SB 377 — Revises provisions relating to workers' compensation. (BDR 53-1025)

EXEMPTSenate (ReprintedBill withNo. amendments adopted on June 3, 2019) SECOND REPRINT S.B.

377377–Senators SD. ENATE BILL NO .

377–SENATORSHarris D.and Ohrenschall CHAPTER..........

H ARRIS AND O HRENSCHALL M ARCH 20, 2019 ____________ Referred to Committee on Commerce and Labor SUMMARY—Revises provisions relating to workers’ compensation.

(BDR 53-1025) FISCAL NOTE:

Effect on Local Government:

May have Fiscal Impact.

Effect on the State:

Yes.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

LegislativeLegiExisting Counsel’slaw Digest:provides for an annual increase in compensation in the amount of 2.3 percent to claimants or dependents thereof who are entitled to compensation for permanent total disability under industrial insurance for an industrial injury or disablement from an occupational disease that occurs on or after January 1, 2004.

2.3(NRS percent616C.473) toExisting claimantslaw orprovides dependentsfor thereofa whosingle areannual entitledpayment to compensationclaimants fordisability permanentbut totalare disabilitynot underentitled industrialto insurancethe for2.3 anpercent industrialannual injuryincrease orin disablementthatt fromtotal ancompensation occupationalbecause diseasethe thatindustrial occursinjury on or afterdisablement occurred before January 1, 2004.

(NRS 616C.473)616C.453) Existing law provides forthat asuch single annual paymentpayments toare claimantspaid disabilityfrom butthe areUninsured notEmployers’ entitledClaim toAccount in the 2.3Fund percentfor annualWorkers’ increaseCompensation and Safety in thattthe totalState -Treasury, *SB377_R2*an –account 2which –is Januaryfunded 1,by 2004.assessments against insurers and certain employers who provide accident benefits for Existing law sets forth the uses of money and securities in the Fund for Workers’ Compensation and Safety.

(NRS 616C.453) Existing law provides that such annual payments are paid from the Uninsured Employers’ Claim Account in the Fund for Workers’ Compensation and Safety in the State Treasury, an account which is funded by assessments against insurers and certain employers who provide accident benefits for injured employees.

(NRS 616A.430) Existing law sets forth the uses of money and securities in the Fund for Workers’ Compensation and Safety.

(1) reimburse insurers and disabilityemployers tofor claimantspayments and dependents of claimantsan whoannual areincrease entitledin tocompensation suchotalfor compensationpermanent duetotal disability to anclaimants industrialand injurydependents orof disablementclaimants whichwho occurredare beforeentitled to such January 1, 2004, to the extent income realized on the investment of the assets in the Uninsured Employers’ Claim Account in the Fund is sufficient to pay that compensation;

increase- in80th compensationSession for(2019) permanent– total2 disability– toSection a2.5 claimantof this bill authorizes an insurer or dependentemployer who pays an annual who is entitled to such compensation due to an industrial injury or disablementdisablementent which occurred before January 1, 2004, to obtain reimbursement from the Administrator of the Division of Industrial Relations of the Department of Business and Industry and establishes the procedure for obtaining such a reimbursement.

If the income realized on the investment of the assets in that Account is insufficient to fund the annual increase in compensation, the remainder of the reimbursements are required to be paid from certain assessments levied oneron insurers and employers by the Administrator.

Existing law provides that the amount of compensation for certain industrial injuries or death is based, in part, on the average monthly wage of the injured or deceasedrequires employee.the Administrator of the Division of Industrial Relations of the Department of Business and Industry to provide by regulation for a method of determining average monthly wage.

(NRS 616C.440,616C.420) 616C.475,Section 616C.490,2.8 616C.505)of Existingthis lawbill requiresincorporates thein Administratorstatute ofcertain theprovisions Divisionfrom ofcurrent Industrialregulations Relationswhich ofcontain methods for determining the Departmentperiod of Businesswages andearned Industryby toan provideemployee bythat regulationmust forbe aused methodto ofcalculate determiningthe average monthly wage.

(NRS(NAC 616C.420)616C.435) Section 2.83 of this bill incorporatesprovides for a 2.3 percent annual increase in statutecompensation certainfor provisionspermanent fromtotal currentdisability regulationsto claimants and dependents of claimants who are entitled to such compensation due to an industrial injury or disablement which containoccurred methodsbefore forJanuary calculate1, the2004, averagewith monthlycompensation wage.to be increased on January 1, 2020, and on January 1 each year thereafter.

(NAC 616C.435)yee that must be used to Section 34 of this bill provides forthat aassessments 2.3against percentemployers annualwho increaseprovide inaccident compensationbenefits for permanentinjured totalemployees disabilitymay be used to claimantspay reimbursement to and dependents of claimants who are entitled to such compensation due to ananimants industrial injury or disablement which occurred before January 1, 2004, withto compensationthe toextent bethat increasedincome realized on Januarythe 1,investment 2020,of andthe onassets Januaryin 1the eachUninsured yearEmployers’ thereafter.Claim Account is insufficient to pay that reimbursement.

Section 45 of this bill providesrepeals thatprovisions assessmentswhich againstauthorize employersa whosingle provideannual accidentpayment benefitsto forclaimants injuredand employeestheir maydependents bewho usedare toentitled pay reimbursement to insurersreceive for the cost of the annual increase in compensation payablefor topermanent claimantstotal industrialdisability injurybut orare disablementnot whichentitled occurred before January 1, 2004, to the extent2.3 thatpercent incomeannual realizedincrease on the investment of the assets in the Uninsured Employers’ Claim Account is insufficient to pay that reimbursement.compensation.

Section 52 of this bill repealseliminates provisionsthe whichauthority authorizeof athe singleAdministrator annualof paymentthe toDivision claimantsof andIndustrial theirRelations dependentsof whothe areDepartment entitledof Business and Industry to receivemake -the *SB377_R2*annual –payments 3from –the compensationUninsured forEmployers’ permanentClaim totalAccount disabilityin butthe areFund notfor entitledWorkers’ toCompensation and Safety and, instead, authorizes the 2.3reimbursements percentauthorized annualby increasesection in2.5 thatto compensation.be paid from the Account.

Section- 280th ofSession this(2019) bill– eliminates3 the– authorityEXPLANATION Business– andMatter Industry to make the annual payments from the UninsuredDepartment of Employers’ Claim Account in thebolded Funditalics foris Workers’new; Compensation and Safety and, instead, authorizes the reimbursements authorized by section 2.5 to be paid from the Account.

THEmatter PEOPLEbetween OFbrackets THE[omitted STATEmaterial] OFis NEVADA,material REPRESENTEDto INbe SENATEomitted. AND ASSEMBLY, DO ENACT AS FOLLOWS:

THE SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:D IN Section 1.

(a) All salaries and other expenses in administering the Division of Industrial Relations, including the costs of the office and staff of the Administrator.

(f) That portion of the salaries and other expenses of the Office for Consumer Health Assistance of the Department of Health and Human Services established pursuant to NRS 232.458 that is related - *SB377_R2* – 4 – to providing assistance to consumers and injured employees concerning workers’ compensation.

- 80th Session (2019) – 4 – (g) For claimants and dependents of claimants who are entitled to receive compensation for a permanent total disability caused by an industrial injury or a disablement that occurred before January 1, 2004:

and (2) The salary and other expenses of administering the payment of the annual increase in the compensation pursuant to subsectionsub4. 2 of NRS 616C.473.

4.

There is hereby established in the State Treasury the Uninsured Employers’ Claim Account in the Fund for Workers’ Compensation and Safety, which may be used only for the purpose of making payments in accordance with the provisions of NRS 616C.220 [, 616C.453] and 617.401 [.] and subsection 2 of NRS 616C.473.

- *SB377_R2*80th Session (2019) – 5 – 5.

To establish the amount of the assessment, the Administrator shall determine the amount of money necessary to maintain an appropriate balance in the Account for each fiscal year and shall allocate a portion of that amount to be payable by private carriers, a portion to be payable by self-insured employers, a portion to be payable by associations of self-insured public or private employers and a portion to be payable by the employers who provide accident benefits pursuant to NRS 616C.265, based upon the expected annual expenditures for claims of each group of insurers.

(c) Associations of self-insured public or private employers that results in an equitable distribution of costs among the associations of self-insured public or private employers and is based upon exp(d) Employers who provide accident benefits pursuant to NRS 616C.265 that reflects the relative hazard of the employments covered by those employers, results in an equitable distribution of costs among the employers and is based upon expected annual expenditures for claims;claims.

and (d) Employers who provide accident benefits pursuant to NRS 616C.265 that reflects the relative hazard of the employments covered by those employers, results in an equitable distribution of costs among the employers and is based upon expected annual expenditures for claims.

- 80th Session (2019) – 6 – 7.

Any insurer who - *SB377_R2* – 6 – wishes to appeal the rate so filed must do so pursuant to NRS 679B.310.