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; authorizing certain private companies, public entities and utilities to establish and administer a consolidated insurance program to obtain industrial insurance coverage for a construction project; providing certain limitations regarding the scope of a consolidated insurance program; authorizing a contractor or subcontractor who is engaged in the construction of a project that is covered by a consolidated insurance program to elect to obtain his own industrial insurance coverage for his employees who work at the site of the construction project in certain circumstances; authorizing the state industrial insurance system or certain private carriers to provide industrial insurance coverage for a consolidated insurance program; requiring that a consolidated insurance program must provide for the safety and administration of claims of employees of contractors and subcontractors who are engaged in a construction project; setting forth the provisions that must be included within a contract to provide industrial insurance coverage for a consolidated insurance program; allocating responsibility for the payment of claims for industrial insurance that are covered by a consolidated insurance program; and providing other matters properly relating thereto.

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:

2-1 1. Industrial insurance coverage;

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

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

2-4 for each employee of a contractor or subcontractor who is engaged in a

2-5 construction project when such an employee works at the site of the

2-6 construction project.

2-7 Sec. 3. "Contractor-controlled insurance program" means a

2-8 consolidated insurance program that is established and administered by

2-9 the principal contractor of the construction project.

2-10 Sec. 4. "Owner-controlled insurance program" means a

2-11 consolidated insurance program that is established and administered by

2-12 the owner of the construction project.

2-13 Sec. 5. NRS 616A.020 is hereby amended to read as follows:

2-14 616A.020 1. The rights and remedies provided in chapters 616A to

2-43 jurisdiction and such employee is barred from commencing any action or

3-1 proceeding for the enforcement or collection of any benefits or award under

3-2 the laws of any other state or jurisdiction.

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

3-4 616A.025 As used in chapters 616A to 616D, inclusive, of NRS,

3-7 the meanings ascribed to them in those sections.

3-8 Sec. 7. Chapter 616B of NRS is hereby amended by adding thereto the

3-9 provisions set forth as sections 8 to 21, inclusive, of this act.

3-10 Sec. 8. 1. A private company, public entity or utility may:

3-11 (a) Establish and administer a consolidated insurance program to

3-12 provide industrial insurance coverage for employees of contractors and

3-13 subcontractors who are engaged in a construction project of which the

3-14 private company, public entity or utility is the owner or principal

3-15 contractor; and

3-16 (b) Except as otherwise provided in section 9 of this act, as a condition

3-17 precedent to the award of a contract to perform work on the construction

3-18 project, require that contractors and subcontractors who will be engaged

3-19 in the construction of the project participate in the consolidated

3-20 insurance program.

3-21 2. If a private company, public entity or utility:

3-22 (a) Establishes and administers a consolidated insurance program;

3-23 and

3-24 (b) Pursuant to the contract for the construction of the project, owes a

3-25 periodic payment to a contractor or subcontractor whose employees are

3-26 covered under the consolidated insurance program,

3-27 the private company, public entity or utility shall not withhold such a

3-28 periodic payment on the basis that the contractor or subcontractor has

3-29 not signed an employer’s report of industrial injury or occupational

3-30 disease as required pursuant to NRS 616C.045.

3-31 Sec. 9. 1. A contractor or subcontractor, other than the principal

3-32 contractor, who is or will be engaged in the construction of a project that

3-33 is covered by a consolidated insurance program may elect to obtain his

3-34 own industrial insurance coverage for his employees who work at the site

3-35 of the construction project if the contractor or subcontractor can obtain a

3-36 lower rate for such coverage than the basic premium rate for the

3-37 consolidated insurance program that is established pursuant to NRS

3-38 686B.177.

3-39 2. If a contractor or subcontractor makes the election described in

3-40 subsection 1, the employees of the contractor or subcontractor shall not

3-41 be deemed to be employees of the owner or principal contractor of the

3-42 construction project pursuant to section 17 of this act.

4-1 Sec. 10. A consolidated insurance program must not cover more

4-2 than one construction project.

4-3 Sec. 11. A consolidated insurance program may cover more than

4-4 one construction project.

4-5 Sec. 12. 1. The system or a private carrier who is authorized to

4-6 transact industrial insurance in this state may contract with a private

4-7 company, public entity or utility to provide industrial insurance coverage

4-8 for a consolidated insurance program.

4-9 2. A private company, public entity or utility that enters into a

4-10 contract with the system or a private carrier for the provision of

4-11 industrial insurance coverage for a consolidated insurance program

4-12 shall file a copy of the contract with the commissioner at least 60 days

4-13 before the date on which the construction project is scheduled to begin.

4-14 3. The commissioner shall, within 60 days after receiving a copy of a

4-15 contract pursuant to subsection 2, review and approve or disapprove the

4-16 contract. If the commissioner does not disapprove the contract within 60

4-17 days after receiving it, the contract shall be deemed approved.

4-18 Sec. 13. 1. A consolidated insurance program that a private

4-19 company, public entity or utility is authorized to establish and administer

4-20 pursuant to section 8 of this act must, in the manner set forth in this

4-21 section, provide for the safety of an employee of a contractor or

4-22 subcontractor who is engaged in the construction project when such an

4-23 employee works at the site of the construction project.

4-24 2. The owner or principal contractor of the construction project shall

4-25 develop and carry out a safety program that includes, without limitation:

4-26 (a) The establishment of minimum standards of safety to be observed

4-27 during construction of the project;

4-28 (b) The holding of regular meetings to address and discuss issues

4-29 related to safety;

4-30 (c) Training of contractors and subcontractors regarding issues and

4-31 procedures related to safety;

4-32 (d) Regular inspections of the site of the construction project to

4-33 identify potential safety hazards and ensure that minimum standards of

4-34 safety are being observed;

4-35 (e) The notification of contractors and subcontractors of special

4-36 hazards that exist at the site of the construction project, including advice

4-37 on ways in which the contractors and subcontractors can avoid those

4-38 hazards; and

4-39 (f) The prompt investigation of any injuries that take place at the site

4-40 of the construction project which result in death or serious bodily injury.

4-41 3. The owner of the construction project, if the project is covered by

4-42 an owner-controlled insurance program, or the principal contractor of

4-43 the construction project, if the project is covered by a contractor

5-1 controlled insurance program, shall appoint two persons to serve as the

5-2 primary and alternate coordinators for safety for the construction

5-3 project. A person so appointed must:

5-4 (a) Possess credentials in the field of safety that the commissioner

5-5 determines to be adequate to prepare a person to act as a coordinator for

5-6 safety for a construction project, including, without limitation,

5-7 credentials issued by the:

5-8 (1) Board of Certified Safety Professionals;

5-9 (2) World Safety Organization;

5-10 (3) Insurance Institute of America; or

5-11 (4) American Society of Safety Engineers; or

5-12 (b) Have at least 3 years of experience in overseeing matters of

5-13 occupational safety and health in the field of construction that the

5-14 commissioner determines to be adequate to prepare a person to act as a

5-15 coordinator for safety for a construction project.

5-16 4. The primary and alternate coordinators for safety for the

5-17 construction project:

5-18 (a) Must be full-time employees of the person or entity that appointed

5-19 them;

5-20 (b) Must not serve as coordinators for safety for another construction

5-21 project that is covered by a different consolidated insurance program;

5-22 (c) Shall oversee and enforce the safety program established pursuant

5-23 to subsection 2, including, without limitation, resolving problems related

5-24 to the operation of the safety program; and

5-25 (d) Shall ensure that the contractors, employers and subcontractors

5-26 who are engaged in the construction of the project coordinate their

5-27 efforts regarding issues of occupational safety and health to create and

5-28 maintain a safe and healthful workplace.

5-29 5. The alternate coordinator for safety shall report to the primary

5-30 coordinator for safety regarding activities that take place at the site of the

5-31 construction project when the primary coordinator is absent.

5-32 6. The owner of the construction project, if the project is covered by

5-33 an owner-controlled insurance program, or the principal contractor of

5-34 the construction project, if the project is covered by a contractor-

5-35 controlled insurance program, shall ensure that the primary or alternate

5-36 coordinator for safety for the construction project is physically present at

5-37 the site of the construction project whenever activity related to

5-38 construction is taking place at the site.

5-39 Sec. 14. 1. Except as otherwise provided in subsection 2 of section

5-40 16 of this act, a consolidated insurance program that a private company,

5-41 public entity or utility is authorized to establish and administer pursuant

5-42 to section 8 of this act must, in the manner set forth in this section,

5-43 provide for the administration of claims for industrial insurance for an

6-1 employee of a contractor or subcontractor who is engaged in the

6-2 construction project when such an employee works at the site of the

6-3 construction project.

6-4 2. The owner of the construction project, if the project is covered by

6-5 an owner-controlled insurance program, or the principal contractor of

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

6-7 controlled insurance program, shall appoint a person to serve as the

6-8 administrator of claims for industrial insurance for the construction

6-9 project. A person so appointed must not serve as an administrator of

6-10 claims for industrial insurance for another construction project that is

6-11 covered by a different consolidated insurance program.

6-12 3. The administrator of claims for industrial insurance for the

6-13 construction project who is appointed pursuant to subsection 2 shall:

6-14 (a) Assist an employee who is covered under the consolidated

6-15 insurance program or, in the event of the employee’s death, one of his

6-16 dependents, in filing a written notice of injury or death as required

6-17 pursuant to NRS 616C.015 or a written notice of an occupational disease

6-18 as required pursuant to NRS 617.342;

6-19 (b) Sign and file on behalf of a contractor or subcontractor whose

6-20 employees are covered under the consolidated insurance program an

6-21 employer’s report of industrial injury or occupational disease as required

6-22 pursuant to NRS 616C.045 or 617.354;

6-23 (c) Ensure that an employee who is covered under the consolidated

6-24 insurance program and who has been injured or who has incurred an

6-25 occupational disease while working on the construction project is

6-26 directed to a medical facility that will provide treatment to the employee

6-27 under the program; and

6-28 (d) Handle all issues, to the extent reasonably practicable, relating to

6-29 claims for industrial insurance at the site of the construction project.

6-30 4. The owner of the construction project, if the project is covered by

6-31 an owner-controlled insurance program, or the principal contractor of

6-32 the construction project, if the project is covered by a contractor-

6-33 controlled insurance program, shall ensure that the administrator of

6-34 claims for industrial insurance for the construction project is physically

6-35 present at the site of the construction project whenever activity related to

6-36 construction is taking place at the site.

6-37 Sec. 15. 1. The contractors and subcontractors who are engaged in

6-38 the construction of a project that is covered by a consolidated insurance

6-39 program shall post a bond that is adequate to purchase:

6-40 (a) Coverage for completed operations liability; and

6-41 (b) Industrial insurance coverage for the employees of the contractors

6-42 and subcontractors who are engaged in the construction of the project

6-43 after the project is completed,

7-1 for at least 5 years after the date on which the construction project is

7-2 completed, if the project is a residential construction project, or for at

7-3 least 3 years after the date on which the construction project is

7-4 completed, if the project is not a residential construction project.

7-5 2. As used in this section, "completed operations liability" has the

7-6 meaning ascribed to it in NRS 695E.030.

7-7 Sec. 16. 1. A consolidated insurance program must not provide

7-8 industrial insurance coverage, a comprehensive program of safety or for

7-9 the administration of claims for industrial insurance for an employee of

7-10 a contractor or subcontractor who is engaged in the construction of the

7-11 project that is covered by the consolidated insurance program at any time

7-12 that such an employee does not work at the site of the construction

7-13 project.

7-14 2. A consolidated insurance program must not provide industrial

7-15 insurance coverage or for the administration of claims for industrial

7-16 insurance for an employee of a contractor or subcontractor if the

7-17 contractor or subcontractor has elected to obtain his own industrial

7-18 insurance coverage pursuant to section 9 of this act.

7-19 3. A contractor or subcontractor who is engaged in the construction

7-20 of a project that is covered by a consolidated insurance program and who

7-21 has not elected to obtain his own industrial insurance coverage pursuant

7-22 to section 9 of this act shall maintain separate industrial insurance

7-23 coverage for its employees who:

7-24 (a) Are not assigned to participate in the construction of the project;

7-25 or

7-26 (b) Are assigned to participate in the construction of the project but

7-27 who do not work at the site of the project.

7-28 4. The owner of a construction project, if the project is covered by an

7-29 owner-controlled insurance program, or the principal contractor of a

7-30 construction project, if the project is covered by a contractor-controlled

7-31 insurance program, shall, unless the contractor or subcontractor has

7-32 elected to obtain his own industrial insurance coverage pursuant to

7-33 section 9 of this act, reimburse a contractor or subcontractor who bids

7-34 successfully on the construction project for the cost of providing separate

7-35 industrial insurance coverage for an employee if:

7-36 (a) The contractor or subcontractor set the amount of his bid in a

7-37 reasonable, good faith belief that the employee would work at the site of

7-38 the construction project and would therefore be covered by the

7-39 consolidated insurance program; and

7-40 (b) Because of changed circumstances not reasonably foreseeable at

7-41 the time the bid was submitted, the employee worked in whole or in part

7-42 at a location other than the site of the construction project, requiring the

8-1 contractor or subcontractor to obtain separate industrial insurance

8-2 coverage for that employee.

8-3 Sec. 17. Except as otherwise provided in section 9 of this act, if an

8-4 owner or principal contractor establishes and administers a consolidated

8-5 insurance program pursuant to section 8 of this act, each employee who

8-6 is covered under the consolidated insurance program shall be deemed to

8-7 be an employee of the owner or principal contractor for the purpose of

8-8 determining the loss experience of the owner or principal contractor.

8-9 Sec. 18. With respect to a construction project for which the owner

8-10 intends to establish and administer an owner-controlled insurance

8-11 program or the principal contractor intends to establish and administer a

8-12 contractor-controlled insurance program, the owner or principal

8-13 contractor, as appropriate, shall:

8-14 1. In the notice or advertisement for bids for the construction of the

8-15 project, state:

8-16 (a) That the employees of contractors and subcontractors who are

8-17 engaged in the construction of the project will be covered under a

8-18 consolidated insurance program when such employees work at the site of

8-19 the project; and

8-20 (b) Whether such a program will be an owner-controlled insurance

8-21 program or a contractor-controlled insurance program; and

8-22 2. Hold a pre-bid conference at which it provides to potential

8-23 contractors and subcontractors, without limitation, the following

8-24 information:

8-25 (a) A general explanation of the manner in which a consolidated

8-26 insurance program operates;

8-27 (b) An overview of the provisions of sections 8 to 21, inclusive, of this

8-28 act;

8-29 (c) A general description of the safety procedures that will be required

8-30 as part of the consolidated insurance program; and

8-31 (d) The procedures pursuant to which claims for industrial insurance

8-32 will be administered.

8-33 Sec. 19. The system or a private carrier who contracts to provide

8-34 industrial insurance coverage for a consolidated insurance program

8-35 pursuant to section 12 of this act is liable to pay each claim for industrial

8-36 insurance that is covered by the program, regardless of whether:

8-37 1. The claim is filed after the completion of the construction project;

8-38 or

8-39 2. Any party to the contract is not transacting business within this

8-40 state at the time the claim is filed.

8-41 Sec. 20. A contract for the provision of industrial insurance that is

8-42 authorized pursuant to section 12 of this act must include, without

8-43 limitation:

9-1 1. Provisions that require compliance with each of the requirements

9-2 relating to safety and the administration of claims for industrial

9-3 insurance at the site of the construction project that are set forth in

9-4 sections 13 and 14 of this act;

9-5 2. The names and qualifications of the persons appointed to oversee

9-6 issues of safety and the administration of claims for industrial insurance

9-7 at the site of the construction project pursuant to sections 13 and 14 of

9-8 this act;

9-9 3. The terms and conditions pursuant to which the contract provides

9-10 industrial insurance coverage. The terms and conditions must include,

9-11 without limitation:

9-12 (a) A definition of the site of the construction project that:

9-13 (1) Delineates clearly the area within which coverage is provided;

9-14 and

9-15 (2) Is reasonably contiguous to the actual physical site of the

9-16 construction project; and

9-17 (b) A description of the scope and details of the construction project

9-18 and the duration of industrial insurance coverage that is provided for the

9-19 project;

9-20 4. A list in which the owner, principal contractor, construction

9-21 manager, contractors and subcontractors of the construction project are

9-22 set forth as named insureds; and

9-23 5. A provision setting forth the penalties to which the owner,

9-24 principal contractor, construction manager, contractors and

9-25 subcontractors of the construction project may be subject if such persons

9-26 or entities fail to comply with the provisions relating to safety and the

9-27 administration of claims for industrial insurance that are required

9-28 pursuant to sections 13 and 14 of this act.

9-29 Sec. 21. The commissioner may adopt such regulations as the

9-30 commissioner determines are necessary to carry out the provisions of

9-31 sections 8 to 21, inclusive, of this act, to the extent that the authority

9-32 granted pursuant to this section does not duplicate authority granted to

9-33 the administrator.

9-34 Sec. 22. NRS 616B.612 is hereby amended to read as follows:

9-35 616B.612 1. Every employer within the provisions of chapters 616A

9-42 and secured compensation for his employees as required pursuant to

10-1 subsection 1 to the extent that those employees are covered by a

10-2 consolidated insurance program.

10-3 3. Travel for which an employee receives wages shall, for the purposes

10-4 of chapters 616A to 616D, inclusive, of NRS, be deemed in the course of

10-5 employment.

10-6 [3.] 4. In such cases the employer or any insurer of the employer is

10-7 relieved from other liability for recovery of damages or other compensation

10-8 for those personal injuries unless otherwise provided by the terms of

10-9 chapters 616A to 616D, inclusive, of NRS.

10-10 Sec. 23. NRS 616C.045 is hereby amended to read as follows:

10-11 616C.045 1. [Within] Except as otherwise provided in section 14 of

10-31 than $1,000 on an employer for each violation of this section.

10-32 Sec. 24. NRS 617.354 is hereby amended to read as follows:

10-33 617.354 1. [Within] Except as otherwise provided in section 14 of

10-42 of the department; and

11-1 (d) Be accompanied by a statement of the wages of the employee if the

11-2 claim for compensation received from the treating physician or chiropractor

11-3 indicates that the employee is expected to be off work for 5 days or more.

11-4 3. An employer who files the report required by subsection 1 by

11-5 electronic transmission shall, upon request, mail to the insurer or third-

11-6 party administrator the form that contains the original signature of the

11-7 employer or his designee. The form must be mailed within 7 days after

11-8 receiving such a request.

11-9 4. The administrator shall impose an administrative fine of not more

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

11-11 Sec. 25. NRS 686A.200 is hereby amended to read as follows:

11-12 686A.200 1. [No] Except as otherwise provided in section 8 of this

11-37 existing policy.

11-38 Sec. 26. NRS 686A.220 is hereby amended to read as follows:

11-39 686A.220 1. [No] Except as otherwise provided in section 8 of this

11-43 no person acting or purporting to act on behalf of such officer or employee,

12-1 or public agency or public authority or public corporation, shall, with

12-2 respect to any public building or construction contract which is about to be

12-3 or which has been competitively bid, require the bidder to make application

12-4 or furnish financial data to, or to obtain or procure any of the surety bonds

12-5 or contracts of insurance specified in connection with such contracts or by

12-6 any law from, a particular insurer or agent or broker.

12-7 2. [No] Except as otherwise provided in section 8 of this act, no such

12-8 officer or employee or any person acting or purporting to act on behalf of

12-9 such officer or employee shall negotiate, make application for, obtain or

12-10 procure any of such surety bonds or contracts of insurance (except

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

12-12 which can be obtained or procured by the bidder, contractor or

12-13 subcontractor.

12-14 3. This section does not, however, prevent the exercise by such officer

12-15 or employee on behalf of the state or such public agency, public authority

12-16 or public corporation of its right to approve the form, sufficiency or manner

12-17 of execution of the surety bonds or contracts of insurance furnished by the

12-18 insurer selected by the bidder to underwrite such bonds or contracts of

12-19 insurance.

12-20 4. Any provisions in any invitation for bids or in any of the contract

12-21 documents in conflict with this section are declared to be contrary to the

12-22 public policy of this state.

12-23 5. A violation of this section is subject to the penalties provided by

12-24 NRS 679A.180 (general penalty).

12-25 Sec. 27. 1. This section and sections 1 to 10, inclusive, and 12 to 26,

12-26 inclusive, of this act become effective on October 1, 1999.

12-27 2. Section 10 of this act expires by limitation on September 30, 2001.

12-28 3. Section 11 of this act becomes effective on October 1, 2001.