(REPRINTED WITH ADOPTED AMENDMENTS)

 

Assembly Bill No. 160–Committee on Commerce and Labor

 

February 15, 2001

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Revises provisions governing industrial insurance. (BDR 53‑1097)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: No.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

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:

 

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

1-2    616A.230  “Employer” means:

1-3    1.  [The] Except as otherwise provided in subsection 4 of NRS

1-4  616B.627, the state, and each county, city, school district, and all public

1-5  and quasi-public corporations therein without regard to the number of

1-6  persons employed.

1-7    2.  Every person, firm, voluntary association [,] and private

1-8  corporation, including any public service corporation, which has in service

1-9  any person under a contract of hire.

1-10    3.  The legal representative of any deceased employer.

1-11    4.  The Nevada rural housing authority.

1-12    5.  An owner or principal contractor who establishes and administers a

1-13  consolidated insurance program pursuant to NRS 616B.710, with respect to

1-14  the employees covered under that consolidated insurance program.

1-15    Sec. 2. NRS 616B.618 is hereby amended to read as follows:

1-16    616B.618  [Where] Except as otherwise provided in subsection 4 of

1-17  NRS 616B.627, when the state or a county, city, school district,

2-1  metropolitan police department, or other political subdivision, or a

2-2  contractor under such a governmental entity is the employer, the provisions

2-3  of chapters 616A to 616D, inclusive, of NRS for the payment of

2-4  compensation and the amount thereof for any injury sustained by an

2-5  employee are conclusive, compulsory and obligatory upon both employer

2-6  and employee without regard to the number of persons in the service of any

2-7  such employer.

2-8    Sec. 3. NRS 616B.624 is hereby amended to read as follows:

2-9    616B.624  1.  If a quasi-public or private corporation or a limited-

2-10  liability company is required to be insured pursuant to chapters 616A to

2-11  616D, inclusive, of NRS, an officer of the corporation or a manager of the

2-12  company who:

2-13    (a) Receives pay for services performed as an officer, manager or

2-14  employee of the corporation or company shall be deemed for the purposes

2-15  of those chapters to receive a minimum pay of $6,000 per year the policy

2-16  of industrial insurance for the employer is effective and a maximum pay of

2-17  $36,000 per year the policy of industrial insurance is effective.

2-18    (b) Does not receive pay for services performed as an officer, manager

2-19  or employee of the corporation or company shall be deemed for the

2-20  purposes of those chapters to receive a minimum pay of $500 per month or

2-21  $6,000 per year the policy of industrial insurance is effective.

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

2-23  performed as an officer, manager or employee of the corporation or

2-24  company may elect to reject coverage for himself by filing written notice

2-25  thereof with the corporation or company and the insurer. The rejection is

2-26  effective upon receipt of the notice by the insurer.

2-27    3.  An officer or manager of such a corporation or company who:

2-28    (a) Owns the corporation or company;

2-29    (b) Operates the corporation or company exclusively from his primary

2-30  residence; and

2-31    (c) Receives pay for the services performed,

2-32  may elect to reject coverage for himself by filing written notice thereof

2-33  with the insurer. The rejection is effective upon receipt of the notice by

2-34  the insurer.

2-35    4.  An officer or manager who has rejected coverage may rescind that

2-36  rejection by filing written notice thereof with the corporation or company

2-37  and the insurer. The rescission is effective upon receipt of the notice by the

2-38  insurer. [If] Except as otherwise provided in subsection 3, if an officer or

2-39  manager who has rejected coverage receives pay for services performed as

2-40  an officer, manager or employee of the corporation or company, the officer

2-41  or manager shall be deemed to have rescinded that rejection.

2-42    [4.] 5.  A nonprofit corporation whose officers do not receive pay for

2-43  services performed as officers or employees of the corporation may elect to

2-44  reject coverage for its current officers and all future officers who do not

2-45  receive such pay by filing written notice thereof with the corporation and

2-46  the insurer. The rejection is effective upon receipt of the notice by the

2-47  insurer.

2-48    [5.] 6.  A nonprofit corporation which has rejected coverage for its

2-49  officers who do not receive pay for services performed as officers or

3-1  employees of the corporation may rescind that rejection by filing written

3-2  notice thereof with the corporation and the insurer. The rescission is

3-3  effective upon receipt of the notice by the insurer. If an officer of a

3-4  nonprofit corporation which has rejected coverage receives pay for services

3-5  performed as an officer or employee of the corporation, the corporation

3-6  shall be deemed to have rescinded that rejection.

3-7    Sec. 4. NRS 616B.627 is hereby amended to read as follows:

3-8    616B.627  [Before]

3-9    1.  Except as otherwise provided in this section, before any person,

3-10  firm or corporation commences work under any contract with the state or

3-11  any political subdivision thereof, or a metropolitan police department, the

3-12  contractor shall furnish to the state agency, political subdivision or

3-13  metropolitan police department having charge of the letting of the contract

3-14  a certificate of the insurer certifying that the contractor has complied with

3-15  the provisions of chapters 616A to 616D, inclusive, of NRS. A state

3-16  agency, political subdivision or metropolitan police department [shall not]

3-17  may furnish coverage for industrial insurance for a contractor [except as

3-18  otherwise agreed] as specified in the contract.

3-19    2.  In lieu of furnishing a certificate of an insurer pursuant to the

3-20  provisions of subsection 1, a sole proprietor who does not use the services

3-21  of his employees, if any, in the performance of a contract with the state

3-22  or any political subdivision thereof, or a metropolitan police department,

3-23  may submit to a state agency, political subdivision or metropolitan police

3-24  department specified in subsection 1 an affidavit indicating that the sole

3-25  proprietor:

3-26    (a) In accordance with the provisions of NRS 616B.659, has not

3-27  elected to be included within the terms, conditions and provisions of

3-28  chapters 616A to 616D, inclusive, of NRS; and

3-29    (b) Is otherwise in compliance with those terms, conditions and

3-30  provisions.

3-31    3.  If a sole proprietor submits an affidavit specified in subsection 2 to

3-32  a state agency, political subdivision or metropolitan police department

3-33  specified in subsection 1, the state agency, political subdivision or

3-34  metropolitan police department shall not require the sole proprietor to

3-35  obtain industrial insurance for himself during any period in which he

3-36  performs work under the contract for which he submitted the affidavit.

3-37    4.  A state agency, political subdivision or metropolitan police

3-38  department that lets a contract to a sole proprietor in accordance with

3-39  this section:

3-40    (a) Must not, for any purpose, be considered to be the employer of the

3-41  sole proprietor or his employees, if any; and

3-42    (b) Is not liable as a principal contractor to the sole proprietor or his

3-43  employees, if any, for any compensation or other damages as a result of

3-44  an industrial injury or occupational disease incurred in the performance

3-45  of the contract.

3-46    Sec. 5. NRS 617.110 is hereby amended to read as follows:

3-47    617.110  “Employer” means:

3-48    1.  [The] Except as otherwise provided in subsection 4 of NRS

3-49  617.210, the state and each county, city, school district, and all public and

4-1  quasi-public corporations therein, without regard to the number of persons

4-2  employed.

4-3    2.  Every person, firm, voluntary association [,] and private

4-4  corporation, including any public service corporation, which has in service

4-5  any employee under a contract of hire.

4-6    3.  The legal representative of any deceased employer.

4-7    4.  The Nevada rural housing authority.

4-8    Sec. 6. NRS 617.207 is hereby amended to read as follows:

4-9    617.207  1.  If a quasi-public or private corporation or limited-liability

4-10  company is required to be insured pursuant to this chapter, an officer of the

4-11  corporation or a manager of the company who:

4-12    (a) Receives pay for service performed shall be deemed for the purposes

4-13  of this chapter to receive a minimum pay of $6,000 per year the policy of

4-14  industrial insurance for the employer is effective and a maximum pay of

4-15  $36,000 per year the policy of industrial insurance if effective.

4-16    (b) Does not receive pay for services performed shall be deemed for the

4-17  purposes of this chapter to receive a minimum pay of $500 per month or

4-18  $6,000 per year the policy of industrial insurance is effective.

4-19    2.  An officer or manager who does not receive pay for services

4-20  performed may elect to reject coverage for himself by filing written notice

4-21  thereof with the corporation or company and the insurer. The rejection is

4-22  effective upon receipt of the notice by the insurer.

4-23    3.  An officer or manager of such a corporation or company who:

4-24    (a) Owns the corporation or company;

4-25    (b) Operates the corporation or company exclusively from his primary

4-26  residence; and

4-27    (c) Receives pay for the services performed,

4-28  may elect to reject coverage for himself by filing written notice thereof

4-29  with the insurer. The rejection is effective upon receipt of the notice by

4-30  the insurer.

4-31    4.  An officer or manager who has rejected coverage may rescind that

4-32  rejection by filing written notice thereof with the corporation or company

4-33  and the insurer. The rescission is effective upon receipt of the notice by the

4-34  insurer.

4-35    Sec. 7. NRS 617.210 is hereby amended to read as follows:

4-36    617.210  [Before]

4-37    1.  Except as otherwise provided in this section, before any person,

4-38  firm or corporation commences work under any contract with the state or

4-39  any political subdivision thereof, or a metropolitan police department, the

4-40  contractor shall furnish to the state agency, political subdivision or

4-41  metropolitan police department having charge of the letting of the contract

4-42  a certificate of the insurer certifying that the contractor has complied with

4-43  the provisions of this chapter. A state agency, political subdivision [shall

4-44  not] or metropolitan police department may furnish coverage under this

4-45  chapter for a contractor [except as otherwise agreed] as specified in the

4-46  contract.

4-47    2.  In lieu of furnishing a certificate of an insurer pursuant to the

4-48  provisions of subsection 1, a sole proprietor who does not use the services

4-49  of his employees, if any, in the performance of a contract with the state

5-1  or any political subdivision thereof, or a metropolitan police department,

5-2  may submit to a state agency, political subdivision or metropolitan police

5-3  department an affidavit indicating that the sole proprietor:

5-4    (a) In accordance with the provisions of NRS 617.225, has not elected

5-5  to be included within the terms, conditions and provisions of this

5-6  chapter; and

5-7    (b) Is otherwise in compliance with those terms, conditions and

5-8  provisions.

5-9    3.  If a sole proprietor submits an affidavit specified in subsection 2 to

5-10  a state agency, political subdivision or metropolitan police department

5-11  specified in subsection 1, the state agency, political subdivision or

5-12  metropolitan police department shall not require the sole proprietor to

5-13  obtain coverage for himself under this chapter during any period in

5-14  which he performs work under the contract for which he submitted the

5-15  affidavit.

5-16    4.  A state agency, political subdivision or metropolitan police

5-17  department that lets a contract to a sole proprietor pursuant to subsection

5-18  1:

5-19    (a) Shall be deemed not to be the employer of the sole proprietor or his

5-20  employees, if any; and

5-21    (b) Is not liable as a principal contractor to the sole proprietor or his

5-22  employees, if any, for any compensation or other damages as a result of

5-23  an industrial injury or occupational disease incurred in the performance

5-24  of the contract.

5-25    Sec. 8.  This act becomes effective on July 1, 2001.

 

5-26  H