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, for a specified period:

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. 6.5. NRS 616A.230 is hereby amended to read as follows:

3-9 616A.230 "Employer" means:

3-17 4. The Nevada rural housing authority.

3-18 5. Except as otherwise provided in section 9 of this act, an owner or

3-19 principal contractor who establishes and administers a consolidated

3-20 insurance program pursuant to section 8 of this act, with respect to the

3-21 employees covered under that consolidated insurance program.

3-22 Sec. 7. Chapter 616B of NRS is hereby amended by adding thereto the

3-23 provisions set forth as sections 8 to 21, inclusive, of this act.

3-24 Sec. 8. 1. A private company, public entity or utility may:

3-25 (a) Establish and administer a consolidated insurance program to

3-26 provide industrial insurance coverage for employees of contractors and

3-27 subcontractors who are engaged in a construction project of which the

3-28 private company, public entity or utility is the owner or principal

3-29 contractor; and

3-30 (b) Except as otherwise provided in section 9 of this act, as a condition

3-31 precedent to the award of a contract to perform work on the construction

3-32 project, require that contractors and subcontractors who will be engaged

3-33 in the construction of the project participate in the consolidated

3-34 insurance program.

3-35 2. If a private company, public entity or utility:

3-36 (a) Establishes and administers a consolidated insurance program;

3-37 and

3-38 (b) Pursuant to the contract for the construction of the project, owes a

3-39 periodic payment to a contractor or subcontractor whose employees are

3-40 covered under the consolidated insurance program,

3-41 the private company, public entity or utility shall not withhold such a

3-42 periodic payment on the basis that the contractor or subcontractor has

4-1 not signed an employer’s report of industrial injury or occupational

4-2 disease as required pursuant to NRS 616C.045.

4-3 Sec. 9. 1. A contractor or subcontractor, other than the principal

4-4 contractor, who is or will be engaged in the construction of a project that

4-5 is covered by a consolidated insurance program may elect to obtain his

4-6 own industrial insurance coverage for his employees who work at the site

4-7 of the construction project if the contractor or subcontractor can obtain a

4-8 lower rate for such coverage than the basic premium rate for the

4-9 consolidated insurance program that is established pursuant to NRS

4-10 686B.177.

4-11 2. If a contractor or subcontractor makes the election described in

4-12 subsection 1, the employees of the contractor or subcontractor shall not

4-13 be deemed to be employees of the owner or principal contractor of the

4-14 construction project pursuant to section 17 of this act.

4-15 Sec. 10. A consolidated insurance program must not cover more

4-16 than one construction project.

4-17 Sec. 11. A consolidated insurance program may cover more than

4-18 one construction project.

4-19 Sec. 12. 1. The system or a private carrier who is authorized to

4-20 transact industrial insurance in this state may contract with a private

4-21 company, public entity or utility to provide industrial insurance coverage

4-22 for a consolidated insurance program.

4-23 2. A private company, public entity or utility that enters into a

4-24 contract with the system or a private carrier for the provision of

4-25 industrial insurance coverage for a consolidated insurance program

4-26 shall file a copy of the contract with the commissioner at least 60 days

4-27 before the date on which the construction project is scheduled to begin.

4-28 3. The commissioner shall, within 60 days after receiving a copy of a

4-29 contract pursuant to subsection 2, review and approve or disapprove the

4-30 contract. If the commissioner does not disapprove the contract within 60

4-31 days after receiving it, the contract shall be deemed approved.

4-32 Sec. 13. 1. A consolidated insurance program that a private

4-33 company, public entity or utility is authorized to establish and administer

4-34 pursuant to section 8 of this act must, in the manner set forth in this

4-35 section, provide for the safety of an employee of a contractor or

4-36 subcontractor who is engaged in the construction project when such an

4-37 employee works at the site of the construction project.

4-38 2. The owner or principal contractor of the construction project shall

4-39 develop and carry out a safety program that includes, without limitation:

4-40 (a) The establishment of minimum standards of safety to be observed

4-41 during construction of the project;

4-42 (b) The holding of regular meetings to address and discuss issues

4-43 related to safety;

5-1 (c) Training of contractors and subcontractors regarding issues and

5-2 procedures related to safety;

5-3 (d) Regular inspections of the site of the construction project to

5-4 identify potential safety hazards and ensure that minimum standards of

5-5 safety are being observed;

5-6 (e) The notification of contractors and subcontractors of special

5-7 hazards that exist at the site of the construction project, including advice

5-8 on ways in which the contractors and subcontractors can avoid those

5-9 hazards; and

5-10 (f) The prompt investigation of any injuries that take place at the site

5-11 of the construction project which result in death or serious bodily injury.

5-12 3. The owner or principal contractor of the construction project shall

5-13 hire or contract with two persons to serve as the primary and alternate

5-14 coordinators for safety for the construction project. The primary and

5-15 alternate coordinators for safety must:

5-16 (a) Possess credentials in the field of safety that the administrator

5-17 determines to be adequate to prepare a person to act as a coordinator for

5-18 safety for a construction project, including, without limitation,

5-19 credentials issued by the:

5-20 (1) Board of Certified Safety Professionals; or

5-21 (2) Insurance Institute of America; or

5-22 (b) Have at least 3 years of experience in overseeing matters of

5-23 occupational safety and health in the field of construction that the

5-24 administrator determines to be adequate to prepare a person to act as a

5-25 coordinator for safety for a construction project.

5-26 4. The primary and alternate coordinators for safety for the

5-27 construction project:

5-28 (a) Must not serve as coordinators for safety for another construction

5-29 project that is covered by a different consolidated insurance program;

5-30 (b) Shall oversee and enforce the safety program established pursuant

5-31 to subsection 2, including, without limitation, resolving problems related

5-32 to the operation of the safety program; and

5-33 (c) Shall ensure that the contractors, employers and subcontractors

5-34 who are engaged in the construction of the project coordinate their

5-35 efforts regarding issues of occupational safety and health to create and

5-36 maintain a safe and healthful workplace.

5-37 5. The alternate coordinator for safety shall report to the primary

5-38 coordinator for safety regarding activities that take place at the site of the

5-39 construction project when the primary coordinator is absent.

5-40 6. The owner or principal contractor of the construction project shall

5-41 ensure that the primary or alternate coordinator for safety for the

5-42 construction project is physically present at the site of the construction

6-1 project whenever activity related to construction is taking place at the

6-2 site.

6-3 Sec. 14. 1. Except as otherwise provided in subsection 2 of section

6-4 16 of this act, a consolidated insurance program that a private company,

6-5 public entity or utility is authorized to establish and administer pursuant

6-6 to section 8 of this act must, in the manner set forth in this section,

6-7 provide for the administration of claims for industrial insurance for an

6-8 employee of a contractor or subcontractor who is engaged in the

6-9 construction project when such an employee works at the site of the

6-10 construction project.

6-11 2. The owner or principal contractor of the construction project shall

6-12 hire or contract with a person to serve as the administrator of claims for

6-13 industrial insurance for the construction project. Such a person must not

6-14 serve as an administrator of claims for industrial insurance for another

6-15 construction project that is covered by a different consolidated insurance

6-16 program.

6-17 3. The administrator of claims for industrial insurance for the

6-18 construction project who is hired or with whom the owner or principal

6-19 contractor contracts pursuant to subsection 2 shall:

6-20 (a) Assist an employee who is covered under the consolidated

6-21 insurance program or, in the event of the employee’s death, one of his

6-22 dependents, in filing a written notice of injury or death as required

6-23 pursuant to NRS 616C.015 or a written notice of an occupational disease

6-24 as required pursuant to NRS 617.342;

6-25 (b) Sign and file on behalf of a contractor or subcontractor whose

6-26 employees are covered under the consolidated insurance program an

6-27 employer’s report of industrial injury or occupational disease as required

6-28 pursuant to NRS 616C.045 or 617.354;

6-29 (c) Ensure that an employee who is covered under the consolidated

6-30 insurance program and who has been injured or who has incurred an

6-31 occupational disease while working on the construction project is

6-32 directed to a medical facility that will provide treatment to the employee

6-33 under the program;

6-34 (d) Handle all issues, to the extent reasonably practicable, relating to

6-35 claims for industrial insurance at the site of the construction project; and

6-36 (e) Hire or contract such assistant administrators as may be necessary

6-37 to carry out his responsibilities pursuant to this section.

6-38 4. The owner or principal contractor of the construction project shall

6-39 ensure that the administrator of claims for industrial insurance for the

6-40 construction project or an assistant administrator is physically present at

6-41 the site of the construction project whenever activity related to

6-42 construction is taking place at the site.

6-43 Sec. 15. (Deleted by amendment.)

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

7-2 industrial insurance coverage, a comprehensive program of safety or for

7-3 the administration of claims for industrial insurance for an employee of

7-4 a contractor or subcontractor who is engaged in the construction of the

7-5 project that is covered by the consolidated insurance program at any time

7-6 that such an employee does not work at the site of the construction

7-7 project.

7-8 2. A consolidated insurance program must not provide industrial

7-9 insurance coverage or for the administration of claims for industrial

7-10 insurance for an employee of a contractor or subcontractor if the

7-11 contractor or subcontractor has elected to obtain his own industrial

7-12 insurance coverage pursuant to section 9 of this act.

7-13 3. A contractor or subcontractor who is engaged in the construction

7-14 of a project that is covered by a consolidated insurance program and who

7-15 has not elected to obtain his own industrial insurance coverage pursuant

7-16 to section 9 of this act shall maintain separate industrial insurance

7-17 coverage for its employees who:

7-18 (a) Are not assigned to participate in the construction of the project;

7-19 or

7-20 (b) Are assigned to participate in the construction of the project but

7-21 who do not work at the site of the project.

7-22 4. The owner or principal contractor of a construction project shall,

7-23 unless the contractor or subcontractor has elected to obtain his own

7-24 industrial insurance coverage pursuant to section 9 of this act, reimburse

7-25 a contractor or subcontractor who bids successfully on the construction

7-26 project for the cost of providing separate industrial insurance coverage

7-27 for an employee if:

7-28 (a) The contractor or subcontractor set the amount of his bid in a

7-29 reasonable, good faith belief that the employee would work at the site of

7-30 the construction project and would therefore be covered by the

7-31 consolidated insurance program; and

7-32 (b) Because of changed circumstances not reasonably foreseeable at

7-33 the time the bid was submitted, the employee worked in whole or in part

7-34 at a location other than the site of the construction project, requiring the

7-35 contractor or subcontractor to obtain separate industrial insurance

7-36 coverage for that employee.

7-37 Sec. 17. Except as otherwise provided in section 9 of this act, if an

7-38 owner or principal contractor establishes and administers a consolidated

7-39 insurance program pursuant to section 8 of this act, each employee who

7-40 is covered under the consolidated insurance program shall be deemed to

7-41 be an employee of the owner or principal contractor for the purpose of

7-42 determining the loss experience of the owner or principal contractor.

8-1 Sec. 18. With respect to a construction project for which the owner

8-2 intends to establish and administer an owner-controlled insurance

8-3 program or the principal contractor intends to establish and administer a

8-4 contractor-controlled insurance program, the owner or principal

8-5 contractor, as appropriate, shall:

8-6 1. In the notice or advertisement for bids for the construction of the

8-7 project, state:

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

8-9 engaged in the construction of the project will be covered under a

8-10 consolidated insurance program when such employees work at the site of

8-11 the project; and

8-12 (b) Whether such a program will be an owner-controlled insurance

8-13 program or a contractor-controlled insurance program; and

8-14 2. Hold a pre-bid conference at which it provides to potential

8-15 contractors and subcontractors, without limitation, the following

8-16 information:

8-17 (a) A general explanation of the manner in which a consolidated

8-18 insurance program operates;

8-19 (b) An overview of the provisions of sections 8 to 21, inclusive, of this

8-20 act;

8-21 (c) A general description of the safety procedures that will be required

8-22 as part of the consolidated insurance program; and

8-23 (d) The procedures pursuant to which claims for industrial insurance

8-24 will be administered.

8-25 Sec. 19. The system or a private carrier who contracts to provide

8-26 industrial insurance coverage for a consolidated insurance program

8-27 pursuant to section 12 of this act is liable to pay each claim for industrial

8-28 insurance that is covered by the program, regardless of whether:

8-29 1. The claim is filed after the completion of the construction project;

8-30 or

8-31 2. Any party to the contract is not transacting business within this

8-32 state at the time the claim is filed.

8-33 Sec. 20. A contract for the provision of industrial insurance that is

8-34 authorized pursuant to section 12 of this act must include, without

8-35 limitation:

8-36 1. Provisions that require compliance with each of the requirements

8-37 relating to safety and the administration of claims for industrial

8-38 insurance at the site of the construction project that are set forth in

8-39 sections 13 and 14 of this act;

8-40 2. The names and qualifications of the persons appointed to oversee

8-41 issues of safety and the administration of claims for industrial insurance

8-42 at the site of the construction project pursuant to sections 13 and 14 of

8-43 this act;

9-1 3. The terms and conditions pursuant to which the contract provides

9-2 industrial insurance coverage. The terms and conditions must include,

9-3 without limitation:

9-4 (a) A definition of the site of the construction project that:

9-5 (1) Delineates clearly the area within which coverage is provided;

9-6 and

9-7 (2) Is reasonably contiguous to the actual physical site of the

9-8 construction project; and

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

9-10 and the duration of industrial insurance coverage that is provided for the

9-11 project;

9-12 4. A list in which the owner, principal contractor, construction

9-13 manager, contractors and subcontractors of the construction project are

9-14 set forth as named insureds; and

9-15 5. A provision setting forth the penalties to which the owner,

9-16 principal contractor, construction manager, contractors and

9-17 subcontractors of the construction project may be subject if such persons

9-18 or entities fail to comply with the provisions relating to safety and the

9-19 administration of claims for industrial insurance that are required

9-20 pursuant to sections 13 and 14 of this act.

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

9-22 commissioner determines are necessary to carry out the provisions of

9-23 sections 8 to 21, inclusive, of this act, to the extent that the authority

9-24 granted pursuant to this section does not duplicate authority granted to

9-25 the administrator.

9-26 Sec. 22. NRS 616B.612 is hereby amended to read as follows:

9-27 616B.612 1. Every employer within the provisions of chapters 616A

9-43 chapters 616A to 616D, inclusive, of NRS.

10-1 Sec. 23. NRS 616C.045 is hereby amended to read as follows:

10-2 616C.045 1. [Within] Except as otherwise provided in section 14 of

10-22 than $1,000 on an employer for each violation of this section.

10-23 Sec. 24. NRS 617.354 is hereby amended to read as follows:

10-24 617.354 1. [Within] Except as otherwise provided in section 14 of

10-43 than $1,000 against an employer for each violation of this section.

11-1 Sec. 25. NRS 686A.200 is hereby amended to read as follows:

11-2 686A.200 1. [No] Except as otherwise provided in section 8 of this

11-27 existing policy.

11-28 Sec. 26. NRS 686A.220 is hereby amended to read as follows:

11-29 686A.220 1. [No] Except as otherwise provided in section 8 of this

11-43 procure any of such surety bonds or contracts of insurance (except

12-1 contracts of insurance for builder’s risk or owner’s protective liability)

12-2 which can be obtained or procured by the bidder, contractor or

12-3 subcontractor.

12-4 3. This section does not, however, prevent the exercise by such officer

12-5 or employee on behalf of the state or such public agency, public authority

12-6 or public corporation of its right to approve the form, sufficiency or manner

12-7 of execution of the surety bonds or contracts of insurance furnished by the

12-8 insurer selected by the bidder to underwrite such bonds or contracts of

12-9 insurance.

12-10 4. Any provisions in any invitation for bids or in any of the contract

12-11 documents in conflict with this section are declared to be contrary to the

12-12 public policy of this state.

12-13 5. A violation of this section is subject to the penalties provided by

12-14 NRS 679A.180 (general penalty).

12-15 Sec. 27. 1. This section and sections 1 to 10, inclusive, and 12 to 26,

12-16 inclusive, of this act become effective on October 1, 1999.

12-17 2. Section 10 of this act expires by limitation on September 30, 2001.

12-18 3. Section 11 of this act becomes effective on October 1, 2001.