Assembly Bill No. 43–Committee on Commerce and
Labor
Prefiled January 26, 2001
(On Behalf of Legislative Committee on
Workers’ Compensation (NRS 218.5375))
____________
Referred to Committee on Commerce and Labor
SUMMARY—Revises formula for assessments related to
program of workers’ compensation. (BDR 53‑877)
FISCAL NOTE: Effect on Local Government: No.
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EXPLANATION
– Matter in bolded italics is new; matter
between brackets [omitted material] is material to be omitted.
Green numbers along
left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).
AN ACT relating to workers’ compensation; requiring that the formula for the assessments
to support the uninsured employers’ claim fund, the subsequent injury fund for
self-insured employers, the subsequent injury fund for associations of
self-insured public or private employers, the subsequent injury fund for
private carriers and the fund for workers’ compensation and safety be based on
premiums to be received by industrial insurers; 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.430
is hereby amended to read as follows:
1-2 616A.430 1. There is hereby established as a special
revenue fund in
1-3 the state treasury the
uninsured employers’ claim fund, which may be used
1-4 only for the purpose of
making payments in accordance with the provisions
1-5 of NRS 616C.220 and 617.401.
The administrator shall administer the fund
1-6 and shall credit any excess
money toward the assessments of the insurers
1-7 for the succeeding years.
1-8 2. All assessments,
penalties, bonds, securities and all other properties
1-9 received, collected or
acquired by the administrator for the uninsured
1-10 employers’ claim fund must
be delivered to the custody of the state
1-11 treasurer.
1-12 3. All money and securities
in the fund must be held by the state
1-13 treasurer as custodian
thereof to be used solely for workers’ compensation.
1-14 4. The state treasurer may
disburse money from the fund only upon
1-15 written order of the state
controller.
2-1 5. The state treasurer
shall invest money of the fund in the same
2-2 manner and in the same
securities in which he is authorized to invest
2-3 money of the state general
fund. Income realized from the investment of
2-4 the assets of the fund must
be credited to the fund.
2-5 6. The administrator shall
adopt regulations for the establishment and
2-6 administration of assessment
rates, payments and penalties, based upon
2-7 expected annual [expenditures for claims.]
premiums to be received.
2-8 Assessment rates must
reflect the relative hazard of the employments
2-9 covered by the insurers, and
must be based upon expected annual
2-10 [expenditures for claims.] premiums to be received. For purposes of this
2-11 subsection, “expected annual premiums to be received” by a
self-insured
2-12 employer or an association of self-insured public or private
employers
2-13 shall be deemed to be 105 percent of the average expenditures for
claims
2-14 for that employer or association for the preceding 3 years or, if
data is
2-15 not available to determine a 3-year average, the lowest of three
quotes,
2-16 which the employer or association must obtain from three different
2-17 private carriers, for the purchase of industrial insurance for the
2-18 employees of that employer or the employees of all the employers
who are
2-19 members of that association.
2-20 7. The commissioner shall
assign an actuary to review the
2-21 establishment of assessment
rates. The rates must be filed with the
2-22 commissioner 30 days before
their effective date. Any insurer who wishes
2-23 to appeal the rate so filed
must do so pursuant to NRS 679B.310.
2-24 Sec. 2. NRS 616B.554 is hereby amended to read as follows:
2-25 616B.554 1. There is hereby established as a special
revenue fund in
2-26 the state treasury the
subsequent injury fund for self-insured employers,
2-27 which may be used only to
make payments in accordance with the
2-28 provisions of NRS 616B.557
and 616B.560. The board shall administer the
2-29 fund based upon
recommendations made by the administrator pursuant to
2-30 subsection 8.
2-31 2. All assessments,
penalties, bonds, securities and all other properties
2-32 received, collected or
acquired by the board for the subsequent injury fund
2-33 for self-insured employers
must be delivered to the custody of the state
2-34 treasurer.
2-35 3. All money and securities
in the fund must be held by the state
2-36 treasurer as custodian
thereof to be used solely for workers’ compensation
2-37 for employees of
self-insured employers.
2-38 4. The state treasurer may
disburse money from the fund only upon
2-39 written order of the board.
2-40 5. The state treasurer
shall invest money of the fund in the same
2-41 manner and in the same
securities in which he is authorized to invest state
2-42 general funds which are in
his custody. Income realized from the
2-43 investment of the assets of
the fund must be credited to the fund.
2-44 6. The board shall adopt
regulations for the establishment and
2-45 administration of assessment
rates, payments and penalties. Assessment
2-46 rates must reflect the
relative hazard of the employments covered by self-
2-47 insured employers, and must
be based upon expected annual [expenditures
2-48 for claims for payments from the subsequent injury fund for
self-insured
2-49 employers.] premiums to be received. For purposes of this subsection,
3-1 “expected annual premiums to be received” by a self-insured
employer
3-2 shall be deemed to be 105 percent of the average expenditures for
claims
3-3 for that employer for the preceding 3 years or, if data is not
available to
3-4 determine a 3-year average, the lowest of three quotes, which the
3-5 employer must obtain from three different private carriers, for the
3-6 purchase of industrial insurance for the employees of that employer.
3-7 7. The commissioner shall
assign an actuary to review the
3-8 establishment of assessment
rates. The rates must be filed with the
3-9 commissioner 30 days before
their effective date. Any self-insured
3-10 employer who wishes to
appeal the rate so filed must do so pursuant to
3-11 NRS 679B.310.
3-12 8. The administrator shall:
3-13 (a) Evaluate any claim submitted to the board for payment or
3-14 reimbursement from the
subsequent injury fund for self-insured employers
3-15 and recommend to the board
any appropriate action to be taken concerning
3-16 the claim; and
3-17 (b) Submit to the board any other recommendations relating to the
fund.
3-18 Sec. 3. NRS 616B.575 is hereby amended to read as follows:
3-19 616B.575 1. There is hereby established as a special
revenue fund in
3-20 the state treasury the
subsequent injury fund for associations of self-insured
3-21 public or private employers,
which may be used only to make payments in
3-22 accordance with the
provisions of NRS 616B.578 and 616B.581. The
3-23 board shall administer the
fund based upon recommendations made by the
3-24 administrator pursuant to
subsection 8.
3-25 2. All assessments,
penalties, bonds, securities and all other properties
3-26 received, collected or
acquired by the board for the subsequent injury fund
3-27 for associations of
self-insured public or private employers must be
3-28 delivered to the custody of
the state treasurer.
3-29 3. All money and securities
in the fund must be held by the state
3-30 treasurer as custodian
thereof to be used solely for workers’ compensation
3-31 for employees of members of
associations of self-insured public or private
3-32 employers.
3-33 4. The state treasurer may
disburse money from the fund only upon
3-34 written order of the board.
3-35 5. The state treasurer
shall invest money of the fund in the same
3-36 manner and in the same
securities in which he is authorized to invest state
3-37 general funds which are in
his custody. Income realized from the
3-38 investment of the assets of
the fund must be credited to the fund.
3-39 6. The board shall adopt
regulations for the establishment and
3-40 administration of assessment
rates, payments and penalties. Assessment
3-41 rates must reflect the
relative hazard of the employments covered by
3-42 associations of self-insured
public or private employers, and must be based
3-43 upon expected annual [expenditures for claims for payments from the
3-44 subsequent injury fund for associations of self-insured public or
private
3-45 employers.] premiums to be received. For purposes of this subsection,
3-46 “expected annual premiums to be received” by an association of
self-
3-47 insured public or private employers shall be deemed to be 105
percent of
3-48 the average expenditures for claims for that association for the
preceding
3-49 3 years or, if data is not available to determine a 3-year average,
the
4-1 lowest of three quotes, which the association must obtain from three
4-2 different private carriers, for the purchase of industrial
insurance for the
4-3 employees of all the employers who are members of that association.
4-4 7. The commissioner shall
assign an actuary to review the
4-5 establishment of assessment
rates. The rates must be filed with the
4-6 commissioner 30 days before
their effective date. Any association of self-
4-7 insured public or private
employers that wishes to appeal the rate so filed
4-8 must do so pursuant to NRS
679B.310.
4-9 8. The administrator shall:
4-10 (a) Evaluate any claim submitted to the board for payment or
4-11 reimbursement from the
subsequent injury fund for associations of self-
4-12 insured public or private
employers and recommend to the board any
4-13 appropriate action to be
taken concerning the claim; and
4-14 (b) Submit to the board any other recommendations relating to the
fund.
4-15 Sec. 4. NRS 616B.584 is hereby amended to read as follows:
4-16 616B.584 1. There is hereby established as a special
revenue fund in
4-17 the state treasury the
subsequent injury fund for private carriers, which may
4-18 be used only to make
payments in accordance with the provisions of NRS
4-19 616B.587 and 616B.590. The
administrator shall administer the fund.
4-20 2. All assessments,
penalties, bonds, securities and all other properties
4-21 received, collected or
acquired by the administrator for the subsequent
4-22 injury fund for private
carriers must be delivered to the custody of the state
4-23 treasurer.
4-24 3. All money and securities
in the fund must be held by the state
4-25 treasurer as custodian
thereof to be used solely for workers’ compensation
4-26 for employees whose
employers are insured by private carriers.
4-27 4. The state treasurer may
disburse money from the fund only upon
4-28 written order of the state
controller.
4-29 5. The state treasurer
shall invest money of the fund in the same
4-30 manner and in the same
securities in which he is authorized to invest state
4-31 general funds which are in
his custody. Income realized from the
4-32 investment of the assets of
the fund must be credited to the fund.
4-33 6. The administrator shall
adopt regulations for the establishment and
4-34 administration of assessment
rates, payments and penalties. Assessment
4-35 rates must reflect the
relative hazard of the employments covered by
4-36 private carriers and must be
based upon expected annual [expenditures
for
4-37 claims for payments from the subsequent injury fund for private
carriers.]
4-38 premiums to be received.
4-39 7. The commissioner shall
assign an actuary to review the
4-40 establishment of assessment
rates. The rates must be filed with the
4-41 commissioner 30 days before
their effective date. Any private carrier who
4-42 wishes to appeal the rate so
filed must do so pursuant to NRS 679B.310.
4-43 Sec. 5. NRS 616C.265 is hereby amended to read as follows:
4-44 616C.265 1. Except as otherwise provided in NRS 616C.280,
every
4-45 employer operating under
chapters 616A to 616D, inclusive, of NRS, alone
4-46 or together with other
employers, may make arrangements to provide
4-47 accident benefits as defined
in those chapters for injured employees.
5-1 2. Employers electing to
make such arrangements shall notify the
5-2 administrator of the
election and render a detailed statement of the
5-3 arrangements made, which
arrangements do not become effective until
5-4 approved by the
administrator.
5-5 3. Every employer who
maintains a hospital of any kind for his
5-6 employees, or who contracts
for the hospital care of injured employees,
5-7 shall, on or before January
30 of each year, make a written report to the
5-8 administrator for the
preceding year, which must contain a statement
5-9 showing:
5-10 (a) The total amount of hospital fees collected, showing separately
the
5-11 amount contributed by the
employees and the amount contributed by the
5-12 employers;
5-13 (b) An itemized account of the expenditures, investments or other
5-14 disposition of such fees;
and
5-15 (c) What balance, if any, remains.
5-16 4. Every employer who
provides accident benefits pursuant to this
5-17 section:
5-18 (a) Shall, in accordance with regulations adopted by the
administrator,
5-19 make a written report to the
division of his actual and expected annual
5-20 expenditures for claims and
such other information as the division deems
5-21 necessary to calculate an
estimated or final annual assessment [.] and
shall,
5-22 to the extent that the regulations refer to the responsibility of
insurers to
5-23 make such reports, be deemed to be an insurer.
5-24 (b) Shall [be deemed to be an
insurer for the purposes of]
pay the
5-25 assessments collected
pursuant to NRS 232.680 .
[and the regulations
5-26 adopted by the division pursuant to that section.]
5-27 5. The reports required by
the provisions of subsections 3 and 4 must
5-28 be verified:
5-29 (a) If the employer is a natural person, by the employer;
5-30 (b) If the employer is a partnership, by one of the partners;
5-31 (c) If the employer is a corporation, by the secretary, president,
general
5-32 manager or other executive
officer of the corporation; or
5-33 (d) If the employer has contracted with a physician or chiropractor
for
5-34 the hospital care of injured
employees, by the physician or chiropractor.
5-35 6. No employee is required
to accept the services of a physician or
5-36 chiropractor provided by his
employer, but may seek professional medical
5-37 services of his choice as
provided in NRS 616C.090. Expenses arising
5-38 from such medical services
must be paid by the employer who has elected
5-39 to provide benefits,
pursuant to the provisions of this section, for his
5-40 injured employees.
5-41 7. Every employer who fails
to notify the administrator of such
5-42 election and arrangements,
or who fails to render the financial reports
5-43 required, is liable for
accident benefits as provided by NRS 616C.255.
5-44 Sec. 6. NRS 232.680 is hereby amended to read as follows:
5-45 232.680 1. The cost of carrying out the provisions of
NRS 232.550
5-46 to 232.700, inclusive, and
of supporting the division, a full-time employee
5-47 of the legislative counsel
bureau, the fraud control unit for industrial
5-48 insurance established
pursuant to NRS 228.420 and the legislative
5-49 committee on workers’
compensation created pursuant to NRS 218.5375,
6-1 and that portion of the cost
of the office for consumer health assistance
6-2 established pursuant to NRS
223.550 that is related to providing assistance
6-3 to consumers and injured
employees concerning workers’ compensation,
6-4 must be paid from
assessments payable by each [insurer,
including each
6-5 employer] :
6-6 (a) Insurer based upon
expected annual premiums to be received; and
6-7 (b) Employer who provides accident
benefits for injured employees
6-8 pursuant to NRS 616C.265,
based upon expected annual expenditures for
6-9 claims . [for
injuries occurring on or after July 1, 1999.]
6-10 For purposes of this subsection, “expected annual premiums to be
6-11 received” by a self-insured employer or an association of
self-insured
6-12 public or private employers shall be deemed to be 105 percent of
the
6-13 average expenditures for claims for that employer or association
for the
6-14 preceding 3 years or, if data is not available to determine a
3-year
6-15 average, the lowest of three quotes, which the employer or
association
6-16 must obtain from three different private carriers, for the purchase
of
6-17 industrial insurance for the employees of that employer or the
employees
6-18 of all the employers who are members of that association.
6-19 2. The division shall adopt regulations which establish
the formulas
6-20 [of] for the assessment which must result in an equitable distribution of
6-21 costs among the insurers and
employers who provide accident benefits for
6-22 injured employees. The
formulas may [utilize] use
actual expenditures for
6-23 claims [.
6-24 2.] of self-insured employers and
associations of self-insured public or
6-25 private employers.
6-26 3. Federal grants may partially defray the costs of the division.
6-27 [3.] 4. Assessments made against insurers by the
division after the
6-28 adoption of regulations must
be used to defray all costs and expenses of
6-29 administering the program of
workers’ compensation, including the
6-30 payment of:
6-31 (a) All salaries and other expenses in administering the division,
6-32 including the costs of the
office and staff of the administrator.
6-33 (b) All salaries and other expenses of administering NRS 616A.435
to
6-34 616A.460, inclusive, the
offices of the hearings division of the department
6-35 of administration and the
programs of self-insurance and review of
6-36 premium rates by the
commissioner of insurance.
6-37 (c) The salary and other expenses of a full-time employee of the
6-38 legislative counsel bureau
whose principal duties are limited to conducting
6-39 research and reviewing and
evaluating data related to industrial insurance.
6-40 (d) All salaries and other expenses of the fraud control unit for
6-41 industrial insurance established
pursuant to NRS 228.420.
6-42 (e) Claims against uninsured employers arising from compliance with
6-43 NRS 616C.220 and 617.401.
6-44 (f) All salaries and expenses of the members of the legislative
6-45 committee on workers’
compensation and any other expenses incurred by
6-46 the committee in carrying
out its duties pursuant to NRS 218.5375 to
6-47 218.5378, inclusive.
7-1 (g) That portion of the salaries and other expenses of the office
for
7-2 consumer health assistance
established pursuant to NRS 223.550 that is
7-3 related to providing
assistance to consumers and injured employees
7-4 concerning workers’
compensation.
7-5 Sec. 7. This act becomes effective on July 1, 2001.
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