mployer or association of self-insured public or private employers 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(a). Reports made after the date of injury may not be used for the calculation of compensation. 5. An employer shall notify his employees of the requirement to report income from tips to calculate his federal income tax and to include the income in the computation of benefits pursuant to chapters 616A to 616D, inclusive, and chapter 617 of NRS. 6. The Administrator shall adopt such regulations as are necessary to carry out the provisions of this section. (Added to NRS by 1985, 1443; A 1987, 598; 1991, 2411; 1993, 722, 1865; 1995, 531, 2026; 1999, 213, 1768; 2001, 2449) NRS 616B.228 Budgeting for premiums and payment of premiums by public employers. Every state office, department, board, commission, bureau, agency or institution, operating by authority of law, and each county, city, school district and other political subdivision of this State 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. (Added to NRS by 1999, 1764) SELF-INSURED EMPLOYERS NRS 616B.300 Qualification as self-insured employer: Establishment of financial ability to pay; deposit of security; evidence of excess insurance; account for self-insured employers. 1. An employer may qualify as a self-insured employer by establishing to the satisfaction of the Commissioner that the employer has sufficient administrative and financial resources to make certain the prompt payment of all compensation under chapters 616A to 616D, inclusive, or chapter 617 of NRS. 2. A self-insured employer must, in addition to establishing financial ability to pay, deposit with the Commissioner 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 payment of compensation for injuries and occupational diseases to employees. The bond must be in an amount reasonably sufficient to ensure payment of compensation, but in no event may it be less than 105 percent of the employer’s expected annual incurred cost of claims, or less than $100,000. In arriving at an amount for the expected annual cost of claims, due consideration must be given to the past and prospective experience of the employer with losses and expenses within this State, to the hazard of catastrophic loss, to other contingencies, and to trends within the State. In arriving at the amount of the deposit required, the Commissioner may consider the nature of the employer’s business, the financial ability of the employer to pay compensation and his probable continuity of operation. 3. In lieu of a bond the employer may deposit with the Commissioner 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 unavailable for withdrawal except upon order of the Commissioner. 4. The required deposit may be increased or decreased by the Commissioner in accordance with chapter 681B of NRS and his regulations for loss reserves in casualty insurance. If the Commissioner requires an employer to increase his deposit, the Commissioner may specify the form of the additional security. The employer shall comply with such a requirement within 60 days after receiving notice from the Commissioner. 5. The Commissioner shall require the self-insured employer to submit evidence of excess insurance to provide protection against a catastrophic loss. The excess insurance must be written by an insurer authorized to do business in this State. The Commissioner shall consider the excess insurance coverage as a basis for a reduction in the deposit required of an employer. 6. The Account for Self-Insured Employers is hereby created in the State Agency Fund for Bonds. All money received by the Commissioner pursuant to this section must be deposited with the State Treasurer to the credit of the Account for Self-Insured Employers. All claims against this Account must be paid as other claims against the State are paid. (Added to NRS by 1979, 1035; A 1981, 269, 1465; 1985, 582, 933; 1989, 1078; 1991, 1799; 1993, 2403)—(Substituted in revision for NRS 616.291) NRS 616B.303 Standard for insolvency. For the purposes of NRS 616B.306, 616B.309 and 616B.318, an employer is insolvent if his assets are less than his liabilities. (Added to NRS by 1985, 582)—(Substituted in revision for NRS 616.2915) NRS 616B.306 Commissioner may sell securities or institute proceedings on surety bonds of self-insured employer to pay claims. 1. If a self-insured employer becomes insolvent, institutes any voluntary proceeding under the Bankruptcy Act or is named in any involuntary proceeding thereunder, makes a general or special assignment for the benefit of creditors or fails to pay compensation under chapters 616A to 616D, inclusive, or chapter 617 of NRS after an order for payment of any claim becomes final, the Commissioner may, after giving at least 10 days’ notice to the employer and any insurer or guarantor, use money or interest on securities, sell securities or institute legal proceedings on surety bonds deposited or filed with the Commissioner to the extent necessary to make those payments. Until the Commissioner gives a 10-day notice pursuant to this subsection, the employer is entitled to all interest and dividends on bonds or securities on deposit and to exercise all voting rights, stock options and other similar incidents of ownership thereof. 2. A company providing a surety bond under NRS 616B.300 may terminate liability on its surety bond by giving the Commissioner and the employer 90 days’ written notice. The termination does not limit liability which was incurred under the surety bond before the termination. If the employer fails to requalify as a self-insured employer on or before the termination date, the employer’s certification is withdrawn when the termination becomes effective. (Added to NRS by 1979, 1036; A 1985, 583, 934)—(Substituted in revision for NRS 616.292) NRS 616B.309 Assessment of self-insured employers to provide for claims against insolvent employers; Account for Insolvent Self-Insured Employers. 1. The Commissioner may assess all self-insured employers to provide for claims against any insolvent self-insured employer. 2. All money received from such assessments must be deposited with the State Treasurer to the credit of the Account for Insolvent Self-Insured Employers, which is hereby created in the Fund for Workers’ Compensation and Safety. Money in the Account must be used solely to carry out the provisions of this section. All claims against the Account must be paid as other claims against the State are paid. The State Treasurer shall invest money in the account in the same manner and in the same securities in which he may invest money of the State General Fund. Income realized from the investment of the assets in the Account must be credited to the Account. (Added to NRS by 1985, 933; A 1991, 1800)—(Substituted in revision for NRS 616.2925) NRS 616B.312 Certificate of qualification as self-insured employer: Issuance by Commissioner; contents; effective date; period certificate is in effect. 1. Upon determining that an employer is qualified as a self-insured employer, the Commissioner shall issue a certificate to that effect to the employer and the Administrator. No certificate may be issued to any employer who, within the 2 years immediately preceding his application, has had his certification as a self-insured employer involuntarily withdrawn by the Commissioner

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