Senate Bill No. 44–Senator Schneider
Prefiled January 24, 2001
____________
Referred to Committee on Commerce and Labor
SUMMARY—Revises provisions governing consolidated
insurance programs. (BDR 53‑445)
FISCAL NOTE: Effect on Local Government: 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; 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 thereto
1-2 the provisions set forth as sections 2 to 5,
inclusive, of this act:
1-3 Sec. 2. As used in NRS 616B.710 to 616B.737,
inclusive, and
1-4 sections 2 to 5,
inclusive, of this act, unless the context otherwise
1-5 requires, the
words and terms defined in sections 3, 4 and 5 of this act
1-6 have the meanings
ascribed to them in those sections.
1-7 Sec. 3. “Construction project” means a project
to construct or do
1-8 construction work
on a fixed work or structure.
1-9 Sec. 4. “Fixed work” includes irrigation,
drainage, water supply,
1-10 water power,
flood control, harbors, railroads, highways, tunnels,
1-11 airports and
airways, sewers and sewage disposal systems, bridges,
1-12 inland waterways,
pipelines for transmission of petroleum and other
1-13 liquid or gaseous
substances, refineries, chemical plants and industrial
1-14 plants requiring
a specialized engineering knowledge and skill, power
1-15 plants, piers and
foundations.
1-16 Sec. 5. “Structure” means a building or other
structure designed for
1-17 the support,
shelter and enclosure of persons, animals, chattels or
1-18 movable property
of any kind, the construction of which requires the use
1-19 of more than two
unrelated building trades or crafts.
2-1 Sec. 6. NRS
616B.710 is hereby amended to read as follows:
2-2 616B.710 1. A
private company, public entity or utility may:
2-3 (a) Establish
and administer a consolidated insurance program to
2-4 provide industrial insurance coverage for employees
of contractors and
2-5 subcontractors who are engaged in a construction
project of which the
2-6 private company, public entity or utility is the
owner or principal
2-7 contractor, if the [estimated]
:
2-8 (1) Estimated total cost of the
construction project is equal to or
2-9 greater than the threshold amount established by the
commissioner
2-10 pursuant to subsection 3; and
2-11 (2) Diameter of the site for the
construction project is not more than
2-12 1 mile; and
2-13 (b) As a
condition precedent to the award of a contract to perform work
2-14 on the construction project, require that
contractors and subcontractors who
2-15 will be engaged in the construction of the project
participate in the
2-16 consolidated insurance program.
2-17 2. If a private company, public entity or
utility:
2-18 (a) Establishes
and administers a consolidated insurance program; and
2-19 (b) Pursuant
to the contract for the construction of the project, owes a
2-20 periodic payment to a contractor or subcontractor
whose employees are
2-21 covered under the consolidated insurance program,
2-22 the private company, public entity or utility shall
not withhold such a
2-23 periodic payment on the basis that the contractor or
subcontractor has not
2-24 signed an employer’s report of industrial injury or
occupational disease as
2-25 required pursuant to NRS 616C.045.
2-26 3. The commissioner shall establish the
threshold amount that the
2-27 estimated total cost of a construction project must
be equal to or greater
2-28 than before a consolidated insurance program may be
established and
2-29 administered for that project pursuant to this
section. The base amount for
2-30 the threshold must initially be [$150,000,000]
$250,000,000 and
thereafter
2-31 must be an amount equal to [$150,000,000]
$250,000,000 as
adjusted by
2-32 the commissioner on June 30 of each year to reflect
the present value of
2-33 that amount with respect to the construction cost
index.
2-34 4. As used in this section:
2-35 (a) “Construction
cost index” means the construction cost index
2-36 published by the Engineering News-Record as a
measure of inflation.
2-37 (b) “Estimated
total cost” means the estimated cost to complete all parts
2-38 of a construction project, including, without
limitation, the cost of:
2-39 (1) Designing
the construction project;
2-40 (2) [Acquiring the real property on which the project will be
2-41 constructed;] Constructing or
doing the required construction work on
2-42 the fixed work or
structure;
2-43 (3) Connecting
the construction project
to utilities; and
2-44 (4) Excavating
and carrying out underground improvements for the
2-45 construction project . [; and
2-46 (5) Acquiring equipment and furnishings for
the project.]
2-47 The term does not include the cost of any fees or
charges associated with
2-48 acquiring the money necessary to complete the construction project [.] ,
2-49 the cost of
acquiring any real property on which the construction project
3-1 will be located
or the cost of acquiring equipment or furnishings, that are
3-2 not necessary for
the completion of the construction work, for the fixed
3-3 work or
structure.
3-4 Sec. 7. NRS
616B.720 is hereby amended to read as follows:
3-5 616B.720 A contract for the provision of industrial
insurance that is
3-6 authorized pursuant to NRS 616B.712 must include,
without limitation:
3-7 1. Provisions that require compliance with each
of the requirements
3-8 relating to safety and the administration of claims
for industrial insurance
3-9 at the site of the construction project that are set
forth in NRS 616B.725
3-10 and 616B.727;
3-11 2. The names and qualifications of the persons
appointed to oversee
3-12 issues of safety and the administration of claims
for industrial insurance at
3-13 the site of the construction project pursuant to NRS
616B.725 and
3-14 616B.727;
3-15 3. The terms and conditions pursuant to which
the contract provides
3-16 industrial insurance
coverage. The terms and conditions must include,
3-17 without limitation:
3-18 (a) A
definition of the site of the construction project that:
3-19 (1) Includes an area with a diameter of not
more than 1 mile;
3-20 (2) Delineates clearly the area within which
coverage is provided;
3-21 and
3-22 [(2)] (3) Is reasonably
contiguous to the actual physical site of the
3-23 [construction
project;] fixed work or structure being constructed or the
3-24 portion of the
fixed work or structure upon which construction work is
3-25 being performed; and
3-26 (b) A
description of the scope and details of the construction project and
3-27 the duration of industrial insurance coverage that
is provided for the
3-28 project;
3-29 4. A list in which the owner, principal
contractor, construction
3-30 manager, contractors and subcontractors of the
construction project are set
3-31 forth as named insureds; and
3-32 5. A provision setting forth the penalties to
which the owner, principal
3-33 contractor, construction manager, contractors and
subcontractors of the
3-34 construction project may be subject if such persons
or entities fail to
3-35 comply with the provisions relating to safety and
the administration of
3-36 claims for industrial insurance that are required
pursuant to NRS 616B.725
3-37 and 616B.727.
3-38 Sec. 8. Section
27 of chapter 582, Statutes of Nevada 1999, at page
3-39 3152, is hereby amended to read as follows:
3-40 Sec. 27. 1. This section and
section 26.5 of this act become
3-41 effective upon passage and approval.
3-42 2. Sections 1 to 10, inclusive, and 12 to 26,
inclusive, of this act
3-43 become effective on October 1, 1999.
3-44 [3.
Section 10 of this act expires by
limitation on September 30,
3-45 2001.
3-46 4. Section
11 of this act becomes effective on October 1, 2001.]
3-47 Sec. 9. Section
11 of chapter 582, Statutes of Nevada 1999, at page
3-48 3142, is hereby repealed.
4-1
Sec. 10. This
act becomes effective on July 1, 2001.
4-2 TEXT OF
REPEALED SECTION
4-3 Section 11 of chapter 582, Statutes of Nevada 1999:
4-4 Sec. 11. A
consolidated insurance program may cover more
4-5 than one construction project.
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