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.

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

 

AN ACT relating to industrial insurance; revising the provisions concerning employee leasing companies; revising the provisions concerning the modified programs of industrial insurance for the department of prisons, jails and other detention facilities; revising the provision concerning the timing of payment of premiums and reporting of payroll to insurers; clarifying that a rate service organization used by an association of self-insured public or private employers must be licensed; clarifying the authority of the commissioner of insurance over private carriers who provide industrial insurance; specifying the authority of the commissioner of insurance to suspend the authorization of a private carrier to provide industrial insurance; revising various provisions to facilitate the authorization of private carriers to provide industrial insurance; reducing the penalty for misrepresenting information that will affect the amount of an employer’s premium; revising the provisions concerning payment from the uninsured employers’ claim fund; increasing the amount a real estate licensee is deemed to receive as a wage; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

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

1-2 616A.465 1. Except as otherwise provided in this section, the

1-3 division shall:

1-4 (a) Regulate insurers pursuant to chapters 616A to 617, inclusive, of

1-5 NRS; [and]

2-1 (b) Investigate insurers regarding compliance with statutes and the

2-2 division’s regulations [.] ;

2-3 (c) Determine whether an employee leasing company is entitled to a

2-4 certificate of registration pursuant to NRS 616B.673; and

2-5 (d) Regulate employee leasing companies pursuant to the provisions

2-6 of NRS 616B.670 to 616B.697, inclusive.

2-7 2. The commissioner is responsible for reviewing rates, investigating

2-8 the solvency of insurers, authorizing private carriers pursuant to chapter

2-9 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 to

2-13 NRS 616B.350 to 616B.446, inclusive; and

2-14 (c) Third-party administrators pursuant to chapter 683A of NRS.

2-15 3. The department of administration is responsible for contested claims

2-16 relating to industrial insurance pursuant to NRS 616C.310 to 616C.385,

2-17 inclusive. The administrator is responsible for administrative appeals

2-18 pursuant to NRS 616B.215.

2-19 4. The Nevada attorney for injured workers is responsible for legal

2-20 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 a

2-23 complaint is filed with the division, the administrator shall cause to be

2-24 conducted an investigation which includes a review of relevant records and

2-25 interviews of affected persons. If the administrator determines that a

2-26 violation may have occurred, the administrator shall proceed in accordance

2-27 with the provisions of NRS 616D.120 and 616D.130.

2-28 Sec. 2. Chapter 616B of NRS is hereby amended by adding thereto a

2-29 new section to read as follows:

2-30 An insurer shall not issue a policy of industrial insurance to an

2-31 employer that does not cover each employee of that employer who

2-32 satisfies the definition of employee set forth in NRS 616A.105 to

2-33 616A.225, inclusive.

2-34 Sec. 3. NRS 616B.039 is hereby amended to read as follows:

2-35 616B.039 [The] To determine the total amount paid to employees for

2-36 services performed, the maximum amount paid to any one employee

2-37 during the year in which a policy of industrial insurance is effective shall

2-38 be deemed to be $36,000 . [in determining the total amount paid to

2-39 employees by each employer for services performed during a year.]

2-40 Sec. 4. NRS 616B.086 is hereby amended to read as follows:

2-41 616B.086 1. Except as otherwise provided in subsection 3, all

2-42 premiums, contributions, penalties, bonds, securities and all other

3-1 properties received, collected or acquired by the system pursuant to the

3-2 terms of chapters 616A to 616D, inclusive, of NRS:

3-3 (a) Must be credited on the records of the system to the state insurance

3-4 fund.

3-5 (b) Constitute, for the purpose of custody thereof, the state insurance

3-6 fund, which must be held by the manager as custodian thereof for the

3-7 benefit of employees and their dependents within the provisions of chapters

3-8 616A to 616D, inclusive, of NRS. The manager is liable on his official

3-9 bond for the faithful performance of his custodial duty.

3-10 2. The commissioner or the administrator may delegate to a hearing

3-11 officer or panel his authority to take any disciplinary action pursuant to

3-12 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 to

3-14 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 disciplinary

3-17 action pursuant to subsection 2 and the commissioner or the administrator

3-18 deposits the money collected from the imposition of administrative fines

3-19 with the state treasurer for credit to the state general fund, he may present a

3-20 claim to the state board of examiners for recommendation to the interim

3-21 finance committee if money is needed to pay attorney’s fees or the costs of

3-22 an investigation, or both.

3-23 Sec. 5. NRS 616B.095 is hereby amended to read as follows:

3-24 616B.095 If the provisions of NRS [616B.218, 616B.224 and

3-25 616B.230 for the creation of a] 616B.224 concerning the state insurance

3-26 fund, or the provisions of chapters 616A to 616D, inclusive, of NRS

3-27 making the compensation to the workman provided in those chapters

3-28 exclusive of any other remedy on the part of the workman, shall be held

3-29 invalid, each of those chapters shall be thereby invalidated, except the

3-30 provisions of NRS 616B.101, and an accounting according to the justice of

3-31 the case shall be had on moneys received. In other respects an adjudication

3-32 of invalidity of any part of this chapter or chapter 616A, 616C or 616D of

3-33 NRS shall not affect the validity of any of those chapters as a whole or any

3-34 part thereof.

3-35 Sec. 6. NRS 616B.104 is hereby amended to read as follows:

3-36 616B.104 1. Notwithstanding the provisions of chapter 355 of NRS

3-37 or of any other law, the manager may invest and reinvest any money in the

3-38 funds of the system deemed available for investment [as provided in]

3-39 pursuant to NRS 616B.107 [and 616B.116 to 616B.164, inclusive,] and

3-40 may employ investment counsel for that purpose.

3-41 2. The provisions of this section and NRS 616B.107 [and 616B.116 to

3-42 616B.164, inclusive,] do not prevent the manager from making investments

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:

4-2 616B.107 1. No person engaged in business as a broker or dealer in

4-3 securities or who has a direct pecuniary interest in any such business who

4-4 receives commissions for transactions performed as an agent for the system

4-5 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 consists

4-8 of rendering investment supervisory services, that is, the giving of

4-9 continuous advice as to the investment of money on the basis of the

4-10 individual needs of each client;

4-11 (b) The person and his predecessors have been continuously engaged in

4-12 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 an

4-14 average of 10 years professional experience as investment managers;

4-15 (c) The person as of the time originally hired, has at least $250,000,000

4-16 of assets under management contract, exclusive of any assets related to

4-17 governmental agencies in this state;

4-18 (d) The person is registered as an investment adviser under the laws of

4-19 the United States as from time to time in effect, or is a bank or an

4-20 investment management subsidiary of a bank;

4-21 (e) The contract between the system and the investment counsel is of no

4-22 specific duration and is voidable at any time by either party; and

4-23 (f) The person has been approved by the state board of finance for

4-24 employment as investment counsel.

4-25 3. More than one investment counsel may be employed in the

4-26 discretion of the manager.

4-27 4. The expense of such employment must be paid from the state

4-28 insurance fund.

4-29 5. Any investment program adopted by the system and all investments

4-30 made thereunder must be reported quarterly in writing by the manager to

4-31 the state board of finance, and the report is subject to review by the state

4-32 board of finance. The state board of finance may require the manager to

4-33 provide further reports and may recommend modifications in the

4-34 investment program, including replacement of the investment counsel. If,

4-35 after a reasonable time, the manager has not taken suitable corrective action

4-36 in response to recommendations by the state board of finance, the state

4-37 board of finance may direct the manager to carry out its recommendations

4-38 in a manner acceptable to the state board of finance. Any directives from

4-39 the state board of finance must be in writing.

4-40 6. With the approval of the state board of finance, the manager may

4-41 designate the bank or banks which shall have the custody of the various

4-42 investments [authorized in NRS 616B.116 to 616B.164, inclusive.] made

4-43 pursuant to this section.

5-1 7. The system may accept due bills from brokers upon delivery of

5-2 warrants if the certificates representing the investments are not readily

5-3 available.

5-4 Sec. 8. NRS 616B.185 is hereby amended to read as follows:

5-5 616B.185 1. Any offender confined at the state prison, while engaged

5-6 in work in a prison industry or work program, whether the program is

5-7 operated by an institution of the department of prisons, by contract with a

5-8 public entity or by a private employer, is entitled to coverage under the

5-9 modified program of industrial insurance established by regulations

5-10 adopted by the [system when] division if the director of the department of

5-11 prisons [requests such coverage and] complies with the provisions of the

5-12 regulations, and coverage is approved by the system [.] or a private carrier.

5-13 2. An offender is limited to the rights and remedies established by the

5-14 provisions of the modified program of industrial insurance established by

5-15 regulations adopted by the [system.] division. The offender is not entitled

5-16 to any rights and remedies established by the provisions of chapters 616A

5-17 to 617, inclusive, of NRS.

5-18 3. The [system] division shall, in cooperation with the department of

5-19 prisons and the risk management division of the department of

5-20 administration, adopt regulations setting forth a modified program of

5-21 industrial insurance to provide offenders with industrial insurance against

5-22 personal injuries arising out of and in the course of their work in a prison

5-23 industry or work program.

5-24 Sec. 9. NRS 616B.186 is hereby amended to read as follows:

5-25 616B.186 1. Any offender confined in a county jail, city jail or other

5-26 local detention facility, while engaged in work in a work program directed

5-27 by the administrator of the jail or other detention facility, whether the work

5-28 program is operated by contract with a public entity or by a private

5-29 employer, may receive coverage under the modified program of industrial

5-30 insurance established by regulations adopted by the division if the

5-31 administrator of the jail or other detention facility [requests such coverage

5-32 and] complies with the provisions of the regulations [.] and coverage is

5-33 approved by the system or a private carrier.

5-34 2. An offender is limited to the rights and remedies established by the

5-35 provisions of the modified program of industrial insurance established by

5-36 regulations adopted by the division. The offender is not entitled to any

5-37 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 jails

5-40 and other detention facilities, shall adopt regulations setting forth a

5-41 modified program of industrial insurance to provide offenders with

5-42 industrial insurance against personal injuries arising out of and in the

5-43 course of their work in a work program.

6-1 4. As used in this section, "administrator of the jail or other detention

6-2 facility" means the sheriff of a county jail, chief of police of a city jail or

6-3 director of a local detention facility.

6-4 Sec. 10. NRS 616B.211 is hereby amended to read as follows:

6-5 616B.211 [In addition to the authority given the manager to determine

6-6 and fix premium rates pursuant to NRS 616B.218 to 616B.230, inclusive,

6-7 the] The manager may establish a plan for classifying employers insured by

6-8 the system as small employers pursuant to chapters 616A to 616D,

6-9 inclusive, or [chapter] 617 of NRS. Upon establishing such a plan, the

6-10 manager may, with the approval of the commissioner, determine and fix the

6-11 premium rates of those employers pursuant to the plan.

6-12 Sec. 11. NRS 616B.212 is hereby amended to read as follows:

6-13 616B.212 [In addition to the authority given the manager to determine

6-14 and fix premium rates of employers pursuant to NRS 616B.218 to

6-15 616B.230, inclusive, the] The manager may by regulation establish a plan

6-16 for classifying employers insured by the system who, because of the risks

6-17 inherent in the businesses in which the employers are engaged, are

6-18 reasonably likely to incur a greater number of claims for compensation

6-19 pursuant to chapters 616A to 616D, inclusive, or [chapter] 617 of NRS.

6-20 Upon establishing such a plan, the manager may, with the approval of the

6-21 commissioner, determine and fix the premium rates of those employers.

6-22 Sec. 12. NRS 616B.224 is hereby amended to read as follows:

6-23 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 or

6-25 private employers shall, at intervals and on or before dates established by

6-26 his insurer, furnish the insurer with [a] :

6-27 (a) A true and accurate payroll showing:

6-28 [(a)] (1) The total amount paid to employees for services performed;

6-29 [(b)] (2) The amount of tips reported to him by every employee

6-30 pursuant to 26 U.S.C. § 6053(a) whose tips in cash totaled $20 or more;

6-31 and

6-32 [(c)] (3) A segregation of employment in accordance with the

6-33 requirements of the commissioner [, together with the premium due

6-34 thereon.] ; and

6-35 (b) Any premium due pursuant to the terms of the policy of industrial

6-36 insurance.

6-37 The payroll reports and any premium [must] may be furnished to the

6-38 insurer on [or before the date] different dates, as established by the insurer

6-39 . [for the receipt of the payroll and premium.

6-40 2. Any employer by agreement in writing with the insurer may arrange

6-41 for the payment of premiums in advance at an interval established by the

6-42 insurer.

7-1 3.] 2. Failure of any employer to comply with the provisions of this

7-2 section [and NRS 616B.218] operates as a rejection of chapters 616A to

7-3 616D, inclusive, of NRS, effective [at the expiration of the period covered

7-4 by his estimate.] on the date established by the insurer pursuant to

7-5 subsection 1. The insurer shall notify the administrator of each such

7-6 rejection.

7-7 [4. If an audit of the accounts or actual payroll of an employer shows

7-8 that the actual premium earned exceeds the estimated premium paid in

7-9 advance, the insurer may require the payment of money sufficient to cover

7-10 the deficit, together with such amount as in his judgment constitutes an

7-11 adequate advance premium for the period covered by the estimate.

7-12 5.] 3. The insurer shall notify any employer or his representative by

7-13 first-class mail of any failure on his part to comply with the provisions of

7-14 this section. The notice or its omission does not modify or waive the

7-15 requirements or effective rejection of chapters 616A to 616D, inclusive,

7-16 and 617 of NRS as otherwise provided in those chapters.

7-17 [6.] 4. The system may impose a penalty not to exceed 10 percent of

7-18 the premiums which are due for the failure of an employer insured by the

7-19 system to submit the information and premium required in subsection 1

7-20 within the time allowed, unless the employer has applied for and been

7-21 granted an extension of that time by the manager.

7-22 [7.] 5. To the extent permitted by federal law, the insurer shall

7-23 vigorously pursue the collection of premiums that are due under the

7-24 provisions of chapters 616A to 616D, inclusive, and 617 of NRS even if an

7-25 employer’s debts have been discharged in a bankruptcy proceeding.

7-26 6. Every employer insured by the system shall pay its premiums to

7-27 the state insurance fund. All money received by the system pursuant to

7-28 this section must be deposited with the state treasurer to the credit of the

7-29 state insurance fund.

7-30 Sec. 13. NRS 616B.386 is hereby amended to read as follows:

7-31 616B.386 1. If an employer wishes to become a member of an

7-32 association of self-insured public or private employers, the employer must:

7-33 (a) Submit an application for membership to the board of trustees or

7-34 third-party administrator of the association; and

7-35 (b) Enter into an indemnity agreement as required by NRS 616B.353.

7-36 2. The membership of the applicant becomes effective when each

7-37 member of the association approves the application or on a later date

7-38 specified by the association. The application for membership and the action

7-39 taken on the application must be maintained as permanent records of the

7-40 board of trustees.

7-41 3. Each member who is a member of an association during the 12

7-42 months immediately following the formation of the association must:

7-43 (a) Have a tangible net worth of at least $500,000; or

8-1 (b) Have had a reported payroll for the previous 12 months which would

8-2 have resulted in a manual premium of at least $15,000, calculated in

8-3 accordance with a manual prepared pursuant to subsection 4 of NRS

8-4 686B.1765.

8-5 4. An employer who seeks to become a member of the association after

8-6 the 12 months immediately following the formation of the association must

8-7 meet the requirement set forth in paragraph (a) or (b) of subsection 3 unless

8-8 the commissioner adjusts the requirement for membership in the

8-9 association after conducting an annual review of the actuarial solvency of

8-10 the association pursuant to subsection 1 of NRS 616B.353.

8-11 5. An association of self-insured private employers may apply to the

8-12 commissioner for authority to determine the amount of tangible net worth

8-13 and manual premium that an employer must have to become a member of

8-14 the association. The commissioner shall approve the application if the

8-15 association:

8-16 (a) Has been certified to act as an association for at least the 3

8-17 consecutive years immediately preceding the date on which the association

8-18 filed the application with the commissioner;

8-19 (b) Has a combined tangible net worth of all members in the association

8-20 of at least $5,000,000;

8-21 (c) Has at least 15 members; and

8-22 (d) Has not been required to meet informally with the commissioner

8-23 pursuant to subsection 1 of NRS 616B.431 during the 18-month period

8-24 immediately preceding the date on which the association filed the

8-25 application with the commissioner or, if the association has been required

8-26 to attend such a meeting during that period, has not had its certificate

8-27 withdrawn before the date on which the association filed the application.

8-28 6. An association of self-insured private employers may apply to the

8-29 commissioner for authority to determine the documentation demonstrating

8-30 solvency that an employer must provide to become a member of the

8-31 association. The commissioner shall approve the application if the

8-32 association:

8-33 (a) Has been certified to act as an association for at least the 3

8-34 consecutive years immediately preceding the date on which the association

8-35 filed the application with the commissioner;

8-36 (b) Has a combined tangible net worth of all members in the association

8-37 of at least $5,000,000; and

8-38 (c) Has at least 15 members.

8-39 7. The commissioner may withdraw his approval of an application

8-40 submitted pursuant to subsection 5 or 6 if he determines the association has

8-41 ceased to comply with any of the requirements set forth in subsection 5 or

8-42 6, as applicable.

9-1 8. [Except as otherwise provided in NRS 616B.389, a] A member of an

9-2 association may terminate his membership at any time. To terminate his

9-3 membership, a member must submit to the association’s administrator a

9-4 notice of intent to withdraw from the association at least 120 days before

9-5 the effective date of withdrawal. The association’s administrator shall,

9-6 within 10 days after receipt of the notice, notify the commissioner of the

9-7 employer’s intent to withdraw from the association.

9-8 9. The members of an association may cancel the membership of any

9-9 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 membership

9-12 of the association, notify the commissioner of the addition and:

9-13 (1) If the association has not received authority from the

9-14 commissioner pursuant to subsection 5 or 6, as applicable, provide to the

9-15 commissioner all information and assurances for the new member that were

9-16 required from each of the original members of the association upon its

9-17 organization; or

9-18 (2) If the association has received authority from the commissioner

9-19 pursuant to subsection 5 or 6, as applicable, provide to the commissioner

9-20 evidence that is satisfactory to the commissioner that the new member is a

9-21 member or associate member of the bona fide trade association as required

9-22 pursuant to paragraph (a) of subsection 2 of NRS 616B.350, a copy of the

9-23 indemnity agreement that jointly and severally binds the new member, the

9-24 other members of the association and the association that is required to be

9-25 executed pursuant to paragraph (a) of subsection 1 of NRS 616B.353 and

9-26 any other information the commissioner may reasonably require to

9-27 determine whether the amount of security deposited with the commissioner

9-28 pursuant to paragraph (d) or (e) of subsection 1 of NRS 616B.353 is

9-29 sufficient, but such information must not exceed the information required to

9-30 be provided to the commissioner pursuant to subparagraph (1);

9-31 (b) Notify the commissioner and the administrator of the termination or

9-32 cancellation of the membership of any member of the association within 10

9-33 days after the termination or cancellation; and

9-34 (c) At the expense of the member whose membership is terminated or

9-35 canceled, maintain coverage for that member for 30 days after notice is

9-36 given pursuant to paragraph (b), unless the association first receives notice

9-37 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 NRS

9-40 616B.312;

9-41 (3) Become a member of another association of self-insured public or

9-42 private employers; or

9-43 (4) Become insured by a private carrier.

10-1 11. If a member of an association changes his name or form of

10-2 organization, the member remains liable for any obligations incurred or any

10-3 responsibilities imposed pursuant to chapters 616A to 617, inclusive, of

10-4 NRS under his former name or form of organization.

10-5 12. An association is liable for the payment of any compensation

10-6 required to be paid by a member of the association pursuant to chapters

10-7 616A to 616D, inclusive, or [chapter] 617 of NRS during his period of

10-8 membership. The insolvency or bankruptcy of a member does not relieve

10-9 the association of liability for the payment of the compensation.

10-10 Sec. 14. NRS 616B.407 is hereby amended to read as follows:

10-11 616B.407 1. Except as otherwise provided in subsection 2, the

10-12 annual assessment required to be paid by each member of an association of

10-13 self-insured public or private employers must be [calculated by a rating

10-14 organization approved by the commissioner and based] :

10-15 (a) Calculated by a rate service organization that is licensed pursuant

10-16 to chapter 686B of NRS; and

10-17 (b) Based on the premium rate for the standard industrial classification

10-18 of that member, adjusted by the member’s individual experience.

10-19 If approved by the commissioner, payments of assessments may be reduced

10-20 by an amount based on the association’s level of expenses and loss

10-21 experience.

10-22 2. If approved by the commissioner, an association may calculate the

10-23 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 5

10-25 years of the member’s individual experience.

10-26 Sec. 15. NRS 616B.463 is hereby amended to read as follows:

10-27 616B.463 1. Before a private carrier may provide industrial

10-28 insurance pursuant to chapters 616A to 617, inclusive, of NRS, the private

10-29 carrier must be authorized by the commissioner pursuant to chapter 680A

10-30 of NRS and maintain such security of the kind described in NRS 680A.120

10-31 and 680A.140 as may be required.

10-32 2. A private carrier shall not provide industrial insurance pursuant to

10-33 chapters 616A to 617, inclusive, of NRS as an unauthorized insurer

10-34 pursuant to subsection 9 of NRS 680A.070.

10-35 3. A private carrier that is authorized by the commissioner to provide

10-36 industrial insurance pursuant to subsection 1:

10-37 (a) Constitutes an authorized insurer, as that term is defined in NRS

10-38 679A.030; and

10-39 (b) Is subject to the provisions of Title 57 of NRS that govern

10-40 authorized insurers.

10-41 Sec. 16. NRS 616B.472 is hereby amended to read as follows:

10-42 616B.472 1. The commissioner shall suspend the authorization of a

10-43 private carrier to provide industrial insurance for 1 year if , after a hearing

11-1 thereon, the commissioner finds that the private carrier has intentionally or

11-2 repeatedly failed to comply with the provisions of chapters 616A to 616D,

11-3 inclusive, or [chapter] 617 of NRS or the regulations of the division [.

11-4 2. Before the commissioner suspends the authorization of a private

11-5 carrier, he shall arrange an informal meeting with the private carrier to

11-6 discuss and seek correction of any conduct which would be grounds for

11-7 suspension.

11-8 3. Before the suspension of the authorization, the commissioner shall

11-9 give written notice to the private carrier by certified mail or electronic

11-10 transmission that its authorization will be suspended within 10 days after it

11-11 receives the notice unless, within that time, the private carrier corrects the

11-12 conduct set forth in the notice as the reason for the withdrawal or submits a

11-13 written request for a hearing to the commissioner.

11-14 4. If the private carrier requests a hearing:

11-15 (a) The commissioner shall set a date for a hearing within 20 days after

11-16 receiving the notice of the appeal and shall give the private carrier at least

11-17 10 business days’ notice of the time and place of the hearing.

11-18 (b)] or the commissioner.

11-19 2. A hearing to determine whether the authorization of a private

11-20 carrier to provide industrial insurance will be suspended pursuant to

11-21 subsection 1 must be conducted by the commissioner pursuant to the

11-22 provisions of NRS 679B.310 to 679B.370, inclusive, the regulations

11-23 adopted pursuant thereto and the provisions of chapter 233B of NRS

11-24 concerning adjudication of contested cases. A record of the hearing must

11-25 be kept but it need not be transcribed unless requested by the private

11-26 carrier. The cost of transcription must be charged to the private carrier.

11-27 [5. Within 5 days after the hearing, the commissioner shall affirm or

11-28 deny his order suspending the authorization of the private carrier and notify

11-29 the private carrier by certified mail or electronic transmission of his

11-30 decision.

11-31 6. If the private carrier does not comply with the order of the

11-32 commissioner during the period of suspension of the authorization, the

11-33 commissioner shall file an order prohibiting the private carrier from issuing

11-34 new policies until the order has expired. A copy of the order must be sent

11-35 by certified mail or electronic transmission to the private carrier.]

11-36 Sec. 17. NRS 616B.612 is hereby amended to read as follows:

11-37 616B.612 1. Every employer within the provisions of chapters 616A

11-38 to 616D, inclusive, or 617 of NRS, and those employers who accept the

11-39 terms of those chapters and are governed by their provisions, shall provide

11-40 and secure compensation according to the terms, conditions and provisions

11-41 of those chapters for any personal injuries by accident sustained by an

11-42 employee arising out of and in the course of the employment.

12-1 2. Travel for which an employee receives wages shall, for the purposes

12-2 of chapters 616A to 616D, inclusive, of NRS, be deemed in the course of

12-3 employment.

12-4 3. In such cases the employer or any insurer of the employer is relieved

12-5 from other liability for recovery of damages or other compensation for

12-6 those personal injuries unless otherwise provided by the terms of chapters

12-7 616A to 616D, inclusive, of NRS.

12-8 Sec. 18. NRS 616B.624 is hereby amended to read as follows:

12-9 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 to

12-11 616D, inclusive, of NRS, an officer of the corporation or a manager of the

12-12 company who:

12-13 (a) Receives pay for services performed as an officer, manager or

12-14 employee of the corporation or company shall be deemed for the purposes

12-15 of those chapters to receive a minimum pay of $6,000 per [calendar] year

12-16 the policy of industrial insurance for the employer is effective and a

12-17 maximum pay of $36,000 per [calendar year.] year the policy of industrial

12-18 insurance is effective.

12-19 (b) Does not receive pay for services performed as an officer, manager

12-20 or employee of the corporation or company shall be deemed for the

12-21 purposes of those chapters to receive a minimum pay of $500 per month or

12-22 $6,000 per [calendar year.] year the policy of industrial insurance is

12-23 effective.

12-24 2. An officer or manager who does not receive pay for services

12-25 performed as an officer, manager or employee of the corporation or

12-26 company may elect to reject coverage by filing written notice thereof with

12-27 the corporation or company and the insurer. The rejection is effective upon

12-28 receipt of the notice by the insurer.

12-29 3. An officer or manager who has rejected coverage may rescind that

12-30 rejection by filing written notice thereof with the corporation or company

12-31 and the insurer. The rescission is effective upon receipt of the notice by the

12-32 insurer. If an officer or manager who has rejected coverage receives pay for

12-33 services performed as an officer, manager or employee of the corporation

12-34 or company, the officer or manager shall be deemed to have rescinded that

12-35 rejection.

12-36 4. A nonprofit corporation whose officers do not receive pay for

12-37 services performed as officers or employees of the corporation may elect to

12-38 reject coverage for its current officers and all future officers who do not

12-39 receive such pay by filing written notice thereof with the corporation and

12-40 the insurer. The rejection is effective upon receipt of the notice by the

12-41 insurer.

12-42 5. A nonprofit corporation which has rejected coverage for its officers

12-43 who do not receive pay for services performed as officers or employees of

13-1 the corporation may rescind that rejection by filing written notice thereof

13-2 with the corporation and the insurer. The rescission is effective upon

13-3 receipt of the notice by the insurer. If an officer of a nonprofit corporation

13-4 which has rejected coverage receives pay for services performed as an

13-5 officer or employee of the corporation, the corporation shall be deemed to

13-6 have rescinded that rejection.

13-7 Sec. 19. NRS 616B.670 is hereby amended to read as follows:

13-8 616B.670 As used in NRS 616B.670 to 616B.697, inclusive, unless the

13-9 context otherwise requires:

13-10 1. "Applicant" means a person seeking a certificate of [insurance]

13-11 registration pursuant to NRS 616B.670 to 616B.697, inclusive, to operate

13-12 an employee leasing company.

13-13 2. "Client company" means a company which leases employees, for a

13-14 fee, from an employee leasing company pursuant to a written or oral

13-15 agreement.

13-16 3. "Employee leasing company" means a company which, pursuant to a

13-17 written or oral agreement:

13-18 (a) Places any of the regular, full-time employees of a client company on

13-19 its payroll and, for a fee, leases them to the client company on a regular

13-20 basis without any limitation on the duration of their employment; or

13-21 (b) Leases to a client company:

13-22 (1) Five or more part-time or full-time employees; or

13-23 (2) Ten percent or more of the total number of employees within a

13-24 classification of risk established by the [system.] commissioner.

13-25 Sec. 20. NRS 616B.673 is hereby amended to read as follows:

13-26 616B.673 1. A person shall not operate an employee leasing

13-27 company in this state unless he has complied with the provisions of NRS

13-28 616B.670 to 616B.697, inclusive. The [manager] administrator shall issue

13-29 a certificate of [insurance] registration to each applicant who complies

13-30 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 a

13-32 misdemeanor.

13-33 3. Each certificate of [insurance] registration issued by the [manager]

13-34 administrator pursuant to NRS 616B.670 to 616B.697, inclusive, expires 1

13-35 year after it is issued unless renewed before that date.

13-36 Sec. 21. NRS 616B.676 is hereby amended to read as follows:

13-37 616B.676 An applicant for the issuance or renewal of a certificate of

13-38 [insurance] registration must submit to the [manager] administrator a

13-39 written application upon a form provided by the [manager.] administrator.

13-40 Sec. 22. NRS 616B.679 is hereby amended to read as follows:

13-41 616B.679 1. Each application must include:

13-42 (a) The applicant’s name and title of his position with the employee

13-43 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 leasing

14-5 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 by

14-14 chapters 616A to 617, inclusive, of NRS.

14-15 (3) The payment of contributions or payments in lieu of contributions

14-16 required by chapter 612 of NRS.

14-17 (4) Insurance coverage for any benefit plan from an insurer

14-18 authorized pursuant to Title 57 of NRS that is offered by the employee

14-19 leasing company to its employees.

14-20 [(5) Membership in the National Staff Leasing Association, or its

14-21 successor organization.]

14-22 (h) Any other information the [manager] administrator requires.

14-23 2. Each application must be notarized and signed under penalty of

14-24 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 the [manager] administrator any

14-29 change in the information required by this section within 30 days after the

14-30 change occurs. The [manager] administrator may revoke the certificate of

14-31 [insurance] registration of an employee leasing company which fails to

14-32 comply with the provisions of [this subsection. If the manager revokes the

14-33 certificate of insurance and cancels the] NRS 616B.670 to 616B.697,

14-34 inclusive.

14-35 4. If an insurer cancels an employee leasing company’s policy, the

14-36 [manager] insurer shall immediately notify the administrator [, who shall

14-37 proceed in accordance with the provisions of NRS 616D.110.] in writing.

14-38 The notice must comply with the provisions of NRS 687B.310 to

14-39 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:

14-42 616B.694 The [manager, in cooperation with the administrator of the

14-43 employment security division of the department of employment, training

15-1 and rehabilitation, shall, and the commissioner of insurance] administrator

15-2 may, adopt regulations to carry out the provisions of NRS 616B.670 to

15-3 616B.697, inclusive.

15-4 Sec. 24. NRS 616B.697 is hereby amended to read as follows:

15-5 616B.697 An action for damages caused by the failure of an employee

15-6 leasing company to comply with the provisions of NRS 616B.670 to

15-7 616B.697, inclusive, may be brought against any person who is required to

15-8 sign the application for a certificate of [insurance] registration for the

15-9 employee leasing company.

15-10 Sec. 25. NRS 616C.220 is hereby amended to read as follows:

15-11 616C.220 1. The division shall designate one:

15-12 (a) Third-party administrator who has a valid certificate issued by the

15-13 commissioner pursuant to NRS 683A.085; or

15-14 (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. The

15-17 designation must be made pursuant to reasonable competitive bidding

15-18 procedures established by the administrator.

15-19 2. An employee may receive compensation from the uninsured

15-20 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 and

15-23 in the course of his employment;

15-24 (c) He files a claim for compensation with the division; and

15-25 (d) He makes an irrevocable assignment to the division of a right to be

15-26 subrogated to the rights of the injured employee pursuant to NRS

15-27 616C.215.

15-28 [2.] 3. If the division receives a claim pursuant to subsection [1,] 2, the

15-29 division shall immediately notify the employer of the claim.

15-30 [3.] 4. For the purposes of this section, the employer has the burden of

15-31 proving that he provided mandatory industrial insurance coverage for the

15-32 employee or that he was not required to maintain industrial insurance for

15-33 the employee.

15-34 [4.] 5. Any employer who has failed to provide mandatory coverage

15-35 required by the provisions of chapters 616A to 616D, inclusive, of NRS is

15-36 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 [5.] 6. The division:

15-40 (a) May recover from the employer the payments made by the division

15-41 that are described in subsection [4] 5 and any accrued interest by bringing a

15-42 civil action in district court.

16-1 (b) In any civil action brought against the employer, is not required to

16-2 prove that negligent conduct by the employer was the cause of the

16-3 employee’s injury.

16-4 (c) May enter into a contract with any person to assist in the collection

16-5 of any liability of an uninsured employer.

16-6 (d) In lieu of a civil action, may enter into an agreement or settlement

16-7 regarding the collection of any liability of an uninsured employer.

16-8 [6.] 7. The division shall:

16-9 (a) Determine whether the employer was insured within 30 days after

16-10 receiving notice of the claim from the employee.

16-11 (b) Assign the claim to the [system] third-party administrator or

16-12 insurer designated pursuant to subsection 1 for administration [of the

16-13 claim, payment of benefits and reimbursement of costs of administration

16-14 and benefits paid to the system. Upon determining that a claim is invalid,

16-15 the system] and payment of compensation.

16-16 Upon determining whether the claim is accepted or denied, the

16-17 designated third-party administrator or insurer shall notify the [claimant,]

16-18 injured employee, the named employer and the division [that the claim will

16-19 not be assigned for benefits from the uninsured employers’ claim fund.

16-20 7.] of its determination.

16-21 (c) Upon demonstration of the:

16-22 (1) Costs incurred by the designated third-party administrator or

16-23 insurer to administer the claim or pay compensation to the injured

16-24 employee; or

16-25 (2) Amount that the designated third-party administrator or insurer

16-26 will pay for administrative expenses or compensation to the injured

16-27 employee and that such amounts are justified by the circumstances of the

16-28 claim,

16-29 the division shall authorize payment from the uninsured employers’

16-30 claim fund.

16-31 8. Any party aggrieved by a [decision] determination regarding the

16-32 administration of an assigned claim or a [decision] determination made by

16-33 the division or by the [system] designated third-party administrator or

16-34 insurer regarding any claim made pursuant to this section may appeal that

16-35 [decision] determination within 60 days after the [decision] determination

16-36 is rendered to the hearings division of the department of administration in

16-37 the manner provided by NRS 616C.305 and 616C.315 to 616C.385,

16-38 inclusive.

16-39 [8.] 9. All insurers shall bear a proportionate amount of a claim made

16-40 pursuant to chapters 616A to 616D, inclusive, of NRS, and are entitled to a

16-41 proportionate amount of any collection made pursuant to this section as an

16-42 offset against future liabilities.

17-1 [9.] 10. An uninsured employer is liable for the interest on any amount

17-2 paid on his claims from the uninsured employers’ claim fund. The interest

17-3 must be calculated at a rate equal to the prime rate at the largest bank in

17-4 Nevada, as ascertained by the commissioner of financial institutions, on

17-5 January 1 or July 1, as the case may be, immediately preceding the date of

17-6 the claim, plus 3 percent, compounded monthly, from the date the claim is

17-7 paid from the fund until payment is received by the division from the

17-8 employer.

17-9 [10.] 11. Attorney’s fees recoverable by the division pursuant to this

17-10 section must be:

17-11 (a) If a private attorney is retained by the division, paid at the usual and

17-12 customary rate for that attorney.

17-13 (b) If the attorney is an employee of the division, paid at the rate

17-14 established by regulations adopted by the division.

17-15 Any money collected must be deposited to the uninsured employers’ claim

17-16 fund.

17-17 [11.] 12. In addition to any other liabilities provided for in this section,

17-18 the administrator may impose an administrative fine of not more than

17-19 $10,000 against an employer if the employer fails to provide mandatory

17-20 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:

17-23 616C.355 At any time 10 or more days before a scheduled hearing

17-24 before an appeals officer, the administrator [, the manager or the

17-25 manager’s] or the administrator’s designee, a party shall mail or deliver to

17-26 the opposing party any affidavit or declaration which he proposes to

17-27 introduce into evidence and notice to the effect that unless the opposing

17-28 party, within 7 days after the mailing or delivery of such affidavit or

17-29 declaration, mails or delivers to the proponent a request to cross-examine

17-30 the affiant or declarant, his right to cross-examine the affiant or declarant is

17-31 waived and the affidavit or declaration, if introduced into evidence, will

17-32 have the same effect as if the affiant or declarant had given sworn

17-33 testimony before the appeals officer, the administrator [, the manager or the

17-34 manager’s] or the administrator’s designee.

17-35 Sec. 27. NRS 616C.385 is hereby amended to read as follows:

17-36 616C.385 If a party petitions the district court for judicial review of a

17-37 final decision of an appeals officer, the [manager or the manager’s]

17-38 administrator or the administrator’s designee, and the petition is found by

17-39 the district court to be frivolous or brought without reasonable grounds, the

17-40 district court may order costs and a reasonable attorney’s fee to be paid by

17-41 the petitioner.

18-1 Sec. 28. NRS 616D.050 is hereby amended to read as follows:

18-2 616D.050 1. Appeals officers, the administrator [, the manager and

18-3 the manager’s] and the administrator’s designee, in conducting hearings or

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 the

18-7 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 or

18-13 proceeding.

18-14 (g) Permit discovery by deposition or interrogatories.

18-15 (h) Initiate and hold conferences for the settlement or simplification of

18-16 issues.

18-17 (i) Dispose of procedural requests or similar matters.

18-18 (j) Generally regulate and guide the course of a pending hearing or

18-19 proceeding.

18-20 2. Hearing officers, in conducting hearings or other proceedings

18-21 pursuant to the provisions of chapters 616A to 616D, inclusive, of NRS or

18-22 regulations adopted pursuant to those chapters, may:

18-23 (a) Issue subpoenas requiring the attendance of any witness or the

18-24 production of books, accounts, papers, records and documents that are

18-25 relevant to the dispute for which the hearing or other proceeding is being

18-26 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 of

18-30 issues.

18-31 (e) Dispose of procedural requests or similar matters.

18-32 (f) Generally regulate and guide the course of a pending hearing or

18-33 proceeding.

18-34 Sec. 29. NRS 616D.070 is hereby amended to read as follows:

18-35 616D.070 If any person:

18-36 1. Disobeys an order of an appeals officer, a hearing officer, the

18-37 administrator [, the manager or the manager’s] or the administrator’s

18-38 designee, or a subpoena issued by the [manager, manager’s designee,]

18-39 administrator, administrator’s designee, appeals officer, hearing officer,

18-40 inspector or examiner;

18-41 2. Refuses to permit an inspection; or

18-42 3. As a witness, refuses to testify to any matter for which he may be

18-43 lawfully interrogated,

19-1 the district judge of the county in which the person resides, on application

19-2 of the appeals officer, the hearing officer, the administrator [, the manager

19-3 or the manager’s] or the administrator’s designee, shall compel obedience

19-4 by attachment proceedings as for contempt, as in the case of disobedience

19-5 of the requirements of subpoenas issued from the court on a refusal to

19-6 testify therein.

19-7 Sec. 30. NRS 616D.080 is hereby amended to read as follows:

19-8 616D.080 1. Each officer who serves a subpoena is entitled to

19-9 receive the same fees as a sheriff.

19-10 2. Each witness who appears, in obedience to a subpoena which has

19-11 been issued pursuant to this chapter or chapter 616A, 616B or 616C of

19-12 NRS, before an appeals officer, a hearing officer, the administrator [, the

19-13 manager or the manager’s] or the administrator’s designee, is entitled to

19-14 receive for his attendance the fees and mileage provided for witnesses in

19-15 civil cases in courts of record. For subpoenas issued on behalf of this

19-16 state or an officer or agency thereof, the fees and mileage are not

19-17 required to be tendered at the same time that the subpoena is delivered to

19-18 the person named therein.

19-19 3. The appeals officer, hearing officer, administrator [, manager or the

19-20 manager’s] or the administrator’s designee shall:

19-21 (a) Authorize payment from his administrative budget of the fees and

19-22 mileage due to such a witness; or

19-23 (b) Impose those costs upon the party at whose instance the witness was

19-24 subpoenaed or, for good cause shown, upon any other party.

19-25 Sec. 31. NRS 616D.100 is hereby amended to read as follows:

19-26 616D.100 1. A transcribed copy of the evidence and proceedings, or

19-27 any specific part thereof, of any final hearing or investigation, made by a

19-28 stenographer appointed by an appeals officer, a hearing officer, the

19-29 administrator [, the manager or the manager’s] or the administrator’s

19-30 designee, being certified by that stenographer to be a true and correct

19-31 transcript of the testimony in the final hearing or investigation, or of a

19-32 particular witness, or of a specific part thereof, and carefully compared by

19-33 him with his original notes, and to be a correct statement of the evidence

19-34 and proceedings had on the final hearing or investigation so purporting to

19-35 be taken and transcribed, may be received in evidence with the same effect

19-36 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 party

19-38 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:

19-40 616D.200 1. If the administrator finds that an employer within the

19-41 provisions of NRS 616B.633 has failed to provide and secure

19-42 compensation as required by the terms of chapters 616A to 616D,

19-43 inclusive, of NRS or that the employer has provided and secured that

20-1 compensation but has failed to maintain it, he shall make a determination

20-2 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 or

20-4 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 state

20-6 without providing, securing or maintaining that compensation, but not to

20-7 exceed 6 years; and

20-8 (b) [The actual costs incurred by the system in reinstating the policy, but

20-9 not to exceed 10 percent of the premiums owed by the employer; and

20-10 (c)] Interest at a rate determined pursuant to NRS 17.130 computed

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 the

20-13 uninsured employers’ claim fund.

20-14 2. The administrator shall deliver a copy of his determination to the

20-15 employer. An employer who is aggrieved by the determination of the

20-16 administrator may appeal from the determination pursuant to subsection 2

20-17 of NRS 616D.220.

20-18 3. Any employer within the provisions of NRS 616B.633 who fails to

20-19 provide, secure or maintain compensation as required by the terms of

20-20 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 after

20-23 the previous offense, guilty of a category C felony and shall be punished as

20-24 provided in NRS 193.130.

20-25 Any criminal penalty imposed must be in addition to the amount charged

20-26 pursuant to subsection 1.

20-27 Sec. 33. NRS 616D.210 is hereby amended to read as follows:

20-28 616D.210 1. Any person who:

20-29 (a) Is the legal or beneficial owner of 25 percent or more of a business

20-30 which terminates operations while owing a premium , interest or penalty to

20-31 the system or a private carrier and becomes, or induces or procures another

20-32 person to become, the legal or beneficial owner of 25 percent or more of a

20-33 new business engaging in similar operations; or

20-34 (b) Knowingly aids or abets another person in carrying out such

20-35 conduct,

20-36 is liable in a civil action for the payment of any premium, interest and

20-37 penalties owed to the system or the private carrier and the reasonable costs

20-38 incurred by the system or private carrier to investigate and act upon such

20-39 conduct.

20-40 2. The system or private carrier shall not insure any business which

20-41 engages in the conduct described in subsection 1 unless the premium and

20-42 any interest and penalties owed to the [system or private carrier] prior

20-43 insurer have been paid [.] to that insurer.

21-1 3. As used in this section, "business" includes, but is not limited to, a

21-2 firm, sole proprietorship, voluntary association or private corporation.

21-3 Sec. 34. NRS 616D.220 is hereby amended to read as follows:

21-4 616D.220 1. If the administrator finds that any employer or any

21-5 employee, officer or agent of any employer has knowingly:

21-6 (a) Made a false statement or has knowingly failed to report a material

21-7 fact concerning the amount of payroll upon which a premium is based; or

21-8 (b) Misrepresented the classification or duties of an employee,

21-9 he shall make a determination thereon and charge the employer’s account

21-10 an amount equal to [three times] the amount of the premium [due.] that

21-11 would have been due had the proper information been submitted. The

21-12 administrator shall deliver a copy of his determination to the employer. The

21-13 money collected pursuant to this subsection must be paid into the

21-14 uninsured employers’ claim fund.

21-15 2. An employer who is aggrieved by the determination of the

21-16 administrator may appeal from the determination by filing a request for a

21-17 hearing. The request must be filed within 30 days after the date on which a

21-18 copy of the determination was delivered to the employer. The administrator

21-19 shall hold a hearing within 30 days after he receives the request. The

21-20 determination of the administrator made pursuant to a hearing is a final

21-21 decision for the purposes of judicial review. The amount of the

21-22 determination as finally decided by the administrator becomes due within

21-23 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 to

21-26 report a material fact concerning the amount of payroll upon which a

21-27 premium is based; or

21-28 (b) Misrepresents the classification or duties of an employee,

21-29 is guilty of a gross misdemeanor. Any criminal penalty imposed must be in

21-30 addition to the amount charged pursuant to subsection 1.

21-31 Sec. 35. NRS 617.105 is hereby amended to read as follows:

21-32 617.105 Any real estate licensee doing business in this state and

21-33 receiving wages, commissions or other compensation based upon sales

21-34 shall be deemed for the purpose of this chapter to earn wages of [$900]

21-35 $1,500 per month.

21-36 Sec. 36. NRS 617.207 is hereby amended to read as follows:

21-37 617.207 1. If a quasi-public or private corporation or limited-liability

21-38 company is required to be insured pursuant to this chapter, an officer of the

21-39 corporation or a manager of the company who:

21-40 (a) Receives pay for service performed shall be deemed for the purposes

21-41 of this chapter to receive a minimum pay of $6,000 per [calendar] year the

21-42 policy of industrial insurance for the employer is effective and a

22-1 maximum pay of $36,000 per [calendar year.] year the policy of industrial

22-2 insurance is effective.

22-3 (b) Does not receive pay for services performed shall be deemed for the

22-4 purposes of this chapter to receive a minimum pay of $500 per month or

22-5 $6,000 per [calendar year.] year the policy of industrial insurance is

22-6 effective.

22-7 2. An officer or manager who does not receive pay for services

22-8 performed may elect to reject coverage by filing written notice thereof with

22-9 the corporation or company and the insurer. The rejection is effective upon

22-10 receipt of the notice by the insurer.

22-11 3. An officer or manager who has rejected coverage may rescind that

22-12 rejection by filing written notice thereof with the corporation or company

22-13 and the insurer. The rescission is effective upon receipt of the notice by the

22-14 insurer.

22-15 Sec. 37. NRS 617.401 is hereby amended to read as follows:

22-16 617.401 1. The division shall designate one:

22-17 (a) Third-party administrator who has a valid certificate issued by the

22-18 commissioner pursuant to NRS 683A.085; or

22-19 (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. The

22-22 designation must be made pursuant to reasonable competitive bidding

22-23 procedures established by the administrator.

22-24 2. An employee may receive compensation from the uninsured

22-25 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 performed

22-28 in this state;

22-29 (c) He files a claim for compensation with the division; and

22-30 (d) He makes an irrevocable assignment to the division of a right to be

22-31 subrogated to the rights of the employee pursuant to NRS 616C.215.

22-32 [2.] 3. If the division receives a claim pursuant to subsection [1,] 2, the

22-33 division shall immediately notify the employer of the claim.

22-34 [3.] 4. For the purposes of this section, the employer has the burden of

22-35 proving that he provided mandatory coverage for occupational diseases for

22-36 the employee or that he was not required to maintain industrial insurance

22-37 for the employee.

22-38 [4.] 5. Any employer who has failed to provide mandatory coverage

22-39 required by the provisions of this chapter is liable for all payments made on

22-40 his behalf, including, but not limited to, any benefits, administrative costs

22-41 or attorney’s fees paid from the uninsured employers’ claim fund or

22-42 incurred by the division.

23-1 [5.] 6. The division:

23-2 (a) May recover from the employer the payments made by the division

23-3 that are described in subsection [4] 5 and any accrued interest by bringing a

23-4 civil action in district court.

23-5 (b) In any civil action brought against the employer, is not required to

23-6 prove that negligent conduct by the employer was the cause of the

23-7 occupational disease.

23-8 (c) May enter into a contract with any person to assist in the collection

23-9 of any liability of an uninsured employer.

23-10 (d) In lieu of a civil action, may enter into an agreement or settlement

23-11 regarding the collection of any liability of an uninsured employer.

23-12 [6.] 7. The division shall:

23-13 (a) Determine whether the employer was insured within 30 days after

23-14 receiving the claim from the employee.

23-15 (b) Assign the claim to the [system] third-party administrator or

23-16 insurer designated pursuant to subsection 1 for administration [of the

23-17 claim, payment of benefits and reimbursement of costs of administration

23-18 and benefits paid to the system. Upon determining that a claim is invalid,

23-19 the system] and payment of compensation.

23-20 Upon determining whether the claim is accepted or denied, the

23-21 designated third-party administrator or insurer shall notify the [claimant,]

23-22 injured employee, the named employer and the division [that the claim will

23-23 not be assigned for benefits from the uninsured employers’ claim fund.

23-24 7.] of its determination.

23-25 (c) Upon demonstration of the:

23-26 (1) Costs incurred by the designated third-party administrator or

23-27 insurer to administer the claim or pay compensation to the injured

23-28 employee; or

23-29 (2) Amount that the designated third-party administrator or insurer

23-30 will pay for administrative expenses or compensation to the injured

23-31 employee and that such amounts are justified by the circumstances of the

23-32 claim,

23-33 the division shall authorize payment from the uninsured employers’

23-34 claim fund.

23-35 8. Any party aggrieved by a [decision] determination regarding the

23-36 administration of an assigned claim or a [decision] determination made by

23-37 the division or by the [system] designated third-party administrator or

23-38 insurer regarding any claim made pursuant to this section may appeal that

23-39 [decision] determination within 60 days after the [decision] determination

23-40 is rendered to the hearings division of the department of administration in

23-41 the manner provided by NRS 616C.305 and 616C.315 to 616C.385,

23-42 inclusive.

24-1 [8.] 9. All insurers shall bear a proportionate amount of a claim made

24-2 pursuant to this chapter, and are entitled to a proportionate amount of any

24-3 collection made pursuant to this section as an offset against future

24-4 liabilities.

24-5 [9.] 10. An uninsured employer is liable for the interest on any amount

24-6 paid on his claims from the uninsured employers’ claim fund. The interest

24-7 must be calculated at a rate equal to the prime rate at the largest bank in

24-8 Nevada, as ascertained by the commissioner of financial institutions, on

24-9 January 1 or July 1, as the case may be, immediately preceding the date of

24-10 the claim, plus 3 percent, compounded monthly, from the date the claim is

24-11 paid from the fund until payment is received by the division from the

24-12 employer.

24-13 [10.] 11. Attorney’s fees recoverable by the division pursuant to this

24-14 section must be:

24-15 (a) If a private attorney is retained by the division, paid at the usual and

24-16 customary rate for that attorney.

24-17 (b) If the attorney is an employee of the division, paid at the rate

24-18 established by regulations adopted by the division.

24-19 Any money collected must be deposited to the uninsured employers’ claim

24-20 fund.

24-21 [11.] 12. In addition to any other liabilities provided for in this section,

24-22 the administrator may impose an administrative fine of not more than

24-23 $10,000 against an employer if the employer fails to provide mandatory

24-24 coverage required by the provisions of this chapter.

24-25 Sec. 38. NRS 209.189 is hereby amended to read as follows:

24-26 209.189 1. The fund for prison industries is hereby created as an

24-27 enterprise fund to receive all revenues derived from programs for

24-28 vocational training and employment of offenders and the operation of the

24-29 prison farm and to receive all revenues raised by the department from

24-30 private employers for the leasing of space, facilities or equipment within

24-31 the institutions or facilities of the department of prisons.

24-32 2. Money in the fund must be maintained in separate budgetary

24-33 accounts, including at least one account for industrial programs and one for

24-34 the prison farm.

24-35 3. Subject to the approval of the state board of examiners, the director

24-36 may expend money deposited in this fund for the promotion and

24-37 development of these programs and the prison farm. The director shall

24-38 expend money deposited in this fund to pay [to the state industrial

24-39 insurance system] the premiums required for coverage of offenders under

24-40 the modified program of industrial insurance adopted pursuant to NRS

24-41 616B.185.

24-42 4. The interest and income earned on the money in the fund, after

24-43 deducting any applicable charges, must be credited to the fund.

25-1 5. If money owed to the department for the leasing of space, facilities

25-2 or equipment within the institutions or facilities of the department or for the

25-3 purchase of goods or services, which must be deposited into the fund for

25-4 prison industries pursuant to subsection 1, is not paid on or before the date

25-5 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 fraction

25-7 thereof from the date on which the money became due until the date of

25-8 payment.

25-9 Sec. 39. NRS 280.270 is hereby amended to read as follows:

25-10 280.270 The county auditor or comptroller of a county in which a

25-11 department is located shall comply with the provisions of NRS [616B.230]

25-12 616B.224 on behalf of the department.

25-13 Sec. 40. NRS 680A.200 is hereby amended to read as follows:

25-14 680A.200 1. [The] Except as otherwise provided in NRS 616B.472,

25-15 the commissioner may refuse to continue or may suspend, limit or revoke

25-16 an insurer’s certificate of authority if he finds after a hearing thereon, or

25-17 upon waiver of hearing by the insurer, that the insurer has:

25-18 (a) Violated or failed to comply with any lawful order of the

25-19 commissioner;

25-20 (b) Conducted his business in an unsuitable manner;

25-21 (c) Willfully violated or willfully failed to comply with any lawful

25-22 regulation of the commissioner; or

25-23 (d) Violated any provision of this code other than one for violation of

25-24 which suspension or revocation is mandatory.

25-25 In lieu of such a suspension or revocation, the commissioner may levy upon

25-26 the insurer, and the insurer shall pay forthwith, an administrative fine of not

25-27 more than $2,000 for each act or violation.

25-28 2. Except as otherwise provided in chapter 696B of NRS, the

25-29 commissioner shall suspend or revoke an insurer’s certificate of authority

25-30 on any of the following grounds if he finds after a hearing thereon that the

25-31 insurer:

25-32 (a) Is in unsound condition, is being fraudulently conducted, or is in

25-33 such a condition or is using such methods and practices in the conduct of its

25-34 business as to render its further transaction of insurance in this state

25-35 currently or prospectively hazardous or injurious to policyholders or to the

25-36 public.

25-37 (b) With such frequency as to indicate its general business practice in

25-38 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 an

25-41 insured or in favor of a third person with respect to the liability of an

25-42 insured to the third person; or

26-1 (2) Without just cause compels insureds or claimants to accept less

26-2 than the amount due them or to employ attorneys or to bring suit against the

26-3 insurer or such an insured to secure full payment or settlement of such

26-4 claims.

26-5 (c) Refuses to be examined, or its directors, officers, employees or

26-6 representatives refuse to submit to examination relative to its affairs, or to

26-7 produce its books, papers, records, contracts, correspondence or other

26-8 documents for examination by the commissioner when required, or refuse

26-9 to perform any legal obligation relative to the examination.

26-10 (d) Except as otherwise provided in NRS 681A.110, has reinsured all its

26-11 risks in their entirety in another insurer.

26-12 (e) Has failed to pay any final judgment rendered against it in this state

26-13 upon any policy, bond, recognizance or undertaking as issued or guaranteed

26-14 by it, within 30 days after the judgment became final or within 30 days after

26-15 dismissal of an appeal before final determination, whichever date is the

26-16 later.

26-17 3. The commissioner may, without advance notice or a hearing

26-18 thereon, immediately suspend the certificate of authority of any insurer as

26-19 to which proceedings for receivership, conservatorship, rehabilitation or

26-20 other delinquency proceedings have been commenced in any state by the

26-21 public officer who supervises insurance for that state.

26-22 4. No proceeding to suspend, limit or revoke a certificate of authority

26-23 pursuant to this section may be maintained unless it is commenced by the

26-24 giving of notice to the insurer within 5 years after the occurrence of the

26-25 charged act or omission. This limitation does not apply if the commissioner

26-26 finds fraudulent or willful evasion of taxes.

26-27 Sec. 41. Section 11 of Senate Bill No. 92 of this session is hereby

26-28 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 the

26-31 state insurance fund, or the provisions of chapters 616A to 616D,

26-32 inclusive, or chapter 617 of NRS making the compensation to the

26-33 workman provided in those chapters exclusive of any other remedy

26-34 on the part of the workman, [shall be] are held invalid, each of

26-35 those chapters [shall] must be thereby invalidated, except the

26-36 provisions of NRS 616B.101, and an accounting according to the

26-37 justice of the case [shall] must be had on [moneys] money received.

26-38 In other respects an adjudication of invalidity of any part of this

26-39 chapter or chapter 616A, 616C , [or] 616D or 617 of NRS [shall]

26-40 must not affect the validity of any of those chapters as a whole or

26-41 any part thereof.

27-1 Sec. 42. Section 15 of Senate Bill No. 92 of this session is hereby

27-2 amended to read as follows:

27-3 Sec. 15. NRS 616B.224 is hereby amended to read as follows:

27-4 616B.224 1. Every private or public employer who is not a

27-5 self-insured employer or a member of an association of self-insured

27-6 public or private employers shall, at intervals and on or before dates

27-7 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 services

27-10 performed;

27-11 (2) The amount of tips reported to him by every employee

27-12 pursuant to 26 U.S.C. § 6053(a) whose tips in cash totaled $20 or

27-13 more; and

27-14 (3) A segregation of employment in accordance with the

27-15 requirements of the commissioner; and

27-16 (b) Any premium due pursuant to the terms of the policy of

27-17 industrial insurance.

27-18 The payroll reports and any premium may be furnished to the

27-19 insurer on different dates, as established by the insurer.

27-20 2. Failure of any employer to comply with the provisions of this

27-21 section operates as a rejection of chapters 616A to 616D, inclusive,

27-22 and chapter 617 of NRS, effective on the date established by the

27-23 insurer pursuant to subsection 1. The insurer shall notify the

27-24 administrator of each such rejection.

27-25 3. The insurer shall notify any employer or his representative

27-26 by first-class mail of any failure on his part to comply with the

27-27 provisions of this section. The notice or its omission does not

27-28 modify or waive the requirements or effective rejection of chapters

27-29 616A to 616D, inclusive, and chapter 617 of NRS as otherwise

27-30 provided in those chapters.

27-31 4. The system may impose a penalty not to exceed 10 percent

27-32 of the premiums which are due for the failure of an employer

27-33 insured by the system to submit the information and premium

27-34 required in subsection 1 within the time allowed, unless the

27-35 employer has applied for and been granted an extension of that time

27-36 by the manager.

27-37 5. To the extent permitted by federal law, the insurer shall

27-38 vigorously pursue the collection of premiums that are due under the

27-39 provisions of chapters 616A to 616D, inclusive, and chapter 617 of

27-40 NRS even if an employer’s debts have been discharged in a

27-41 bankruptcy proceeding.

27-42 6. Every employer insured by the system shall pay its premiums

27-43 to the state insurance fund. All money received by the system

28-1 pursuant to this section must be deposited with the state treasurer to

28-2 the credit of the state insurance fund.

28-3 Sec. 43. Section 41 of Senate Bill No. 92 of this session is hereby

28-4 amended to read as follows:

28-5 Sec. 41. NRS 616D.050 is hereby amended to read as follows:

28-6 616D.050 1. Appeals officers, the administrator and the

28-7 administrator’s designee, in conducting hearings or other

28-8 proceedings pursuant to the provisions of chapters 616A to 616D,

28-9 inclusive, or chapter 617 of NRS or regulations adopted pursuant to

28-10 those chapters may:

28-11 (a) Issue subpoenas requiring the attendance of any witness or

28-12 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 hearing

28-18 or proceeding.

28-19 (g) Permit discovery by deposition or interrogatories.

28-20 (h) Initiate and hold conferences for the settlement or

28-21 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 hearing

28-24 or proceeding.

28-25 2. Hearing officers, in conducting hearings or other

28-26 proceedings pursuant to the provisions of chapters 616A to 616D,

28-27 inclusive, or chapter 617 of NRS or regulations adopted pursuant to

28-28 those chapters, may:

28-29 (a) Issue subpoenas requiring the attendance of any witness or

28-30 the production of books, accounts, papers, records and documents

28-31 that are relevant to the dispute for which the hearing or other

28-32 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 or

28-36 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 hearing

28-39 or proceeding.

29-1 Sec. 44. Section 43 of Senate Bill No. 92 of this session is hereby

29-2 amended to read as follows:

29-3 Sec. 43. NRS 616D.080 is hereby amended to read as follows:

29-4 616D.080 1. Each officer who serves a subpoena is entitled to

29-5 receive the same fees as a sheriff.

29-6 2. Each witness who appears, in obedience to a subpoena which

29-7 has been issued pursuant to this chapter or chapter 616A, 616B ,

29-8 [or] 616C or 617 of NRS, before an appeals officer, a hearing

29-9 officer, the administrator or the administrator’s designee, is entitled

29-10 to receive for his attendance the fees and mileage provided for

29-11 witnesses in civil cases in courts of record. For subpoenas issued on

29-12 behalf of this state or an officer or agency thereof, the fees and

29-13 mileage are not required to be tendered at the same time that the

29-14 subpoena is delivered to the person named therein.

29-15 3. The appeals officer, hearing officer, administrator or the

29-16 administrator’s designee shall:

29-17 (a) Authorize payment from his administrative budget of the fees

29-18 and mileage due to such a witness; or

29-19 (b) Impose those costs upon the party at whose instance the

29-20 witness was subpoenaed or, for good cause shown, upon any other

29-21 party.

29-22 Sec. 45. Section 1 of Senate Bill No. 175 of this session is hereby

29-23 amended to read as follows:

29-24 Section 1. NRS 616D.200 is hereby amended to read as

29-25 follows:

29-26 616D.200 1. If the administrator finds that an employer

29-27 within the provisions of NRS 616B.633 has failed to provide and

29-28 secure compensation as required by the terms of chapters 616A to

29-29 616D, inclusive, or chapter 617 of NRS or that the employer has

29-30 provided and secured that compensation but has failed to maintain

29-31 it, he shall make a determination thereon and may charge the

29-32 employer an amount equal to the sum of:

29-33 (a) The premiums that would otherwise have been owed to the

29-34 system or a private carrier pursuant to the terms of chapters 616A to

29-35 616D, inclusive, or chapter 617 of NRS for the period that the

29-36 employer was doing business in this state without providing,

29-37 securing or maintaining that compensation, but not to exceed 6

29-38 years; and

29-39 (b) Interest at a rate determined pursuant to NRS 17.130

29-40 computed from the time that the premiums should have been
29-41 paid.

29-42 The money collected pursuant to this subsection must be paid into

29-43 the uninsured employers’ claim fund.

30-1 2. The administrator shall deliver a copy of his determination to

30-2 the employer. An employer who is aggrieved by the determination

30-3 of the administrator may appeal from the determination pursuant to

30-4 subsection 2 of NRS 616D.220.

30-5 3. Any employer within the provisions of NRS 616B.633 who

30-6 fails to provide, secure or maintain compensation as required by the

30-7 terms of chapters 616A to 616D, inclusive, or chapter 617 of NRS,

30-8 [is:

30-9 (a) For the first offense, guilty of a misdemeanor.

30-10 (b) For a second or subsequent offense committed within 7 years

30-11 after the previous offense, guilty of a category C felony and shall be

30-12 punished as provided in NRS 193.130.] shall be punished as

30-13 follows:

30-14 (a) Except as otherwise provided in paragraph (b), if it is a first

30-15 offense, for a misdemeanor.

30-16 (b) If it is a first offense and, during the period the employer

30-17 was doing business in this state without providing, securing or

30-18 maintaining compensation, one of his employees suffers an injury

30-19 arising out of and in the course of his employment that results in

30-20 substantial bodily harm to the employee or the death of the

30-21 employee, for a category C felony punishable by imprisonment in

30-22 the state prison for a minimum term of not less than 1 year and a

30-23 maximum term of not more than 5 years and by a fine of not less

30-24 than $1,000 nor more than $50,000.

30-25 (c) If it is a second or subsequent offense committed within 7

30-26 years after the previous offense, for a category C felony

30-27 punishable by imprisonment in the state prison for a minimum

30-28 term of not less than 1 year and a maximum term of not more

30-29 than 5 years and by a fine of not less than $1,000 nor more than

30-30 $50,000.

30-31 4. In addition to any other penalty imposed pursuant to

30-32 paragraph (b) or (c) of subsection 3, the court shall order the

30-33 employer to:

30-34 (a) Pay restitution to an insurer who has incurred costs as a

30-35 result of the violation in an amount equal to the costs that have

30-36 been incurred minus any costs incurred that have otherwise been

30-37 recovered; and

30-38 (b) Reimburse the uninsured employers’ claim fund for all

30-39 payments made from the fund on the employer’s behalf,

30-40 including any benefits, administrative costs or attorney’s fees paid

30-41 from the fund, that have not otherwise been recovered pursuant to

30-42 NRS 616C.220.

31-1 5. Any criminal penalty imposed pursuant to subsections 3

31-2 and 4 must be in addition to the amount charged pursuant to

31-3 subsection 1.

31-4 Sec. 46. Senate Bill No. 175 of this session is hereby amended by

31-5 adding thereto a new section designated sec. 2, following section 1, to read

31-6 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 are

31-10 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, 19

31-13 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 2

31-16 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 SECTIONS

 

31-20 616A.235 "Extended claim" defined.

31-21 616B.218 Payment of premiums or deposit upon entering or

31-22 resuming business.

31-23 616B.230 Payment of premiums by public employers. [Effective

31-24 July 1, 1999.]

31-25 616B.389 Membership in association: Required period of

31-26 insurance coverage by system upon termination or cancellation of

31-27 membership; determination of premium; exception.

31-28 616C.535 System authorized to execute agreement for provision of

31-29 vocational rehabilitation services by state or federal agency; use of

31-30 programs located outside state.

~