(REPRINTED WITH ADOPTED AMENDMENTS)

 

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; 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.

1-17    2.  [In his report the] The state controller [shall] may recommend such

1-18  plans as he deems expedient for the support of the public credit, for

2-1  promoting frugality and economy, and for the better management and more

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

2-3    Sec. 2.  NRS 227.160 is hereby amended to read as follows:

2-4    227.160  1.  The state controller shall:

2-5    (a) Audit all claims against the state, for the payment of which an

2-6  appropriation or authorization has been made but of which the amount has

2-7  not been definitely fixed by law, which have been examined and passed

2-8  upon by the state board of examiners, or which have been presented to the

2-9  board and not examined and passed upon by it within 30 days from their

2-10  presentation.

2-11    (b) Allow of those claims mentioned in paragraph (a) as not having

2-12  been passed upon by the state board of examiners within 30 days after

2-13  presentation the whole, or such portion thereof as he deems just and legal;

2-14  and of claims examined and passed upon by the state board of examiners,

2-15  such an amount as he decrees just and legal not exceeding the amount

2-16  allowed by the board.

2-17    2.  No claim for services rendered or advances made to the state or any

2-18  officer thereof may be audited or allowed unless the services or

2-19  advancement have been specially authorized by law and an appropriation

2-20  or authorization made for its payment.

2-21    3.  For the purpose of satisfying himself of the justness and legality of

2-22  any claim, the state controller may examine witnesses under oath and

2-23  receive and consider documentary evidence in addition to that furnished

2-24  him by the state board of examiners. [Except as otherwise provided in NRS

2-25  227.215, he] The state controller shall draw warrants on the state treasurer

2-26  for such amounts as [he] the state controller allows of claims of the

2-27  character described in this section, and also for all claims of which the

2-28  amount has been definitely fixed by law and for the payment of which an

2-29  appropriation or authorization has been made.

2-30    Sec. 3.  NRS 227.200 is hereby amended to read as follows:

2-31    227.200  [Except as otherwise provided in NRS 227.215, the] The state

2-32  controller shall:

2-33    1.  Draw a warrant in favor of any person or governmental payee

2-34  certified by an agency of state government to receive money from the

2-35  treasury and deliver or mail the warrant to the state treasurer who shall sign

2-36  the warrant and:

2-37    (a) Deliver or mail the countersigned warrant, if it is for an account

2-38  payable, directly to the payee or his representative;

2-39    (b) [Deliver the warrant, if] If it is for payment of an employee[,] :

2-40      (1) Deliver or mail the warrant to the employee or to the appropriate

2-41  state agency for distribution; or

2-42      (2) Deposit the warrant to the credit of the employee by direct

2-43  deposit at a bank or credit union in which the employee has an account,

2-44  if the employee has authorized the direct deposit; or

2-45    (c) Deposit the warrant to the credit of the payee through a funds

2-46  transfer.

2-47    2.  Keep a warrant register, in which he shall enter all warrants drawn

2-48  by him. The arrangement of this book must be such as to show the bill and

3-1  warrant number, the amount, out of which fund the warrants are payable,

3-2  and a distribution of the warrants under the various appropriations.

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

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

3-5    232.355  1.  Except for gifts or grants specifically accounted for in

3-6  another fund, all gifts or grants of money or other property which the

3-7  divisions of the department of human resources are authorized to accept

3-8  must be accounted for in the department of human resources’ gift fund,

3-9  which is hereby created as a [trust] special revenue fund. The fund is a

3-10  continuing fund without reversion. The department may establish such

3-11  accounts in the fund as are necessary to account properly for gifts received.

3-12  All such money received by the [division] divisions must be deposited in

3-13  the state treasury for credit to the fund. The money in the fund must be paid

3-14  out on claims as other claims against the state are paid. Unless otherwise

3-15  specifically provided by statute, claims against the fund must be approved

3-16  by the director or his delegate.

3-17    2.  Gifts of property other than money may be sold or exchanged when

3-18  this is deemed by the head of the facility or agency responsible for the gift

3-19  to be in the best interest of the facility or agency. The sale price must not

3-20  be less than 90 percent of the value determined by a qualified appraiser

3-21  appointed by the head of the facility or agency. All money received from

3-22  the sale must be deposited in the state treasury to the credit of the

3-23  appropriate gift account in the department of human resources’ gift fund.

3-24  The money may be spent only for the purposes of the facility or agency

3-25  named in the title of the account. The property may not be sold or

3-26  exchanged if to do so would violate the terms of the gift.

3-27    Sec. 5.  NRS 232.960 is hereby amended to read as follows:

3-28    232.960  1.  Except for gifts or grants specifically accounted for in

3-29  another fund, all gifts or grants of money or other property which the

3-30  rehabilitation division of the department is authorized to accept must be

3-31  accounted for in the department of employment, training and

3-32  rehabilitation’s gift fund, which is hereby created as a [trust] special

3-33  revenue fund. The fund is a continuing fund without reversion. The

3-34  department may establish such accounts in the fund as are necessary to

3-35  account properly for gifts received. All such money received by the

3-36  division must be deposited in the state treasury for credit to the fund. The

3-37  money in the fund must be paid out on claims as other claims against the

3-38  state are paid. Unless otherwise specifically provided by statute, claims

3-39  against the fund must be approved by the director or his delegate.

3-40    2.  Gifts of property other than money may be sold or exchanged when

3-41  it is deemed by the director to be in the best interest of the rehabilitation

3-42  division. The sale price must not be less than 90 percent of the value

3-43  determined by a qualified appraiser appointed by the director. All money

3-44  received from the sale must be deposited in the state treasury to the credit

3-45  of the fund. The money may be spent only for the purposes of the division.

3-46  The property may not be sold or exchanged if to do so would violate the

3-47  terms of the gift.

 

 

4-1    Sec. 6.  NRS 349.952 is hereby amended to read as follows:

4-2    349.952  1.  Except as otherwise provided in subsection 3 and NRS

4-3  349.951, all amounts received by the director from an obligor in

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

4-5  349.961, inclusive, must be deposited with the state treasurer for credit to

4-6  the account for the financing of water projects which is hereby created in

4-7  the fund for [the municipal bond bank.] natural resources, which is hereby

4-8  created as a special revenue fund.

4-9    2.  Any revenue from water projects financed with state securities

4-10  which is in the account must be applied in the following order of priority:

4-11    (a) Deposited into the consolidated bond interest and redemption fund

4-12  in amounts necessary to pay the principal of, interest on and redemption

4-13  premiums due in connection with state securities issued for water projects.

4-14    (b) Deposited into any reserve account created for the payment of the

4-15  principal of, interest on and redemption premiums due in connection with

4-16  state securities issued for water projects, in amounts and at times

4-17  determined to be necessary.

4-18    (c) Paid out for expenses of operation and maintenance.

4-19    3.  Any revenue from water projects financed with revenue bonds may:

4-20    (a) Be deposited in the account for the financing of water projects and

4-21  subject to the provisions of subsection 2; or

4-22    (b) Subject to any agreement with the holders of the bonds, be invested,

4-23  deposited or held by the director in such funds or accounts as he deems

4-24  necessary or desirable. If the director is acting pursuant to this subsection,

4-25  he need not deposit the money in the state treasury and the provisions of

4-26  chapters 355 and 356 of NRS do not apply to any investments or deposits

4-27  made pursuant to this subsection.

4-28    Sec. 7.  NRS 350A.190 is hereby amended to read as follows:

4-29    350A.190  1.  All revenues from lending projects must be deposited in

4-30  the fund for the municipal bond bank in the state treasury, which is hereby

4-31  created as [a special revenue] an enterprise fund.

4-32    2.  Any revenue from lending projects which is in the fund must be

4-33  applied in the following order of priority:

4-34    (a) Deposited into the consolidated bond interest and redemption fund

4-35  created pursuant to NRS 349.090 in amounts necessary to pay the principal

4-36  of, interest on and redemption premiums due in connection with state

4-37  securities issued pursuant to this chapter.

4-38    (b) Deposited into any reserve account created for the payment of the

4-39  principal of, interest on and redemption premiums due in connection with

4-40  state securities issued pursuant to this chapter, in amounts and at times

4-41  determined to be necessary.

4-42    (c) Paid out for expenses of operation and maintenance.

4-43    (d) On July 1 of each odd-numbered year, to the extent of any

4-44  uncommitted balance in the fund, deposited in the state general fund.

4-45    Sec. 8.  Chapter 353 of NRS is hereby amended by adding thereto a

4-46  new section to read as follows:

4-47    “Generally accepted accounting principles” means generally accepted

4-48  accounting principles for government as prescribed by the Governmental

4-49  Accounting Standards Board.

5-1    Sec. 9.  NRS 353.130 is hereby amended to read as follows:

5-2    353.130  All state controller’s warrants issued in payment of claims

5-3  against the state become void if not presented for payment to the state

5-4  treasurer within 180 days after the date of issuance. All such warrants

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

5-6  outstanding or uncalled for in the office of the state controller,] must be

5-7  canceled by the state controller, and the state treasurer must be notified

5-8  immediately of the cancellation. The state treasurer shall not pay a warrant

5-9  presented for payment more than 180 days after the date of issuance.

5-10    Sec. 10.  NRS 353.140 is hereby amended to read as follows:

5-11    353.140  1.  The state controller shall establish an account for lost and

5-12  stale warrants in each fund and credit to it the amount of each warrant

5-13  canceled[.] pursuant to NRS 353.130.

5-14    2.  If a state controller’s warrant has been lost or destroyed, the person

5-15  in whose favor the warrant was drawn may, within [1 year from] 6 years

5-16  after the date of the original warrant, [file] request another warrant in lieu

5-17  of the original warrant by:

5-18    (a) Filing with the state controller an affidavit [setting] :

5-19      (1) Providing sufficient information for the state controller to

5-20  identify the original warrant;

5-21      (2) Setting forth the reasons for the failure to present the warrant for

5-22  payment ; and

5-23      (3) Affirming that the warrant is not , to the knowledge of the affiant

5-24  , held by any other person or persons[.] ; and

5-25    (b) If he files the affidavit more than 180 days after the date of the

5-26  original warrant, renewing his claim against the state.

5-27  If the state controller is satisfied that the original warrant is lost or

5-28  destroyed, and the claim has not been paid by the state, he may issue

5-29  another warrant in lieu of the original warrant . [and]

5-30    3.  If the state controller issues another warrant in lieu of an original

5-31  warrant canceled pursuant to NRS 353.130, he shall, except as otherwise

5-32  provided by specific statute, charge the amount thereof to the account for

5-33  lost and stale warrants in the fund upon which the original warrant was

5-34  drawn.

5-35    [3.] 4. In June of each year, as to each warrant whose original date is

5-36  at least [1 year] 6 years old and whose amount credited to the account for

5-37  lost and stale warrants has not been charged out as provided in subsection

5-38  [2,] 3, the state controller shall, except as otherwise [provided in subsection

5-39  4, credit] provided by specific statute, recognize as revenue in the fund

5-40  upon which the original warrant was drawn [for] an amount equivalent to

5-41  the original warrant[,] and shall charge the account for lost and stale

5-42  warrants.

5-43    [4.  The state controller shall credit the wildlife account in the state

5-44  general fund for any such warrant drawn from that account.]

5-45    Sec. 11.  NRS 353.295 is hereby amended to read as follows:

5-46    353.295  As used in the State Accounting Procedures Law, unless the

5-47  context otherwise requires, and in all accounting procedures and reports

5-48  pursuant to this chapter, the words and terms defined in NRS 353.2961 to

6-1  353.3135, inclusive, and section 8 of this act have the meanings ascribed

6-2  to them in those sections.

6-3    Sec. 12.  NRS 353.321 is hereby amended to read as follows:

6-4    353.321  1.  The state controller shall report each fund [and account

6-5  group] in one of the following categories for purposes of annual financial

6-6  statements:

6-7    (a) State general fund;

6-8    (b) Special revenue funds;

6-9    (c) [Funds for the construction of capital projects;] Capital projects

6-10  funds;

6-11    (d) [Internal service funds;

6-12    (e) Enterprise funds;

6-13    (f) Fiduciary funds;

6-14    (g)] Debt service funds;

6-15    [(h) General long-term debt account group; or

6-16    (i) General fixed assets account group.]

6-17    (e) Permanent funds;

6-18    (f) Enterprise funds;

6-19    (g) Internal service funds;

6-20    (h) Pension trust funds;

6-21    (i) Investment trust funds;

6-22    (j) Private purpose trust funds; or

6-23    (k) Agency funds.

6-24    2.  All resources and financial transactions of the state government

6-25  must be accounted for within a fund . [or account group.] The state

6-26  controller shall assign each existing fund [and account group] which is

6-27  created by statute to the proper category [unless the category is designated

6-28  by statute.] necessary to present the annual financial statements in

6-29  conformity with generally accepted accounting principles,

6-30  notwithstanding any statutory designation to the contrary.

6-31    Sec. 13.  NRS 385.095 is hereby amended to read as follows:

6-32    385.095  Except as otherwise provided in NRS 385.091:

6-33    1.  All gifts of money which the state board is authorized to accept

6-34  must be deposited in a [permanent trust] special revenue fund in the state

6-35  treasury designated as the education gift fund.

6-36    2.  The money available in the education gift fund must be used only

6-37  for the purpose specified by the donor, within the scope of the state board’s

6-38  powers and duties, and no expenditure may be made until approved by the

6-39  legislature in an authorized expenditure act or by the interim finance

6-40  committee if the legislature is not in session.

6-41    3.  If all or part of the money accepted by the state board from a donor

6-42  is not expended before the end of any fiscal year, the remaining balance of

6-43  the amount donated must remain in the education gift fund until needed for

6-44  the purpose specified by the donor.

6-45    Sec. 14.  NRS 397.063 is hereby amended to read as follows:

6-46    397.063  1.  All contributions from students must be accounted for in

6-47  the Western Interstate Commission for Higher Education’s fund for student

6-48  loans which is hereby created as [a special revenue] an enterprise fund.

7-1    2.  The three commissioners from the State of Nevada, acting jointly,

7-2  shall administer the fund and the money in the fund must be used solely to

7-3  provide:

7-4    (a) Loans to; and

7-5    (b) Contractual arrangements for educational services and facilities

7-6  for,

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

7-8  schools in accordance with the provisions of the Western Regional Higher

7-9  Education Compact.

7-10    3.  Loans from the Western Interstate Commission for Higher

7-11  Education’s fund for student loans, before July 1, 1985, and loans made to

7-12  students classified as continuing students before July 1, 1985, must be

7-13  made upon the following terms:

7-14    (a) All student loans must bear interest at 5 percent per annum from the

7-15  date when the student receives the loan.

7-16    (b) Each student receiving a loan must repay the loan with interest

7-17  following the termination of his education or completion of his internship

7-18  in accordance with the following schedule:

7-19      (1) Within 5 years for loans which total less than $10,000.

7-20      (2) Within 8 years for loans which total $10,000 or more but less than

7-21  $20,000.

7-22      (3) Within 10 years for loans which total $20,000 or more.

7-23    (c) No student loan may exceed 50 percent of the student fees for any

7-24  academic year.

7-25    Sec. 15.  NRS 407.075 is hereby amended to read as follows:

7-26    407.075  1.  The state park grant and gift fund is hereby created as a

7-27  [trust] special revenue fund for the use of the division.

7-28    2.  All grants and gifts of money which the division is authorized to

7-29  accept must be deposited with the state treasurer for credit to the state park

7-30  grant and gift fund.

7-31    3.  Expenditures from the state park grant and gift fund must be made

7-32  only for the purpose of carrying out the provisions of this chapter and other

7-33  programs or laws administered by the division.

7-34    Sec. 16.  NRS 445A.120 is hereby amended to read as follows:

7-35    445A.120  1.  The account to finance the construction of treatment

7-36  works and the implementation of pollution control projects is hereby

7-37  created in the fund for [the municipal bond bank.] water projects loans,

7-38  which is hereby created as an enterprise fund.

7-39    2.  The money in the account must be used only for the purposes set

7-40  forth in 33 U.S.C. §§ 1381 et seq.

7-41    3.  All claims against the account must be paid as other claims against

7-42  the state are paid.

7-43    4.  The faith of the state is hereby pledged that the money in the

7-44  account will not be used for purposes other than those authorized by 33

7-45  U.S.C. §§ 1381 et seq.

7-46    Sec. 17.  NRS 445A.255 is hereby amended to read as follows:

7-47    445A.255  1.  The account to finance the construction of projects, to

7-48  be known as the account for the revolving fund, is hereby created in the

7-49  fund for [the municipal bond bank.] water projects loans.

8-1    2.  The account to fund activities, other than projects, authorized by the

8-2  Safe Drinking Water Act, to be known as the account for set-aside

8-3  programs, is hereby created in the fund for the municipal bond bank.

8-4    3.  The money in the account for the revolving fund and the account for

8-5  set-aside programs may be used only for the purposes set forth in the Safe

8-6  Drinking Water Act.

8-7    4.  All claims against the account for the revolving fund and the

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

8-9  state are paid.

8-10    5.  The faith of the state is hereby pledged that the money in the

8-11  account for the revolving fund and the account for set-aside programs will

8-12  not be used for purposes other than those authorized by the Safe Drinking

8-13  Water Act.

8-14    Sec. 18.  NRS 463.331 is hereby amended to read as follows:

8-15    463.331  1.  An investigative fund is hereby created as [a special

8-16  revenue] an enterprise fund for the purposes of paying all expenses

8-17  incurred by the board and the commission for investigation of an

8-18  application for a license, finding of suitability or approval under the

8-19  provisions of this chapter. The special revenue of the investigative fund is

8-20  the money received by the state from the respective applicants. The amount

8-21  to be paid by each applicant is the amount determined by the board in each

8-22  case, but the board may not charge any amount to an applicant for a finding

8-23  of suitability to be associated with a gaming enterprise pursuant to

8-24  paragraph (a) of subsection 2 of NRS 463.167.

8-25    2.  Expenses may be advanced from the investigative fund by the

8-26  chairman, and expenditures from the fund may be made without regard to

8-27  NRS 281.160. Any money received from the applicant in excess of the

8-28  costs and charges incurred in the investigation or the processing of the

8-29  application must be refunded pursuant to regulations adopted by the board

8-30  and the commission. At the conclusion of the investigation, the board shall

8-31  give to the applicant a written accounting of the costs and charges so

8-32  incurred.

8-33    3.  Within 3 months after the end of a fiscal year, the amount of the

8-34  balance in the fund in excess of $2,000 must be deposited in the state

8-35  general fund.

8-36    Sec. 19.  NRS 616A.425 is hereby amended to read as follows:

8-37    616A.425  1.  There is hereby established in the state treasury the fund

8-38  for workers’ compensation and safety as [a special revenue] an enterprise

8-39  fund. All money received from assessments levied on insurers and

8-40  employers by the administrator pursuant to NRS 232.680 must be

8-41  deposited in this fund.

8-42    2.  All assessments, penalties, bonds, securities and all other properties

8-43  received, collected or acquired by the division for functions supported in

8-44  whole or in part from the fund must be delivered to the custody of the state

8-45  treasurer for deposit to the credit of the fund.

8-46    3.  All money and securities in the fund must be used to defray all costs

8-47  and expenses of administering the program of workmen’s compensation,

8-48  including the payment of:

9-1    (a) All salaries and other expenses in administering the division of

9-2  industrial relations, including the costs of the office and staff of the

9-3  administrator.

9-4    (b) All salaries and other expenses of administering NRS 616A.435 to

9-5  616A.460, inclusive, the offices of the hearings division of the department

9-6  of administration and the programs of self-insurance and review of

9-7  premium rates by the commissioner.

9-8    (c) The salary and other expenses of a full-time employee of the

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

9-10  research and reviewing and evaluating data related to industrial insurance.

9-11    (d) All salaries and other expenses of the fraud control unit for

9-12  industrial insurance established pursuant to NRS 228.420.

9-13    (e) Claims against uninsured employers arising from compliance with

9-14  NRS 616C.220 and 617.401.

9-15    (f) That portion of the salaries and other expenses of the office for

9-16  consumer health assistance established pursuant to NRS 223.550 that is

9-17  related to providing assistance to consumers and injured employees

9-18  concerning workers’ compensation.

9-19    4.  The state treasurer may disburse money from the fund only upon

9-20  written order of the controller.

9-21    5.  The state treasurer shall invest money of the fund in the same

9-22  manner and in the same securities in which he is authorized to invest state

9-23  general funds which are in his custody. Income realized from the

9-24  investment of the assets of the fund must be credited to the fund.

9-25    6.  The commissioner shall assign an actuary to review the

9-26  establishment of assessment rates. The rates must be filed with the

9-27  commissioner 30 days before their effective date. Any insurer or employer

9-28  who wishes to appeal the rate so filed must do so pursuant to

9-29  NRS 679B.310.

9-30    Sec. 20.  NRS 616A.430 is hereby amended to read as follows:

9-31    616A.430  1.  There is hereby established [as a special revenue fund]

9-32  in the state treasury the uninsured employers’ claim [fund,] account in the

9-33  fund for workers’ compensation and safety, which may be used only for

9-34  the purpose of making payments in accordance with the provisions of NRS

9-35  616C.220 and 617.401. The administrator shall administer the [fund]

9-36  account and shall credit any excess money toward the assessments of the

9-37  insurers for the succeeding years.

9-38    2.  All assessments, penalties, bonds, securities and all other properties

9-39  received, collected or acquired by the administrator for the uninsured

9-40  employers’ claim [fund] account must be delivered to the custody of the

9-41  state treasurer.

9-42    3.  All money and securities in the [fund] account must be held by the

9-43  state treasurer as custodian thereof to be used solely for workers’

9-44  compensation.

9-45    4.  The state treasurer may disburse money from the [fund] account

9-46  only upon written order of the state controller.

9-47    5.  The state treasurer shall invest money of the [fund] account in the

9-48  same manner and in the same securities in which he is authorized to invest

10-1  money of the state general fund. Income realized from the investment of

10-2  the assets of the [fund] account must be credited to the [fund.] account.

10-3    6.  The administrator shall assess each insurer, including each employer

10-4  who provides accident benefits for injured employees pursuant to NRS

10-5  616C.265, an amount to be deposited in the uninsured employers’ claim

10-6  [fund.] account. To establish the amount of the assessment, the

10-7  administrator shall determine the amount of money necessary to maintain

10-8  an appropriate balance in the [fund] account for each fiscal year and shall

10-9  allocate a portion of that amount to be payable by private carriers, a portion

10-10  to be payable by self-insured employers, a portion to be payable by

10-11  associations of self-insured public or private employers and a portion to be

10-12  payable by the employers who provide accident benefits pursuant to NRS

10-13  616C.265, based upon the expected annual expenditures for claims of each

10-14  group of insurers. After allocating the amounts payable, the administrator

10-15  shall apply an assessment rate to the:

10-16  (a) Private carriers that reflects the relative hazard of the employments

10-17  covered by the private carriers, results in an equitable distribution of costs

10-18  among the private carriers and is based upon expected annual premiums to

10-19  be received;

10-20  (b) Self-insured employers that results in an equitable distribution of

10-21  costs among the self-insured employers and is based upon expected annual

10-22  expenditures for claims;

10-23  (c) Associations of self-insured public or private employers that results

10-24  in an equitable distribution of costs among the associations of self-insured

10-25  public or private employers and is based upon expected annual

10-26  expenditures for claims; and

10-27  (d) Employers who provide accident benefits pursuant to NRS

10-28  616C.265 that reflects the relative hazard of the employments covered by

10-29  those employers, results in an equitable distribution of costs among the

10-30  employers and is based upon expected annual expenditures for

10-31  claims.

10-32  The administrator shall adopt regulations for the establishment and

10-33  administration of the assessment rates, payments and any penalties that the

10-34  administrator determines are necessary to carry out the provisions of this

10-35  subsection. As used in this subsection, the term “group of insurers”

10-36  includes the group of employers who provide accident benefits for injured

10-37  employees pursuant to NRS 616C.265.

10-38  7.  The commissioner shall assign an actuary to review the

10-39  establishment of assessment rates. The rates must be filed with the

10-40  commissioner 30 days before their effective date. Any insurer who wishes

10-41  to appeal the rate so filed must do so pursuant to NRS 679B.310.

10-42  Sec. 21.  NRS 616B.368 is hereby amended to read as follows:

10-43  616B.368  1.  The board of trustees of an association of self-insured

10-44  public or private employers is responsible for the money collected and

10-45  disbursed by the association.

10-46  2.  The board of trustees shall:

10-47  (a) Establish a claims account in a financial institution in this state

10-48  which is approved by the commissioner and which is federally insured or

10-49  insured by a private insurer approved pursuant to NRS 678.755. Except as

11-1  otherwise provided in subsection 3, at least 75 percent of the annual

11-2  assessment collected by the association from its members must be

11-3  deposited in this account to pay:

11-4      (1) Claims;

11-5      (2) Expenses related to those claims;

11-6      (3) The costs associated with the association’s policy of excess

11-7  insurance; and

11-8      (4) Assessments, payments and penalties related to the subsequent

11-9  injury [fund] account and the uninsured employers’ claim [fund.] account.

11-10  (b) Establish an administrative account in a financial institution in this

11-11  state which is approved by the commissioner and which is federally

11-12  insured or insured by a private insurer approved pursuant to NRS 678.755.

11-13  The amount of the annual assessment collected by the association that is

11-14  not deposited in its claims account must be deposited in this account to pay

11-15  the administrative expenses of the association.

11-16  3.  The commissioner may authorize an association to deposit less than

11-17  75 percent of its annual assessment in its claims account if the association

11-18  presents evidence to the satisfaction of the commissioner that:

11-19  (a) More than 25 percent of the association’s annual assessment is

11-20  needed to maintain its programs for loss control and occupational safety;

11-21  and

11-22  (b) The association’s policy of excess insurance attaches at less than 75

11-23  percent.

11-24  4.  The board of trustees may invest the money of the association not

11-25  needed to pay the obligations of the association pursuant to chapter 682A

11-26  of NRS.

11-27  5.  The commissioner shall review the accounts of an association

11-28  established pursuant to this section at such times as he deems necessary to

11-29  ensure compliance with the provisions of this section.

11-30  Sec. 22.  NRS 616B.545 is hereby amended to read as follows:

11-31  616B.545  As used in NRS 616B.545 to 616B.560, inclusive, unless

11-32  the context otherwise requires, “board” means the board for the

11-33  administration of the subsequent injury [fund] account for self-insured

11-34  employers created pursuant to NRS 616B.548.

11-35  Sec. 23.  NRS 616B.548 is hereby amended to read as follows:

11-36  616B.548  1.  There is hereby created the board for the administration

11-37  of the subsequent injury [fund] account for self-insured employers,

11-38  consisting of five members who are self-insured employers. The members

11-39  must be appointed by the governor.

11-40  2.  The members of the board shall elect a chairman and vice chairman

11-41  from among the members appointed. After the initial election of a

11-42  chairman and vice chairman, each of those officers shall hold office for a

11-43  term of 2 years commencing on July 1 of each odd-numbered year. If a

11-44  vacancy occurs in the chairmanship or vice chairmanship, the members of

11-45  the board shall elect a replacement for the remainder of the unexpired term.

11-46  3.  Vacancies on the board must be filled in the same manner as

11-47  original appointments.

11-48  4.  The members of the board serve without compensation.

12-1    5.  A legal counsel that has been appointed by or has contracted with

12-2  the division pursuant to NRS 232.660 shall serve as legal counsel of the

12-3  board.

12-4    Sec. 24.  NRS 616B.551 is hereby amended to read as follows:

12-5    616B.551  1.  The members of the board may meet throughout each

12-6  year at the times and places specified by a call of the chairman or a

12-7  majority of the board. The board may prescribe rules and regulations for its

12-8  own management and government. Three members of the board constitute

12-9  a quorum, and a quorum may exercise all the power and authority

12-10  conferred on the board. If a member of the board submits a claim against

12-11  the subsequent injury [fund] account for self-insured employers, that

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

12-13  board concerning that claim.

12-14  2.  The board shall administer the subsequent injury [fund] account for

12-15  self-insured employers in accordance with the provisions of NRS

12-16  616B.554, 616B.557 and 616B.560.

12-17  Sec. 25.  NRS 616B.554 is hereby amended to read as follows:

12-18  616B.554  1.  There is hereby [established as a special revenue fund]

12-19  created in the fund for workers’ compensation and safety in the state

12-20  treasury the subsequent injury [fund] account for self-insured employers,

12-21  which may be used only to make payments in accordance with the

12-22  provisions of NRS 616B.557 and 616B.560. The board shall administer the

12-23  [fund] account based upon recommendations made by the administrator

12-24  pursuant to subsection 8.

12-25  2.  All assessments, penalties, bonds, securities and all other properties

12-26  received, collected or acquired by the board for the subsequent injury

12-27  [fund] account for self-insured employers must be delivered to the custody

12-28  of the state treasurer.

12-29  3.  All money and securities in the [fund] account must be held by the

12-30  state treasurer as custodian thereof to be used solely for workers’

12-31  compensation for employees of self-insured employers.

12-32  4.  The state treasurer may disburse money from the [fund] account

12-33  only upon written order of the board.

12-34  5.  The state treasurer shall invest money of the [fund] account in the

12-35  same manner and in the same securities in which he is authorized to invest

12-36  state general funds which are in his custody. Income realized from the

12-37  investment of the assets of the [fund] account must be credited to the fund.

12-38  6.  The board shall adopt regulations for the establishment and

12-39  administration of assessment rates, payments and penalties. Assessment

12-40  rates must result in an equitable distribution of costs among the self-

12-41  insured employers and must be based upon expected annual expenditures

12-42  for claims for payments from the subsequent injury [fund] account for self-

12-43  insured employers.

12-44  7.  The commissioner shall assign an actuary to review the

12-45  establishment of assessment rates. The rates must be filed with the

12-46  commissioner 30 days before their effective date. Any self-insured

12-47  employer who wishes to appeal the rate so filed must do so pursuant to

12-48  NRS 679B.310.

 

13-1    8.  The administrator shall:

13-2    (a) Evaluate any claim submitted to the board for payment or

13-3  reimbursement from the subsequent injury [fund] account for self-insured

13-4  employers and recommend to the board any appropriate action to be taken

13-5  concerning the claim; and

13-6    (b) Submit to the board any other recommendations relating to the

13-7  [fund.] account.

13-8    Sec. 26.  NRS 616B.557 is hereby amended to read as follows:

13-9    616B.557  Except as otherwise provided in NRS 616B.560:

13-10  1.  If an employee of a self-insured employer has a permanent physical

13-11  impairment from any cause or origin and incurs a subsequent disability by

13-12  injury arising out of and in the course of his employment which entitles

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

13-14  the combined effects of the preexisting impairment and the subsequent

13-15  injury than that which would have resulted from the subsequent injury

13-16  alone, the compensation due must be charged to the subsequent injury

13-17  [fund] account for self-insured employers in accordance with regulations

13-18  adopted by the board.

13-19  2.  If the subsequent injury of such an employee results in his death and

13-20  it is determined that the death would not have occurred except for the

13-21  preexisting permanent physical impairment, the compensation due must be

13-22  charged to the subsequent injury [fund] account for self-insured employers

13-23  in accordance with regulations adopted by the board.

13-24  3.  As used in this section, “permanent physical impairment” means

13-25  any permanent condition, whether congenital or caused by injury or

13-26  disease, of such seriousness as to constitute a hindrance or obstacle to

13-27  obtaining employment or to obtaining reemployment if the employee is

13-28  unemployed. For the purposes of this section, a condition is not a

13-29  “permanent physical impairment” unless it would support a rating of

13-30  permanent impairment of 6 percent or more of the whole man if evaluated

13-31  according to the American Medical Association’s Guides to the Evaluation

13-32  of Permanent Impairment as adopted and supplemented by the division

13-33  pursuant to NRS 616C.110.

13-34  4.  To qualify under this section for reimbursement from the

13-35  subsequent injury [fund] account for self-insured employers, the self-

13-36  insured employer must establish by written records that the self-insured

13-37  employer had knowledge of the “permanent physical impairment” at the

13-38  time the employee was hired or that the employee was retained in

13-39  employment after the self-insured employer acquired such knowledge.

13-40  5.  A self-insured employer shall notify the board of any possible claim

13-41  against the subsequent injury [fund] account for self-insured employers as

13-42  soon as practicable, but not later than 100 weeks after the injury or death.

13-43  6.  The board shall adopt regulations establishing procedures for

13-44  submitting claims against the subsequent injury [fund] account for self-

13-45  insured employers. The board shall notify the self-insured employer of his

13-46  decision on such a claim within 90 days after the claim is received.

13-47  7.  An appeal of any decision made concerning a claim against the

13-48  subsequent injury [fund] account for self-insured employers must be

13-49  submitted directly to the district court.

14-1    Sec. 27.  NRS 616B.560 is hereby amended to read as follows:

14-2    616B.560  1.  A self-insured employer who pays compensation due to

14-3  an employee who has a permanent physical impairment from any cause or

14-4  origin and incurs a subsequent disability by injury arising out of and in the

14-5  course of his employment which entitles him to compensation for disability

14-6  that is substantially greater by reason of the combined effects of the

14-7  preexisting impairment and the subsequent injury than that which would

14-8  have resulted from the subsequent injury alone is entitled to be reimbursed

14-9  from the subsequent injury [fund] account for self-insured employers if:

14-10  (a) The employee knowingly made a false representation as to his

14-11  physical condition at the time he was hired by the self-insured employer;

14-12  (b) The self-insured employer relied upon the false representation and

14-13  this reliance formed a substantial basis of the employment; and

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

14-15  subsequent disability.

14-16  If the subsequent injury of the employee results in his death and it is

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

14-18  preexisting permanent physical impairment, any compensation paid is

14-19  entitled to be reimbursed from the subsequent injury [fund] account for

14-20  self-insured employers.

14-21  2.  A self-insured employer shall notify the board of any possible claim

14-22  against the subsequent injury [fund] account for self-insured employers

14-23  pursuant to this section no later than 60 days after the date of the

14-24  subsequent injury or the date the self-insured employer learns of the

14-25  employee’s false representation, whichever is later.

14-26  Sec. 28.  NRS 616B.563 is hereby amended to read as follows:

14-27  616B.563  As used in NRS 616B.563 to 616B.581, inclusive, unless

14-28  the context otherwise requires, “board” means the board for the

14-29  administration of the subsequent injury [fund] account for associations of

14-30  self-insured public or private employers created pursuant to

14-31  NRS 616B.569.

14-32  Sec. 29.  NRS 616B.569 is hereby amended to read as follows:

14-33  616B.569  1.  There is hereby created the board for the administration

14-34  of the subsequent injury [fund] account for associations of self-insured

14-35  public or private employers, consisting of five members who are members

14-36  of an association of self-insured public or private employers. The members

14-37  of the board must be appointed by the governor.

14-38  2.  The members of the board shall elect a chairman and vice chairman

14-39  from among the members appointed. After the initial election of a

14-40  chairman and vice chairman, each of those officers shall hold office for a

14-41  term of 2 years commencing on July 1 of each odd-numbered year. If a

14-42  vacancy occurs in the chairmanship or vice chairmanship, the members of

14-43  the board shall elect a replacement for the remainder of the unexpired term.

14-44  3.  Vacancies on the board must be filled in the same manner as

14-45  original appointments.

14-46  4.  The members of the board serve without compensation.

14-47  5.  A legal counsel that has been appointed by or has contracted with

14-48  the division pursuant to NRS 232.660 shall serve as legal counsel of the

14-49  board.

15-1    Sec. 30.  NRS 616B.572 is hereby amended to read as follows:

15-2    616B.572  1.  The members of the board may meet throughout each

15-3  year at the times and places specified by a call of the chairman or a

15-4  majority of the board. The board may prescribe rules and regulations for its

15-5  own management and government. Three members of the board constitute

15-6  a quorum, and a quorum may exercise all the power and authority

15-7  conferred on the board. If a member of the board submits a claim against

15-8  the subsequent injury [fund] account for associations of self-insured public

15-9  or private employers, that member shall not vote on or otherwise

15-10  participate in the decision of the board concerning that claim.

15-11  2.  The board shall administer the subsequent injury [fund] account for

15-12  associations of self-insured public or private employers in accordance with

15-13  the provisions of NRS 616B.575, 616B.578 and 616B.581.

15-14  Sec. 31.  NRS 616B.575 is hereby amended to read as follows:

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

15-16  created in the fund for workers’ compensation and safety in the state

15-17  treasury the subsequent injury [fund] account for associations of self-

15-18  insured public or private employers, which may be used only to make

15-19  payments in accordance with the provisions of NRS 616B.578 and

15-20  616B.581. The board shall administer the [fund] account based upon

15-21  recommendations made by the administrator pursuant to subsection 8.

15-22  2.  All assessments, penalties, bonds, securities and all other properties

15-23  received, collected or acquired by the board for the subsequent injury

15-24  [fund] account for associations of self-insured public or private employers

15-25  must be delivered to the custody of the state treasurer.

15-26  3.  All money and securities in the [fund] account must be held by the

15-27  state treasurer as custodian thereof to be used solely for workers’

15-28  compensation for employees of members of associations of self-insured

15-29  public or private employers.

15-30  4.  The state treasurer may disburse money from the [fund] account

15-31  only upon written order of the board.

15-32  5.  The state treasurer shall invest money of the [fund] account in the

15-33  same manner and in the same securities in which he is authorized to invest

15-34  state general funds which are in his custody. Income realized from the

15-35  investment of the assets of the [fund] account must be credited to the

15-36  [fund.] account.

15-37  6.  The board shall adopt regulations for the establishment and

15-38  administration of assessment rates, payments and penalties. Assessment

15-39  rates must result in an equitable distribution of costs among the

15-40  associations of self-insured public or private employers and must be based

15-41  upon expected annual expenditures for claims for payments from the

15-42  subsequent injury [fund] account for associations of self-insured public or

15-43  private employers.

15-44  7.  The commissioner shall assign an actuary to review the

15-45  establishment of assessment rates. The rates must be filed with the

15-46  commissioner 30 days before their effective date. Any association of self-

15-47  insured public or private employers that wishes to appeal the rate so filed

15-48  must do so pursuant to NRS 679B.310.

 

16-1    8.  The administrator shall:

16-2    (a) Evaluate any claim submitted to the board for payment or

16-3  reimbursement from the subsequent injury [fund] account for associations

16-4  of self-insured public or private employers and recommend to the board

16-5  any appropriate action to be taken concerning the claim; and

16-6    (b) Submit to the board any other recommendations relating to the

16-7  [fund.] account.

16-8    Sec. 32.  NRS 616B.578 is hereby amended to read as follows:

16-9    616B.578  Except as otherwise provided in NRS 616B.581:

16-10  1.  If an employee of a member of an association of self-insured public

16-11  or private employers has a permanent physical impairment from any cause

16-12  or origin and incurs a subsequent disability by injury arising out of and in

16-13  the course of his employment which entitles him to compensation for

16-14  disability that is substantially greater by reason of the combined effects of

16-15  the preexisting impairment and the subsequent injury than that which

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

16-17  due must be charged to the subsequent injury [fund] account for

16-18  associations of self-insured public or private employers in accordance with

16-19  regulations adopted by the board.

16-20  2.  If the subsequent injury of such an employee results in his death and

16-21  it is determined that the death would not have occurred except for the

16-22  preexisting permanent physical impairment, the compensation due must be

16-23  charged to the subsequent injury [fund] account for associations of self-

16-24  insured public or private employers in accordance with regulations adopted

16-25  by the board.

16-26  3.  As used in this section, “permanent physical impairment” means

16-27  any permanent condition, whether congenital or caused by injury or

16-28  disease, of such seriousness as to constitute a hindrance or obstacle to

16-29  obtaining employment or to obtaining reemployment if the employee is

16-30  unemployed. For the purposes of this section, a condition is not a

16-31  “permanent physical impairment” unless it would support a rating of

16-32  permanent impairment of 6 percent or more of the whole man if evaluated

16-33  according to the American Medical Association’s Guides to the Evaluation

16-34  of Permanent Impairment as adopted and supplemented by the division

16-35  pursuant to NRS 616C.110.

16-36  4.  To qualify under this section for reimbursement from the

16-37  subsequent injury [fund] account for associations of self-insured public or

16-38  private employers, the association of self-insured public or private

16-39  employers must establish by written records that the employer had

16-40  knowledge of the “permanent physical impairment” at the time the

16-41  employee was hired or that the employee was retained in employment after

16-42  the employer acquired such knowledge.

16-43  5.  An association of self-insured public or private employers shall

16-44  notify the board of any possible claim against the subsequent injury [fund]

16-45  account for associations of self-insured public or private employers as

16-46  soon as practicable, but not later than 100 weeks after the injury or death.

16-47  6.  The board shall adopt regulations establishing procedures for

16-48  submitting claims against the subsequent injury [fund] account for

16-49  associations of self-insured public or private employers. The board shall

17-1  notify the association of self-insured public or private employers of its

17-2  decision on such a claim within 90 days after the claim is received.

17-3    7.  An appeal of any decision made concerning a claim against the

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

17-5  private employers must be submitted directly to the district court.

17-6    Sec. 33.  NRS 616B.581 is hereby amended to read as follows:

17-7    616B.581  1.  An association of self-insured public or private

17-8  employers that pays compensation due to an employee who has a

17-9  permanent physical impairment from any cause or origin and incurs a

17-10  subsequent disability by injury arising out of and in the course of his

17-11  employment which entitles him to compensation for disability that is

17-12  substantially greater by reason of the combined effects of the preexisting

17-13  impairment and the subsequent injury than that which would have resulted

17-14  from the subsequent injury alone is entitled to be reimbursed from the

17-15  subsequent injury [fund] account for associations of self-insured public or

17-16  private employers if:

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

17-18  physical condition at the time he was hired by the member of the

17-19  association of self-insured public or private employers;

17-20  (b) The employer relied upon the false representation and this reliance

17-21  formed a substantial basis of the employment; and

17-22  (c) A causal connection existed between the false representation and the

17-23  subsequent disability.

17-24  If the subsequent injury of the employee results in his death and it is

17-25  determined that the death would not have occurred except for the

17-26  preexisting permanent physical impairment, any compensation paid is

17-27  entitled to be reimbursed from the subsequent injury [fund] account for

17-28  associations of self-insured public or private employers.

17-29  2.  An association of self-insured public or private employers shall

17-30  notify the board of any possible claim against the subsequent injury [fund]

17-31  account for associations of self-insured public or private employers

17-32  pursuant to this section no later than 60 days after the date of the

17-33  subsequent injury or the date the employer learns of the employee’s false

17-34  representation, whichever is later.

17-35  Sec. 34.  NRS 616B.584 is hereby amended to read as follows:

17-36  616B.584  1.  There is hereby [established as a special revenue fund]

17-37  created in the fund for workers’ compensation and safety in the state

17-38  treasury the subsequent injury [fund] account for private carriers, which

17-39  may be used only to make payments in accordance with the provisions of

17-40  NRS 616B.587 and 616B.590. The administrator shall administer the

17-41  [fund.] account.

17-42  2.  All assessments, penalties, bonds, securities and all other properties

17-43  received, collected or acquired by the administrator for the subsequent

17-44  injury [fund] account for private carriers must be delivered to the custody

17-45  of the state treasurer.

17-46  3.  All money and securities in the [fund] account must be held by the

17-47  state treasurer as custodian thereof to be used solely for workers’

17-48  compensation for employees whose employers are insured by private

17-49  carriers.

18-1    4.  The state treasurer may disburse money from the [fund] account

18-2  only upon written order of the state controller.

18-3    5.  The state treasurer shall invest money of the [fund] account in the

18-4  same manner and in the same securities in which he is authorized to invest

18-5  state general funds which are in his custody. Income realized from the

18-6  investment of the assets of the [fund] account must be credited to the

18-7  [fund.] account.

18-8    6.  The administrator shall adopt regulations for the establishment and

18-9  administration of assessment rates, payments and penalties. Assessment

18-10  rates must reflect the relative hazard of the employments covered by

18-11  private carriers, must result in an equitable distribution of costs among the

18-12  private carriers and must be based upon expected annual premiums to be

18-13  received.

18-14  7.  The commissioner shall assign an actuary to review the

18-15  establishment of assessment rates. The rates must be filed with the

18-16  commissioner 30 days before their effective date. Any private carrier who

18-17  wishes to appeal the rate so filed must do so pursuant to NRS 679B.310.

18-18  Sec. 35.  NRS 616B.587 is hereby amended to read as follows:

18-19  616B.587  Except as otherwise provided in NRS 616B.590:

18-20  1.  If an employee of an employer who is insured by a private carrier

18-21  has a permanent physical impairment from any cause or origin and incurs a

18-22  subsequent disability by injury arising out of and in the course of his

18-23  employment which entitles him to compensation for disability that is

18-24  substantially greater by reason of the combined effects of the preexisting

18-25  impairment and the subsequent injury than that which would have resulted

18-26  from the subsequent injury alone, the compensation due must be charged to

18-27  the subsequent injury [fund] account for private carriers in accordance

18-28  with regulations adopted by the administrator.

18-29  2.  If the subsequent injury of such an employee results in his death and

18-30  it is determined that the death would not have occurred except for the

18-31  preexisting permanent physical impairment, the compensation due must be

18-32  charged to the subsequent injury [fund] account for private carriers in

18-33  accordance with regulations adopted by the administrator.

18-34  3.  As used in this section, “permanent physical impairment” means

18-35  any permanent condition, whether congenital or caused by injury or

18-36  disease, of such seriousness as to constitute a hindrance or obstacle to

18-37  obtaining employment or to obtaining reemployment if the employee is

18-38  unemployed. For the purposes of this section, a condition is not a

18-39  “permanent physical impairment” unless it would support a rating of

18-40  permanent impairment of 6 percent or more of the whole man if evaluated

18-41  according to the American Medical Association’s Guides to the Evaluation

18-42  of Permanent Impairment as adopted and supplemented by the division

18-43  pursuant to NRS 616C.110.

18-44  4.  To qualify under this section for reimbursement from the

18-45  subsequent injury [fund] account for private carriers, the private carrier

18-46  must establish by written records that the employer had knowledge of the

18-47  “permanent physical impairment” at the time the employee was hired or

18-48  that the employee was retained in employment after the employer acquired

18-49  such knowledge.

19-1    5.  A private carrier shall notify the administrator of any possible claim

19-2  against the subsequent injury [fund] account for private carriers as soon as

19-3  practicable, but not later than 100 weeks after the injury or death.

19-4    6.  The administrator shall adopt regulations establishing procedures

19-5  for submitting claims against the subsequent injury [fund] account for

19-6  private carriers. The administrator shall notify the private carrier of his

19-7  decision on such a claim within 90 days after the claim is received.

19-8    7.  An appeal of any decision made concerning a claim against the

19-9  subsequent injury [fund] account for private carriers must be submitted

19-10  directly to the appeals officer. The appeals officer shall hear such an appeal

19-11  within 45 days after the appeal is submitted to him.

19-12  Sec. 36.  NRS 616B.590 is hereby amended to read as follows:

19-13  616B.590  1.  A private carrier who pays compensation due to an

19-14  employee who has a permanent physical impairment from any cause or

19-15  origin and incurs a subsequent disability by injury arising out of and in the

19-16  course of his employment which entitles him to compensation for disability

19-17  that is substantially greater by reason of the combined effects of the

19-18  preexisting impairment and the subsequent injury than that which would

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

19-20  from the subsequent injury [fund] account for private carriers if:

19-21  (a) The employee knowingly made a false representation as to his

19-22  physical condition at the time he was hired by the employer insured by a

19-23  private carrier;

19-24  (b) The employer relied upon the false representation and this reliance

19-25  formed a substantial basis of the employment; and

19-26  (c) A causal connection existed between the false representation and the

19-27  subsequent disability.

19-28  If the subsequent injury of the employee results in his death and it is

19-29  determined that the death would not have occurred except for the

19-30  preexisting permanent physical impairment, any compensation paid is

19-31  entitled to be reimbursed from the subsequent injury [fund] account for

19-32  private carriers.

19-33  2.  A private carrier shall notify the administrator of any possible claim

19-34  against the subsequent injury [fund] account for private carriers pursuant

19-35  to this section no later than 60 days after the date of the subsequent injury

19-36  or the date the employer learns of the employee’s false representation,

19-37  whichever is later.

19-38  Sec. 37.  NRS 616C.215 is hereby amended to read as follows:

19-39  616C.215  1.  If an injured employee or, in the event of his death, his

19-40  dependents, bring an action in tort against his employer to recover payment

19-41  for an injury which is compensable pursuant to the provisions of chapters

19-42  616A to 616D, inclusive, or chapter 617 of NRS and, notwithstanding the

19-43  provisions of NRS 616A.020, receive payment from the employer for that

19-44  injury:

19-45  (a) The amount of compensation the injured employee or his dependents

19-46  are entitled to receive pursuant to the provisions of chapters 616A to 616D,

19-47  inclusive, or chapter 617 of NRS, including any future compensation, must

19-48  be reduced by the amount paid by the employer.

20-1    (b) The insurer, or in the case of claims involving the uninsured

20-2  employer’s claim [fund] account or a subsequent injury [fund] account the

20-3  administrator, has a lien upon the total amount paid by the employer if the

20-4  injured employee or his dependents receive compensation pursuant to the

20-5  provisions of chapters 616A to 616D, inclusive, or chapter 617 of

20-6  NRS.

20-7  This subsection is applicable whether the money paid to the employee or

20-8  his dependents by the employer is classified as a gift, a settlement or

20-9  otherwise. The provisions of this subsection do not grant to an injured

20-10  employee any right of action in tort to recover damages from his employer

20-11  for his injury.

20-12  2.  When an employee receives an injury for which compensation is

20-13  payable pursuant to the provisions of chapters 616A to 616D, inclusive, or

20-14  chapter 617 of NRS and which was caused under circumstances creating a

20-15  legal liability in some person, other than the employer or a person in the

20-16  same employ, to pay damages in respect thereof:

20-17  (a) The injured employee, or in case of death his dependents, may take

20-18  proceedings against that person to recover damages, but the amount of the

20-19  compensation the injured employee or his dependents are entitled to

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

20-21  chapter 617 of NRS, including any future compensation, must be reduced

20-22  by the amount of the damages recovered, notwithstanding any act or

20-23  omission of the employer or a person in the same employ which was a

20-24  direct or proximate cause of the employee’s injury.

20-25  (b) If the injured employee, or in case of death his dependents, receive

20-26  compensation pursuant to the provisions of chapters 616A to 616D,

20-27  inclusive, or chapter 617 of NRS, the insurer, or in case of claims involving

20-28  the uninsured employers’ claim [fund] account or a subsequent injury

20-29  [fund] account the administrator, has a right of action against the person so

20-30  liable to pay damages and is subrogated to the rights of the injured

20-31  employee or of his dependents to recover therefor.

20-32  3.  When an injured employee incurs an injury for which compensation

20-33  is payable pursuant to the provisions of chapters 616A to 616D, inclusive,

20-34  or chapter 617 of NRS and which was caused under circumstances entitling

20-35  him, or in the case of death his dependents, to receive proceeds under his

20-36  employer’s policy of uninsured or underinsured vehicle coverage:

20-37  (a) The injured employee, or in the case of death his dependents, may

20-38  take proceedings to recover those proceeds, but the amount of

20-39  compensation the injured employee or his dependents are entitled to

20-40  receive pursuant to the provisions of chapters 616A to 616D, inclusive, or

20-41  chapter 617 of NRS, including any future compensation, must be reduced

20-42  by the amount of proceeds received.

20-43  (b) If an injured employee, or in the case of death his dependents,

20-44  receive compensation pursuant to the provisions of chapters 616A to 616D,

20-45  inclusive, or chapter 617 of NRS, the insurer, or in the case of claims

20-46  involving the uninsured employers’ claim [fund] account or a subsequent

20-47  injury [fund] account the administrator, is subrogated to the rights of the

20-48  injured employee or his dependents to recover proceeds under the

20-49  employer’s policy of uninsured or underinsured vehicle coverage. The

21-1  insurer and the administrator are not subrogated to the rights of an injured

21-2  employee or his dependents under a policy of uninsured or underinsured

21-3  vehicle coverage purchased by the employee.

21-4    4.  In any action or proceedings taken by the insurer or the

21-5  administrator pursuant to this section, evidence of the amount of

21-6  compensation, accident benefits and other expenditures which the insurer,

21-7  the uninsured employers’ claim [fund] account or a subsequent injury

21-8  [fund] account have paid or become obligated to pay by reason of the

21-9  injury or death of the employee is admissible. If in such action or

21-10  proceedings the insurer or the administrator recovers more than those

21-11  amounts, the excess must be paid to the injured employee or his

21-12  dependents.

21-13  5.  In any case where the insurer or the administrator is subrogated to

21-14  the rights of the injured employee or of his dependents as provided in

21-15  subsection 2 or 3, the insurer or the administrator has a lien upon the total

21-16  proceeds of any recovery from some person other than the employer,

21-17  whether the proceeds of such recovery are by way of judgment, settlement

21-18  or otherwise. The injured employee, or in the case of his death his

21-19  dependents, are not entitled to double recovery for the same injury,

21-20  notwithstanding any act or omission of the employer or a person in the

21-21  same employ which was a direct or proximate cause of the employee’s

21-22  injury.

21-23  6.  The lien provided for pursuant to subsection 1 or 5 includes the total

21-24  compensation expenditure incurred by the insurer, the uninsured

21-25  employers’ claim [fund] account or a subsequent injury [fund] account for

21-26  the injured employee and his dependents.

21-27  7.  An injured employee, or in the case of death his dependents, or the

21-28  attorney or representative of the injured employee or his dependents, shall

21-29  notify the insurer, or in the case of claims involving the uninsured

21-30  employers’ claim [fund] account or a subsequent injury [fund] account the

21-31  administrator, in writing before initiating a proceeding or action pursuant

21-32  to this section.

21-33  8.  Within 15 days after the date of recovery by way of actual receipt of

21-34  the proceeds of the judgment, settlement or otherwise:

21-35  (a) The injured employee or his dependents, or the attorney or

21-36  representative of the injured employee or his dependents; and

21-37  (b) The third-party insurer,

21-38  shall notify the insurer, or in the case of claims involving the uninsured

21-39  employers’ claim [fund] account or a subsequent injury [fund] account the

21-40  administrator, of the recovery and pay to the insurer or the administrator,

21-41  respectively, the amount due pursuant to this section together with an

21-42  itemized statement showing the distribution of the total recovery. The

21-43  attorney or representative of the injured employee or his dependents and

21-44  the third-party insurer are jointly and severally liable for any amount to

21-45  which an insurer is entitled pursuant to this section if the attorney,

21-46  representative or third-party insurer has knowledge of the lien provided for

21-47  in this section.

21-48  9.  An insurer shall not sell its lien to a third-party insurer unless the

21-49  injured employee or his dependents, or the attorney or representative of the

22-1  injured employee or his dependents, refuses to provide to the insurer

22-2  information concerning the action against the third party.

22-3    10.  In any trial of an action by the injured employee, or in the case of

22-4  his death by his dependents, against a person other than the employer or a

22-5  person in the same employ, the jury must receive proof of the amount of all

22-6  payments made or to be made by the insurer or the administrator. The court

22-7  shall instruct the jury substantially as follows:

22-8  Payment of workmen’s compensation benefits by the insurer, or in

22-9  the case of claims involving the uninsured employers’ claim [fund]

22-10  account or a subsequent injury [fund] account the administrator, is

22-11  based upon the fact that a compensable industrial accident occurred,

22-12  and does not depend upon blame or fault. If the plaintiff does not

22-13  obtain a judgment in his favor in this case, he is not required to repay

22-14  his employer, the insurer or the administrator any amount paid to him

22-15  or paid on his behalf by his employer, the insurer or the administrator.

22-16           If you decide that the plaintiff is entitled to judgment against the

22-17  defendant, you shall find his damages in accordance with the court’s

22-18  instructions on damages and return your verdict in the plaintiff’s favor

22-19  in the amount so found without deducting the amount of any

22-20  compensation benefits paid to or for the plaintiff. The law provides a

22-21  means by which any compensation benefits will be repaid from your

22-22  award.

22-23  11.  To calculate an employer’s premium, the employer’s account with

22-24  the private carrier must be credited with an amount equal to that recovered

22-25  by the private carrier from a third party pursuant to this section, less the

22-26  private carrier’s share of the expenses of litigation incurred in obtaining the

22-27  recovery, except that the total credit must not exceed the amount of

22-28  compensation actually paid or reserved by the private carrier on the injured

22-29  employee’s claim.

22-30  12.  As used in this section, “third-party insurer” means an insurer that

22-31  issued to a third party who is liable for damages pursuant to subsection 2, a

22-32  policy of liability insurance the proceeds of which are recoverable pursuant

22-33  to this section. The term includes an insurer that issued to an employer a

22-34  policy of uninsured or underinsured vehicle coverage.

22-35  Sec. 38.  NRS 616C.220 is hereby amended to read as follows:

22-36  616C.220  1.  The division shall designate one:

22-37  (a) Third-party administrator who has a valid certificate issued by the

22-38  commissioner pursuant to NRS 683A.085; or

22-39  (b) Insurer, other than a self-insured employer or association of self-

22-40  insured public or private employers,

22-41  to administer claims against the uninsured employers’ claim [fund.]

22-42  account. The designation must be made pursuant to reasonable competitive

22-43  bidding procedures established by the administrator.

22-44  2.  An employee may receive compensation from the uninsured

22-45  employers’ claim [fund] account if:

22-46  (a) He was hired in this state or he is regularly employed in this state;

22-47  (b) He suffers an accident or injury in this state which arises out of and

22-48  in the course of his employment;

22-49  (c) He files a claim for compensation with the division; and

23-1    (d) He makes an irrevocable assignment to the division of a right to be

23-2  subrogated to the rights of the injured employee pursuant to

23-3  NRS 616C.215.

23-4    3.  If the division receives a claim pursuant to subsection 2, the division

23-5  shall immediately notify the employer of the claim.

23-6    4.  For the purposes of this section, the employer has the burden of

23-7  proving that he provided mandatory industrial insurance coverage for the

23-8  employee or that he was not required to maintain industrial insurance for

23-9  the employee.

23-10  5.  Any employer who has failed to provide mandatory coverage

23-11  required by the provisions of chapters 616A to 616D, inclusive, of NRS is

23-12  liable for all payments made on his behalf, including any benefits,

23-13  administrative costs or attorney’s fees paid from the uninsured employers’

23-14  claim [fund] account or incurred by the division.

23-15  6.  The division:

23-16  (a) May recover from the employer the payments made by the division

23-17  that are described in subsection 5 and any accrued interest by bringing a

23-18  civil action in district court.

23-19  (b) In any civil action brought against the employer, is not required to

23-20  prove that negligent conduct by the employer was the cause of the

23-21  employee’s injury.

23-22  (c) May enter into a contract with any person to assist in the collection

23-23  of any liability of an uninsured employer.

23-24  (d) In lieu of a civil action, may enter into an agreement or settlement

23-25  regarding the collection of any liability of an uninsured employer.

23-26  7.  The division shall:

23-27  (a) Determine whether the employer was insured within 30 days after

23-28  receiving notice of the claim from the employee.

23-29  (b) Assign the claim to the third-party administrator or insurer

23-30  designated pursuant to subsection 1 for administration and payment of

23-31  compensation.

23-32  Upon determining whether the claim is accepted or denied, the designated

23-33  third-party administrator or insurer shall notify the injured employee, the

23-34  named employer and the division of its determination.

23-35  8.  Upon demonstration of the:

23-36  (a) Costs incurred by the designated third-party administrator or insurer

23-37  to administer the claim or pay compensation to the injured employee; or

23-38  (b) Amount that the designated third-party administrator or insurer will

23-39  pay for administrative expenses or compensation to the injured employee

23-40  and that such amounts are justified by the circumstances of the claim,

23-41  the division shall authorize payment from the uninsured employers’ claim

23-42  [fund.] account.

23-43  9.  Any party aggrieved by a determination regarding the

23-44  administration of an assigned claim or a determination made by the

23-45  division or by the designated third-party administrator or insurer regarding

23-46  any claim made pursuant to this section may appeal that determination

23-47  within 60 days after the determination is rendered to the hearings division

23-48  of the department of administration in the manner provided by NRS

23-49  616C.305 and 616C.315 to 616C.385, inclusive.

24-1    10.  All insurers shall bear a proportionate amount of a claim made

24-2  pursuant to chapters 616A to 616D, inclusive, of NRS, and are entitled to a

24-3  proportionate amount of any collection made pursuant to this section as an

24-4  offset against future liabilities.

24-5    11.  An uninsured employer is liable for the interest on any amount

24-6  paid on his claims from the uninsured employers’ claim [fund.] account.

24-7  The interest must be calculated at a rate equal to the prime rate at the

24-8  largest bank in Nevada, as ascertained by the commissioner of financial

24-9  institutions, on January 1 or July 1, as the case may be, immediately

24-10  preceding the date of the claim, plus 3 percent, compounded monthly, from

24-11  the date the claim is paid from the [fund] account until payment is received

24-12  by the division from the employer.

24-13  12.  Attorney’s fees recoverable by the division pursuant to this section

24-14  must be:

24-15  (a) If a private attorney is retained by the division, paid at the usual and

24-16  customary rate for that attorney.

24-17  (b) If the attorney is an employee of the division, paid at the rate

24-18  established by regulations adopted by the division.

24-19  Any money collected must be deposited to the uninsured employers’ claim

24-20  [fund.] account.

24-21  13.  In addition to any other liabilities provided for in this section, the

24-22  administrator may impose an administrative fine of not more than $10,000

24-23  against an employer if the employer fails to provide mandatory coverage

24-24  required by the provisions of chapters 616A to 616D, inclusive, of NRS.

24-25  Sec. 39.  NRS 616D.200 is hereby amended to read as follows:

24-26  616D.200  1.  If the administrator finds that an employer within the

24-27  provisions of NRS 616B.633 has failed to provide and secure

24-28  compensation as required by the terms of chapters 616A to 616D,

24-29  inclusive, or chapter 617 of NRS or that the employer has provided and

24-30  secured that compensation but has failed to maintain it, he shall make a

24-31  determination thereon and may charge the employer an amount equal to the

24-32  sum of:

24-33  (a) The premiums that would otherwise have been owed to a private

24-34  carrier pursuant to the terms of chapters 616A to 616D, inclusive, or

24-35  chapter 617 of NRS, as determined by the administrator based upon the

24-36  manual rates adopted by the commissioner, for the period that the employer

24-37  was doing business in this state without providing, securing or maintaining

24-38  that compensation, but not to exceed 6 years; and

24-39  (b) Interest at a rate determined pursuant to NRS 17.130 computed from

24-40  the time that the premiums should have been paid.

24-41  The money collected pursuant to this subsection must be paid into the

24-42  uninsured employers’ claim [fund.] account.

24-43  2.  The administrator shall deliver a copy of his determination to the

24-44  employer. An employer who is aggrieved by the determination of the

24-45  administrator may appeal from the determination pursuant to subsection 2

24-46  of NRS 616D.220.

24-47  3.  Any employer within the provisions of NRS 616B.633 who fails to

24-48  provide, secure or maintain compensation as required by the terms of

25-1  chapters 616A to 616D, inclusive, or chapter 617 of NRS, shall be

25-2  punished as follows:

25-3    (a) Except as otherwise provided in paragraph (b), if it is a first offense,

25-4  for a misdemeanor.

25-5    (b) If it is a first offense and, during the period the employer was doing

25-6  business in this state without providing, securing or maintaining

25-7  compensation, one of his employees suffers an injury arising out of and in

25-8  the course of his employment that results in substantial bodily harm to the

25-9  employee or the death of the employee, for a category C felony punishable

25-10  by imprisonment in the state prison for a minimum term of not less than 1

25-11  year and a maximum term of not more than 5 years and by a fine of not

25-12  less than $1,000 nor more than $50,000.

25-13  (c) If it is a second or subsequent offense committed within 7 years after

25-14  the previous offense, for a category C felony punishable by imprisonment

25-15  in the state prison for a minimum term of not less than 1 year and a

25-16  maximum term of not more than 5 years and by a fine of not less than

25-17  $1,000 nor more than $50,000.

25-18  4.  In addition to any other penalty imposed pursuant to paragraph (b)

25-19  or (c) of subsection 3, the court shall order the employer to:

25-20  (a) Pay restitution to an insurer who has incurred costs as a result of the

25-21  violation in an amount equal to the costs that have been incurred minus any

25-22  costs incurred that have otherwise been recovered; and

25-23  (b) Reimburse the uninsured employers’ claim [fund] account for all

25-24  payments made from the [fund] account on the employer’s behalf,

25-25  including any benefits, administrative costs or attorney’s fees paid from the

25-26  [fund,] account, that have not otherwise been recovered pursuant to

25-27  NRS 616C.220.

25-28  5.  Any criminal penalty imposed pursuant to subsections 3 and 4 must

25-29  be in addition to the amount charged pursuant to subsection 1.

25-30  Sec. 40.  NRS 616D.220 is hereby amended to read as follows:

25-31  616D.220  1.  If the administrator finds that any employer or any

25-32  employee, officer or agent of any employer has knowingly:

25-33  (a) Made a false statement or has knowingly failed to report a material

25-34  fact concerning the amount of payroll upon which a premium is based; or

25-35  (b) Misrepresented the classification or duties of an employee,

25-36  he shall make a determination thereon and charge the employer’s account

25-37  an amount equal to the amount of the premium that would have been due

25-38  had the proper information been submitted. The administrator shall deliver

25-39  a copy of his determination to the employer. The money collected pursuant

25-40  to this subsection must be paid into the uninsured employers’ claim [fund.]

25-41  account.

25-42  2.  An employer who is aggrieved by the determination of the

25-43  administrator may appeal from the determination by filing a request for a

25-44  hearing. The request must be filed within 30 days after the date on which a

25-45  copy of the determination was delivered to the employer. The administrator

25-46  shall hold a hearing within 30 days after he receives the request. The

25-47  determination of the administrator made pursuant to a hearing is a final

25-48  decision for the purposes of judicial review. The amount of the

26-1  determination as finally decided by the administrator becomes due within

26-2  30 days after the determination is served on the employer.

26-3    3.  A person who knowingly:

26-4    (a) Makes a false statement or representation or who knowingly fails to

26-5  report a material fact concerning the amount of payroll upon which a

26-6  premium is based; or

26-7    (b) Misrepresents the classification or duties of an employee,

26-8  is guilty of a gross misdemeanor. Any criminal penalty imposed must be in

26-9  addition to the amount charged pursuant to subsection 1.

26-10  Sec. 41.  NRS 616D.230 is hereby amended to read as follows:

26-11  616D.230  1.  An employer who fails to pay an amount of money

26-12  charged to him pursuant to the provisions of NRS 616D.200 or 616D.220

26-13  is liable in a civil action commenced by the attorney general for:

26-14  (a) Any amount charged to the employer by the administrator pursuant

26-15  to NRS 616D.200 or 616D.220;

26-16  (b) Not more than $10,000 for each act of willful deception;

26-17  (c) An amount equal to three times the total amount of the reasonable

26-18  expenses incurred by the state in enforcing this section; and

26-19  (d) Payment of interest on the amount charged at the rate fixed pursuant

26-20  to NRS 99.040 for the period from the date upon which the amount

26-21  charged was due to the date upon which the amount charged is paid.

26-22  2.  A criminal action need not be brought against an employer

26-23  described in subsection 1 before civil liability attaches under this section.

26-24  3.  Any payment of money charged pursuant to the provisions of NRS

26-25  616D.200 or 616D.220 and collected pursuant to paragraph (a) or (d) of

26-26  subsection 1 must be paid into the uninsured employers’ claim [fund.]

26-27  account.

26-28  4.  Any penalty collected pursuant to paragraph (b) or (c) of subsection

26-29  1 must be used to pay the salaries and other expenses of the fraud control

26-30  unit for industrial insurance established pursuant to the provisions of NRS

26-31  228.420. Any money remaining at the end of any fiscal year does not revert

26-32  to the state general fund.

26-33  Sec. 42.  NRS 617.401 is hereby amended to read as follows:

26-34  617.401  1.  The division shall designate one:

26-35  (a) Third-party administrator who has a valid certificate issued by the

26-36  commissioner pursuant to NRS 683A.085; or

26-37  (b) Insurer, other than a self-insured employer or association of self-

26-38  insured public or private employers,

26-39  to administer claims against the uninsured employers’ claim [fund.]

26-40  account. The designation must be made pursuant to reasonable competitive

26-41  bidding procedures established by the administrator.

26-42  2.  An employee may receive compensation from the uninsured

26-43  employers’ claim [fund] account if:

26-44  (a) He was hired in this state or he is regularly employed in this state;

26-45  (b) He contracts an occupational disease as a result of work performed

26-46  in this state;

26-47  (c) He files a claim for compensation with the division; and

26-48  (d) He makes an irrevocable assignment to the division of a right to be

26-49  subrogated to the rights of the employee pursuant to NRS 616C.215.

27-1    3.  If the division receives a claim pursuant to subsection 2, the division

27-2  shall immediately notify the employer of the claim.

27-3    4.  For the purposes of this section, the employer has the burden of

27-4  proving that he provided mandatory coverage for occupational diseases for

27-5  the employee or that he was not required to maintain industrial insurance

27-6  for the employee.

27-7    5.  Any employer who has failed to provide mandatory coverage

27-8  required by the provisions of this chapter is liable for all payments made on

27-9  his behalf, including, but not limited to, any benefits, administrative costs

27-10  or attorney’s fees paid from the uninsured employers’ claim [fund] account

27-11  or incurred by the division.

27-12  6.  The division:

27-13  (a) May recover from the employer the payments made by the division

27-14  that are described in subsection 5 and any accrued interest by bringing a

27-15  civil action in district court.

27-16  (b) In any civil action brought against the employer, is not required to

27-17  prove that negligent conduct by the employer was the cause of the

27-18  occupational disease.

27-19  (c) May enter into a contract with any person to assist in the collection

27-20  of any liability of an uninsured employer.

27-21  (d) In lieu of a civil action, may enter into an agreement or settlement

27-22  regarding the collection of any liability of an uninsured employer.

27-23  7.  The division shall:

27-24  (a) Determine whether the employer was insured within 30 days after

27-25  receiving the claim from the employee.

27-26  (b) Assign the claim to the third-party administrator or insurer

27-27  designated pursuant to subsection 1 for administration and payment of

27-28  compensation.

27-29  Upon determining whether the claim is accepted or denied, the designated

27-30  third-party administrator or insurer shall notify the injured employee, the

27-31  named employer and the division of its determination.

27-32  8.  Upon demonstration of the:

27-33  (a) Costs incurred by the designated third-party administrator or insurer

27-34  to administer the claim or pay compensation to the injured employee; or

27-35  (b) Amount that the designated third-party administrator or insurer will

27-36  pay for administrative expenses or compensation to the injured employee

27-37  and that such amounts are justified by the circumstances of the claim,

27-38  the division shall authorize payment from the uninsured employers’ claim

27-39  [fund.] account.

27-40  9.  Any party aggrieved by a determination regarding the

27-41  administration of an assigned claim or a determination made by the

27-42  division or by the designated third-party administrator or insurer regarding

27-43  any claim made pursuant to this section may appeal that determination

27-44  within 60 days after the determination is rendered to the hearings division

27-45  of the department of administration in the manner provided by NRS

27-46  616C.305 and 616C.315 to 616C.385, inclusive.

27-47  10.  All insurers shall bear a proportionate amount of a claim made

27-48  pursuant to this chapter, and are entitled to a proportionate amount of any

28-1  collection made pursuant to this section as an offset against future

28-2  liabilities.

28-3    11.  An uninsured employer is liable for the interest on any amount

28-4  paid on his claims from the uninsured employers’ claim [fund.] account.

28-5  The interest must be calculated at a rate equal to the prime rate at the

28-6  largest bank in Nevada, as ascertained by the commissioner of financial

28-7  institutions, on January 1 or July 1, as the case may be, immediately

28-8  preceding the date of the claim, plus 3 percent, compounded monthly, from

28-9  the date the claim is paid from the [fund] account until payment is received

28-10  by the division from the employer.

28-11  12.  Attorney’s fees recoverable by the division pursuant to this section

28-12  must be:

28-13  (a) If a private attorney is retained by the division, paid at the usual and

28-14  customary rate for that attorney.

28-15  (b) If the attorney is an employee of the division, paid at the rate

28-16  established by regulations adopted by the division.

28-17  Any money collected must be deposited to the uninsured employers’ claim

28-18  [fund.] account.

28-19  13.  In addition to any other liabilities provided for in this section, the

28-20  administrator may impose an administrative fine of not more than $10,000

28-21  against an employer if the employer fails to provide mandatory coverage

28-22  required by the provisions of this chapter.

28-23  Sec. 43.  NRS 227.215 and 353.145 are hereby repealed.

28-24  Sec. 44.  1.  The state controller shall, as he determines necessary to

28-25  carry out the provisions of this act, cause the transfer of any money

28-26  between funds and accounts whose designations are changed by the

28-27  provisions of this act.

28-28  2.  All rights and liabilities of a fund or account whose designation is

28-29  changed by the provisions of this act are not affected by the change in

28-30  designation and remain the rights and liabilities of the fund or account as

28-31  newly designated.

28-32  Sec. 45.  1.  This section and sections 1 to 18, inclusive, 21 to 24,

28-33  inclusive, 26 to 30, inclusive, 32, 33, 35 to 42, inclusive, and 44 of this act

28-34  become effective on July 1, 2001.

28-35  2.  Sections 19, 20, 25, 31, 34 and 43 of this act become effective at

28-36  12:01 a.m. on July 1, 2001.

28-37  Sec. 46.  The legislative counsel shall:

28-38  1.  In preparing the reprint and supplements to the Nevada Revised

28-39  Statutes, with respect to any section that is not amended by this act or is

28-40  further amended by another act, appropriately change any reference to any

28-41  fund or account whose designation is changed by the provisions of this act.

28-42  2.  In preparing supplements to the Nevada Administrative Code,

28-43  appropriately change any reference to any fund or account whose

28-44  designation is changed by the provisions of this act.

 

29-1  TEXT OF REPEALED SECTIONS

 

29-2    227.215  Minimum amount for drawing warrant; exceptions. 

29-3  Unless the state controller determines that earlier payment is necessary, he

29-4  shall not draw a warrant for less than $25, but shall accumulate claims for

29-5  less than $25 until:

29-6    1.  The claims of a particular claimant amount to $25 or more; or

29-7    2.  The end of the fiscal year.

29-8    353.145  Renewal of claim by presentation to state board of

29-9  examiners; payment.

29-10  1.  If a warrant of the state controller has been canceled pursuant to the

29-11  provisions of NRS 353.130, the person in whose favor the warrant was

29-12  drawn may, within 1 year after the date ofthe original warrant, renew his

29-13  claim against the state, in the amount of the warrant which was canceled,

29-14  by presenting the claim for approval by the state board of examiners,

29-15  except that the state board of examiners may authorize its clerk, under such

29-16  circumstances as it deems appropriate, to approve such a claim on behalf of

29-17  the board. A person who is aggrieved by a determination of the clerk to

29-18  deny all or any part of such a claim may appeal that determination to the

29-19  state board of examiners.

29-20  2.  If a claim is approved pursuant to this section, payment of the claim

29-21  may be made out of the stale claims account as provided in NRS 353.097.

 

29-22  H