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).

1-1 Section 1. Chapter 616A of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 2, 3 and 4 of this act.

1-3 Sec. 2. "Consolidated insurance program" means a program of

1-4 insurance that provides:

1-5 1. Industrial insurance coverage;

1-6 2. A comprehensive program of safety; and

2-1 3. For the administration of claims for industrial insurance,

2-2 for each employee of a contractor or subcontractor who is engaged in a

2-3 construction project when such an employee works at the site of the

2-4 construction project.

2-5 Sec. 3. "Contractor-controlled insurance program" means a

2-6 consolidated insurance program that is established and administered by

2-7 the principal contractor of the construction project.

2-8 Sec. 4. "Owner-controlled insurance program" means a

2-9 consolidated insurance program that is established and administered by

2-10 the owner of the construction project.

2-11 Sec. 5. NRS 616A.020 is hereby amended to read as follows:

2-12 616A.020 1. The rights and remedies provided in chapters 616A to

2-43 the laws of any other state or jurisdiction.

3-1 Sec. 6. NRS 616A.025 is hereby amended to read as follows:

3-2 616A.025 As used in chapters 616A to 616D, inclusive, of NRS,

3-5 the meanings ascribed to them in those sections.

3-6 Sec. 7. Chapter 616B of NRS is hereby amended by adding thereto the

3-7 provisions set forth as sections 8 to 19, inclusive, of this act.

3-8 Sec. 8. 1. A private company, public entity or utility may:

3-9 (a) Establish and administer a consolidated insurance program to

3-10 provide industrial insurance coverage for employees of contractors and

3-11 subcontractors who are engaged in a construction project of which the

3-12 private company, public entity or utility is the owner or principal

3-13 contractor; and

3-14 (b) As a condition precedent to the award of a contract to perform

3-15 work on the construction project, require that contractors and

3-16 subcontractors who will be engaged in the construction of the project

3-17 participate in the consolidated insurance program.

3-18 2. If a private company, public entity or utility:

3-19 (a) Establishes and administers a consolidated insurance program;

3-20 and

3-21 (b) Pursuant to the contract for the construction of the project, owes a

3-22 periodic payment to a contractor or subcontractor whose employees are

3-23 covered under the consolidated insurance program,

3-24 the private company, public entity or utility shall not withhold such a

3-25 periodic payment on the basis that the contractor or subcontractor has

3-26 not signed an employer’s report of industrial injury or occupational

3-27 disease as required pursuant to NRS 616C.045.

3-28 Sec. 9. A consolidated insurance program must not cover more than

3-29 one construction project.

3-30 Sec. 10. A consolidated insurance program may cover more than

3-31 one construction project.

3-32 Sec. 11. 1. The system or a private carrier who is authorized to

3-33 transact industrial insurance in this state may contract with a private

3-34 company, public entity or utility to provide industrial insurance coverage

3-35 for a consolidated insurance program.

3-36 2. A private company, public entity or utility that enters into a

3-37 contract with the system or a private carrier for the provision of

3-38 industrial insurance coverage for a consolidated insurance program

3-39 shall file a copy of the contract with the commissioner at least 60 days

3-40 before the date on which the construction project is scheduled to begin.

4-1 3. The commissioner shall, within 60 days after receiving a copy of a

4-2 contract pursuant to subsection 2, review and approve or disapprove the

4-3 contract. If the commissioner does not disapprove the contract within 60

4-4 days after receiving it, the contract shall be deemed approved.

4-5 Sec. 12. 1. A consolidated insurance program that a private

4-6 company, public entity or utility is authorized to establish and administer

4-7 pursuant to section 8 of this act must, in the manner set forth in this

4-8 section, provide for the safety of an employee of a contractor or

4-9 subcontractor who is engaged in the construction project when such an

4-10 employee works at the site of the construction project.

4-11 2. The owner or principal contractor of the construction project shall

4-12 develop and carry out a safety program that includes, without limitation:

4-13 (a) The establishment of minimum standards of safety to be observed

4-14 during construction of the project;

4-15 (b) The holding of regular meetings to address and discuss issues

4-16 related to safety;

4-17 (c) Training of contractors and subcontractors regarding issues and

4-18 procedures related to safety;

4-19 (d) Regular inspections of the site of the construction project to

4-20 identify potential safety hazards and ensure that minimum standards of

4-21 safety are being observed;

4-22 (e) The notification of contractors and subcontractors of special

4-23 hazards that exist at the site of the construction project, including advice

4-24 on ways in which the contractors and subcontractors can avoid those

4-25 hazards; and

4-26 (f) The prompt investigation of any injuries that take place at the site

4-27 of the construction project which result in death or serious bodily injury.

4-28 3. The owner of the construction project, if the project is covered by

4-29 an owner-controlled insurance program, or the principal contractor of

4-30 the construction project, if the project is covered by a contractor-

4-31 controlled insurance program, shall appoint two persons to serve as the

4-32 primary and alternate coordinators for safety for the construction

4-33 project. A person so appointed must:

4-34 (a) Possess credentials in the field of safety that the commissioner

4-35 determines to be adequate to prepare a person to act as a coordinator for

4-36 safety for a construction project, including, without limitation,

4-37 credentials issued by the:

4-38 (1) Board of Certified Safety Professionals;

4-39 (2) World Safety Organization;

4-40 (3) Insurance Institute of America; or

4-41 (4) American Society of Safety Engineers; or

5-1 (b) Have at least 3 years of experience in overseeing matters of

5-2 occupational safety and health in the field of construction that the

5-3 commissioner determines to be adequate to prepare a person to act as a

5-4 coordinator for safety for a construction project.

5-5 4. The primary and alternate coordinators for safety for the

5-6 construction project:

5-7 (a) Must be full-time employees of the person or entity that appointed

5-8 them;

5-9 (b) Must not serve as coordinators for safety for another construction

5-10 project that is covered by a different consolidated insurance program;

5-11 (c) Shall oversee and enforce the safety program established pursuant

5-12 to subsection 2, including, without limitation, resolving problems related

5-13 to the operation of the safety program; and

5-14 (d) Shall ensure that the contractors, employers and subcontractors

5-15 who are engaged in the construction of the project coordinate their

5-16 efforts regarding issues of occupational safety and health to create and

5-17 maintain a safe and healthful workplace.

5-18 5. The alternate coordinator for safety shall report to the primary

5-19 coordinator for safety regarding activities that take place at the site of the

5-20 construction project when the primary coordinator is absent.

5-21 6. The owner of the construction project, if the project is covered by

5-22 an owner-controlled insurance program, or the principal contractor of

5-23 the construction project, if the project is covered by a contractor-

5-24 controlled insurance program, shall ensure that the primary or alternate

5-25 coordinator for safety for the construction project is physically present at

5-26 the site of the construction project whenever activity related to

5-27 construction is taking place at the site.

5-28 Sec. 13. 1. A consolidated insurance program that a private

5-29 company, public entity or utility is authorized to establish and administer

5-30 pursuant to section 8 of this act must, in the manner set forth in this

5-31 section, provide for the administration of claims for industrial insurance

5-32 for an employee of a contractor or subcontractor who is engaged in the

5-33 construction project when such an employee works at the site of the

5-34 construction project.

5-35 2. The owner of the construction project, if the project is covered by

5-36 an owner-controlled insurance program, or the principal contractor of

5-37 the construction project, if the project is covered by a contractor-

5-38 controlled insurance program, shall appoint a person to serve as the

5-39 administrator of claims for industrial insurance for the construction

5-40 project. A person so appointed must not serve as an administrator of

5-41 claims for industrial insurance for another construction project that is

5-42 covered by a different consolidated insurance program.

6-1 3. The administrator of claims for industrial insurance for the

6-2 construction project who is appointed pursuant to subsection 2 shall:

6-3 (a) Assist an employee who is covered under the consolidated

6-4 insurance program or, in the event of the employee’s death, one of his

6-5 dependents, in filing a written notice of injury or death as required

6-6 pursuant to NRS 616C.015 or a written notice of an occupational disease

6-7 as required pursuant to NRS 617.342;

6-8 (b) Sign and file on behalf of a contractor or subcontractor whose

6-9 employees are covered under the consolidated insurance program an

6-10 employer’s report of industrial injury or occupational disease as required

6-11 pursuant to NRS 616C.045;

6-12 (c) Ensure that an employee who is covered under the consolidated

6-13 insurance program and who has been injured or who has incurred an

6-14 occupational disease while working on the construction project is

6-15 directed to a medical facility that will provide treatment to the employee

6-16 under the program; and

6-17 (d) Handle all issues, to the extent reasonably practicable, relating to

6-18 claims for industrial insurance at the site of the construction project.

6-19 4. The owner of the construction project, if the project is covered by

6-20 an owner-controlled insurance program, or the principal contractor of

6-21 the construction project, if the project is covered by a contractor-

6-22 controlled insurance program, shall ensure that the administrator of

6-23 claims for industrial insurance for the construction project is physically

6-24 present at the site of the construction project whenever activity related to

6-25 construction is taking place at the site.

6-26 Sec. 14. 1. The contractors and subcontractors who are engaged in

6-27 the construction of a project that is covered by a consolidated insurance

6-28 program shall post a bond that is adequate to purchase:

6-29 (a) Coverage for completed operations liability; and

6-30 (b) Industrial insurance coverage for the employees of the contractors

6-31 and subcontractors who are engaged in the construction of the project

6-32 after the project is completed,

6-33 for at least 5 years after the date on which the construction project is

6-34 completed, if the project is a residential construction project, or for at

6-35 least 3 years after the date on which the construction project is

6-36 completed, if the project is not a residential construction project.

6-37 2. As used in this section, "completed operations liability" has the

6-38 meaning ascribed to it in NRS 695E.030.

6-39 Sec. 15. 1. A consolidated insurance program must not provide:

6-40 (a) Industrial insurance coverage;

6-41 (b) A comprehensive program of safety; or

7-1 (c) For the administration of claims for industrial insurance,

7-2 for an employee of a contractor or subcontractor who is engaged in the

7-3 construction of the project that is covered by the consolidated insurance

7-4 program at any time that such an employee does not work at the site of

7-5 the construction project.

7-6 2. A contractor or subcontractor who is engaged in the construction

7-7 of a project that is covered by a consolidated insurance project shall

7-8 maintain separate industrial insurance coverage for its employees who:

7-9 (a) Are not assigned to participate in the construction of the project;

7-10 or

7-11 (b) Are assigned to participate in the construction of the project but

7-12 who do not work at the site of the project.

7-13 3. The owner of a construction project, if the project is covered by an

7-14 owner-controlled insurance program, or the principal contractor of a

7-15 construction project, if the project is covered by a contractor-controlled

7-16 insurance program, shall reimburse a contractor or subcontractor who

7-17 bids successfully on the construction project for the cost of providing

7-18 separate industrial insurance coverage for an employee if:

7-19 (a) The contractor or subcontractor set the amount of his bid in a

7-20 reasonable, good faith belief that the employee would work at the site of

7-21 the construction project and would therefore be covered by the

7-22 consolidated insurance program; and

7-23 (b) Because of changed circumstances not reasonably foreseeable at

7-24 the time the bid was submitted, the employee worked in whole or in part

7-25 at a location other than the site of the construction project, requiring the

7-26 contractor or subcontractor to obtain separate industrial insurance

7-27 coverage for that employee.

7-28 Sec. 16. If an owner or principal contractor establishes and

7-29 administers a consolidated insurance program pursuant to section 8 of

7-30 this act, each employee who is covered under the consolidated insurance

7-31 program shall be deemed to be an employee of the owner or principal

7-32 contractor for the purpose of determining the loss experience of the

7-33 owner or principal contractor.

7-34 Sec. 17. With respect to a construction project for which the owner

7-35 intends to establish and administer an owner-controlled insurance

7-36 program or the principal contractor intends to establish and administer a

7-37 contractor-controlled insurance program, the owner or principal

7-38 contractor, as appropriate, shall:

7-39 1. In the notice or advertisement for bids for the construction of the

7-40 project, state:

7-41 (a) That the employees of contractors and subcontractors who are

7-42 engaged in the construction of the project will be covered under a

8-1 consolidated insurance program when such employees work at the site of

8-2 the project; and

8-3 (b) Whether such a program will be an owner-controlled insurance

8-4 program or a contractor-controlled insurance program; and

8-5 2. Hold a pre-bid conference at which it provides to potential

8-6 contractors and subcontractors, without limitation, the following

8-7 information:

8-8 (a) A general explanation of the manner in which a consolidated

8-9 insurance program operates;

8-10 (b) An overview of the provisions of sections 8 to 19, inclusive, of this

8-11 act;

8-12 (c) A general description of the safety procedures that will be required

8-13 as part of the consolidated insurance program; and

8-14 (d) The procedures pursuant to which claims for industrial insurance

8-15 will be administered.

8-16 Sec. 18. The system or a private carrier who contracts to provide

8-17 industrial insurance coverage for a consolidated insurance program

8-18 pursuant to section 11 of this act is liable to pay each claim for industrial

8-19 insurance that is covered by the program, regardless of whether:

8-20 1. The claim is filed after the completion of the construction project;

8-21 or

8-22 2. Any party to the contract is not transacting business within this

8-23 state at the time the claim is filed.

8-24 Sec. 19. A contract for the provision of industrial insurance that is

8-25 authorized pursuant to section 11 of this act must include, without

8-26 limitation:

8-27 1. Provisions that require compliance with each of the requirements

8-28 relating to safety and the administration of claims for industrial

8-29 insurance at the site of the construction project that are set forth in

8-30 sections 12 and 13 of this act;

8-31 2. The names and qualifications of the persons appointed to oversee

8-32 issues of safety and the administration of claims for industrial insurance

8-33 at the site of the construction project pursuant to sections 12 and 13 of

8-34 this act;

8-35 3. The terms and conditions pursuant to which the contract provides

8-36 industrial insurance coverage. The terms and conditions must include,

8-37 without limitation:

8-38 (a) A definition of the site of the construction project that:

8-39 (1) Delineates clearly the area within which coverage is provided;

8-40 and

8-41 (2) Is reasonably contiguous to the actual physical site of the

8-42 construction project; and

9-1 (b) A description of the scope and details of the construction project

9-2 and the duration of industrial insurance coverage that is provided for the

9-3 project;

9-4 4. A list in which the owner, principal contractor, construction

9-5 manager, contractors and subcontractors of the construction project are

9-6 set forth as named insureds;

9-7 5. A provision setting forth the penalties to which the owner,

9-8 principal contractor, construction manager, contractors and

9-9 subcontractors of the construction project may be subject if such persons

9-10 or entities fail to comply with the provisions relating to safety and the

9-11 administration of claims for industrial insurance that are required

9-12 pursuant to sections 12 and 13 of this act; and

9-13 Sec. 20. NRS 616B.612 is hereby amended to read as follows:

9-14 616B.612 1. Every employer within the provisions of chapters 616A

9-30 chapters 616A to 616D, inclusive, of NRS.

9-31 Sec. 21. NRS 616C.045 is hereby amended to read as follows:

9-32 616C.045 1. [Within] Except as otherwise provided in section 13 of

10-1 (d) Be accompanied by a statement of the wages of the employee if the

10-2 claim for compensation received from the treating physician or chiropractor

10-3 indicates that the injured employee is expected to be off work for 5 days or

10-4 more.

10-5 3. An employer who files the report required by subsection 1 by

10-6 electronic transmission shall, upon request, mail to the insurer or third-

10-7 party administrator the form that contains the original signature of the

10-8 employer or his designee. The form must be mailed within 7 days after

10-9 receiving such a request.

10-10 4. The administrator shall impose an administrative fine of not more

10-11 than $1,000 on an employer for each violation of this section.

10-12 Sec. 22. NRS 686A.200 is hereby amended to read as follows:

10-13 686A.200 1. [No] Except as otherwise provided in section 8 of this

10-38 existing policy.

10-39 Sec. 23. NRS 686A.220 is hereby amended to read as follows:

10-40 686A.220 1. [No] Except as otherwise provided in section 8 of this

10-43 authority created pursuant to agreement or compact with another state), and

11-1 no person acting or purporting to act on behalf of such officer or employee,

11-2 or public agency or public authority or public corporation, shall, with

11-3 respect to any public building or construction contract which is about to be

11-4 or which has been competitively bid, require the bidder to make application

11-5 or furnish financial data to, or to obtain or procure any of the surety bonds

11-6 or contracts of insurance specified in connection with such contracts or by

11-7 any law from, a particular insurer or agent or broker.

11-8 2. [No] Except as otherwise provided in section 8 of this act, no such

11-9 officer or employee or any person acting or purporting to act on behalf of

11-10 such officer or employee shall negotiate, make application for, obtain or

11-11 procure any of such surety bonds or contracts of insurance (except

11-12 contracts of insurance for builder’s risk or owner’s protective liability)

11-13 which can be obtained or procured by the bidder, contractor or

11-14 subcontractor.

11-15 3. This section does not, however, prevent the exercise by such officer

11-16 or employee on behalf of the state or such public agency, public authority

11-17 or public corporation of its right to approve the form, sufficiency or manner

11-18 of execution of the surety bonds or contracts of insurance furnished by the

11-19 insurer selected by the bidder to underwrite such bonds or contracts of

11-20 insurance.

11-21 4. Any provisions in any invitation for bids or in any of the contract

11-22 documents in conflict with this section are declared to be contrary to the

11-23 public policy of this state.

11-24 5. A violation of this section is subject to the penalties provided by

11-25 NRS 679A.180 (general penalty).

11-26 Sec. 24. 1. This section and sections 1 to 9, inclusive, and 11 to 23,

11-27 inclusive, of this act become effective on October 1, 1999.

11-28 2. Section 10 of this act becomes effective on October 1, 2001.

11-29 3. Section 9 of this act expires by limitation on September 30, 2001.