Senate Bill No. 92–Committee on Commerce and Labor

CHAPTER........

Section 1. NRS 608.150 is hereby amended to read as follows:

608.150 1. Every original contractor making or taking any contract in

this state for the erection, construction, alteration or repair of any building

or structure, or other work, shall assume and is liable for the indebtedness

for labor incurred by any subcontractor or any contractors acting under, by

or for the original contractor in performing any labor, construction or other

work included in the subject of the original contract, for labor, and for the

2. It is unlawful for any contractor or any other person to fail to comply

with the provisions of subsection 1, or to attempt to evade the responsibility

imposed thereby, or to do any other act or thing tending to render nugatory

the provisions of this section.

3. The district attorney of any county wherein the defendant may reside

or be found shall institute civil proceedings against any such original

contractor failing to comply with the provisions of this section in a civil

action for the amount of all wages and damage that may be owing or have

accrued as a result of the failure of any subcontractor acting under the

original contractor, and any property of the original contractor, not exempt

by law, is subject to attachment and execution for the payment of any

judgment that may be recovered in any action under the provisions of this

section.

Sec. 2. NRS 612.530 is hereby amended to read as follows:

612.530 1. Within 10 days after the decision of the board of review

has become final, any party aggrieved thereby or the administrator may

secure judicial review thereof by commencing an action in the district court

of the county wherein the appealed claim or claims were filed against the

administrator for the review of the decision, in which action any other party

to the proceedings before the board of review must be made a defendant.

2. In such action, a petition which need not be verified, but which must

state the grounds upon which a review is sought, must be served upon the

administrator, unless he is the appellant, or upon such person as he may

designate, and such service shall be deemed completed service on all

parties, but there must be left with the party so served as many copies of the

petition as there are defendants, and the administrator shall forthwith mail

one such copy to each such defendant. 3. With his answer or petition, the administrator shall certify and file

with the court originals or true copies of all documents and papers and a

transcript of all testimony taken in the matter, together with the board of

review's findings of fact and decision therein. The administrator may also,

in his discretion, certify to the court questions of law involved in any

decision.

4. In any judicial proceedings under this section, the finding of the

board of review as to the facts, if supported by evidence and in the absence

of fraud, is conclusive, and the jurisdiction of the court is confined to

questions of law.

5. Such actions, and the questions so certified, must be heard in a

summary manner and must be given precedence over all other civil cases

6. An appeal may be taken from the decision of the district court to the

supreme court of Nevada, in the same manner, but not inconsistent with the

provisions of this chapter, as is provided in civil cases.

7. It is not necessary, in any judicial proceeding under this section, to

enter exceptions to the rulings of the board of review, and no bond may be

required for entering such appeal.

8. Upon the final determination of such judicial proceeding, the board

of review shall enter an order in accordance with the determination.

9. A petition for judicial review does not act as a supersedeas or stay

unless the board of review so orders.

Sec. 3. NRS 616A.410 is hereby amended to read as follows:

616A.410 1. The administrator may prosecute, defend and maintain

actions in the name of the administrator for the enforcement of the

and is entitled to all extraordinary writs provided by the constitution of the

State of Nevada, the statutes of this state and the Nevada Rules of Civil

Procedure in connection therewith for the enforcement thereof.

2. Verification of any pleading, affidavit or other paper required may

be made by the administrator.

3. In any action or proceeding or in the prosecution of any appeal by

the administrator, no bond or undertaking need be furnished by the

administrator.

Sec. 4. NRS 616A.420 is hereby amended to read as follows:

616A.420 1. The administrator may enter into agreements or

compacts with appropriate agencies, bureaus, boards or commissions of

other states concerning matters of mutual interest, extraterritorial problems

or benefits.

2. The insurer may provide liability insurance coverage against any

risks of double liability on the part of employers subject to chapters 616A

616A.475 1. Every employer insured by the system shall furnish the

system or the administrator, upon request, all information required to carry

NRS. The administrator, or any person employed by the administrator for

that purpose, may examine, under oath, any employer or officer, agent or

employee thereof.

2. Every self-insured employer, association of self-insured public or

private employers or private carrier shall furnish to the administrator, upon

request, all information required to carry out the purposes of chapters 616A

person employed by him for that purpose, may examine, under oath, any

employer or officer, agent or employee thereof.

3. Every insured employer shall keep on hand constantly a sufficient

supply of blank forms furnished by the insurer.

Sec. 6. NRS 616B.012 is hereby amended to read as follows:

616B.012 1. Except as otherwise provided in this section and in NRS

616B.015, 616B.021 and 616C.205, information obtained from any insurer,

employer or employee is confidential and may not be disclosed or be open

to public inspection in any manner which would reveal the person's

identity.

2. Any claimant or his legal representative is entitled to information

from the records of the insurer, to the extent necessary for the proper

presentation of a claim in any proceeding under chapters 616A to 616D,

3. The division and administrator are entitled to information from the

records of the insurer which is necessary for the performance of their

duties. The administrator may, by regulation, prescribe the manner in which

otherwise confidential information may be made available to:

(a) Any agency of this or any other state charged with the administration

or enforcement of laws relating to industrial insurance, unemployment

compensation, public assistance or labor law and industrial relations;

(b) Any state or local agency for the enforcement of child support;

(c) The Internal Revenue Service of the Department of the Treasury;

(d) The department of taxation; and

(e) The state contractors' board in the performance of its duties to

enforce the provisions of chapter 624 of NRS.

Information obtained in connection with the administration of a program of

industrial insurance may be made available to persons or agencies for

purposes appropriate to the operation of a program of industrial insurance.

4. Upon written request made by a public officer of a local

and place of employment of any person listed in its records. The request

must set forth the social security number of the person about whom the

request is made and contain a statement signed by proper authority of the

local government certifying that the request is made to allow the properauthority to enforce a law to recover a debt or obligation owed to the local

government. The information obtained by the local government is

confidential and may not be used or disclosed for any purpose other than

the collection of a debt or obligation owed to that local government. The

insurer may charge a reasonable fee for the cost of providing the requested

information.

5. To further a current criminal investigation, the chief executive

officer of any law enforcement agency of this state may submit to the

administrator a written request for the name, address and place of

employment of any person listed in the records of an insurer. The request

must set forth the social security number of the person about whom the

request is made and contain a statement signed by the chief executive

officer certifying that the request is made to further a criminal investigation

currently being conducted by the agency. Upon receipt of a request, the

administrator shall instruct the insurer to furnish the information requested.

Upon receipt of such an instruction, the insurer shall furnish the

information requested. The insurer may charge a reasonable fee to cover

any related administrative expenses.

6. The administrator shall provide lists containing the names and

addresses of employers, the number of employees employed by each

employer and the total wages paid by each employer to the department of

taxation, upon request, for its use in verifying returns for the business tax.

The administrator may charge a reasonable fee to cover any related

administrative expenses.

7. Any person who, in violation of this section, discloses information

purposes, is guilty of a gross misdemeanor.

8. All letters, reports or communications of any kind, oral or written,

from the insurer, or any of its agents, representatives or employees are

privileged and must not be the subject matter or basis for any lawsuit if the

letter, report or communication is written, sent, delivered or prepared

Sec. 7. NRS 616B.015 is hereby amended to read as follows:

616B.015 1. Except as otherwise provided in subsection 2, the

records and files of the division concerning self-insured employers and

associations of self-insured public or private employers are confidential and

may be revealed in whole or in part only in the course of the administration

NRS relating to those employers or upon the lawful order of a court of

competent jurisdiction.

2. The records and files specified in subsection 1 are not confidential in

the following cases: (a) Testimony by an officer or agent of the division and the production

of records and files on behalf of the division in any action or proceeding

conducted pursuant to the provisions of chapters 616A to 616D, inclusive,

facts shown thereby, are involved in the action or proceeding.

(b) Delivery to a self-insured employer or an association of self-insured

public or private employers of a copy of any document filed by the

employer with the division pursuant to the provisions of chapters 616A to

(c) Publication of statistics if classified so as to prevent:

(1) Identification of a particular employer or document; or

(2) Disclosure of the financial or business condition of a particular

employer or insurer.

(d) Disclosure in confidence, without further distribution or disclosure

to any other person, to:

(1) The governor or his agent in the exercise of the governor's general

supervisory powers;

(2) Any person authorized to audit the accounts of the division in

pursuance of an audit;

(3) The attorney general or other legal representative of the state in

connection with an action or proceeding conducted pursuant to the

(4) Any agency of this or any other state charged with the

administration or enforcement of the laws relating to workers'

compensation or unemployment compensation; or

(5) Any federal, state or local law enforcement agency.

(e) Disclosure in confidence by a person who receives information

pursuant to paragraph (d) to a person in furtherance of the administration or

enforcement of the laws relating to workers' compensation or

unemployment compensation.

3. As used in this section:

(a) "Division" means the division of insurance of the department of

business and industry.

(b) "Records and files" means:

(1) All credit reports, references, investigative records, financial

information and data pertaining to the net worth of a self-insured employer

or association of self-insured public or private employers; and

(2) All information and data required by the division to be furnished

or which may be otherwise obtained relative to the finances, earnings,

revenue, trade secrets or the financial condition of any self-insured

employer or association of self-insured public or private employers.

Sec. 8. NRS 616B.059 is hereby amended to read as follows:

616B.059 There is no liability in a private capacity on the part of the

manager while carrying out his duties pursuant to chapters 616A to 616D,

616B.074 Subject to the limitations of chapters 616A to 616D,

manager, the system must be administered by the manager, assistant

managers, and a staff appointed by the manager.

Sec. 10. NRS 616B.089 is hereby amended to read as follows:

616B.089 The State of Nevada is not liable for the payment of any

compensation or any salaries or expenses in the administration of chapters

safety and preservation of the state insurance fund.

Sec. 11. NRS 616B.095 is hereby amended to read as follows:

616B.095 If the provisions of NRS 616B.218, 616B.224 and

616B.230 for the creation of a state insurance fund, or the provisions of

compensation to the workman provided in those chapters exclusive of any

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

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

those chapters as a whole or any part thereof.

Sec. 12. NRS 616B.167 is hereby amended to read as follows:

616B.167 The manager:

1. Has full power, authority and jurisdiction over the system.

2. May perform all acts necessary or convenient in the exercise of any

power, authority or jurisdiction over the system, either in the administration

of the system or in connection with the business of insurance to be carried

on by the system under the provisions of chapters 616A to 616D, inclusive,

3. May appoint in the unclassified service of the state no more than five

may not change them without the approval of the personnel commission.

These persons are entitled to receive annual salaries fixed by the manager.

Sec. 13. NRS 616B.191 is hereby amended to read as follows:

616B.191 In addition to any other agreements authorized by the

the manager may contract with private persons for the provision of any

services necessary or appropriate to carry out the functions and duties of

the system. The contracts must be awarded pursuant to reasonable

competitive bidding procedures as established by the manager.

Sec. 14. NRS 616B.194 is hereby amended to read as follows:

616B.194 Each insurer shall cooperate with the commissioner in the

pertain to any employer who is making an application to become self-

insured or who is self-insured, or who is becoming or who is a member of

an association of self-insured public or private employers.

Sec. 15. NRS 616B.224 is hereby amended to read as follows:

616B.224 1. Every employer who is not a self-insured employer or a

member of an association of self-insured public or private employers shall,

at intervals established by his insurer, furnish the insurer with a true and

accurate payroll showing:

(a) The total amount paid to employees for services performed;

(b) The amount of tips reported to him by every employee pursuant to

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

(c) A segregation of employment in accordance with the requirements of

the commissioner,

together with the premium due thereon. The payroll and premium must be

furnished to the insurer on or before the date established by the insurer for

the receipt of the payroll and premium.

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

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

insurer.

3. Failure of any employer to comply with the provisions of this section

and NRS 616B.218 operates as a rejection of chapters 616A to 616D,

covered by his estimate. The insurer shall notify the administrator of each

such rejection.

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

that the actual premium earned exceeds the estimated premium paid in

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

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

adequate advance premium for the period covered by the estimate.

5. The insurer shall notify any employer or his representative by first

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

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

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

6. The system may impose a penalty not to exceed 10 percent of the

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

system to submit the information and premium required in subsection 1

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

granted an extension of that time by the manager.

7. To the extent permitted by federal law, the insurer shall vigorously

pursue the collection of premiums that are due under the provisions of

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

Sec. 16. NRS 616B.227 is hereby amended to read as follows:

616B.227 1. An employer shall:

(a) Make a copy of each report that an employee files with the employer

pursuant to 26 U.S.C. § 6053(a) to report the amount of his tips to the

United States Internal Revenue Service;

(b) Submit the copy to the system or private carrier upon request and

retain another copy for his records or, if the employer is self-insured or a

member of an association of self-insured public or private employers, retain

the copy for his records; and

(c) If he is not self-insured or a member of an association of self-insured

public or private employers, pay the system or private carrier the premiums

for the reported tips at the same rate as he pays on regular wages.

2. The division shall adopt regulations specifying the form of the

declaration required pursuant to subsection 1.

3. The system, private carrier, self-insured employer or association

shall calculate compensation for an employee on the basis of wages paid by

the employer plus the amount of tips reported by the employee pursuant to

26 U.S.C. § 6053. Reports made after the date of injury may not be used

for the calculation of compensation.

4. An employer shall notify his employees of the requirement to report

NRS.

5. The administrator shall adopt such regulations as are necessary to

carry out the provisions of this section.

Sec. 17. NRS 616B.239 is hereby amended to read as follows:

616B.239 1. At any time within 3 years after:

(a) Any premium or any amount of a premium required by chapters

(b) The delinquency of any premium or any amount of a premium

required by chapters 616A to 616D, inclusive, or chapter 617 of NRS; or

(c) The recording of a certificate pursuant to NRS 616B.257,

the manager or his authorized representative may bring an action in the

courts of this state, or any other state, or of the United States, in the name

of the system, to collect the amount delinquent together with penalties and

interest.

2. In the action a writ of attachment may issue, and no bond or affidavit

previous to the issuing of the attachment is required.

3. In the action, a certificate by the manager showing the delinquency

is prima facie evidence of the determination of the premium due, of the

delinquency of the amounts set forth, and of the compliance by the manager

amounts.

Sec. 18. NRS 616B.248 is hereby amended to read as follows:

616B.248 1. Whenever the manager finds that the collection of any

premium computed pursuant to the provisions of chapters 616A to 616D,

immediately assess the premium and all penalties and interest which may

have accrued, whether or not the final date otherwise prescribed for making

the premium has arrived. Upon assessment, the premium is immediately

due, the premium and all penalties and interest which may have accrued are

upon the employer. If the employer fails or refuses to pay the assessed

premium, penalties and interest, collection of the payment may be enforced

according to the provisions of law applicable to the collection of unpaid

premiums.

2. When a jeopardy assessment has been made as provided in

subsection 1, the employer may stay its collection until such time as the

filing a bond with the manager which is executed by the employer as

premium at the proper time. The amount of the required security must be

integral multiple of $100.

3. In lieu of a bond, the employer may deposit with the manager a like

amount of lawful money of the United States or any other form of security

authorized by NRS 100.065. If security is provided in the form of a savings

certificate, certificate of deposit or investment certificate, the certificate

must state that the amount is not available for withdrawal except upon order

of the manager.

Sec. 19. NRS 616B.254 is hereby amended to read as follows:

and any county, municipality, district or other political subdivision thereof.

2. If any employer is delinquent in the payment of the amount of any

premium, penalty or interest required by chapters 616A to 616D, inclusive,

which remains unpaid, the manager may, not later than 3 years after the

payment became delinquent or within 6 years after the recording of a

judgment pursuant to NRS 616B.266, give notice of the amount of the

delinquency personally or by registered or certified mail to any person

having in his possession or under his control any money, credits or other

debts to the delinquent employer at the time of the receipt of the registered

or certified notice. In the case of any state officer, department or agency,

the notice must be given to the officer, department or agency before it

presents the claim of the delinquent employer to the state controller. 3. A state officer, department or agency which receives such a notice

may satisfy any debt owed to it by that person before it honors the

manager's notice.

4. After receiving the notice, a person so notified may not transfer or

in his possession or under his control at the time he received the notice until

the manager consents to a transfer or other disposition in writing, or until

30 days after the receipt of the notice, whichever period expires earlier.

5. A person so notified shall, within 5 days after receipt of the notice,

debts belonging to the delinquent employer in his possession, under his

control or owing by him.

6. If the notice seeks to prevent the transfer or other disposition of a

deposit in a bank or other credits or personal property in the possession or

under the control of a bank, the notice must be delivered or mailed to the

branch or office of the bank at which the deposit is carried or at which the

credits or personal property is held.

7. If, during the effective period of the notice to withhold, any person

so notified makes any transfer or other disposition of the property or debts

required to be withheld, to the extent of the value of the property or the

amount of the debts thus transferred or paid, he is liable to the state for any

was given if solely by reason of the transfer or other disposition the state is

unable to recover the indebtedness of the person with respect to whose

obligation the notice was given.

8. Upon the demand of the manager, the person shall remit or deliver

to the manager the money, credit or other personal property up to the

amount owed by the delinquent employer.

Sec. 20. NRS 616B.257 is hereby amended to read as follows:

616B.257 If any amount required to be paid to the system pursuant to

is not paid when due, the manager may, within 3 years after the amount is

due, file in the office of the clerk of any court of competent jurisdiction a

certificate specifying the amount required to be paid, interest and penalties

due, the name and address of the employer liable for the payment, as it

appears on the records of the system, the manager's compliance with the

amount required to be paid, including interest and penalties, as set forth in

the certificate.

Sec. 21. NRS 616B.269 is hereby amended to read as follows:

616B.269 Except as otherwise provided in NRS 616D.210:

1. If any business which is liable for any amount required to be paid

the business, its successors or assigns shall withhold a sufficient portion of

the purchase price to cover that amount until the former owner produces a

receipt from the manager showing that it has been paid or a certificate

stating that no amount is due.

2. If the purchaser of a business, or any portion of a business, or stock

of goods fails to withhold from the purchase price the amount required by

subsection 1, he becomes personally liable for the payment of the amount

required to be withheld by him to the extent of the purchase price, valued in

money. Within 60 days after receiving a written request from the purchaser

for a certificate, or within 60 days after the date the former owner's records

are made available for audit, whichever period expires later, but not later

than 90 days after receiving the request, the manager shall issue the

certificate or mail a notice to the purchaser at his address as it appears on

the records of the manager, of the amount that must be paid as a condition

of issuing the certificate.

3. Failure of the manager to mail the notice releases the purchaser from

any further obligation to withhold any portion of the purchase price.

4. The time within which the obligation of a successor may be enforced

begins at the time the person or business sells out its business or stock of

goods or at the time that the determination against the person or business

becomes final, whichever occurs later.

Sec. 22. NRS 616B.318 is hereby amended to read as follows:

616B.318 1. The commissioner shall impose an administrative fine,

not to exceed $1,000 for each violation, and:

(a) Shall withdraw the certification of a self-insured employer if:

(1) The deposit required pursuant to NRS 616B.300 is not sufficient

and the employer fails to increase the deposit after he has been ordered to

do so by the commissioner;

(2) The self-insured employer fails to provide evidence of excess

insurance pursuant to NRS 616B.300 within 45 days after he has been so

ordered; or

(3) The employer becomes insolvent, institutes any voluntary

proceeding under the Bankruptcy Act or is named in any involuntary

proceeding thereunder.

(b) May withdraw the certification of a self-insured employer if:

(1) The employer intentionally fails to comply with regulations of the

commissioner regarding reports or other requirements necessary to carry

NRS;

(2) The employer violates the provisions of subsection 2 of NRS

616B.500 or any regulation adopted by the commissioner or the

administrator concerning the administration of the employer's plan of self-

insurance; or (3) The employer makes a general or special assignment for the

benefit of creditors or fails to pay compensation after an order for payment

of any claim becomes final.

2. Any employer whose certification as a self-insured employer is

withdrawn must, on the effective date of the withdrawal, qualify as an

employer pursuant to NRS 616B.650.

3. The commissioner may, upon the written request of an employer

whose certification as a self-insured employer is withdrawn pursuant to

subparagraph (3) of paragraph (a) of subsection 1, reinstate the employer's

certificate for a reasonable period to allow the employer sufficient time to

provide industrial insurance for his employees.

Sec. 23. NRS 616B.324 is hereby amended to read as follows:

616B.324 A person who is employed by or contracts with a self

-insured employer to administer the plan of self-insurance is an agent of the

is liable for any penalty assessed because of that violation.

Sec. 24. NRS 616B.362 is hereby amended to read as follows:

616B.362 1. An association certified as an association of self-insured

public or private employers directly assumes the responsibility for

providing compensation due the employees of the members of the

association and their beneficiaries under chapters 616A to 617, inclusive,

of NRS.

2. An association is not required to pay the premiums required of other

employers pursuant to chapters 616A to 617, inclusive, of NRS but is

relieved from other liability for personal injury to the same extent as are

other employers.

3. The claims of employees and their beneficiaries resulting from

injuries while in the employment of a member of an association must be

handled in the manner provided by chapters 616A to 616D, inclusive, of

NRS, and the association is subject to the regulations of the division with

respect thereto.

4. The security deposited pursuant to NRS 616B.353 does not relieve

an association from responsibility for the administration of claims and

of NRS.

Sec. 25. NRS 616B.428 is hereby amended to read as follows:

616B.428 1. The commissioner may impose an administrative fine

for each violation of any provision of NRS 616B.350 to 616B.446,

inclusive, or any regulation adopted pursuant thereto. Except as otherwise

provided in those sections, the amount of the fine may not exceed $1,000

for each violation or an aggregate amount of $10,000.

2. The commissioner may withdraw the certificate of an association of

self-insured public or private employers if:

(a) The association's certificate was obtained by fraud

; (b) The application for certification contained a material

misrepresentation;

(c) The association is found to be insolvent;

(d) The association fails to have five or more members;

(e) The association fails to pay the costs of any examination or any

penalty, fee or assessment required by the provisions of chapters 616A to

(f) The association fails to comply with any of the provisions of this

regulation adopted pursuant thereto;

(g) The association fails to comply with any order of the commissioner

within the time prescribed by the provisions of chapters 616A to 616D,

(h) The association or its third-party administrator misappropriates,

converts, illegally withholds or refuses to pay any money to which a person

is entitled and that was entrusted to the association in its fiduciary capacity.

3. If the commissioner withdraws the certification of an association of

self-insured public or private employers, each employer who is a member

of the association remains liable for his obligations incurred before and

after the order of withdrawal.

4. Any employer who is a member of an association whose certification

is withdrawn shall, on the effective date of the withdrawal, qualify as an

employer pursuant to NRS 616B.650.

Sec. 26. NRS 616B.503 is hereby amended to read as follows:

616B.503 1. A person shall not act as a third-party administrator for

an insurer without a certificate issued by the commissioner pursuant to NRS

683A.085.

2. A person who acts as a third-party administrator pursuant to chapters

(a) Administer from one or more offices located in this state all of the

claims arising under each plan of insurance that he administers and

maintain in those offices all of the records concerning those claims;

(b) Administer each plan of insurance directly, without subcontracting

with another third-party administrator; and

(c) Upon the termination of his contract with an insurer, transfer

forthwith to a certified third-party administrator chosen by the insurer all of

the records in his possession concerning claims arising under the plan of

insurance.

3. The commissioner may, under exceptional circumstances, waive the

requirements of subsection 2.

Sec. 27. NRS 616B.506 is hereby amended to read as follows:

616B.506 The commissioner shall impose an administrative fine, not to

exceed $1,000 for each violation, and may withdraw the certification of any

third-party administrator who: 1. Fails to comply with regulations of the commissioner regarding

reports or other requirements necessary to carry out the purposes of

2. Violates any provision of NRS 616B.503 or any regulation adopted

by the commissioner or the administrator concerning the administration of

the plan of insurance.

Sec. 28. NRS 616B.600 is hereby amended to read as follows:

616B.600 1. Except as limited in subsection 3, any employee who

has been hired outside of this state and his employer are exempted from the

while the employee is temporarily within this state doing work for his

employer if his employer has furnished industrial insurance pursuant to the

of a state other than Nevada so as to cover the employee's employment

(a) The extraterritorial provisions of chapters 616A to 616D, inclusive,

(b) Employers and employees who are covered in this state are likewise

against the employer for any injury, whether resulting in death or not,

received by the employee while working for the employer in this state.

2. A certificate from the administrator or similar officer of another

state certifying that the employer of the other state is insured therein and

has provided extraterritorial coverage insuring his employees while

working within this state is prima facie evidence that the employer carried

the industrial insurance.

3. The exemption provided for in this section does not apply to the

employees of a contractor, as defined in NRS 624.020, operating within the

scope of his license.

4. An employer is not required to maintain coverage for industrial

insurance in this state for an employee who has been hired or is regularly

employed in this state, but who is performing work exclusively in another

state, if the other state requires the employer to provide coverage for the

employee in the other state. If the employee receives personal injury by

accident arising out of and in the course of his employment, any claim for

compensation must be filed in the state in which the accident occurred, and

such compensation is the exclusive remedy of the employee or his

dependents. This subsection does not prevent an employer from

maintaining coverage for the employee pursuant to the provisions of

Sec. 29. NRS 616B.662 is hereby amended to read as follows:

616B.662 An employer having come under chapters 616A to 616D,

payment of premiums to the insurer before the time his notice of rejection

becomes effective if any are due. The premiums may be recovered in an

action at law.

Sec. 30. NRS 616C.070 is hereby amended to read as follows:

616C.070 1. A person is conclusively presumed to be totally

dependent upon an injured or deceased employee if the person is a natural,

posthumous or adopted child, whether legitimate or illegitimate, under the

age of 18 years, or over that age if physically or mentally incapacitated

from wage earning, and there is no surviving parent. Stepparents may be

parents if the fact of dependency is shown, and a stepchild or stepchildren

NRS as a natural child or children if the existence and fact of dependency

are shown.

2. Except as otherwise provided in subsection 13 of NRS 616C.505,

questions as to who constitute dependents and the extent of their

dependency must be determined as of the date of the accident or injury to

the employee, and their right to any benefit becomes fixed at that time,

irrespective of any subsequent change in conditions, and the benefits are

directly recoverable by and payable to the dependent or dependents entitled

3. The presumptions of this section do not apply in favor of aliens who

are nonresidents of the United States at the time of the accident, injury to,

or death of the employee.

Sec. 31. NRS 616C.090 is hereby amended to read as follows:

616C.090 1. The administrator shall establish a panel of physicians

and chiropractors who have demonstrated special competence and interest

in industrial health to treat injured employees under chapters 616A to

has not entered into a contract with an organization for managed care

pursuant to NRS 616B.515 shall maintain a list of those physicians and

chiropractors on the panel who are reasonably accessible to his employees.

2. An injured employee whose insurer has not entered into a contract

with an organization for managed care may choose his treating physician or

chiropractor from the panel of physicians and chiropractors. If the injured

employee is not satisfied with the first physician or chiropractor he so

chooses, he may make an alternative choice of physician or chiropractor

from the panel if the choice is made within 90 days after his injury. The

insurer shall notify the first physician or chiropractor in writing. The notice

must be postmarked within 3 working days after the insurer receives

knowledge of the change. The first physician or chiropractor must be

reimbursed only for the services he rendered to the injured employee up to

and including the date of notification. Any further change is subject to the

approval of the insurer, which must be granted or denied within 10 days

after a written request for such a change is received from the injuredemployee. If no action is taken on the request within 10 days, the request

shall be deemed granted. Any request for a change of physician or

chiropractor must include the name of the new physician or chiropractor

chosen by the injured employee.

3. An injured employee employed or residing in any county in this state

whose insurer has entered into a contract with an organization for managed

care must choose his treating physician or chiropractor pursuant to the

terms of that contract. If the employee, after choosing his treating physician

or chiropractor, moves to a county which is not served by the organization

employee to continue treatment with the physician or chiropractor, the

employee must choose a treating physician or chiropractor who has agreed

to the terms of that contract unless the insurer authorizes the employee to

choose another physician or chiropractor.

4. Except when emergency medical care is required and except as

otherwise provided in NRS 616C.055, the insurer is not responsible for any

charges for medical treatment or other accident benefits furnished or

ordered by any physician, chiropractor or other person selected by the

employee in disregard of the provisions of this section or for any

compensation for any aggravation of the employee's injury attributable to

improper treatments by such physician, chiropractor or other person.

5. The administrator may order necessary changes in a panel of

physicians and chiropractors and shall suspend or remove any physician or

chiropractor from a panel for good cause shown.

6. An injured employee may receive treatment by more than one

physician or chiropractor if the insurer provides written authorization for

such treatment.

Sec. 32. NRS 616C.095 is hereby amended to read as follows:

616C.095 The physician or chiropractor shall inform the injured

compensation and such proof of other matters as required by the rules of

the division, without charge to the employee.

Sec. 33. NRS 616C.120 is hereby amended to read as follows:

providing for treatment for his injuries or disease through prayer or other

spiritual means in accordance with the tenets and practices of a recognized

church, which treatment is recognized in this state in lieu of medical

treatment.

Sec. 34. NRS 616C.205 is hereby amended to read as follows:

616C.205 Except as otherwise provided in this section and NRS

31A.150 and 31A.330, compensation payable under chapters 616A to

not, is not, before the issuance and delivery of the check, assignable, is

exempt from attachment, garnishment and execution, and does not pass toany other person by operation of law. In the case of the death of an injured

NRS from causes independent from the injury for which compensation is

payable, any compensation due the employee which was awarded or

accrued but for which a check was not issued or delivered at the date of

death of the employee is payable to his dependents as defined in NRS

616C.505.

Sec. 35. NRS 616C.210 is hereby amended to read as follows:

616C.210 1. The insurer shall notify a dependent of a deceased

employee who is residing outside of the United States by certified mail at

his last known address if compensation is due the decedent or beneficiary

dependent may request that payment be made directly to him within 90

calendar days after the notice was mailed. The insurer shall pay

compensation which is due a beneficiary directly to the beneficiary if the

beneficiary requests payment within 90 calendar days after the notice was

mailed.

2. If the insurer does not receive a request that payment be made

directly to a beneficiary within 90 days after the notice required by

subsection 1 is mailed, payments to the consul general, vice consul general,

consul or vice consul of the nation of which any dependent of a deceased

employee is a resident or subject, or a representative of such consul

general, vice consul general, consul or vice consul, of any compensation

dependent residing outside of the United States, any power of attorney to

receive or receipt for the same to the contrary notwithstanding, are as full a

discharge of the benefits or compensation payable under those chapters as

if payments were made directly to the beneficiary.

Sec. 36. NRS 616C.215 is hereby amended to read as follows:

616C.215 1. If an injured employee or, in the event of his death, his

dependents, bring an action in tort against his employer to recover payment

for an injury which is compensable under chapters 616A to 616D,

inclusive, or chapter 617 of NRS and, notwithstanding the provisions of

NRS 616A.020, receive payment from the employer for that injury:

(a) The amount of compensation the injured employee or his dependents

are entitled to receive pursuant to the provisions of chapters 616A to 616D,

be reduced by the amount paid by the employer.

(b) The insurer, or in the case of claims involving the uninsured

employer's claim fund or a subsequent injury fund the administrator, has a

lien upon the total amount paid by the employer if the injured employee or

his dependents receive compensation pursuant to the provisions of chapters

This subsection is applicable whether the money paid to the employee or

his dependents by the employer is classified as a gift, a settlement or

otherwise. The provisions of this subsection do not grant to an injuredemployee any right of action in tort to recover damages from his employer

for his injury.

2. When an employee receives an injury for which compensation is

legal liability in some person, other than the employer or a person in the

same employ, to pay damages in respect thereof:

(a) The injured employee, or in case of death his dependents, may take

proceedings against that person to recover damages, but the amount of the

compensation the injured employee or his dependents are entitled to

by the amount of the damages recovered, notwithstanding any act or

omission of the employer or a person in the same employ which was a

direct or proximate cause of the employee's injury.

(b) If the injured employee, or in case of death his dependents, receive

compensation pursuant to the provisions of chapters 616A to 616D,

involving the uninsured employers' claim fund or a subsequent injury fund

the administrator, has a right of action against the person so liable to pay

damages and is subrogated to the rights of the injured employee or of his

dependents to recover therefor.

3. When an injured employee incurs an injury for which compensation

is payable pursuant to the provisions of chapters 616A to 616D, inclusive,

entitling him, or in the case of death his dependents, to receive proceeds

under his employer's policy of uninsured or underinsured vehicle coverage:

(a) The injured employee, or in the case of death his dependents, may

take proceedings to recover those proceeds, but the amount of

compensation the injured employee or his dependents are entitled to

by the amount of proceeds received.

(b) If an injured employee, or in the case of death his dependents,

receive compensation pursuant to the provisions of chapters 616A to 616D,

involving the uninsured employers' claim fund or a subsequent injury fund

the administrator, is subrogated to the rights of the injured employee or his

dependents to recover proceeds under the employer's policy of uninsured

or underinsured vehicle coverage. The insurer and the administrator are not

subrogated to the rights of an injured employee or his dependents under a

policy of uninsured or underinsured vehicle coverage purchased by the

employee.

4. In any action or proceedings taken by the insurer or the

administrator pursuant to this section, evidence of the amount of

compensation, accident benefits and other expenditures which the insurer,the uninsured employers' claim fund or a subsequent injury fund have paid

or become obligated to pay by reason of the injury or death of the employee

is admissible. If in such action or proceedings the insurer or the

administrator recovers more than those amounts, the excess must be paid to

the injured employee or his dependents.

5. In any case where the insurer or the administrator is subrogated to

the rights of the injured employee or of his dependents as provided in

subsection 2 or 3, the insurer or the administrator has a lien upon the total

proceeds of any recovery from some person other than the employer,

whether the proceeds of such recovery are by way of judgment, settlement

or otherwise. The injured employee, or in the case of his death his

dependents, are not entitled to double recovery for the same injury,

notwithstanding any act or omission of the employer or a person in the

same employ which was a direct or proximate cause of the employee's

injury.

6. The lien provided for under subsection 1 or 5 includes the total

compensation expenditure incurred by the insurer, the uninsured

employers' claim fund or a subsequent injury fund for the injured employee

and his dependents.

7. An injured employee, or in the case of death his dependents, shall

notify the insurer, or in the case of claims involving the uninsured

employers' claim fund or a subsequent injury fund the administrator, in

writing before initiating a proceeding or action pursuant to this section.

8. Within 15 days after the date of recovery by way of actual receipt of

the proceeds of the judgment, settlement or otherwise:

(a) The injured employee or his dependents, or the attorney or

representative of the injured employee or his dependents; and

(b) The third-party insurer,

shall notify the insurer, or in the case of claims involving the uninsured

employers' claim fund or a subsequent injury fund the administrator, of the

recovery and pay to the insurer or the administrator, respectively, the

amount due under this section together with an itemized statement showing

the distribution of the total recovery. The attorney or representative of the

injured employee or his dependents and the third-party insurer are jointly

and severally liable for any amount to which an insurer is entitled pursuant

to this section if the attorney, representative or third-party insurer has

knowledge of the lien provided for in this section.

9. An insurer shall not sell its lien to a third-party insurer unless the

injured employee or his dependents, or the attorney or representative of the

injured employee or his dependents, refuses to provide to the insurer

information concerning the action against the third party.

10. In any trial of an action by the injured employee, or in the case of

his death by his dependents, against a person other than the employer or a

person in the same employ, the jury must receive proof of the amount of all

payments made or to be made by the insurer or the administrator. The court

shall instruct the jury substantially as follows:

premium, the employer's account with the system must be credited with an

amount equal to that recovered by the system from a third party pursuant to

this section, less the system's share of the expenses of litigation incurred in

obtaining the recovery, except that the total credit must not exceed the

amount of compensation actually paid or reserved by the system on the

injured employee's claim.

12. As used in this section, "third-party insurer" means an insurer that

issued to a third party who is liable for damages pursuant to subsection 2, a

policy of liability insurance the proceeds of which are recoverable pursuant

to this section. The term includes an insurer that issued to an employer a

policy of uninsured or underinsured vehicle coverage.

Sec. 37. NRS 616C.230 is hereby amended to read as follows:

616C.230 1. Compensation is not payable pursuant to the provisions

(a) Caused by the employee's willful intention to injure himself.

(b) Caused by the employee's willful intention to injure another.

(c) Proximately caused by the employee's intoxication. If the employee

was intoxicated at the time of his injury, intoxication must be presumed to

be a proximate cause unless rebutted by evidence to the contrary.

(d) Proximately caused by the employee's use of a controlled substance.

If the employee had any amount of a controlled substance in his system at

the time of his injury for which the employee did not have a current and

lawful prescription issued in his name, the controlled substance must be

presumed to be a proximate cause unless rebutted by evidence to the

contrary.

2. For the purposes of paragraphs (c) and (d) of subsection 1:

(a) The affidavit or declaration of an expert or other person described in

NRS 50.315 is admissible to prove the existence of any alcohol or theexistence, quantity or identity of a controlled substance in an employee's

system. If the affidavit or declaration is to be so used, it must be submitted

in the manner prescribed in NRS 616C.355.

(b) When an examination requested or ordered includes testing for the

use of alcohol or a controlled substance:

(1) If the laboratory that conducts the testing is located in a county

whose population is 100,000 or more and the testing is of urine, the

laboratory must be certified for forensic testing of urine for drugs by the

College of American Pathologists or a successor organization or by the

federal Department of Health and Human Services; and

(2) Any such testing of breath for alcohol must be performed pursuant

to the regulations of the federal Department of Transportation.

3. No compensation is payable for the death, disability or treatment of

an employee if his death is caused by, or insofar as his disability is

aggravated, caused or continued by, an unreasonable refusal or neglect to

submit to or to follow any competent and reasonable surgical treatment or

medical aid.

4. If any employee persists in an unsanitary or injurious practice that

imperils or retards his recovery, or refuses to submit to such medical or

surgical treatment as is necessary to promote his recovery, his

compensation may be reduced or suspended.

5. An injured employee's compensation, other than accident benefits,

must be suspended if:

(a) A physician or chiropractor determines that the employee is unable

to undergo treatment, testing or examination for the industrial injury solely

because of a condition or injury that did not arise out of and in the course

of his employment; and

(b) It is within the ability of the employee to correct the nonindustrial

condition or injury.

The compensation must be suspended until the injured employee is able to

resume treatment, testing or examination for the industrial injury. The

insurer may elect to pay for the treatment of the nonindustrial condition or

injury.

Sec. 38. NRS 616C.280 is hereby amended to read as follows:

616C.280 The administrator may withdraw his approval of an

employer's providing accident benefits for his employees and require the

employer to pay the premium collected pursuant to NRS 616C.255 if the

employer intentionally:

1. Determines incorrectly that a claimed injury did not arise out of and

in the course of the employee's employment;

2. Fails to advise an injured employee of his rights under chapters

3. Impedes the determination of disability or benefits by delaying a

needed change of an injured employee's physician or chiropractor;

4. Causes an injured employee to file a legal action to recover any

compensation or other medical benefits due him from the employer; 5. Violates any of his or the division's regulations regarding the

provision of accident benefits by employers; or

6. Discriminates against an employee who claims benefits under

Sec. 39. NRS 616C.325 is hereby amended to read as follows:

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

before a hearings officer, or in any negotiations, settlements, hearings or

other meetings with an insurer concerning the employee's claim or possible

claim, unless he is:

(a) Employed full time by the employee's labor organization;

(b) Admitted to practice law in this state;

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

admitted to practice law in this state; or

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

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

to represent the employee before an appeals officer.

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

contested cases unless that person is:

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

(b) An employer's representative licensed pursuant to subsection 3 who

is not licensed as a third-party administrator;

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

(d) A licensed third-party administrator.

3. The director of the department of administration shall adopt

regulations which include the:

(a) Requirements for licensure of employers' representatives, including:

(1) The registration of each representative; and

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

compensation of a representative;

(b) Procedure for such licensure; and

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

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

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

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

the employer. If the employer's representative violates any provision of this

liable for any penalty assessed because of that violation.

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

representing him contingent in any manner upon the outcome of any

contested claim.

6. The director of the department of administration shall collect in

advance and deposit with the state treasurer for credit to the state general

fund the following fees for licensure as an employer's representative:

(a) Application and license $78

(b) Triennial renewal of each license 78

Sec. 40. NRS 616C.350 is hereby amended to read as follows:

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

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

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

appeals officer. A physician or chiropractor who testifies is entitled to

receive the same fees as witnesses in civil cases and, if the appeals officer

so orders at his own discretion, a fee equal to that authorized for a

consultation by the appropriate schedule of fees for physicians or

chiropractors. These fees must be paid by the insurer.

2. Information gained by the attending physician or chiropractor while

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

(a) Required by an appeals officer for a proper understanding of the case

and a determination of the rights involved; or

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

have been committed in violation of the provisions of this chapter or

Sec. 41. NRS 616D.050 is hereby amended to read as follows:

616D.050 1. Appeals officers, the administrator, the manager and the

manager's designee, in conducting hearings or other proceedings pursuant

NRS or regulations adopted pursuant to those chapters may:

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

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

(b) Administer oaths.

(c) Certify to official acts.

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

(e) Maintain order.

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

proceeding.

(g) Permit discovery by deposition or interrogatories.

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

issues.

(i) Dispose of procedural requests or similar matters.

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

proceeding.

2. Hearing officers, in conducting hearings or other proceedings

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

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

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

held.

(b) Maintain order.

(c) Permit discovery by deposition or interrogatories

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

issues.

(e) Dispose of procedural requests or similar matters.

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

proceeding.

Sec. 42. NRS 616D.065 is hereby amended to read as follows:

616D.065 1. An appeals officer, in conducting hearings or other

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

chapters, may order the attorney or representative of a party to pay any

costs that are incurred by the hearings division of the department of

administration for a court reporter or an interpreter.

2. Before ordering the payment of such costs, the appeals officer must

find that the costs were incurred because the attorney or representative of a

party caused a continuance or delay in a scheduled hearing by his failure,

without good cause, to comply with an order of the appeals officer or a

Sec. 43. NRS 616D.080 is hereby amended to read as follows:

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

receive the same fees as a sheriff.

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

the manager or the manager's designee, is entitled to receive for his

attendance the fees and mileage provided for witnesses in civil cases in

courts of record.

3. The appeals officer, hearing officer, administrator, manager or

manager's designee shall:

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

mileage due to such a witness; or

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

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

Sec. 44. NRS 616D.110 is hereby amended to read as follows:

616D.110 1. In addition to any other remedy provided for by law, if

any employer within the provisions of NRS 616B.633 fails to provide and

secure compensation, or fails to maintain such compensation, under the

administrator may, in order to protect the employees of the employer from

the effect of not having industrial insurance coverage and upon compliance

with the requirements of subsection 2, order the immediate cessation of all

business operations at the place of employment or jobsite until such time as

the employer performs all acts and duties enjoined upon him by chapters

by the administrator in order to provide, secure and maintain compensation

under those chapters. 2. The order must:

(a) Include a reference to the particular sections of the statutes or

regulations alleged to have been violated, and a short, plain statement of the

facts alleged to constitute the violation.

(b) Provide an opportunity for hearing to the employer on a date fixed in

the order which must not be less than 5 nor more than 15 days after the date

of the order, unless upon demand of the employer the date is advanced to

the next business day after the demand is made to the administrator.

An order for summary suspension issued pursuant to this subsection must

be endorsed with the date and hour of issuance and entered of record in the

office of the administrator.

3. Immediately upon receiving an order to cease business operations

under subsection 1, an employer shall order all employees or other persons

to leave the place of employment or jobsite and shall cease all business

operations thereat.

4. Upon request by the administrator, any law enforcement agency in

this state shall render any assistance necessary to carry out the requirement

of subsection 3, including but not limited to preventing any employee or

other person from remaining at the place of employment or jobsite.

Sec. 45. NRS 616D.200 is hereby amended to read as follows:

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

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

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

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

determination thereon and may charge the employer an amount equal to the

sum of:

(a) The premiums that would otherwise have been owed to the system

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

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

exceed 6 years;

(b) The actual costs incurred by the system in reinstating the policy, but

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

(c) Interest at a rate determined pursuant to NRS 17.130 computed from

the time that the premiums should have been paid.

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

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

administrator may appeal from the determination pursuant to subsection 2

of NRS 616D.220.

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

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

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

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

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

provided in NRS 193.130.

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

pursuant to subsection 1.

Sec. 46. NRS 616D.240 is hereby amended to read as follows:

616D.240 1. Any employer who makes any charge against any

employee or who deducts from the wages of any employee any sum of

money to meet the costs, in whole or in part, of the liability incurred by the

employer by reason of his acceptance or rejection of chapters 616A to

2. An employer who is required to provide compensation pursuant to

the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS

and who requires an employee to provide or secure such compensation on

his own behalf is guilty of a gross misdemeanor.

3. Any employer violating any provision of this section must be

prosecuted by the attorney general upon complaint of any employee who,

as determined by the attorney general, submits proper evidence of a

violation.

Sec. 47. NRS 616D.300 is hereby amended to read as follows:

616D.300 Unless a different penalty is provided pursuant to NRS

616D.370 to 616D.410, inclusive, a person who knowingly makes a false

statement or representation, including, but not limited to, a false statement

or representation relating to his identity or the identity of another person, or

who knowingly conceals a material fact to obtain or attempt to obtain any

benefit, including a controlled substance, or payment under the provisions

himself or for any other person, shall be punished as follows:

1. If the amount of the benefit or payment obtained or attempted to be

obtained was less than $250, for a misdemeanor.

2. If the amount of the benefit or payment obtained or attempted to

be obtained was $250 or more, for a category D felony as provided in NRS

193.130.

In addition to any other penalty, the court shall order the person to pay

restitution.

Sec. 48. NRS 616D.310 is hereby amended to read as follows:

616D.310 A person who knowingly makes a false statement or

representation concerning the employment of a person who is receiving

NRS is guilty of a category D felony and shall be punished as provided in

NRS 193.130.

Sec. 49. NRS 616D.320 is hereby amended to read as follows:

616D.320 1. An employer shall not knowingly offer employment or

continue to employ a person who is receiving payments for a temporary

total disability in violation of the provisions of chapters 616A to 616D,

subsection 1 is guilty of a gross misdemeanor.

Sec. 50. NRS 616D.550 is hereby amended to read as follows:

616D.550 1. An insurer, organization for managed care, health care

provider, employer, third-party administrator or public officer who

believes, or has reason to believe, that:

(a) A fraudulent claim for benefits under a policy of insurance has been

made, or is about to be made;

(b) An employer within the provisions of NRS 616B.633 has:

(1) Knowingly made a false statement or representation concerning

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

(2) Failed to provide and secure compensation under the terms of

maintain that compensation;

(c) A provider of health care has submitted an invoice for payment for

accident benefits that contains information which the provider knows is

false; or

(d) A person has committed any other fraudulent practice under this

chapter or chapter 616A, 616B, 616C or 617 of NRS,

shall report that belief to the fraud control unit for industrial insurance

established pursuant to NRS 228.420.

2. The fraud control unit for industrial insurance established pursuant

to NRS 228.420 may require a person who submits a report pursuant to

subsection 1 to submit that report on a form prescribed by the unit.

Sec. 51. NRS 108.590 is hereby amended to read as follows:

108.590 1. Whenever any person receives hospitalization on account

of any injury, and he, or his personal representative after his death, claims

damages from the person responsible for causing the injury, the hospital

has a lien upon any sum awarded the injured person or his personal

representative by judgment or obtained by a settlement or compromise to

the extent of the amount due the hospital for the reasonable value of the

hospitalization rendered before the date of judgment, settlement or

compromise.

2. The lien provided by this section is:

(a) Not valid against anyone coming under the provisions of chapters

(b) In addition to the lien provided by NRS 108.662.

Sec. 52. NRS 239A.070 is hereby amended to read as follows:

239A.070 This chapter does not apply to any subpoena issued pursuant

or prohibit:

1. Dissemination of any financial information which is not identified

with or identifiable as being derived from the financial records of a

particular customer.

2. The attorney general, district attorney, department of taxation,

public administrator, sheriff or a police department from requesting of afinancial institution, and the institution from responding to the request, as to

whether a person has an account or accounts with that financial institution

and, if so, any identifying numbers of the account or accounts.

3. A financial institution, in its discretion, from initiating contact with

and thereafter communicating with and disclosing the financial records of a

customer to appropriate governmental agencies concerning a suspected

violation of any law.

4. Disclosure of the financial records of a customer incidental to a

transaction in the normal course of business of the financial institution if

the director, officer, employee or agent of the financial institution who

makes or authorizes the disclosure has no reasonable cause to believe that

such records will be used by a governmental agency in connection with an

investigation of the customer.

5. A financial institution from notifying a customer of the receipt of a

subpoena or a search warrant to obtain his financial records, except when

ordered by a court to withhold such notification.

6. The examination by or disclosure to any governmental regulatory

agency of financial records which relate solely to the exercise of its

regulatory function if the agency is specifically authorized by law to

examine, audit or require reports of financial records of financial

institutions.

7. The disclosure to any governmental agency of any financial

information or records whose disclosure to that particular agency is

required by the tax laws of this state.

8. The disclosure of any information pursuant to NRS 425.393,

425.400 or 425.460.

9. A governmental agency from obtaining a credit report or consumer

credit report from anyone other than a financial institution.

Sec. 53. NRS 244.33505 is hereby amended to read as follows:

244.33505 1. In a county in which a license to engage in a business is

required, the board of county commissioners shall not issue such a license

unless the applicant for the license signs an affidavit affirming that the

business:

(a) Has received coverage by the state industrial insurance system or a

private carrier as required pursuant to chapters 616A to 616D, inclusive,

(b) Maintains a valid certificate of self-insurance pursuant to chapters

616A to 616D, inclusive, of NRS;

(c) Is a member of an association of self-insured public or private

employers; or

(d) Is not subject to the provisions of chapters 616A to 616D, inclusive,

2. In a county in which such a license is not required, the board of

county commissioners shall require a business, when applying for a post

office box, to submit to the board the affidavit required by subsection 1. 3. Each board of county commissioners shall submit to the

administrator of the division of industrial relations of the department of

business and industry monthly a list of the names of those businesses which

have submitted an affidavit required by subsections 1 and 2.

4. Upon receiving an affidavit required by this section, a board of

county commissioners shall provide the owner of the business with a

document setting forth the rights and responsibilities of employers and

employees to promote safety in the workplace, in accordance with

regulations adopted by the division of industrial relations of the department

of business and industry pursuant to NRS 618.376.

Sec. 54. NRS 245.211 is hereby amended to read as follows:

245.211 1. The board of county commissioners of any county may

establish, by contract or otherwise, and administer a disability pension plan

or disability insurance program for the benefit of the county sheriff, any

sheriff's deputy or fireman who is disabled, to any degree, by an injury

arising out of and in the course of his employment.

2. The board of county commissioners may adopt ordinances, rules,

regulations, policies and procedures necessary to establish and administer

the plan or program specified in subsection 1.

3. If a county elects to consider implementation of a plan or program

specified in subsection 1, or to change the benefits provided by an existing

plan or program, the persons affected by the proposed plan or program, or

proposed change, may negotiate with the county concerning the nature and

supplemental or in addition to and not in conflict with the coverage,

compensation, benefits or procedure established by or adopted pursuant to

5. The benefits provided for in this section are supplemental to other

benefits an employee is entitled to receive on account of the same

disability. In no event shall the benefits provided for in this section, when

added to benefits provided for or purchased by the expenditure of public

entitled to receive if he has been a member of the department or agency for

10 years or more.

Sec. 55. NRS 268.0955 is hereby amended to read as follows:

268.0955 1. In an incorporated city in which a license to engage in a

business is required, the city council or other governing body of the city

shall not issue such a license unless the applicant for the license signs an

affidavit affirming that the business:

(a) Has received coverage by the state industrial insurance system or a

private carrier as required pursuant to chapters 616A to 616D, inclusive,

(b) Maintains a valid certificate of self-insurance pursuant to chapters

616A to 616D, inclusive, of NRS; (c) Is a member of an association of self-insured public or private

employers; or

(d) Is not subject to the provisions of chapters 616A to 616D, inclusive,

2. In an incorporated city in which such a license is not required, the

city council or other governing body of the city shall require a business,

when applying for a post office box, to submit to the governing body the

affidavit required by subsection 1.

3. Each city council or other governing body of an incorporated city

shall submit to the administrator of the division of industrial relations of the

department of business and industry monthly a list of the names of those

businesses which have submitted an affidavit required by subsections 1 and

2.

4. Upon receiving an affidavit required by this section, the city council

or other governing body of an incorporated city shall provide the applicant

with a document setting forth the rights and responsibilities of employers

regulations adopted by the division of industrial relations of the department

of business and industry pursuant to NRS 618.376.

Sec. 56. NRS 268.406 is hereby amended to read as follows:

268.406 1. The governing board of any incorporated city may

establish, by contract or otherwise, and administer a disability pension plan

or disability insurance program for the benefit of any city police officer or

fireman who is disabled, to any degree, by an injury arising out of and in

the course of his employment.

2. The governing board may adopt ordinances, rules, regulations,

policies and procedures necessary to establish and administer the plan or

program specified in subsection 1.

3. If an incorporated city elects to consider implementation of a plan or

an existing plan or program, the persons affected by the proposed plan or

program, or proposed change, may negotiate with the city concerning the

nature and extent of such plan, program or change. Chapter 288 of NRS

supplemental or in addition to and not in conflict with the coverage,

compensation, benefits or procedure established by or adopted pursuant to

5. The benefits provided for in this section are supplemental to other

benefits an employee is entitled to receive on account of the same

disability. In no event shall the benefits provided for in this section, when

added to benefits provided for or purchased by the expenditure of public

entitled to receive if he has been a member of the department or agency for

10 years or more.

Sec. 57. NRS 280.305 is hereby amended to read as follows:

280.305 1. The committee may establish, by contract or otherwise,

and administer a disability pension plan or disability insurance program for

the benefit of any police officer of the department who is disabled, to any

degree, by an injury arising out of and in the course of his employment. The

cost of the plan or program may be charged, in whole or in part, against the

annual operating budget for the department.

2. The committee may adopt rules, policies and procedures necessary

to establish and administer the plan or program specified in subsection 1.

3. If the committee elects to consider implementation of a plan or

an existing plan or program, the persons affected by the proposed plan or

program, or proposed change, may negotiate with:

(a) The committee or two or more persons designated by it; and

(b) The sheriff or a person designated by him,

concerning the nature and extent of the plan, program or change. Chapter

288 of NRS applies to negotiations for this purpose.

4. The plan or program authorized by this section must be

supplemental or in addition to and not in conflict with the coverage,

compensation, benefits or procedure established by or adopted pursuant to

5. The benefits provided for in this section are supplemental to other

benefits an employee is entitled to receive on account of the same

disability. In no event may the benefits provided for in this section, when

added to benefits provided for or purchased by the expenditure of public

money, exceed the maximum amount of benefits an employee is entitled to

receive if he has been a member of the department or agency for 10 years

or more.

Sec. 58. NRS 333.020 is hereby amended to read as follows:

333.020 As used in this chapter, unless the context otherwise requires:

1. "Chief" means the chief of the purchasing division.

2. "Director" means the director of the department of administration.

3. "Proprietary information" means:

(a) Any trade secret or confidential business information that is

contained in a bid submitted on a particular contract; or

(b) Any other trade secret or confidential business information

submitted by a bidder and designated as proprietary by the chief.

As used in this subsection, "confidential business information" means any

information relating to the amount or source of any income, profits, losses

or expenditures of a person, including data relating to cost or price

submitted in support of a bid or proposal. The term does not include the

amount of a bid or proposal.

4. "Purchasing division" means the purchasing division of the

department of administration.

5. "Purchasing officer" means a person who is authorized by the chief

or a using agency to participate in: (a) The evaluation of bids or proposals for a contract;

(b) Any negotiations concerning a contract; or

(c) The development, review or approval of a contract.

6. "Request for a proposal" means a statement which sets forth the

requirements and specifications of a contract to be awarded by competitive

selection.

7. "Trade secret" has the meaning ascribed to it in NRS 600A.030.

8. "Using agencies" means all officers, departments, institutions,

boards, commissions and other agencies in the executive department of the

state government which derive their support from public money in whole or

in part, whether the money is provided by the State of Nevada, received

from the Federal Government or any branch, bureau or agency thereof, or

derived from private or other sources, except the Nevada rural housing

authority, local governments as defined in NRS 354.474, conservation

districts, irrigation districts, the state industrial insurance system and the

University and Community College System of Nevada.

9. "Volunteer fire department" means a volunteer fire department

which pays premiums for industrial insurance pursuant to the provisions of

Sec. 59. NRS 396.251 is hereby amended to read as follows:

396.251 1. The board of regents may establish policies and

procedures for personnel which govern student employees, physicians

engaged in a program for residency training and postdoctoral fellows of the

system and which are separate from the policies and procedures established

for the unclassified personnel of the system. Any such policy or procedure

does not diminish the eligibility of those persons for coverage as employees

of NRS.

2. In establishing policies and procedures pursuant to subsection 1, the

board of regents is not bound by any of the other provisions of this chapter

or the provisions of Title 23 of NRS. Those provisions do not apply to a

student employee, a physician engaged in a program for residency training

or a postdoctoral fellow of the system unless otherwise provided by the

board of regents.

Sec. 60. NRS 412.142 is hereby amended to read as follows:

412.142 1. Except as otherwise provided in subsection 2:

(a) In all cases in which any member of the militia of the state is

wounded, injured, disabled or killed while in the line of duty in the service

of the state, the member or the dependents of the member are entitled to

receive compensation from the State of Nevada, in accordance with the

that wound, injury or disability is aggravated or recurs while the member is

in the line of duty in the service of the state, the member or his dependents

are also entitled to receive such compensation.

(b) In all cases, the disabled or deceased member shall be deemed to be

an employee of the State of Nevada. The compensation to be awarded tothe member or to the dependents of the member must be determined upon

the basis of his average income from all sources during the year

immediately preceding the date of his injury or death or the commencement

of his disability, but the compensation must not exceed the maximum

2. The provisions of this section do not apply to a member of the

militia of the state or any dependents of the member who is receiving or is

entitled to receive compensation or benefits for an injury, wound, illness,

disability or death described in this section pursuant to any law or

regulation of the Federal Government, if:

(a) The federal compensation or benefits arise from military duties

performed pursuant to Title 10 or Title 32 of the United States Code; and

(b) The wound, injury, illness or disability is not an aggravation or

recurrence of a wound, injury, illness or disability that arose from previous

duties performed pursuant to Title 10 or Title 32 of the United States Code.

Sec. 61. NRS 414.110 is hereby amended to read as follows:

414.110 1. All functions under this chapter and all other activities

relating to emergency management are hereby declared to be governmental

functions. Neither the state nor any political subdivision thereof nor other

agencies of the state or political subdivision thereof, nor except in cases of

willful misconduct, gross negligence, or bad faith, any worker complying

with or reasonably attempting to comply with this chapter, or any order or

regulation promulgated pursuant to the provisions of this chapter, or

pursuant to any ordinance relating to black out or other precautionary

measures enacted by any political subdivision of the state, is liable for the

death of or injury to persons, or for damage to property, as a result of any

such activity. The provisions of this section do not affect the right of any

person to receive benefits to which he would otherwise be entitled under

this chapter, or under the provisions of chapters 616A to 616D, inclusive,

2. Any requirement for a license to practice any professional,

mechanical or other skill does not apply to any authorized worker who, in

the course of performing his duties as such, practices that professional,

mechanical or other skill during an emergency.

3. As used in this section, the term "worker" includes any full-time or

part-time paid, volunteer or auxiliary employee of this state, of any political

subdivision thereof, of other states, territories, possessions or the District of

Columbia, of the Federal Government, of any neighboring country, or of

any political subdivision thereof, or of any agency or organization,

performing services for emergency management at any place in this state

subject to the order or control of, or pursuant to a request of, the state

government or any political subdivision thereof.

Sec. 62. NRS 475.230 is hereby amended to read as follows:

475.230 1. Any fire department which engages in fighting a fire on

property owned by the state within the jurisdictional limits of the fire

department may submit a claim to the secretary of the state board of

examiners to recover any direct expenses and losses incurred as a result of

fighting that fire.

2. The claim must include:

(a) The name, address and jurisdictional limits of the fire department;

(b) The name, address and telephone number of the person making the

claim on behalf of the fire department;

(c) The name and address, if known, of the state agency having

jurisdiction over the property on which the fire occurred;

(d) The exact location of the fire;

(e) A description of the property burned;

(f) The number and classification of the personnel and the number and

type of equipment used to fight the fire;

(g) A copy of the fire report; and

(h) An itemized list of direct expenses and losses incurred while fighting

the fire including the purchase cost, estimated cost of repairs and a

statement of depreciated value immediately preceding and after the damage

to or destruction of any equipment and the extent of any insurance

coverage.

3. As used in this section, "direct expenses and losses" means certain

expenses and losses which were incurred while fighting a fire on property

owned by the state. The term is limited to:

(a) The depreciated value, if any, of any equipment or vehicle which

was damaged or destroyed; and

(b) If the employer maintains a plan which supplements coverage for

workers' compensation provided pursuant to chapters 616A to 616D,

any injury or death benefits which would have been paid by the employer

from public money.

Sec. 63. NRS 624.256 is hereby amended to read as follows:

624.256 1. Before granting an original or renewal of a contractor's

license to any applicant, the board shall require that the applicant submit to

the board:

(a) Proof of industrial insurance and insurance for occupational diseases

which covers his employees;

(b) A copy of his certificate of qualification as a self-insured employer

which was issued by the commissioner of insurance;

(c) If the applicant is a member of an association of self-insured public

or private employers, a copy of the certificate issued to the association by

the commissioner of insurance; or (d) An affidavit signed by the applicant affirming that he is not subject

NRS because:

(1) He has no employees;

(2) He is not or does not intend to be a subcontractor for a principal

contractor; and

(3) He has not or does not intend to submit a bid on a job for a

principal contractor or subcontractor.

2. The board shall notify the fraud control unit for industrial insurance

established pursuant to NRS 228.420 whenever the board learns that an

applicant or holder of a contractor's license has engaged in business as or

acted in the capacity of a contractor within this state without having

obtained industrial insurance or insurance for occupational diseases in

violation of the provisions of chapters 616A to 617, inclusive, of NRS.

Sec. 64. NRS 624.322 is hereby amended to read as follows:

624.322 1. If, through no fault or act of a prime contractor or anyone

employed by him, the owner fails to pay that contractor:

(a) Pursuant to their schedule for payments under the contract, or within

a reasonable time after maturity and presentation of charges if no schedule

is established;

(b) Any sum certified by the architect, engineer or other supervisory

agent of the owner; or

(c) Such sum as is otherwise properly due,

or if the owner through his own act or neglect, excluding acts of God,

floods, fires or strikes, causes the work to be stopped for a period of 5

working days or more, the contractor may, after 5 working days' written

notice to the owner, stop work or terminate the contract and recover from

the owner payment for all work executed.

2. If, through no fault of a subcontractor or anyone employed by him,

the contractor fails to pay that subcontractor:

(a) Pursuant to the schedule for payments under the subcontract, or

within a reasonable time after maturity and presentation of charges if no

schedule is established;

(b) Any sum certified by the architect, engineer or other supervisory

agent of the owner or contractor; or

(c) Such sum as is otherwise properly due,

or if the contractor through his own acts or neglect, excluding acts of God,

floods, fires or strikes, causes the work to be stopped for a period of 5

working days or more, the subcontractor may, after 5 working days' written

notice to the owner and the contractor, stop work or terminate the

subcontract and recover from the contractor payment for all work executed.

The subcontractor may not be held liable for nonperformance of that

subcontract and for the cost incurred by the contractor to complete the

work.

3. The provisions of subsection 2 do not apply if the contractor's

failure to pay is caused by his need to withhold money pursuant to an

official notice from a state agency that he is liable to make payments or

contributions for the subcontractor pursuant to chapter 608 or 612 or

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