Assembly Bill No. 160–Committee on Commerce and Labor

 

CHAPTER..........

 

AN ACT relating to insurance; providing that certain owners of corporations and companies may elect to reject coverage for themselves for industrial insurance and occupational diseases under certain circumstances; clarifying that a sole proprietor is not required to obtain industrial insurance or coverage for occupational diseases before performing work under a contract with the state or a political subdivision of the state or a metropolitan police department under certain circumstances; clarifying that the state or a political subdivision of the state or a metropolitan police department is not an employer of and is not liable to a sole proprietor or his employees under certain circumstances; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

   Section 1. NRS 616A.230 is hereby amended to read as follows:

   616A.230  “Employer” means:

   1.  [The] Except as otherwise provided in subsection 4 of NRS

 616B.627, the state, and each county, city, school district, and all public

 and quasi-public corporations therein without regard to the number of

 persons employed.

   2.  Every person, firm, voluntary association [,] and private

 corporation, including any public service corporation, which has in service

 any person under a contract of hire.

   3.  The legal representative of any deceased employer.

   4.  The Nevada rural housing authority.

   5.  An owner or principal contractor who establishes and administers a

 consolidated insurance program pursuant to NRS 616B.710, with respect

 to the employees covered under that consolidated insurance program.

   Sec. 2. NRS 616B.618 is hereby amended to read as follows:

   616B.618  [Where] Except as otherwise provided in subsection 4 of

 NRS 616B.627, when the state or a county, city, school district,

 metropolitan police department, or other political subdivision, or a

 contractor under such a governmental entity is the employer, the

 provisions of chapters 616A to 616D, inclusive, of NRS for the payment

 of compensation and the amount thereof for any injury sustained by an

 employee are conclusive, compulsory and obligatory upon both employer

 and employee without regard to the number of persons in the service of

 any such employer.

   Sec. 3. NRS 616B.624 is hereby amended to read as follows:

   616B.624  1.  If a quasi-public or private corporation or a limited

-liability company is required to be insured pursuant to chapters 616A to

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

 company who:

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

 employee of the corporation or company shall be deemed for the purposes

 of those chapters to receive a minimum pay of $6,000 per year the policy

 of industrial insurance for the employer is effective and a maximum pay of

 $36,000 per year the policy of industrial insurance is effective.

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

 or employee of the corporation or company shall be deemed for the

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

$6,000 per year the policy of industrial insurance is effective.

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

 performed as an officer, manager or employee of the corporation or

 company may elect to reject coverage for himself by filing written notice

 thereof with the corporation or company and the insurer. The rejection is

 effective upon receipt of the notice by the insurer.

   3.  An officer or manager of such a corporation or company who:

   (a) Owns the corporation or company;

   (b) Operates the corporation or company exclusively from his primary

 residence; and

   (c) Receives pay for the services performed,

may elect to reject coverage for himself by filing written notice thereof

 with the insurer. The rejection is effective upon receipt of the notice by

 the insurer.

   4.  An officer or manager who has rejected coverage may rescind that

 rejection by filing written notice thereof with the corporation or company

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

 the insurer. [If] Except as otherwise provided in subsection 3, if an officer

 or manager who has rejected coverage receives pay for services performed

 as an officer, manager or employee of the corporation or company, the

 officer or manager shall be deemed to have rescinded that rejection.

   [4.] 5.  A nonprofit corporation whose officers do not receive pay for

 services performed as officers or employees of the corporation may elect

 to reject coverage for its current officers and all future officers who do not

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

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

 insurer.

   [5.] 6.  A nonprofit corporation which has rejected coverage for its

 officers who do not receive pay for services performed as officers or

 employees of the corporation may rescind that rejection by filing written

 notice thereof with the corporation and the insurer. The rescission is

 effective upon receipt of the notice by the insurer. If an officer of a

 nonprofit corporation which has rejected coverage receives pay for

 services performed as an officer or employee of the corporation, the

 corporation shall be deemed to have rescinded that rejection.

   Sec. 4. NRS 616B.627 is hereby amended to read as follows:

   616B.627  [Before]

   1.  Except as otherwise provided in this section, before any person,

 firm or corporation commences work under any contract with the state or

 any political subdivision thereof, or a metropolitan police department, the

 contractor shall furnish to the state agency, political subdivision or

 metropolitan police department having charge of the letting of the contract

 a certificate of the insurer certifying that the contractor has complied with

 the provisions of chapters 616A to 616D, inclusive, of NRS. A state

 agency, political subdivision or metropolitan police department [shall not]

 may furnish coverage for industrial insurance for a contractor [except as

 otherwise agreed] as specified in the contract.

   2.  In lieu of furnishing a certificate of an insurer pursuant to the

 provisions of subsection 1, a sole proprietor who does not use the

 services

of his employees, if any, in the performance of a contract with the state

or any political subdivision thereof, or a metropolitan police department,

 may submit to a state agency, political subdivision or metropolitan police

 department specified in subsection 1 an affidavit indicating that the sole

 proprietor:

   (a) In accordance with the provisions of NRS 616B.659, has not

 elected to be included within the terms, conditions and provisions of

 chapters 616A to 616D, inclusive, of NRS; and

   (b) Is otherwise in compliance with those terms, conditions and

 provisions.

   3.  If a sole proprietor submits an affidavit specified in subsection 2 to

 a state agency, political subdivision or metropolitan police department

 specified in subsection 1, the state agency, political subdivision or

 metropolitan police department shall not require the sole proprietor to

 obtain industrial insurance for himself during any period in which he

 performs work under the contract for which he submitted the affidavit.

   4.  A state agency, political subdivision or metropolitan police

 department that lets a contract to a sole proprietor in accordance with

 this section:

   (a) Must not, for any purpose, be considered to be the employer of the

 sole proprietor or his employees, if any; and

   (b) Is not liable as a principal contractor to the sole proprietor or his

 employees, if any, for any compensation or other damages as a result of

 an industrial injury or occupational disease incurred in the performance

 of the contract.

   Sec. 5. NRS 617.110 is hereby amended to read as follows:

   617.110  “Employer” means:

   1.  [The] Except as otherwise provided in subsection 4 of NRS

 617.210, the state and each county, city, school district, and all public and

 quasi-public corporations therein, without regard to the number of persons

 employed.

   2.  Every person, firm, voluntary association [,] and private

 corporation, including any public service corporation, which has in service

 any employee under a contract of hire.

   3.  The legal representative of any deceased employer.

   4.  The Nevada rural housing authority.

   Sec. 6. NRS 617.207 is hereby amended to read as follows:

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

 company is required to be insured pursuant to this chapter, an officer of

 the corporation or a manager of the company who:

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

 of this chapter to receive a minimum pay of $6,000 per year the policy of

 industrial insurance for the employer is effective and a maximum pay of

 $36,000 per year the policy of industrial insurance if effective.

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

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

 $6,000 per year the policy of industrial insurance is effective.

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

 performed may elect to reject coverage for himself by filing written notice

thereof with the corporation or company and the insurer. The rejection is

effective upon receipt of the notice by the insurer.

   3.  An officer or manager of such a corporation or company who:

   (a) Owns the corporation or company;

   (b) Operates the corporation or company exclusively from his primary

 residence; and

   (c) Receives pay for the services performed,

may elect to reject coverage for himself by filing written notice thereof

 with the insurer. The rejection is effective upon receipt of the notice by

 the insurer.

   4.  An officer or manager who has rejected coverage may rescind that

 rejection by filing written notice thereof with the corporation or company

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

 the insurer.

   Sec. 7. NRS 617.210 is hereby amended to read as follows:

   617.210  [Before]

   1.  Except as otherwise provided in this section, before any person,

 firm or corporation commences work under any contract with the state or

 any political subdivision thereof, or a metropolitan police department, the

 contractor shall furnish to the state agency, political subdivision or

 metropolitan police department having charge of the letting of the contract

 a certificate of the insurer certifying that the contractor has complied with

 the provisions of this chapter. A state agency, political subdivision [shall

 not] or metropolitan police department may furnish coverage under this

 chapter for a contractor [except as otherwise agreed] as specified in the

 contract.

   2.  In lieu of furnishing a certificate of an insurer pursuant to the

 provisions of subsection 1, a sole proprietor who does not use the

 services of his employees, if any, in the performance of a contract with

 the state or any political subdivision thereof, or a metropolitan police

 department, may submit to a state agency, political subdivision or

 metropolitan police department an affidavit indicating that the sole

 proprietor:

   (a) In accordance with the provisions of NRS 617.225, has not elected

 to be included within the terms, conditions and provisions of this

 chapter; and

   (b) Is otherwise in compliance with those terms, conditions and

 provisions.

   3.  If a sole proprietor submits an affidavit specified in subsection 2 to

 a state agency, political subdivision or metropolitan police department

 specified in subsection 1, the state agency, political subdivision or

 metropolitan police department shall not require the sole proprietor to

 obtain coverage for himself under this chapter during any period in

 which he performs work under the contract for which he submitted the

 affidavit.

   4.  A state agency, political subdivision or metropolitan police

 department that lets a contract to a sole proprietor pursuant to

 subsection 1:

   (a) Shall be deemed not to be the employer of the sole proprietor or his

 employees, if any; and

   (b) Is not liable as a principal contractor to the sole proprietor or his

employees, if any, for any compensation or other damages as a result of

 an industrial injury or occupational disease incurred in the performance

 of the contract.

   Sec. 8.  This act becomes effective on July 1, 2001.

 

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