2001 REGULAR SESSION (71st) A SB28 175
Adoption of this amendment will MAINTAIN a 2/3s majority vote requirement for final passage of SB28 (§§ 8, 16, 38).
ASSEMBLY ACTION Initial and Date |SENATE ACTION Initial and Date
Adopted Lost | Adopted Lost
Concurred In Not |Concurred In Not
Receded Not | Receded Not
Amend the bill as a whole by deleting section 1 and adding a new section designated section 1, following the enacting clause, to read as follows:
“Section 1. Title 57 of NRS is hereby amended by adding thereto a new chapter to consist of the provisions set forth as sections 2 to 44, inclusive, of this act.”.
Amend sec. 2, page 1, line 3, by deleting:
“sections 2 to 42, inclusive, of this act,” and inserting “this chapter,”.
Amend sec. 3, page 1, line 8, by deleting “five” and inserting “two”.
Amend sec. 3, page 1, line 10, by deleting:
“sections 2 to 42, inclusive, of this act.” and inserting “this chapter.”.
Amend the bill as a whole by adding a new section designated sec. 4.5, following sec. 4, to read as follows:
“Sec. 4.5. 1. “Employer” means, with respect to a calendar year, an employer who employed on business days during the preceding calendar year an average of at least 2 employees, but not more than 50 employees, who have a normal work week of 30 hours or more, and who employs at least 2 employees on the first day of the year. For the purposes of determining the number of eligible employees, organizations which are affiliated or which are eligible to file a combined tax return for the purposes of taxation constitute one employer.
2. For the purposes of this section, organizations are “affiliated” if one directly, or indirectly, through one or more intermediaries, controls or is controlled by, or is under common control with, the other, as determined pursuant to the provisions of NRS 692C.050.”.
Amend sec. 5, page 2, by deleting lines 2 and 3 and inserting:
“of self-insured private employers reduced by all the liabilities of the association, but does not include:”.
Amend sec. 6, page 2, line 24, by deleting:
“is hired by” and inserting “contracts with”.
Amend the bill as a whole by adding a new section designated sec. 6.5, following sec. 6, to read as follows:
“Sec. 6.5. An association of self-insured private employers may provide health coverage for the employees of an employer that is a member of the association only if:
1. A portion of the premium or benefits are paid by or on behalf of the employer;
2. An eligible employee or his dependent is reimbursed for a portion of the premium, whether by wage adjustments or otherwise, by or on behalf of the employer; or
3. The health coverage is considered by the employer or any of his eligible employees or dependents as part of a plan or program for the purposes of section 106, 125 or 162 of the Internal Revenue Code, 26 U.S.C. § 106, 125 or 162.”.
Amend sec. 8, page 2, line 42, by deleting “five” and inserting “two”.
Amend sec. 8, page 2, line 47, by deleting “and”.
Amend sec. 8, page 2, line 49, by deleting “commissioner.” and inserting:
“commissioner; and
(c) The association of self-insured private employers insures at least 51 employees of members of the association.”.
Amend sec. 8, page 3, lines 26 and 27, by deleting:
“sections 2 to 42, inclusive, of this act.” and inserting “this chapter.”.
Amend sec. 8, page 3, lines 31 and 32, by deleting:
“sections 2 to 42, inclusive, of this act.” and inserting “this chapter.”.
Amend sec. 9, page 4, line 8, by deleting:
“sections 2 to 42, inclusive, of this act.” and inserting “this chapter.”.
Amend sec. 9, page 4, line 34, by deleting “their employees.” and inserting:
“employees of members of the association.”.
Amend sec. 9, page 4, line 47, by deleting:
“of all members in the association”.
Amend sec. 10, page 5, lines 31 and 32, by deleting:
“sections 2 to 42, inclusive, of this act” and inserting “this chapter”.
Amend sec. 11, page 6, by deleting lines 20 and 21 and inserting:
“must include coverage for all incurred claims, including claims that have been incurred but not reported to the association, as well as those that have been incurred and reported but not yet paid, and the expenses associated with those”.
Amend sec. 12, page 6, lines 26 and 27, by deleting:
“sections 2 to 42, inclusive, of this act.” and inserting “this chapter.”.
Amend sec. 12, page 6, line 30, by deleting:
“sections 2 to 42, inclusive, of this act,” and inserting “this chapter,”.
Amend sec. 12, page 6, lines 35 and 36, by deleting:
“sections 2 to 42, inclusive, of this act.” and inserting “this chapter.”.
Amend sec. 13, page 7, line 2, by deleting:
“sections 2 to 42, inclusive, of this act.” and inserting “this chapter.”.
Amend sec. 14, page 7, by deleting lines 42 through 46 and inserting:
“association presents evidence satisfactory to the commissioner that the association’s policy of excess insurance is sufficient.”.
Amend sec. 16, page 8, by deleting line 20 and inserting:
“Sec. 16. A person”.
Amend sec. 16, pages 8 and 9, by deleting lines 25 through 48 on page 8 and lines 1 through 19 on page 9, and inserting:
“unless licensed as an agent pursuant to chapter 683A of NRS.”.
Amend the bill as a whole by deleting sections 17 through 19 and inserting:
“Secs. 17-19. (Deleted by amendment.)”.
Amend sec. 20, page 11, lines 14 and 15, by deleting:
“sections 2 to 42, inclusive, of this act” and inserting “this chapter”.
Amend sec. 20, page 11, lines 17 and 18, by deleting:
“sections 2 to 42, inclusive, of this act” and inserting “this chapter”.
Amend sec. 22, page 11, lines 27 and 28, by deleting:
“sections 2 to 42, inclusive, of this act.” and inserting “this chapter.”.
Amend sec. 23, page 11, line 35, by deleting:
“sections 2 to 42, inclusive, of this act.” and inserting “this chapter.”.
Amend sec. 31, page 13, lines 30 and 31, by deleting:
“sections 2 to 42, inclusive, of this act” and inserting “this chapter”.
Amend sec. 32, page 14, by deleting lines 8 and 9 and inserting:
“found to be in violation of any provision of this chapter or any regulation adopted pursuant to this chapter.”.
Amend sec. 33, page 14, by deleting lines 17 through 19 and inserting:
“for each violation of any provision of this chapter or any regulation adopted pursuant to this chapter. Except as otherwise provided in this chapter, the amount of the fine may not”.
Amend sec. 33, page 14, line 27, by deleting “five” and inserting “two”.
Amend sec. 33, page 14, lines 29 and 30, by deleting:
“sections 2 to 42, inclusive, of this act;” and inserting “this chapter;”.
Amend sec. 33, page 14, by deleting lines 32 and 33 and inserting:
“this chapter or any regulation adopted pursuant to this chapter;”.
Amend sec. 33, page 14, by deleting lines 35 and 36 and inserting:
“within the time prescribed by the provisions of this chapter or in the order of the commissioner;”.
Amend sec. 33, page 14, by deleting line 40 and inserting:
“capacity; or
(i) The association markets or operates in another state without being licensed or certified in that state to do so.”.
Amend sec. 37, page 15, lines 47 and 48, by deleting:
“sections 2 to 42, inclusive, of this act,” and inserting “this chapter,”.
Amend sec. 37, page 16, by deleting lines 3 through 13.
Amend sec. 37, page 16, line 14, by deleting “3.” and inserting “2.”.
Amend sec. 39, page 16, lines 38 and 39, by deleting:
“sections 2 to 42, inclusive, of this act.” and inserting “this chapter.”.
Amend sec. 41, pages 16 and 17, by deleting line 48 on page 16 and line 1 on page 17, and inserting:
“an association of self-insured private employers pursuant to this chapter without first obtaining a certificate issued by the”.
Amend sec. 41, page 17, by deleting line 4 and inserting:
“this chapter shall:”.
Amend sec. 42, page 17, by deleting line 22 and inserting:
“purposes of this chapter; or”.
Amend the bill as a whole by deleting sec. 43, renumbering sections 44 and 45 as sections 51 and 52 and adding new sections designated sections 43 through 50, following sec. 42, to read as follows:
“Sec. 43. 1. The commissioner may adopt regulations to define when an association of self-insured private employers is considered to be in a hazardous financial condition and to set forth the standards to be considered by the commissioner in determining whether the continued operation of an association of self-insured private employers transacting business in this state may be considered to be hazardous to its members or creditors or to the general public.
2. If the commissioner determines after a hearing that any association of self-insured private employers is in a hazardous financial condition, he may, instead of suspending or revoking the certificate of the association of self-insured private employers, limit the association’s certificate as he deems reasonably necessary to correct, eliminate or remedy any conduct, condition or ground that is deemed to be a cause of the hazardous financial condition.
3. An order or decision of the commissioner under this section is subject to review in accordance with NRS 679B.310 to 679B.370, inclusive, at the request of any party to the proceedings whose interests are substantially affected.
Sec. 44. 1. An association of self-insured private employers is subject to the provisions of this chapter and, to the extent reasonably applicable:
(a) Chapter 679B of NRS.
(b) Chapter 686A of NRS.
(c) The provisions of NRS 689B.0285, 689B.061 to 689B.069, inclusive, and 689B.245 to 689B.330, inclusive.
(d) The provisions of NRS 689C.107, 689C.109, 689C.111, 689C.156, 689C.1565, 689C.158 to 689C.207, inclusive, 689C.265, 689C.310, 689C.320 and 689C.355.
(e) Chapter 696B of NRS.
2. For the purposes of this section, unless the context otherwise requires, any reference in a section of NRS included in paragraphs (a) to (e), inclusive, of subsection 1 to:
(a) “Health benefit plan,” “policy of group health insurance” or “policy of group insurance” must be replaced by “health coverage provided by an association of self-insured private employers”;
(b) “Insurer” or “carrier” must be replaced by “association of self-insured private employers”;
(c) “Producer” must be replaced by “agent licensed pursuant to chapter 683A of NRS”; and
(d) “Small employer” must be replaced by “employer.”
Sec. 45. NRS 232.550 is hereby amended to read as follows:
232.550 As used in NRS 232.550 to 232.700, inclusive, unless the context otherwise requires:
1. “Administrator” means the administrator of the division.
2. “Director” means the director of the department of business and industry.
3. “Division” means the division of industrial relations of the department of business and industry.
4. “Insurer” includes:
(a) A self-insured employer;
(b) An association of self-insured public employers[;] as defined in NRS 616A.055;
(c) An association of self-insured private employers[;] as defined in NRS 616A.050; and
(d) A private carrier.
Sec. 46. NRS 244.33505 is hereby amended to read as follows:
244.33505 1. In a county in which a license to engage in a business is required, the board of county commissioners shall not issue such a license unless the applicant for the license signs an affidavit affirming that the business:
(a) Has received coverage by a private carrier as required pursuant to chapters 616A to 616D, inclusive, and chapter 617 of NRS;
(b) Maintains a valid certificate of self-insurance pursuant to chapters 616A to 616D, inclusive, of NRS;
(c) Is a member of an association of self-insured public or private employers; or
(d) Is not subject to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS.
2. In a county in which such a license is not required, the board of county commissioners shall require a business, when applying for a post office box, to submit to the board the affidavit required by subsection 1.
3. Each board of county commissioners shall submit to the administrator of the division of industrial relations of the department of business and industry monthly a list of the names of those businesses which have submitted an affidavit required by subsections 1 and 2.
4. Upon receiving an affidavit required by this section, a board of county commissioners shall provide the owner of the business with a document setting forth the rights and responsibilities of employers and employees to promote safety in the workplace, in accordance with regulations adopted by the division of industrial relations of the department of business and industry pursuant to NRS 618.376.
5. As used in this section:
(a) “Association of self-insured private employers” has the meaning ascribed to it in NRS 616A.050.
(b) “Association of self-insured public employers” has the meaning ascribed to it in NRS 616A.055.
Sec. 47. NRS 268.0955 is hereby amended to read as follows:
268.0955 1. In an incorporated city in which a license to engage in a business is required, the city council or other governing body of the city shall not issue such a license unless the applicant for the license signs an affidavit affirming that the business:
(a) Has received coverage by a private carrier as required pursuant to chapters 616A to 616D, inclusive, and chapter 617 of NRS;
(b) Maintains a valid certificate of self-insurance pursuant to chapters 616A to 616D, inclusive, of NRS;
(c) Is a member of an association of self-insured public or private employers; or
(d) Is not subject to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS.
2. In an incorporated city in which such a license is not required, the city council or other governing body of the city shall require a business, when applying for a post office box, to submit to the governing body the affidavit required by subsection 1.
3. Each city council or other governing body of an incorporated city shall submit to the administrator of the division of industrial relations of the department of business and industry monthly a list of the names of those businesses which have submitted an affidavit required by subsections 1 and 2.
4. Upon receiving an affidavit required by this section, the city council or other governing body of an incorporated city shall provide the applicant with a document setting forth the rights and responsibilities of employers and employees to promote safety in the workplace in accordance with regulations adopted by the division of industrial relations of the department of business and industry pursuant to NRS 618.376.
5. As used in this section:
(a) “Association of self-insured private employers” has the meaning ascribed to it in NRS 616A.050.
(b) “Association of self-insured public employers” has the meaning ascribed to it in NRS 616A.055.
Sec. 48. NRS 281.153 is hereby amended to read as follows:
281.153 1. The employer of a police officer or fireman may establish a program that allows a police officer or fireman whom it employs who has suffered a catastrophe resulting in temporary total disability to elect to continue to receive his normal salary for a period of not more than 1 year in lieu of receiving the compensation for the industrial injury or occupational disease for which he is eligible pursuant to chapters 616A to 616D, inclusive, or 617 of NRS, unless the police officer or fireman has made an election pursuant to NRS 281.390.
2. A program established pursuant to subsection 1:
(a) Must prescribe the conditions pursuant to which a police officer or fireman is eligible to receive his normal salary in accordance with an election pursuant to subsection 1; and
(b) May allow a police officer or fireman to return to light-duty employment or employment modified according to his physical restrictions or limitations and receive his normal salary during the period of his election pursuant to subsection 1.
3. Unless the employer is self-insured or a member of an association of self-insured public or private employers, the employer shall notify the insurer that provides industrial insurance for that employer of the election by a police officer or fireman pursuant to subsection 1. When the police officer or fireman is no longer eligible to receive his normal salary pursuant to such an election, the employer shall notify the insurer so that the insurer may begin paying to the police officer or fireman the benefits, if any, for industrial insurance for which the police officer or fireman is eligible. If the employer is self-insured or a member of such an association of self-insured public or private employers and the police officer or fireman is no longer eligible to receive his normal salary in accordance with an election pursuant to subsection 1, the employer shall begin paying the benefits, if any, for industrial insurance to which the police officer or fireman is entitled.
4. During the period in which the police officer or fireman elects to receive his normal salary pursuant to subsection 1, he accrues sick leave, annual leave and retirement benefits at the same rate at which he accrued such leave and benefits immediately before the election.
5. As used in this section:
(a) “Association of self-insured private employers” has the meaning ascribed to it in NRS 616A.050.
(b) “Association of self-insured public employers” has the meaning ascribed to it in NRS 616A.055.
(c) “Catastrophe” means an illness or accident arising out of or in the course of employment which is life threatening or which will require a period of convalescence that an attending physician expects to exceed 30 days and because of which the employee is unable to perform the duties of his position.
[(b)] (d) “Police officer” has the meaning ascribed to it in NRS 617.135.
Sec. 49. NRS 624.256 is hereby amended to read as follows:
624.256 1. Before granting an original or renewal of a contractor’s license to any applicant, the board shall require that the applicant submit to the board:
(a) Proof of industrial insurance and insurance for occupational diseases which covers his employees;
(b) A copy of his certificate of qualification as a self-insured employer which was issued by the commissioner of insurance;
(c) If the applicant is a member of an association of self-insured public or private employers, a copy of the certificate issued to the association by the commissioner of insurance; or
(d) An affidavit signed by the applicant affirming that he is not subject to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS because:
(1) He has no employees;
(2) He is not or does not intend to be a subcontractor for a principal contractor; and
(3) He has not or does not intend to submit a bid on a job for a principal contractor or subcontractor.
2. The board shall notify the fraud control unit for industrial insurance established pursuant to NRS 228.420 whenever the board learns that an applicant or holder of a contractor’s license has engaged in business as or acted in the capacity of a contractor within this state without having obtained industrial insurance or insurance for occupational diseases in violation of the provisions of chapters 616A to 617, inclusive, of NRS.
3. As used in this section:
(a) “Association of self-insured private employers” has the meaning ascribed to it in NRS 616A.050.
(b) “Association of self-insured public employers” has the meaning ascribed to it in NRS 616A.055.
Sec. 50. 1. The commissioner of insurance of the department of business and industry shall award certificates to not more than three associations of self-insured private employers on or before January 1, 2003. Not more than two such associations may be formed in Clark County and not more than one in northern Nevada. The commissioner shall award the certificates in the order in which associations satisfy all the requirements for certification.
2. On or before February 1, 2003, the commissioner shall submit to the director of the legislative counsel bureau for transmittal to the 72nd session of the Nevada legislature a report on the effectiveness and safety of associations of self-insured private employers in providing health coverage to employees of certain small employers.
3. The commissioner shall not suspend or revoke the certificate of an association of self-insured private employers awarded a certificate pursuant to sections 2 to 44, inclusive, of this act so long as the association complies with all the provisions of sections 2 to 44, inclusive, of this act and any regulations adopted by the commissioner pursuant thereto.”.
Amend the title of the bill to read as follows:
“AN ACT relating to health insurance; providing for the formation of associations of self-insured private employers to provide health coverage; imposing certain requirements upon such an association and its board of trustees; prohibiting certain acts without an agent’s license issued by the commissioner of insurance; authorizing the commissioner of insurance to impose an administrative fine for certain violations; imposing certain requirements upon a third-party administrator for such an association; providing a penalty; and providing other matters properly relating thereto.”.