(REPRINTED WITH ADOPTED AMENDMENTS)

 

Assembly Bill No. 48–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—Makes various changes concerning policies of industrial insurance. (BDR 53‑768)

 

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 industrial insurance; providing a definition of “policy year” for the purpose of industrial insurance; specifying the circumstances under which a policy of industrial insurance may exclude coverage for certain employees covered by a consolidated insurance program; allowing certain employers to report information concerning tips received by their employees by a computerized program or process; authorizing a private carrier to require a sole proprietor seeking coverage to submit to a physical examination; eliminating the requirement that unpaid premiums bear interest at the rate of 1 percent monthly; 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. Chapter 616A of NRS is hereby amended by adding

1-2  thereto a new section to read as follows:

1-3    “Policy year” means the 12-month period during which a policy of

1-4  industrial insurance is effective.

1-5    Sec. 2.  NRS 616A.025 is hereby amended to read as follows:

1-6    616A.025  As used in chapters 616A to 616D, inclusive, of NRS,

1-7  unless the context otherwise requires, the words and terms defined in NRS

1-8  616A.030 to 616A.360, inclusive, and section 1 of this act have the

1-9  meanings ascribed to them in those sections.

1-10    Sec. 3.  NRS 616B.031 is hereby amended to read as follows:

1-11    616B.031  [An]

1-12    1.  Except as otherwise provided in subsection 2, an insurer shall not

1-13  issue a policy of industrial insurance to an employer that does not cover

2-1  each employee of that employer who satisfies the definition of employee

2-2  set forth in NRS 616A.105 to 616A.225, inclusive.

2-3    2.  If the employer is a contractor or subcontractor who is engaged in

2-4  the construction of a project that is covered by a consolidated insurance

2-5  program established pursuant to NRS 616B.710 to 616B.737, inclusive,

2-6  an insurer may issue a policy of industrial insurance to that employer

2-7  which does not cover an employee who:

2-8    (a) Is assigned to participate in the construction of the project that is

2-9  covered by the consolidated insurance program; and

2-10    (b) Works exclusively at the site of the construction project that is

2-11  covered by the consolidated insurance program.

2-12    Sec. 4.  NRS 616B.222 is hereby amended to read as follows:

2-13    616B.222  To determine the total amount paid to employees for

2-14  services performed, the maximum amount paid to any one employee

2-15  during [the year in which] a policy [of industrial insurance is effective]

2-16  year shall be deemed to be $36,000.

2-17    Sec. 5.  NRS 616B.227 is hereby amended to read as follows:

2-18    616B.227  1.  [An] Except as otherwise provided in subsection 2, an

2-19  employer shall:

2-20    (a) Make a copy of each report that an employee files with the employer

2-21  pursuant to 26 U.S.C. § 6053(a) to report the amount of his tips to the

2-22  United States Internal Revenue Service; and

2-23    (b) Submit the copy to his private carrier upon request and retain

2-24  another copy for his records or, if the employer is self-insured or a member

2-25  of an association of self-insured public or private employers, retain the

2-26  copy for his records . [; and

2-27    (c) If he]

2-28    2.  An employer that maintains his records concerning payroll by a

2-29  computerized program or process that can produce a report on all

2-30  employees which indicates:

2-31    (a) The amount of tips reported by each employee pursuant to 26

2-32  U.S.C. § 6053(a); or

2-33    (b) The amount of tips allocated to each employee pursuant to a

2-34  formula applied by the employer, whether by agreement of the employees

2-35  or by imposition of the employer,

2-36  may satisfy the requirements of subsection 1 by submitting a copy of the

2-37  report to his private carrier and maintaining another copy of the report

2-38  for his records.

2-39    3.  An employer that is not self-insured or a member of an association

2-40  of self-insured public or private employers[,] shall pay the private carrier

2-41  the premiums for the reported tips at the same rate as he pays on regular

2-42  wages.

2-43    [2.  The division shall adopt regulations specifying the form of the

2-44  declaration required pursuant to subsection 1.

2-45    3.] 4.  The private carrier, self-insured employer or association of self-

2-46  insured public or private employers shall calculate compensation for an

2-47  employee on the basis of wages paid by the employer plus the amount of

2-48  tips reported by the employee pursuant to 26 U.S.C. § [6053.] 6053(a).

3-1  Reports made after the date of injury may not be used for the calculation of

3-2  compensation.

3-3    [4.] 5.  An employer shall notify his employees of the requirement to

3-4  report income from tips to calculate his federal income tax and to include

3-5  the income in the computation of benefits pursuant to chapters 616A to

3-6  616D, inclusive, and chapter 617 of NRS.

3-7    [5.] 6.  The administrator shall adopt such regulations as are necessary

3-8  to carry out the provisions of this section.

3-9    Sec. 6.  NRS 616B.624 is hereby amended to read as follows:

3-10    616B.624  1.  If a quasi-public or private corporation or a limited-

3-11  liability company is required to be insured pursuant to chapters 616A to

3-12  616D, inclusive, of NRS, an officer of the corporation or a manager of the

3-13  company who:

3-14    (a) Receives pay for services performed as an officer, manager or

3-15  employee of the corporation or company shall be deemed for the purposes

3-16  of those chapters to receive a minimum pay of $6,000 per policy year [the

3-17  policy of industrial insurance for the employer is effective] and a

3-18  maximum pay of $36,000 per policy year . [the policy of industrial

3-19  insurance is effective.]

3-20    (b) Does not receive pay for services performed as an officer, manager

3-21  or employee of the corporation or company shall be deemed for the

3-22  purposes of those chapters to receive a minimum pay of $500 per month or

3-23  $6,000 per policy year . [the policy of industrial insurance is effective.]

3-24    2.  An officer or manager who does not receive pay for services

3-25  performed as an officer, manager or employee of the corporation or

3-26  company may elect to reject coverage by filing written notice thereof with

3-27  the corporation or company and the insurer. The rejection is effective upon

3-28  receipt of the notice by the insurer.

3-29    3.  An officer or manager who has rejected coverage may rescind that

3-30  rejection by filing written notice thereof with the corporation or company

3-31  and the insurer. The rescission is effective upon receipt of the notice by the

3-32  insurer. If an officer or manager who has rejected coverage receives pay

3-33  for services performed as an officer, manager or employee of the

3-34  corporation or company, the officer or manager shall be deemed to have

3-35  rescinded that rejection.

3-36    4.  A nonprofit corporation whose officers do not receive pay for

3-37  services performed as officers or employees of the corporation may elect to

3-38  reject coverage for its current officers and all future officers who do not

3-39  receive such pay by filing written notice thereof with the corporation and

3-40  the insurer. The rejection is effective upon receipt of the notice by the

3-41  insurer.

3-42    5.  A nonprofit corporation which has rejected coverage for its officers

3-43  who do not receive pay for services performed as officers or employees of

3-44  the corporation may rescind that rejection by filing written notice thereof

3-45  with the corporation and the insurer. The rescission is effective upon

3-46  receipt of the notice by the insurer. If an officer of a nonprofit corporation

3-47  which has rejected coverage receives pay for services performed as an

3-48  officer or employee of the corporation, the corporation shall be deemed to

3-49  have rescinded that rejection.

4-1    Sec. 7.  NRS 616B.659 is hereby amended to read as follows:

4-2    616B.659  1.  A sole proprietor may elect to be included within the

4-3  terms, conditions and provisions of chapters 616A to 616D, inclusive, of

4-4  NRS to secure for himself compensation equivalent to that to which an

4-5  employee is entitled for any accidental injury sustained by the sole

4-6  proprietor which arises out of and in the course of his self-employment by

4-7  filing a written notice of election with the administrator and a private

4-8  carrier.

4-9    2.  A private carrier may require a sole proprietor who elects to accept

4-10  the terms, conditions and provisions of chapters 616A to 616D, inclusive,

4-11  of NRS [shall] to submit to a physical examination before his coverage

4-12  commences. [The] If a private carrier requires such a physical

4-13  examination, the private carrier shall prescribe the scope of the

4-14  examination and shall consider it for rating purposes. The cost of the

4-15  physical examination must be paid by the sole proprietor.

4-16    3.  A sole proprietor who elects to submit to the provisions of chapters

4-17  616A to 616D, inclusive, of NRS shall pay to the private carrier premiums

4-18  in such manner and amounts as may be prescribed by the regulations of the

4-19  commissioner.

4-20    4.  If a sole proprietor fails to pay all premiums required by the

4-21  regulations of the commissioner, the failure operates as a rejection of

4-22  chapters 616A to 616D, inclusive, of NRS.

4-23    5.  A sole proprietor who elects to be included pursuant to the

4-24  provisions of chapters 616A to 616D, inclusive, of NRS remains subject to

4-25  all terms, conditions and provisions of those chapters and all regulations of

4-26  the commissioner until he files written notice with the administrator and

4-27  the private carrier that he withdraws his election.

4-28    6.  For the purposes of chapters 616A to 616D, inclusive, of NRS, a

4-29  sole proprietor shall be deemed to be receiving a wage of $300 per month

4-30  unless, at least 90 days before any injury for which he requests coverage,

4-31  he files written notice with the administrator and the private carrier that he

4-32  elects to pay an additional amount of premiums for additional coverage. If

4-33  the private carrier receives the additional premiums it requires for such

4-34  additional coverage, the sole proprietor shall be deemed to be receiving a

4-35  wage of $1,800 per month.

4-36    Sec. 8.  NRS 616B.730 is hereby amended to read as follows:

4-37    616B.730  1.  A consolidated insurance program must not provide

4-38  industrial insurance coverage, a comprehensive program of safety or for

4-39  the administration of claims for industrial insurance for an employee of a

4-40  contractor or subcontractor who is engaged in the construction of the

4-41  project that is covered by the consolidated insurance program at any time

4-42  that such an employee does not work at the site of the construction project.

4-43    2.  A contractor or subcontractor who is engaged in the construction of

4-44  a project that is covered by a consolidated insurance program shall

4-45  maintain separate industrial insurance coverage for its employees who:

4-46    (a) Are not assigned to participate in the construction of the project; or

4-47    (b) Are assigned to participate in the construction of the project but who

4-48  do not work exclusively at the site of the project.

5-1    3.  The owner or principal contractor of a construction project shall

5-2  reimburse a contractor or subcontractor who bids successfully on the

5-3  construction project for the cost of providing separate industrial insurance

5-4  coverage for an employee if:

5-5    (a) The contractor or subcontractor set the amount of his bid in a

5-6  reasonable, good faith belief that the employee would work exclusively at

5-7  the site of the construction project and would therefore be fully covered by

5-8  the consolidated insurance program; and

5-9    (b) Because of changed circumstances not reasonably foreseeable at the

5-10  time the bid was submitted, the employee worked in whole or in part at a

5-11  location other than the site of the construction project, requiring the

5-12  contractor or subcontractor to obtain separate industrial insurance coverage

5-13  for that employee.

5-14    Sec. 9.  NRS 617.207 is hereby amended to read as follows:

5-15    617.207  1.  If a quasi-public or private corporation or limited-liability

5-16  company is required to be insured pursuant to this chapter, an officer of the

5-17  corporation or a manager of the company who:

5-18    (a) Receives pay for service performed shall be deemed for the purposes

5-19  of this chapter to receive a minimum pay of $6,000 per policy year [the

5-20  policy of industrial insurance for the employer is effective] and a

5-21  maximum pay of $36,000 per policy year . [the policy of industrial

5-22  insurance if effective.]

5-23    (b) Does not receive pay for services performed shall be deemed for the

5-24  purposes of this chapter to receive a minimum pay of $500 per month or

5-25  $6,000 per policy year . [the policy of industrial insurance is effective.]

5-26    2.  An officer or manager who does not receive pay for services

5-27  performed may elect to reject coverage by filing written notice thereof with

5-28  the corporation or company and the insurer. The rejection is effective upon

5-29  receipt of the notice by the insurer.

5-30    3.  An officer or manager who has rejected coverage may rescind that

5-31  rejection by filing written notice thereof with the corporation or company

5-32  and the insurer. The rescission is effective upon receipt of the notice by the

5-33  insurer.

5-34    Sec. 10.  NRS 617.225 is hereby amended to read as follows:

5-35    617.225  1.  A sole proprietor may elect to be included within the

5-36  terms, conditions and provisions of this chapter to secure for himself

5-37  compensation equivalent to that to which an employee is entitled for any

5-38  occupational disease contracted by the sole proprietor which arises out of

5-39  and in the course of his self-employment by filing a written notice of

5-40  election with the administrator and a private carrier.

5-41    2.  A private carrier may require a sole proprietor who elects to accept

5-42  the terms, conditions and provisions of this chapter [shall] to submit to a

5-43  physical examination by a physician selected by the private carrier before

5-44  the commencement of coverage and on a yearly basis thereafter.[The]If a

5-45  private carrierrequires such a physical examination, the private carrier

5-46  shall prescribe the scope of the examination and shall consider it for rating

5-47  purposes. The cost of the physical examination must be paid by the sole

5-48  proprietor.

6-1    3.  A sole proprietor who elects to submit to the provisions of this

6-2  chapter shall pay to the private carrier premiums in such manner and

6-3  amounts as may be prescribed by the regulations of the commissioner.

6-4    4.  If a sole proprietor fails to pay all premiums required by the

6-5  regulations of the commissioner, the failure operates as a rejection of this

6-6  chapter.

6-7    5.  A sole proprietor who elects to be included under the provisions of

6-8  this chapter remains subject to all terms, conditions and provisions of this

6-9  chapter and all regulations of the commissioner until he files a written

6-10  notice with the private carrier and the administrator that he withdraws his

6-11  election.

6-12    6.  For purposes of this chapter, a sole proprietor shall be deemed to be

6-13  an employee receiving a wage of $300 per month.

6-14    Sec. 11.  NRS 616B.236 is hereby repealed.

6-15    Sec. 12.  This act becomes effective on July 1, 2001.

 

6-16  TEXT OF REPEALED SECTION

 

6-17    616B.236  Accrual of interest on unpaid premiums. Except as

6-18   otherwise provided in NRS 616D.200, when any premium of an employer

6-19   remains unpaid on the date on which it becomes due, as prescribed by

6-20   NRS 616B.224, it bears interest at the rate of 1 percent for each month or

6-21   portion of a month thereafter until payment of the premium, plus accrued

6-22   interest, is received by the insurer.

 

6-23  H~