Assembly Bill No. 309–Committee on Commerce and Labor

 

(On Behalf of Department of Business and
Industry—Division of Industrial Relations)

 

March 8, 2001

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Repeals provisions that require commissioner of insurance to assign actuary to review establishment of certain rates of assessment. (BDR 53‑555)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: No.

 

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

 

AN ACT relating to industrial insurance; repealing the provisions that require the commissioner of insurance to assign an actuary to review the establishment of certain rates of assessment; 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.425 is hereby amended to read as follows:

1-2    616A.425  1.  There is hereby established in the state treasury the fund

1-3  for workers’ compensation and safety as a special revenue fund. All money

1-4  received from assessments levied on insurers and employers by the

1-5  administrator pursuant to NRS 232.680 must be deposited in this fund.

1-6    2.  All assessments, penalties, bonds, securities and all other properties

1-7  received, collected or acquired by the division for functions supported in

1-8  whole or in part from the fund must be delivered to the custody of the state

1-9  treasurer for deposit to the credit of the fund.

1-10    3.  All money and securities in the fund must be used to defray all costs

1-11  and expenses of administering the program of workmen’s compensation,

1-12  including the payment of:

1-13    (a) All salaries and other expenses in administering the division , [of

1-14  industrial relations,] including the costs of the office and staff of the

1-15  administrator.

1-16    (b) All salaries and other expenses of administering NRS 616A.435 to

1-17  616A.460, inclusive, the offices of the hearings division of the department

1-18  of administration and the programs of self-insurance and review of

1-19  premium rates by the commissioner.

2-1    (c) The salary and other expenses of a full-time employee of the

2-2  legislative counsel bureau whose principal duties are limited to conducting

2-3  research and reviewing and evaluating data related to industrial insurance.

2-4    (d) All salaries and other expenses of the fraud control unit for

2-5  industrial insurance established pursuant to NRS 228.420.

2-6    (e) Claims against uninsured employers arising from compliance with

2-7  NRS 616C.220 and 617.401.

2-8    (f) All salaries and expenses of the members of the legislative

2-9  committee on workers’ compensation and any other expenses incurred by

2-10  the committee in carrying out its duties pursuant to NRS 218.5375 to

2-11  218.5378, inclusive.

2-12    (g) That portion of the salaries and other expenses of the office for

2-13  consumer health assistance established pursuant to NRS 223.550 that is

2-14  related to providing assistance to consumers and injured employees

2-15  concerning workers’ compensation.

2-16    4.  The state treasurer may disburse money from the fund only upon

2-17  written order of the controller.

2-18    5.  The state treasurer shall invest money of the fund in the same

2-19  manner and in the same securities in which he is authorized to invest state

2-20  general funds which are in his custody. Income realized from the

2-21  investment of the assets of the fund must be credited to the fund.

2-22    [6.  The commissioner shall assign an actuary to review the

2-23  establishment of assessment rates. The rates must be filed with the

2-24  commissioner 30 days before their effective date. Any insurer or employer

2-25  who wishes to appeal the rate so filed must do so pursuant to NRS

2-26  679B.310.]

2-27    Sec. 2.  NRS 616A.430 is hereby amended to read as follows:

2-28    616A.430  1.  There is hereby established as a special revenue fund in

2-29  the state treasury the uninsured employers’ claim fund, which may be used

2-30  only [for the purpose of making] to make payments in accordance with the

2-31  provisions of NRS 616C.220 and 617.401. The administrator shall

2-32  administer the fund and shall credit any excess money toward the

2-33  assessments of the insurers for the succeeding years.

2-34    2.  All assessments, penalties, bonds, securities and all other properties

2-35  received, collected or acquired by the administrator for the uninsured

2-36  employers’ claim fund must be delivered to the custody of the state

2-37  treasurer.

2-38    3.  All money and securities in the fund must be held by the state

2-39  treasurer as custodian thereof to be used solely for workers’ compensation.

2-40    4.  The state treasurer may disburse money from the fund only upon

2-41  written order of the state controller.

2-42    5.  The state treasurer shall invest money of the fund in the same

2-43  manner and in the same securities in which he is authorized to invest

2-44  money of the state general fund. Income realized from the investment of

2-45  the assets of the fund must be credited to the fund.

2-46    6.  The administrator shall adopt regulations for the establishment and

2-47  administration of assessment rates, payments and penalties, based upon

2-48  expected annual expenditures for claims. Assessment rates must reflect the

3-1  relative hazard of the employments covered by the insurers, and must be

3-2  based upon expected annual expenditures for claims.

3-3    [7.  The commissioner shall assign an actuary to review the

3-4  establishment of assessment rates. The rates must be filed with the

3-5  commissioner 30 days before their effective date. Any insurer who wishes

3-6  to appeal the rate so filed must do so pursuant to NRS 679B.310.]

3-7    Sec. 3.  NRS 616B.554 is hereby amended to read as follows:

3-8    616B.554  1.  There is hereby established as a special revenue fund in

3-9  the state treasury the subsequent injury fund for self-insured employers,

3-10  which may be used only to make payments in accordance with the

3-11  provisions of NRS 616B.557 and 616B.560. The board shall administer the

3-12  fund based upon recommendations made by the administrator pursuant to

3-13  subsection [8.] 7.

3-14    2.  All assessments, penalties, bonds, securities and all other properties

3-15  received, collected or acquired by the board for the subsequent injury fund

3-16  for self-insured employers must be delivered to the custody of the state

3-17  treasurer.

3-18    3.  All money and securities in the fund must be held by the state

3-19  treasurer as custodian thereof to be used solely for workers’ compensation

3-20  for employees of self-insured employers.

3-21    4.  The state treasurer may disburse money from the fund only upon

3-22  written order of the board.

3-23    5.  The state treasurer shall invest money of the fund in the same

3-24  manner and in the same securities in which he is authorized to invest state

3-25  general funds which are in his custody. Income realized from the

3-26  investment of the assets of the fund must be credited to the fund.

3-27    6.  The board shall adopt regulations for the establishment and

3-28  administration of assessment rates, payments and penalties. Assessment

3-29  rates must reflect the relative hazard of the employments covered by self-

3-30  insured employers, and must be based upon expected annual expenditures

3-31  for claims for payments from the subsequent injury fund for self-insured

3-32  employers.

3-33    7.  The [commissioner shall assign an actuary to review the

3-34  establishment of assessment rates. The rates must be filed with the

3-35  commissioner 30 days before their effective date. Any self-insured

3-36  employer who wishes to appeal the rate so filed must do so pursuant to

3-37  NRS 679B.310.

3-38    8.  The] administrator shall:

3-39    (a) Evaluate any claim submitted to the board for payment or

3-40  reimbursement from the subsequent injury fund for self-insured employers

3-41  and recommend to the board any appropriate action to be taken concerning

3-42  the claim; and

3-43    (b) Submit to the board any other recommendations relating to the fund.

3-44    Sec. 4.  NRS 616B.575 is hereby amended to read as follows:

3-45    616B.575  1.  There is hereby established as a special revenue fund in

3-46  the state treasury the subsequent injury fund for associations of self-insured

3-47  public or private employers, which may be used only to make payments in

3-48  accordance with the provisions of NRS 616B.578 and 616B.581. The

4-1  board shall administer the fund based upon recommendations made by the

4-2  administrator pursuant to subsection [8.] 7.

4-3    2.  All assessments, penalties, bonds, securities and all other properties

4-4  received, collected or acquired by the board for the subsequent injury fund

4-5  for associations of self-insured public or private employers must be

4-6  delivered to the custody of the state treasurer.

4-7    3.  All money and securities in the fund must be held by the state

4-8  treasurer as custodian thereof to be used solely for workers’ compensation

4-9  for employees of members of associations of self-insured public or private

4-10  employers.

4-11    4.  The state treasurer may disburse money from the fund only upon

4-12  written order of the board.

4-13    5.  The state treasurer shall invest money of the fund in the same

4-14  manner and in the same securities in which he is authorized to invest state

4-15  general funds which are in his custody. Income realized from the

4-16  investment of the assets of the fund must be credited to the fund.

4-17    6.  The board shall adopt regulations for the establishment and

4-18  administration of assessment rates, payments and penalties. Assessment

4-19  rates must reflect the relative hazard of the employments covered by

4-20  associations of self-insured public or private employers, and must be based

4-21  upon expected annual expenditures for claims for payments from the

4-22  subsequent injury fund for associations of self-insured public or private

4-23  employers.

4-24    7.  The [commissioner shall assign an actuary to review the

4-25  establishment of assessment rates. The rates must be filed with the

4-26  commissioner 30 days before their effective date. Any association of self-

4-27  insured public or private employers that wishes to appeal the rate so filed

4-28  must do so pursuant to NRS 679B.310.

4-29    8.  The] administrator shall:

4-30    (a) Evaluate any claim submitted to the board for payment or

4-31  reimbursement from the subsequent injury fund for associations of self-

4-32  insured public or private employers and recommend to the board any

4-33  appropriate action to be taken concerning the claim; and

4-34    (b) Submit to the board any other recommendations relating to the fund.

4-35    Sec. 5.  NRS 616B.584 is hereby amended to read as follows:

4-36    616B.584  1.  There is hereby established as a special revenue fund in

4-37  the state treasury the subsequent injury fund for private carriers, which may

4-38  be used only to make payments in accordance with the provisions of NRS

4-39  616B.587 and 616B.590. The administrator shall administer the fund.

4-40    2.  All assessments, penalties, bonds, securities and all other properties

4-41  received, collected or acquired by the administrator for the subsequent

4-42  injury fund for private carriers must be delivered to the custody of the state

4-43  treasurer.

4-44    3.  All money and securities in the fund must be held by the state

4-45  treasurer as custodian thereof to be used solely for workers’ compensation

4-46  for employees whose employers are insured by private carriers.

4-47    4.  The state treasurer may disburse money from the fund only upon

4-48  written order of the state controller.

5-1    5.  The state treasurer shall invest money of the fund in the same

5-2  manner and in the same securities in which he is authorized to invest state

5-3  general funds which are in his custody. Income realized from the

5-4  investment of the assets of the fund must be credited to the fund.

5-5    6.  The administrator shall adopt regulations for the establishment and

5-6  administration of assessment rates, payments and penalties. Assessment

5-7  rates must reflect the relative hazard of the employments covered by

5-8  private carriers and must be based upon expected annual expenditures for

5-9  claims for payments from the subsequent injury fund for private carriers.

5-10    [7.  The commissioner shall assign an actuary to review the

5-11  establishment of assessment rates. The rates must be filed with the

5-12  commissioner 30 days before their effective date. Any private carrier who

5-13  wishes to appeal the rate so filed must do so pursuant to NRS 679B.310.]

5-14    Sec. 6.  This act becomes effective on July 1, 2001.

 

5-15  H