Senate Bill No. 495–Committee on Commerce and Labor
(On Behalf of Budget Division)
March 19, 1999
____________
Referred to Committee on Commerce and Labor
SUMMARY—Makes various changes to provisions governing industrial insurance for industrial injuries and occupational diseases. (BDR 53-1382)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: Yes.
~
EXPLANATION – Matter in
bolded italics is new; matter between brackets
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
1-1
Section 1. NRS 616A.465 is hereby amended to read as follows: 616A.465 1. Except as otherwise provided in this section, the1-3
division shall:1-4
(a) Regulate insurers pursuant to chapters 616A to 617, inclusive, of1-5
NRS;2-1
(b) Investigate insurers regarding compliance with statutes and the2-2
division’s regulations2-3
(c) Determine whether an employee leasing company is entitled to a2-4
certificate of registration pursuant to NRS 616B.673; and2-5
(d) Regulate employee leasing companies pursuant to the provisions2-6
of NRS 616B.670 to 616B.697, inclusive.2-7
2. The commissioner is responsible for reviewing rates, investigating2-8
the solvency of insurers, authorizing private carriers pursuant to chapter2-9
680A of NRS and certifying:2-10
(a) Self-insured employers pursuant to NRS 616B.300 to 616B.330,2-11
inclusive, and 616B.336;2-12
(b) Associations of self-insured public or private employers pursuant to2-13
NRS 616B.350 to 616B.446, inclusive; and2-14
(c) Third-party administrators pursuant to chapter 683A of NRS.2-15
3. The department of administration is responsible for contested claims2-16
relating to industrial insurance pursuant to NRS 616C.310 to 616C.385,2-17
inclusive. The administrator is responsible for administrative appeals2-18
pursuant to NRS 616B.215.2-19
4. The Nevada attorney for injured workers is responsible for legal2-20
representation of claimants pursuant to NRS 616A.435 to 616A.460,2-21
inclusive, and 616D.120.2-22
5. The division is responsible for the investigation of complaints. If a2-23
complaint is filed with the division, the administrator shall cause to be2-24
conducted an investigation which includes a review of relevant records and2-25
interviews of affected persons. If the administrator determines that a2-26
violation may have occurred, the administrator shall proceed in accordance2-27
with the provisions of NRS 616D.120 and 616D.130.2-28
Sec. 2. Chapter 616B of NRS is hereby amended by adding thereto a2-29
new section to read as follows:2-30
An insurer shall not issue a policy of industrial insurance to an2-31
employer that does not cover each employee of that employer who2-32
satisfies the definition of employee set forth in NRS 616A.105 to2-33
616A.225, inclusive.2-34
Sec. 3. NRS 616B.039 is hereby amended to read as follows: 616B.0392-36
services performed, the maximum amount paid to any one employee2-37
during the year in which a policy of industrial insurance is effective shall2-38
be deemed to be $36,000 .2-39
2-40
Sec. 4. NRS 616B.086 is hereby amended to read as follows: 616B.086 1. Except as otherwise provided in subsection 3, all2-42
premiums, contributions, penalties, bonds, securities and all other3-1
properties received, collected or acquired by the system pursuant to the3-2
terms of chapters 616A to 616D, inclusive, of NRS:3-3
(a) Must be credited on the records of the system to the state insurance3-4
fund.3-5
(b) Constitute, for the purpose of custody thereof, the state insurance3-6
fund, which must be held by the manager as custodian thereof for the3-7
benefit of employees and their dependents within the provisions of chapters3-8
616A to 616D, inclusive, of NRS. The manager is liable on his official3-9
bond for the faithful performance of his custodial duty.3-10
2. The commissioner or the administrator may delegate to a hearing3-11
officer or panel his authority to take any disciplinary action pursuant to3-12
NRS 616B.318, 616B.321, 616B.350 to 616B.446, inclusive, 616B.463,3-13
616B.472 or 616D.120, impose and collect administrative fines pursuant to3-14
those sections and deposit the money in the fund for workers’3-15
compensation and safety.3-16
3. If a hearing officer or panel is not authorized to take disciplinary3-17
action pursuant to subsection 2 and the commissioner or the administrator3-18
deposits the money collected from the imposition of administrative fines3-19
with the state treasurer for credit to the state general fund, he may present a3-20
claim to the state board of examiners for recommendation to the interim3-21
finance committee if money is needed to pay attorney’s fees or the costs of3-22
an investigation, or both.3-23
Sec. 5. NRS 616B.095 is hereby amended to read as follows: 616B.095 If the provisions of NRS3-25
3-26
fund, or the provisions of chapters 616A to 616D, inclusive, of NRS3-27
making the compensation to the workman provided in those chapters3-28
exclusive of any other remedy on the part of the workman, shall be held3-29
invalid, each of those chapters shall be thereby invalidated, except the3-30
provisions of NRS 616B.101, and an accounting according to the justice of3-31
the case shall be had on moneys received. In other respects an adjudication3-32
of invalidity of any part of this chapter or chapter 616A, 616C or 616D of3-33
NRS shall not affect the validity of any of those chapters as a whole or any3-34
part thereof.3-35
Sec. 6. NRS 616B.104 is hereby amended to read as follows: 616B.104 1. Notwithstanding the provisions of chapter 355 of NRS3-37
or of any other law, the manager may invest and reinvest any money in the3-38
funds of the system deemed available for investment3-39
pursuant to NRS 616B.1073-40
may employ investment counsel for that purpose.3-41
2. The provisions of this section and NRS 616B.1073-42
3-43
in accordance with the provisions of chapter 355 of NRS.4-1
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 in4-3
securities or who has a direct pecuniary interest in any such business who4-4
receives commissions for transactions performed as an agent for the system4-5
is eligible for employment as investment counsel for the system.4-6
2. The manager shall not engage investment counsel unless:4-7
(a) The principal business of the person selected by the manager consists4-8
of rendering investment supervisory services, that is, the giving of4-9
continuous advice as to the investment of money on the basis of the4-10
individual needs of each client;4-11
(b) The person and his predecessors have been continuously engaged in4-12
such business for a period of 3 or more years, and, if a firm or corporation,4-13
the senior management personnel of the firm or corporation have an4-14
average of 10 years professional experience as investment managers;4-15
(c) The person as of the time originally hired, has at least $250,000,0004-16
of assets under management contract, exclusive of any assets related to4-17
governmental agencies in this state;4-18
(d) The person is registered as an investment adviser under the laws of4-19
the United States as from time to time in effect, or is a bank or an4-20
investment management subsidiary of a bank;4-21
(e) The contract between the system and the investment counsel is of no4-22
specific duration and is voidable at any time by either party; and4-23
(f) The person has been approved by the state board of finance for4-24
employment as investment counsel.4-25
3. More than one investment counsel may be employed in the4-26
discretion of the manager.4-27
4. The expense of such employment must be paid from the state4-28
insurance fund.4-29
5. Any investment program adopted by the system and all investments4-30
made thereunder must be reported quarterly in writing by the manager to4-31
the state board of finance, and the report is subject to review by the state4-32
board of finance. The state board of finance may require the manager to4-33
provide further reports and may recommend modifications in the4-34
investment program, including replacement of the investment counsel. If,4-35
after a reasonable time, the manager has not taken suitable corrective action4-36
in response to recommendations by the state board of finance, the state4-37
board of finance may direct the manager to carry out its recommendations4-38
in a manner acceptable to the state board of finance. Any directives from4-39
the state board of finance must be in writing.4-40
6. With the approval of the state board of finance, the manager may4-41
designate the bank or banks which shall have the custody of the various4-42
investments4-43
pursuant to this section.5-1
7. The system may accept due bills from brokers upon delivery of5-2
warrants if the certificates representing the investments are not readily5-3
available.5-4
Sec. 8. NRS 616B.185 is hereby amended to read as follows: 616B.185 1. Any offender confined at the state prison, while engaged5-6
in work in a prison industry or work program, whether the program is5-7
operated by an institution of the department of prisons, by contract with a5-8
public entity or by a private employer, is entitled to coverage under the5-9
modified program of industrial insurance established by regulations5-10
adopted by the5-11
prisons5-12
regulations, and coverage is approved by the system5-13
2. An offender is limited to the rights and remedies established by the5-14
provisions of the modified program of industrial insurance established by5-15
regulations adopted by the5-16
to any rights and remedies established by the provisions of chapters 616A5-17
to 617, inclusive, of NRS.5-18
3. The5-19
prisons and the risk management division of the department of5-20
administration, adopt regulations setting forth a modified program of5-21
industrial insurance to provide offenders with industrial insurance against5-22
personal injuries arising out of and in the course of their work in a prison5-23
industry or work program.5-24
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 other5-26
local detention facility, while engaged in work in a work program directed5-27
by the administrator of the jail or other detention facility, whether the work5-28
program is operated by contract with a public entity or by a private5-29
employer, may receive coverage under the modified program of industrial5-30
insurance established by regulations adopted by the division if the5-31
administrator of the jail or other detention facility5-32
5-33
approved by the system or a private carrier.5-34
2. An offender is limited to the rights and remedies established by the5-35
provisions of the modified program of industrial insurance established by5-36
regulations adopted by the division. The offender is not entitled to any5-37
rights and remedies established by the provisions of chapters 616A to 617,5-38
inclusive, of NRS.5-39
3. The division, in cooperation with the various administrators of jails5-40
and other detention facilities, shall adopt regulations setting forth a5-41
modified program of industrial insurance to provide offenders with5-42
industrial insurance against personal injuries arising out of and in the5-43
course of their work in a work program.6-1
4. As used in this section, "administrator of the jail or other detention6-2
facility" means the sheriff of a county jail, chief of police of a city jail or6-3
director of a local detention facility.6-4
Sec. 10. NRS 616B.211 is hereby amended to read as follows: 616B.2116-6
6-7
6-8
the system as small employers pursuant to chapters 616A to 616D,6-9
inclusive, or6-10
manager may, with the approval of the commissioner, determine and fix the6-11
premium rates of those employers pursuant to the plan.6-12
Sec. 11. NRS 616B.212 is hereby amended to read as follows: 616B.2126-14
6-15
6-16
for classifying employers insured by the system who, because of the risks6-17
inherent in the businesses in which the employers are engaged, are6-18
reasonably likely to incur a greater number of claims for compensation6-19
pursuant to chapters 616A to 616D, inclusive, or6-20
Upon establishing such a plan, the manager may, with the approval of the6-21
commissioner, determine and fix the premium rates of those employers.6-22
Sec. 12. NRS 616B.224 is hereby amended to read as follows: 616B.224 1. Every private or public employer who is not a self-6-24
insured employer or a member of an association of self-insured public or6-25
private employers shall, at intervals and on or before dates established by6-26
his insurer, furnish the insurer with6-27
(a) A true and accurate payroll showing:6-28
6-29
6-30
pursuant to 26 U.S.C. § 6053(a) whose tips in cash totaled $20 or more;6-31
and6-32
6-33
requirements of the commissioner6-34
6-35
(b) Any premium due pursuant to the terms of the policy of industrial6-36
insurance.6-37
The payroll reports and any premium6-38
insurer on6-39
.6-40
6-41
6-42
7-1
7-2
section7-3
616D, inclusive, of NRS, effective7-4
7-5
subsection 1. The insurer shall notify the administrator of each such7-6
rejection.7-7
7-8
7-9
7-10
7-11
7-12
7-13
first-class mail of any failure on his part to comply with the provisions of7-14
this section. The notice or its omission does not modify or waive the7-15
requirements or effective rejection of chapters 616A to 616D, inclusive,7-16
and 617 of NRS as otherwise provided in those chapters.7-17
7-18
the premiums which are due for the failure of an employer insured by the7-19
system to submit the information and premium required in subsection 17-20
within the time allowed, unless the employer has applied for and been7-21
granted an extension of that time by the manager.7-22
7-23
vigorously pursue the collection of premiums that are due under the7-24
provisions of chapters 616A to 616D, inclusive, and 617 of NRS even if an7-25
employer’s debts have been discharged in a bankruptcy proceeding.7-26
6. Every employer insured by the system shall pay its premiums to7-27
the state insurance fund. All money received by the system pursuant to7-28
this section must be deposited with the state treasurer to the credit of the7-29
state insurance fund.7-30
Sec. 13. NRS 616B.386 is hereby amended to read as follows: 616B.386 1. If an employer wishes to become a member of an7-32
association of self-insured public or private employers, the employer must:7-33
(a) Submit an application for membership to the board of trustees or7-34
third-party administrator of the association; and7-35
(b) Enter into an indemnity agreement as required by NRS 616B.353.7-36
2. The membership of the applicant becomes effective when each7-37
member of the association approves the application or on a later date7-38
specified by the association. The application for membership and the action7-39
taken on the application must be maintained as permanent records of the7-40
board of trustees.7-41
3. Each member who is a member of an association during the 127-42
months immediately following the formation of the association must:7-43
(a) Have a tangible net worth of at least $500,000; or8-1
(b) Have had a reported payroll for the previous 12 months which would8-2
have resulted in a manual premium of at least $15,000, calculated in8-3
accordance with a manual prepared pursuant to subsection 4 of NRS8-4
686B.1765.8-5
4. An employer who seeks to become a member of the association after8-6
the 12 months immediately following the formation of the association must8-7
meet the requirement set forth in paragraph (a) or (b) of subsection 3 unless8-8
the commissioner adjusts the requirement for membership in the8-9
association after conducting an annual review of the actuarial solvency of8-10
the association pursuant to subsection 1 of NRS 616B.353.8-11
5. An association of self-insured private employers may apply to the8-12
commissioner for authority to determine the amount of tangible net worth8-13
and manual premium that an employer must have to become a member of8-14
the association. The commissioner shall approve the application if the8-15
association:8-16
(a) Has been certified to act as an association for at least the 38-17
consecutive years immediately preceding the date on which the association8-18
filed the application with the commissioner;8-19
(b) Has a combined tangible net worth of all members in the association8-20
of at least $5,000,000;8-21
(c) Has at least 15 members; and8-22
(d) Has not been required to meet informally with the commissioner8-23
pursuant to subsection 1 of NRS 616B.431 during the 18-month period8-24
immediately preceding the date on which the association filed the8-25
application with the commissioner or, if the association has been required8-26
to attend such a meeting during that period, has not had its certificate8-27
withdrawn before the date on which the association filed the application.8-28
6. An association of self-insured private employers may apply to the8-29
commissioner for authority to determine the documentation demonstrating8-30
solvency that an employer must provide to become a member of the8-31
association. The commissioner shall approve the application if the8-32
association:8-33
(a) Has been certified to act as an association for at least the 38-34
consecutive years immediately preceding the date on which the association8-35
filed the application with the commissioner;8-36
(b) Has a combined tangible net worth of all members in the association8-37
of at least $5,000,000; and8-38
(c) Has at least 15 members.8-39
7. The commissioner may withdraw his approval of an application8-40
submitted pursuant to subsection 5 or 6 if he determines the association has8-41
ceased to comply with any of the requirements set forth in subsection 5 or8-42
6, as applicable.9-1
8.9-2
association may terminate his membership at any time. To terminate his9-3
membership, a member must submit to the association’s administrator a9-4
notice of intent to withdraw from the association at least 120 days before9-5
the effective date of withdrawal. The association’s administrator shall,9-6
within 10 days after receipt of the notice, notify the commissioner of the9-7
employer’s intent to withdraw from the association.9-8
9. The members of an association may cancel the membership of any9-9
member of the association in accordance with the bylaws of the association.9-10
10. The association shall:9-11
(a) Within 30 days after the addition of an employer to the membership9-12
of the association, notify the commissioner of the addition and:9-13
(1) If the association has not received authority from the9-14
commissioner pursuant to subsection 5 or 6, as applicable, provide to the9-15
commissioner all information and assurances for the new member that were9-16
required from each of the original members of the association upon its9-17
organization; or9-18
(2) If the association has received authority from the commissioner9-19
pursuant to subsection 5 or 6, as applicable, provide to the commissioner9-20
evidence that is satisfactory to the commissioner that the new member is a9-21
member or associate member of the bona fide trade association as required9-22
pursuant to paragraph (a) of subsection 2 of NRS 616B.350, a copy of the9-23
indemnity agreement that jointly and severally binds the new member, the9-24
other members of the association and the association that is required to be9-25
executed pursuant to paragraph (a) of subsection 1 of NRS 616B.353 and9-26
any other information the commissioner may reasonably require to9-27
determine whether the amount of security deposited with the commissioner9-28
pursuant to paragraph (d) or (e) of subsection 1 of NRS 616B.353 is9-29
sufficient, but such information must not exceed the information required to9-30
be provided to the commissioner pursuant to subparagraph (1);9-31
(b) Notify the commissioner and the administrator of the termination or9-32
cancellation of the membership of any member of the association within 109-33
days after the termination or cancellation; and9-34
(c) At the expense of the member whose membership is terminated or9-35
canceled, maintain coverage for that member for 30 days after notice is9-36
given pursuant to paragraph (b), unless the association first receives notice9-37
from the administrator that the member has:9-38
(1) Become insured by the system;9-39
(2) Been certified as a self-insured employer pursuant to NRS9-40
616B.312;9-41
(3) Become a member of another association of self-insured public or9-42
private employers; or9-43
(4) Become insured by a private carrier.10-1
11. If a member of an association changes his name or form of10-2
organization, the member remains liable for any obligations incurred or any10-3
responsibilities imposed pursuant to chapters 616A to 617, inclusive, of10-4
NRS under his former name or form of organization.10-5
12. An association is liable for the payment of any compensation10-6
required to be paid by a member of the association pursuant to chapters10-7
616A to 616D, inclusive, or10-8
membership. The insolvency or bankruptcy of a member does not relieve10-9
the association of liability for the payment of the compensation.10-10
Sec. 14. NRS 616B.407 is hereby amended to read as follows: 616B.407 1. Except as otherwise provided in subsection 2, the10-12
annual assessment required to be paid by each member of an association of10-13
self-insured public or private employers must be10-14
10-15
(a) Calculated by a rate service organization that is licensed pursuant10-16
to chapter 686B of NRS; and10-17
(b) Based on the premium rate for the standard industrial classification10-18
of that member, adjusted by the member’s individual experience.10-19
If approved by the commissioner, payments of assessments may be reduced10-20
by an amount based on the association’s level of expenses and loss10-21
experience.10-22
2. If approved by the commissioner, an association may calculate the10-23
annual assessment required to be paid by each member of the association.10-24
An assessment calculated by the association must be based on at least 510-25
years of the member’s individual experience.10-26
Sec. 15. NRS 616B.463 is hereby amended to read as follows: 616B.463 1. Before a private carrier may provide industrial10-28
insurance pursuant to chapters 616A to 617, inclusive, of NRS, the private10-29
carrier must be authorized by the commissioner pursuant to chapter 680A10-30
of NRS and maintain such security of the kind described in NRS 680A.12010-31
and 680A.140 as may be required.10-32
2. A private carrier shall not provide industrial insurance pursuant to10-33
chapters 616A to 617, inclusive, of NRS as an unauthorized insurer10-34
pursuant to subsection 9 of NRS 680A.070.10-35
3. A private carrier that is authorized by the commissioner to provide10-36
industrial insurance pursuant to subsection 1:10-37
(a) Constitutes an authorized insurer, as that term is defined in NRS10-38
679A.030; and10-39
(b) Is subject to the provisions of Title 57 of NRS that govern10-40
authorized insurers.10-41
Sec. 16. NRS 616B.472 is hereby amended to read as follows: 616B.472 1. The commissioner shall suspend the authorization of a10-43
private carrier to provide industrial insurance for 1 year if , after a hearing11-1
thereon, the commissioner finds that the private carrier has intentionally or11-2
repeatedly failed to comply with the provisions of chapters 616A to 616D,11-3
inclusive, or11-4
11-5
11-6
11-7
11-8
11-9
11-10
11-11
11-12
11-13
11-14
11-15
11-16
11-17
11-18
11-19
2. A hearing to determine whether the authorization of a private11-20
carrier to provide industrial insurance will be suspended pursuant to11-21
subsection 1 must be conducted by the commissioner pursuant to the11-22
provisions of NRS 679B.310 to 679B.370, inclusive, the regulations11-23
adopted pursuant thereto and the provisions of chapter 233B of NRS11-24
concerning adjudication of contested cases. A record of the hearing must11-25
be kept but it need not be transcribed unless requested by the private11-26
carrier. The cost of transcription must be charged to the private carrier.11-27
11-28
11-29
11-30
11-31
11-32
11-33
11-34
11-35
11-36
Sec. 17. NRS 616B.612 is hereby amended to read as follows: 616B.612 1. Every employer within the provisions of chapters 616A11-38
to 616D, inclusive, or 617 of NRS, and those employers who accept the11-39
terms of those chapters and are governed by their provisions, shall provide11-40
and secure compensation according to the terms, conditions and provisions11-41
of those chapters for any personal injuries by accident sustained by an11-42
employee arising out of and in the course of the employment.12-1
2. Travel for which an employee receives wages shall, for the purposes12-2
of chapters 616A to 616D, inclusive, of NRS, be deemed in the course of12-3
employment.12-4
3. In such cases the employer or any insurer of the employer is relieved12-5
from other liability for recovery of damages or other compensation for12-6
those personal injuries unless otherwise provided by the terms of chapters12-7
616A to 616D, inclusive, of NRS.12-8
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-12-10
liability company is required to be insured pursuant to chapters 616A to12-11
616D, inclusive, of NRS, an officer of the corporation or a manager of the12-12
company who:12-13
(a) Receives pay for services performed as an officer, manager or12-14
employee of the corporation or company shall be deemed for the purposes12-15
of those chapters to receive a minimum pay of $6,000 per12-16
the policy of industrial insurance for the employer is effective and a12-17
maximum pay of $36,000 per12-18
insurance is effective.12-19
(b) Does not receive pay for services performed as an officer, manager12-20
or employee of the corporation or company shall be deemed for the12-21
purposes of those chapters to receive a minimum pay of $500 per month or12-22
$6,000 per12-23
effective.12-24
2. An officer or manager who does not receive pay for services12-25
performed as an officer, manager or employee of the corporation or12-26
company may elect to reject coverage by filing written notice thereof with12-27
the corporation or company and the insurer. The rejection is effective upon12-28
receipt of the notice by the insurer.12-29
3. An officer or manager who has rejected coverage may rescind that12-30
rejection by filing written notice thereof with the corporation or company12-31
and the insurer. The rescission is effective upon receipt of the notice by the12-32
insurer. If an officer or manager who has rejected coverage receives pay for12-33
services performed as an officer, manager or employee of the corporation12-34
or company, the officer or manager shall be deemed to have rescinded that12-35
rejection.12-36
4. A nonprofit corporation whose officers do not receive pay for12-37
services performed as officers or employees of the corporation may elect to12-38
reject coverage for its current officers and all future officers who do not12-39
receive such pay by filing written notice thereof with the corporation and12-40
the insurer. The rejection is effective upon receipt of the notice by the12-41
insurer.12-42
5. A nonprofit corporation which has rejected coverage for its officers12-43
who do not receive pay for services performed as officers or employees of13-1
the corporation may rescind that rejection by filing written notice thereof13-2
with the corporation and the insurer. The rescission is effective upon13-3
receipt of the notice by the insurer. If an officer of a nonprofit corporation13-4
which has rejected coverage receives pay for services performed as an13-5
officer or employee of the corporation, the corporation shall be deemed to13-6
have rescinded that rejection.13-7
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 the13-9
context otherwise requires:13-10
1. "Applicant" means a person seeking a certificate of13-11
registration pursuant to NRS 616B.670 to 616B.697, inclusive, to operate13-12
an employee leasing company.13-13
2. "Client company" means a company which leases employees, for a13-14
fee, from an employee leasing company pursuant to a written or oral13-15
agreement.13-16
3. "Employee leasing company" means a company which, pursuant to a13-17
written or oral agreement:13-18
(a) Places any of the regular, full-time employees of a client company on13-19
its payroll and, for a fee, leases them to the client company on a regular13-20
basis without any limitation on the duration of their employment; or13-21
(b) Leases to a client company:13-22
(1) Five or more part-time or full-time employees; or13-23
(2) Ten percent or more of the total number of employees within a13-24
classification of risk established by the13-25
Sec. 20. NRS 616B.673 is hereby amended to read as follows: 616B.673 1. A person shall not operate an employee leasing13-27
company in this state unless he has complied with the provisions of NRS13-28
616B.670 to 616B.697, inclusive. The13-29
a certificate of13-30
with the provisions of NRS 616B.670 to 616B.697, inclusive.13-31
2. Any person who violates the provisions of subsection 1 is guilty of a13-32
misdemeanor.13-33
3. Each certificate of13-34
administrator pursuant to NRS 616B.670 to 616B.697, inclusive, expires 113-35
year after it is issued unless renewed before that date.13-36
Sec. 21. NRS 616B.676 is hereby amended to read as follows: 616B.676 An applicant for the issuance or renewal of a certificate of13-38
13-39
written application upon a form provided by the13-40
Sec. 22. NRS 616B.679 is hereby amended to read as follows: 616B.679 1. Each application must include:13-42
(a) The applicant’s name and title of his position with the employee13-43
leasing company.14-1
(b) The applicant’s age, place of birth and social security number.14-2
(c) The applicant’s address.14-3
(d) The business address of the employee leasing company.14-4
(e) The business address of the resident agent of the employee leasing14-5
company, if the applicant is not the resident agent.14-6
(f) If the applicant is a:14-7
(1) Partnership, the name of the partnership and the name, address,14-8
age, social security number and title of each partner.14-9
(2) Corporation, the name of the corporation and the name, address,14-10
age, social security number and title of each officer of the corporation.14-11
(g) Proof of:14-12
(1) The payment of any taxes required by chapter 364A of NRS.14-13
(2) The payment of any premiums for industrial insurance required by14-14
chapters 616A to 617, inclusive, of NRS.14-15
(3) The payment of contributions or payments in lieu of contributions14-16
required by chapter 612 of NRS.14-17
(4) Insurance coverage for any benefit plan from an insurer14-18
authorized pursuant to Title 57 of NRS that is offered by the employee14-19
leasing company to its employees.14-20
14-21
14-22
(h) Any other information the14-23
2. Each application must be notarized and signed under penalty of14-24
perjury:14-25
(a) If the applicant is a sole proprietorship, by the sole proprietor.14-26
(b) If the applicant is a partnership, by each partner.14-27
(c) If the applicant is a corporation, by each officer of the corporation.14-28
3. An applicant shall submit to the14-29
change in the information required by this section within 30 days after the14-30
change occurs. The14-31
14-32
comply with the provisions of14-33
14-34
inclusive.14-35
4. If an insurer cancels an employee leasing company’s policy, the14-36
14-37
14-38
The notice must comply with the provisions of NRS 687B.310 to14-39
687B.355, inclusive, and must be served personally on or sent by first-14-40
class mail or electronic transmission to the administrator.14-41
Sec. 23. NRS 616B.694 is hereby amended to read as follows: 616B.694 The14-43
15-1
15-2
may, adopt regulations to carry out the provisions of NRS 616B.670 to15-3
616B.697, inclusive.15-4
Sec. 24. NRS 616B.697 is hereby amended to read as follows: 616B.697 An action for damages caused by the failure of an employee15-6
leasing company to comply with the provisions of NRS 616B.670 to15-7
616B.697, inclusive, may be brought against any person who is required to15-8
sign the application for a certificate of15-9
employee leasing company.15-10
Sec. 25. NRS 616C.220 is hereby amended to read as follows: 616C.220 1. The division shall designate one:15-12
(a) Third-party administrator who has a valid certificate issued by the15-13
commissioner pursuant to NRS 683A.085; or15-14
(b) Insurer, other than a self-insured employer or association of self-15-15
insured public or private employers,15-16
to administer claims against the uninsured employers’ claim fund. The15-17
designation must be made pursuant to reasonable competitive bidding15-18
procedures established by the administrator.15-19
2. An employee may receive compensation from the uninsured15-20
employers’ claim fund if:15-21
(a) He was hired in this state or he is regularly employed in this state;15-22
(b) He suffers an accident or injury in this state which arises out of and15-23
in the course of his employment;15-24
(c) He files a claim for compensation with the division; and15-25
(d) He makes an irrevocable assignment to the division of a right to be15-26
subrogated to the rights of the injured employee pursuant to NRS15-27
616C.215.15-28
15-29
division shall immediately notify the employer of the claim.15-30
15-31
proving that he provided mandatory industrial insurance coverage for the15-32
employee or that he was not required to maintain industrial insurance for15-33
the employee.15-34
15-35
required by the provisions of chapters 616A to 616D, inclusive, of NRS is15-36
liable for all payments made on his behalf, including any benefits,15-37
administrative costs or attorney’s fees paid from the uninsured employers’15-38
claim fund or incurred by the division.15-39
15-40
(a) May recover from the employer the payments made by the division15-41
that are described in subsection15-42
civil action in district court.16-1
(b) In any civil action brought against the employer, is not required to16-2
prove that negligent conduct by the employer was the cause of the16-3
employee’s injury.16-4
(c) May enter into a contract with any person to assist in the collection16-5
of any liability of an uninsured employer.16-6
(d) In lieu of a civil action, may enter into an agreement or settlement16-7
regarding the collection of any liability of an uninsured employer.16-8
16-9
(a) Determine whether the employer was insured within 30 days after16-10
receiving notice of the claim from the employee.16-11
(b) Assign the claim to the16-12
insurer designated pursuant to subsection 1 for administration16-13
16-14
16-15
16-16
Upon determining whether the claim is accepted or denied, the16-17
designated third-party administrator or insurer shall notify the16-18
injured employee, the named employer and the division16-19
16-20
16-21
(c) Upon demonstration of the:16-22
(1) Costs incurred by the designated third-party administrator or16-23
insurer to administer the claim or pay compensation to the injured16-24
employee; or16-25
(2) Amount that the designated third-party administrator or insurer16-26
will pay for administrative expenses or compensation to the injured16-27
employee and that such amounts are justified by the circumstances of the16-28
claim,16-29
the division shall authorize payment from the uninsured employers’16-30
claim fund.16-31
8. Any party aggrieved by a16-32
administration of an assigned claim or a16-33
the division or by the16-34
insurer regarding any claim made pursuant to this section may appeal that16-35
16-36
is rendered to the hearings division of the department of administration in16-37
the manner provided by NRS 616C.305 and 616C.315 to 616C.385,16-38
inclusive.16-39
16-40
pursuant to chapters 616A to 616D, inclusive, of NRS, and are entitled to a16-41
proportionate amount of any collection made pursuant to this section as an16-42
offset against future liabilities.17-1
17-2
paid on his claims from the uninsured employers’ claim fund. The interest17-3
must be calculated at a rate equal to the prime rate at the largest bank in17-4
Nevada, as ascertained by the commissioner of financial institutions, on17-5
January 1 or July 1, as the case may be, immediately preceding the date of17-6
the claim, plus 3 percent, compounded monthly, from the date the claim is17-7
paid from the fund until payment is received by the division from the17-8
employer.17-9
17-10
section must be:17-11
(a) If a private attorney is retained by the division, paid at the usual and17-12
customary rate for that attorney.17-13
(b) If the attorney is an employee of the division, paid at the rate17-14
established by regulations adopted by the division.17-15
Any money collected must be deposited to the uninsured employers’ claim17-16
fund.17-17
17-18
the administrator may impose an administrative fine of not more than17-19
$10,000 against an employer if the employer fails to provide mandatory17-20
coverage required by the provisions of chapters 616A to 616D, inclusive,17-21
of NRS.17-22
Sec. 26. NRS 616C.355 is hereby amended to read as follows: 616C.355 At any time 10 or more days before a scheduled hearing17-24
before an appeals officer, the administrator17-25
17-26
the opposing party any affidavit or declaration which he proposes to17-27
introduce into evidence and notice to the effect that unless the opposing17-28
party, within 7 days after the mailing or delivery of such affidavit or17-29
declaration, mails or delivers to the proponent a request to cross-examine17-30
the affiant or declarant, his right to cross-examine the affiant or declarant is17-31
waived and the affidavit or declaration, if introduced into evidence, will17-32
have the same effect as if the affiant or declarant had given sworn17-33
testimony before the appeals officer, the administrator17-34
17-35
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 a17-37
final decision of an appeals officer, the17-38
administrator or the administrator’s designee, and the petition is found by17-39
the district court to be frivolous or brought without reasonable grounds, the17-40
district court may order costs and a reasonable attorney’s fee to be paid by17-41
the petitioner.18-1
Sec. 28. NRS 616D.050 is hereby amended to read as follows: 616D.050 1. Appeals officers, the administrator18-3
18-4
other proceedings pursuant to the provisions of chapters 616A to 616D,18-5
inclusive, of NRS or regulations adopted pursuant to those chapters may:18-6
(a) Issue subpoenas requiring the attendance of any witness or the18-7
production of books, accounts, papers, records and documents.18-8
(b) Administer oaths.18-9
(c) Certify to official acts.18-10
(d) Call and examine under oath any witness or party to a claim.18-11
(e) Maintain order.18-12
(f) Rule upon all questions arising during the course of a hearing or18-13
proceeding.18-14
(g) Permit discovery by deposition or interrogatories.18-15
(h) Initiate and hold conferences for the settlement or simplification of18-16
issues.18-17
(i) Dispose of procedural requests or similar matters.18-18
(j) Generally regulate and guide the course of a pending hearing or18-19
proceeding.18-20
2. Hearing officers, in conducting hearings or other proceedings18-21
pursuant to the provisions of chapters 616A to 616D, inclusive, of NRS or18-22
regulations adopted pursuant to those chapters, may:18-23
(a) Issue subpoenas requiring the attendance of any witness or the18-24
production of books, accounts, papers, records and documents that are18-25
relevant to the dispute for which the hearing or other proceeding is being18-26
held.18-27
(b) Maintain order.18-28
(c) Permit discovery by deposition or interrogatories.18-29
(d) Initiate and hold conferences for the settlement or simplification of18-30
issues.18-31
(e) Dispose of procedural requests or similar matters.18-32
(f) Generally regulate and guide the course of a pending hearing or18-33
proceeding.18-34
Sec. 29. NRS 616D.070 is hereby amended to read as follows: 616D.070 If any person:18-36
1. Disobeys an order of an appeals officer, a hearing officer, the18-37
administrator18-38
designee, or a subpoena issued by the18-39
administrator, administrator’s designee, appeals officer, hearing officer,18-40
inspector or examiner;18-41
2. Refuses to permit an inspection; or18-42
3. As a witness, refuses to testify to any matter for which he may be18-43
lawfully interrogated,19-1
the district judge of the county in which the person resides, on application19-2
of the appeals officer, the hearing officer, the administrator19-3
19-4
by attachment proceedings as for contempt, as in the case of disobedience19-5
of the requirements of subpoenas issued from the court on a refusal to19-6
testify therein.19-7
Sec. 30. NRS 616D.080 is hereby amended to read as follows: 616D.080 1. Each officer who serves a subpoena is entitled to19-9
receive the same fees as a sheriff.19-10
2. Each witness who appears, in obedience to a subpoena which has19-11
been issued pursuant to this chapter or chapter 616A, 616B or 616C of19-12
NRS, before an appeals officer, a hearing officer, the administrator19-13
19-14
receive for his attendance the fees and mileage provided for witnesses in19-15
civil cases in courts of record. For subpoenas issued on behalf of this19-16
state or an officer or agency thereof, the fees and mileage are not19-17
required to be tendered at the same time that the subpoena is delivered to19-18
the person named therein.19-19
3. The appeals officer, hearing officer, administrator19-20
19-21
(a) Authorize payment from his administrative budget of the fees and19-22
mileage due to such a witness; or19-23
(b) Impose those costs upon the party at whose instance the witness was19-24
subpoenaed or, for good cause shown, upon any other party.19-25
Sec. 31. NRS 616D.100 is hereby amended to read as follows: 616D.100 1. A transcribed copy of the evidence and proceedings, or19-27
any specific part thereof, of any final hearing or investigation, made by a19-28
stenographer appointed by an appeals officer, a hearing officer, the19-29
administrator19-30
designee, being certified by that stenographer to be a true and correct19-31
transcript of the testimony in the final hearing or investigation, or of a19-32
particular witness, or of a specific part thereof, and carefully compared by19-33
him with his original notes, and to be a correct statement of the evidence19-34
and proceedings had on the final hearing or investigation so purporting to19-35
be taken and transcribed, may be received in evidence with the same effect19-36
as if the stenographer had been present and testified to the facts so certified.19-37
2. A copy of the transcript must be furnished on demand to any party19-38
upon the payment of the fee required for transcripts in courts of record.19-39
Sec. 32. NRS 616D.200 is hereby amended to read as follows: 616D.200 1. If the administrator finds that an employer within the19-41
provisions of NRS 616B.633 has failed to provide and secure19-42
compensation as required by the terms of chapters 616A to 616D,19-43
inclusive, of NRS or that the employer has provided and secured that20-1
compensation but has failed to maintain it, he shall make a determination20-2
thereon and may charge the employer an amount equal to the sum of:20-3
(a) The premiums that would otherwise have been owed to the system or20-4
a private carrier pursuant to the terms of chapters 616A to 616D, inclusive,20-5
of NRS for the period that the employer was doing business in this state20-6
without providing, securing or maintaining that compensation, but not to20-7
exceed 6 years; and20-8
(b)20-9
20-10
20-11
from the time that the premiums should have been paid.20-12
The money collected pursuant to this subsection must be paid into the20-13
uninsured employers’ claim fund.20-14
2. The administrator shall deliver a copy of his determination to the20-15
employer. An employer who is aggrieved by the determination of the20-16
administrator may appeal from the determination pursuant to subsection 220-17
of NRS 616D.220.20-18
3. Any employer within the provisions of NRS 616B.633 who fails to20-19
provide, secure or maintain compensation as required by the terms of20-20
chapters 616A to 616D, inclusive, of NRS, is:20-21
(a) For the first offense, guilty of a misdemeanor.20-22
(b) For a second or subsequent offense committed within 7 years after20-23
the previous offense, guilty of a category C felony and shall be punished as20-24
provided in NRS 193.130.20-25
Any criminal penalty imposed must be in addition to the amount charged20-26
pursuant to subsection 1.20-27
Sec. 33. NRS 616D.210 is hereby amended to read as follows: 616D.210 1. Any person who:20-29
(a) Is the legal or beneficial owner of 25 percent or more of a business20-30
which terminates operations while owing a premium , interest or penalty to20-31
the system or a private carrier and becomes, or induces or procures another20-32
person to become, the legal or beneficial owner of 25 percent or more of a20-33
new business engaging in similar operations; or20-34
(b) Knowingly aids or abets another person in carrying out such20-35
conduct,20-36
is liable in a civil action for the payment of any premium, interest and20-37
penalties owed to the system or the private carrier and the reasonable costs20-38
incurred by the system or private carrier to investigate and act upon such20-39
conduct.20-40
2. The system or private carrier shall not insure any business which20-41
engages in the conduct described in subsection 1 unless the premium and20-42
any interest and penalties owed to the20-43
insurer have been paid21-1
3. As used in this section, "business" includes, but is not limited to, a21-2
firm, sole proprietorship, voluntary association or private corporation.21-3
Sec. 34. NRS 616D.220 is hereby amended to read as follows: 616D.220 1. If the administrator finds that any employer or any21-5
employee, officer or agent of any employer has knowingly:21-6
(a) Made a false statement or has knowingly failed to report a material21-7
fact concerning the amount of payroll upon which a premium is based; or21-8
(b) Misrepresented the classification or duties of an employee,21-9
he shall make a determination thereon and charge the employer’s account21-10
an amount equal to21-11
would have been due had the proper information been submitted. The21-12
administrator shall deliver a copy of his determination to the employer. The21-13
money collected pursuant to this subsection must be paid into the21-14
uninsured employers’ claim fund.21-15
2. An employer who is aggrieved by the determination of the21-16
administrator may appeal from the determination by filing a request for a21-17
hearing. The request must be filed within 30 days after the date on which a21-18
copy of the determination was delivered to the employer. The administrator21-19
shall hold a hearing within 30 days after he receives the request. The21-20
determination of the administrator made pursuant to a hearing is a final21-21
decision for the purposes of judicial review. The amount of the21-22
determination as finally decided by the administrator becomes due within21-23
30 days after the determination is served on the employer.21-24
3. A person who knowingly:21-25
(a) Makes a false statement or representation or who knowingly fails to21-26
report a material fact concerning the amount of payroll upon which a21-27
premium is based; or21-28
(b) Misrepresents the classification or duties of an employee,21-29
is guilty of a gross misdemeanor. Any criminal penalty imposed must be in21-30
addition to the amount charged pursuant to subsection 1.21-31
Sec. 35. NRS 617.105 is hereby amended to read as follows: 617.105 Any real estate licensee doing business in this state and21-33
receiving wages, commissions or other compensation based upon sales21-34
shall be deemed for the purpose of this chapter to earn wages of21-35
$1,500 per month.21-36
Sec. 36. NRS 617.207 is hereby amended to read as follows: 617.207 1. If a quasi-public or private corporation or limited-liability21-38
company is required to be insured pursuant to this chapter, an officer of the21-39
corporation or a manager of the company who:21-40
(a) Receives pay for service performed shall be deemed for the purposes21-41
of this chapter to receive a minimum pay of $6,000 per21-42
policy of industrial insurance for the employer is effective and a22-1
maximum pay of $36,000 per22-2
insurance is effective.22-3
(b) Does not receive pay for services performed shall be deemed for the22-4
purposes of this chapter to receive a minimum pay of $500 per month or22-5
$6,000 per22-6
effective.22-7
2. An officer or manager who does not receive pay for services22-8
performed may elect to reject coverage by filing written notice thereof with22-9
the corporation or company and the insurer. The rejection is effective upon22-10
receipt of the notice by the insurer.22-11
3. An officer or manager who has rejected coverage may rescind that22-12
rejection by filing written notice thereof with the corporation or company22-13
and the insurer. The rescission is effective upon receipt of the notice by the22-14
insurer.22-15
Sec. 37. NRS 617.401 is hereby amended to read as follows: 617.401 1. The division shall designate one:22-17
(a) Third-party administrator who has a valid certificate issued by the22-18
commissioner pursuant to NRS 683A.085; or22-19
(b) Insurer, other than a self-insured employer or association of self-22-20
insured public or private employers,22-21
to administer claims against the uninsured employers’ claim fund. The22-22
designation must be made pursuant to reasonable competitive bidding22-23
procedures established by the administrator.22-24
2. An employee may receive compensation from the uninsured22-25
employers’ claim fund if:22-26
(a) He was hired in this state or he is regularly employed in this state;22-27
(b) He contracts an occupational disease as a result of work performed22-28
in this state;22-29
(c) He files a claim for compensation with the division; and22-30
(d) He makes an irrevocable assignment to the division of a right to be22-31
subrogated to the rights of the employee pursuant to NRS 616C.215.22-32
22-33
division shall immediately notify the employer of the claim.22-34
22-35
proving that he provided mandatory coverage for occupational diseases for22-36
the employee or that he was not required to maintain industrial insurance22-37
for the employee.22-38
22-39
required by the provisions of this chapter is liable for all payments made on22-40
his behalf, including, but not limited to, any benefits, administrative costs22-41
or attorney’s fees paid from the uninsured employers’ claim fund or22-42
incurred by the division.23-1
23-2
(a) May recover from the employer the payments made by the division23-3
that are described in subsection23-4
civil action in district court.23-5
(b) In any civil action brought against the employer, is not required to23-6
prove that negligent conduct by the employer was the cause of the23-7
occupational disease.23-8
(c) May enter into a contract with any person to assist in the collection23-9
of any liability of an uninsured employer.23-10
(d) In lieu of a civil action, may enter into an agreement or settlement23-11
regarding the collection of any liability of an uninsured employer.23-12
23-13
(a) Determine whether the employer was insured within 30 days after23-14
receiving the claim from the employee.23-15
(b) Assign the claim to the23-16
insurer designated pursuant to subsection 1 for administration23-17
23-18
23-19
23-20
Upon determining whether the claim is accepted or denied, the23-21
designated third-party administrator or insurer shall notify the23-22
injured employee, the named employer and the division23-23
23-24
23-25
(c) Upon demonstration of the:23-26
(1) Costs incurred by the designated third-party administrator or23-27
insurer to administer the claim or pay compensation to the injured23-28
employee; or23-29
(2) Amount that the designated third-party administrator or insurer23-30
will pay for administrative expenses or compensation to the injured23-31
employee and that such amounts are justified by the circumstances of the23-32
claim,23-33
the division shall authorize payment from the uninsured employers’23-34
claim fund.23-35
8. Any party aggrieved by a23-36
administration of an assigned claim or a23-37
the division or by the23-38
insurer regarding any claim made pursuant to this section may appeal that23-39
23-40
is rendered to the hearings division of the department of administration in23-41
the manner provided by NRS 616C.305 and 616C.315 to 616C.385,23-42
inclusive.24-1
24-2
pursuant to this chapter, and are entitled to a proportionate amount of any24-3
collection made pursuant to this section as an offset against future24-4
liabilities.24-5
24-6
paid on his claims from the uninsured employers’ claim fund. The interest24-7
must be calculated at a rate equal to the prime rate at the largest bank in24-8
Nevada, as ascertained by the commissioner of financial institutions, on24-9
January 1 or July 1, as the case may be, immediately preceding the date of24-10
the claim, plus 3 percent, compounded monthly, from the date the claim is24-11
paid from the fund until payment is received by the division from the24-12
employer.24-13
24-14
section must be:24-15
(a) If a private attorney is retained by the division, paid at the usual and24-16
customary rate for that attorney.24-17
(b) If the attorney is an employee of the division, paid at the rate24-18
established by regulations adopted by the division.24-19
Any money collected must be deposited to the uninsured employers’ claim24-20
fund.24-21
24-22
the administrator may impose an administrative fine of not more than24-23
$10,000 against an employer if the employer fails to provide mandatory24-24
coverage required by the provisions of this chapter.24-25
Sec. 38. NRS 209.189 is hereby amended to read as follows: 209.189 1. The fund for prison industries is hereby created as an24-27
enterprise fund to receive all revenues derived from programs for24-28
vocational training and employment of offenders and the operation of the24-29
prison farm and to receive all revenues raised by the department from24-30
private employers for the leasing of space, facilities or equipment within24-31
the institutions or facilities of the department of prisons.24-32
2. Money in the fund must be maintained in separate budgetary24-33
accounts, including at least one account for industrial programs and one for24-34
the prison farm.24-35
3. Subject to the approval of the state board of examiners, the director24-36
may expend money deposited in this fund for the promotion and24-37
development of these programs and the prison farm. The director shall24-38
expend money deposited in this fund to pay24-39
24-40
the modified program of industrial insurance adopted pursuant to NRS24-41
616B.185.24-42
4. The interest and income earned on the money in the fund, after24-43
deducting any applicable charges, must be credited to the fund.25-1
5. If money owed to the department for the leasing of space, facilities25-2
or equipment within the institutions or facilities of the department or for the25-3
purchase of goods or services, which must be deposited into the fund for25-4
prison industries pursuant to subsection 1, is not paid on or before the date25-5
due, the department shall charge and collect, in addition to the money due,25-6
interest on the money due at the rate of 1.5 percent per month or fraction25-7
thereof from the date on which the money became due until the date of25-8
payment.25-9
Sec. 39. NRS 280.270 is hereby amended to read as follows: 280.270 The county auditor or comptroller of a county in which a25-11
department is located shall comply with the provisions of NRS25-12
616B.224 on behalf of the department.25-13
Sec. 40. NRS 680A.200 is hereby amended to read as follows: 680A.200 1.25-15
the commissioner may refuse to continue or may suspend, limit or revoke25-16
an insurer’s certificate of authority if he finds after a hearing thereon, or25-17
upon waiver of hearing by the insurer, that the insurer has:25-18
(a) Violated or failed to comply with any lawful order of the25-19
commissioner;25-20
(b) Conducted his business in an unsuitable manner;25-21
(c) Willfully violated or willfully failed to comply with any lawful25-22
regulation of the commissioner; or25-23
(d) Violated any provision of this code other than one for violation of25-24
which suspension or revocation is mandatory.25-25
In lieu of such a suspension or revocation, the commissioner may levy upon25-26
the insurer, and the insurer shall pay forthwith, an administrative fine of not25-27
more than $2,000 for each act or violation.25-28
2. Except as otherwise provided in chapter 696B of NRS, the25-29
commissioner shall suspend or revoke an insurer’s certificate of authority25-30
on any of the following grounds if he finds after a hearing thereon that the25-31
insurer:25-32
(a) Is in unsound condition, is being fraudulently conducted, or is in25-33
such a condition or is using such methods and practices in the conduct of its25-34
business as to render its further transaction of insurance in this state25-35
currently or prospectively hazardous or injurious to policyholders or to the25-36
public.25-37
(b) With such frequency as to indicate its general business practice in25-38
this state:25-39
(1) Has without just cause failed to pay, or delayed payment of,25-40
claims arising under its policies, whether the claims are in favor of an25-41
insured or in favor of a third person with respect to the liability of an25-42
insured to the third person; or26-1
(2) Without just cause compels insureds or claimants to accept less26-2
than the amount due them or to employ attorneys or to bring suit against the26-3
insurer or such an insured to secure full payment or settlement of such26-4
claims.26-5
(c) Refuses to be examined, or its directors, officers, employees or26-6
representatives refuse to submit to examination relative to its affairs, or to26-7
produce its books, papers, records, contracts, correspondence or other26-8
documents for examination by the commissioner when required, or refuse26-9
to perform any legal obligation relative to the examination.26-10
(d) Except as otherwise provided in NRS 681A.110, has reinsured all its26-11
risks in their entirety in another insurer.26-12
(e) Has failed to pay any final judgment rendered against it in this state26-13
upon any policy, bond, recognizance or undertaking as issued or guaranteed26-14
by it, within 30 days after the judgment became final or within 30 days after26-15
dismissal of an appeal before final determination, whichever date is the26-16
later.26-17
3. The commissioner may, without advance notice or a hearing26-18
thereon, immediately suspend the certificate of authority of any insurer as26-19
to which proceedings for receivership, conservatorship, rehabilitation or26-20
other delinquency proceedings have been commenced in any state by the26-21
public officer who supervises insurance for that state.26-22
4. No proceeding to suspend, limit or revoke a certificate of authority26-23
pursuant to this section may be maintained unless it is commenced by the26-24
giving of notice to the insurer within 5 years after the occurrence of the26-25
charged act or omission. This limitation does not apply if the commissioner26-26
finds fraudulent or willful evasion of taxes.26-27
Sec. 41. Section 11 of Senate Bill No. 92 of this session is hereby26-28
amended to read as follows:26-29
Sec. 11. NRS 616B.095 is hereby amended to read as follows:26-30
616B.095 If the provisions of NRS 616B.224 concerning the26-31
state insurance fund, or the provisions of chapters 616A to 616D,26-32
inclusive, or chapter 617 of NRS making the compensation to the26-33
workman provided in those chapters exclusive of any other remedy26-34
on the part of the workman,26-35
those chapters26-36
provisions of NRS 616B.101, and an accounting according to the26-37
justice of the case26-38
In other respects an adjudication of invalidity of any part of this26-39
chapter or chapter 616A, 616C ,26-40
must not affect the validity of any of those chapters as a whole or26-41
any part thereof.27-1
Sec. 42. Section 15 of Senate Bill No. 92 of this session is hereby27-2
amended to read as follows:27-3
Sec. 15. NRS 616B.224 is hereby amended to read as follows: 616B.224 1. Every private or public employer who is not a27-5
self-insured employer or a member of an association of self-insured27-6
public or private employers shall, at intervals and on or before dates27-7
established by his insurer, furnish the insurer with:27-8
(a) A true and accurate payroll showing:27-9
(1) The total amount paid to employees for services27-10
performed;27-11
(2) The amount of tips reported to him by every employee27-12
pursuant to 26 U.S.C. § 6053(a) whose tips in cash totaled $20 or27-13
more; and27-14
(3) A segregation of employment in accordance with the27-15
requirements of the commissioner; and27-16
(b) Any premium due pursuant to the terms of the policy of27-17
industrial insurance.27-18
The payroll reports and any premium may be furnished to the27-19
insurer on different dates, as established by the insurer.27-20
2. Failure of any employer to comply with the provisions of this27-21
section operates as a rejection of chapters 616A to 616D, inclusive,27-22
and chapter 617 of NRS, effective on the date established by the27-23
insurer pursuant to subsection 1. The insurer shall notify the27-24
administrator of each such rejection.27-25
3. The insurer shall notify any employer or his representative27-26
by first-class mail of any failure on his part to comply with the27-27
provisions of this section. The notice or its omission does not27-28
modify or waive the requirements or effective rejection of chapters27-29
616A to 616D, inclusive, and chapter 617 of NRS as otherwise27-30
provided in those chapters.27-31
4. The system may impose a penalty not to exceed 10 percent27-32
of the premiums which are due for the failure of an employer27-33
insured by the system to submit the information and premium27-34
required in subsection 1 within the time allowed, unless the27-35
employer has applied for and been granted an extension of that time27-36
by the manager.27-37
5. To the extent permitted by federal law, the insurer shall27-38
vigorously pursue the collection of premiums that are due under the27-39
provisions of chapters 616A to 616D, inclusive, and chapter 617 of27-40
NRS even if an employer’s debts have been discharged in a27-41
bankruptcy proceeding.27-42
6. Every employer insured by the system shall pay its premiums27-43
to the state insurance fund. All money received by the system28-1
pursuant to this section must be deposited with the state treasurer to28-2
the credit of the state insurance fund.28-3
Sec. 43. Section 41 of Senate Bill No. 92 of this session is hereby28-4
amended to read as follows:28-5
Sec. 41. NRS 616D.050 is hereby amended to read as follows: 616D.050 1. Appeals officers, the administrator and the28-7
administrator’s designee, in conducting hearings or other28-8
proceedings pursuant to the provisions of chapters 616A to 616D,28-9
inclusive, or chapter 617 of NRS or regulations adopted pursuant to28-10
those chapters may:28-11
(a) Issue subpoenas requiring the attendance of any witness or28-12
the production of books, accounts, papers, records and documents.28-13
(b) Administer oaths.28-14
(c) Certify to official acts.28-15
(d) Call and examine under oath any witness or party to a claim.28-16
(e) Maintain order.28-17
(f) Rule upon all questions arising during the course of a hearing28-18
or proceeding.28-19
(g) Permit discovery by deposition or interrogatories.28-20
(h) Initiate and hold conferences for the settlement or28-21
simplification of issues.28-22
(i) Dispose of procedural requests or similar matters.28-23
(j) Generally regulate and guide the course of a pending hearing28-24
or proceeding.28-25
2. Hearing officers, in conducting hearings or other28-26
proceedings pursuant to the provisions of chapters 616A to 616D,28-27
inclusive, or chapter 617 of NRS or regulations adopted pursuant to28-28
those chapters, may:28-29
(a) Issue subpoenas requiring the attendance of any witness or28-30
the production of books, accounts, papers, records and documents28-31
that are relevant to the dispute for which the hearing or other28-32
proceeding is being held.28-33
(b) Maintain order.28-34
(c) Permit discovery by deposition or interrogatories.28-35
(d) Initiate and hold conferences for the settlement or28-36
simplification of issues.28-37
(e) Dispose of procedural requests or similar matters.28-38
(f) Generally regulate and guide the course of a pending hearing28-39
or proceeding.29-1
Sec. 44. Section 43 of Senate Bill No. 92 of this session is hereby29-2
amended to read as follows:29-3
Sec. 43. NRS 616D.080 is hereby amended to read as follows: 616D.080 1. Each officer who serves a subpoena is entitled to29-5
receive the same fees as a sheriff.29-6
2. Each witness who appears, in obedience to a subpoena which29-7
has been issued pursuant to this chapter or chapter 616A, 616B ,29-8
29-9
officer, the administrator or the administrator’s designee, is entitled29-10
to receive for his attendance the fees and mileage provided for29-11
witnesses in civil cases in courts of record. For subpoenas issued on29-12
behalf of this state or an officer or agency thereof, the fees and29-13
mileage are not required to be tendered at the same time that the29-14
subpoena is delivered to the person named therein.29-15
3. The appeals officer, hearing officer, administrator or the29-16
administrator’s designee shall:29-17
(a) Authorize payment from his administrative budget of the fees29-18
and mileage due to such a witness; or29-19
(b) Impose those costs upon the party at whose instance the29-20
witness was subpoenaed or, for good cause shown, upon any other29-21
party.29-22
Sec. 45. Section 1 of Senate Bill No. 175 of this session is hereby29-23
amended to read as follows:29-24
Section 1. NRS 616D.200 is hereby amended to read as29-25
follows:29-26
616D.200 1. If the administrator finds that an employer29-27
within the provisions of NRS 616B.633 has failed to provide and29-28
secure compensation as required by the terms of chapters 616A to29-29
616D, inclusive, or chapter 617 of NRS or that the employer has29-30
provided and secured that compensation but has failed to maintain29-31
it, he shall make a determination thereon and may charge the29-32
employer an amount equal to the sum of:29-33
(a) The premiums that would otherwise have been owed to the29-34
system or a private carrier pursuant to the terms of chapters 616A to29-35
616D, inclusive, or chapter 617 of NRS for the period that the29-36
employer was doing business in this state without providing,29-37
securing or maintaining that compensation, but not to exceed 629-38
years; and29-39
(b) Interest at a rate determined pursuant to NRS 17.13029-40
computed from the time that the premiums should have been29-42
The money collected pursuant to this subsection must be paid into29-43
the uninsured employers’ claim fund.30-1
2. The administrator shall deliver a copy of his determination to30-2
the employer. An employer who is aggrieved by the determination30-3
of the administrator may appeal from the determination pursuant to30-4
subsection 2 of NRS 616D.220.30-5
3. Any employer within the provisions of NRS 616B.633 who30-6
fails to provide, secure or maintain compensation as required by the30-7
terms of chapters 616A to 616D, inclusive, or chapter 617 of NRS,30-8
30-9
30-10
30-11
30-12
30-13
follows:30-14
(a) Except as otherwise provided in paragraph (b), if it is a first30-15
offense, for a misdemeanor.30-16
(b) If it is a first offense and, during the period the employer30-17
was doing business in this state without providing, securing or30-18
maintaining compensation, one of his employees suffers an injury30-19
arising out of and in the course of his employment that results in30-20
substantial bodily harm to the employee or the death of the30-21
employee, for a category C felony punishable by imprisonment in30-22
the state prison for a minimum term of not less than 1 year and a30-23
maximum term of not more than 5 years and by a fine of not less30-24
than $1,000 nor more than $50,000.30-25
(c) If it is a second or subsequent offense committed within 730-26
years after the previous offense, for a category C felony30-27
punishable by imprisonment in the state prison for a minimum30-28
term of not less than 1 year and a maximum term of not more30-29
than 5 years and by a fine of not less than $1,000 nor more than30-30
$50,000.30-31
4. In addition to any other penalty imposed pursuant to30-32
paragraph (b) or (c) of subsection 3, the court shall order the30-33
employer to:30-34
(a) Pay restitution to an insurer who has incurred costs as a30-35
result of the violation in an amount equal to the costs that have30-36
been incurred minus any costs incurred that have otherwise been30-37
recovered; and30-38
(b) Reimburse the uninsured employers’ claim fund for all30-39
payments made from the fund on the employer’s behalf,30-40
including any benefits, administrative costs or attorney’s fees paid30-41
from the fund, that have not otherwise been recovered pursuant to30-42
NRS 616C.220.31-1
5. Any criminal penalty imposed pursuant to subsections 331-2
and 4 must be in addition to the amount charged pursuant to31-3
subsection 1.31-4
Sec. 46. Senate Bill No. 175 of this session is hereby amended by31-5
adding thereto a new section designated sec. 2, following section 1, to read31-6
as follows:31-7
Sec. 2. This act becomes effective at 12:01 a.m. on October 1,31-8
1999.31-9
Sec. 47. 1. NRS 616A.235, 616B.218, 616B.389 and 616C.535 are31-10
hereby repealed.31-11
2. NRS 616B.230 is hereby repealed.31-12
Sec. 48. 1. This section and sections 2, 5 to 9, inclusive, 11, 14, 1931-13
to 24, inclusive, 26 to 32, inclusive, 34, 35, 36, 38, 39, 40 to 46, inclusive,31-14
and subsection 1 of section 47 of this act become effective on July 1, 1999.31-15
2. Sections 1, 3, 4, 10, 12, 15, 16, 17, 18, 25, 33, 37 and subsection 231-16
of section 47 of this act become effective at 12:01 a.m. on July 1, 1999.31-17
3. Section 13 of this act becomes effective at 12:02 a.m. on July 1,31-18
1999.
31-19
LEADLINES OF REPEALED SECTIONS616A.235 "Extended claim" defined. 616B.218 Payment of premiums or deposit upon entering or
31-22
resuming business. 616B.230 Payment of premiums by public employers. [Effective31-24
July 1, 1999.] 616B.389 Membership in association: Required period of31-26
insurance coverage by system upon termination or cancellation of31-27
membership; determination of premium; exception. 616C.535 System authorized to execute agreement for provision of31-29
vocational rehabilitation services by state or federal agency; use of31-30
programs located outside state.~