SB 258 — Revises provisions relating to industrial insurance. (BDR 53-594)

(ReprintedSenate withBill amendmentsNo. adopted on April 21, 2025) FIRST REPRINT S.B.

258258–Senators SENATENguyen, BILLCannizzaro, NO.Stone, Titus, Buck;

258–SENATORSCruz-Crawford, NDaly, GUYENDoñate, ,Dondero CANNIZZAROLoop, ,Ellison, TONEKrasner, ,Lange, TOhrenschall, ITU,Pazina, BUCKRogich, ;Scheible, Steinbeck and Taylor Joint Sponsors:

CRUZAssemblymembers -CRAWFORDNguyen, ,Yurek, DHafen, ALY,Marzola, DTorres-Fossett; OÑATE , D ONDERO LOOP, ELLISON, K RASNER , LANGE , O HRENSCHALL , PAZINA , ROGICH , CHEIBLE , STEINBECK AND T AYLOR FEBRUARY 27, 2025 ____________ JOINT SPONSORS :

ASSEMBLYMEMBERSAnderson, NGUYENCarter, ,Cole, YUREK,Dalia, HAFENEdgeworth, ,González, MGray, ARZOLAGurr, ,Hardy, TORRESJackson, -OSSETTJauregui, ;Karris, Kasama, Koenig, Monroe-Moreno, Moore, O’Neill, Orentlicher, Roth, Watts and Yeager CHAPTER..........

ANDERSON , CARTER , COLE, D ALIA, EDGEWORTH , GONZÁLEZ , GRAY , GURR , HARDY , JACKSON , AUREGUI , KARRIS, KASAMA , KOENIG , M ONROE -M ORENO , M OORE, O’N EILL, O RENTLICHER , R OTH, WATTS AND Y EAGER ____________ Referred to Committee on Commerce and Labor SUMMARY—Revises provisions relating to industrial insurance.

(BDR 53-594) 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.

Existing law provides for the payment of compensation under industrial insurance if, during the course of employment, an employee is injured or killed by a workplace accident or occupational disease.

(Chapters 616A-617 of NRS) Existing by a law defines the term “compensation” to mean the money which is payable to an employee or to the dependents of the employee as provided in existing law an governing industrial insurance, including benefits for funerals, accident benefits or medical benefits and money for rehabilitative services.

(NRS 616A.090, 617.050) If the injury of an injured employee was caused under circumstances creating legal liability in a person other than the employer or a person in the same employ, existing law authorizes an injured employee or the dependents of the employee, under certain circumstances, to take proceedings to recover damages from that third - *SB258_R1* – 2 – party.

Existing law also authorizes the industrial insurer or Administrator,Administrator of the Division of Industrial Relations of the Department of Business and Industry, under certain circumstances, to recover damages from that third party.

Additionally, under existing law, the industrial insurer or Administrator has a lien against the total proceeds of any recovery by the injured employee or the dependents of the employeeemployee. or the dependents of the employee are entitled, including any futureed compensation, to be reduced by the amount of damages or proceeds recovered.

(NRSExisting 616C.215)law Thisrequires billthe providesamount thatof compensation to which the maximuminjured amountemployee thator the industrialdependents insurerof orthe Administratoremployee mayare recoverentitled, forincluding suchany afuture lien(NRS must616C.215)to be reduced by the lesseramount of:of damages or proceeds recovered.

(1)This bill provides that the fullmaximum amount ofthat the lien;industrial insurer or Administrator may recover for such a lien must be the lesser of:

or(1) (2) one-third of the total amount of any recovery, inclusive of any attExcept where the fulllien, amountminus of the lien may be recovered, this bill requires the lien amount to be reduced by an amount equal to one-half of the reasonable expensescosts incurred by the injured employee or the dependents of the employee in procuring the recovery,recovery; which must be verified by a certified public accountant and is subject to judicial review under certain circumstances.

Thisor bill(2) alsoone-third limitsof the total amount of any offsetrecovery, toinclusive of any attorney’s fees or costs and the monetary value of any other property which is recovered, minus an amount equal to one-half of futurethe compensationreasonable receivedcosts incurred by the injured employee or aretThis notbill accidentrequires benefits;an itemized memorandum of any such reasonable costs incurred by the injured employee or the dependents of the employee in procuring the recovery to be verified by the injured employee, the dependents of the employee or the attorney or representative of the injured employee or the dependents of the employee, provided to the industrial insurer or Administrator and subject to judicial review under certain circumstances.

andThis (2)bill aalso reductionlimits inany each- such83rd paymentSession which(2025) does– not2 exceed– one-thirddependents of the amountemployee ofto: the payment until the total amount of all such reductions equals the total amount recovered, less any applicable reductions.

(1) an offset against payments of compensation that are not accident benefits;

and (2) a reduction in each such payment which does not exceed one-third of the amount of the payment until the total amount of all such reductions equals the net amount recovered by the injured employee or dependents of the employee.

EXPLANATION – Matter in bolded italics is new;

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

(a) The amount of compensation the injured employee or the dependents of the employee are entitled to receive pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS,amount includingpaid anyby futurethe compensation,employer.mpensation, must be reduced by the (b) The insurer, or in the case of claims involving the Uninsured Employers’ Claim Account or a subsequent injury account the Administrator, has a lien upon the total amount paid by the employer.employer if the injured employee or the dependents of the employee receive compensation pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS.

(b) TheThis insurer,subsection oris inapplicable thewhether case of claims involving the Uninsuredmoney Employers’ Claim Account or a subsequent injury account the Administrator, has a lien upon the total amount paid byto the employer if the injured employee or the dependents of the employee receiveby compensation pursuant to the provisionsemployer ofis chaptersclassified 616Aas toa 616D,gift, inclusive,a settlement or chapterotherwise. 617 of NRS.

 This subsection is applicable whether the money paid to the employee or the dependents of the employee by the employer is - *SB258_R1* – 3 – classified as a gift, a settlement or otherwise.

(a)- The83rd injuredSession employee,(2025) or– in3 case– of death the dependents of the employee, may take proceedings against that person to recoverrecoverf damages, but the amount of the compensation the injured employee or the dependents of the employee are entitled to receive pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS, including any future compensation, must be reduced by the amount of the damages recovered, notwithstanding any act or omission of the employer or a person in the same employ which was a direct or proximate cause of the employee’s injury.

3.compensation is payable pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS and which was caused under circumstances entitling the employee, or in the case of death the dependents of the employee, to receive proceeds under his or her employer’s policy of uninsured or underinsured vehicle coverage:

When an injured employee incurs an injury for which compensation is payable pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS and which was caused under circumstances entitling the employee, or in the case of death the dependents of the employee, to receive proceeds under his or her employer’s policy of uninsured or underinsured vehicle coverage:

(b) If an injured employee, or in the case of death the dependents of the employee, receive compensation pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS, the insurer, or in the case of claims involving the Uninsured Employers’ Claim Account or a subsequent injury account the - *SB258_R1* – 4 – Administrator, is subrogated to the rights of the injured employee or the dependents of the employee to recover proceeds under the employer’s policy of uninsured or underinsured vehicle coverage.

(c)- Any83rd provisionSession in(2025) the– employer’s4 policy– of uninsured or underinsured vehicle coverage which has the effect of:of:ured or (1) Limiting the rights of the injured employee or the dependents of the employee to recover proceeds under the policy because of the receipt of any compensation pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS;

(1) Limiting the rights of the injured employee or the dependents of the employee to recover proceeds under the policy because of the receipt of any compensation pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS;

In any action or proceedings taken by the insurer or the Administrator pursuant to this section, evidence of the amount of compensation, accident benefits and other expenditures which the insurer, the Uninsured Employers’ Claim Account or a subsequent injury account have paid or become obligated to pay by reason of theIf in such action or proceedings the injuryinsurer or deaththe ofAdministrator recovers more than those amounts, the excess must be paid to the injured employee isor admissible.the dependents of the employee.

If in such action or proceedings the insurer or the Administrator recovers more than those amounts, the excess must be paid to the injured employee or the dependents of the employee.

[The] Except as otherwise provided in subsection 7, the lien provided for pursuant to subsection 1 or 5 includes the total compensation expenditure incurred by the insurer, the Uninsured Employers’ Claim Account or a subsequent injury account for the injured employee and the dependents of the employee.

- *SB258_R1* – 5 – (a) The maximum amount which the insurer or Administrator may recover must be the lesser of: