the institutions or facilities of the department or for the

purchase of goods or services, which must be deposited into the fund for

prison industries pursuant to subsection 1, is not paid on or before the date

due, the department shall charge and collect, in addition to the money due,

interest on the money due at the rate of 1.5 percent per month or fraction

thereof from the date on which the money became due until the date of

payment.

Sec. 39. NRS 280.270 is hereby amended to read as follows:

280.270 The county auditor or comptroller of a county in which a

Sec. 40. NRS 680A.200 is hereby amended to read as follows:

an insurer's certificate of authority if he finds after a hearing thereon, or

upon waiver of hearing by the insurer, that the insurer has:

(a) Violated or failed to comply with any lawful order of the

commissioner;

(b) Conducted his business in an unsuitable manner;

(c) Willfully violated or willfully failed to comply with any lawful

regulation of the commissioner; or

(d) Violated any provision of this code other than one for violation of

which suspension or revocation is mandatory.

In lieu of such a suspension or revocation, the commissioner may levy upon

the insurer, and the insurer shall pay forthwith, an administrative fine of not

more than $2,000 for each act or violation.

2. Except as otherwise provided in chapter 696B of NRS, the

commissioner shall suspend or revoke an insurer's certificate of authority

on any of the following grounds if he finds after a hearing thereon that the

insurer:

(a) Is in unsound condition, is being fraudulently conducted, or is in

such a condition or is using such methods and practices in the conduct of its

business as to render its further transaction of insurance in this state

currently or prospectively hazardous or injurious to policyholders or to the

public.

(b) With such frequency as to indicate its general business practice in

this state:

(1) Has without just cause failed to pay, or delayed payment of,

claims arising under its policies, whether the claims are in favor of an

insured or in favor of a third person with respect to the liability of an

insured to the third person; or

(2) Without just cause compels insureds or claimants to accept less

than the amount due them or to employ attorneys or to bring suit against the

insurer or such an insured to secure full payment or settlement of such

claims. (c) Refuses to be examined, or its directors, officers, employees or

representatives refuse to submit to examination relative to its affairs, or to

produce its books, papers, records, contracts, correspondence or other

documents for examination by the commissioner when required, or refuse

to perform any legal obligation relative to the examination.

(d) Except as otherwise provided in NRS 681A.110, has reinsured all its

risks in their entirety in another insurer.

(e) Has failed to pay any final judgment rendered against it in this state

upon any policy, bond, recognizance or undertaking as issued or guaranteed

by it, within 30 days after the judgment became final or within 30 days after

dismissal of an appeal before final determination, whichever date is the

later.

3. The commissioner may, without advance notice or a hearing

thereon, immediately suspend the certificate of authority of any insurer as

to which proceedings for receivership, conservatorship, rehabilitation or

other delinquency proceedings have been commenced in any state by the

public officer who supervises insurance for that state.

4. No proceeding to suspend, limit or revoke a certificate of authority

pursuant to this section may be maintained unless it is commenced by the

giving of notice to the insurer within 5 years after the occurrence of the

charged act or omission. This limitation does not apply if the commissioner

finds fraudulent or willful evasion of taxes.

Sec. 41. Section 11 of Senate Bill No. 92 of this session is hereby

amended to read as follows:

Sec. 42. Section 15 of Senate Bill No. 92 of this session is hereby

amended to read as follows:

Sec. 43. Section 41 of Senate Bill No. 92 of this session is hereby

amended to read as follows:

Sec. 44. Section 43 of Senate Bill No. 92 of this session is hereby

amended to read as follows:

Sec. 45. Section 1 of Senate Bill No. 175 of this session is hereby

amended to read as follows:

Sec. 46. Senate Bill No. 175 of this session is hereby amended by

adding thereto a new section designated sec. 2, following section 1, to read

as follows:

Sec. 47. 1. NRS 616A.235, 616B.218, 616B.389 and 616C.535 are

hereby repealed.

2. NRS 616B.230 is hereby repealed.

Sec. 48. 1. This section and sections 2, 5 to 9, inclusive, 11, 14, 19

to 24, inclusive, 26 to 32, inclusive, 34, 35, 36, 38, 39, 40 to 46, inclusive,

and subsection 1 of section 47 of this act become effective on July 1, 1999.

2. Sections 1, 3, 4, 10, 12, 15, 16, 17, 18, 25, 33, 37 and subsection 2

of section 47 of this act become effective at 12:01 a.m. on July 1, 1999.

3. Section 13 of this act becomes effective at 12:02 a.m. on July 1,

1999.