(REPRINTED WITH ADOPTED AMENDMENTS)

 

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.

                                     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.

 

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 $150,000,000and thereafter must be an

2-31  amount equal to $150,000,000 as adjusted by the commissioner on June 30

2-32  of each year to reflect the present value of that amount with respect to the

2-33  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.

 

4-6  H