Assembly
Bill No. 157–Assemblywoman Giunchigliani
(by request)
February 18, 2003
____________
Referred to Committee on Commerce and Labor
SUMMARY—Revises provisions relating to consolidated insurance programs. (BDR 53‑370)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State: No.
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EXPLANATION
– Matter in bolded italics is new; matter
between brackets [omitted material] is material to be omitted.
Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).
AN ACT relating to industrial insurance; defining the term “construction project” for the purpose of a consolidated insurance program; limiting the type of construction project that may be insured through a consolidated insurance program; prohibiting a consolidated insurance program from covering more than one construction project under certain circumstances; providing for construction projects that have more than one construction site; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
1-1 Section 1. Chapter 616B of NRS is hereby amended by adding
1-2 thereto the provisions set forth as sections 2 to 5, inclusive, of this
1-3 act:
1-4 Sec. 2. As used in NRS 616B.710 to 616B.737, inclusive, and
1-5 sections 2 to 5, inclusive, of this act, unless the context otherwise
1-6 requires, the words and terms defined in sections 3, 4 and 5 of this
1-7 act have the meanings ascribed to them in those sections.
1-8 Sec. 3. “Construction project” means a project to construct
1-9 or perform construction work on a fixed work or structure.
1-10 Sec. 4. “Fixed work” includes irrigation, drainage, water
1-11 supply, water power, flood control, harbors, railroads, highways,
2-1 tunnels, airports and airways, sewers and sewage disposal systems,
2-2 bridges, inland waterways, pipelines for transmission of petroleum
2-3 and other liquid or gaseous substances, refineries, chemical plants
2-4 and industrial plants requiring a specialized engineering
2-5 knowledge and skill, power plants, piers and foundations.
2-6 Sec. 5. “Structure” means a building or other structure
2-7 designed for the support, shelter and enclosure of persons,
2-8 animals, chattels or movable property of any kind, the
2-9 construction of which requires the use of more than two unrelated
2-10 building trades or crafts. The term does not include a residential
2-11 dwelling unit as defined in NRS 278.4977.
2-12 Sec. 6. NRS 616B.710 is hereby amended to read as follows:
2-13 616B.710 1. A private company, public entity or utility may:
2-14 (a) Establish and administer a consolidated insurance program to
2-15 provide industrial insurance coverage for employees of contractors
2-16 and subcontractors who are engaged in a construction project of
2-17 which the private company, public entity or utility is the owner or
2-18 principal contractor, if [the] :
2-19 (1) The estimated total cost of the construction project is
2-20 equal to or greater than the threshold amount established by the
2-21 Commissioner pursuant to subsection 3; or
2-22 (2) Pursuant to NRS 616B.717, the consolidated insurance
2-23 program may cover more than one construction project and the
2-24 combined total of the estimated total costs of all of the
2-25 construction projects covered by the consolidated insurance
2-26 program is equal to or greater than the threshold amount
2-27 established by the Commissioner pursuant to subsection 3.
2-28 (b) As a condition precedent to the award of a contract to
2-29 perform work on the construction project, require that contractors
2-30 and subcontractors who will be engaged in the construction of the
2-31 project participate in the consolidated insurance program.
2-32 2. If a private company, public entity or utility:
2-33 (a) Establishes and administers a consolidated insurance
2-34 program; and
2-35 (b) Pursuant to the contract for the construction of the project,
2-36 owes a periodic payment to a contractor or subcontractor whose
2-37 employees are covered under the consolidated insurance
2-38 program,
2-39 the private company, public entity or utility shall not withhold such
2-40 a periodic payment on the basis that the contractor or subcontractor
2-41 has not signed an employer’s report of industrial injury or
2-42 occupational disease as required pursuant to NRS 616C.045.
2-43 3. The Commissioner shall establish the threshold amount that
2-44 the estimated total cost of a construction project must be equal to or
2-45 greater than before a consolidated insurance program may be
3-1 established and administered for that project pursuant to this section.
3-2 The base amount for the threshold must initially be $150,000,000
3-3 and thereafter must be an amount equal to $150,000,000 as adjusted
3-4 by the Commissioner on June 30 of each year to reflect the present
3-5 value of that amount with respect to the construction cost index.
3-6 4. As used in this section:
3-7 (a) “Construction cost index” means the construction cost index
3-8 published by the Engineering News-Record as a measure of
3-9 inflation.
3-10 (b) “Estimated total cost” means the estimated cost to complete
3-11 all parts of a construction project, including, without limitation, the
3-12 cost of:
3-13 (1) Designing the construction project;
3-14 (2) [Acquiring the real property on which the project will be
3-15 constructed;] Constructing or performing the required
3-16 construction work on the fixed work or structure;
3-17 (3) Connecting the construction project to utilities; and
3-18 (4) Excavating and carrying out underground improvements
3-19 for the construction project . [; and
3-20 (5) Acquiring equipment and furnishings for the
3-21 project.]
3-22 The term does not include the cost of any fees or charges associated
3-23 with acquiring the money necessary to complete the construction
3-24 project[.] , the cost of acquiring any real property on which the
3-25 construction project will be located or the cost of acquiring
3-26 equipment or furnishings, that are not necessary for the
3-27 completion of the construction work, for the fixed work or
3-28 structure.
3-29 Sec. 7. NRS 616B.717 is hereby amended to read as follows:
3-30 616B.717 A consolidated insurance program may not cover
3-31 more than one construction project [.] unless:
3-32 1. Each construction project covered by the consolidated
3-33 insurance program:
3-34 (a) Is owned by the same private company, public entity or
3-35 utility;
3-36 (b) Has reasonably contiguous construction sites;
3-37 (c) Has construction sites that are reasonably contiguous to
3-38 the construction sites of the other construction projects covered by
3-39 the consolidated insurance program; and
3-40 (d) Complies with the provisions set forth in NRS 616B.725
3-41 and 616B.727 relating to safety and the administration of claims
3-42 for industrial insurance at each site of the construction project;
3-43 and
4-1 2. All construction projects covered by the consolidated
4-2 insurance program will be commenced and completed within the
4-3 same 3-year period.
4-4 Sec. 8. NRS 616B.720 is hereby amended to read as follows:
4-5 616B.720 A contract for the provision of industrial insurance
4-6 that is authorized pursuant to NRS 616B.712 must include, without
4-7 limitation:
4-8 1. Provisions that require compliance with each of the
4-9 requirements relating to safety and the administration of claims for
4-10 industrial insurance at the site of the construction project that are set
4-11 forth in NRS 616B.725 and 616B.727;
4-12 2. The names and qualifications of the persons appointed to
4-13 oversee issues of safety and the administration of claims for
4-14 industrial insurance at the site of the construction project pursuant to
4-15 NRS 616B.725 and 616B.727;
4-16 3. The terms and conditions pursuant to which the contract
4-17 provides industrial insurance coverage. The terms and conditions
4-18 must include, without limitation:
4-19 (a) A definition of the site of the construction project that:
4-20 (1) Delineates clearly the area within which coverage is
4-21 provided; and
4-22 (2) Is reasonably contiguous to the actual physical site of the
4-23 [construction project;] fixed work or structure being constructed or
4-24 the portion of the fixed work or structure upon which construction
4-25 work is being performed; and
4-26 (b) A description of the scope and details of the construction
4-27 project and the duration of industrial insurance coverage that is
4-28 provided for the project;
4-29 4. A list in which the owner, principal contractor, construction
4-30 manager, contractors and subcontractors of the construction project
4-31 are set forth as named insureds; and
4-32 5. A provision setting forth the penalties to which the owner,
4-33 principal contractor, construction manager, contractors and
4-34 subcontractors of the construction project may be subject if such
4-35 persons or entities fail to comply with the provisions relating to
4-36 safety and the administration of claims for industrial insurance that
4-37 are required pursuant to NRS 616B.725 and 616B.727.
4-38 Sec. 9. NRS 616B.720 is hereby amended to read as follows:
4-39 616B.720 A contract for the provision of industrial insurance
4-40 that is authorized pursuant to NRS 616B.712 must include, without
4-41 limitation:
4-42 1. Provisions that require compliance with each of the
4-43 requirements relating to safety and the administration of claims for
4-44 industrial insurance at [the] each site of the construction project that
4-45 are set forth in NRS 616B.725 and 616B.727;
5-1 2. The names and qualifications of the persons appointed to
5-2 oversee issues of safety and the administration of claims for
5-3 industrial insurance at [the] each site of the construction project
5-4 pursuant to NRS 616B.725 and 616B.727;
5-5 3. The terms and conditions pursuant to which the contract
5-6 provides industrial insurance coverage. The terms and conditions
5-7 must include, without limitation:
5-8 (a) A definition of [the] each site of the construction project
5-9 that:
5-10 (1) Delineates clearly the area within which coverage is
5-11 provided; and
5-12 (2) Is reasonably contiguous to the actual physical site of the
5-13 construction project [;] to which the definition applies; and
5-14 (b) A description of the scope and details of the construction
5-15 project and the duration of industrial insurance coverage that is
5-16 provided for the project;
5-17 4. A list in which the owner, principal contractor, construction
5-18 manager, contractors and subcontractors of the construction project
5-19 are set forth as named insureds; and
5-20 5. A provision setting forth the penalties to which the owner,
5-21 principal contractor, construction manager, contractors and
5-22 subcontractors of the construction project may be subject if such
5-23 persons or entities fail to comply with the provisions relating to
5-24 safety and the administration of claims for industrial insurance that
5-25 are required pursuant to NRS 616B.725 and 616B.727.
5-26 Sec. 10. NRS 616B.725 is hereby amended to read as follows:
5-27 616B.725 1. A consolidated insurance program that a private
5-28 company, public entity or utility is authorized to establish and
5-29 administer pursuant to NRS 616B.710 must, in the manner set forth
5-30 in this section, provide for the safety of an employee of a contractor
5-31 or subcontractor who is engaged in the construction project when
5-32 such an employee works at [the] a site of the construction project.
5-33 2. The owner or principal contractor of the construction project
5-34 shall develop and carry out a safety program that includes, without
5-35 limitation:
5-36 (a) The establishment of minimum standards of safety to be
5-37 observed during construction of the project;
5-38 (b) The holding of regular meetings to address and discuss
5-39 issues related to safety;
5-40 (c) Training of contractors and subcontractors regarding issues
5-41 and procedures related to safety;
5-42 (d) Regular inspections of [the] each site of the construction
5-43 project to identify potential safety hazards and ensure that minimum
5-44 standards of safety are being observed;
6-1 (e) The notification of contractors and subcontractors of special
6-2 hazards that exist at [the] each site of the construction project,
6-3 including advice on ways in which the contractors and
6-4 subcontractors can avoid those hazards; and
6-5 (f) The prompt investigation of any injuries that take place at
6-6 [the] a site of the construction project which result in death or
6-7 serious bodily injury.
6-8 3. The owner or principal contractor of the construction project
6-9 shall hire or contract with at least two persons to serve as the
6-10 primary and alternate coordinators for safety for the construction
6-11 project [.] and shall designate one of the persons as the primary
6-12 coordinator. The primary and alternate coordinators for safety must:
6-13 (a) Possess credentials in the field of safety that the
6-14 Administrator determines to be adequate to prepare a person to act
6-15 as a coordinator for safety for a construction project, including,
6-16 without limitation, credentials issued by the:
6-17 (1) Board of Certified Safety Professionals; or
6-18 (2) Insurance Institute of America; or
6-19 (b) Have at least 3 years of experience in overseeing matters of
6-20 occupational safety and health in the field of construction that the
6-21 Administrator determines to be adequate to prepare a person to act
6-22 as a coordinator for safety for a construction project.
6-23 4. The primary and alternate coordinators for safety for the
6-24 construction project:
6-25 (a) Must not serve as coordinators for safety for another
6-26 construction project that is covered by a different consolidated
6-27 insurance program;
6-28 (b) Shall oversee and enforce the safety program established
6-29 pursuant to subsection 2, including, without limitation, resolving
6-30 problems related to the operation of the safety program; and
6-31 (c) Shall ensure that the contractors, employers and
6-32 subcontractors who are engaged in the construction of the project
6-33 coordinate their efforts regarding issues of occupational safety and
6-34 health to create and maintain a safe and healthful workplace.
6-35 5. [The] Each alternate coordinator for safety at a site of the
6-36 construction project shall report to the primary coordinator for
6-37 safety regarding activities that take place at [the] that site of the
6-38 construction project when the primary coordinator is absent.
6-39 6. The owner or principal contractor of the construction project
6-40 shall ensure that [the primary or alternate] a coordinator for safety
6-41 for the construction project is physically present at [the] each site of
6-42 the construction project whenever activity related to construction is
6-43 taking place at [the] that site.
7-1 Sec. 11. NRS 616B.727 is hereby amended to read as follows:
7-2 616B.727 1. A consolidated insurance program that a private
7-3 company, public entity or utility is authorized to establish and
7-4 administer pursuant to NRS 616B.710 must, in the manner set forth
7-5 in this section, provide for the administration of claims for industrial
7-6 insurance for an employee of a contractor or subcontractor who is
7-7 engaged in the construction project when such an employee works
7-8 at [the] a site of the construction project.
7-9 2. The owner or principal contractor of the construction project
7-10 shall hire or contract with a person to serve as the administrator of
7-11 claims for industrial insurance for the construction project. Such a
7-12 person must not serve as an administrator of claims for industrial
7-13 insurance for another construction project that is covered by a
7-14 different consolidated insurance program.
7-15 3. The administrator of claims for industrial insurance for the
7-16 construction project who is hired or with whom the owner or
7-17 principal contractor contracts pursuant to subsection 2 shall:
7-18 (a) Assist an employee who is covered under the consolidated
7-19 insurance program or, in the event of the employee’s death, one of
7-20 his dependents, in filing a written notice of injury or death as
7-21 required pursuant to NRS 616C.015 or a written notice of an
7-22 occupational disease as required pursuant to NRS 617.342;
7-23 (b) Sign and file on behalf of a contractor or subcontractor
7-24 whose employees are covered under the consolidated insurance
7-25 program an employer’s report of industrial injury or occupational
7-26 disease as required pursuant to NRS 616C.045 or 617.354;
7-27 (c) Ensure that an employee who is covered under the
7-28 consolidated insurance program and who has been injured or who
7-29 has incurred an occupational disease while working on the
7-30 construction project is directed to a medical facility that will provide
7-31 treatment to the employee under the program;
7-32 (d) Handle all issues, to the extent reasonably practicable,
7-33 relating to claims for industrial insurance at [the] a site of the
7-34 construction project; and
7-35 (e) Hire or contract such assistant administrators as may be
7-36 necessary to carry out his responsibilities pursuant to this section.
7-37 4. The owner or principal contractor of the construction project
7-38 shall ensure that the administrator of claims for industrial insurance
7-39 for the construction project or an assistant administrator is
7-40 physically present at [the] each site of the construction project
7-41 whenever activity related to construction is taking place at [the] that
7-42 site.
7-43 Sec. 12. NRS 616B.730 is hereby amended to read as follows:
7-44 616B.730 1. A consolidated insurance program must not
7-45 provide industrial insurance coverage, a comprehensive program of
8-1 safety or for the administration of claims for industrial insurance for
8-2 an employee of a contractor or subcontractor who is engaged in the
8-3 construction of the project that is covered by the consolidated
8-4 insurance program at any time that such an employee does not work
8-5 at [the] a site of the construction project.
8-6 2. A contractor or subcontractor who is engaged in the
8-7 construction of a project that is covered by a consolidated insurance
8-8 program shall maintain separate industrial insurance coverage for its
8-9 employees who:
8-10 (a) Are not assigned to participate in the construction of the
8-11 project; or
8-12 (b) Are assigned to participate in the construction of the project
8-13 but who do not work exclusively at [the site] one or more sites of
8-14 the project.
8-15 3. The owner or principal contractor of a construction project
8-16 shall reimburse a contractor or subcontractor who bids successfully
8-17 on the construction project for the cost of providing separate
8-18 industrial insurance coverage for an employee if:
8-19 (a) The contractor or subcontractor set the amount of his bid in a
8-20 reasonable, good faith belief that the employee would work
8-21 exclusively at [the site] one or more sites of the construction project
8-22 and would therefore be fully covered by the consolidated insurance
8-23 program; and
8-24 (b) Because of changed circumstances not reasonably
8-25 foreseeable at the time the bid was submitted, the employee worked
8-26 in whole or in part at a location other than [the] a site of the
8-27 construction project, requiring the contractor or subcontractor to
8-28 obtain separate industrial insurance coverage for that employee.
8-29 Sec. 13. NRS 616B.735 is hereby amended to read as follows:
8-30 616B.735 With respect to a construction project for which the
8-31 owner intends to establish and administer an owner-controlled
8-32 insurance program or the principal contractor intends to establish
8-33 and administer a contractor-controlled insurance program, the owner
8-34 or principal contractor, as appropriate, shall:
8-35 1. In the notice or advertisement for bids for the construction of
8-36 the project, state:
8-37 (a) That the employees of contractors and subcontractors who
8-38 are engaged in the construction of the project will be covered under
8-39 a consolidated insurance program when such employees work at
8-40 [the] a site of the project; and
8-41 (b) Whether such a program will be an owner-controlled
8-42 insurance program or a contractor-controlled insurance program;
8-43 and
9-1 2. Hold a pre-bid conference at which it provides to potential
9-2 contractors and subcontractors, without limitation, the following
9-3 information:
9-4 (a) A general explanation of the manner in which a consolidated
9-5 insurance program operates;
9-6 (b) An overview of the provisions of NRS 616B.710 to
9-7 616B.737, inclusive;
9-8 (c) A general description of the safety procedures that will be
9-9 required as part of the consolidated insurance program; and
9-10 (d) The procedures pursuant to which claims for industrial
9-11 insurance will be administered.
9-12 Sec. 14. This act becomes effective on July 1, 2003.
9-13 H