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).

1-1 Section 1. Chapter 616C of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 2 to 5, inclusive, of this act.

1-3 Sec. 2. Insofar as practicable, a hearing officer or an appeals officer

1-4 shall, with respect to each appeal or contested claim for compensation,

1-5 author and explain fully the decision he renders, including, without

1-6 limitation, an explanation of the reasons for the decision.

2-1 Sec. 3. The senior appeals officer shall:

2-2 1. At least twice each year, conduct an evaluation of the performance

2-3 of each of the other appeals officers employed by the hearings division of

2-4 the department of administration. In conducting an evaluation pursuant

2-5 to this section, the senior appeals officer shall determine whether the

2-6 appeals officer being evaluated has:

2-7 (a) Met the standards for performance prescribed by the chief of the

2-8 hearings division pursuant to NRS 616C.295; and

2-9 (b) Rendered decisions in contested claims for compensation in a

2-10 timely manner as required pursuant to subsection 5 of NRS 616C.360.

2-11 2. Within 15 days after completing an evaluation pursuant to

2-12 subsection 1, prepare a written report of the evaluation and transmit a

2-13 copy to the chief of the hearings division of the department of

2-14 administration for compilation pursuant to NRS 616C.295.

2-15 3. In accordance with the requirements for training and continuing

2-16 education, standards and procedures prescribed by the chief of the

2-17 hearings division of the department of administration pursuant to NRS

2-18 616C.295, provide training to each of the other appeals officers employed

2-19 by the hearings division.

2-20 Sec. 4. 1. The commission to recommend appeals officers,

2-21 consisting of five members, is hereby created. The membership of the

2-22 commission consists of:

2-23 (a) One member appointed by the governor to represent the interests

2-24 of:

2-25 (1) Self-insured employers;

2-26 (2) Associations of self-insured public or private employers; and

2-27 (3) Private carriers.

2-28 (b) One member appointed by the governor to represent the interests

2-29 of the system.

2-30 (c) Two members appointed by the governor to represent the interests

2-31 of employees, one of whom must represent the interests of employees who

2-32 are members of organized labor.

2-33 (d) One member appointed by the board of governors of the State Bar

2-34 of Nevada or its successor organization.

2-35 2. After the initial appointments, members of the commission serve

2-36 terms of 4 years, except when appointed to fill unexpired terms.

2-37 3. The commission shall elect a chairman from among its members.

2-38 4. A vacancy occurring in the membership of the commission must

2-39 be filled in the same manner as the original appointment.

2-40 5. The commission shall meet at the call of the chairman or at the

2-41 request of a majority of the members of the commission.

3-1 6. Whenever practicable, the commission shall hold its meetings

3-2 through the use of electronic communication, unless doing so would

3-3 violate the provisions of chapter 241 of NRS.

3-4 7. The members of the commission serve without compensation,

3-5 except that while engaged in the business of the commission, each

3-6 member is entitled to receive the per diem allowance and travel expenses

3-7 provided for state officers and employees generally.

3-8 Sec. 5. 1. If the governor determines that:

3-9 (a) The term of an appeals officer is about to expire; or

3-10 (b) The appointment of one or more additional appeals officers or

3-11 special appeals officers is necessary or desirable to conduct hearings in

3-12 contested claims for compensation pursuant to NRS 616C.360,

3-13 the governor shall notify the commission to recommend appeals officers

3-14 at least 45 days before the date on which the term of the appeals officer

3-15 will expire or on which the additional appeals officer or special appeals

3-16 officer will be appointed. If the governor intends to reappoint an appeals

3-17 officer whose term is about to expire, the governor shall notify the

3-18 commission to recommend appeals officers of that fact.

3-19 2. Except as otherwise provided in this subsection, within 30 days

3-20 after the receipt of the notice described in subsection 1, the commission

3-21 to recommend appeals officers shall provide to the governor a list of

3-22 three nominees for appointment to the position of appeals officer or

3-23 special appeals officer, as appropriate. If the governor has provided

3-24 notice of intent to reappoint an appeals officer pursuant to subsection 1,

3-25 the commission to recommend appeals officers shall:

3-26 (a) Conduct an evaluation of the performance of the appeals officer

3-27 during the immediately preceding term, including, without limitation, an

3-28 evaluation of the performance of the appeals officer with respect to the

3-29 standards adopted pursuant to NRS 616C.295; and

3-30 (b) Provide to the governor a recommendation regarding whether the

3-31 appeals officer should be reappointed.

3-32 3. In appointing an appeals officer or special appeals officer

3-33 pursuant to NRS 616C.340, the governor shall consider, but is not bound

3-34 by, a list of nominees provided or a recommendation made by the

3-35 commission to recommend appeals officers pursuant to this section.

3-36 Sec. 6. NRS 616C.295 is hereby amended to read as follows:

3-37 616C.295 The chief of the hearings division of the department of

3-43 of mediation.

4-1 (b) The training and continuing education required of each person

4-2 employed by the hearings division as an appeals officer.

4-3 (c) Standards for the performance of appeals officers in handling

4-4 appeals and contested claims for compensation, including, without

4-5 limitation, standards that require an appeals officer to render a decision

4-6 in each appeal and contested claim in a manner that is consistent with:

4-7 (1) Legal authority; and

4-8 (2) Other decisions, if any, rendered by that appeals officer with

4-9 respect to appeals and contested claims in which the facts and issues

4-10 were substantially similar.

4-11 (d) Procedures to improve the performance of an appeals officer

4-12 whom the senior appeals officer determines by evaluation pursuant to

4-13 section 3 of this act to be performing in a substandard manner.

4-14 2. Provide for the expediting of the hearing of cases that involve the

4-15 termination or denial of compensation.

4-16 3. At least once each year, compile the following information with

4-17 respect to each appeals officer employed by the hearings division of the

4-18 department of administration:

4-19 (a) The number of hearings on the merits in contested claims for

4-20 compensation that the appeals officer has conducted in each month

4-21 during his term of office;

4-22 (b) The number of final decisions of the appeals officer for which

4-23 judicial review is sought pursuant to NRS 616C.370, including notations

4-24 that identify specifically for each such decision:

4-25 (1) The court in which judicial review is sought; and

4-26 (2) The action taken by the court in which judicial review is sought,

4-27 including, without limitation, whether the matter is still pending or

4-28 whether the court affirmed, modified or reversed the decision of the

4-29 appeals officer; and

4-30 (c) The evaluations pertaining to the appeals officer that have been

4-31 conducted by the senior appeals officer pursuant to section 3 of this act.

4-32 Sec. 7. NRS 616C.325 is hereby amended to read as follows:

4-33 616C.325 1. It is unlawful for any person to represent an employee

4-43 to represent the employee before an appeals officer.

5-1 2. It is unlawful for any person to represent an employer at hearings of

5-2 contested cases unless that person is:

5-3 (a) Employed full time by the employer or a trade association to which

5-4 the employer belongs that is not formed solely for the purpose of providing

5-5 representation at hearings of contested cases;

5-6 (b) An employer’s representative licensed pursuant to subsection 3 who

5-7 is not licensed as a third-party administrator;

5-8 (c) Admitted to practice law in this state; or

5-9 (d) A licensed third-party administrator.

5-10 3. The director of the department of administration shall adopt

5-11 regulations which include the:

5-12 (a) Requirements for licensure of employers’ representatives, including:

5-13 (1) The registration of each representative; and

5-14 (2) The filing of a copy of each written agreement for the

5-15 compensation of a representative;

5-16 (b) Procedure for such licensure; and

5-17 (c) Causes for revocation of such a license, including any applicable

5-18 action listed in NRS 616D.120 or a violation of this section.

5-19 4. Any person who is employed by or contracts with an employer to

5-20 represent the employer at hearings regarding contested claims is an agent of

5-21 the employer. If the employer’s representative violates any provision of this

5-22 chapter or chapter 616A, 616B or 616D of NRS, the employer is liable for

5-23 any penalty assessed because of that violation.

5-24 5. An employer shall not make the compensation of any person

5-25 representing him contingent in any manner upon the outcome of any

5-26 contested claim.

5-27 6. The director of the department of administration shall collect in

5-28 advance and deposit with the state treasurer for credit to the state general

5-29 fund the following fees for licensure as an employer’s representative:

5-30 (a) Application and license $78

5-31 (b) Triennial renewal of each license 78

5-32 Sec. 8. NRS 616C.340 is hereby amended to read as follows:

5-33 616C.340 1. The governor shall , in accordance with section 5 of

5-43 claims for compensation or similar experience. Except as otherwise

6-1 provided in NRS 7.065, an appeals officer shall not engage in the private

6-2 practice of law.

6-3 3. An appeals officer shall comply with the provisions of the Nevada

6-4 Code of Judicial Conduct.

6-5 4. If an appeals officer determines that he has a personal interest or a

6-6 conflict of interest, directly or indirectly, in any case which is before him,

6-7 he shall disqualify himself from hearing the case.

6-8 [4.] 5. The governor may , in accordance with section 5 of this act,

6-9 appoint one or more special appeals officers to conduct hearings in

6-10 contested claims for compensation pursuant to NRS 616C.360. The

6-11 governor shall not appoint an attorney who represents persons in actions

6-12 related to claims for compensation to serve as a special appeals officer.

6-13 [5.] 6. A special appeals officer appointed pursuant to subsection [4] 5

6-14 must possess the same qualifications as a regular appeals officer and is

6-15 vested with the same powers as a regular appeals officer. A special appeals

6-16 officer may hear any case in which a regular appeals officer has a conflict,

6-17 or any case assigned to him by the senior appeals officer to assist with a

6-18 backlog of cases. A special appeals officer is entitled to be paid at an

6-19 hourly rate, as determined by the department of administration.

6-20 [6.] 7. The decision of an appeals officer is the final and binding

6-21 administrative determination of a claim for compensation under chapters

6-22 616A to 616D, inclusive, or chapter 617 of NRS, and the whole record

6-23 consists of all evidence taken at the hearing before the appeals officer and

6-24 any findings of fact and conclusions of law based thereon.

6-25 Sec. 9. NRS 616C.360 is hereby amended to read as follows:

6-26 616C.360 1. A stenographic or electronic record must be kept of the

6-43 of the record of the hearing at any time before the seventh day after the

7-1 hearing. The transcript must be filed within 30 days after the date of the

7-2 order unless the appeals officer otherwise orders.

7-3 5. The appeals officer shall render his decision:

7-4 (a) If a transcript is ordered within 7 days after the hearing, within 30

7-5 days after the transcript is filed; or

7-6 (b) If a transcript has not been ordered, within 30 days after the date of

7-7 the hearing.

7-8 6. The appeals officer may affirm, modify or reverse any decision

7-9 made by the hearing officer and issue any necessary and proper order to

7-10 give effect to his decision.

7-11 7. The appeals officer shall give notice of his decision to each party

7-12 by mail or by personal delivery.

7-13 Sec. 10. Chapter 232 of NRS is hereby amended by adding thereto a

7-14 new section to read as follows:

7-15 The director, in his capacity as the chief of the hearings division, shall

7-16 adopt regulations governing the conduct of the hearing and appeals

7-17 officers. The regulations must include:

7-18 1. A procedure for a person who believes that a hearing or appeals

7-19 officer has violated the standards for conduct to make a complaint to the

7-20 director or his designee.

7-21 2. Rules of practice pursuant to which the director or his designee

7-22 will hear complaints made pursuant to subsection 1.

7-23 3. The penalties that may be imposed against a hearing or appeals

7-24 officer if the director or his designee determines, pursuant to the rules of

7-25 practice adopted pursuant to subsection 2, that a hearing or appeals

7-26 officer has violated a standard for conduct.

7-27 Sec. 11. NRS 232.212 is hereby amended to read as follows:

7-28 232.212 As used in NRS 232.212 to 232.2195, inclusive, and section

7-31 2. "Director" means the director of the department.

7-32 Sec. 12. NRS 232.215 is hereby amended to read as follows:

7-33 232.215 The director:

7-42 position if he has the qualifications required by NRS 353.175.

8-1 3. Shall serve as chief of the hearings division and [shall] appoint the

8-2 hearing officers and compensation officers. The director may designate one

8-3 of the appeals officers in the division [to] as the senior appeals officer.

8-4 The senior appeals officer shall supervise the administrative, technical and

8-5 procedural activities of the division. The senior appeals officer shall

8-6 perform such additional duties as the director, serving as chief of the

8-7 hearings division, may require.

8-8 4. Shall serve as chairman of the state public works board.

8-9 5. Is responsible for the administration, through the divisions of the

8-10 department, of the provisions of chapters 331, 333, 336 and 344 of NRS,

8-11 NRS 353.150 to 353.246, inclusive, and all other provisions of law relating

8-12 to the functions of the divisions of the department.

8-13 6. Is responsible for the administration of the laws of this state relating

8-14 to the negotiation and procurement of medical services and other benefits

8-15 for state agencies.

8-16 7. Has such other powers and duties as are provided by law.

8-17 Sec. 13. NRS 232.680 is hereby amended to read as follows:

8-18 232.680 1. The cost of carrying out the provisions of NRS 232.550

8-43 including the costs of the office and staff of the administrator.

9-1 (b) All salaries and other expenses of administering NRS 616A.435 to

9-2 616A.460, inclusive, the offices of the hearings division of the department

9-3 of administration and the programs of self-insurance and review of

9-4 premium rates by the commissioner of insurance.

9-5 (c) The salary and other expenses of a full-time employee of the

9-6 legislative counsel bureau whose principal duties are limited to conducting

9-7 research and reviewing and evaluating data related to industrial insurance.

9-8 (d) All salaries and other expenses of the fraud control unit for industrial

9-9 insurance established pursuant to NRS 228.420.

9-10 (e) Claims against uninsured employers arising from compliance with

9-11 NRS 616C.220 and 617.401.

9-12 (f) All salaries and expenses of the members of the legislative committee

9-13 on workers’ compensation and any other expenses incurred by the

9-14 committee in carrying out its duties pursuant to NRS 218.5375 to

9-15 218.5378, inclusive.

9-16 (g) All the per diem allowances and travel expenses authorized for the

9-17 members of the commission to recommend appeals officers pursuant to

9-18 subsection 7 of section 4 of this act.

9-19 Sec. 14. As soon as is practicable after July 1, 1999:

9-20 1. The governor shall appoint to the commission to recommend

9-21 appeals officers, created pursuant to section 4 of this act:

9-22 (a) One person pursuant to paragraph (a) of subsection 1 of section 4 of

9-23 this act to a term that expires on June 30, 2003.

9-24 (b) One person pursuant to paragraph (b) of subsection 1 of section 4 of

9-25 this act to a term that expires on June 30, 2001.

9-26 (c) One person pursuant to paragraph (c) of subsection 1 of section 4 of

9-27 this act to a term that expires on June 30, 2003.

9-28 (d) One person pursuant to paragraph (c) of subsection 1 of section 4 of

9-29 this act to a term that expires on June 30, 2001.

9-30 2. The board of governors of the State Bar of Nevada shall appoint to

9-31 the commission to recommend appeals officers, created pursuant to section

9-32 4 of this act, one person pursuant to paragraph (d) of subsection 1 of

9-33 section 4 of this act to a term that expires on June 30, 2003.

9-34 Sec. 15. 1. This section and sections 1 to 12, inclusive, and 14 of

9-35 this act become effective on July 1, 1999.

9-36 2. Section 13 of this act becomes effective at 12:01 a.m. on July 1,

9-37 1999.