Amendment No. 255

 

Assembly Amendment to Assembly Bill No. 206                                                              (BDR 53‑1103)

Proposed by: Committee on Commerce and Labor

Amendment Box:

Resolves Conflicts with: N/A

Amends:         Summary:              Title:              Preamble:               Joint Sponsorship:

 

ASSEMBLY ACTION              Initial and Date              |SENATE ACTION                        Initial and Date

       Adopted       Lost                                               |          Adopted       Lost                                           

Concurred In                     Not                                                        |Concurred In  Not                                       

       Receded        Not                                               |         Receded        Not                                           

 

     Amend section 1, page 2, line 13, after “disability.” by inserting:

The total amount of the allowable deduction includes, without limitation, compensation for a permanent partial disability that was deducted from:

          (1) Any compensation the employee received for a temporary total disability; or

          (2) Any other compensation received by the employee.”.

     Amend section 1, pages 2 and 3, by deleting lines 35 through 45 on page 2 and lines 1 through 13 on page 3, and inserting:

[compensation for the permanent total disability must be reduced as follows:

     (a) If the employee has not received a minimum lump sum, the insurer of the employee’s employer shall deduct from the compensation for the permanent total disability an amount equal to the monthly installment rate for awards for permanent partial disability until the insurer has deducted an amount that equals the amount it has already paid out as a lump sum; or

     (b) If the employee received a minimum lump sum, the] insurer of the employee’s employer shall recover pursuant to this subsection the actual amount of the lump sum paid to the employee for the permanent partial disability. The insurer shall not recover from the employee, whether by deductions or single payment, or a combination of both, more than the actual amount of the lump sum paid to the employee. To recover the actual amount of the lump sum, the insurer shall:

     (a) Unless the employee submits a request described in paragraph (b), deduct from the compensation for the permanent total disability an amount [of] that is not more than 10 percent of the rate of compensation for a permanent total disability until the actual amount of the lump sum paid to the employee for the permanent partial disability is recovered [.

FLUSH

 
The provisions of this subsection are retroactive for all claims for compensation for a permanent total disability remaining open on January 1, 2000.] ; or

     (b) Upon the request of the employee, accept in a single payment from the employee an amount that is equal to the actual amount of the lump sum paid to the employee for the permanent partial disability, less the actual amount of all deductions made to date by the insurer from the employee for repayment of the lump sum.”.

     Amend the bill as a whole by renumbering sec. 2 as sec. 3 and adding a new section designated sec. 2, following section 1, to read as follows:

     “Sec. 2. 1.  Each insurer who, pursuant to subsection 4 of NRS 616C.440, made a deduction from any compensation paid for a permanent total disability on a claim that was open on or after January 1, 2000, and before July 1, 2003, shall, as soon as practicable on or after July 1, 2003, recalculate the amount of the lump sum required to be repaid by the employee pursuant to the amendatory provisions of subsection 4 of section 1 of this act. In making the recalculation, the insurer shall determine the total of all of the actual amounts of all deductions made from the compensation paid to the employee pursuant to subsection 1 or 4 of NRS 616C.440 for the permanent total disability and subtract that amount from the actual amount of the lump sum paid to the employee for the permanent partial disability. The resulting amount is the maximum amount that the insurer may require the employee to repay for the lump sum for the permanent partial disability. Upon completing the recalculation required pursuant to this subsection, the insurer shall notify each employee for whom a recalculation was made of the results of the recalculation, including, without limitation, the actual amounts of all deductions and lump sums and the method or manner of recalculation.

     2.  If, after making a recalculation pursuant to subsection 1, an insurer determines that an employee has repaid an amount that is more than the actual amount of the lump sum paid to the employee for the permanent partial disability, the insurer shall immediately refund the amount of the overpayment to the employee.

     3.  If an insurer determines that an employee is entitled to a refund pursuant to subsection 2, and if the employee’s claim is closed on or before the date the insurer makes the determination, the insurer shall:

     (a) To the greatest extent practicable, locate the employee or, if the employee is deceased, the administrator or executor of the estate of the employee, if any; and

     (b) Deliver the refund to the employee, administrator or executor.

     4.  If an insurer is unable to deliver a refund pursuant to subsection 3, the insurer shall submit a written notice to the Division of Industrial Relations of the Department of Business and Industry. The written notice must be submitted within 10 days after the insurer determines it is unable to deliver the refund and must include, without limitation:

     (a) The name of the employee; and

     (b) A statement indicating that:

          (1) The employee is entitled to a refund pursuant to subsection 2; and

          (2) The insurer was unable to deliver the refund pursuant to subsection 3.”.

     Amend the title of the bill to read as follows:

“AN ACT relating to industrial insurance; revising provisions governing deductions from compensation for a permanent total disability; prohibiting the recovery by an insurer of more than the actual amount of a lump sum paid to an employee for a permanent partial disability when the employee is compensated for a permanent total disability; authorizing an employee to repay in a single payment the actual amount of a lump sum paid to an employee for a permanent partial disability; requiring insurers to refund to certain employees the amounts the employees overpaid when repaying lump sums for permanent partial disabilities; and providing other matters properly relating thereto.”.

     Amend the summary of the bill to read as follows:

“SUMMARY—Revises provisions relating to payment for permanent total disabilities. (BDR 53‑1103)”.