Assembly Bill No. 157–Assemblywoman Giunchigliani
(by request)

 

February 18, 2003

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Revises provisions relating to consolidated insurance programs. (BDR 53‑370)

 

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

1-2  thereto the provisions set forth as sections 2 to 5, inclusive, of this

1-3  act:

1-4  Sec. 2.  As used in NRS 616B.710 to 616B.737, inclusive, and

1-5  sections 2 to 5, inclusive, of this act, unless the context otherwise

1-6  requires, the words and terms defined in sections 3, 4 and 5 of this

1-7  act have the meanings ascribed to them in those sections.

1-8  Sec. 3.  “Construction project” means a project to construct

1-9  or perform construction work on a fixed work or structure.

1-10      Sec. 4.  “Fixed work” includes irrigation, drainage, water

1-11  supply, water power, flood control, harbors, railroads, highways,

1-12  tunnels, airports and airways, sewers and sewage disposal systems,

1-13  bridges, inland waterways, pipelines for transmission of petroleum

2-1  and other liquid or gaseous substances, refineries, chemical plants

2-2  and industrial plants requiring a specialized engineering

2-3  knowledge and skill, power plants, piers and foundations.

2-4  Sec. 5.  “Structure” means a building or other structure

2-5  designed for the support, shelter and enclosure of persons,

2-6  animals, chattels or movable property of any kind, the

2-7  construction of which requires the use of more than two unrelated

2-8  building trades or crafts. The term does not include a residential

2-9  dwelling unit as defined in NRS 278.4977.

2-10      Sec. 6.  NRS 616B.710 is hereby amended to read as follows:

2-11      616B.710  1.  A private company, public entity or utility may:

2-12      (a) Establish and administer a consolidated insurance program to

2-13  provide industrial insurance coverage for employees of contractors

2-14  and subcontractors who are engaged in a construction project of

2-15  which the private company, public entity or utility is the owner or

2-16  principal contractor, if the [estimated] :

2-17          (1) Estimated total cost of the construction project is equal to

2-18  or greater than the threshold amount established by the

2-19  Commissioner pursuant to subsection 3; and

2-20          (2) Diameter of the site for the construction project is not

2-21  more than 1 mile; and

2-22      (b) As a condition precedent to the award of a contract to

2-23  perform work on the construction project, require that contractors

2-24  and subcontractors who will be engaged in the construction of the

2-25  project participate in the consolidated insurance program.

2-26      2.  If a private company, public entity or utility:

2-27      (a) Establishes and administers a consolidated insurance

2-28  program; and

2-29      (b) Pursuant to the contract for the construction of the project,

2-30  owes a periodic payment to a contractor or subcontractor whose

2-31  employees are covered under the consolidated insurance

2-32  program,

2-33  the private company, public entity or utility shall not withhold such

2-34  a periodic payment on the basis that the contractor or subcontractor

2-35  has not signed an employer’s report of industrial injury or

2-36  occupational disease as required pursuant to NRS 616C.045.

2-37      3.  The Commissioner shall establish the threshold amount that

2-38  the estimated total cost of a construction project must be equal to or

2-39  greater than before a consolidated insurance program may be

2-40  established and administered for that project pursuant to this section.

2-41  The base amount for the threshold must initially be $150,000,000

2-42  and thereafter must be an amount equal to $150,000,000 as adjusted

2-43  by the Commissioner on June 30 of each year to reflect the present

2-44  value of that amount with respect to the construction cost index.

2-45      4.  As used in this section:

3-1  (a) “Construction cost index” means the construction cost index

3-2  published by the Engineering News-Record as a measure of

3-3  inflation.

3-4  (b) “Estimated total cost” means the estimated cost to complete

3-5  all parts of a construction project, including, without limitation, the

3-6  cost of:

3-7       (1) Designing the construction project;

3-8       (2) [Acquiring the real property on which the project will be

3-9  constructed;] Constructing or performing the required

3-10  construction work on the fixed work or structure;

3-11          (3) Connecting the construction project to utilities; and

3-12          (4) Excavating and carrying out underground improvements

3-13  for the construction project . [; and

3-14          (5) Acquiring equipment and furnishings for the

3-15  project.]

3-16  The term does not include the cost of any fees or charges associated

3-17  with acquiring the money necessary to complete the construction

3-18  project[.] , the cost of acquiring any real property on which the

3-19  construction project will be located or the cost of acquiring

3-20  equipment or furnishings, that are not necessary for the

3-21  completion of the construction work, for the fixed work or

3-22  structure.

3-23      Sec. 7.  NRS 616B.717 is hereby amended to read as follows:

3-24      616B.717  A consolidated insurance program may not cover

3-25  more than one construction project.

3-26      Sec. 8.  NRS 616B.720 is hereby amended to read as follows:

3-27      616B.720  A contract for the provision of industrial insurance

3-28  that is authorized pursuant to NRS 616B.712 must include, without

3-29  limitation:

3-30      1.  Provisions that require compliance with each of the

3-31  requirements relating to safety and the administration of claims for

3-32  industrial insurance at the site of the construction project that are set

3-33  forth in NRS 616B.725 and 616B.727;

3-34      2.  The names and qualifications of the persons appointed to

3-35  oversee issues of safety and the administration of claims for

3-36  industrial insurance at the site of the construction project pursuant to

3-37  NRS 616B.725 and 616B.727;

3-38      3.  The terms and conditions pursuant to which the contract

3-39  provides industrial insurance coverage. The terms and conditions

3-40  must include, without limitation:

3-41      (a) A definition of the site of the construction project that:

3-42          (1) Includes an area with a diameter of not more than 1

3-43  mile;

3-44          (2) Delineates clearly the area within which coverage is

3-45  provided; and

4-1       [(2)] (3) Is reasonably contiguous to the actual physical site

4-2  of the [construction project;] fixed work or structure being

4-3  constructed or the portion of the fixed work or structure upon

4-4  which construction work is being performed; and

4-5  (b) A description of the scope and details of the construction

4-6  project and the duration of industrial insurance coverage that is

4-7  provided for the project;

4-8  4.  A list in which the owner, principal contractor, construction

4-9  manager, contractors and subcontractors of the construction project

4-10  are set forth as named insureds; and

4-11      5.  A provision setting forth the penalties to which the owner,

4-12  principal contractor, construction manager, contractors and

4-13  subcontractors of the construction project may be subject if such

4-14  persons or entities fail to comply with the provisions relating to

4-15  safety and the administration of claims for industrial insurance that

4-16  are required pursuant to NRS 616B.725 and 616B.727.

4-17      Sec. 9.  This act becomes effective on July 1, 2003.

 

4-18  H