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 624 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. The attorney general shall take such action as is necessary to

1-4 ensure compliance with this chapter and the regulations of the board,

1-5 including, without limitation, commencing proceedings in a court of

1-6 competent jurisdiction, if appropriate.

1-7 Sec. 3. 1. The board may adopt such reasonable bylaws, rules of

1-8 procedure and regulations as are necessary to carry out the provisions of

1-9 this chapter.

1-10 2. In addition to complying with the procedure set forth in chapter

1-11 233B of NRS, at least 60 days before the hearing for a proposed bylaw,

1-12 rule or regulation, the board shall make a good-faith effort to mail to

1-13 each person licensed pursuant to this chapter, to the address shown in

1-14 the records of the board for that person:

2-1 (a) A copy of the proposed bylaw, rule or regulation; and

2-2 (b) A notice that sets forth the date, time and place of the hearing for

2-3 the proposed bylaw, rule or regulation.

2-4 If the board fails to make such an effort, the bylaw, rule or regulation is

2-5 not effective.

2-6 Sec. 4. On or before September 1 of each even-numbered year, the

2-7 board shall:

2-8 1. Prepare a written report concerning the activity engaged in by the

2-9 board pursuant to the provisions of this chapter during the preceding

2-10 biennium; and

2-11 2. Submit the report to the governor and to the director of the

2-12 legislative counsel bureau for transmittal to the next regular session of

2-13 the Nevada legislature.

2-14 Sec. 5. NRS 624.050 is hereby amended to read as follows:

2-15 624.050 1. [Six members of the board must each:

2-16 (a) At] The board must be composed of:

2-17 (a) Two members who operate as general contractors and one

2-18 member who operates exclusively as a subcontractor, each of whom at

2-19 the time of his appointment [, hold] :

2-20 (1) Holds an unexpired license to operate as a contractor [.

2-21 (b) Be] ;

2-22 (2) Has been a contractor actively engaged in the contracting

2-23 business [and must have been so engaged] for not less than 5 years

2-24 immediately preceding [the date of] his appointment [.

2-25 (c) Have] ; and

2-26 (3) Has been a citizen and resident of the State of Nevada for [at

2-27 least] not less than 5 years [next] immediately preceding his appointment.

2-28 [2.] (b) One member who is a building inspector employed by a county

2-29 whose population is 100,000 or more.

2-30 (c) One member who is a certified public accountant.

2-31 (d) One member who is an architect registered pursuant to chapter

2-32 623 of NRS or a professional engineer licensed pursuant to chapter 625

2-33 of NRS.

2-34 (e) One member [of the board must be] who is a representative of the

2-35 general public.

2-36 2. The chairman of the board must be chosen from among the

2-37 members who are qualified pursuant to paragraphs (c), (d) and (e) of

2-38 subsection 1.

2-39 3. A member shall serve for a term of 4 years or until his successor

2-40 has been appointed. A member may not serve for more than two

2-41 consecutive terms.

3-1 Sec. 6. NRS 624.100 is hereby amended to read as follows:

3-2 624.100 1. The board may appoint such committees [and make such

3-25 advisory committee.

3-26 Sec. 7. NRS 624.115 is hereby amended to read as follows:

3-27 624.115 1. The board shall employ at least one person to receive

3-39 in violation of NRS 624.230.

3-40 Sec. 8. NRS 624.160 is hereby amended to read as follows:

3-41 624.160 1. The board is vested with all of the functions and duties

3-43 2. The board shall:

4-1 (a) Carry out a program of education for customers of contractors.

4-2 (b) Maintain and make known a telephone number for the public to

4-3 obtain information about self-protection from fraud in construction and

4-4 other information concerning contractors and contracting.

4-5 (c) Review and, as necessary, investigate in a timely manner each

4-6 complaint received from the general public.

4-7 3. The board may provide advisory opinions and take other actions

4-8 that are necessary for the effective administration of this chapter and the

4-9 regulations of the board.

4-10 Sec. 9. NRS 624.230 is hereby amended to read as follows:

4-11 624.230 1. It is unlawful for any person or combination of persons

4-35 submitted is void.

4-36 Sec. 10. NRS 624.300 is hereby amended to read as follows:

4-37 624.300 1. Except as otherwise provided in subsection [6,] 7, the

4-42 (d) Impose an administrative fine of not more than $10,000;

5-1 (e) Order the licensee to take action to correct a condition resulting

5-2 from an act which constitutes a cause for disciplinary action, at the

5-3 licensee’s cost; or

5-4 (f) Reprimand or take other less severe disciplinary action, including,

5-5 without limitation, increasing the amount of the surety bond or cash

5-6 deposit of the licensee,

5-7 if the licensee commits any act which constitutes a cause for disciplinary

5-8 action.

5-9 2. The board shall notify:

5-10 (a) The licensee; and

5-11 (b) Each person with whom the board knows the licensee has an

5-12 uncompleted contract,

5-13 of an action taken by the board pursuant to subsection 1. The board is

5-14 immune from civil liability for claims based on the board’s provision of

5-15 notice or failure to provide notice pursuant to this subsection.

5-16 3. If the board suspends or revokes the license of a contractor for

5-17 failure to establish financial responsibility, the board may, in addition to

5-18 any other conditions for reinstating or renewing the license, require that

5-19 each contract undertaken by the licensee for a period to be designated by

5-20 the board, not to exceed 12 months, be separately covered by a bond or

5-21 bonds approved by the board and conditioned upon the performance of and

5-22 the payment of labor and materials required by the contract.

5-23 [3.] 4. If a licensee commits a fraudulent act which is a cause for

5-24 disciplinary action under NRS 624.3016, the correction of any condition

5-25 resulting from the act does not preclude the board from taking disciplinary

5-26 action.

5-27 [4.] 5. If the board finds that a licensee has engaged in repeated acts

5-28 that would be cause for disciplinary action, the correction of any resulting

5-29 conditions does not preclude the board from taking disciplinary action

5-30 pursuant to this section.

5-31 [5.] 6. The expiration of a license by operation of law or by order or

5-32 decision of the board or a court, or the voluntary surrender of a license by

5-33 a licensee, does not deprive the board of jurisdiction to proceed with any

5-34 investigation of, or action or disciplinary proceeding against, the licensee

5-35 or to render a decision suspending or revoking the license.

5-36 [6.] 7. The board shall not take any disciplinary action pursuant to this

5-37 section regarding a constructional defect, as that term is defined in NRS

5-38 40.615, during the period in which any claim arising out of that defect is

5-39 being settled, mediated or otherwise resolved pursuant to NRS 40.600 to

5-40 40.695, inclusive, unless the disciplinary action is necessary to protect the

5-41 public health or safety.

6-1 [7.] 8. If discipline is imposed pursuant to this section, the costs of the

6-2 proceeding, including investigative costs and attorney’s fees, may be

6-3 recovered by the board.

6-4 Sec. 11. 1. The terms of office of all members of the state

6-5 contractors’ board who are serving on June 30, 1999, expire upon the

6-6 commencement of the terms of their successors appointed pursuant to

6-7 subsection 2. A member of the board may be appointed pursuant to

6-8 subsection 2 to succeed himself if he is qualified pursuant to subsection 1

6-9 of NRS 624.050 as amended by this act. For the purposes of subsection 3

6-10 of NRS 624.050 as amended by this act, the term of office for each

6-11 member beginning July 1, 1999, shall be deemed his first term of office.

6-12 2. On or before July 1, 1999, the governor shall appoint members to

6-13 the state contractors’ board as follows:

6-14 (a) Two members who are qualified pursuant to paragraph (a) of

6-15 subsection 1 of NRS 624.050 as amended by this act, whose terms of

6-16 office commence on July 1, 1999, and expire on July 1, 2001.

6-17 (b) The member who is qualified pursuant to paragraph (d) of

6-18 subsection 1 of NRS 624.050 as amended by this act, whose term of office

6-19 commences on July 1, 1999, and expires on July 1, 2001.

6-20 (c) The remaining members of the board who are qualified pursuant to

6-21 subsection 1 of NRS 624.050 as amended by this act, whose terms of

6-22 office commence on July 1, 1999, and expire on July 1, 2003.

6-23 3. After the expiration of the terms of office set forth in subsection 2,

6-24 the new or reappointed members of the state contractors’ board serve for a

6-25 term of 4 years or until their successors have been appointed, as required

6-26 by subsection 3 of NRS 624.050 as amended by this act.

6-27 Sec. 12. 1. This section and section 11 of this act become effective

6-28 upon passage and approval for purposes of appointing members to the state

6-29 contractors’ board and on July 1, 1999, for all other purposes.

6-30 2. Sections 1 to 10, inclusive, of this act become effective on July 1,

6-31 1999.