NRS612.732. Transfer or acquisition of business to obtain lower contribution rate; activity of employer to obtain more favorable contribution rate; advising another person to violate provisions of chapter.

      1.  The Administrator shall adopt regulations establishing procedures to identify:

      (a) Transactions in which the transfer or acquisition of a business entity is for the sole or primary purpose of obtaining a lower unemployment insurance contribution rate; and

      (b) Common ownership, management or control between two or more business entities, including, without limitation, through the movement of workforce between such business entities.

      2.  If, for any rate year, the Administrator determines that an employer has, through deliberate ignorance, reckless disregard, intent to evade, fraud, misrepresentation or willful nondisclosure, obtained or attempted to obtain a more favorable rate of contribution, the Administrator shall assign to the employer the maximum contribution rate plus 2 percent for each applicable rate year, the current rate year and the subsequent rate year. In addition to any penalty imposed pursuant to NRS 612.730, the Administrator shall impose on the employer a civil penalty of the greater of:

      (a) Five thousand dollars; or

      (b) Ten percent of the total amount of any resulting underreporting of contributions and any other penalties and interest imposed.

      3.  If the Administrator determines that a person or business entity knowingly advised another person or business entity to violate or attempt to violate any provision of this chapter, in addition to any penalty imposed pursuant to NRS 612.730, the Administrator shall impose on such person or business entity a civil penalty of the greater of:

      (a) Five thousand dollars; or

      (b) Ten percent of the total amount of any resulting underreporting of contributions and any other penalties and interest imposed.

      4.  All money collected pursuant to the provisions of this section must be deposited in the Unemployment Compensation Fund.

      5.  The exemption provided for in paragraph (a) of subsection 4 of NRS 612.606 does not apply to an employer whose assigned contribution rate is 5.4 percent or higher pursuant to the provisions of subsection 2.

      6.  As used in this section:

      (a) “Business entity” means a partnership, corporation, association, limited-liability entity, Indian tribe or any other legal entity.

      (b) “Knowingly” means having actual knowledge of or acting with deliberate ignorance or reckless disregard of the law.

      (Added to NRS by 2005, 444)