Assembly Bill No. 502

Assembly Bill No. 502-Committee on Labor and Management

May 19, 1997
____________

Referred to Committee on Labor and Management

SUMMARY--Makes various changes to provisions governing administration and payment of benefits for industrial insurance. (BDR 53-952)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: No.

EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.

AN ACT relating to industrial insurance; providing for the electronic transmission of documents related to claims; clarifying the authority of insurers to purchase annuities for the payment of claims; clarifying the prohibition against recovering benefits unless a notice of injury and a claim for compensation are filed; prohibiting an injured employee from recovering benefits for an industrial injury or occupational disease unless he receives medical treatment for the injury or disease; revising the training requirements for hearing and appeals officers; and providing other matters properly relating thereto.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1 NRS 612.265 is hereby amended to read as follows:
612.265 1. Except as otherwise provided in this section, information obtained from any employing unit or person pursuant to the administration of this chapter and any determination as to the benefit rights of any person is confidential and may not be disclosed or be open to public inspection in any manner which would reveal the person's or employing unit's identity.
2. Any claimant or his legal representative is entitled to information from the records of the division, to the extent necessary for the proper presentation of his claim in any proceeding pursuant to this chapter. A claimant or an employing unit is not entitled to information from the records of the division for any other purpose.
3. Subject to such restrictions as the administrator may by regulation prescribe, the information obtained by the division may be made available to:
(a) Any agency of this or any other state or any federal agency charged with the administration or enforcement of an unemployment compensation law, public assistance law, workman's compensation or labor law, or the maintenance of a system of public employment offices;
(b) Any state or local agency for the enforcement of child support;
(c) The Internal Revenue Service of the Department of the Treasury;
(d) The department of taxation; and
(e) The state contractors' board in the performance of its duties to enforce the provisions of chapter 624 of NRS.
Information obtained in connection with the administration of the employment service may be made available to persons or agencies for purposes appropriate to the operation of a public employment service or a public assistance program.
4. Upon written request made by a public officer of a local government, the administrator shall furnish from the records of the division the name, address and place of employment of any person listed in the records of employment of the division. The request must set forth the social security number of the person about whom the request is made and contain a statement signed by proper authority of the local government certifying that the request is made to allow the proper authority to enforce a law to recover a debt or obligation owed to the local government. The information obtained by the local government is confidential and may not be used or disclosed for any purpose other than the collection of a debt or obligation owed to that local government. The administrator may charge a reasonable fee for the cost of providing the requested information.
5. The administrator may publish or otherwise provide information on the names of employers, their addresses, their type or class of business or industry, and the approximate number of employees employed by each such employer, if the information released will assist unemployed persons to obtain employment or will be generally useful in developing and diversifying the economic interests of this state. Upon request by a state agency which is able to demonstrate that its intended use of the information will benefit the residents of this state, the administrator may, in addition to the information listed in this subsection, disclose the number of employees employed by each employer and the total wages paid by each employer. The administrator may charge a fee to cover the actual costs of any administrative expenses relating to the disclosure of this information to a state agency. The administrator may require the state agency to certify in writing that the agency will take all actions necessary to maintain the confidentiality of the information and prevent its unauthorized disclosure.
6. Upon request therefor the administrator shall furnish to any agency of the United States charged with the administration of public works or assistance through public employment, and may furnish to any state agency similarly charged, the name, address, ordinary occupation [,] and employment status of each recipient of benefits and the recipient's rights to further benefits pursuant to this chapter.
7. To further a current criminal investigation, the chief executive officer of any law enforcement agency of this state may submit a written request to the administrator that he furnish, from the records of the division, the name, address and place of employment of any person listed in the records of employment of the division. The request must set forth the social security number of the person about whom the request is made and contain a statement signed by the chief executive officer certifying that the request is made to further a criminal investigation currently being conducted by the agency. Upon receipt of such a request, the administrator shall furnish the information requested. He may charge a fee to cover the actual costs of any related administrative expenses.
8. In addition to the provisions of subsection 5, the administrator shall provide lists containing the names and addresses of employers, the number of employees employed by each employer and the total wages paid by each employer to the department of taxation, upon request, for use in verifying returns for the business tax. The administrator may charge a fee to cover the actual costs of any related administrative expenses.
9. [The manager of the state industrial insurance system] Each insurer shall submit to the administrator a list containing the name of each person who received benefits pursuant to chapters 616A to 616D, inclusive, or 617 of NRS during the preceding month and request that [he] the administrator compare the information so provided with the records of the division regarding persons claiming benefits pursuant to chapter 612 of NRS for the same period. The information submitted by [the manager] an insurer must be in a form determined by the administrator and must contain the social security number of each such person. Upon receipt of such a request, the administrator shall make such a comparison and provide to the [manager] insurer a list containing the name, address and social security number of each person who appears, from the information submitted, to be simultaneously claiming benefits under chapter 612 of NRS and under chapters 616A to 616D, inclusive, or 617 of NRS. Upon receipt of a request therefor, the administrator shall provide to the insurer a copy of the form used by any person whose name appears on the list to claim benefits under chapter 612 of NRS. The administrator shall charge a fee to cover the actual costs of any related administrative expenses. The [manager] insurer shall use the information obtained pursuant to this subsection only to further a current investigation. The [manager] insurer shall not disclose the information for any other purpose. As used in this subsection, "insurer" has the meaning ascribed to it in NRS 616A.270.
10. The administrator may request the Comptroller of the Currency of the United States to cause an examination of the correctness of any return or report of any national banking association rendered pursuant to the provisions of this chapter, and may in connection with the request transmit any such report or return to the Comptroller of the Currency of the United States as provided in Section 3305(c) of the Internal Revenue Code of 1954.
11. If any employee or member of the board of review or the administrator or any employee of the administrator, in violation of the provisions of this section, discloses information obtained from any employing unit or person in the administration of this chapter, or if any person who has obtained a list of applicants for work, or of claimants or recipients of benefits pursuant to this chapter uses or permits the use of the list for any political purpose, he is guilty of a gross misdemeanor.
12. All letters, reports or communications of any kind, oral or written, from the employer or employee to each other or to the division or any of its agents, representatives or employees are privileged and must not be the subject matter or basis for any lawsuit if the letter, report or communication is written, sent, delivered or prepared pursuant to the requirements of this chapter.
Sec. 2 Chapter 616A of NRS is hereby amended by adding thereto a new section to read as follows:
1. Except as otherwise provided in chapters 616A to 617, inclusive, of NRS, a form, notice, claim, bill or other document required to be filed, mailed or delivered pursuant to the provisions of those chapters, or any regulations adopted pursuant thereto, may be filed or delivered by electronic transmission.
2. For the purposes of the provisions of chapters 616A to 617, inclusive, of NRS, and any regulations adopted pursuant thereto, a signature on a form, notice, claim, bill or other document that is filed or delivered by electronic transmission has the same legal effect as the original signature.
3. The administrator may adopt such regulations as are necessary to provide for the filing or delivery of such documents by electronic transmission.
Sec. 3 Chapter 616B of NRS is hereby amended by adding thereto the provisions set forth as sections 4 and 5 of this act.
Sec. 4 An insurer shall, within 10 days after receiving from an employer a written request for information relating to the employer's policy of industrial insurance, provide to the employer the information requested if that information is in the possession of, or reasonably available to, the insurer.
Sec. 5 An insurer may purchase an annuity in any form to ensure the payment of a claim filed with the insurer pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS.
Sec. 6 NRS 616B.012 is hereby amended to read as follows:
616B.0121. Except as otherwise provided in this section and in NRS 616B.015, 616B.021 and 616C.205, information obtained from any insurer, employer or employee is confidential and may not be disclosed or be open to public inspection in any manner which would reveal the person's identity.
2. Any claimant or his legal representative is entitled to information from the records of the insurer, to the extent necessary for the proper presentation of a claim in any proceeding under chapters 616A to 616D, inclusive, of NRS.
3. An insurer, the administrator, an employer or a provider of health care is entitled to any medical or other information released by an injured employee pursuant to subsection 3 of NRS 616C.020 or subsection 3 of NRS 617.344.
4. The division and administrator are entitled to information from the records of the insurer which is necessary for the performance of their duties. The manager may, by regulation, prescribe the manner in which otherwise confidential information may be made available to:
(a) Any agency of this or any other state charged with the administration or enforcement of [workers' compensation law,] laws relating to industrial insurance, unemployment compensation , [law,] public assistance [law] or labor [law;] and industrial relations;
(b) Any state or local agency for the enforcement of child support;
(c) The Internal Revenue Service of the Department of the Treasury;
(d) The department of taxation; and
(e) The state contractors' board in the performance of its duties to enforce the provisions of chapter 624 of NRS.
Information obtained in connection with the administration of a [workers' compensation] program of industrial insurance may be made available to persons or agencies for purposes appropriate to the operation of a [workers' compensation program.
4.] program of industrial insurance.
5. Upon written request made by a public officer of a local government, the manager shall furnish from the records of the insurer, the name, address and place of employment of any person listed in the records of the insurer. The request must set forth the social security number of the person about whom the request is made and contain a statement signed by proper authority of the local government certifying that the request is made to allow the proper authority to enforce a law to recover a debt or obligation owed to the local government. The information obtained by the local government is confidential and may not be used or disclosed for any purpose other than the collection of a debt or obligation owed to that local government. The manager may charge a reasonable fee for the cost of providing the requested information.
[5.] 6. To further a current criminal investigation, the chief executive officer of any law enforcement agency of this state may submit a written request to the manager that he furnish from the records of the insurer, the name, address and place of employment of any person listed in the records of the insurer. The request must set forth the social security number of the person about whom the request is made and contain a statement signed by the chief executive officer certifying that the request is made to further a criminal investigation currently being conducted by the agency. Upon receipt of a request, the manager shall furnish the information requested. He may charge a reasonable fee to cover any related administrative expenses.
[6.] 7. The manager shall provide lists containing the names and addresses of employers, the number of employees employed by each employer and the total wages paid by each employer to the department of taxation, upon request, for its use in verifying returns for the business tax. The manager may charge a reasonable fee to cover any related administrative expenses.
[7.] 8. If the manager or any employee of the manager, in violation of this section, discloses information obtained from files of claimants or policyholders, or if any person who has obtained a list of claimants or policyholders under chapters 616A to 616D, inclusive, of NRS uses or permits the use of the list for any political purposes, he is guilty of a gross misdemeanor.
[8.] 9. All letters, reports or communications of any kind, oral or written, from the insurer, or any of its agents, representatives or employees are privileged and must not be the subject matter or basis for any lawsuit if the letter, report or communication is written, sent, delivered or prepared pursuant to the requirements of chapters 616A to 616D, inclusive, of NRS.
Sec. 7 NRS 616B.018 is hereby amended to read as follows:
616B.018 1. The administrator shall establish a method of indexing claims for compensation that will make information concerning the claimants of one insurer available to other insurers.
2. Every self-insured employer, association of self-insured public or private employers and the system shall provide information as required by the administrator for establishing and maintaining the index of claims.
3. If an employee files a claim [with an insurer,] for compensation, or if a claim for compensation is filed on behalf of an employee, the insurer is entitled to receive from the administrator a list of the prior claims of the employee. If the insurer desires to inspect the files of another insurer that are related to one or more of the prior claims, he must [obtain the written consent] provide the other insurer with a copy of the claim for compensation filed by or on behalf of the employee.
4. Any information obtained from the index of claims must be admitted into evidence in any hearing before an appeals officer, a hearing officer or the administrator.
5. The division may assess and collect a reasonable fee for its services provided pursuant to this section. The fee must be payable monthly or at such other intervals as determined by the administrator.
Sec. 8 NRS 616B.021 is hereby amended to read as follows:
616B.0211. [The insurer must] An insurer shall provide access to the files of claims in its offices.
2. A file is available for inspection during regular business hours by the employee or his designated agent, the employer or his designated agent and the administrator or his designated agent.
3. Upon request, the insurer [must] shall make copies of anything in the file and may charge a reasonable fee for this service. Copies of materials in the file which are requested by the administrator or his designated agent, or the Nevada attorney for injured workers or his designated agent must be provided free of charge.
4. [If] Except as otherwise provided in NRS 616C.235, if a claim has been closed for at least 1 year, the insurer may microphotograph or film any of its records relating to that claim. The microphotographs or films must be placed in convenient and accessible files, and provision must be made for preserving, examining and using the records.
5. [Nothing in this section requires] This section does not require the insurer to allow inspection or reproduction of material regarding which a legal privilege against disclosure has been conferred.
Sec. 9 NRS 616B.024 is hereby amended to read as follows:
616B.024Except as otherwise provided in NRS 616C.235:
1. Upon written approval of the administrator, the insurer may destroy accumulated and noncurrent detail records such as payroll reports, checks, claims [,] and other records of similar importance for the period July 1, 1913, to January 1, 1947, if:
(a) Claims from January 1, 1940, and after are first microphotographed; and
(b) A brief inventory of the destroyed records is retained.
2. The insurer may dispose of or destroy any record which has been microphotographed or filmed if the procedure required by NRS 239.051 has been followed.
3. The principal records, such as the general and regular journals and the general ledgers, must be retained intact until audited and then must be microfilmed for retention until their destruction pursuant to NRS 239.051.
Sec. 10 NRS 616B.033 is hereby amended to read as follows:
616B.033 1. Every policy of insurance issued pursuant to chapters 616A to 617, inclusive, of NRS must contain a provision for the requirements of subsection 5 and a provision that insolvency or bankruptcy of the employer or his estate, or discharge therein, or any default of the employer does not relieve the insurer from liability for compensation resulting from an injury otherwise covered under the policy issued by the insurer.
2. No statement in an employer's application for a policy of industrial insurance voids the policy as between the insurer and employer unless the statement is false and would have materially affected the acceptance of the risk if known by the insurer, but in no case does the invalidation of a policy as between the insurer and employer affect the insurer's obligation to provide compensation to claimants arising before the cancellation of the policy. If the insurer is required pursuant to this subsection to provide compensation under an invalid policy, the insurer is subrogated to the claimant's rights against the employer.
3. If an insurer or employer intends to cancel or renew a policy of insurance issued by the insurer pursuant to chapters 616A to 617, inclusive, of NRS, the insurer or employer must give notice to that effect in writing to the administrator and to the other party fixing the date on which it is proposed that the cancellation or renewal becomes effective. The notices must comply with the provisions of NRS 687B.310 to 687B.355, inclusive, and must be served personally on or sent by first-class mail or electronic transmission to the administrator and the other party. If the employer has secured insurance with another insurer which would cause double coverage, the cancellation must be made effective as of the effective date of the other insurance.
4. As between any claimant and the insurer, no defense based on any act or omission of the insured employer, if different from the insurer, may be raised by the insurer.
5. For the purposes of chapters 616A to 617, inclusive, of NRS, as between the employee and the insurer:
(a) Except as otherwise provided in NRS 616C.065, notice or knowledge of the injury to or by the employer is notice or knowledge to or by the insurer;
(b) Jurisdiction over the employer is jurisdiction over the insurer; and
(c) The insurer is bound by and subject to any judgments, findings of fact, conclusions of law, awards, decrees, orders or decisions rendered against the employer in the same manner and to the same extent as the employer.
Sec. 11 NRS 616B.327 is hereby amended to read as follows:
616B.327 1. Except as otherwise provided in NRS 616D.120, before any action may be taken pursuant to subsection 2, the commissioner of insurance shall arrange an informal meeting with the self-insured employer to discuss and seek correction of any conduct which would be grounds for withdrawal of the self-insured employer's certificate of self-insurance.
2. Except as otherwise provided in NRS 616D.120, before the withdrawal of the certification of any self-insured employer, the commissioner of insurance shall give written notice to that employer by certified mail or electronic transmission that his certification will be withdrawn 10 days after receipt of the notice unless, within that time, the employer corrects the conduct set forth in the notice as the reason for the withdrawal or submits a written request for a hearing to the commissioner of insurance. Before requesting a hearing the employer must make the deposit required by NRS 616B.300.
3. If the employer requests a hearing:
(a) The commissioner of insurance shall set a date for a hearing within 20 days after receiving the appeal request, and shall give the employer at least 10 business days' notice of the time and place of the hearing.
(b) A record of the hearing must be kept but it need not be transcribed unless requested by the employer with the cost of transcription to be charged to the employer.
(c) Within 5 business days after the hearing, the commissioner of insurance shall either affirm or disaffirm the withdrawal and give the employer written notice thereof by certified mail [.] or electronic transmission. If withdrawal of certification is affirmed, the withdrawal becomes effective 10 business days after the employer receives notice of the affirmance unless within that period of time the employer corrects the conduct which was ground for the withdrawal or petitions for judicial review of the affirmance.
4. If the withdrawal of certification is affirmed following judicial review, the withdrawal becomes effective 5 days after entry of the final decree of affirmance.
Sec. 12 NRS 616B.431 is hereby amended to read as follows:
616B.431 1. Except as otherwise provided in NRS 616D.120, before any action may be taken pursuant to subsection 2, the commissioner shall arrange an informal meeting with an association of self-insured public or private employers to discuss and seek correction of any conduct which would be grounds for withdrawal of the certificate of the association.
2. Except as otherwise provided in subsection 3 and NRS 616D.120, before the withdrawal of the certificate of any association of self-insured public or private employers, the commissioner shall give written notice to the association by certified mail or electronic transmission that its certificate will be withdrawn 10 days after receipt of the notice unless, within that time, the association corrects the conduct set forth in the notice as the reason for the withdrawal or submits a written request for a hearing to the commissioner.
3. The commissioner may grant additional time, not to exceed an additional 120 days, before the withdrawal of the certificate of an association if:
(a) The grounds for withdrawal of the certificate of the association are based on paragraph (d) of subsection 2 of NRS 616B.428; and
(b) The association is financially sound and capable of fulfilling its commitments.
4. If the association requests a hearing:
(a) The commissioner shall set a date for a hearing within 20 days after receiving the request and give the association at least 10 business days' notice of the time and place of the hearing.
(b) A record of the hearing must be kept, but it need not be transcribed unless requested by the association with the cost of transcription to be charged to the association.
(c) Within 5 business days after the hearing, the commissioner shall either affirm or disaffirm the withdrawal and give the association written notice thereof by certified mail [.] or electronic transmission. If withdrawal of certification is affirmed, the withdrawal becomes effective 10 business days after the association receives notice of the affirmance unless within that period the association corrects the conduct which was grounds for the withdrawal or petitions for judicial review of the affirmance.
5. If the withdrawal of certification is affirmed following judicial review, the withdrawal becomes effective 5 days after entry of the final decree of affirmance.
Sec. 13 NRS 616B.472 is hereby amended to read as follows:
616B.472 1. The commissioner shall suspend the authorization of a private carrier to provide industrial insurance for 1 year, if the commissioner finds that the private carrier has intentionally or repeatedly failed to comply with the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS or the regulations of the division.
2. Before the commissioner suspends the authorization of a private carrier, he shall arrange an informal meeting with the private carrier to discuss and seek correction of any conduct which would be grounds for suspension.
3. Before the suspension of the authorization, the commissioner shall give written notice to the private carrier by certified mail or electronic transmission that its authorization will be suspended within 10 days after it receives the notice unless, within that time, the private carrier corrects the conduct set forth in the notice as the reason for the withdrawal or submits a written request for a hearing to the commissioner.
4. If the private carrier requests a hearing:
(a) The commissioner shall set a date for a hearing within 20 days after receiving the notice of the appeal and shall give the private carrier at least 10 business days' notice of the time and place of the hearing.
(b) A record of the hearing must be kept but it need not be transcribed unless requested by the private carrier. The cost of transcription must be charged to the private carrier.
5. Within 5 days after the hearing, the commissioner shall affirm or deny his order suspending the authorization of the private carrier and notify the private carrier by certified mail or electronic transmission of his decision.
6. If the private carrier does not comply with the order of the commissioner during the period of suspension of the authorization, the commissioner shall file an order prohibiting the private carrier from issuing new policies until the order has expired. A copy of the order must be sent by certified mail or electronic transmission to the private carrier.
Sec. 14 NRS 616C.020 is hereby amended to read as follows:
616C.020 1. Except as otherwise provided in subsection 2, an injured employee [,] who wishes to recover compensation pursuant to the provisions of chapters 616A to 616D, inclusive, of NRS, or a person acting on his behalf, shall , at the time of the employee's first medical examination for his injury, file a claim for compensation with the [insurer within 90 days after an accident if:
(a) The employee has sought medical treatment for an injury arising out of and in the course of his employment; or
(b) The employee was off work as a result of an injury arising out of and in the course of his employment.] physician or chiropractor who conducts the examination. The injured employee must submit to a medical examination for his injury and file a claim for compensation within 90 days after the date of the injury.
2. In the event of the death of the injured employee resulting from the injury, a dependent of the employee, or a person acting on his behalf, shall file a claim for compensation with the insurer within 1 year after the death of the injured employee.
3. The claim for compensation must be filed on a form prescribed by the administrator. The form must include a provision which, if signed by the injured employee, authorizes the release of any medical or other information related to the claim to the insurer, the administrator, the employee's employer and any provider of health care who provides treatment to the injured employee.
Sec. 15 NRS 616C.025 is hereby amended to read as follows:
616C.025 1. Except as otherwise provided in subsection 2, an employee or, in the event of the death of [the employee, his dependent,] an employee, a dependent, who does not file a notice of injury pursuant to NRS 616C.015 and a claim for compensation pursuant to NRS 616C.020 is barred from recovering compensation pursuant to the provisions of chapters 616A to 616D, inclusive, of NRS . [if he fails to file a notice of injury pursuant to NRS 616C.015 or a claim for compensation pursuant to NRS 616C.020.]
2. An insurer may excuse the failure to file a notice of injury or a claim for compensation pursuant to the provisions of this section if:
(a) The injury to the employee or another cause beyond his control prevented him from providing the notice or claim;
(b) The failure was caused by the employee's or dependent's mistake or ignorance of fact or of law;
(c) The failure was caused by the physical or mental inability of the employee or the dependent; or
(d) The failure was caused by fraud, misrepresentation or deceit.
Sec. 16 NRS 616C.040 is hereby amended to read as follows:
616C.040 1. A treating physician or chiropractor shall, within 3 working days after he first [treats] examines an injured employee for a particular injury, complete and [mail to] file with the employer of the injured employee and [to] the employer's insurer, [a] the claim for compensation [.] filed with the physician or chiropractor by the injured employee pursuant to NRS 616C.020. If the employer is a self-insured employer, the treating physician or chiropractor shall [mail] file the claim for compensation [to] with the employer's third-party administrator. If the physician or chiropractor files the claim for compensation by electronic transmission, he shall, upon request, mail to the insurer or third-party administrator the form that contains the original signatures of the injured employee and the physician or chiropractor. The form must be mailed within 7 days after receiving such a request.
2. [A claim for compensation required by subsection 1 must be on a form prescribed by the administrator.
3.] If a claim for compensation is accompanied by a certificate of disability, the certificate must include a description of any limitation or restrictions on the injured employee's ability to work.
[4.] 3. Each physician, chiropractor and medical facility that treats injured employees, each insurer, third-party administrator and employer, and the division shall maintain at their offices a sufficient supply of the forms prescribed by the administrator for filing a claim for compensation.
[5.] 4. The administrator shall impose an administrative fine of not more than $1,000 on a physician or chiropractor for each violation of subsection 1.
Sec. 17 NRS 616C.045 is hereby amended to read as follows:
616C.045 1. Within 6 working days after the receipt of a claim for compensation from a physician or chiropractor, an employer shall complete and [mail to] file with his insurer or third-party administrator an employer's report of industrial injury or occupational disease.
2. The report must:
(a) Be on a form prescribed by the administrator;
(b) Be signed by the employer or his designee;
(c) Contain specific answers to all questions required by the regulations of the administrator; and
(d) Be accompanied by a statement of the wages of the employee if the claim for compensation received from the treating physician or chiropractor indicates that the injured employee is expected to be off work for 5 days or more.
3. An employee of the system shall not complete the report required by subsection 1 or any other form relating to the accident on behalf of the employer unless the employer:
(a) Is not in business;
(b) Has not been located by the system within 5 working days after receipt of a claim for compensation; or
(c) Refuses to complete the report.
4. An employer who files the report required by subsection 1 by electronic transmission shall, upon request, mail to the insurer or third-party administrator the form that contains the original signature of the employer or his designee. The form must be mailed within 7 days after receiving such a request.
5. The administrator shall impose an administrative fine of not more than $1,000 on an employer for each violation of this section.
Sec. 18 NRS 616C.060 is hereby amended to read as follows:
616C.060An insurer shall accept or deny responsibility for compensation under chapters 616A to 616D, inclusive, of NRS within 30 working days after [claims] a claim for compensation [are] is received pursuant to [both NRS 616C.020 and] NRS 616C.040.
Sec. 19 NRS 616C.130 is hereby amended to read as follows:
616C.130 The insurer shall not authorize the payment of any money to a physician or chiropractor for services rendered by him in attending an injured employee until an itemized statement for the services has been received by the insurer accompanied by a certificate of the physician or chiropractor stating that a duplicate of the itemized statement has been [mailed or personally delivered to] filed with the employer of the injured employee.
Sec. 20 NRS 616C.150 is hereby amended to read as follows:
616C.1501. An injured employee or his dependents are not entitled to receive compensation pursuant to the provisions of chapters 616A to 616D, inclusive, of NRS unless [the] :
(a) The employee submits to a medical examination for an injury arising out of and in the course of his employment within 90 days after the date of that injury; and
(b) The employee or his dependents establish by a preponderance of the evidence that the employee's injury arose out of and in the course of his employment.
2. For the purposes of chapters 616A to 616D, inclusive, of NRS, if the employee files a notice of an injury pursuant to NRS 616C.015 after his employment has been terminated for any reason, there is a rebuttable presumption that the injury did not arise out of and in the course of his employment.
Sec. 21 NRS 616C.220 is hereby amended to read as follows:
616C.2201. An employee may receive compensation from the uninsured employers' claim fund if:
(a) He was hired in this state or he is regularly employed in this state;
(b) He suffers an accident or injury in this state which arises out of and in the course of his employment;
(c) [He files a] His claim for compensation is filed with the system pursuant to NRS [616C.020;] 616C.040;
(d) He files written notice with the division; and
(e) He makes an irrevocable assignment to the division of a right to be subrogated to the rights of the injured employee pursuant to NRS 616C.215.
2. If the system receives a claim pursuant to subsection 1, the system shall immediately:
(a) Notify the employer of the claim; and
(b) Deliver to the division any evidence regarding the claim and any evidence indicating that the employer was uninsured.
3. For the purposes of this section, the employer has the burden of proving that he provided mandatory industrial insurance coverage for the employee or that he was not required to maintain industrial insurance for the employee.
4. Any employer who has failed to provide mandatory coverage required by the provisions of chapters 616A to 616D, inclusive, of NRS is liable for all payments made on his behalf, including any benefits, administrative costs or attorney's fees paid from the uninsured employers' claim fund or incurred by the division.
5. The division:
(a) May recover from the employer the payments made by the division that are described in subsection 4 and any accrued interest by bringing a civil action in district court.
(b) In any civil action brought against the employer, is not required to prove that negligent conduct by the employer was the cause of the employee's injury.
(c) May enter into a contract with any person to assist in the collection of any liability of an uninsured employer.
(d) In lieu of a civil action, may enter into an agreement or settlement regarding the collection of any liability of an uninsured employer.
6. The division shall:
(a) Determine whether the employer was insured within 30 days after receiving notice of the claim from the employee.
(b) Assign the claim to the system for administration of the claim, payment of benefits and reimbursement of costs of administration and benefits paid to the system.
Upon determining that a claim is invalid, the system shall notify the claimant, the named employer and the division that the claim will not be assigned for benefits from the uninsured employers' claim fund.
7. Any party aggrieved by a decision regarding the administration of an assigned claim or a decision made by the division or by the system regarding any claim made pursuant to this section may appeal that decision within 60 days after the decision is rendered to the hearings division of the department of administration in the manner provided by NRS 616C.305 and 616C.315 to 616C.385, inclusive.
8. All insurers shall bear a proportionate amount of a claim made pursuant to chapters 616A to 616D, inclusive, of NRS, and are entitled to a proportionate amount of any collection made pursuant to this section as an offset against future liabilities.
9. An uninsured employer is liable for the interest on any amount paid on his claims from the uninsured employers' claim fund. The interest must be calculated at a rate equal to the prime rate at the largest bank in Nevada, as ascertained by the commissioner of financial institutions, on January 1 or July 1, as the case may be, immediately preceding the date of the claim, plus 3 percent, compounded monthly, from the date the claim is paid from the fund until payment is received by the division from the employer.
10. Attorney's fees recoverable by the division pursuant to this section must be:
(a) If a private attorney is retained by the division, paid at the usual and customary rate for that attorney.
(b) If the attorney is an employee of the division, paid at the rate established by regulations adopted by the division.
Any money collected must be deposited to the uninsured employers' claim fund.
11. In addition to any other liabilities provided for in this section, the administrator may impose an administrative fine of not more than $10,000 against an employer if the employer fails to provide mandatory coverage required by the provisions of chapters 616A to 616D, inclusive, of NRS.
Sec. 22 NRS 616C.235 is hereby amended to read as follows:
616C.235 1. Except as otherwise provided in subsection 2:
(a) When the insurer determines that a claim should be closed before all benefits to which the claimant may be entitled have been paid, the insurer shall send a written notice of its intention to close the claim to the claimant by first-class mail addressed to the last known address of the claimant. The notice must include a statement that if the claimant does not agree with the determination, he has a right to request a resolution of the dispute pursuant to NRS 616C.305 and 616C.315 to 616C.385, inclusive. A suitable form for requesting a resolution of the dispute must be enclosed with the notice. The closure of a claim is not effective unless notice is given as required by this subsection.
(b) If the insurer does not receive a request for the resolution of the dispute, it may close the claim.
(c) Notwithstanding the provisions of NRS 233B.125, if a hearing is conducted to resolve the dispute, the decision of the hearing officer may be served by first-class mail.
2. If the medical benefits required to be paid for a claim are less than $500, the claim closes automatically if the claimant does not receive medical treatment for the injury for at least 6 months. The claimant may not appeal the closing of such a claim. The insurer may, not less than 6 months after a claim is closed pursuant to this subsection, destroy the records relating to the claim.
Sec. 23 NRS 616C.285 is hereby amended to read as follows:
616C.285 1. If an employer requests a hearing concerning the withdrawal of approval pursuant to NRS 616C.280, the administrator shall set a date for a hearing within 20 days after receiving the request, and shall give the employer at least 10 business days' notice of the time and place of the hearing.
2. A record of the hearing must be kept but it need not be transcribed unless it is requested by the employer and he pays the cost of transcription.
3. Within 5 business days after the hearing, the administrator shall either affirm or disaffirm the withdrawal of approval and give the employer written notice thereof by certified mail [.] or electronic transmission.
Sec. 24 NRS 616C.295 is hereby amended to read as follows:
616C.295 The chief of the hearings division of the department of administration shall:
1. Prescribe by regulation [the] :
(a) The qualifications and training required before a person may, pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS, serve as a hearing officer. Training for a hearing officer must include [techniques] :
(1) Techniques of mediation [.] ; and
(2) Instruction at the National Judicial College in Reno, Nevada, in the administrative procedures and substantive law relating to contested cases for compensation under chapters 616A to 617, inclusive, of NRS, if such instruction is available at the college.
(b) Procedures to ensure that the decisions of hearing officers are consistent with prior decisions issued by hearing officers for similar claims.
2. Provide for the expediting of the hearing of cases that involve the termination or denial of compensation.
Sec. 25 NRS 616C.340 is hereby amended to read as follows:
616C.3401. The governor shall appoint one or more appeals officers to conduct hearings in contested claims for compensation pursuant to NRS 616C.360. Each appeals officer shall hold office for 2 years from the date of his appointment and until his successor is appointed and has qualified. Each appeals officer is entitled to receive an annual salary in an amount provided by law and is in the unclassified service of the state.
2. Each appeals officer must be an attorney who has been licensed to practice law before all the courts of this state for at least 2 years. Except as otherwise provided in NRS 7.065, an appeals officer shall not engage in the private practice of law.
3. The chief of the hearings division of the department of administration shall prescribe by regulation:
(a) The training required before a person may, pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS, serve as an appeals officer. Training for an appeals officer must include instruction at the National Judicial College in Reno, Nevada, in the administrative procedures and substantive law relating to contested cases for compensation under chapters 616A to 617, inclusive, of NRS, if such instruction is available at the college.
(b) Procedures to ensure that the decisions of appeals officers are consistent with prior decisions issued by appeals officers for similar claims.
4. If an appeals officer determines that he has a personal interest or a conflict of interest, directly or indirectly, in any case which is before him, he shall disqualify himself from hearing the case and the governor may appoint a special appeals officer who is vested with the same powers as the regular appeals officer would possess. The special appeals officer is entitled to be paid at an hourly rate, based upon the appeals officer's salary.
[4.] 5. The decision of an appeals officer is the final and binding administrative determination of a claim for compensation under chapters 616A to 616D, inclusive, or chapter 617 of NRS, and the whole record consists of all evidence taken at the hearing before the appeals officer and any findings of fact and conclusions of law based thereon.
Sec. 26 NRS 616C.550 is hereby amended to read as follows:
616C.550 1. Except as otherwise provided in this section, if benefits for a temporary total disability will be paid to an injured employee for more than 90 days, a vocational rehabilitation counselor shall, within 30 days after being assigned to the claim, make a written assessment of the injured employee's ability or potential to return to:
(a) The position he held at the time that he was injured; or
(b) Any other gainful employment.
2. Before completing the written assessment, the counselor shall:
(a) Contact the injured employee and:
(1) Identify the injured employee's educational background, work experience and career interests; and
(2) Determine whether the injured employee has any existing marketable skills.
(b) Contact the injured employee's treating physician or chiropractor and determine:
(1) Whether the employee has any temporary or permanent physical limitations;
(2) The estimated duration of the limitations;
(3) Whether there is a plan for continued medical treatment; and
(4) When the employee may return to the position that he held at the time of his injury or to any other position. The treating physician or chiropractor shall determine whether an employee may return to the position that he held at the time of his injury.
3. The written assessment must contain a determination as to whether the employee is eligible for vocational rehabilitation services pursuant to NRS 616C.590. If the insurer, with the assistance of the counselor, determines that the employee is eligible for vocational rehabilitation services, a plan for a program of vocational rehabilitation must be completed pursuant to NRS 616C.555.
4. The division may, by regulation, require a written assessment to include additional information.
5. If an insurer determines that the written assessment required by this section is impractical because of the expected duration of the employee's total temporary disability, the insurer shall:
(a) Complete a written report which specifies his reasons for the decision; and
(b) Review the claim at least once every 60 days.
6. The insurer shall [mail] deliver a copy of the written assessment or the report completed pursuant to subsection 5 to the injured employee, his employer, the treating physician or chiropractor and the injured employee's attorney or representative, if applicable.
7. For the purposes of this section, "existing marketable skills" include, but are not limited to:
(a) Completion of:
(1) A program at a trade school;
(2) A program which resulted in an associate's degree; or
(3) A course of study for certification,
if the program or course of study provided the skills and training necessary for the injured employee to be gainfully employed on a reasonably continuous basis in an occupation that is reasonably available in this state.
(b) Completion of a 2-year or 4-year program at a college or university which resulted in a degree.
(c) Completion of any portion of a program for a graduate's degree at a college or university.
(d) Skills acquired in previous employment, including those acquired during an apprenticeship or a program for on-the-job training.
The skills set forth in paragraphs (a) to (d), inclusive, must have been acquired within the preceding 7 years and be compatible with the physical limitations of the injured employee to be considered existing marketable skills.
Sec. 27 NRS 616C.560 is hereby amended to read as follows:
616C.560 1. A program for vocational rehabilitation developed pursuant to subsection 3 of NRS 616C.555 may be extended:
(a) Without condition or limitation, by the insurer at his sole discretion; or
(b) In accordance with this section if:
(1) The injured employee makes a written request to extend the program within 30 days after he receives written notification that he is eligible for vocational rehabilitation services; and
(2) There are exceptional circumstances which make it unlikely that the injured employee will obtain suitable gainful employment as a result of vocational rehabilitation which is limited to the period for which he is eligible.
An insurer's determination to grant or deny an extension pursuant to paragraph (a) may not be appealed.
2. If an injured employee has incurred a permanent physical impairment of less than 11 percent:
(a) The total length of the program, including any extension, must not exceed 1 year.
(b) "Exceptional circumstances" shall be deemed to exist for the purposes of paragraph (b) of subsection 1, if:
(1) The injured employee lacks work experience, training, education or other transferable skills for an occupation which he is physically capable of performing; or
(2) Severe physical restrictions as a result of the industrial injury have been imposed by a physician which significantly limit the employee's occupational opportunities.
3. If an injured employee has incurred a permanent physical impairment of 11 percent or more:
(a) The total length of the program, including any extension, must not exceed 2 years.
(b) "Exceptional circumstances" shall be deemed to exist for the purposes of paragraph (b) of subsection 1, if the injured employee has suffered:
(1) The total and permanent loss of sight of both eyes;
(2) The loss by separation of a leg at or above the knee;
(3) The loss by separation of a hand at or above the wrist;
(4) An injury to the head or spine which results in permanent and complete paralysis of both legs, both arms or a leg and an arm;
(5) An injury to the head which results in a severe cognitive functional impairment which may be established by a nationally recognized form of objective psychological testing;
(6) The loss by separation of an arm at or above the elbow and the loss by separation of a leg at or above the knee;
(7) An injury consisting of second or third degree burns on 50 percent or more of the body, both hands or the face;
(8) A total bilateral loss of hearing;
(9) The total loss or significant and permanent impairment of speech; or
(10) A permanent physical impairment of 50 percent or more determined pursuant to NRS 616C.490, if the severity of the impairment limits the injured employee's gainful employment to vocations that are primarily intellectual and require a longer program of education.
4. The insurer shall [mail] deliver a copy of its decision granting or denying an extension to the injured employee and the employer. Except as otherwise provided in this section, the decision shall be deemed to be a final determination of the insurer for the purposes of NRS 616C.315.
Sec. 28 NRS 616C.590 is hereby amended to read as follows:
616C.590 1. Except as otherwise provided in this section, an injured employee is not eligible for vocational rehabilitation services, unless:
(a) The treating physician or chiropractor approves the return of the injured employee to work but imposes permanent restrictions that prevent the injured employee from returning to the position that he held at the time of his injury;
(b) The injured employee's employer does not offer employment that the employee is eligible for considering the restrictions imposed pursuant to paragraph (a); and
(c) The injured employee is unable to return to gainful employment at a gross wage that is equal to or greater than 80 percent of the gross wage that he was earning at the time of his injury.
2. If the treating physician or chiropractor imposes permanent restrictions on the injured employee for the purposes of paragraph (a) of subsection 1, he shall specify in writing:
(a) The medically objective findings upon which his determination is based; and
(b) A detailed description of the restrictions.
The treating physician or chiropractor shall [mail] deliver a copy of the findings and the description of the restrictions to the insurer.
3. If there is a question as to whether the restrictions imposed upon the injured employee are permanent, the employee may receive vocational rehabilitation services until a final determination concerning the duration of the restrictions is made.
4. Vocational rehabilitation services must cease as soon as the injured employee is no longer eligible for the services pursuant to subsection 1.
5. An injured employee is not entitled to vocational rehabilitation services solely because the position that he held at the time of his injury is no longer available.
6. An injured employee or his dependents are not entitled to accrue or be paid any money for vocational rehabilitation services during the time the injured employee is incarcerated.
7. Any injured employee eligible for compensation other than accident benefits may not be paid those benefits if he refuses counseling, training or other vocational rehabilitation services offered by the insurer. Except as otherwise provided in NRS 616B.185, an injured employee shall be deemed to have refused counseling, training and other vocational rehabilitation services while he is incarcerated.
8. If an insurer cannot locate an injured employee for whom it has ordered vocational rehabilitation services, the insurer may close his claim 21 days after the insurer determines that the employee cannot be located. The insurer must make a reasonable effort to locate the employee.
9. The reappearance of the injured employee after his claim has been closed does not automatically reinstate his eligibility for vocational rehabilitation benefits. If the employee wishes to reestablish his eligibility for such benefits, he must file a written application with the insurer to reinstate his claim. The insurer shall reinstate the employee's claim if good cause is shown for the employee's absence.
Sec. 29 NRS 616D.200 is hereby amended to read as follows:
616D.200 1. If the manager finds that an employer within the provisions of NRS 616B.633:
(a) Has failed to provide and secure compensation as required by the terms of chapters 616A to 616D, inclusive, of NRS; or
(b) Has provided and secured such compensation but has failed to maintain that compensation,
he shall make a determination thereon and [may] charge the employer an amount of not more than three times the premiums that would otherwise have been owed to the system pursuant to the terms of chapters 616A to 616D, inclusive, of NRS for the period that the employer was doing business in this state without providing, securing or maintaining that compensation, but not to exceed 6 years.
2. The manager shall [mail] deliver a copy of his determination to the employer. An employer who is aggrieved by the manager's determination may appeal from the determination pursuant to subsection 2 of NRS 616D.220.
3. Any employer within the provisions of NRS 616B.633 who fails to provide, secure or maintain compensation as required by the terms of chapters 616A to 616D, inclusive, of NRS, is:
(a) For the first offense, guilty of a gross misdemeanor.
(b) For a second or subsequent offense committed within 7 years after the previous offense, guilty of a felony, punishable by imprisonment in the state prison for a definite term of not less than 1 year nor more than 5 years or by a fine of not more than $10,000, or by both fine and imprisonment. A person who is sentenced to imprisonment becomes eligible for parole when he has served one-third of the definite term for which he has been sentenced, less any credit earned to reduce his sentence pursuant to chapter 209 of NRS.
Any criminal penalty imposed must be in addition to the amount charged pursuant to subsection 1.
Sec. 30 NRS 616D.220 is hereby amended to read as follows:
616D.220 1. If the manager finds that any employer or any employee, officer or agent of any employer has knowingly:
(a) Made a false statement or has knowingly failed to report a material fact concerning the amount of payroll upon which a premium is based; or
(b) Misrepresented the classification or duties of an employee,
he shall make a determination thereon and charge the employer's account an amount equal to three times the amount of the premium due. The manager shall [mail] deliver a copy of his determination to the employer.
2. An employer who is aggrieved by the manager's determination may appeal from the determination by filing a request for a hearing. The request must be filed within 30 days after the date on which a copy of the determination was [mailed] delivered to the employer. The manager shall hold a hearing within 30 days after he receives the request. The determination of the manager made pursuant to a hearing is a final decision for the purposes of judicial review.
3. A person who knowingly:
(a) Makes a false statement or representation or who knowingly fails to report a material fact concerning the amount of payroll upon which a premium is based; or
(b) Misrepresents the classification or duties of an employee,
is guilty of a gross misdemeanor. Any criminal penalty imposed must be in addition to the amount charged pursuant to subsection 1.
Sec. 31 NRS 616D.440 is hereby amended to read as follows:
616D.440 1. An insurer may withhold any payment due a provider of health care pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS, in whole or in part, upon receipt of reliable evidence that the provider of health care knowingly made a false statement or representation or knowingly concealed a material fact to obtain the payment. The insurer may withhold such a payment without first notifying the provider of health care of its intention to do so.
2. The insurer shall, within 5 days after withholding such a payment, send notice of the withholding to the provider of health care by certified mail [.] or electronic transmission. The notice must:
(a) Set forth the factual basis for the withholding, but need not disclose specific information regarding the insurer's investigation;
(b) Indicate that the payment is being withheld pursuant to the provisions of this section;
(c) Indicate that the payment is being withheld temporarily, as set forth in subsection 4, and describe the circumstances under which the withholding will be terminated;
(d) Specify the charge submitted by the provider of health care for which the payment is being withheld; and
(e) Notify the provider of health care of his right to appeal the withholding.
3. A provider of health care may appeal the decision of the insurer to withhold payment to an appeals officer pursuant to NRS 616C.360.
4. Any payment withheld pursuant to the provisions of this section must be made to the provider of health care if:
(a) The insurer or the attorney general determines that there is insufficient evidence to prove that the provider of health care knowingly made a false statement or representation or knowingly concealed a material fact to obtain the payment; or
(b) A final judgment or decree was rendered in favor of the provider of health care in a criminal proceeding arising out of the alleged misconduct.
Sec. 32 NRS 617.344 is hereby amended to read as follows:
617.3441. Except as otherwise provided in subsection 2, an employee who has incurred an occupational disease [,] and wishes to recover compensation pursuant to the provisions of this chapter, or a person acting on his behalf, shall , at the time of the employee's first medical examination for his occupational disease, file a claim for compensation with the [insurer] physician or chiropractor who conducts the examination. The employee must submit to a medical examination for that disease and file a claim for compensation within 90 days after the employee has knowledge of the disability and its relationship to his employment.
2. In the event of the death of the employee resulting from the occupational disease, a dependent of the employee, or a person acting on his behalf, shall file a claim for compensation with the insurer within 1 year after the death of the employee.
3. The claim for compensation must be filed on a form prescribed by the administrator. The form must include a provision which, if signed by the employee, authorizes the release of any medical or other information related to the claim to the insurer, the administrator, the employee's employer and any provider of health care who provides treatment to the employee.
Sec. 33 NRS 617.346 is hereby amended to read as follows:
617.3461. Except as otherwise provided in subsection 2, an employee or, in the event of the death of [the employee, his dependent,] an employee, a dependent, who does not file a notice of an occupational disease pursuant to NRS 617.342 and a claim for compensation pursuant to 617.344 is barred from recovering compensation pursuant to the provisions of this chapter . [if he fails to file a notice of an occupational disease pursuant to NRS 617.342 or a claim for compensation pursuant to NRS 617.344.]
2. An insurer may excuse the failure to file a notice of an occupational disease or claim for compensation pursuant to the provisions of this section if:
(a) The employee's disease or another cause beyond his control prevented him from providing the notice or the claim;
(b) The failure was caused by the employee's or dependent's mistake or ignorance of fact or of law;
(c) The failure was caused by the physical or mental inability of the employee or the dependent; or
(d) The failure was caused by fraud, misrepresentation or deceit.
Sec. 34 NRS 617.352 is hereby amended to read as follows:
617.352 1. A treating physician or chiropractor shall, within 3 working days after he first [treats] examines an employee who has incurred an occupational disease, complete and [mail to] file with the employer of the employee and [to] the employer's insurer, [a] the claim for compensation [.] filed with the physician or chiropractor by the employee pursuant to NRS 617.344. If the employer is a self-insured employer, the treating physician or chiropractor shall [mail] file the claim for compensation [to] with the employer's third-party administrator. If the physician or chiropractor files the claim for compensation by electronic transmission, he shall, upon request, mail to the insurer or third-party administrator the form that contains the original signatures of the employee and the physician or chiropractor. The form must be mailed within 7 days after receiving such a request.
2. [A claim for compensation required by subsection 1 must be on a form prescribed by the administrator.
3.] If a claim for compensation is accompanied by a certificate of disability, the certificate must include a description of any limitation or restrictions on the employee's ability to work.
[4.] 3. Each physician, chiropractor and medical facility that treats employees who have incurred occupational diseases, each insurer, third-party administrator and employer, and the division shall maintain at their offices a sufficient supply of the forms prescribed by the administrator for filing a claim for compensation.
[5.] 4. The administrator shall impose an administrative fine of not more than $1,000 against a physician or chiropractor for each violation of subsection 1.
Sec. 35 NRS 617.354 is hereby amended to read as follows:
617.354 1. Within 6 working days after the receipt of a claim for compensation from a physician or chiropractor, an employer shall complete and [mail to] file with his insurer or third-party administrator an employer's report of industrial injury or occupational disease.
2. The report must:
(a) Be on a form prescribed by the administrator;
(b) Be signed by the employer or his designee;
(c) Contain specific answers to all questions required by the regulations of the department; and
(d) Be accompanied by a statement of the wages of the employee if the claim for compensation received from the treating physician or chiropractor indicates that the employee is expected to be off work for 5 days or more.
3. An employee of the system shall not complete the report required by subsection 1 or any other form relating to the occupational disease on behalf of the employer unless the employer:
(a) Is not in business;
(b) Has not been located by the system within 5 working days after receipt of a claim for compensation; or
(c) Refuses to complete the report.
4. An employer who files the report required by subsection 1 by electronic transmission shall, upon request, mail to the insurer or third-party administrator the form that contains the original signature of the employer or his designee. The form must be mailed within 7 days after receiving such a request.
5. The administrator shall impose an administrative fine of not more than $1,000 against an employer for each violation of this section.
Sec. 36 NRS 617.356 is hereby amended to read as follows:
617.356An insurer shall accept or deny responsibility for compensation under this chapter within 30 working days after [claims] a claim for compensation [are] is received pursuant to [both NRS 617.344 and] NRS 617.352.
Sec. 37 NRS 617.358 is hereby amended to read as follows:
617.3581. An employee or his dependents are not entitled to receive compensation pursuant to the provisions of this chapter unless [the] :
(a) The employee submits to a medical examination for an occupational disease that arose out of and in the course of his employment within 90 days after the employee has knowledge of the disability and its relationship to his employment; and
(b) The employee or his dependents establish by a preponderance of the evidence that the employee's occupational disease arose out of and in the course of his employment.
2. If the employee files a notice of an occupational disease pursuant to NRS 617.342 after his employment has been terminated for any reason, there is a rebuttable presumption that the occupational disease did not arise out of and in the course of his employment.
Sec. 38 NRS 617.401 is hereby amended to read as follows:
617.4011. An employee may receive compensation from the uninsured employers' claim fund if:
(a) He was hired in this state or he is regularly employed in this state;
(b) He contracts an occupational disease as a result of work performed in this state;
(c) [He files a] His claim for compensation is filed with the system pursuant to NRS [617.344;] 617.352;
(d) He files a written notice with the division; and
(e) He makes an irrevocable assignment to the division of a right to be subrogated to the rights of the employee pursuant to NRS 616C.215.
2. If the system receives a claim pursuant to subsection 1, the system shall immediately:
(a) Notify the employer of the claim;
(b) Deliver to the claimant any forms necessary to make a claim pursuant to this section; and
(c) Notify the division of the claim by sending a copy of the claim, any evidence regarding the claim and any evidence indicating that the employer was uninsured.
3. For the purposes of this section, the employer has the burden of proving that he provided mandatory coverage for occupational diseases for the employee or that he was not required to maintain industrial insurance for the employee.
4. Any employer who has failed to provide mandatory coverage required by the provisions of this chapter is liable for all payments made on his behalf, including, but not limited to, any benefits, administrative costs or attorney's fees paid from the uninsured employers' claim fund or incurred by the division.
5. The division:
(a) May recover from the employer the payments made by the division that are described in subsection 4 and any accrued interest by bringing a civil action in district court.
(b) In any civil action brought against the employer, is not required to prove that negligent conduct by the employer was the cause of the occupational disease.
(c) May enter into a contract with any person to assist in the collection of any liability of an uninsured employer.
(d) In lieu of a civil action, may enter into an agreement or settlement regarding the collection of any liability of an uninsured employer.
6. The division shall:
(a) Determine whether the employer was insured within 30 days after receiving notice of the claim from the employee.
(b) Assign the claim to the system for administration of the claim, payment of benefits and reimbursement of costs of administration and benefits paid to the system.
Upon determining that a claim is invalid, the system shall notify the claimant, the named employer and the division that the claim will not be assigned for benefits from the uninsured employers' claim fund.
7. Any party aggrieved by a decision regarding the administration of an assigned claim or a decision made by the division or by the system regarding any claim made pursuant to this section may appeal that decision within 60 days after the decision is rendered to the hearings division of the department of administration in the manner provided by NRS 616C.305 and 616C.315 to 616C.385, inclusive.
8. All insurers shall bear a proportionate amount of a claim made pursuant to this chapter, and are entitled to a proportionate amount of any collection made pursuant to this section as an offset against future liabilities.
9. An uninsured employer is liable for the interest on any amount paid on his claims from the uninsured employers' claim fund. The interest must be calculated at a rate equal to the prime rate at the largest bank in Nevada, as ascertained by the commissioner of financial institutions, on January 1 or July 1, as the case may be, immediately preceding the date of the claim, plus 3 percent, compounded monthly, from the date the claim is paid from the fund until payment is received by the division from the employer.
10. Attorney's fees recoverable by the division pursuant to this section must be:
(a) If a private attorney is retained by the division, paid at the usual and customary rate for that attorney.
(b) If the attorney is an employee of the division, paid at the rate established by regulations adopted by the division.
Any money collected must be deposited to the uninsured employers' claim fund.
11. In addition to any other liabilities provided for in this section, the administrator may impose an administrative fine of not more than $10,000 against an employer if the employer fails to provide mandatory coverage required by the provisions of this chapter.
Sec. 39 Section 1 of chapter 580, Statutes of Nevada 1995, at page 1997, is hereby amended to read as follows:

Section 1. NRS 612.265 is hereby amended to read as follows:

612.265 1. Except as otherwise provided in this section, information obtained from any employing unit or person pursuant to the administration of this chapter and any determination as to the benefit rights of any person is confidential and may not be disclosed or be open to public inspection in any manner which would reveal the person's or employing unit's identity.

2. Any claimant or his legal representative is entitled to information from the records of the division, to the extent necessary for the proper presentation of his claim in any proceeding pursuant to this chapter. A claimant or an employing unit is not entitled to information from the records of the division for any other purpose.

3. Subject to such restrictions as the administrator may by regulation prescribe, the information obtained by the division may be made available to:

(a) Any agency of this or any other state or any federal agency charged with the administration or enforcement of [an] laws relating to unemployment compensation , [law,] public assistance [law, workman's] , workers' compensation or labor [law,] and industrial relations, or the maintenance of a system of public employment offices;

(b) Any state or local agency for the enforcement of child support;

(d) The department of taxation; and

(e) The state contractors' board in the performance of its duties to enforce the provisions of chapter 624 of NRS.

Information obtained in connection with the administration of the employment service may be made available to persons or agencies for purposes appropriate to the operation of a public employment service or a public assistance program.

4. Upon written request made by a public officer of a local government, the administrator shall furnish from the records of the division the name, address and place of employment of any person listed in the records of employment of the division. The request must set forth the social security number of the person about whom the request is made and contain a statement signed by proper authority of the local government certifying that the request is made to allow the proper authority to enforce a law to recover a debt or obligation owed to the local government. The information obtained by the local government is confidential and may not be used or disclosed for any purpose other than the collection of a debt or obligation owed to that local government. The administrator may charge a reasonable fee for the cost of providing the requested information.

5. The administrator may publish or otherwise provide information on the names of employers, their addresses, their type or class of business or industry, and the approximate number of employees employed by each such employer, if the information released will assist unemployed persons to obtain employment or will be generally useful in developing and diversifying the economic interests of this state. Upon request by a state agency which is able to demonstrate that its intended use of the information will benefit the residents of this state, the administrator may, in addition to the information listed in this subsection, disclose the number of employees employed by each employer and the total wages paid by each employer. The administrator may charge a fee to cover the actual costs of any administrative expenses relating to the disclosure of this information to a state agency. The administrator may require the state agency to certify in writing that the agency will take all actions necessary to maintain the confidentiality of the information and prevent its unauthorized disclosure.

6. Upon request therefor the administrator shall furnish to any agency of the United States charged with the administration of public works or assistance through public employment, and may furnish to any state agency similarly charged, the name, address, ordinary occupation and employment status of each recipient of benefits and the recipient's rights to further benefits pursuant to this chapter.

7. To further a current criminal investigation, the chief executive officer of any law enforcement agency of this state may submit a written request to the administrator that he furnish, from the records of the division, the name, address and place of employment of any person listed in the records of employment of the division. The request must set forth the social security number of the person about whom the request is made and contain a statement signed by the chief executive officer certifying that the request is made to further a criminal investigation currently being conducted by the agency. Upon receipt of such a request, the administrator shall furnish the information requested. He may charge a fee to cover the actual costs of any related administrative expenses.

8. In addition to the provisions of subsection 5, the administrator shall provide lists containing the names and addresses of employers, the number of employees employed by each employer and the total wages paid by each employer to the department of taxation, upon request, for use in verifying returns for the business tax. The administrator may charge a fee to cover the actual costs of any related administrative expenses.

9. Each insurer shall submit to the administrator a list containing the name of each person who received benefits pursuant to chapters 616A to 616D, inclusive, or 617 of NRS during the preceding month and request that the administrator compare the information so provided with the records of the division regarding persons claiming benefits pursuant to chapter 612 of NRS for the same period. The information submitted by an insurer must be in a form determined by the administrator and must contain the social security number of each such person. Upon receipt of [such a] the request, the administrator shall make such a comparison and [provide to the insurer a list containing the name, address and social security number of each person who appears,] , if it appears from the information submitted [, to be] that a person is simultaneously claiming benefits under chapter 612 of NRS and under chapters 616A to 616D, inclusive, or 617 of NRS [.] , the administrator shall notify the attorney general or any other appropriate law enforcement agency. Upon receipt of a request therefor, the administrator shall provide to the insurer a copy of the form used by any person whose name appears on the list to claim benefits under chapter 612 of NRS. The administrator shall charge a fee to cover the actual costs of any related administrative expenses. The insurer shall use the information obtained pursuant to this subsection only to further a current investigation. The insurer shall not disclose the information for any other purpose. As used in this subsection, "insurer" has the meaning ascribed to it in NRS 616A.270.

10. The administrator may request the Comptroller of the Currency of the United States to cause an examination of the correctness of any return or report of any national banking association rendered pursuant to the provisions of this chapter, and may in connection with the request transmit any such report or return to the Comptroller of the Currency of the United States as provided in Section 3305(c) of the Internal Revenue Code of 1954.

11. If any employee or member of the board of review or the administrator or any employee of the administrator, in violation of the provisions of this section, discloses information obtained from any employing unit or person in the administration of this chapter, or if any person who has obtained a list of applicants for work, or of claimants or recipients of benefits pursuant to this chapter uses or permits the use of the list for any political purpose, he is guilty of a gross misdemeanor.

12. All letters, reports or communications of any kind, oral or written, from the employer or employee to each other or to the division or any of its agents, representatives or employees are privileged and must not be the subject matter or basis for any lawsuit if the letter, report or communication is written, sent, delivered or prepared pursuant to the requirements of this chapter.

Sec. 40 Section 54 of chapter 580, Statutes of Nevada 1995, at page 2011, is hereby amended to read as follows:

Sec. 54. NRS 616B.012 is hereby amended to read as follows:

616B.012 1. Except as otherwise provided in this section and in NRS 616B.015, 616B.021 and 616C.205, information obtained from any insurer, employer or employee is confidential and may not be disclosed or be open to public inspection in any manner which would reveal the person's identity.

2. Any claimant or his legal representative is entitled to information from the records of the insurer, to the extent necessary for the proper presentation of a claim in any proceeding under chapters 616A to 616D, inclusive, of NRS.

3. An insurer, the administrator, an employer or a provider of health care is entitled to any medical or other information released by an injured employee pursuant to subsection 3 of NRS 616C.020 and subsection 3 of NRS 617.344.

4. The division and administrator are entitled to information from the records of the insurer which is necessary for the performance of their duties. The [manager] administrator may, by regulation, prescribe the manner in which otherwise confidential information may be made available to:

(a) Any agency of this or any other state charged with the administration or enforcement of laws relating to industrial insurance, unemployment compensation, public assistance or labor and industrial relations;

(b) Any state or local agency for the enforcement of child support;

(d) The department of taxation; and

(e) The state contractors' board in the performance of its duties to enforce the provisions of chapter 624 of NRS.

Information obtained in connection with the administration of a program of industrial insurance may be made available to persons or agencies for purposes appropriate to the operation of a program of industrial insurance.

5. Upon written request made by a public officer of a local government, the manager shall furnish from the records of the insurer, the name, address and place of employment of any person listed in the records of the insurer. The request must set forth the social security number of the person about whom the request is made and contain a statement signed by proper authority of the local government certifying that the request is made to allow the proper authority to enforce a law to recover a debt or obligation owed to the local government. The information obtained by the local government is confidential and may not be used or disclosed for any purpose other than the collection of a debt or obligation owed to that local government. The manager may charge a reasonable fee for the cost of providing the requested information.

6. To further a current criminal investigation, the chief executive officer of any law enforcement agency of this state may submit a written request to the [manager] administrator that he furnish from the records of the insurer, the name, address and place of employment of any person listed in the records of the insurer. The request must set forth the social security number of the person about whom the request is made and contain a statement signed by the chief executive officer certifying that the request is made to further a criminal investigation currently being conducted by the agency. Upon receipt of a request, the [manager] administrator shall furnish the information requested. He may charge a reasonable fee to cover any related administrative expenses.

7. The [manager] administrator shall provide lists containing the names and addresses of employers, the number of employees employed by each employer and the total wages paid by each employer to the department of taxation, upon request, for its use in verifying returns for the business tax. The [manager] administrator may charge a reasonable fee to cover any related administrative expenses.

8. If the [manager or] administrator, any employee of the [manager,] division or the commissioner in violation of this section, discloses information obtained from files of claimants or policyholders, or if any person who has obtained a list of claimants or policyholders under chapters 616A to 616D, inclusive, of NRS uses or permits the use of the list for any political purposes, he is guilty of a gross misdemeanor.

9. All letters, reports or communications of any kind, oral or written, from the insurer, or any of its agents, representatives or employees are privileged and must not be the subject matter or basis for any lawsuit if the letter, report or communication is written, sent, delivered or prepared pursuant to the requirements of chapters 616A to 616D, inclusive, of NRS.

Sec. 41 Section 55 of chapter 580, Statutes of Nevada 1995, at page 2012, is hereby amended to read as follows:

Sec. 55. NRS 616B.018 is hereby amended to read as follows:

616B.018 1. The administrator shall establish a method of indexing claims for compensation that will make information concerning the claimants of one insurer available to other insurers.

2. Every [self-insured employer, association of self-insured public or private employers and the system] insurer shall provide information as required by the administrator for establishing and maintaining the index of claims.

3. If an employee files a claim for compensation, or if a claim for compensation is filed on behalf of an employee, the insurer is entitled to receive from the administrator a list of the prior claims of the employee. If the insurer desires to inspect the files of another insurer that are related to one or more of the prior claims, he must provide the other insurer with a copy of the claim for compensation filed by or on behalf of the employee.

4. Any information obtained from the index of claims must be admitted into evidence in any hearing before an appeals officer, a hearing officer or the administrator.

5. The division may assess and collect a reasonable fee for its services provided pursuant to this section. The fee must be payable monthly or at such other intervals as determined by the administrator.

Sec. 42 Section 56 of chapter 580, Statutes of Nevada 1995, at page 2012, is hereby amended to read as follows:

Sec. 56. NRS 616B.021 is hereby amended to read as follows:

616B.021 1. An insurer shall provide access to the files of claims in its offices.

2. A file is available for inspection during regular business hours by the employee or his designated agent, the employer or his designated agent and the administrator or his designated agent.

3. Upon request, the insurer shall make copies of anything in the file and may charge a reasonable fee for this service. Copies of materials in the file which are requested by the administrator or his designated agent, or the Nevada attorney for injured workers or his designated agent must be provided free of charge.

4. Except as otherwise provided in NRS 616C.235, if a claim has been closed for at least 1 year, the insurer may microphotograph or film any of its records relating to that claim. The microphotographs or films must be placed in convenient and accessible files . [, and provision must be made for preserving, examining and using the records.

5. This section does not require the]

5. The administrator shall adopt regulations concerning the:

(a) Maintenance of records in a file on current or closed claims;

(b) Preservation, examination and use of records which have been microphotographed or filmed by an insurer; and

(c) Location of a file on a closed claim.

6. This section does not require an insurer to allow inspection or reproduction of material regarding which a legal privilege against disclosure has been conferred.

Sec. 43 Section 104 of chapter 580, Statutes of Nevada 1995, at page 2032, is hereby amended to read as follows:

Sec. 104. NRS 616D.200 is hereby amended to read as follows:

616D.200 1. If the [manager] administrator finds that an employer within the provisions of NRS 616B.633:

(a) Has failed to provide and secure compensation as required by the terms of chapters 616A to 616D, inclusive, of NRS; or

(b) Has provided and secured such compensation but has failed to maintain that compensation,

he shall make a determination thereon based on any information that is within his possession or that may come within his possession and charge the employer an amount of not more than three times the premiums that would otherwise have been owed to the system if he had been insured by the system pursuant to the terms of chapters 616A to 616D, inclusive, of NRS for the period that the employer was doing business in this state without providing, securing or maintaining that compensation, but not to exceed 6 years. Any money collected by the administrator pursuant to this subsection must be deposited into the uninsured employers' claim fund.

2. [The manager shall deliver a copy of his determination to the employer.] If the manager is not satisfied with the amount of a premium required to be paid to the system by any person, he may compute and determine the amount required to be paid on the basis of any information within his possession or which may come into his possession. One or more determinations of a deficiency may be made of the amount due for one or more periods.

3. Except for a determination made pursuant to subsection 1, a notice of a determination of a deficiency issued by the manager must be served personally or mailed within 3 years after the last day of the calendar month following the period for which the amount that is proposed to be determined is due. An employer who is aggrieved by [the manager's] a determination made pursuant to this section or NRS 360.300 may appeal from the determination pursuant to subsection 2 of NRS 616D.220.

[3.] 4. Any employer within the provisions of NRS 616B.633 who fails to provide, secure or maintain compensation as required by the terms of chapters 616A to 616D, inclusive, of NRS, is:

(a) For the first offense, guilty of a gross misdemeanor.

(b) For a second or subsequent offense committed within 7 years after the previous offense, guilty of a felony, punishable by imprisonment in the state prison for a definite term of not less than 1 year nor more than 5 years or by a fine of not more than $10,000, or by both fine and imprisonment. A person who is sentenced to imprisonment becomes eligible for parole when he has served one-third of the definite term for which he has been sentenced, less any credit earned to reduce his sentence pursuant to chapter 209 of NRS.

Any criminal penalty imposed must be in addition to the amount charged pursuant to subsection 1.

Sec. 44 Section 106 of chapter 580, Statutes of Nevada 1995, at page 2033, is hereby amended to read as follows:

Sec. 106. NRS 616D.220 is hereby amended to read as follows:

616D.220 1. If the [manager] administrator finds that any employer or any employee, officer or agent of any employer has knowingly:

(a) Made a false statement or has knowingly failed to report a material fact concerning the amount of payroll upon which a premium is based; or

(b) Misrepresented the classification or duties of an employee,

he shall make a determination thereon and charge the employer's account an amount equal to three times the amount of the premium due. The [manager] administrator shall deliver a copy of his determination to the employer.

2. An employer who is aggrieved by the [manager's] administrator's determination may appeal from the determination by filing a request for a hearing. The request must be filed within 30 days after the date on which a copy of the determination was delivered to the employer. The [manager] administrator shall hold a hearing within 30 days after he receives the request. The [determination] decision of the [manager] administrator made pursuant to a hearing is a final decision for the purposes of judicial review. The amount of the determination as finally decided by the administrator becomes due within 30 days after the decision is served on the employer.

3. A person who knowingly:

(a) Makes a false statement or representation or who knowingly fails to report a material fact concerning the amount of payroll upon which a premium is based; or

(b) Misrepresents the classification or duties of an employee,

is guilty of a gross misdemeanor. Any criminal penalty imposed must be in addition to the amount charged pursuant to subsection 1.

Sec. 45 The amendatory provisions of sections 20 and 37 of this act must not be applied to reduce the amount of compensation and benefits of an employee who is receiving compensation and benefits for an industrial injury or an occupational disease before October 1, 1997, or to reduce the amount of the compensation and benefits of the dependents of such an employee.
Sec. 46 1. This section and sections 1 to 9, inclusive, 11, 12 and 14 to 45, inclusive, of this act become effective on October 1, 1997.
2. Sections 10 and 13 of this act become effective at 12:01 a.m. on July 1, 1999.