Senate Bill No. 55–Committee on Commerce and Labor

Prefiled January 28, 1999

(On Behalf of Legislative Committee on Workers’ Compensation)

____________

Referred to Committee on Commerce and Labor

 

SUMMARY—Makes various changes regarding industrial insurance. (BDR 53-387)

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; requiring hearing officers, appeals officers and appeals panels to author their own decisions; requiring the senior appeals officer to conduct written evaluations of the appeals officers employed by the hearings division of the department of administration; authorizing a party aggrieved by a decision of an appeals officer to appeal from that decision to an appeals panel; requiring the chief of the hearings division to appoint appeals officers; requiring an appeals officer to have a certain amount of experience practicing law in claims for compensation for industrial injuries before his appointment; requiring the chief of the hearings division to adopt regulations that govern the conduct of hearing and appeals officers; requiring the chief of the hearings division to prescribe by regulation the training, continuing education and standards for performance of appeals officers and compile certain information regarding the performance of appeals officers; 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.450 is hereby amended to read as follows:

1-2 616A.450 1. Any claimant may request the appointment of the

1-3 Nevada attorney for injured workers to represent him. The request must be

1-4 made in writing.

1-5 2. The appeals officer , appeals panel or administrator, as the case may

1-6 be, shall consider each request within a reasonable time and shall make any

1-7 inquiry as [he] the appeals officer, appeals panel or administrator deems

1-8 necessary. If [he] the appeals officer, appeals panel or administrator finds

1-9 that the claimant would be better served by legal representation in the case,

2-1 [he] the appeals officer, appeals panel or administrator shall appoint the

2-2 Nevada attorney for injured workers to represent the claimant. Once the

2-3 Nevada attorney for injured workers has been appointed to represent a

2-4 claimant, the Nevada attorney for injured workers is authorized to represent

2-5 the claimant at any level of proceedings if, in the opinion of the Nevada

2-6 attorney for injured workers, the representation is necessary.

2-7 Sec. 2. NRS 616A.455 is hereby amended to read as follows:

2-8 616A.455 1. Except as otherwise provided in subsection 3, the

2-9 Nevada attorney for injured workers shall, when appointed by an appeals

2-10 officer , an appeals panel or the administrator, represent without charge a

2-11 claimant before the appeals officer, appeals panel, administrator, district

2-12 court or supreme court. In addition, the Nevada attorney for injured

2-13 workers may give advice regarding a claimant’s rights before a hearing

2-14 officer and the procedure for enforcing those rights.

2-15 2. When representing a claimant, the Nevada attorney for injured

2-16 workers shall:

2-17 (a) Advise the claimant and present his case to the appeals officer ,

2-18 appeals panel or administrator; and

2-19 (b) Present in the district court or supreme court an appeal from the

2-20 decision of the appeals officer , appeals panel or administrator if, in the

2-21 opinion of the Nevada attorney for injured workers, the appeal is merited.

2-22 3. If the Nevada attorney for injured workers determines, in accordance

2-23 with the guidelines adopted pursuant to subsection 4, that a claim is

2-24 frivolous or lacks merit, he may refuse to represent a claimant.

2-25 4. The Nevada attorney for injured workers shall establish the policies

2-26 to be followed in determining whether a claim is frivolous or lacks merit.

2-27 Sec. 3. NRS 616B.018 is hereby amended to read as follows:

2-28 616B.018 1. The administrator shall establish a method of indexing

2-29 claims for compensation that will make information concerning the

2-30 claimants of an insurer available to other insurers and the fraud control unit

2-31 for industrial insurance established pursuant to NRS 228.420.

2-32 2. Every insurer shall provide information as required by the

2-33 administrator for establishing and maintaining the index of claims.

2-34 3. If an employee files a claim with an insurer, the insurer is entitled to

2-35 receive from the administrator a list of the prior claims of the employee. If

2-36 the insurer desires to inspect the files related to the prior claims, he must

2-37 obtain the written consent of the employee.

2-38 4. Any information obtained from the index of claims must be admitted

2-39 into evidence in any hearing before an appeals officer, an appeals panel, a

2-40 hearing officer or the administrator.

2-41 5. The division may assess and collect a reasonable fee for its services

2-42 provided pursuant to this section. The fee must be payable monthly or at

2-43 such other intervals as determined by the administrator.

3-1 6. If the administrator determines that an insurer has intentionally

3-2 failed to provide the information required by this section, the administrator

3-3 shall impose an administrative fine of $1,000 for each initial violation, or a

3-4 fine of $10,000 for a second or subsequent violation.

3-5 Sec. 4. NRS 616B.215 is hereby amended to read as follows:

3-6 616B.215 1. Except as otherwise provided in subsection 2:

3-7 (a) A principal contractor or an owner of property acting as a principal

3-8 contractor aggrieved by a letter issued pursuant to NRS 616B.645; or

3-9 (b) An employer aggrieved by a determination made pursuant to NRS

3-10 616C.585,

3-11 may appeal from the letter or determination by filing a notice of appeal

3-12 with the administrator within 30 days after the date of the letter or

3-13 determination.

3-14 2. An employer shall not seek to remove costs that have been charged

3-15 to his account by appealing to the administrator any issue that relates to a

3-16 claim for compensation if the issue was raised or could have been raised

3-17 before a hearing officer , [or] an appeals officer or an appeals panel

3-18 pursuant to NRS 616C.315 or 616C.345 [.] or section 8 of this act,

3-19 respectively.

3-20 3. The decision of the administrator is the final and binding

3-21 administrative determination of an appeal filed pursuant to this section, and

3-22 the whole record consists of all evidence taken at the hearing before the

3-23 administrator and any findings based thereon.

3-24 Sec. 5. Chapter 616C of NRS is hereby amended by adding thereto the

3-25 provisions set forth as sections 6 to 9, inclusive, of this act.

3-26 Sec. 6. 1. A hearing officer, an appeals officer or an appeals

3-27 panel:

3-28 (a) Shall, with respect to each appeal or contested claim for

3-29 compensation, make its own findings of fact, reach its own conclusions

3-30 of law and author the decision it renders; and

3-31 (b) Shall not solicit or accept findings of fact, conclusions of law or

3-32 decisions that have been drafted or proposed by another person or

3-33 governmental entity.

3-34 2. The provisions of this section do not prohibit a hearing officer, an

3-35 appeals officer or an appeals panel from soliciting or accepting

3-36 assistance with the copying, printing, typing or processing of the text of

3-37 findings of fact, conclusions of law or decisions, if such services do not

3-38 extend to assistance with creating the substantive content of such

3-39 documents.

3-40 Sec. 7. The senior appeals officer shall:

3-41 1. At least twice each year, conduct an evaluation of the performance

3-42 of each of the other appeals officers employed by the hearings division of

3-43 the department of administration. In conducting an evaluation pursuant

4-1 to this section, the senior appeals officer shall determine whether the

4-2 appeals officer being evaluated has:

4-3 (a) Met the standards for performance prescribed by the chief of the

4-4 hearings division pursuant to NRS 616C.295; and

4-5 (b) Rendered decisions in contested claims for compensation in a

4-6 timely manner as required pursuant to subsection 5 of NRS 616C.360.

4-7 2. Within 15 days after completing an evaluation pursuant to

4-8 subsection 1, prepare a written report of the evaluation and transmit a

4-9 copy to the chief of the hearings division of the department of

4-10 administration for compilation pursuant to NRS 616C.295.

4-11 3. In accordance with the requirements for training and continuing

4-12 education, standards and procedures prescribed by the chief of the

4-13 hearings division of the department of administration pursuant to NRS

4-14 616C.295, provide training to each of the other appeals officers employed

4-15 by the hearings division.

4-16 Sec. 8. 1. A party aggrieved by a decision of an appeals officer

4-17 relating to a claim for compensation may appeal from the decision by

4-18 filing a notice of appeal with the senior appeals officer within 15 days

4-19 after the date of the decision.

4-20 2. Upon the receipt of a notice of appeal filed pursuant to subsection

4-21 1, the senior appeals officer shall appoint an appeals panel that consists

4-22 of three appeals officers, none of whom may be the appeals officer who

4-23 rendered the decision from which the aggrieved party is appealing.

4-24 3. Except as otherwise provided in NRS 616C.380, the filing of a

4-25 notice of appeal does not automatically stay the enforcement of the

4-26 decision of an appeals officer. The appeals panel may order a stay, when

4-27 appropriate, upon the application of a party. If such an application is

4-28 submitted, the decision is automatically stayed until a determination is

4-29 made concerning the application. A determination on the application

4-30 must be made within 30 days after the filing of the application. If a stay

4-31 is not granted by the panel after reviewing the application, the decision

4-32 must be complied with within 10 days after the date of the refusal to

4-33 grant the stay.

4-34 4. Except as otherwise provided in this subsection, the appeals panel

4-35 shall, within 10 days after receiving a notice of appeal pursuant to this

4-36 section, schedule a hearing on the merits of the appeal for a date and

4-37 time within 45 days after its receipt of the notice, and give notice by mail

4-38 or by personal service to all parties to the matter and their attorneys or

4-39 agents at least 30 days before the date and time scheduled. The appeals

4-40 panel may, upon request, schedule the hearing for a date and time that is

4-41 not within 45 days after the appeals panel received the notice of appeal if

4-42 all parties to the appeal agree to the request. Notice given pursuant to

4-43 this subsection must include a statement that a party who is an injured

5-1 employee may be represented by a private attorney or seek assistance and

5-2 advice from the Nevada attorney for injured workers.

5-3 5. An appeal may be continued upon written stipulation of all

5-4 parties, or upon good cause shown.

5-5 6. Failure to file a notice of appeal within the period specified in

5-6 subsection 1 may be excused if the party aggrieved shows by a

5-7 preponderance of the evidence that he did not receive the notice of the

5-8 decision and the forms necessary to appeal the decision. The claimant,

5-9 employer or insurer shall notify the appeals officer of a change of

5-10 address.

5-11 Sec. 9. 1. A stenographic or electronic record must be kept of the

5-12 hearing before an appeals panel, and the rules of evidence applicable to

5-13 contested cases pursuant to chapter 233B of NRS apply to the hearing.

5-14 2. The scope of a hearing before an appeals panel is limited to

5-15 determining whether substantial evidence existed to support the decision

5-16 rendered by the appeals officer.

5-17 3. If necessary to resolve a medical question concerning an injured

5-18 employee’s condition, an appeals panel may refer the employee to a

5-19 physician or chiropractor chosen by the appeals panel. If the medical

5-20 question concerns the rating of a permanent disability, the appeals panel

5-21 may refer the employee to a rating physician or chiropractor. The rating

5-22 physician or chiropractor must be selected in rotation from the list of

5-23 qualified physicians or chiropractors maintained by the administrator

5-24 pursuant to subsection 2 of NRS 616C.490, unless the insurer and the

5-25 injured employee otherwise agree to a rating physician or chiropractor.

5-26 The insurer shall pay the costs of any examination requested by the

5-27 appeals panel.

5-28 4. A party to the appeal or the appeals panel may order a transcript

5-29 of the record of the hearing at any time before the seventh day after the

5-30 hearing. The transcript must be filed within 30 days after the date of the

5-31 order unless the appeals panel otherwise orders.

5-32 5. An appeals panel shall render its decision:

5-33 (a) If a transcript is ordered within 7 days after the hearing, within 30

5-34 days after the transcript is filed; or

5-35 (b) If a transcript has not been ordered, within 30 days after the date

5-36 of the hearing.

5-37 6. An appeals panel may affirm, modify or reverse a decision made

5-38 by the appeals officer and issue any necessary and proper order to give

5-39 effect to its decision.

5-40 7. The decision of an appeals panel must be based upon the

5-41 affirmative vote of at least two of the three appeals officers appointed to

5-42 the panel.

6-1 8. The decision of an appeals panel is the final and binding

6-2 administrative determination of a claim for compensation pursuant to

6-3 chapters 616A to 616D, inclusive, or chapter 617 of NRS, and the whole

6-4 record consists of all evidence taken at the hearing before the appeals

6-5 officer and any findings of fact and conclusions of law based thereon.

6-6 Sec. 10. NRS 616C.050 is hereby amended to read as follows:

6-7 616C.050 1. An insurer shall provide to each claimant:

6-8 (a) Upon written request, one copy of any medical information

6-9 concerning his injury or illness.

6-10 (b) A statement which contains information concerning the claimant’s

6-11 right to:

6-12 (1) Receive the information and forms necessary to file a claim;

6-13 (2) Select a treating physician or chiropractor in accordance with the

6-14 provisions of NRS 616C.090;

6-15 (3) Request the appointment of the Nevada attorney for injured

6-16 workers to represent him before the appeals officer [;] or the appeals

6-17 panel;

6-18 (4) File a complaint with the administrator;

6-19 (5) When applicable, receive compensation for:

6-20 (I) Permanent total disability;

6-21 (II) Temporary total disability;

6-22 (III) Permanent partial disability;

6-23 (IV) Temporary partial disability; or

6-24 (V) All medical costs related to his injury or disease;

6-25 (6) Receive services for rehabilitation if his injury prevents him from

6-26 returning to gainful employment;

6-27 (7) Review by a hearing officer of any determination or rejection of a

6-28 claim by the insurer within the time specified by statute; and

6-29 (8) Judicial review of any final decision within the time specified by

6-30 statute.

6-31 2. The administrator shall adopt regulations for the manner of

6-32 compliance by an insurer with the provisions of subsection 1.

6-33 Sec. 11. NRS 616C.140 is hereby amended to read as follows:

6-34 616C.140 1. Any employee who is entitled to receive compensation

6-35 under chapters 616A to 616D, inclusive, of NRS shall, if:

6-36 (a) Requested by the insurer or employer; or

6-37 (b) Ordered by an appeals officer , an appeals panel or a hearing

6-38 officer,

6-39 submit himself for medical examination at a time and from time to time at a

6-40 place reasonably convenient for the employee, and as may be provided by

6-41 the regulations of the division.

6-42 2. If the insurer has reasonable cause to believe that an injured

6-43 employee who is receiving compensation for a permanent total disability is

7-1 no longer disabled, the insurer may request the employee to submit to an

7-2 annual medical examination to determine whether the disability still exists.

7-3 The insurer shall pay the costs of the examination.

7-4 3. The request or order for an examination must fix a time and place

7-5 therefor, with due regard for the nature of the medical examination, the

7-6 convenience of the employee, his physical condition and his ability to

7-7 attend at the time and place fixed.

7-8 4. The employee is entitled to have a physician or chiropractor,

7-9 provided and paid for by him, present at any such examination.

7-10 5. If the employee refuses to submit to an examination ordered or

7-11 requested pursuant to subsection 1 or 2 or obstructs the examination, his

7-12 right to compensation is suspended until the examination has taken place,

7-13 and no compensation is payable during or for the period of suspension.

7-14 6. Any physician or chiropractor who makes or is present at any such

7-15 examination may be required to testify as to the result thereof.

7-16 Sec. 12. NRS 616C.225 is hereby amended to read as follows:

7-17 616C.225 1. Except as otherwise provided in this section, if an

7-18 insurer determines that an employee has knowingly misrepresented or

7-19 concealed a material fact to obtain any benefit or payment under the

7-20 provisions of chapters 616A to 616D, inclusive, of NRS, the insurer may

7-21 deduct from any benefits or payments due to the employee, the amount

7-22 obtained by the employee because of the misrepresentation or concealment

7-23 of a material fact. The employee shall reimburse the insurer for all benefits

7-24 or payments received because of the willful misrepresentation or

7-25 concealment of a material fact.

7-26 2. An employee who is aggrieved by a determination of an insurer

7-27 made pursuant to subsection 1 may appeal that determination pursuant to

7-28 NRS 616C.315 to 616C.385, inclusive [.] , and sections 6 to 9, inclusive,

7-29 of this act. If the final decision by an appeals officer or an appeals panel is

7-30 favorable to the employee, the administrator shall order the insurer to pay

7-31 $2,000 to that employee, in addition to any benefits or payments the

7-32 employee is entitled to receive, if the administrator determines that the

7-33 insurer had no reasonable basis for believing that the employee knowingly

7-34 misrepresented or concealed a material fact to obtain any benefit or

7-35 payment.

7-36 3. If an employee elects to receive his award for a permanent partial

7-37 disability in a lump sum pursuant to NRS 616C.495 and a criminal action is

7-38 brought against the employee for an alleged violation of NRS 616D.300,

7-39 the insurer shall, upon receiving notice of the action and until a judgment is

7-40 entered in the action, pay reasonable portions of the lump-sum award in

7-41 monthly installments. If the employee is not convicted of the alleged

7-42 violation, the insurer shall pay the employee the balance of the award in a

8-1 lump sum. The provisions of subsection 2 do not apply to require any

8-2 additional payment at the conclusion of a criminal action.

8-3 4. This section does not preclude an insurer from making an

8-4 investigation pursuant to, or pursuing the remedies provided by, NRS

8-5 616D.300.

8-6 Sec. 13. NRS 616C.235 is hereby amended to read as follows:

8-7 616C.235 1. Except as otherwise provided in subsection 2:

8-8 (a) When the insurer determines that a claim should be closed before all

8-9 benefits to which the claimant may be entitled have been paid, the insurer

8-10 shall send a written notice of its intention to close the claim to the claimant

8-11 by first-class mail addressed to the last known address of the claimant. The

8-12 notice must include a statement that if the claimant does not agree with the

8-13 determination, he has a right to request a resolution of the dispute pursuant

8-14 to NRS 616C.305 and 616C.315 to 616C.385, inclusive [.] , and sections 6

8-15 to 9, inclusive, of this act. A suitable form for requesting a resolution of the

8-16 dispute must be enclosed with the notice. The closure of a claim is not

8-17 effective unless notice is given as required by this subsection.

8-18 (b) If the insurer does not receive a request for the resolution of the

8-19 dispute, it may close the claim.

8-20 (c) Notwithstanding the provisions of NRS 233B.125, if a hearing is

8-21 conducted to resolve the dispute, the decision of the hearing officer may be

8-22 served by first-class mail.

8-23 2. If the medical benefits required to be paid for a claim are less than

8-24 $500, the claim closes automatically if the claimant does not receive

8-25 medical treatment for the injury for at least 12 months. The claimant may

8-26 not appeal the closing of such a claim.

8-27 Sec. 14. NRS 616C.295 is hereby amended to read as follows:

8-28 616C.295 The chief of the hearings division of the department of

8-29 administration shall:

8-30 1. Prescribe by regulation [the] :

8-31 (a) The qualifications and training required before a person may,

8-32 pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS, serve

8-33 as a hearing officer. Training for a hearing officer must include techniques

8-34 of mediation.

8-35 (b) The training and continuing education required of each person

8-36 employed by the hearings division as an appeals officer.

8-37 (c) Standards for the performance of appeals officers in handling

8-38 appeals and contested claims for compensation, including, without

8-39 limitation, standards that require an appeals officer to render a decision

8-40 in each appeal and contested claim in a manner that is consistent with:

8-41 (1) Legal authority; and

9-1 (2) Other decisions, if any, rendered by that appeals officer with

9-2 respect to appeals and contested claims in which the facts and issues

9-3 were substantially similar.

9-4 (d) Procedures to improve the performance of an appeals officer

9-5 whom the senior appeals officer determines by evaluation pursuant to

9-6 section 7 of this act to be performing in a substandard manner.

9-7 2. Provide for the expediting of the hearing of cases that involve the

9-8 termination or denial of compensation.

9-9 3. At least once each year, compile the following information with

9-10 respect to each appeals officer employed by the hearings division of the

9-11 department of administration:

9-12 (a) The number of hearings on the merits in contested claims for

9-13 compensation that the appeals officer has conducted in each month

9-14 during his term of office;

9-15 (b) The number of final decisions of the appeals officer for which

9-16 judicial review is sought pursuant to NRS 616C.370, including notations

9-17 that identify specifically for each such decision:

9-18 (1) The court in which judicial review is sought; and

9-19 (2) The action taken by the court in which judicial review is sought,

9-20 including, without limitation, whether the matter is still pending or

9-21 whether the court affirmed, modified or reversed the decision of the

9-22 appeals officer; and

9-23 (c) The evaluations pertaining to the appeals officer that have been

9-24 conducted by the senior appeals officer pursuant to section 7 of this act.

9-25 Sec. 15. NRS 616C.305 is hereby amended to read as follows:

9-26 616C.305 1. Except as otherwise provided in subsection 3, any

9-27 person who is aggrieved by a decision concerning accident benefits made

9-28 by an organization for managed care which has contracted with an insurer

9-29 must, within 14 days of the decision and before requesting a resolution of

9-30 the dispute pursuant to NRS 616C.345 to 616C.385, inclusive, and

9-31 sections 8 and 9 of this act, appeal that decision in accordance with the

9-32 procedure for resolving complaints established by the organization for

9-33 managed care.

9-34 2. The procedure for resolving complaints established by the

9-35 organization for managed care must be informal and must include, but is

9-36 not limited to, a review of the appeal by a qualified physician or

9-37 chiropractor who did not make or otherwise participate in making the

9-38 decision.

9-39 3. If a person appeals a final determination pursuant to a procedure for

9-40 resolving complaints established by an organization for managed care and

9-41 the dispute is not resolved within 14 days after it is submitted, he may

9-42 request a resolution of the dispute pursuant to NRS 616C.345 to 616C.385,

9-43 inclusive [.] , and sections 8 and 9 of this act.

10-1 Sec. 16. NRS 616C.325 is hereby amended to read as follows:

10-2 616C.325 1. It is unlawful for any person to represent an employee

10-3 before a [hearings] hearing officer, or in any negotiations, settlements,

10-4 hearings or other meetings with an insurer concerning the employee’s claim

10-5 or possible claim, unless he is:

10-6 (a) Employed full time by the employee’s labor organization;

10-7 (b) Admitted to practice law in this state;

10-8 (c) Employed full time by and under the supervision of an attorney

10-9 admitted to practice law in this state; or

10-10 (d) Appearing without compensation on behalf of the employee.

10-11 It is unlawful for any person who is not admitted to practice law in this state

10-12 to represent the employee before an appeals officer [.] or an appeals panel.

10-13 2. It is unlawful for any person to represent an employer at hearings of

10-14 contested cases unless that person is:

10-15 (a) Employed full time by the employer or a trade association to which

10-16 the employer belongs that is not formed solely for the purpose of providing

10-17 representation at hearings of contested cases;

10-18 (b) An employer’s representative licensed pursuant to subsection 3 who

10-19 is not licensed as a third-party administrator;

10-20 (c) Admitted to practice law in this state; or

10-21 (d) A licensed third-party administrator.

10-22 3. The director of the department of administration shall adopt

10-23 regulations which include the:

10-24 (a) Requirements for licensure of employers’ representatives, including:

10-25 (1) The registration of each representative; and

10-26 (2) The filing of a copy of each written agreement for the

10-27 compensation of a representative;

10-28 (b) Procedure for such licensure; and

10-29 (c) Causes for revocation of such a license, including any applicable

10-30 action listed in NRS 616D.120 or a violation of this section.

10-31 4. Any person who is employed by or contracts with an employer to

10-32 represent the employer at hearings regarding contested claims is an agent of

10-33 the employer. If the employer’s representative violates any provision of this

10-34 chapter or chapter 616A, 616B or 616D of NRS, the employer is liable for

10-35 any penalty assessed because of that violation.

10-36 5. An employer shall not make the compensation of any person

10-37 representing him contingent in any manner upon the outcome of any

10-38 contested claim.

10-39 6. The director of the department of administration shall collect in

10-40 advance and deposit with the state treasurer for credit to the state general

10-41 fund the following fees for licensure as an employer’s representative:

10-42 (a) Application and license $78

10-43 (b) Triennial renewal of each license 78

11-1 Sec. 17. NRS 616C.340 is hereby amended to read as

11-2 follows:

11-3 616C.340 1. The [governor] director of the department of

11-4 administration, in his capacity as the chief of the hearings division, shall

11-5 appoint one or more appeals officers to conduct hearings in contested

11-6 claims for compensation pursuant to NRS 616C.360. Each appeals officer

11-7 [shall hold] holds office for 2 years [from] after the date of his appointment

11-8 and until his successor is appointed and has qualified. Each appeals officer

11-9 is entitled to receive an annual salary in an amount provided by law and is

11-10 in the unclassified service of the state.

11-11 2. Each appeals officer must be an attorney who has been licensed to

11-12 practice law before all the courts of this state for at least 2 years [.] and

11-13 who has at least 2 years of experience practicing law in actions related to

11-14 claims for compensation. Except as otherwise provided in NRS 7.065, an

11-15 appeals officer shall not engage in the private practice of law.

11-16 3. If an appeals officer determines that he has a personal interest or a

11-17 conflict of interest, directly or indirectly, in any case which is before him [,]

11-18 or an appeals panel of which he is a member, he shall disqualify himself

11-19 from hearing the case.

11-20 4. The [governor] director of the department of administration, in his

11-21 capacity as the chief of the hearings division, may appoint one or more

11-22 special appeals officers to conduct hearings in contested claims for

11-23 compensation pursuant to NRS 616C.360. The [governor] director shall

11-24 not appoint an attorney who represents persons in actions related to claims

11-25 for compensation to serve as a special appeals officer.

11-26 5. A special appeals officer appointed pursuant to subsection 4 is

11-27 vested with the same powers as a regular appeals officer. A special appeals

11-28 officer may hear any case in which a regular appeals officer has a conflict,

11-29 or any case assigned to him by the senior appeals officer to assist with a

11-30 backlog of cases. A special appeals officer is entitled to be paid at an

11-31 hourly rate, as determined by the department of administration.

11-32 6. [The] Except as otherwise provided in this subsection, the decision

11-33 of an appeals officer is the final and binding administrative determination

11-34 of a claim for compensation [under] pursuant to chapters 616A to 616D,

11-35 inclusive, or chapter 617 of NRS, and the whole record consists of all

11-36 evidence taken at the hearing before the appeals officer and any findings of

11-37 fact and conclusions of law based thereon. If an aggrieved party appeals

11-38 the decision of an appeals officer to an appeals panel pursuant to section

11-39 8 of this act, the decision of the appeals panel is the final and binding

11-40 administrative determination as set forth in subsection 8 of section 9 of

11-41 this act.

11-42 Sec. 18. NRS 616C.350 is hereby amended to read as follows:

11-43 616C.350 1. Any physician or chiropractor who attends an employee

11-44 within the provisions of chapters 616A to 616D, inclusive, or chapter 617

12-1 of NRS in a professional capacity, may be required to testify before an

12-2 appeals officer [.] or an appeals panel. A physician or chiropractor who

12-3 testifies is entitled to receive the same fees as witnesses in civil cases and,

12-4 if the appeals officer or the appeals panel so orders at [his] its own

12-5 discretion, a fee equal to that authorized for a consultation by the

12-6 appropriate schedule of fees for physicians or chiropractors. These fees

12-7 must be paid by the insurer.

12-8 2. Information gained by the attending physician or chiropractor while

12-9 in attendance on the injured employee is not a privileged communication if:

12-10 (a) Required by an appeals officer or an appeals panel for a proper

12-11 understanding of the case and a determination of the rights involved; or

12-12 (b) The information is related to any fraud that has been or is alleged to

12-13 have been committed in violation of the provisions of this chapter or

12-14 chapter 616A, 616B or 616D of NRS.

12-15 Sec. 19. NRS 616C.355 is hereby amended to read as follows:

12-16 616C.355 At any time 10 or more days before a scheduled hearing

12-17 before an appeals officer, an appeals panel, the administrator, the manager

12-18 or the manager’s designee, a party shall mail or deliver to the opposing

12-19 party any affidavit or declaration which he proposes to introduce into

12-20 evidence and notice to the effect that unless the opposing party, within 7

12-21 days after the mailing or delivery of such affidavit or declaration, mails or

12-22 delivers to the proponent a request to cross-examine the affiant or

12-23 declarant, his right to cross-examine the affiant or declarant is waived and

12-24 the affidavit or declaration, if introduced into evidence, will have the same

12-25 effect as if the affiant or declarant had given sworn testimony before the

12-26 appeals officer, the appeals panel, the administrator, the manager or the

12-27 manager’s designee.

12-28 Sec. 20. NRS 616C.360 is hereby amended to read as follows:

12-29 616C.360 1. A stenographic or electronic record must be kept of the

12-30 hearing before the appeals officer and the rules of evidence applicable to

12-31 contested cases under chapter 233B of NRS apply to the hearing.

12-32 2. The appeals officer must hear any matter raised before him on its

12-33 merits, including new evidence bearing on the matter.

12-34 3. If necessary to resolve a medical question concerning an injured

12-35 employee’s condition, the appeals officer may refer the employee to a

12-36 physician or chiropractor chosen by the appeals officer. If the medical

12-37 question concerns the rating of a permanent disability, the appeals officer

12-38 may refer the employee to a rating physician or chiropractor. The rating

12-39 physician or chiropractor must be selected in rotation from the list of

12-40 qualified physicians or chiropractors maintained by the administrator

12-41 pursuant to subsection 2 of NRS 616C.490, unless the insurer and the

13-1 injured employee otherwise agree to a rating physician or chiropractor. The

13-2 insurer shall pay the costs of any examination requested by the appeals

13-3 officer.

13-4 4. Any party to the appeal or the appeals officer may order a transcript

13-5 of the record of the hearing at any time before the seventh day after the

13-6 hearing. The transcript must be filed within 30 days after the date of the

13-7 order unless the appeals officer otherwise orders.

13-8 5. The appeals officer shall render his decision:

13-9 (a) If a transcript is ordered within 7 days after the hearing, within 30

13-10 days after the transcript is filed; or

13-11 (b) If a transcript has not been ordered, within 30 days after the date of

13-12 the hearing.

13-13 6. The appeals officer may affirm, modify or reverse any decision

13-14 made by the hearing officer and issue any necessary and proper order to

13-15 give effect to his decision.

13-16 7. The appeals officer shall give notice of his decision to each party

13-17 by mail. He shall include with the notice of his decision the necessary

13-18 forms for appealing from the decision to an appeals panel.

13-19 Sec. 21. NRS 616C.365 is hereby amended to read as follows:

13-20 616C.365 1. If an employer or insurer requests a hearing before a

13-21 hearing officer , [or] appeals officer or appeals panel relating to a claim for

13-22 compensation, and the hearing results in a decision favorable to the

13-23 employee, the employee is entitled to receive reimbursement from the

13-24 insurer for:

13-25 (a) His actual expenses necessarily incurred for travel to and from the

13-26 hearing, if he is required to travel more than 20 miles one way from his

13-27 residence or place of employment to the hearing; and

13-28 (b) Any regular wages lost as a result of his attending the hearing.

13-29 2. The division shall adopt regulations governing the procedure and

13-30 forms to be used for the reimbursement provided by subsection 1.

13-31 Sec. 22. NRS 616C.370 is hereby amended to read as follows:

13-32 616C.370 1. No judicial proceedings may be instituted for

13-33 compensation for an injury or death under chapters 616A to 616D,

13-34 inclusive, of NRS unless:

13-35 (a) A claim for compensation is filed as provided in NRS 616C.020; and

13-36 (b) A final decision [of an appeals officer has been rendered] on such a

13-37 claim [.] has been rendered by:

13-38 (1) An appeals officer; or

13-39 (2) An appeals panel, if the decision of an appeals officer was

13-40 appealed to the appeals panel pursuant to section 8 of this act.

13-41 2. Judicial proceedings instituted for compensation for an injury or

13-42 death, under chapters 616A to 616D, inclusive, of NRS are limited to

13-43 judicial review of the decision of [an] :

14-1 (a) An appeals officer [.] ; or

14-2 (b) An appeals panel, if the decision of an appeals officer was

14-3 appealed to the appeals panel pursuant to section 8 of this act.

14-4 Sec. 23. NRS 616C.375 is hereby amended to read as follows:

14-5 616C.375 If an insurer, employer or claimant, or the representative of

14-6 an insurer, employer or claimant, appeals the decision of an appeals officer

14-7 [,] or an appeals panel, that decision is not stayed unless a stay is granted

14-8 by the appeals officer , the appeals panel or the district court within 30

14-9 days after the date on which the decision was rendered.

14-10 Sec. 24. NRS 616C.380 is hereby amended to read as follows:

14-11 616C.380 1. If a hearing officer, appeals officer , appeals panel or

14-12 district court renders a decision on a claim for compensation and the

14-13 insurer or employer appeals that decision, but is unable to obtain a stay of

14-14 the decision:

14-15 (a) Payment of that portion of an award for a permanent partial

14-16 disability which is contested must be made in installment payments until the

14-17 claim reaches final resolution.

14-18 (b) Payment of the award must be made in monthly installments of 66

14-19 2/3 percent of the average wage of the claimant until the claim reaches final

14-20 resolution if the claim is for more than 3 months of past benefits for a

14-21 temporary total disability or rehabilitation, or for a payment in lump sum

14-22 related to past benefits for rehabilitation, such as costs for purchasing a

14-23 business or equipment.

14-24 2. If the final resolution of the claim is in favor of the claimant, the

14-25 remaining amount of compensation to which the claimant is entitled may be

14-26 paid in a lump sum if the claimant is otherwise eligible for such a payment

14-27 pursuant to NRS 616C.495 and any regulations adopted pursuant thereto. If

14-28 the final resolution of the claim is in favor of the insurer or employer, any

14-29 amount paid to the claimant in excess of the uncontested amount must be

14-30 deducted from any future benefits related to that claim, other than medical

14-31 benefits, to which the claimant is entitled. The deductions must be made in

14-32 a reasonable manner so as not to create an undue hardship to the claimant.

14-33 Sec. 25. NRS 616C.385 is hereby amended to read as follows:

14-34 616C.385 If a party petitions the district court for judicial review of a

14-35 final decision of an appeals officer, an appeals panel, the manager or the

14-36 manager’s designee, and the petition is found by the district court to be

14-37 frivolous or brought without reasonable grounds, the district court may

14-38 order costs and a reasonable attorney’s fee to be paid by the petitioner.

14-39 Sec. 26. NRS 616C.585 is hereby amended to read as follows:

14-40 616C.585 1. Except as otherwise provided in subsection 2,

14-41 vocational rehabilitation services ordered by an insurer, a hearing officer ,

14-42 [or] an appeals officer or an appeals panel must not include the following

14-43 goods and services:

15-1 (a) A motor vehicle.

15-2 (b) Repairs to an injured employee’s motor vehicle.

15-3 (c) Tools and equipment normally provided to the injured employee by

15-4 his employer during the course of his employment.

15-5 (d) Care for the injured employee’s children.

15-6 2. An injured employee is entitled to receive the goods and services set

15-7 forth in subsection 1 only if his insurer determines that such goods and

15-8 services are reasonably necessary.

15-9 3. Vocational rehabilitation services ordered by an insurer may include

15-10 the formal education of the injured employee only if:

15-11 (a) The priorities set forth in NRS 616C.530 for returning an injured

15-12 employee to work are followed;

15-13 (b) The education is recommended by a plan for a program of vocational

15-14 rehabilitation developed pursuant to NRS 616C.555; and

15-15 (c) A written proposal concerning the probable economic benefits to the

15-16 employee and the necessity of the education is submitted to the insurer.

15-17 Sec. 27. NRS 616C.600 is hereby amended to read as follows:

15-18 616C.600 1. A hearing officer [or] , an appeals officer or an appeals

15-19 panel shall not order self-employment for an injured employee or the

15-20 payment of compensation in a lump sum for vocational rehabilitation.

15-21 2. An insurer, an employer and an injured employee may execute an

15-22 agreement concerning self-employment.

15-23 Sec. 28. NRS 616D.050 is hereby amended to read as follows:

15-24 616D.050 1. Appeals officers, appeals panels, the administrator, the

15-25 manager and the manager’s designee, in conducting hearings or other

15-26 proceedings pursuant to the provisions of chapters 616A to 616D,

15-27 inclusive, of NRS or regulations adopted pursuant to those chapters may:

15-28 (a) Issue subpoenas requiring the attendance of any witness or the

15-29 production of books, accounts, papers, records and documents.

15-30 (b) Administer oaths.

15-31 (c) Certify to official acts.

15-32 (d) Call and examine under oath any witness or party to a claim.

15-33 (e) Maintain order.

15-34 (f) Rule upon all questions arising during the course of a hearing or

15-35 proceeding.

15-36 (g) Permit discovery by deposition or interrogatories.

15-37 (h) Initiate and hold conferences for the settlement or simplification of

15-38 issues.

15-39 (i) Dispose of procedural requests or similar matters.

15-40 (j) Generally regulate and guide the course of a pending hearing or

15-41 proceeding.

16-1 2. Hearing officers, in conducting hearings or other proceedings

16-2 pursuant to the provisions of chapters 616A to 616D, inclusive, of NRS or

16-3 regulations adopted pursuant to those chapters, may:

16-4 (a) Issue subpoenas requiring the attendance of any witness or the

16-5 production of books, accounts, papers, records and documents that are

16-6 relevant to the dispute for which the hearing or other proceeding is being

16-7 held.

16-8 (b) Maintain order.

16-9 (c) Permit discovery by deposition or interrogatories.

16-10 (d) Initiate and hold conferences for the settlement or simplification of

16-11 issues.

16-12 (e) Dispose of procedural requests or similar matters.

16-13 (f) Generally regulate and guide the course of a pending hearing or

16-14 proceeding.

16-15 Sec. 29. NRS 616D.065 is hereby amended to read as follows:

16-16 616D.065 1. An appeals officer [,] or an appeals panel, in

16-17 conducting hearings or other proceedings pursuant to the provisions of

16-18 chapters 616A to 616D, inclusive, of NRS or regulations adopted pursuant

16-19 to those chapters, may order the attorney or representative of a party to pay

16-20 any costs that are incurred by the hearings division of the department of

16-21 administration for a court reporter or an interpreter.

16-22 2. Before ordering the payment of such costs, the appeals officer or the

16-23 appeals panel must find that the costs were incurred because the attorney

16-24 or representative of a party caused a continuance or delay in a scheduled

16-25 hearing by his failure, without good cause, to comply with an order of the

16-26 appeals officer , the appeals panel or a regulation adopted pursuant to

16-27 chapters 616A to 616D, inclusive, of NRS.

16-28 Sec. 30. NRS 616D.070 is hereby amended to read as follows:

16-29 616D.070 If any person:

16-30 1. Disobeys an order of an appeals officer, an appeals panel, a hearing

16-31 officer, the administrator, the manager or the manager’s designee, or a

16-32 subpoena issued by the manager, manager’s designee, administrator,

16-33 appeals officer, appeals panel, hearing officer, inspector or examiner;

16-34 2. Refuses to permit an inspection; or

16-35 3. As a witness, refuses to testify to any matter for which he may be

16-36 lawfully interrogated,

16-37 the district judge of the county in which the person resides, on application

16-38 of the appeals officer, the appeals panel, the hearing officer, the

16-39 administrator, the manager or the manager’s designee, shall compel

16-40 obedience by attachment proceedings as for contempt, as in the case of

16-41 disobedience of the requirements of subpoenas issued from the court on a

16-42 refusal to testify therein.

17-1 Sec. 31. NRS 616D.080 is hereby amended to read as follows:

17-2 616D.080 1. Each officer who serves a subpoena is entitled to

17-3 receive the same fees as a sheriff.

17-4 2. Each witness who appears, in obedience to a subpoena which has

17-5 been issued pursuant to this chapter or chapter 616A, 616B or 616C of

17-6 NRS, before an appeals officer, an appeals panel, a hearing officer, the

17-7 administrator, the manager or the manager’s designee, is entitled to receive

17-8 for his attendance the fees and mileage provided for witnesses in civil cases

17-9 in courts of record.

17-10 3. The appeals officer, appeals panel, hearing officer, administrator,

17-11 manager or manager’s designee shall:

17-12 (a) Authorize payment from his administrative budget of the fees and

17-13 mileage due to such a witness; or

17-14 (b) Impose those costs upon the party at whose instance the witness was

17-15 subpoenaed or, for good cause shown, upon any other party.

17-16 Sec. 32. NRS 616D.100 is hereby amended to read as follows:

17-17 616D.100 1. A transcribed copy of the evidence and proceedings, or

17-18 any specific part thereof, of any final hearing or investigation, made by a

17-19 stenographer appointed by an appeals officer, an appeals panel, a hearing

17-20 officer, the administrator, the manager or the manager’s designee, being

17-21 certified by that stenographer to be a true and correct transcript of the

17-22 testimony in the final hearing or investigation, or of a particular witness, or

17-23 of a specific part thereof, and carefully compared by him with his original

17-24 notes, and to be a correct statement of the evidence and proceedings had on

17-25 the final hearing or investigation so purporting to be taken and transcribed,

17-26 may be received in evidence with the same effect as if the stenographer had

17-27 been present and testified to the facts so certified.

17-28 2. A copy of the transcript must be furnished on demand to any party

17-29 upon the payment of the fee required for transcripts in courts of record.

17-30 Sec. 33. NRS 616D.120 is hereby amended to read as follows:

17-31 616D.120 1. Except as otherwise provided in this section, if the

17-32 administrator determines that an insurer, organization for managed care,

17-33 health care provider, third-party administrator or employer has:

17-34 (a) Through fraud, coercion, duress or undue influence:

17-35 (1) Induced a claimant to fail to report an accidental injury or

17-36 occupational disease;

17-37 (2) Persuaded a claimant to settle for an amount which is less than

17-38 reasonable;

17-39 (3) Persuaded a claimant to settle for an amount which is less than

17-40 reasonable while a hearing or an appeal is pending; or

17-41 (4) Persuaded a claimant to accept less than the compensation found

17-42 to be due him by a hearing officer, appeals officer, appeals panel, court of

18-1 competent jurisdiction, written settlement agreement, written stipulation or

18-2 the division when carrying out its duties pursuant to chapters 616A to 617,

18-3 inclusive, of NRS;

18-4 (b) Refused to pay or unreasonably delayed payment to a claimant of

18-5 compensation found to be due him by a hearing officer, appeals officer,

18-6 appeals panel, court of competent jurisdiction, written settlement

18-7 agreement, written stipulation or the division when carrying out its duties

18-8 pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS, if the

18-9 refusal or delay occurs:

18-10 (1) Later than 10 days after the date of the settlement agreement or

18-11 stipulation;

18-12 (2) Later than 30 days after the date of the decision of a court, hearing

18-13 officer, appeals officer , appeals panel or division, unless a stay has been

18-14 granted; or

18-15 (3) Later than 10 days after a stay of the decision of a court, hearing

18-16 officer, appeals officer , appeals panel or division has been lifted;

18-17 (c) Refused to process a claim for compensation pursuant to chapters

18-18 616A to 616D, inclusive, or chapter 617 of NRS;

18-19 (d) Made it necessary for a claimant to initiate proceedings pursuant to

18-20 chapters 616A to 616D, inclusive, or chapter 617 of NRS for compensation

18-21 found to be due him by a hearing officer, appeals officer, appeals panel,

18-22 court of competent jurisdiction, written settlement agreement, written

18-23 stipulation or the division when carrying out its duties pursuant to chapters

18-24 616A to 616D, inclusive, or chapter 617 of NRS;

18-25 (e) Failed to comply with the division’s regulations covering the

18-26 payment of an assessment relating to the funding of costs of administration

18-27 of chapters 616A to 617, inclusive, of NRS;

18-28 (f) Failed to provide or unreasonably delayed payment to an injured

18-29 employee or reimbursement to an insurer pursuant to NRS 616C.165; or

18-30 (g) Intentionally failed to comply with any provision of, or regulation

18-31 adopted pursuant to, this chapter or chapter 616A, 616B, 616C or 617 of

18-32 NRS,

18-33 the administrator shall impose an administrative fine of $1,000 for each

18-34 initial violation, or a fine of $10,000 for a second or subsequent violation.

18-35 2. Except as otherwise provided in chapters 616A to 616D, inclusive,

18-36 or chapter 617 of NRS, if the administrator determines that an insurer,

18-37 organization for managed care, health care provider, third-party

18-38 administrator or employer has failed to comply with any provision of this

18-39 chapter or chapter 616A, 616B, 616C or 617 of NRS, or any regulation

18-40 adopted pursuant thereto, the administrator may take any of the following

18-41 actions:

18-42 (a) Issue a notice of correction for:

19-1 (1) A minor violation, as defined by regulations adopted by the

19-2 division; or

19-3 (2) A violation involving the payment of compensation in an amount

19-4 which is greater than that required by any provision of this chapter or

19-5 chapter 616A, 616B, 616C or 617 of NRS, or any regulation adopted

19-6 pursuant thereto.

19-7 The notice of correction must set forth with particularity the violation

19-8 committed and the manner in which the violation may be corrected.

19-9 [Nothing in this section authorizes] The provisions in this section do not

19-10 authorize the administrator to modify or negate in any manner a

19-11 determination or any portion of a determination made by a hearing officer,

19-12 appeals officer , appeals panel or court of competent jurisdiction or a

19-13 provision contained in a written settlement agreement or written stipulation.

19-14 (b) Impose an administrative fine for:

19-15 (1) A second or subsequent violation for which a notice of correction

19-16 has been issued pursuant to paragraph (a); or

19-17 (2) Any other violation of this chapter or chapter 616A, 616B, 616C

19-18 or 617 of NRS, or any regulation adopted pursuant thereto, for which a

19-19 notice of correction may not be issued pursuant to paragraph (a).

19-20 The fine imposed may not be greater than $250 for an initial violation, or

19-21 more than $1,000 for any second or subsequent violation.

19-22 (c) Order a plan of corrective action to be submitted to the administrator

19-23 within 30 days after the date of the order.

19-24 3. If the administrator determines that a violation of any of the

19-25 provisions of paragraphs (a) to (d), inclusive, of subsection 1 has occurred,

19-26 the administrator shall order the insurer, organization for managed care,

19-27 health care provider, third-party administrator or employer to pay to the

19-28 claimant a benefit penalty in an amount equal to 50 percent of the

19-29 compensation due or $10,000, whichever is less. In no event may a benefit

19-30 penalty be less than $500. The benefit penalty is for the benefit of the

19-31 claimant and must be paid directly to him within 10 days after the date of

19-32 the administrator’s determination. Proof of the payment of the benefit

19-33 penalty must be submitted to the administrator within 10 days after the date

19-34 of his determination unless an appeal is filed pursuant to NRS 616D.140.

19-35 Any compensation to which the claimant may otherwise be entitled

19-36 pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS must

19-37 not be reduced by the amount of any benefit penalty received pursuant to

19-38 this subsection.

19-39 4. In addition to any fine or benefit penalty imposed pursuant to this

19-40 section, the administrator may assess against an insurer who violates any

19-41 regulation concerning the reporting of claims expenditures used to calculate

19-42 an assessment an administrative penalty of up to twice the amount of any

19-43 underpaid assessment.

20-1 5. If:

20-2 (a) The administrator determines that a person has violated any of the

20-3 provisions of NRS 616D.200, 616D.220, 616D.240, 616D.300, 616D.310

20-4 or 616D.350 to 616D.440, inclusive; and

20-5 (b) The fraud control unit for industrial insurance established pursuant

20-6 to NRS 228.420 notifies the administrator that the unit will not prosecute

20-7 the person for that violation,

20-8 the administrator shall impose an administrative fine of not more than

20-9 $10,000.

20-10 6. Two or more fines of $1,000 or more imposed in 1 year for acts

20-11 enumerated in subsection 1 must be considered by the commissioner as

20-12 evidence for the withdrawal of:

20-13 (a) A certificate to act as a self-insured employer.

20-14 (b) A certificate to act as an association of self-insured public or private

20-15 employers.

20-16 (c) A certificate of registration as a third-party administrator.

20-17 7. The commissioner may, without complying with the provisions of

20-18 NRS 616B.327 or 616B.431, withdraw the certification of a self-insured

20-19 employer, association of self-insured public or private employers or third-

20-20 party administrator if, after a hearing, it is shown that the self-insured

20-21 employer, association of self-insured public or private employers or third-

20-22 party administrator violated any provision of subsection 1.

20-23 Sec. 34. NRS 617.370 is hereby amended to read as follows:

20-24 617.370 1. Any employee who is entitled to receive compensation

20-25 under this chapter shall, if:

20-26 (a) Requested by the insurer; or

20-27 (b) Ordered by an appeals officer, an appeals panel or a hearing
20-28 officer,

20-29 submit himself for medical examination at a time and from time to time at a

20-30 place reasonably convenient for the employee, and as may be provided by

20-31 the regulations of the division.

20-32 2. If the insurer has reasonable cause to believe that an injured

20-33 employee who is receiving compensation for a permanent total disability is

20-34 no longer disabled, the insurer may request the employee to submit to an

20-35 annual medical examination to determine whether the disability still exists.

20-36 The insurer shall pay the costs of the examination.

20-37 3. The request or order for an examination must fix a time and place

20-38 therefor, with due regard [being had to] for the nature of the medical

20-39 examination, the convenience of the employee, his physical condition and

20-40 ability to attend at the time and place fixed.

20-41 4. The employee is entitled to have a physician, provided and paid for

20-42 by him, present at any such examination.

21-1 5. If the employee refuses to submit to an examination ordered or

21-2 requested pursuant to subsection 1 or 2 or obstructs the examination, his

21-3 right to compensation is suspended until the examination has taken place,

21-4 and no compensation is payable during or for the period of suspension.

21-5 6. Any physician who makes or is present at any such examination may

21-6 be required to testify as to the result thereof.

21-7 Sec. 35. NRS 617.402 is hereby amended to read as follows:

21-8 617.402 1. If an insurer determines that an employee has knowingly

21-9 misrepresented or concealed a material fact to obtain any benefit or

21-10 payment under the provisions of this chapter, the insurer may deduct from

21-11 any benefits or payments due to the employee, the amount obtained by the

21-12 employee because of the misrepresentation or concealment of a material

21-13 fact. The employee shall reimburse the insurer for all benefits or payments

21-14 received because of the knowing misrepresentation or concealment of a

21-15 material fact.

21-16 2. An employee who is aggrieved by a determination of an insurer

21-17 made pursuant to subsection 1 may appeal that determination pursuant to

21-18 NRS 616C.315 to 616C.385, inclusive [.] , and sections 6 to 9, inclusive,

21-19 of this act. If the final decision by an appeals officer or an appeals panel is

21-20 favorable to the employee, the administrator shall order the insurer to pay

21-21 $2,000 to that employee, in addition to any benefits or payments the

21-22 employee is entitled to receive, if:

21-23 (a) The final decision is favorable to the employee; and

21-24 (b) The administrator determines that the insurer had no reasonable

21-25 basis for believing that the employee knowingly misrepresented or

21-26 concealed a material fact to obtain any benefit or payment.

21-27 3. This section does not preclude an insurer from making an

21-28 investigation pursuant to, or pursuing the remedies provided by, NRS

21-29 616D.300.

21-30 Sec. 36. NRS 617.405 is hereby amended to read as follows:

21-31 617.405 1. No judicial proceedings may be instituted for benefits for

21-32 an occupational disease under this chapter, unless:

21-33 (a) A claim is filed within the time limits prescribed in NRS 617.344;

21-34 and

21-35 (b) A final decision by an appeals officer or an appeals panel has been

21-36 rendered on the claim.

21-37 2. Judicial proceedings instituted for benefits for an occupational

21-38 disease under this chapter are limited to judicial review of that decision.

21-39 Sec. 37. Chapter 232 of NRS is hereby amended by adding thereto a

21-40 new section to read as follows:

21-41 The director, in his capacity as the chief of the hearings division, shall

21-42 adopt regulations governing the conduct of the hearing and appeals

21-43 officers. The regulations must include:

22-1 1. And be no less stringent than, the standards set forth in the

22-2 Nevada code of judicial conduct adopted by the supreme court.

22-3 2. A procedure for a person who believes that a hearing or appeals

22-4 officer has violated the standards for conduct to make a complaint to the

22-5 director.

22-6 3. Rules of practice pursuant to which the director will hear

22-7 complaints made pursuant to subsection 2.

22-8 4. The penalties that may be imposed against a hearing or appeals

22-9 officer if the director determines, pursuant to the rules of practice

22-10 adopted pursuant to subsection 3, that a hearing or appeals officer has

22-11 violated a standard for conduct.

22-12 Sec. 38. NRS 232.212 is hereby amended to read as follows:

22-13 232.212 As used in NRS 232.212 to 232.2195, inclusive, and section

22-14 37 of this act, unless the context requires otherwise:

22-15 1. "Department" means the department of administration.

22-16 2. "Director" means the director of the department.

22-17 Sec. 39. NRS 232.215 is hereby amended to read as follows:

22-18 232.215 The director:

22-19 1. Shall appoint a chief of the:

22-20 (a) Risk management division;

22-21 (b) Buildings and grounds division;

22-22 (c) Purchasing division;

22-23 (d) State printing division;

22-24 (e) Administrative services division; and

22-25 (f) Motor pool division if separately established.

22-26 2. Shall appoint a chief of the budget division, or may serve in this

22-27 position if he has the qualifications required by NRS 353.175.

22-28 3. Shall serve as chief of the hearings division and [shall] appoint the

22-29 hearing officers , appeals officers and compensation officers. The director

22-30 may designate one of the appeals officers in the division [to] as the senior

22-31 appeals officer. The senior appeals officer shall supervise the

22-32 administrative, technical and procedural activities of the division. The

22-33 senior appeals officer shall perform such additional duties as the

22-34 director, serving as chief of the hearings division, may require.

22-35 4. Shall serve as chairman of the state public works board.

22-36 5. Is responsible for the administration, through the divisions of the

22-37 department, of the provisions of chapters 331, 333, 336 and 344 of NRS,

22-38 NRS 353.150 to 353.246, inclusive, and all other provisions of law relating

22-39 to the functions of the divisions of the department.

22-40 6. Is responsible for the administration of the laws of this state relating

22-41 to the negotiation and procurement of medical services and other benefits

22-42 for state agencies.

22-43 7. Has such other powers and duties as are provided by law.

23-1 Sec. 40. 1. This section and sections 1, 2, 3, 5 to 9, inclusive, 12 to

23-2 17, inclusive, 19 to 25, inclusive, and 27 to 39, inclusive, of this act

23-3 become effective on July 1, 1999.

23-4 2. Sections 4, 10, 11, 18 and 26 of this act become effective at 12:01

23-5 a.m. on July 1, 1999.

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