SB168_EN

Senate Bill No. 168–Committee on Commerce and Labor

CHAPTER..........

AN ACT relating to industrial insurance; revising certain provisions governing the disclosure of information by the Division of Industrial Relations of the Department of Business and Industry relating to an uninsured employer or proof of industrial insurance coverage; authorizing a physician or chiropractor to delegate to a medical facility the duty to file a claim for compensation within a certain period after the physician or chiropractor provides treatment to an injured employee; authorizing the Administrator of the Division to impose administrative fines against such a medical facility under certain circumstances; authorizing a party who is aggrieved by certain determinations of the Division relating to the Uninsured Employers’ Claim Account to appeal those determinations to an appeals officer under certain circumstances; revising provisions governing recovery of payments by the Division; and providing other matters properly relating thereto.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 616A of NRS is hereby amended by

adding thereto a new section to read as follows:

“Medical facility” means a hospital, clinic or other facility that

provides treatment to an employee who:

1. Is injured by an accident; or

2. Contracts an occupational disease,

arising out of and in the course of his employment.

Sec. 2. NRS 616A.025 is hereby amended to read as follows:

616A.025 As used in chapters 616A to 616D, inclusive, of

NRS, unless the context otherwise requires, the words and terms

defined in NRS 616A.030 to 616A.360, inclusive, and section 1 of

this act have the meanings ascribed to them in those sections.

Sec. 3. NRS 616B.012 is hereby amended to read as follows:

616B.012 1. Except as otherwise provided in this section and

in NRS 616B.015, 616B.021 and 616C.205, information obtained

from any insurer, employer or employee is confidential and may

not be disclosed or be open to public inspection in any manner

which would reveal the person’s identity.

2. Any claimant or his legal representative is entitled to

information from the records of the insurer, to the extent necessary

for the proper presentation of a claim in any proceeding under

chapters 616A to 616D, inclusive, or chapter 617 of NRS.

3. The Division and Administrator are entitled to information

from the records of the insurer which is necessary for the

performance of their duties. The Administrator may, by regulation,

prescribe the manner in which otherwise confidential information

may be made available to:

(a) Any agency of this or any other state charged with the

administration or enforcement of laws relating to industrial

insurance, unemployment compensation, public assistance or labor

law and industrial relations;

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

support;

Treasury;

(d) The Department of Taxation; and

(e) The State Contractors’ Board in the performance of its duties

to enforce the provisions of chapter 624 of NRS.

Information obtained in connection with the administration of a

program of industrial insurance may be made available to persons

or agencies for purposes appropriate to the operation of a program

of industrial insurance.

4. Upon written request made by a public officer of a local

government, an insurer shall furnish from its records the name,

address and place of employment of any person listed in its records.

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] the local government. The insurer may

charge a reasonable fee for the cost of providing the requested

information.

5. To further a current criminal investigation, the chief

executive officer of any law enforcement agency of this state may

submit to the Administrator a written request for the name, address

and place of employment of any person listed in the records of an

insurer. The request must set forth the social security number of the

person about whom the request is made and contain a statement

signed by the chief executive officer certifying that the request is

made to further a criminal investigation currently being conducted

by the agency. Upon receipt of a request, the Administrator shall

instruct the insurer to furnish the information requested. Upon

receipt of such an instruction, the insurer shall furnish the

information requested. The insurer may charge a reasonable fee to

cover any related administrative expenses.

6. Upon request by the Department of Taxation, the

Administrator shall provide:

(a) Lists containing the names and addresses of employers; and

(b) Other information concerning employers collected and

maintained by the Administrator or the Division to carry out the

purposes of chapters 616A to 616D, inclusive, or chapter 617 of

NRS,

to the Department for its use in verifying returns for the business

tax. The Administrator may charge a reasonable fee to cover any

related administrative expenses.

7. Any person who, in violation of this section, discloses

information obtained from files of claimants or policyholders or

obtains a list of claimants or policyholders under chapters 616A to

616D, inclusive, or chapter 617 of NRS and uses or permits the use

of the list for any political purposes, is guilty of a gross

misdemeanor.

8. All letters, reports or communications of any kind, oral or

written, from the insurer, or any of its agents, representatives or

employees are privileged and must not be the subject matter or

basis for any lawsuit if the letter, report or communication is

written, sent, delivered or prepared pursuant to the requirements of

chapters 616A to 616D, inclusive, or chapter 617 of NRS.

9. The provisions of this section do not prohibit the

Administrator or Division from disclosing any nonproprietary

information relating to an uninsured employer or proof of

industrial insurance.

Sec. 4. NRS 616C.040 is hereby amended to read as follows:

616C.040 1. [A] Except as otherwise provided in this

section, a treating physician or chiropractor shall, within 3 working

days after [he first treats] first providing treatment to an injured

employee for a particular injury, complete and file a claim for

compensation with the employer of the injured employee and the

employer’s insurer . [, a claim for compensation.] If the employer is

a self-insured employer, the treating physician or chiropractor shall

file the claim for compensation with the employer’s third-party

administrator. If the physician or chiropractor files the claim for

compensation by electronic transmission, [he] the physician or

chiropractor shall, upon request, mail to the insurer or third-party

administrator the form that contains the original signatures of the

injured employee and the physician or chiropractor. The form must

be mailed within 7 days after receiving such a request.

2. A physician or chiropractor who has a duty to file a claim

for compensation pursuant to subsection 1 may delegate the duty

to a medical facility. If the physician or chiropractor delegates the

duty to a medical facility:

(a) The medical facility must comply with the filing

requirements set forth in this section; and

(b) The delegation must be in writing and signed by:

(1) The physician or chiropractor; and

(2) An authorized representative of the medical facility.

3. A claim for compensation required by subsection 1 must be

filed on a form prescribed by the Administrator.

[3.] 4. If a claim for compensation is accompanied by a

certificate of disability, the certificate must include a description of

any limitation or restrictions on the injured employee’s ability to

work.

[4.] 5. Each physician, chiropractor and medical facility that

treats injured employees, each insurer, third-party administrator and

employer, and the Division shall maintain at their offices a

sufficient supply of the forms prescribed by the Administrator for

filing a claim for compensation.

[5.] 6. The Administrator [shall] may impose an administrative

fine of not more than $1,000 [on a physician or chiropractor] for

each violation of subsection 1 [.] on:

(a) A physician or chiropractor; or

(b) A medical facility if the duty to file the claim for

compensation has been delegated to the medical facility pursuant

to this section.

Sec. 5. NRS 616C.045 is hereby amended to read as follows:

616C.045 1. Except as otherwise provided in NRS 616B.727,

within 6 working days after the receipt of a claim for compensation

from a physician or chiropractor, or a medical facility if the duty to

file the claim for compensation has been delegated to the medical

facility pursuant to NRS 616C.040, an employer shall complete

and file with his insurer or third-party administrator an employer’s

report of industrial injury or occupational disease.

2. The report must:

(a) Be filed on a form prescribed by the Administrator;

(b) Be signed by the employer or his designee;

regulations of the Administrator; and

(d) Be accompanied by a statement of the wages of the

employee if the claim for compensation received from the treating

physician or chiropractor , or a medical facility if the duty to file

the claim for compensation has been delegated to the medical

facility pursuant to NRS 616C.040, indicates that the injured

employee is expected to be off work for 5 days or more.

3. An employer who files the report required by subsection 1

by electronic transmission shall, upon request, mail to the insurer or

third-party administrator the form that contains the original

signature of the employer or his designee. The form must be mailed

within 7 days after receiving such a request.

4. The Administrator shall impose an administrative fine of not

more than $1,000 on an employer for each violation of this section.

Sec. 6. 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

Account. The designation must be made pursuant to reasonable

competitive bidding procedures established by the Administrator.

2. Except as otherwise provided in this subsection, an

employee may receive compensation from the Uninsured

Employers’ Claim Account if:

(a) He was hired in this state or he is regularly employed in this

state;

(b) He suffers an accident or injury which arises out of and in

the course of his employment:

(1) In this state; or

(2) While on temporary assignment outside the State for [a

period of] not more than 12 months;

(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.

An employee who suffers an accident or injury while on temporary

assignment outside the State is not eligible to receive compensation

from the Uninsured Employers’ Claim Account unless he has been

denied workers’ compensation in the state in which the accident or

injury occurred.

3. If the Division receives a claim pursuant to subsection 2, the

Division shall immediately notify the employer of the claim.

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.

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 Account or incurred by the

Division.

6. The Division:

(a) May recover from the employer the payments made by the

Division that are described in subsection 5 and any accrued interest

by bringing a civil action in [district court.] a court of competent

jurisdiction.

(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.

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.

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 third-party administrator or insurer

designated pursuant to subsection 1 for administration and payment

of compensation.

Upon determining whether the claim is accepted or denied, the

designated third-party administrator or insurer shall notify the

injured employee, the named employer and the Division of its

determination.

8. Upon demonstration of the:

(a) Costs incurred by the designated third-party administrator or

insurer to administer the claim or pay compensation to the injured

employee; or

(b) 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 Account.

9. Any party aggrieved by a determination [regarding the

administration of an assigned claim or a determination] made by the

Division [or by the designated third-party administrator or insurer]

regarding the assignment of any claim made pursuant to this

section may appeal that determination by filing a notice of appeal

with an appeals officer within [60] 30 days after the determination

is rendered . The provisions of NRS 616C.345 to 616C.385,

inclusive, apply to an appeal filed pursuant to this subsection.

10. Any party aggrieved by a determination to accept or to

deny any claim made pursuant to this section or by a

determination to pay or to deny the payment of compensation

regarding any claim made pursuant to this section may appeal

that determination, within 70 days after the 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.

10.] 11. 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.

[11.] 12. An uninsured employer is liable for the interest on

any amount paid on his claims from the Uninsured Employers’

Claim Account. 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 Account until payment is received by the Division from

the employer.

[12.] 13. Attorney’s fees recoverable by the Division pursuant

to this section must be:

(a) If a private attorney is retained by the Division, paid at the

usual and customary rate for that attorney.

(b) If the attorney is an employee of the Division, paid at the

rate established by regulations adopted by the Division.

Any money collected must be deposited to the Uninsured

Employers’ Claim Account.

[13.] 14. 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. 7. NRS 616C.340 is hereby amended to read as follows:

616C.340 1. The Governor shall appoint one or more appeals

officers to conduct hearings [in contested claims for compensation

pursuant to NRS 616C.360.] and appeals as required pursuant to

chapters 616A to 617, inclusive, of NRS. Each appeals officer shall

hold office for 2 years [from] after the date of his appointment and

until his successor is appointed and has qualified. Each appeals

officer is entitled to receive an annual salary in an amount provided

by law and is in the unclassified service of the State.

2. Each appeals officer must be an attorney who has been

licensed to practice law before all the courts of this state for at least

2 years. Except as otherwise provided in NRS 7.065, an appeals

officer shall not engage in the private practice of law.

3. If an appeals officer determines that he has a personal

interest or a conflict of interest, directly or indirectly, in any case

which is before him, he shall disqualify himself from hearing the

case.

4. The Governor may appoint one or more special appeals

officers to conduct hearings [in contested claims for compensation

pursuant to NRS 616C.360.] and appeals as required pursuant to

chapters 616A to 617, inclusive, of NRS. The Governor shall not

appoint an attorney who represents persons in actions related to

claims for compensation to serve as a special appeals officer.

5. A special appeals officer appointed pursuant to subsection 4

is vested with the same powers as a regular appeals officer. A

special appeals officer may hear any case in which a regular

appeals officer has a conflict, or any case assigned to him by the

Senior Appeals Officer to assist with a backlog of cases. A special

appeals officer is entitled to be paid at an hourly rate, as determined

by the Department of Administration.

6. The decision of an appeals officer is the final and binding

administrative determination of a claim for compensation under

chapters 616A to 616D, inclusive, or chapter 617 of NRS, and the

whole record consists of all evidence taken at the hearing before the

appeals officer and any findings of fact and conclusions of law

based thereon.

Sec. 8. NRS 616C.345 is hereby amended to read as follows:

616C.345 1. Any party aggrieved by a decision of the

hearing officer relating to a claim for compensation may appeal

from the decision by filing a notice of appeal with an appeals

officer within 30 days after the date of the decision.

2. If a dispute is required to be submitted to a procedure for

resolving complaints pursuant to NRS 616C.305 and:

(a) A final determination was rendered pursuant to that

procedure; or

(b) The dispute was not resolved pursuant to that procedure

within 14 days after it was submitted,

any party to the dispute may file a notice of appeal within 70 days

after the date on which the final determination was mailed to the

employee, or his dependent, or the unanswered request for

resolution was submitted. Failure to render a written determination

within 30 days after receipt of such a request shall be deemed by

the appeals officer to be a denial of the request.

3. Except as otherwise provided in NRS 616C.380, the filing of

a notice of appeal does not automatically stay the enforcement of

the decision of a hearing officer or a determination rendered

pursuant to NRS 616C.305. The appeals officer may order a stay,

when appropriate, upon the application of a party. If such an

application is submitted, the decision is automatically stayed until a

determination is made concerning the application. A determination

on the application must be made within 30 days after the filing of

the application. If a stay is not granted by the officer after reviewing

the application, the decision must be complied with within 10 days

after the date of the refusal to grant a stay.

4. Except as otherwise provided in this subsection, [the appeals

officer shall,] within 10 days after receiving a notice of appeal

pursuant to this section or NRS 616C.220 or 617.401, or within 10

days after receiving a notice of a contested claim pursuant to

subsection 5 of NRS 616C.315, the appeals officer shall schedule a

hearing on the merits of the appeal or contested claim for a date and

time within 90 days after his receipt of the notice and give notice by

mail or by personal service to all parties to the matter and their

attorneys or agents at least 30 days before the date and time

scheduled. A request to schedule the hearing for a date and time

which is:

(a) Within 60 days after the receipt of the notice of appeal or

contested claim; or

(b) More than 90 days after the receipt of the notice or

claim,

may be submitted to the appeals officer only if all parties to the

appeal or contested claim agree to the request.

5. An appeal or contested claim may be continued upon written

stipulation of all parties, or upon good cause shown.

6. Failure to file a notice of appeal within the period specified

in subsection 1 or 2 may be excused if the party aggrieved shows

by a preponderance of the evidence that he did not receive the

notice of the determination and the forms necessary to appeal the

determination. The claimant, employer or insurer shall notify the

hearing officer of a change of address.

Sec. 9. (Deleted by amendment.)

Sec. 10. NRS 617.352 is hereby amended to read as follows:

617.352 1. [A] Except as otherwise provided in this section,

a treating physician or chiropractor shall, within 3 working days

after [he first treats] first providing treatment to an employee who

has incurred an occupational disease, complete and file a claim for

compensation with the employer of the employee and the

employer’s insurer . [, a claim for compensation.] If the employer is

a self-insured employer, the treating physician or chiropractor shall

file the claim for compensation with the employer’s third-party

administrator. If the physician or chiropractor files the claim for

compensation by electronic transmission, [he] the physician or

chiropractor shall, upon request, mail to the insurer or third-party

administrator the form that contains the original signatures of the

employee and the physician or chiropractor. The form must be

mailed within 7 days after receiving such a request.

2. A physician or chiropractor who has a duty to file a claim

for compensation pursuant to subsection 1 may delegate the duty

to a medical facility. If the physician or chiropractor delegates the

duty to a medical facility:

(a) The medical facility must comply with the filing

requirements set forth in this section; and

(b) The delegation must be in writing and signed by:

(1) The physician or chiropractor; and

(2) An authorized representative of the medical facility.

3. A claim for compensation required by subsection 1 must be

filed on a form prescribed by the Administrator.

[3.] 4. If a claim for compensation is accompanied by a

certificate of disability, the certificate must include a description of

any limitation or restrictions on the injured employee’s ability to

work.

[4.] 5. Each physician, chiropractor and medical facility that

treats injured employees who have incurred occupational diseases,

each insurer, third-party administrator and employer, and the

Division shall maintain at their offices a sufficient supply of the

forms prescribed by the Administrator for filing a claim for

compensation.

[5.] 6. The Administrator [shall] may impose an administrative

fine of not more than $1,000 [against a physician or chiropractor]

for each violation of subsection 1 [.] on:

(a) A physician or chiropractor; or

(b) A medical facility if the duty to file the claim for

compensation has been delegated to the medical facility pursuant

to this section.

Sec. 11. NRS 617.354 is hereby amended to read as follows:

617.354 1. Except as otherwise provided in NRS 616B.727,

within 6 working days after the receipt of a claim for compensation

from a physician or chiropractor, or a medical facility if the duty to

file the claim for compensation has been delegated to the medical

facility pursuant to NRS 617.352, an employer shall complete and

file with his insurer or third-party administrator an employer’s

report of industrial injury or occupational disease.

2. The report must:

(a) Be filed on a form prescribed by the Administrator;

(b) Be signed by the employer or his designee;

regulations of the Department; and

(d) Be accompanied by a statement of the wages of the

employee if the claim for compensation received from the treating

physician or chiropractor , or a medical facility if the duty to file

the claim for compensation has been delegated to the medical

facility pursuant to NRS 617.352, indicates that the employee is

expected to be off work for 5 days or more.

3. An employer who files the report required by subsection 1

by electronic transmission shall, upon request, mail to the insurer or

third-party administrator the form that contains the original

signature of the employer or his designee. The form must be mailed

within 7 days after receiving such a request.

4. The Administrator shall impose an administrative fine of not

more than $1,000 against an employer for each violation of this

section.

Sec. 12. 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

Account. The designation must be made pursuant to reasonable

competitive bidding procedures established by the Administrator.

2. Except as otherwise provided in this subsection, an

employee may receive compensation from the Uninsured

Employers’ Claim Account if:

(a) He was hired in this state or he is regularly employed in this

state;

(b) He contracts an occupational disease that arose out of and in

the course of employment:

(1) In this state; or

(2) While on temporary assignment outside the State for [a

period of] not more than 12 months;

(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.

An employee who contracts an occupational disease that arose out

of and in the course of employment while on temporary assignment

outside the State is not entitled to receive compensation from the

Uninsured Employers’ Claim Account unless he has been denied

workers’ compensation in the state in which the disease was

contracted.

3. If the Division receives a claim pursuant to subsection 2, the

Division shall immediately notify the employer of the claim.

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.

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 Account or incurred by the Division.

6. The Division:

(a) May recover from the employer the payments made by the

Division that are described in subsection 5 and any accrued interest

by bringing a civil action in [district court.] a court of competent

jurisdiction.

(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.

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.

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 third-party administrator or insurer

designated pursuant to subsection 1 for administration and payment

of compensation.

Upon determining whether the claim is accepted or denied, the

designated third-party administrator or insurer shall notify the

injured employee, the named employer and the Division of its

determination.

8. Upon demonstration of the:

(a) Costs incurred by the designated third-party administrator or

insurer to administer the claim or pay compensation to the injured

employee; or

(b) 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 Account.

9. Any party aggrieved by a determination [regarding the

administration of an assigned claim or a determination] made by the

Division [or by the designated third-party administrator or insurer]

regarding the assignment of any claim made pursuant to this

section may appeal that determination by filing a notice of appeal

with an appeals officer within [60] 30 days after the determination

is rendered . The provisions of NRS 616C.345 to 616C.385,

inclusive, apply to an appeal filed pursuant to this subsection.

10. Any party aggrieved by a determination to accept or to

deny any claim made pursuant to this section or by a

determination to pay or to deny the payment of compensation

regarding any claim made pursuant to this section may appeal that

determination, within 70 days after the 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.

10.] 11. 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.

[11.] 12. An uninsured employer is liable for the interest on

any amount paid on his claims from the Uninsured Employers’

Claim Account. 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 Account until payment is received by the Division from

the employer.

[12.] 13. Attorney’s fees recoverable by the Division pursuant

to this section must be:

(a) If a private attorney is retained by the Division, paid at the

usual and customary rate for that attorney.

(b) If the attorney is an employee of the Division, paid at the

rate established by regulations adopted by the Division.

Any money collected must be deposited to the Uninsured

Employers’ Claim Account.

[13.] 14. 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. 13. This act becomes effective on July 1, 2003.

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