state of nevada · state of nevada frank woodbeck brian sandoval department of employment, training...

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STATE OF NEVADA

Department of Employment, Training and Rehabilitation

EMPLOYMENT SECURITY DIVISION

500 E. Third Street

Carson City, Nevada 89713-0001

AGENDA

ESD Hearing to Adopt Bond Regulation This meeting, conducted by the Administrator of the Employment Security Division, is a Hearing to review, discuss, solicit comment, and adopt a proposed regulation pertaining to Nevada Revised Statute, Chapter 612 pursuant to Nevada Revised Statute (NRS) 233B.061. The proposed regulation will establish the methodology for setting annual special bond contribution rates to employers as authorized by Senate Bill 515.

Name of Organization: Nevada Employment Security Division Date and Time of Meeting: Tuesday, August 27, 2013; 10:00 A.M.

Place of Meeting: Live Meeting: Video Conference To:

The Legislative Building The Grant Sawyer Building 401 S. Carson Street, Room 3137 555 E. Washington Ave, Room 4412E Carson City, Nevada 89701 Las Vegas, Nevada 89101

AGENDA

I. Call to Order and Welcome – Renee Olson, Administrator, Employment Security Division (ESD)

II. Public Comment - Chair may limit public comment to 5 minutes per speaker

III. Review of Bond Legislation (SB 515) – Renee Olson, Administrator, Employment Security Division (ESD)

IV. Hearing to adopt proposed regulation that will establish the methodology for setting annual special

bond contributions rates to employers as authorized by Senate Bill 515:

A. Explanation of Regulation – David Schmidt, Economist, Research and Analysis Bureau, DETR

B. Presentation of Small Business Impact Statement – David Schmidt, Economist, Research and Analysis Bureau, DETR

C. Miscellaneous Items – Renee Olson, Administrator, Employment Security Division (ESD)

V. Closing Public Comment - Chair may limit public comment to 5 minutes per speaker

VI. Adjournment

Employment Security Division

Frank Woodbeck Director

Renee Olson

Administrator

Brian Sandoval

Governor

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Meeting Agenda August 27, 2013

A Small Business Impact Statement and the proposed regulation are available to the public on DETR’s homepage: http://nvdetr.org.

Agenda items may be taken out of order. Two or more agenda items may be combined for consideration. An item may be removed or discussion on an item may be delayed at any time.

___________________________________________________________________________ Individuals wishing to comment in person may appear at either location of the meeting. Written comments are also welcome. For written comments to be considered at the meeting, they must be received by the Employment Security Division on or before August 20, 2013, at the following address:

Department of Employment, Training and Rehabilitation Employment Security Division 500 E. Third St., Carson City, NV 89713 Attn: Joyce Golden

___________________________________________________________________________

Note: We are pleased to make reasonable accommodations for members of the public who are disabled and wish to attend the meeting. If special arrangements are necessary, please notify the Employment Security Division in writing at 500 East Third Street, Carson City, Nevada 89713, or call Joyce Golden at (775) 684-3909, within 72 hours of meeting date and time.

This agenda of the Employment Security Division Meeting has been sent to all persons on the agency’s mailing list for administrative regulations and posted at the following locations: Nevada State Library & Archives, 100 North Stewart Street, Carson City, NV 89701 Legislative Building, 401 South Carson Street, Carson City, NV 89701 Grant Sawyer State Building, 555 E. Washington Ave., Las Vegas, NV 89101 Legislative Counsel Bureau Web Site Department of Employment, Training and Rehabilitation Web Site All County Libraries in Nevada Employment Security Division, State Administrative Office, 500 East Third Street, Carson City, NV 89713 Employment Security Division Southern Administrative Office, 2800 E. St. Louis Ave, Las Vegas, NV 89104 Unemployment Insurance Contributions, 1320 South Curry Street, Carson City, NV 89710 Reno Field Audit Office, 1325 Corporate Blvd, Suite B, Reno, NV 89502 Las Vegas Field Audit Office, 2800 E. St. Louis Ave, Las Vegas, NV 89104 Reno Appeals Office, 1325 Corporate Blvd, Suite C, Reno, NV 89502 Las Vegas Appeals Office, 2800 E. St. Louis Ave, Las Vegas, NV 89104 Reno Casual Labor Office, 420 Galletti Way, Sparks, NV 89431 Las Vegas Casual Labor Office, 1001 North A Street, Las Vegas, NV 89106 Nevada JobConnect-Carson City, 1929 North Carson Street, Carson City, NV 89701 Nevada JobConnect-Elko, 172 Sixth Street, Elko, NV 89801 Nevada JobConnect-Ely, 1500 Avenue F, Suite 1, Ely, NV 89301 Nevada JobConnect-Fallon, 121 Industrial Way, Fallon, NV 89406 Nevada JobConnect-Henderson, 119 Water Street, Henderson, NV 89015 Nevada JobConnect-Las Vegas, 3405 South Maryland Parkway, Las Vegas, NV 89169 Nevada JobConnect-North Las Vegas, 2827 Las Vegas Boulevard North, Las Vegas, NV 89030 Nevada JobConnect-Reno Town Mall, 4001 South Virginia Street, Suite H-1, Reno, NV 89502 Nevada JobConnect-Sparks, 1675 E. Prater Way, Suite 103 Sparks, NV 89434 Nevada JobConnect-Winnemucca, 475 Haskell St., Suite 1, Winnemucca, NV 89445

http://nvdetr.org/

STATE OF NEVADA


EMPLOYMENT SECURITY DIVISION

500 E. Third Street

Carson City, Nevada 89713-0001

NOTICE OF INTENT TO ACT UPON A REGULATION Notice of Hearing for the Adoption of a Regulation of the

Employment Security Division of the


The Employment Security Division of the Department of Employment, Training and

Rehabilitation (DETR) will hold a public hearing at 1100::0000 aa..mm., on Tuesday, August 27, 2013 at the

Legislative Building, 401 S. Carson Street, Room 3137, Carson City, Nevada 89701. The hearing will also be

videoconferenced to the Grant Sawyer Building, 555 E. Washington Ave, Room 4412E, Las Vegas, Nevada

89101.

This meeting will also be broadcast on the Internet at www.leg.state.nv.us

The purpose of the hearing is to receive comments from all interested persons regarding the adoption of

a regulation that pertains to Chapter 612 of the Nevada Administrative Code.

The following information is provided pursuant to the requirements of NRS 233B.0603:

1. Statement of need and purpose

The regulation is necessary to establish a dedicated revenue stream to support the potential

issuance of bonds pursuant to Senate Bill No. 515, chapter 450, Statutes of Nevada 2013.

2. How to obtain the revised text of regulation

A copy of the proposed regulation as revised by Legislative Counsel can be downloaded from

the Department of Employment, Training and Rehabilitation’s (DETR) website at

www.nvdetr.org. A request for a hard copy can be made in writing or in person at DETR’s State

Administrative Office located at 500 E. Third Street, Carson City, Nevada 89713, or telephone

Joyce Golden at (775) 684-3909.

3. Estimated Economic Effect

Beginning in 2009, it became necessary for the state to borrow funds from the US Treasury

under Title XII of the Social Security Act for the continued payment of regular unemployment

benefits. The proposed regulations will create new quarterly assessments, which will serve as

dedicated revenue streams to provide the security and means of repayment in the event that the

state issues bonds for the purpose of repaying the Title XII loan and/or reestablishing a reserve

within the state’s unemployment trust fund.

Frank Woodbeck Director

Renee Olson Administrator

Brian Sandoval

Governor

http://www.leg.state.nv.us/

http://www.nvdetr.org/

2

(a) Effect on businesses

If bonds are issued to repay the Title XII debt and to reestablish a reserve within the

state’s unemployment trust fund, it is the intent of the Employment Security Division to

lower the average unemployment contribution rate at the same time. By repaying the

Title XII loan, the credit Nevada employers receive toward federal unemployment taxes

will be fully restored, dropping the federal unemployment tax rate from 1.5% in 2013,

1.8% in 2014, and 2.1% in 2015 to 0.6% for the same period. The net effect of these

three factors – the new bond assessments created by this regulation, the lowering of the

average regular unemployment contribution rate, and the lowering of the effective federal

unemployment tax – will vary from business to business depending on the prior

experience of each business with respect to unemployment. The overall effect is

expected to reduce the total burden on employers by taking advantage of favorable

interest rates, and by providing increased stability and predictability of total costs over

the period in which these assessments will be in effect.

(b) Effect on the public

The immediate and long-term effect on the public is to restore the financial stability of

the state’s unemployment trust fund, ensuring the payment of unemployment benefits to

workers who are unemployed through no fault of their own. Unemployment benefits

enable unemployed persons to purchase necessary goods and services and put those

resources back into the local economy. It is estimated that every dollar in UI benefits

paid provides over $2 in value to the local economy.

4. Methods Used to Determine Impact on a Small Business

The proposed regulation is designed to be similar to the existing experience rating structure of

regular unemployment contributions. Experience rating is designed to ensure that employers are

fairly rated based on their unique experience with unemployment, regardless of size or industry

type. According to the records of the Division, approximately 43% of all taxable wages in the

state are paid by small businesses. A small business workshop is scheduled to be held on July

31, 2013 to solicit public comment.

5. Estimated cost

There are no additional costs involved in enforcing the proposed regulation, as existing processes

will be used to collect these funds in the same way as existing unemployment contributions, for

which funds for administration are provided by the U.S. Department of Labor.

6. Overlap or duplication of regulations

The proposed regulation establishes a new, dedicated revenue stream as the security and means

of repayment for the potential issuance of bonds. Therefore the regulation does not overlap or

duplicate any regulations of other state or local government agencies.

3

7. More stringent than federal regulations

The proposed regulation is not required pursuant to federal law, nor is there a federal regulation

that regulates the same activity.

8. New or increased fee

This regulation creates new quarterly assessments applied to employers subject to unemployment

contributions under NRS 612. In addition, the regulation creates a new assessment which may

be collected as needed from employers subject to unemployment contributions under NRS 612 if

there are insufficient funds collected during the year for the repayment of bond principal or

interest.

Persons wishing to comment on the proposed action of the Department of Employment, Training and

Rehabilitation, Employment Security Division, may appear at the scheduled public hearing or address

their comments, data, views or arguments in written form to the Employment Security Division, 500 E.

Third Street, Carson City, Nevada 89713. The Employment Security Division must receive all written

submissions on or before August 20, 2013. If no person who is directly affected by the proposed action

appears to request time to make an oral presentation, the Employment Security Division may proceed

immediately to action upon any written submissions.

A copy of this notice and the regulation to be adopted will be on file at the Nevada State Library and

Archives, 100 N. Stewart Street, Carson City, Nevada, for inspection by members of the public during

business hours. Additional copies of the notice and the regulation to be adopted will be available at the

Department of Employment, Training and Rehabilitation, Employment Security Division, 500 E. Third

Street, Carson City, Nevada 89713, and in all counties in which an office of the agency is not

maintained, at the main public library, for inspection and copying by members of the public during

business hours. This notice and the text of the proposed regulation are also available in the State of

Nevada Register of Administrative Regulations, which is prepared and published monthly by the

Legislative Counsel Bureau pursuant to NRS 233B.0653 and on the Internet at

http://www.leg.state.nv.us. Copies of this notice and the proposed regulation will also be mailed to

members of the public upon request. A reasonable fee may be charged for copies if it is deemed

necessary.

Upon adoption of any regulation, the agency, if requested to do so by an interested person, either before

adoption or within 30 days thereafter, will issue a concise statement of the principal reasons for and

against its adoption and incorporate therein its reason for overruling the consideration urged against its

adoption.

http://www.leg.state.nv.us/

4

This proposed regulation has been publicly noticed in accordance with Nevada’s open meeting law, public comment has been

solicited, and the regulation has been submitted to the Legislative Counsel Bureau for review, as outlined in NRS 233B.064,

cited below.

NRS 233B.064 Permanent regulation not to be adopted until text approved or revised by Legislative Counsel;

agency’s reasons for adoption. 1. An agency shall not adopt, amend or repeal a permanent regulation until it has received from the Legislative Counsel

the approved or revised text of the regulation in the form to be adopted. The agency shall immediately notify the Legislative

Counsel in writing of the date of adoption of each regulation adopted.

2. Upon adoption of any regulation, the agency, if requested to do so by an interested person, either before adoption or

within 30 days thereafter, shall issue a concise statement of the principal reasons for and against its adoption, and incorporate

therein its reason for overruling the consideration urged against its adoption.

This notice of hearing has been posted at the following locations:

Nevada State Library & Archives, 100 North Stewart Street, Carson City, NV 89701

Legislative Building, 401 South Carson Street, Carson City, NV 89701

Grant Sawyer State Building, 555 E. Washington Ave., Las Vegas, NV 89101

Legislative Counsel Bureau Web Site

Department of Employment, Training and Rehabilitation Web Site

All County Libraries in Nevada Employment Security Division, State Administrative Office, 500 East Third Street, Carson City, NV 89713

Employment Security Division Southern Administrative Office, 2800 E. St. Louis Ave, Las Vegas, NV 89104

Unemployment Insurance Contributions, 1320 South Curry Street, Carson City, NV 89710 Reno Field Audit Office, 1325 Corporate Blvd, Suite B, Reno, NV 89502

Las Vegas Field Audit Office, 2800 E. St. Louis Ave, Las Vegas, NV 89104

Reno Appeals Office, 1325 Corporate Blvd, Suite C, Reno, NV 89502 Las Vegas Appeals Office, 2800 E. St. Louis Ave, Las Vegas, NV 89104

Reno Casual Labor Office, 420 Galletti Way, Sparks, NV 89431

Las Vegas Casual Labor Office, 1001 North A Street, Las Vegas, NV 89106 Nevada JobConnect-Carson City, 1929 North Carson Street, Carson City, NV 89701

Nevada JobConnect-Elko, 172 Sixth Street, Elko, NV 89801

Nevada JobConnect-Ely, 1500 Avenue F, Suite 1, Ely, NV 89301 Nevada JobConnect-Fallon, 121 Industrial Way, Fallon, NV 89406

Nevada JobConnect-Henderson, 119 Water Street, Henderson, NV 89015 Nevada JobConnect-Las Vegas, 3405 South Maryland Parkway, Las Vegas, NV 89169

Nevada JobConnect-North Las Vegas, 2827 Las Vegas Boulevard North, Las Vegas, NV 89030

Nevada JobConnect-Reno Town Mall, 4001 South Virginia Street, Suite H-1, Reno, NV 89502 Nevada JobConnect-Sparks, 1675 E. Prater Way, Suite 103 Sparks, NV 89434

Nevada JobConnect-Winnemucca, 475 Haskell St., Suite 1, Winnemucca, NV 89445

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LCB Draft of Proposed Regulation R039-13

PROPOSED REGULATION OF THE ADMINISTRATOR OF

THE EMPLOYMENT SECURITY DIVISION OF THE

DEPARTMENT OF EMPLOYMENT, TRAINING

AND REHABILITATION

LCB File No. R039-13

July 25, 2013

EXPLANATION – Matter in italics is new; matter in brackets [omitted material] is material to be omitted.

AUTHORITY: §§1-9 and 11-17, NRS 612.220 and section 16 of Senate Bill No. 515, chapter

450, Statutes of Nevada 2013, at page 2648; §10, NRS 612.220 and sections 14

and 16 of Senate Bill No. 515, chapter 450, Statutes of Nevada 2013, at pp. 2646

and 2648.

A REGULATION relating to unemployment compensation; establishing requirements and

procedures relating to special bond contributions imposed upon certain employers to

pay for certain revenue bonds and other securities concerning unemployment

compensation; and providing other matters properly relating thereto.

Section 1. Chapter 612 of NAC is hereby amended by adding thereto the provisions set

forth as sections 2 to 17, inclusive, of this regulation.

Sec. 2. As used in sections 2 to 17, inclusive, of this regulation, unless the context

otherwise requires, the words and terms defined in sections 3 to 9, inclusive, of this regulation

have the meanings ascribed to them in those sections.

Sec. 3. “Baseline bond interest and expenses contribution rate” means the rate

established pursuant to section 13 of this regulation.

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Sec. 4. “Baseline bond principal contribution rate” means the rate established pursuant

to section 12 of this regulation.

Sec. 5. “Interest coverage ratio” means the rate of excess collection of money agreed to

by the State and the issuer of the bond to provide for the security of the payment of the bond

interest and other bond obligations other than the bond principal secured by the principal

coverage ratio.

Sec. 6. “Principal coverage ratio” means the rate of excess collection of money agreed to

by the State and the issuer of the bond to provide for the security of the payment of the bond

principal.

Sec. 7. “Reserve ratio” has the meaning ascribed to it in NRS 612.550.

Sec. 8. “Taxable wages” means wages as determined pursuant to NRS 612.545 which are

paid by employers who are required to pay special bond contributions pursuant to subsection 1

of section 16 of Senate Bill No. 515, chapter 450, Statutes of Nevada 2013, at page 2648.

Sec. 9. “Total bond principal” means that part of the bond principal which was issued to

repay federal advances pursuant to Title XII of the Social Security Act, 42 U.S.C. §§ 1321 et

seq., as amended, or to make deposits to or to establish adequate balances in this State’s

account in the Unemployment Trust Fund of the United States Treasury.

Sec. 10. 1. If the State Board of Finance issues bonds pursuant to section 12 of Senate

Bill No. 515, chapter 450, Statutes of Nevada 2013, at page 2645, for each calendar year in

which bond obligations and bond administrative expenses will be due, the State Treasurer

must, on or before August 1 of the immediately preceding year, or as soon as practicable

thereafter, notify the Administrator of the amount of bond obligations, the estimated amount

--3--


of bond administrative expenses and the other amounts described in subsection 3 of section 15

of Senate Bill No. 515, chapter 450, Statutes of Nevada 2013, at page 2647, to permit the

Administrator to determine the amount of special bond contributions required for the

applicable calendar year. If no such bond obligations exist for a calendar year, the

Administrator will not impose any special bond contributions.

2. After receiving the information described in subsection 1, the Administrator will

calculate the rates for the special bond contributions pursuant to sections 12 to 16, inclusive,

of this regulation. The Administrator will complete the calculations not later than September

15 of the year in which the information is due from the State Treasurer or 45 days after

receiving the information from the State Treasurer, whichever is later.

Sec. 11. 1. An employer who is required to pay special bond contributions pursuant to

subsection 1 of section 16 of Senate Bill No. 515, chapter 450, Statutes of Nevada 2013, at

page 2648 shall pay special bond contributions based upon the rates established pursuant to

sections 12 to 16, inclusive, of this regulation, and, if applicable, the rate established pursuant

to section 17 of this regulation.

2. If such an employer pays less than the total amount due pursuant to chapter 612 of

NRS and any regulations adopted pursuant thereto, including, without limitation, sections 2 to

17, inclusive, of this regulation, the Administrator will apply the money received from that

employer first to any special bond contributions for the bond interest and other bond

obligations as defined in section 13 of this regulation, then to any special bond contributions

for the total bond principal, and then to any other amounts owed pursuant to chapter 612 of

NRS and any regulations adopted pursuant thereto, as determined by the Administrator. As

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used in this subsection, “total amount due” includes, without limitation, the amount due from

the employer for contributions for unemployment compensation, principal payments for

special bond contributions, and interest payments for special bond contributions.

Sec. 12. To determine the baseline bond principal contribution rate, the Administrator

will:

1. Multiply the amount of the total bond principal that will be due during the 12-month

period beginning on May 1 of the immediately succeeding calendar year and ending on April

30 of the following calendar year by the principal coverage ratio specified in the trust

indenture or other instruments in connection with the bonds; and

2. Divide the result reached pursuant to subsection 1 by 95 percent of the total estimated

taxable wages for the immediately succeeding calendar year.

Sec. 13. 1. To determine the baseline bond interest and expenses contribution rate, the

Administrator will:

(a) Multiply the amount of the bond interest and other bond obligations that will be due

during the 12-month period beginning on May 1 of the immediately succeeding calendar year

and ending on April 30 of the following calendar year by the interest coverage ratio specified

in the trust indenture or other instruments in connection with the bonds;

(b) Subtract from the result reached pursuant to paragraph (a) the amount of any money

available to pay the bond interest and other bond obligations, less all known obligations

between the date of calculation and April 30 of the immediately succeeding calendar year

which relate to that money; and

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(c) Divide the result reached pursuant to paragraph (b) by 95 percent of the total estimated

taxable wages for the immediately succeeding calendar year.

2. As used in this section, “bond interest and other bond obligations” means the premium

and interest payable on a bond, together with any amount owed under a related credit

agreement or under any instrument or agreement related the bond. The term does not include

the total bond principal.

Sec. 14. 1. For the purposes of determining the special bond contributions due from

each employer who is required to pay special bond contributions pursuant to subsection 1 of

section 16 of Senate Bill No. 515, chapter 450, Statutes of Nevada 2013, at page 2648, the

Administrator will assign each such employer to one of four tiers.

2. Tier 1 consists of such employers who do not qualify for a contribution rate based on

experience pursuant to NRS 612.550.

3. Tier 2 consists of such employers who:

(a) Qualify for a contribution rate based on experience pursuant to NRS 612.550; and

(b) Have a reserve ratio of less than zero.


(a) Qualify for a contribution rate based on experience pursuant to NRS 612.550;

(b) Have a reserve ratio of equal to or greater than zero; and

(c) Have a reserve ratio of less than the threshold reserve ratio determined pursuant to

subsection 6.


(a) Qualify for a contribution rate based on experience pursuant to NRS 612.550;

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(b) Have a reserve ratio of equal to or greater than zero; and

(c) Have a reserve ratio of equal to or greater than the threshold reserve ratio determined

pursuant to subsection 6.

6. The threshold reserve ratio for Tier 4 is the lowest possible reserve ratio, rounded to the

nearest tenth of a percent, which, using the most recent 12 months of data available, results in

the qualification for Tier 4 of the employers who pay not more than 10 percent of all taxable

wages from employers with a reserve ratio greater than or equal to zero.

Sec. 15. 1. To determine the bond principal contribution rate for employers assigned to

Tier 1, the Administrator will multiply the baseline bond principal contribution rate by a factor

of 0.45, then round the result up to the nearest one-hundredth of a percent.

2. To determine the bond principal contribution rate for employers assigned to Tier 2, the

Administrator will multiply the baseline bond principal contribution rate by a factor of 1.40,

then round the result up to the nearest one-hundredth of a percent.


Administrator will multiply the baseline bond principal contribution rate by a factor of 0.25,

then round the result up to the nearest one-hundredth of a percent.


Administrator will:

(a) Determine the fraction of total taxable wages from employers who are not eligible for

experience rating by dividing the taxable wages from such employers by the total taxable

wages from all employers who are required to pay special bond contributions;

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(b) Determine the fraction of total taxable wages from employers who are eligible for

experience rating and who have a reserve ratio of less than zero by dividing the taxable wages

from such employers by the total taxable wages from all employers who are required to pay

special bond contributions;

(c) Determine the fraction of total taxable wages from employers who are eligible for

experience rating and who have a reserve ratio that is equal to or greater than the threshold

reserve ratio determined pursuant to subsection 6 of section 14 of this regulation by dividing

the taxable wages from such employers by the total taxable wages from all employers who are

required to pay special bond contributions;

(d) Determine the fraction of total taxable wages from employers who are eligible for

experience rating, who have a reserve ratio of equal to or greater than zero and who have a

reserve ratio that is less than the threshold reserve ratio determined pursuant to subsection 6

of section 14 of this regulation by subtracting the fractions calculated pursuant to paragraphs

(a), (b) and (c) from 1;

(e) Multiply the bond principal contribution rate determined pursuant to subsection 1 by

the fraction determined pursuant to paragraph (a);

(f) Multiply the bond principal contribution rate determined pursuant to subsection 2 by

the fraction determined pursuant to paragraph (b);

(g) Multiply the bond principal contribution rate determined pursuant to subsection 3 by

the fraction determined pursuant to paragraph (c);

(h) Subtract the results reached pursuant to paragraphs (e), (f) and (g) from the baseline

bond principal contribution rate; and

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(i) Divide the result reached pursuant to paragraph (h) by the fraction determined

pursuant to paragraph (d), then round up to the next one-hundredth of a percent.

Sec. 16. 1. To determine the bond interest and expenses contribution rate for employers

assigned to Tier 1, the Administrator will multiply the baseline bond interest and expenses

contribution rate by a factor of 0.45, then round the result up to the nearest one-hundredth of

a percent.

2. To determine the bond interest and expenses contribution rate for employers assigned

to Tier 2, the Administrator will multiply the baseline bond interest and expenses contribution

rate by a factor of 1.40, then round the result up to the nearest one-hundredth of a percent.


to Tier 4, the Administrator will multiply the baseline bond interest and expenses contribution

rate by a factor of 0.25, then round the result up to the nearest one-hundredth of a percent.


to Tier 3, the Administrator will:

(a) Determine the fraction of total taxable wages from employers who are not eligible for

experience rating by dividing the taxable wages from such employers by the total taxable

wages from all employers who are required to pay special bond contributions;

(b) Determine the fraction of total taxable wages from employers who are eligible for

experience rating and who have a reserve ratio of less than zero by dividing the taxable wages

from such employers by the total taxable wages from all employers who are required to pay

special bond contributions;

--9--


(c) Determine the fraction of total taxable wages from employers who are eligible for

experience rating and who have a reserve ratio that is equal to or greater than the threshold

reserve ratio determined pursuant to subsection 6 of section 14 of this regulation by dividing

the taxable wages from such employers by the total taxable wages from all employers who are

required to pay special bond contributions;

(d) Determine the fraction of total taxable wages from employers who are eligible for

experience rating, who have a reserve ratio of equal to or greater than zero and who have a

reserve ratio that is less than the threshold reserve ratio determined pursuant to subsection 6

of section 14 of this regulation by subtracting the fractions calculated pursuant to paragraphs

(a), (b) and (c) from 1;

(e) Multiply the bond interest and expenses contribution rate determined pursuant to

subsection 1 by the fraction determined pursuant to paragraph (a);

(f) Multiply the bond interest and expenses contribution rate determined pursuant to

subsection 2 by the fraction determined pursuant to paragraph (b);

(g) Multiply the bond interest and expenses contribution rate determined pursuant to

subsection 3 by the fraction determined pursuant to paragraph (c);

(h) Subtract the results reached pursuant to paragraphs (e), (f) and (g) from the baseline

bond interest and expenses contribution rate; and

(i) Divide the result reached pursuant to paragraph (h) by the fraction determined

pursuant to paragraph (d), then round up to the next one-hundredth of a percent.

Sec. 17. 1. If the State Board of Finance issues bonds pursuant to section 12 of Senate

Bill No. 515, chapter 450, Statutes of Nevada 2013, at page 2645, at least 90 days before each

--10--


payment for bond principal and interest is due, the Administrator will make the determination

required by subsection 4 of section 16 of Senate Bill No. 515, chapter 450, Statutes of Nevada

2013, at page 2648, and, if necessary, assess supplemental special bond contributions

sufficient to pay all applicable obligations through April 30 of the immediately succeeding

calendar year.

2. Employers will not receive experience credit for the supplemental special bond

contributions.

3. To determine the supplemental special bond contribution rate, the Administrator will

divide the amount needed to meet the obligations described in subsection 1 by 95 percent of the

total taxable wages for the most recent 12 months for which data are available.

4. To determine the supplemental special bond contribution charged to each employer

who is required to pay special bond contributions pursuant to subsection 1 of section 16 of

Senate Bill No. 515, chapter 450, Statutes of Nevada 2013, at page 2648, the Administrator

will multiply the supplemental special bond contribution rate described in subsection 3 by the

12-month total taxable wages for the employer for the most recent 12 months for which data

are available.

5. At least 30 days before the Administrator mails a bill to an employer for a supplemental

special bond contribution, the Administrator will provide notice to the employer concerning

the details of the supplemental special bond contribution.

6. The bill for a supplemental special bond contribution must include, without limitation,

the date on which payment is due. The Administrator will provide a due date that is not less

--11--


than 31 days after the date on which the bill is mailed and not more than 75 days after the date

on which the bill is mailed.

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