Senate Bill No. 202–Committee on Government Affairs

 

(On Behalf of Nevada State Controller)

 

February 20, 2001

____________

 

Referred to Committee on Government Affairs

 

SUMMARY—Makes various changes concerning state financial administration. (BDR 18‑170)

 

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 state financial administration; revising the requirement of financial reporting by the state controller; changing the designation of certain funds and accounts; requiring new and transferring state employees to authorize the direct deposit of their payroll checks as a condition of employment; making various changes relating to warrants of the state controller; requiring the state controller to present funds in annual financial statements in conformity with generally accepted accounting principles; 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 227.110 is hereby amended to read as follows:

1-2    227.110  1.  The state controller shall annually digest, prepare and

1-3  report to the governor[, not later than 60 days after the close of each fiscal

1-4  year or 60 days after the latest date in the succeeding fiscal year fixed by

1-5  the legislature for the closing of accounts and final disposition of

1-6  unexpended funds, to be laid before the legislature at each regular session:]

1-7  and the legislature:

1-8    (a) A complete statement of the condition of the revenue, taxable funds,

1-9  resources, income and property of the state, and the amount of the

1-10  expenditures for the preceding fiscal year.

1-11    (b) A full and detailed statement of the public debt.

1-12    (c) A tabular statement showing separately the whole amount of each

1-13  appropriation of money made by law, the amount paid under each of those

1-14  appropriations, and the balance unexpended.

1-15    (d) A tabular statement showing the amount of revenue collected from

1-16  each county for the preceding year.

2-1    2.  [In his report the] The state controller [shall] may recommend such

2-2  plans as he deems expedient for the support of the public credit, for

2-3  promoting frugality and economy, and for the better management and more

2-4  perfect understanding of the fiscal affairs of the state.

2-5    Sec. 2.  NRS 227.160 is hereby amended to read as follows:

2-6    227.160  1.  The state controller shall:

2-7    (a) Audit all claims against the state, for the payment of which an

2-8  appropriation or authorization has been made but of which the amount has

2-9  not been definitely fixed by law, which have been examined and passed

2-10  upon by the state board of examiners, or which have been presented to the

2-11  board and not examined and passed upon by it within 30 days from their

2-12  presentation.

2-13    (b) Allow of those claims mentioned in paragraph (a) as not having

2-14  been passed upon by the state board of examiners within 30 days after

2-15  presentation the whole, or such portion thereof as he deems just and legal;

2-16  and of claims examined and passed upon by the state board of examiners,

2-17  such an amount as he decrees just and legal not exceeding the amount

2-18  allowed by the board.

2-19    2.  No claim for services rendered or advances made to the state or any

2-20  officer thereof may be audited or allowed unless the services or

2-21  advancement have been specially authorized by law and an appropriation

2-22  or authorization made for its payment.

2-23    3.  For the purpose of satisfying himself of the justness and legality of

2-24  any claim, the state controller may examine witnesses under oath and

2-25  receive and consider documentary evidence in addition to that furnished

2-26  him by the state board of examiners. [Except as otherwise provided in NRS

2-27  227.215, he] The state controller shall draw warrants on the state treasurer

2-28  for such amounts as [he] the state controller allows of claims of the

2-29  character described in this section, and also for all claims of which the

2-30  amount has been definitely fixed by law and for the payment of which an

2-31  appropriation or authorization has been made.

2-32    Sec. 3.  NRS 227.200 is hereby amended to read as follows:

2-33    227.200  [Except as otherwise provided in NRS 227.215, the] The state

2-34  controller shall:

2-35    1.  Draw a warrant in favor of any person or governmental payee

2-36  certified by an agency of state government to receive money from the

2-37  treasury and deliver or mail the warrant to the state treasurer who shall sign

2-38  the warrant and:

2-39    (a) Deliver or mail the countersigned warrant, if it is for an account

2-40  payable, directly to the payee or his representative;

2-41    (b) [Deliver the warrant, if] If it is for payment of an employee[,] :

2-42      (1) Deliver the warrant to the employee or to the appropriate state

2-43  agency for distribution; or

2-44      (2) Deposit the warrant to the credit of the employee by direct

2-45  deposit at a bank or credit union in which the state has an account, if the

2-46  employee has authorized the direct deposit; or

2-47    (c) Deposit the warrant to the credit of the payee through a funds

2-48  transfer.

3-1    2.  Keep a warrant register, in which he shall enter all warrants drawn

3-2  by him. The arrangement of this book must be such as to show the bill and

3-3  warrant number, the amount, out of which fund the warrants are payable,

3-4  and a distribution of the warrants under the various appropriations.

3-5    3.  Credit the state treasurer with all warrants paid.

3-6    Sec. 4.  NRS 232.355 is hereby amended to read as follows:

3-7    232.355  1.  Except for gifts or grants specifically accounted for in

3-8  another fund, all gifts or grants of money or other property which the

3-9  divisions of the department of human resources are authorized to accept

3-10  must be accounted for in the department of human resources’ gift fund,

3-11  which is hereby created as a [trust] special revenue fund. The fund is a

3-12  continuing fund without reversion. The department may establish such

3-13  accounts in the fund as are necessary to account properly for gifts received.

3-14  All such money received by the [division] divisions must be deposited in

3-15  the state treasury for credit to the fund. The money in the fund must be paid

3-16  out on claims as other claims against the state are paid. Unless otherwise

3-17  specifically provided by statute, claims against the fund must be approved

3-18  by the director or his delegate.

3-19    2.  Gifts of property other than money may be sold or exchanged when

3-20  this is deemed by the head of the facility or agency responsible for the gift

3-21  to be in the best interest of the facility or agency. The sale price must not

3-22  be less than 90 percent of the value determined by a qualified appraiser

3-23  appointed by the head of the facility or agency. All money received from

3-24  the sale must be deposited in the state treasury to the credit of the

3-25  appropriate gift account in the department of human resources’ gift fund.

3-26  The money may be spent only for the purposes of the facility or agency

3-27  named in the title of the account. The property may not be sold or

3-28  exchanged if to do so would violate the terms of the gift.

3-29    Sec. 5.  NRS 232.960 is hereby amended to read as follows:

3-30    232.960  1.  Except for gifts or grants specifically accounted for in

3-31  another fund, all gifts or grants of money or other property which the

3-32  rehabilitation division of the department is authorized to accept must be

3-33  accounted for in the department of employment, training and

3-34  rehabilitation’s gift fund, which is hereby created as a [trust] special

3-35  revenue fund. The fund is a continuing fund without reversion. The

3-36  department may establish such accounts in the fund as are necessary to

3-37  account properly for gifts received. All such money received by the

3-38  division must be deposited in the state treasury for credit to the fund. The

3-39  money in the fund must be paid out on claims as other claims against the

3-40  state are paid. Unless otherwise specifically provided by statute, claims

3-41  against the fund must be approved by the director or his delegate.

3-42    2.  Gifts of property other than money may be sold or exchanged when

3-43  it is deemed by the director to be in the best interest of the rehabilitation

3-44  division. The sale price must not be less than 90 percent of the value

3-45  determined by a qualified appraiser appointed by the director. All money

3-46  received from the sale must be deposited in the state treasury to the credit

3-47  of the fund. The money may be spent only for the purposes of the division.

3-48  The property may not be sold or exchanged if to do so would violate the

3-49  terms of the gift.

4-1    Sec. 6.  Chapter 281 of NRS is hereby amended by adding thereto a

4-2  new section to read as follows:

4-3    1.  Except as otherwise provided in subsection 2, a person may not be

4-4  hired as an employee by this state or any agency of this state, or

4-5  appointed as an officer of this state, and a person already employed by

4-6  this state or any agency of this state may not transfer to a different

4-7  agency of this state, unless the person authorizes the direct deposit of his

4-8  payroll check pursuant to NRS 227.200.

4-9    2.  The provisions of subsection 1 do not apply to a person:

4-10    (a) Elected or appointed to fill an elective office;

4-11    (b) In temporary or part-time service pursuant to NRS 284.325;

4-12    (c) With a disability who holds a temporary limited appointment

4-13  pursuant to NRS 284.327; or

4-14    (d) If the chief officer of the hiring or appointing entity determines

4-15  that the application of subsection 1 will impose great practical difficulties

4-16  or unnecessary hardship on the person.

4-17    Sec. 7.  NRS 349.952 is hereby amended to read as follows:

4-18    349.952  1.  Except as otherwise provided in subsection 3 and NRS

4-19  349.951, all amounts received by the director from an obligor in

4-20  connection with any financing undertaken pursuant to NRS 349.935 to

4-21  349.961, inclusive, must be deposited with the state treasurer for credit to

4-22  the account for the financing of water projects which is hereby created in

4-23  the fund for [the municipal bond bank.] natural resources, which is hereby

4-24  created as a special revenue fund.

4-25    2.  Any revenue from water projects financed with state securities

4-26  which is in the account must be applied in the following order of priority:

4-27    (a) Deposited into the consolidated bond interest and redemption fund

4-28  in amounts necessary to pay the principal of, interest on and redemption

4-29  premiums due in connection with state securities issued for water projects.

4-30    (b) Deposited into any reserve account created for the payment of the

4-31  principal of, interest on and redemption premiums due in connection with

4-32  state securities issued for water projects, in amounts and at times

4-33  determined to be necessary.

4-34    (c) Paid out for expenses of operation and maintenance.

4-35    3.  Any revenue from water projects financed with revenue bonds may:

4-36    (a) Be deposited in the account for the financing of water projects and

4-37  subject to the provisions of subsection 2; or

4-38    (b) Subject to any agreement with the holders of the bonds, be invested,

4-39  deposited or held by the director in such funds or accounts as he deems

4-40  necessary or desirable. If the director is acting pursuant to this subsection,

4-41  he need not deposit the money in the state treasury and the provisions of

4-42  chapters 355 and 356 of NRS do not apply to any investments or deposits

4-43  made pursuant to this subsection.

4-44    Sec. 8.  NRS 350A.190 is hereby amended to read as follows:

4-45    350A.190  1.  All revenues from lending projects must be deposited in

4-46  the fund for the municipal bond bank in the state treasury, which is hereby

4-47  created as [a special revenue] an enterprise fund.

4-48    2.  Any revenue from lending projects which is in the fund must be

4-49  applied in the following order of priority:

5-1    (a) Deposited into the consolidated bond interest and redemption fund

5-2  created pursuant to NRS 349.090 in amounts necessary to pay the principal

5-3  of, interest on and redemption premiums due in connection with state

5-4  securities issued pursuant to this chapter.

5-5    (b) Deposited into any reserve account created for the payment of the

5-6  principal of, interest on and redemption premiums due in connection with

5-7  state securities issued pursuant to this chapter, in amounts and at times

5-8  determined to be necessary.

5-9    (c) Paid out for expenses of operation and maintenance.

5-10    (d) On July 1 of each odd-numbered year, to the extent of any

5-11  uncommitted balance in the fund, deposited in the state general fund.

5-12    Sec. 9.  Chapter 353 of NRS is hereby amended by adding thereto a

5-13  new section to read as follows:

5-14    “Generally accepted accounting principles” means generally accepted

5-15  accounting principles for government as prescribed by the Governmental

5-16  Accounting Standards Board.

5-17    Sec. 10.  NRS 353.130 is hereby amended to read as follows:

5-18    353.130  All state controller’s warrants issued in payment of claims

5-19  against the state become void if not presented for payment to the state

5-20  treasurer within 180 days after the date of issuance. All such warrants

5-21  remaining unpaid after the expiration of the 180 days[, whether

5-22  outstanding or uncalled for in the office of the state controller,] must be

5-23  canceled by the state controller, and the state treasurer must be notified

5-24  immediately of the cancellation. The state treasurer shall not pay a warrant

5-25  presented for payment more than 180 days after the date of issuance.

5-26    Sec. 11.  NRS 353.140 is hereby amended to read as follows:

5-27    353.140  1.  The state controller shall establish an account for lost and

5-28  stale warrants in each fund and credit to it the amount of each warrant

5-29  canceled[.] pursuant to NRS 353.130.

5-30    2.  If a state controller’s warrant has been lost or destroyed, the person

5-31  in whose favor the warrant was drawn may, within [1 year from] 6 years

5-32  after the date of the original warrant, [file] request another warrant in lieu

5-33  of the original warrant by:

5-34    (a) Filing with the state controller an affidavit [setting] :

5-35      (1) Providing sufficient information for the state controller to

5-36  identify the original warrant;

5-37      (2) Setting forth the reasons for the failure to present the warrant for

5-38  payment ; and

5-39      (3) Affirming that the warrant is not , to the knowledge of the affiant

5-40  , held by any other person or persons[.] ; and

5-41    (b) If he files the affidavit more than 180 days after the date of the

5-42  original warrant, renewing his claim against the state.

5-43  If the state controller is satisfied that the original warrant is lost or

5-44  destroyed, and the claim has not been paid by the state, he may issue

5-45  another warrant in lieu of the original warrant . [and]

5-46    3.  If the state controller issues another warrant in lieu of an original

5-47  warrant canceled pursuant to NRS 353.130, he shall, except as otherwise

5-48  provided by specific statute, charge the amount thereof to the account for

6-1  lost and stale warrants in the fund upon which the original warrant was

6-2  drawn.

6-3    [3.] 4. In June of each year, as to each warrant whose original date is

6-4  at least [1 year] 6 years old and whose amount credited to the account for

6-5  lost and stale warrants has not been charged out as provided in subsection

6-6  [2,] 3, the state controller shall, except as otherwise [provided in subsection

6-7  4, credit] provided by specific statute, recognize as revenue in the fund

6-8  upon which the original warrant was drawn [for] an amount equivalent to

6-9  the original warrant[,] and shall charge the account for lost and stale

6-10  warrants.

6-11    [4.  The state controller shall credit the wildlife account in the state

6-12  general fund for any such warrant drawn from that account.]

6-13    Sec. 12.  NRS 353.295 is hereby amended to read as follows:

6-14    353.295  As used in the State Accounting Procedures Law, unless the

6-15  context otherwise requires, and in all accounting procedures and reports

6-16  pursuant to this chapter, the words and terms defined in NRS 353.2961 to

6-17  353.3135, inclusive, and section 9 of this act have the meanings ascribed

6-18  to them in those sections.

6-19    Sec. 13.  NRS 353.321 is hereby amended to read as follows:

6-20    353.321  1.  The state controller shall report each fund [and account

6-21  group] in one of the following categories for purposes of annual financial

6-22  statements:

6-23    (a) State general fund;

6-24    (b) Special revenue funds;

6-25    (c) [Funds for the construction of capital projects;] Capital projects

6-26  funds;

6-27    (d) [Internal service funds;

6-28    (e) Enterprise funds;

6-29    (f) Fiduciary funds;

6-30    (g)] Debt service funds;

6-31    [(h) General long-term debt account group; or

6-32    (i) General fixed assets account group.]

6-33    (e) Permanent funds;

6-34    (f) Enterprise funds;

6-35    (g) Internal service funds;

6-36    (h) Pension trust funds;

6-37    (i) Investment trust funds;

6-38    (j) Private purpose trust funds; or

6-39    (k) Agency funds.

6-40    2.  All resources and financial transactions of the state government

6-41  must be accounted for within a fund . [or account group.] The state

6-42  controller shall assign each existing fund [and account group] which is

6-43  created by statute to the proper category [unless the category is designated

6-44  by statute.] necessary to present the annual financial statements in

6-45  conformity with generally accepted accounting principles,

6-46  notwithstanding any statutory designation to the contrary.

6-47    Sec. 14.  NRS 385.095 is hereby amended to read as follows:

6-48    385.095  Except as otherwise provided in NRS 385.091:

7-1    1.  All gifts of money which the state board is authorized to accept

7-2  must be deposited in a [permanent trust] special revenue fund in the state

7-3  treasury designated as the education gift fund.

7-4    2.  The money available in the education gift fund must be used only

7-5  for the purpose specified by the donor, within the scope of the state board’s

7-6  powers and duties, and no expenditure may be made until approved by the

7-7  legislature in an authorized expenditure act or by the interim finance

7-8  committee if the legislature is not in session.

7-9    3.  If all or part of the money accepted by the state board from a donor

7-10  is not expended before the end of any fiscal year, the remaining balance of

7-11  the amount donated must remain in the education gift fund until needed for

7-12  the purpose specified by the donor.

7-13    Sec. 15.  NRS 397.063 is hereby amended to read as follows:

7-14    397.063  1.  All contributions from students must be accounted for in

7-15  the Western Interstate Commission for Higher Education’s fund for student

7-16  loans which is hereby created as [a special revenue] an enterprise fund.

7-17    2.  The three commissioners from the State of Nevada, acting jointly,

7-18  shall administer the fund and the money in the fund must be used solely to

7-19  provide:

7-20    (a) Loans to; and

7-21    (b) Contractual arrangements for educational services and facilities
for,

7-22  residents of Nevada who are certified to attend graduate or professional

7-23  schools in accordance with the provisions of the Western Regional Higher

7-24  Education Compact.

7-25    3.  Loans from the Western Interstate Commission for Higher

7-26  Education’s fund for student loans, before July 1, 1985, and loans made to

7-27  students classified as continuing students before July 1, 1985, must be

7-28  made upon the following terms:

7-29    (a) All student loans must bear interest at 5 percent per annum from the

7-30  date when the student receives the loan.

7-31    (b) Each student receiving a loan must repay the loan with interest

7-32  following the termination of his education or completion of his internship

7-33  in accordance with the following schedule:

7-34      (1) Within 5 years for loans which total less than $10,000.

7-35      (2) Within 8 years for loans which total $10,000 or more but less than

7-36  $20,000.

7-37      (3) Within 10 years for loans which total $20,000 or more.

7-38    (c) No student loan may exceed 50 percent of the student fees for any

7-39  academic year.

7-40    Sec. 16.  NRS 407.075 is hereby amended to read as follows:

7-41    407.075  1.  The state park grant and gift fund is hereby created as a

7-42  [trust] special revenue fund for the use of the division.

7-43    2.  All grants and gifts of money which the division is authorized to

7-44  accept must be deposited with the state treasurer for credit to the state park

7-45  grant and gift fund.

7-46    3.  Expenditures from the state park grant and gift fund must be made

7-47  only for the purpose of carrying out the provisions of this chapter and other

7-48  programs or laws administered by the division.

8-1    Sec. 17.  NRS 445A.120 is hereby amended to read as follows:

8-2    445A.120  1.  The account to finance the construction of treatment

8-3  works and the implementation of pollution control projects is hereby

8-4  created in the fund for [the municipal bond bank.] water projects loans,

8-5  which is hereby created as an enterprise fund.

8-6    2.  The money in the account must be used only for the purposes set

8-7  forth in 33 U.S.C. §§ 1381 et seq.

8-8    3.  All claims against the account must be paid as other claims against

8-9  the state are paid.

8-10    4.  The faith of the state is hereby pledged that the money in the

8-11  account will not be used for purposes other than those authorized by 33

8-12  U.S.C. §§ 1381 et seq.

8-13    Sec. 18.  NRS 445A.255 is hereby amended to read as follows:

8-14    445A.255  1.  The account to finance the construction of projects, to

8-15  be known as the account for the revolving fund, is hereby created in the

8-16  fund for [the municipal bond bank.] water projects loans.

8-17    2.  The account to fund activities, other than projects, authorized by the

8-18  Safe Drinking Water Act, to be known as the account for set-aside

8-19  programs, is hereby created in the fund for the municipal bond bank.

8-20    3.  The money in the account for the revolving fund and the account for

8-21  set-aside programs may be used only for the purposes set forth in the Safe

8-22  Drinking Water Act.

8-23    4.  All claims against the account for the revolving fund and the

8-24  account for set-aside programs must be paid as other claims against the

8-25  state are paid.

8-26    5.  The faith of the state is hereby pledged that the money in the

8-27  account for the revolving fund and the account for set-aside programs will

8-28  not be used for purposes other than those authorized by the Safe Drinking

8-29  Water Act.

8-30    Sec. 19.  NRS 463.331 is hereby amended to read as follows:

8-31    463.331  1.  An investigative fund is hereby created as [a special

8-32  revenue] an enterprise fund for the purposes of paying all expenses

8-33  incurred by the board and the commission for investigation of an

8-34  application for a license, finding of suitability or approval under the

8-35  provisions of this chapter. The special revenue of the investigative fund is

8-36  the money received by the state from the respective applicants. The amount

8-37  to be paid by each applicant is the amount determined by the board in each

8-38  case, but the board may not charge any amount to an applicant for a finding

8-39  of suitability to be associated with a gaming enterprise pursuant to

8-40  paragraph (a) of subsection 2 of NRS 463.167.

8-41    2.  Expenses may be advanced from the investigative fund by the

8-42  chairman, and expenditures from the fund may be made without regard to

8-43  NRS 281.160. Any money received from the applicant in excess of the

8-44  costs and charges incurred in the investigation or the processing of the

8-45  application must be refunded pursuant to regulations adopted by the board

8-46  and the commission. At the conclusion of the investigation, the board shall

8-47  give to the applicant a written accounting of the costs and charges so

8-48  incurred.

9-1    3.  Within 3 months after the end of a fiscal year, the amount of the

9-2  balance in the fund in excess of $2,000 must be deposited in the state

9-3  general fund.

9-4    Sec. 20.  NRS 616A.425 is hereby amended to read as follows:

9-5    616A.425  1.  There is hereby established in the state treasury the fund

9-6  for workers’ compensation and safety as [a special revenue] an enterprise

9-7  fund. All money received from assessments levied on insurers and

9-8  employers by the administrator pursuant to NRS 232.680 must be

9-9  deposited in this fund.

9-10    2.  All assessments, penalties, bonds, securities and all other properties

9-11  received, collected or acquired by the division for functions supported in

9-12  whole or in part from the fund must be delivered to the custody of the state

9-13  treasurer for deposit to the credit of the fund.

9-14    3.  All money and securities in the fund must be used to defray all costs

9-15  and expenses of administering the program of workmen’s compensation,

9-16  including the payment of:

9-17    (a) All salaries and other expenses in administering the division of

9-18  industrial relations, including the costs of the office and staff of the

9-19  administrator.

9-20    (b) All salaries and other expenses of administering NRS 616A.435 to

9-21  616A.460, inclusive, the offices of the hearings division of the department

9-22  of administration and the programs of self-insurance and review of

9-23  premium rates by the commissioner.

9-24    (c) The salary and other expenses of a full-time employee of the

9-25  legislative counsel bureau whose principal duties are limited to conducting

9-26  research and reviewing and evaluating data related to industrial insurance.

9-27    (d) All salaries and other expenses of the fraud control unit for

9-28  industrial insurance established pursuant to NRS 228.420.

9-29    (e) Claims against uninsured employers arising from compliance with

9-30  NRS 616C.220 and 617.401.

9-31    (f) All salaries and expenses of the members of the legislative

9-32  committee on workers’ compensation and any other expenses incurred by

9-33  the committee in carrying out its duties pursuant to NRS 218.5375 to

9-34  218.5378, inclusive.

9-35    (g) That portion of the salaries and other expenses of the office for

9-36  consumer health assistance established pursuant to NRS 223.550 that is

9-37  related to providing assistance to consumers and injured employees

9-38  concerning workers’ compensation.

9-39    4.  The state treasurer may disburse money from the fund only upon

9-40  written order of the controller.

9-41    5.  The state treasurer shall invest money of the fund in the same

9-42  manner and in the same securities in which he is authorized to invest state

9-43  general funds which are in his custody. Income realized from the

9-44  investment of the assets of the fund must be credited to the fund.

9-45    6.  The commissioner shall assign an actuary to review the

9-46  establishment of assessment rates. The rates must be filed with the

9-47  commissioner 30 days before their effective date. Any insurer or employer

9-48  who wishes to appeal the rate so filed must do so pursuant to NRS

9-49  679B.310.

10-1    Sec. 21.  NRS 616A.430 is hereby amended to read as follows:

10-2    616A.430  1.  There is hereby established [as a special revenue fund]

10-3  in the state treasury the uninsured employers’ claim [fund,] account in the

10-4  fund for workers’ compensation and safety, which may be used only for

10-5  the purpose of making payments in accordance with the provisions of NRS

10-6  616C.220 and 617.401. The administrator shall administer the [fund]

10-7  account and shall credit any excess money toward the assessments of the

10-8  insurers for the succeeding years.

10-9    2.  All assessments, penalties, bonds, securities and all other properties

10-10  received, collected or acquired by the administrator for the uninsured

10-11  employers’ claim [fund] account must be delivered to the custody of the

10-12  state treasurer.

10-13  3.  All money and securities in the [fund] account must be held by the

10-14  state treasurer as custodian thereof to be used solely for workers’

10-15  compensation.

10-16  4.  The state treasurer may disburse money from the [fund] account

10-17  only upon written order of the state controller.

10-18  5.  The state treasurer shall invest money of the [fund] account in the

10-19  same manner and in the same securities in which he is authorized to invest

10-20  money of the state general fund. Income realized from the investment of

10-21  the assets of the [fund] account must be credited to the [fund.] account.

10-22  6.  The administrator shall adopt regulations for the establishment and

10-23  administration of assessment rates, payments and penalties, based upon

10-24  expected annual expenditures for claims. Assessment rates must reflect the

10-25  relative hazard of the employments covered by the insurers, and must be

10-26  based upon expected annual expenditures for claims.

10-27  7.  The commissioner shall assign an actuary to review the

10-28  establishment of assessment rates. The rates must be filed with the

10-29  commissioner 30 days before their effective date. Any insurer who wishes

10-30  to appeal the rate so filed must do so pursuant to NRS 679B.310.

10-31  Sec. 22.  NRS 616B.368 is hereby amended to read as follows:

10-32  616B.368  1.  The board of trustees of an association of self-insured

10-33  public or private employers is responsible for the money collected and

10-34  disbursed by the association.

10-35  2.  The board of trustees shall:

10-36  (a) Establish a claims account in a financial institution in this state

10-37  which is approved by the commissioner and which is federally insured or

10-38  insured by a private insurer approved pursuant to NRS 678.755. Except as

10-39  otherwise provided in subsection 3, at least 75 percent of the annual

10-40  assessment collected by the association from its members must be

10-41  deposited in this account to pay:

10-42     (1) Claims;

10-43     (2) Expenses related to those claims;

10-44     (3) The costs associated with the association’s policy of excess

10-45  insurance; and

10-46     (4) Assessments, payments and penalties related to the subsequent

10-47  injury [fund] account and the uninsured employers’ claim [fund.] account.

10-48  (b) Establish an administrative account in a financial institution in this

10-49  state which is approved by the commissioner and which is federally

11-1  insured or insured by a private insurer approved pursuant to NRS 678.755.

11-2  The amount of the annual assessment collected by the association that is

11-3  not deposited in its claims account must be deposited in this account to pay

11-4  the administrative expenses of the association.

11-5    3.  The commissioner may authorize an association to deposit less than

11-6  75 percent of its annual assessment in its claims account if the association

11-7  presents evidence to the satisfaction of the commissioner that:

11-8    (a) More than 25 percent of the association’s annual assessment is

11-9  needed to maintain its programs for loss control and occupational safety;

11-10  and

11-11  (b) The association’s policy of excess insurance attaches at less than 75

11-12  percent.

11-13  4.  The board of trustees may invest the money of the association not

11-14  needed to pay the obligations of the association pursuant to chapter 682A

11-15  of NRS.

11-16  5.  The commissioner shall review the accounts of an association

11-17  established pursuant to this section at such times as he deems necessary to

11-18  ensure compliance with the provisions of this section.

11-19  Sec. 23.  NRS 616B.545 is hereby amended to read as follows:

11-20  616B.545  As used in NRS 616B.545 to 616B.560, inclusive, unless

11-21  the context otherwise requires, “board” means the board for the

11-22  administration of the subsequent injury [fund] account for self-insured

11-23  employers created pursuant to NRS 616B.548.

11-24  Sec. 24.  NRS 616B.548 is hereby amended to read as follows:

11-25  616B.548  1.  There is hereby created the board for the administration

11-26  of the subsequent injury [fund] account for self-insured employers,

11-27  consisting of five members who are self-insured employers. The members

11-28  must be appointed by the governor.

11-29  2.  The members of the board shall elect a chairman and vice chairman

11-30  from among the members appointed. After the initial election of a

11-31  chairman and vice chairman, each of those officers shall hold office for a

11-32  term of 2 years commencing on July 1 of each odd-numbered year. If a

11-33  vacancy occurs in the chairmanship or vice chairmanship, the members of

11-34  the board shall elect a replacement for the remainder of the unexpired term.

11-35  3.  Vacancies on the board must be filled in the same manner as

11-36  original appointments.

11-37  4.  The members of the board serve without compensation.

11-38  5.  A legal counsel that has been appointed by or has contracted with

11-39  the division pursuant to NRS 232.660 shall serve as legal counsel of the

11-40  board.

11-41  Sec. 25.  NRS 616B.551 is hereby amended to read as follows:

11-42  616B.551  1.  The members of the board may meet throughout each

11-43  year at the times and places specified by a call of the chairman or a

11-44  majority of the board. The board may prescribe rules and regulations for its

11-45  own management and government. Three members of the board constitute

11-46  a quorum, and a quorum may exercise all the power and authority

11-47  conferred on the board. If a member of the board submits a claim against

11-48  the subsequent injury [fund] account for self-insured employers, that

12-1  member shall not vote on or otherwise participate in the decision of the

12-2  board concerning that claim.

12-3    2.  The board shall administer the subsequent injury [fund] account for

12-4  self-insured employers in accordance with the provisions of NRS

12-5  616B.554, 616B.557 and 616B.560.

12-6    Sec. 26.  NRS 616B.554 is hereby amended to read as follows:

12-7    616B.554  1.  There is hereby [established as a special revenue fund]

12-8  created in the fund for workers’ compensation and safety in the state

12-9  treasury the subsequent injury [fund] account for self-insured employers,

12-10  which may be used only to make payments in accordance with the

12-11  provisions of NRS 616B.557 and 616B.560. The board shall administer the

12-12  [fund] account based upon recommendations made by the administrator

12-13  pursuant to subsection 8.

12-14  2.  All assessments, penalties, bonds, securities and all other properties

12-15  received, collected or acquired by the board for the subsequent injury

12-16  [fund] account for self-insured employers must be delivered to the custody

12-17  of the state treasurer.

12-18  3.  All money and securities in the [fund] account must be held by the

12-19  state treasurer as custodian thereof to be used solely for workers’

12-20  compensation for employees of self-insured employers.

12-21  4.  The state treasurer may disburse money from the [fund] account

12-22  only upon written order of the board.

12-23  5.  The state treasurer shall invest money of the [fund] account in the

12-24  same manner and in the same securities in which he is authorized to invest

12-25  state general funds which are in his custody. Income realized from the

12-26  investment of the assets of the [fund] account must be credited to the fund.

12-27  6.  The board shall adopt regulations for the establishment and

12-28  administration of assessment rates, payments and penalties. Assessment

12-29  rates must reflect the relative hazard of the employments covered by self-

12-30  insured employers, and must be based upon expected annual expenditures

12-31  for claims for payments from the subsequent injury [fund] account for self-

12-32  insured employers.

12-33  7.  The commissioner shall assign an actuary to review the

12-34  establishment of assessment rates. The rates must be filed with the

12-35  commissioner 30 days before their effective date. Any self-insured

12-36  employer who wishes to appeal the rate so filed must do so pursuant to

12-37  NRS 679B.310.

12-38  8.  The administrator shall:

12-39  (a) Evaluate any claim submitted to the board for payment or

12-40  reimbursement from the subsequent injury [fund] account for self-insured

12-41  employers and recommend to the board any appropriate action to be taken

12-42  concerning the claim; and

12-43  (b) Submit to the board any other recommendations relating to the

12-44  [fund.] account.

12-45  Sec. 27.  NRS 616B.557 is hereby amended to read as follows:

12-46  616B.557  Except as otherwise provided in NRS 616B.560:

12-47  1.  If an employee of a self-insured employer has a permanent physical

12-48  impairment from any cause or origin and incurs a subsequent disability by

12-49  injury arising out of and in the course of his employment which entitles

13-1  him to compensation for disability that is substantially greater by reason of

13-2  the combined effects of the preexisting impairment and the subsequent

13-3  injury than that which would have resulted from the subsequent injury

13-4  alone, the compensation due must be charged to the subsequent injury

13-5  [fund] account for self-insured employers in accordance with regulations

13-6  adopted by the board.

13-7    2.  If the subsequent injury of such an employee results in his death and

13-8  it is determined that the death would not have occurred except for the

13-9  preexisting permanent physical impairment, the compensation due must be

13-10  charged to the subsequent injury [fund] account for self-insured employers

13-11  in accordance with regulations adopted by the board.

13-12  3.  As used in this section, “permanent physical impairment” means

13-13  any permanent condition, whether congenital or caused by injury or

13-14  disease, of such seriousness as to constitute a hindrance or obstacle to

13-15  obtaining employment or to obtaining reemployment if the employee is

13-16  unemployed. For the purposes of this section, a condition is not a

13-17  “permanent physical impairment” unless it would support a rating of

13-18  permanent impairment of 6 percent or more of the whole man if evaluated

13-19  according to the American Medical Association’s Guides to the Evaluation

13-20  of Permanent Impairment as adopted and supplemented by the division

13-21  pursuant to NRS 616C.110.

13-22  4.  To qualify under this section for reimbursement from the

13-23  subsequent injury [fund] account for self-insured employers, the self-

13-24  insured employer must establish by written records that the self-insured

13-25  employer had knowledge of the “permanent physical impairment” at the

13-26  time the employee was hired or that the employee was retained in

13-27  employment after the self-insured employer acquired such knowledge.

13-28  5.  A self-insured employer shall notify the board of any possible claim

13-29  against the subsequent injury [fund] account for self-insured employers as

13-30  soon as practicable, but not later than 100 weeks after the injury or death.

13-31  6.  The board shall adopt regulations establishing procedures for

13-32  submitting claims against the subsequent injury [fund] account for self-

13-33  insured employers. The board shall notify the self-insured employer of his

13-34  decision on such a claim within 90 days after the claim is received.

13-35  7.  An appeal of any decision made concerning a claim against the

13-36  subsequent injury [fund] account for self-insured employers must be

13-37  submitted directly to the district court.

13-38  Sec. 28.  NRS 616B.560 is hereby amended to read as follows:

13-39  616B.560  1.  A self-insured employer who pays compensation due to

13-40  an employee who has a permanent physical impairment from any cause or

13-41  origin and incurs a subsequent disability by injury arising out of and in the

13-42  course of his employment which entitles him to compensation for disability

13-43  that is substantially greater by reason of the combined effects of the

13-44  preexisting impairment and the subsequent injury than that which would

13-45  have resulted from the subsequent injury alone is entitled to be reimbursed

13-46  from the subsequent injury [fund] account for self-insured employers if:

13-47  (a) The employee knowingly made a false representation as to his

13-48  physical condition at the time he was hired by the self-insured employer;

14-1    (b) The self-insured employer relied upon the false representation and

14-2  this reliance formed a substantial basis of the employment; and

14-3    (c) A causal connection existed between the false representation and the

14-4  subsequent disability.

14-5  If the subsequent injury of the employee results in his death and it is

14-6  determined that the death would not have occurred except for the

14-7  preexisting permanent physical impairment, any compensation paid is

14-8  entitled to be reimbursed from the subsequent injury [fund] account for

14-9  self-insured employers.

14-10  2.  A self-insured employer shall notify the board of any possible claim

14-11  against the subsequent injury [fund] account for self-insured employers

14-12  pursuant to this section no later than 60 days after the date of the

14-13  subsequent injury or the date the self-insured employer learns of the

14-14  employee’s false representation, whichever is later.

14-15  Sec. 29.  NRS 616B.563 is hereby amended to read as follows:

14-16  616B.563  As used in NRS 616B.563 to 616B.581, inclusive, unless

14-17  the context otherwise requires, “board” means the board for the

14-18  administration of the subsequent injury [fund] account for associations of

14-19  self-insured public or private employers created pursuant to NRS

14-20  616B.569.

14-21  Sec. 30.  NRS 616B.569 is hereby amended to read as follows:

14-22  616B.569  1.  There is hereby created the board for the administration

14-23  of the subsequent injury [fund] account for associations of self-insured

14-24  public or private employers, consisting of five members who are members

14-25  of an association of self-insured public or private employers. The members

14-26  of the board must be appointed by the governor.

14-27  2.  The members of the board shall elect a chairman and vice chairman

14-28  from among the members appointed. After the initial election of a

14-29  chairman and vice chairman, each of those officers shall hold office for a

14-30  term of 2 years commencing on July 1 of each odd-numbered year. If a

14-31  vacancy occurs in the chairmanship or vice chairmanship, the members of

14-32  the board shall elect a replacement for the remainder of the unexpired term.

14-33  3.  Vacancies on the board must be filled in the same manner as

14-34  original appointments.

14-35  4.  The members of the board serve without compensation.

14-36  5.  A legal counsel that has been appointed by or has contracted with

14-37  the division pursuant to NRS 232.660 shall serve as legal counsel of the

14-38  board.

14-39  Sec. 31.  NRS 616B.572 is hereby amended to read as follows:

14-40  616B.572  1.  The members of the board may meet throughout each

14-41  year at the times and places specified by a call of the chairman or a

14-42  majority of the board. The board may prescribe rules and regulations for its

14-43  own management and government. Three members of the board constitute

14-44  a quorum, and a quorum may exercise all the power and authority

14-45  conferred on the board. If a member of the board submits a claim against

14-46  the subsequent injury [fund] account for associations of self-insured public

14-47  or private employers, that member shall not vote on or otherwise

14-48  participate in the decision of the board concerning that claim.

15-1    2.  The board shall administer the subsequent injury [fund] account for

15-2  associations of self-insured public or private employers in accordance with

15-3  the provisions of NRS 616B.575, 616B.578 and 616B.581.

15-4    Sec. 32.  NRS 616B.575 is hereby amended to read as follows:

15-5    616B.575  1.  There is hereby [established as a special revenue fund]

15-6  created in the fund for workers’ compensation and safety in the state

15-7  treasury the subsequent injury [fund] account for associations of self-

15-8  insured public or private employers, which may be used only to make

15-9  payments in accordance with the provisions of NRS 616B.578 and

15-10  616B.581. The board shall administer the [fund] account based upon

15-11  recommendations made by the administrator pursuant to subsection 8.

15-12  2.  All assessments, penalties, bonds, securities and all other properties

15-13  received, collected or acquired by the board for the subsequent injury

15-14  [fund] account for associations of self-insured public or private employers

15-15  must be delivered to the custody of the state treasurer.

15-16  3.  All money and securities in the [fund] account must be held by the

15-17  state treasurer as custodian thereof to be used solely for workers’

15-18  compensation for employees of members of associations of self-insured

15-19  public or private employers.

15-20  4.  The state treasurer may disburse money from the [fund] account

15-21  only upon written order of the board.

15-22  5.  The state treasurer shall invest money of the [fund] account in the

15-23  same manner and in the same securities in which he is authorized to invest

15-24  state general funds which are in his custody. Income realized from the

15-25  investment of the assets of the [fund] account must be credited to the

15-26  [fund.] account.

15-27  6.  The board shall adopt regulations for the establishment and

15-28  administration of assessment rates, payments and penalties. Assessment

15-29  rates must reflect the relative hazard of the employments covered by

15-30  associations of self-insured public or private employers, and must be based

15-31  upon expected annual expenditures for claims for payments from the

15-32  subsequent injury [fund] account for associations of self-insured public or

15-33  private employers.

15-34  7.  The commissioner shall assign an actuary to review the

15-35  establishment of assessment rates. The rates must be filed with the

15-36  commissioner 30 days before their effective date. Any association of self-

15-37  insured public or private employers that wishes to appeal the rate so filed

15-38  must do so pursuant to NRS 679B.310.

15-39  8.  The administrator shall:

15-40  (a) Evaluate any claim submitted to the board for payment or

15-41  reimbursement from the subsequent injury [fund] account for associations

15-42  of self-insured public or private employers and recommend to the board

15-43  any appropriate action to be taken concerning the claim; and

15-44  (b) Submit to the board any other recommendations relating to the

15-45  [fund.] account.

15-46  Sec. 33.  NRS 616B.578 is hereby amended to read as follows:

15-47  616B.578  Except as otherwise provided in NRS 616B.581:

15-48  1.  If an employee of a member of an association of self-insured public

15-49  or private employers has a permanent physical impairment from any cause

16-1  or origin and incurs a subsequent disability by injury arising out of and in

16-2  the course of his employment which entitles him to compensation for

16-3  disability that is substantially greater by reason of the combined effects of

16-4  the preexisting impairment and the subsequent injury than that which

16-5  would have resulted from the subsequent injury alone, the compensation

16-6  due must be charged to the subsequent injury [fund] account for

16-7  associations of self-insured public or private employers in accordance with

16-8  regulations adopted by the board.

16-9    2.  If the subsequent injury of such an employee results in his death and

16-10  it is determined that the death would not have occurred except for the

16-11  preexisting permanent physical impairment, the compensation due must be

16-12  charged to the subsequent injury [fund] account for associations of self-

16-13  insured public or private employers in accordance with regulations adopted

16-14  by the board.

16-15  3.  As used in this section, “permanent physical impairment” means

16-16  any permanent condition, whether congenital or caused by injury or

16-17  disease, of such seriousness as to constitute a hindrance or obstacle to

16-18  obtaining employment or to obtaining reemployment if the employee is

16-19  unemployed. For the purposes of this section, a condition is not a

16-20  “permanent physical impairment” unless it would support a rating of

16-21  permanent impairment of 6 percent or more of the whole man if evaluated

16-22  according to the American Medical Association’s Guides to the Evaluation

16-23  of Permanent Impairment as adopted and supplemented by the division

16-24  pursuant to NRS 616C.110.

16-25  4.  To qualify under this section for reimbursement from the

16-26  subsequent injury [fund] account for associations of self-insured public or

16-27  private employers, the association of self-insured public or private

16-28  employers must establish by written records that the employer had

16-29  knowledge of the “permanent physical impairment” at the time the

16-30  employee was hired or that the employee was retained in employment after

16-31  the employer acquired such knowledge.

16-32  5.  An association of self-insured public or private employers shall

16-33  notify the board of any possible claim against the subsequent injury [fund]

16-34  account for associations of self-insured public or private employers as

16-35  soon as practicable, but not later than 100 weeks after the injury or death.

16-36  6.  The board shall adopt regulations establishing procedures for

16-37  submitting claims against the subsequent injury [fund] account for

16-38  associations of self-insured public or private employers. The board shall

16-39  notify the association of self-insured public or private employers of its

16-40  decision on such a claim within 90 days after the claim is received.

16-41  7.  An appeal of any decision made concerning a claim against the

16-42  subsequent injury [fund] account for associations of self-insured public or

16-43  private employers must be submitted directly to the district court.

16-44  Sec. 34.  NRS 616B.581 is hereby amended to read as follows:

16-45  616B.581  1.  An association of self-insured public or private

16-46  employers that pays compensation due to an employee who has a

16-47  permanent physical impairment from any cause or origin and incurs a

16-48  subsequent disability by injury arising out of and in the course of his

16-49  employment which entitles him to compensation for disability that is

17-1  substantially greater by reason of the combined effects of the preexisting

17-2  impairment and the subsequent injury than that which would have resulted

17-3  from the subsequent injury alone is entitled to be reimbursed from the

17-4  subsequent injury [fund] account for associations of self-insured public or

17-5  private employers if:

17-6    (a) The employee knowingly made a false representation as to his

17-7  physical condition at the time he was hired by the member of the

17-8  association of self-insured public or private employers;

17-9    (b) The employer relied upon the false representation and this reliance

17-10  formed a substantial basis of the employment; and

17-11  (c) A causal connection existed between the false representation and the

17-12  subsequent disability.

17-13  If the subsequent injury of the employee results in his death and it is

17-14  determined that the death would not have occurred except for the

17-15  preexisting permanent physical impairment, any compensation paid is

17-16  entitled to be reimbursed from the subsequent injury [fund] account for

17-17  associations of self-insured public or private employers.

17-18  2.  An association of self-insured public or private employers shall

17-19  notify the board of any possible claim against the subsequent injury [fund]

17-20  account for associations of self-insured public or private employers

17-21  pursuant to this section no later than 60 days after the date of the

17-22  subsequent injury or the date the employer learns of the employee’s false

17-23  representation, whichever is later.

17-24  Sec. 35.  NRS 616B.584 is hereby amended to read as follows:

17-25  616B.584  1.  There is hereby [established as a special revenue fund]

17-26  created in the fund for workers’ compensation and safety in the state

17-27  treasury the subsequent injury [fund] account for private carriers, which

17-28  may be used only to make payments in accordance with the provisions of

17-29  NRS 616B.587 and 616B.590. The administrator shall administer the

17-30  [fund.] account.

17-31  2.  All assessments, penalties, bonds, securities and all other properties

17-32  received, collected or acquired by the administrator for the subsequent

17-33  injury [fund] account for private carriers must be delivered to the custody

17-34  of the state treasurer.

17-35  3.  All money and securities in the [fund] account must be held by the

17-36  state treasurer as custodian thereof to be used solely for workers’

17-37  compensation for employees whose employers are insured by private

17-38  carriers.

17-39  4.  The state treasurer may disburse money from the [fund] account

17-40  only upon written order of the state controller.

17-41  5.  The state treasurer shall invest money of the [fund] account in the

17-42  same manner and in the same securities in which he is authorized to invest

17-43  state general funds which are in his custody. Income realized from the

17-44  investment of the assets of the [fund] account must be credited to the

17-45  [fund.] account.

17-46  6.  The administrator shall adopt regulations for the establishment and

17-47  administration of assessment rates, payments and penalties. Assessment

17-48  rates must reflect the relative hazard of the employments covered by

17-49  private carriers and must be based upon expected annual expenditures for

18-1  claims for payments from the subsequent injury [fund] account for private

18-2  carriers.

18-3    7.  The commissioner shall assign an actuary to review the

18-4  establishment of assessment rates. The rates must be filed with the

18-5  commissioner 30 days before their effective date. Any private carrier who

18-6  wishes to appeal the rate so filed must do so pursuant to NRS 679B.310.

18-7    Sec. 36.  NRS 616B.587 is hereby amended to read as follows:

18-8    616B.587  Except as otherwise provided in NRS 616B.590:

18-9    1.  If an employee of an employer who is insured by a private carrier

18-10  has a permanent physical impairment from any cause or origin and incurs a

18-11  subsequent disability by injury arising out of and in the course of his

18-12  employment which entitles him to compensation for disability that is

18-13  substantially greater by reason of the combined effects of the preexisting

18-14  impairment and the subsequent injury than that which would have resulted

18-15  from the subsequent injury alone, the compensation due must be charged to

18-16  the subsequent injury [fund] account for private carriers in accordance

18-17  with regulations adopted by the administrator.

18-18  2.  If the subsequent injury of such an employee results in his death and

18-19  it is determined that the death would not have occurred except for the

18-20  preexisting permanent physical impairment, the compensation due must be

18-21  charged to the subsequent injury [fund] account for private carriers in

18-22  accordance with regulations adopted by the administrator.

18-23  3.  As used in this section, “permanent physical impairment” means

18-24  any permanent condition, whether congenital or caused by injury or

18-25  disease, of such seriousness as to constitute a hindrance or obstacle to

18-26  obtaining employment or to obtaining reemployment if the employee is

18-27  unemployed. For the purposes of this section, a condition is not a

18-28  “permanent physical impairment” unless it would support a rating of

18-29  permanent impairment of 6 percent or more of the whole man if evaluated

18-30  according to the American Medical Association’s Guides to the Evaluation

18-31  of Permanent Impairment as adopted and supplemented by the division

18-32  pursuant to NRS 616C.110.

18-33  4.  To qualify under this section for reimbursement from the

18-34  subsequent injury [fund] account for private carriers, the private carrier

18-35  must establish by written records that the employer had knowledge of the

18-36  “permanent physical impairment” at the time the employee was hired or

18-37  that the employee was retained in employment after the employer acquired

18-38  such knowledge.

18-39  5.  A private carrier shall notify the administrator of any possible claim

18-40  against the subsequent injury [fund] account for private carriers as soon as

18-41  practicable, but not later than 100 weeks after the injury or death.

18-42  6.  The administrator shall adopt regulations establishing procedures

18-43  for submitting claims against the subsequent injury [fund] account for

18-44  private carriers. The administrator shall notify the private carrier of his

18-45  decision on such a claim within 90 days after the claim is received.

18-46  7.  An appeal of any decision made concerning a claim against the

18-47  subsequent injury [fund] account for private carriers must be submitted

18-48  directly to the appeals officer. The appeals officer shall hear such an appeal

18-49  within 45 days after the appeal is submitted to him.

19-1    Sec. 37.  NRS 616B.590 is hereby amended to read as follows:

19-2    616B.590  1.  A private carrier who pays compensation due to an

19-3  employee who has a permanent physical impairment from any cause or

19-4  origin and incurs a subsequent disability by injury arising out of and in the

19-5  course of his employment which entitles him to compensation for disability

19-6  that is substantially greater by reason of the combined effects of the

19-7  preexisting impairment and the subsequent injury than that which would

19-8  have resulted from the subsequent injury alone is entitled to be reimbursed

19-9  from the subsequent injury [fund] account for private carriers if:

19-10  (a) The employee knowingly made a false representation as to his

19-11  physical condition at the time he was hired by the employer insured by a

19-12  private carrier;

19-13  (b) The employer relied upon the false representation and this reliance

19-14  formed a substantial basis of the employment; and

19-15  (c) A causal connection existed between the false representation and the

19-16  subsequent disability.

19-17  If the subsequent injury of the employee results in his death and it is

19-18  determined that the death would not have occurred except for the

19-19  preexisting permanent physical impairment, any compensation paid is

19-20  entitled to be reimbursed from the subsequent injury [fund] account for

19-21  private carriers.

19-22  2.  A private carrier shall notify the administrator of any possible claim

19-23  against the subsequent injury [fund] account for private carriers pursuant

19-24  to this section no later than 60 days after the date of the subsequent injury

19-25  or the date the employer learns of the employee’s false representation,

19-26  whichever is later.

19-27  Sec. 38.  NRS 616C.215 is hereby amended to read as follows:

19-28  616C.215  1.  If an injured employee or, in the event of his death, his

19-29  dependents, bring an action in tort against his employer to recover payment

19-30  for an injury which is compensable pursuant to the provisions of chapters

19-31  616A to 616D, inclusive, or chapter 617 of NRS and, notwithstanding the

19-32  provisions of NRS 616A.020, receive payment from the employer for that

19-33  injury:

19-34  (a) The amount of compensation the injured employee or his dependents

19-35  are entitled to receive pursuant to the provisions of chapters 616A to 616D,

19-36  inclusive, or chapter 617 of NRS, including any future compensation, must

19-37  be reduced by the amount paid by the employer.

19-38  (b) The insurer, or in the case of claims involving the uninsured

19-39  employer’s claim [fund] account or a subsequent injury [fund] account the

19-40  administrator, has a lien upon the total amount paid by the employer if the

19-41  injured employee or his dependents receive compensation pursuant to the

19-42  provisions of chapters 616A to 616D, inclusive, or chapter 617 of
NRS.

19-43  This subsection is applicable whether the money paid to the employee or

19-44  his dependents by the employer is classified as a gift, a settlement or

19-45  otherwise. The provisions of this subsection do not grant to an injured

19-46  employee any right of action in tort to recover damages from his employer

19-47  for his injury.

20-1    2.  When an employee receives an injury for which compensation is

20-2  payable pursuant to the provisions of chapters 616A to 616D, inclusive, or

20-3  chapter 617 of NRS and which was caused under circumstances creating a

20-4  legal liability in some person, other than the employer or a person in the

20-5  same employ, to pay damages in respect thereof:

20-6    (a) The injured employee, or in case of death his dependents, may take

20-7  proceedings against that person to recover damages, but the amount of the

20-8  compensation the injured employee or his dependents are entitled to

20-9  receive pursuant to the provisions of chapters 616A to 616D, inclusive, or

20-10  chapter 617 of NRS, including any future compensation, must be reduced

20-11  by the amount of the damages recovered, notwithstanding any act or

20-12  omission of the employer or a person in the same employ which was a

20-13  direct or proximate cause of the employee’s injury.

20-14  (b) If the injured employee, or in case of death his dependents, receive

20-15  compensation pursuant to the provisions of chapters 616A to 616D,

20-16  inclusive, or chapter 617 of NRS, the insurer, or in case of claims involving

20-17  the uninsured employers’ claim [fund] account or a subsequent injury

20-18  [fund] account the administrator, has a right of action against the person so

20-19  liable to pay damages and is subrogated to the rights of the injured

20-20  employee or of his dependents to recover therefor.

20-21  3.  When an injured employee incurs an injury for which compensation

20-22  is payable pursuant to the provisions of chapters 616A to 616D, inclusive,

20-23  or chapter 617 of NRS and which was caused under circumstances entitling

20-24  him, or in the case of death his dependents, to receive proceeds under his

20-25  employer’s policy of uninsured or underinsured vehicle coverage:

20-26  (a) The injured employee, or in the case of death his dependents, may

20-27  take proceedings to recover those proceeds, but the amount of

20-28  compensation the injured employee or his dependents are entitled to

20-29  receive pursuant to the provisions of chapters 616A to 616D, inclusive, or

20-30  chapter 617 of NRS, including any future compensation, must be reduced

20-31  by the amount of proceeds received.

20-32  (b) If an injured employee, or in the case of death his dependents,

20-33  receive compensation pursuant to the provisions of chapters 616A to 616D,

20-34  inclusive, or chapter 617 of NRS, the insurer, or in the case of claims

20-35  involving the uninsured employers’ claim [fund] account or a subsequent

20-36  injury [fund] account the administrator, is subrogated to the rights of the

20-37  injured employee or his dependents to recover proceeds under the

20-38  employer’s policy of uninsured or underinsured vehicle coverage. The

20-39  insurer and the administrator are not subrogated to the rights of an injured

20-40  employee or his dependents under a policy of uninsured or underinsured

20-41  vehicle coverage purchased by the employee.

20-42  4.  In any action or proceedings taken by the insurer or the

20-43  administrator pursuant to this section, evidence of the amount of

20-44  compensation, accident benefits and other expenditures which the insurer,

20-45  the uninsured employers’ claim [fund] account or a subsequent injury

20-46  [fund] account have paid or become obligated to pay by reason of the

20-47  injury or death of the employee is admissible. If in such action or

20-48  proceedings the insurer or the administrator recovers more than those

21-1  amounts, the excess must be paid to the injured employee or his

21-2  dependents.

21-3    5.  In any case where the insurer or the administrator is subrogated to

21-4  the rights of the injured employee or of his dependents as provided in

21-5  subsection 2 or 3, the insurer or the administrator has a lien upon the total

21-6  proceeds of any recovery from some person other than the employer,

21-7  whether the proceeds of such recovery are by way of judgment, settlement

21-8  or otherwise. The injured employee, or in the case of his death his

21-9  dependents, are not entitled to double recovery for the same injury,

21-10  notwithstanding any act or omission of the employer or a person in the

21-11  same employ which was a direct or proximate cause of the employee’s

21-12  injury.

21-13  6.  The lien provided for pursuant to subsection 1 or 5 includes the total

21-14  compensation expenditure incurred by the insurer, the uninsured

21-15  employers’ claim [fund] account or a subsequent injury [fund] account for

21-16  the injured employee and his dependents.

21-17  7.  An injured employee, or in the case of death his dependents, or the

21-18  attorney or representative of the injured employee or his dependents, shall

21-19  notify the insurer, or in the case of claims involving the uninsured

21-20  employers’ claim [fund] account or a subsequent injury [fund] account the

21-21  administrator, in writing before initiating a proceeding or action pursuant

21-22  to this section.

21-23  8.  Within 15 days after the date of recovery by way of actual receipt of

21-24  the proceeds of the judgment, settlement or otherwise:

21-25  (a) The injured employee or his dependents, or the attorney or

21-26  representative of the injured employee or his dependents; and

21-27  (b) The third-party insurer,

21-28  shall notify the insurer, or in the case of claims involving the uninsured

21-29  employers’ claim [fund] account or a subsequent injury [fund] account the

21-30  administrator, of the recovery and pay to the insurer or the administrator,

21-31  respectively, the amount due pursuant to this section together with an

21-32  itemized statement showing the distribution of the total recovery. The

21-33  attorney or representative of the injured employee or his dependents and

21-34  the third-party insurer are jointly and severally liable for any amount to

21-35  which an insurer is entitled pursuant to this section if the attorney,

21-36  representative or third-party insurer has knowledge of the lien provided for

21-37  in this section.

21-38  9.  An insurer shall not sell its lien to a third-party insurer unless the

21-39  injured employee or his dependents, or the attorney or representative of the

21-40  injured employee or his dependents, refuses to provide to the insurer

21-41  information concerning the action against the third party.

21-42  10.  In any trial of an action by the injured employee, or in the case of

21-43  his death by his dependents, against a person other than the employer or a

21-44  person in the same employ, the jury must receive proof of the amount of all

21-45  payments made or to be made by the insurer or the administrator. The court

21-46  shall instruct the jury substantially as follows:

21-47           Payment of workmen’s compensation benefits by the insurer, or in

21-48  the case of claims involving the uninsured employers’ claim [fund]

21-49  account or a subsequent injury [fund] account the administrator, is

22-1  based upon the fact that a compensable industrial accident occurred,

22-2  and does not depend upon blame or fault. If the plaintiff does not

22-3  obtain a judgment in his favor in this case, he is not required to repay

22-4  his employer, the insurer or the administrator any amount paid to him

22-5  or paid on his behalf by his employer, the insurer or the administrator.

22-6  If you decide that the plaintiff is entitled to judgment against the

22-7  defendant, you shall find his damages in accordance with the court’s

22-8  instructions on damages and return your verdict in the plaintiff’s favor

22-9  in the amount so found without deducting the amount of any

22-10  compensation benefits paid to or for the plaintiff. The law provides a

22-11  means by which any compensation benefits will be repaid from your

22-12  award.

22-13  11.  To calculate an employer’s premium, the employer’s account with

22-14  the private carrier must be credited with an amount equal to that recovered

22-15  by the private carrier from a third party pursuant to this section, less the

22-16  private carrier’s share of the expenses of litigation incurred in obtaining the

22-17  recovery, except that the total credit must not exceed the amount of

22-18  compensation actually paid or reserved by the private carrier on the injured

22-19  employee’s claim.

22-20  12.  As used in this section, “third-party insurer” means an insurer that

22-21  issued to a third party who is liable for damages pursuant to subsection 2, a

22-22  policy of liability insurance the proceeds of which are recoverable pursuant

22-23  to this section. The term includes an insurer that issued to an employer a

22-24  policy of uninsured or underinsured vehicle coverage.

22-25  Sec. 39.  NRS 616C.220 is hereby amended to read as follows:

22-26  616C.220  1.  The division shall designate one:

22-27  (a) Third-party administrator who has a valid certificate issued by the

22-28  commissioner pursuant to NRS 683A.085; or

22-29  (b) Insurer, other than a self-insured employer or association of self-

22-30  insured public or private employers,

22-31  to administer claims against the uninsured employers’ claim [fund.]

22-32  account. The designation must be made pursuant to reasonable competitive

22-33  bidding procedures established by the administrator.

22-34  2.  An employee may receive compensation from the uninsured

22-35  employers’ claim [fund] account if:

22-36  (a) He was hired in this state or he is regularly employed in this state;

22-37  (b) He suffers an accident or injury in this state which arises out of and

22-38  in the course of his employment;

22-39  (c) He files a claim for compensation with the division; and

22-40  (d) He makes an irrevocable assignment to the division of a right to be

22-41  subrogated to the rights of the injured employee pursuant to NRS

22-42  616C.215.

22-43  3.  If the division receives a claim pursuant to subsection 2, the division

22-44  shall immediately notify the employer of the claim.

22-45  4.  For the purposes of this section, the employer has the burden of

22-46  proving that he provided mandatory industrial insurance coverage for the

22-47  employee or that he was not required to maintain industrial insurance for

22-48  the employee.

23-1    5.  Any employer who has failed to provide mandatory coverage

23-2  required by the provisions of chapters 616A to 616D, inclusive, of NRS is

23-3  liable for all payments made on his behalf, including any benefits,

23-4  administrative costs or attorney’s fees paid from the uninsured employers’

23-5  claim [fund] account or incurred by the division.

23-6    6.  The division:

23-7    (a) May recover from the employer the payments made by the division

23-8  that are described in subsection 5 and any accrued interest by bringing a

23-9  civil action in district court.

23-10  (b) In any civil action brought against the employer, is not required to

23-11  prove that negligent conduct by the employer was the cause of the

23-12  employee’s injury.

23-13  (c) May enter into a contract with any person to assist in the collection

23-14  of any liability of an uninsured employer.

23-15  (d) In lieu of a civil action, may enter into an agreement or settlement

23-16  regarding the collection of any liability of an uninsured employer.

23-17  7.  The division shall:

23-18  (a) Determine whether the employer was insured within 30 days after

23-19  receiving notice of the claim from the employee.

23-20  (b) Assign the claim to the third-party administrator or insurer

23-21  designated pursuant to subsection 1 for administration and payment of

23-22  compensation.

23-23  Upon determining whether the claim is accepted or denied, the designated

23-24  third-party administrator or insurer shall notify the injured employee, the

23-25  named employer and the division of its determination.

23-26  8.  Upon demonstration of the:

23-27  (a) Costs incurred by the designated third-party administrator or insurer

23-28  to administer the claim or pay compensation to the injured employee; or

23-29  (b) Amount that the designated third-party administrator or insurer will

23-30  pay for administrative expenses or compensation to the injured employee

23-31  and that such amounts are justified by the circumstances of the claim,

23-32  the division shall authorize payment from the uninsured employers’ claim

23-33  [fund.] account.

23-34  9.  Any party aggrieved by a determination regarding the

23-35  administration of an assigned claim or a determination made by the

23-36  division or by the designated third-party administrator or insurer regarding

23-37  any claim made pursuant to this section may appeal that determination

23-38  within 60 days after the determination is rendered to the hearings division

23-39  of the department of administration in the manner provided by NRS

23-40  616C.305 and 616C.315 to 616C.385, inclusive.

23-41  10.  All insurers shall bear a proportionate amount of a claim made

23-42  pursuant to chapters 616A to 616D, inclusive, of NRS, and are entitled to a

23-43  proportionate amount of any collection made pursuant to this section as an

23-44  offset against future liabilities.

23-45  11.  An uninsured employer is liable for the interest on any amount

23-46  paid on his claims from the uninsured employers’ claim [fund.] account.

23-47  The interest must be calculated at a rate equal to the prime rate at the

23-48  largest bank in Nevada, as ascertained by the commissioner of financial

23-49  institutions, on January 1 or July 1, as the case may be, immediately

24-1  preceding the date of the claim, plus 3 percent, compounded monthly, from

24-2  the date the claim is paid from the [fund] account until payment is received

24-3  by the division from the employer.

24-4    12.  Attorney’s fees recoverable by the division pursuant to this section

24-5  must be:

24-6    (a) If a private attorney is retained by the division, paid at the usual and

24-7  customary rate for that attorney.

24-8    (b) If the attorney is an employee of the division, paid at the rate

24-9  established by regulations adopted by the division.

24-10  Any money collected must be deposited to the uninsured employers’ claim

24-11  [fund.] account.

24-12  13.  In addition to any other liabilities provided for in this section, the

24-13  administrator may impose an administrative fine of not more than $10,000

24-14  against an employer if the employer fails to provide mandatory coverage

24-15  required by the provisions of chapters 616A to 616D, inclusive, of NRS.

24-16  Sec. 40.  NRS 616D.200 is hereby amended to read as follows:

24-17  616D.200  1.  If the administrator finds that an employer within the

24-18  provisions of NRS 616B.633 has failed to provide and secure

24-19  compensation as required by the terms of chapters 616A to 616D,

24-20  inclusive, or chapter 617 of NRS or that the employer has provided and

24-21  secured that compensation but has failed to maintain it, he shall make a

24-22  determination thereon and may charge the employer an amount equal to the

24-23  sum of:

24-24  (a) The premiums that would otherwise have been owed to a private

24-25  carrier pursuant to the terms of chapters 616A to 616D, inclusive, or

24-26  chapter 617 of NRS, as determined by the administrator based upon the

24-27  manual rates adopted by the commissioner, for the period that the employer

24-28  was doing business in this state without providing, securing or maintaining

24-29  that compensation, but not to exceed 6 years; and

24-30  (b) Interest at a rate determined pursuant to NRS 17.130 computed from

24-31  the time that the premiums should have been paid.

24-32  The money collected pursuant to this subsection must be paid into the

24-33  uninsured employers’ claim [fund.] account.

24-34  2.  The administrator shall deliver a copy of his determination to the

24-35  employer. An employer who is aggrieved by the determination of the

24-36  administrator may appeal from the determination pursuant to subsection 2

24-37  of NRS 616D.220.

24-38  3.  Any employer within the provisions of NRS 616B.633 who fails to

24-39  provide, secure or maintain compensation as required by the terms of

24-40  chapters 616A to 616D, inclusive, or chapter 617 of NRS, shall be

24-41  punished as follows:

24-42  (a) Except as otherwise provided in paragraph (b), if it is a first offense,

24-43  for a misdemeanor.

24-44  (b) If it is a first offense and, during the period the employer was doing

24-45  business in this state without providing, securing or maintaining

24-46  compensation, one of his employees suffers an injury arising out of and in

24-47  the course of his employment that results in substantial bodily harm to the

24-48  employee or the death of the employee, for a category C felony punishable

24-49  by imprisonment in the state prison for a minimum term of not less than 1

25-1  year and a maximum term of not more than 5 years and by a fine of not

25-2  less than $1,000 nor more than $50,000.

25-3    (c) If it is a second or subsequent offense committed within 7 years after

25-4  the previous offense, for a category C felony punishable by imprisonment

25-5  in the state prison for a minimum term of not less than 1 year and a

25-6  maximum term of not more than 5 years and by a fine of not less than

25-7  $1,000 nor more than $50,000.

25-8    4.  In addition to any other penalty imposed pursuant to paragraph (b)

25-9  or (c) of subsection 3, the court shall order the employer to:

25-10  (a) Pay restitution to an insurer who has incurred costs as a result of the

25-11  violation in an amount equal to the costs that have been incurred minus any

25-12  costs incurred that have otherwise been recovered; and

25-13  (b) Reimburse the uninsured employers’ claim [fund] account for all

25-14  payments made from the [fund] account on the employer’s behalf,

25-15  including any benefits, administrative costs or attorney’s fees paid from the

25-16  [fund,] account, that have not otherwise been recovered pursuant to NRS

25-17  616C.220.

25-18  5.  Any criminal penalty imposed pursuant to subsections 3 and 4 must

25-19  be in addition to the amount charged pursuant to subsection 1.

25-20  Sec. 41.  NRS 616D.220 is hereby amended to read as follows:

25-21  616D.220  1.  If the administrator finds that any employer or any

25-22  employee, officer or agent of any employer has knowingly:

25-23  (a) Made a false statement or has knowingly failed to report a material

25-24  fact concerning the amount of payroll upon which a premium is based; or

25-25  (b) Misrepresented the classification or duties of an employee,

25-26  he shall make a determination thereon and charge the employer’s account

25-27  an amount equal to the amount of the premium that would have been due

25-28  had the proper information been submitted. The administrator shall deliver

25-29  a copy of his determination to the employer. The money collected pursuant

25-30  to this subsection must be paid into the uninsured employers’ claim [fund.]

25-31  account.

25-32  2.  An employer who is aggrieved by the determination of the

25-33  administrator may appeal from the determination by filing a request for a

25-34  hearing. The request must be filed within 30 days after the date on which a

25-35  copy of the determination was delivered to the employer. The administrator

25-36  shall hold a hearing within 30 days after he receives the request. The

25-37  determination of the administrator made pursuant to a hearing is a final

25-38  decision for the purposes of judicial review. The amount of the

25-39  determination as finally decided by the administrator becomes due within

25-40  30 days after the determination is served on the employer.

25-41  3.  A person who knowingly:

25-42  (a) Makes a false statement or representation or who knowingly fails to

25-43  report a material fact concerning the amount of payroll upon which a

25-44  premium is based; or

25-45  (b) Misrepresents the classification or duties of an employee,

25-46  is guilty of a gross misdemeanor. Any criminal penalty imposed must be in

25-47  addition to the amount charged pursuant to subsection 1.

 

 

26-1    Sec. 42.  NRS 616D.230 is hereby amended to read as follows:

26-2    616D.230  1.  An employer who fails to pay an amount of money

26-3  charged to him pursuant to the provisions of NRS 616D.200 or 616D.220

26-4  is liable in a civil action commenced by the attorney general for:

26-5    (a) Any amount charged to the employer by the administrator pursuant

26-6  to NRS 616D.200 or 616D.220;

26-7    (b) Not more than $10,000 for each act of willful deception;

26-8    (c) An amount equal to three times the total amount of the reasonable

26-9  expenses incurred by the state in enforcing this section; and

26-10  (d) Payment of interest on the amount charged at the rate fixed pursuant

26-11  to NRS 99.040 for the period from the date upon which the amount

26-12  charged was due to the date upon which the amount charged is paid.

26-13  2.  A criminal action need not be brought against an employer

26-14  described in subsection 1 before civil liability attaches under this section.

26-15  3.  Any payment of money charged pursuant to the provisions of NRS

26-16  616D.200 or 616D.220 and collected pursuant to paragraph (a) or (d) of

26-17  subsection 1 must be paid into the uninsured employers’ claim [fund.]

26-18  account.

26-19  4.  Any penalty collected pursuant to paragraph (b) or (c) of subsection

26-20  1 must be used to pay the salaries and other expenses of the fraud control

26-21  unit for industrial insurance established pursuant to the provisions of NRS

26-22  228.420. Any money remaining at the end of any fiscal year does not revert

26-23  to the state general fund.

26-24  Sec. 43.  NRS 617.401 is hereby amended to read as follows:

26-25  617.401  1.  The division shall designate one:

26-26  (a) Third-party administrator who has a valid certificate issued by the

26-27  commissioner pursuant to NRS 683A.085; or

26-28  (b) Insurer, other than a self-insured employer or association of self-

26-29  insured public or private employers,

26-30  to administer claims against the uninsured employers’ claim [fund.]

26-31  account. The designation must be made pursuant to reasonable competitive

26-32  bidding procedures established by the administrator.

26-33  2.  An employee may receive compensation from the uninsured

26-34  employers’ claim [fund] account if:

26-35  (a) He was hired in this state or he is regularly employed in this state;

26-36  (b) He contracts an occupational disease as a result of work performed

26-37  in this state;

26-38  (c) He files a claim for compensation with the division; and

26-39  (d) He makes an irrevocable assignment to the division of a right to be

26-40  subrogated to the rights of the employee pursuant to NRS 616C.215.

26-41  3.  If the division receives a claim pursuant to subsection 2, the division

26-42  shall immediately notify the employer of the claim.

26-43  4.  For the purposes of this section, the employer has the burden of

26-44  proving that he provided mandatory coverage for occupational diseases for

26-45  the employee or that he was not required to maintain industrial insurance

26-46  for the employee.

26-47  5.  Any employer who has failed to provide mandatory coverage

26-48  required by the provisions of this chapter is liable for all payments made on

26-49  his behalf, including, but not limited to, any benefits, administrative costs

27-1  or attorney’s fees paid from the uninsured employers’ claim [fund] account

27-2  or incurred by the division.

27-3    6.  The division:

27-4    (a) May recover from the employer the payments made by the division

27-5  that are described in subsection 5 and any accrued interest by bringing a

27-6  civil action in district court.

27-7    (b) In any civil action brought against the employer, is not required to

27-8  prove that negligent conduct by the employer was the cause of the

27-9  occupational disease.

27-10  (c) May enter into a contract with any person to assist in the collection

27-11  of any liability of an uninsured employer.

27-12  (d) In lieu of a civil action, may enter into an agreement or settlement

27-13  regarding the collection of any liability of an uninsured employer.

27-14  7.  The division shall:

27-15  (a) Determine whether the employer was insured within 30 days after

27-16  receiving the claim from the employee.

27-17  (b) Assign the claim to the third-party administrator or insurer

27-18  designated pursuant to subsection 1 for administration and payment of

27-19  compensation.

27-20  Upon determining whether the claim is accepted or denied, the designated

27-21  third-party administrator or insurer shall notify the injured employee, the

27-22  named employer and the division of its determination.

27-23  8.  Upon demonstration of the:

27-24  (a) Costs incurred by the designated third-party administrator or insurer

27-25  to administer the claim or pay compensation to the injured employee; or

27-26  (b) Amount that the designated third-party administrator or insurer will

27-27  pay for administrative expenses or compensation to the injured employee

27-28  and that such amounts are justified by the circumstances of the claim,

27-29  the division shall authorize payment from the uninsured employers’ claim

27-30  [fund.] account.

27-31  9.  Any party aggrieved by a determination regarding the

27-32  administration of an assigned claim or a determination made by the

27-33  division or by the designated third-party administrator or insurer regarding

27-34  any claim made pursuant to this section may appeal that determination

27-35  within 60 days after the determination is rendered to the hearings division

27-36  of the department of administration in the manner provided by NRS

27-37  616C.305 and 616C.315 to 616C.385, inclusive.

27-38  10.  All insurers shall bear a proportionate amount of a claim made

27-39  pursuant to this chapter, and are entitled to a proportionate amount of any

27-40  collection made pursuant to this section as an offset against future

27-41  liabilities.

27-42  11.  An uninsured employer is liable for the interest on any amount

27-43  paid on his claims from the uninsured employers’ claim [fund.] account.

27-44  The interest must be calculated at a rate equal to the prime rate at the

27-45  largest bank in Nevada, as ascertained by the commissioner of financial

27-46  institutions, on January 1 or July 1, as the case may be, immediately

27-47  preceding the date of the claim, plus 3 percent, compounded monthly, from

27-48  the date the claim is paid from the [fund] account until payment is received

27-49  by the division from the employer.

28-1    12.  Attorney’s fees recoverable by the division pursuant to this section

28-2  must be:

28-3    (a) If a private attorney is retained by the division, paid at the usual and

28-4  customary rate for that attorney.

28-5    (b) If the attorney is an employee of the division, paid at the rate

28-6  established by regulations adopted by the division.

28-7  Any money collected must be deposited to the uninsured employers’ claim

28-8  [fund.] account.

28-9    13.  In addition to any other liabilities provided for in this section, the

28-10  administrator may impose an administrative fine of not more than $10,000

28-11  against an employer if the employer fails to provide mandatory coverage

28-12  required by the provisions of this chapter.

28-13  Sec. 44.  NRS 227.215 and 353.145 are hereby repealed.

28-14  Sec. 45.  1.  The state controller shall, as he determines necessary to

28-15  carry out the provisions of this act, cause the transfer of any money

28-16  between funds and accounts whose designations are changed by the

28-17  provisions of this act.

28-18  2.  All rights and liabilities of a fund or account whose designation is

28-19  changed by the provisions of this act are not affected by the change in

28-20  designation and remain the rights and liabilities of the fund or account as

28-21  newly designated.

28-22  Sec. 46.  This act becomes effective on July 1, 2001.

28-23  Sec. 47.  The legislative counsel shall:

28-24  1.  In preparing the reprint and supplements to the Nevada Revised

28-25  Statutes, with respect to any section that is not amended by this act or is

28-26  further amended by another act, appropriately change any reference to any

28-27  fund or account whose designation is changed by the provisions of this act.

28-28  2.  In preparing supplements to the Nevada Administrative Code,

28-29  appropriately change any reference to any fund or account whose

28-30  designation is changed by the provisions of this act.

 

28-31  TEXT OF REPEALED SECTIONS

 

28-32  227.215  Minimum amount for drawing warrant; exceptions.

28-33   Unless the state controller determines that earlier payment is necessary,

28-34   he shall not draw a warrant for less than $25, but shall accumulate claims

28-35   for less than $25 until:

28-36  1.  The claims of a particular claimant amount to $25 or more; or

28-37  2.  The end of the fiscal year.

28-38  353.145  Renewal of claim by presentation to state board of

28-39   examiners; payment.

28-40  1.  If a state controller’s warrant has been canceled pursuant to the

28-41   provisions of NRS 353.130, after a period of 1 year from the date of the

28-42   original warrant, the person in whose favor the warrant was drawn may

29-1  renew his claim against the state, in the amount of the warrant which was

29-2  canceled, by presenting it to the state board of examiners.

29-3    2.  If approved by the state board of examiners, payment may be made

29-4   out of the stale claims account as provided in NRS 353.097.

 

29-5  H