SB 317: Revises provisions relating to industrial insurance. (BDR 53-625) - Nevada

Reprint 3 → As Enrolled · 6 edits · Jun 10, 2025

MODERATE

This bill updates Nevada's industrial insurance laws to modernize administrative requirements, adjust premium calculations, and streamline audits. Key changes include allowing legal representatives to manage physical offices instead of just the main insurer, removing a fixed wage cap for premium calculations, and shifting audit responsibilities for employer associations from the state to the employers themselves.

Scope change

The bill expands the scope of who can legally maintain a physical office for insurance purposes to include legal representatives, and broadens the ability for self-insured employers to administer claims from outside the state if they have 30,000 or more employees.

REQUIREMENT

Changed the requirement for maintaining a physical office to allow a legal representative to operate or maintain it instead of requiring the insurer or administrator directly.

Removed the fixed $36,000 wage cap used to calculate insurance premiums for most employers, replacing it with a calculation based on the state's maximum average monthly wage.

Eliminated the requirement for third-party administrators to file an additional surety bond specifically for their duties to a particular association of self-insured employers.

ENFORCEMENT

Shifted the responsibility for auditing payroll and verifying employer classifications from the state Commissioner to the employer associations themselves.

ELIGIBILITY

Added eligibility for self-insured private employers and their associated entities to administer claims from outside the state if their total employee count reaches 30,000 or more.

TIMELINE

Added a specific deadline requiring employees to have incurred a subsequent disability by September 30, 2025, to qualify for compensation under the Subsequent Injury Account.

As Introduced → Reprint 1 · 6 edits

MODERATE

The bill was reprinted with amendments that significantly expanded its scope and altered financial thresholds. Key changes include new authority for the Administrator to conduct inspections with prior notice, replacing a fixed $36,000 wage cap with a dynamic calculation based on state employment data, and eliminating the requirement for third-party administrators to post additional surety bonds. Additionally, the bill removes the authority to collect assessments for the Subsequent Injury Account and sets a hard deadline of September 30, 2025, for claims against that account.

Scope change

The bill's scope expanded to include new inspection procedures, dynamic premium calculations, and regulatory changes regarding physician delegation and drug formularies, while reducing regulatory burdens on third-party administrators and self-insured employer associations.

ENFORCEMENT

Added authority for the Administrator to give notice before conducting inspections at insurer or third-party administrator offices.

FISCAL

Replaced the fixed $36,000 maximum wage cap used for premium calculations with a dynamic calculation based on the state's average monthly wage data.

Removed the authority for the Board to adopt regulations imposing assessments on the Subsequent Injury Account for Associations of Self-Insured Employers.

REQUIREMENT

Eliminated the requirement for third-party administrators to file an additional surety bond for specific associations of self-insured employers.

Required the Administrator to select a closed formulary for drugs prescribed for outpatient use by industrial insurers.

TIMELINE

Established a cutoff date of September 30, 2025, after which no claims can be made against the Subsequent Injury Account for subsequent disabilities.

Reprint 2 → Reprint 3 · 7 edits

MODERATE

This bill was reprinted with amendments adopted on May 31, 2025, updating the effective date and renumbering from Second Reprint to Third Reprint. The Legislative Counsel's Digest was significantly revised to clarify premium calculation rules, audit requirements, and administrative procedures for industrial insurance claims.

Scope change

The bill's scope was expanded to allow certain self-insured private employers with 30,000 or more employees to administer claims from outside the state, and premium calculations were modified to exclude the State of Nevada and its agencies from the new wage calculation method.

TIMELINE

Reprint date updated from May 27, 2025 to May 31, 2025, and version changed from Second Reprint to Third Reprint.

REQUIREMENT

Summary of bill provisions was reorganized to list administrative claims procedures before premium calculations, improving logical flow.

New provision allows self-insured private employers with 30,000+ employees to administer claims from locations outside Nevada.

New requirement for electronic copies of information and communication availability for private carriers or third-party administrators.

ELIGIBILITY

Premium calculation exemption now applies only to the State of Nevada and its agencies, with an option for them to elect the standard calculation method.

ENFORCEMENT

Audit requirements changed from Commissioner conducting annual audits to requiring associations to audit their own members' payroll annually.

FISCAL

Subsequent Injury Account provisions now include a September 30, 2025 deadline for disability claims to qualify for compensation.

Reprint 1 → Reprint 2 · 4 edits

MODERATE

This bill revision updates the reprinted version of SB 317 from the first to the second reprint, incorporating amendments adopted on May 27, 2025. The most significant substantive change is the addition of a requirement for insurers and third-party administrators to maintain a physical office in the state, along with allowing legal representatives to operate such offices. The legislative digest was also substantially rewritten to reflect these new requirements and other amendments.

Scope change

The bill now includes new requirements for insurers and third-party administrators to maintain a physical office in the state, which was not present in the first reprint.

REQUIREMENT

Added requirement for insurers or third-party administrators to operate or maintain a physical office in the state, with legal representatives authorized to do so.

Changed the formulary requirement from selecting a closed formulary to specifically adopting the Official Disability Guidelines (ODG) Drug Formulary published by MCG Health.

ELIGIBILITY

Updated the Legislative Counsel's Digest to reflect new office location requirements and revised the Subsequent Injury Account provisions, removing the authority to adopt regulations for assessments and setting a September 30, 2025 deadline for subsequent disability claims.

ENFORCEMENT

Added provision allowing injured employees to appeal when an insurer fails to provide reimbursement for drugs not on the approved formulary.

Revises provisions relating to industrial insurance. (BDR 53-625)

What changed between versions

How they voted

Actions timeline

Sponsors