[Rev. 2/12/2019 2:34:56 PM]
κ1995 Statutes of Nevada, Page 2001 (CHAPTER 580, AB 552)κ
(a) Adequate services to its insured employers in controlling losses; and
(b) Adequate information on the prevention of industrial accidents and occupational diseases.
Sec. 13. 1. Within 30 days after the insurer has been notified of an industrial accident, every insurer shall:
(a) Commence payment of a claim for compensation; or
(b) Deny the claim and notify the claimant and administrator that the claim has been denied.
Payments made by an insurer pursuant to this section are not an admission of liability for the claim or any portion of the claim.
2. If an insurer unreasonably delays or refuses to pay the claim within 30 days after the insurer has been notified of an industrial accident, the insurer shall pay upon order of the administrator an additional amount equal to three times the amount specified in the order as refused or unreasonably delayed. This payment is for the benefit of the claimant and must be paid to him with the compensation assessed pursuant to this chapter and chapter 617 of NRS.
Sec. 14. Before a private carrier may provide industrial insurance pursuant to this chapter and chapter 617 of NRS, the private carrier must be authorized by the commissioner pursuant to chapter 680A of NRS and maintain such security of the kind described in NRS 680A.120 and 680A.140 as may be required.
Sec. 15. 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 this chapter and chapter 617 of NRS and regulations adopted pursuant to those chapters; and
(d) If it contains a provision inconsistent with this chapter or chapter 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. 16. The claims of employees and their dependents resulting from injuries while in the employment of employers insured by a private carrier must be handled in the manner provided by this chapter, and the employer and the private carrier are subject to the regulations of the division with respect thereto.
Sec. 17. 1. Every policy of insurance issued pursuant to this chapter and chapter 617 of NRS must contain a provision for the requirements of subsection 5 and a provision that insolvency or bankruptcy of the employer or his estate, or discharge therein, or any default of the employer does not relieve the insurer from liability for compensation resulting from an injury otherwise covered under the policy issued by the insurer.
2. No statement in an employers application for a policy of industrial insurance voids the policy as between the insurer and employer unless the statement is false and would have materially affected the acceptance of the risk if known by the insurer, but in no case does the invalidation of a policy as between the insurer and employer affect the insurers obligation to provide compensation to claimants arising before the cancellation of the policy. If the insurer is required pursuant to this subsection to provide compensation under an invalid policy the insurer is subrogated to the claimants rights against the employer.
κ1995 Statutes of Nevada, Page 2002 (CHAPTER 580, AB 552)κ
an invalid policy the insurer is subrogated to the claimants rights against the employer.
3. If an insurer or employer intends to cancel or renew a policy of insurance issued by the insurer pursuant to this chapter and chapter 617 of NRS, the insurer or employer must give notice to that effect in writing to the administrator and to the other party fixing the date on which it is proposed that the cancellation or renewal becomes effective. The notices must comply with the provisions of NRS 687B.310 to 687B.355, inclusive, and must be served personally on or sent by first-class mail to the administrator and the other party. If the employer has secured insurance with another insurer which would cause double coverage, the cancellation must be made effective as of the effective date of the other insurance.
4. As between any claimant and the insurer, no defense based on any act or omission of the insured employer, if different from the insurer, may be raised by the insurer.
5. For the purposes of this chapter and chapter 617 of NRS, as between the employee and the insurer:
(a) Except as otherwise provided in section 13 of this act, notice or knowledge of the injury to or by the employer is notice or knowledge to or by the insurer;
(b) Jurisdiction over the employer is jurisdiction over the insurer; and
(c) The insurer is bound by and subject to any judgments, findings of fact, conclusions of law, awards, decrees, orders or decisions rendered against the employer in the same manner and to the same extent as the employer.
Sec. 18. The maximum amount paid to any one employee during the year shall be deemed to be $36,000 in determining the total amount paid to employees by each employer for services performed during a year.
Sec. 19. If a private carrier withdraws from providing industrial insurance in this state or its authorization to do so is withdrawn, it remains responsible for all compensation for injuries sustained during the period of coverage stated in its policies.
Sec. 20. A private carrier that provides industrial insurance for certain classes of risk outside this state shall provide insurance for all of those classes in this state. A private carrier that specializes in insurance for one or more classes of risk may limit its offering of industrial insurance to those classes in this state.
Sec. 21. 1. The administrator shall resolve any disputes between insurers if an injured employee claims benefits against more than one insurer.
2. The administrator shall adopt regulations concerning the resolution of disputes between insurers regarding benefits to be paid to any injured employee.
3. If the insurer or the employee is dissatisfied with the decision of the administrator, the dissatisfied party may request a hearing before an appeals officer.
4. Until the administrator has determined which insurer is responsible for a claim, the current insurer of the employer shall pay benefits to the claimant pursuant to this chapter and chapter 617 of NRS. Payments made by an insurer pursuant to this subsection are not an admission of liability for the claim or any portion of the claim.
κ1995 Statutes of Nevada, Page 2003 (CHAPTER 580, AB 552)κ
Sec. 22. 1. The commissioner shall suspend the authorization of a private carrier to provide industrial insurance for 1 year, if the commissioner finds that the private carrier has intentionally or repeatedly failed to comply with the provisions of this chapter, chapter 617 of NRS or the regulations of the division.
2. Before the commissioner suspends the authorization of a private carrier, he shall arrange an informal meeting with the private carrier to discuss and seek correction of any conduct which would be grounds for suspension.
3. Before the suspension of the authorization, the commissioner shall give written notice to the private carrier by certified mail that its authorization will be suspended within 10 days after it receives the notice unless, within that time, the private carrier corrects the conduct set forth in the notice as the reason for the withdrawal or submits a written request for a hearing to the commissioner.
4. If the private carrier requests a hearing:
(a) The commissioner shall set a date for a hearing within 20 days after receiving the notice of the appeal and shall give the private carrier at least 10 business days notice of the time and place of the hearing.
(b) A record of the hearing must be kept but it need not be transcribed unless requested by the private carrier. The cost of transcription must be charged to the private carrier.
5. Within 5 days after the hearing, the commissioner shall affirm or deny his order suspending the authorizing of the private carrier and notify the private carrier by certified mail of his decisions.
6. If the private carrier does not comply with the order of the commissioner during the period of suspension of the authorization, the commissioner shall file an order prohibiting the private carrier from issuing new policies until the order has expired. A copy of the order must be sent by certified mail to the private carrier.
Sec. 23. 1. An insurer shall provide to each claimant:
(a) Upon written request, one copy of any medical information concerning his injury or illness.
(b) A statement which contains information concerning the claimants right to:
(1) Receive the information and forms necessary to file a claim;
(2) Select a treating physician or chiropractor in accordance with the provisions of NRS 616.342;
(3) Request the appointment of the Nevada attorney for injured workers to represent him before the appeals officer;
(4) File a complaint with the administrator;
(5) When applicable, receive compensation for:
(I) Permanent total disability;
(II) Temporary total disability;
(III) Permanent partial disability;
(IV) Temporary partial disability; or
(V) All medical costs related to his injury or disease;
(6) Receive services for rehabilitation if his injury prevents him from returning to gainful employment;
κ1995 Statutes of Nevada, Page 2004 (CHAPTER 580, AB 552)κ
(7) Review by a hearing officer of any determination or rejection of a claim by the insurer within the time specified by statute; and
(8) Judicial review of any final decision within the time specified by statute.
2. The administrator shall adopt regulations for the manner of compliance by an insurer with the provisions of subsection 1.
Sec. 24. 1. The system and private carriers may provide industrial insurance for an organization or association of employers as a group if:
(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. 25. 1. Except as otherwise provided in subsection 2, when any premium of an employer insured by the system as provided in this chapter remains unpaid on the date on which it becomes due, as prescribed by NRS 616.400, it bears interest at the rate of 1 percent for each month or portion of a month thereafter until payment of the premium, plus accrued interest, is received by the manager.
2. The amount of a determination of a deficiency made pursuant to NRS 616.630 bears interest at the rate of 1 percent for each month or portion of a month from the date on which the determination becomes final until payment of the amount, plus accrued interest, is received by the manager.
Sec. 26. 1. At any time within 3 years after:
(a) Any premium or any amount of a premium required by this chapter becomes due;
(b) The delinquency of any premium or any amount of a premium required by this chapter or chapter 617 of NRS; or
(c) The recording of a certificate pursuant to section 32 of this act,
the manager or his authorized representative may bring an action in the courts of this state, or any other state, or of the United States, in the name of the system, to collect the amount delinquent together with penalties and interest.
2. In the action a writ of attachment may issue, and no bond or affidavit previous to the issuing of the attachment is required.
3. In the action, a certificate by the manager showing the delinquency is prima facie evidence of the determination of the premium due, of the delinquency of the amounts set forth, and of the compliance by the manager with all the provisions of this chapter in relation to the computation and determination of the amounts.
Sec. 27. 1. In the event of any distribution of any employers assets either voluntarily or pursuant to any order of any court under the laws of this state, the lien for premiums then due must be paid in full, before all other liens or claims except prior taxes and liens which have been recorded before the date on which the premiums became due.
κ1995 Statutes of Nevada, Page 2005 (CHAPTER 580, AB 552)κ
2. In the event of an employers adjudication in bankruptcy, judicially confirmed extension proposal, composition or other proceeding in bankruptcy, premiums then or thereafter due are entitled to the same priority as is afforded for taxes due to states.
Sec. 28. 1. Where a payment of premiums, penalties or interest has been erroneously collected, an employer may, not later than 3 years after the date on which such payments became due, make application for an adjustment for the amount erroneously collected in connection with subsequent premiums, penalties or interest payments or for a refund. All adjustments or refunds pursuant to this section will be made without interest. An adjustment or refund will not be made in any case with respect to premiums on wages which have been included in the determination of an eligible claim for benefits, unless it is shown to the satisfaction of the manager that the determination was due entirely to the fault or mistake of the manager or an authorized agent or employee of the system.
2. Refunds of interest and penalties collected pursuant to this chapter and paid into the state insurance fund must be made only from the state insurance fund.
Sec. 29. 1. Whenever the manager finds that the collection of any premium computed pursuant to the provisions of this chapter will be jeopardized by delay, he may immediately assess the premium and all penalties and interest which may have accrued, whether or not the final date otherwise prescribed for making the premium has arrived. Upon assessment, the premium is immediately due, the premium and all penalties and interest which may have accrued are immediately payable, and notice of demand for payment must be made upon the employer. If the employer fails or refuses to pay the assessed premium, penalties and interest, collection of the payment may be enforced according to the provisions of law applicable to the collection of unpaid premiums.
2. When a jeopardy assessment has been made as provided in subsection 1, the employer may stay its collection until such time as the premiums for the period in question would normally become due, by filing a bond with the manager which is executed by the employer as principal, and by an insurer authorized pursuant to chapter 680A of NRS as surety, payable to the system and conditioned on the payment of the premium at the proper time. The amount of the required security must be equal to the amount of the assessment, rounded off to the next larger integral multiple of $100.
3. In lieu of a bond, the employer may deposit with the manager a like amount of lawful money of the United States or any other form of security authorized by NRS 100.065. If security is provided in the form of a savings certificate, certificate of deposit or investment certificate, the certificate must state that the amount is not available for withdrawal except upon order of the manager.
Sec. 30. 1. Premiums, penalties and interest due and unpaid from any employer constitute a lien upon all of the assets of the employer, the lien to be prior to and paid in preference to all other liens or claims except prior recorded liens and prior taxes.
2. Within 3 years after a premium becomes delinquent, the manager may cause to be filed with the county recorder of the county in which the property is situated a notice of claim of lien setting forth a true statement of the amount due, after deducting all just credits and offsets, and the default of the employer.
κ1995 Statutes of Nevada, Page 2006 (CHAPTER 580, AB 552)κ
is situated a notice of claim of lien setting forth a true statement of the amount due, after deducting all just credits and offsets, and the default of the employer. Immediately after a notice of claim is filed, the manager shall cause a copy of the notice to be mailed to the employer. The county recorder shall file the notice of claim of lien, which file must be indexed.
3. The lien so created constitutes a lien upon all property, either real or personal, of the employer within the county in which the notice of claim of lien is filed.
4. The lien hereby created may be foreclosed by a suit in the district court in the manner provided by law for the foreclosure of other liens on real or personal property.
5. Any lien, as provided in this section, may be released, compromised or satisfied by the manager, and the property against which a lien is claimed may be released from the lien by filing a notice of release or satisfaction of the lien with the county recorder of the county in which the notice of claim of lien was filed.
Sec. 31. 1. As used in this section, person includes this state, and any county, municipality, district or other political subdivision thereof.
2. If any employer is delinquent in the payment of the amount of any premium, penalty or interest required by this chapter or a determination has been made against him which remains unpaid, the manager may, not later than 3 years after the payment became delinquent or within 6 years after the recording of a judgment pursuant to section 35 of this act, give notice of the amount of the delinquency personally or by registered or certified mail to any person having in his possession or under his control any money, credits or other personal property belonging to the delinquent employer, or owing any debts to the delinquent employer at the time of the receipt of the registered or certified notice. In the case of any state officer, department or agency, the notice must be given to the officer, department or agency before it presents the claim of the delinquent employer to the state controller.
3. A state officer, department or agency which receives such a notice may satisfy any debt owed to it by that person before it honors the managers notice.
4. After receiving the notice, a person so notified may not transfer or otherwise dispose of the money, credits, other personal property, or debts in his possession or under his control at the time he received the notice until the manager consents to a transfer or other disposition in writing, or until 30 days after the receipt of the notice, whichever period expires earlier.
5. A person so notified shall, within 5 days after receipt of the notice, inform the manager of all money, credits, other personal property, or debts belonging to the delinquent employer in his possession, under his control or owing by him.
6. If the notice seeks to prevent the transfer or other disposition of a deposit in a bank or other credits or personal property in the possession or under the control of a bank, the notice must be delivered or mailed to the branch or office of the bank at which the deposit is carried or at which the credits or personal property is held.
7. If, during the effective period of the notice to withhold, any person so notified makes any transfer or other disposition of the property or debts required to be withheld, to the extent of the value of the property or the amount of the debts thus transferred or paid, he is liable to the state for any indebtedness due pursuant to this chapter from the person with respect to whose obligation the notice was given if solely by reason of the transfer or other disposition the state is unable to recover the indebtedness of the person with respect to whose obligation the notice was given.
κ1995 Statutes of Nevada, Page 2007 (CHAPTER 580, AB 552)κ
required to be withheld, to the extent of the value of the property or the amount of the debts thus transferred or paid, he is liable to the state for any indebtedness due pursuant to this chapter from the person with respect to whose obligation the notice was given if solely by reason of the transfer or other disposition the state is unable to recover the indebtedness of the person with respect to whose obligation the notice was given.
8. Upon the demand of the manager, the person shall remit or deliver to the manager the money, credit or other personal property up to the amount owed by the delinquent employer.
Sec. 32. If any amount required to be paid to the system pursuant to the provisions of this chapter is not paid when due, the manager may, within 3 years after the amount is due, file in the office of the clerk of any court of competent jurisdiction a certificate specifying the amount required to be paid, interest and penalties due, the name and address of the employer liable for the payment as it appears on the records of the system, the managers compliance with the applicable provisions of this chapter in relation to the determination of the amount required to be paid, and a request that judgment be entered against the employer in the amount required to be paid, including interest and penalties, as set forth in the certificate.
Sec. 33. The county clerk immediately upon the filing of the certificate by the manager shall enter a judgment for the system against the employer in the amount required to be paid, together with interest and penalties as set forth in the certificate.
Sec. 34. Execution must issue upon the judgment upon the request of the manager in the same manner as execution may issue upon other judgments, and sales must be held under the execution as prescribed by law.
Sec. 35. 1. The manager may cause to be recorded an abstract or copy of the judgment against a delinquent employer in the office of the county recorder of any county.
2. From the time of its recordation, the judgment becomes a lien upon all real and personal property in such county owned by a delinquent employer at the time, or which it may afterward acquire, until the lien expires. The lien has the force, effect and priority of a judgment lien and continues for 5 years after the date of the judgment so entered by the county clerk unless released sooner or otherwise discharged.
3. The manager may cause to be extended a lien, within 5 years after the date of the judgment or within 5 years after the last extension of the lien in the manner herein provided, by recording in the office of the county recorder an abstract or copy of the judgment, and from the time of such recording, the lien is extended upon the property in such county for 5 years unless sooner released or otherwise discharged.
Sec. 36. Except as otherwise provided in NRS 616.632:
1. If any business which is liable for any amount required to be paid pursuant to this chapter sells out its business, or any portion of its business, or stock of goods, or quits the business, its successors or assigns shall withhold a sufficient portion of the purchase price to cover that amount until the former owner produces a receipt from the manager showing that it has been paid or a certificate stating that so amount is due.
κ1995 Statutes of Nevada, Page 2008 (CHAPTER 580, AB 552)κ
2. If the purchaser of a business, or any portion of a business, or stock of goods fails to withhold from the purchase price the amount required by subsection 1, he becomes personally liable for the payment of the amount required to be withheld by him to the extent of the purchase price, valued in money. Within 60 days after receiving a written request from the purchaser for a certificate, or within 60 days after the date the former owners records are made available for audit, whichever period expires later, but not later than 90 days after receiving the request, the manager shall issue the certificate or mail a notice to the purchaser at his address as it appears on the records of the manager, of the amount that must be paid as a condition of issuing the certificate.
3. Failure of the manager to mail the notice releases the purchaser from any further obligation to withhold any portion of the purchase price.
4. The time within which the obligation of a successor may be enforced begins at the time the person or business sells out its business or stock of goods or at the time that the determination against the person or business becomes final, whichever occurs later.
Sec. 37. NRS 616.015 is hereby amended to read as follows:
616.015 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 616.020 to 616.123, inclusive, and sections 3 to 6, inclusive, of this act, have the meanings ascribed to them in those sections.
Sec. 38. NRS 616.067 is hereby amended to read as follows:
616.067 Persons who perform volunteer work in any formal program which is being conducted:
1. Within a state or local public organization;
2. By a federally assisted organization; or
3. By a private, incorporated, nonprofit organization which provides services to the general community,
and who are not specifically covered by any other provisions of this chapter, while engaged in such volunteer work, may be deemed by [the system, or by a self-insured employer or an employer who is a member of an association of self-insured public or private employers,] an insurer, for the purposes of this chapter, as employees of that organization at a wage of $100 per month. Such persons are entitled to the benefits of this chapter when the organization approves coverage and complies with the provisions of this chapter and regulations adopted pursuant to it.
Sec. 39. NRS 616.068 is hereby amended to read as follows:
616.068 Persons other than students who, under a written agreement between a public agency and a private organization, perform volunteer work for a private organization as part of a public program and who are not specifically covered by any other provisions of this chapter, while engaging in that volunteer work, may be deemed by [the system, or by a self-insured employer or an employer who is a member of an association of self-insured public or private employers,] an insurer, for the purposes of this chapter, as employees of the public agency at a wage of $100 per month. Such persons are entitled to the benefits of this chapter when the public agency complies with the provisions of this chapter and the regulations adopted [under] pursuant to it.
κ1995 Statutes of Nevada, Page 2009 (CHAPTER 580, AB 552)κ
Sec. 40. NRS 616.079 is hereby amended to read as follows:
616.079 [1.] Members of state, county and local departments, boards, commissions, agencies or bureaus, whether elected or appointed, who serve without compensation or who receive less than $250 per month compensation, the members of the state board of education, adjunct professors of the University and Community College System of Nevada and the members of the board of regents of the University of Nevada, while engaged in their designated duties as [such] members and adjunct professors, shall be deemed, for the purpose of this chapter, employees receiving a wage of $250 per month and, in the event of injury while performing their designated duties, are entitled to the benefits of this chapter.
[2. For the fiscal year commencing July 1, 1961, and for each fiscal year thereafter, each such state, county and local department, board, commission, agency or bureau and the state department of education and the board of regents of the University of Nevada shall budget for the premiums required by this chapter in the same manner as for other expenditures and shall pay those premiums out of money appropriated therefor in the manner provided in NRS 616.405 to the extent that those provisions are applicable.]
Sec. 41. NRS 616.1103 is hereby amended to read as follows:
616.1103 Insurer includes:
1. The state industrial insurance system;
2. A self-insured employer;
3. An association of self-insured public employers; [and]
4. An association of self-insured private employers [.] ; and
5. A private carrier.
Sec. 42. NRS 616.1114 is hereby amended to read as follows:
616.1114 Organization for managed care means any person who:
1. Provides or arranges for the provision of medical and health care services;
2. Establishes objectives, standards and protocols for such services;
3. Organizes providers of health care to ensure the availability and accessibility of such services; and
4. Establishes a system that allows for the submission of reports to [the manager or a self-insured employer] an insurer that are necessary to evaluate the effectiveness and cost of delivering medical and health care services to injured employees.
Sec. 43. NRS 616.112 is hereby amended to read as follows:
616.112 Self-insured employer means any employer who possesses a certification from the commissioner of insurance that he has the capability to assume the responsibility for the payment of compensation [under] pursuant to this chapter [or] and chapter 617 of NRS.
Sec. 44. NRS 616.1701 is hereby amended to read as follows:
616.1701 1. The state industrial insurance system is hereby established as an independent actuarially funded system [for the purpose of insuring] to insure employers against liability for injuries and occupational diseases for which their employees may be entitled to [benefits under] receive compensation pursuant to this chapter or chapter 617 of NRS, and the federal Longshoremens and Harbor Workers Compensation Act.
κ1995 Statutes of Nevada, Page 2010 (CHAPTER 580, AB 552)κ
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 . [, and shall use the services of the purchasing division of the department of administration. The system is not required to use the services provided by any other state agency.] Except as otherwise provided for specified positions, its employees are in the classified service of the state.
4. The official correspondence and records, including financial records, other than the files of individual claimants and policyholders, and the minutes and books of the system are public records and must be available for public inspection.
Secs. 45-52. (Deleted by amendment.)
Sec. 53. NRS 616.182 is hereby amended to read as follows:
616.182 1. Except as otherwise provided in this section, the division shall [regulate insurers under] :
(a) Certify or authorize whether an insurer meets the requirements of this chapter and chapter 617 of NRS to provide industrial insurance;
(b) Regulate insurers pursuant to this chapter and chapter 617 of NRS [and investigate] ;
(c) Investigate insurers regarding compliance with statutes and the divisions regulations [.] ; and
(d) If necessary, suspend the certification or authorization of an insurer to provide industrial insurance.
2. The commissioner is responsible for reviewing rates, investigating the solvency of insurers , authorizing private carriers pursuant to chapter 680A of NRS and certifying [self-insured employers, associations of self-insured public or private employers and third-party administrators] :
(a) Self-insured employers pursuant to NRS 616.291 to 616.298, inclusive, and 616.338 [,] ;
(b) Associations of self-insured public or private employers pursuant to NRS 616.3791 to 616.37997, inclusive [,] ; and
(c) Third-party administrators pursuant to chapter 683A of NRS.
3. The department of administration is responsible for contested claims relating to [workers compensation] industrial insurance pursuant to NRS 616.5395 to 616.544, inclusive. The [system] administrator is responsible for administrative appeals pursuant to NRS 616.392.
4. The Nevada attorney for injured workers is responsible for legal representation of claimants pursuant to NRS 616.253 to 616.2539, inclusive.
5. The division is responsible for the investigation of complaints. If a complaint is filed with the division by an employee of [a] :
(a) A self-insured employer [or of an] ;
(b) An employer who is a member of an association of self-insured public or private employers [,] ;
(c) An employer insured by the system; or
(d) An employer insured by a private carrier,
or by a third-party administrator or provider of medical care regarding compliance with statutes or the divisions regulations, the administrator shall cause to be conducted an investigation which includes a review of relevant records and interviews of affected persons.
κ1995 Statutes of Nevada, Page 2011 (CHAPTER 580, AB 552)κ
cause to be conducted an investigation which includes a review of relevant records and interviews of affected persons.
6. If an investigation conducted pursuant to subsection 5 indicates that a self-insured employer , [or] an association of self-insured public or private employers , the system or a private carrier has failed to comply with a statute or regulation, the administrator may order that an evidentiary hearing take place. Upon a finding that intentional or repeated noncompliance has occurred, the administrator shall impose an administrative fine of not more than $250 for each initial noncompliance which was not intentional, or a fine of not more than $1,000 for each intentional or repeated noncompliance. Two or more findings of material noncompliance within a 12-month period constitute grounds for the suspension of the certification of a self-insured [employers or associations certification] employer or association or the authorization of a private carrier by the commissioner.
Sec. 54. NRS 616.192 is hereby amended to read as follows:
616.192 1. Except as otherwise provided in this section and in NRS 616.193 and 616.550, information obtained from any employer or employee is confidential and may not be disclosed or be open to public inspection in any manner which would reveal the persons 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] pursuant to this chapter.
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 [manager] administrator may, by regulation, prescribe the manner in which otherwise confidential information may be made available to:
(a) Any agency of this or any other state charged with the administration or enforcement of [workers compensation law,] laws relating to industrial insurance, unemployment compensation , [law,] public assistance [law] or labor [law;] and industrial relations;
(b) Any state or local agency for the enforcement of child support;
(c) The Internal Revenue Service of the Department of the Treasury;
(d) The department of taxation; and
(e) The state contractors board in the performance of its duties to enforce the provisions of chapter 624 of NRS.
Information obtained in connection with the administration of a [workers compensation] program of industrial insurance may be made available to persons or agencies for purposes appropriate to the operation of a [workers compensation program.] program of industrial insurance.
4. To further a current criminal investigation, the chief executive officer of any law enforcement agency of this state may submit a written request to the [manager] administrator that he furnish from the records of the insurer, the name, address and place of employment of any person listed in the records of the insurer. The request must set forth the social security number of the person about whom the request is made and contain a statement signed by the chief executive officer certifying that the request is made to further a criminal investigation currently being conducted by the agency. Upon receipt of a request, the [manager] administrator shall furnish the information requested.
κ1995 Statutes of Nevada, Page 2012 (CHAPTER 580, AB 552)κ
requested. He may charge a reasonable fee to cover any related administrative expenses.
5. The [manager] administrator shall provide lists containing the names and addresses of employers, the number of employees employed by each employer and the total wages paid by each employer to the department of taxation, upon request, for its use in verifying returns for the business tax. The [manager] administrator may charge a reasonable fee to cover any related administrative expenses.
6. If the [manager or] administrator, any employee of the [manager,] division or the commissioner in violation of this section, discloses information obtained from files of claimants or policyholders, or if any person who has obtained a list of claimants or policyholders under this chapter uses or permits the use of the list for any political purposes, he is guilty of a gross misdemeanor.
7. 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 this chapter.
Sec. 55. NRS 616.1925 is hereby amended to read as follows:
616.1925 1. The administrator shall establish a method of indexing claims for compensation that will make information concerning the claimants of one insurer available to other insurers.
2. Every [self-insured employer, association of self-insured public or private employers and the system] insurer shall provide information as required by the administrator for establishing and maintaining the index of claims.
3. If an employee files a claim with an insurer, the insurer is entitled to receive from the administrator a list of the prior claims of the employee. If the insurer desires to inspect the files related to the prior claims, he must obtain the written consent of the employee.
4. Any information obtained from the index of claims must be admitted into evidence in any hearing before an appeals officer, a hearing officer or the administrator.
5. The division may assess and collect a reasonable fee for its services provided pursuant to this section. The fee must be payable monthly or at such other intervals as determined by the administrator.
Sec. 56. NRS 616.193 is hereby amended to read as follows:
616.193 1. [The insurer must] An insurer shall provide access to the files of claims in its offices.
2. A file is available for inspection during regular business hours by the employee or his designated agent, the employer or his designated agent and the administrator or his designated agent.
3. Upon request, the insurer [must] shall make copies of anything in the file and may charge a reasonable fee for this service. Copies of materials in the file which are requested by the administrator or his designated agent, or the Nevada attorney for injured workers or his designated agent must be provided free of charge.
4. Until a claim is closed the file must be kept in the office nearest to the place where the injury occurred.
κ1995 Statutes of Nevada, Page 2013 (CHAPTER 580, AB 552)κ
5. If a claim has been closed for at least 1 year, the insurer may microphotograph or film any of its records relating to that claim. The microphotographs or films must be placed in convenient and accessible files . [, and provision must be made for preserving, examining and using the records.
6. Nothing in this section requires the]
6. The administrator shall adopt regulations concerning the:
(a) Maintenance of records in a file on current or closed claims;
(b) Preservation, examination and use of records which have been microphotographed or filmed by an insurer; and
(c) Location of a file on a closed claim.
7. This section does not require an insurer to allow inspection or reproduction of material regarding which a legal privilege against disclosure has been conferred.
Sec. 57. (Deleted by amendment.)
Sec. 58. NRS 616.220 is hereby amended to read as follows:
616.220 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. [Provide by regulation for adequate notice to each claimant and employer of his right:
(a) To the resolution of a contested claim in the manner provided in NRS 616.5395.
(b) To a hearing in the manner provided in NRS 616.5412 to 616.544, inclusive.
(c) To judicial review of any final decision.
5.] 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.
[6.] 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 this chapter or chapter 617 of NRS or to obtain information useful to enforce or administer these chapters.
κ1995 Statutes of Nevada, Page 2014 (CHAPTER 580, AB 552)κ
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 this chapter and chapter 617 of NRS.
Sec. 59. NRS 616.2233 is hereby amended to read as follows:
616.2233 [The system] Each insurer shall cooperate with the commissioner in the performance of his duties pursuant to this chapter . [, and] Each private carrier and the system shall provide the commissioner with any information, statistics or data in its records which pertain to any employer who is making an application to become self-insured or who is self-insured, or who is becoming or who is a member of an association of self-insured public or private employers.
Sec. 60. NRS 616.2235 is hereby amended to read as follows:
616.2235 1. Except as otherwise provided in subsection 2, each self-insured employer , [and] association of self-insured public or private employers and private carrier shall compensate the system, the office of the Nevada attorney for injured workers or the hearings division of the department of administration, as appropriate, for all services which the system, the occupational safety and health review board, the Nevada attorney for injured workers, the mediators and the appeals officers provide to those employers if the rate is established by a regulation of the system. The cost of any service for which a rate is not established by regulation must be negotiated by the employer , [or] association or private carrier and the system, the Nevada attorney for injured workers or the division, as appropriate, before the employer , [or] association or private carrier is charged for the service.
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. 61. NRS 616.228 is hereby amended to read as follows:
616.228 1. Any disciplinary action taken by a hearing officer or panel pursuant to NRS 616.425 is subject to the same procedural requirements which apply to disciplinary actions taken by the commissioner or administrator, and the board or panel has the same powers and duties given to the commissioner or administrator in relation thereto.
2. A decision of the hearing officer or panel relating to the imposition of an administrative fine is a final decision in a contested case. Any party aggrieved by a decision of the officer or panel to withdraw the certification of a self-insured employer or an association of self-insured public or private employers or the authorization of a private carrier may appeal that decision to the commissioner.
Sec. 62. NRS 616.2545 is hereby amended to read as follows:
616.2545 1. For the purposes of this chapter and chapters 364A, 612 and 617 of NRS, an employee leasing company which complies with the provisions of NRS 616.254 to 616.2547, inclusive, shall be deemed to be the employer of the employees it leases to a client company.
2. An employee leasing company shall be deemed to be the employer of its leased employees for the purposes of sponsoring and maintaining any benefit plans.
κ1995 Statutes of Nevada, Page 2015 (CHAPTER 580, AB 552)κ
3. An employee leasing company may not offer its employees any self-funded insurance program. An employee leasing company may not act as a self-insured employer or be a member of an association of self-insured public or private employers pursuant to this chapter or chapter 617 of NRS or pursuant to Title 57 of NRS.
4. If an employee leasing company fails to:
(a) Pay any contributions, premiums, forfeits or interest due; or
(b) Submit any reports or other information required,
pursuant to this chapter or chapter 612 or 617 of NRS, the client company is jointly and severally liable for the contributions, premiums, forfeits or interest attributable to the wages of the employees leased to it by the employee leasing company.
Sec. 63. NRS 616.260 is hereby amended to read as follows:
616.260 1. Except as limited in subsection 3, any employee who has been hired outside of this state and his employer are exempted from the provisions of this chapter while the employee is temporarily within this state doing work for his employer if his employer has furnished industrial insurance [coverage under] pursuant to the industrial insurance act or similar laws of a state other than Nevada so as to cover the employees employment while in this state, [provided:] if:
(a) The extraterritorial provisions of this chapter are recognized in the other state; and
(b) Employers and employees who are covered in this state are likewise exempted from the application of the industrial insurance act or similar laws of the other state.
The benefits [under] provided in the industrial insurance act or similar laws of the other state are the exclusive remedy against the employer for any injury, whether resulting in death or not, received by the employee while working for the employer in this state.
2. A certificate from the administrator or similar officer of another state certifying that the employer of the other state is insured therein and has provided extraterritorial coverage insuring his employees while working within this state is prima facie evidence that the employer carried the industrial insurance.
3. The exemption provided for in this section does not apply to the employees of a contractor, as defined in NRS 624.020, operating within scope of his license.
4. An employer is not required to [pay premiums to the system] maintain coverage for industrial insurance in this state for an employee who has been hired or is regularly employed in this state, but who is performing work exclusively in another state, if the other state requires the employer to provide coverage for the employee in the other state. If the employee receives personal injury by accident arising out of and in the course of his employment, any claim for compensation must be filed in the state in which the accident occurred, and such compensation is the exclusive remedy of the employee or his dependents. This subsection does not prevent an employer from maintaining coverage for the employee [under] pursuant to the provisions of this chapter.
κ1995 Statutes of Nevada, Page 2016 (CHAPTER 580, AB 552)κ
Sec. 64. NRS 616.270 is hereby amended to read as follows:
616.270 1. Every employer within the provisions of this chapter, and those employers who [shall] accept the terms of this chapter and [be] are governed by its provisions, [as in this chapter provided,] shall provide and secure compensation according to the terms, conditions and provisions of this chapter for any [and all] personal injuries by accident sustained by an employee arising out of and in the course of the employment.
2. Travel for which an employee receives wages shall, for the purposes of this chapter, be deemed in the course of employment.
3. In such cases the employer [shall be] or any insurer of the employer is relieved from other liability for recovery of damages or other compensation for [such personal injury,] those personal injuries unless otherwise provided by the terms of this chapter . [otherwise provided.]
Sec. 65. NRS 616.275 is hereby amended to read as follows:
616.275 Where the state [, county, municipal corporation,] or a county, city, school district, [a] metropolitan police department, [a city under special charter and commission form of government,] or other political subdivision, or a contractor under such a governmental [entities,] entity is the employer, the provisions of this chapter for the payment of compensation and the amount thereof [, and, unless the employer is self-insured or a member of an association of self-insured public employers, for the payment of premiums to the state insurance fund and the accident benefit fund,] for any injury sustained by an employee are conclusive, compulsory and obligatory upon both employer and employee without regard to the number of persons in the service of any such employer.
Sec. 66. NRS 616.277 is hereby amended to read as follows:
616.277 1. In case of injury, coverage by industrial insurance must be provided for [rehabilitation] trainees while enrolled in a rehabilitation facility operated by the rehabilitation division of the department of employment, training and rehabilitation, related to evaluation, treatment, training, surgical apparatuses or medications.
2. The director of the department of employment, training and rehabilitation shall make payments to the [system] insurer on all trainees enrolled in a rehabilitation facility operated by the rehabilitation division of the department of employment, training and rehabilitation in this state at the rate [set by the system] approved by the commissioner and based on a wage of $200 per month per trainee.
3. Payments must be made from the account for rehabilitation facilities of the rehabilitation division [.] of the department of employment, training and rehabilitation.
Sec. 67. NRS 616.279 is hereby amended to read as follows:
616.279 1. If a quasi-public or private corporation is required to be insured [under] pursuant to this chapter, an officer of the corporation who:
(a) Receives pay for service performed shall be deemed for the purposes of this chapter to receive a minimum pay of $6,000 per calendar year and a maximum pay of $36,000 per calendar year.
(b) Does not receive pay for services performed shall be deemed for the purposes of this chapter to receive a minimum pay of $500 per month or $6,000 per calendar year.
κ1995 Statutes of Nevada, Page 2017 (CHAPTER 580, AB 552)κ
2. An officer who does not receive pay for services performed may elect to reject coverage by filing written notice thereof with the corporation and the [system.] insurer. The rejection is effective upon receipt of the notice by the [system.] insurer.
3. An officer who has rejected coverage may rescind that rejection by filing written notice thereof with the corporation and the [system.] insurer. The rescission is effective upon receipt of the notice by the [system.] insurer.
4. A nonprofit corporation whose officers do not receive pay for services performed may elect to reject coverage for their current officers and all future officers who do not receive pay by filing written notice thereof with the corporation and the [system.] insurer. The rejection is effective upon receipt of the notice by the [system.] insurer.
5. A nonprofit corporation which has rejected coverage for its officers who do not receive pay may rescind that rejection by filing written notice thereof with the corporation and the [system.] insurer. The rescission is effective upon receipt of the notice by the [system.] insurer.
Sec. 68. NRS 616.282 is hereby amended to read as follows:
616.282 1. [The manager] An insurer of a contractor shall notify the state contractors board within 10 days after the [system becomes aware that a] contractors coverage has lapsed. Upon receipt of such notification, the administrator shall notify the state contractors board of the lapse in coverage.
2. The commissioner shall notify the state contractors board within 10 days after a contractors certificate of qualification as a self-insured employer is canceled or withdrawn or he is no longer a member of an association of self-insured public or private employers.
Sec. 69. NRS 616.285 is hereby amended to read as follows:
616.285 Where an employer has in his service any employee under a contract of hire, except as otherwise expressly provided in this chapter, the terms, conditions and provisions of this chapter [for the payment of premiums to the state insurance fund for the payment of compensation and the amount thereof for such injury sustained by an employee of such employer, shall be] are conclusive, compulsory and obligatory upon both employer and employee.
Sec. 70. NRS 616.288 is hereby amended to read as follows:
616.288 1. To determine his obligation to pay premiums for industrial insurance on behalf of his subcontractors and independent contractors and their employees, a principal contractor or owner of property acting as a principal contractor may request the [system] appropriate insurer to:
(a) Provide him with a statement certifying whether:
(1) Each of the subcontractors and independent contractors working in his project is insured ; [by the system;] and
(2) Each sole proprietor who is a subcontractor or independent contractor has elected coverage for himself [under] pursuant to chapters 616 and 617 of NRS.
(b) During the course of the project, notify him whenever any of the subcontractors or independent contractors fail to pay premiums [to the system] or otherwise maintain industrial insurance.
κ1995 Statutes of Nevada, Page 2018 (CHAPTER 580, AB 552)κ
2. Upon completion of the project, the principal contractor or owner may request the [system] insurer to certify that each subcontractor or independent contractor who was previously reported by the [system] insurer as having coverage for industrial insurance has maintained it by paying all premiums due throughout the entire course of the project. The [system] insurer shall, within 60 days after receiving such a request, issue:
(a) A final certificate which states that each such subcontractor and independent contractor has paid in full all premiums due for the project and that the principal contractor or owner is relieved of all liability for payment of any additional premiums related to the particular project; or
(b) A letter denying the issuance of a final certificate related to the project. Such a letter may be issued if a subcontractor or independent contractor:
(1) Is delinquent in the payment of premiums due [to the system] on the project;
(2) Has left the state;
(3) Is uncooperative in [the systems] a required audit of his records;
(4) Is principally located out of state and an audit is required;
(5) Is delinquent in his submission [to the system] of his records relating to his payroll;
(6) Has closed his account with the [system] insurer and premiums are due;
(7) Has failed to submit required information to the [system;] insurer;
(8) Is protesting the results of [the systems] a required audit;
(9) Elected not to insure himself ; [with the system;] or
(10) Has committed any other action which, in the opinion of the [system,] insurer, may result in his failure to pay all premiums due.
3. If the [system] insurer does not issue a final certificate or letter denying the issuance of the certificate within 60 days after receiving a request therefor, a final certificate shall be deemed to have been issued.
Sec. 71. NRS 616.294 is hereby amended to read as follows:
616.294 1. The commissioner shall impose an administrative fine, not to exceed $1,000 for each violation, and:
(a) Shall withdraw the certification of a self-insured employer if:
(1) The deposit required pursuant to NRS 616.291 is not sufficient and the employer fails to increase the deposit after he has been ordered to do so by the commissioner;
(2) The self-insured employer fails to provide evidence of excess insurance pursuant to NRS 616.291 within 45 days after he has been so ordered; or
(3) The employer becomes insolvent, institutes any voluntary proceeding under the Bankruptcy Act or is named in any involuntary proceeding thereunder.
(b) May withdraw the certification of a self-insured employer if:
(1) The employer intentionally fails to comply with regulations of the commissioner regarding reports or other requirements necessary to carry out the purposes of this chapter;
(2) The employer violates the provisions of subsection 2 of NRS 616.299 or any regulation adopted by the commissioner or the administrator concerning the administration of the employers plan of self-insurance; or
κ1995 Statutes of Nevada, Page 2019 (CHAPTER 580, AB 552)κ
(3) The employer makes a general or special assignment for the benefit of creditors or fails to pay compensation after an order for payment of any claim becomes final.
2. Any employer whose certification as a self-insured employer is withdrawn must, on the effective date of the withdrawal, qualify as an employer pursuant to NRS 616.305.
3. The commissioner may, upon the written request of an employer whose certification as a self-insured employer is withdrawn pursuant to subparagraph (3) of paragraph (a) of subsection 1, reinstate the employers certificate for a reasonable period to allow the [system] employer sufficient time to provide industrial insurance for [the employer.] its employees.
Sec. 72. NRS 616.297 is hereby amended to read as follows:
616.297 A self-insured employer , [or] an association of self-insured public or private employers or a private carrier may:
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 [under] pursuant to this chapter and chapter 617 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 [under] pursuant to this chapter and chapter 617 of NRS.
3. Use the services of an organization for managed care that has entered into a contract with the manager pursuant to NRS 616.2211, 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 , [or] association or private carrier has contracted pursuant to subsections 1 and 2, or as the self-insured employer , [or] association or private carrier otherwise prescribes.
5. Require employees to obtain the approval of the self-insured employer , [or the] 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 [or the association.] , association or private carrier.
Sec. 73. NRS 616.305 is hereby amended to read as follows:
616.305 1. Where the employer, as provided [by] in this chapter, has given notice of an election to accept the terms of this chapter, and the employee has not given notice of an election to reject the terms of this chapter, the employer shall provide and secure, and the employee shall accept, compensation in the manner provided [by] in this chapter for all personal injuries sustained arising out of and in the course of the employment.
2. Every employer electing to be governed by the provisions of this chapter, before becoming entitled to receive the benefits of this chapter, must comply with all conditions and provisions of this chapter during the period of his election.
κ1995 Statutes of Nevada, Page 2020 (CHAPTER 580, AB 552)κ
comply with all conditions and provisions of this chapter during the period of his election.
3. Failure on the part of any employer to [pay all the premiums, to maintain a certificate of self-insurance in force or to maintain membership in an association of self-insured public or private employers] provide industrial insurance as required by the provisions of this chapter operates as a rejection of the terms of this chapter. [In the event of any rejection of] If an employer rejects this chapter, or any of its terms, the [terms hereof, the rejecting] employer shall post a notice of rejection of the terms of the chapter upon his premises in a conspicuous place. The employer at all times shall maintain the notice or notices so provided for the information of his employees.
Sec. 74. NRS 616.310 is hereby amended to read as follows:
616.310 1. A lessee engaged in either mining or operating a reduction plant whose employer is within the provisions of this chapter, must be reported by the employer [separate and apart from those] separately from persons employed at a daily wage, and the report must describe briefly:
(a) The agreement under which the work is to be performed;
(b) The aggregate number of shifts worked during the preceding month; and
(c) The total amount earned by [such employees,] lessees, computed on the average daily wages of workmen engaged in like work in the same locality.
Otherwise the payroll reports and premium payments on earnings of [employees] lessees described in this section are governed by the requirements of this chapter regarding employees engaged at a regular wage.
2. If such a lessee files with the [system] administrator and the insurer an acceptance of the provisions of this chapter and , if applicable, pays the premiums in advance upon the estimated earnings of himself and any workmen he may employ, the lessor is relieved of this obligation.
Sec. 75. NRS 616.315 is hereby amended to read as follows:
616.315 1. An employer in this state having in his employment any employee excluded from the benefits of this chapter [under] pursuant to NRS 616.060 may elect to cover such employees under the provisions of this chapter in the manner provided in this section.
2. The election on the part of the employer must be made by filing with the [system, or with the administrator if he is a self-insured employer or a member of an association of self-insured public or private employers,] administrator and the insurer a written statement that he accepts the provisions of this chapter which, when filed, operates to subject him to the provisions of this chapter until the employer files [in the office of the system, or of the administrator if he is a self-insured employer or a member of an association of self-insured public or private employers,] with the administrator and the insurer a notice in writing that he withdraws his election.
3. An employee in the service of any such employer shall be deemed to have accepted, and is subject to, the provisions of this chapter if, at the time of the accident for which compensation is claimed:
(a) The employer charged with liability is subject to the provisions of this chapter, whether or not the employee has actual notice thereof; and
κ1995 Statutes of Nevada, Page 2021 (CHAPTER 580, AB 552)κ
(b) The employee has not given to his employer and to the [system] administrator and the insurer notice in writing that he elects to reject the provisions of this chapter.
4. An employee who has rejected the provisions of this chapter may at any time thereafter elect to waive the rejection by giving notice in writing to his employer and to the [system] administrator and the insurer which becomes effective when filed with the [system.] administrator and the insurer.
Sec. 76. NRS 616.317 is hereby amended to read as follows:
616.317 1. A sole proprietor may elect to be included within the terms, conditions and provisions of this chapter [for the purpose of personally securing] to secure for himself compensation equivalent to that to which an employee is entitled for any accidental injury sustained by the sole proprietor which arises out of and in the course of his self-employment by filing a written notice of election with the administrator and the system [.] or a private carrier.
2. A sole proprietor who elects to accept the terms, conditions and provisions of this chapter 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 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 [system.] commissioner.
4. If a sole proprietor fails to pay all premiums required by the regulations of the [system,] commissioner, the failure operates as a rejection of this chapter.
5. A sole proprietor who elects to be included [under] pursuant to the provisions of this chapter remains subject to all terms, conditions and provisions of this chapter and all regulations of the [system] commissioner until he files written notice with the administrator and the system or the private carrier that he withdraws his election.
6. For purposes of this chapter, 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. 77. NRS 616.320 is hereby amended to read as follows:
616.320 An employer having come under this chapter who thereafter elects to reject the terms, conditions and provisions of this chapter is not relieved from the payment of premiums to the [system] insurer before the time his notice of rejection becomes effective if any are due. The premiums may be recovered in an action at law.
Sec. 78. NRS 616.325 is hereby amended to read as follows:
616.325 1. [Except as otherwise provided in subsection 2, every] Every employer insured by the system shall furnish the system or the administrator, upon request, all information required to carry out the purposes of this chapter.
κ1995 Statutes of Nevada, Page 2022 (CHAPTER 580, AB 552)κ
upon request, all information required to carry out the purposes of this chapter. The administrator, or any person employed by the administrator for that purpose, may examine, under oath, any employer or officer, agent or employee thereof.
2. Every self-insured employer , [or] association of self-insured public or private employers or private carrier shall furnish to the [system or the] administrator, upon request, all information required to carry out the purposes of this chapter. The administrator or any person employed by him for that purpose, may examine, under oath, any employer or officer, agent or employee thereof.
3. Every insured employer shall keep on hand constantly a sufficient supply of blank forms furnished by the insurer.
Sec. 79. NRS 616.330 is hereby amended to read as follows:
616.330 1. Every employer receiving from the [system] insurer or administrator any blank form with directions to fill it out shall:
(a) Cause it to be filled out properly.
(b) Answer fully and correctly all questions therein propounded, and if unable to do so, shall give [good and] sufficient reasons for his failure. Answers to questions must be verified and returned to the [system] insurer or administrator , as appropriate, within 6 working days.
2. If an employer fails to comply with the provisions of subsection 1, the administrator shall impose a fine of not more than $1,000 for each failure to comply.
Sec. 80. NRS 616.335 is hereby amended to read as follows:
616.335 1. The books, records and payrolls of [the employer pertinent to the administration of this chapter must always] an employer insured by the system must be open to inspection by the administrator, the system or its auditor [, agent or assistant,] or agent or by auditors of the department of taxation [for the purpose of ascertaining the correctness of the payroll, the men employed, and such] to determine:
(a) The accuracy of the payroll;
(b) The number of persons employed; and
(c) Any other information [as may be] necessary for the [system and its administration.] administration of this chapter and chapter 617 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.
Sec. 81. NRS 616.337 is hereby amended to read as follows:
616.337 1. All [self-insured employers and associations of self-insured public or private employers] insurers shall report to the administrator, annually or at intervals which the administrator requires, all accidental injuries, occupational diseases, dispositions of claims [, reserves] and payments made [under] pursuant to this chapter, chapter 617 of NRS or regulations adopted by the division pursuant thereto.
2. Each self-insured employer and association of self-insured public or private employers shall report its reserves to the administrator in the manner prescribed in subsection 1.
κ1995 Statutes of Nevada, Page 2023 (CHAPTER 580, AB 552)κ
Sec. 82. NRS 616.355 is hereby amended to read as follows:
616.355 1. Any physician or chiropractor who attends an employee within the provisions of this chapter or chapter 617 of NRS in a professional capacity, may be required to testify before an appeals officer. A physician or chiropractor who testifies is entitled to receive the same fees as witnesses in civil cases and, if the appeals officer so orders at his own discretion, a fee equal to that authorized for a consultation by the appropriate schedule of fees for physicians or chiropractors. These fees must be paid by the [system, the self-insured employer or the association of self-insured public or private employers.] insurer.
2. Information gained by the attending physician or chiropractor while in attendance on the injured employee is not a privileged communication if required by an appeals officer for a proper understanding of the case and a determination of the rights involved.
Sec. 83. NRS 616.37935 is hereby amended to read as follows:
616.37935 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 616.37915.
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. A member of an association may terminate his membership at any time.
4. The members of an association may cancel the membership of any member of the association in accordance with the bylaws of the association.
5. 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) [Provided and secured compensation according to the terms, conditions and provisions of this chapter for any injury sustained by an employee arising out of and in the course of his employment;] Become insured by the system;
(2) Been certified as a self-insured employer pursuant to NRS 616.293; [or]
(3) Become a member of another association of self-insured public or private employers [.] ; or
(4) Become insured by a private carrier.
6. An association is liable for the payment of any compensation required to be paid by a member of the association [under] pursuant to this chapter 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 [such] the compensation.
κ1995 Statutes of Nevada, Page 2024 (CHAPTER 580, AB 552)κ
Sec. 84. NRS 616.390 is hereby amended to read as follows:
616.390 Except for self-insured employers , [and] employers who are members of an association of self-insured public or private employers [,] and employers insured by private carriers, all employers becoming contributors to the state insurance fund or the accident benefit fund, pursuant to the provisions of NRS 616.315, must be placed in a separate class, the premium rates of which must be sufficient to provide an adequate fund for the payment of the proportionate administrative expense and compensation on account of injuries and death of employees of this class.
Sec. 85. NRS 616.392 is hereby amended to read as follows:
616.392 1. Except as otherwise provided in subsection 2:
(a) A principal contractor or an owner of property acting as a principal contractor aggrieved by a letter issued pursuant to NRS 616.288;
(b) An employer aggrieved by a written decision of an employee of the [system] insurer on a matter relating to the employers account; or
(c) An employer aggrieved by a determination made pursuant to NRS 616.5177,
may appeal from the letter, decision or determination by filing a notice of appeal with the [manager or his designee] administrator within 30 days after the date of the letter, decision or determination.
2. An employer shall not seek to remove costs that have been charged to his account by appealing to the [manager or his designee] administrator any issue that relates to a claim for compensation if the issue was raised or could have been raised, before a hearing officer or an appeals officer pursuant to NRS 616.5412 or 616.5422.
3. The decision of the [manager or his designee] administrator is the final and binding administrative determination of an appeal filed pursuant to this section, and the whole record consists of all evidence taken at the hearing before the [manager or his designee] administrator and any findings of fact and conclusions of law based thereon.
4. As used in this section, matters relating to an employers account:
(a) Include, but are not limited to, an audit of the employers account and a determination of the appropriate classification of risk for an employers business.
(b) Do not include a revision of premium rates or classifications of employment . [pursuant to NRS 616.380.]
Sec. 86. NRS 616.395 is hereby amended to read as follows:
616.395 1. [Except for a self-insured employer or an employer who is a member of an association of self-insured public or private employers, every employer within, and those electing to be governed by, the provisions of this chapter, with the exception of the state, counties, municipal corporations, cities and school districts, shall provide the system with a bond executed by the employer as principal, and by a corporation qualified under the laws of this state as surety, payable to the State of Nevada and conditioned upon the proper payment of premiums. All premium rates in effect on July 1, 1947, must be continued in full force until changed as provided by law.] Every employer insured by the system shall pay premiums to the state insurance fund.
κ1995 Statutes of Nevada, Page 2025 (CHAPTER 580, AB 552)κ
2. Every employer [within or electing to be governed by the provisions of this chapter] who is insured by the system and enters into business or resumes operations shall, before commencing or resuming operations, notify the manager of that fact, accompanying the notification with an estimate of his monthly payroll, and pay the premium [on the payroll for the first 2 months of operations.
3. The amount of the bond required by this section must be determined by the manager in such a manner as he deems proper.
4. In lieu of a bond the employer may deposit with the system, under such terms as the manager may prescribe, a like amount of lawful money of the United States or any other form of security authorized by NRS 100.065. If security is provided in the form of a savings certificate, certificate of deposit or investment certificate, the required amount must be rounded up to the next larger integral multiple of $100, and the certificate must state that the amount is unavailable for withdrawal except by direct and sole order of the manager.
5.] or deposit required by the manager.
3. All money received by the system pursuant to this section must be deposited with the state treasurer to the credit of the state insurance fund.
Sec. 87. (Deleted by amendment.)
Sec. 88. NRS 616.400 is hereby amended to read as follows:
616.400 1. [Except for a self-insured employer or an employer who is a member of an association of self-insured public or private employers, every employer within, and those electing to be governed by, the provisions of this chapter, shall, on or before the 25th day of the month immediately after the end of the assigned reporting period] Every employer insured by the system shall, at intervals established by the manager, furnish the system with a true and accurate payroll for that period showing:
(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 system,
together with the premium due thereon.
2. [In determining the total amount paid to employees by each employer for services performed during a calendar year, the maximum amount paid by each employer to any one employee during the calendar year shall be deemed to be the first $36,000 paid to the employee during the calendar year.
3.] Any employer by agreement in writing with the manager may arrange for the payment of premiums in advance [for a period of more than 60 days.
4.] at an interval established by the manager.
3. Failure of any employer to comply with the provisions of this section and NRS 616.395 operates as a rejection of this chapter, effective at the expiration of the period covered by his estimate. The manager shall notify the administrator of each such rejection.
[5.] 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 manager may require the payment of money sufficient to cover the deficit, together with such amount as in his judgment constitutes an adequate advance premium for the period covered by the estimate.
κ1995 Statutes of Nevada, Page 2026 (CHAPTER 580, AB 552)κ
[6.] 5. The manager 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 this chapter as otherwise provided in this chapter.
[7.] 6. The system may impose a penalty not to exceed [4] 10 percent of the premiums which are due or $15, whichever is greater, for the failure of an employer 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.
[8.] 7. To the extent permitted by federal law, the system shall vigorously pursue the collection of premiums that are due under the provisions of this chapter even if an employers debts have been discharged in a bankruptcy proceeding.
Sec. 89. NRS 616.401 is hereby amended to read as follows:
616.401 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 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 this chapter.
5. The administrator shall adopt such regulations as are necessary to carry out the provisions of this section.
Sec. 90. NRS 616.405 is hereby amended to read as follows:
616.405 1. [Except for a self-insured employer or an employer who is a member of an association of self-insured public employers, as] As soon as possible after the expiration of each quarter year, every state office, department, board, commission, bureau, agency or institution, operating by authority of law, and the auditor or comptroller of each county, and the clerk or other chief financial officer of each [municipal corporation, city, and] city, school district [,] and other political subdivision insured by the system shall furnish the manager with [a true and] an accurate payroll of the state office, department, board, commission, bureau, agency or institution, and county, metropolitan police department, [municipal corporation,] city, or school district [,] or other political subdivision showing:
κ1995 Statutes of Nevada, Page 2027 (CHAPTER 580, AB 552)κ
metropolitan police department, [municipal corporation,] city, or school district [,] or other political subdivision showing:
(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 , [and] clerks and other chief financial officers shall make up and submit to the respective governing boards of [each] the appropriate county, metropolitan police department, [municipal corporation, city, and] 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 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. 91. NRS 616.410 is hereby amended to read as follows:
616.410 1. The system shall collect a premium upon the total payroll of every employer [within the provisions of this chapter, except as otherwise provided, in such a percentage as the manager shall fix by order for accident benefits.] insured by the system at the rate filed with the commissioner pursuant to chapter 686B of NRS.
2. Every employer paying this premium is relieved from furnishing accident benefits, and the accident benefits must be provided by the system.
3. The system is liable for any accident benefits provided in this section . [, but the] The account provided for accident benefits must be kept as a separate [and distinct account, and must,] account on the records of the system . [, be so kept.]
Sec. 92. NRS 616.420 is hereby amended to read as follows:
616.420 1. If the administrator finds that the employer is furnishing the requirements of accident benefits in such a manner that there are reasonable grounds for believing that the health, life or recovery of the employee is being endangered or impaired thereby, or that an employer has failed to provide benefits pursuant to NRS 616.415 for which he has made arrangements, the administrator may, upon application of the employee, or upon his own motion, order a change of physicians or chiropractors or of any other requirements of accident benefits.
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 [system, the self-insured employer or the association of self-insured public or private employers.] 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.
κ1995 Statutes of Nevada, Page 2028 (CHAPTER 580, AB 552)κ
Sec. 93. NRS 616.425 is hereby amended to read as follows:
616.425 1. Except as otherwise provided in subsection 3, all premiums, contributions, penalties, bonds, securities and all other properties received, collected or acquired by the system pursuant to the terms of this chapter:
(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 this chapter. 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 616.294, 616.2945 or 616.647, or 616.3791 to 616.37997, inclusive, or section 22 of this act, impose and collect administrative fines pursuant to those sections and deposit the money in the fund for workers compensation and safety.
3. If a hearing officer or panel is not authorized to take disciplinary action pursuant to subsection 2 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 attorneys fees or the costs of an investigation, or both.
Sec. 94. NRS 616.4261 is hereby amended to read as follows:
616.4261 1. There is hereby established as a trust fund in the state treasury the subsequent injury fund, which may be used only to make payments in accordance with the provisions of NRS 616.427 and 616.428. The administrator shall administer the fund.
2. All assessments, penalties, bonds, securities and all other properties received, collected or acquired by the administrator for the subsequent injury fund must be delivered to the custody of the state treasurer.
3. All money and securities in the fund must be held in trust by the state treasurer as custodian thereof to be used solely for workers compensation.
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 [must] 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] associations of self-insured public or private employers [,] and private carriers and must be based upon expected annual expenditures for claims. The system must not be required to pay any assessments, payments or penalties into the subsequent injury fund, or any costs associated with the fund.
κ1995 Statutes of Nevada, Page 2029 (CHAPTER 580, AB 552)κ
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 , [or] association of self-insured public or private employers or private carrier who wishes to appeal the rate so filed must do so pursuant to NRS 679B.310.
Sec. 95. NRS 616.427 is hereby amended to read as follows:
616.427 Except as otherwise provided in NRS 616.428:
1. If an employee of a self-insured employer , [or of] a member of an association of self-insured public or private employers or an employer insured by a private carrier has a permanent physical impairment from any cause or origin and incurs a subsequent disability by injury arising out of and in the course of his employment which entitles him to compensation for disability that is substantially greater by reason of the combined effects of the preexisting impairment and the subsequent injury than that which would have resulted from the subsequent injury alone, the compensation due must be charged to the subsequent injury fund in accordance with regulations adopted by the administrator.
2. If the subsequent injury of such an employee results in his death and it is determined that the death would not have occurred except for the preexisting permanent physical impairment, the compensation due must be charged to the subsequent injury fund in accordance with regulations adopted by the administrator.
3. As used in this section, permanent physical impairment means any permanent condition, whether congenital or caused by injury or disease, of such seriousness as to constitute a hindrance or obstacle to obtaining employment or to obtaining reemployment if the employee is unemployed. For the purposes of this section, a condition is not a permanent physical impairment unless it would support a rating of permanent impairment of 6 percent or more of the whole man if evaluated according to the American Medical Associations Guides to the Evaluation of Permanent Impairment as adopted and supplemented by the division. The division shall adopt regulations incorporating the American Medical Associations Guides to the Evaluation of Permanent Impairment by reference and may amend [such] these regulations from time to time as it deems necessary. In adopting the Guides to the Evaluation of Permanent Impairment, the division shall consider the edition most recently published by the American Medical Association.
4. To qualify under this section for reimbursement from the subsequent injury fund, the self-insured employer , [or] association of self-insured public or private employers or private carrier must establish by written records that the employer had knowledge of the permanent physical impairment at the time the employee was hired or that the employee was retained in employment after the employer acquired such knowledge.
5. A self-insured employer , [or] association of self-insured public or private employers or private carrier shall notify the administrator of any possible claim against the subsequent injury fund as soon as practicable, but not later than 100 weeks after the injury or death.
6. The administrator shall adopt regulations establishing procedures for submitting claims against the subsequent injury fund. The administrator shall notify the self-insured employer , [or] association of self-insured public or private employers or private carrier of his decision on such a claim within 90 days after the claim is received.
κ1995 Statutes of Nevada, Page 2030 (CHAPTER 580, AB 552)κ
private employers or private carrier of his decision on such a claim within 90 days after the claim is received.
7. An appeal of any decision made concerning a claim against the subsequent injury fund must be submitted directly to the appeals officer. The appeals officer shall hear such an appeal within 45 days after the appeal is submitted to him.
Sec. 96. NRS 616.428 is hereby amended to read as follows:
616.428 1. A self-insured employer , [or] association of self-insured public or private employers or private carrier who pays compensation due to an employee who has a permanent physical impairment from any cause or origin and incurs a subsequent disability by injury arising out of and in the course of his employment which entitles him to compensation for disability that is substantially greater by reason of the combined effects of the preexisting impairment and the subsequent injury than that which would have resulted from the subsequent injury alone is entitled to be reimbursed from the subsequent injury fund if:
(a) The employee knowingly made a false representation as to his physical condition at the time he was hired by the self-insured employer , [or] member of an association of self-insured public or private employers [;] or employer insured by a private carrier;
(b) The employer relied upon the false representation and this reliance formed a substantial basis of the employment; and
(c) A causal connection existed between the false representation and the subsequent disability.
If the subsequent injury of the employee results in his death and it is determined that the death would not have occurred except for the preexisting permanent physical impairment, any compensation paid is entitled to be reimbursed from the subsequent injury fund.
2. A self-insured employer , [or] association of self-insured public or private employers or private carrier shall notify the administrator of any possible claim against the subsequent injury fund pursuant to this section no later than 60 days after the date of the subsequent injury or the date the employer learns of the employees false representation, whichever is later.
Sec. 97. NRS 616.490 is hereby amended to read as follows:
616.490 1. If the provisions of this chapter relative to compensation for injuries to or death of employees become invalid because of any adjudication, or are repealed, the period intervening between the occurrence of an injury or death, not previously compensated for [under] pursuant to this chapter by the payment of a lump sum [payment] or completed monthly payments, and the repeal or the rendition of the final adjudication of the validity must not be computed as a part of the time limited by law for the commencement of any action relating to the injury or death if the action is commenced within 1 year after the repeal or adjudication.
2. In any such action, any sum paid [out of the state insurance fund or by a self-insured employer or an association of self-insured public or private employers] by an insurer by reason of injury to an employee by whom, or by whose dependents, the action is prosecuted, must be taken into account and credited upon the recovery as payment.
Secs. 98 and 99. (Deleted by amendment.)
κ1995 Statutes of Nevada, Page 2031 (CHAPTER 580, AB 552)κ
Sec. 100. NRS 616.500 is hereby amended to read as follows:
616.500 1. An employee or, in the event of the employees death, one of his dependents, shall provide written notice of an injury that arose out of and in the course of employment to the employer of the employee as soon as practicable, but within 30 days after the accident.
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 employees 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 employees 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 employers agent is an acknowledgment of the receipt of the notice and shall not be deemed to be a waiver of any of the employers 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 private carrier shall not file a notice of injury with the system [.] or the private carrier.
Sec. 101. NRS 616.520 is hereby amended to read as follows:
616.520 1. Except as otherwise provided in subsection 4 of NRS 616.260, if an employee who has been hired or is regularly employed in this state receives personal injury by accident arising out of and in the course of such employment outside of this state, he, or his dependents in case of his death, are entitled to receive compensation according to the law of this state, and such compensation is the exclusive remedy of the employee or dependents.
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. 102. NRS 616.530 is hereby amended to read as follows:
616.530 1. If an employee who has been hired or is regularly employed in this state receives personal injury by accident arising out of and in the course of such employment outside this state, and he, or his personal or legal representatives, dependents or next of kin commence any action or proceeding in any other state to recover any damages or compensation from his employer for the injury or death , [from his employer,] the act of commencing such an action or proceeding constitutes an irrevocable waiver of all compensation for the injury or death to which persons would otherwise have been entitled under the laws of this state.
κ1995 Statutes of Nevada, Page 2032 (CHAPTER 580, AB 552)κ
employer for the injury or death , [from his employer,] the act of commencing such an action or proceeding constitutes an irrevocable waiver of all compensation for the injury or death to which persons would otherwise have been entitled under the laws of this state.
2. If the injured employee, 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 [forthwith] 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 [amount] by such 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. 103. NRS 616.5414 is hereby amended to read as follows:
616.5414 If an employee of a self-insured employer , [or of] an employer who is a member of an association of self-insured public or private employers or an employer insured by a private carrier is dissatisfied with a decision of his employer , [or] the association [,] or the private carrier, he may seek to resolve the dispute pursuant to NRS 616.5395 and 616.5412 to 616.544, inclusive.
Sec. 104. NRS 616.630 is hereby amended to read as follows:
616.630 1. If the [manager] administrator finds that an employer within the provisions of NRS 616.285 has failed to provide and secure compensation as required by the terms of this chapter, he shall make a determination thereon based on any information that is within his possession or that may come within his possession and charge the employer an amount [equal to] of not more than three times the premiums that would otherwise have been owed to the system if he had been insured by the system pursuant to the terms of this chapter for the period that the employer was doing business in this state without providing or securing compensation, but not to exceed 6 years. Any money collected by the administrator pursuant to this subsection must be deposited into the uninsured employers claim fund.
2. [The manager shall mail a copy of his determination to the employer.] If the manager is not satisfied with the amount of a premium required to be paid to the system by any person, he may compute and determine the amount required to be paid on the basis of any information within his possession or which may come into his possession.
κ1995 Statutes of Nevada, Page 2033 (CHAPTER 580, AB 552)κ
required to be paid on the basis of any information within his possession or which may come into his possession. One or more determinations of a deficiency may be made of the amount due for one or more periods.
3. Except for a determination made pursuant to subsection 1, a notice of a determination of a deficiency issued by the manager must be served personally or mailed with 3 years after the last day of the calendar month following the period for which the amount that is proposed to be determined is due. An employer who is aggrieved by [the managers] a determination made pursuant to this section or NRS 360.300 may appeal from the determination pursuant to subsection 2 of NRS 616.635.
[3.] 4. Any employer within the provisions of NRS 616.285 who fails to provide and secure compensation as required by the terms of this chapter, 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 gross misdemeanor.
Any criminal penalty imposed must be in addition to the amount charged pursuant to subsection 1.
Sec. 105. NRS 616.632 is hereby amended to read as follows:
616.632 1. Any person who:
(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 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, voluntary association or private corporation.
Sec. 106. NRS 616.635 is hereby amended to read as follows:
616.635 1. If the [manager] administrator finds that the employer or any employee, officer or agent of any employer has knowingly made a false statement or has knowingly failed to report a material fact concerning the amount of payroll upon which a premium is based, he shall make a determination thereon and charge the employers account an amount equal to three times the amount of the premium due. The [manager] administrator shall mail a copy of his determination to the employer.
2. An employer who is aggrieved by the [managers] administrators determination may appeal from the determination by filing a request for a hearing. The request must be filed with 30 days after the date on which a copy of the determination was mailed to the employer. The [manager] administrator shall hold a hearing within 30 days after he receives the request. The [determination] decision of the [manager] administrator made pursuant to a hearing is a final decision for the purposes of judicial review. The amount of the determination as finally decided by the administrator becomes due within 30 days after the decision is served on the employer.
κ1995 Statutes of Nevada, Page 2034 (CHAPTER 580, AB 552)κ
the determination as finally decided by the administrator becomes due within 30 days after the decision is served on the employer.
3. A person who knowingly makes a false statement or representation or who knowingly fails to report a material fact concerning the amount of payroll upon which a premium is based is guilty of a gross misdemeanor. Any criminal penalty imposed must be in addition to the amount charged pursuant to subsection 1.
Sec. 107. NRS 616.645 is hereby amended to read as follows:
616.645 1. Any employer insured by the system who refuses to submit his books, records and [payrolls] payroll for inspection, as provided by NRS 616.335, to a representative of the system or the administrator, or to an auditor from the department of taxation, presenting written authority for the inspection, is subject to a penalty of [$100] $1,000 for each offense, to be collected by a civil action in the name of the system or the administrator.
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 616.335, 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. The person who gives such refusal is guilty of a misdemeanor.
Secs. 108 and 109. (Deleted by amendment.)
Sec. 110. NRS 616.655 is hereby amended to read as follows:
616.655 Any employer who fails:
1. To post the notice required by NRS 616.305 and section 11 of this act in a place that is readily accessible and visible to employees is guilty of a misdemeanor.
2. To maintain the notice or notices required by NRS 616.305 and section 11 of this act is guilty of a misdemeanor.
Sec. 111. Chapter 617 of NRS is hereby amended by adding thereto a new section to read as follows:
The claims of employees and their dependents resulting from injuries while in the employment of employers insured by a private carrier must be handled in the manner provided in this chapter, and the employer and the private carrier are subject to the regulations of the division with respect thereto.
Sec. 112. NRS 617.200 is hereby amended to read as follows:
617.200 1. Every employer within the provisions of this chapter, and those employers who [shall] accept the terms of this chapter and [be] are governed by its provisions, shall provide and secure compensation according to the terms, conditions and provisions of this chapter for [any and] all occupational diseases [sustained] contracted by an employee arising out of and in the course of the employment.
2. In such cases the employer [shall be] or any insurer of the employer is relieved from other liability for recovery of damages or other compensation for [such occupational disease,] those occupational diseases, unless otherwise provided by the terms of this chapter . [otherwise provided.]
Sec. 113. NRS 617.225 is hereby amended to read as follows:
617.225 1. A sole proprietor may elect to be included within the terms, conditions and provisions of this chapter [for the purpose of personally securing] to secure for himself compensation equivalent to that to which an employee is entitled for any occupational disease contracted by the sole proprietor which arises out of and in the course of his self-employment by filing a written notice of election with the administrator and the system [.]
κ1995 Statutes of Nevada, Page 2035 (CHAPTER 580, AB 552)κ
securing] to secure for himself compensation equivalent to that to which an employee is entitled for any occupational disease contracted by the sole proprietor which arises out of and in the course of his self-employment by filing a written notice of election with the administrator and the system [.] or a private carrier.
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 [system.] commissioner.
4. If a sole proprietor fails to pay all premiums required by the regulations of the [system,] 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 [shall remain] remains subject to all terms, conditions and provisions of this chapter and all regulations of the [division] commissioner until he files 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. 114. NRS 617.250 is hereby amended to read as follows:
617.250 1. A lessee engaged in either mining or operating a reduction plant, whose employer is within the provisions of this chapter, must be reported by the employer [separate and apart from those] separately from persons employed at a daily wage, and the report must describe briefly:
(a) The agreement under which the work is to be performed;
(b) The aggregate number of shifts worked during the preceding month; and
(c) The total amount earned by [such employees,] lessees, computed on the average daily wages of workmen engaged in like work in the same locality.
Otherwise, the payroll reports and premium payments on earnings of [employees] lessees described in this section are governed by the requirements of this chapter regarding employees engaged at a regular wage.
2. If such a lessee files with the [system] administrator and the insurer an acceptance of the provisions of this chapter and , if applicable, pays the premiums in advance upon the estimated earnings of himself and any workmen he may employ, the lessor is relieved of this obligation.
Sec. 115. NRS 617.310 is hereby amended to read as follows:
617.310 [Except for a self-insured employer or an employer who is a member of an association of self-insured public or private employers, every employer within the provisions of this chapter and every employer electing to be governed by the provisions of this chapter, before becoming entitled to the benefits of this chapter in the providing and securing of compensation to] Every employer insured by the system or a private carrier, to receive the benefits of this chapter and to provide and secure compensation for his employees, shall pay [to the system, for the occupational diseases fund and the medical benefits fund, in the manner and at the times prescribed for the payment of premiums in chapter 616 of NRS, premiums in amounts fixed by the manager.]
κ1995 Statutes of Nevada, Page 2036 (CHAPTER 580, AB 552)κ
benefits of this chapter in the providing and securing of compensation to] Every employer insured by the system or a private carrier, to receive the benefits of this chapter and to provide and secure compensation for his employees, shall pay [to the system, for the occupational diseases fund and the medical benefits fund, in the manner and at the times prescribed for the payment of premiums in chapter 616 of NRS, premiums in amounts fixed by the manager.] premiums according to the classification and rules filed by the advisory organization, and the rates filed by the insurers, with the commissioner.
Sec. 116. NRS 617.410 is hereby amended to read as follows:
617.410 Compensation for disability sustained on account of occupational disease by an employee, or the dependents of an employee as defined in this chapter, must be paid [from the occupational diseases fund or, if the employee is employed by a self-insured employer or any employer who is a member of an association of self-insured public or private employers, then by the employer or the association.] by the insurer.
Sec. 117. NRS 617.430 is hereby amended to read as follows:
617.430 1. Every employee who is disabled or dies because of an occupational disease, as defined in this chapter, arising out of and in the course of employment in the State of Nevada, or the dependents, as that term is defined in chapter 616 of NRS, of an employee whose death is caused by an occupational disease, are entitled to the compensation provided by chapter 616 for temporary disability, permanent disability [,] or death, as the facts may warrant, subject to the modifications mentioned in this chapter.
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 [such] 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, an employer insured by a private carrier that provides coverage for occupational diseases or an employer [contributing to the occupational diseases fund of Nevada for the benefit of such employee.] insured by the system.
Sec. 118. NRS 617.460 is hereby amended to read as follows:
617.460 1. Except as otherwise provided in NRS 617.366, silicosis and diseases related to asbestos are occupational diseases and are compensable as such when contracted by an employee and when arising out of and in the course of the employment.
2. Claims for compensation on account of silicosis or a disease related to asbestos are forever barred unless application is made to the insurer within 1 year after the date of disability or death and within 1 year after the claimant knew or should have known of the relationship between the disease and the employment.
3. Nothing in this chapter entitles an employee or his dependents to compensation, medical, hospital and nursing expenses or payment of funeral expenses for disability or death [due to] because of silicosis or a disease related to asbestos in the event of the failure or omission on the part of the employee truthfully to state, when seeking employment, the place, duration and nature of previous employment in answer to an inquiry made by the employer.
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and nature of previous employment in answer to an inquiry made by the employer.
4. No compensation may be paid in case of silicosis or a disease related to asbestos unless the injured employee has been exposed to harmful quantities of silicon dioxide dust or fibers of asbestos for not less than 1 year in employment in this state covered by [the insurer.] this chapter and chapter 616 of NRS.
5. Compensation on account of silicosis or a disease related to asbestos is payable only in the event of a temporary or permanent disability, or death, in accordance with the provisions of chapter 616 of NRS. Except as otherwise provided in NRS 616.615, the insurer shall not allow the conversion of the compensation benefits provided for in this section into [a lump-sum payment.] the payment of a lump sum. Payment of benefits and compensation is limited to the claimant and his dependents.
6. Any claimant who has been disabled by silicosis or a disease related to asbestos before July 1, 1973, or his dependents, upon receiving the maximum sum payable, $14,250, to which they are entitled, [is] are not entitled to compensation [payments by] from the insurer, but [is] are entitled to continue to receive the same amount of compensation from the account for pensions for silicosis, diseases related to asbestos and other disabilities.
Sec. 119. NRS 618.383 is hereby amended to read as follows:
618.383 1. [An] Except as otherwise provided in subsection 7, an employer shall establish a written safety program and carry out the requirements of the program within 90 days after it is established.
2. The written safety program must include:
(a) The establishment of a training program for employees concerning safety in the workplace, particularly in those areas where there have been recurring injuries.
(b) If an employer has more than 25 employees, the establishment of a safety committee. The safety committee must include representatives of employees. If the employees are represented by a labor organization, the representatives of employees must be selected by the employees and not appointed by the employer.
3. A representative of employees while engaging in the business of a safety committee, including attendance at meetings, authorized inspections or any other activity of the committee, must be paid by his employer as if that employee were engaged in his usual work activities.
4. The administrator of the division shall adopt regulations establishing the minimum requirements for a written safety program.
5. The administrator of the division shall develop and provide each employer with a written guide for establishing a written safety program.
6. An employer who contracts with a temporary employment service shall provide specialized training concerning safety for the employees of the service before they begin work at each site or as soon as possible thereafter.
7. [The manager of the state industrial insurance system shall increase by not more than 15 percent the premium of any employer who violates the provisions of subsection 1, and shall transfer 3 percent of any additional premium received by him pursuant to this subsection to the division for its use. The manager shall use the remaining amount of any additional premium received to reduce the premiums of employers insured by the system.
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received to reduce the premiums of employers insured by the system. The manager shall adopt regulations to carry out the provisions of this subsection which result in the equitable reduction of premiums among those employers.] An employer who has 10 or fewer employees is exempted from the provisions of this section unless the employer has been identified pursuant to NRS 616.380 as having excessive losses.
Sec. 119.5. NRS 618.383 is hereby amended to read as follows:
618.383 1. Except as otherwise provided in subsection 7, an employer shall establish a written safety program and carry out the requirements of the program within 90 days after it is established.
2. The written safety program must include:
(a) The establishment of a training program for employees concerning safety in the workplace, particularly in those areas where there have been recurring injuries.
(b) If an employer has more than 25 employees, the establishment of a safety committee. The safety committee must include representatives of employees. If the employees are represented by a labor organization, the representatives of employees must be selected by the employees and not appointed by the employer.
3. A representative of employees while engaging in the business of a safety committee, including attendance at meetings, authorized inspections or any other activity of the committee, must be paid by his employer as if that employee were engaged in his usual work activities.
4. The administrator of the division shall adopt regulations establishing the minimum requirements for a written safety program.
5. The administrator of the division shall develop and provide each employer with a written guide for establishing a written safety program.
6. An employer who contracts with a temporary employment service shall provide specialized training concerning safety for the employees of the service before they begin work at each site or as soon as possible thereafter.
7. An employer who has 10 or fewer employees is exempted from the provisions of this section. . [unless the employer has been identified pursuant to NRS 616.380 as having excessive losses.]
Sec. 120. NRS 228.420 is hereby amended to read as follows:
228.420 1. The attorney general has primary jurisdiction to investigate and prosecute any alleged criminal violations of NRS 616.630, 616.635, 616.640, 616.675 to 616.700, inclusive, and any fraud in the administration of chapter 616 or 617 of NRS or in the provision of [benefits for industrial insurance.] compensation required by chapters 616 and 617 of NRS.
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 616.630, 616.635, 616.640, 616.675 to 616.700, inclusive, and any fraud in the administration of chapter 616 or 617 of NRS or in the provision of [industrial insurance benefits;] compensation required by chapters 616 and 617 of NRS;
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616 or 617 of NRS or in the provision of [industrial insurance benefits;] compensation required by chapters 616 and 617 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 616.630, 616.635, 616.640, 616.675 to 616.700, inclusive, and any fraud in the administration of chapter 616 or 617 of NRS or in the provision of [benefits for industrial insurance;] compensation required by chapters 616 and 617 of NRS;
(c) Shall protect the privacy of persons who are eligible to receive [benefits] compensation pursuant to the provisions of chapter 616 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, private carrier, the state industrial insurance system and the division of industrial relations of the department of business and industry to investigate any alleged violation of any of the provisions of NRS 616.630, 616.635, 616.640, 616.675 to 616.700, inclusive, or any fraud in the administration of chapter 616 or 617 of NRS or in the provision of [benefits for industrial insurance.] compensation required by chapters 616 and 617 of NRS.
4. When acting pursuant to 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 616.630, 616.635, 616.640, 616.675 to 616.700, inclusive, to the occupational board that issued the persons 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 616.630, 616.635, 616.640, 616.675 to 616.700, inclusive, and any fraud in the administration of chapter 616 or 617 of NRS or in the provision of [industrial insurance benefits.] compensation required by chapters 616 and 617 of NRS.
7. As used in this section:
(a) Association of self-insured private employers has the meaning ascribed to it in NRS 616.0265.
(b) Association of self-insured public employers has the meaning ascribed to it in NRS 616.0267.
(c) Private carrier has the meaning ascribed to it in section 6 of this act.
(d) Self-insured employer has the meaning ascribed to it in NRS 616.112.
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Sec. 121. 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) An association of self-insured public employers; [and]
(d) An association of self-insured private employers [.] ; and
(e) A private carrier.
Sec. 122. NRS 232.680 is hereby amended to read as follows:
232.680 1. The cost of carrying out the provisions of NRS 232.550 to 232.700, inclusive, and of supporting the division, a full-time employee of the legislative counsel bureau and the fraud control unit for industrial insurance established pursuant to NRS 228.420, must be paid from assessments payable by each:
(a) Insurer based upon expected annual [expenditures for claims;] premiums to be received; and
(b) Employer who provides accident benefits for injured employees pursuant to NRS 616.415, 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. 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 [workmens] 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 616.253 to 616.2539, 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.
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(e) Claims against uninsured employers arising from compliance with NRS 616.377 and 617.275.
Sec. 123. NRS 244.33505 is hereby amended to read as follows:
244.33505 1. In a county in which a license to engage in a business is required, the board of county commissioners shall not issue such a license unless the applicant for the license signs an affidavit affirming that the business:
(a) Has received coverage by the state industrial insurance system or a private carrier as required pursuant to chapter 616 of NRS;
(b) Maintains a valid certificate of self-insurance pursuant to chapter 616 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 chapter 616 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. 124. NRS 268.0955 is hereby amended to read as follows:
268.0955 1. In an incorporated city in which a license to engage in a business is required, the city council or other governing body of the city shall not issue such a license unless the applicant for the license signs an affidavit affirming that the business:
(a) Has received coverage by the state industrial insurance system or a private carrier as required pursuant to chapter 616 of NRS;
(b) Maintains a valid certificate of self-insurance pursuant to chapter 616 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 chapter 616 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.
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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. 125. NRS 281.390 is hereby amended to read as follows:
281.390 1. When any public employee is eligible at the same time for benefits for temporary total disability [under] pursuant to chapter 616 or 617 of NRS and for any sick leave benefit, he may, by giving notice to his employer, elect to continue to receive his normal salary instead of the benefits [under] pursuant to chapter 616 or 617 of NRS until his accrued sick leave time is exhausted. The employer shall notify the state industrial insurance system or the insurer that provides industrial insurance for that employer of the election. The employer shall continue to pay the employee his normal salary but charge against the employees accrued sick leave time as taken during the pay period an amount which represents the difference between his normal salary and the amount of any benefit for temporary total disability received, exclusive of reimbursement or payment of medical or hospital expenses [under] pursuant to chapter 616 or 617 of NRS for that pay period.
2. When the employees accrued sick leave time is exhausted, payment of his normal salary [under] 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 [under] pursuant to chapter 616 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 [under] pursuant to chapter 616 or 617 of NRS for that pay period.
4. If the amount of the employees 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 [under] pursuant to chapter 616 or 617 of NRS. During that period of time the employee shall be considered on leave of absence without pay.
Sec. 126. NRS 284.173 is hereby amended to read as follows:
284.173 1. Elective officers and heads of departments, boards, commissions or institutions may contract for the services of persons as independent contractors.
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.
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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 [under] pursuant to the provisions of NRS 281.160.
(b) There must be no:
(1) Withholding of income taxes by the state;
(2) [Industrial insurance coverage] 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) [Unemployment compensation coverage] 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 to approve contracts which are for amounts less than $2,000 or, in contracts necessary to preserve life and property, for amounts less than $5,000. 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.
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(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. 127. 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. Purchasing division means the purchasing division of the department of administration.
4. Request for a proposal means a statement which sets forth the requirements and specifications of a contract to be awarded by competitive selection.
5. 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, [excepting] except 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.
6. Volunteer fire department means a volunteer fire department which pays [industrial insurance] premiums for industrial insurance pursuant to the provisions of chapter 616 of NRS.
Sec. 128. NRS 333.470 is hereby amended to read as follows:
333.470 1. The University and Community College System of Nevada, the state industrial insurance system and local governments as defined in NRS 354.474, conservation districts and irrigation districts in the State of Nevada may obtain supplies, materials and equipment on a voluntary basis through the facilities of the purchasing division.
2. The chief shall issue bulletins from time to time to [all state and local government agencies, to all irrigation districts and conservation districts, to the University and Community College System of Nevada, indicating] :
(a) Each state agency;
(b) Each local governmental agency;
(c) Each irrigation district;
(d) Each conservation district;
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(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. 129. NRS 364A.040 is hereby amended to read as follows:
364A.040 1. Employee includes:
(a) A natural person who receives wages or other remuneration from a business for personal services, including commissions and bonuses and remuneration payable in a medium other than cash; and
(b) A natural person engaged in the operation of a business.
2. The term includes:
(a) A partner or other co-owner of a business; and
(b) Except as otherwise provided in subsection 3, a natural person reported as an employee to the:
(1) Employment security division of the department of employment, training and rehabilitation;
(2) [State industrial insurance system;] Administrator of the division of industrial relations of the department of business and industry; or
(3) Internal Revenue Service on an Employers Quarterly Federal Tax Return (Form 941), Employers Monthly Federal Tax Return (form 941-M), Employers Annual Tax Return for Agricultural Employees (Form 943) or any equivalent or successor form.
3. The term does not include:
(a) A business, including an independent contractor, that performs services on behalf of another business.
(b) A natural person who is retired or otherwise receiving remuneration solely because of past service to the business.
(c) A newspaper carrier or the immediate supervisor of a newspaper carrier who is an independent contractor of the newspaper and receives compensation solely from persons who purchase the newspaper.
(d) A natural person who performs all of his duties for the business outside of this state.
4. An independent contractor is not an employee of a business with whom he contracts.
Sec. 130. NRS 364A.090 is hereby amended to read as follows:
364A.090 The executive director may request lists of employers, the number of employees employed by each employer and the total wages paid by each employer from the [state industrial insurance system] administrator and the employment security division of the department of employment, training and rehabilitation to carry out the provisions of this chapter.
Sec. 131. NRS 408.373 is hereby amended to read as follows:
408.373 1. Before paying any money or drawing his warrant in payment to a person to whom a contract is awarded, the state controller shall require satisfactory evidence of [the payment of the premiums required by chapter 616] his compliance with the requirements to provide workers compensation pursuant to chapters 616 and 617 of NRS and of his payment of the contributions and payments required by chapter 612 of NRS, and he shall withhold payment to the contractor or his assigns until the evidence is provided.
κ1995 Statutes of Nevada, Page 2046 (CHAPTER 580, AB 552)κ
pursuant to chapters 616 and 617 of NRS and of his payment of the contributions and payments required by chapter 612 of NRS, and he shall withhold payment to the contractor or his assigns until the evidence is provided.
2. If a contractor fails to [pay premiums, contributions or payments as required by the provisions of chapter 612 or 616 of NRS,] provide the required coverage, the state controller may make the payments for this purpose to the system on his own behalf from money withheld pursuant to the provisions of subsection 1.
3. Failure to comply with all federal, state and local laws, rules, regulations and ordinances is sufficient cause to withhold any money due the contractor until compliance therewith.
Sec. 132. NRS 412.142 is hereby amended to read as follows:
412.142 1. In all cases in which any member of the militia of the state is wounded, injured, disabled or killed while in the line of duty in the service of the state, the member or the dependents of the member are entitled to receive compensation from the State of Nevada, in accordance with the provisions of chapter 616 of NRS. [There must be paid to the state industrial insurance system quarterly, from the appropriation for the support of the office, such a sum for a premium as may be fixed and agreed upon by the commander in chief and the manager of the system, based upon the number of members in regular attendance during the month as shown by the reports filed with the adjutant general, who shall certify the numbers to the manager.]
2. In all cases, the disabled or deceased member shall be deemed to be an employee of the State of Nevada. The compensation to be awarded to the member or to the dependents of the member must be determined upon the basis of his average income from all sources during the year immediately preceding the date of his injury or death or the commencement of his disability, but the compensation must not exceed the maximum prescribed in chapter 616 of NRS.
Sec. 133. NRS 475.110 is hereby amended to read as follows:
475.110 1. All sheriffs, their deputies, firewardens, other peace officers or any national forest officer may call upon able-bodied male persons within the State of Nevada who are between the ages of 16 years and 50 years for assistance in extinguishing fires in timber or in brush.
2. Persons who refuse to obey [such] the summons or who refuse to assist in fighting fire for the period [of time] stated in subsection 3, unless they present [good and] 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 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.
κ1995 Statutes of Nevada, Page 2047 (CHAPTER 580, AB 552)κ
industrial insurance system or a private carrier authorized to provide industrial insurance in this state for persons so engaged.
Sec. 134. NRS 475.230 is hereby amended to read as follows:
475.230 1. Any fire department which engages in fighting a fire on property owned by the state within the jurisdictional limits of the fire department may submit a claim to the secretary of the state board of examiners to recover any direct expenses and losses incurred as a result of fighting that fire.
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 [workmens compensation coverage] coverage for workers compensation provided pursuant to chapter 616 of NRS by the state industrial insurance system 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. 135. NRS 538.101 is hereby amended to read as follows:
538.101 1. While engaged in official business of the commission, each commissioner appointed by the governor is entitled to receive a salary of not more than $80 per day, as fixed by the commission.
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.
κ1995 Statutes of Nevada, Page 2048 (CHAPTER 580, AB 552)κ
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. 136. NRS 624.328 is hereby amended to read as follows:
624.328 The employment security division of the department of employment, training and rehabilitation and the [state industrial insurance system] administrator of the division of industrial relations of the department of business and industry shall make available, upon request, to any licensed contractor the names and addresses of subcontractors who are delinquent in paying the amounts owed by the subcontractor to the:
1. Division for benefits for unemployment pursuant to chapter 612 of NRS; and
2. [System] State industrial insurance system or a private carrier that provides industrial insurance in this state for premiums for industrial insurance.
Sec. 137. NRS 645.553 is hereby amended to read as follows:
645.553 1. Each broker who has a broker-salesman or salesman associated with him pursuant to NRS 645.520 may request, pursuant to NRS 616.288, the state industrial insurance system or the private carrier that provides industrial insurance to provide him routinely with a statement certifying whether the broker-salesman or salesman is current in his own payment of the premiums due for his industrial insurance coverage. A broker who pays the premiums to the system for industrial insurance coverage of a broker-salesman or salesman who has so associated with him, need not participate in the systems program for certification of current payment for that broker-salesman or salesman.
2. A broker is responsible for the payment of any premiums for industrial insurance coverage for each broker-salesman or salesman who is associated with him pursuant to NRS 645.520, unless the broker-salesman or salesman has maintained current payments of those premiums.
Sec. 138. NRS 679B.130 is hereby amended to read as follows:
679B.130 1. The commissioner may adopt reasonable regulations for [, or as an aid to,] the administration [or effectuation] of any provision [or provisions] of this code [. A regulation shall not extend, modify or conflict with any law of this state or the reasonable implications thereof.
2. Willful violation of any such regulation shall subject the violator] or chapters 616 and 617 of NRS.
2. A person who willfully violates any regulation of the commissioner is subject to such suspension or revocation of a certificate of authority or license, or administrative fine in lieu of such suspension or revocation, as may be applicable under this code or chapter 616 or 617 of NRS for violation of the provision to which [such] the regulation relates . [; but no penalty shall apply] No penalty applies to any act done or omitted in good faith in conformity with any such regulation, notwithstanding that [such] the regulation may, after [such] the act or omission, be amended , [or] rescinded or determined by a judicial or other authority to be invalid for any reason.
Sec. 139. (Deleted by amendment.)
κ1995 Statutes of Nevada, Page 2049 (CHAPTER 580, AB 552)κ
Sec. 140. Chapter 680B of NRS is hereby amended by adding thereto a new section to read as follows:
Each insurer providing industrial insurance in this state pursuant to chapters 616 and 617 of NRS is entitled to a credit against the premium tax paid pursuant to NRS 680B.027 for its policies of industrial insurance in an amount equal to the assessment paid by the insurer to the division of industrial relations of the department of business and industry pursuant to NRS 232.680.
Sec. 141. Chapter 686B of NRS is hereby amended by adding thereto the provisions set forth as sections 142 to 176, inclusive, of this act.
Sec. 142. 1. Sections 142 to 176, inclusive, of this act apply to insurers providing industrial insurance and to the advisory organization designated by the commissioner. The commissioner shall administer the provisions of these sections.
2. These provisions apply to all industrial insurance issued in this state except reinsurance.
Sec. 143. As used in sections 142 to 176, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 144 to 152, inclusive, of this act have the meanings ascribed to them in those sections.
Sec. 144. Advisory organization, when preceded by the definite article, means the organization designated by the commissioner pursuant to section 153 of this act.
Sec. 145. Basic premium rate means the portion of a rate attributable to the cost of losses per unit of exposure and includes the expense of adjusting those losses.
Sec. 146. Classification of risks or classification means the system or arrangement used to recognize differences of exposure to hazards among employers with different occupations, industries or operations.
Sec. 147. Expenses means the portion of a rate attributable to the costs for the acquisition of employers to insure, supervision of employees and agents, collection of accounts, general expenses, taxes, licenses and fees.
Sec. 148. Industrial insurance means insurance which provides the compensation required by chapters 616 and 617 of NRS and employers liability insurance provided in connection with that insurance.
Sec. 149. Insurer includes the state industrial insurance system and all private carriers authorized to provide industrial insurance in this state.
Sec. 150. Plan for rating experience means a procedure used to predict the future losses of an individual policyholder by measuring his past losses against the losses of other policyholders in the same classification to determine any prospective credit, debit or unitary modifications of premiums for the individual policyholder.
Sec. 151. Rate means the cost of insurance based on a unit of exposure to liability before any adjustments are made for an individual employers losses, or expenses, or a combination of both. The term does not include minimum premiums charged by an insurer.
Sec. 152. Willful or willfully in relation to an act or omission which constitutes a violation of this chapter means with actual knowledge or belief that the act or omission constitutes a violation and with specific intent to commit the violation.
κ1995 Statutes of Nevada, Page 2050 (CHAPTER 580, AB 552)κ
that the act or omission constitutes a violation and with specific intent to commit the violation.
Sec. 153. The commissioner shall designate one licensed advisory organization to act as his statistical agent and to assist him in compiling relevant statistical information. The designation must be made pursuant to reasonable competitive bidding procedures established by the commissioner. The advisory organization shall:
1. Provide reliable statistics for industrial insurance.
2. Collect and tabulate information and statistics in a uniform statistical plan, to be approved and used by the commissioner.
3. Formulate a manual of rules reasonably related to the recording and reporting of data according to the uniform statistical plan, uniform plan for rating experience and the uniform system of classification, and to present the proposed manual to the commissioner for approval.
Sec. 154. The advisory organization may:
1. Develop statistical plans including definitions for the classification of risks.
2. Collect statistical data from its members and subscribers or any other reliable source.
3. Prepare and distribute data on the basic premium rate or rates, adjusted for expected subsequent changes in reported losses and for trends in losses, according to its statistical plan. The data and adjustments must be sufficiently detailed for insurers to modify the basic premium rate based on their own methods of rating or interpretations of the underlying data.
4. Prepare and distribute manuals of rules and schedules for rating which do not permit calculating the final rates without using information other than the information in the manual.
5. Distribute any information filed with the commissioner which is open to public inspection.
6. Conduct research and collect statistics to discover, identify and classify information on the causes and prevention of losses.
7. Prepare and file forms and endorsements for policies and consult with its members, subscribers and any other knowledgeable persons on their use.
8. Collect, compile and distribute information on the past and current premiums charged by individual insurers if the information is available for public inspection.
9. Conduct research and collect information to determine what effect changes in benefits to injured employees pursuant to chapters 616 and 617 of NRS will have on the basic premium rate or rates.
10. Prepare and distribute rules and rating values for the uniform plan for rating experience.
11. Calculate and provide to the insurer the modification of premiums based on the individual employers losses.
12. Assist an individual insurer to develop rates, supplementary rate information or other supporting information if authorized to do so by the insurer.
Sec. 155. An advisory organization shall not:
1. Compile or distribute recommendations concerning rates which include expenses, other than expenses to adjust losses or profit; or
κ1995 Statutes of Nevada, Page 2051 (CHAPTER 580, AB 552)κ
2. File rates, supplementary rate information or supporting information on behalf of an insurer.
Sec. 156. 1. The uniform plan for rating experience must:
(a) Contain reasonable standards for eligibility in the plan;
(b) Provide adequate incentives for employers to prevent losses; and
(c) Permit sufficient differences in an insurers premiums to encourage safety at the employers place of business.
2. The plan must be the exclusive basis for adjusting future premiums by evaluating an individual employers characteristics which tend to produce losses, but an insurer may file a rating plan that provides for an adjustment of premiums retrospectively based on an individual employers past experience of losses.
Sec. 157. 1. The advisory organization shall file with the commissioner a copy of every basic premium rate, every manual of rating rules, every rating schedule and every change, amendment or modification to them which is proposed for use in this state at least 60 days before they are distributed to the organizations members, subscribers or other persons. The rates shall be deemed to be approved unless they are disapproved by the commissioner within 60 days after they are filed.
2. The commissioner shall report any changes in rates or in the uniform plan for rating experience, the uniform statistical plan or the uniform system of classification, when approved, to the director of the legislative council bureau.
Sec. 158. 1. No insurer is required to issue to any particular employer a policy for industrial insurance.
2. The commissioner shall approve a plan submitted by the advisory organization for equitable apportionment among insurers of those persons who in good faith are entitled to insurance but who have not been accepted by an insurer. Every insurer shall participate in the plan. The commissioner shall adopt regulations to carry out the plan.
3. The advisory organization shall submit to him the rates, supplementary rate information and forms for policies for the plan at least 60 days before they become effective. The rates submitted to the commissioner must reflect the experience of the persons insured pursuant to the plan to the extent that those rates are actuarially appropriate.
4. The commissioner shall disapprove any rates for the plan which do not meet the standards of NRS 686B.050. The rates shall be deemed to be approved unless they are disapproved by the commissioner within 60 days after they are filed pursuant to the procedures in section 162 of this act.
Sec. 159. 1. Every insurer shall adhere to the uniform system of classifications of risks and uniform plan for rating experience filed with the commissioner by the advisory organization.
2. Any insurer may develop a subclassification or subclassifications for the uniform system of classification. Any subclassification must be filed with the commissioner 60 days before it becomes effective. The commissioner shall disapprove the subclassification if the insurer fails to show the data to be produced by it will be consistent with the uniform statistical plan and system of classification filed by the advisory organization with the commissioner.
Sec. 160. 1. Every insurer shall:
κ1995 Statutes of Nevada, Page 2052 (CHAPTER 580, AB 552)κ
(a) Record and report its experience and losses for policies of industrial insurance to the advisory organization in a form consistent with the uniform statistical plan approved by the commissioner; and
(b) Adhere to the manual of rules and uniform plan for rating experience when providing or reporting its business for industrial insurance.
2. No insurer may agree with another insurer or the advisory organization to adhere to a manual of rules which is not reasonably related to the recording or reporting of data according to the uniform statistical plan or uniform system of classifications filed by the advisory organization.
Sec. 161. 1. The commissioner shall determine whether the interaction among insurers and employers for the buying and selling of industrial insurance is competitive. Competition among these insurers is presumed to exist unless the commissioner specifically finds, after a hearing and review of the structure, performance and conduct of the insurers, that there is no reasonable degree of competition among them and that the interaction is not competitive. Any finding by the commissioner that there is no competition among the insurers and that the interaction is not competitive, expires 1 year after the date it is issued.
2. To determine whether competition exists among insurers, the commissioner shall review existing information available to him or participate in the development of new sources of such information. He may conduct his own studies, cooperate with knowledgeable officers in other states, hire outside consultants, or conduct studies in any other appropriate manner.
Sec. 162. 1. If the interaction among insurers and employers is presumed or found to be competitive, each insurer shall file with the commissioner all the rates and supplementary rate information, except any information filed by the advisory organization, which the insurer intends to use in this state. The insurer shall file the rates and supplementary rate information not later than 15 days after the date the rates become effective. An insurer may adopt by reference, with or without a deviation, the rates or supplementary rate information filed by any other insurer.
2. If the commissioner has issued a finding that the interaction is not competitive, each insurer shall file with the commissioner all the rates and supplementary rate information, except for the information filed by the advisory organization, at least 60 days before the rates become effective. If the information supplied by an insurer pursuant to this subsection is insufficient, the commissioner shall notify the insurer and the information shall be deemed to be filed when all the information requested by the commissioner is received by him.
3. If, after notice to the insurer and a hearing, the commissioner finds that an insurers rates require supervision because of the insurers financial condition or because of rating practices which are unfairly discriminatory, the commissioner shall order the insurer to file its rates, supplementary rate information and any other information required by the commissioner, at least 60 days before they become effective.
4. For any filing made by an insurer pursuant to this section, the commissioner may authorize an earlier effective date for the rates upon a written request from the insurer.
κ1995 Statutes of Nevada, Page 2053 (CHAPTER 580, AB 552)κ
5. Every rate riled by an insurer must be filed in the form and manner prescribed by the commissioner.
Sec. 163. 1. If the commissioner finds that:
(a) The interaction among insurers is not competitive;
(b) The rates filed by insurers whose interaction is competitive are inadequate or unfairly discriminatory; or
(c) The rates violate the provisions of this chapter,
the commissioner may require the insurers to file information supporting their existing rates. Before the commissioner may disapprove those rates he shall notify the insurers and hold a hearing on the rates and the supplementary rate information.
2. The commissioner may disapprove any rate which must be filed before it becomes effective without a hearing. Any insurer whose rates are disapproved in this manner may request in writing and within 30 days after the disapproval that the commissioner conduct a hearing on the matter.
Sec. 164. 1. The commissioner may disapprove a rate filed by an insurer:
(a) At any time after the rate becomes effective; or
(b) At any time before the rate becomes effective if the insurer is required to file its rates before they become effective.
2. The commissioner shall disapprove a rate if:
(a) An insurer has failed to meet the requirements for filing a rate pursuant to this chapter or the regulations of the commissioner;
(b) The rate is inadequate or unfairly discriminatory and the interaction among insurers and employers is competitive; or
(c) A rate is inadequate, excessive or unfairly discriminatory and the commissioner has found and issued an order that the interaction among the insurers and employers is not competitive.
Sec. 165. 1. If the commissioner disapproves a rate, he shall issue a written order stating the reasons for the disapproval and stating the date when the rate must no longer be used for policies which are issued or renewed. The date established by the commissioner must be within a reasonable period after the written order is issued. The commissioner shall issue his order within 30 days after the hearing. The commissioner may require that the premiums be adjusted after the date of the order for those policies in effect on the date of his order.
Sec. 166. Sections 142 to 176, inclusive, of this act, do not prohibit or regulate the payment of dividends, savings, unearned premiums deposits or an equivalent abatement of premiums allowed or returned by insurers to their policyholders, members or subscribers. An insurer shall not unfairly discriminate among its policyholders in paying a dividend. A plan for the payment of dividends is not a rating system or plan. An insurer shall not condition the payment of such a dividend upon the renewal of a policy or contract by the policyholder, member or subscriber.
Sec. 167. 1. No insurer or advisory organization may make any agreement with any person, insurer or advisory organization to restrain trade unreasonably or to lessen substantially the competition between insurers.
2. No insurer may agree to use any rate, rating plan or rating rules, other than the uniform plan for rating experience, except as necessary to comply with the provisions of this chapter concerning the activity of the advisory organization and insurers relating to the uniform statistical plan, the uniform plan for rating experience and the uniform system of classifications of risks and the development of subclassifications.
κ1995 Statutes of Nevada, Page 2054 (CHAPTER 580, AB 552)κ
organization and insurers relating to the uniform statistical plan, the uniform plan for rating experience and the uniform system of classifications of risks and the development of subclassifications.
3. The fact that two or more insurers, whether or not they subscribe to the advisory organization, use consistently or intermittently the same rates, rating plans, rating schedules, rating rules, classifications for rates, rules for underwriting, surveys, inspections or similar materials does not require a finding by the commissioner that an agreement to restrain trade or lessen competition exists.
4. Two or more insurers which are commonly owned or operated in this state with common management or control may act or agree to act among themselves as if they were a single insurer for any activities authorized by sections 142 to 176, inclusive, of this act.
Sec. 168. Every insurer, advisory organization and plan for apportioned risks shall maintain records of the kind reasonably adapted to its method of operation and reflecting its experience or the experience of its members and the data or other information collected or used by it. The commissioner may examine those records at any reasonable time to determine whether the activities of the insurer, advisory organization or plan for apportioned risks comply with the provisions of this chapter and chapters 616 and 617 of NRS. These records must be maintained in an office in this state or must be made available to the commissioner for his examination or inspection at any time after reasonable notice to the insurer, advisory organization or plan for apportioned risks.
Sec. 169. 1. The commissioner may examine any insurer, advisory organization or plan for apportioned risks whenever he determines that such an examination is necessary.
2. The reasonable cost of an examination must be paid by the person examined upon presentation by the commissioner of an accounting of those costs pursuant to NRS 679B.290.
3. In lieu of an examination, the commissioner may accept the report of an examination made by the agency of another state that regulates insurance.
Sec. 170. Any person aggrieved by any decision, action or omission of the advisory organization or an insurer regarding rates or other information filed with the commissioner may request in writing that the organization or insurer reconsider the decision, action or omission. If the request for reconsideration is rejected or is not acted upon within 30 days by the organization or insurer, the person requesting reconsideration may, within 30 days thereafter, appeal from the decision, action or omission to the commissioner by filing a written complaint and request for a hearing specifying the grounds relied upon.
Sec. 171. Any insurer or advisory organization, to which is directed any order made or action taken by the commissioner without a hearing, may request a hearing before the commissioner.
Sec. 172. A hearing required by any of the provisions of sections 142 to 176, inclusive, of this act is governed by NRS 679B.310 to 679B.370, inclusive, except that any limits of time imposed by sections 142 to 176, inclusive, of the act control.
κ1995 Statutes of Nevada, Page 2055 (CHAPTER 580, AB 552)κ
Sec. 173. The commissioner may, after notice and hearing, revoke or suspend the license of an advisory organization for failure to comply with the provisions of this chapter.
Sec. 174. 1. A person who violates any provision of sections 142 to 176, inclusive, of this act, shall, upon the order of the commissioner, pay an administrative fine not to exceed $1,000 for each violation and not to exceed $10,000 for each willful violation. These administrative fines are in addition to any other penalty provided by law. Any insurer using a rate before it has been filed with the commissioner as required by section 162 of this act, shall be deemed to have committed a separate violation for each day the insurer failed to file the rate.
2. The commissioner may suspend or revoke the license of any advisory organization or insurer who fails to comply with an order within the time specified by the commissioner or any extension of that time made by the commissioner. Any suspension of a license is effective for the time stated by the commissioner in his order or until the order is modified, rescinded or reversed.
3. The commissioner, by written order, may impose a penalty or suspend a license pursuant to this section only after written notice to the insurer, organization or plan for apportioned risks and a hearing.
Sec. 175. An insurer or other person shall not willfully withhold information from, or knowingly give false or misleading information to, the commissioner or to the advisory organization, which will affect the rates, classifications of risks or uniform statistical plan for industrial insurance.
Sec. 176. No insurer or rating organization or member thereof in its capacity as a member or officer or employee of the licensed rating organization when acting within the scope of his employment is liable for injury or death or other damage proximately caused by a failure to inspect, or the manner or extent of inspection of, an employers locations, plants or operations for classification, control of losses or rating, or by that persons comment or failure to comment on the subject matter or object of the inspection.
Sec. 177. NRS 686B.020 is hereby amended to read as follows:
686B.020 As used in NRS 686B.010 to 686B.175, inclusive, and sections 142 to 176, inclusive, of this act, unless the context otherwise requires:
1. Advisory organization, except as limited by section 144 of this act, means any person or organization which is controlled by or composed of two or more insurers and which engages in activities related to rate making. For the purposes of this subsection, two or more insurers with common ownership or operating in this state under common ownership constitute a single insurer. An advisory organization does not include:
(a) A joint underwriting association;
(b) An actuarial or legal consultant; or
(c) An employee or manager of an insurer.
2. Market segment means any line or kind of insurance or, if it is described in general terms, any subdivision thereof or any class of risks or combination of classes.
[2.] 3. Rate service organization means any person, other than an employee of an insurer, who assists insurers in rate making or filing by:
(a) Collecting, compiling and furnishing loss or expense statistics;
κ1995 Statutes of Nevada, Page 2056 (CHAPTER 580, AB 552)κ
(b) Recommending, making or filing rates or supplementary rate information; or
(c) Advising about rate questions, except as an attorney giving legal advice.
[3.] 4. Supplementary rate information includes any manual or plan of rates, statistical plan, classification, rating schedule, minimum premium, policy fee, rating rule, rule of underwriting relating to rates and any other information prescribed by [rule] regulation of the commissioner.
Sec. 178. NRS 686B.030 is hereby amended to read as follows:
686B.030 1. Except as otherwise provided in subsection 2, NRS 686B.010 to 686B.175, inclusive, [applies] and sections 142 to 176, inclusive, of this act, apply to all kinds and lines of direct insurance written on risks or operations in this state by any insurer authorized to do business in this state, except:
(a) Ocean marine insurance;
(b) [Workmens compensation insurance;
(c)] Contracts issued by fraternal benefit societies;
[(d)] (c) Life insurance and credit life insurance;
[(e)] (d) Variable and fixed annuities;
[(f)] (e) Group and blanket health insurance and credit health insurance;
[(g)] (f) Property insurance for business and commercial risks; and
[(h)] (g) Casualty insurance for business and commercial risks other than insurance covering the liability of a practitioner licensed pursuant to chapters 630 to 640, inclusive, of NRS.
2. The exclusions set forth in paragraphs [(g) and (h)] (f) and (g) of subsection 1 extend only to issues related to the determination or approval of premium rates.
Secs. 179-181. (Deleted by amendment.)
Sec. 182. NRS 686B.130 is hereby amended to read as follows:
686B.130 1. A rate service organization and an advisory organization shall not provide any service relating to the rates of any insurance subject to NRS 686B.010 to 686B.175, inclusive, and sections 142 to 176, inclusive, of this act and an insurer shall not utilize the services of an organization for such purposes unless the organization has obtained a license [under] pursuant to NRS 686B.140.
2. A rate service organization and an advisory organization shall not refuse to supply any services for which it is licensed in this state to any insurer authorized to do business in this state and offering to pay the fair and usual compensation for the services.
Sec. 183. NRS 686B.140 is hereby amended to read as follows:
686B.140 1. A rate service organization or an advisory organization applying for a license as required by NRS 686B.130 must include with its application:
(a) A copy of its constitution, charter, articles of organization, agreement, association or incorporation, and a copy of its bylaws, plan of operation and any other rules or regulations governing the conduct of its business;
(b) A list of its membership and subscribers;
(c) The name and address of one or more residents of this state upon whom notices, process affecting it or orders of the commissioner may be served;
κ1995 Statutes of Nevada, Page 2057 (CHAPTER 580, AB 552)κ
(d) A statement showing its technical qualifications for acting in the capacity for which it seeks a license;
(e) Any other relevant information and documents that the commissioner may require; and
(f) The applicable fee.
2. Every organization which has applied for a license [under] pursuant to subsection 1 shall thereafter promptly notify the commissioner of every material change in the facts or in the documents on which its application was based.
3. If the commissioner finds that the applicant and the natural persons through whom it acts are competent, trustworthy and technically qualified to provide the services proposed, and that all requirements of law are met, he shall issue a license specifying the authorized activity of the applicant. He shall not issue a license if the proposed activity would tend to create a monopoly or to lessen or destroy [price competition.] competition in prices.
4. A license issued pursuant to this section continues in effect until the licensee leaves the state or until the license is suspended, revoked or otherwise terminated. A license may be renewed by payment of the applicable fee for renewal to the commissioner on or before the last day on which it is renewable.
5. A license which is not renewed annually expires on March 1. The commissioner may accept a request for renewal received by him within 30 days after the expiration of the license if the request is accompanied by a fee for renewal of 150 percent of the fee otherwise required.
6. Any amendment to a document filed [under] pursuant to paragraph (a) of subsection 1 must be filed at least 30 days before it becomes effective. Failure to comply with this subsection is a ground for revocation of the license granted [under] pursuant to subsection 3.
Sec. 184. NRS 687A.020 is hereby amended to read as follows:
687A.020 Except as otherwise provided in subsection 4 of NRS 695E.200, this chapter applies to all direct insurance, except:
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 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. 185. NRS 687A.060 is hereby amended to read as follows:
687A.060 1. The association [shall:
(a) Be] :
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(a) Is obligated to the extent of the covered claims existing [prior to] before the determination of insolvency and arising within 30 days after the determination of insolvency, or before the policy expiration date if less than 30 days after the determination, or before the insured replaces the policy or on request [effects cancellation] cancels the policy if he does so within 30 days of the determination. The obligation [must include] includes only that amount of each covered claim for unearned premiums , except a claim filed pursuant to chapter 616 or 617 of NRS, which is more than $100. The obligation must also include that amount of any other covered claim, except a claim filed pursuant to chapter 616 or 617 of NRS, which is less than $300,000. [In no event is the] The association is not obligated to a policyholder or claimant in an amount in excess of the face amount of the policy from which the claim arises.
(b) [Be] Shall be deemed the insurer to the extent of its obligations on the covered claims and to such extent shall have all rights, duties and obligations of the insolvent insurer as if the insurer had not become insolvent.
(c) [Assess] Shall assess member insurers amounts necessary to pay the obligations of the association [under] pursuant to paragraph (a) [of this subsection subsequent to] after an insolvency, the expenses of handling covered claims subsequent to an insolvency, the cost of examinations [under] pursuant to NRS 687A.110, and other expenses authorized by this chapter. The assessment of each member insurer must be in the proportion that the net direct written premiums of the member insurer for the calendar year preceding the assessment bear to the net direct written premiums of all member insurers for the same calendar year. Each member insurer [shall] must be notified of the assessment not later than 30 days before it is due. No member insurer may be assessed in any year an amount greater than 2 percent of that member insurers net direct written premiums for the calendar year preceding the assessment. If the maximum assessment, together with the other assets of the association, does not provide in any 1 year an amount sufficient to make all necessary payments, the [funds] money available may be prorated and the unpaid portion [shall] must be paid as soon as [funds become] money becomes available. The association may pay claims in any order including the order in which they are received or in groups or categories. The association may exempt or defer, in whole or in part, the assessment of any member insurer if the assessment would cause the member insurers financial statement to reflect amounts of capital or surplus less than the minimum amounts required for a certificate of authority by any jurisdiction in which the member insurer is authorized to transact insurance. During the period of deferment, no dividends may be paid to shareholders or policyholders. Deferred assessments must be paid when payment will not reduce capital or surplus below required minimums. Payments must be refunded to those companies receiving larger assessments by virtue of deferment, or, in the discretion of any such company, credited against future assessments. Each member insurer must be allowed a premium tax credit for any amounts paid under this chapter.
(1) For assessments made before January 1, 1993, at the rate of 10 percent per year for 10 successive years beginning March 1, 1996; or
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(2) For assessments made on or after January 1, 1993, at the rate of 20 percent per year for 5 successive years beginning with the calendar year following the calendar year in which such assessments are paid.
(d) [Investigate] Shall investigate claims brought against the fund and adjust, compromise, settle and pay covered claims to the extent of the associations obligation and deny all other claims.
(e) [Notify] Shall notify such persons as the commissioner directs [under] pursuant to paragraph (a) of subsection 2 of NRS 687A.080.
(f) [Process] Shall act on claims through its employees or through one or more member insurers or other persons designated as servicing facilities. Designation of a servicing facility is subject to the approval of the commissioner, but [such] the designation may be declined by a member insurer.
(g) [Reimburse] Shall reimburse each servicing facility for obligations of the association paid by the facility and for expenses incurred by the facility while handling claims on behalf of the association, and pay the other expenses of the association authorized by this chapter.
2. The association may:
(a) Appear in, defend and appeal any action on a claim brought against the association.
(b) Employ or retain persons necessary to handle claims and perform other duties of the association.
(c) Borrow [funds necessary to effect] money necessary to carry out the purposes of this chapter in accord with the plan of operation.
(d) Sue or be sued.
(e) Negotiate and become a party to contracts necessary to carry out the purposes of this chapter.
(f) Perform other acts necessary or proper to effectuate the purposes of this chapter.
(g) If, at the end of any calendar year, the board of directors finds that the assets of the association exceed its liabilities as estimated by the board of directors for the coming year, refund to the member insurers in proportion to the contribution of each that amount by which the assets of the association exceed the liabilities.
(h) Assess each member insurer equally no more than $100 per year for administrative expenses not related to the insolvency of any particular insurer.
Sec. 186. Chapter 690B of NRS is hereby amended by adding thereto a new section to read as follows:
1. Any casualty insurer may provide industrial insurance pursuant to the general provisions of chapters 616 and 617 of NRS concerning the respective rights and obligations of employees and their employers, if the insurer:
(a) Has a certificate of authority issued by the commissioner pursuant to chapter 680A of NRS; and
(b) Is specifically qualified pursuant to paragraph (c) of subsection 1 of NRS 681A.020.
2. The insurance may be purchased by qualified employers to secure the payment of compensation for employees injured in the course of employment.
3. The employer shall bear the costs for private insurance.
κ1995 Statutes of Nevada, Page 2060 (CHAPTER 580, AB 552)κ
Sec. 186.5. Section 11 of Assembly Bill No. 35 of this session is hereby amended to read as follows:
Sec. 11. 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. Purchasing division means the purchasing division of the department of administration.
4. Request for a proposal means a statement which sets forth the requirements and specifications of a contract to be awarded by competitive selection.
5. Using agencies means all officers, departments, institutions, boards, commissioners 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.
6. Volunteer fire department means a volunteer fire department which pays premiums for industrial insurance pursuant to the provisions of chapter 616 of NRS.
Sec. 187. NRS 616.175, 616.380, 616.397, 616.4972, 616.4973, 616.4974, 616.4975, 616.4976, 616.4977, 616.4978, 616.4979, 616.498, 616.4981, 616.4982, 616.49831, 616.4984, 616.4985, 616.4986, 616.4988, 616.499, 616.5014, 617.285 and 617.300 are hereby repealed.
Sec. 188. The provisions of subsection 1 of NRS 354.599 do not apply to any additional expenses of a local government which are related to the provisions of this act.
Secs. 189-192. (Deleted by amendment.)
Sec. 193. Each employer paying premiums to the state industrial insurance system pursuant to chapters 616 and 617 of NRS on July 1, 1999, remains insured under the system until that employer elects to self-insure, join an association of self-insured private or public employers or purchase industrial insurance pursuant to this act.
Sec. 194. Within a reasonable time after the passage and approval of this act, the state industrial insurance system shall provide the following records of the system and the Nevada industrial commission to the advisory organization designated by the commissioner of insurance:
1. Records of accidents and loss experience;
2. Records concerning the system of classification of risks; and
3. Any other data requested by the advisory organization to prepare the filings required by this act.
The advisory organization shall reimburse the system for the actual cost of reproducing and delivering of those records and data.
κ1995 Statutes of Nevada, Page 2061 (CHAPTER 580, AB 552)κ
Sec. 195. The commissioner of insurance shall adopt a regulation within 5 months after the passage and approval of this act to establish a schedule of dates for the:
1. Licensing and designation of an advisory organization;
2. Review by the commissioner, the state industrial insurance system and private carriers of the initial filing; and
3. Filing of rates by private carriers and the system with the commissioner.
Sec. 196. The commissioner of insurance shall report quarterly to the director of the legislative counsel bureau the decisions made and the progress of all activities supervised by him which are necessary to permit private carriers to provide industrial insurance in this state.
Sec. 197. 1. This section and sections 25 to 36, inclusive, 44, 86, 119, 127, 128, 186.5, 188, 194, 195 and 196 of this act become effective upon passage and approval.
2. Section 68 of this act becomes effective at 12:01 a.m. on July 1, 1995.
3. The remaining sections of this act become effective:
(a) Upon passage and approval for the purposes of:
(1) The adoption of regulations by the commissioner of insurance and the administrator of the division of industrial relations of the department of business and industry.
(2) The qualification of private carriers to sell industrial insurance.
(3) The designation of a licensed advisory organization by the commissioner and the initial filing of classifications of risk, the uniform plan for rating experience and the uniform statistical plan, by that organization.
(4) The inspection of the records of the system, the Nevada industrial commission and the administrator with respect to the self-insured employers, by the commissioner and the advisory organization.
(5) The filing, by private carriers and the system, of rates to be used by them.
(b) For all other purposes on July 1, 1999.
________
κ1995 Statutes of Nevada, Page 2062κ
Assembly Bill No. 597Assemblyman Hettrick
CHAPTER 581
AN ACT relating to works of construction; authorizing certain cities and counties to allow the use of independent contractors to review the plans for and inspect buildings; limiting the provisions giving a preference to certain contractors on public works projects; and providing other matters properly relating thereto.
[Approved July 5, 1995]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 278 of NRS is hereby amended by adding thereto a new section to read as follows:
The governing body of a city or county which, pursuant to NRS 278.570, appoints a building inspector or authorizes an administrative official of the city or county to assume the functions of that position, may establish a program to allow independent contractors to review plans for and inspect buildings on behalf of that building inspector or administrative official.
Sec. 2. NRS 278.010 is hereby amended to read as follows:
278.010 As used in NRS 278.010 to 278.630, inclusive, and section 1 of this act, unless the context otherwise requires, the words and terms defined in NRS 278.011 to 278.0195, inclusive, have the meanings ascribed to them in those sections.
Sec. 3. NRS 338.147 is hereby amended to read as follows:
338.147 1. A public body shall award a contract for a public work to the contractor who submits the best bid.
2. Except as otherwise provided [by] in subsection 4 or limited by subsection 5, for the purposes of this section, a contractor who:
(a) Has been found to be a responsible contractor by the public body; and
(b) At the time he submits his bid, provides to the public body proof of the payment of:
(1) The sales and use taxes imposed pursuant to chapters 372, 374 and 377 of NRS on materials used for construction of not less than $5,000 for each consecutive 12-month period for 60 months immediately preceding the submission of his bid;
(2) The motor vehicle privilege tax imposed pursuant to chapter 371 of NRS on the vehicles used in the operation of his business of not less than $5,000 for each consecutive 12-month period for 60 months immediately preceding the submission of his bid; or
(3) Any combination of such sales and use taxes and motor vehicle privilege tax,
shall be deemed to have submitted a better bid than a competing contractor who has not provided proof of the payment of those taxes if the amount of his bid is not more than 5 percent higher than the amount bid by the competing contractor.
3. A contractor who has previously provided the public body awarding a contract with the proof of payment required pursuant to subsection 2 may update such proof on or before April 1, July 1, September 1 and December 1 rather than with each bid.
κ1995 Statutes of Nevada, Page 2063 (CHAPTER 581, AB 597)κ
4. If any federal statute or regulation precludes the granting of federal assistance or reduces the amount of that assistance for a particular public work because of the provisions of subsection 2, those provisions do not apply insofar as their application would preclude or reduce federal assistance for that work. The provisions of subsection 2 do not apply to any contract for a public work which is expected to cost less than $250,000.
5. Except as otherwise provided in subsection 6, if a bid is submitted by two or more contractors as a joint venture or by one of them as a joint venturer, the provisions of subsection 2 apply only if both or all of the joint venturers separately meet the requirements of that subsection.
6. Except as otherwise provided in subsection 8, if a bid is submitted by a joint venture and one or more of the joint venturers has responsibility for the performance of the contract as described in subsection 7, the provisions of subsection 2 apply only to those joint venturers who have such responsibility.
7. For the purposes of subsection 6, a joint venturer has responsibility for the performance of a contract if he has at least one of the following duties or obligations delegated to him in writing in the contract creating the joint venture:
(a) Supplying the labor necessary to perform the contract and paying the labor and any related taxes and benefits;
(b) Supplying the equipment necessary to perform the contract and paying any charges related to the equipment;
(c) Contracting with and making payments to any subcontractors; or
(d) Performing the recordkeeping for the joint venture and making any payments to persons who provide goods or services related to the performance of the contract.
8. The provisions of subsection 6 do not apply to a joint venture which is formed for the sole purpose of circumventing any of the requirements of this section.
Sec. 4. Section 2 of Senate Bill No. 504 of this session is hereby amended to read as follows:
Sec. 2. NRS 278.010 is hereby amended to read as follows:
278.010 As used in NRS 278.010 to 278.630, inclusive, [and] section 1 of [this act,] Assembly Bill No. 597 of this session and section 1 of this act, unless the context otherwise requires, the words and terms defined in NRS 278.011 to 278.0195, inclusive, have the meanings ascribed to them in those sections.
Sec. 5. This act becomes effective upon passage and approval.
________
κ1995 Statutes of Nevada, Page 2064κ
Assembly Bill No. 703Committee on Government Affairs
CHAPTER 582
AN ACT relating to elections; authorizing a city of the second or third class to be organized without municipal wards; requiring that the councilmen of such a city be elected by the voters of the city at large; and providing other matters properly relating thereto.
[Approved July 5, 1995]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 266.095 is hereby amended to read as follows:
266.095 1. Each incorporated city of the first class must be divided into eight municipal wards. [Each incorporated city of the second class or third class] If an incorporated city of the second or third class is divided into municipal wards, the city must be divided into three or five municipal wards as provided by ordinance.
2. The division of cities into wards must, during the incorporation thereof, be made by the board of county commissioners. The wards must as nearly as practicable be of equal population and in compact form.
3. Once established, the boundaries of wards must be changed by ordinance of the city council whenever, as determined at the close of registration before each general election, the number of registered voters in any ward exceeds the number of registered voters in any other ward by more than 5 percent.
Sec. 2. NRS 266.215 is hereby amended to read as follows:
266.215 Councilmen [shall] must be:
1. Qualified electors within their respective cities and [shall have been actually] bona fide residents thereof for a period of at least 1 year next preceding their election.
2. [Qualified] Except as otherwise provided in NRS 266.220, qualified electors within their respective wards.
Sec. 3. NRS 266.220 is hereby amended to read as follows:
266.220 1. Except as otherwise provided in subsection 3, councilmen must be chosen by the qualified electors of their respective wards.
2. In cities of the first class, the city council must be composed of nine councilmen, one from each ward and one elected by the electors of the city at large. [In cities]
3. If pursuant to an ordinance, a city of the second or third class [,] is:
(a) Divided into wards, the city council must be composed of three or five councilmen [as the city council shall provide by ordinance, but there must be one councilman from each ward.
3. In cities of the second and third classes, the council may by ordinance provide that councilmen be voted upon by the electors of the city at large, but reside in the ward to be represented by them. If the council adopts such an ordinance, the ordinance may not be amended or repealed until at least two consecutive elections have been conducted pursuant to the ordinance.] with one councilman from each ward who is elected only by the electors who reside in that ward.
κ1995 Statutes of Nevada, Page 2065 (CHAPTER 582, AB 703)κ
(b) Not divided into wards, the councilmen of the city must be elected by the voters of the city at large.
Sec. 4. NRS 293.640 is hereby amended to read as follows:
293.640 1. A general city election must be held in each city of the third class on the [1st] first Tuesday after the [1st] first Monday in June of the first odd-numbered year after incorporation, and on the same day every 2 years thereafter as determined by ordinance.
2. There must be one mayor and three or five councilmen, as the city council shall provide by ordinance, for each city of the third class. The terms of office of the mayor and the councilmen are 4 years, which terms must be staggered. The mayor and councilmen elected to office immediately after incorporation shall decide by lot among themselves which two of their offices expire at the next general city election, and thereafter the terms of office must be 4 years. If a city council thereafter increases the number of councilmen, it shall, by lot, stagger the initial terms of the additional members.
3. A candidate for any office to be voted for at the general city election must file an affidavit of candidacy with the city clerk not less than 30 nor more than 40 days before the day of the general city election. The city clerk shall charge and collect from the candidate and the candidate shall pay to the city clerk, at the time of filing the affidavit of candidacy, a filing fee in an amount fixed by the city council by ordinance.
4. Candidates for mayor must be voted upon by the electors of the city at large. Candidates for councilmen must be voted upon by the electors of their respective wards to represent the wards in which they reside [,] or by the electors of the city at large [to represent the wards in which they reside,] in accordance with the provisions of chapter 266 of NRS.
________
Senate Bill No. 199Committee on Finance
CHAPTER 583
AN ACT making an appropriation to the fund to stabilize the operation of the state government; and providing other matters properly relating thereto.
[Approved July 5, 1995]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. There is hereby appropriated from the state general fund to the fund to stabilize the operation of the state government created pursuant to NRS 353.288 the sum of $81,942,218 to increase the balance of the fund to the statutory maximum of $100,000,000.
Sec. 2. This act becomes effective upon passage and approval or on June 30, 1995, whichever occurs earlier.
________
κ1995 Statutes of Nevada, Page 2066κ
Senate Bill No. 312Senator Jacobsen
CHAPTER 584
AN ACT relating to parole; requiring a law enforcement agency to make available for public inspection certain information concerning persons who are eligible for parole; requiring a prisoner to specify in his application for parole or proposed plan for placement upon release the county in which he will reside if he is to be paroled in Nevada; authorizing a peace officer to detain a person he reasonably believes is violating the conditions of parole or probation; and providing other matters properly relating thereto.
[Approved July 5, 1995]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 213.1085 is hereby amended to read as follows:
213.1085 1. The board shall appoint an executive secretary, who [shall be] is in the unclassified service of the state.
2. The executive secretary [shall] must be selected on the basis of his training, experience, capacity and interest in correctional services.
3. The board shall supervise the activities of the executive secretary.
4. The executive secretary [shall be] is the secretary of the board and shall perform such duties in connection therewith as the board may require, including , but not limited to , preparing the agenda for board meetings and answering correspondence from prisoners in the state prison.
5. The executive secretary shall prepare a list at least 30 days before any scheduled action by the board showing each person then eligible for parole indicating:
(a) The name of the prisoner;
(b) The crime for which he was convicted;
(c) The county in which he was sentenced;
(d) The date of the sentence;
(e) The length of the sentence;
(f) The amount of time actually served in the state prison;
(g) The amount of credit for time previously served in a county jail; and
(h) The amount of credit allowed for good behavior.
The executive secretary shall send copies to all law enforcement agencies in Nevada and to other persons whom he deems appropriate, at least 30 days before any scheduled action by the board. Each law enforcement agency that receives the list shall make the list available for public inspection during normal business hours.
Sec. 2. NRS 213.1098 is hereby amended to read as follows:
213.1098 [All] Except as otherwise provided in NRS 213.1085, all information obtained in the discharge of official duty by a parole and probation officer or employee of the board is privileged and may not be disclosed directly or indirectly to anyone other than the board, the judge, district attorney or others entitled to receive such information, unless otherwise ordered by the board or judge or [unless] necessary to perform the duties of the division.
κ1995 Statutes of Nevada, Page 2067 (CHAPTER 584, SB 312)κ
Sec. 3. NRS 213.1099 is hereby amended to read as follows:
213.1099 1. Except as otherwise provided in this section and NRS 213.1215, the board may release on parole a prisoner otherwise eligible for parole under NRS 213.107 to 213.160, inclusive, and section 5 of [this act.] Senate Bill No. 61 of this session.
2. In determining whether to release a prisoner on parole, the board shall consider:
(a) Whether there is a reasonable probability that the prisoner will live and remain at liberty without violating the laws;
(b) Whether the release is incompatible with the welfare of society;
(c) The seriousness of the offense and the history of criminal conduct of the prisoner; [and]
(d) The standards adopted pursuant to NRS 213.10987 and the recommendation, if any, of the chief parole and probation officer [.] ; and
(e) Any documents or testimony submitted by a victim notified pursuant to NRS 213.130.
3. When a person is convicted of any felony and is punished by a sentence of imprisonment, he remains subject to the jurisdiction of the board from the time he is released on parole under the provisions of this chapter until the expiration of the term of imprisonment imposed by the court less any good time or other credits earned against the term.
4. Except as otherwise provided in NRS 213.1215, the board may not release on parole a prisoner whose sentence to death or to life without possibility of parole has been commuted to a lesser penalty unless it finds that the prisoner has served at least 20 consecutive years in the state prison, is not under an order that he be detained to answer for a crime or violation of parole or probation in another jurisdiction, and that he has no history of:
(a) Recent misconduct in the institution, and that he has been recommended for parole by the director of the department of prisons;
(b) Repetitive criminal conduct;
(c) Criminal conduct related to the use of alcohol or drugs;
(d) Repetitive sexual deviance, violence or aggression; or
(e) Failure in parole, probation, work release or similar programs.
5. In determining whether to release a prisoner on parole pursuant to this section, the board shall not consider whether the prisoner will soon be eligible for release pursuant to NRS 213.1215.
Sec. 4. NRS 213.130 is hereby amended to read as follows:
213.130 1. A prisoner sentenced to imprisonment in the state prison may apply to the board for parole. The application must be made on a form prescribed by the board and must contain [such data as] :
(a) The county in which the prisoner will reside, if the prisoner will be paroled in Nevada; and
(b) Other data that will assist the board in determining whether parole should be granted.
The secretary of the board shall furnish any prisoner an application form upon request.
2. Meetings for the purpose of considering applications for parole may be held semiannually or more often, on such dates as may be fixed by the board. All meetings must be open to the public.
κ1995 Statutes of Nevada, Page 2068 (CHAPTER 584, SB 312)κ
3. The victim of any person applying for parole may submit documents to the board and may testify at the meeting held to consider the application. [No] An application for parole [may] must not be considered until the board has notified the victim of his rights pursuant to this subsection and he is given the opportunity to exercise those rights, if he so requests in writing and provides his current address. If a current address is not provided, the board [may] must not be held responsible if such notification is not received by the victim.
4. The board may deliberate in private after a public meeting held to consider an application for parole.
5. The board of state prison commissioners shall provide suitable and convenient rooms or space for use of the board.
6. For the purposes of this section, victim has the meaning ascribed to it in NRS 213.005.
Sec. 5. NRS 213.140 is hereby amended to read as follows:
213.140 1. Whenever any prisoner becomes eligible for parole pursuant to this chapter or the regulations adopted pursuant to this chapter, the board shall consider and may authorize his release on parole as provided in NRS 213.110 and elsewhere in this chapter, irrespective of whether he has applied to the board for parole. If the prisoner has not made such an application before any regular meeting of the board, the secretary of the board shall prepare the application and present it to the board. The board may authorize the release of a prisoner on parole whether or not parole is accepted by the prisoner.
2. If the release of a prisoner on parole is authorized by the board, the division shall:
(a) Review and, if appropriate, approve each prisoners proposed plan for placement upon release; or
(b) If his plan is not approved by the division, assist the prisoner to develop a plan for his placement upon release,
before he is released on parole. The prisoners proposed plan must identify the county in which the prisoner will reside if the prisoner will be paroled in Nevada.
3. The board may adopt any regulations necessary or convenient to carry out this section.
Sec. 6. NRS 171.123 is hereby amended to read as follows:
171.123 1. Any peace officer may detain any person whom the officer encounters under circumstances which reasonable indicate that the person has committed, is committing or is about to commit a crime.
2. Any peace officer may detain any person the officer encounters under circumstances which reasonably indicate that the person has violated or is violating the conditions of his parole or probation.
3. The officer may detain the person pursuant to this section only to ascertain his identity and the suspicious circumstances surrounding his presence abroad. Any person so detained shall identify himself, but may not be compelled to answer any other inquiry of any peace officer.
[3. No person may]
4. A person must not be detained longer than is reasonably necessary to effect the purposes of this section, and in no event longer than 60 minutes.
κ1995 Statutes of Nevada, Page 2069 (CHAPTER 584, SB 312)κ
The detention [may] must not extend beyond the place or the immediate vicinity of the place where the detention was first effected, unless the person is arrested.
Sec. 7. NRS 179A.070 is hereby amended to read as follows:
179A.070 1. Record of criminal history means information contained in records collected and maintained by agencies of criminal justice, the subject of which is a natural person, consisting of descriptions which identify the subject and notations of arrests, detention, indictments, informations or other formal criminal charges and dispositions of charges, including dismissals, acquittals, convictions, sentences, correctional supervision occurring in Nevada [.] , and information concerning the status of an offender on parole or probation. The term includes only information contained in memoranda of formal transactions between a person and an agency of criminal justice in this state. The term is intended to be equivalent to the phrase criminal history record information as used in federal regulations.
2. Record of criminal history does not include:
(a) Investigative or intelligence information, reports of crime or other information concerning specific persons collected in the course of the enforcement of criminal laws.
(b) Information concerning juveniles.
(c) Posters, announcements or lists intended to identify fugitives or wanted persons and aid in their apprehension.
(d) Original records of entry maintained by agencies of criminal justice if the records are chronological and not cross-indexed in any other way.
(e) Records of application for and issuance, suspension, revocation or renewal of occupational licenses, including permits to work in the gaming industry.
(f) Court indices and records of public judicial proceedings, court decisions and opinions, and information disclosed during public judicial proceedings.
(g) Records of traffic violations constituting misdemeanors.
(h) Records of traffic offenses maintained by the department to regulate the issuance, suspension, revocation or renewal of drivers or other operators licenses.
(i) Announcements of actions by the state board of pardons commissioners and the state board of parole commissioners [.] , except information concerning the status of an offender on parole or probation.
(j) Records which originated in an agency other than an agency of criminal justice in this state.
Sec. 8. Section 1 of Senate Bill No. 373 of this session is hereby amended to read as follows:
Section 1. NRS 213.130 is hereby amended to read as follows:
213.130 1. A prisoner sentenced to imprisonment in the state prison may apply to the board for parole. The application must be made on a form prescribed by the board and must contain:
(a) The county in which the prisoner will reside, if the prisoner will be paroled in Nevada; and
(b) Other data that will assist the board in determining whether parole should be granted.
κ1995 Statutes of Nevada, Page 2070 (CHAPTER 584, SB 312)κ
The secretary of the board shall furnish any prisoner an application form upon request.
2. Meetings for the purpose of considering applications for parole may be held semiannually or more often, on such dates as may be fixed by the board. All meetings must be open to the public.
3. Not later than 5 days after the date on which the board fixes the date of the meeting to consider the application of a prisoner for parole, the board shall notify the victim of the prisoner whose application is being considered of the date of the meeting and of his rights pursuant to this subsection, if the victim has requested notification in writing and has provided his current address or if the victims current address is otherwise known by the board. The victim of any person applying for parole may submit documents to the board and may testify at the meeting held to consider the application. An application for parole must not be considered until the board has notified [the] any victim of his rights pursuant to this subsection and he is given the opportunity to exercise those rights . [, if he so requests in writing and provides his current address.] If a current address is not provided [,] to or otherwise known by the board, the board must not be held responsible if such notification is not received by the victim.
4. The board may deliberate in private after a public meeting held to consider an application for parole.
5. The board of state prison commissioners shall provide suitable and convenient rooms or space for use of the board.
6. If a victim is notified of a meeting to consider an application for parole pursuant to subsection 3, the board shall, upon making a final decision concerning the application, notify the victim of its final decision.
7. For the purposes of this section, victim has the meaning ascribed to it in NRS 213.005.
Sec. 9. Section 12 of Senate Bill No. 192 of this session is hereby amended to read as follows:
Sec. 12. NRS 213.1099 is hereby amended to read as follows:
213.1099 1. Except as otherwise provided in this section and NRS 213.1215, the board may release on parole a prisoner otherwise eligible for parole under NRS 213.107 to 213.160, inclusive, and section 5 of Senate Bill No. 61 of this session.
2. In determining whether to release a prisoner on parole, the board shall consider:
(a) Whether there is a reasonable probability that the prisoner will live and remain at liberty without violating the laws;
(b) Whether the release is incompatible with the welfare of society;
(c) The seriousness of the offense and the history of criminal conduct of the prisoner;
(d) The standards adopted pursuant to NRS 213.10987 and the recommendation, if any, of the chief ; [parole and probation officer;] and
(e) Any documents or testimony submitted by a victim notified pursuant to NRS 213.130.
κ1995 Statutes of Nevada, Page 2071 (CHAPTER 584, SB 312)κ
3. When a person is convicted of any felony and is punished by a sentence of imprisonment, he remains subject to the jurisdiction of the board from the time he is released on parole under the provisions of this chapter until the expiration of the term of imprisonment imposed by the court less any good time or other credits earned against the term.
4. Except as otherwise provided in NRS 213.125, the board may not release on parole a prisoner whose sentence to death or to life without possibility of parole has been commuted to a lesser penalty unless it finds that the prisoner has served at least 20 consecutive years in the state prison, is not under an order [that he] to be detained to answer for a crime or violation of parole or probation in another jurisdiction, and that he has no history of:
(a) Recent misconduct in the institution, and that he has been recommended for parole by the director of the department of prisons;
(b) Repetitive criminal conduct;
(c) Criminal conduct related to the use of alcohol or drugs;
(d) Repetitive sexual deviance, violence or aggression; or
(e) Failure in parole, probation, work release or similar programs.
5. In determining whether to release a prisoner on parole pursuant to this section, the board shall not consider whether the prisoner will soon be eligible for release pursuant to NRS 213.1215.
6. The board shall not release on parole a sex offender until the law enforcement agency in whose jurisdiction a sex offender will be released on parole has been provided an opportunity to give the notice required by the attorney general pursuant to section 10 of this act.
Sec. 10. The amendatory provisions of section 3 of this act do not apply to offenders sentenced before July 1, 1995.
Sec. 11. This act becomes effective on July 1, 1995.
________
κ1995 Statutes of Nevada, Page 2072κ
Senate Bill No. 403Committee on Commerce and Labor
CHAPTER 585
AN ACT relating to real estate transactions; requiring a person licensed as a real estate broker, real estate broker-salesman or real estate salesman to disclose certain information to each party to a real estate transaction; requiring such a licensee who represents more than one party to a real estate transaction to obtain the written consent of each party to the transaction before he may continue to act in his capacity as an agent; requiring such a licensee to perform certain duties for his client; requiring the real estate division of the department of business and industry to prepare certain forms which disclose the duties owed by such licensees; and providing other matters properly relating thereto.
[Approved July 5, 1995]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 645 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 11, inclusive, of this act.
Sec. 2. Brokerage agreement means an oral or written contract between a client and a licensee in which the licensee agrees to accept valuable consideration from the client or another person for assisting, soliciting or negotiating the sale, purchase, option, rental or lease of real property.
Sec. 3. Client means a person who has entered into a brokerage agreement with a licensee.
Sec. 4. A licensee is not required to comply with any principles of common law that may otherwise apply to any of the duties of the licensee as set forth in sections 5, 6 and 7 of this act and the regulations adopted to carry out those sections.
Sec. 5. A licensee who acts as an agent in a real estate transaction:
1. Shall disclose to each party to the real estate transaction as soon as is practicable:
(a) Any material and relevant facts, data or information which he knows, or which by the exercise of reasonable care and diligence he should have known, relating to the property which is the subject of the transaction.
(b) Each source from which he will receive compensation as a result of the transaction.
(c) That he is a principal to the transaction or has an interest in a principal to the transaction.
(d) Except as otherwise provided in section 6 of this act, that he is acting for more than one party to the transaction. If a licensee makes such a disclosure, he must obtain the written consent of each party to the transaction for whom he is acting before he may continue to act in his capacity as an agent. The written consent must include:
(1) A description of the real estate transaction.
(2) A statement that the licensee is acting for two or more parties to the transaction who have adverse interests and that in acting for these parties, the licensee has a conflict of interest.
(3) A statement that the licensee will not disclose any confidential information for 1 year after the revocation or termination of any brokerage agreement entered into with a party to the transaction, unless he is required to do so by a court of competent jurisdiction or he is given written permission to do so by that party.
κ1995 Statutes of Nevada, Page 2073 (CHAPTER 585, SB 403)κ
to do so by a court of competent jurisdiction or he is given written permission to do so by that party.
(4) A statement that a party is not required to consent to the licensee acting on his behalf.
(5) A statement that the party is giving his consent without coercion and understands the terms of the consent given.
(e) Any changes in his relationship to a party to the transaction.
2. Shall exercise reasonable skill and care with respect to all parties to the real estate transaction.
3. Shall provide to each party to the real estate transaction the appropriate form prepared by the division pursuant to section 8 of this act.
Sec. 6. If a real estate broker assigns different licensees affiliated with his brokerage to separate parties to a real estate transaction, the licensees are not required to obtain the written consent required pursuant to paragraph (d) of subsection 1 of section 5 of this act. Each licensee shall not disclose, except to the real estate broker, confidential information relating to a client in violation of section 7 of this act.
Sec. 7. A licensee who has entered into a brokerage agreement to represent a client in a real estate transaction:
1. Shall exercise reasonable skill and care to carry out the terms of the brokerage agreement and to carry out his duties pursuant to the terms of the brokerage agreement;
2. Shall not disclose confidential information relating to a client for 1 year after the revocation or termination of the brokerage agreement, unless he is required to do so pursuant to an order of a court of competent jurisdiction or he is given written permission to do so by the client; and
3. Shall promote the interests of his client by:
(a) Seeking a sale, lease or property at the price and terms stated in the brokerage agreement or at a price acceptable to the client.
(b) Presenting all offers made to or by the client as soon as is practicable.
(c) Disclosing to the client material facts of which the licensee has knowledge concerning the transaction.
(d) Advising the client to obtain advice from an expert relating to matters which are beyond the expertise of the licensee.
(e) Accounting for all money and property he receives in which the client may have an interest as soon as is practicable.
Sec. 8. The division shall prepare and distribute to licensees:
1. A form which sets forth the duties owed by a licensee who is acting for only one party to a real estate transaction.
2. A form which sets forth the duties owed by a licensee who is acting for more than one party to a real estate transaction.
3. A form which sets forth the duties owed by a real estate broker who assigns different licensees affiliated with his brokerage to separate parties to a real estate transaction.
Sec. 9. 1. A person who has suffered damages as the proximate result of a licensees failure to perform any duties required by sections 5, 6 and 7 of this act or the regulations adopted to carry out those sections may bring an action against the licensee for the recovery of his actual damages.
κ1995 Statutes of Nevada, Page 2074 (CHAPTER 585, SB 403)κ
2. In such an action, any knowledge of the client of the licensee of material facts, data or information relating to the real property which is the subject of the real estate transaction may not be imputed to the licensee.
Sec. 10. A licensee may not be held liable for a misrepresentation made by his client unless the licensee:
1. Knew his client made the misrepresentation; and
2. Failed to inform the person to whom the client made the misrepresentation that the statement was false.
Sec. 11. A licensee shall not deal with any party to a real estate transaction in a manner which is deceitful, fraudulent or dishonest.
Sec. 12. NRS 645.0005 is hereby amended to read as follows:
645.0005 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 645.001 to 645.040, inclusive, and sections 2 and 3 of this act have the meanings ascribed to them in those sections.
Sec. 13. NRS 645.004 is hereby amended to read as follows:
645.004 1. Advance fee listing includes, but is not limited to:
(a) The name or a list of the names of the owners, landlords, exchangers or lessors, or the location of property or a business, or of an interest therein, offered for rent, sale, lease or exchange.
(b) The name, or a list of the names, or the location at which prospective or potential purchasers, buyers, lessees, tenants or exchangers of property may be communicated with or found.
(c) [An] A brokerage agreement by which a person who is engaged in the business of promoting the sale or lease of businesses or real estate agrees to render to an owner or lessee of the property any services, to promote the sale or lease of the property, for an advance fee.
(d) [An] A brokerage agreement by which a person agrees to locate or promote the sale or lease of a business or real estate for an advance fee.
2. The term does not include publications intended for general circulation.
Sec. 14. NRS 645.300 is hereby amended to read as follows:
645.300 When a licensee prepares or has prepared [an] a written brokerage agreement authorizing or employing him to purchase or sell real estate for compensation or commission, he shall deliver a copy of the written brokerage agreement to the [person] client signing it at the time the signature is obtained, if possible, or otherwise within a reasonable time thereafter. Receipt for the copy may be made on the face of the written brokerage agreement.
Sec. 15. NRS 645.310 is hereby amended to read as follows:
645.310 1. All deposits accepted by every real estate broker or person registered as an owner-developer pursuant to this chapter, which are retained by him pending consummation or termination of the transaction involved, must be accounted for in the full amount at the time of the consummation or termination.
2. Every real estate salesman or broker-salesman who receives any money on behalf of a broker or owner-developer shall pay over the money promptly to the real estate broker or owner-developer.
3. A real estate broker shall not commingle the money or other property of his [principal] client with his own.
κ1995 Statutes of Nevada, Page 2075 (CHAPTER 585, SB 403)κ
4. If a broker receives money, as a broker, which belongs to others, he shall promptly deposit the money in a separate checking account in a bank in this state which must be designated a trust account. All down payments, earnest money deposits, rents, or other money which he receives, on behalf of his [principal] client or any other person, must be deposited in the account unless all persons who have any interest in the money have agreed otherwise in writing. A real estate broker [in his discretion] may pay to any seller or the sellers authorized agent the whole or any portion of such special deposit. The real estate broker is personally responsible and liable for such deposit at all times. A real estate broker shall not permit any advance payment of money belonging to others to be deposited in the real estate brokers business or personal account or to be commingled with any money he may have on deposit.
5. Every real estate broker required to maintain a separate trust account shall keep records of all money deposited therein. The records must clearly indicate the date and from whom he received money, the date deposited, the dates of withdrawals, and other pertinent information concerning the transaction, and must show clearly for whose account the money is deposited and to whom the money belongs. All such records and money are subject to inspection and audit by the division and its authorized representatives. All such separate trust accounts must designate the real estate broker as trustee and provide for withdrawal of money without previous notice.
6. Each broker shall notify the division of the names of the banks in which he maintains trust accounts and specify the names of the accounts on forms provided by the division.
Sec. 16. NRS 645.320 is hereby amended to read as follows:
645.320 Every brokerage agreement which includes a provision for an exclusive listing [shall:] must:
1. Be in writing.
2. Have set forth in its terms a definite, specified and complete termination.
3. Contain no provision [requiring the person signing such listing] which requires the client who signs the brokerage agreement to notify the real estate broker of his intention to cancel the exclusive features of [such] that listing after [such expiration date.] the termination of the listing.
4. Be signed by both the [listing property owner] client or his [duly] authorized representative and the listing agent or his [duly] authorized representative in order to be enforceable.
Sec. 17. NRS 645.322 is hereby amended to read as follows:
645.322 Any person or entity who charges or collects an advance fee shall, within 3 months after [such] the charge or collection, furnish to his [principal] client an accounting of the use of [such] that money. The real estate division may also demand an accounting by such person or entity of advance fees so collected.
Sec. 18. NRS 645.324 is hereby amended to read as follows:
645.324 1. The commission may require such forms of [advance fee agreements] brokerage agreements which include provisions for the payment of advance fees to be used, and such reports and forms of accounting to be kept, made and submitted, and may [make] adopt such rules and regulations as the commission may [, in its discretion,] determine to be necessary to carry out the purposes and intent of NRS 645.322.
κ1995 Statutes of Nevada, Page 2076 (CHAPTER 585, SB 403)κ
as the commission may [, in its discretion,] determine to be necessary to carry out the purposes and intent of NRS 645.322.
2. Any violation of the rules, regulations, orders or requirements of the commission [shall constitute] constitutes grounds for disciplinary action against a licensee.
Sec. 19. NRS 645.630 is hereby amended to read as follows:
645.630 The commission may require a licensee or owner-developer to pay an administrative fine of not more than $5,000 for each violation he commits or suspend, revoke or place conditions upon his license or registration, or do both, at any time if the licensee or owner-developer has, by false or fraudulent representation, obtained a license or registration, or [where] the licensee or owner-developer, whether or not acting as such, is found guilty of:
1. Making any material misrepresentation.
2. Making any false promises of a character likely to influence, persuade or induce.
3. [Acting for more than one party in a transaction without the knowledge of all parties for whom he acts.
4.] Accepting a commission or valuable consideration as a real estate broker-salesman or salesman for the performance of any of the acts specified in this chapter or chapter 119 or 119A of NRS from any person except the licensed real estate broker with whom he is associated or the owner-developer by whom he is employed.
[5.] 4. Representing or attempting to represent a real estate broker other than the broker with whom he is associated, without the express knowledge and consent of the broker with whom he is associated.
[6.] 5. Failing, within a reasonable time, to account for or to remit any money which comes into his possession and which belongs to others.
[7.] 6. Commingling the money or other property of his [principals] clients with his own or converting the money of others to his own use.
[8.] 7. In the case of a broker-salesman or salesman, failing to place in the custody of his licensed broker or owner-developer, as soon as possible, any deposit or other money or consideration entrusted to him by any person dealing with him as the representative of his licensed broker.
[9.] 8. Accepting other than cash as earnest money unless that fact is communicated to the owner before his acceptance of the offer to purchase and that fact is shown in the receipt for the earnest money.
[10.] 9. Upon acceptance of an agreement, in the case of a broker, failing to deposit any check or cash received as earnest money before the end of the next banking day unless otherwise provided in the purchase agreement.
[11.] 10. Inducing any party to a [contract,] brokerage agreement, sale or lease to break it in order to substitute a new [contract,] brokerage agreement, agreement of sale or lease with the same or another party if the inducement to make the substitution is offered to secure personal gain to the licensee or owner-developer.
If discipline is imposed pursuant to this section, the costs of the proceeding, including investigative costs and attorneys fees, may be recovered by the board.
κ1995 Statutes of Nevada, Page 2077 (CHAPTER 585, SB 403)κ
Sec. 20. NRS 645.633 is hereby amended to read as follows:
645.633 The commission may take action pursuant to NRS 645.630 against any person subject to that section who is guilty of:
1. Willfully using any trade name, service mark or insigne of membership in any real estate organization of which the licensee is not a member, without the legal right to do so.
2. Violating any order of the commission, any agreement with the division, any of the provisions of this chapter, chapter 119, 119A, 119B , [or] 645A or 645C of NRS or of any regulation adopted thereunder.
3. Paying a commission, compensation or a finders fee to any person for performing the services of a broker, broker-salesman or salesman who has not first secured his license pursuant to this chapter. This subsection does not apply to payments to a broker who is licensed in his state of residence.
4. A felony, or has entered a plea of guilty or nolo contendere to a charge of felony or any crime involving fraud, deceit, misrepresentation or moral turpitude.
5. Guaranteeing, or having authorized or permitted any person to guarantee, future profits which may result from the resale of real property.
6. [Failure to disclose to any person with whom he is dealing, any material facts, data or information which he knew, or which by the exercise of reasonable care and diligence he should have know, concerning or relating to the property with which he is dealing.
7.] Failure to include a fixed date of expiration in any written [listing] brokerage agreement or to leave a copy of the brokerage agreement with the [principal.
8.] client.
7. Accepting, giving or charging any undisclosed commission, rebate or direct profit on expenditures made for a [principal.
9.] client.
8. Gross negligence or incompetence in performing any act for which he is required to hold a license pursuant to this chapter, chapter 119, 119A or 119B of NRS.
[10.] 9. Any other conduct which constitutes deceitful, fraudulent or dishonest dealing.
[11.] 10. Any conduct which took place before his being licensed, which was in fact unknown to the division and which would have been grounds for denial of a license had the division been aware of the conduct.
[12. Acting in the dual capacity of agent and undisclosed principal in any transaction.
13.] 11. Knowingly permitting any person whose license has been revoked or suspended to act as a real estate broker, broker-salesman or salesman, with or on behalf of the licensee.
Action may also be taken pursuant to NRS 645.630 against a person subject to that section for the suspension or revocation of a real estate brokers, broker-salesmans or salesmans license issued to him by any other jurisdiction.
Sec. 21. NRS 645.635 is hereby amended to read as follows:
645.635 The commission may take action pursuant to NRS 645.630 against any person subject to that section who is guilty of:
κ1995 Statutes of Nevada, Page 2078 (CHAPTER 585, SB 403)κ
1. Offering real estate for sale or lease without the knowledge and consent of the owner or his authorized agent or on terms other than those authorized by the owner or his authorized agent.
2. Negotiating a sale, exchange or lease of real estate directly with an owner or lessor if he knows that the owner has a [written contract] brokerage agreement in force in connection with the property granting an exclusive agency or an exclusive right to sell to another broker, unless permission in writing has been obtained from the other broker.
3. Failure to deliver within a reasonable time a completed copy of any purchase agreement or offer to buy or sell real estate to the purchaser or to the seller.
4. Failure to deliver to the seller in each real estate transaction, within 10 business days after the transaction is closed, a complete, detailed closing statement showing all of the receipts and disbursements handled by him for the seller, failure to deliver to the buyer a complete statement showing all money received in the transaction from the buyer and how and for what it was disbursed, or failure to retain true copies of those statements in his files. The furnishing of those statements by an escrow holder relieves the brokers, broker-salesmans or salesmans responsibility and must be deemed to be compliance with this provision.
5. Representing to any lender, guaranteeing agency or any other interested party, [either] verbally or through the preparation of false documents, an amount in excess of the actual sale price of the real estate or terms differing from those actually agreed upon.
6. Failure to produce any document, book or record in his possession or under his control, concerning any real estate transaction under investigation by the division.
7. Failure to reduce a bona fide offer to writing where a proposed purchaser requests that it be submitted in writing.
8. Failure to submit all written bona fide offers to a seller when the offers are received before the seller accepts an offer in writing and until the broker has knowledge of that acceptance.
9. Refusing because of race, color, national origin, sex or ethnic group to show, sell or rent any real estate for sale or rent to qualified purchasers or renters.
10. Knowingly submitting any false or fraudulent appraisal to any financial institution or other interested person.
Sec. 22. This act becomes effective on January 1, 1996.
________
κ1995 Statutes of Nevada, Page 2079κ
Senate Bill No. 433Committee on Judiciary
(Requested by Nevada State Bar Association)
CHAPTER 586
AN ACT relating to artificial persons; broadening the requirements for eligibility to serve as an agent for service of process upon corporations, limited-liability companies and partnerships; providing generally for the merger of or exchange of interests in corporations, limited-liability companies and partnerships; permitting one person to organize a limited-liability company; and providing other matters properly relating thereto.
[Approved July 5, 1995]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Title 7 of NRS is hereby amended by adding thereto a new chapter to consist of the provisions set forth as sections 2 to 59, inclusive, of this act.
Sec. 2. As used in this chapter, unless the context otherwise requires, the words and terms defined in sections 3 to 16, inclusive, of this act have the meanings ascribed to them in those sections.
Sec. 3. Constituent document means the articles of incorporation or bylaws of a corporation, whether or not for profit, the articles of organization or operating agreement of a limited-liability company or the certificate of limited partnership or partnership agreement of a limited partnership.
Sec. 4. Constituent entity means, with respect to a merger, each merging or surviving entity and, with respect to an exchange, each entity whose owners interests will be acquired or each entity acquiring those interests.
Sec. 5. Domestic as applied to an entity means one organized and existing under the laws of this state.
Sec. 6. Domestic corporation means a corporation organized and existing under chapter 78 or 78A of NRS, or a nonprofit cooperative corporation organized pursuant to NRS 81.010 to 81.160, inclusive.
Sec. 7. Domestic limited-liability company means a limited-liability company organized and existing under chapter 86 of NRS.
Sec. 8. Domestic limited partnership means a limited partnership organized and existing under chapter 88 of NRS.
Sec. 9. Domestic nonprofit corporation means a corporation organized or existing under chapter 82 of NRS, including those listed in NRS 82.051.
Sec. 10. Entity means a foreign or domestic corporation, whether or not for profit, limited-liability company or limited partnership.
Sec. 11. Exchange means the acquisition by one or more foreign or domestic entities of all an owners interests or one or more classes or series of an owners interests of one or more foreign or domestic entities.
Sec. 12. Foreign as applied to an entity means one not organized or existing under the laws of this state.
Sec. 13. Limited partner means a person who has been admitted to a limited partnership as a limited partner in accordance with the partnership agreement.
κ1995 Statutes of Nevada, Page 2080 (CHAPTER 586, SB 433)κ
Sec. 13.5. Majority in interest means a majority of the interests in capital and profits of the members of a domestic limited-liability company or of the limited partners of a domestic limited partnership which:
1. In the case of capital, is determined as of the date of the approval of the plan of merger or exchange.
2. In the case of profits, is based on any reasonable estimate of profits for the period beginning on the date of the approval of the plan of merger or exchange and ending on the anticipated date of the termination of the domestic limited partnership or domestic limited-liability company, including any present or future division of profits distributed pursuant to the operating agreement of the domestic limited-liability company or the partnership agreement of the domestic limited partnership.
Sec. 14. Member means:
1. A person who owns an interest in, and has the right to participate in the management of the business and affairs of a domestic limited-liability company; or
2. A member of a nonprofit corporation which has members.
Sec. 15. Owner means the holder of an interest described in section 16 of this act.
Sec. 16. Owners interest means shares of stock in a corporation, membership in a nonprofit corporation, the interest of a member of a limited-liability company or the partnership interest of a general or limited partner of a limited partnership.
Sec. 17. 1. Except as limited by NRS 78.411 to 78.444, inclusive, one or more domestic entities may merge into another entity if the plan of merger is approved pursuant to the provisions of this chapter.
2. The plan of merger must set forth:
(a) The name, address and place of organization and governing law of each constituent entity;
(b) The name, place of organization and governing law and kind of entity or entities that will survive the merger;
(c) The terms and conditions of the merger; and
(d) The manner and basis of converting the owners interests of each constituent entity into owners interests, rights to purchase owners interests, or other securities of the surviving or other entity or into cash or other property in whole or in part.
3. The plan of merger may set forth:
(a) Amendments to the constituent documents of the surviving entity; and
(b) Other provisions relating to the merger.
4. The plan of merger must be in writing.
Sec. 18. 1. Except as a corporation is limited by NRS 78.411 to 78.444, inclusive, one or more domestic entities may acquire all of the outstanding owners interests of one or more classes or series of another entity if the plan of exchange in approved pursuant to the provisions of this chapter.
2. The plan of exchange must set forth:
(a) The name, address and place of organization and governing law of each constituent entity;
(b) The name, place of organization and kind of each entity whose entity interests will be acquired by one or more other entities;
κ1995 Statutes of Nevada, Page 2081 (CHAPTER 586, SB 433)κ
(c) The terms and conditions of the exchange; and
(d) The manner and basis of exchanging the owners interest to be acquired for owners interests, rights to purchase owners interests, or other securities of the acquiring or any other entity or for cash or other property in whole or in part.
3. The plan of exchange may set forth other provisions relating to the exchange.
4. This section does not limit the power of a domestic entity to acquire all or part of the owners interests or one or more class or series of owners interests of another person through a voluntary exchange or otherwise.
5. The plan of exchange must be in writing.
Sec. 19. An owner that is not personally liable for the debts, liabilities or obligations of the entity pursuant to the laws and constituent documents under which the entity was organized does not become personally liable for the debts, liabilities or obligations of the surviving entity or entities of the merger or exchange unless the owner consents to becoming personally liable by action taken in connection with the plan of merger or exchange.
Sec. 20. 1. After adopting a plan of merger or exchange, the board of directors of each domestic corporation that is a constituent entity in the merger, or the board of directors of the domestic corporation whose shares will be acquired in the exchange, must submit the plan of merger, except as otherwise provided in section 21 of this act, or the plan of exchange for approval by its stockholders.
2. For a plan of merger or exchange to be approved:
(a) The board of directors must recommend the plan of merger or exchange to the stockholders, unless the board of directors determines that because of a conflict of interest or other special circumstances it should make no recommendation and it communicates the basis for its determination to the stockholders with the plan; and
(b) The stockholders entitled to vote must approve the plan.
3. The board of directors may condition its submission of the proposed merger or exchange on any basis.
4. The domestic corporation must notify each stockholder, whether or not he is entitled to vote, of the proposed stockholders meeting in accordance with NRS 78.370. The notice must also state that the purpose, or one of the purposes, of the meeting is to consider the plan of merger or exchange and must contain or be accompanied by a copy or summary of the plan.
5. Unless this chapter, the articles of incorporation, or the board of directors acting pursuant to subsection 3 require a greater vote or a vote by classes of stockholders, the plan or merger or exchange to be authorized must be approved by a majority of the voting power unless stockholders of a class of shares are entitled to vote thereon as a class. If stockholders of a class of shares are so entitled, the plan must be approved by a majority of all votes entitled to be cast on the plan by each class and representing a majority of all votes entitled to be voted.
6. Separate voting by a class of stockholders is required:
(a) On a plan of merger if the plan contains a provision that, if contained in the proposed amendment to the articles of incorporation, would entitle particular stockholders to vote as a class on the proposed amendment; and
κ1995 Statutes of Nevada, Page 2082 (CHAPTER 586, SB 433)κ
(b) On a plan of exchange by each class or series of shares included in the exchange, with each class or series constituting a separate voting class.
7. Unless otherwise provided in the articles of incorporation or the bylaws of the domestic corporation, the plan of merger may be approved by written consent as provided in NRS 78.320.
Sec. 21. 1. Action by the stockholders of a surviving domestic corporation on a plan of merger is not required if:
(a) The articles of incorporation of the surviving domestic corporation will not differ from its articles before the merger;
(b) Each stockholder of the surviving domestic corporation whose shares were outstanding immediately before the effective date of the merger will hold the same number of shares, with identical designations, preferences, limitations and relative rights immediately after the merger;
(c) The number of voting shares outstanding immediately after the merger, plus the number of voting shares issued as a result of the merger, either by the conversion of securities issued pursuant to the merger or the exercise of rights and warrants issued pursuant to the merger, will not exceed by more than 20 percent the total number of voting shares of the surviving domestic corporation outstanding immediately before the merger; and
(d) The number of participating shares outstanding immediately after the merger, plus the number of participating shares issuable as a result of the merger, either by the conversion of securities issued pursuant to the merger or the exercise of rights and warrants issued pursuant to the merger, will not exceed by more than 20 percent the total number of participating shares outstanding immediately before the merger.
2. As used in this section:
(a) Participating shares means shares that entitle their holders to participate without limitation in distributions.
(b) Voting shares means shares that entitle their holders to vote unconditionally in elections of directors.
Sec. 22. Unless otherwise provided in the partnership agreement or the certificate of limited partnership, a plan of merger or exchange involving a domestic limited partnership must be approved by all general partners and by limited partners who own a majority in interest of the partnership then owned by all the limited partners. If the partnership has more than one class of limited partners, the plan of merger must be approved by those limited partners who own a majority in interest of the partnership then owned by the limited partners in each class.
Sec. 23. Unless otherwise provided in the articles of organization or an operating agreement, a plan of merger or exchange involving a domestic limited-liability company must be approved by members who own a majority in interest of the company then owned by all of the members. If the company has more than one class of members, the plan of merger must be approved by those members who own a majority in interest of the company then owned by the members in each class.
Sec. 24. (Deleted by amendment.)
Sec. 25. 1. A plan of merger or exchange involving a domestic nonprofit corporation must be adopted by the board of directors. The plan must also be approved by each public officer or other person whose approval of a plan of merger or exchange is required by the articles of incorporation of the domestic nonprofit corporation.
κ1995 Statutes of Nevada, Page 2083 (CHAPTER 586, SB 433)κ
merger or exchange is required by the articles of incorporation of the domestic nonprofit corporation.
2. If the domestic nonprofit corporation has members entitled to vote on plans of merger or exchange, the board of directors of the domestic nonprofit corporation must recommend the plan of merger or exchange to the members, unless the board of directors determines that because of a conflict of interest or other special circumstances it should make no recommendation and it communicates the basis for its determination to the members with the plan.
3. The board of directors may condition its submission of the proposed merger or exchange on any basis.
4. The members entitled to vote on a plan of merger or exchange must approve the plan at a meeting of members called for that purpose, by written consent pursuant to NRS 82.276, or by a vote by written ballot pursuant to NRS 82.326.
5. The corporation must notify, in the manner required by NRS 82.336, each nonprofit member of the time and place of the meeting of members at which the plan of merger or exchange will be submitted for a vote.
6. Unless the articles of incorporation of the domestic nonprofit corporation or the board of directors acting pursuant to subsection 3 require a greater vote or a vote by classes of members, the plan of merger or exchange to be authorized must be approved by a majority of a quorum of the members unless a class of members is entitled to vote thereon as a class. If a class of members is so entitled, the plan must be approved by a majority of a quorum of the votes entitled to be cast on the plan by each class.
7. Separate voting by a class of members is required:
(a) On a plan of merger if the plan contains a provision that, if contained in the proposed amendment to articles of incorporation, would entitle particular members to vote as a class on the proposed amendment; and
(b) On a plan of exchange by each class or series of memberships included in the exchange, with each class or series constituting a separate voting class.
Sec. 26. After a merger or exchange is approved, and at any time before the articles of merger or exchange are filed, the planned merger or exchange may be abandoned, subject to any contractual rights, without further action, in accordance with the procedure set forth in the plan of merger or exchange or, if none is set forth, in the case of:
1. A domestic corporation, whether or not for profit, by the board of directors;
2. A domestic limited partnership, unless otherwise provided in the partnership agreement or certificate of limited partnership, by all general partners; and
3. A domestic limited-liability company, unless otherwise provided in the articles of organization or an operating agreement, by members who own a majority in interest of the company then owned by all of the members or, if the company has more than one class of members, by members who own a majority interest of the company then owned by the members in each class.
Sec. 27. 1. A parent domestic corporation, whether or not for profit, parent domestic limited-liability company or parent domestic limited partnership owning at least 90 percent of the outstanding shares of each class of a subsidiary corporation, 90 percent of the percentage or other interest in the capital and profits of a subsidiary limited partnership then owned by both the general and each class of limited partners or 90 percent of the percentage or other interest in the capital and profits of a domestic subsidiary limited-liability company then owned by each class of members may merge the subsidiary into itself without approval of the owners of the owners interests of the parent domestic corporation, domestic limited-liability company or domestic limited partnership.
κ1995 Statutes of Nevada, Page 2084 (CHAPTER 586, SB 433)κ
subsidiary corporation, 90 percent of the percentage or other interest in the capital and profits of a subsidiary limited partnership then owned by both the general and each class of limited partners or 90 percent of the percentage or other interest in the capital and profits of a domestic subsidiary limited-liability company then owned by each class of members may merge the subsidiary into itself without approval of the owners of the owners interests of the parent domestic corporation, domestic limited-liability company or domestic limited partnership.
2. The board of directors of the parent domestic corporation, the managers of a domestic limited-liability company with managers unless otherwise provided in the operating agreement, all the members of a domestic limited-liability company without managers unless otherwise provided in the operating agreement, or all the general partners of the parent domestic limited partnership shall adopt a plan of merger that sets forth:
(a) The names of the parent and subsidiary;
(b) The manner and basis of converting the owners interests of the subsidiary into the owners interests, obligations or other securities of the parent or any other entity or into cash or other property in whole or in part.
3. The parent shall mail a copy or summary of the plan of merger to each owner of the subsidiary who does not waive the mailing requirement in writing.
4. The parent may not deliver articles of merger to the secretary of state for filing until at least 30 days after the date the parent mailed a copy of the plan of merger to each owner of the subsidiary who did not waive the requirement of mailing.
5. Articles of merger under this section may not contain amendments to the constituent documents of the parent entity.
Sec. 28. After a plan of merger or exchange is approved as required by this chapter, the surviving or acquiring entity shall deliver to the secretary of state for filing articles of merger or exchange setting forth:
1. The name and place of organization and governing law of each constituent entity;
2. That a plan of merger or exchange has been adopted by each constituent entity;
3. If approval of the owners of the parent was not required, a statement to that effect;
4. If approval of owners of one or more constituent entities was required a statement that:
(a) The plan was approved by the unanimous consent of the owners; or
(b) A plan was submitted to the owners pursuant to this chapter including:
(1) The designation, percentage of total vote or number of votes entitled to be cast by each class of owners interests entitled to vote separately on the plan; and
(2) Either the total number of votes or percentage of owners interests cast for and against the plan by the owners of each class of interests entitled to vote separately on the plan or the total number of undisputed votes or undisputed total percentage of owners interests cast for the plan separately by the owners of each class, and the number of votes or percentage of owners interests cast for the plan by the owners of each class of interests was sufficient for approval by the owners of that class;
κ1995 Statutes of Nevada, Page 2085 (CHAPTER 586, SB 433)κ
and the number of votes or percentage of owners interests cast for the plan by the owners of each class of interests was sufficient for approval by the owners of that class;
5. In the case of a merger, the amendment to the articles of incorporation, articles of organization or certificate of limited partnership of the surviving entity; and
6. If the entire plan of merger or exchange is not set forth, a statement that the complete executed plan of merger or plan of exchange is on file at the registered office if a corporation or limited-liability company, office described in NRS 88.330 if a limited partnership, principal place of business if a general partnership, or other place of business of the surviving entity or the acquiring entity, respectively.
Sec. 28.5. The fee for filing articles of merger or articles of exchange is $125.
Sec. 29. If the entire plan of merger or exchange is not set forth, a copy of the plan of merger or exchange must be furnished by the surviving or acquiring entity, on request and without cost, to any owner of any entity which is a party to the merger or exchange.
Sec. 30. (Deleted by amendment.)
Sec. 31. Articles of merger or exchange must be signed and acknowledged by each domestic constituent entity as follows:
1. By the president and secretary of a domestic corporation, whether or not for profit;
2. By all the general partners of a domestic limited partnership; and
3. By a manager of a domestic limited-liability company with managers or by all the members of a domestic limited-liability company without managers.
Sec. 32. If articles of merger or exchange must be filed, a merger or exchange takes effect upon filing the articles of merger or upon a later date as specified in the articles of merger, which must not be more than 90 days after the articles are filed. If no articles of merger need be filed the merger or exchange takes effect as specified in the plan of merger or exchange.
Sec. 33. 1. When a merger takes effect:
(a) Every other entity that is a constituent entity merges into the surviving entity and the separate existence of every entity except the surviving entity ceases;
(b) The title to all real estate and other property owned by each merging constituent entity is vested in the surviving entity without reversion or impairment;
(c) The surviving entity has all of the liabilities of each other constituent entity;
(d) A proceeding pending against any constituent entity may be continued as if the merger had not occurred or the surviving entity may be substituted in the proceeding for the entity whose existence has ceased;
(e) The articles of incorporation, articles of organization or certificate of limited partnership of the surviving entity are amended to the extent provided in the plan of merger; and
(f) The owners interests of each constituent entity that are to be converted into owners interests, obligations or other securities of the surviving or any other entity or into cash or other property are converted, and the former holders of the owners interests are entitled only to the rights provided in the articles of merger or any created pursuant to sections 35 to 59, inclusive, of this act.
κ1995 Statutes of Nevada, Page 2086 (CHAPTER 586, SB 433)κ
other entity or into cash or other property are converted, and the former holders of the owners interests are entitled only to the rights provided in the articles of merger or any created pursuant to sections 35 to 59, inclusive, of this act.
2. When an exchange takes effect, the owners interests of each acquired entity are exchanged as provided in the plan, and the former holders of the owners interests are entitled only to the rights provided in the articles of exchange or any rights created pursuant to sections 35 to 59, inclusive, of this act.
Sec. 34. 1. One or more foreign entities may merge or enter into an exchange of owners interests with one or more domestic entities if:
(a) In a merger, the merger is permitted by the law of the jurisdiction under whose law each foreign entity is organized and governed and each foreign entity complies with that law in effecting the merger;
(b) In an exchange, the entity whose owners interests will be acquired is a domestic entity, whether or not an exchange of owners interests is permitted by the law of the jurisdiction under whose law the acquiring entity is organized;
(c) The foreign entity complies with sections 28 to 32, inclusive, of this act if it is the surviving entity in the merger or acquiring entity in the exchange and sets forth in the articles of merger or exchange its address where copies of process may be sent by the secretary of state; and
(d) Each domestic entity complies with the applicable provision of sections 8 to 18, inclusive, of this act and, if it is the surviving entity in the merger or acquiring entity in the exchange, with sections 28 to 32, inclusive, of this act.
2. When the merger or exchange takes effect, the surviving foreign entity in a merger and the acquiring foreign entity in an exchange shall be deemed:
(a) To appoint the secretary of state as its agent for service of process in a proceeding to enforce any obligation or the rights of dissenting owners of each domestic entity that was a party to the merger or exchange. Service of such process must be made by personally delivering to and leaving with the secretary of state duplicate copies of the process and the payment of a fee of $25 for accepting and transmitting the process. The secretary of state shall forthwith send by registered or certified mail one of the copies to the surviving or acquiring entity at its specified address, unless the surviving or acquiring entity has designated in writing to the secretary of state a different address for that purpose, in which case it must be mailed to the last address so designated.
(b) To agree that it will promptly pay to the dissenting owners of each domestic entity that is a party to the merger or exchange the amount, if any, to which they are entitled under or created pursuant to sections 35 to 59, inclusive, of this act.
3. This section does not limit the power of a foreign entity to acquire all or part of the owners interests of one or more classes or series of a domestic entity through a voluntary exchange or otherwise.
Sec. 35. As used in sections 35 to 59, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 36 to 42, inclusive, have the meanings ascribed to them in those sections.
κ1995 Statutes of Nevada, Page 2087 (CHAPTER 586, SB 433)κ
Sec. 36. Beneficial stockholder means a person who is a beneficial owner of shares held in a voting trust or by a nominee as the stockholder of record.
Sec. 37. Corporate action means the action of a domestic corporation.
Sec. 38. Dissenter means a stockholder who is entitled to dissent from a domestic corporations action under section 44 of this act and who exercises that right when and in the manner required by sections 50 to 57, inclusive, of this act.
Sec. 39. Fair value, with respect to a dissenters shares, means the value of the shares immediately before the effectuation of the corporate action to which he objects, excluding any appreciation or depreciation in anticipation of the corporate action unless exclusion would be inequitable.
Sec. 40. Stockholder means a stockholder of record or a beneficial stockholder of a domestic corporation.
Sec. 41. Stockholder of record means the person in whose name shares are registered in the records of a domestic corporation or the beneficial owner of shares to the extent of the rights granted by a nominees certificate on file with the domestic corporation.
Sec. 42. Subject corporation means the domestic corporation which is the issuer of the shares held by a dissenter before the corporate action creating the dissenters rights becomes effective or the surviving or acquiring entity of that issuer after the corporate action becomes effective.
Sec. 43. Interest payable pursuant to sections 35 to 59, inclusive, of this act must be computed from the effective date of the action until the date of payment, at the average rate currently paid by the entity on its principal bank loans or, if it has no bank loans, at a rate that is fair and equitable under all of the circumstances.
Sec. 44. 1. Except as otherwise provided in sections 45 and 46, of this act, a stockholder is entitled to dissent from, and obtain payment of the fair value of his shares in the event of any of the following corporate actions:
(a) Consummation of a plan of merger to which the domestic corporation is a party:
(1) If approval by the stockholders is required for the merger by sections 20 to 25, inclusive, of this act or the articles of incorporation and he is entitled to vote on the merger; or
(2) If the domestic corporation is a subsidiary and is merged with its parent under section 27 of this act.
(b) Consummation of a plan of exchange to which the domestic corporation is a party as the corporation whose subject owners interests will be acquired, if he is entitled to vote on the plan.
(c) Any corporate action taken pursuant to a vote of the stockholders to the event that the articles of incorporation, bylaws or a resolution of the board of directors provides that voting or nonvoting stockholders are entitled to dissent and obtain payment for their shares.
2. A stockholder who is entitled to dissent and obtain payment under sections 35 to 59, inclusive, of this act may not challenge the corporate action creating his entitlement unless the action is unlawful or fraudulent with respect to him or the domestic corporation.
κ1995 Statutes of Nevada, Page 2088 (CHAPTER 586, SB 433)κ
Sec. 45. 1. There is no right of dissent with respect to a plan of merger or exchange in favor of stockholders of any class or series which, at the record date fixed to determine the stockholders entitled to receive notice of and to vote at the meeting at which the plan of merger or exchange is to be acted on, were either listed on a national securities exchange, included in the national market system by the National Association of Securities Dealers, Inc., or held by at least 2,000 stockholders of record, unless:
(a) The articles of incorporation of the corporation issuing the shares provide otherwise; or
(b) The holders of the class or series are required under the plan of merger or exchange to accept for the shares anything except:
(1) Cash, owners interests or owners interests and cash in lieu of fractional owners interests of:
(I) The surviving or acquiring entity; or
(II) Any other entity which, at the effective date of the plan of merger or exchange, were either listed on a national securities exchange, included in the national market system by the National Association of Securities Dealers, Inc., or held of record by a least 2,000 holders of owners interests of record; or
(2) A combination of cash and owners interests of the kind described in sub-subparagraphs (I) and (II) of subparagraph (1) of paragraph (b).
2. There is no right of dissent for any holders of stock of the surviving domestic corporation if the plan of merger does not require action of the stockholders of the surviving domestic corporation under section 21 of this act.
Sec. 46. 1. Except as otherwise provided in subsection 2 and unless otherwise provided in the articles or bylaws, any member of any constituent domestic nonprofit corporation who voted against the merger may, without prior notice, but within 30 days after the effective date of the merger, resign from membership and is thereby excused from all contractual obligations to the constituent or surviving corporations which did not occur before his resignation and is thereby entitled to those rights, if any, which would have existed if there had been no merger and the membership had been terminated or the member had been expelled.
2. Unless otherwise provided in its articles of incorporation or bylaws, no member of a domestic nonprofit corporation, including, but not limited to, a cooperative corporation, which supplies services described in chapter 704 of NRS to its members only, and no person who is a member of a domestic nonprofit corporation as a condition of or by reason of the ownership of an interest in real property, may resign and dissent pursuant to subsection 1.
Sec. 47. A partnership agreement of a domestic limited partnership or, unless otherwise provided in the partnership agreement, an agreement of merger or exchange, may provide that contractual rights with respect to the partnership interest of a dissenting general or limited partner of a domestic limited partnership are available for any class or group of partnership interests in connection with any merger or exchange in which the domestic limited partnership is a constituent entity.
Sec. 48. The articles of organization or operating agreement of a domestic limited-liability company or, unless otherwise provided in the articles of organization or operating agreement, an agreement of merger or exchange, may provide that contractual rights with respect to the interest of a dissenting member are available in connection with any merger or exchange in which the domestic limited-liability company is a constituent entity.
κ1995 Statutes of Nevada, Page 2089 (CHAPTER 586, SB 433)κ
organization or operating agreement, an agreement of merger or exchange, may provide that contractual rights with respect to the interest of a dissenting member are available in connection with any merger or exchange in which the domestic limited-liability company is a constituent entity.
Sec. 49. 1. A stockholder of record may assert dissenters rights as to fewer than all of the shares registered in his name only if he dissents with respect to all shares beneficially owned by any one person and notifies the subject corporation in writing of the name and address of each person on whose behalf he asserts dissenters rights. The rights of a partial dissenter under this subsection are determined as if the shares as to which he dissents and his other shares were registered in the names of different stockholders.
2. A beneficial stockholder may assert dissenters rights as to shares held on his behalf only if:
(a) He submits to the subject corporation the written consent of the stockholder of record to the dissent not later than the time the beneficial stockholder asserts dissenters rights; and
(b) He does so with respect to all shares of which he is the beneficial stockholder or over which he has power to direct the vote.
Sec. 50. 1. If a proposed corporate action creating dissenters rights is submitted to a vote at a stockholders meeting, the notice of the meeting must state that stockholders are or may be entitled to assert dissenters rights under sections 35 to 59, inclusive, of this act and be accompanied by a copy of those sections.
2. If the corporate action creating dissenters rights is taken without a vote of the stockholders, the domestic corporation shall notify in writing all stockholders entitled to assert dissenters rights that the action was taken and send them the dissenters notice described in section 52 of this act.
Sec. 51. 1. If a proposed corporate action creating dissenters rights is submitted to a vote at a stockholders meeting, a stockholder who wishes to assert dissenters rights:
(a) Must deliver to the subject corporation, before the vote is taken, written notice of his intent to demand payment for his shares if the proposed action is effectuated; and
(b) Must not vote his shares in favor of the proposed action.
2. A stockholder who does not satisfy the requirements of subsection 1 is not entitled to payment for his shares under this chapter.
Sec. 52. 1. If a proposed corporate action creating dissenters rights is authorized at a stockholders meeting, the subject corporation shall deliver a written dissenters notice to all stockholders who satisfied the requirements to assert those rights.
2. The dissenters notice must be sent no later than 10 days after the effectuation of the corporate action, and must:
(a) State where the demand for payment must be sent and where and when certificates, if any, for shares must be deposited;
(b) Inform the holders of shares not represented by certificates to what extent the transfer of the shares will be restricted after the demand for payment is received;
(c) Supply a form for demanding payment that includes the date of the first announcement to the news media or to the stockholders of the terms of the proposed action and requires that the person asserting dissenters rights certify whether or not he acquired beneficial ownership of the shares before that date;
κ1995 Statutes of Nevada, Page 2090 (CHAPTER 586, SB 433)κ
proposed action and requires that the person asserting dissenters rights certify whether or not he acquired beneficial ownership of the shares before that date;
(d) Set a date by which the subject corporation must receive the demand for payment, which may not be less than 30 nor more than 60 days after the date the notice is delivered; and
(e) Be accompanied by a copy of sections 35 to 59, inclusive, of this act.
Sec. 53. 1. A stockholder to whom a dissenters notice is sent must:
(a) Demand payment;
(b) Certify whether he acquired beneficial ownership of the shares before the date required to be set forth in the dissenters notice for this certification; and
(c) Deposit his certificates, if any, in accordance with the terms of the notice.
2. The stockholder who demands payment and deposits his certificates, if any, retains all other rights of a stockholder until those rights are canceled or modified by the taking of the proposed corporate action.
3. The stockholder who does not demand payment or deposit his certificates where required, each by the date set forth in the dissenters notice, is not entitled to payment for his shares under this chapter.
Sec. 54. 1. The subject corporation may restrict the transfer of shares not represented by a certificate from the date the demand for their payment is received.
2. The person for whom dissenters rights are asserted as to shares not represented by a certificate retains all other rights of a stockholder until those rights are canceled or modified by the taking of the proposed corporate action.
Sec. 55. 1. Except as otherwise provided in section 56 of this act, within 30 days after receipt of a demand for payment, the subject corporation shall pay each dissenter who complied with section 45 of this act the amount the subject corporation estimates to be the fair value of his shares, plus accrued interest. The obligation of the subject corporation under this subsection may be enforced by the district court:
(a) Of the county where the corporations registered office is located; or
(b) At the election of any dissenter residing or having its registered office in this state, of the county where the dissenter resides or has its registered office. The court shall dispose of the complaint promptly.
2. The payment must be accompanied by:
(a) The subject corporations balance sheet as of the end of a fiscal year ending not more than 16 months before the date of payment, a statement of income for that year, a statement of changes in the stockholders equity for that year and the latest available interim financial statements, if any;
(b) A statement of the subject corporations estimate of the fair value of the shares;
(c) An explanation of how the interest was calculated;
(d) A statement of the dissenters rights to demand payment under section 57 of this act; and
(e) A copy of sections 35 to 59, inclusive, of this act.
κ1995 Statutes of Nevada, Page 2091 (CHAPTER 586, SB 433)κ
Sec. 56. 1. A subject corporation may elect to withhold payment from a dissenter unless he was the beneficial owner of the shares before the date set forth in the dissenters notice as the date of the first announcement to the news media or to the stockholders of the terms of the proposed action.
2. To the extent the subject corporation elects to withhold payment, after taking the proposed action, it shall estimate the fair value of the shares, plus accrued interest, and shall offer to pay this amount to each dissenter who agrees to accept it in full satisfaction of his demand. The subject corporation shall send with its offer a statement of its estimate of the fair value of the shares, an explanation of how the interest was calculated, and a statement of the dissenters right to demand payment pursuant to section 57 of this act.
Sec. 57. 1. A dissenter may notify the subject corporation in writing of his own estimate of the fair value of his shares and the amount of interest due, and demand payment of his estimate, less any payment pursuant to section 55 of this act, or reject the offer pursuant to section 56 of this act and demand payment of the fair value of his shares and interest due, if he believes that the amount paid pursuant to section 55 of this act or offered pursuant to section 56 of this act is less than the fair value of his shares or that the interest due is incorrectly calculated.
2. A dissenter waives his right to demand payment pursuant to this section unless he notifies the subject corporation of his demand in writing within 30 days after the subject corporation made or offered payment for his shares.
Sec. 58. 1. If a demand for payment remains unsettled, the subject corporation shall commence a proceeding within 60 days after receiving the demand and petition the court to determine the fair value of the shares and accrued interest. If the subject corporation does not commence the proceeding within the 60-day period, it shall pay each dissenter whose demand remains unsettled the amount demanded.
2. A subject corporation shall commence the proceeding in the district court of the county where its registered office is located. If the subject corporation is a foreign entity without a resident agent in the state, it shall commence the proceeding in the county where the registered office of the domestic corporation merged with or whose shares were acquired by the foreign entity was located.
3. The subject corporation shall make all dissenters, whether or not residents of Nevada, whose demands remain unsettled, parties to the proceeding as in an action against their shares. All parties must be served with a copy of the petition. Nonresidents may be served by registered or certified mail or by publication as provided by law.
4. The jurisdiction of the court in which the proceeding is commenced under subsection 2 is plenary and exclusive. The court may appoint one or more persons as appraisers to receive evidence and recommend a decision on the question of fair value. The appraisers have the powers described in the order appointing them, or any amendment thereto. The dissenters are entitled to the same discovery rights as parties in other civil proceedings.
5. Each dissenter who is made a party to the proceeding is entitled to a judgment:
(a) For the amount, if any, by which the court finds the fair value of his shares, plus interest, exceeds the amount paid by the subject corporation; or
κ1995 Statutes of Nevada, Page 2092 (CHAPTER 586, SB 433)κ
(b) For the fair value, plus accrued interest, of his after-acquired shares for which the subject corporation elected to withhold payment pursuant to section 56 of this act.
Sec. 59. 1. The court in a proceeding to determine fair value shall determine all of the costs of the proceeding, including the reasonable compensation and expenses of any appraisers appointed by the court. The court shall assess the costs against the subject corporation, except that the court may assess costs against all or some of the dissenters, in amounts the court finds equitable, to the extent the court finds the dissenters acted arbitrarily, vexatiously or not in good faith in demanding payment.
2. The court may also assess the fees and expenses of the counsel and experts for the respective parties, in amounts the court finds equitable:
(a) Against the subject corporation and in favor of all dissenters if the court finds the subject corporation did not substantially comply with the requirements of sections 35 to 59, inclusive, of this act; or
(b) Against either the subject corporation or a dissenter in favor of any other party, if the court finds that the party against whom the fees and expenses are assessed acted arbitrarily, vexatiously or not in good faith with respect to the rights provided by sections 35 to 59, inclusive, of this act.
3. If the court finds that the services of counsel for any dissenter were of substantial benefit to other dissenters similarly situated, and that the fees for those services should not be assessed against the subject corporation, the court may award to those counsel reasonable fees to be paid out of the amounts awarded to the dissenters who were benefited.
4. In a proceeding commenced pursuant to section 47 of this act, the court may assess the costs against the subject corporation, except that the court may assess costs against all or some of the dissenters who are parties to the proceeding, in amounts the court finds equitable, to the extent the court finds that such parties did not act in good faith in instituting the proceeding.
5. This section does not preclude any party in a proceeding commenced pursuant to section 55 or 58 of this act from applying the provisions of N.R.C.P. 68 or NRS 17.115.
Sec. 60. Chapter 78 of NRS is hereby amended by adding thereto a new section to read as follows:
1. If the voting powers, designations, preferences, limitations, restrictions and relative rights of any class or series of stock have been established by a resolution of the board of directors pursuant to a provision in the articles of incorporation, a certificate of designation must be filed with the secretary of state setting forth the resolution. The certificate of designation must be executed by the president or vice president and secretary or assistant secretary and acknowledged by the president or vice president before a person authorized by the laws of Nevada to take acknowledgments of deeds. The certificate of designation so executed and acknowledged must be filed before the issuance of any shares of the class or services.
2. Unless otherwise provided in the articles of incorporation or the certificate of designation being amended, if no shares of a class or series of stock established by a resolution of the board of directors have been issued, the designation of the class or series, the number of the class or series and the voting powers, designations, preferences, limitations, restrictions and relative rights of the class or series may be amended by a resolution of the board of directors pursuant to a certificate of amendment filed in the manner provided in subsection 4.
κ1995 Statutes of Nevada, Page 2093 (CHAPTER 586, SB 433)κ
voting powers, designations, preferences, limitations, restrictions and relative rights of the class or series may be amended by a resolution of the board of directors pursuant to a certificate of amendment filed in the manner provided in subsection 4.
3. Unless otherwise provided in the articles of incorporation or the certificate of designation, if shares of a class or series of stock established by a resolution of the board of directors have been issued, the designation of the class or series, the number of the class or series, and the voting powers, designations, preferences, limitations, restrictions and relative rights of the class or series may be amended by a resolution of the board of directors only if the amendment is approved as provided in this subsection. Unless otherwise provided in the articles of incorporation or the certificate of designation, the proposed amendment adopted by the board of directors must be approved by the vote of stockholders holding shares in the corporation entitling them to exercise a majority of the voting power, or such greater proportion of the voting power as may be required by the articles of incorporation or the certificate of designation, of:
(a) The class or series of stock being amended; and
(b) Each class and each series of stock which, before amendment, is senior to the class or series being amended as to the payment of distributions upon dissolution of the corporation, regardless of any limitations or restrictions on the voting power of that class or series.
4. A certificate of amendment to a certificate of designation must be filed with the secretary of state and must:
(a) Set forth the original designation and the new designation, if the designation of the class or series is being amended;
(b) State that no shares of the class or series have been issued or state that the approval of the stockholders required pursuant to subsection 3 has been obtained; and
(c) Set forth the amendment to the class or series or set forth the designation of the class or series, the number of the class or series, and the voting powers, designations, preferences, limitations, restrictions and relative rights of the class or series, as amended.
The certificate of amendment must be executed by the president or vice president and secretary or assistant secretary and acknowledged by the president or vice president before a person authorized by the laws of Nevada to take acknowledgments of deeds. NRS 78.380, 78.385 and 78.390 do not apply to certificates of amendment filed pursuant to this section.
Sec. 61. NRS 78.010 is hereby amended to read as follows:
78.010 As used in this chapter:
(a) Approval and vote when used in the context of an action by the directors or stockholders mean the vote of directors in person or by written consent or of stockholders in person, by proxy or by written consent.
(b) Articles, articles of incorporation and certificate of incorporation are synonymous terms and unless the context otherwise requires, include all certificates filed pursuant to NRS 78.030, 78.195, 78.207, 78.380, 78.385, 78.390, and any articles of merger or exchange filed pursuant to [NRS 78.451 to 78.466 inclusive.] sections 28 to 32, inclusive, of this act.
κ1995 Statutes of Nevada, Page 2094 (CHAPTER 586, SB 433)κ
Unless the context otherwise requires, theses terms include restated articles and certificates of incorporation.
(c) Directors and trustees are synonymous terms.
(d) [Registered office means the office maintained at the street address of the resident agent of a corporation.
(e)] Receiver includes receivers and trustees appointed by a court as provided in this chapter or in chapter 32 of NRS.
[(f)] (e) Registered office means the office maintained at the street address of the resident agent.
(f) Resident agent means the agent appointed by the corporation upon whom process or a notice or demand authorized by law to be served upon the corporation may be served.
(g) Stockholder of record means a person whose name appears on the stock ledger of the corporation.
2. General terms and powers given in this chapter are not restricted by the use of special terms, or by any grant of special powers contained in this chapter.
Sec. 62. NRS 78.015 is hereby amended to read as follows:
78.015 1. The provisions of this chapter apply to:
(a) [Except where the provisions of chapters 80, 81, 82, 84 and 89 of NRS are inconsistent with the provisions of this chapter, and except for corporations which are expressly excluded by the provisions of this chapter, corporations] Corporations organized in this state on or after October 1, 1991 [.] , except:
(1) Where the provisions of chapters 80, 84 and 89 of NRS are inconsistent with the provisions of this chapter;
(2) Corporations expressly excluded by the provisions of this chapter; and
(3) Corporations governed by the provisions of NRS 81.170 to 81.540, inclusive, and chapter 82 of NRS.
(b) Corporations whose charters are renewed or revived in the manner provided in NRS 78.730.
(c) Corporations organized and still existing under this chapter before October 1, 1991, or any prior act or any amendment thereto.
(d) Close corporations, unless otherwise provided in chapter 78A of NRS.
(e) All insurance companies, mutual fire insurance companies, surety companies, express companies, railroad companies, and public utility companies now existing and formed before October 1, 1991, under any other act or law of this state, subject to any special provisions concerning any class of corporations inconsistent with the provisions of this chapter, in which case the special provisions continue to apply.
2. Neither the existence of corporations formed or existing before April 1, 1925, nor any liability, cause of action, right, privilege or immunity validly existing in favor of or against any such corporation on April 1, 1925, are affected, abridged, taken away or impaired by this chapter, or by any change in the requirements for the formation of corporations provided by this chapter, nor by the amendment or repeal of any laws under which such prior existing corporations were formed or created.
κ1995 Statutes of Nevada, Page 2095 (CHAPTER 586, SB 433)κ
Sec. 63. NRS 78.030 is hereby amended to read as follows:
78.030 1. One or more [natural] persons may [associate to] establish a corporation for the transaction of any lawful business, or to promote or conduct any legitimate object or purpose, pursuant and subject to the requirements of this chapter, by:
(a) Executing, acknowledging and filing in the office of the secretary of state articles of incorporation; and
(b) Filing a certificate of acceptance of appointment, executed by the resident agent of the corporation, in the office of the secretary of state.
2. The articles of incorporation [,] must be as provided in NRS 78.035, and the secretary of state shall require [it] them to be in the form prescribed. If any articles are defective in this respect, the secretary of state shall return them for correction.
Sec. 64. NRS 78.035 is hereby amended to read as follows:
78.035 The articles of incorporation must set forth:
1. The name of the corporation. A name appearing to be that of a natural person and containing a given name or initials must not be used as a corporate name except with an additional word or words such as Incorporated, Limited, Inc., Ltd., Company, Co., Corporation, Corp., or other word which identifies it as not being a natural person.
2. The name of the [natural person or corporation] person designated as the corporations resident agent, the street address of the resident agent where process may be served upon the corporation, and the mailing address of the resident agent if different from the street address.
3. The number of shares the corporation is authorized to issue and, if more than one class or series of stock is authorized, the classes, the series and the number of shares of each class or series which the corporation is authorized to issue, unless the articles authorize the board of directors to fix and determine in a resolution the classes, series and numbers of each class or series as provided in NRS 78.195 and 78.196.
4. Whether the members of the governing board are styled as directors or trustees of the corporation, and the number, names and post office box or street addresses, either residence or business, of the first board of directors or trustees, together with any desired provisions relative to the right to change the number of directors as provided in NRS 78.115.
5. The name and post office box or street address, either residence or business of each of the incorporators executing the articles of incorporation.
Sec. 65. NRS 78.090 is hereby amended to read as follows:
78.090 1. Except during any period of vacancy described in NRS 78.097, every corporation must have a resident agent [, who may be either a natural person or a corporation, resident or] who resides or is located in this state. Every resident agent must have a street address for the service of process, and may have a separate mailing address such as a post office box, which may be different from the street address. The street address of the resident agent is the registered office of the corporation in this state.
2. [The] If the resident agent [may be any bank or banking corporation, or other corporation, foreign or domestic, located and doing business in this state, and the] is a bank or corporation [acting as resident agent] , it may:
κ1995 Statutes of Nevada, Page 2096 (CHAPTER 586, SB 433)κ
(a) Act as the fiscal or transfer agent of any state, municipality, body politic or corporation and in that capacity may receive and disburse money.
(b) Transfer, register and countersign certificates of stock, bonds or other evidences of indebtedness and act as agent of any corporation, foreign or domestic, for any purpose required by statute, or otherwise.
(c) Act as trustee under any mortgage or bond issued by any municipality, body politic or corporation, and accept and execute any other municipal or corporate trust not inconsistent with the laws of this state.
(d) Receive and manage any sinking fund of any corporation, upon such terms as may be agreed upon between the corporation and those dealing with it.
3. Every corporation organized pursuant to this chapter [that] which fails or refuses to comply with the requirements of this section is subject to a fine of not less than $100 nor more than $500, to be recovered with costs by the state, before any court of competent jurisdiction, by action at law prosecuted by the attorney general or by the district attorney of the county in which the action or proceeding to recover the fine is prosecuted.
4. All legal process and any demand or notice authorized by law to be served upon a corporation may be served upon the resident agent of the corporation in the manner provided in subsection 2 of NRS 14.020. If any demand, notice or legal process, other than a summons and complaint, cannot be served upon the resident agent, it may be served in the manner provided in NRS 14.030. These manners and modes of service are in addition to any other service authorized by law.
Sec. 66. NRS 78.110 is hereby amended to read as follows:
78.110 [Whenever any] If a corporation created pursuant to this chapter desires to change the location within this state of its registered office, or change its resident agent, or both, the change may be effected by filing with the secretary of state a certificate of change [that] signed by an officer of the corporation which sets forth:
1. The name of the corporation;
2. That the change authorized by this section is effective upon the filing of the certificate of change;
3. The street address of its present registered office;
4. If the present registered office is to be changed, the street address of the new registered office;
5. The name of its present resident agent; and
6. If the present resident agent is to be changed, the name of the new resident agent. [The] A new resident agents certificate of acceptance must be a part of or attached to the certificate of change. [The certificate of change must be signed by two officers, one of whom must be either the president or the secretary of the corporation, and acknowledged before a person authorized by the laws of the state to take acknowledgments of deeds.]
Sec. 67. NRS 78.150 is hereby amended to read as follows:
78.150 1. Each corporation organized under the laws of this state shall, within 60 days after the filing of its articles of incorporation with the secretary of state, and annually thereafter on or before the last day of the month in which the anniversary date of its incorporation occurs in each year, file with the secretary of state a list of its president, secretary and treasurer and all of its directors and a designation of its resident agent in this state, [certified] signed by an officer of the corporation.
κ1995 Statutes of Nevada, Page 2097 (CHAPTER 586, SB 433)κ
its directors and a designation of its resident agent in this state, [certified] signed by an officer of the corporation.
2. Upon filing the list of officers and directors and designation of resident agent, the corporation shall pay to the secretary of state a fee of $85.
3. The secretary of state shall, 60 days before the last day for filing the annual list required by subsection 1, cause to be mailed to each corporation which is required to comply with the provisions of NRS 78.150 to 78.185, inclusive, and which has not become delinquent, the blank forms to be completed and filed with [the secretary of state.] him. Failure of any corporation to receive the forms does not excuse it from the penalty imposed by law.
4. An annual list for a corporation not in default which is received by the secretary of state more than 60 days before its due date shall be deemed an amended list for the previous year.
Sec. 68. NRS 78.195 is hereby amended to read as follows:
78.195 1. If a corporation desires to have more than one class or series of stock, the articles of incorporation must prescribe, or vest authority in the board of directors to prescribe, the classes, series and the number of each class or series of stock and the voting powers, designations, preferences, limitations, restrictions and relative rights of each class or series of stock. If more than one class or series of stock is authorized, the articles of incorporation or the resolution of the board of directors passed pursuant to a provision of the articles must prescribe a distinguishing designation for each class and series. The voting powers, designations, preferences, limitations, restrictions, relative rights and distinguishing designation of each class or series of stock must be described in the articles of incorporation or the resolution of the board of directors before the issuance of shares of that class or series.
2. All shares of a series must have voting powers, designations, preferences, limitations, restrictions and relative rights identical with those of other shares of the same series and, except to the extent otherwise provided in the description of the series, with those of other series of the same class.
3. Unless otherwise provided in the articles of incorporation, no stock issued as fully paid up may ever be assessed and the articles of incorporation must not be amended in this particular.
4. Any rate, condition or time for payment of distributions on any class or series of stock may be made dependent upon any fact or event which may be ascertained outside the articles of incorporation or the resolution providing for the distributions adopted by the board of directors if the manner in which a fact or event may operate upon the rate, condition or time of payment for the distributions is stated in the articles of incorporation or the resolution.
5. If the corporation is authorized to issue more than one class of stock or more than one series of any class, the voting powers, designations, preferences, limitations, restrictions and relative rights of the various classes of stock or series thereof and the qualifications, limitations or restrictions of such rights must be set forth in full or summarized on the face or back of each certificate which the corporation issues to represent the stock, or on the informational statement sent pursuant to NRS 78.235, except that, in lieu thereof, the certificate or informational statement may contain a statement setting forth the office or agency of the corporation from which a stockholder may obtain a copy of a statement setting forth in full or summarizing the voting powers, designations, preferences, limitations, restrictions and relative rights of the various classes of stock or series thereof.
κ1995 Statutes of Nevada, Page 2098 (CHAPTER 586, SB 433)κ
voting powers, designations, preferences, limitations, restrictions and relative rights of the various classes of stock or series thereof. The corporation shall furnish to its stockholders, upon request and without charge, a copy of any such statement or summary.
6. [When stock of any class or series is issued by a resolution of the board of directors pursuant to a provision of the articles of incorporation permitting the issuance, if the voting powers, designations, preferences, limitations, restrictions and relative rights of the stock have not been set forth in the articles of incorporation, they must be set forth in a certificate signed by the corporations president, or a vice president, and its secretary, or an assistant secretary, and acknowledged by the president or vice president before a person authorized by the laws of Nevada to take acknowledgments of deeds. The certificate must be filed before the issuance of the shares.
7.] The provisions of this section do not restrict the directors of a corporation from taking action to protect the interests of the corporation and its stockholders, including, but not limited to, adopting or executing plans, arrangements or instruments that deny rights, privileges, power or authority to a holder of a specified number of shares or percentage of share ownership or voting power.
Sec. 69. NRS 78.207 is hereby amended to read as follows:
78.207 1. Unless otherwise provided in the articles of incorporation, a corporation organized and existing under the laws of this state that desires to change the number of shares of a class and series, if any, of its authorized stock by increasing or decreasing the number of authorized shares of the class and series and correspondingly increasing or decreasing the number of issued and outstanding shares of the same class and series held by each stockholder of record at the effective date and time of the change, may, except as otherwise provided in subsection 2, do so by a resolution adopted by the board of directors, without obtaining the approval of the stockholders. The resolution may also provide for a change of the par value, if any, of the same class and series of the shares increased or decreased. After the effective date and time of the change, the corporation may issue its stock in accordance therewith.
2. A proposal to increase or decrease the number of authorized shares of any class and series, if any, that includes provisions pursuant to which only money will be paid or scrip will be issued to stockholders who:
(a) Before the increase or decrease in the number of shares becomes effective, in the aggregate hold 10 percent or more of the outstanding shares of the affected class and series; and
(b) Would otherwise be entitled to receive fractions of shares in exchange for the cancellation of all of their outstanding shares,
must be approved by the vote of stockholders holding a majority of the voting power of the affected class and series, or such greater proportion as may be provided in the articles of incorporation, regardless of limitations or restrictions on the voting power thereof.
3. Any proposal to increase or decrease the number of authorized shares of any class and series, if any, that includes provisions pursuant to which only money will be paid or scrip will be issued to stockholders who:
κ1995 Statutes of Nevada, Page 2099 (CHAPTER 586, SB 433)κ
(a) Before the increase or decrease in the number of shares becomes effective, hold 1 percent or more of the outstanding shares of the affected class and series; and
(b) Would otherwise be entitled to receive a fraction of a share in exchange for the cancellation of all of their outstanding shares,
is subject to the provisions of [NRS 78.471 to 78.502, inclusive.] sections 35 to 59, inclusive, of this act. If the proposal is subject to those provisions, any stockholder who is obligated to accept money or scrip rather than receive a fraction of a share resulting from the action taken pursuant to this section may dissent in accordance with those provisions and obtain payment of the fair value of the fraction of a share to which the stockholder would otherwise be entitled.
4. A change pursuant to this section [must not be] is not effective until after the filing in the office of the secretary of state of a certificate, signed by the corporations president, or a vice president, and its secretary, or an assistant secretary, and acknowledged by the president or vice president before a person authorized by the laws of this state to take acknowledgments of deeds, setting forth:
(a) The current number of authorized shares and the par value, if any, of each class and series, if any, of shares before the change;
(b) The number of authorized shares and the par value, if any, of each class and series, if any, of shares after the change;
(c) The number of shares of each affected class and series, if any, to be issued after the change in exchange for each issued share of the same class or series;
(d) The provisions, if any, for the issuance of fractional shares, or for the payment of money or the issuance of scrip to stockholders otherwise entitled to a fraction of a share and the percentage of outstanding shares affected thereby;
(e) That, if required, the approval of the affected stockholders has been obtained; and
(f) Whether the change is effective on filing the certificate or, if not, the date and time at which the change will be effective, which must not be more than 90 days after the certificate is filed.
The provisions in the articles of incorporation of the corporation regarding the authorized number and par value, if any, of the changes class and series, if any, of shares shall be deemed amended as provided in the certificate at the effective date and time of the change.
5. Unless an increase or decrease of the number of authorized shares pursuant to this section is accomplished by an action that otherwise requires an amendment to the corporations articles of incorporation, such an amendment is not required by this section.
Sec. 70. NRS 78.3783 is hereby amended to read as follows:
78.3783 1. Except as otherwise provided in subsection 2, acquisition means the direct or indirect acquisition of a controlling interest.
2. Acquisition does not include any acquisition of shares in good faith, and without an intent to avoid the requirements of NRS 78.378 to 78.3793, inclusive:
κ1995 Statutes of Nevada, Page 2100 (CHAPTER 586, SB 433)κ
(a) By an acquiring person authorized pursuant to NRS 78.378 to 78.3793, inclusive, to exercise voting rights, to the extent that the new acquisition does not result in the acquiring person obtaining a controlling interest greater than that previously authorized; or
(b) Pursuant to:
(1) The laws of descent and distribution;
(2) The enforcement of a judgment;
(3) The satisfaction of a pledge or other security interest; or
(4) A merger or reorganization effected in compliance with the provisions of NRS [78.451 to 78.466, inclusive, or 78.622,] 78.622 or sections 28 to 32, inclusive, of this act, to which the issuing corporation is a party.
Sec. 71. NRS 78.403 is hereby amended to read as follows:
78.403 1. A corporation may restate, or amend and restate, in a single certificate the entire text of its articles of incorporation as amended by filing with the secretary of state a certificate entitled Restated Articles of Incorporation of ................, which must set forth the articles as amended to the date of the certificate. If the certificate alters or amends the articles in any manner, it must comply with the provisions of this chapter governing such amendments and must be accompanied by:
(a) A resolution; or
(b) A form prescribed by the secretary of state,
setting forth which provisions of the articles of incorporation on file with the secretary of state are being altered or amended.
2. If the certificate does not alter or amend the articles, it must be signed by the president or vice president and the secretary or assistant secretary of the corporation and must be verified by their signed affidavits that they have been authorized to execute the certificate by resolution of the board of directors adopted on the date stated, and that the certificate correctly sets forth the text of the articles of incorporation as amended to the date of the certificate.
3. The names, signatures and acknowledgments of the incorporators may be omitted from the restated articles [.] and the names and addresses of the present directors must be included instead of the names and addresses of the original directors.
4. Whenever a corporation is required to file a certified copy of its articles, in lieu thereof it may file a certified copy of the most recent certificate restating its articles as amended, subject to the provisions of subsection 2, together with certified copies of all certificates of amendment filed subsequent to the restated articles and certified copies of all certificates supplementary to the original articles.
Sec. 72. NRS 78.730 is hereby amended to read as follows:
78.730 1. Any corporation which did exist or is existing under the laws of this state may, upon complying with the provisions of NRS 78.180, procure a renewal or revival of its charter for any period, together with all the rights, franchises, privileges and immunities, and subject to all its existing and preexisting debts, duties and liabilities secured or imposed by its original charter and amendments thereto, or existing charter, by filing:
(a) A certificate with the secretary of state, which must set forth:
κ1995 Statutes of Nevada, Page 2101 (CHAPTER 586, SB 433)κ
(1) The name of the corporation, which must be the name of the corporation at the time of the renewal or revival, or its name at the time its original charter expired.
(2) The name of the [natural person or corporation] person designated as the resident agent of the [filing] corporation, his street address for the service of process, and his mailing address if different from this street address.
(3) The date when the renewal or revival of the charter is to commence or be effective, which may be, in cases of a revival, before the date of the certificate.
(4) Whether or not the renewal or revival is to be perpetual, and, if not perpetual, the time for which the renewal or revival is to continue.
(5) That the corporation desiring to renew or revive its charter is, or has been, organized and carrying on the business authorized by its existing or original charter and amendments thereto, and desires to renew or continue through revival its existence pursuant to and subject to the provisions of this chapter.
(b) A list of its president, secretary and treasurer and all of its directors and their post office box or street addresses, either residence or business.
2. A corporation whose charter has not expired and is being renewed shall cause the certificate to be signed by its president or vice president and secretary or assistant secretary, verified by those officers before any person authorized by the laws of this state to administer oaths or affirmations. The certificate must be approved by a majority of the voting power of the shares.
3. A corporation seeking to revive its original or amended charter shall cause the certificate to be signed by a person or persons designated or appointed by the stockholders of the corporation and verified by the signer or signers before any person authorized to administer oaths or affirmations. The execution and filing of the certificate must be approved by the written consent of all the stockholders of the corporation and must contain a recital that unanimous consent was secured. The corporation shall pay to the secretary of state the fee required to establish a new corporation pursuant to the provisions of this chapter.
4. The filed certificate, or a copy thereof which has been certified under the hand and seal of the secretary of state, must be received in all courts and places as prima facie evidence of the facts therein stated and of the existence and incorporation of the corporation therein named.
Sec. 73. NRS 78.765 is hereby amended to read as follows:
78.765 1. The fee for filing a certificate changing the number of authorized shares pursuant to NRS 78.207 or a certificate of amendment to articles of incorporation that increases the corporations authorized stock is the difference between the fee computed at the rates specified in NRS 78.760 upon the total authorized stock of the corporation, including the proposed increase, and the fee computed at the rates specified in NRS 78.760 upon the total authorized capital, excluding the proposed increase. In no case may the amount be less than $75.
2. The fee for filing a certificate of amendment to articles of incorporation that does not increase the corporations authorized stock is $75.
κ1995 Statutes of Nevada, Page 2102 (CHAPTER 586, SB 433)κ
3. The fee for filing a certificate pursuant to NRS 78.195 or an amended certificate pursuant to section 60 of this act is $75.
Sec. 74. Chapter 80 of NRS is hereby amended by adding thereto a new section to read as follows:
A foreign corporation organized to render a professional service may not render that service in this state unless the person rendering it is licensed to do so by the appropriate regulating board of this state.
Sec. 75. NRS 80.010 is hereby amended to read as follows:
80.010 1. Before commencing or doing any business in this state, every corporation organized pursuant to the laws of another state, territory, the District of Columbia, a dependency of the United States or a foreign country, that enters this state to do business must:
(a) File in the office of the secretary of state of this state:
(1) A certificate of corporate existence issued not more than 90 days before the date of filing by an authorized officer of the jurisdiction of its incorporation setting forth the filing of documents and instruments related to the articles of incorporation, or the governmental acts or other instrument or authority by which the corporation was created. If the certificate is in a language other than English, a translation, together with the oath of the translator and his attestation of its accuracy, must be attached to the certificate.
(2) A certificate of acceptance of appointment executed by its resident agent, who must be a [person residing] resident or located in this state. The certificate must set forth the name of the resident agent, his street address for the service of process, and his mailing address if different from his street address. The street address of the resident agent is the registered office of the corporation in this state.
(3) A statement executed by an officer of the corporation, acknowledged before a person authorized by the laws of the place where the acknowledgment is taken to take acknowledgments of deeds, setting forth:
(I) A general description of the purposes of the corporation;
(II) The authorized stock of the corporation and the number and par value of shares having par value and the number of shares having no par value.
(b) Lodge in the office of the secretary of state a copy of the document most recently filed by the corporation in the jurisdiction of its incorporation setting forth the authorized stock of the corporation, the number of par value shares and their par value, and the number of no-par-value shares.
2. The secretary of state shall not file the documents required by subsection 1 for any foreign corporation whose name is the same as, or deceptively similar to the name of a corporation, limited partnership or limited-liability company existing under the laws of this state or a foreign corporation, foreign limited partnership or foreign limited-liability company authorized to transact business in this state or a name to which the exclusive right is at the time reserved in the manner provided under the laws of this state, unless the written acknowledged consent of the holder of the registered or reserved name to use the same name or the requested similar name accompanies the articles of incorporation.
κ1995 Statutes of Nevada, Page 2103 (CHAPTER 586, SB 433)κ
3. The secretary of state shall not accept for filing the documents required by subsection 1 or NRS 80.110 for any foreign corporation if the name of the corporation contains the words engineer, engineered, engineering, professional engineer or licensed engineer unless the state board of professional engineers and land surveyors certifies that:
(a) The principals of the corporation are registered to practice engineering or are registered to practice engineering and architecture, except landscape architecture, pursuant to the laws of this state; or
(b) The corporation is exempt from the prohibitions of NRS 625.520.
4. The secretary of state shall not accept for filing the documents required by subsection 1 or NRS 80.110 for any foreign corporation if it appears from the documents that the business to be carried on by the corporation is subject to supervision by the commissioner of financial institutions, unless the commissioner certifies that:
(a) The corporation has obtained the authority required to do business in this state; or
(b) The corporation is not subject to or is exempt from the requirements for obtaining such authority.
Sec. 76. NRS 80.110 is hereby amended to read as follows:
80.110 1. Each foreign corporation doing business in this state shall, within 60 days after the filing of its certificate of corporate existence with the secretary of state, and annually thereafter on or before the last day of the month in which the anniversary date of its qualification to do business in this state occurs in each year, file with the secretary of state a list of its president, secretary and treasurer or their equivalent, and all of its directors and a designation of its resident agent in this state, [certified] signed by an officer of the corporation.
2. Upon filing the list and designation, the corporation shall pay to the secretary of state a fee of $85.
3. The secretary of state shall, 60 days before the last day for filing the annual list required by subsection 1, cause to be mailed to each corporation required to comply with the provisions of NRS 80.110 to 80.170, inclusive, [and] which has not become delinquent, the blank forms to be completed and filed with [the secretary of state.] him. Failure of any corporation to receive the forms does not excuse it from the penalty imposed by the provisions of NRS 80.110 to 80.170, inclusive.
4. An annual list for a corporation not in default which is received by the secretary of state more than 60 days before its due date shall be deemed an amended list for the previous year.
Sec. 77. NRS 81.040 is hereby amended to read as follows:
81.040 Each corporation formed under NRS 81.010 to 81.160, inclusive, must prepare and file articles of incorporation in writing, setting forth:
1. The name of the corporation.
2. The purpose for which it is formed.
3. The name of the [natural person or corporation] person designated as the resident agent, the street address for the service of process, and the mailing address if different from the street address.
4. The term for which it is to exist, which may be perpetual.
κ1995 Statutes of Nevada, Page 2104 (CHAPTER 586, SB 433)κ
5. If formed with stock, the amount of its stock and the number and par value, if any, and the shares into which it is divided, and the amount of common and of preferred stock that may be issued with the preferences, privileges, voting rights, restrictions and qualifications pertaining thereto.
6. The names and addresses of those selected to act as directors, not less than three, for the first year or until their successors have been elected and have accepted office.
7. Whether the property rights and interest of each member are equal or unequal, and if unequal the articles must set forth a general rule applicable to all members by which the property rights and interests of each member may be determined, but the corporation may admit new members who may vote and share in the property of the corporation with the old members, in accordance with the general rule.
8. The name and post office box or street address, either residence or business, of each of the incorporators executing the articles of incorporation.
Sec. 78. NRS 81.200 is hereby amended to read as follows:
81.200 1. Every association formed under NRS 81.170 to 81.270, inclusive, shall prepare articles of association in writing, setting forth:
(a) The name of the association.
(b) The purpose for which it is formed.
(c) The name of the [natural person or corporation] person designated as the resident agent, the street address for service of process, and the mailing address if different from the street address.
(d) The term for which it is to exist, which may be perpetual.
(e) The number of the directors thereof, and the names and residences of those selected for the first year.
(f) The amount which each member is to pay upon admission as a fee for membership, and that each member signing the articles has actually paid the fee.
(g) That the interest and right of each member therein is to be equal.
(h) The name and post office box or street address, either residence or business, of each of the persons executing the articles of association.
2. The articles of association must be subscribed by the original associates or members, and acknowledged by each before some person competent to take an acknowledgment of a deed in this state.
3. The articles so subscribed and acknowledged must be filed, together with a certificate of acceptance of appointment executed by the resident agent for the association, in the office of the secretary of state, who shall furnish a certified copy thereof. From the time of the filing in the office of the secretary of state, the association may exercise all the powers for which it was formed.
Sec. 79. NRS 81.440 is hereby amended to read as follows:
81.440 Each corporation formed under NRS 81.410 to 81.540, inclusive, shall prepare and file articles of incorporation in writing, setting forth:
1. The name of the corporation.
2. The purpose for which it is formed.
3. The name of the [natural person or corporation] person designated as the resident agent, the street address for service of process, and the mailing address if different from the street address.
4. The term for which it is to exist, which may be perpetual.
κ1995 Statutes of Nevada, Page 2105 (CHAPTER 586, SB 433)κ
5. The number of directors thereof, which must be not less than three and which may be any number in excess thereof, and the names and residences of those selected for the first year and until their successors have been elected and have accepted office.
6. Whether the voting power and the property rights and interest of each member are equal or unequal, and if unequal the articles must set forth a general rule applicable to all members by which the voting power and the property rights and interests of each member may be determined, but the corporation may admit new members who may vote and share in the property of the corporation with the old members, in accordance with the general rule.
7. The name and post office box or street address, either residence or business, of each of the incorporators executing the articles of incorporation.
Sec. 80. NRS 82.011 is hereby amended to read as follows:
82.011 Articles of incorporation and articles are synonymous terms and, unless the context otherwise requires, include all certificates filed pursuant to NRS 82.081, 82.346, 82.356 and 82.371 and any agreement of merger filed pursuant to [NRS 82.376 to 82.411, inclusive.] sections 2 to 34, inclusive, of this act.
Sec. 81. NRS 82.041 is hereby amended to read as follows:
82.041 Registered office of a corporation means the office maintained at the street address of its [registered] resident agent.
Sec. 82. NRS 82.086 is hereby amended to read as follows:
82.086 The articles of incorporation must set forth:
1. The name of the corporation. A name appearing to be that of a natural person and containing a given name or initials must not be used as a corporate name except with an additional word or words such as Incorporated, Inc., Limited, Ltd., Company, Co., Corporation, Corp., or other word which identifies it as not being a natural person.
2. The name of the [natural person or corporation] person designated as the corporations resident agent, [the resident agents] his street address where [it] he maintains an office for service of process, and [the resident agents] his mailing address if different from the street address.
3. That the corporation is a nonprofit corporation.
4. The nature of the business, or objects or purposes proposed to be transacted, promoted or carried on by the corporation. It is sufficient to state, either alone or with other purposes, that the corporation may engage in any lawful activity, subject to expressed limitations, if any. Such a statement makes all lawful activities within the objects or purposes of the corporation.
5. Whether the members of the governing board are styled directors or trustees of the corporation, and the number, names and post office box or street addresses, residence or business, of the first board of directors or trustees, together with any desired provisions relative to the right to change the number of directors.
6. The names and post office box or street address, residence or business, of each of the incorporators signing the articles of incorporation.
Sec. 83. NRS 82.146 is hereby amended to read as follows:
82.146 1. Each corporation shall, within 60 days after the filing of its articles of incorporation with the secretary of state, and annually thereafter on or before the last day of the month in which the anniversary date of its incorporation occurs in each year, file with the secretary of state a list of its president, secretary and treasurer and all of its directors and a designation of its resident agent in this state, [certified] signed by an officer of the corporation.
κ1995 Statutes of Nevada, Page 2106 (CHAPTER 586, SB 433)κ
incorporation occurs in each year, file with the secretary of state a list of its president, secretary and treasurer and all of its directors and a designation of its resident agent in this state, [certified] signed by an officer of the corporation.
2. Upon filing the list of officers and directors and designation of resident agent, the corporation shall pay to the secretary of state a fee of $15.
Sec. 84. Chapter 86 of NRS is hereby amended by adding thereto the provisions set forth as sections 84.5 to 89, inclusive, of this act.
Sec. 84.5. Majority in interest means a majority of the interests in capital and profits of the members of a limited-liability company which:
1. In the case of capital, is determined as of the date of the dissolution event.
2. In the case of profits, is based on any reasonable estimate of profits for the period beginning on the date of the dissolution event or the date the members consider any proposed transfer or assignment of the interest of a member of the company and ending on the anticipated date of the dissolution of the company, including any present or future division of profits distributed pursuant to the operating agreement of the company in effect on the date the members consider the proposed transfer or assignment or the date of the dissolution event.
Sec. 85. Resident agent means the agent appointed by the company upon whom process or a notice or demand authorized by law to be served upon the company may be served.
Sec. 86. An operating agreement may be adopted for a limited-liability company, but only by the unanimous vote or unanimous written consent of the members. Unless otherwise provided in the operating agreement, amendments may only be adopted by the unanimous vote or written consent of the persons who are members at the time of amendment.
Sec. 87. (Deleted by amendment.)
Sec. 88. 1. Unless otherwise provided in the operating agreement, a member, regardless of the nature of his contributions, has no right to demand or receive any distribution from a limited-liability company in any form other than cash.
2. Except as otherwise provided in NRS 86.391 and 86.521, and unless otherwise provided in the operating agreement, at the time a member becomes entitled to receive a distribution he has the status of and is entitled to all remedies available to a creditor of the limited-liability company with respect to the distribution.
Sec. 89. The dissolution of a limited-liability company does not impair any remedy or cause of action available to or against it or its managers or members arising before its dissolution and commenced within 2 years after the date of the dissolution. It continues as a company for the purpose of prosecuting and defending suits, actions, proceedings and claims of any kind or nature by or against it and of enabling it gradually to settle and close its business, to collect and discharge its obligations, to dispose of and convey its property, and to distribute its assets, but not for the purpose of continuing the business for which it was established.
κ1995 Statutes of Nevada, Page 2107 (CHAPTER 586, SB 433)κ
Sec. 89.5. NRS 86.011 is hereby amended to read as follows:
86.011 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 86.021 to 86.121, inclusive, and sections 84.5 and 85 of this act, have the meanings ascribed to them in those sections.
Sec. 90. (Deleted by amendment.)
Sec. 91. NRS 86.151 is hereby amended to read as follows:
86.151 [Two]
1. One or more persons may form a limited-liability company by:
[1.] (a) Executing, acknowledging and filing in the office of the secretary of state articles of organization for the company; and
[2.] (b) Filing a certificate of acceptance of appointment, executed by the resident agent of the [limited-liability] company, in the office of the secretary of state [.] ,
but the articles must list one or more managers or, if there are no managers, two or more members.
2. Upon the filing of the articles of organization and the certificate of acceptance, and the payment of the filing fees, the secretary of state shall issue to the company a certificate that the articles, containing the required statement of facts, have been filed.
3. A signer of the articles of organization or a manager designated in the articles does not thereby become a member of the company. At all times after commencement of business by the company, the company must have two or more members. The filing of the articles does not, by itself, constitute commencement of business by the company.
Sec. 92. NRS 86.161 is hereby amended to read as follows:
86.161 1. The articles of organization must set forth:
(a) The name of the limited-liability company;
(b) The [period of its duration, which may not exceed 30 years from the date of filing with the secretary of state;
(c) The purposes for] latest date upon which the company is [organized;
(d) The address of the office where its records will be maintained as required by NRS 86.241, the] to dissolve;
(c) The name and complete street address of its resident agent, and the mailing address of the resident agent if different from the street address;
[(e) The right, if given, of the members to admit additional members, and the terms and conditions of the admission;
(f)] (d) The right, if given, of the remaining members of the company to continue the business on the death, retirement, resignation, expulsion, bankruptcy or dissolution of a member or occurrence of any other event which terminates the continued membership of a member in the company; and
[(g) Any]
(e) The name and post office or street address, either residence or business, of each of the organizers executing the articles.
2. The articles may set forth any other provision, not inconsistent with law, which the members elect to set out in the articles of organization for the regulation of the internal affairs of the company, including any provisions which under this chapter are required or permitted to be set out in the operating agreement of the company.
κ1995 Statutes of Nevada, Page 2108 (CHAPTER 586, SB 433)κ
[2.] 3. If the company is to be managed by a manager or managers, the articles of organization must so state and must set out the names and post office box or street addresses, either residence or business, of the manager or managers who are to serve until the first annual meeting of members or until their successors are elected and qualify. If the management of a limited-liability company is reserved to the members, the names and post office box or street addresses , either residence or business, of the members must be set out in the articles of organization, and the rights, if any, of the members to contract debts on behalf of the limited-liability company.
[3.] 4. It is not necessary to set out in the articles of organization any of the powers enumerated in this chapter.
Sec. 93. NRS 86.171 is hereby amended to read as follows:
86.171 1. The name of a limited-liability company formed under the provisions of this chapter must contain the words Limited-Liability Company, Limited Company, or Limited or the abbreviations Ltd., L.L.C., L.C., LLC or LC. The word Company may be abbreviated as Co.
2. The name of the [limited-liability] company may not [:
(a) Contain a word or phrase which indicates or implies that it is organized for a purpose other than one or more of the purposes contained in its articles of organization; and
(b) Be] be the same as, or deceptively similar to the name of a limited-liability company, limited partnership or corporation existing under the laws of this state or a foreign limited-liability company, foreign limited partnership or foreign corporation authorized to transact business in this state, or a name the exclusive right to which is, at the time, reserved in the manner provided under the laws of this state, unless the written acknowledged consent of the holder of the registered or reserved name to use the same name or the requested similar name accompanies the articles of organization.
Sec. 94. NRS 86.201 is hereby amended to read as follows:
86.201 1. Upon filing the articles of organization and the certificate of acceptance of the resident agent, and the payment of filing fees, the limited-liability company is considered [organized, and the filed articles of organization are rebuttable evidence that all conditions precedent required to be performed by the members have been complied with and that the limited-liability company has been] legally organized pursuant to this chapter.
2. A limited-liability company must not transact business or incur indebtedness, except that which is incidental to its organization or to obtaining subscriptions for or payment of contributions, until the secretary of state has filed the articles of organization and the certificate of acceptance.
Sec. 95. NRS 86.221 is hereby amended to read as follows:
86.221 1. The articles of organization of a limited-liability company must be amended when:
(a) There is a change in the name of the company;
(b) [There is a false or erroneous statement in the articles of organization;
(c)] There is a change in the time as stated in the articles of organization for the dissolution of the company; or
[(d)] (c) A time is fixed for the dissolution of the company if no time is specified in the articles of organization . [;
κ1995 Statutes of Nevada, Page 2109 (CHAPTER 586, SB 433)κ
(e) A new or substituted member is admitted; or
(f) The members desire to make a change in any other statement in the articles of organization to represent accurately the agreement between them.
2. A certificate of amendment must set]
2. The articles may be amended for any other purpose, not inconsistent with law, as determined by all of the members or permitted by the articles or an operating agreement.
3. An amendment must be made in the form of a certificate setting forth:
(a) The name of the limited-liability company;
(b) The date of filing of the articles of organization; and
(c) The amendment to the articles of organization.
[3. The]
4. The certificate of amendment must be signed and acknowledged by [all members and an amendment adding a new member must also be signed and acknowledged by the member to be added.
4.] a manager of the company, or if there is no manager, then by a member.
5. Restated articles of organization may be executed and filed in the same manner as a certificate of amendment.
Sec. 96. NRS 86.226 is hereby amended to read as follows:
86.226 1. [Signed] A signed and acknowledged [duplicate originals of any certificates] certificate of amendment, or [two certified copies of any] a certified copy of a judicial decree of amendment, must be [delivered to] filed with the secretary of state. A person who executes a certificate as an agent, officer or fiduciary need not exhibit evidence of his authority as a prerequisite to filing. Unless the secretary of state finds that [any] a certificate does not conform to law, upon receipt of all filing fees required by law he shall [:
(a) Endorse on each duplicate original the word Filed and the day, month and year of the filing thereof;
(b) File one duplicate original in his office; and
(c) Return the other duplicate original or copy to the person who filed it or that persons representative.] file the certificate.
2. Upon the filing of a certificate of amendment or judicial decree of amendment in the office of the secretary of state, the articles of organization are amended as set forth therein.
Sec. 97. NRS 86.231 is hereby amended to read as follows:
86.231 1. Except during any period of vacancy described in NRS 86.251, a limited-liability company shall have a resident agent who [may be either a natural person, a domestic corporation or a foreign corporation authorized to do business in this state. Every resident agent] must have a street address for the service of process. The street address of the resident agent is the registered office of the limited-liability company in this state.
2. Within 30 days after changing the location of his office from one address to another in this state, a resident agent [must] shall file a certificate with the secretary of state setting forth the names of the limited-liability companies represented by him, the address at which he has maintained the office for each of the limited-liability companies, and the new address to which the office is transferred.
κ1995 Statutes of Nevada, Page 2110 (CHAPTER 586, SB 433)κ
Sec. 98. NRS 86.241 is hereby amended to read as follows:
86.241 1. Each limited-liability company shall continuously maintain in this state an office, which may but need not be a place of its business in this state , [or its registered office,] at which it shall keep [:] , unless otherwise provided by an operating agreement:
(a) A current list of the full name and last known business address of each member and manager , separately identifying the members in alphabetical order and the managers, if any, in alphabetical order;
(b) A copy of the filed articles of organization and all amendments thereto, together with executed copies of any powers of attorney pursuant to which any document has been executed; and
(c) [Copies of the companys federal income tax returns and reports, if any, for the 3 most recent years;
(d)] Copies of any then effective [written] operating agreement [and of any financial statements] of the company . [for the 3 most recent years; and
(e) Unless contained in the articles of organization, a writing setting out:
(1) The amount of cash and a description and statement of the agreed value of the other property or services contributed by each member and which each member has agreed to contribute;
(2) The items as which or events on the happening of which any additional contributions agreed to be made by each member are to be made;
(3) Any right of a member to receive, or of a manager to make, distributions to a member which include a return of all or any part of the members contribution; and
(4) Any events upon the happening of which the limited liability is to be dissolved and its affairs wound up.]
2. Records kept pursuant to this section are subject to inspection and copying at the reasonable request, and at the expense, of any member during ordinary business hours [.] , unless otherwise provided in an operating agreement.
Secs. 99 and 100. (Deleted by amendment.)
Sec. 101. NRS 86.263 is hereby amended to read as follows:
86.263 1. Each limited-liability company shall, on or before the last day of the month in which the anniversary date of its formation occurs in each year, file with the secretary of state a list of its managers or, if none, its members, and a designation of its resident agent, [certified] signed by a manager or, if [none,] there is no manager, by a member of the company.
2. Upon filing the list of managers or members and designation of resident agent, the limited-liability company shall pay to the secretary of state a fee of $85.
3. The secretary of state shall, 60 days before the last day for filing the list required by subsection 1, cause to be mailed to each limited-liability company required to comply with the provisions of this section, [and] which has not become delinquent, the blank forms to be completed and filed with [the secretary of state.] him. Failure of any company to receive the forms does not excuse it from the penalty imposed by law.
4. An annual list of managers or members and designation of resident agent for a limited-liability company not in default received by the secretary of state more than 60 days before its due date shall be deemed an amended list for the previous year.
κ1995 Statutes of Nevada, Page 2111 (CHAPTER 586, SB 433)κ
of state more than 60 days before its due date shall be deemed an amended list for the previous year.
Sec. 102. (Deleted by amendment.)
Sec. 103. NRS 86.331 is hereby amended to read as follows:
86.331 1. [Except as otherwise provided in NRS 463.5733, a member is not entitled to receive out of a limited-liability company property any part of his contributions to capital until:
(a) All liabilities of the company, except liabilities to members on account of their contributions to capital, have been paid or there remains property of the company sufficient to pay them;
(b) The consent of all members is had, unless the return of the contribution to capital may be rightfully demanded as provided in this chapter; or
(c) The articles of organization are canceled or so amended as to set out the withdrawal or reduction.
2. Subject to the provisions of subsection 1 of this section, a member may rightfully demand the return of his or its contribution:
(a) On the dissolution of the limited-liability company; or
(b) After he has given all other members of the limited-liability company 6 months prior notice in writing, if no time is specified in the articles of organization for the dissolution of the limited-liability company.
3. In the absence of a statement in the articles of organization to the contrary or the consent of all members of the company, a member, irrespective of the nature of his contribution, has only the right to demand and receive cash in return for his or its contribution to capital.
4. A member of a limited-liability company may petition the district court to order the company dissolved and its affairs wound up when:
(a) The member rightfully but unsuccessfully has demanded the return of his or its contribution; or
(b) The other liabilities of the company have not been paid, or the companys property is insufficient for their payment and the member would otherwise be entitled to the return of his contribution.] A member may resign from a limited-liability company at the time or upon the happening of events specified in the articles of organization or an operating agreement. If the articles of organization or operating agreement do not otherwise provide the time or the events upon the happening of which a member may resign, a member may resign upon not less than 6 months prior written notice to the limited-liability company at the office of its resident agent and to a manager, or if there is no manager, each member at the members or managers address as set forth on the records of the company. The articles of organization or an operating agreement may provide that a member may not resign from a company or assign his interest before the dissolution and winding up of the company, subject to the provisions of chapter 463 of NRS or other applicable law.
2. The amount that a resigning member is entitled to receive must be determined pursuant to the provisions of this chapter, chapter 463 of NRS, the articles of organization or the operating agreement. If not otherwise provided therein, then a resigning member is entitled to receive, within a reasonable time after resignation, the fair value of his interest, as of the date of resignation, based upon his right to share in distributions from the company.
κ1995 Statutes of Nevada, Page 2112 (CHAPTER 586, SB 433)κ
Sec. 103.5. NRS 86.351 is hereby amended to read as follows:
86.351 1. The interest of each member of a limited-liability company is personal property, and except as otherwise provided in this section may be transferred or assigned as provided in the operating agreement. If [all] less than a majority in interest of the other members of the company other than the member proposing to dispose of his interest [do] does not approve of the proposed transfer or assignment , [by unanimous written consent,] the transferee of the members interest has no right to participate in the management of the business and affairs of the company or to become a member. The transferee is only entitled to receive the share of profits or other compensation by way of income, and the return of contributions, to which that member would otherwise be entitled.
2. A substituted member is a person admitted to all the rights of a member who has died or has assigned his interest in a limited-liability company with the approval of [all] a majority in interest of the members of the company . [by unanimous written consent.] The substituted member has all the rights and powers and is subject to all the restrictions and liabilities of his assignor, except that the substitution of the assignee does not release the assignor from liability to the company under this section.
Sec. 104. NRS 86.371 is hereby amended to read as follows:
86.371 [The members of a limited-liability company and the managers of a limited-liability company managed by a manager or managers are not liable under a judgment, decree or order of a court, or in any other manner, for a debt, obligation or liability of the company.] Unless otherwise provided in the articles of organization or an agreement signed by the member or manager to be charged, no member or manager of any limited-liability company formed under the laws of this state is individually liable for the debts or liabilities of the company.
Sec. 105. NRS 86.491 is hereby amended to read as follows:
86.491 [1.] A limited-liability company organized under this chapter must be dissolved [upon the occurrence of any of the following events:
(a) When the period fixed for the duration of the limited-liability company expires;
(b)] and its affairs wound up:
1. At the time specified in the articles of organization;
2. Upon the occurrence of an event specified in an operating agreement;
3. By the unanimous written agreement of all members; or
[(c)] 4. Upon the death, insanity, retirement, resignation, expulsion, bankruptcy or dissolution of a member or occurrence of any other event which terminates his continued membership in the company, unless the business of the company is continued by the consent of not less than a majority in interest of all the remaining members under a right to do so stated in the articles of organization of the company [.
2. As soon as possible after the occurrence of any of the events specified in this section, the company must execute a statement of intent to dissolve in such form as prescribed by the secretary of state.] or a majority in interest of all remaining members agrees in writing within 90 days after the event to continue the business of the company.
κ1995 Statutes of Nevada, Page 2113 (CHAPTER 586, SB 433)κ
Sec. 106. NRS 86.521 is hereby amended to read as follows:
86.521 1. In settling accounts after dissolution, the liabilities of a limited-liability company are entitled to payment in the following order:
(a) Those to creditors, including members who are creditors, in the order of priority as provided and to the extent otherwise permitted by law, except those to members of the limited-liability company on account of their contributions;
(b) Those to members of the limited-liability company in respect of their share of the profits and other compensation by way of income on their contributions; and
(c) Those to members of the limited-liability company in respect of their contributions to capital.
2. Subject to any statement in the operating agreement, members share in the companys assets in respect to their claims for capital and in respect to their claims for profits or for compensation by way of income on their contributions, respectively, in proportion to the respective amounts of the claims.
Sec. 107. NRS 86.531 is hereby amended to read as follows:
86.531 1. When all debts, liabilities and obligations have been paid and discharged or adequate provision has been made therefor and all of the remaining property and assets have been distributed to the members, articles of dissolution must be [executed in duplicate and verified by the person signing the articles, which must set forth:
1.] prepared, signed and acknowledged, setting forth:
(a) The name of the limited-liability company;
[2. That the secretary of state has theretofore endorsed a statement of intent to dissolve the company as filed and the date on which such statement was filed:
3.] (b) That all debts, obligations and liabilities have been paid and discharged or that adequate provision has been made therefor;
[4.] (c) That all the remaining property and assets have been distributed among its members in accordance with their respective rights and interests; and
[5.] (d) That there are no suits pending against the company in any court or that adequate provision has been made for the satisfaction of any judgment, order or decree which may be entered against it in any pending suit.
2. The articles must be signed by a manager, or if there is no manager by a member, of the company.
Sec. 108. NRS 86.541 is hereby amended to read as follows:
86.541 1. [Two signed copies of the] The signed and acknowledged articles of dissolution must be [delivered to] filed with the secretary of state. Unless the secretary of state finds that the articles of dissolution do not conform to law, he shall when all fees and license taxes prescribed by law have been paid [:
(a) Endorse on each of such duplicate originals the word Filed and the month, day and year of the filing thereof; and
(b) File one of the duplicate originals in this office.
2. One duplicate original of the articles of dissolution filed by the secretary of state must be returned to the representative of the dissolved limited-liability company.]
κ1995 Statutes of Nevada, Page 2114 (CHAPTER 586, SB 433)κ
liability company.] issue a certificate that the limited-liability company is dissolved.
2. Upon the filing of the articles of dissolution the existence of the company ceases, except for the purpose of suits, other proceedings and appropriate action as provided in this chapter. The manager or managers in office at the time of dissolution, or the survivors of them, are thereafter trustees for the members and creditors of the dissolved company and as such have authority to distribute any property of the company discovered after dissolution, convey real estate and take such other action as may be necessary on behalf of and in the name of the dissolved company.
[3. The articles of organization must be canceled by the secretary of state upon filing of the articles of dissolution.]
Secs. 109 and 110. (Deleted by amendment.)
Sec. 111. NRS 88.315 is hereby amended to read as follows:
88.315 As used in this chapter, unless the context otherwise requires:
1. Certificate of limited partnership means the certificate referred to in NRS 88.350, and the certificate as amended or restated.
2. Contribution means any cash, property, services rendered, or a promissory note or other binding obligation to contribute cash or property or to perform services, which a partner contributes to a limited partnership in his capacity as a partner.
3. Event of withdrawal of a general partner means an event that causes a person to cease to be a general partner as provided in NRS 88.450.
4. Foreign limited partnership means a partnership formed under the laws of any state other than this state and having as partners one or more general partners and one or more limited partners.
5. General partner means a person who has been admitted to a limited partnership as a general partner in accordance with the partnership agreement and named in the certificate of limited partnership as a general partner.
6. Limited partner means a person who has been admitted to a limited partnership as a limited partner in accordance with the partnership agreement.
7. Limited partnership and domestic limited partnership mean a partnership formed by two or more persons under the laws of this state and having one or more general partners and one or more limited partners.
8. Partner means a limited or general partner.
9. Partnership agreement means any valid agreement, written or oral, of the partners as to the affairs of a limited partnership and the conduct of its business.
10. Partnership interest means a partners share of the profits and losses of a limited partnership and the right to receive distributions of partnership assets.
11. Person means a natural person, partnership, limited partnership (domestic or foreign), trust, estate, association or corporation.
12. Resident agent means the agent appointed by the limited partnership upon whom process or a notice or demand authorized by law to be served upon the limited partnership may be served.
13. State means a state, territory or possession of the United States, the District of Columbia or the Commonwealth of Puerto Rico.
κ1995 Statutes of Nevada, Page 2115 (CHAPTER 586, SB 433)κ
Sec. 112. NRS 88.330 is hereby amended to read as follows:
88.330 1. Each limited partnership shall continuously maintain in this state:
(a) An office, which may but need not be a place of its business in this state, at which must be kept the records required by NRS 88.335 to be maintained; and
(b) A resident agent . [for service of process on the limited partnership, who must be a natural person who is a resident of this state, a domestic corporation or a foreign corporation authorized to do business in this state.]
2. Every [such] resident agent shall file a certificate [thereof] in the office of the secretary of state [.] , setting forth his street address where process may be served upon the limited partnership and his mailing address if different from the street address.
3. Within 30 days after changing the location of his office from one address to another in this state, a resident agent shall file a certificate with the secretary of state setting forth the names of the limited partnerships represented by the agent, the address at which [the agent] he has maintained the office for each of the limited partnerships, and the new address to which the office is transferred.
4. Within 30 days after changing the location of the office which contains records for a limited partnership, [the agent] a general partner of the limited partnership shall file a [notice of the] certificate of a change in address with the secretary of state which sets forth the name of the limited partnership, the previous address of the office which contains records and the new address of the office [.] which contains records.
Sec. 113. (Deleted by amendment.)
Sec. 114. NRS 88.350 is hereby amended to read as follows:
88.350 1. In order to form a limited partnership, a certificate of limited partnership must be executed and filed in the office of the secretary of state. The certificate must set forth:
(a) The name of the limited partnership;
(b) The address of the office which contains records and the name and address of the resident agent required to be maintained by NRS 88.330;
(c) The name and the business address of each general partner;
(d) The latest date upon which the limited partnership is to dissolve; and
(e) Any other matters the general partners determine to include therein.
2. A certificate of acceptance of appointment of a resident agent, executed by the agent, must be filed with the certificate of limited partnership.
3. A limited partnership is formed at the time of the filing of the certificate of limited partnership and the certificate of acceptance in the office of the secretary of state or at any later time specified in the certificate of limited partnership if, in either case, there has been substantial compliance with the requirements of this section.
Sec. 115. NRS 88.355 is hereby amended to read as follows:
88.355 1. A certificate of limited partnership is amended by filing a certificate of amendment thereto in the office of the secretary of state. The certificate must set forth:
(a) The name of the limited partnership;
(b) The date of filing of the certificate [;] of limited partnership; and
κ1995 Statutes of Nevada, Page 2116 (CHAPTER 586, SB 433)κ
(c) The amendment . [to the certificate.]
2. Within 30 days after the happening of any of the following events an amendment to a certificate of limited partnership reflecting the occurrence of the event or events must be filed:
(a) The admission of a new general partner;
(b) The withdrawal of a general partner; or
(c) The continuation of the business under NRS 88.550 after an event of withdrawal of a general partner.
3. A general partner who becomes aware that any statement in a certificate of limited partnership was false when made or that any arrangements or other facts described , except the address of its office or the name or address of its resident agent, have changed, making the certificate inaccurate in any respect, shall promptly amend the certificate.
4. A certificate of limited partnership may be amended at any time for any other proper purpose the general partners determine.
5. No person has any liability because an amendment to a certificate of limited partnership has not been filed to reflect the occurrence of any event referred to in subsection 2 if the amendment is filed within the 30-day period specified in subsection 2.
6. A restated certificate of limited partnership may be executed and filed in the same manner as a certificate of amendment.
Secs. 116 and 117. (Deleted by amendment.)
Sec. 118. NRS 88.500 is hereby amended to read as follows:
88.500 A limited partner may withdraw from a limited partnership only at the time or upon the happening of events specified in writing in the partnership agreement. [If the agreement does not specify in writing the time or the events upon the happening of which a limited partner may withdraw or a definite time for the dissolution and winding up of the limited partnership, a limited partner may withdraw upon not less than 6 months prior written notice to each general partner at his address on the books of the limited partnership at its office in this state.]
Sec. 119. NRS 88.575 is hereby amended to read as follows:
88.575 Before transacting business in this state, a foreign limited partnership shall register with the secretary of state. In order to register, a foreign limited partnership shall submit to the secretary of state [, in duplicate,] an application for registration as a foreign limited partnership, signed and [sworn to] acknowledged by a general partner and a signed certificate of acceptance of a resident agent . [for service of process.] The application for registration must set forth:
1. The name of the foreign limited partnership and, if different, the name under which it proposes to register and transact business in this state;
2. The state and date of its formation;
3. The name and address of the resident agent whom the foreign limited partnership elects to appoint ; [, who must be a natural person who is a resident of this state, a domestic corporation or a foreign corporation having a place of business in, and authorized to do business in this state;]
4. A statement that the secretary of state is appointed the agent of the foreign limited partnership for service of process if the resident agents authority has been revoked or if the resident agent cannot be found or served with the exercise of reasonable diligence;
κ1995 Statutes of Nevada, Page 2117 (CHAPTER 586, SB 433)κ
authority has been revoked or if the resident agent cannot be found or served with the exercise of reasonable diligence;
5. The address of the office required to be maintained in the state of its organization by the laws of that state or, if not so required, of the principal office of the foreign limited partnership;
6. The name and business address of each general partner; and
7. The address of the office at which is kept a list of the names and addresses of the limited partners and their capital contributions, together with an undertaking by the foreign limited partnership to keep those records until the foreign limited partnerships registration in this state is canceled or withdrawn.
Sec. 120. NRS 88.580 is hereby amended to read as follows:
88.580 [1.] If the secretary of state finds that an application for registration conforms to law and all requisite fees have been paid, he shall [:
(a) Endorse on the application the word Filed, and the month, day and year of the filing thereof;
(b) File in his office a duplicate original of the application; and
(c) Issue] issue a certificate of registration to transact business in this state [.
2. The certificate of registration, together with a duplicate original of the application, must be returned] and mail it to the person who filed the application or his representative.
Sec. 121. NRS 89.020 is hereby amended to read as follows:
89.020 As used in this chapter, unless the context requires otherwise:
1. Employee means a person [duly] licensed or otherwise legally authorized to render professional service within this state who renders such service through a professional corporation or a professional association, but does not include clerks, bookkeepers, technicians or other [individuals] persons who are not usually considered by custom and practice of the profession to be rendering professional services to the public.
2. Licensed means legally authorized by the appropriate regulating board of this state to engage in a regulated profession in this state.
1. Professional association means a common law association of two or more persons [duly] licensed or otherwise legally authorized to render professional service within this state when created by written articles of association which contain in substance the following provisions characteristic of corporate entities:
(a) The death, insanity, bankruptcy, retirement, resignation, expulsion or withdrawal of any member of the association [shall] does not cause its dissolution.
(b) The authority to manage the affairs of the association [shall be] is vested in a board of directors or an executive board or committee, elected by the members of the association.
(c) The members of the association [shall be] are employees of the association.
(d) Members ownership [interests are] is evidenced by [membership certificates.
3.] certificates.
κ1995 Statutes of Nevada, Page 2118 (CHAPTER 586, SB 433)κ
4. Professional corporation means a corporation organized under this chapter [for the purpose of rendering] to render a professional service.
[4.] 5. Professional service means any type of personal service which may legally be performed only pursuant to a license, certificate of registration or other legal authorization.
[5.] 6. Regulating board means the body which regulates and authorizes the admission to the profession which a professional corporation or a professional association is authorized to perform.
Sec. 122. NRS 89.040 is hereby amended to read as follows:
89.040 1. One or more persons may organize a professional corporation in the manner provided for organizing a private corporation pursuant to chapter 78 of NRS. [If more than one person organizes such a corporation, each of the persons] Each person organizing the corporation must, except as otherwise provided in subsection 2 of NRS 89.050, be authorized to perform the [same] professional service [.] for which the corporation is organized. The articles of incorporation must contain the following additional information:
(a) The profession to be practiced by means of the professional corporation.
(b) The names and [residential] post office box or street addresses , either residence or business, of the original stockholders and directors of the professional corporation.
(c) A certificate from the regulating board of the profession to be practiced showing that each of the directors, and each of the stockholders who is a natural person, is licensed to practice the profession.
2. The corporate name of a professional corporation must contain the words Professional Corporation or the abbreviation Prof. Corp., or the word Chartered or Limited or the abbreviation Ltd. The corporate name must contain the last name of one or more of its stockholders. The corporation may render professional services and exercise its authorized powers under a fictitious name if the corporation has first registered the name in the manner required by chapter 602 of NRS.
Sec. 123. NRS 89.070 is hereby amended to read as follows:
89.070 1. Except as otherwise provided in subsections 2 and 3:
(a) No corporation organized under the provisions of this chapter may issue any of its stock to anyone other than a natural person who is licensed [or authorized] to render the same specific professional services as those for which the corporation was incorporated.
(b) No stockholder of a corporation organized under this chapter may enter into a voting trust agreement or any other type of agreement vesting another person with the authority to exercise the voting power of any or all of his stock, unless the other person is licensed [or authorized] to render the same specific professional services as those for which the corporation was incorporated.
(c) No shares of a corporation organized under this chapter may be sold or transferred except to a natural person who is eligible to be a stockholder of the corporation or to the personal representative or estate of a deceased or legally incompetent stockholder. The personal representative or estate of the stockholder may continue to own shares for a reasonable period, but may not participate in any decisions concerning the rendering of professional services.
κ1995 Statutes of Nevada, Page 2119 (CHAPTER 586, SB 433)κ
stockholder may continue to own shares for a reasonable period, but may not participate in any decisions concerning the rendering of professional services. The articles of incorporation or bylaws may provide specifically for additional restrictions on the transfer of shares and may provide for the redemption or purchase of the shares by the corporation, its stockholders or an eligible individual account plan complying with the requirements of subsection 2 at prices and in a manner specifically set forth. A stockholder may transfer his shares in the corporation or any other interest in the assets of the corporation to a revocable trust if he acts as trustee of the revocable trust and any person who acts as cotrustee and is not licensed to perform the services for which the corporation was incorporated does not participate in any decisions concerning the rendering of those services.
2. A person not licensed to render the professional services for which the corporation was incorporated may own a beneficial interest in any of the assets, including corporate shares, held for his account by an eligible individual account plan sponsored by the professional corporation for the benefit of its employees, which is intended to qualify under section 401 of the Internal Revenue Code (26 U.S.C. § 401) if the terms of the trust are such that the total number of shares which may be distributed for the benefit of persons not licensed to render the professional services for which the corporation was incorporated is less than a controlling interest and:
(a) The trustee of the trust is licensed to render the same specific professional services as those for which the corporation was incorporated; or
(b) The trustee is not permitted to participate in any corporate decisions concerning the rendering of professional services in his capacity as trustee. A trustee who is individually a stockholder of the corporation may participate in his individual capacity as a stockholder, director or officer in any corporate decision.
3. A professional corporation in which all the stockholders who are natural persons are licensed [or authorized] to render the same specific professional service, may acquire and hold stock in another professional corporation, or in a similar corporation organized pursuant to the corresponding law of another state, if all the stockholders who are natural persons of the corporation whose stock is acquired are licensed [or authorized] in that corporations state of incorporation to render the same specific professional service as the stockholders who are natural persons of the professional corporation that acquires the stock.
4. Any act in violation of this section is void and does not pass any rights or privileges or vest any powers, except to an innocent person who is not a stockholder and who has relied on the effectiveness of the action.
Sec. 124. NRS 89.080 is hereby amended to read as follows:
89.080 1. If any officer, stockholder, director or employee of a corporation organized under this chapter who has been rendering professional service to the public becomes legally disqualified to render such professional services within this state, he shall sever within a reasonable period all [employment] professional service with and financial interest in [such] the corporation; but this chapter does not prevent a corporation formed under this chapter from entering into a contract with an employee which provides for severance pay or for compensation for past services upon termination of [employment,] professional service, whether by death or otherwise.
κ1995 Statutes of Nevada, Page 2120 (CHAPTER 586, SB 433)κ
or for compensation for past services upon termination of [employment,] professional service, whether by death or otherwise.
2. No person may be an officer or director of a corporation organized under this chapter other than a natural person who is [duly licensed or otherwise legally authorized] licensed to render the same specific professional services as those for which the corporation was incorporated.
3. Upon the death of [an employee] a stockholder of a corporation who has transferred his interest in the corporation to a revocable trust as permitted by NRS 89.070, the trustee of the revocable trust may continue to retain any interest so transferred, including corporate shares, for a reasonable period, but may not exercise any authority concerning the rendering of professional services and may not distribute the corporate interest to any person not licensed to render the services for which the corporation was incorporated.
4. A corporations failure to require compliance with the provisions of this section is a ground for the forfeiture of its charter.
Sec. 125. NRS 89.110 is hereby amended to read as follows:
89.110 No professional corporation may do any act which is prohibited to be done by [individual persons authorized] natural persons licensed to practice the profession which the professional corporation is organized to practice.
Sec. 126. NRS 89.230 is hereby amended to read as follows:
89.230 Members who organize a professional association [shall all be individuals duly licensed or otherwise legally authorized] must all be natural persons licensed to render the same specific professional services as those for which the professional association is organized. A professional association may render professional service only through its members and employees, all of whom [shall be duly authorized] must be licensed to render [such] the professional service.
Sec. 127. NRS 89.240 is hereby amended to read as follows:
89.240 1. If any member or employee of a professional association who has been rendering professional service to the public becomes legally disqualified to render [such] the professional service within this state, he shall sever within a reasonable period all [employment] professional service with and financial interest in [such] the association; but this chapter does not prevent a professional association from entering into a contract with a member or employee which provides for severance pay or for compensation for past services upon termination of [employment,] professional service, whether by death or otherwise. Upon the death of a member of the association who has transferred his interest in the association to a revocable trust as permitted by subsection 2, the trustee of the revocable trust may continue to retain any interest so transferred for a reasonable period, but may not exercise any authority concerning the rendering of professional services and may not distribute the interest in the association or its assets to any person not licensed [in the association or its assets to any person not licensed] to render the services for which the association was organized.
2. No membership interest in a professional association may be sold or transferred except to a natural person who is eligible to be a member of the association or to the personal representative or estate of a deceased or legally incompetent member, except as provided in this subsection. The personal representative of such a member may continue to own such interest for a reasonable period, but may not participate in any decisions concerning the rendering of professional service.
κ1995 Statutes of Nevada, Page 2121 (CHAPTER 586, SB 433)κ
representative of such a member may continue to own such interest for a reasonable period, but may not participate in any decisions concerning the rendering of professional service. A member may transfer his interest in the association or any other interest in the assets of the association to a revocable trust if he acts as trustee of the revocable trust and any person who acts as cotrustee and is not licensed to perform the services for which the association is organized does not participate in any decisions concerning the rendering of those professional services.
3. The articles of association may provide specifically for additional restrictions on the transfer of members interests and may provide for the redemption or purchase of such an interest by the association or its other members at prices and in a manner specifically set forth [.] in the articles.
Sec. 128. (Deleted by amendment.)
Sec. 129. NRS 89.270 is hereby amended to read as follows:
89.270 No professional association may do any act which is prohibited to be done by [individual persons authorized] natural persons licensed to practice the profession which the professional association is organized to practice.
Sec. 130. NRS 78.451, 78.452, 78.453, 78.454, 78.456, 78.457, 78.458, 78.459, 78.461, 78.462, 78.463, 78.464, 78.466, 78.471, 78.472, 78.473, 78.474, 78.476, 78.477, 78.478, 78.479, 78.481, 78.482, 78.483, 78.491, 78.492, 78.493, 78.494, 78.496, 78.497, 78.498, 78.499, 78.501, 78.502, 82.376, 82.381, 82.386, 82.391, 82.396, 82.401, 82.406, 82.411, 82.416, 82.421, 82.426, 82.431, 86.181, 86.501, 86.511 and 89.090 are hereby repealed.
Sec. 131. Sections 73, 75, 91, 92, 94, 95, 97, 101, 112, 114 and 119 of this act become effective at 12:01 a.m. on October 1, 1995.
________
κ1995 Statutes of Nevada, Page 2122κ
Senate Bill No. 458Committee on Commerce and Labor
CHAPTER 587
AN ACT relating to industrial insurance; limiting the liability of an insurer or third-party administrator who violates any provision concerning industrial insurance or occupational diseases; authorizing the manager to establish a plan for classifying certain employers separately to determine the premiums of those employers; creating boards for the administration of the subsequent injury funds of self-insured employers and associations of self-insured public and private employers; revising the provisions relating to the confidentiality of certain records and files of the division; authorizing the collection of a solvency surcharge from certain employers; repealing the responsibility of a real estate broker to pay premiums for industrial insurance for a broker-salesman and salesman who is associated with him; providing that payments in a lump sum on or after July 1, 1995, are governed by regulations adopted by the administrator and approved by the governor; revising the provisions relating to organizations for managed care; creating a legislative committee on workers compensation; providing penalties; and providing other matters properly relating thereto.
[Approved July 5, 1995]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 616 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 33, inclusive, of this act.
Secs. 2-4. (Deleted by amendment.)
Sec. 4.5. If responsibility for an undisputed claim for compensation by an injured employee is contested, the insurer to which the employee first submits the claim is responsible for providing the required compensation to the employee pending final resolution of the issue regarding which insurer is responsible for the claim. If the insurer that initially provides compensation to the injured employee is not held responsible for payment of the claim, the insurer that is held responsible shall reimburse that insurer within 30 days after final resolution of the issue of responsibility for payment of the claim.
Sec. 5. 1. No cause of action may be brought or maintained against an insurer or a third-party administrator who violates any provision of this chapter or chapter 617 of NRS.
2. The administrative fines provided for in NRS 616.294 and 616.647 are the exclusive remedies for any violation of this chapter or chapter 617 of NRS committed by an insurer or a third-party administrator.
Sec. 6. In addition to any other agreements authorized by the provisions of this chapter, the manager may contract with private persons for the provision of any services necessary or appropriate to carry out the functions and duties of the system. The contracts must be awarded pursuant to reasonable competitive bidding procedures as established by the manager.
Sec. 6.5. 1. Any employee:
(a) Who was injured by an accident arising out of and in the course of his employment before January 6, 1994, and whose claim is open; or
(b) Whose claim has been reopened pursuant to NRS 616.545,
shall participate in a plan for managed care established by the system in accordance with the regulations adopted for this purpose by the manager.
2. If the manager enters into a contract with an organization for managed care or renews such a contract on or after July 1, 1995, the contract must require the organization for managed care to provide, in accordance with standards established for this purpose by the manager, services to injured employees insured by the system who have not otherwise been required to participate in a plan for managed care.
κ1995 Statutes of Nevada, Page 2123 (CHAPTER 587, SB 458)κ
require the organization for managed care to provide, in accordance with standards established for this purpose by the manager, services to injured employees insured by the system who have not otherwise been required to participate in a plan for managed care. The contract may not require such an injured employee to change from his treating physician or chiropractor to another physician or chiropractor in order to receive compensation or benefits, unless his treating physician or chiropractor refuses to accept:
(a) If the physician or chiropractor is a member of one organization for managed care, the terms of that organizations plan for managed care.
(b) If the physician or chiropractor is a member of more than one such organization and one of those organizations has entered into a contract with the employers insurer, the terms of the employers organizations plan for managed care.
(c) If the physician or chiropractor is not a member of any organization for managed care or if the provisions of paragraph (b) do not apply, the terms adopted by the manager pursuant to this subsection.
3. If the treating physician or chiropractor of an injured employee refuses to comply with the required terms, as applicable pursuant to subsection 2, the injured employee shall select another physician or chiropractor who agrees to comply with the applicable terms.
4. The provisions of this section do not affect the amount of compensation and benefits to which such an injured employee is otherwise entitled.
Sec. 7. In addition to the authority given the manager to determine and fix premium rates of employers pursuant to NRS 616.380 and 616.395 to 616.405, inclusive, the manager may by regulation establish a plan for classifying employers insured by the system who, because of the risks inherent in the businesses in which the employers are engaged, are reasonably likely to incur a greater number of claims for compensation pursuant to this chapter or chapter 617 of NRS. Upon establishing such a plan, the manager may, with the approval of the commissioner, determine and fix the premium rates of those employers.
Sec. 8. 1. Except as otherwise provided in subsection 2, the records and files of the division concerning self-insured employers and associations of self-insured public or private employers are confidential and may be revealed in whole or in part only in the course of the administration of the provisions of this chapter relating to those employers or upon the lawful order of a court of competent jurisdiction.
2. The records and files specified in subsection 1 are not confidential in the following cases:
(a) Testimony by an officer or agent of the division and the production of records and files on behalf of the division in any action or proceeding conducted pursuant to the provisions of this chapter if that testimony or the records and files, or the facts shown thereby, are involved in the action or proceeding.
(b) Delivery to a self-insured employer or an association of self-insured public or private employers of a copy of any document filed by the employer with the division pursuant to the provisions of this chapter.
(c) Publication of statistics if classified so as to prevent:
(1) Identification of a particular employer or document; or
κ1995 Statutes of Nevada, Page 2124 (CHAPTER 587, SB 458)κ
(2) Disclosure of the financial or business condition of a particular employer or insurer.
(d) Disclosure in confidence, without further distribution or disclosure to any other person, to:
(1) The governor or his agent in the exercise of the governors general supervisory powers;
(2) Any person authorized to audit the accounts of the division in pursuance of an audit;
(3) The attorney general or other legal representative of the state in connection with an action or proceeding conducted pursuant to the provisions of this chapter;
(4) Any agency of this or any other state charged with the administration or enforcement of the laws relating to workers compensation or unemployment compensation; or
(5) Any federal, state or local law enforcement agency.
(e) Disclosure in confidence by a person who receives information pursuant to paragraph (d) to a person in furtherance of the administration or enforcement of the laws relating to workers compensation or unemployment compensation.
3. As used in this section:
(a) Division means the division of insurance of the department of business and industry.
(b) Records and files means:
(1) All credit reports, references, investigative records, financial information and data pertaining to the net worth of a self-insured employer or association of self-insured public or private employers; and
(2) All information and data required by the division to be furnished to it pursuant to this chapter or which may be otherwise obtained relative to the finances, earnings, revenue, trade secrets or the financial condition of any self-insured employer or association of self-insured public or private employers.
Secs. 9-14. (Deleted by amendment.)
Sec. 15. Each employee leasing company operating in this state shall maintain an office or similar site in this state for retaining, reviewing and auditing its payroll records and written agreements with client companies.
Sec. 16. (Deleted by amendment.)
Sec. 17. If a person operates an employee leasing company and a temporary employment service in this state, the person shall maintain separate payroll records for the company and the service. The records must be maintained in this state. A separate policy of workers compensation insurance must be maintained for the employee leasing company.
Secs. 18-22. (Deleted by amendment.)
Sec. 23. As used in NRS 616.4261, 616.427, 616.428, this section and sections 24 and 25 of this act, unless the context otherwise requires, board means the board for the administration of the subsequent injury fund for self-insured employers created pursuant to section 24 of this act.
Sec. 24. 1. There is hereby created the board for the administration of the subsequent injury fund for self-insured employers, consisting of five members who are self-insured employers.
κ1995 Statutes of Nevada, Page 2125 (CHAPTER 587, SB 458)κ
who are self-insured employers. The members must be appointed by the governor.
2. The members of the board shall elect a chairman and vice chairman from among the members appointed. After the initial election of a chairman and vice chairman, each of those officers shall hold office for a term of 2 years commencing on July 1 of each odd-numbered year. If a vacancy occurs in the chairmanship or vice chairmanship, the members of the board shall elect a replacement for the remainder of the unexpired term.
3. Vacancies on the board must be filled in the same manner as original appointments.
4. The members of the board serve without compensation.
5. A legal counsel that has been appointed by or has contracted with the division pursuant to NRS 232.660 shall serve as legal counsel of the board.
Sec. 25. 1. The members of the board may meet throughout each year at the times and places specified by a call of the chairman or a majority of the board. The board may prescribe rules and regulations for its own management and government. Three members of the board constitute a quorum, and a quorum may exercise all the power and authority conferred on the board. If a member of the board submits a claim against the subsequent injury fund for self-insured employers, that member shall not vote on or otherwise participate in the decision of the board concerning that claim.
2. The board shall administer the subsequent injury fund for self-insured employers in accordance with the provisions of NRS 616.4261, 616.427 and 616.428.
Sec. 26. As used in sections 26 to 31, inclusive, of this act, unless the context otherwise requires, board means the board for the administration of the subsequent injury fund for associations of self-insured public or private employers created pursuant to section 27 of this act.
Sec. 27. 1. There is hereby created the board for the administration of the subsequent injury fund for associations of self-insured public or private employers, consisting of five members who are members of an association of self-insured public or private employers. The members of the board must be appointed by the governor.
2. The members of the board shall elect a chairman and vice chairman from among the members appointed. After the initial election of a chairman and vice chairman, each of those officers shall hold office for a term of 2 years commencing on July 1 of each odd-numbered year. If a vacancy occurs in the chairmanship or vice chairmanship, the members of the board shall elect a replacement for the remainder of the unexpired term.
3. Vacancies on the board must be filled in the same manner as original appointments.
4. The members of the board serve without compensation.
5. A legal counsel that has been appointed by or has contracted with the division pursuant to NRS 232.660 shall serve as legal counsel of the board.
Sec. 28. 1. The members of the board may meet throughout each year at the times and places specified by a call of the chairman or a majority of the board. The board may prescribe rules and regulations for its own management and government. Three members of the board constitute a quorum, and a quorum may exercise all the power and authority conferred on the board. If a member of the board submits a claim against the subsequent injury fund, that member shall not vote on or otherwise participate in the decision of the board concerning that claim.
κ1995 Statutes of Nevada, Page 2126 (CHAPTER 587, SB 458)κ
a member of the board submits a claim against the subsequent injury fund, that member shall not vote on or otherwise participate in the decision of the board concerning that claim.
2. The board shall administer the subsequent injury fund in accordance with the provisions of sections 29, 30 and 31 of this act.
Sec. 29. 1. There is hereby established as a trust fund in the state treasury the subsequent injury fund for associations of self-insured public or private employers, which may be used only to make payments in accordance with the provisions of sections 30 and 31 of this act. The board shall administer the fund based upon recommendations made by the administrator pursuant to subsection 8.
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 in trust 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. 30. Except as otherwise provided in section 31 of this act:
1. If an employee of a member of an association of self-insured public or private employers has a permanent physical impairment from any cause or origin and incurs a subsequent disability by injury arising out of and in the course of his employment which entitles him to compensation for disability that is substantially greater by reason of the combined effects of the preexisting impairment and the subsequent injury than that which would have resulted from the subsequent injury alone, the compensation due must be charged to the subsequent injury fund for associations of self-insured public or private employers in accordance with regulations adopted by the board.
κ1995 Statutes of Nevada, Page 2127 (CHAPTER 587, SB 458)κ
course of his employment which entitles him to compensation for disability that is substantially greater by reason of the combined effects of the preexisting impairment and the subsequent injury than that which would have resulted from the subsequent injury alone, the compensation due must be charged to the subsequent injury fund for associations of self-insured public or private employers in accordance with regulations adopted by the board.
2. If the subsequent injury of such an employee results in his death and it is determined that the death would not have occurred except for the preexisting permanent physical impairment, the compensation due must be charged to the subsequent injury fund for associations of self-insured public or private employers in accordance with regulations adopted by the board.
3. As used in this section, permanent physical impairment means any permanent condition, whether congenital or caused by injury or disease, of such seriousness as to constitute a hindrance or obstacle to obtaining employment or to obtaining reemployment if the employee is unemployed. For the purposes of this section, a condition is not a permanent physical impairment unless it would support a rating of permanent impairment of 6 percent or more of the whole man if evaluated according to the American Medical Associations Guides to the Evaluation of Permanent Impairment as adopted and supplemented by the division pursuant to section 32 of this act.
4. To qualify under this section for reimbursement from the subsequent injury fund for associations of self-insured public or private employers, the association of self-insured public or private employers must establish by written records that the employer had knowledge of the permanent physical impairment at the time the employee was hired or that the employee was retained in employment after the employer acquired such knowledge.
5. An association of self-insured public or private employers shall notify the board of any possible claim against the subsequent injury fund for associations of self-insured public or private employers as soon as practicable, but not later than 100 weeks after the injury or death.
6. The board shall adopt regulations establishing procedures for submitting claims against the subsequent injury fund for associations of self-insured public or private employers. The board shall notify the association of self-insured public or private employers of its decision on such a claim within 90 days after the claim is received.
7. An appeal of any decision made concerning a claim against the subsequent injury fund for associations of self-insured public or private employers must be submitted directly to the district court.
Sec. 31. 1. An association of self-insured public or private employers that pays compensation due to an employee who has a permanent physical impairment from any cause or origin and incurs a subsequent disability by injury arising out of and in the course of his employment which entitles him to compensation for disability that is substantially greater by reason of the combined effects of the preexisting impairment and the subsequent injury than that which would have resulted from the subsequent injury alone is entitled to be reimbursed from the subsequent injury fund for associations of self-insured public or private employers if:
κ1995 Statutes of Nevada, Page 2128 (CHAPTER 587, SB 458)κ
(a) The employee knowingly made a false representation as to his physical condition at the time he was hired by the member of the association of self-insured public or private employers;
(b) The employer relied upon the false representation and this reliance formed a substantial basis of the employment; and
(c) A causal connection existed between the false representation and the subsequent disability.
If the subsequent injury of the employee results in his death and it is determined that the death would not have occurred except for the preexisting permanent physical impairment, any compensation paid is entitled to be reimbursed from the subsequent injury fund for associations of self-insured public or private employers.
2. An association of self-insured public or private employers shall notify the board of any possible claim against the subsequent injury fund for associations of self-insured public or private employers pursuant to this section no later than 60 days after the date of the subsequent injury or the date the employer learns of the employees false representation, whichever is later.
Sec. 32. 1. For the purposes of NRS 616.4255, 616.427, 616.605 and 617.459, the division shall adopt regulations incorporating the American Medical Associations Guides to the Evaluation of Permanent Impairment by reference and may amend those regulations from time to time as it deems necessary. In adopting the Guides to the Evaluation of Permanent Impairment, the division shall consider the edition most recently published by the American Medical Association.
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 616.605.
Sec. 33. 1. If, after conducting an examination of the affairs, transactions, accounts, funds, records and assets of the system, the commissioner determines that the system is insolvent, he shall give written notice of his determination to the manager and administrator.
2. Except as otherwise provided in this subsection, upon receipt of such a notice, the administrator shall impose and collect a solvency surcharge from:
(a) Each employer who was insured by the Nevada industrial commission or the system at any time during the period beginning on July 1, 1979, and ending on July 1, 1995;
(b) Each employer who is insured by the system at any time after July 1, 1995;
(c) Each self-insured employer; and
(d) Each association of self-insured public or private employers,
in an amount calculated to produce the revenue that is required to pay the outstanding obligations of the system as they become due. The formula used by the administrator to calculate the surcharge must be approved by the legislative committee on workers compensation created pursuant to section 120 of this act. The surcharge must be paid in the manner prescribed by the administrator. The manager shall collect the surcharge imposed against those employers who are insured by the system at any time after July 1, 1995.
κ1995 Statutes of Nevada, Page 2129 (CHAPTER 587, SB 458)κ
3. All money received by the administrator and manager from any surcharge imposed pursuant to this section must be credited on the records of the system to the account for solvency surcharges, which is hereby created in the state insurance fund. The money in the account:
(a) Constitutes a part of the assets of the state insurance fund.
(b) Must be used solely to pay the operating expenses of the system and any obligations of the system as they become due. The money in the account may not be used by the system to incur any additional obligations.
4. If, at any time after the imposition of a surcharge pursuant to this section, the manager determines that the system is no longer insolvent, he shall file a request with the commissioner to cease the collection of any surcharge imposed pursuant to this section. Upon the receipt of the request, the commissioner shall, for the purpose of determining the financial condition of the system, conduct an examination of the affairs, transactions, accounts, funds, records and assets of the system. If, after conducting the examination, the commissioner determines that the system is no longer insolvent, the commissioner shall approve the request.
5. Any employer, self-insured employer or association of self-insured public or private employers that fails to pay any surcharge imposed pursuant to this section is liable in a civil action commenced by the administrator for:
(a) The amount owed pursuant to this section;
(b) The reasonable expenses incurred by the administrator in enforcing this section; and
(c) Payment of interest on the amount due at the rate fixed pursuant to NRS 99.040 for the period from the date upon which the surcharge was due to the date upon which the surcharge is paid.
Any money collected by the administrator pursuant to this subsection must be deposited into the account for solvency surcharges.
6. For the purposes of this section, the system is insolvent if the system is required to sell or otherwise liquidate any of the invested assets or real property of the system for the purpose of paying its outstanding obligations as they mature in the regular course of business.
Secs. 34-37. (Deleted by amendment.)
Sec. 38. NRS 616.060 is hereby amended to read as follows:
616.060 Employee excludes:
1. Any person whose employment is both casual and not in the course of the trade, business, profession or occupation of his employer.
2. Any person engaged as a theatrical or stage performer or in an exhibition.
3. Musicians when their services are merely casual in nature and not lasting more than 2 consecutive days, and not recurring for the same employer, as in wedding receptions, private parties and similar miscellaneous engagements.
4. Any person engaged in household domestic service, farm, daily, agricultural or horticultural labor, or in stock or poultry raising, except as otherwise provided in this chapter.
5. Any person performing services as a voluntary ski patrolman who receives no compensation for his services other than meals, lodging, or use of the ski tow or lift facilities.
κ1995 Statutes of Nevada, Page 2130 (CHAPTER 587, SB 458)κ
6. Any clergyman, rabbi or lay reader in the service of a church, or any person occupying a similar position with respect to any other religion.
7. Any real estate broker, broker-salesman or salesman licensed pursuant to chapter 645 of NRS.
Sec. 39. NRS 616.087 is hereby amended to read as follows:
616.087 1. Each person licensed pursuant to chapter 645 of NRS as a real estate broker, broker-salesman or salesman who does business in this state and receives wages, commissions or other compensation based upon activities for which the license is required may elect coverage pursuant to this chapter. If coverage is so elected, the real estate broker, broker-salesman or salesman shall be deemed for the purpose of this chapter to earn wages of $1,500 per month. Except as otherwise provided in subsection 2, not more than one premium may be collected from such a licensee for the wages, commission or other compensation he receives from any activity for which such a license is required.
2. Except as otherwise provided in this subsection, if a licensee holds both an individual broker license and a corporate broker license, the licensee shall pay the premium for coverage under the corporate broker license only and limited to recovery of benefits in accordance with the deemed compensation attributed to that license only. If a licensee holds both an individual broker license and a corporate broker license and elects to pay premiums for coverage under the individual broker license also, he may recover benefits in accordance with the deemed compensation attributed to both licenses.
Secs. 40-43. (Deleted by amendment.)
Sec. 44. NRS 616.180 is hereby amended to read as follows:
616.180 1. The system may, pursuant to the approval of the governor, invest not to exceed 10 percent of the total assets of the state insurance fund in rehabilitation buildings and facilities and facilities and office buildings in this state. The system shall cooperate with the state public works board in all planning and construction undertaken by the system pursuant to this section. The system may occupy whatever room or rooms are necessary for the performance of its duties, and any such buildings or portions thereof not occupied by the system may be rented only to other state agencies, departments, commissions, bureaus and officers.
2. The title of any real property purchased under the authority granted by subsection 1 must be examined and approved by the attorney general.
3. Any income derived from rentals must be [deposited as provided in NRS 616.450.] accounted for separately and deposited in the appropriate account of the system.
4. The system may, pursuant to the approval of the governor, sell any real property acquired by it pursuant to the provisions of subsection 1. All money received by the system for the sale of such real property must be deposited in the state insurance fund.
Sec. 45. NRS 616.182 is hereby amended to read as follows:
616.182 1. Except as otherwise provided in this section, the division shall regulate insurers under this chapter and chapter 617 of NRS and investigate insurers regarding compliance with statutes and the divisions regulations.
κ1995 Statutes of Nevada, Page 2131 (CHAPTER 587, SB 458)κ
2. The commissioner is responsible for reviewing rates, investigating the solvency of insurers and certifying self-insured employers, associations of self-insured public or private employers and third-party administrators pursuant to NRS 616.291 to 616.298, inclusive, 616.338, 616.3791 to 616.37997, inclusive, and chapter 683A of NRS.
3. The department of administration is responsible for contested claims relating to workers compensation pursuant to NRS [616.5395] 616.541 to 616.544, inclusive. The system is responsible for administrative appeals pursuant to NRS 616.392.
4. The Nevada attorney for injured workers is responsible for legal representation of claimants pursuant to NRS 616.253 to 616.2539, inclusive.
5. The division is responsible for the investigation of complaints. If a complaint is filed with the division by an employee of a self-insured employer or of an employer who is a member of an association of self-insured public or private employers, or by a third-party administrator or provider of medical care regarding compliance with statutes or the divisions regulations, the administrator shall cause to be conducted an investigation which includes a review of relevant records and interviews of affected persons.
6. If an investigation conducted pursuant to section 5 indicates that a self-insured employer or an association of self-insured public or private employers has failed to comply with a statute or regulation, the administrator may order that an evidentiary hearing take place. Upon a finding that intentional or repeated noncompliance has occurred, the administrator shall impose an administrative fine of not more than $250 for each initial noncompliance which was not intentional, or a fine of not more than $1,000 for each intentional or repeated noncompliance. Two or more findings of material noncompliance within a 12-month period constitute grounds for the suspension of the self-insured employers or associations certification by the commissioner.
Sec. 46. (Deleted by amendment.)
Sec. 47. NRS 616.192 is hereby amended to read as follows:
616.192 1. Except as otherwise provided in this section , [and in] NRS 616.193 and 616.550, and section 8 of this act, 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 persons 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 this chapter.
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 manager may, by regulation, prescribe the manner in which otherwise confidential information may be made available to:
(a) Any agency of this or any other state charged with the administration or enforcement of workers compensation law, unemployment compensation law, public assistance law or labor law;
(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
κ1995 Statutes of Nevada, Page 2132 (CHAPTER 587, SB 458)κ
(e) The state contractors board in the performance of its duties to enforce the provisions of chapter 624 of NRS.
Information obtained in connection with the administration of a workers compensation program may be made available to persons or agencies for purposes appropriate to the operation of a workers compensation program.
4. To further a current criminal investigation, the chief executive officer of any law enforcement agency of this state may submit a written request to the manager that he furnish from the records of the insurer, the name, address and place of employment of any person listed in the records of the insurer. The request must set forth the social security number of the person about whom the request is made and contain a statement signed by the chief executive officer certifying that the request is made to further a criminal investigation currently being conducted by the agency. Upon receipt of a request, the manager shall furnish the information requested. He may charge a reasonable fee to cover any related administrative expenses.
5. The manager shall provide lists containing the names and addresses of employers, the number of employees employed by each employer and the total wages paid by each employer to the department of taxation, upon request, for its use in verifying returns for the business tax. The manager may charge a reasonable fee to cover any related administrative expenses.
6. If the manager or any employee of the manager, in violation of this section, discloses information obtained from files of claimants or policyholders, or if any person who has obtained a list of claimants or policyholders under this chapter uses or permits the use of the list for any political purposes, he is guilty of a gross misdemeanor.
7. 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 this chapter.
Sec. 48. NRS 616.193 is hereby amended to read as follows:
616.193 1. The insurer must provide access to the files of claims in its offices.
2. A file is available for inspection during regular business hours by the employee or his designated agent, the employer or his designated agent and the administrator or his designated agent.
3. Upon request, the insurer must make copies of anything in the file and may charge a reasonable fee for this service. Copies of materials in the file which are requested by the administrator or his designated agent, or the Nevada attorney for injured workers or his designated agent must be provided free of charge.
4. [Until a claim is closed the file must be kept in the office nearest to the place where the injury occurred.
5.] If a claim has been closed for at least 1 year, the insurer may microphotograph or film any of its records relating to that claim. The microphotographs or films must be placed in convenient and accessible files, and provision must be made for preserving, examining and using the records.
κ1995 Statutes of Nevada, Page 2133 (CHAPTER 587, SB 458)κ
[6.] 5. Nothing in this section requires the insurer to allow inspection or reproduction of material regarding which a legal privilege against disclosure has been conferred.
Sec. 49. NRS 616.2211 is hereby amended to read as follows:
616.2211 1. Except as otherwise provided in NRS 616.2212 , [to 616.2215, inclusive,] the manager may enter into a contract or contracts with one or more organizations for managed care , including health maintenance organizations, to provide comprehensive medical and health care services to injured employees whose employers are insured by the system for injuries and diseases that are compensable under this chapter and chapter 617 of NRS. The contract or contracts must be awarded pursuant to reasonable competitive bidding procedures and established by the manager.
2. [The selection of such an organization must be made from bids received in accordance with the provisions of NRS 333.300 to 333.335, inclusive, 333.350 and 333.370.
3. The manager shall establish the criteria for the selection of an organization for managed care. The criteria established by the manager must not prohibit any organization for managed care from submitting a bid.
4. A bid must be submitted to the manager in such form and manner as the manager may prescribe and must contain the following information, without limitation:
(a) A copy of the basic organizational document, if any, of the bidder, and all amendments thereto.
(b) A list of the names, addresses, and official positions of the persons who are to be responsible for the conduct of the affairs of the bidder, including all members of the board of directors, board of trustees, executive committee, or other governing board or committee, the officers if the bidder is a corporation, and the partners or members if the bidder is a partnership or association.
(c) A copy of any contract made or to be made between any providers of health care and the bidder.
(d) Certified financial statements showing the bidders assets, liabilities and sources of financial support.
(e) A list of the names of all persons who will provide medical and health care services under the proposed plan and evidence of compliance with any licensing or certification requirements for those persons to practice in this state.
(f) A description of the times, places and manner of providing medical and health care services under the proposed plan.
(g) Evidence of an ability to comply with any financial requirements to ensure delivery of medical and health care services in accordance with the proposed plan.
(h) Any additional information regarding the proposed plan that the manager requires.
5.] After the selection of an organization for managed care, the bids received by the manager and the records related to the bidding are subject to review by any member of the public upon request.
3. An organization for managed care or a health maintenance organization shall not discriminate against or exclude a provider of health care from participation in the organizations proposed plan for providing medical and health care services because of race, creed, sex, national origin, age or disability.
κ1995 Statutes of Nevada, Page 2134 (CHAPTER 587, SB 458)κ
health care services because of race, creed, sex, national origin, age or disability.
Sec. 49.5. NRS 616.2212 is hereby amended to read as follows:
616.2212 The manager shall not enter into a contract with an organization for managed care unless [:
1. The provisions of the contract are approved by the commissioner;
2. The contract contains a provision authorizing the manager to cancel the contract, by written notice, if the manager determines that:
(a) The organizations plan for providing medical and health care services does not comply with the requirements of this section; or
(b) Services under the organizations plan are not being provided in accordance with the terms of the contract;
3. The] the organizations proposed plan for providing medical and health care services [:
(a) Will provide all medical and health care services that may be required for industrial injuries and occupational diseases that are compensable under this chapter and chapter 617 of NRS, in a manner that assures the availability and accessibility of adequate treatment to injured employees;
(b) Does not exclude from participation in the proposed plan any category of providers of health care who are required to be licensed or certified to practice in this state and willing to comply with the terms and conditions required by the organization to participate in the proposed plan;
(c) Gives injured employees an adequate choice of providers of health care who have contracted with the organization to participate in the proposed plan;
(d) Provides appropriate financial incentives to reduce costs of medical and health care services without affecting the quality of care provided;
(e) Includes procedures for auditing bills submitted by providers of health care;
(f) Includes procedures for obtaining approval for all major medical procedures before they are performed;
(g) Provides adequate procedures for assuring the quality of care provided, including peer review, utilization review and the resolution of disputes that:
(1) Prevent inappropriate or excessive treatment;
(2) Exclude providers of health care who do not comply with the standards of treatment adopted by the organization; and
(3) Provide for the resolution of complaints submitted to the organization pursuant to NRS 616.5395;
(h) Provides a program for returning injured workers to work as soon as possible; and
(i) Ensures] ensures that, if medical and health care services are to be provided by the organization , [:
(1) In a county whose population is 100,000 or more,] an injured employee residing or employed in [that] a county may choose the services of any provider of health care located in that county or an adjacent county if the employees residence is not within a 20-mile radius of a provider of health care who has contracted with the organization to participate in the plan and provide the services required by the employee.
[(2) In a county whose population is less than 100,000, an injured employee residing or employed in that county may choose the services of any provider of health care located in that county or an adjacent county if such services are available.]
κ1995 Statutes of Nevada, Page 2135 (CHAPTER 587, SB 458)κ
provider of health care located in that county or an adjacent county if such services are available.] If such services are not available, the injured employee may choose the services of any provider of health care located in the state. The fees charged by a provider of health care chosen by an injured employee pursuant to this [paragraph] section may not exceed the fees established in accordance with NRS 616.412 or the usual fee charged by that provider, whichever is less.
Sec. 50. NRS 616.2218 is hereby amended to read as follows:
616.2218 If the manager enters into a contract with one or more organizations for managed care to provide comprehensive medical and health care services to injured employees whose employers are insured by the system, an employer insured by the system may select the organization for managed care in whose plan he wishes to participate if the selection is made in a manner prescribed by the manager . [that ensures compliance with the statutory limitations set forth in this chapter.] If the employer fails to make the selection, the manager may make the selection on behalf of the employer.
Sec. 51. NRS 616.2219 is hereby amended to read as follows:
616.2219 As used in NRS 616.2221 and 616.2222, unless the context otherwise requires:
1. Common agreement means a contract between two or more providers of health care to form an organization for managed care to provide comprehensive medical and health care services pursuant to a contract entered into with the manager in accordance with NRS 616.2211 and 616.2212.
2. Provider of health care means a:
(a) Health facility, as defined in NRS 439A.015; or
(b) A practitioner, as defined in NRS 439A.0195.
Sec. 51.5. (Deleted by amendment.)
Sec. 52. NRS 616.254 is hereby amended to read as follows:
616.254 As used in NRS 616.254 to 616.2547, inclusive, and sections 15 and 17 of this act, unless the context otherwise requires:
1. Applicant means a person seeking a certificate of insurance pursuant to NRS 616.254 to 616.2547, 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 [, places all or substantially all] :
(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.
Sec. 53. NRS 616.2545 is hereby amended to read as follows:
616.2545 1. For the purposes of this chapter and chapters 364A, 612 and 617 of NRS, an employee leasing company which complies with the provisions of NRS 616.254 to 616.2547, inclusive, shall be deemed to be the employer of the employees it leases to a client company.
κ1995 Statutes of Nevada, Page 2136 (CHAPTER 587, SB 458)κ
provisions of NRS 616.254 to 616.2547, inclusive, shall be deemed to be the employer of the employees it leases to a client company.
2. An employee leasing company shall be deemed to be the employer of its leased employees for the purposes of sponsoring and maintaining any benefit plans.
3. An employee leasing company [may] shall not offer its employees any self-funded insurance program. An employee leasing company [may] shall not act as a self-insured employer pursuant to this chapter or chapter 617 of NRS or pursuant to Title 57 of NRS.
4. If an employee leasing company fails to:
(a) Pay any contributions, premiums, forfeits or interest due; or
(b) Submit any reports or other information required,
pursuant to this chapter or chapter 612 or 617 of NRS, the client company is jointly and severally liable for the contributions, premiums, forfeits or interest attributable to the wages of the employees leased to it by the employee leasing company.
Sec. 54. NRS 616.262 is hereby amended to read as follows:
616.262 1. A person is not an employer for the purposes of this chapter if:
(a) He enters into a contract with another person or business which is an independent enterprise; and
(b) He is not in the same trade, business, profession or occupation as the independent enterprise.
2. As used in this section, independent enterprise means a person who holds himself out as being engaged in a separate business and:
(a) Holds a business or occupational license in his own name; or
(b) Owns, rents or leases property used in furtherance of his business.
3. The provisions of this section do not apply to [a] :
(a) A principal contractor who is licensed pursuant to chapter 624 of NRS.
(b) A real estate broker who has a broker-salesman or salesman associated with him pursuant to NRS 645.520.
4. The administrator may adopt such regulations as are necessary to carry out the provisions of this section.
Secs. 55 and 56. (Deleted by amendment.)
Sec. 57. NRS 616.279 is hereby amended to read as follows:
616.279 1. If a quasi-public or private corporation is required to be insured under this chapter, an officer of the corporation who:
(a) Receives pay for [service] services performed as an officer or employee of the corporation shall be deemed for the purposes of this chapter to receive a minimum pay of $6,000 per calendar year and:
(1) For the period beginning July 1, 1993, and ending December 31, 1993, a maximum pay of $27,000 per calendar year.
(2) For the period beginning January 1, 1994, and ending December 31, 1994, a maximum pay of $30,000.
(3) For the period beginning January 1, 1995, and ending December 31, 1995, a maximum pay of $33,000.
(b) Does not receive pay for services performed as an officer or employee of the corporation shall be deemed for the purposes of this chapter to receive a minimum pay of $500 per month or $6,000 per calendar year.
κ1995 Statutes of Nevada, Page 2137 (CHAPTER 587, SB 458)κ
2. An officer who does not receive pay for services performed as an officer or employee of the corporation may elect to reject coverage by filing written notice thereof with the corporation and the system. The rejection is effective upon receipt of the notice by the system.
3. An officer who has rejected coverage may rescind that rejection by filing written notice thereof with the corporation and the system. The rescission is effective upon receipt of the notice by the system. If an officer who has rejected coverage receives pay for services performed as an officer or employee of the corporation, the officer shall be deemed to have rescinded that rejection.
4. A nonprofit corporation whose officers do not receive pay for services performed as officers or employees of the corporation may elect to reject coverage for their current officers and all future officers who do not receive such pay by filing written notice thereof with the corporation and the system. The rejection is effective upon receipt of the notice by the system.
5. A nonprofit corporation which has rejected coverage for its officers who do not receive pay for services performed as officers or employees of the corporation may rescind that rejection by filing written notice thereof with the corporation and the system. The rescission is effective upon receipt of the notice by the system. If an officer of a nonprofit corporation which has rejected coverage receives pay for services performed as an officer or employee of the corporation, the corporation shall be deemed to have rescinded that rejection.
Secs. 58-60. (Deleted by amendment.)
Sec. 61. NRS 616.2935 is hereby amended to read as follows:
616.2935 A self-insured employer shall notify the commissioner not less than 60 days before any change in ownership or control of the employer. The certification of the self-insured employer terminates automatically on the date of the change unless the commissioner extends the certification. [The] Except as otherwise provided in section 8 of the act, the commissioner, upon request, may declare as confidential any documents which are submitted in support of a request for such an extension.
Secs. 62-67. (Deleted by amendment.)
Sec. 68. NRS 616.342 is hereby amended to read as follows:
616.342 1. The administrator shall establish a panel of physicians and chiropractors who have demonstrated special competence and interest in industrial health to treat injured employees under this chapter. Every employer whose insurer has not entered into a contract with an organization for managed care pursuant to NRS 616.2211 shall maintain a list of those physicians and chiropractors on the panel who are reasonably accessible to his employees.
2. An injured employee whose insurer has not entered into a contract with an organization for managed care 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.
κ1995 Statutes of Nevada, Page 2138 (CHAPTER 587, SB 458)κ
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 insurer has entered into a contract with an organization for managed care 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 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 616.502, 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 employees 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 and 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.
Secs. 69-72. (Deleted by amendment.)
Sec. 73. NRS 616.380 is hereby amended to read as follows:
616.380 1. In addition to the authority given the manager to determine and fix premium rates of employers as provided in NRS 616.395 to 616.405, inclusive, the manager:
(a) Shall apply that form of rating system which, in his judgment, is best calculated to rate each individual risk more equitably, predicated upon the basis of the employers individual experience;
(b) Shall adopt equitable regulations controlling the rate of each risk, which must conserve to each risk the basic principles of industrial insurance; and
(c) May subscribe to a rating service of any rating organization for casualty, fidelity and surety insurance rating.
2. The rating system or any rating by a rating organization pursuant to this section is subject to the limitation that the amount of any increase or reduction of premium rate, additional charge of premiums or payment of dividends must be in the discretion of the manager.
κ1995 Statutes of Nevada, Page 2139 (CHAPTER 587, SB 458)κ
3. The rating system provided by this section is subject to the following further limitations:
(a) All studies conducted by the manager to determine the adequacy of rate levels and the equity of rates among classifications must be conducted in the presence of an actuary designated by the commissioner.
(b) The manager shall file revised premium rates, revised classifications of employment and changes of the multiplier applied generally to classes or risk with the commissioner and give written public notice to the employers affected by the changes at least:
(1) Sixty days before the effective date of a projected change in premiums or projected change of multiplier; and
(2) Thirty days before the effective date of a change decided upon.
The commissioner shall review the revised rates and classifications and advise the manager of the changes which are not consistent with NRS 686B.050 and 686B.060.
(c) An employer affected by a change in a revised premium rate or a revised classification of employment may request the commissioner to hold a hearing before the effective date of the change. At the hearing, the commissioner shall consider the objections raised by any party appearing at the hearing. An employer may not appeal a decision of the commissioner concerning a revised premium rate or a revised classification of employment to the manager.
(d) Premium rates must not be fixed at a level higher than that required to:
(1) Pay the obligations created by this chapter and associated administrative expenses.
(2) Provide for a reasonable reserve for claims.
(3) Provide for contingencies such as a catastrophe, economic change, change in judicial interpretations of the law, legislative amendments of the law, deficiencies in the reserve and other events which cannot be predicted accurately and could endanger the solvency of the fund.
The commissioner may order the manager to make any adjustments necessary to meet the requirements of this paragraph.
4. In determining and fixing premium rates, the manager may establish a varying schedule of rates for workers who are in the classification of employment designated as construction which reflects the varying hourly rates of wages paid to such workers.
5. [In] Except as otherwise provided in this subsection, in determining and fixing the premium rates applicable to an employer who begins business in this state but has conducted business in another state for 3 years or longer, the manager shall take into account the employers experience in the other state in the same manner as the manager takes into account an employers experience in this state. The manager may adopt regulations to specify the manner in which the employers experience may be applied in this state. The provisions of this subsection do not apply to a principal contractor, independent contractor or subcontractor who begins business in this state only to bid on projects of limited duration or otherwise does not manifest an intent to conduct business permanently in this state.
6. Subsections 2 and 3 do not apply to a rating plan made by voluntary agreement between the manager and an employer which increases or reduces premiums for the employer.
κ1995 Statutes of Nevada, Page 2140 (CHAPTER 587, SB 458)κ
premiums for the employer. The voluntary rating plan may be retrospective in nature. A voluntary rating plan must be in writing and signed by the manager and the employer.
7. The manager shall adopt by regulation a plan for reviewing employers insured by the system who have excessive losses, as defined by the plan, in order to encourage those employers to pay for their losses and correct their loss experience. The plan:
(a) Must identify an employer with excessive losses as an employer:
(1) Whose incurred losses exceeded his manual premium in:
(I) The two most recent fiscal years of his period of experience; or
(II) The most recent fiscal year of his period of experience and in 2 of the 3 fiscal years preceding that fiscal year; and
(2) Who paid a premium in a minimum amount to be established by the manager in each of the fiscal years in which his losses exceeded his manual premium pursuant to subparagraph (1).
(b) May include requirements for:
(1) The payment of surcharges by such an employer;
(2) Mandatory retrospective rating plans;
(3) An increase in the amount of the deductible required to be paid by such an employer pursuant to subsection 1 of NRS 616.397;
(4) Changes in the limitations placed on the experience modification plan for such an employer; or
(5) Any combination of subparagraphs (1), (2), (3) and (4).
(c) Must exempt an employer from the provisions of the plan if the employer:
(1) Has not, for the most recent fiscal year of his period of experience, incurred any claims resulting in a temporary total disability;
(2) Has established and carried out a written safety program pursuant to NRS 618.383 and the regulations adopted pursuant thereto; and
(3) Has not been previously identified as an employer with excessive losses.
The plan must include procedures for the termination of an employers participation in the plan when the employer has corrected his excessive loss experience. The commissioner shall review the plan adopted pursuant to this subsection.
Secs. 74 and 75. (Deleted by amendment.)
Sec. 76. NRS 616.397 is hereby amended to read as follows:
616.397 1. Except as otherwise provided in this section and NRS 616.380, each employer insured by the system shall pay a deductible toward the total amount of accident benefits required to be paid for each claim filed by an employee pursuant to this chapter or chapter 617 of NRS. The amount of the employers premium must not be adjusted based on the deductible required to be paid pursuant to this subsection. The amount of the required deductible:
(a) For an employer not described in paragraph (b), is an amount equal to the amount of those accident benefits or $100, whichever is less.
(b) For an employer who has been identified pursuant to NRS 616.380 as having excessive losses, is an amount equal to the amount of those accident benefits or $1,000, whichever is less.
κ1995 Statutes of Nevada, Page 2141 (CHAPTER 587, SB 458)κ
2. In addition to paying the deductible required by subsection 1, the manager may offer an employer insured by the system the option of selecting coverage that requires the employer to pay an additional deductible, in an amount agreed to by the manager and the employer. If an employer chooses such coverage:
(a) The premium he is required to pay must be reduced by the manager based on the amount of the additional deductible paid by the employer. The amount of the reduction must be determined by the manager after giving consideration to the solvency of the employer and his ability to pay the additional deductible.
(b) The manager may require the employer to execute and deliver to the system a performance bond in an amount determined by the manager and conditioned upon the ability of the employer to pay the additional deductible. The manager may not require an employer to pay an additional deductible pursuant to this subsection.
3. Except as otherwise provided in subsection 4, at the end of each billing period, but not less than quarterly, the manager shall bill each employer for the amount he owes pursuant to subsection 1 or 2 for the preceding billing period. If an employer fails to pay this amount to the system on or before the date on which his next payment for premium is due:
(a) The system shall not continue to insure the employer; and
(b) The system may use any security on deposit pursuant to NRS 616.395 to recover the amount owed to the system in accordance with this section.
4. If the manager contracts with one or more organizations for managed care pursuant to NRS 616.2211 [, 616.2212 and 616.2216,] and 616.2212, the system shall bill the employer for the amount owed pursuant to subsection 1 or 2 for each claim. If the employer fails to reimburse the system [within 60 days, the system:
(a) Shall pay the amount owed to the organization for managed care;
(b) Shall provide written notification to the employer that it has paid the organization for managed care on its behalf; and
(c) Shall not continue to insure the employer if the employer fails to reimburse the system within 10 days after receipt of the notification.
The] , the system may use any security on deposit pursuant to NRS 616.395 to recover the amount owed to the system in accordance with this section.
5. The administrator shall impose an administrative fine of not more than $1,000 against any employer who fails to comply with any of the provisions of this section.
Sec. 77. NRS 616.400 is hereby amended to read as follows:
616.400 1. [Except for a self-insured employer or an employer who is a member of an association of self-insured public or private employers, every employer within, and those electing to be governed by, the provisions of this chapter, shall, on or before the 25th day of the month immediately after the end of the assigned reporting period] Every employer insured by the system shall, at intervals established by the manager, furnish the system with a true and accurate payroll [for that period] showing:
(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
κ1995 Statutes of Nevada, Page 2142 (CHAPTER 587, SB 458)κ
(c) A segregation of employment in accordance with the requirements of the system,
together with the premium due thereon. The payroll and premium must be furnished to the system on or before the date established by the manager for the receipt of the payroll and premium.
2. In determining the total amount paid to employees by each employer for services performed during a calendar year, the maximum amount paid by each employer to any one employee during the calendar year shall be deemed to be:
(a) For the period beginning October 1, 1992, and ending December 31, 1992, the first $27,000 paid to the employee during the calendar year of 1992.
(b) For the period beginning January 1, 1993, and ending December 31, 1993, the first $27,000 paid to the employee.
(c) For the period beginning January 1, 1994, and ending December 31, 1994, the first $30,000 paid to the employee.
(d) For the period beginning January 1, 1995, and ending December 31, 1995, the first $33,000 paid to the employee.
3. [Any] Except as otherwise provided in this subsection, any employer by agreement in writing with the manager may arrange for the payment of premiums in advance for a period of more than 60 days. If an employers premiums are less than $300 in a given year, the premiums must be paid at intervals established by the manager.
4. Failure of any employer to comply with the provisions of this section and NRS 616.395 operates as a rejection of this chapter, effective at the expiration of the period covered by his estimate. The manager shall notify the administrator of each such rejection.
5. 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 manager may require the payment of money sufficient to cover the deficit, together with such amount as in his judgment constitutes an adequate advance premium for the period covered by the estimate.
6. The manager 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 this chapter as otherwise provided in this chapter.
7. The system may impose a penalty not to exceed 4 percent of the premiums which are due [or $15, whichever is greater,] for the failure of an employer 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.
8. To the extent permitted by federal law, the system shall vigorously pursue the collection of premiums that are due under the provisions of this chapter even if an employers debts have been discharged in a bankruptcy proceeding.
Secs. 78-80. (Deleted by amendment.)
Sec. 81. NRS 616.4255 is hereby amended to read as follows:
616.4255 1. If an employee of an employer who is insured by the system has a permanent physical impairment from any cause or origin and incurs a subsequent disability by injury arising out of and in the course of his employment which entitles him to compensation for a disability that is substantially greater by reason of the combined effects of the preexisting impairment and the subsequent injury than that which would have resulted from the subsequent injury alone, the compensation due must not be charged to the employers account [.]
κ1995 Statutes of Nevada, Page 2143 (CHAPTER 587, SB 458)κ
subsequent disability by injury arising out of and in the course of his employment which entitles him to compensation for a disability that is substantially greater by reason of the combined effects of the preexisting impairment and the subsequent injury than that which would have resulted from the subsequent injury alone, the compensation due must not be charged to the employers account [.] if:
(a) The employee knowingly made a false representation as to his physical condition at the time he was hired by the employer;
(b) The employer relied upon the false representation and this reliance formed a substantial basis of the employment; and
(c) A causal connection existed between the false representation and the subsequent disability.
2. If the subsequent injury of [such an] the employee results in his death and it is determined that the death would not have occurred except for the preexisting permanent physical impairment, the compensation due must not be charged to the employers account.
3. To qualify for the removal of a charge from his account pursuant to this section, the employer must establish by written records that he had knowledge of the permanent physical impairment at the time the employee was hired or that the employee was retained in employment after the employer acquired that knowledge.
4. The employer shall notify the manager of any possible claim pursuant to this section as soon as practicable, but not later than 100 weeks after the subsequent injury or death.
5. The manager [may] shall adopt regulations which are necessary to carry out the requirements of this section.
[4.] 6. An appeal of any decision made concerning a charge or removal of a charge pursuant to this section must be submitted directly to an appeals officer. The appeals officer shall hear the appeal within 45 days after the appeal is submitted to him.
7. As used in this section, permanent physical impairment means any permanent condition, whether congenital or caused by injury or disease, of such seriousness as to constitute a hindrance or obstacle to obtaining employment or to obtaining reemployment if the employee is unemployed. For the purposes of this section, a condition is not a permanent physical impairment unless it would support a rating of permanent impairment of 6 percent or more of the whole man if evaluated according to the American Medical Associations Guides to the Evaluation of Permanent Impairment as adopted and supplemented pursuant to [NRS 616.427.] section 32 of this act.
Sec. 82. NRS 616.4261 is hereby amended to read as follows:
616.4261 1. There is hereby established as a trust fund in the state treasury the subsequent injury fund [,] for self-insured employers, which may be used only to make payments in accordance with the provisions of NRS 616.427 and 616.428. The [administrator] board shall administer the fund [.] based upon recommendations made by the administrator pursuant to subsection 8.
κ1995 Statutes of Nevada, Page 2144 (CHAPTER 587, SB 458)κ
2. All assessments, penalties, bonds, securities and all other properties received, collected or acquired by the [administrator] 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 in trust 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 [state controller.] 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 [administrator must] 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. 83. NRS 616.427 is hereby amended to read as follows:
616.427 Except as otherwise provided in NRS 616.428:
1. If an employee of a self-insured employer has a permanent physical impairment from any cause or origin and incurs a subsequent disability by injury arising out of and in the course of his employment which entitles him to compensation for disability that is substantially greater by reason of the combined effects of the preexisting impairment and the subsequent injury than that which would have resulted from the subsequent injury alone, the compensation due must be charged to the subsequent injury fund for self-insured employers in accordance with regulations adopted by the [administrator.] board.
2. If the subsequent injury of such an employee results in his death and it is determined that the death would not have occurred except for the preexisting permanent physical impairment, the compensation due must be charged to the subsequent injury fund for self-insured employers in accordance with regulations adopted by the [administrator.] board.
3. As used in this section, permanent physical impairment means any permanent condition, whether congenital or caused by injury or disease, of such seriousness as to constitute a hindrance or obstacle to obtaining employment or to obtaining reemployment if the employee is unemployed.
κ1995 Statutes of Nevada, Page 2145 (CHAPTER 587, SB 458)κ
such seriousness as to constitute a hindrance or obstacle to obtaining employment or to obtaining reemployment if the employee is unemployed. For the purposes of this section, a condition is not a permanent physical impairment unless it would support a rating of permanent impairment of 6 percent or more of the whole man if evaluated according to the American Medical Associations Guides to the Evaluation of Permanent Impairment as adopted and supplemented by the division [. The division shall adopt regulations incorporating the American Medical Associations Guides to the Evaluation of Permanent Impairment by reference and may amend such regulations from time to time as it deems necessary. In adopting the Guides to the Evaluation of Permanent Impairment, the division shall consider the edition most recently published by the American Medical Association.] pursuant to section 32 of this act.
4. To qualify under this section for reimbursement from the subsequent injury fund [,] for self-insured employers, the self-insured employer must establish by written records that the self-insured employer had knowledge of the permanent physical impairment at the time the employee was hired or that the employee was retained in employment after the self-insured employer acquired such knowledge.
5. A self-insured employer shall notify the [administrator] board of any possible claim against the subsequent injury fund for self-insured employers as soon as practicable, but not later than 100 weeks after the injury or death.
6. The [administrator] board shall adopt regulations establishing procedures for submitting claims against the subsequent injury fund [. The administrator] for self-insured employers. The board shall notify the self-insured employer of his decision on such a claim within 90 days after the claim is received.
7. An appeal of any decision made concerning a claim against the subsequent injury fund for self-insured employers must be submitted directly to the [appeals officer. The appeals officer shall hear such an appeal within 45 days after the appeal is submitted to him.] district court.
Sec. 84. NRS 616.428 is hereby amended to read as follows:
616.428 1. A self-insured employer who pays compensation due to an employee who has a permanent physical impairment from any cause or origin and incurs a subsequent disability by injury arising out of and in the course of his employment which entitled him to compensation for disability that is substantially greater by reason of the combined effects of the preexisting impairment and the subsequent injury than that which would have resulted from the subsequent injury alone is entitled to be reimbursed from the subsequent injury fund for self-insured employers if:
(a) The employee knowingly made a false representation as to his physical condition at the time he was hired by the self-insured employer;
(b) The self-insured employer relied upon the false representation and this reliance formed a substantial basis of the employment; and
(c) A causal connection existed between the false representation and the subsequent disability.
If the subsequent injury of the employee results in his death and it is determined that the death would not have occurred except for the preexisting permanent physical impairment, any compensation paid is entitled to be reimbursed from the subsequent injury fund [.]
κ1995 Statutes of Nevada, Page 2146 (CHAPTER 587, SB 458)κ
permanent physical impairment, any compensation paid is entitled to be reimbursed from the subsequent injury fund [.] for self-insured employers.
2. A self-insured employer shall notify the [administrator] board of any possible claim against the subsequent injury fund for self-insured employers pursuant to this section no later than 60 days after the date of the subsequent injury or the date the self-insured employer learns of the employees false representation, whichever is later.
Sec. 85. NRS 616.435 is hereby amended to read as follows:
616.435 [1. All disbursements from the state insurance fund must be paid by checks authorized and executed by the manager pursuant to chapter 351 of NRS.] The State of Nevada is not liable for the payment of any compensation or any salaries or expenses in the administration of this chapter, but is responsible for the safety and preservation of the state insurance fund.
[2. A sum of $200,000 in the aggregate may be regularly maintained on deposit by the system in all the collection depositary banks. An account kept currently on deposit must be used for the transaction of the ordinary business and functions of the system, including compensation. The account must be a trust account, and must not be removed or drawn upon except on checks or drafts of the system authorized and executed by the manager pursuant to chapter 351 of NRS.
3. The system shall authorize disbursements from the state insurance fund to provide all benefits provided for in this chapter.]
Sec. 86. (Deleted by amendment.)
Sec. 87. NRS 616.500 is hereby amended to read as follows:
616.500 1. An employee or, in the event of the employees death, one of his dependents, shall provide written notice of an injury that arose out of and in the course of employment to the employer of the employee as soon as practicable, but within [30] 7 days after the accident.
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 employees 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 employees 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 employers agent is an acknowledgment of the receipt of the notice and shall not be deemed to be a waiver of any of the employers 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.
κ1995 Statutes of Nevada, Page 2147 (CHAPTER 587, SB 458)κ
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 shall not file a notice of injury with the system.
Sec. 88. NRS 616.50185 is hereby amended to read as follows:
616.50185 1. An employee is not entitled to compensation pursuant to the provisions of this chapter if:
(a) He has a preexisting condition from a cause or origin that did not arise out of or in the course of his current or past employment; and
(b) He subsequently sustains an injury by accident arising out of and in the course of his employment which aggravates, precipitates or accelerates his preexisting condition,
unless information from a physician or chiropractor establishes to the satisfaction of the insurer that the subsequent injury is the primary cause of the resulting [disability.] condition.
2. An employee is not entitled to compensation pursuant to the provisions of this chapter if:
(a) He sustains an injury by accident arising out of and in the course of his employment; and
(b) He subsequently aggravates, precipitates or accelerates the injury in a manner that does not arise out of and in the course of his employment,
unless the injury described in paragraph (a) is the primary cause of the resulting [disability.] condition.
Sec. 88.5. NRS 616.5173 is hereby amended to read as follows:
616.5173 1. A vocational rehabilitation counselor shall develop a plan for a program of vocational rehabilitation for each injured employee who is eligible for vocational rehabilitation services pursuant to NRS 616.5178. The counselor shall work with the insurer and the injured employee to develop a program that is compatible with the injured employees age, sex and physical condition.
2. If the counselor determined in the written assessment developed pursuant to NRS 616.5172 that the injured employee has existing marketable skills, the plan must consist of job placement assistance only. When practicable, the goal of job placement assistance must be to aid the employee in finding a position which pays a gross wage that is equal to or greater than 80 percent of the gross wage that he was earning at the time of his injury. An injured employee must not receive job placement assistance for more than 90 days after the date on which he was notified that he is eligible only for job placement assistance because:
(a) He was physically capable of returning to work; or
(b) It was determined that he had existing marketable skills.
3. If the counselor determined in the written assessment developed pursuant to NRS 616.5172 that the injured employee does not have existing marketable skills, the plan must consist of a program which trains or educates the injured employee and provides job placement assistance. Except as otherwise provided in NRS 616.51735, such a program must not exceed:
(a) If the injured employee has incurred a permanent physical impairment of less than 6 percent, 6 months.
(b) If the injured employee has incurred a permanent physical impairment of 6 percent or more, but less than 11 percent, 9 months.
κ1995 Statutes of Nevada, Page 2148 (CHAPTER 587, SB 458)κ
(c) If the injured employee has incurred a permanent physical impairment of 11 percent or more, 1 year.
The percentage of the injured employees permanent physical impairment must be determined pursuant to NRS 616.605.
4. A plan for a program of vocational rehabilitation must comply with the requirements set forth in NRS 616.5177.
5. A program of vocational rehabilitation must not commence before the treating physician or chiropractor, or an examining physician or chiropractor determines that the injured employee is capable of safely participating in the program.
6. If, based upon the opinion of a treating or an examining physician or chiropractor, the counselor determines that an injured employee is not eligible for vocational rehabilitation services, the counselor shall provide a copy of the opinion to the injured employee, the injured employees employer and the insurer.
7. A plan for a program of vocational rehabilitation must be signed by a certified vocational rehabilitation counselor.
8. If an initial program of vocational rehabilitation pursuant to this section is unsuccessful, an injured employee may submit a written request for the development of a second program of vocational rehabilitation which relates to the same injury. An insurer shall authorize a second program for an injured employee upon good cause shown.
9. If a second program of vocational rehabilitation pursuant to subsection 8 is unsuccessful, an injured employee may submit a written request for the development of a third program of vocational rehabilitation which relates to the same injury. The insurer, with the approval of the employer who was the injured employees employer at the time of his injury, may authorize a third program for the injured employee. If such an employer has terminated operations, his approval is not required for authorization of a third program. An insurers determination to authorize or deny a third program of vocational rehabilitation may not be appealed.
10. The division shall adopt regulations to carry out the provisions of this section. The regulations must specify the contents of a plan for a program of vocational rehabilitation.
Sec. 89. NRS 616.539 is hereby amended to read as follows:
616.539 1. If an injured employee disagrees with the percentage of disability determined by a physician or chiropractor, the injured employee may [select] obtain a second determination of the percentage of disability. If the employee wishes to obtain such a determination, he must select the next physician or chiropractor in rotation from the list of qualified physicians or chiropractors maintained by the administrator pursuant to subsection 2 of NRS 616.605 . [and obtain a second determination of the percentage of disability. The] If a second determination is obtained, the injured employee shall pay for the [second] determination.
2. The results of a second determination made pursuant to subsection 1 may be offered at any hearing or settlement conference.
[3. If a hearing officer or appeals officer determines, or if the parties agree, that the percentage of disability of the injured employee is greater than the first determination, the insurer shall reimburse the injured employee for the costs of the second determination.]
κ1995 Statutes of Nevada, Page 2149 (CHAPTER 587, SB 458)κ
the first determination, the insurer shall reimburse the injured employee for the costs of the second determination.]
Sec. 90. NRS 616.5395 is hereby amended to read as follows:
616.5395 1. [If a person is dissatisfied with a decision of an insurer who has contracted with an organization for managed care that relates to accident benefits, the insurer shall render a final determination relating to that dispute within 21 days after the dispute is submitted to the insurer.
2.] Except as otherwise provided in subsection 3, any person who is aggrieved by [that final determination] a decision concerning accident benefits made by an organization for managed care which has contracted with an insurer must, within 14 days of the decision and before requesting a resolution of the dispute pursuant to NRS 616.5422 to 616.544, inclusive, appeal that [determination] decision in accordance with the procedure for resolving complaints established by the organization for managed care.
2. The procedure for resolving complaints established by the organization for managed care must be informal and must include, but is not limited to, a review of the appeal by a qualified physician or chiropractor who did not make or otherwise participate in marking the decision.
3. If a person appeals a final determination pursuant to a procedure for resolving complaints established by an organization for managed care and the dispute is not resolved within 14 days after it is submitted, he may request a resolution of the dispute pursuant to NRS 616.5422 to 616.544, inclusive.
Sec. 91. NRS 616.5415 is hereby amended to read as follows:
616.5415. 1. It is unlawful for any person to represent an employee before a hearings officer , or in any negotiations, settlements, hearings or other meetings with an insurer concerning the employees claim or possible claim, unless he is:
(a) Employed full time by the employees labor organization;
(b) Admitted to practice law in this state; [or]
(c) Employed full time by and under the supervision of an attorney admitted to practice law in this state; or
(d) Appearing without compensation on behalf of the employee.
It is unlawful for any person who is not admitted to practice law in this state to represent the employee before an appeals officer.
2. It is unlawful for any person to represent an employer at hearings of contested cases unless that person is:
(a) Employed full time by the employer or a trade association to which the employer belongs that is not formed solely for the purpose of providing representation at hearings of contested cases;
(b) An employers representative licensed pursuant to subsection 3 who is not licensed as a third-party administrator;
(c) Admitted to practice law in this state; or
(d) A licensed third-party administrator.
3. The director of the department of administration shall adopt regulations which include the:
(a) Requirements for licensure of employers representatives, including:
(1) The registration of each representative; and
(2) The filing of a copy of each written agreement for the compensation of a representative;
κ1995 Statutes of Nevada, Page 2150 (CHAPTER 587, SB 458)κ
(b) Procedure for such licensure; and
(c) Causes for revocation of such a license, including any applicable action listed in NRS 616.647 or a violation of this section.
4. Any person who is employed by or contracts with an employer to represent the employer at hearings regarding contested claims is an agent of the employer. If the employers representative violates any provision of this chapter, the employer is liable for any penalty assessed because of that violation.
5. An employer shall not make the compensation of any person representing him contingent in any manner upon the outcome of any contested claim.
6. The director of the department of administration shall collect in advance and deposit with the state treasurer for credit to the state general fund the following fees for licensure as an employer representative:
(a) Application and license ..................................................................... $78
(b) Triennial renewal of each license .................................................... 78
Sec. 92. NRS 616.5416 is hereby amended to read as follows:
616.5416 1. The hearing officer shall:
(a) Within 5 days after receiving a request for a hearing, set the hearing for a date and time within 30 days after his receipt of the request;
(b) Give notice by mail or by personal service to all interested parties to the hearing at least 15 days before the date and time scheduled; and
(c) Conduct hearings expeditiously and informally.
2. The notice must include a statement that the injured employee may be represented by a private attorney or seek assistance and advice from the Nevada attorney for injured workers.
3. If necessary to resolve a medical question concerning an injured employees condition, the hearing officer may refer the employee to a physician or chiropractor chosen by the hearing officer. If the medical question concerns the rating of a permanent disability, the hearing officer may refer the employee to a rating physician or chiropractor. The rating physician or chiropractor must be selected in rotation from the list of qualified physicians and chiropractors maintained by the administrator pursuant to subsection 2 of NRS 616.605, unless the insurer and injured employee otherwise agree to a rating physician or chiropractor. The insurer shall pay the costs of any medical examination requested by the hearing officer.
4. The hearing officer may allow or forbid the presence of a court reporter and the use of a tape recorder in a hearing.
5. The hearing officer shall render his decision within 15 days after:
(a) The hearing; or
(b) He receives a copy of the report from the medical examination he requested.
6. The hearing officer shall render his decision in the most efficient format developed by the chief of the hearings division of the department of administration.
7. The hearing officer shall give notice of his decision to each party by mail. He shall include with the notice of his decision the necessary forms for appealing from the decision.
8. [The] Except as otherwise provided in NRS 616.5435, the decision of the hearing officer is not stayed if an appeal from that decision is taken unless an application for a stay is submitted by a party.
κ1995 Statutes of Nevada, Page 2151 (CHAPTER 587, SB 458)κ
an application for a stay is submitted by a party. If such an application is submitted, the decision is automatically stayed until a determination is made on the application. A determination on the application must be made within 30 days after the filing of the application. If, after reviewing the application, a stay is not granted by the hearing officer or an appeals officer [.] , the decision must be complied with within 10 days after the refusal to grant a stay.
Sec. 93. NRS 616.5422 is hereby amended to read as follows:
616.5422 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 616.5395 and:
(a) A final decision 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 decision was mailed to the employee, or his dependent, or the unanswered request for resolution was submitted. Failure to render a written decision within 30 days after receipt of such a request shall be deemed by the appeals officer to be a denial of the request.
3. [The] Except as otherwise provided in NRS 616.5435, the filing of a notice of appeal does not automatically stay the enforcement of the decision of a hearing officer or a decision rendered pursuant to NRS 616.5395. 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. [The] 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 a contested claim pursuant to subsection 5 of NRS 616.5412, schedule a hearing 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 [within] 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 decision and the forms necessary to appeal the decision.
κ1995 Statutes of Nevada, Page 2152 (CHAPTER 587, SB 458)κ
of the evidence that he did not receive the notice of the decision and the forms necessary to appeal the decision. The claimant, employer or insurer shall notify the hearing officer of a change of address.
Sec. 94. NRS 616.5435 is hereby amended to read as follows:
616.5435 1. If a hearing officer, appeals officer or district court renders a decision on a claim for compensation and the insurer or employer appeals that decision, but is unable to obtain a stay of the decision:
(a) Payment of that portion of an award for a permanent partial disability which is contested must be made in installment payments until the claim reaches final resolution.
(b) Payment of the award must be made in monthly installments of 66 2/3 percent of the average wage of the claimant until the claim reaches final resolution if the claim is for more than 3 months of past benefits for a temporary total disability or rehabilitation, or for a payment in lump sum related to past benefits for rehabilitation, such as costs for purchasing a business or equipment.
2. If the final resolution of the claim is in favor of the claimant, the remaining amount of compensation to which the claimant is entitled may be paid in a lump sum if the claimant is otherwise eligible for such a payment pursuant to NRS 616.607 [.] and any regulations adopted pursuant thereto. If the final resolution of the claim is in favor of the insurer or employer, any amount paid to the claimant in excess of the uncontested amount must be deducted from any future benefits related to that claim, other than medical benefits, to which the claimant is entitled. The deductions must be made in a reasonable manner so as not to create an undue hardship to the claimant.
Sec. 95. NRS 616.545 is hereby amended to read as follows:
616.545 1. If an application to reopen a claim to increase or rearrange compensation is made in writing more than 1 year after the date on which the claim was closed, the insurer shall reopen the claim if:
(a) A change of circumstances warrants an increase or rearrangement of compensation during the life of the claimant;
(b) The primary cause of the change of circumstances is the injury for which the claim was originally made; and
(c) The application is accompanied by the certificate of a physician or a chiropractor showing a change of circumstances which would warrant an increase or rearrangement of compensation.
2. After a claim has been closed, the insurer, upon receiving an application and for good cause shown, may authorize the reopening of the claim for medical investigation only. The application must be accompanied by a written request for treatment from the physician or chiropractor treating the claimant, certifying that the treatment is indicated by a change in circumstances and is related to the industrial injury sustained by the claimant.
3. If a claimant applies for a claim to be reopened pursuant to subsection 1 or 2 and a final determination denying the reopening is issued, the claimant shall not reapply to reopen the claim until at least 1 year after the date on which the final determination is issued.
4. Except as otherwise provided in subsection 5, if an application to reopen a claim is made in writing within 1 year after the date on which the claim was closed, the insurer shall reopen the claim only if:
κ1995 Statutes of Nevada, Page 2153 (CHAPTER 587, SB 458)κ
(a) The application is supported by medical evidence demonstrating an objective change in the medical condition of the claimant; and
(b) There is clear and convincing evidence that the primary cause of the change of circumstances is the injury for which the claim was originally made.
5. An application to reopen a claim must be made in writing within 1 year after the date on which the claim was closed if:
(a) The claimant was not off work as a result of the injury; and
(b) The claimant did not receive benefits for a permanent partial disability. If an application to reopen a claim to increase or rearrange compensation is made pursuant to this subsection, the insurer shall reopen the claim if the requirements set forth in paragraphs (a), (b) and (c) of subsection 1 are met.
6. If an employees claim is reopened pursuant to this section, he is not entitled to vocational rehabilitation services or benefits for a temporary total disability if, before his claim was reopened, he:
(a) Retired; or
(b) Otherwise voluntarily removed himself from the work force,
for reasons unrelated to the injury for which the claim was originally made.
7. One year after the date on which the claim was closed, an insurer may dispose of the file of a claim authorized to be reopened pursuant to subsection 5, unless an application to reopen the claim has been filed pursuant to that subsection.
8. An increase or rearrangement of compensation is not effective before an application for reopening a claim is made unless good cause is shown. The insurer shall, upon good cause shown, allow the cost of emergency treatment the necessity for which has been certified by a physician or chiropractor.
9. A claim that automatically closes pursuant to subsection 2 of NRS 616.567 may not be reopened pursuant to this section.
10. The provisions of this section apply to any claim for which an application to reopen the claim or to increase or rearrange compensation is made pursuant to this section, regardless of the date of the injury or accident to the claimant. If a claim is reopened pursuant to this section, the amount of any compensation or benefits provided must be determined in accordance with the provisions of NRS 616.625.
Sec. 96. (Deleted by amendment.)
Sec. 97. NRS 616.565 is hereby amended to read as follows:
616.565 1. Compensation is not payable pursuant to the provisions of this chapter for an injury:
(a) Caused by the employees willful intention to injure himself.
(b) Caused by the employees willful intention to injure another.
(c) Proximately caused by the employees intoxication . [, whether by alcohol or a controlled substance.] If the employee was intoxicated at the time of his injury, intoxication must be presumed to be a proximate cause unless rebutted by evidence to the contrary.
(d) Proximately caused by the employees use of a controlled substance. If the employee had any amount of a controlled substance in his system at the time of his injury for which the employee did not have a current and lawful prescription issued in his name, the controlled substance must be presumed to be a proximate cause unless rebutted by evidence to the contrary.
κ1995 Statutes of Nevada, Page 2154 (CHAPTER 587, SB 458)κ
For the purposes of paragraphs (c) and (d), the affidavit of an expert or other person described in NRS 50.315 is admissible to prove the existence of any alcohol or the existence, quantity or identity of a controlled substance in an employees system. If the affidavit is to be so used, it must be submitted in the manner prescribed in NRS 616.5424.
2. No compensation is payable for the death, disability or treatment of an employee if his death is caused by, or insofar as his disability is aggravated, caused or continued by, an unreasonable refusal or neglect to submit to or to follow any competent and reasonable surgical treatment or medical aid.
3. If any employee persists in an unsanitary or injurious practice that imperils or retards his recovery, or refuses to submit to such medical or surgical treatment as is necessary to promote his recovery, his compensation may be reduced or suspended.
4. An injured employees compensation, other than accident benefits, must be suspended if:
(a) A physician or chiropractor determines that the employee is unable to undergo treatment, test or examination for the industrial injury solely because of a condition or injury that did not arise out of and in the course of his employment; and
(b) It is within the ability of the employee to correct the nonindustrial condition or injury.
The compensation must be suspended until the injured employee is able to resume treatment, testing or examination for the industrial injury. The insurer may elect to pay for the treatment of the nonindustrial condition or injury.
Sec. 98. (Deleted by amendment.)
Sec. 99. NRS 616.580 is hereby amended to read as follows:
616.580 1. Except as otherwise provided in this section and NRS 616.50185, every employee in the employ of an employer, within the provisions of this chapter, who is injured by accident arising out of and in the course of employment, or his dependents as defined in this chapter, is entitled to receive the following compensation for permanent total disability:
(a) In cases of total disability adjudged to be permanent, compensation per month of 66 2/3 percent of the average monthly wage.
(b) If there is a previous disability, as the loss of one eye, one hand, one foot or any other previous permanent disability, the percentage of disability for a subsequent injury must be determined by computing the percentage of the entire disability and deducting therefrom the percentage of the previous disability as it existed at the time of the subsequent injury [.] , but such a deduction for a previous award for permanent partial disability must be made in a reasonable manner and must not be more than the total amount which was paid for the previous award for permanent partial disability.
(c) If the character of the injury is such as to render the employee so physically helpless as to require the service of a constant attendant, an additional allowance may be made so long as such requirements continue, but the allowance may not be made while the employee is receiving benefits for care in a hospital or facility for intermediate care pursuant to the provisions of NRS 616.410 and 616.415.
2. Except as otherwise provided in NRS 616.252, an injured employee or his dependents are not entitled to accrue or be paid any benefits for a permanent total disability during the time the injured employee is incarcerated.
κ1995 Statutes of Nevada, Page 2155 (CHAPTER 587, SB 458)κ
permanent 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 permanently totally disabled by a physician or chiropractor.
3. An employee is entitled to receive compensation for a permanent total disability only so long as the permanent total disability continues to exist. The insurer has the burden of proving that the permanent total disability no longer exists.
4. If an employee who has received compensation in a lump sum for a permanent partial disability pursuant to NRS 616.607 is subsequently determined to be permanently and totally disabled, the compensation for the permanent total disability must be reduced as follows:
(a) If the employee has not received a minimum lump sum, the employees insurer shall deduct from the compensation for the permanent total disability an amount equal to the monthly installment rate for awards for permanent partial disability until the employee reaches the age upon which his disability was calculated; or
(b) If the employee received a minimum lump sum, the employees insurer shall deduct from the compensation for the permanent total disability an amount of not more than 10 percent of the rate of compensation for a permanent total disability until the lump sum is recovered.
The provisions of this subsection are retroactive for all claims for compensation for a permanent total disability remaining open on July 1, 1995.
Sec. 100. NRS 616.585 is hereby amended to read as follows:
616.585 1. Except as otherwise provided in this section, NRS 616.50185 and 616.545, every employee in the employ of an employer, within the provisions of this chapter, who is injured by accident arising out of and in the course of employment, or his dependents, is entitled to receive for the period of temporary total disability, 66 2/3 percent of the average monthly wage.
2. Except as otherwise provided in NRS 616.252, 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 employees 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
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(c) Except as otherwise provided in NRS 616.252, 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 616.2211 or 616.297.
8. If 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 616.51715 to 616.5175, inclusive, and 616.5178 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 employees 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. 101. NRS 616.605 is hereby amended to read as follows:
616.605 1. Except as otherwise provided in NRS 616.50185, every employee, in the employ of an employer within the provisions of this chapter, who is injured by an accident arising out of and in the course of employment is entitled to receive the compensation provided for permanent partial disability. As used in this section , disability and impairment of the whole man are equivalent terms.
2. Within 30 days after receiving from a physician or chiropractor a report indicating that the injured employee may have suffered a permanent disability and is stable and ratable, the insurer shall schedule an appointment with a rating physician or chiropractor to determine the extent of the employees disability. The insurer shall select a physician or chiropractor from a group of rating physicians and chiropractors designated by the administrator, to determine the percentage of disability in accordance with the American Medical Associations Guides to the Evaluation of Permanent Impairment as adopted and supplemented by the division pursuant to [subsection 3 of NRS 616.427.] section 32 of this act. Rating physicians and chiropractors must be selected in rotation from the list of qualified physicians and chiropractors designated by the administrator, according to their area of specialization and the order in which their names appear on the list.
3. At the request of the insurer, the injured employee shall, before an evaluation by a rating physician or chiropractor is performed, notify the insurer of:
(a) Any previous evaluations performed to determine the extent of any of the employees disabilities; and
(b) Any previous injury, disease or condition sustained by the employee which is relevant to the evaluation performed pursuant to this section.
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The notice must be on a form approved by the administrator and provided to the injured employee by the insurer at the time of the insurers request.
4. [A] Unless the regulations adopted pursuant to section 32 of this act provide otherwise, a rating evaluation must include an evaluation of the loss of motion, sensation and strength of an injured employee if the injury is of a type that might have caused such a loss. No factors other than the degree of physical impairment of the whole man may be considered in calculating the entitlement to compensation for a permanent partial disability.
5. The rating physician or chiropractor shall provide the insurer with his evaluation of the injured employee. After receiving the evaluation, the insurer shall, within 14 days, provide the employee with a copy of the evaluation and notify the employee:
(a) Of the compensation to which he is entitled pursuant to this section; or
(b) That he is not entitled to benefits for permanent partial disability.
6. Each 1 percent of impairment of the whole man must be compensated by a monthly payment:
(a) Of 0.5 percent of the claimants average monthly wage for injuries sustained before July 1, 1981;
(b) Of 0.6 percent of the claimants average monthly wage for injuries sustained on or after July 1, 1981 , and before June 18, 1993; [and]
(c) Of 0.54 percent of the claimants average monthly wage for injuries sustained on or after June 18, 1993.
Compensation must commence on the date of the injury or the day following the termination of temporary disability compensation, if any, whichever is later, and must continue on a monthly basis for 5 years or until the claimant is 70 years of age, whichever is later.
7. Compensation benefits may be paid annually to claimants who will be receiving less than $100 a month.
8. Where there is a previous disability, as the loss of one eye, one hand, one foot, or any other previous permanent disability, the percentage of disability for a subsequent injury must be determined by computing the percentage of the entire disability and deducting therefrom the percentage of the previous disability as it existed at the time of the subsequent injury.
9. The division may adopt schedules for rating permanent disabilities resulting from injuries sustained before July 1, 1973, and reasonable regulations to carry out the provisions of this section.
10. The increase in compensation and benefits effected by the amendment of this section is not retroactive for accidents which occurred before July 1, 1973.
11. This section does not entitle any person to double payments for the death of an employee and a continuation of payments for a permanent partial disability, or to a greater sum in the aggregate than if the injury had been fatal.
Sec. 102. NRS 616.607 is hereby amended to read as follows:
616.607 1. Except as otherwise provided in NRS 616.5435, an award for a permanent partial disability may be paid in a lump sum under the following conditions:
(a) A claimant injured on or after July 1, 1973, and before July 1, 1981, who incurs a disability that does not exceed 12 percent may elect to receive his compensation in a lump sum.
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his compensation in a lump sum. A claimant injured on or after July 1, 1981, and before July 1, 1995, who incurs a disability that does not exceed 25 percent may elect to receive his compensation in a lump sum.
(b) The spouse, or in the absence of a spouse, any dependent child of a deceased claimant injured on or after July 1, 1973, who is not entitled to compensation in accordance with NRS 616.615, is entitled to a lump sum equal to the present value of the deceased claimants undisbursed award for a permanent partial disability.
(c) Any claimant injured on or after July 1, 1981, and before July 1, 1995, who incurs a disability that exceeds 25 percent may elect to receive his compensation in a lump sum equal to the present value of an award for a disability of 25 percent. If the claimant elects to receive compensation pursuant to this paragraph, the insurer shall pay in installments to the claimant that portion of the claimants disability in excess of 25 percent.
(d) Any claimant injured on or after July 1, 1995, may elect to receive his compensation in a lump sum in accordance with regulations adopted by the administrator and approved by the governor. The administrator shall adopt regulations for determining the eligibility of such a claimant to receive all or any portion of his compensation in a lump sum. Such regulations may include the manner in which an award for a permanent partial disability may be paid to such a claimant in installments. Notwithstanding the provisions of NRS 233B.070, any regulation adopted pursuant to this paragraph does not become effective unless it is first approved by the governor.
2. If the claimant elects to receive his payment for a permanent partial disability in a lump sum [,] pursuant to subsection 1, all of his benefits for compensation terminate. His acceptance of that payment constitutes a final settlement of all factual and legal issues in the case. By so accepting he waives all of his rights regarding the claim, including the right to appeal from the closure of the case or the percentage of his disability, except:
(a) His right to reopen his claim according to the provisions of NRS 616.545; and
(b) Any counseling, training or other rehabilitative services provided by the insurer.
The claimant must be advised in writing of the provisions of this subsection when he demands his payment in a lump sum, and has 20 days after the mailing or personal delivery of this notice within which to retract or reaffirm his demand, before payment may be made and his election becomes final.
3. Any lump sum payment which has been paid on a claim incurred on or after July 1, 1973, must be supplemented if necessary to conform to the provisions of this section.
4. Except as otherwise provided in this subsection, the total lump sum payment for disablement must not be less than one-half the product of the average monthly wage multiplied by the percentage of disability. If the claimant received compensation in installment payments for his permanent partial disability before electing to receive his payment for that disability in a lump sum, the lump sum payment must be calculated for the remaining payment of compensation.
5. The lump sum payable must be equal to the present value of the compensation awarded, less any advance payment or lump sum previously paid.
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paid. The present value must be calculated using monthly payments in the amounts prescribed in subsection 6 of NRS 616.605 and actuarial annuity tables adopted by the division. The tables must be reviewed annually by a consulting actuary.
6. If a claimant would receive more money by electing to receive compensation in a lump sum than he would if he receives installment payments, he may elect to receive the lump sum payment.
Sec. 103. NRS 616.613 is hereby amended to read as follows:
616.613 [An] Except as otherwise provided in subsection 4 of NRS 616.580, an employee who is receiving compensation for:
1. A permanent total disability is not entitled to compensation for permanent partial disability during the period when he is receiving compensation for the permanent total disability.
2. A temporary total disability is not entitled to compensation for a permanent partial disability during the period of temporary total disability.
3. A temporary partial disability is not entitled to compensation for a permanent partial disability during the period of temporary partial disability.
Sec. 103.5. NRS 616.617 is hereby amended to read as follows:
616.617 1. If an injured employee is eligible for vocational rehabilitation services pursuant to NRS 616.5178, the insurer and the injured employee may , at any time during the employees eligibility for such services, execute a written agreement providing for the payment of compensation in a lump sum in lieu of the provision of vocational rehabilitation services. An insurers refusal to execute such an agreement may not be appealed.
2. If the insurer and the injured employee execute an agreement pursuant to subsection 1, the acceptance of the payment of compensation in a lump sum by the injured employee extinguishes his right to receive vocational rehabilitation services under his claim. Except as otherwise required by federal law, an injured employee shall not receive vocational rehabilitation services from any state agency after he accepts payment of compensation in a lump sum pursuant to this section.
3. Before executing an agreement pursuant to subsection 1, an insurer shall:
(a) Order an assessment of and counseling concerning the vocational skills of the injured employee, unless the provisions of NRS 616.5176 are applicable;
(b) Consult with the employer of the injured employee; and
(c) Provide a written notice to the injured employee that contains the following statements:
(1) That the injured employee is urged to seek assistance and advice from the Nevada attorney for injured workers or to consult with a private attorney before signing the agreement.
(2) That the injured employee may rescind the agreement within 20 days after he signs it.
(3) That the 20-day period pursuant to subparagraph (2) may not be waived.
(4) That acceptance by the injured employee of payment of compensation in a lump sum in lieu of the provision of vocational rehabilitation services extinguishes his right to receive such services.
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4. No payment of compensation in a lump sum may be made pursuant to this section until the 20-day period provided for the rescission of the agreement has expired.
Sec. 104. (Deleted by amendment.)
Sec. 105. NRS 616.625 is hereby amended to read as follows:
616.625 [1.] Except as otherwise provided by a specific statute [, the] :
1. The amount of compensation and benefits and the person or persons entitled thereto must be determined as of the date of the accident or injury to the employee, and their rights thereto become fixed as of that date.
2. If the employee incurs a subsequent injury or disability that primarily arises from a previous accident or injury that arose out of and in the course of his employment, the date of the previous accident or injury must be used to determine the amount of compensation and benefits to which the claimant is entitled.
Sec. 106. NRS 616.6283 is hereby amended to read as follows:
616.6283 1. [The] An injured employee or the dependents of an injured employee who are entitled to receive compensation for a permanent total disability pursuant to NRS 616.580 or a death benefit pursuant to NRS 616.615 for an industrial injury or occupational disease which occurred before July 1, 1980, are entitled to receive compensation of not less than $600 each month . [,] If the compensation is to be received by the dependents of an injured employee, it must be divided amongst them as provided in this chapter.
2. A self-insured employer or an association of self-insured public or private employers shall provide for the increase in monthly compensation required by subsection 1 for each person who would be entitled to receive the increase if the provisions of this section were applicable to the employer or association.
3. A person who is entitled to receive an increase in his monthly compensation pursuant to subsection 1 is not required to accept that increase.
4. The administrator shall adopt regulations to carry out the provisions of this section.
Sec. 106.5. NRS 616.647 is hereby amended to read as follows:
616.647 1. Except as otherwise provided in subsection 2, if the administrator determines that an insurer, organization for managed care, health care provider, third-party administrator or employer has:
(a) Induced a claimant for compensation to fail to report an accidental injury or occupational disease;
(b) Persuaded a claimant to settle for an amount which is less than reasonable;
(c) Persuaded a claimant to settle for an amount which is less than reasonable while a hearing or an appeal is pending;
(d) Persuaded a claimant to accept less than the compensation found to be due him by a hearing officer or appeals officer;
(e) Refused to pay or unreasonably delayed payment to a claimant of compensation found to be due him by a hearing officer or appeals officer;
(f) Made it necessary for a claimant to resort to proceedings against the employer or insurer for compensation found to be due him by a hearing officer or appeals officer;
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(g) Failed to comply with the divisions regulations covering the payment of an assessment relating to the funding of costs of administration of this chapter and chapter 617 of NRS; [or]
(h) Failed to provide or unreasonably delayed payment to an injured employee or reimbursement to an insurer pursuant to section 4.5 of this act; or
(i) Intentionally or repeatedly failed to comply with any provision of, or regulation adopted pursuant to, this chapter or chapter 617 of NRS,
the administrator shall impose an administrative fine of not more than $250 for each initial violation which was not intentional, or a fine of not more than $1,000 for each intentional or repeated violation.
2. In addition to any fine imposed pursuant to subsection 1, the administrator may assess against an insurer who violates any regulation concerning the reporting of claims expenditures used to calculate an assessment an administrative penalty of up to twice the amount of any underpaid assessment.
3. If the administrator determines that a person has violated any of the provisions of NRS 616.630, 616.635, 616.640 or 616.675 to 616.700, inclusive, the administrator shall impose an administrative fine of not more than $10,000.
4. Two or more fines of $1,000 imposed in 1 year for acts enumerated in subsection 1 must be considered by the commissioner as evidence for the withdrawal of a certificate of self-insurance to act as a self-insured employer or an association of self-insured public or private employers.
5. The commissioner may withdraw the certification of a self-insured employer or an association of self-insured public or private employers if, after a hearing, it is shown that the self-insured employer or association violated any provision of subsection 1.
Secs. 107-114. (Deleted by amendment.)
Sec. 115. NRS 617.342 is hereby amended to read as follows:
617.342 1. An employee or, in the event of the employees death, one of his dependents, shall provide written notice of an occupational disease for which compensation is payable under this chapter to the employer of the employee as soon as practicable, but within [30] 7 days after the employee or dependent has knowledge of the disability and its relationship to the employees employment.
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 employees 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 employees 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 employers agent is an acknowledgment of the receipt of the notice and shall not be deemed to be a waiver of any of the employers defenses or rights.
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of the employer, the supervisor or the employers agent is an acknowledgment of the receipt of the notice and shall not be deemed to be a waiver of any of the employers 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 shall not file a notice of injury with the system.
Sec. 116. NRS 617.366 is hereby amended to read as follows:
617.366 1. An employee is not entitled to compensation pursuant to the provisions of this chapter if:
(a) He has a preexisting condition from a cause or origin that did not arise out of and in the course of his current or past employment; and
(b) He subsequently contracts an occupational disease which aggravates, precipitates or accelerates his preexisting condition,
unless information from a physician or chiropractor establishes to the satisfaction of the insurer that the occupational disease is the primary cause of the resulting [disability.] condition.
2. An employee is not entitled to compensation pursuant to the provisions of this chapter if:
(a) He contracts an occupational disease; and
(b) He subsequently aggravates, precipitates or accelerates the occupational disease in a manner that does not arise out of and in the course of his employment,
unless the occupational disease is the primary cause of the resulting [disability.] condition.
Sec. 117. NRS 617.459 is hereby amended to read as follows:
617.459 1. The percentage of disability resulting from an occupational disease of the heart or lungs must be determined jointly by the claimants attending physician and the examining physician designated by the insurer, in accordance with the American Medical Associations Guides to the Evaluation of Permanent Impairment as adopted and supplemented by the division pursuant to [subsection 3 of NRS 616.427.] section 32 of this act.
2. If the claimants attending physician and the designated examining physician do not agree upon the percentage of disability, they shall designate a physician specializing in the branch of medicine which pertains to the disease in question to make the determination. If they do not agree upon the designation of such a physician, each shall choose one physician so specializing, and two physicians so chosen shall choose a third specialist in that branch. The resulting panel of three physicians shall, by majority vote, determine the percentage of disability in accordance with the American Medical Associations Guides to the Evaluation of Permanent Impairment as adopted and supplemented by the division pursuant to [subsection 3 of NRS 616.427.] section 32 of this act.
Sec. 118. (Deleted by amendment.)
Sec. 119. Chapter 218 of NRS is hereby amended by adding thereto the provisions set forth as sections 120 to 123, inclusive, of this act.
Sec. 120. 1. There is hereby created a legislative committee on workers compensation. The committee consists of:
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(a) Four members appointed by the majority leader of the senate, in consultation with the minority leader of the senate, from the membership of the senate standing committee on commerce and labor during the immediately preceding session of the legislature.
(b) Four members appointed by the speaker of the assembly from the membership of the assembly standing committee on labor and management during the immediately preceding session of the legislature. The members must represent each political party represented in the assembly in the approximate proportion that they are represented in that house, but at least one member must be chosen from each political party.
2. The members of the committee shall elect a chairman and vice chairman from among their members. The chairman must be elected from one house of the legislature and the vice chairman from the other house. After the initial election of a chairman and vice chairman, each of those officers holds office for a term of 2 years commencing on July 1 of each odd-numbered year. If a vacancy occurs in the chairmanship or vice chairmanship, the members of the committee shall elect a replacement for the remainder of the unexpired term.
3. Any member of the committee who is not a candidate for reelection or who is defeated for reelection continues to serve until the convening of the next session of the legislature.
4. Vacancies on the committee must be filled in the same manner as original appointments.
Sec. 121. 1. The members of the committee shall meet at least quarterly and at the times and places specified by a call of the chairman. The research director of the legislative counsel bureau or a person he has designated shall act as the nonvoting recording secretary. Five members of the committee constitute a quorum, and a quorum may exercise all the power and authority conferred on the committee.
2. Except during a regular or special session of the legislature, the members of the committee are entitled to receive the compensation provided for a majority of the members of the legislature during the first 60 days of the preceding session, the per diem allowance provided for state officers and employees generally and the travel expenses provided pursuant to NRS 218.2207 for each day or portion of a day of attendance at a meeting of the committee and while engaged in the business of the committee. The salaries and expenses of the members of the committee and any other expenses incurred by the committee in carrying out its duties must be paid from assessments imposed pursuant to NRS 232.680.
Sec. 122. The committee:
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:
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(a) Review and study the financial condition of the state industrial insurance system;
(b) Determine the extent of any apparent insolvency of the system; and
(c) Establish a formula which will be applied to calculate a surcharge that is equal in amount to any deficiency in the cumulative amount of premiums paid by an employer who is subject to the provisions of section 33 of this act.
5. May conduct investigations and hold hearings in connection with carrying out its duties pursuant to this section.
6. May direct the legislative counsel bureau to assist in its research, investigations, hearings and reviews.
Sec. 123. Each witness who appears before the committee by its order, except a state officer or employee, is entitled to receive for his attendance the fees and mileage provided for witnesses in civil cases in the courts of record of this state. The fees and mileage must be audited and paid upon the presentation of proper claims sworn to by the witness and approved by the chairman of the committee.
Secs. 124 and 125. (Deleted by amendment.)
Sec. 126. NRS 232.680 is hereby amended to read as follows:
232.680 1. The cost of carrying out the provisions of NRS 232.550 to 232.700, inclusive, and of supporting the division, a full-time employee of the legislative counsel bureau , [and] the fraud control unit for industrial insurance established pursuant to NRS 228.420 [,] and the legislative committee on workers compensation created pursuant to section 120 of this act, must be paid from assessments payable by each:
(a) Insurer based upon expected annual expenditures for claims; and
(b) Employer who provides accident benefits for injured employees pursuant to NRS 616.415, based upon his expected annual expenses of providing those benefits.
The division shall adopt regulations which establish formulas of assessment which result in an equitable distribution of cost among the insurers and employers who provide accident benefits for injured employees.
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 workmens 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 616.253 to 616.2539, 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 616.377 and 617.275.
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(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 sections 120 to 123, inclusive, of this act.
Secs. 127-129. (Deleted by amendment.)
Sec. 129.5. Chapter 679B of NRS is hereby amended by adding thereto a new section to read as follows:
The commissioner shall review the balance of the state insurance fund at least annually to determine whether the balance is sufficient to ensure the solvency of the state industrial insurance system. Upon determining that the balance is sufficient for this purpose, the commissioner shall, in accordance with subsection 6 of NRS 680B.060, notify the state treasurer of his determination.
Sec. 130. NRS 679B.190 is hereby amended to read as follows:
679B.190 1. The commissioner shall carefully preserve in the division and in permanent form all papers and records relating to the business and transactions of the division and shall hand them over to his successor in office.
2. Except as otherwise provided [by] in subsections 3 and 5 and other provisions of this code, and section 8 of this act, the papers and records must be open to public inspection.
3. Any records or information related to the investigation of a fraudulent claim by the commissioner are confidential unless:
(a) The commissioner releases the records or information for public inspection after determining that the release of the records or information will not harm his investigation or the person who is being investigated; or
(b) A court orders the release of the records or information after determining that the production of the records or information will not damage any investigation being conducted by the commissioner.
4. The commissioner may destroy unneeded or obsolete records and filings in the division in accordance with provisions and procedures applicable in general to administrative agencies of this state.
5. The commissioner may classify as confidential certain records and information obtained from a governmental agency or other sources upon the express condition that they remain confidential, or be deemed confidential by the commissioner. No filing required to be made with the commissioner under this code shall be deemed confidential unless expressly provided by law.
Sec. 130.2. NRS 680B.027 is hereby amended to read as follows:
680B.027 1. Except as otherwise provided in NRS 680B.033 and 680B.050, for the privilege of transacting business in this state, each insurer shall pay to the department of taxation a tax upon his net direct premiums and net direct considerations written at the rate of 3.5 percent.
2. The tax must be paid in the manner required by NRS 680B.030 and section 2 of [this act.] Senate Bill No. 271 of this session.
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.
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Sec. 130.4. (Deleted by amendment.)
Sec. 130.6. NRS 680B.060 is hereby amended to read as follows:
680B.060 1. [The] Except as otherwise provided in subsection 6, 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 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 insurers 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. [All] 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 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.
Secs. 131 and 132. (Deleted by amendment.)
Sec. 133. NRS 695C.120 is hereby amended to read as follows:
695C.120 The powers of a health maintenance organization include, but are not limited to the following:
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;
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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 616.2211 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 616 and 617 of NRS.
Sec. 134. NRS 696B.020 is hereby amended to read as follows:
696B.020 [The]
1. Except as otherwise provided in subsection 2, the applicable provisions of this chapter apply to:
[1.] (a) All insurers authorized to transact insurance in this state;
[2.] (b) All insurers having policyholders resident in this state;
[3.] (c) All insurers against whom a claim under an insurance contract may arise in this state;
[4.] (d) All persons in the process of organization, or holding themselves out as organizing, or proposing to organize in this state for the purpose of becoming an insurer; and
[5.] (e) All other persons to whom such provisions are otherwise expressly made applicable by law.
2. The provisions of this chapter do not apply to the state industrial insurance system for the purpose of determining and imposing an insolvency surcharge pursuant to section 33 of this act.
Sec. 135. (Deleted by amendment.)
Sec. 136. Section 2 of chapter 22, Statutes of Nevada 1993, at page 41, is hereby amended to read as follows:
Sec. 2. NRS 616.279 is hereby amended to read as follows:
616.279 1. If a quasi-public or private corporation is required to be insured under this chapter, an officer of the corporation who:
(a) Receives pay for services performed as an officer or employee of the corporation shall be deemed for the purposes of this chapter to receive a minimum pay of $6,000 per calendar year and [:
(1) For the period beginning July 1, 1993, and ending December 31, 1993, a maximum pay of $27,000 per calendar year.
(2) For the period beginning January 1, 1994, and ending December 31, 1994, a maximum pay of $30,000.
(3) For the period beginning January 1, 1995, and ending December 31, 1995,] a maximum pay of [$33,000.] $36,000 per calendar year.
(b) Does not receive pay for services performed as an officer or employee of the corporation shall be deemed for the purposes of this chapter to receive a minimum pay of $500 per month or $6,000 per calendar year.
κ1995 Statutes of Nevada, Page 2168 (CHAPTER 587, SB 458)κ
chapter to receive a minimum pay of $500 per month or $6,000 per calendar year.
2. An officer who does not receive pay for services performed as an officer or employee of the corporation may elect to reject coverage by filing written notice thereof with the corporation and the system. The rejection is effective upon receipt of the notice by the system.
3. An officer who has rejected coverage may rescind that rejection by filing written notice thereof with the corporation and the system. The rescission is effective upon receipt of the notice by the system. If an officer who has rejected coverage receives pay for services performed as an officer or employee of the corporation, the officer shall be deemed to have rescinded that rejection.
4. A nonprofit corporation whose officers do not receive pay for services performed as officers or employees of the corporation may elect to reject coverage for their current officers and all future officers who do not receive such pay by filing written notice thereof with the corporation and the system. The rejection is effective upon receipt of the notice by the system.
5. A nonprofit corporation which has rejected coverage for its officers who do not receive pay for services performed as officers or employees of the corporation may rescind that rejection by filing written notice thereof with the corporation and the system. The rescission is effective upon receipt of the notice by the system. If an officer of a nonprofit corporation which has rejected coverage receives pay for services performed as an officer or employee of the corporation, the corporation shall be deemed to have rescinded that rejection.
Sec. 137. Section 4 of chapter 22, Statutes of Nevada 1993, at page 43, is hereby amended to read as follows:
Sec. 4. NRS 616.400 is hereby amended to read as follows:
616.400 1. Every employer insured by the system shall, at intervals established by the manager, furnish the system with a true and accurate payroll showing:
(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 system,
together with the premium due thereon. The payroll and premium must be furnished to the system on or before the date established by the manager for the receipt of the payroll and premium.
2. In determining the total amount paid to employees by each employer for services performed during a calendar year, the maximum amount paid by each employer to any one employee during the calendar year shall be deemed to be [:
(a) For the period beginning October 1, 1992, and ending December 31, 1992, the first $27,000 paid to the employee during the calendar year of 1992.
(b) For the period beginning January 1, 1993, and ending December 31, 1993, the first $27,000 paid to the employee.
κ1995 Statutes of Nevada, Page 2169 (CHAPTER 587, SB 458)κ
(c) For the period beginning January 1, 1994, and ending December 31, 1994, the first $30,000 paid to the employee.
(d) For the period beginning January 1, 1995, and ending December 31, 1995,] the first [$33,000] $36,000 paid to the employee [.] during the calendar year.
3. Except as otherwise provided in this subsection, any employer by agreement in writing with the manager may arrange for the payment of premiums in advance for a period of more than 60 days. If an employers premiums are less than $300 in a given year, the premiums must be paid at intervals established by the manger.
4. Failure of any employer to comply with the provisions of this section and NRS 616.395 operates as a rejection of this chapter, effective at the expiration of the period covered by his estimate. The manager shall notify the administrator of each such rejection.
5. 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 manager may require the payment of money sufficient to cover the deficit, together with such amount as in his judgment constitutes an adequate advance premium for the period covered by the estimate.
6. The manager 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 this chapter as otherwise provided in this chapter.
7. The system may impose a penalty not to exceed 4 percent of the premiums which are due for the failure of an employer 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.
8. To the extent permitted by federal law, the system shall vigorously pursue the collection of premiums that are due under the provisions of this chapter even if an employers debts have been discharged in a bankruptcy proceeding.
Secs. 138-145. (Deleted by amendment.)
Sec. 146. Section 294 of chapter 265, Statutes of Nevada 1993, as last amended by section 28 of chapter 587, Statutes of Nevada 1993, at page 2458 is hereby amended to read as follows:
Sec. 294. 1. This section and sections 1, 2, 5, 6, 10 to 21, inclusive, 21.2 to 22.5, inclusive, 24, 52 to 84, inclusive, 86, 87, 88, 91, 92, 94, 95, 97, 98, 99, 100, 101, 102, 103, 103.5, 104, 105, 106, 107, 111, 112, 114, 115, 116, 118, 120, 121, 123, 124, 126, 130, 131, 132, 136, 138, 140, 141, 142, 144, 145, 146, 148, 150, 153, 155, 157, 159, 161, 164, 165, 166 to 169.5, inclusive, 172, 173, 175, 176, 179 to 182, inclusive, 184, 186 to 191.5, inclusive, 193 to 200.5, inclusive, 201.5, 202, 203, 204, 206, 207 to 213, inclusive, 216 to 224, inclusive, 227, 228, 229, 230, 232, 235, 236, 237, 239, 240, 242, 246.3, 249, 250, 251 to 260, inclusive, 261 to 282, inclusive, and 284.2 to 293, inclusive, of this act become effective upon passage and approval.
κ1995 Statutes of Nevada, Page 2170 (CHAPTER 587, SB 458)κ
2. Sections 245 and 246 of this act become effective on July 1, 1993.
3. Section 178 of this act becomes effective on October 1, 1993.
4. Section 247 of this act becomes effective at 12:01 a.m. on July 1, 1993.
5. Sections 4.5, 21.1, 84.5, 116.5 and 282.6 of this act become effective on July 1, 1994.
6. Sections 3, 4, 7, 8, 9, 25 to 51, inclusive, 85, 89, 90, 93, 108, 110, 113, 117, 119, 122, 128, 129, 133, 134, 135, 137, 139, 143, 147, 149, 150.5, 151, 152, 154, 156, [158, 160, 162] 163, 170, 171, 177, 201, 205, 206.5, 214, 226, 231, 241, 243, 244, 246.5, 248, 250.5, 260.5, 282.5, 283 and 284 of this act become effective on July 1, 1995.
7. Section 282.55 of this act becomes effective on January 1, 1996.
8. Sections 98.5, 99.5, 100.5, 103.2, 104.5, 106.5, 164.5 and 165.5 of this act become effective on July 1, 1997.
Sec. 147. 1. NRS 616.2213, 616.2214, 616.2215, 616.2216, 616.2217, 616.2225, 616.3445, 616.383, 616.387, 616.440, 616.450, 616.455, 616.460, 616.470, 616.475, 616.517, 616.518, 617.295 and 645.553 are hereby repealed.
2. Sections 158, 160 and 162 of chapter 265, Statutes of Nevada 1993, are hereby repealed.
Sec. 148. The provisions of subsection 1 of NRS 354.599 do not apply to any additional expenses of a local government which are related to the provisions of this act.
Sec. 149. The manager of the state industrial insurance system shall transfer any money retained by the system in a fund or account which is repealed pursuant to the provisions of this act into an appropriate fund or account of the state industrial insurance system.
Secs. 150 and 151. (Deleted by amendment.)
Sec. 152. Any amendatory provision of this act which repeals or otherwise removes or limits the authority of the state industrial insurance system to take an action or to engage in an activity specified in any such provision is not intended to prohibit or otherwise limit the state industrial insurance system from taking or engaging in that action.
Sec. 153. Notwithstanding the provisions of section 32 of this act, from July 1, 1995, to and including December 31, 1995, a permanent physical impairment or a disability must be evaluated pursuant to NRS 616.4255, 616.427, 616.605 and 617.459 in accordance with the American Medical Associations Guides to the Evaluation of Permanent Impairment, Second Edition, Third Printing. On and after January 1, 1996, such impairments and disabilities must be evaluated pursuant to the regulations of the division of industrial relations of the department of business and industry as they exist on January 1, 1996, and are thereafter amended pursuant to section 32 of this act.
Sec. 154. (Deleted by amendment.)
Sec. 155. 1. This section and subsection 2 of section 147 of this act become effective on June 30, 1995.
2. Sections 1, 4.5, 5, 6.5, 8, 15, 17, 23 to 33, inclusive, 38, 39, 44, 47, 48 to 54, inclusive, 57, 61, 68, 73, 76, 81 to 85, inclusive, 87 to 95, inclusive, 97, 99 to 103.5, inclusive, 105, 115, 116, 117, 119 to 123, inclusive, 126, 130, 133, 134, 136, 137, 146, subsection 1 of section 147, 148, 149, 152 and 153 of this act become effective on July 1, 1995.
κ1995 Statutes of Nevada, Page 2171 (CHAPTER 587, SB 458)κ
inclusive, 126, 130, 133, 134, 136, 137, 146, subsection 1 of section 147, 148, 149, 152 and 153 of this act become effective on July 1, 1995.
3. Sections 45, 77, 106 and 106.5 of this act become effective at 12:01 a.m. on July 1, 1995.
4. Sections 7, 129.5, 130.2, 130.4 and 130.6 of this act become effective on July 1, 1999.
________
Senate Bill No. 471Committee on Finance
CHAPTER 588
AN ACT relating to public welfare; authorizing the transfer of money from the hospital tax and intergovernmental transfer account in the state general fund in lieu of certain payments by counties to carry out the state plan for assistance to the medically indigent; and providing other matters properly relating thereto.
[Approved July 5, 1995]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. 1. As used in this section:
(a) Department means the department of human resources.
(b) Interlocal agreement means an interlocal agreement between the department and a county to finance expenses for institutional care pursuant to the state plan.
(c) Payment means a payment for the nonfederal share of expenditures of the medical, administrative and transaction costs of persons covered by the state plan whose net countable income is:
(1) More than $714 per month during the fiscal year beginning July 1, 1994, and ending June 30, 1995.
(2) More than $750 per month during the fiscal year beginning July 1, 1995, and ending June 30, 1996.
(d) State plan means the state plan for assistance to the medically indigent.
2. A county which fails to make a payment required pursuant to an interlocal agreement may submit a request to the department to transfer on behalf of the county the amount of that payment from the hospital tax and intergovernmental transfer account in the state general fund to the Medicaid budget account in the state general fund.
3. The department, in coordination with the department of taxation, shall consider the following factors when determining whether to approve a request submitted pursuant to subsection 2:
(a) Whether the county has any source of money available to make the payment.
(b) Whether the county has the taxing authority to raise enough additional money to make the payment.
(c) Whether the county has expended its money for the care of indigents appropriately.
κ1995 Statutes of Nevada, Page 2172 (CHAPTER 588, SB 471)κ
(d) Whether the county has budgeted appropriately for the anticipated amount of its payments.
(e) Any other factors the department deems appropriate.
4. If the department determines pursuant to subsection 3 that a county is unable to make a payment due during:
(a) The fiscal year beginning July 1, 1994, and ending June 30, 1995, the department shall, within the limitations set forth in section 2 of this act, transfer on behalf of the county all or any part of the amount of that payment from the hospital tax and intergovernmental transfer account in the state general fund to the Medicaid budget account in the state general fund, subject to such conditions as the department deems appropriate. The department shall report any transfers it makes pursuant to this paragraph to the interim finance committee at the first meeting of the interim finance committee after July 1, 1995.
(b) The fiscal year beginning July 1, 1995, and ending June 30, 1996, the department shall recommend to the interim finance committee, within the limitations set forth in section 2 of this act, that the department transfer on behalf of the county all or any part of the amount of that payment from the hospital tax and intergovernmental transfer account in the state general fund to the Medicaid budget account in the state general fund, subject to such conditions as the department deems appropriate. Upon approval of the interim finance committee, the money may be so transferred.
5. The department may adopt such regulations as are necessary to carry out the provisions of this section.
Sec. 2. Subject to the requirements of section 1 of this act, the department of human resources may transfer from the reserved and unobligated revenue in the hospital tax and intergovernmental transfer account in the state general fund to the Medicaid budget account in the state general fund, during the fiscal year.
1. Beginning July 1, 1994, and ending June 30, 1995, an amount that does not exceed $150,000; and
2. Beginning July 1, 1995, and ending June 30, 1996, an amount that does not exceed $200,000,
to carry out the provisions of section 1 of this act.
Sec. 3. If the name of the hospital tax and intergovernmental transfer account in the state general fund changes after June 30, 1995, any references in this act to that account shall be deemed to refer to the succeeding designation for that account.
Sec. 4. This act becomes effective on June 30, 1995.
________
κ1995 Statutes of Nevada, Page 2173κ
Senate Bill No. 479Committee on Commerce and Labor
CHAPTER 589
AN ACT relating to deceptive trade practices; authorizing the commissioner of consumer affairs and the director of the department of business and industry to create certain advisory committees; providing for the imposition of administrative fines and penalties for engaging in certain deceptive trade practices; allowing the commissioner to adopt regulations authorizing the disclosure of certain information concerning deceptive trade practices; and providing other matters properly relating thereto.
[Approved July 5, 1995]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 598 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.
Sec. 2. The commissioner and director may, independently, create and appoint advisory committees whenever necessary to advise them in the performance of their powers and duties pursuant to NRS 598.0903 to 598.0999, inclusive. Any such committee must be created by a regulation adopted in accordance with the provisions of chapter 233B of NRS. The regulation must specify:
1. The membership of the committee;
2. The duties of the committee and the purpose for which it is created;
3. The period of existence of the committee; and
4. The rules for the governance of the committee.
The membership of the committee must include a member who is a representative of any business or industry which may be affected by any advice provided by the committee. The members of an advisory committee created pursuant to this section serve without compensation unless an appropriation or other money for that purpose is provided by the legislature.
Sec. 3. 1. If, after an investigation, the commissioner has reasonable cause to believe that any person has been engaged or is engaging in any deceptive trade practice in violation of NRS 598.0903 to 598.0999, inclusive, the commissioner may issue an order directed to the person to show cause why the commissioner should not order the person to cease and desist from engaging in the practice. The order must contain a statement of the charges and a notice of a hearing to be held thereon. The order must be served upon the person directly or by certified or registered mail, return receipt requested.
2. If, after conducting a hearing pursuant to the provisions of subsection 1, the commissioner determines that the person has violated any of the provisions of NRS 598.0903 to 598.0999, inclusive, or if the person fails to appear for the hearing after being properly served with the statement of charges and notice of hearing, the commissioner may make a written report of his findings of fact concerning the violation and cause to be served a copy thereof upon the person and any intervener at the hearing. If the commissioner determines in the report that such a violation has occurred, he may order the violator to:
(a) Cease and desist from engaging in the practice or other activity constituting the violation;
κ1995 Statutes of Nevada, Page 2174 (CHAPTER 589, SB 479)κ
(b) Pay the costs of reporting services, fees for experts and other witnesses, charges for the rental of a hearing room if such a room is not available to the commissioner free of charge, charges for providing an independent hearing officer, if any, and charges incurred for any service of process, if the violator is adjudicated to have committed a violation of NRS 598.0903 to 598.0999, inclusive; and
(c) Provide restitution for any money or property improperly received or obtained as a result of the violation.
The order must be served upon the person directly or by certified or registered mail, return receipt requested. The order becomes effective upon service in the manner provided in this subsection.
3. Any person whose pecuniary interests are directly and immediately affected by an order issued pursuant to subsection 2 or who is aggrieved by the order may petition for judicial review in the manner provided in chapter 233B of NRS. Such a petition must be filed within 30 days after the service of the order. The order becomes final upon the filing of the petition.
4. If a person fails to comply with any provision of an order issued pursuant to subsection 2, the commissioner may, through the attorney general, at any time after 30 days after the service of the order, cause an action to be instituted in the district court of the county wherein the person resides or has his principal place of business requesting the court to enforce the provisions of the order or to provide any other appropriate injunctive relief.
5. If the court finds that:
(a) The violation complained of is a deceptive trade practice;
(b) The proceedings by the commissioner concerning the written report and any order issued pursuant to subsection 3 are in the interest of the public; and
(c) The findings of the commissioner are supported by the weight of the evidence,
the court shall issue an order enforcing the provisions of the order of the commissioner.
6. An order issued pursuant to subsection 5 may include:
(a) A provision requiring the payment to the commissioner of a penalty of not more than $5,000 for each act amounting to a failure to comply with the commissioners order; or
(b) Such injunctive or other equitable or extraordinary relief as is determined appropriate by the court.
7. Any aggrieved party may appeal from the final judgment, order or decree of the court in a like manner as provided for appeals in civil cases.
8. Upon the violation of any judgment, order or decree issued pursuant to subsection 5 or 6, the commissioner, after a hearing thereon, may proceed in accordance with the provisions of NRS 598.0999.
Sec. 4. NRS 598.0903 is hereby amended to read as follows:
598.0903 As used in NRS 598.0903 to 598.0999, inclusive, and sections 2 and 3 of this act, unless the context otherwise requires, the words and terms defined in NRS 598.0905 to 598.0947, inclusive, have the meanings ascribed to them in those sections.
Sec. 5. NRS 598.0967 is hereby amended to read as follows:
598.0967 1. The commissioner and the director, in addition to other powers conferred upon them by NRS 598.0903 to 598.0999, inclusive, may issue subpoenas to require the attendance of witnesses or the production of documents, conduct hearings in aid of any investigation or inquiry and prescribe such forms and adopt such regulations as may be necessary to administer the provisions of NRS 598.0903 to 598.0999, inclusive.
κ1995 Statutes of Nevada, Page 2175 (CHAPTER 589, SB 479)κ
issue subpoenas to require the attendance of witnesses or the production of documents, conduct hearings in aid of any investigation or inquiry and prescribe such forms and adopt such regulations as may be necessary to administer the provisions of NRS 598.0903 to 598.0999, inclusive. Such regulations may include, without limitation, provisions concerning the applicability of the provisions of NRS 598.0903 to 598.0999, inclusive, to particular persons or circumstances.
2. Service of any notice or subpoena must be made as provided in N.R.C.P. 45(c).
Sec. 6. NRS 598.0979 is hereby amended to read as follows:
598.0979 1. Notwithstanding the requirement of knowledge as an element of a deceptive trade practice, when the commissioner or director has cause to believe that a person has engaged or is engaging in any deceptive trade practice, knowingly or otherwise, he may request in writing that the attorney general represent him in instituting an appropriate legal proceeding, including, without limitation, an application for an injunction or temporary restraining order prohibiting the person from continuing the practices. The court may make orders or judgments necessary to prevent the use by the person of any such deceptive trade practice or to restore to any other person any money or property which may have been acquired by the deceptive trade practice.
2. Where the commissioner or director has the authority to institute a civil action or other proceeding, in lieu thereof or as a part thereof, he may accept an assurance of discontinuance of any deceptive trade practice. This assurance may include a stipulation for the payment by the alleged violator of [the] :
(a) The costs of investigation and the costs of instituting the action or proceeding [and for the] ;
(b) Any amount of money which he may be required to pay pursuant to the provisions of section 3 of this act in lieu of any administrative fine; and
(c) The restitution of any money or property acquired by any deceptive trade practice.
Except as otherwise provided in this subsection, any assurance of discontinuance accepted by the commissioner or director and any stipulation filed with the court is confidential to the parties to the action or proceeding and to the court and its employees. Upon final judgment by the court that an injunction or a temporary restraining order, issued as provided in subsection 1 of this section, has been violated, an assurance of discontinuance has been violated or a person has engaged in the same deceptive trade practice as had previously been enjoined, the assurance of discontinuance or stipulation becomes a public record. Proof by a preponderance of the evidence of a violation of an assurance constitutes prima facie evidence of a deceptive trade practice for the purpose of any civil action or proceeding brought thereafter by the commissioner or director, whether a new action or a subsequent motion or petition in any pending action or proceeding.
Sec. 7. NRS 598.098 is hereby amended to read as follows:
598.098 1. NRS 598.0903 to 598.0999, inclusive, do not prohibit the commissioner or director from disclosing to the attorney general, any district attorney or any law enforcement officer the fact that a crime has been committed by any person, if this fact has become known as a result of any investigation conducted pursuant to the provisions of NRS 598.0903 to 598.0999, inclusive.
κ1995 Statutes of Nevada, Page 2176 (CHAPTER 589, SB 479)κ
attorney or any law enforcement officer the fact that a crime has been committed by any person, if this fact has become known as a result of any investigation conducted pursuant to the provisions of NRS 598.0903 to 598.0999, inclusive.
2. Subject to the provisions of subsection 2 of NRS 598.0979 [,] and except as otherwise provided in this section, the commissioner or director may not make public the name of any person alleged to have committed a deceptive trade practice. This subsection does not [prevent] :
(a) Prevent the commissioner or director from issuing public statements describing or warning of any course of conduct which constitutes a deceptive trade practice.
(b) Apply to a person who is subject to an order issued pursuant to subsection 5 of section 3 of this act.
3. Upon request, the commissioner may:
(a) Disclose the number of written complaints received by the commissioner during the current or immediately preceding fiscal year. A disclosure made pursuant to this paragraph must include the disposition of the complaint disclosed.
(b) Make public any order to cease and desist issued pursuant to subsection 5 of section 3 of this act.
This subsection does not authorize the commissioner to disclose or make public the contents of any complaint described in paragraph (a) or the record of or any other information concerning a hearing conducted in relation to the issuance of an order to cease and desist described in paragraph (b).
4. The commissioner may adopt regulations authorizing the disclosure of information concerning any complaint or number of complaints received by the commissioner or director relating to a person who has been convicted of violating a provision of NRS 598.0903 to 598.0999, inclusive.
Sec. 8. NRS 598.0999 is hereby amended to read as follows:
598.0999 1. Any person who violates any court order or injunction issued pursuant to NRS 598.0903 to 598.0997, inclusive, and section 3 of this act, upon a complaint brought by the commissioner, the director, the district attorney of any county of this state or the attorney general shall forfeit and pay to the state general fund a civil penalty of not more than $10,000 for each violation. For the purpose of this section, the court issuing any such order or injunction retains jurisdiction over the action or proceeding. such civil penalties are in addition to any other penalty or remedy available for the enforcement of the provisions of NRS 598.0903 to 598.0997, inclusive.
2. In any action brought pursuant to NRS 598.0979 to 598.099, inclusive, if the court finds that any person has willfully engaged in a deceptive trade practice, the commissioner, the director, the district attorney of any county in this state or the attorney general bringing the action may recover a civil penalty not to exceed $2,500 for each violation.
3. Any natural person, firm or any officer or managing agent of any corporation or association who knowingly and willfully engages in a deceptive trade practice:
(a) For the first offense, is guilty of a misdemeanor.
(b) For the second offense, is guilty of a gross misdemeanor.
κ1995 Statutes of Nevada, Page 2177 (CHAPTER 589, SB 479)κ
(c) For the third and all subsequent offenses, shall be punished by imprisonment in the state prison for not less than 1 year nor more than 6 years, or by a fine of not more than $5,000, or by both fine and imprisonment.
4. Any offense which occurred within 10 years immediately preceding the date of the principal offense or after the principal offense constitutes a prior offense for the purposes of subsection 3 when evidenced by a conviction, without regard to the sequence of the offenses and convictions.
5. If a person violates any provision of NRS 598.0903 to 598.0999, 598.100 to 598.280, inclusive, 598.281 to 598.289, inclusive, or 598.840 to 598.966, inclusive, fails to comply with a judgment or order of any court in this state concerning a violation of such a provision, or fails to comply with an assurance of discontinuance or other agreement concerning an alleged violation of such a provision, the commissioner of consumer affairs or the district attorney of any county may bring an action in the name of the State of Nevada seeking:
(a) The suspension of the persons privilege to conduct business within this state; or
(b) If the defendant is a corporation, dissolution of the corporation.
The court may grant or deny the relief sought or may order other appropriate relief.
________
Senate Bill No. 556Committee on Government Affairs
CHAPTER 590
AN ACT relating to local government; providing for the creation of unincorporated towns under certain circumstances and the establishment of their revenues; providing for the establishment of the basic ad valorem revenue for certain local governments; and providing other matters properly relating thereto.
[Approved July 5, 1995]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 269 of NRS is hereby amended by adding thereto a new section to read as follows:
1. The board of county commissioners of a county whose population is 400,000 or more may provide by ordinance for the formation of an unincorporated town in an area that contains no residents if all of the owners of land within the boundaries of the proposed unincorporated town so request in writing. The written request of the owners must include the statement that the owners consent to be taxed for the services to be listed in the ordinance. If any owner withdraws his consent before adoption of the ordinance creating the unincorporated town, his property must be excluded in fixing the boundaries of the town.
2. The ordinance must contain clear designation of the boundaries of the unincorporated town and the boundaries of any area which may be annexed into the unincorporated town, a listing of services to be provided, the number of members to serve on the town advisory board and the conditions that must be satisfied before appointment of the first town advisory board.
κ1995 Statutes of Nevada, Page 2178 (CHAPTER 590, SB 556)κ
of members to serve on the town advisory board and the conditions that must be satisfied before appointment of the first town advisory board. These conditions may include, without limitation, the number of residents, the level of services being provided and the extent of improvements in place.
Sec. 2. NRS 269.010 is hereby amended to read as follows:
269.010 1. In the case of any disincorporated town or city, or any town [heretofore] formed by the board of county commissioners, all the provisions of this chapter [shall] immediately apply thereto.
2. Except as otherwise provided in subsection 1, in a county whose population is less than 400,000 which has not adopted the Unincorporated Town Government Law, none of the powers or jurisdiction in this chapter authorized or required [shall] may be exercised in any town or city until there [shall have] has been filed in the office of the county clerk a written petition for the application of the provisions of this chapter to the town or city, signed by a majority of the actual residents thereof, representing at least three-fifths of its taxable property. When a petition is filed, the genuineness of its signatures and the qualification of its subscribers [shall] must be established by the affidavits of reliable taxpayers of the town or city filed with [such] the petition.
3. Except as otherwise provided in NRS 269.016 to 269.022, inclusive, the boards of county commissioners [shall] constitute the governing body of all unincorporated towns within their respective counties.
Sec. 3. NRS 269.500 is hereby amended to read as follows:
269.500 NRS 269.500 to 269.625, inclusive, and section 1 of this act may be cited as the Unincorporated Town Government Law.
Sec. 4. NRS 269.555 is hereby amended to read as follows:
269.555 [The] Except as otherwise provided in section 1 of this act, the board may, by resolution adopted at a regular meeting, provide for submission of the question of the formation of an unincorporated town to the registered voters residing within the boundaries of the area proposed for the town at the next succeeding primary or general election. As a part of the question there must be included the statement that the affirmative vote carries with it the assent to be taxed for the service indicated in the boards resolution.
Sec. 5. NRS 269.576 is hereby amended to read as follows:
269.576 1. [The] Except as appointment may be deferred pursuant to section 1 of this act, the board of county commissioners of any county whose population is 400,000 or more shall, in each ordinance which establishes an unincorporated town pursuant to NRS 269.500 to 269.625, inclusive, provide for:
(a) Appointment by the board of county commissioners of three or five qualified electors who are residents of the unincorporated town to serve as the town advisory board.
(b) Terms for members of the town advisory board, which must expire on the first Monday in January of each odd-numbered year.
(c) Removal of a member of the town advisory board if the board of county commissioners finds that his removal is in the best interest of the residents of the unincorporated town, and for appointment of a member to serve the unexpired term of the member so removed.
κ1995 Statutes of Nevada, Page 2179 (CHAPTER 590, SB 556)κ
2. The duties of the town advisory board are to:
(a) Assist the board of county commissioners in governing the unincorporated town by acting as liaison between the residents of the town and the board of county commissioners; and
(b) Advise the board of county commissioners on matters of importance to the unincorporated town and its residents.
3. The board of county commissioners may provide by ordinance for compensation for the members of the town advisory board.
Sec. 6. NRS 354.5987 is hereby amended to read as follows:
354.5987 1. For the purposes of NRS 354.59811 and 377.057, the allowed revenue from taxes ad valorem and the basic ad valorem revenue of any local government:
(a) Which comes into being on or after July 1, 1989, whether newly created, consolidated, or both; [or]
(b) Which was in existence before July 1, 1989, but for which the basic ad valorem revenue was not established for the fiscal year ending June 30, 1989; or
(c) Which was in existence before July 1, 1989, but did not receive revenue from taxes ad valorem, except any levied for debt service, for the fiscal year ending June 30, 1989,
must be initially established by the Nevada tax commission.
2. Except as otherwise provided in subsections 3 and [6,] 8, if the local government for which the allowed revenue from taxes ad valorem and the basic ad valorem revenue are to be established performs a function previously performed by another local government, the total revenue allowed to all local governments for performance of substantially the same function in substantially the same geographical area must not be increased. To achieve this result, the Nevada tax commission shall request the committee on local government finance to prepare a statement of the prior cost of performing the function for each predecessor local government. Within 60 days after receipt of such a request, the committee on local government finance shall prepare a statement pursuant to the request and transmit it to the Nevada tax commission. The Nevada tax commission may accept, reject or amend the statement of the committee on local government finance. The decision of the Nevada tax commission is final. Upon making a final determination of the prior cost of performing the function for each predecessor local government, the Nevada tax commission shall:
(a) Determine the percentage that the prior cost of performing the function for each predecessor local government is of the basic ad valorem revenue and of the allowed revenue from taxes ad valorem of that local government; and
(b) Apply the percentages determined pursuant to paragraph (a) to the basic ad valorem revenue and to the allowed revenue from taxes ad valorem, respectively, and subtract those amounts respectively from the basic ad valorem revenue and from the allowed revenue from taxes ad valorem of the predecessor local government.
The basic ad valorem revenue and allowed revenue from taxes ad valorem, respectively, attributable to the new local government for the cost of performing the function must equal the total of the amounts subtracted for the prior cost of performing the function from the basic ad valorem revenue and allowed revenue from taxes ad valorem, respectively, of all of the predecessor local governments.
κ1995 Statutes of Nevada, Page 2180 (CHAPTER 590, SB 556)κ
allowed revenue from taxes ad valorem, respectively, of all of the predecessor local governments.
3. If the local government for which the basic ad valorem revenue is to be established pursuant to subsection 1 is a city, the Nevada tax commission shall:
(a) Using the basic ad valorem revenue of the town replaced by the city, if any, as a basis, set the basic ad valorem revenue of the city at an amount sufficient to allow the city, with other available revenue, to provide the basic services for which it was created;
(b) Reduce the basic ad valorem revenue of the county by the amount set for the city pursuant to paragraph (a);
(c) Add to the basic ad valorem revenue of the county the basic ad valorem revenue of any town which the city has replaced; and
(d) Add to the allowed revenue from taxes ad valorem of the county the allowed revenue from taxes ad valorem for any town which the city replaced.
4. If the local government for which the allowed revenue from taxes ad valorem or the basic ad valorem revenue is to be established is an unincorporated town which provides a service not previously provided by another local government, and the board of county commissioners has included the unincorporated town in a resolution adopted pursuant to the provisions of NRS 269.5755, the Nevada tax commission shall:
(a) Establish the basic ad valorem revenue of the town at an amount which is in the same ratio to the assessed valuation of the town as the combined basic ad valorem revenues are to the combined assessed valuations of all other unincorporated towns included in the common levy authorized pursuant to NRS 269.5755; and
(b) If the unincorporated town also does not receive revenue from taxes ad valorem, establish the allowed revenue of the town from taxes ad valorem at an amount which is in the same ratio to the assessed valuation of the town as the combined allowed revenues from taxes ad valorem are to the combined assessed valuations of the other unincorporated towns included in the common levy.
5. The basic ad valorem revenue and allowed revenue from taxes ad valorem of an unincorporated town which provides a service not previously provided by another local government must be:
(a) Reduced by 75 percent for the first fiscal year following the fiscal year in which the basic ad valorem revenue and allowed revenue from taxes ad valorem are established pursuant to subsection 4;
(b) Reduced by 50 percent for the second fiscal year following the fiscal year in which the basic ad valorem revenue and allowed revenue from taxes ad valorem are established pursuant to subsection 4; and
(c) Reduced by 25 percent for the third fiscal year following the fiscal year in which the basic ad valorem revenue and allowed revenue from taxes ad valorem are established pursuant to subsection 4.
6. In any other case, except as otherwise provided in subsection [6,] 8, the allowed revenue from taxes ad valorem of all local governments in the county, determined pursuant to NRS 354.59811, must not be increased, but the total basic ad valorem revenue and allowed revenue from taxes ad valorem must be reallocated among the local governments consistent with subsection 2 to accommodate the amount established for the new local government pursuant to subsection 1.
κ1995 Statutes of Nevada, Page 2181 (CHAPTER 590, SB 556)κ
subsection 2 to accommodate the amount established for the new local government pursuant to subsection 1.
[5.] 7. Any amount of basic ad valorem revenue allowable which is established or changed pursuant to this section must be used to determine a new tax rate for the fiscal year ending June 30, 1981, for each affected local government. This new tax rate must be used to make the distributions among the local governments in the county required by NRS 377.057 for each year following the year in which the amount was established or changed.
[6.] 8. In establishing the allowed revenue from taxes ad valorem of a county, city or town pursuant to this section, the Nevada tax commission shall allow a tax rate for operating expenses of at least 15 cents per $100 of assessed valuation in addition to the tax rate allowed for any identified and restricted purposes and for debt service.
[7.] 9. As used in this section:
(a) Predecessor local government means a local government which previously performed all or part of a function to be performed by the local government for which the allowed revenue from taxes ad valorem and the basic ad valorem revenue are being established pursuant to subsection 1.
(b) Prior cost of performing the function means the amount expended by a local government to perform a function which is now to be performed by another local government. The amount must be determined on the basis of the most recent fiscal year for which reliable information is available.
Sec. 7. NRS 377.057 is hereby amended to read as follows:
377.057 1. The state controller, acting upon the relevant information furnished by the department, shall monthly from the fees, taxes, interest and penalties which derive from the supplemental city-county relief tax collected in all counties and from out-of-state business during the preceding month, except as otherwise provided in subsection 2:
(a) For Douglas, Esmeralda, Eureka, Lander, Lincoln, Lyon, Mineral, Nye, Pershing, Storey and White Pine counties, distribute to each county an amount equal to one-twelfth of the amount distributed in the immediately preceding fiscal year multiplied by one plus:
(1) The percentage change in the total receipts from the supplemental city-county relief tax for all counties and from out-of-state businesses, from the fiscal year 2 years preceding the immediately preceding fiscal year to the fiscal year preceding the immediately preceding fiscal year; or
(2) Except as otherwise provided in this paragraph, the percentage change in the population of the county, as certified by the governor pursuant to NRS 360.285, added to the percentage change in the Consumer Price Index for the year ending on December 31 next preceding the year of distribution,
whichever is less, except that the amount distributed to the county must not be less than the amount specified in subsection 11. If the United States Bureau of the Census issues population totals that conflict with the totals certified by the governor pursuant to NRS 360.285, the percentage change calculated pursuant to subparagraph (2) for the ensuing fiscal year must be an estimate of the change in population for the calendar year, based upon the population totals issued by the Bureau of the Census.
κ1995 Statutes of Nevada, Page 2182 (CHAPTER 590, SB 556)κ
(b) For all other counties, distribute the amount remaining after making the distributions required by paragraph (a) to each county in the proportion that the amount of supplemental city-county relief tax collected in the county for the month bears to the total amount of supplemental city-county relief tax collected for that month in the counties whose distribution will be determined pursuant to this paragraph.
2. If the amount of supplemental city-county relief tax collected in a county listed in paragraph (a) of subsection 1 for the 12 most recent months for which information concerning the actual amount collected is available on February 15 of any year exceeds by more than 10 percent the amount distributed pursuant to paragraph (a) to the county for the same period, the state controller shall distribute that countys portion of the proceeds from the supplemental city-county relief tax pursuant to paragraph (b) in all subsequent fiscal years, unless a waiver is granted pursuant to subsection 3.
3. A county which, pursuant to subsection 2, is required to have its portion of the proceeds from the supplemental city-county relief tax distributed pursuant to paragraph (b) of subsection 1, may file a request with the Nevada tax commission for a waiver of the requirements of subsection 2. The request must be filed on or before February 20 next preceding the fiscal year for which the county will first receive its portion of the proceeds from the supplemental city-county relief tax pursuant to paragraph (b) of subsection 1, and must be accompanied by evidence which supports the granting of the waiver. The commission shall grant or deny a request for a waiver on or before March 10 next following the timely filing of the request. If the commission determines that the increase in the amount of supplemental city-county relief tax collected in the county was primarily caused by:
(a) Nonrecurring taxable sales, it shall grant the request.
(b) Normal or sustainable growth in taxable sales, it shall deny the request. A county which is granted a waiver pursuant to this subsection is not required to obtain a waiver in any subsequent fiscal year to continue to receive its portion of the proceeds from the supplemental city-county relief tax pursuant to paragraph (a) of subsection 1 unless the amount of supplemental city-county relief tax collected in the county in a fiscal year again exceeds the threshold established in subsection 2.
4. The amount apportioned to each county must then be apportioned among the several local governments therein, including the county and excluding the school district, any district to provide a telephone number for emergencies, any district created under chapter 318 of NRS to furnish emergency medical services, any redevelopment agency, any tax increment area and any other local government excluded by specific statute, in the proportion which each local governments basic ad valorem revenue bears to the total basic ad valorem revenue of all these local governments.
5. As used in this section, the basic ad valorem revenue of each local government, except as otherwise provided in subsection [5] 6 of NRS 354.5987, is its assessed valuation, including assessed valuation attributable to a redevelopment agency or tax increment area but excluding the portion attributable to the net proceeds of minerals, for the year of distribution, multiplied by the rate levied on its behalf for the fiscal year ending June 30, 1981, for purposes other than paying the interest on and principal of its general obligations.
κ1995 Statutes of Nevada, Page 2183 (CHAPTER 590, SB 556)κ
1981, for purposes other than paying the interest on and principal of its general obligations. For the purposes of this paragraph:
(a) A county whose actual tax rate, for purposes other than debt service, for the fiscal year ending on June 30, 1981, was less than 50 cents per $100 of assessed valuation is entitled to the use of a rate not greater than 80 cents per $100 of assessed valuation.
(b) A fire district in such a county whose tax rate was more than 50 cents per $100 of assessed valuation is entitled to the use of a rate not greater than $1.10 per $100 of assessed valuation.
6. For the purposes of this section, a fire protection district organized pursuant to chapter 473 of NRS is a local government.
7. For the purposes of determining basic ad valorem revenue, the assessed valuation of a fire protection district includes property which was transferred from private ownership to public ownership after July 1, 1986, pursuant to:
(a) The Santini-Burton Act, Public Law 96-586; or
(b) Chapter 585, Statutes of Nevada 1985, at page 1866, approved by the voters on November 4, 1986.
8. On or before February 15 of each year, the executive director shall provide to each local government a preliminary estimate of the revenue it will receive from the supplemental city-county relief tax in the next fiscal year.
9. On or before March 15 of each year, the executive director shall:
(a) Make an estimate of the receipts from the supplemental city-county relief tax on an accrual basis for the next fiscal year in accordance with generally accepted accounting principles; and
(b) Provide to each local government an estimate of the tax that local government would receive based upon the estimate made pursuant to paragraph (a) and calculated pursuant to the provisions of this section.
10. A local government may use the estimate provided by the executive director pursuant to subsection 9 in the preparation of its budget.
11. The minimum amount which may be distributed to the following counties in a month pursuant to paragraph (a) of subsection 1 is as follows:
Douglas $580,993
Esmeralda 53,093
Lander 155,106
Lincoln 72,973
Lyon 356,858
Mineral 118,299
Nye 296,609
Pershing 96,731
Storey 69,914
White Pine 158,863
Sec. 8. NRS 482.181 is hereby amended to read as follows:
482.181 1. Except as otherwise provided in subsection [4,] 5, the department shall certify monthly to the state board of examiners the amount of the basic and supplemental privilege taxes collected for each county by the department and its agents during the preceding month, and that money must be distributed monthly as provided in this section.
κ1995 Statutes of Nevada, Page 2184 (CHAPTER 590, SB 556)κ
2. Any supplemental privilege tax collected for a county must be distributed only to the county, to be used as provided in NRS 371.045.
3. The distribution of the basic privilege tax within a county must be made to local governments, as defined in NRS 354.474, except redevelopment agencies and tax increment areas, in the same ratio as all property taxes were levied in the county in the previous fiscal year, but the State of Nevada is not entitled to share in that distribution and at least 5 percent of the basic privilege tax disbursed to a county must be deposited for credit to the countys general fund. For the purpose of this subsection, the taxes levied by each local government are the product of its certified valuation, determined pursuant to subsection 2 of NRS 361.405, and its tax rate, established pursuant to NRS 361.455 for the fiscal year beginning on July 1, 1980, except that the tax rate for school districts, including the rate attributable to a districts debt service, is the rate established pursuant to NRS 361.455 for the fiscal year beginning on July 1, 1978, but if the rate attributable to a districts debt service in any fiscal year is greater than its rate for the fiscal year beginning on July 1, 1978, the higher rate must be used to determine the amount attributable to debt service.
4. The tax rate for the fiscal year beginning on July 1, 1980, of an unincorporated town created after July 1, 1980, for which the Nevada tax commission establishes the allowed revenue from taxes ad valorem or basic ad valorem revenue pursuant to subsection 4 of NRS 354.5987 shall be deemed to be the average tax rate levied for the fiscal year beginning on July 1, 1980, by other unincorporated towns included in the same common levy authorized by NRS 269.5755 which were in existence on July 1, 1980.
5. An amount equal to any basic privilege tax distributed to a redevelopment agency or tax increment area in the fiscal year 1987-1988 must continue to be distributed to that agency or area as long as it exists but must not be increased.
[5.] 6. Local governments, other than incorporated cities, are entitled to receive no distribution of basic privilege tax if the distribution to the local government is less than $100. Any undistributed money accrues to the county general fund of the county in which the local government is located.
[6.] 7. The department shall make distributions of basic privilege tax directly to counties, county school districts and incorporated cities. Distributions for other local governments within a county must be paid to the counties for distribution to the other local governments.
Sec. 9. Section 16 of Assembly Bill No. 35 of this session is hereby amended to read as follows:
Sec. 16. NRS 377.057 is hereby amended to read as follows:
377.057 1. The state controller, acting upon the relevant information furnished by the department, shall monthly from the fees, taxes, interest and penalties which derive from the supplemental city-county relief tax collected in all counties and from out-of-state businesses during the preceding month, except as otherwise provided in subsection 2:
(a) For Douglas, Esmeralda, Eureka, Lander, Lincoln, Lyon, Mineral, Nye, Pershing, Storey and White Pine counties, distribute to each county an amount equal to one-twelfth of the amount distributed in the immediately preceding fiscal year multiplied by one plus:
κ1995 Statutes of Nevada, Page 2185 (CHAPTER 590, SB 556)κ
(1) The percentage change in the total receipts from the supplemental city-county relief tax for all counties and from out-of-state businesses, from the fiscal year 2 years preceding the immediately preceding fiscal year to the fiscal year preceding the immediately preceding fiscal year; or
(2) Except as otherwise provided in this paragraph, the percentage change in the population of the county, as certified by the governor pursuant to NRS 360.285, added to the percentage change in the Consumer Price Index for the year ending on December 31 next preceding the year of distribution,
whichever is less, except that the amount distributed to the county must not be less than the amount specified in subsection [11.] 10. If the United States Bureau of the Census issues population totals that conflict with the totals certified by the governor pursuant to NRS 360.285, the percentage change calculated pursuant to subparagraph (2) for the ensuing fiscal year must be an estimate of the change in population for the calendar year, based upon the population totals issued by the Bureau of the Census.
(b) For all other counties, distribute the amount remaining after making the distributions required by paragraph (a) to each county in the proportion that the amount of supplemental city-county relief tax collected in the county for the month bears to the total amount of supplemental city-county relief tax collected for that month in the counties whose distribution will be determined pursuant to this paragraph.
2. If the amount of supplemental city-county relief tax collected in a county listed in paragraph (a) of subsection 1 for the 12 most recent months for which information concerning the actual amount collected is available on February 15 of any year exceeds by more than 10 percent the amount distributed pursuant to paragraph (a) to that county for the same period, the state controller shall distribute that countys portion of the proceeds from the supplemental city-county relief tax pursuant to paragraph (b) in all subsequent fiscal years, unless a waiver is granted pursuant to subsection 3.
3. A county which, pursuant to subsection 2, is required to have its portion of the proceeds from the supplemental city-county relief tax distributed pursuant to paragraph (b) of subsection 1, may file a request with the Nevada tax commission for a waiver of the requirements of subsection 2. The request must be filed on or before February 20 next preceding the fiscal year for which the county will first receive its portion of the proceeds from the supplemental city-county relief tax pursuant to paragraph (b) of subsection 1, and must be accompanied by evidence which supports the granting of the waiver. The commission shall grant or deny a request for a waiver on or before March 10 next following the timely filing of the request. If the commission determines that the increase in the amount of supplemental city-county relief tax collected in the county was primarily caused by:
(a) Nonrecurring taxable sales, it shall grant the request.
(b) Normal or sustainable growth in taxable sales, it shall deny the request.
κ1995 Statutes of Nevada, Page 2186 (CHAPTER 590, SB 556)κ
A county which is granted a waiver pursuant to this subsection is not required to obtain a waiver in any subsequent fiscal year to continue to receive its portion of the proceeds from the supplemental city-county relief tax pursuant to paragraph (a) of subsection 1 unless the amount of supplemental city-county relief tax collected in the county in a fiscal year again exceeds the threshold established in subsection 2.
4. The amount apportioned to each county must then be apportioned among the several local governments therein, including the county and excluding the school district, any district created to provide a telephone number for emergencies, any district created under chapter 318 of NRS to furnish emergency medical services, any redevelopment agency, and tax increment area and any other local government excluded by specific statute, in the proportion which each local governments basic ad valorem revenue bears to the total basic ad valorem revenue of all these local governments.
5. As used in this section, the basic ad valorem revenue of each local government, except as otherwise provided in subsection 6 of NRS 354.5987, is its assessed valuation, including assessed valuation attributable to a redevelopment agency or tax increment area but excluding the portion attributable to the net proceeds of minerals, for the year of distribution, multiplied by the rate levied on its behalf for the fiscal year ending June 30, 1981, for purposes other than paying the interest on and principal of its general obligations. For the purposes of this paragraph:
(a) A county whose actual tax rate, for purposes other than debt service, for the fiscal year ending on June 30, 1981, was less than 50 cents per $100 of assessed valuation is entitled to the use of a rate not greater than 80 cents per $100 of assessed valuation.
(b) A fire district in such a county whose tax rate was more than 50 cents per $100 of assessed valuation is entitled to the use of a rate not greater than $1.10 per $100 of assessed valuation.
6. [For the purposes of this section, a fire protection district organized pursuant to chapter 473 of NRS is a local government.
7.] For the purposes of determining basic ad valorem revenue, the assessed valuation of a fire protection district includes property which was transferred from private ownership to public ownership after July 1, 1986, pursuant to:
(a) The Santini-Burton Act, Public Law 96-586; or
(b) Chapter 585, Statutes of Nevada 1985, at page 1866, approved by the voters on November 4, 1986.
[8.] 7. On or before February 15 of each year, the executive director shall provide to each local government a preliminary estimate of the revenue it will receive from the supplemental city-county relief tax in the next fiscal year.
[9.] 8. On or before March 15 of each year, the executive director shall:
(a) Make an estimate of the receipts from the supplemental city-county relief tax on an accrual basis for the next fiscal year in accordance with generally accepted accounting principles; and
κ1995 Statutes of Nevada, Page 2187 (CHAPTER 590, SB 556)κ
(b) Provide to each local government an estimate of the tax that local government would receive based upon the estimate made pursuant to paragraph (a) and calculated pursuant to the provisions of this section.
[10.] 9. A local government may use the estimate provided by the executive director pursuant to subsection [9] 8 in the preparation of its budget.
[11.] 10. The minimum amount which may be distributed to the following counties in a month pursuant to paragraph (a) of subsection 1 is as follows:
Douglas $580,993
Esmeralda 53,093
Lander 155,106
Lincoln 72,973
Lyon 356,858
Mineral 118,299
Nye 296,609
Pershing 96,731
Storey 69,914
White Pine 158,863
11. As used in this section, unless the context otherwise requires:
(a) Local government includes a fire protection district organized pursuant to chapter 473 of NRS.
(b) Local government does not include the Nevada rural housing authority.
Sec. 10. 1. This section and sections 1 to 7, inclusive, and 9 of this act become effective on July 1, 1995.
2. Section 8 of this act becomes effective on July 1, 2000.
________
Senate Bill No. 568Committee on Government Affairs
CHAPTER 591
AN ACT relating to local governmental financial administration; limiting the amount of fees a city or county may charge certain public utilities; requiring certain reports from public utilities; authorizing the collection of certain fees from customers of public utilities; revising the limitation on fees for business licenses; and providing other matters properly relating thereto.
[Approved July 5, 1995]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 354 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 11, inclusive, of this act.
κ1995 Statutes of Nevada, Page 2188 (CHAPTER 591, SB 568)κ
Sec. 2. As used in sections 2 to 11, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 3 to 7, inclusive, of this act have the meanings ascribed to them in those sections.
Sec. 3. Customer does not include any customer of a provider of a telecommunication service other than a retail customer.
Sec. 4. Fee means a charge imposed upon a public utility for a business license, a franchise or a right of way over streets or other public areas, except any paid pursuant to the provisions of NRS 709.110, 709.230 or 709.270.
Sec. 5. Jurisdiction means:
1. In the case of a city, the corporate limits of the city.
2. In the case of a county, the unincorporated area of the county.
Sec. 6. Public utility means a person or local government that provides:
1. Electric energy or gas, whether or not the person or local government is subject to regulation by the public service commission of Nevada;
2. A telecommunication service, if the person or local government holds a certificate of public convenience and necessity issued by the public service commission of Nevada and derives intrastate revenue from the provision of that service to retail customers; or
3. A commercial mobile radio service as that term is defined in 47 C.F.R. § 20.3 on the effective date of this act.
Sec. 7. Revenue does not include:
1. Any proceeds from the interstate sale of natural gas to a provider of electric energy which holds a certificate of public convenience and necessity issued by the public service commission of Nevada.
2. Any revenue of a provider of a telecommunication service other than intrastate revenue.
Sec. 8. A city or county shall not adopt an ordinance imposing or increasing a fee:
1. If that ordinance would alter the terms of any existing franchise agreement between the city or county and a public utility.
2. That applies to any public utility which does not derive revenue from customers located within the jurisdiction of the city or county.
3. If, after the adoption of the ordinance:
(a) Any part of a fee to which the ordinance applies will be based upon any revenue of a public utility other than its revenue from customers located within the jurisdiction of the city or county.
(b) The total amount of all fees the city or county imposes upon a public utility to which the ordinance applies will exceed:
(1) Except as otherwise provided in subparagraph (2), 5 percent of the utilitys gross revenue from customers located within the jurisdiction of the city or county.
(2) For a public utility that provides a commercial mobile radio service, 5 percent of its gross revenue from the first $15 charged monthly for each line of access for each of its customers located within the jurisdiction of the city or county. For the purposes of this subparagraph, commercial mobile radio service has the meaning ascribed to it in Part 20 of Title 47 of the Code of Federal Regulations.
κ1995 Statutes of Nevada, Page 2189 (CHAPTER 591, SB 568)κ
Sec. 9. If a city or county adopts an ordinance imposing or increasing a fee:
1. Each public utility to which the ordinance applies or which intends to derive revenue from customers located within the jurisdiction of the city or county shall, not later than 60 calendar days after the effective date of the ordinance or 30 calendar days before the public utility begins to provide electric energy, gas or a telecommunication service to those customers, whichever occurs later, provide to the city or county:
(a) An acknowledgment that the public utility is operating or intends to operate within the jurisdiction of that city or county; and
(b) The date when the public utility began or intends to begin to derive revenue from customers located within the jurisdiction of the city or county.
2. In addition to the requirements of subsection 1, each public utility to which the ordinance applies shall, not later than 30 calendar days after the end of each calendar quarter, provide to the city or county a statement of the amount of revenue the public utility derived during that calendar quarter from the sale of electric energy, gas or a telecommunication service to each of its customers located within the jurisdiction of that city or county.
Sec. 10. If a city or county adopts an ordinance imposing or increasing a fee:
1. The entire amount of any fee to which the ordinance applies must be imposed at the same rate upon each public utility that provides similar services within the jurisdiction of the city or county.
2. The city or county:
(a) Shall require the quarterly payment of all fees imposed upon each public utility to which the ordinance applies.
(b) May, to the extent it determines that it is impracticable to collect from a public utility to which the ordinance applies any of the fees it imposes upon the public utility, collect any of those fees directly from the customers of the public utility located within the jurisdiction of the city or county in proportion to the amount of revenue the public utility derives from each of those customers.
(c) May, except as otherwise provided in this paragraph, assess combined penalties and interest of not more than 2 percent per month of the delinquent amount of any fee to which the ordinance applies. If a city annexes any land, it may not assess any penalties or interest pursuant to this paragraph regarding any fee imposed for the operation of a public utility within the annexed land during any period:
(1) Before the effective date of the annexation; or
(2) More than 30 days before the city provides the public utility with notice of the annexation,
whichever occurs later.
3. A public utility to which the ordinance applies shall, except for any fees collected by the city or county pursuant to paragraph (b) of subsection 2, collect the aggregate of all its fees imposed by the city or county directly from its customers located within the jurisdiction of the city or county in proportion to the amount of revenue the public utility derives from each of those customers. The fees may be shown on a customers bill individually or collectively.
κ1995 Statutes of Nevada, Page 2190 (CHAPTER 591, SB 568)κ
Sec. 11. Except as otherwise provided by agreement with all the affected public utilities:
1. A city or county shall not change any of its fees except through the adoption of an ordinance which provides that the change does not become effective until at least 60 days after the effective date of the ordinance.
2. The cumulative amount of any increases in fees imposed by a city or county during any period of 24 months must not exceed 1 percent of the gross revenue of any public utility to which the increase applies from customers located within the jurisdiction of that city or county.
Sec. 12. NRS 354.5989 is hereby amended to read as follows:
354.5989 1. A local government shall not increase any fee for a business license or adopt a fee for a business license issued for revenue or regulation, or both, except as permitted by this section. This prohibition does not apply to fees:
(a) Imposed by hospitals, county airports, airport authorities, convention authorities, the Las Vegas Valley Water District or the Clark County Sanitation District;
(b) Imposed on public utilities for the privilege of doing business pursuant to a franchise;
(c) For business licenses which are calculated as a fraction or percentage of the gross revenue of the business; [or]
(d) Imposed pursuant to NRS 244.348, 268.0973, 268.821 or 269.182 [.] ; or
(e) Regulated pursuant to sections 2 to 11, inclusive, of this act.
2. The amount of revenue the local government derives or is allowed to derive, whichever is greater, from all fees for business licenses except those excluded by subsection 1, for the fiscal year ended on June 30, 1991, is the base from which the maximum allowable revenue from such fees must be calculated for the next subsequent year. To the base must be added the sum of the amounts respectively equal to the product of the base multiplied by the percentage increase in the population of the local government added to the percentage increase in the Consumer Price Index for the year ending on December 31 next preceding the year for which the limit is being calculated. The amount so determined becomes the base for computing the allowed increase for each subsequent year.
3. A local government may not increase any fee for a business license which is calculated as a fraction or percentage of the gross revenue of the business if its total revenues from such fees have increased during the preceding fiscal year by more than the increase in the Consumer Price Index during that preceding calendar year. The provisions of this subsection do not apply to a fee imposed pursuant to NRS 244.348, 268.0973, 268.821 or 269.182 [.] , or regulated pursuant to sections 2 to 11, inclusive, of this act.
4. A local government may submit an application to increase its revenue from fees for business licenses beyond the amount allowable under this section to the Nevada tax commission, which may grant the application only if it finds that:
(a) Emergency conditions exist which impair the ability of the local government to perform the basic functions for which it was created; or
κ1995 Statutes of Nevada, Page 2191 (CHAPTER 591, SB 568)κ
(b) The rate of a business license of the local government is substantially below that of other local governments in the state.
5. The provisions of this section apply to [any] a business license regardless of the fund to which the revenue from it is assigned. An ordinance or resolution enacted by a local government in violation of the provisions of this section is void.
6. As used in this section, fee for a business license does not include a tax imposed on the revenues from the rental of transient lodging.
Sec. 13. NRS 709.010 is hereby amended to read as follows:
709.010 1. Any person, company, corporation or association engaged in supplying electric light, heat or power to the inhabitants of any county or to the inhabitants of any town or city in any county in this state, [and] which filed its acceptance of the terms of the provisions of chapter 25, Statutes of Nevada 1901, with the county recorder of [such] the county, or which complied with the procedure authorized by chapter 190, Statutes of Nevada 1907, or which applied for and received a formal permit or franchise from the board of county commissioners of such county [prior to] before March 20, 1909, and has, since the filing of such an acceptance, or the receipt of such a franchise, or such compliance, been actually engaged in supplying electric light, heat or power to the inhabitants of any county or of any town or city therein [, shall have and there] is hereby granted [to such persons, company, association or corporation] the franchise, rights and privilege to supply electric light, heat and power to the inhabitants of [such] the county, and to the inhabitants of any town or city therein.
2. To carry out [such] that purpose, the right, privilege and franchise is hereby granted to [such] that person, association or corporation to construct and maintain poles and wires on the county roads and highways, and in the streets of [such] those cities and towns, together with all the necessary appurtenances, and to conduct electricity over [such] those wires and appurtenances to any part of the county, and to the towns and cities therein, for the purpose of furnishing electric heat, power and light, to the same extent as if the terms and provisions of NRS 709.010 to 709.040, inclusive, had originally been fully complied with.
3. No person [, company, corporation or association shall] may have the benefits of the provisions of NRS 709.010 to 709.040, inclusive, until there has been paid to such town, city or county 2 percent of the net profits made in furnishing or supplying such electric light, heat or power, since the filing of its acceptance of the terms and provisions of chapter 25, Statutes of Nevada 1901, or since [such] the permit or franchise was received from the board of county commissioners, or since [such] compliance with the procedure authorized by chapter 190, Statutes of Nevada 1907.
4. [Nothing in this section shall be so construed as to] This section does not enlarge the powers or [to] extend the term granted by any existing franchise.
5. Any person, company, association or corporation accepting the benefits of the provisions of NRS 709.010 to 709.040, inclusive, shall pay [annually] 2 percent of its net profits, made in furnishing such electric light, heat and power, to the county or counties in which [such] the person, company, association or corporation is engaged in business.
κ1995 Statutes of Nevada, Page 2192 (CHAPTER 591, SB 568)κ
6. NRS 709.010 to 709.040, inclusive, [shall not be held or construed to] do not relieve any such person, company, corporation, or association which has received a franchise from any board of county commissioners in this state [prior to] before March 20, 1909, from the full performance of the terms and conditions imposed by [such franchise;] the franchise, and compliance with the terms and provisions of NRS 709.010 to 709.040, inclusive, [shall be] is required in addition thereto.
Sec. 14. During the calendar year 1998, the executive director of the department of taxation shall convene a meeting of representatives of the Nevada Association of Counties, the Nevada League of Cities and providers of telecommunication services to discuss the desirability and feasibility of a statewide system for:
1. The collection of fees imposed by cities and counties upon providers of telecommunication services in this state; and
2. The distribution of the proceeds of those fees to the cities and counties imposing them.
Sec. 15. This act becomes effective upon passage and approval.
________
Senate Bill No. 576Committee on Finance
CHAPTER 592
AN ACT making appropriations to the trust fund for class-size reduction; and providing other matters properly relating thereto.
[Approved July 5, 1995]
whereas, The intended goal of the legislature is to achieve a pupil-teacher ratio of no more than 15 pupils per teacher or 30 pupils per two teachers in kindergarten and grades 1, 2 and 3 where core curriculum is taught; and
whereas, Available money is estimated to provide a sufficient number of teachers to achieve in each school district pupil-teacher ratios of 16 pupils per teacher in selected kindergarten classrooms in which pupils are most at risk of failure and in grades 1 and 2 in fiscal years 1995-96 and 1996-97 and to begin reducing the pupil-teacher ratio in third grade in fiscal year 1996-97; and
whereas, The legislature has specifically designed the laws relating to class-size reduction to allow the local school districts the necessary discretion to effectuate the reduction in the manner appropriate in their respective districts; and
whereas, School districts are encouraged, to the extent possible, to reduce the pupil-teacher ratio in each classroom in the district in the grades for which additional funding is provided; and
whereas, With this act, the legislature intends to continue the reduced pupil-teacher ratio for selected kindergarten classrooms in which pupils are most at risk of failure and for grades 1 and 2 throughout the state and to reduce the pupil-teacher ratio in grade 3 in fiscal year 1996-97; and
whereas, Thereafter, the intended goal of the legislature is to reduce the pupil-teacher ratio per class in grade 3 to no more than 15 pupils per class, thereafter to reduce the pupil-teacher ratio per class in grades 4, 5 and 6 to no more than 22 per class and thereafter to reduce the pupil-teacher ratio per class in grades 7 to 12, inclusive, to no more than 25 per class; now, therefore,
κ1995 Statutes of Nevada, Page 2193 (CHAPTER 592, SB 576)κ
thereafter to reduce the pupil-teacher ratio per class in grades 4, 5 and 6 to no more than 22 per class and thereafter to reduce the pupil-teacher ratio per class in grades 7 to 12, inclusive, to no more than 25 per class; now, therefore,
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Sec. 1. 1. There is hereby appropriated from the state general fund to the trust fund for class-size reduction created pursuant to NRS 388.730 for distribution by the superintendent of public instruction to the county school districts for fiscal year 1995-96 the sum of $27,725,925 which must be used to employ teachers in order to comply with the required ratio of pupils to teachers, as set forth in NRS 388.700, in grades 1 and 2 and in selected kindergartens with pupils who are considered at risk of failure by the superintendent of public instruction. Any remaining balance of the sum appropriated by this subsection must not be committed for expenditure after June 30, 1996, and must be deposited for credit to the trust fund for class-size reduction as soon as all payments of money committed have been made.
2. In addition to the amount appropriated by subsection 1, the superintendent of public instruction is hereby authorized to distribute for fiscal year 1995-96 from the trust fund for class-size reduction the sum of $15,850,928:
(a) Of which $130,680 must be transferred to the University and Community College System of Nevada to provide 45 scholarships at the University of Nevada, Las Vegas, and 45 scholarships at the University of Nevada, Reno, for qualified students pursuing degrees in teaching; and
(b) Of which $15,720,248 must be distributed to local school districts for use in employing teachers in order to comply with the required ratio of pupils to teachers in grades 1 and 2 and selected kindergartens, as set forth in NRS 388.700.
3. The amounts appropriated by subsection 1 and authorized by paragraph (b) of subsection 2 must be used to pay the salaries and benefits of no fewer than 1,080 teachers employed by school districts to meet the required pupil-teacher ratios in the 1995-96 school year.
4. Any remaining balance of the sums authorized for expenditure by paragraphs (a) and (b) of subsection 2 must not be committed for expenditure after June 30, 1996, and reverts to the trust fund for class-size reduction as soon as all payments of money committed have been made.
Sec. 2. 1. There is hereby appropriated from the state general fund to the trust fund for class-size reduction created pursuant to NRS 388.730 for distribution by the superintendent of public instruction to the county school districts for fiscal year 1996-97 the sum of $31,801,465 which must be used to employ teachers in order to comply with the required ratio of pupils to teachers, as set forth in NRS 388.700, in grades 1 and 2 and in selected kindergartens with pupils who are considered at risk of failure by the superintendent of public instruction. Any remaining balance of the sum appropriated by this subsection must not be committed for expenditure after June 30, 1997, and must be deposited for credit to the trust fund for class-size reduction as soon as all payments of money committed have been made.
κ1995 Statutes of Nevada, Page 2194 (CHAPTER 592, SB 576)κ
2. In addition to the amount appropriated by subsection 1, the superintendent of public instruction is hereby authorized to distribute for fiscal year 1996-97 from the trust fund for class-size reduction the sum of $16,734,269:
(a) Of which $130,680 must be transferred to the University and Community College System of Nevada to provide 45 scholarships at the University of Nevada, Las Vegas, and 45 scholarships at the University of Nevada, Reno, for qualified students pursuing degrees in teaching; and
(b) Of which $16,603,589 must be distributed to local school districts for use in employing teachers in order to comply with the required ratio of pupils to teachers in grades 1 and 2 and selected kindergartens, as set forth in NRS 388.700.
3. The amounts appropriated by subsection 1 and authorized by paragraph (b) of subsection 2 must be used to pay the salaries and benefits of no fewer than 1,147 teachers employed by school districts to meet the required pupil-teacher ratios in the 1996-97 school year.
4. Any remaining balance of the sums authorized for expenditure by paragraphs (a) and (b) of subsection 2 must not be committed for expenditure after June 30, 1997, and reverts to the trust fund for class-size reduction as soon as all payments of money committed have been made.
Sec. 3. 1. There is hereby appropriated from the state general fund to the trust fund for class-size reduction created pursuant to NRS 388.730 for distribution by the superintendent of public instruction to the county school districts for fiscal year 1996-97 the sum of $7,308,405 which must be used to employ no fewer than 195 teachers in order to reduce the ratio of pupils to teachers in third grade.
2. Except as otherwise provided in subsection 3, the amounts appropriated by subsection 1 must be used to pay the salaries and benefits of teachers employed by school districts to reduce the pupil-teacher ratio in third grade in the 1996-97 school year.
3. The board of trustees of a county school district:
(a) Shall file a plan with the superintendent of public instruction describing how the funds appropriated by subsection 1 will be used to reduce the ratio of pupils to teachers in grade 3; or
(b) May, after receiving approval from the superintendent of public instruction of the districts written plan, use funds appropriated by subsection 1 to carry out an alternative program for reducing the ratio of pupils per teacher or improving pupil achievement in grades 1, 2 and 3, providing the combined ratio of pupils per teacher in the aggregate of kindergarten and grades 1, 2 and 3 of a school district does not exceed the combined ratio of pupils per teacher in the aggregate of kindergarten and grades 1, 2 and 3 of the school district in school year 1994-95. The plan approved by the superintendent of public instruction must describe the method to be used by the school district to evaluate the effectiveness of the alternative program.
4. Any remaining balance of the sum appropriated by subsection 1 must not be committed for expenditure after June 30, 1997, and must be deposited for credit to the trust fund for class-size reduction as soon as all payments of money committed have been made.
Sec. 4. 1. The money authorized and appropriated for class-size reduction pursuant to sections 1, 2 and 3 of this act:
κ1995 Statutes of Nevada, Page 2195 (CHAPTER 592, SB 576)κ
(a) Must be used to meet, to the extent possible, pupil-teacher ratios required by NRS 388.700.
(b) May be applied first to pupils considered most at risk of failure.
(c) Must be accounted for separately from any other money received by the school districts of this state and used only to pay the salaries and benefits of teaching positions required to be added by this act.
(d) May not be used to settle or arbitrate disputes between a recognized organization representing employees of a school district and the school district, or to settle any negotiations.
(e) May not be used to adjust the district-wide schedules of salaries and benefits of the employees of a school district.
2. The money appropriated or authorized for class-size reduction pursuant to sections 1, 2 and 3 of this act may not be distributed to a school district whose plan for achieving the required ratio set forth in NRS 388.700 has not been received by the department of education.
Sec. 5. 1. This section and sections 1 and 4 of this act become effective on July 1, 1995.
2. Sections 2 and 3 of this act become effective on July 1, 1996.
________
Assembly Bill No. 377Assemblymen Carpenter, Sandoval, Schneider, Buckley, Fettic, Segerblom, Neighbors, Lambert, de Braga, Evans, Braunlin, Steel, Harrington and Nolan
CHAPTER 593
AN ACT relating to taxation; exempting certain charitable organizations from the responsibility of paying the business tax on behalf of persons who participate in a trade show or convention; and providing other matters properly relating thereto.
[Approved July 5, 1995]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 364A of NRS is hereby amended by adding thereto a new section to read as follows:
1. For the purposes of this chapter, an organization is created for religious, charitable or educational purposes if it complies with the provisions of this section.
2. An organization is created for religious purposes if:
(a) It complies with the requirements set forth in subsection 5; and
(b) The sole or primary purpose of the organization is the operation of a church, synagogue other place of religious worship at which nonprofit religious services and activities are regularly conducted. Such an organization includes, without limitation, an integrated auxiliary or affiliate of the organization, mens, womens or youth groups established by the organization, a school or mission society operated by the organization, an organization of local units of a church and a convention or association of churches.
κ1995 Statutes of Nevada, Page 2196 (CHAPTER 593, AB 377)κ
3. An organization is created for charitable purposes if:
(a) It complies with the requirements set forth in subsection 5;
(b) The sole or primary purpose of the organization is to:
(1) Advance a public purpose, donate or render gratuitously or at a reduced rate a substantial portion of its services to the persons who are the subjects of its charitable services, and benefit a substantial and indefinite class of persons who are the legitimate subjects of charity; or
(2) Provide services that are otherwise required to be provided by a local government, this state or the Federal Government; and
(c) The organization is operating in this state.
4. An organization is created for educational purposes if:
(a) It complies with the requirements set forth in subsection 5; and
(b) The sole or primary purpose of the organization is to:
(1) Provide athletic, cultural or social activities for children;
(2) Provide displays or performances of the visual or performing arts to members of the general public;
(3) Provide instruction and disseminate information on subjects beneficial to the community; or
(4) Operate a school, college or university located in this state that conducts regular classes and provides courses of study required for accreditation or licensing by the state board of education or the commission of postsecondary education, or for membership in the Northwest Association of Schools and Colleges.
5. In addition to the requirements set forth in subsection 2, 3 or 4, an organization is created for religious, charitable or educational purposes if:
(a) No part of the net earnings of any such organization inures to the benefit of a private shareholder, individual or entity;
(b) The business of the organization is not conducted for profit;
(c) No substantial part of the business of the organization is devoted to the advocacy of any political principle or the defeat or passage of any state or federal legislation;
(d) The organization does not participate or intervene in any political campaign on behalf of or in opposition to any candidate for public office; and
(e) Any property sold to the organization for which an exemption is claimed is used by the organization in this state in furtherance of the religious, charitable or educational purposes of the organization.
Sec. 2. NRS 364A.152 is hereby amended to read as follows:
364A.152 1. [A] Except as otherwise provided in subsection 2, a person or governmental entity that operates a facility at which one or more trade shows or conventions, or both, are held, is responsible for the payment of the taxes imposed by this chapter on behalf of the persons who do not have a business license issued pursuant to this chapter but who take part in the trade show or convention for a purpose related to the conduct of a business.
2. An organization that is created for religious, charitable or educational purposes is not responsible for the payment of taxes on behalf of other persons pursuant to subsection 1 if:
(a) It holds a current certificate of organization or is currently qualified by the secretary of state to do business in this state.
κ1995 Statutes of Nevada, Page 2197 (CHAPTER 593, AB 377)κ
(b) The trade show or convention is the first or second such event held at a facility operated by the organization during the calendar year;
(c) No more than two trade shows, conventions, or both, during that year will be held at a facility operated by the organization; and
(d) The organization notifies the department in writing, not less than 30 days before the date the trade show or convention begins, that it is not responsible for the payment of the taxes.
3. The taxes due pursuant to subsection 1 must be calculated, reported and paid separately from any taxes otherwise due from the operator of the facility pursuant to this chapter.
[3.] 4. The operator of the facility shall pay:
(a) An amount equal to the product of the total number of businesses taking part in the trade show or the convention multiplied by the number of days on which the trade show or convention is held, multiplied in turn by $1.25 for each trade show or convention that is held in the facility; or
(b) An annual fee of $5,000 to the department on or before July 1 for the fiscal year beginning on that day.
[4.] 5. If the operator of a facility at which a trade show or convention is held has not paid the fee provided in paragraph (b) of subsection [3,] 4, he shall file a return on a form prescribed by the department and remit the tax pursuant to paragraph (a) of subsection [3] 4 for each quarter in which a trade show or convention is held.
[5.] 6. The commission shall adopt such regulations as it deems necessary to carry out the provisions of this section.
Sec. 3. This act becomes effective on July 1, 1995.
________
Assembly Bill No. 386Assemblymen Evans, Dini, de Braga, Neighbors, Carpenter, Segerblom, Steel, Schneider, Tiffany, Ernaut, Sandoval, Manendo, Arberry, Freeman and Stroth
CHAPTER 594
AN ACT relating to economic development; providing for the confidentiality of certain documents submitted to organizations for economic development formed by cities or counties; and providing other matters properly relating thereto.
[Approved July 5, 1995]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 244 of NRS is hereby amended by adding thereto a new section to read as follows:
1. An organization for economic development formed by one or more counties shall, at the request of a client, keep confidential any record or other document in its possession concerning the initial contact with and research and planning for that client. If such a request is made, the executive head of the organization shall attach to the file containing the record or document a certificate signed by him stating that a request for confidentiality was made by the client and showing the date of the request.
κ1995 Statutes of Nevada, Page 2198 (CHAPTER 594, AB 386)κ
certificate signed by him stating that a request for confidentiality was made by the client and showing the date of the request.
2. Records and documents that are confidential pursuant to subsection 1 remain confidential until the client:
(a) Initiates any process regarding the location of his business in a county that formed the organization for economic development which is within the jurisdiction of a governmental entity other than the organization for economic development; or
(b) Decides to locate his business in a county that formed the organization for economic development.
Sec. 2. Chapter 268 of NRS is hereby amended by adding thereto a new section to read as follows:
1. An organization for economic development formed by one or more cities shall, at the request of a client, keep confidential any record or other document in its possession concerning the initial contact with and research and planning for that client. If such a request is made, the executive head of the organization shall attach to the file containing the record or document a certificate signed by him stating that a request for confidentiality was made by the client and showing the date of the request.
2. Records and documents that are confidential pursuant to subsection 1 remain confidential until the client:
(a) Initiates any process regarding the location of his business in a city that formed the organization for economic development which is within the jurisdiction of a governmental entity other than the organization for economic development; or
(b) Decides to locate his business in a city that formed the organization for economic development.
________
Assembly Bill No. 404Committee on Government Affairs
CHAPTER 595
AN ACT relating to public officers; authorizing a specialized or local ethics committee to require the filing of a statement of financial disclosure; revising the required contents of and the date on which annual statements of financial disclosure must be filed; and providing other matters properly relating thereto.
[Approved July 5, 1995]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 281.541 is hereby amended to read as follows:
281.541 1. Any department, board, commission or other agency of the state or the governing body of a county or an incorporated city may establish a specialized or local ethics committee to complement the functions of the commission. Such a committee may:
κ1995 Statutes of Nevada, Page 2199 (CHAPTER 595, AB 404)κ
(a) Establish a code of ethical standards suitable for the particular ethical problems encountered in its sphere of activity. The standards may not be less restrictive than the statutory ethical standards.
(b) Render an opinion upon the request of any public officer or employee of its own organization or level seeking an interpretation of its ethical standards on questions directly related to the propriety of his own future official conduct or refer the request to the commission. Any public officer or employee under such a committee shall direct his inquiry to that committee instead of the commission.
(c) Require the filing of statements of financial disclosure by public officers on forms prescribed by the committee or the city clerk if the form has been:
(1) Submitted, at least 60 days before its anticipated distribution, to the commission for review; and
(2) Upon review, approved by the commission.
2. Such a committee shall not attempt to interpret or render an opinion regarding the statutory ethical standards.
3. Each request submitted to a local ethics committee, each opinion rendered by a committee and any motion relating to the opinion is confidential unless:
(a) The public officer or employee acts in contravention of the opinion; or
(b) The requester discloses the content of the opinion.
Sec. 2. NRS 281.561 is hereby amended to read as follows:
281.561 Every candidate for public or judicial office and every public or judicial officer shall file with the commission, and with the officer with whom declarations of candidacy for his respective office are filed, a statement of financial disclosure, as follows:
1. A candidate for nomination, election or reelection shall file a statement of financial disclosure no later than the 10th day after the last day to qualify as a candidate for the office.
2. A public or judicial officer appointed to fill the unexpired term of an elected public or judicial officer shall file a statement of financial disclosure within 30 days after his appointment.
3. Every public or judicial officer, whether appointed or elected, shall file a statement of financial disclosure on or before March 31 of each year of the term, including the year the term expires . [, on or before the anniversary of his appointment or election to that office.]
4. A public or judicial officer who leaves office on a date other than the expiration of his term or anniversary of his appointment or election, shall file a statement of financial disclosure within 60 days after leaving office.
A statement filed pursuant to one of the subsections of this section may be used to satisfy the requirements of another subsection if the initial statement was filed within 3 months before the other statement is required to be filed. The public or judicial officer shall notify the commission in writing of his intention to use the previously filed statement to fulfill the present requirement. A person may satisfy the requirements of this section by filing with the commission a copy of a statement of financial disclosure which was filed pursuant to the requirements of a specialized or local ethics committee if the form of the statement as been approved by the commission.
κ1995 Statutes of Nevada, Page 2200 (CHAPTER 595, AB 404)κ
Sec. 3. NRS 281.571 is hereby amended to read as follows:
281.571 1. Statements of financial disclosure [must be made] , as approved pursuant to NRS 281.541 or in such form as the commission otherwise prescribes , [and] must contain the following information concerning the candidate or public or judicial officer:
(a) His length of residence in the State of Nevada and the district in which he is registered to vote.
(b) Each source of his income, or that of any member of his household. No listing of individual clients, customers or patients is required, but if that is the case, a general source such as professional services must be disclosed.
(c) A list of the specific location and particular use of any real estate, other than a personal residence:
(1) In which he or a member of his household has a legal or beneficial interest;
(2) Whose fair market value is $2,500 or more; and
(3) Which is located in this state or any adjacent state.
(d) The name of each creditor to whom he or a member of his household owes $5,000 or more, except for:
(1) A debt secured by a mortgage or deed of trust of real property which is not required to be listed under paragraph (c); and
(2) A debt for which a security interest in a motor vehicle for personal use was retained by the seller.
(e) A list of all gifts of $200 or more which the public or judicial officer or candidate received during the preceding taxable year, except:
(1) A gift received from a person who is related to the public or judicial officer or candidate within the third degree of consanguinity or affinity.
(2) Ceremonial gifts received for a birthday, wedding anniversary, holiday or other ceremonial occasion if the donor does not have a substantial interest in the legislative, administrative, judicial or political action of the public or judicial officer or candidate.
(f) A list of each business entity with which he or a member of his household is involved as a trustee, beneficiary of a trust, director, officer, owner in whole or in part, limited or general partner, or holder of any class of stock or security representing 1 percent or more of the total outstanding stock or securities issued by the business entity.
(g) A list of all public offices presently held by him for which this statement of financial disclosure is required.
2. The commission shall distribute or cause to be distributed any forms required for such a statement to each candidate and public or judicial officer who is required to file one. The commission is not responsible for the costs of producing or distributing a form for filing statements of financial disclosure which is prescribed pursuant to subsection 1 of NRS 281.541.
3. As used in this section:
(a) Business entity means any organization or enterprise operated for economic gain, including a proprietorship, partnership, firm, business, trust, joint venture, syndicate, corporation or association.