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).

1-1 Section 1. Chapter 338 of NRS is hereby amended by adding thereto

1-14 resident of this state;

2-1 (3) A general or limited partnership, limited-liability company or

2-2 any other business entity, the entity is organized pursuant to the laws of

2-3 this state and more than 50 percent of any interest in the entity is

2-4 beneficially owned by a natural person who is a resident of this state; or

2-5 (4) A trust, more than 50 percent of the beneficial interest in the

2-6 trust is owned by a natural person who is a resident of this state; or

2-7 (b) The contractor has paid:

2-8 (1) The sales and use taxes imposed pursuant to chapters 372, 374

2-9 and 377 of NRS on materials used for construction in this state,

2-10 including construction occurring on land managed by the Federal

2-11 Government or on an Indian reservation or colony in this state, of not

2-12 less than $5,000 for each consecutive 12-month period for 60 months

2-13 immediately preceding the submission of his application for certification

2-14 pursuant to this section;

2-15 (2) The motor vehicle privilege tax imposed pursuant to chapter 371

2-16 of NRS on the vehicles used in the operation of his business of not less

2-17 than $5,000 for each consecutive 12-month period for 60 months

2-18 immediately preceding the submission of his application for certification

2-19 pursuant to this section; or

2-20 (3) Any combination of those sales and use taxes and motor vehicle

2-21 privilege tax.

2-22 3. Except as otherwise provided in this subsection, in determining

2-23 whether a contractor has paid the taxes required for certification as a

2-24 qualified resident contractor pursuant to paragraph (b) of subsection 2,

2-25 the board shall award credit to a contractor for the amount of any sales

2-26 and use taxes paid on his behalf by a lender or owner of the contractor or

2-27 by an agent of that owner. If certification is requested for a joint venture,

2-28 each joint venturer is entitled to credit for the taxes paid by the joint

2-29 venture in proportion to his percentage of ownership of the joint venture.

2-30 The board shall not award credit pursuant to this subsection if the taxes

2-31 for which credit is requested are paid by a subcontractor or parent

2-32 company, subsidiary or other business entity of the contractor.

2-33 4. If the board certifies a contractor as a qualified resident

2-34 contractor pursuant to the provisions of this section, the board shall, at

2-35 the time the contractor is certified, establish a date on which the

2-36 contractor must submit an affidavit to the board pursuant to subsection

2-37 5. The board shall notify the contractor of the date as soon as practicable

2-38 after the board establishes the date.

2-39 5. A contractor who is certified pursuant to the provisions of:

2-40 (a) Paragraph (a) of subsection 2 shall:

2-41 (1) On or before the date established by the board for that

2-42 contractor pursuant to subsection 4:

3-1 (I) Submit an affidavit to the board which states that he has

3-2 complied with the requirements for certification pursuant to the

3-3 provisions of that paragraph; and

3-4 (II) If the address of a natural person specified by the contractor

3-5 in an application submitted pursuant to subsection 1 has changed since

3-6 the application was submitted, notify the board of that change; and

3-7 (2) Notify the board immediately if any changes occur that will

3-8 disqualify the contractor for that certification; or

3-9 (b) Paragraph (b) of subsection 2 shall, on or before the date

3-10 established by the board for that contractor pursuant to subsection 4,

3-11 submit an affidavit to the board which states that he has paid the taxes

3-12 specified in that paragraph for the 12-month period immediately

3-13 preceding the date he submits the affidavit.

3-14 6. If a contractor fails to comply with the provisions of subsection 5,

3-15 the contractor:

3-16 (a) Is not a qualified resident contractor for the purposes of NRS

3-17 338.147; and

3-18 (b) May not claim a preference pursuant to that section,

3-19 unless he reapplies to the board and is certified as a qualified resident

3-20 contractor by the board pursuant to the provisions of this section.

3-21 7. The board may:

3-22 (a) By regulation establish a fee for certifying a contractor pursuant

3-23 to the provisions of this section. The fee must not exceed the cost of

3-24 certifying the contractor. (b) Adopt regulations necessary to carry out

3-25 those provisions.

3-26 8. As used in this section, "board" means the state contractors’

3-27 board.

3-28 Sec. 2. NRS 338.147 is hereby amended to read as follows:

3-29 338.147 1. A public body shall award a contract for a public work to

4-1 (2) The motor vehicle privilege tax imposed pursuant to chapter 371

4-2 of NRS on the vehicles used in the operation of his business of not less

4-3 than $5,000 for each consecutive 12-month period for 60 months

4-4 immediately preceding the submission of his bid; or

4-5 (3) Any combination of such sales and use taxes and motor vehicle

4-6 privilege tax,] and, before the date he submits his bid, has been certified

4-7 as a qualified resident contractor by the state contractors’ board

4-8 pursuant to section 1 of this act shall be deemed to have submitted a better

4-9 bid than a competing contractor who has not [provided proof of the

4-10 payment of those taxes if the] been certified pursuant to that section if:

4-11 (a) The amount of his bid is not more than 5 percent higher than the

4-12 amount bid by the competing contractor [.

4-13 3. A contractor who has previously provided the public body awarding

4-14 a contract with the proof of payment required pursuant to subsection 2 may

4-15 update such proof on or before April 1, July 1, September 1 and December

4-16 1 rather than with each bid.

4-17 4.] ; and

4-18 (b) Not later than 5 p.m. on the next business day after the day the

4-19 bids for the public work are opened by the public body, he submits to the

4-20 public body a written and irrevocable bid in an amount that is equal to

4-21 the amount of the bid submitted by the competing contractor.

4-22 3. If any federal statute or regulation precludes the granting of federal

4-23 assistance or reduces the amount of that assistance for a particular public

4-24 work because of the provisions of subsection 2, those provisions do not

4-25 apply [insofar as their] if the application of those provisions would

4-26 preclude or reduce federal assistance for that work. The provisions of

4-27 subsection 2 do not apply to any contract for a public work which is

4-28 expected to cost less than $250,000.

4-29 [5.] 4. Except as otherwise provided in subsection [6,] 5, if a bid is

4-30 submitted by two or more contractors as a joint venture or by one of them

4-31 as a joint venturer, the provisions of subsection 2 apply only if both or all

4-32 of the joint venturers separately meet the requirements of that subsection.

4-33 [6.] 5. Except as otherwise provided in subsection [8,] 7, if a bid is

4-34 submitted by a joint venture and one or more of the joint venturers has

4-35 responsibility for the performance of the contract as described in

4-36 subsection [7,] 6, the provisions of subsection 2 apply only to those joint

4-37 venturers who have [such responsibility.

4-38 7.] that responsibility.

4-39 6. For the purposes of subsection [6,] 5, a joint venturer has

4-40 responsibility for the performance of a contract if he has at least one of the

4-41 following duties or obligations delegated to him in writing in the contract

4-42 creating the joint venture:

5-1 (a) Supplying the labor necessary to perform the contract and paying

5-2 the labor and any related taxes and benefits;

5-3 (b) Supplying the equipment necessary to perform the contract and

5-4 paying any charges related to the equipment;

5-5 (c) Contracting with and making payments to any subcontractors; or

5-6 (d) Performing the recordkeeping for the joint venture and making any

5-7 payments to persons who provide goods or services related to the

5-8 performance of the contract.

5-9 [8.] 7. The provisions of subsection [6] 5 do not apply to a joint

5-10 venture which is formed for the sole purpose of circumventing any of the

5-11 requirements of this section.

5-12 Sec. 3. This act becomes effective on January 1, 2000.