THE EIGHTY-EIGHTH DAY
Carson City(Thursday), April 29, 1999
Senate called to order at 11:45 a.m.
President Hunt presiding.
Roll called.
All present.
Prayer by the Chaplain, Father Jeff Paul.
Almighty God, You have given us this good land as our heritage; Grant that we may always prove ourselves mindful of Your favor. Bless our state with honorable industry, sound learning, and upright manners. Endue with the spirit of wisdom those to whom we entrust the authority of government, that there may be justice and peace for the common good; in Your Name we pray.
Amen.
Pledge of allegiance to the Flag.
Senator Raggio moved that further reading of the Journal be dispensed with, and the President and Secretary be authorized to make the necessary corrections and additions.
Motion carried.
REPORTS OF COMMITTEES
Madam President:
Your Committee on Judiciary, to which was referred Assembly Bill No. 464, has had the same under consideration, and begs leave to report the same back with the recommendation: Do pass, and place on Consent Calendar.
Mark A. James, Chairman
Madam President:
Your Committee on Natural Resources, to which was referred Assembly Bill No. 438, has had the same under consideration, and begs leave to report the same back with the recommendation: Do pass.
Also, your Committee on Natural Resources, to which were referred Assembly Bills Nos. 135, 136, 138, 437, has had the same under consideration, and begs leave to report the same back with the recommendation: Do pass, and place on Consent Calendar.
Also, your Committee on Natural Resources, to which was referred Assembly Concurrent Resolution No. 24, has had the same under consideration, and begs leave to report the same back with the recommendation: Be adopted.
Dean A. Rhoads, Chairman
MESSAGES FROM THE ASSEMBLY
Assembly Chamber, Carson City, April 28, 1999
To the Honorable the Senate:
I have the honor to inform your honorable body that the Assembly on this day passed Senate Bills Nos. 24, 92, 101, 175, 382; Assembly Bills Nos. 151, 288; Senate Joint Resolution No. 19.
Also, I have the honor to inform your honorable body that the Assembly on this day passed, as amended, Assembly Bills Nos. 158, 656, 658.
Also, I have the honor to inform your honorable body that the Assembly on this day adopted Senate Concurrent Resolution No. 35.
Also, I have the honor to inform your honorable body that the Assembly amended, and on this day adopted, as amended, Senate Concurrent Resolution No. 16, Amendment No. 718, and respectfully requests your honorable body to concur in said amendment.
Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Assembly Bill No. 55.
Susan Furlong Reil
Assistant Chief Clerk of the Assembly
INTRODUCTION, FIRST READING AND REFERENCE
Assembly Bill No. 151.
Senator Rawson moved that the bill be referred to the Committee on Finance.
Motion carried.
Assembly Bill No. 158.
Senator Rawson moved that the bill be referred to the Committee on Judiciary.
Motion carried.
Assembly Bill No. 288.
Senator Rawson moved that the bill be referred to the Committee on Finance.
Motion carried.
Assembly Bill No. 656.
Senator Rawson moved that the bill be referred to the Committee on Finance.
Motion carried.
Assembly Bill No. 658.
Senator Rawson moved that the bill be referred to the Committee on Finance.
Motion carried.
SECOND READING AND AMENDMENT
Senate Bill No. 37.
Bill read second time.
The following amendment was proposed by the Committee on Commerce and Labor:
Amendment No. 730.
Amend the bill as a whole by deleting sections 1 through 13 and adding new sections designated sections 1 through 141 and the leadlines of repealed sections, following the enacting clause, to read as follows:
“Section 1. NRS 612.265 is hereby amended to read as follows:
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 laws relating to unemployment compensation, public assistance, workers’ compensation or labor 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;
(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 or a] A private carrier that provides industrial insurance in this state 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 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 or the] private carrier must be in a form determined by the administrator and must contain the social security number of each such person. Upon receipt of the request, the administrator shall make such a comparison and, if it appears from the information submitted 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. The administrator shall charge a fee to cover the actual costs of any related administrative expenses.
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. 3. If there is a conflict between the provisions of chapters 616A to 617, inclusive, of NRS and the provisions of Title 57 of NRS, the provisions of chapters 616A to 617, inclusive, of NRS control.
Sec. 4. “State industrial insurance system” means that entity established by section 79 of chapter 642, Statutes of Nevada 1981, at page 1449.
Sec. 5. NRS 616A.015 is hereby amended to read as follows:
2. All proceedings must be had and rights determined under the provisions of [chapter 111, Statutes of Nevada 1913, and acts amendatory thereof and supplemental thereto,] chapters 616A to 617, inclusive, of NRS on any claims or actions pending or causes of action existing on [June 30, 1947.] December 31, 1999.
Sec. 6. NRS 616A.025 is hereby amended to read as follows:
Sec. 7. NRS 616A.045 is hereby amended to read as follows:
Sec. 8. NRS 616A.127 is hereby amended to read as follows:
(a)] Any:
1. Teacher who, as part of the program to offer pupils who are enrolled in grades 7 through 12, inclusive, the skills to make the transition from school to careers established pursuant to NRS 388.368, works without pay for an employer other than the school district, university or community college with which the teacher is employed, and is not specifically covered by any other provisions of chapters 616A to 616D, inclusive, of NRS, while engaging in that work; or
[(b)] 2. Pupil who, as part of the program to offer pupils who are enrolled in grades 7 through 12, inclusive, the skills to make the transition from school to careers established pursuant to NRS 388.368, works without pay for an employer,
shall be deemed for the purposes of chapters 616A to 616D, inclusive, of NRS to be an employee of that employer at the wage of $900 per month. The teacher or pupil is entitled to the benefits of those chapters when the employer complies with the provisions of those chapters and the regulations adopted pursuant thereto.
[2. A person who is insured by the system and is deemed to be the employer of a teacher or pupil pursuant to subsection 1 shall:
(a) Report to the insurer the name of the teacher or pupil and the classification of risk assigned for the teacher or pupil; and
(b) Pay the premium for each month or portion thereof for which the teacher or pupil performs work without pay for the employer.]
Sec. 9. NRS 616A.270 is hereby amended to read as follows:
1. [The state industrial insurance system;
2.] A self-insured employer;
[3.] 2. An association of self-insured public employers;
[4.] 3. An association of self-insured private employers; and
[5.] 4. A private carrier.
Sec. 10. NRS 616A.290 is hereby amended to read as follows:
Sec. 11. NRS 616A.400 is hereby amended to read as follows:
616A.400 The administrator shall:
1. Prescribe by regulation the time within which adjudications and awards must be made.
2. Regulate forms of notices, claims and other blank forms deemed proper and advisable.
3. Prescribe by regulation the methods by which an insurer may approve or reject claims, and may determine the amount and nature of benefits payable in connection therewith.
4. Prescribe by regulation the method for reimbursing an injured employee for expenses necessarily incurred for travel more than 20 miles one way from his residence or place of employment to his destination as a result of an industrial injury.
5. Determine whether an insurer has provided adequate facilities in this state to administer claims and for the retention of a file on each claim.
6. Evaluate the services of private carriers [and the system] provided to employers in:
(a) Controlling losses; and
(b) Providing information on the prevention of industrial accidents or occupational diseases.
7. Conduct such investigations and examinations of insurers as he deems reasonable to determine whether any person has violated the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS or to obtain information useful to enforce or administer these chapters.
8. Except with respect to any matter committed by specific statute to the regulatory authority of another person or agency, adopt such other regulations as he deems necessary to carry out the provisions of chapters 616A to 617, inclusive, of NRS.
Sec. 12. NRS 616A.465 is hereby amended to read as follows:
616A.465 1. Except as otherwise provided in this section, the division shall:
(a) Regulate insurers pursuant to chapters 616A to 617, inclusive, of NRS; [and]
(b) Investigate insurers regarding compliance with statutes and the division’s regulations[.] ;
(c) Determine whether an employee leasing company is entitled to a certificate of registration pursuant to NRS 616B.673; and
(d) Regulate employee leasing companies pursuant to the provisions of NRS 616B.670 to 616B.697, inclusive.
2. The commissioner is responsible for reviewing rates, investigating the solvency of insurers, authorizing private carriers pursuant to chapter 680A of NRS and certifying:
(a) Self-insured employers pursuant to NRS 616B.300 to 616B.330, inclusive, and 616B.336;
(b) Associations of self-insured public or private employers pursuant to NRS 616B.350 to 616B.446, inclusive; and
(c) Third-party administrators pursuant to chapter 683A of NRS.
3. The department of administration is responsible for contested claims relating to industrial insurance pursuant to NRS 616C.310 to 616C.385, inclusive. The administrator is responsible for administrative appeals pursuant to NRS 616B.215.
4. The Nevada attorney for injured workers is responsible for legal representation of claimants pursuant to NRS 616A.435 to 616A.460, inclusive, and 616D.120.
5. The division is responsible for the investigation of complaints. If a complaint is filed with the division, the administrator shall cause to be conducted an investigation which includes a review of relevant records and interviews of affected persons. If the administrator determines that a violation may have occurred, the administrator shall proceed in accordance with the provisions of NRS 616D.120 and 616D.130.
Sec. 13. NRS 616A.470 is hereby amended to read as follows:
2. All compensation must be on the basis of actual cost and not on a basis which includes any subsidy for the [system, the] office of the Nevada attorney for injured workers, the division or other employers.
Sec. 14. NRS 616A.475 is hereby amended to read as follows:
2.] Every self-insured employer, association of self-insured public or private employers or private carrier shall furnish to the administrator, upon request, all information required to carry out the purposes of chapters 616A to 616D, inclusive, of NRS. The administrator or any person employed by him for that purpose, may examine, under oath, any employer or officer, agent or employee thereof.
[3.] 2. Every insured employer shall keep on hand constantly a sufficient supply of blank forms furnished by the insurer.
Sec. 15. NRS 616A.485 is hereby amended to read as follows:
(a) The accuracy of the payroll;
(b) The number of persons employed; and
(c) Any other information necessary for the administration of chapters 616A to 617, inclusive, of NRS.
2.] The books, records and payroll of an employer who is self-insured, a member of an association of self-insured public or private employers or insured by a private carrier must be open to inspection by the administrator or his auditor or agent [in the manner prescribed in subsection 1.] to determine:
1. The accuracy of the payroll;
2. The number of persons employed; and
3. Any other information necessary for the administration of chapters 616A to 617, inclusive, of NRS.
Sec. 17. 1. The chief executive officer of any successor organization to the state industrial insurance system shall continue to hold in trust any money paid to the system for the purpose of providing compensation for industrial accidents and occupational diseases and administrative expenses incidental thereto. The successor organization shall use that money only for the purpose for which it was paid.
2. If any successor organization to the state industrial insurance system ceases to provide industrial insurance in this state, all money held in trust pursuant to subsection 1 must be delivered to the commissioner on a date that ensures that all benefits will be paid to qualified claimants under policies of industrial insurance previously issued by the state industrial insurance system or the successor organization. The commissioner shall deposit the money delivered to him pursuant to this subsection in the state insurance fund.
Sec. 18. 1. There is hereby established in the state treasury the state insurance fund. The commissioner shall administer the fund.
2. The money in the fund may be invested by the state treasurer in accordance with the provisions of NRS 355.140, 355.150 and 355.160.
3. Any money delivered to the commissioner pursuant to section 17 of this act and NRS 696B.360 must be deposited in the fund and be held in trust by the commissioner as custodian thereof for the purpose of providing compensation for industrial accidents and occupational diseases and for administrative expenses incidental thereto.
Sec. 19. 1. Any successor organization to the state industrial insurance system may take as credit as an asset or as a deduction from liability on account of reinsurance for reinsurance ceded to an assuming alien insurer with security based on discounted reserves for losses that were maintained by the system for accounting periods beginning before July 1, 1995, at a rate not to exceed 6 percent.
2. As used in this section, “alien insurer” has the meaning ascribed to it in NRS 679A.090.
Sec. 20. 1. Except as otherwise provided in this section, all officers and employees of the system are exempt from the provisions of chapter 284 of NRS and are entitled to such terms and conditions of employment as the manager prescribes.
2. An employee hired by the system as a classified employee before July 1, 1999, retains his rights to reemployment, including, without limitation, the right to be placed on an appropriate reemployment list maintained by the department of personnel and to be allowed a preference on that list. The department of personnel shall maintain such an employee on the reemployment list for at least 24 months after the effective date of the layoff or until he is reemployed by the executive branch of state government, whichever occurs earlier.
3. The manager shall comply with, and the officers and employees of the system are entitled to the rights and privileges granted by, those provisions of chapter 284 of NRS governing:
(a) Sick and disability leave as set forth on NRS 284.355;
(b) Annual leave as set forth in NRS 284.350;
(c) Catastrophic leave as set forth in NRS 284.362 to 284.3626, inclusive;
(d) Leave of absence for military service as set forth in NRS 284.365;
(e) Leave of absence without pay as set forth in NRS 284.360; and
(f) The plan to encourage continuity of service as set forth in NRS 284.177.
4. If the manager lays off an employee described in subsection 2, the manager shall:
(a) Give the employee at least 60 days’ written notice before the effective date of the layoff; and
(b) Provide the department of personnel with such information as is necessary for the department to ensure the employee receives his rights to reemployment.
5. As used in this section, “rights to reemployment” means all rights to be reemployed by the executive branch of state government established by the provisions of chapter 284 of NRS and the regulations adopted pursuant thereto. The term does not include the right to displace another person employed by the executive branch of state government in lieu of being laid off.
Sec. 21. NRS 616B.027 is hereby amended to read as follows:
616B.027 1. Every insurer shall provide:
(a) An office in this state operated by the insurer or its third-party administrator in which:
(1) A complete file of each claim is kept;
(2) Persons authorized to act for the insurer and, if necessary, licensed pursuant to chapter 683A of NRS, may receive information related to a claim and provide the services to an employer and his employees required by chapters 616A to 617, inclusive, of NRS; and
(3) An employee or his employer, upon request, is provided with information related to a claim filed by the employee or a copy of the information from the file for that claim.
(b) Statewide, toll-free telephone service to that office or accept collect calls from injured employees.
2. [The system and each] Each private carrier shall provide:
(a) Adequate services to its insured employers in controlling losses; and
(b) Adequate information on the prevention of industrial accidents and occupational diseases.
Sec. 22. NRS 616B.030 is hereby amended to read as follows:
616B.030 1. Every policy of insurance issued by a private carrier : [or the system:]
(a) Must be in writing;
(b) Must contain the insuring agreements and exclusions;
(c) Is subject to chapters 616A to 617, inclusive, of NRS and regulations adopted pursuant to those chapters; and
(d) If it contains a provision inconsistent with this chapter or chapter 616A, 616C, 616D or 617 of NRS, shall be deemed to be reformed to conform with that chapter.
2. The commissioner shall, by regulation, prescribe the basic policy to be used by private carriers.
Sec. 23. NRS 616B.036 is hereby amended to read as follows:
(a) The members of the group or organization are engaged in a common trade or business; and
(b) The formation and operation of a program of industrial insurance for the organization or association will substantially assist in the handling of claims and the prevention of accidents for the employers as a group.
2. The commissioner must approve each group or organization before a policy of industrial insurance may be issued to it.
3. The commissioner shall adopt regulations for the qualification of groups for industrial insurance.
Sec. 24. NRS 616B.050 is hereby amended to read as follows:
2. The system is a public agency which administers and is supported by the state insurance fund. The executive and legislative departments of the state government shall regularly review the system.
3. The system is entitled but not required to use any services provided to state agencies. [Except as otherwise provided for specified positions, its employees are in the classified service of the state.]
Sec. 25. NRS 616B.065 is hereby amended to read as follows:
2. The assistant managers shall serve at the pleasure of the manager.
3. The assistant managers must be graduates of a 4-year college or university with a degree in business administration or public administration or an equivalent degree.
Sec. 26. NRS 616B.068 is hereby amended to read as follows:
Sec. 27. NRS 616B.083 is hereby amended to read as follows:
616B.083 1. The money and assets held in trust by the system include:
(a) All premiums and other money paid to the system;
(b) All property and securities acquired through the use of money in the state insurance fund; and
(c) All interest and dividends earned upon money in the state insurance fund and deposited or invested as provided in chapters 616A to 616D, inclusive, of NRS.
2. The system shall[:
(a) Report to the commissioner only its financial statement and results of operations for the account for current claims in accordance with those accounting principles that are prescribed by the commissioner and applied to other insurers providing coverage for workers’ compensation.
(b) Discount] discount its reserve for losses for accounting periods beginning on or after July 1, 1995, at a rate determined by the manager, but not to exceed 4 percent.
[(c) Allocate to the account for the administration of extended claims created pursuant to NRS 616B.087 $650,000,000 in invested assets.]
Sec. 28. NRS 616B.086 is hereby amended to read as follows:
(a) Must be credited on the records of the system to the state insurance fund.
(b) Constitute, for the purpose of custody thereof, the state insurance fund, which must be held by the manager as custodian thereof for the benefit of employees and their dependents within the provisions of chapters 616A to 616D, inclusive, of NRS. The manager is liable on his official bond for the faithful performance of his custodial duty.
2.] The commissioner or the administrator may delegate to a hearing officer or panel his authority to take any disciplinary action pursuant to NRS 616B.318, 616B.321, 616B.350 to 616B.446, inclusive, 616B.472 or 616D.120, impose and collect administrative fines pursuant to those sections and deposit the money in the fund for workers’ compensation and safety.
[3.] 2. If a hearing officer or panel is not authorized to take disciplinary action pursuant to subsection [2] 1 and the commissioner or the administrator deposits the money collected from the imposition of administrative fines with the state treasurer for credit to the state general fund, he may present a claim to the state board of examiners for recommendation to the interim finance committee if money is needed to pay attorney’s fees or the costs of an investigation, or both.
Sec. 29. NRS 616B.167 is hereby amended to read as follows:
1. Has full power, authority and jurisdiction over the system.
2. May perform all acts necessary or convenient in the exercise of any power, authority or jurisdiction over the system, either in the administration of the system or in connection with the business of insurance to be carried on by the system under the provisions of chapters 616A to 616D, inclusive, of NRS, including the establishment of premium rates.
3. May appoint [in the unclassified service of the state no] not more than five persons, engaged in management, who report directly to the manager or an assistant manager. The manager shall designate these positions, and may not change them without the approval of the personnel commission. These persons are entitled to receive annual salaries fixed by the manager.
Sec. 30. NRS 616B.185 is hereby amended to read as follows:
2. An offender is limited to the rights and remedies established by the provisions of the modified program of industrial insurance established by regulations adopted by the [system.] administrator. The offender is not entitled to any rights and remedies established by the provisions of chapters 616A to 617, inclusive, of NRS.
3. The [system] administrator shall, in cooperation with the department of prisons and the risk management division of the department of administration, adopt regulations setting forth a modified program of industrial insurance to provide offenders with industrial insurance against personal injuries arising out of and in the course of their work in a prison industry or work program.
Sec. 31. NRS 616B.194 is hereby amended to read as follows:
Sec. 32. NRS 616B.224 is hereby amended to read as follows:
(a) The total amount paid to employees for services performed;
(b) The amount of tips reported to him by every employee pursuant to 26 U.S.C. § 6053(a) whose tips in cash totaled $20 or more; and
(c) A segregation of employment in accordance with the requirements of the commissioner,
together with the premium due thereon. The payroll and premium must be furnished to the insurer on or before the date established by the insurer for the receipt of the payroll and premium.
2. Any employer by agreement in writing with the insurer may arrange for the payment of premiums in advance at an interval established by the insurer.
3. [Failure] The failure of any employer to comply with the provisions of this section [and NRS 616B.218] operates as a rejection of chapters 616A to 616D, inclusive, and chapter 617 of NRS . [, effective at the expiration of the period covered by his estimate.] The insurer shall notify the administrator of each such rejection[.] within the period specified in NRS 616B.460.
4. If an audit of the accounts or actual payroll of an employer shows that the actual premium earned exceeds the estimated premium paid in advance, the insurer may require the payment of money sufficient to cover the deficit, together with such an amount as in his judgment constitutes an adequate advance premium for the period covered by the estimate.
5. The insurer shall notify any employer or his representative by first-class mail of any failure on his part to comply with the provisions of this section. The notice or its omission does not modify or waive the requirements or effective rejection of chapters 616A to 616D, inclusive, of NRS as otherwise provided in those chapters.
6. [The system may impose a penalty not to exceed 10 percent of the premiums which are due for the failure of an employer insured by the system to submit the information and premium required in subsection 1 within the time allowed, unless the employer has applied for and been granted an extension of that time by the manager.
7.] To the extent permitted by federal law, the insurer shall vigorously pursue the collection of premiums that are due under the provisions of chapters 616A to 616D, inclusive, of NRS even if an employer’s debts have been discharged in a bankruptcy proceeding.
Sec. 33. NRS 616B.227 is hereby amended to read as follows:
616B.227 1. An employer shall:
(a) Make a copy of each report that an employee files with the employer pursuant to 26 U.S.C. § 6053(a) to report the amount of his tips to the United States Internal Revenue Service;
(b) Submit the copy to [the system or] his private carrier upon request and retain another copy for his records or, if the employer is self-insured or a member of an association of self-insured public or private employers, retain the copy for his records; and
(c) If he is not self-insured or a member of an association of self-insured public or private employers, pay the [system or] private carrier the premiums for the reported tips at the same rate as he pays on regular wages.
2. The division shall adopt regulations specifying the form of the declaration required pursuant to subsection 1.
3. The [system,] private carrier, self-insured employer or association shall calculate compensation for an employee on the basis of wages paid by the employer plus the amount of tips reported by the employee pursuant to 26 U.S.C. § 6053. Reports made after the date of injury may not be used for the calculation of compensation.
4. An employer shall notify his employees of the requirement to report income from tips for the purposes of calculating his federal income tax and for including the income in the computation of benefits pursuant to chapters 616A to 616D, inclusive, of NRS.
5. The administrator shall adopt such regulations as are necessary to carry out the provisions of this section.
Sec. 34. NRS 616B.230 is hereby amended to read as follows:
(a) The aggregate number of shifts worked during the preceding quarter.
(b) The total amount paid to employees for services performed during the quarter.
(c) A segregation of employment in accordance with the requirements of the system.
2. Each of the state offices, departments, boards, commissions, bureaus, agencies and institutions shall submit claims for the amount of premiums due to the system. Each of the auditors, comptrollers, clerks and other chief financial officers shall make up and submit to the respective governing boards of the appropriate county, metropolitan police department, city, school district or other political subdivision, for approval, claims for the amount of premiums due to the system.
3. Each public employer described in this section] of this state shall budget for industrial insurance in the same manner as for other expenses and, if insured by a private carrier, shall pay premiums as required by its contract.
Sec. 35. NRS 616B.386 is hereby amended to read as follows:
(a) Submit an application for membership to the board of trustees or third-party administrator of the association; and
(b) Enter into an indemnity agreement as required by NRS 616B.353.
2. The membership of the applicant becomes effective when each member of the association approves the application or on a later date specified by the association. The application for membership and the action taken on the application must be maintained as permanent records of the board of trustees.
3. Each member who is a member of an association during the 12 months immediately following the formation of the association must:
(a) Have a tangible net worth of at least $500,000; or
(b) Have had a reported payroll for the previous 12 months which would have resulted in a manual premium [calculated according to the regulations adopted pursuant to NRS 616B.206] of at least $15,000[.] , calculated in accordance with a manual prepared pursuant to subsection 4 of NRS 686B.1765.
Any employer who seeks to become a member of the association subsequently must meet the requirement set forth in paragraph (a) or (b) unless the commissioner adjusts the requirement for membership in the association after conducting an annual review of the actuarial solvency of the association pursuant to subsection 1 of NRS 616B.353.
4. Except as otherwise provided in NRS 616B.389, a member of an association may terminate his membership at any time. To terminate his membership, a member must submit to the association’s administrator a notice of intent to withdraw from the association at least 120 days before the effective date of withdrawal. The association’s administrator shall, within 10 days after receipt of the notice, notify the commissioner of the employer’s intent to withdraw from the association.
5. The members of an association may cancel the membership of any member of the association in accordance with the bylaws of the association.
6. The association shall:
(a) Notify the commissioner and the administrator of the termination or cancellation of the membership of any member of the association within 10 days after the termination or cancellation; and
(b) At the expense of the member whose membership is terminated or canceled, maintain coverage for that member for 30 days after notice is given pursuant to paragraph (a), unless the association first receives notice from the administrator that the member has:
(1) Become insured by the system;
(2) Been certified as a self-insured employer pursuant to NRS 616B.312;
(3) Become a member of another association of self-insured public or private employers; or
(4) Become insured by a private carrier.
7. If a member of an association changes his name or form of organization, the member remains liable for any obligations incurred or any responsibilities imposed pursuant to chapters 616A to 617, inclusive, of NRS under his former name or form of organization.
8. An association is liable for the payment of any compensation required to be paid by a member of the association pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS during his period of membership. The insolvency or bankruptcy of a member does not relieve the association of liability for the payment of the compensation.
Sec. 36. NRS 616B.386 is hereby amended to read as follows:
616B.386 1. If an employer wishes to become a member of an association of self-insured public or private employers, the employer must:
(a) Submit an application for membership to the board of trustees or third-party administrator of the association; and
(b) Enter into an indemnity agreement as required by NRS 616B.353.
2. The membership of the applicant becomes effective when each member of the association approves the application or on a later date specified by the association. The application for membership and the action taken on the application must be maintained as permanent records of the board of trustees.
3. Each member who is a member of an association during the 12 months immediately following the formation of the association must:
(a) Have a tangible net worth of at least $500,000; or
(b) Have had a reported payroll for the previous 12 months which would have resulted in a manual premium of at least $15,000, calculated in accordance with a manual prepared pursuant to subsection 4 of NRS 686B.1765.
Any employer who seeks to become a member of the association subsequently must meet the requirement set forth in paragraph (a) or (b) unless the commissioner adjusts the requirement for membership in the association after conducting an annual review of the actuarial solvency of the association pursuant to subsection 1 of NRS 616B.353.
4. [Except as otherwise provided in NRS 616B.389, a] A member of an association may terminate his membership at any time. To terminate his membership, a member must submit to the association’s administrator a notice of intent to withdraw from the association at least 120 days before the effective date of withdrawal. The association’s administrator shall, within 10 days after receipt of the notice, notify the commissioner of the employer’s intent to withdraw from the association.
5. The members of an association may cancel the membership of any member of the association in accordance with the bylaws of the association.
6. The association shall:
(a) Notify the commissioner and the administrator of the termination or cancellation of the membership of any member of the association within 10 days after the termination or cancellation; and
(b) At the expense of the member whose membership is terminated or canceled, maintain coverage for that member for 30 days after notice is given pursuant to paragraph (a), unless the association first receives notice from the administrator that the member has:
(1) [Become insured by the system;
(2)] Been certified as a self-insured employer pursuant to NRS 616B.312;
[(3)] (2) Become a member of another association of self-insured public or private employers; or
[(4)] (3) Become insured by a private carrier.
7. If a member of an association changes his name or form of organization, the member remains liable for any obligations incurred or any responsibilities imposed pursuant to chapters 616A to 617, inclusive, of NRS under his former name or form of organization.
8. An association is liable for the payment of any compensation required to be paid by a member of the association pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS during his period of membership. The insolvency or bankruptcy of a member does not relieve the association of liability for the payment of the compensation.
Sec. 37. NRS 616B.460 is hereby amended to read as follows:
2. An employer may elect to purchase insurance from an insurer other than his present insurer if the employer has:
(a) Given at least 10 days’ notice to the administrator of the change of insurer; and
(b) Furnished evidence satisfactory to the administrator that the payment of compensation has otherwise been secured.
3. Each private carrier [and the system] shall notify the administrator if an employer has changed his insurer or has allowed his insurance to lapse, within 24 hours or by the end of the next working day after the insurer has notice of the change or lapse.
Sec. 38. NRS 616B.500 is hereby amended to read as follows:
2. An insurer shall not enter into a contract with any person for the administration of any part of the plan of insurance unless that person maintains an office in this state and has a valid certificate issued by the commissioner pursuant to NRS 683A.085. [The system may, as a part of a contract entered into with an organization for managed care pursuant to NRS 616B.515, require the organization to act as its third-party administrator.]
Sec. 39. NRS 616B.527 is hereby amended to read as follows:
1. Enter into a contract or contracts with one or more organizations for managed care to provide comprehensive medical and health care services to employees for injuries and diseases that are compensable pursuant to chapters 616A to 617, inclusive, of NRS.
2. Enter into a contract or contracts with providers of health care, including, without limitation, physicians who provide primary care, specialists, pharmacies, physical therapists, radiologists, nurses, diagnostic facilities, laboratories, hospitals and facilities that provide treatment to outpatients, to provide medical and health care services to employees for injuries and diseases that are compensable pursuant to chapters 616A to 617, inclusive, of NRS.
3. [Use the services of an organization for managed care that has entered into a contract with the manager pursuant to NRS 616B.515, but is not required to use such services.
4.] Require employees to obtain medical and health care services for their industrial injuries from those organizations and persons with whom the self-insured employer, association or private carrier has contracted pursuant to subsections 1 and 2, or as the self-insured employer, association or private carrier otherwise prescribes.
[5.] 4. Require employees to obtain the approval of the self-insured employer, association or private carrier before obtaining medical and health care services for their industrial injuries from a provider of health care who has not been previously approved by the self-insured employer, association or private carrier.
Sec. 40. NRS 616B.554 is hereby amended to read as follows:
2. All assessments, penalties, bonds, securities and all other properties received, collected or acquired by the board for the subsequent injury fund for self-insured employers must be delivered to the custody of the state treasurer.
3. All money and securities in the fund must be held by the state treasurer as custodian thereof to be used solely for workers’ compensation for employees of self-insured employers.
4. The state treasurer may disburse money from the fund only upon written order of the board.
5. The state treasurer shall invest money of the fund in the same manner and in the same securities in which he is authorized to invest state general funds which are in his custody. Income realized from the investment of the assets of the fund must be credited to the fund.
6. The board shall adopt regulations for the establishment and administration of assessment rates, payments and penalties. Assessment rates must reflect the relative hazard of the employments covered by self-insured employers, and must be based upon expected annual expenditures for claims for payments from the subsequent injury fund for self-insured employers. [The system must not be required to pay any assessments, payments or penalties into the subsequent injury fund for self-insured employers, or any costs associated with the fund.]
7. The commissioner shall assign an actuary to review the establishment of assessment rates. The rates must be filed with the commissioner 30 days before their effective date. Any self-insured employer who wishes to appeal the rate so filed must do so pursuant to NRS 679B.310.
8. The administrator shall:
(a) Evaluate any claim submitted to the board for payment or reimbursement from the subsequent injury fund for self-insured employers and recommend to the board any appropriate action to be taken concerning the claim; and
(b) Submit to the board any other recommendations relating to the fund.
Sec. 41. NRS 616B.575 is hereby amended to read as follows:
2. All assessments, penalties, bonds, securities and all other properties received, collected or acquired by the board for the subsequent injury fund for associations of self-insured public or private employers must be delivered to the custody of the state treasurer.
3. All money and securities in the fund must be held by the state treasurer as custodian thereof to be used solely for workers’ compensation for employees of members of associations of self-insured public or private employers.
4. The state treasurer may disburse money from the fund only upon written order of the board.
5. The state treasurer shall invest money of the fund in the same manner and in the same securities in which he is authorized to invest state general funds which are in his custody. Income realized from the investment of the assets of the fund must be credited to the fund.
6. The board shall adopt regulations for the establishment and administration of assessment rates, payments and penalties. Assessment rates must reflect the relative hazard of the employments covered by associations of self-insured public or private employers, and must be based upon expected annual expenditures for claims for payments from the subsequent injury fund for associations of self-insured public or private employers. [The system must not be required to pay any assessments, payments or penalties into the subsequent injury fund for associations of self-insured public or private employers, or any costs associated with the fund.]
7. The commissioner shall assign an actuary to review the establishment of assessment rates. The rates must be filed with the commissioner 30 days before their effective date. Any association of self-insured public or private employers that wishes to appeal the rate so filed must do so pursuant to NRS 679B.310.
8. The administrator shall:
(a) Evaluate any claim submitted to the board for payment or reimbursement from the subsequent injury fund for associations of self-insured public or private employers and recommend to the board any appropriate action to be taken concerning the claim; and
(b) Submit to the board any other recommendations relating to the fund.
Sec. 42. NRS 616B.584 is hereby amended to read as follows:
2. All assessments, penalties, bonds, securities and all other properties received, collected or acquired by the administrator for the subsequent injury fund for private carriers must be delivered to the custody of the state treasurer.
3. All money and securities in the fund must be held by the state treasurer as custodian thereof to be used solely for workers’ compensation for employees whose employers are insured by private carriers.
4. The state treasurer may disburse money from the fund only upon written order of the state controller.
5. The state treasurer shall invest money of the fund in the same manner and in the same securities in which he is authorized to invest state general funds which are in his custody. Income realized from the investment of the assets of the fund must be credited to the fund.
6. The administrator shall adopt regulations for the establishment and administration of assessment rates, payments and penalties. Assessment rates must reflect the relative hazard of the employments covered by private carriers and must be based upon expected annual expenditures for claims for payments from the subsequent injury fund for private carriers. [The system must not be required to pay any assessments, payments or penalties into the subsequent injury fund for private carriers, or any costs associated with the fund.]
7. The commissioner shall assign an actuary to review the establishment of assessment rates. The rates must be filed with the commissioner 30 days before their effective date. Any private carrier who wishes to appeal the rate so filed must do so pursuant to NRS 679B.310.
Sec. 43. NRS 616B.659 is hereby amended to read as follows:
2. A sole proprietor who elects to accept the terms, conditions and provisions of chapters 616A to 616D, inclusive, of NRS shall submit to a physical examination before his coverage commences. The [system or the] private carrier shall prescribe the scope of the examination and shall consider it for rating purposes. The cost of the physical examination must be paid by the sole proprietor.
3. A sole proprietor who elects to submit to the provisions of chapters 616A to 616D, inclusive, of NRS shall pay to the [system or the] private carrier premiums in such manner and amounts as may be prescribed by the regulations of the commissioner.
4. If a sole proprietor fails to pay all premiums required by the regulations of the commissioner, the failure operates as a rejection of chapters 616A to 616D, inclusive, of NRS.
5. A sole proprietor who elects to be included pursuant to the provisions of chapters 616A to 616D, inclusive, of NRS remains subject to all terms, conditions and provisions of those chapters and all regulations of the commissioner until he files written notice with the administrator and the [system or the] private carrier that he withdraws his election.
6. For the purposes of chapters 616A to 616D, inclusive, of NRS, a sole proprietor shall be deemed to be receiving a wage of $300 per month unless, at least 90 days before any injury for which he requests coverage, he files written notice with the administrator and the [system or the] private carrier that he elects to pay an additional amount of premiums for additional coverage. If the [system or the] private carrier receives the additional premiums it requires for such additional coverage, the sole proprietor shall be deemed to be receiving a wage of $1,800 per month.
Sec. 44. NRS 616B.670 is hereby amended to read as follows:
616B.670 As used in NRS 616B.670 to 616B.697, inclusive, unless the context otherwise requires:
1. “Applicant” means a person seeking a certificate of [insurance] registration pursuant to NRS 616B.670 to 616B.697, inclusive, to operate an employee leasing company.
2. “Client company” means a company which leases employees, for a fee, from an employee leasing company pursuant to a written or oral agreement.
3. “Employee leasing company” means a company which, pursuant to a written or oral agreement:
(a) Places any of the regular, full-time employees of a client company on its payroll and, for a fee, leases them to the client company on a regular basis without any limitation on the duration of their employment; or
(b) Leases to a client company:
(1) Five or more part-time or full-time employees; or
(2) Ten percent or more of the total number of employees within a classification of risk established by the [system.] commissioner.
Sec. 45. NRS 616B.673 is hereby amended to read as follows:
2. Any person who violates the provisions of subsection 1 is guilty of a misdemeanor.
3. Each certificate of [insurance] registration issued by the [manager] administrator pursuant to NRS 616B.670 to 616B.697, inclusive, expires 1 year after it is issued unless renewed before that date.
Sec. 46. NRS 616B.676 is hereby amended to read as follows:
Sec. 47. NRS 616B.679 is hereby amended to read as follows:
616B.679 1. Each application must include:
(a) The applicant’s name and title of his position with the employee leasing company.
(b) The applicant’s age, place of birth and social security number.
(c) The applicant’s address.
(d) The business address of the employee leasing company.
(e) The business address of the resident agent of the employee leasing company, if the applicant is not the resident agent.
(f) If the applicant is a:
(1) Partnership, the name of the partnership and the name, address, age, social security number and title of each partner.
(2) Corporation, the name of the corporation and the name, address, age, social security number and title of each officer of the corporation.
(g) Proof of:
(1) The payment of any taxes required by chapter 364A of NRS.
(2) The payment of any premiums for industrial insurance required by chapters 616A to 617, inclusive, of NRS.
(3) The payment of contributions or payments in lieu of contributions required by chapter 612 of NRS.
(4) Insurance coverage for any benefit plan from an insurer authorized pursuant to Title 57 of NRS that is offered by the employee leasing company to its employees.
[(5) Membership in the National Staff Leasing Association, or its successor organization.]
(h) Any other information the [manager] administrator requires.
2. Each application must be notarized and signed under penalty of perjury:
(a) If the applicant is a sole proprietorship, by the sole proprietor.
(b) If the applicant is a partnership, by each partner.
(c) If the applicant is a corporation, by each officer of the corporation.
3. An applicant shall submit to the [manager] administrator any change in the information required by this section within 30 days after the change occurs. The [manager] administrator may revoke the certificate of [insurance] registration of an employee leasing company which fails to comply with the provisions of [this subsection. If the manager revokes the certificate of insurance and cancels the] NRS 616B.670 to 616B.697, inclusive.
4. If an insurer cancels an employee leasing company’s policy, the [manager] insurer shall immediately notify the administrator[, who shall proceed in accordance with the provisions of NRS 616D.110.] in writing. The notice 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.
Sec. 48. NRS 616B.694 is hereby amended to read as follows:
Sec. 49. NRS 616B.697 is hereby amended to read as follows:
Sec. 50. NRS 616C.015 is hereby amended to read as follows:
2. The notice required by subsection 1 must:
(a) Be on a form prescribed by the administrator. The form must allow the injured employee or his dependent to describe briefly the accident that caused the injury or death.
(b) Be signed by the injured employee or by a person on his behalf, or in the event of the employee’s death, by one of his dependents or by a person acting on behalf of the dependent.
(c) Include an explanation of the procedure for filing a claim for compensation.
(d) Be prepared in duplicate so that the injured employee or his dependent and the employer can retain a copy of the notice.
3. Upon receipt of the notice required by subsection 1, the employer, the injured employee’s supervisor or the agent of the employer who was in charge of the type of work or the area where the accident occurred shall sign the notice. The signature of the employer, the supervisor or the employer’s agent is an acknowledgment of the receipt of the notice and shall not be deemed to be a waiver of any of the employer’s defenses or rights.
4. An employer shall maintain a sufficient supply of the forms required to file the notice required by subsection 1 for use by his employees.
5. An employer shall retain any notice provided pursuant to subsection 1 for 3 years after the date of the accident. An employer insured by [the system or] a private carrier shall not file a notice of injury with the [system or the] private carrier.
Sec. 51. NRS 616C.055 is hereby amended to read as follows:
2. If a physician or chiropractor is removed from the panel established pursuant to NRS 616C.090 or from participation in a plan for managed care established pursuant to NRS [616B.515 or] 616B.527, he must not be paid for any services rendered to the injured employee after the date of his removal.
Sec. 52. NRS 616C.090 is hereby amended to read as follows:
2. An injured employee whose employer’s insurer has not entered into a contract with an organization for managed care or with providers of health care services pursuant to NRS 616B.527 may choose his treating physician or chiropractor from the panel of physicians and chiropractors. If the injured employee is not satisfied with the first physician or chiropractor he so chooses, he may make an alternative choice of physician or chiropractor from the panel if the choice is made within 90 days after his injury. The insurer shall notify the first physician or chiropractor in writing. The notice must be postmarked within 3 working days after the insurer receives knowledge of the change. The first physician or chiropractor must be reimbursed only for the services he rendered to the injured employee up to and including the date of notification. Any further change is subject to the approval of the insurer, which must be granted or denied within 10 days after a written request for such a change is received from the injured employee. If no action is taken on the request within 10 days, the request shall be deemed granted. Any request for a change of physician or chiropractor must include the name of the new physician or chiropractor chosen by the injured employee.
3. An injured employee employed or residing in any county in this state whose employer’s insurer has entered into a contract with an organization for managed care or with providers of health care services pursuant to NRS 616B.527 must choose his treating physician or chiropractor pursuant to the terms of that contract. If the employee, after choosing his treating physician or chiropractor, moves to a county which is not served by the organization for managed care or providers of health care services named in the contract and the insurer determines that it is impractical for the employee to continue treatment with the physician or chiropractor, the employee must choose a treating physician or chiropractor who has agreed to the terms of that contract unless the insurer authorizes the employee to choose another physician or chiropractor.
4. Except when emergency medical care is required and except as otherwise provided in NRS 616C.055, the insurer is not responsible for any charges for medical treatment or other accident benefits furnished or ordered by any physician, chiropractor or other person selected by the employee in disregard of the provisions of this section or for any compensation for any aggravation of the employee’s injury attributable to improper treatments by such physician, chiropractor or other person.
5. The administrator may order necessary changes in a panel of physicians and chiropractors and shall suspend or remove any physician or chiropractor from a panel for good cause shown.
6. An injured employee may receive treatment by more than one physician or chiropractor if the insurer provides written authorization for such treatment.
Sec. 53. NRS 616C.110 is hereby amended to read as follows:
2. If the Guides to the Evaluation of Permanent Impairment adopted by the division contain more than one method of determining the rating of an impairment, the administrator shall designate by regulation the method which must be used to rate an impairment pursuant to NRS 616C.490.
Sec. 54. NRS 616C.190 is hereby amended to read as follows:
2. The provisions of this section apply only to those injuries received by the employee within 6 months after leaving this state, unless before the expiration of the 6-month period the employer has filed with the [system or] private carrier or, in the case of a self-insured employer or an association of self-insured public or private employers, with the administrator notice that he has elected to extend the coverage for a greater period.
Sec. 55. NRS 616C.200 is hereby amended to read as follows:
2. If the injured employee[,] or his personal or legal representatives, dependents or next of kin recover a final judgment against the employer for damages arising out of the injury or death in any court of competent jurisdiction in any other state, the compensation which would otherwise have been payable under the laws of this state, up to the full amount thereof, but less any sums previously paid for the injury or death, must be applied in satisfaction of the judgment as follows:
(a) Upon receipt of an authenticated copy of the final judgment and writ of execution or other process issued in aid thereof, the insurer shall immediately determine the total amount of compensation which would have been payable under the laws of this state if a claim therefor had been made to the insurer. In the case of compensation payable in installments, the insurer shall convert it into a lump sum by such a system of computation as the administrator deems proper.
(b) The insurer shall thereupon order to be paid in full or partial satisfaction of the judgment a sum not to exceed the total amount of compensation computed as provided in this section or the amount of the judgment, whichever is less.
(c) Except for a self-insured employer or an employer who is a member of an association of self-insured public or private employers, if the judgment is satisfied fully by the employer before any payment by the [system or] private carrier pursuant to paragraph (b), the amount payable thereunder must be paid to the employer.
Sec. 56. NRS 616C.215 is hereby amended to read as follows:
(a) The amount of compensation the injured employee or his dependents are entitled to receive pursuant to the provisions of chapters 616A to 616D, inclusive, of NRS, including any future compensation, must be reduced by the amount paid by the employer.
(b) The insurer, or in the case of claims involving the uninsured employer’s claim fund or a subsequent injury fund the administrator, has a lien upon the total amount paid by the employer if the injured employee or his dependents receive compensation pursuant to the provisions of chapters 616A to 616D, inclusive, of NRS.
This subsection is applicable whether the money paid to the employee or his dependents by the employer is classified as a gift, a settlement or otherwise. The provisions of this subsection do not grant to an injured employee any right of action in tort to recover damages from his employer for his injury.
2. When an employee receives an injury for which compensation is payable pursuant to the provisions of chapters 616A to 616D, inclusive, of NRS and which was caused under circumstances creating a legal liability in some person, other than the employer or a person in the same employ, to pay damages in respect thereof:
(a) The injured employee, or in case of death his dependents, may take proceedings against that person to recover damages, but the amount of the compensation the injured employee or his dependents are entitled to receive pursuant to the provisions of chapters 616A to 616D, inclusive, of NRS, including any future compensation, must be reduced by the amount of the damages recovered, notwithstanding any act or omission of the employer or a person in the same employ which was a direct or proximate cause of the employee’s injury.
(b) If the injured employee, or in case of death his dependents, receive compensation pursuant to the provisions of chapters 616A to 616D, inclusive, of NRS, the insurer, or in case of claims involving the uninsured employers’ claim fund or a subsequent injury fund the administrator, has a right of action against the person so liable to pay damages and is subrogated to the rights of the injured employee or of his dependents to recover therefor.
3. When an injured employee incurs an injury for which compensation is payable pursuant to the provisions of chapters 616A to 616D, inclusive, of NRS and which was caused under circumstances entitling him, or in the case of death his dependents, to receive proceeds under his employer’s policy of uninsured or underinsured vehicle coverage:
(a) The injured employee, or in the case of death his dependents, may take proceedings to recover those proceeds, but the amount of compensation the injured employee or his dependents are entitled to receive pursuant to the provisions of chapters 616A to 616D, inclusive, of NRS, including any future compensation, must be reduced by the amount of proceeds received.
(b) If an injured employee, or in the case of death his dependents, receive compensation pursuant to the provisions of chapters 616A to 616D, inclusive, of NRS, the insurer, or in the case of claims involving the uninsured employers’ claim fund or a subsequent injury fund the administrator, is subrogated to the rights of the injured employee or his dependents to recover proceeds under the employer’s policy of uninsured or underinsured vehicle coverage. The insurer and the administrator are not subrogated to the rights of an injured employee or his dependents under a policy of uninsured or underinsured vehicle coverage purchased by the employee.
4. In any action or proceedings taken by the insurer or the administrator pursuant to this section, evidence of the amount of compensation, accident benefits and other expenditures which the insurer, the uninsured employers’ claim fund or a subsequent injury fund have paid or become obligated to pay by reason of the injury or death of the employee is admissible. If in such action or proceedings the insurer or the administrator recovers more than those amounts, the excess must be paid to the injured employee or his dependents.
5. In any case where the insurer or the administrator is subrogated to the rights of the injured employee or of his dependents as provided in subsection 2 or 3, the insurer or the administrator has a lien upon the total proceeds of any recovery from some person other than the employer, whether the proceeds of such recovery are by way of judgment, settlement or otherwise. The injured employee, or in the case of his death his dependents, are not entitled to double recovery for the same injury, notwithstanding any act or omission of the employer or a person in the same employ which was a direct or proximate cause of the employee’s injury.
6. The lien provided for under subsection 1 or 5 includes the total compensation expenditure incurred by the insurer, the uninsured employers’ claim fund or a subsequent injury fund for the injured employee and his dependents.
7. An injured employee, or in the case of death his dependents, shall notify the insurer, or in the case of claims involving the uninsured employers’ claim fund or a subsequent injury fund the administrator, in writing before initiating a proceeding or action pursuant to this section.
8. Within 15 days after the date of recovery by way of actual receipt of the proceeds of the judgment, settlement or otherwise:
(a) The injured employee or his dependents, or the attorney or representative of the injured employee or his dependents; and
(b) The third-party insurer,
shall notify the insurer, or in the case of claims involving the uninsured employers’ claim fund or a subsequent injury fund the administrator, of the recovery and pay to the insurer or the administrator, respectively, the amount due under this section together with an itemized statement showing the distribution of the total recovery. The attorney or representative of the injured employee or his dependents and the third-party insurer are jointly and severally liable for any amount to which an insurer is entitled pursuant to this section if the attorney, representative or third-party insurer has knowledge of the lien provided for in this section.
9. An insurer shall not sell its lien to a third-party insurer unless the injured employee or his dependents, or the attorney or representative of the injured employee or his dependents, refuses to provide to the insurer information concerning the action against the third party.
10. In any trial of an action by the injured employee, or in the case of his death by his dependents, against a person other than the employer or a person in the same employ, the jury must receive proof of the amount of all payments made or to be made by the insurer or the administrator. The court shall instruct the jury substantially as follows:
Payment of workmen’s compensation benefits by the insurer, or in the case of claims involving the uninsured employers’ claim fund or a subsequent injury fund the administrator, is based upon the fact that a compensable industrial accident occurred, and does not depend upon blame or fault. If the plaintiff does not obtain a judgment in his favor in this case, he is not required to repay his employer, the insurer or the administrator any amount paid to him or paid on his behalf by his employer, the insurer or the administrator.
If you decide that the plaintiff is entitled to judgment against the defendant, you shall find his damages in accordance with the court’s instructions on damages and return your verdict in the plaintiff’s favor in the amount so found without deducting the amount of any compensation benefits paid to or for the plaintiff. The law provides a means by which any compensation benefits will be repaid from your award.
11. For the purposes of calculating an employer’s premium, the employer’s account with the [system] private carrier must be credited with an amount equal to that recovered by the [system] private carrier from a third party pursuant to this section, less the [system’s] private carrier’s share of the expenses of litigation incurred in obtaining the recovery, except that the total credit must not exceed the amount of compensation actually paid or reserved by the [system] private carrier on the injured employee’s claim.
12. As used in this section, “third-party insurer” means an insurer that issued to a third party who is liable for damages pursuant to subsection 2, a policy of liability insurance the proceeds of which are recoverable pursuant to this section. The term includes an insurer that issued to an employer a policy of uninsured or underinsured vehicle coverage.
Sec. 57. NRS 616C.220 is hereby amended to read as follows:
616C.220 1. The division shall designate one:
(a) Third-party administrator who has a valid certificate issued by the commissioner pursuant to NRS 683A.085; or
(b) Insurer, other than a self-insured employer or association of self-insured public or private employers,
to administer claims against the uninsured employers’ claim fund. The designation must be made pursuant to reasonable competitive bidding procedures established by the administrator.
2. 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 claim for compensation with the division; and
(d) 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.] 3. If the division receives a claim pursuant to subsection [1,] 2, the division shall immediately notify the employer of the claim.
[3.] 4. 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.] 5. 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.] 6. The division:
(a) May recover from the employer the payments made by the division that are described in subsection [4] 5 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.] 7. 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] third-party administrator or insurer designated pursuant to subsection 1 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] and payment of compensation.
Upon determining whether the claim is accepted or denied, the designated third-party administrator or insurer shall notify the [claimant,] injured employee, the named employer and the division [that the claim will not be assigned for benefits from the uninsured employers’ claim fund.
7.] of its determination.
(c) Upon demonstration of the:
(1) Costs incurred by the designated third-party administrator or insurer to administer the claim or pay compensation to the injured employee; or
(2) Amount that the designated third-party administrator or insurer will pay for administrative expenses or compensation to the injured employee and that such amounts are justified by the circumstances of the claim,
the division shall authorize payment from the uninsured employers’ claim fund.
8. Any party aggrieved by a [decision] determination regarding the administration of an assigned claim or a [decision] determination made by the division or by the [system] designated third-party administrator or insurer regarding any claim made pursuant to this section may appeal that [decision] determination within 60 days after the [decision] determination 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.] 9. 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.] 10. 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.] 11. 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] in the uninsured employers’ claim fund.
[11.] 12. 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. 58. NRS 616C.255 is hereby amended to read as follows:
2. Every employer paying this premium is relieved from furnishing accident benefits, and the accident benefits must be provided by the [system or] private carrier.
3. The [system or] private carrier is liable for any accident benefits provided in this section. The account provided for accident benefits must be kept as a separate account on the records of the [system or] private carrier.
Sec. 59. NRS 616C.260 is hereby amended to read as follows:
616C.260 1. All fees and charges for accident benefits must not:
(a) Exceed the fees and charges usually paid in the state for similar treatment.
(b) Be unfairly discriminatory as between persons legally qualified to provide the particular service for which the fees or charges are asked.
2. The administrator shall, giving consideration to the fees and charges being paid in the state, establish a schedule of reasonable fees and charges allowable for accident benefits provided to injured employees whose insurers have not contracted with an organization for managed care or with providers of health care services pursuant to NRS [616B.515.] 616B.527. The administrator shall review and revise the schedule on or before October 1 of each year. The administrator may increase or decrease the schedule, but shall not increase the schedule by any factor greater than the corresponding annual increase in the Consumer Price Index , [(]Medical Care Component , [),] unless the advisory council of the division approves such an increase.
3. The administrator may request a health insurer, health maintenance organization or provider of accident benefits, an agent or employee of such a person, or an agency of the state, to provide the administrator with such information concerning fees and charges paid for similar services as he deems necessary to carry out the provisions of subsection 2. The administrator shall require a person or entity providing records or reports of fees charged to provide interpretation and identification concerning the information delivered. The administrator may impose an administrative fine of $500 for each refusal to provide the information requested pursuant to this subsection.
4. The division may adopt reasonable regulations necessary to carry out the provisions of this section. The regulations must include provisions concerning:
(a) Standards for the development of the schedule of fees and charges;
(b) The periodic revision of the schedule; and
(c) The monitoring of compliance by providers of benefits with the adopted schedule of fees and charges.
5. The division shall adopt regulations requiring the utilization of a system of billing codes as recommended by the American Medical Association.
Sec. 60. NRS 616C.275 is hereby amended to read as follows:
2. If the administrator orders a change of physicians or chiropractors or of any other accident benefits, the cost of the change must be borne by the insurer.
3. The cause of action of an insured employee against an employer insured by [the system or] a private carrier must be assigned to the [system or the] private carrier.
Sec. 61. NRS 616C.355 is hereby amended to read as follows:
Sec. 62. NRS 616C.385 is hereby amended to read as follows:
Sec. 63. NRS 616C.475 is hereby amended to read as follows:
2. Except as otherwise provided in NRS 616B.185 and 616B.186, an injured employee or his dependents are not entitled to accrue or be paid any benefits for a temporary total disability during the time the injured employee is incarcerated. The injured employee or his dependents are entitled to receive such benefits when the injured employee is released from incarceration if he is certified as temporarily totally disabled by a physician or chiropractor.
3. If a claim for the period of temporary total disability is allowed, the first payment pursuant to this section must be issued by the insurer within 14 working days after receipt of the initial certification of disability and regularly thereafter.
4. Any increase in compensation and benefits effected by the amendment of subsection 1 is not retroactive.
5. Payments for a temporary total disability must cease when:
(a) A physician or chiropractor determines that the employee is physically capable of any gainful employment for which the employee is suited, after giving consideration to the employee’s education, training and experience;
(b) The employer offers the employee light-duty employment or employment that is modified according to the limitations or restrictions imposed by a physician or chiropractor pursuant to subsection 7; or
(c) Except as otherwise provided in NRS 616B.185 and 616B.186, the employee is incarcerated.
6. Each insurer may, with each check that it issues to an injured employee for a temporary total disability, include a form approved by the division for the injured employee to request continued compensation for the temporary total disability.
7. A certification of disability issued by a physician or chiropractor must:
(a) Include the period of disability and a description of any physical limitations or restrictions imposed upon the work of the employee;
(b) Specify whether the limitations or restrictions are permanent or temporary; and
(c) Be signed by the treating physician or chiropractor authorized pursuant to NRS [616B.515 or] 616B.527.
8. If the certification of disability specifies that the physical limitations or restrictions are temporary, the employer of the employee at the time of his accident is not required to comply with NRS 616C.545 to 616C.575, inclusive, and 616C.590 or the regulations adopted by the division governing vocational rehabilitation services if the employer offers the employee a position that is substantially similar to the employee’s position at the time of his injury in relation to the location of the employment, the hours he is required to work and the salary he will be paid.
Sec. 64. NRS 616C.535 is hereby amended to read as follows:
616C.535 1. [The system] A private carrier may execute agreements for the provision of vocational rehabilitation services for injured employees with the employment security division of the department of employment, training and rehabilitation, the rehabilitation division of the department of human resources and any other state or federal agency which provides such services. The fees for those services must be established by the agency which provides the services. The provisions of this subsection do not preclude the [system] private carrier from providing vocational rehabilitation services for injured employees.
2. The administrator shall adopt regulations concerning the use of programs that provide vocational rehabilitation services and which are located outside Nevada.
Sec. 65. NRS 616D.050 is hereby amended to read as follows:
(a) Issue subpoenas requiring the attendance of any witness or the production of books, accounts, papers, records and documents.
(b) Administer oaths.
(c) Certify to official acts.
(d) Call and examine under oath any witness or party to a claim.
(e) Maintain order.
(f) Rule upon all questions arising during the course of a hearing or proceeding.
(g) Permit discovery by deposition or interrogatories.
(h) Initiate and hold conferences for the settlement or simplification of issues.
(i) Dispose of procedural requests or similar matters.
(j) Generally regulate and guide the course of a pending hearing or proceeding.
2. Hearing officers, in conducting hearings or other proceedings pursuant to the provisions of chapters 616A to 616D, inclusive, of NRS or regulations adopted pursuant to those chapters, may:
(a) Issue subpoenas requiring the attendance of any witness or the production of books, accounts, papers, records and documents that are relevant to the dispute for which the hearing or other proceeding is being held.
(b) Maintain order.
(c) Permit discovery by deposition or interrogatories.
(d) Initiate and hold conferences for the settlement or simplification of issues.
(e) Dispose of procedural requests or similar matters.
(f) Generally regulate and guide the course of a pending hearing or proceeding.
Sec. 66. NRS 616D.070 is hereby amended to read as follows:
1. Disobeys an order of an appeals officer, a hearing officer, the administrator[, the manager or the manager’s] or the administrator’s designee, or a subpoena issued by the [manager, manager’s designee,] administrator, administrator’s designee, appeals officer, hearing officer, inspector or examiner;
2. Refuses to permit an inspection; or
3. As a witness, refuses to testify to any matter for which he may be lawfully interrogated,
the district judge of the county in which the person resides, on application of the appeals officer, the hearing officer, the administrator[, the manager or the manager’s] or the administrator’s designee, shall compel obedience by attachment proceedings as for contempt, as in the case of disobedience of the requirements of subpoenas issued from the court on a refusal to testify therein.
Sec. 67. NRS 616D.080 is hereby amended to read as follows:
616D.080 1. Each officer who serves a subpoena is entitled to receive the same fees as a sheriff.
2. Each witness who appears, in obedience to a subpoena which has been issued pursuant to this chapter or chapter 616A, 616B or 616C of NRS, before an appeals officer, a hearing officer, the administrator[, the manager or the manager’s] or the administrator’s designee, is entitled to receive for his attendance the fees and mileage provided for witnesses in civil cases in courts of record.
3. The appeals officer, hearing officer, administrator[, manager or manager’s] or the administrator’s designee shall:
(a) Authorize payment from his administrative budget of the fees and mileage due to such a witness; or
(b) Impose those costs upon the party at whose instance the witness was subpoenaed or, for good cause shown, upon any other party.
Sec. 68. NRS 616D.100 is hereby amended to read as follows:
(a) Made by a stenographer appointed by an appeals officer, a hearing officer, the administrator[, the manager or the manager’s designee, being certified] or the administrator’s designee;
(b) Carefully compared by that stenographer with his original notes; and
(c) Certified by that stenographer to be a true and correct transcript of the testimony in the final hearing or investigation, or of a particular witness, or of a specific part thereof, [and carefully compared by him with his original notes,] and to be a correct statement of the evidence and proceedings had on the final hearing or investigation so purporting to be taken and transcribed,
may be received in evidence with the same effect as if the stenographer had been present and testified to the facts so certified.
2. A copy of the transcript must be furnished on demand to any party upon the payment of the fee required for transcripts in courts of record.
Sec. 69. NRS 616D.200 is hereby amended to read as follows:
(a) The premiums that would otherwise have been owed [to the system] pursuant to the terms of chapters 616A to 616D, inclusive, of NRS , as determined by the administrator based upon the manual rates adopted by the commissioner, 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; and
(b) [The actual costs incurred by the system in reinstating the policy, but not to exceed 10 percent of the premiums owed by the employer; and
(c)] Interest at a rate determined pursuant to NRS 17.130 computed from the time that the premiums should have been paid.
2. The administrator shall deliver a copy of his determination to the employer. An employer who is aggrieved by the determination of the administrator 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 misdemeanor.
(b) For a second or subsequent offense committed within 7 years after the previous offense, guilty of a category C felony and shall be punished as provided in NRS 193.130.
Any criminal penalty imposed must be in addition to the amount charged pursuant to subsection 1.
Sec. 70. NRS 616D.210 is hereby amended to read as follows:
(a) Is the legal or beneficial owner of 25 percent or more of a business which terminates operations while owing a premium to [the system or] a private carrier and becomes, or induces or procures another person to become, the legal or beneficial owner of 25 percent or more of a new business engaging in similar operations; or
(b) Knowingly aids or abets another person in carrying out such conduct,
is liable in a civil action for the payment of any premium, interest and penalties owed to the [system or the] private carrier and the reasonable costs incurred by the [system or] private carrier to investigate and act upon such conduct.
2. The [system or] private carrier shall not knowingly insure any business which engages in the conduct described in subsection 1 unless the premium and any interest and penalties owed to the [system or] private carrier have been paid.
3. As used in this section, “business” includes, but is not limited to, a firm, sole proprietorship, general or limited partnership, voluntary association or private corporation.
Sec. 71. NRS 616D.250 is hereby amended to read as follows:
2.] A self-insured employer, a member of an association of self-insured public or private employers or an employer insured by a private carrier who refuses to submit his books, records and payroll to the administrator for inspection as provided by NRS 616A.485, is subject to a penalty of $1,000 for each offense, to be collected by a civil action in the name of the administrator.
[3.] 2. The person who [gives] makes such refusal is guilty of a misdemeanor.
Sec. 72. NRS 616D.260 is hereby amended to read as follows:
2. If an employer refuses to produce any document as required by the subpoena, the administrator may report to the district court by petition, setting forth that:
(a) Due notice has been given of the time and place of the production of the document;
(b) The employer has been subpoenaed by the administrator pursuant to this section; and
(c) The employer has failed or refused to produce the document required by the subpoena,
and asking for an order of the court compelling the employer to produce the document.
3. Upon such petition, the court shall enter an order directing the employer to appear before the court at a time and place to be fixed by the court in its order, the time to be not more than 10 days after the date of the order, and to show cause why he has not produced the document. A certified copy of the order must be served upon the employer.
4. If it appears to the court that the subpoena was regularly issued by the administrator, the court shall enter an order that the employer produce the required document at the time and place fixed in the order. Failure to obey the order constitutes contempt of court.
Sec. 73. NRS 616D.400 is hereby amended to read as follows:
2. A person who fails to make such records available to the attorney general[, manager] or the administrator upon reasonable request is guilty of a gross misdemeanor.
3. A person who intentionally destroys such records within 5 years after the date payment was received is guilty of a category D felony and shall be punished as provided in NRS 193.130.
Sec. 74. NRS 616D.430 is hereby amended to read as follows:
(a) An amount equal to three times the amount unlawfully obtained;
(b) Not less than $5,000 for each act of deception;
(c) An amount equal to three times the total amount of the reasonable expenses incurred by the state in enforcing this section; and
(d) Payment of interest on the amount of the excess payment at the rate fixed pursuant to NRS 99.040 for the period from the date upon which payment was made to the date upon which repayment is made.
2. A criminal action need not be brought against a person who receives a payment or benefit to which he is not entitled by reason of a violation of any of the provisions of NRS 616D.300, 616D.370, 616D.380, 616D.390, 616D.400 or 616D.410 before civil liability attaches under this section.
3. A person who unknowingly accepts a payment in excess of the amount to which he is entitled is liable for the repayment of the excess amount. It is a defense to any action brought pursuant to this subsection that the person returned or attempted to return the amount which was in excess of that to which he was entitled within a reasonable time after receiving it.
4. Any repayment of money collected pursuant to paragraph (a) or (d) of subsection 1 must be paid to the insurer who made the payment to the person who violated the provisions of this section. Any payment made to an insurer may not exceed the amount paid by the insurer to that person. [If the insurer is the system, the system shall deposit any repayment of money collected pursuant to this section with the state treasurer for credit to the state insurance fund.]
5. Any penalty collected pursuant to paragraph (b) or (c) of subsection 1 must be used to pay the salaries and other expenses of the fraud control unit for industrial insurance established pursuant to NRS 228.420. Any money remaining at the end of any fiscal year does not revert to the state general fund.
Sec. 75. NRS 617.1665 is hereby amended to read as follows:
Sec. 76. NRS 617.1675 is hereby amended to read as follows:
2. The interest and income earned on money in the account, after deducting any applicable charges, must be credited to the account.
3. The account must be administered by the state treasurer. The money in the account may be expended only for the purposes set forth in NRS 617.168 and none of the money in the account may be expended for administrative purposes. The expenditures must be made on claims approved by the [system] insurer and paid as other claims against the state are paid.
Sec. 77. NRS 617.168 is hereby amended to read as follows:
(a) The continuing benefits described in subsection 6 of NRS 617.460;
(b) The increased benefits for permanent total disability described in NRS 616C.455; and
(c) The increased death benefits described in NRS 616C.510.
2. Upon receiving a monthly statement showing the amount of benefits to be paid for the month to the persons entitled thereto pursuant to subsection 1, the state treasurer shall pay an amount equal to that shown on the statement from the account to the [system.] insurer.
3. At such time as all claimants, their dependents, widows, widowers, surviving children or surviving parent who are provided benefits or increased benefits pursuant to the provisions of subsection 1 are no longer eligible for those benefits, the balance of the account must revert to the state general fund.
Sec. 78. NRS 617.225 is hereby amended to read as follows:
2. A sole proprietor who elects to accept the terms, conditions and provisions of this chapter shall submit to a physical examination by a physician selected by the [system or the] private carrier before the commencement of coverage and on a yearly basis thereafter. The [system or the] private carrier shall prescribe the scope of the examination and shall consider it for rating purposes. The cost of the physical examination must be paid by the sole proprietor.
3. A sole proprietor who elects to submit to the provisions of this chapter shall pay to the [system or the] private carrier premiums in such manner and amounts as may be prescribed by the regulations of the commissioner.
4. If a sole proprietor fails to pay all premiums required by the regulations of the commissioner, the failure operates as a rejection of this chapter.
5. A sole proprietor who elects to be included under the provisions of this chapter remains subject to all terms, conditions and provisions of this chapter and all regulations of the commissioner until he files a written notice with the [system or the] private carrier and the administrator that he withdraws his election.
6. For purposes of this chapter, a sole proprietor shall be deemed to be an employee receiving a wage of $300 per month.
Sec. 79. NRS 617.342 is hereby amended to read as follows:
2. The notice required by subsection 1 must:
(a) Be on a form prescribed by the administrator. The form must allow the employee or his dependent to describe briefly the circumstances which caused the disease or death.
(b) Be signed by the employee or by a person on his behalf, or in the event of the employee’s death, by one of his dependents or by a person acting on behalf of the dependent.
(c) Include an explanation of the procedure for filing a claim for compensation.
(d) Be prepared in duplicate so that the employee or his dependent and the employer can retain a copy of the notice.
3. Upon receipt of the notice required by subsection 1, the employer, the employee’s supervisor or the agent of the employer who was in charge of the type of work performed by the employee shall sign the notice. The signature of the employer, the supervisor or the employer’s agent is an acknowledgment of the receipt of the notice and shall not be deemed to be a waiver of any of the employer’s defenses or rights.
4. An employer shall maintain a sufficient supply of the forms required to file the notice required by subsection 1 for use by his employees.
5. An employer shall retain any notice provided pursuant to subsection 1 for 3 years after the date of the receipt of the notice. An employer insured by [the system or] a private carrier shall not file a notice of injury with the [system or the] private carrier.
Sec. 80. NRS 617.401 is hereby amended to read as follows:
617.401 1. The division shall designate one:
(a) Third-party administrator who has a valid certificate issued by the commissioner pursuant to NRS 683A.085; or
(b) Insurer, other than a self-insured employer or association of self-insured public or private employers,
to administer claims against the uninsured employers’ claim fund. The designation must be made pursuant to reasonable competitive bidding procedures established by the administrator.
2. 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 claim for compensation with the division; and
(d) 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.] 3. If the division receives a claim pursuant to subsection [1,] 2, the division shall immediately notify the employer of the claim.
[3.] 4. 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.] 5. 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.] 6. The division:
(a) May recover from the employer the payments made by the division that are described in subsection [4] 5 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.] 7. The division shall:
(a) Determine whether the employer was insured within 30 days after receiving the claim from the employee.
(b) Assign the claim to the [system] third-party administrator or insurer designated pursuant to subsection 1 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] and payment of compensation.
Upon determining whether the claim is accepted or denied, the designated third-party administrator or insurer shall notify the [claimant,] injured employee, the named employer and the division [that the claim will not be assigned for benefits from the uninsured employers’ claim fund.
7.] of its determination.
(c) Upon demonstration of the:
(1) Costs incurred by the designated third-party administrator or insurer to administer the claim or pay compensation to the injured employee; or
(2) Amount that the designated third-party administrator or insurer will pay for administrative expenses or compensation to the injured employee and that such amounts are justified by the circumstances of the claim,
the division shall authorize payment from the uninsured employers’ claim fund.
8. Any party aggrieved by a [decision] determination regarding the administration of an assigned claim or a [decision] determination made by the division or by the [system] designated third-party administrator or insurer regarding any claim made pursuant to this section may appeal that [decision] determination within 60 days after the [decision] determination 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.] 9. 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.] 10. 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.] 11. 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] in the uninsured employers’ claim fund.
[11.] 12. 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. 81. NRS 617.430 is hereby amended to read as follows:
2. In cases of tenosynovitis, prepatellar bursitis, and infection or inflammation of the skin, no person is entitled to such compensation unless for 90 days next preceding the contraction of the occupational disease the employee has been:
(a) A resident of the State of Nevada; or
(b) Employed by a self-insured employer, a member of an association of self-insured public or private employers, or an employer insured by a private carrier that provides coverage for occupational diseases . [or an employer insured by the system.]
Sec. 82. NRS 209.189 is hereby amended to read as follows:
2. Money in the fund must be maintained in separate budgetary accounts, including at least one account for industrial programs and one for the prison farm.
3. Subject to the approval of the state board of examiners, the director may expend money deposited in this fund for the promotion and development of these programs and the prison farm. The director [shall] may expend money deposited in this fund to pay [to the state industrial insurance system the] any premiums required for coverage of offenders under the modified program of industrial insurance adopted pursuant to NRS 616B.185.
4. The interest and income earned on the money in the fund, after deducting any applicable charges, must be credited to the fund.
5. If money owed to the department for the leasing of space, facilities or equipment within the institutions or facilities of the department or for the purchase of goods or services, which must be deposited into the fund for prison industries pursuant to subsection 1, is not paid on or before the date due, the department shall charge and collect, in addition to the money due, interest on the money due at the rate of 1.5 percent per month or fraction thereof from the date on which the money became due until the date of payment.
Sec. 83. NRS 218.2754 is hereby amended to read as follows:
218.2754 1. The summary of each bill or joint resolution introduced in the legislature must include the statement:
(a) “Fiscal Note: Effect on Local Government: Yes,”
“Fiscal Note: Effect on Local Government: No,”
“Fiscal Note: Effect on Local Government: Contains Appropriation included in Executive Budget,” or
“Fiscal Note: Effect on Local Government: Contains Appropriation not included in Executive Budget,”
whichever is appropriate; and
(b) “Effect on the State : [or on Industrial Insurance:] Yes,”
“Effect on the State : [or on Industrial Insurance:] No,”
“Effect on the State : [or on Industrial Insurance:] Contains Appropriation included in Executive Budget,”
“Effect on the State : [or on Industrial Insurance:] Executive Budget,” or
“Effect on the State : [or on Industrial Insurance:] Contains Appropriation not included in Executive Budget,”
whichever is appropriate.
2. The legislative counsel shall consult the fiscal analysis division to secure the appropriate information for summaries of bills and joint resolutions.
Sec. 84. NRS 218.5377 is hereby amended to read as follows:
1. May review issues related to workers’ compensation.
2. May study the desirability of establishing a preferred employee program which provides exemptions from the payment of premiums and other financial incentives for employers who provide suitable employment for injured employees and any other program for returning injured employees to work.
3. May review the manner used by the division of industrial relations of the department of business and industry to rate physical impairments of injured employees.
4. [Shall, to ensure the solvency of the state industrial insurance system:
(a) Review and study the financial condition of the state industrial insurance system; and
(b) Determine the extent of any apparent insolvency of the system.
5.] May conduct investigations and hold hearings in connection with carrying out its duties pursuant to this section.
[6.] 5. May direct the legislative counsel bureau to assist in its research, investigations, hearings and reviews.
Sec. 85. NRS 218.610 is hereby amended to read as follows:
Sec. 86. NRS 218.737 is hereby amended to read as follows:
Sec. 87. NRS 228.420 is hereby amended to read as follows:
2. For this purpose, the attorney general shall establish within his office a fraud control unit for industrial insurance. The unit must consist of such persons as are necessary to carry out the duties set forth in this section, including, without limitation, an attorney, an auditor and an investigator.
3. The attorney general, acting through the unit established pursuant to subsection 2:
(a) Is the single state agency responsible for the investigation and prosecution of any alleged criminal violations of NRS 616D.200, 616D.220, 616D.240, 616D.300, 616D.310, 616D.350 to 616D.440, inclusive, and any fraud in the administration of chapter 616A, 616B, 616C, 616D or 617 of NRS or in the provision of compensation required by chapters 616A to 617, inclusive, of NRS;
(b) Shall cooperate with the [state industrial insurance system, the] division of industrial relations of the department of business and industry, self-insured employers, associations of self-insured public or private employers, private carriers and other state and federal investigators and prosecutors in coordinating state and federal investigations and prosecutions involving violations of NRS 616D.200, 616D.220, 616D.240, 616D.300, 616D.310, 616D.350 to 616D.440, inclusive, and any fraud in the administration of chapter 616A, 616B, 616C, 616D or 617 of NRS or in the provision of compensation required by chapters 616A to 617, inclusive, of NRS;
(c) Shall protect the privacy of persons who are eligible to receive compensation pursuant to the provisions of chapter 616A, 616B, 616C, 616D or 617 of NRS and establish procedures to prevent the misuse of information obtained in carrying out this section; and
(d) May, upon request, inspect the records of any self-insured employer, association of self-insured public or private employers, or private carrier, [the state industrial insurance system,] the division of industrial relations of the department of business and industry and the state contractors’ board to investigate any alleged violation of any of the provisions of NRS 616D.200, 616D.220, 616D.240, 616D.300, 616D.310, 616D.350 to 616D.440, inclusive, or any fraud in the administration of chapter 616A, 616B, 616C, 616D or 617 of NRS or in the provision of compensation required by chapters 616A to 617, inclusive, of NRS.
4. When acting pursuant to this section or NRS 228.175, 228.410 , [or this section,] the attorney general may commence his investigation and file a criminal action without leave of court, and he has exclusive charge of the conduct of the prosecution.
5. The attorney general shall report the name of any person who has been convicted of violating any of the provisions of NRS 616D.200, 616D.220, 616D.240, 616D.300, 616D.310, 616D.350 to 616D.440, inclusive, to the occupational board that issued the person’s license or certificate to provide medical care, remedial care or other services in this state.
6. The attorney general shall establish a toll-free telephone number for persons to report information regarding alleged violations of any of the provisions of NRS 616D.200, 616D.220, 616D.240, 616D.300, 616D.310, 616D.350 to 616D.440, inclusive, and any fraud in the administration of chapter 616A, 616B, 616C, 616D or 617 of NRS or in the provision of compensation required by chapters 616A to 617, inclusive, of NRS.
7. As used in this section:
(a) “Association of self-insured private employers” has the meaning ascribed to it in NRS 616A.050.
(b) “Association of self-insured public employers” has the meaning ascribed to it in NRS 616A.055.
(c) “Private carrier” has the meaning ascribed to it in NRS 616A.290.
(d) “Self-insured employer” has the meaning ascribed to it in NRS 616A.305.
Sec. 88. NRS 232.550 is hereby amended to read as follows:
232.550 As used in NRS 232.550 to 232.700, inclusive, unless the context otherwise requires:
1. “Administrator” means the administrator of the division.
2. “Director” means the director of the department of business and industry.
3. “Division” means the division of industrial relations of the department of business and industry.
4. “Insurer” includes:
(a) [The state industrial insurance system;
(b)] A self-insured employer;
[(c)] (b) An association of self-insured public employers;
[(d)] (c) An association of self-insured private employers; and
[(e)] (d) A private carrier.
Sec. 89. NRS 232.680 is hereby amended to read as follows:
(a) Insurer based upon expected annual premiums to be received; and
(b) Employer] insurer, including each employer who provides accident benefits for injured employees pursuant to NRS 616C.265, based upon [his expected annual expenses of providing those benefits.
For the purposes of this subsection, the “premiums to be received” by a self-insured employer or an association of self-insured public or private employers shall be deemed to be the same fraction of the premiums to be received by the state industrial insurance system that his expected annual expenditure for claims is of the expected annual expenditure of the system for claims.] expected annual expenditures for claims for injuries occurring on or after July 1, 1999. The division shall adopt regulations which establish formulas of assessment which result in an equitable distribution of costs among the insurers and employers who provide accident benefits for injured employees. The formulas may utilize actual expenditures for claims.
2. Federal grants may partially defray the costs of the division.
3. Assessments made against insurers by the division after the adoption of regulations must be used to defray all costs and expenses of administering the program of workers’ compensation, including the payment of:
(a) All salaries and other expenses in administering the division, including the costs of the office and staff of the administrator.
(b) All salaries and other expenses of administering NRS 616A.435 to 616A.460, inclusive, the offices of the hearings division of the department of administration and the programs of self-insurance and review of premium rates by the commissioner of insurance.
(c) The salary and other expenses of a full-time employee of the legislative counsel bureau whose principal duties are limited to conducting research and reviewing and evaluating data related to industrial insurance.
(d) All salaries and other expenses of the fraud control unit for industrial insurance established pursuant to NRS 228.420.
(e) Claims against uninsured employers arising from compliance with NRS 616C.220 and 617.401.
(f) All salaries and expenses of the members of the legislative committee on workers’ compensation and any other expenses incurred by the committee in carrying out its duties pursuant to NRS 218.5375 to 218.5378, inclusive.
Sec. 90. NRS 242.131 is hereby amended to read as follows:
2. The following agencies may negotiate with the department for its services or the use of its equipment, subject to the provisions of this chapter, and the department shall provide such services and the use of such equipment as may be mutually agreed:
(a) Court administrator;
(b) Department of motor vehicles and public safety;
(c) Department of transportation;
(d) Employment security division of the department of employment, training and rehabilitation;
(e) Legislative counsel bureau;
(f) [State industrial insurance system;
(g)] State controller;
[(h)] (g) State gaming control board and Nevada gaming commission; and
[(i)] (h) University and Community College System of Nevada.
3. Any state agency or elected state officer who uses the services of the department and desires to withdraw substantially from that use must apply to the director for approval. The application must set forth justification for the withdrawal. If the director denies the application, the agency or officer must:
(a) If the legislature is in regular or special session, obtain the approval of the legislature by concurrent resolution.
(b) If the legislature is not in regular or special session, obtain the approval of the interim finance committee. The director shall, within 45 days after receipt of the application, forward the application together with his recommendation for approval or denial to the interim finance committee. The interim finance committee has 45 days after the application and recommendation are submitted to its secretary within which to consider the application. Any application which is not considered by the committee within the 45-day period shall be deemed approved.
4. If the demand for services or use of equipment exceeds the capability of the department to provide them, the department may contract with other agencies or independent contractors to furnish the required services or use of equipment and is responsible for the administration of the contracts.
Sec. 91. NRS 244.33505 is hereby amended to read as follows:
(a) Has received coverage by [the state industrial insurance system or] a private carrier as required pursuant to chapters 616A to 616D, inclusive, of NRS;
(b) Maintains a valid certificate of self-insurance pursuant to chapters 616A to 616D, inclusive, of NRS;
(c) Is a member of an association of self-insured public or private employers; or
(d) Is not subject to the provisions of chapters 616A to 616D, inclusive, of NRS.
2. In a county in which such a license is not required, the board of county commissioners shall require a business, when applying for a post office box, to submit to the board the affidavit required by subsection 1.
3. Each board of county commissioners shall submit to the administrator of the division of industrial relations of the department of business and industry monthly a list of the names of those businesses which have submitted an affidavit required by subsections 1 and 2.
4. Upon receiving an affidavit required by this section, a board of county commissioners shall provide the owner of the business with a document setting forth the rights and responsibilities of employers and employees to promote safety in the workplace, in accordance with regulations adopted by the division of industrial relations of the department of business and industry pursuant to NRS 618.376.
Sec. 92. NRS 268.0955 is hereby amended to read as follows:
(a) Has received coverage by [the state industrial insurance system or] a private carrier as required pursuant to chapters 616A to 616D, inclusive, of NRS;
(b) Maintains a valid certificate of self-insurance pursuant to chapters 616A to 616D, inclusive, of NRS;
(c) Is a member of an association of self-insured public or private employers; or
(d) Is not subject to the provisions of chapters 616A to 616D, inclusive, of NRS.
2. In an incorporated city in which such a license is not required, the city council or other governing body of the city shall require a business, when applying for a post office box, to submit to the governing body the affidavit required by subsection 1.
3. Each city council or other governing body of an incorporated city shall submit to the administrator of the division of industrial relations of the department of business and industry monthly a list of the names of those businesses which have submitted an affidavit required by subsections 1 and 2.
4. Upon receiving an affidavit required by this section, the city council or other governing body of an incorporated city shall provide the applicant with a document setting forth the rights and responsibilities of employers and employees to promote safety in the workplace, in accordance with regulations adopted by the division of industrial relations of the department of business and industry pursuant to NRS 618.376.
Sec. 93. NRS 277.185 is hereby amended to read as follows:
2. On or before October 1 of each year, the executive director of the department of taxation shall convene the heads, or persons designated by the respective heads, of the state agencies named in subsection 1 and the appropriate officers of the cities and counties that require a business license. The secretary of state, a representative of the Nevada Association of Counties and a representative of the Nevada League of Cities must be invited to attend the meeting. If he knows, or is made aware by persuasive information furnished by any enterprise required to pay a tax or fee or to provide information, that any other state or local agency needs to participate to accomplish the purpose set forth in subsection 1, he shall also invite the head of that agency or the appropriate officer of the local government, and the person so invited shall attend. The director of the department of information technology shall assist in effecting the consolidation of the information and the creation of the forms.
3. The persons so assembled shall design and modify, as appropriate, the necessary joint forms for use during the ensuing fiscal year to accomplish the purpose set forth in subsection 1. If any dispute cannot be resolved by the participants, it must be referred to the Nevada tax commission for a decision that is binding on all parties.
4. On or before February 15 of each year, the executive director of the department of taxation shall submit a report to the director of the legislative counsel bureau for presentation to the legislature. The report must include a summary of the annual meeting held during the immediately preceding year and any recommendations for proposed legislation.
5. The provisions of chapter 241 of NRS apply to a meeting held pursuant to this section. The executive director of the department of taxation shall provide members of the staff of the department of taxation to assist in complying with the requirements of chapter 241 of NRS.
Sec. 94. NRS 281.125 is hereby amended to read as follows:
[2. None of the provisions of this section apply to any officers or employees of the state industrial insurance system.]
Sec. 95. NRS 281.390 is hereby amended to read as follows:
2. When the employee’s accrued sick leave time is exhausted, payment of his normal salary pursuant to subsection 1 must be discontinued and the employer shall promptly notify the [state industrial insurance system or the] insurer that provides industrial insurance for that employer so that it may begin paying the benefits to which the employee is entitled directly to the employee.
3. An employee who declines to make the election provided in subsection 1, may use all or part of the sick leave benefit normally payable to him while directly receiving benefits for temporary total disability pursuant to chapters 616A to 616D, inclusive, or 617 of NRS, but the amount of sick leave benefit paid to the employee for any pay period must not exceed the difference between his normal salary and the amount of any benefit received, exclusive of reimbursement or payment of medical or hospital expenses pursuant to those chapters for that pay period.
4. If the amount of the employee’s sick leave benefit is reduced pursuant to subsection 3 below the amount normally payable, the amount of sick leave time charged against the employee as taken during that pay period must be reduced in the same proportion.
5. The public employee may decline to use any or part of the sick leave benefit normally payable to him while receiving benefits pursuant to chapters 616A to 616D, inclusive, or 617 of NRS. During that [period of] time , the employee [shall] must be considered on leave of absence without pay.
Sec. 96. NRS 284.013 is hereby amended to read as follows:
284.013 1. Except as otherwise provided in subsection 4, this chapter does not apply to:
(a) Agencies, bureaus, commissions, officers or personnel in the legislative department or the judicial department of state government, including the commission on judicial discipline;
(b) Any person who is employed by a board, commission, committee or council created in chapters 590, 623 to 625A, inclusive, 628, 630 to 644, inclusive, 648, 652, 654 and 656 of NRS; or
(c) Officers or employees of any agency of the executive department of the state government , including the state industrial insurance system, who are exempted by specific statute.
2. Except as otherwise provided in subsection 3, the terms and conditions of employment of all persons referred to in subsection 1, including salaries not prescribed by law and leaves of absence, including, without limitation, annual leave and sick and disability leave, must be fixed by the appointing or employing authority within the limits of legislative appropriations or authorizations.
3. Except as otherwise provided in this subsection, leaves of absence prescribed pursuant to subsection 2 must not be of lesser duration than those provided for other state officers and employees pursuant to the provisions of this chapter. The provisions of this subsection do not govern the legislative commission with respect to the personnel of the legislative counsel bureau.
4. Any board, commission, committee or council created in chapters 590, 623 to 625A, inclusive, 628, 630 to 644, inclusive, 648, 652, 654 and 656 of NRS which contracts for the services of a person, shall require the contract for those services to be in writing. The contract must be approved by the state board of examiners before those services may be provided.
Sec. 97. NRS 284.173 is hereby amended to read as follows:
2. An independent contractor is a natural person, firm or corporation who agrees to perform services for a fixed price according to his or its own methods and without subjection to the supervision or control of the other contracting party, except as to the results of the work, and not as to the means by which the services are accomplished.
3. For the purposes of this section:
(a) Travel, subsistence and other personal expenses may be paid to an independent contractor, if provided for in the contract, in such amounts as provided for in the contract. Those expenses must not be paid pursuant to the provisions of NRS 281.160.
(b) There must be no:
(1) Withholding of income taxes by the state;
(2) Coverage for industrial insurance provided by the state;
(3) Participation in group insurance plans which may be available to employees of the state;
(4) Participation or contributions by either the independent contractor or the state to the public employees’ retirement system;
(5) Accumulation of vacation leave or sick leave; or
(6) Coverage for unemployment compensation provided by the state if the requirements of NRS 612.085 for independent contractors are met.
4. An independent contractor is not in the classified or unclassified service of the state, and has none of the rights or privileges available to officers or employees of the State of Nevada.
5. Except as otherwise provided in this subsection, each contract for the services of an independent contractor must be in writing. The form of the contract must be first approved by the attorney general, and, except as otherwise provided in subsection 7, an executed copy of each contract must be filed with the fiscal analysis division of the legislative counsel bureau and the clerk of the state board of examiners. The state board of examiners may waive the requirements of this subsection in the case of contracts which are for amounts less than $750.
6. Except as otherwise provided in subsection 7, and except contracts entered into by the University and Community College System of Nevada, each proposed contract with an independent contractor must be submitted to the state board of examiners. The contracts do not become effective without the prior approval of the state board of examiners, but the state board of examiners may authorize its clerk or his designee to approve contracts which are:
(a) For amounts less than $5,000 or, in contracts necessary to preserve life and property, for amounts less than $25,000.
(b) Entered into by the state gaming control board for the purposes of investigating an applicant for or holder of a gaming license.
The state board of examiners shall adopt regulations to carry out the provisions of this section.
7. Copies of the following types of contracts need not be filed or approved as provided in subsections 5 and 6:
(a) Contracts executed by the department of transportation for any work of construction or reconstruction of highways.
(b) Contracts executed by the state public works board or any other state department or agency for any work of construction or major repairs of state buildings if the contracting process was controlled by the rules of open competitive bidding.
(c) Contracts executed by the housing division of the department of business and industry.
(d) [Contracts executed by the state industrial insurance system.
(e)] Contracts executed with business entities for any work of maintenance or repair of office machines and equipment.
8. The state board of examiners shall review each contract submitted for approval pursuant to subsection 6 to consider:
(a) Whether sufficient authority exists to expend the money required by the contract; and
(b) Whether the service which is the subject of the contract could be provided by a state agency in a more cost-effective manner.
If the contract submitted for approval continues an existing contractual relationship, the board shall ask each agency to ensure that the state is receiving the services that the contract purports to provide.
9. If the services of an independent contractor are contracted for to represent an agency of the state in any proceeding in any court, the contract must require the independent contractor to identify in all pleadings the specific state agency which he is representing.
Sec. 98. NRS 333.020 is hereby amended to read as follows:
333.020 As used in this chapter, unless the context otherwise requires:
1. “Chief” means the chief of the purchasing division.
2. “Director” means the director of the department of administration.
3. “Proprietary information” means:
(a) Any trade secret or confidential business information that is contained in a bid submitted on a particular contract; or
(b) Any other trade secret or confidential business information submitted by a bidder and designated as proprietary by the chief.
As used in this subsection, “confidential business information” means any information relating to the amount or source of any income, profits, losses or expenditures of a person, including data relating to cost or price submitted in support of a bid or proposal. The term does not include the amount of a bid or proposal.
4. “Purchasing division” means the purchasing division of the department of administration.
5. “Purchasing officer” means a person who is authorized by the chief or a using agency to participate in:
(a) The evaluation of bids or proposals for a contract;
(b) Any negotiations concerning a contract; or
(c) The development, review or approval of a contract.
6. “Request for a proposal” means a statement which sets forth the requirements and specifications of a contract to be awarded by competitive selection.
7. “Trade secret” has the meaning ascribed to it in NRS 600A.030.
8. “Using agencies” means all officers, departments, institutions, boards, commissions and other agencies in the executive department of the state government which derive their support from public money in whole or in part, whether the money is provided by the State of Nevada, received from the Federal Government or any branch, bureau or agency thereof, or derived from private or other sources, except the Nevada rural housing authority, local governments as defined in NRS 354.474, conservation districts, irrigation districts[, the state industrial insurance system] and the University and Community College System of Nevada.
9. “Volunteer fire department” means a volunteer fire department which pays premiums for industrial insurance pursuant to the provisions of chapters 616A to 616D, inclusive, of NRS.
Sec. 99. NRS 333.470 is hereby amended to read as follows:
2. The chief shall issue bulletins from time to time to:
(a) Each state agency;
(b) Each local governmental agency;
(c) Each irrigation district;
(d) Each conservation district; and
(e) The University and Community College System of Nevada , [; and
(f) The state industrial insurance system,]
indicating the supplies, materials and equipment available and the prices thereof.
3. The specifications for all bids for supplies, materials or equipment to be furnished pursuant to the provisions of subsection 1 must be so written that all suppliers of the market in the industry or business concerned are given an opportunity to bid pursuant to notice as provided for in this chapter.
Sec. 100. NRS 338.1905 is hereby amended to read as follows:
2. The supreme court shall designate an energy retrofit coordinator for the buildings occupied by the judicial branch of state government.
3. The legislature, by concurrent resolution, shall designate an energy retrofit coordinator for the buildings occupied by the legislative branch of government. If the position becomes vacant at a time when the legislature is not in session, the legislative commission may designate a replacement.
4. The governor shall appoint a person who is trained in the management of facilities to assist the energy retrofit coordinator of the:
(a) Judicial branch of government, upon request of the supreme court.
(b) Legislative branch of government, upon request of the legislative commission.
A person appointed to assist an energy retrofit coordinator pursuant to this subsection shall provide all assistance requested including making recommendations for proposals for retrofitting buildings and any other assistance necessary to enable the coordinator to carry out the provisions of NRS 338.1906.
Sec. 101. NRS 353.210 is hereby amended to read as follows:
2. The chief shall direct that one copy of the forms submitted pursuant to subsection 1, accompanied by every supporting schedule and any other related material, be delivered directly to the fiscal analysis division of the legislative counsel bureau on or before August 15 of each even-numbered year.
3. The budget division of the department of administration shall give advance notice to the fiscal analysis division of the legislative counsel bureau of any conference between the budget division of the department of administration and personnel of other state agencies regarding budget estimates. A fiscal analyst of the legislative counsel bureau or his designated representative may attend any such conference.
4. The estimates of expenditure requirements submitted pursuant to subsection 1 must be classified to set forth the data of funds, organizational units, and the character and objects of expenditures, and must include a mission statement and measurement indicators for each program. The organizational units may be subclassified by functions and activities, or in any other manner at the discretion of the chief.
5. If any department, institution or other agency of the executive department of the state government, whether its money is derived from state money or from other money collected under the authority of the state, fails or neglects to submit estimates of its expenditure requirements as provided in this section, the chief may, from any data at hand in his office or which he may examine or obtain elsewhere, make and enter a proposed budget for the department, institution or agency in accordance with the data.
6. Agencies, bureaus, commissions and officers of the legislative department, the public employees’ retirement system[, the state industrial insurance system] and the judicial department of the state government shall submit to the chief for his information in preparing the proposed executive budget the budgets which they propose to submit to the legislature.
Sec. 102. NRS 353.246 is hereby amended to read as follows:
2. The legislative department, the public employees’ retirement system[, the state industrial insurance system] and the judicial department of the state government shall submit their budgets to the legislature in the same format as the proposed executive budget unless otherwise provided by the legislative commission. All projections of revenue and any other information concerning future state revenue contained in those budgets must be based upon the projections and estimates prepared by the economic forum pursuant to NRS 353.228.
Sec. 103. NRS 353.335 is hereby amended to read as follows:
2. If:
(a) Any proposed gift or grant is necessary because of an emergency as defined in NRS 353.263 or for the protection or preservation of life or property, the governor shall take reasonable and proper action to accept it and shall report the action and his reasons for determining that immediate action was necessary to the interim finance committee at its first meeting after the action is taken. Action by the governor pursuant to this paragraph constitutes acceptance of the gift or grant, and other provisions of this chapter requiring approval before acceptance do not apply.
(b) The governor determines that any proposed gift or grant would be forfeited if the state failed to accept it before the expiration of the period prescribed in paragraph (c), he may declare that the proposed acceptance requires expeditious action by the interim finance committee. Whenever the governor so declares, the interim finance committee has 15 days after the proposal is submitted to its secretary within which to approve or deny the acceptance. Any proposed acceptance which is not considered within the 15‑day period shall be deemed approved.
(c) The proposed acceptance of any gift or grant does not qualify pursuant to paragraph (a) or (b), it must be submitted to the interim finance committee. The interim finance committee has 45 days after the proposal is submitted to its secretary within which to consider acceptance. Any proposed acceptance which is not considered within the 45‑day period shall be deemed approved.
3. The secretary shall place each request submitted to him pursuant to paragraph (b) or (c) of subsection 2 on the agenda of the next meeting of the interim finance committee.
4. In acting upon a proposed gift or grant, the interim finance committee shall consider, among other things:
(a) The need for the facility or service to be provided or improved;
(b) Any present or future commitment required of the state;
(c) The extent of the program proposed; and
(d) The condition of the national economy, and any related fiscal or monetary policies.
5. A state agency may accept:
(a) Gifts, including grants from nongovernmental sources, not exceeding $10,000 each in value; and
(b) Governmental grants not exceeding $100,000 each in value,
if the gifts or grants are used for purposes which do not involve the hiring of new employees and if the agency has the specific approval of the governor or, if the governor delegates this power of approval to the chief of the budget division of the department of administration, the specific approval of the chief.
6. This section does not apply to:
(a) [The state industrial insurance system;
(b)] The University and Community College System of Nevada; or
[(c)] (b) The department of human resources while acting as the state health planning and development agency pursuant to paragraph (d) of subsection 2 of NRS 439A.081 or for donations, gifts or grants to be disbursed pursuant to NRS 433.395.
Sec. 104. NRS 353A.010 is hereby amended to read as follows:
353A.010 As used in this chapter, unless the context otherwise requires:
1. “Agency” means every agency, department, division, board, commission or similar body, or elected officer, of the executive branch of the state, except:
(a) A board or commission created by the provisions of chapters 623 to 625, inclusive, 628 to 644, inclusive, 654 and 656 of NRS.
(b) The University and Community College System of Nevada.
(c) The public employees’ retirement system.
(d) [The state industrial insurance system.
(e)] The housing division of the department of business and industry.
[(f)] (e) The Colorado River commission.
2. “Director” means the director of the department of administration.
3. “Internal accounting and administrative control” means a method through which agencies can safeguard assets, check the accuracy and reliability of their accounting information, promote efficient operations and encourage adherence to prescribed managerial policies.
Sec. 105. NRS 355.140 is hereby amended to read as follows:
(a) Bonds and certificates of the United States;
(b) Bonds, notes, debentures and loans if they are underwritten by or their payment is guaranteed by the United States;
(c) Obligations or certificates of the United States Postal Service, the Federal National Mortgage Association, the Federal Home Loan Banks, the Federal Home Loan Mortgage Corporation or the Student Loan Marketing Association, whether or not guaranteed by the United States;
(d) Bonds of this state or other states of the Union;
(e) Bonds of any county of this state or of other states;
(f) Bonds of incorporated cities in this state or in other states of the Union, including special assessment district bonds if those bonds provide that any deficiencies in the proceeds to pay the bonds are to be paid from the general fund of the incorporated city;
(g) General obligation bonds of irrigation districts and drainage districts in this state which are liens upon the property within those districts, if the value of the property is found by the board or commission making the investments to render the bonds financially sound over and above all other obligations of the districts;
(h) Bonds of school districts within this state;
(i) Bonds of any general improvement district whose population is 200,000 or more and which is situated in two or more counties of this state or of any other state, if:
(1) The bonds are general obligation bonds and constitute a lien upon the property within the district which is subject to taxation; and
(2) That property is of an assessed valuation of not less than five times the amount of the bonded indebtedness of the district;
(j) Medium-term obligations for counties, cities and school districts authorized pursuant to chapter 350 of NRS;
(k) Loans bearing interest at a rate determined by the state board of finance when secured by first mortgages on agricultural lands in this state of not less than three times the value of the amount loaned, exclusive of perishable improvements, and of unexceptional title and free from all encumbrances;
(l) Farm loan bonds, consolidated farm loan bonds, debentures, consolidated debentures and other obligations issued by federal land banks and federal intermediate credit banks under the authority of the Federal Farm Loan Act, formerly 12 U.S.C. §§ 636 to 1012, inclusive, and §§ 1021 to 1129, inclusive, and the Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to 2259, inclusive, and bonds, debentures, consolidated debentures and other obligations issued by banks for cooperatives under the authority of the Farm Credit Act of 1933, formerly 12 U.S.C. §§ 1131 to 1138e, inclusive, and the Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to 2259, inclusive, excluding such money thereof as has been received or which may be received hereafter from the Federal Government or received pursuant to some federal law which governs the investment thereof;
(m) Negotiable certificates of deposit issued by commercial banks or insured savings and loan associations;
(n) Bankers’ acceptances of the kind and maturities made eligible by law for rediscount with Federal Reserve banks or trust companies which are members of the Federal Reserve System, except that acceptances may not exceed 180 days’ maturity, and may not, in aggregate value, exceed 20 percent of the total par value of the portfolio as determined on the date of purchase;
(o) Commercial paper issued by a corporation organized and operating in the United States or by a depository institution licensed by the United States or any state and operating in the United States that:
(1) At the time of purchase has a remaining term to maturity of [no] not more than 270 days; and
(2) Is rated by a nationally recognized rating service as “A-1,” “P-1” or its equivalent, or better,
except that investments pursuant to this paragraph may not, in aggregate value, exceed 20 percent of the total par value of the portfolio as determined on the date of purchase, and if the rating of an obligation is reduced to a level that does not meet the requirements of this paragraph, it must be sold as soon as possible;
(p) Notes, bonds and other unconditional obligations for the payment of money, except certificates of deposit that do not qualify pursuant to paragraph (m), issued by corporations organized and operating in the United States or by depository institutions licensed by the United States or any state and operating in the United States that:
(1) Are purchased from a registered broker-dealer;
(2) At the time of purchase have a remaining term to maturity of [no] not more than 3 years; and
(3) Are rated by a nationally recognized rating service as “A” or its equivalent, or better,
except that investments pursuant to this paragraph may not, in aggregate value, exceed 20 percent of the total par value of the portfolio, and if the rating of an obligation is reduced to a level that does not meet the requirements of this paragraph, it must be sold as soon as possible;
(q) Money market mutual funds which:
(1) Are registered with the Securities and Exchange Commission;
(2) Are rated by a nationally recognized rating service as “AAA” or its equivalent; and
(3) Invest only in securities issued by the Federal Government or agencies of the Federal Government or in repurchase agreements fully collateralized by such securities; and
(r) Collateralized mortgage obligations that are rated by a nationally recognized rating service as “AAA” or its equivalent.
2. Repurchase agreements are proper and lawful investments of money of the state and the state insurance fund for the purchase or sale of securities which are negotiable and of the types listed in subsection 1 if made in accordance with the following conditions:
(a) The state treasurer shall designate in advance and thereafter maintain a list of qualified counterparties which:
(1) Regularly provide audited and, if available, unaudited financial statements to the state treasurer;
(2) The state treasurer has determined to have adequate capitalization and earnings and appropriate assets to be highly credit worthy; and
(3) Have executed a written master repurchase agreement in a form satisfactory to the state treasurer and the state board of finance pursuant to which all repurchase agreements are entered into. The master repurchase agreement must require the prompt delivery to the state treasurer and the appointed custodian of written confirmations of all transactions conducted thereunder, and must be developed giving consideration to the Federal Bankruptcy Act[.] , 11 U.S.C. §§ 101 et seq.
(b) In all repurchase agreements:
(1) At or before the time money to pay the purchase price is transferred, title to the purchased securities must be recorded in the name of the appointed custodian, or the purchased securities must be delivered with all appropriate, executed transfer instruments by physical delivery to the custodian;
(2) The state must enter into a written contract with the custodian appointed pursuant to subparagraph (1) which requires the custodian to:
(I) Disburse cash for repurchase agreements only upon receipt of the underlying securities;
(II) Notify the state when the securities are marked to the market if the required margin on the agreement is not maintained;
(III) Hold the securities separate from the assets of the custodian; and
(IV) Report periodically to the state concerning the market value of the securities;
(3) The market value of the purchased securities must exceed 102 percent of the repurchase price to be paid by the counterparty and the value of the purchased securities must be marked to the market weekly;
(4) The date on which the securities are to be repurchased must not be more than 90 days after the date of purchase; and
(5) The purchased securities must not have a term to maturity at the time of purchase in excess of 10 years.
3. As used in subsection 2:
(a) “Counterparty” means a bank organized and operating or licensed to operate in the United States pursuant to federal or state law or a securities dealer which is:
(1) A registered broker-dealer;
(2) Designated by the Federal Reserve Bank of New York as a “primary” dealer in United States government securities; and
(3) In full compliance with all applicable capital requirements.
(b) “Repurchase agreement” means a purchase of securities by the state or state insurance fund from a counterparty which commits to repurchase those securities or securities of the same issuer, description, issue date and maturity on or before a specified date for a specified price.
4. No money of this state may be invested pursuant to a reverse-repurchase agreement, except money invested pursuant to chapter 286 [or chapters 616A to 616D, inclusive,] of NRS.
Sec. 106. NRS 355.150 is hereby amended to read as follows:
(a) Whether the bonds of such federal agencies are actually underwritten or payment thereof is guaranteed by the United States.
(b) The financial standing and responsibility of the state or states, county or counties, incorporated cities, irrigation districts, drainage districts, school districts, and general improvement districts in the bonds or securities of which such investments are contemplated or are to be made.
(c) Whether such bonds and other securities are valid and duly authorized and issued, and the proceedings incident thereto have been fully complied with.
(d) The financial standing and responsibility of the person or persons, company or companies, corporation or corporations to whom or to which such loans are contemplated.
(e) The value of the lands so mortgaged.
2. Such commission, board or other state agency shall require the attorney general:
(a) To give his legal opinion in writing as to:
(1) The validity of any laws under which such bonds or securities are issued and authorized and in which such investments are contemplated.
(2) The validity of such bonds or other securities.
(b) To examine and pass upon and to give his official opinion in writing upon the title and abstract of title or title insurance of all agricultural lands so mortgaged to secure such loans.
3. Unless such commission, board or other state agency is satisfied from such inquiry and opinion that the bonds of such federal agencies are underwritten or payment thereof guaranteed by the United States and of the financial standing and responsibility of the state, county, incorporated city or district issuing such bonds, then such commission, board or other state agency shall not invest such funds therein , [;] but if satisfied, such commission, board or other state agency may, at its option, so invest such funds in such bonds.
Sec. 107. NRS 355.160 is hereby amended to read as follows:
Sec. 108. NRS 396.591 is hereby amended to read as follows:
Sec. 109. NRS 433A.430 is hereby amended to read as follows:
2. Money to carry out the provisions of this section must be provided by direct legislative appropriation.
Sec. 110. NRS 475.110 is hereby amended to read as follows:
2. Persons who refuse to obey the summons or who refuse to assist in fighting fire for the period stated in subsection 3, unless they present sufficient reasons, are guilty of a misdemeanor.
3. No male person may be required to fight fires a total of more than 5 days during any 1 year.
4. The board of county commissioners may fix the amount of compensation to be paid to male persons drafted to fight fires as provided in this section, and the sums so fixed must be allowed and paid as other claims against the county are paid.
5. For the purpose of obtaining the benefits of the Nevada Industrial Insurance Act, male persons drafted to fight fires [shall] must be considered employees of the county demanding their services, and they are entitled to receive for disability incurred by reason thereof the benefits under the Nevada Industrial Insurance Act. The county shall report and pay premiums to [the state industrial insurance system or] a private carrier authorized to provide industrial insurance in this state for persons so engaged.
Sec. 111. NRS 475.230 is hereby amended to read as follows:
2. The claim must include:
(a) The name, address and jurisdictional limits of the fire department;
(b) The name, address and telephone number of the person making the claim on behalf of the fire department;
(c) The name and address, if known, of the state agency having jurisdiction over the property on which the fire occurred;
(d) The exact location of the fire;
(e) A description of the property burned;
(f) The number and classification of the personnel and the number and type of equipment used to fight the fire;
(g) A copy of the fire report; and
(h) An itemized list of direct expenses and losses incurred while fighting the fire , including the purchase cost, estimated cost of repairs and a statement of depreciated value immediately preceding and after the damage to or destruction of any equipment and the extent of any insurance coverage.
3. As used in this section, “direct expenses and losses” means certain expenses and losses which were incurred while fighting a fire on property owned by the state. The term is limited to:
(a) The depreciated value, if any, of any equipment or vehicle which was damaged or destroyed; and
(b) If the employer maintains a plan which supplements coverage for workers’ compensation provided pursuant to chapters 616A to 616D, inclusive, of NRS by [the state industrial insurance system] a private carrier and the benefits are provided from public money and not by an insurer, any injury or death benefits which would have been paid by the employer from public money.
Sec. 112. NRS 538.101 is hereby amended to read as follows:
2. While engaged in the business of the commission, each member and employee of the commission is entitled to receive the per diem allowance and travel expenses provided for state officers and employees generally.
3. The director or an employee of the commission designated by the director shall certify all bills and claims for compensation, per diem expense allowances and travel expenses of the commissioners, and shall submit them for payment in the same manner as all other state claims. The bills and claims must be paid from the Colorado River commission fund or any other fund administered by the commission and designated to be used for those expenses by the director.
4. The commission shall provide its members who are appointed by the governor with industrial insurance through [the state industrial insurance system or] a private carrier authorized to provide industrial insurance in this state and shall budget and pay for the premiums for that insurance.
Sec. 113. NRS 624.328 is hereby amended to read as follows:
1. Division] :
1. The division for benefits for unemployment pursuant to chapter 612 of NRS; and
2. [State industrial insurance system or a] A private carrier that provides industrial insurance in this state for premiums for industrial insurance.
Sec. 114. NRS 668.045 is hereby amended to read as follows:
2. It is unlawful for a president, director, manager, cashier or other officer or employee of any bank willfully to give or concur in giving to a creditor of the bank any fraudulent, undue or unfair preference over other creditors, by giving security to the creditor, or by changing the nature of his claim, or otherwise, but this subsection does not prohibit the bank from giving security for public money of the State of Nevada or any political subdivision thereof, [the state industrial insurance system,] or of the United States, or an officer, agent, agency or department thereof, in the manner provided by law.
3. A person who violates the provisions of this section, or who is an accessory to, or permits or connives at, the receiving or accepting of any such deposits, or the giving of such preferences, is guilty of a category D felony and shall be punished as provided in NRS 193.130.
Sec. 115. NRS 680B.027 is hereby amended to read as follows:
2. The tax must be paid in the manner required by NRS 680B.030 and 680B.032.
3. The commissioner or the executive director of the department of taxation may require at any time verified supplemental statements with reference to any matter pertinent to the proper assessment of the tax.
[4. For the purposes of this section, “insurer” includes the state industrial insurance system.]
Sec. 116. NRS 680B.050 is hereby amended to read as follows:
(a) An amount equal to 50 percent of the aggregate amount of the tax as determined under NRS 680B.025 to 680B.039, inclusive; and
(b) An amount equal to the full amount of ad valorem taxes paid by the insurer during the calendar year next preceding the filing of the report required by NRS 680B.030, upon the home office or regional home office together with the land, as reasonably required for the convenient use of the office, upon which the home office or regional home office is situated.
These credits must not reduce the amount of tax payable to less than 20 percent of the tax otherwise payable by the insurer under NRS 680B.027.
2. For the purposes of this section, a “regional home office” means an office of the insurer performing for an area covering two or more states, with a minimum of 25 employees on its office staff, the supervision, underwriting, issuing and servicing of the insurance business of the insurer.
3. The insurer shall on or before March 1 of each year furnish proof to the satisfaction of the executive director of the department of taxation, on forms furnished by or acceptable to the executive director, as to its entitlement to the tax reduction provided for in this section. A determination of the executive director of the department of taxation pursuant to this section is not binding upon the commissioner for the purposes of NRS 682A.240.
4. An insurer is not entitled to the credits provided in this section unless:
(a) The insurer owned the property upon which the reduction is based for the entire year for which the reduction is claimed; and
(b) The insurer occupied at least 70 percent of the usable space in the building to transact insurance or the insurer is a general or limited partner and occupies 100 percent of its ownership interest in the building.
5. If two or more insurers under common ownership or management and control jointly own in equal interest, and jointly occupy and use such a home office or regional home office in this state for the conduct and administration of their respective insurance businesses as provided in this section, each of the insurers is entitled to the credits provided for by this section if otherwise qualified therefor under this section.
6. The state industrial insurance system is entitled to a credit against the tax otherwise imposed by NRS 680B.027 in an amount equal to 50 percent of the aggregate amount of the tax as determined under NRS 680B.025 to 680B.039, inclusive. This credit must not reduce the amount of tax payable to less than 20 percent of the tax otherwise payable by the system under NRS 680B.027.
Sec. 117. NRS 680B.060 is hereby amended to read as follows:
2. If the tax is not paid by the insurer on or before the date required for payment, the tax then becomes delinquent, and payment thereof may be enforced by court action instituted on behalf of the state by the attorney general. The attorney general may employ additional counsel in the city where the home office of the insurer is located, subject to the approval of compensation for such services by the state board of examiners. The administrative and substantive enforcement provisions of chapters 360 and 372 of NRS apply to the enforcement of the taxes imposed under NRS 680B.027.
3. Upon the tax becoming delinquent, the executive director of the department of taxation shall notify the commissioner, who shall suspend or revoke the insurer’s certificate of authority pursuant to NRS 680A.190.
4. If a dispute arises between an insurer and the state as to the amount of tax, if any, payable, the insurer is entitled to pay under protest the tax in the amount assessed by the department of taxation, without waiving or otherwise affecting any right of the insurer to recover any amount determined, through appropriate legal action taken by the insurer against the department of taxation, to have been in excess of the amount of tax lawfully payable.
5. Except as otherwise provided in subsection 6, all taxes, fees, licenses, fines and charges collected under this code, including the general premium tax provided for under NRS 680B.027 and as increased in any instances pursuant to NRS 680A.330, must be promptly deposited with the state treasurer for credit to the state general fund.
6. The taxes collected pursuant to NRS 680B.027 from insurers that are writing industrial insurance in this state, including the state industrial insurance system, which are attributable to industrial insurance must be promptly deposited with the state treasurer for credit to [the account for the administration of extended claims established in] the state insurance fund [pursuant to NRS 616B.087,] until the commissioner notifies the state treasurer that the balance in the [account is sufficient to satisfy all obligations and liabilities of the account as they become due.] state insurance fund is sufficient to ensure the solvency of the state industrial insurance system. Upon receipt of such a notice, the state treasurer shall discontinue depositing the taxes in the [account] state insurance fund and shall deposit the taxes collected from these insurers for credit to the state general fund.
Sec. 118. NRS 680B.060 is hereby amended to read as follows:
680B.060 1. [Except as otherwise provided in subsection 6, the] The taxes imposed under NRS 680B.027 must be collected by the department of taxation and promptly deposited with the state treasurer for credit to the state general fund.
2. If the tax is not paid by the insurer on or before the date required for payment, the tax then becomes delinquent, and payment thereof may be enforced by court action instituted on behalf of the state by the attorney general. The attorney general may employ additional counsel in the city where the home office of the insurer is located, subject to the approval of compensation for such services by the state board of examiners. The administrative and substantive enforcement provisions of chapters 360 and 372 of NRS apply to the enforcement of the taxes imposed under NRS 680B.027.
3. Upon the tax becoming delinquent, the executive director of the department of taxation shall notify the commissioner, who shall suspend or revoke the insurer’s certificate of authority pursuant to NRS 680A.190.
4. If a dispute arises between an insurer and the state as to the amount of tax, if any, payable, the insurer is entitled to pay under protest the tax in the amount assessed by the department of taxation, without waiving or otherwise affecting any right of the insurer to recover any amount determined, through appropriate legal action taken by the insurer against the department of taxation, to have been in excess of the amount of tax lawfully payable.
5. [Except as otherwise provided in subsection 6, all] All taxes, fees, licenses, fines and charges collected under this code, including the general premium tax provided for under NRS 680B.027 and as increased in any instances pursuant to NRS 680A.330, must be promptly deposited with the state treasurer for credit to the state general fund.
[6. The taxes collected pursuant to NRS 680B.027 from insurers that are writing industrial insurance in this state, including the state industrial insurance system, which are attributable to industrial insurance must be promptly deposited with the state treasurer for credit to the state insurance fund until the commissioner notifies the state treasurer that the balance in the state insurance fund is sufficient to ensure the solvency of the state industrial insurance system. Upon receipt of such a notice, the state treasurer shall discontinue depositing the taxes in the state insurance fund and shall deposit the taxes collected from these insurers for credit to the state general fund.]
Sec. 119. NRS 681B.020 is hereby amended to read as follows:
[1.] (a) Goodwill, trade names and other like intangible assets.
[2.] (b) Advances to officers , [(]other than policy loans , [)] whether secured or not, and advances to employees, agents and other persons on personal security only.
[3.] (c) Stock of such insurer, owned by it, or any equity therein or loans secured thereby, or any proportionate interest in such stock acquired or held through the ownership by such insurer of an interest in another firm, corporation or business unit.
[4.] (d) Furniture, fixtures, furnishings, safes, vehicles, libraries, stationery, literature and supplies , [(]other than data processing, recordkeeping and accounting systems authorized under subsection 13 of NRS 681B.010[), except:
(a)] , except:
(1) In the case of title insurers such materials and plants as the insurer is expressly authorized to invest in under NRS 682A.220; and
[(b)] (2) In the case of any insurer, such personal property as the insurer is permitted to hold pursuant to chapter 682A of NRS , [(investments),] or which is reasonably necessary for the maintenance and operation of real property lawfully acquired and held by the insurer other than real property used by it for home office, branch office and similar purposes.
[5.] (e) The amount, if any, by which the aggregate book value of investments as carried in the ledger assets of the insurer exceeds the aggregate value thereof as determined under this code.
2. If any successor organization to the state industrial insurance system that was established by section 79 of chapter 642, Statutes of Nevada 1981, at page 1449, wishes to transact in this state property or casualty insurance other than industrial insurance, the money required to be held in trust by that organization pursuant to section 17 of this act may not be allowed as assets of the successor organization in determining its financial condition to transact such insurance.
Sec. 120. NRS 682A.020 is hereby amended to read as follows:
2. Any particular investment held by an insurer on January 1, 1972, which was a legal investment at the time it was made, and which the insurer was legally entitled to possess immediately [prior to] before January 1, 1972, shall be deemed to be an eligible investment.
3. Any particular investment held by a successor organization to the state industrial insurance system that was established by section 79 of chapter 642, Statutes of Nevada 1981, at page 1449, which was a legal investment of the system made before January 1, 2000, and which the successor organization is legally entitled to possess on or after January 1, 2000, shall be deemed to be an eligible investment of the successor organization.
4. Eligibility of an investment [shall] must be determined as of the date of its making or acquisition, except as stated in [subsection 2.
4.] subsections 2 and 3.
5. Any investment limitation based upon the amount of the insurer’s assets or particular funds [shall] must relate to such assets or funds as shown by the insurer’s annual statement as of December 31 next preceding the date of acquisition of the investment by the insurer, or as shown by a current financial statement resulting from merger of another insurer, bulk reinsurance or change in capitalization.
[5.] 6. No insurer [shall] may pay any commission or brokerage for the purchase or sale of property in excess of that usual and customary at the time and in the locality where such purchases or sales are made, and complete information regarding all payments of commission and brokerage [shall] must be reported in the next annual statement.
Sec. 121. NRS 682B.055 is hereby amended to read as follows:
682B.055 The commissioner [may] :
1. May allow an insurer to use securities as a deposit or as a part of a deposit without delivering the securities to the commissioner under the conditions specified in regulations adopted pursuant to subsection 1 of NRS 680A.140.
2. Shall allow any successor organization to the state industrial insurance system that was established by section 79 of chapter 642, Statutes of Nevada 1981, at page 1449, to use the money held in trust by the organization pursuant to section 17 of this act as a deposit or as a part of a deposit for authority to transact industrial insurance without delivering that money to the commissioner.
Sec. 122. NRS 683A.100 is hereby amended to read as follows:
683A.100 In addition to persons excluded by the terms thereof, the definitions of an agent, broker, solicitor or managing general agent shall not be deemed to include any of the following:
1. Salaried employees rendering solely clerical and administrative services in the office of the employer.
2. Salaried administrative and clerical employees of agents and brokers performing any functions in the office and under the supervision of the employer and receiving no commissions.
3. Salaried employees of insurers, [or of] organizations employed by insurers [,] or the state industrial insurance system engaged in inspecting, rating or classifying risks, or in general supervision of agents, and not in the solicitation or writing of insurance.
4. Officers of insurers or of an association of insurers engaged in the performance of their usual and customary executive duties, exclusive of field solicitation of insurance other than rendering assistance to or on behalf of a licensed agent but receiving no commission or other compensation directly dependent upon the amount of business transacted.
5. Persons completing or delivering declarations or certificates of coverage under running inland marine insurance contracts evidencing coverage thereunder, if:
(a) Such persons receive no commissions directly or indirectly on such insurance; and
(b) Such persons or their employers have an insurable interest in the risk evidenced by the certificate or declaration.
6. Persons who secure and furnish information for the purposes of group life insurance, group or blanket health insurance or annuity coverages, or for enrolling individuals under such plans or issuing certificates thereunder or otherwise assisting in administering such plans where no commission is paid for such services.
7. Service representatives.
Sec. 123. NRS 686B.1759 is hereby amended to read as follows:
Sec. 124. NRS 687A.020 is hereby amended to read as follows:
1. Life, annuity, health or disability insurance;
2. Mortgage guaranty, financial guaranty or other forms of insurance offering protection against investment risks;
3. Fidelity or surety bonds or any other bonding obligations;
4. Credit insurance as defined in NRS 690A.015;
5. Insurance of warranties or service contracts;
6. Title insurance;
7. Ocean marine insurance;
8. Any transaction or combination of transactions between a person, including affiliates of the person, and an insurer, including affiliates of the insurer, which involves the transfer of investment or credit risk unaccompanied by the transfer of insurance risk; or
9. Any insurance provided by or guaranteed by a governmental entity . [or industrial insurance provided by the state industrial insurance system.]
Sec. 125. NRS 695C.120 is hereby amended to read as follows:
1. The purchase, lease, construction, renovation, operation or maintenance of hospitals, medical facilities, or both, and their ancillary equipment, and such property as may reasonably be required for its principal office or for such other purposes as may be necessary in the transaction of the business of the organization;
2. The making of loans to a medical group under contract with it in furtherance of its program or the making of loans to a corporation under its control for the purpose of acquiring or constructing medical facilities and hospitals or in furtherance of a program providing health care services to enrollees;
3. The furnishing of health care service through providers which are under contract with or employed by the health maintenance organization;
4. The contracting with any person for the performance on its behalf of certain functions such as marketing, enrollment and administration; and
5. The contracting with an insurance company licensed in this state or authorized to do business in this state for the provision of such insurance, indemnity, or reimbursement against the cost of health care services provided by the health maintenance organization . [; and
6. The contracting with the manager of the state industrial insurance system pursuant to NRS 616B.515 to provide comprehensive medical and health care services to injured employees whose employers are insured by the state industrial insurance system for injuries and diseases that are compensable pursuant to chapters 616A to 617, inclusive, of NRS.]
Sec. 126. NRS 696B.360 is hereby amended to read as follows:
696B.360 1. [The moneys] Except as otherwise provided in this section:
(a) The money collected by the commissioner in a proceeding under this chapter [shall] must be from time to time deposited in one or more state or national banks, savings banks or trust companies, and in the case of the insolvency or voluntary or involuntary liquidation of any such depositary which is an institution organized and supervised under the laws of this state, such deposits [shall be] are entitled to priority of payment on an equality with any other priority given by the banking laws of this state.
[2.] (b) The commissioner may [in his discretion] deposit such [moneys] money or any part thereof in a national bank or trust company as a trust fund.
2. The commissioner shall deposit in the state insurance fund any money collected in a proceeding under this chapter that is required to be held in trust by a successor organization of the state industrial insurance system by section 17 of this act. The money must be used by the commissioner for the payment of claims made against the successor organization under a policy of industrial insurance issued by that organization, and any administration costs and expenses related thereto. The payment of the claims must be made in accordance with the provisions of this chapter.
Sec. 127. 1. NRS 616B.087 and 616B.088 are hereby repealed.
2. NRS 218.2725, 616A.275, 616A.325, 616B.014, 616B.050, 616B.056, 616B.059, 616B.062, 616B.065, 616B.068, 616B.071, 616B.074, 616B.077, 616B.083, 616B.089, 616B.092, 616B.095, 616B.104, 616B.107, 616B.167, 616B.170, 616B.173, 616B.176, 616B.179, 616B.182, 616B.188, 616B.191, 616B.197, 616B.209, 616B.211, 616B.212, 616B.218, 616B.239, 616B.242, 616B.245, 616B.248, 616B.251, 616B.254, 616B.257, 616B.260, 616B.263, 616B.266, 616B.269, 616B.389, 616B.515, 616B.518, 616B.521, 616B.524, 616B.530, 616B.533, 616B.536, 616B.540, 616C.565, 617.167 and 679B.223 are hereby repealed.
Sec. 128. 1. On or before August 1, 1999, the manager of the state industrial insurance system may take such actions as are necessary to establish a domestic mutual insurance company in this state to:
(a) Insure employers against liability for injuries and occupational diseases for which their employees may be entitled to receive compensation pursuant to chapters 616A to 617, inclusive, of NRS and the federal Longshore and Harbor Workers’ Compensation Act, 33 U.S.C. §§ 901 et seq.;
(b) Provide employer’s liability insurance incidental to and provided in connection with the insurance specified in paragraph (a); and
(c) Transact such other kinds of property and casualty insurance for which the company is otherwise qualified under the provisions of Title 57 of NRS.
2. If the manager establishes a domestic mutual insurance company pursuant to subsection 1: (a) On or before September 1, 1999, that company shall file with the commissioner of insurance all documents and information required, pursuant to chapters 680A and 692B of NRS, to obtain:
(1) A certificate of authority to transact industrial insurance in this state; and
(2) An order authorizing the company to issue nonassessable policies of insurance pursuant to NRS 693A.250.
(b) The governor shall appoint an advisory committee to adopt the initial bylaws of the company. The advisory committee must be composed of representatives of employers who are insured by the state industrial insurance system on the effective date of this section. To the extent practicable:
(1) The members of the advisory committee must include representatives of employers designated by the manager as small, medium and large employers.
(2) The members of the advisory committee must include representatives of employers whose places of employment are located in the various regions of the state.
(3) The members of the advisory committee must include representatives of employers with different occupations, industries or operations.
(4) No two members of the advisory committee may represent the same employer.
A majority vote of the members of the advisory committee is required to adopt the initial bylaws of the company. Upon the adoption of the initial bylaws, the advisory committee shall cause a copy of those bylaws to be delivered to the chief executive officer of the company. The provisions of this paragraph do not prohibit the amendment of the initial bylaws of the company in accordance with the provisions of chapter 693A of NRS and the applicable provisions of the general statutes of this state relating to private corporations.
3. On or before December 31, 1999, the commissioner of insurance shall review all the documents and information submitted pursuant to paragraph (a) of subsection 2 to determine whether the domestic mutual insurance company established pursuant to subsection 1 qualifies for:
(a) A certificate of authority to transact industrial insurance in this state; and
(b) The authority to issue nonassessable policies of insurance pursuant to NRS 693A.250.
In making these determinations, the commissioner shall consider the receipt of assets and the assumption of debts and liabilities described in subsection 2 of section 129 of this act to have occurred.
Sec. 129. 1. On or before December 31, 1999, if the governor determines that:
(a) The state industrial insurance system has purchased a sufficient amount of reinsurance to enable it to operate in a financially responsible manner;
(b) The manager of the state industrial insurance system has established a domestic mutual insurance company pursuant to section 128 of this act;
(c) The state industrial insurance system has received a private letter ruling from the Internal Revenue Service which states substantially that the Internal Revenue Service will not consider the domestic mutual insurance company established by the manager pursuant to section 128 of this act to have recognized any gain or income if it receives the assets and assumes the debts and liabilities of the state industrial insurance system pursuant to subsection 2; and
(d) The commissioner of insurance has determined that the domestic mutual insurance company established by the manager pursuant to section 128 of this act qualifies:
(1) For a certificate of authority to transact industrial insurance in this state; and
(2) For the authority to issue nonassessable policies of insurance pursuant to NRS 693A.250,
the governor shall issue a proclamation stating that the events described in paragraphs (a) to (d), inclusive, have occurred.
2. If the governor issues a proclamation pursuant to subsection 1, on January 1, 2000:
(a) The manager of the state industrial insurance system may transfer to the chief executive officer of the domestic mutual insurance company established pursuant to section 128 of this act the premiums and other money paid to the state industrial insurance system, including contributions and penalties, all property and securities acquired through the use of money in the state insurance fund, all interests and dividends earned upon money from the state insurance fund that were deposited or invested, and all other properties received, collected or acquired by the state industrial insurance system before January 1, 2000;
(b) If the manager transfers the assets of the system pursuant to paragraph (a):
(1) The domestic mutual insurance company to whom the assets are so transferred shall assume all debts and liabilities, known and unknown, of the state industrial insurance system and the state insurance fund and shall issue an endorsement to each outstanding policy evidencing the equity ownership interest of the policyholders in the domestic mutual insurance company pursuant to chapter 693A of NRS;
(2) The division of state lands of the state department of conservation and natural resources shall transfer the title to all real property held by the division in the name of the State of Nevada pursuant to NRS 616B.176 to the domestic mutual insurance company;
(3) The division of state library and archives of the department of museums, library and arts shall release all records of the state industrial insurance system held by the division to the domestic mutual insurance company; and
(4) The commissioner of insurance shall issue:
(I) A certificate of authority to the domestic mutual insurance company for the purpose of transacting industrial insurance in this state; and
(II) An order authorizing the domestic mutual insurance company to issue nonassessable policies of insurance pursuant to NRS 693A.250;
(c) If the manager does not transfer the assets of the system pursuant to paragraph (a), he shall take such actions as are necessary to dissolve the domestic mutual insurance company established pursuant to section 128 of this act; and
(d) The manager shall notify the director of the legislative counsel bureau of his actions taken pursuant to this section.
Sec. 130. 1. A classified employee of the state industrial insurance system who:
(a) Is employed by the system on June 30, 1999; and
(b) Is laid off by the state industrial insurance system before January 1, 2000,
is entitled to the rights to reemployment provided by chapter 284 of NRS and the regulations adopted pursuant thereto, including, without limitation, the right to be placed on an appropriate reemployment list maintained by the department of personnel and to be allowed a preference on that list. The department of personnel shall maintain such an employee on the reemployment list for at least 24 months after the effective date of the layoff or until he is reemployed by the executive branch of state government, whichever occurs earlier.
2. If the state industrial insurance system lays off an employee described in subsection 1 before January 1, 2000, it shall:
(a) Give the employee at least 60 days’ written notice before the effective date of the layoff; and
(b) Provide the department of personnel with such information as is necessary for the department to ensure the employee receives his rights to reemployment.
3. As used in this section, “rights to reemployment” does not include the right to displace another person employed by the executive branch of state government in lieu of being laid off.
Sec. 131. 1. If a domestic mutual insurance company receives the assets and assumes the debts and liabilities of the state industrial system on January 1, 2000, pursuant to section 129 of this act, a person who:
(a) Is employed on January 1, 2000, by that company;
(b) Was employed as a classified employee by the state industrial insurance system on June 30, 1999; and
(c) Is laid off by the company on or after January 1, 2000, but before January 1, 2003,
is entitled to the rights to reemployment provided by chapter 284 of NRS and the regulations adopted pursuant thereto, including, without limitation, the right to be placed on an appropriate reemployment list maintained by the department of personnel and to be allowed a preference on that list. The department of personnel shall maintain such an employee on the reemployment list for at least 24 months after the effective date of the layoff or until he is reemployed by the executive branch of state government, whichever occurs earlier.
2. If the domestic mutual insurance company lays off an employee described in subsection 1 on or before December 31, 2002, it shall:
(a) Give the employee at least 60 days’ written notice before the effective date of the layoff; and
(b) Provide the department of personnel with such information as is necessary for the department to ensure the employee receives his rights to reemployment.
3. As used in this section, “rights to reemployment” does not include the right to displace another person employed by the executive branch of state government in lieu of being laid off.
Sec. 132. 1. A person who is employed by the state industrial insurance system on July 1, 1999, may request the department of personnel to place his name on an appropriate reemployment list maintained by the department and is entitled to be allowed a preference on that list. Upon receipt of such a request, the department shall maintain such an employee on the reemployment list until July 1, 2001, or until he is reemployed by the executive branch of state government, whichever occurs earlier.
2. If a domestic mutual insurance company receives the assets and assumes the debts and liabilities of the state industrial system on January 1, 2000, pursuant to section 129 of this act, a person who is employed on January 1, 2000, by that company may request the department of personnel to place his name on an appropriate reemployment list maintained by the department and is entitled to be allowed a preference on that list. Upon receipt of such a request, the department shall maintain such an employee on the reemployment list until January 1, 2002, or until he is reemployed by the executive branch of state government, whichever occurs earlier.
Sec. 133. If a domestic mutual insurance company receives the assets and assumes the debts and liabilities of the state industrial insurance system on January 1, 2000, pursuant to section 129 of this act and, after January 1, 2000, that company is required to reduce the number of its employees, the chief executive officer of the company shall enter into an agreement with the department of employment, training and rehabilitation for the provision of services and training to an employee of the company who is laid off before January 1, 2002, and requires additional training to obtain other gainful employment. The company shall pay the fees required for those services and training in an amount established by the department, which must not exceed $2,000,000.
Sec. 134. If a domestic mutual insurance company receives the assets and assumes the debts and liabilities of the state industrial insurance system on January 1, 2000, pursuant to section 129 of this act and, after January 1, 2000, that company is required to reduce the number of its employees, the company shall pay the full actuarial cost to purchase credit for not more than 5 years of service pursuant to NRS 286.300 for an employee who:
1. Is eligible to purchase credit;
2. Will be made eligible to receive an unreduced service retirement allowance pursuant to chapter 286 of NRS by the purchase of the credit; and
3. Agrees to retire upon completion of the purchase or on or before July 1, 2001, whichever occurs earlier.
Sec. 135. Any retrospective rating agreement or contract of the state industrial insurance system that exists on June 30, 1999, shall be deemed to be approved by the commissioner of insurance until December 31, 2000, or until the agreement or contract expires or is renewed, reissued or amended, whichever occurs earlier.
Sec. 136. A certificate of insurance issued by the manager of the state industrial insurance system pursuant to NRS 616B.670 to 616B.697, inclusive, on or before December 31, 1999, which has not expired or been revoked before that date, shall be deemed to be a certificate of registration issued by the administrator of the division of industrial relations of the department of business and industry pursuant to NRS 616B.670 to 616B.697, inclusive, as amended by this act.
Sec. 137. Any writ of attachment issued pursuant to the provisions of NRS 616B.239 or any lien created pursuant to the provisions of NRS 616B.251 or 616B.266 before January 1, 2000, may be executed, foreclosed, released, compromised or satisfied on or after that date by any successor organization to the state industrial insurance system.
Sec. 138. 1. If a domestic mutual insurance company receives the assets and assumes the debts and liabilities of the state industrial insurance system on January 1, 2000, pursuant to section 129 of this act, any person employed by the state industrial insurance system on December 31, 1999, shall be deemed to be employed by that company on January 1, 2000. The provisions of this section do not prohibit the company from terminating the employment of such a person after that date.
2. A person employed by that domestic mutual insurance company on January 1, 2000, shall be deemed to be an employee of the state whose employment has been terminated for the purposes of chapter 286 of NRS and NRS 287.041 to 287.049, inclusive, and is entitled to all of the benefits and privileges granted to such an employee pursuant to those provisions and federal law.
Sec. 139. 1. Except as otherwise provided in this section, a regulation adopted by the state industrial insurance system before January 1, 2000, is hereby repealed.
2. A regulation adopted by the state industrial insurance system before January 1, 2000, pursuant to NRS 616B.185 or 616B.694 remains in effect as a regulation of the administrator of the division of industrial relations of the department of business and industry until amended or repealed by the administrator.
Sec. 140. 1. This section, section 27, subsection 1 of section 127, and sections 128 and 129 of this act become effective upon passage and approval.
2. Sections 2, 3, 20, 24, 25, 26, 29, 96, 116, 122, subsection 1 of section 132 and section 135 of this act become effective on July 1, 1999.
3. Sections 35, 89 and 117 of this act become effective at 12:01 a.m. on July 1, 1999.
4. Sections 1, 4 to 19, inclusive, 21, 22, 23, 28, 30 to 34, inclusive, 36 to 88, inclusive, 90 to 95, inclusive, 97 to 115, inclusive, 118 to 121, inclusive, 123 to 126, inclusive, subsection 2 of 127, 130, 131, subsection 2 of section 132, 133, 134, 136 to 139, inclusive, and 141 of this act become effective on January 1, 2000, only if, on that date, the manager of the state industrial insurance system transfers the assets of the state industrial insurance system to a domestic mutual insurance company pursuant to section 129 of this act.
5. Sections 20, 96, 116 and 122 of this act expire by limitation on January 1, 2000, if the manager of the state industrial insurance system transfers the assets of the state industrial insurance system to a domestic mutual insurance company pursuant to section 129 of this act.
6. Section 8 of this act expires by limitation on June 30, 2003.
7. Section 100 of this act expires by limitation on May 1, 2013.
Sec. 141. The legislative counsel shall:
1. In preparing the reprint and supplements to the Nevada Revised Statutes, appropriately correct any obsolete or incorrect reference to the state industrial insurance system or the manager of the system.
2. In preparing supplements to the Nevada Administrative Code, appropriately correct any obsolete or incorrect reference to the state industrial insurance system or the manager of the system.
LEADLINES OF REPEALED SECTIONS
218.2725 Fiscal note required for bills and joint resolutions affecting state insurance fund or premiums for industrial insurance.
616B.014 Confidentiality of certain records of the system; exceptions.
616B.059 Liability of manager.
616B.062 Manager: Appointment; function; qualifications; bond.
616B.065 Assistant managers: Selection; classification; salaries; qualifications.
616B.068 Manager: Classification and salary.
616B.071 Manager and assistant managers: Other employment; conflicts of interest prohibited.
616B.074 Manager, assistant managers and staff: Administration of system.
616B.077 Facsimile signature of manager.
616B.087 Account for administration of extended claims.
616B.088 Account for administration of current claims.
616B.092 Reinsurance for protection of state insurance fund.
616B.095 Effect of declarations of invalidity; accounting.
616B.104 Investment of money in funds of system.
616B.107 Qualifications and employment of investment counsel; duties of state board of finance.
616B.167 General powers of manager.
616B.170 General powers of system.
616B.173 Buildings: Acquisition and sale; rentals of space.
616B.179 Power of system to insure and reinsure.
616B.188 Cooperative agreements to provide services to claimants and other patients.
616B.209 Employers of excluded persons to be placed in separate class.
616B.218 Payment of premiums or deposit upon entering or resuming business.
616B.245 Adjustment or refund for amount of premiums, penalties or interest erroneously collected.
616B.263 Execution of judgment upon request of manager; sales under execution.
616B.518 Required provisions in plan for provision of services.
616B.521 Selection of organization for managed care in which employer will participate.
616B.530 Common agreement to form organization for managed care: Definitions.
617.167 Occupational diseases account.
679B.223 Review of balance of state insurance fund.”.
Amend the title of the bill to read as follows:
“AN ACT relating to industrial insurance; authorizing the manager of the state industrial insurance system to establish a domestic mutual insurance company to transact industrial insurance and other casualty and property insurance in this state; abolishing the state industrial insurance system and authorizing the transfer of the assets of the system to the company under certain circumstances; allowing certain employees of the system and the company to retain their rights to reemployment in the executive branch of state government under certain circumstances; and providing other matters properly relating thereto.”.
Senator Townsend moved the adoption of the amendment.
Remarks by Senators Townsend, Neal, Titus, Coffin, Raggio, Care, Porter, Washington and Schneider.
Conflict of interest declared by Senators Coffin and Porter.
Senator Porter requested that his remarks be entered in the Journal.
Pursuant to our code of ethics, I must declare that I am a district manager for Farmers Insurance, a company that will be providing industrial insurance in this State in the very near future. Although any benefit I may derive from this amendment may be no greater than that accruing to other members of my profession, I feel that I may benefit financially from legislation that proposes to privatize the State Industrial Insurance System, and eliminate from the market a competitor, a public insurance company that provides industrial insurance at a reduced cost. This proposal, in effect, may benefit my company by leveling the playing field. Because of my pecuniary interest in this amendment and my commitment in a private capacity to my company, I do not feel that it is proper for me to vote on this measure. I have consistently attempted to abstain from voting on matters presented to this body that are related to the sale of insurance products my company provides, and I will, therefore, abstain from voting on this proposed amendment and on the bill.
On the personal side, I have abstained on this floor from voting on nine insurance-related bills this Session
According to our Legislative Counsel Bureau, whether or not passage of this bill will affect me financially cannot be accurately predicted today.
This makes the decision whether or not to vote a personal decision.
However, I strongly believe that—simply because something is NOT ILLEGAL that doesn’t make it right. Therefore, again, it is not appropriate for me to vote on this bill today.
Senators James, Raggio and Washington disclosed that they had been advised by the Legislative Counsel that they did not have a conflict on the amendment or the bill.
Senator Raggio requested that the following remarks be entered in the Journal as well as the legal opinion from the Legislative Counsel which was furnished to Senators Raggio, Porter, James and Washington.
April 28, 1999
Senate Chambers:
Senators Raggio, Porter, James and Washington:
You have asked whether you have a conflict of interest that would require any special actions on your part regarding the consideration by the Senate of an amendment to Senate Bill No. 37 which provides for the privatization of SIIS. I do not believe that it is possible to determine with any certainty at this time whether this amendment will have a beneficial, detrimental or neutral effect upon any one or more of the insurers who plan to compete in the area of workers’ compensation insurance after July 1, 1999.
After considering the personal interest that you have disclosed to me and the previous opinions issued by the Nevada Commission on Ethics, I would advise you to make a disclosure to the Senate in case you are later found to have a pecuniary interest or a commitment in a private capacity to another as a result of the passage of the bill. Additionally, even if it is later determined that there is ultimately a benefit or detriment that is conveyed by the bill, it is clear that the benefit or detriment accruing to you as a result of the passage of the bill from the Senate will not be greater than that accruing to any other member of the general business, profession, occupation or group because the amendment does not convey any special benefits other than to SIIS and does not favor any one insurer over another. Therefore, according to subsection 2 of NRS 281.501, it must be presumed that the independence of judgment of a reasonable person in your position would not be materially affected.
In conclusion, because the outcome of the legislation is speculative and the benefit or detriment accruing to you as a result of the vote is not greater than that accruing to any other member of the general business, profession, occupation or group, it is the opinion of this office that while it would be wise to make a disclosure concerning your interest, you are not required to abstain from voting on the adoption of the amendment or on the final passage of the bill.
Very truly yours,
Brenda J. Erdoes
Legislative Counsel
Senator Townsend:
Thank you very much, Madam President. There are some remarks that would be appropriate at this time. This amendment amends the bill as a whole. I also want to make it perfectly clear what this amendment does not do. This amendment does not in any way, shape, or form change any of the provisions that this body passed in 1995 and 1997 with regard to the State moving into the area of three-way insurance. It does not change that whatsoever. What it does is to allow the current system, known as EICON, to become a domestic mutual insurance company.
I would like to review key points that are included in this amendment. It does result in the recapitalization of the system in which the State would transfer its equity interest in the system to the policyholders of the system in a tax-free recapitalization. The system would enter into a reinsurance transaction to eliminate the current accounting deficit and to provide for future payment of claims incurred prior to July 1, 1995 up to $2 billion. The amendment also includes certain protections for employees of the System as it reduces its staff as a result of loss of market share after July 1, 1999.
The amendment addresses the specific transactions which I would like to highlight in order of actuality.
Step one is the reinsurance transaction. The system would consummate a loss portfolio transfer reinsurance agreement substantially as follows:
The structure would be in the following three points. There would be a transfer of $775 million to one or more reinsurers to be held in trust solely for the purpose of paying claims and claims adjustment expenses for claims incurred prior to July, 1995. Number two, the transfer of $1.6 billion in currently booked liabilities for claims and claims adjustment expenses for all claims incurred prior to July 1, 1995. Number three, there would be an assumption of $2 billion in future claims and claims adjustment expense liabilities for all claims incurred prior to July 1, 1995.
The impact of those three mechanisms of the structure of the transaction: first of all, the state insurance fund accumulated deficit decreases from $600 million would be reduced to zero. The State of Nevada is relieved of any future claims liability for claims and claims adjustment expenses for claims incurred prior to July 1, 1995.
The second step is the establishment of a domestic mutual insurance company. On or before August 1, 1999, the manager of the system will take all actions necessary to establish a domestic mutual insurance company in Nevada to transact property and casualty insurance for which the company is qualified under Title 57 of NRS. The Governor will appoint an advisory committee to adopt the initial bylaws of the company, consisting of employers insured by the fund and to the extent practicable, will include representatives of small, medium and large employers whose places of employment are located in the various regions of the state.
The third step requires a private letter ruling from the Internal Revenue Service (IRS) stating that the recapitalization provided for in Amendment No. 730 to Senate Bill No. 37 would be a nontaxable event to the state and to the policyholders of the system. The system expects to receive a formal response from the IRS mid to late summer of 1999.
The fourth step is that the Governor must proclaim and will proclaim that the State of Nevada transfers its equitable interest in the fund to the policyholders of that fund as of January 1, 2000, to include these equitable interests: premiums and other monies paid to the system including contributions and penalties, all properties and security acquired through the use of the money in the state fund, all interest in dividends earned on that money and all other properties received, collected or acquired by the system before January 1, 2000. The new mutual insurance company will assume all debts and liabilities known and unknown of the State Industrial Insurance System. The system shall issue an endorsement to each outstanding policy evidencing the equity ownership of the policyholders in the domestic mutual insurance company.
Step five, and the last step, is employee protections. Under this amendment, employees of the system will receive the following benefits in addition to those provided in existing law. The employee shall have the right to be placed on the reemployment list maintained by the Department of Personnel and be allowed a preference on that list for at least 24 months after the effective date of the layoff or until they are reemployed by the Executive Branch of state government whichever occurs earlier. Such preferential treatment will apply to all existing employees as of June 30, 1999, for layoffs made prior to January 1, 2003. Employees will be given at least 60 days written notice before the effective date of their layoff. The new mutual insurance company will purchase credit of not more than five years of service for certain employees who are eligible to purchase credit and will be made eligible to receive an unreduced service retirement allowance and who agree to retire upon completion of that purchase on or before July 1, 2001, whichever occurs earlier. Lastly, the new mutual insurance company will provide up to $2 million of retraining for EICON employees who receive layoff notices before January 1, 2002. This amendment allows the State Industrial Insurance System, currently known as EICON, to become a mutual insurance company
Under Title 57 all those who are licensed to provide insurance policies in the State of Nevada including the new mutual company will play by all the same rules under the regulations of Title 57. This provides State of Nevada citizens a protection against any of that debt. It provides an opportunity for the system to compete in a competitive world. Lastly, it protects as best we possibly can and gives great opportunities to those individuals that due to competition may be laid off. I will be glad to answer any questions.
Senator Neal:
First I would like to lodge a protest. This amendment I have just seen for the first time. I understand this was placed on our desks yesterday afternoon. I have some questions that I must ask for my own understanding of this particular issue. Let me start by asking the first question. The $775 million that you speak of being transferred, is that cash money?
Senator Townsend:
The answer to the question is that yes, it is cash.
Senator Neal:
The $1.6 billion, is that cash money also?
Senator Townsend:
It is an accrued liability and is not cash.
Senator Neal:
How does the $1.6 billion and the $775 million relate to the $2 billion that was mentioned?
Senator Townsend:
The $775 million is the cash that the system will transfer. The $1.6 billion is the liabilities that the system is currently responsible for. The $2 billion is the amount of reinsurance the system shall purchase. That provides a $400 million cushion that is a benefit to us when we transfer the assets. Thus the liabilities of $1.6 billion shall be transferred with protection up to $2 billion.
Senator Neal:
When you say that it will give you protection up to $2 billion, do you mean in terms of the claims that are subject to be filed by injured workers?
Senator Townsend:
On the contrary, we are talking only about claims that occurred prior to July 1, 1995. The responsibilities of the system to those injured workers are set in law. We anticipate, based on our best actuarial analysis, that the responsibilities would be over a 40-year period $1.6 billion. Many things change, someone who is injured does not, in fact, get as healthy as they could as quickly as they could. Things do change, and we want to allow that large cushion that is in here so that we are relieved of up to $2 billion of liability.
Senator Neal:
The $600 million deficit that you mentioned, is that an accounting deficit?
Senator Townsend:
On the $600 million that will go to zero upon this transaction, it is an accumulated deficit that will be wiped off the books because we will no longer be responsible for anything prior to July 1.
Senator Neal:
My question is the $600 million that is mentioned, is that an accounting deficit?
Senator Townsend:
If I understand the question correctly with regard to an accounting question, it involves the time value of money. We would hope that it would be enough money but it may not be. It is a best guess effort given all of the history as well as the technical capabilities we have.
Senator Neal:
Then according to your answer, it may or may not be $600 million in terms of a deficit?
Senator Townsend:
It may not be but the reinsurance transaction will wipe the $600 million deficit off the books.
Senator Neal:
Now the old system of industrial insurance was a tripod system which involved the premium payers, the providers and the injured worker. Do I understand that under this new system the only thing that is going to be left are the premium payers?
Senator Townsend:
The answer is that no matter who writes insurance in the State of Nevada for workers compensation including the mutual insurance company anticipated in this amendment will still have premium payers who will go out and find providers for the statutory benefit of injured workers.
Senator Neal:
The answer to the question is that what would be left, and I assume that is exemplified by the name of the new organization which is the Employer Insurance Company, it would be the premium payers. Now, let me ask just one other question. Under the old system, employers bought into the system because they did not want to be sued for injuries by the employee. By abolishing of the old system, are the employers now liable for lawsuits?
Senator Townsend:
The answer is no, and I will explain. Privatizing this system under this amendment changes not one single element of the current requirements under Chapters 616 and 617 of NRS regarding workers’ compensation or occupational diseases. All the benefits are set in statute. All the responsibilities are set in statute and nothing changes with regard to the ability of an employee to sue. They are exchanging their right to sue for the employers requirement of paying for workers’ compensation insurance and providing benefits set by us through statute.
Senator Neal:
Now, my last question, you had mentioned that the Internal Revenue Service granting some type of letter in order for this system to go forward. Could you tell me, whether or not I understood you correctly, is this key to the establishment of this privatization of the insurance?
Senator Townsend:
The letter ruling from the IRS will state whether or not the transfer of assets is considered a taxable event. The system anticipates a positive response. If that response is a negative one, the Governor need not pull the trigger. That is not anticipated, but it is provided for in this amendment.
Senator Neal:
As you describe, the Governor need not pull the trigger. Does that mean we would go back to the old system?
Senator Townsend:
I would hope that we would not go back to the old system, but we would stay exactly where we are with regard to three-way insurance which means private carriers would enter the market on July 1, 1999, and the system will stay as it is currently structured.
Senator Neal:
At the present time, the Internal Revenue Service is issuing the letter to allow you take advantage of the 501 C-3 status that you are seeking?
Senator Townsend:
Thank you, Madam President. We are not seeking to go into a tax exempt 501 C-3. This is a mutual insurance company. The letter which is requested only deals with the transaction itself.
Senator Neal:
What do you mean by the transaction?
Senator Townsend:
The transaction of going from a current fund as we sit into a private mutual fund; at that point, they become responsible for taxes like any other insurance carrier in the State of Nevada.
Senator Neal:
My last question, the transfer of the assets and the cash money of $600 million to a reinsurance company that would have this money placed into trust, did the committee seek an opinion as to whether or not this would be constitutional since our Constitution speaks of those monies that are generated for industrial insurance must be held in trust by the Treasurer of this State?
Senator Townsend:
The answer specifically to the question; the committee did not seek that opinion. The Governor and the company sought a legal opinion which said that the transaction to which you are referring is in fact constitutional for the following reasons: first of all, the Constitution requires these to be held in trust, which is exactly what the reinsurance company will do. The successor company cannot use those funds for anything else other than providing benefits to injured workers, whether they be medical or financial. Second of all, the transfer of these assets through a reinsurance transaction is done all over the world. This is not anything that is new or that is not done anywhere else. The comfort level that has come as a result of that may or may not influence anything legally. In fact, the legal opinion states the transaction is constitutional.
Senator Neal:
Was that opinion made available to the Senate?
Senator Townsend:
I do not have an opinion with me, but I can certainly get one for you, Senator. We do not have a copy here, and I apologize.
Senator Titus:
Thank you, Madam President. I do have a couple of questions. First, in addition to the considerable financial assets which have been paid into the system over the years by employers, aren’t we also turning over other state properties to this private company now?
Senator Townsend:
All assets of the company will be transferred to the new company. I want to clarify something. There is no asset held by the State Industrial Insurance System, known as EICON, that is state property. It is only policyholder property that is held in trust for the benefit of injured workers.
Senator Titus:
What will prevent premiums from going up for small businesses once they no longer have the SIIS with its subsidized premiums? Are we not concerned about small businesses and the increase of premiums for those small businesses?
Senator Townsend:
Again, a very good question. However, I want to remind you before I give an answer. This amendment has nothing to do with three-way. Three-way will occur no matter whether this bill passes or not. The answer to that is that under the three-way system that was put in place in 1995 and adjusted again in 1997, the NCCI which is the national rating agencies for insurance has been brought in by our insurance division to set the rates what is commonly known as administered rates for the first year starting July 1, 1999, and in the current law, it makes a stair step for the next four years. The first year you administer pricing no matter who is selling it. That is based on their analysis over the last 18 months of our current rate structure. After that there can be a variance by any company who sells private insurance in the State of Nevada of up to 5 percent. The next year it can vary up to 10 percent and the next year up to 15 percent and then it is an open rating system at that point. That is to allow a certain stability to set in now that we are going into a different competitive world.
Senator Titus:
Also, I wonder how we can justify turning over the fate of injured workers to a private company over which the State has no controls or oversight. This company is set to be managed by the same people who came to us in 1993 with the six-year plan for solvency, a plan that included reductions in benefits and increases in premiums. Those same people now are back before us saying that the debt has not been reduced despite the changes enacted. The debt is worse. It seems to me that is not a very good management record, and now we are saying to injured workers, “Take a chance; these people are going to take care of your problems, and we are not even going to be able to control them.”
Senator Townsend:
If I may, I am straying from the bill and dealing with the law relative to three-way insurance. I will try to answer the question. The answer is very simple. When we enter the three-way world in a few months, all private carriers were licensed to sell in the State of Nevada including this company if, in fact, it passes. They will become part of the Nevada Insurance Guarantee Association. If they fail, if the larger companies who come in and write fail, if any company who is writing insurance and providing that to an employer who is required by state law to have workers’ compensation, if that company fails, the Nevada Insurance Guarantee Association will pick up those claims. That is an assessment paid by every insurance company in Nevada to cover insolvency and ultimately a failed company.
Senator Titus:
I would request a roll call vote on this amendment, please.
Senator Townsend:
I want to close by saying that I appreciate the work by both parties in the committee. I also appreciate the work in the Governor’s office and all the staff that I have here behind me who have done such marvelous work. I would reiterate one or two things with regard to this amendment. First and foremost, this amendment deals with the privatization of this company only. It has no effect on three-way insurance. Number two, this bill that we are about to amend with this very large amendment does nothing to affect rates and does nothing to affect benefits to injured workers. Thank you, very much, Madam President.
Senator Coffin:
I rise to declare a conflict because if this passes, I will be selling the product and so, therefore, would financially benefit from that transaction so I would be abstaining from the vote.
I do have a question since I believe the rules do allow me to ask a question although I cannot state a position one way or the other. So I have a question for the chairman and the team. If the insurance guarantee fund is our last resort and the company has decided to drop out of business here and stop paying into the fund, what do we do then? That is something that is a little bit mysterious to me.
Senator Townsend:
If I may and I am certainly not going to get into a lengthy debate with my friend and colleague who is in this business and knows as much about it as anyone. I would equate workers’ compensation starting July 1, 1999, exactly as I would any other property and casualty line, and we currently have about 200 licensees in property and casualty in this state. If one of those goes under, there are two things that affect it; first and foremost, is the guarantee association to which all licensees in this state pay an assessment. Second of all, if there is any bankruptcy, obviously, the bankruptcy court which many of us are familiar with, particularly the members of Judiciary, has an incredibly broad latitude to bring assets to bear regarding payment of those claims. It is just like any other insurance product spread across all of the carriers who write in the State of Nevada. Those assessments will be analyzed by the insurance division. They will be assessed at that level. I believe the NCCI has already established that and believe that there would be enough inside that fund to cover any potential loss in the first few years of competitive operation.
Senator Coffin:
I just wanted to rise again on that because I am still a little unclear. I do not mean to be trying to confuse the chairman, but I know that in the past the fund has worked primarily through the moral suasion of the commissioner because the commissioner has the right to cancel the writing authority in other lines that a company might have if it is doing business in the State of Nevada and chooses not to write a certain line of insurance. But if a company comes into Nevada solely for the purpose of writing workers’ compensation and has no other line of business with which the commissioner or some other authority we may normally choose to authorize, they could then bludgeon that company into staying because they could say you cannot write auto anymore or homeowners. If a company comes in that does not write anything else and chooses to leave because either their experience is bad or they are going to eat the loss because they have the claims started on their books, but what if they have serious problems? They are not all going to be big companies and not all companies are going to have other lines of insurance. What is our protection because I don’t think the assessment is all that high, and the fund is not a very big fund? Maybe you could tell me the amount of the fund as it presently stands as a corollary question just to give an idea as to how much faith and credit we put into the insurance industry and is it a great deal? I would like to make that a compound question.
Senator Townsend:
I will try to answer the questions in the order they were asked. First, in regard to the single line carrier and what the problem is, anyone who will come into the state whether large national carriers with which you are familiar and you may even have done business with over time, they are required just like any other single line carrier to come into the insurance division and present their business plan. That is something new that NCCI has helped us to develop. We have asked these carriers to come in and tell us in a proposal exactly who they are going to market towards. Do they want that small $100 to $1000 a year premium person or that medium size industrial person, that small commercial but very low risk business. All of us represent various business groups here, or we may work for someone like that, and there is a multitude of those. Under the NCCI administered rating system which is required for the first year and then the variances I explained previously, all of their rates have to be based on those. That administered pricing is based on a fair and adequate rate, first for solvency and for ultimately paying out. We believe that rather than an open market which could create the problem you articulated that the administered pricing is the way to stabilize the market so that only those who are going to charge an adequate premium are going to be allowed to sell in Nevada. The answer to your second question, I do not know what is currently in the fund. We do not have anyone here from the insurance division. We have not had a problem with it over the last 15 years that I have been aware of with regard to a company that went under and had to be helped out by the guarantee fund.
Senator Care:
Just one quick question for the distinguished chairman. That is whether this company would be allowed to compete in other forms of insurance in addition to workers’ compensation?
Senator Townsend:
This is a very good question in regard to this company and an important one. The answer is yes. I do want to give one caveat to that yes and that is the fact that any current assets that have been acquired as a result of premiums currently paid cannot be used for any other lines of insurance, only the excess that will accrue after this company has done the transactions. Any excess may be used at that point but nothing currently paid by the previous policyholders or any policyholders in the future other than excess may be used to go into other lines of insurance. I believe my colleague, the senior member of the Clark County delegation had a bill on that this session that we think is an important public policy issue.
Senator James:
I also sit on the board of directors of a health care company, and we have never offered this product so I have never seen a reason to abstain on any of these measures. I suppose that if it is going to go three-way, then everybody might compete. I have no knowledge whether AMIEL will be in this business. My firm also represents a number of individuals in the insurance business. I guess that after the three-way comes, it is going to be everyone competing for that. This is not three-way and is like two-way and if you put another company into competition. So, I had the same opinion from legal that the Majority Leader read.
Senator Schneider:
To the chairman of the committee, I know our discussion this session did not go along this line. I was just wondering what the value of this company would be on the open market today. Mr. Dirks or Mr. Ormsby had a number on that.
Senator Townsend:
In attempting to answer that question, perhaps this will clear that up a little bit. The open market on this company would likely be zero in the fact that we now have a $600 million deficit which would have to be cleared up before there would be any value.
Senator Schneider:
I don’t know the insurance business very well, and I do know that we have a deficit but we have almost $800 million in cash. I do watch Wall Street buy up other companies that are not performing well. This is one of those companies that I think has a lot of value, the book value of this company. To buy the book of business they have is a tremendous value. I have been thinking about this for the last couple of weeks since we have been involved in the discussion of this. It seems to me that we should step back and take a look at this. We do not know the value of this company. We have big insurance companies that are coming into this State waiting for this market to open up so they can compete. I have a feeling that they would pay a lot of money to buy this company and the book of business because the business is sitting there. I think that we owe it to the businesses of this State that have invested in this business to see what it is worth and if we can sell this or just let it go private as it is. Maybe we could put some money back into the State. We could refund money to a lot of the businesses that have invested heavily in this company over the last decades.
Senators Titus, Coffin and Carlton requested a roll call vote on Senator Townsend’s motion.
Roll call on Senator Townsend’s motion:
Yeas—11.
Nays—Care, Carlton, Mathews, Neal, Schneider, Shaffer, Titus, Wiener—8.
Not Voting—Coffin, Porter—2.
The motion having received a majority, Madam President declared it carried.
Amendment adopted.
Senator Townsend moved that all rules be suspended, and that Senate Bill No. 37 be declared an emergency measure under the Constitution and placed on third reading and final passage.
Senators Titus, Coffin and Wiener requested a roll call vote on Senator Townsend’s motion.
Roll call on Senator Townsend’s motion:
Yeas—11.
Nays—Care, Carlton, Mathews, Neal, Schneider, Shaffer, Titus, Wiener—8.
Not Voting—Coffin, Porter—2.
The motion not having received a two-thirds majority, Madam President declared it lost.
Bill ordered reprinted, engrossed and to third reading.
Assembly Bill No. 50.
Bill read second time and ordered to third reading.
Assembly Bill No. 51.
Bill read second time and ordered to third reading.
Assembly Bill No. 165.
Bill read second time and ordered to third reading.
Assembly Bill No. 221.
Bill read second time and ordered to third reading.
Assembly Bill No. 229.
Bill read second time.
The following amendment was proposed by the Committee on Judiciary:
Amendment No. 741.
Amend section 1, page 2, line 26, after “(m)” by inserting: “Conflict resolution.
(n) Anger management.
(o)”.
Senator Wiener moved the adoption of the amendment.
Remarks by Senator Wiener.
Amendment adopted.
Bill ordered reprinted, engrossed and to third reading.
Assembly Bill No. 262.
Bill read second time and ordered to third reading.
Assembly Bill No. 304.
Bill read second time and ordered to third reading.
Assembly Bill No. 336.
Bill read second time.
The following amendment was proposed by the Committee on Judiciary:
Amendment No. 635.
Amend section 1, page 1, line 10, by deleting “shall” and inserting “may”.
Amend section 1, page 1, line 11, after “any” by inserting “reasonable”.
Amend section 1, page 2, line 3, by deleting “The” and inserting: “If the court orders the convicted person to make such restitution, the”.
Amend sec. 2, page 3, line 4, by deleting “shall” and inserting “may”.
Amend sec. 2, page 3, line 6, after “any” by inserting “reasonable”.
Amend sec. 2, page 3, line 8, by deleting “The” and inserting: “If the court orders the convicted person to make such restitution, the”.
Amend sec. 3, page 3, by deleting line 16 and inserting: “the court may order the convicted person to pay restitution for any reasonable costs”.
Amend sec. 3, page 3, line 19, by deleting “The” and inserting: “If the court orders the convicted person to make such restitution, the”.
Amend the title of the bill, first line, by deleting “requiring” and inserting: “authorizing the court to order”.
Amend the summary of the bill, first line, by deleting “Requires” and inserting: “Authorizes court to order”.
Senator James moved the adoption of the amendment.
Remarks by Senator James.
Amendment adopted.
Bill ordered reprinted, engrossed and to third reading.
Assembly Bill No. 436.
Bill read second time and ordered to third reading.
Assembly Bill No. 456.
Bill read second time and ordered to third reading.
Assembly Bill No. 506.
Bill read second time.
The following amendment was proposed by the Committee on Taxation:
Amendment No. 727.
Amend sec. 2, page 2, line 14, before “In” by inserting “1.”.
Amend sec. 2, page 2, by deleting lines 19 through 21 and inserting: “be paid during the current calendar year.
2. The department shall [use
this] :
(a) Use the statement filed pursuant to subsection 1 only to
prepare estimates for use by local governments in the preparation of their budgets [.] ; and
(b) Submit those estimates to the local governments on or before April 25 of each year.”.
Amend sec. 5, page
4, line 24, by deleting “February 15,” and inserting: “February [15,] 28,”.
Amend the bill as a whole by adding new sections designated sections 6 and 7, following sec. 5, to read as follows:
“Sec. 6. NRS 362.171 is hereby amended to read as follows:
362.171 1. Each county to which money is appropriated by subsection 1 of NRS 362.170 may set aside a percentage of that appropriation to establish a county fund for mitigation.
[2.] Money from the fund may be appropriated by the board of county commissioners only to mitigate adverse effects upon the county, or the school district located in the county, which result from [the] :
(a) A decline in the revenue received by the county from the tax on the net proceeds of minerals during the 2 fiscal years immediately preceding the current fiscal year; or
(b) The opening or closing of an extractive operation from the net proceeds of which revenue has been or is reasonably expected to be derived [under] pursuant to this chapter.
2. Each school district to which money is apportioned by a county pursuant to subsection 2 of NRS 362.170 may set aside a percentage of the amount apportioned to establish a school district fund for mitigation. Money from the fund may be used by the school district only to mitigate adverse effects upon the school district which result from:
(a) A decline in the revenue received by the school district from the tax on the net proceeds of minerals during the 2 fiscal years immediately preceding the current fiscal year; or
(b) The opening or closing of an extractive operation from the net proceeds of which revenue has been or is reasonably expected to be derived pursuant to this chapter.
Sec. 7. This act becomes effective on July 1, 1999.”.
Amend the title of the bill to read as follows:
“AN ACT relating to taxation; revising the provisions governing the reporting requirements, payment schedules and collection procedures for the tax on the net proceeds of minerals; broadening the authorized uses for the money in a county fund for mitigation; authorizing a school district to establish a fund for mitigation; and providing other matters properly relating thereto.”.
Senator McGinness moved the adoption of the amendment.
Remarks by Senator McGinness.
Amendment adopted.
Bill ordered reprinted, engrossed and to third reading.
Assembly Bill No. 544.
Bill read second time and ordered to third reading.
Assembly Bill No. 545.
Bill read second time.
The following amendment was proposed by the Committee on Judiciary:
Amendment No. 743.
Amend section 1, page 3, by deleting line 38 and inserting:
“(a) The fees set forth in paragraphs (a) and (b) of subsection 1 and subparagraph (1) of paragraph (e) of subsection 1, as”.
Amend section 1, page 3, by deleting lines 40 through 43 and inserting: “an additional fee equal to one-half of the fee to which he is entitled pursuant to paragraph (c) of subsection 1] ; and
(b) A fee of $5.33 per page for the original draft and one copy, and 83 cents per page for each additional copy for”.
Senator James moved the adoption of the amendment.
Remarks by Senators James and Wiener.
Senator Wiener disclosed that a former relative is a court reporter.
Amendment adopted.
Bill ordered reprinted, engrossed and to third reading.
Assembly Bill No. 647.
Bill read second time.
The following amendment was proposed by the Committee on Judiciary:
Amendment No. 719.
Amend sec. 3, page 3, by deleting line 40 and inserting: “which includes, without limitation, a description of the property and an acknowledgment of the pawnbroker’s interest in the property, and which”.
Amend sec. 4, page
4, by deleting line 19 and inserting: “removed from his place of business [within
30 days]
after the receipt of the”.
Amend the bill as a whole by adding a new section designated sec. 5, following sec. 4, to read as follows:
“Sec. 5. This act becomes effective on July 1, 1999.”.
Senator James moved the adoption of the amendment.
Remarks by Senator James.
Amendment adopted.
Bill ordered reprinted, engrossed and to third reading.
Assembly Bill No. 648.
Bill read second time.
The following amendment was proposed by the Committee on Judiciary:
Amendment No. 744.
Amend section 1, page 1, line 2, by deleting: “2 and 3” and inserting: “2, 3 and 4”.
Amend the bill as a whole by deleting sections 2 and 3, renumbering sections 4 through 7 as sections 5 through 8 and adding new sections designated sections 2 through 4, following section 1, to read as follows:
“Sec. 2. The attorney general may provide for the defense, including, without limitation, the defense of cross-claims and counterclaims, of any present or former justice of the peace or municipal judge in any civil action brought against that person based on an alleged act or omission relating to his public duties or employment if:
1. The justice of the peace or municipal judge has requested representation by the official attorney of the political subdivision pursuant to NRS 41.0339;
2. The official attorney has:
(a) Failed to determine whether to tender the defense pursuant to NRS 41.03415, and an answer or other responsive pleading must be filed within 10 days;
(b) Determined not to tender the defense pursuant to NRS 41.03415; or
(c) Determined that it is impracticable or could constitute a conflict of interest for the legal services to be rendered by the official attorney, but the official attorney has not:
(1) Employed special counsel pursuant to NRS 41.0344;
(2) Tendered the defense to an insurer who is authorized to defend the action pursuant to a contract of insurance, pursuant to NRS 41.0345; or
(3) Requested the attorney general to provide the defense pursuant to this section;
3. The justice of the peace or municipal judge submits a written request for defense to the attorney general and a copy of the request to the office of the court administrator, or the official attorney, after determining that it is impracticable or could constitute a conflict of interest for the legal services to be rendered by the official attorney, submits a written request for defense to the attorney general and a copy of the request to the office of the court administrator; and
4. The attorney general determines that the act or omission on which the action is based appears to be within the course and scope of the public duty or employment of the justice of the peace or municipal judge and appears to have been performed or omitted in good faith.
Sec. 3. If the attorney general defends an action pursuant to section 2 of this act, the political subdivision that employed the justice of the peace or municipal judge at the time the act or omission on which the action is based occurred shall pay the cost of legal representation provided by the attorney general.
Sec. 4. 1. If a request for the defense of a justice of the peace or municipal judge is submitted to the attorney general pursuant to section 2 of this act, the attorney general shall determine as promptly as possible whether to tender the defense of the justice of the peace or municipal judge. Until the attorney general makes the determination, he shall take appropriate action to defend or otherwise protect the time of the justice of the peace or municipal judge to file a responsive pleading.
2. After determining whether to tender the defense of the justice of the peace or municipal judge, the attorney general shall, as promptly as possible, give written notice of the determination to the justice of the peace or municipal judge and the political subdivision that employed that person at the time the act or omission on which the action is based occurred.”.
Amend sec. 4, page 2, by deleting lines 21 and 22 and inserting:
“41.0338 As used in NRS 41.0339 to 41.0349, inclusive, and sections 2, 3 and 4 of this act, “official attorney” means:”.
Senator James moved the adoption of the amendment.
Remarks by Senator James.
Amendment adopted.
Bill ordered reprinted, engrossed and to third reading.
Assembly Joint Resolution No. 4.
Resolution read second time and ordered to third reading.
Assembly Joint Resolution No. 19.
Resolution read second time and ordered to third reading.
GENERAL FILE AND THIRD READING
Senate Bill No. 303.
Bill read third time.
Roll call on Senate Bill No. 303:
Yeas—21.
Nays—None.
Senate Bill No. 303 having received a constitutional majority, Madam President declared it passed, as amended.
Bill ordered transmitted to the Assembly.
Senate Bill No. 304.
Bill read third time.
Roll call on Senate Bill No. 304:
Yeas—21.
Nays—None.
Senate Bill No. 304 having received a constitutional majority, Madam President declared it passed, as amended.
Bill ordered transmitted to the Assembly.
Assembly Bill No. 299.
Bill read third time.
Roll call on Assembly Bill No. 299:
Yeas—21.
Nays—None.
Assembly Bill No. 299 having received a constitutional majority, Madam President declared it passed.
Bill ordered transmitted to the Assembly.
Assembly Bill No. 444.
Bill read third time.
Roll call on Assembly Bill No. 444:
Yeas—21.
Nays—None.
Assembly Bill No. 444 having received a constitutional majority, Madam President declared it passed.
Bill ordered transmitted to the Assembly.
UNFINISHED BUSINESS
Consideration of Assembly Amendments
Senate Bill No. 499.
The following Assembly amendment was read:
Amendment No. 710.
Amend section 1, page 2, lines 29 and 30, by deleting “biweekly. [7.]” and inserting: “biweekly [.
7.] except those eligible employees who are approved for overtime in excess of one scheduled shift of 8 or more hours per day.”.
Senator O’Connell moved that the Senate concur in the Assembly amendment to Senate Bill No. 499.
Remarks by Senator O’Connell.
Motion carried.
Bill ordered enrolled.
Signing of Bills and resolutions
There being no objections, the President and Secretary signed Senate Bills Nos. 166, 326, 344, 352; Senate Concurrent Resolutions Nos. 15, 34; Assembly Bills Nos. 226, 261, 350, 374, 485.
GUESTS EXTENDED PRIVILEGE OF SENATE FLOOR
On request of Senator Raggio, the privilege of the floor of the Senate Chamber for this day was extended to Laura Schulte, Mendy Elliott, Sara Beth Brown, Kirk Clausen, Linda Moore, Sam Mullotta, Bertha Mullins, Eloiza Martinez, Jackie Engram, Bryan Waters, Denny Johnson, Liz Braman, Vaughna Bendickson, Maryanne Tarver, Greg Titus, Anthony Roman, Rubert Ruiz, Rochanne Hackett, John Evans and Tim Butturini.
Senator Raggio moved that the Senate adjourn until Friday, April 30, 1999 at 12:30 a.m.
Motion carried.
Senate adjourned at 1:16 p.m.
Approved: Lorraine T. Hunt
President of the Senate
Attest: Janice L. Thomas