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

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

1-3 Sec. 2. 1. A public body shall not accept a bid on a contract for a

1-4 public work unless the person who submits the bid has qualified

1-5 pursuant to section 4 of this act to bid on that contract.

1-6 2. The governing body of each local government that sponsors or

1-7 finances a public work shall adopt criteria for the qualification of bidders

1-8 on contracts for public works of the local government.

1-9 3. The state public works board shall adopt criteria for the

1-10 qualification of bidders on contracts for public works of this state. The

1-11 criteria adopted by the state public works board pursuant to this

1-12 subsection must be used by the state public works board and any other

1-13 public agency of this state that solicits bids for and awards a contract for

1-14 a public work.

1-15 Sec. 3. The criteria adopted pursuant to section 2 of this act must

1-16 include:

1-17 1. The criteria for approval that the state public works board
1-18 or the governing body must consider in determining whether an

2-1 applicant is qualified to bid on a contract for a public work. The criteria

2-2 for approval must include:

2-3 (a) The financial ability of the applicant to perform the contract;

2-4 (b) Whether the applicant possesses the equipment to perform the

2-5 contract;

2-6 (c) Whether the applicant has a sufficient number of experienced

2-7 persons to perform the contract;

2-8 (d) Whether the applicant has breached any contracts with a public

2-9 agency or person in this state or any other state;

2-10 (e) Whether the applicant has been disqualified from being awarded

2-11 the contract pursuant to NRS 338.017 or 338.145 or for any other

2-12 reason; and

2-13 (f) Any other factors that the state public works board or governing

2-14 body considers necessary in making its determination whether an

2-15 applicant is qualified to bid on a contract for a public work.

2-16 2. Any other criteria that the state public works board or the

2-17 governing body of a local government considers necessary in making its

2-18 determination whether an applicant is qualified to bid on a contract for a

2-19 public work.

2-20 Sec. 4. 1. A person who wishes to qualify as a bidder on a contract

2-21 for a public work must submit an application to the state public works

2-22 board or the governing body.

2-23 2. Upon receipt of an application pursuant to subsection 1, the state

2-24 public works board or the governing body shall:

2-25 (a) Investigate the applicant to determine whether he is qualified to

2-26 bid on the contract; and

2-27 (b) After conducting the investigation, determine whether the

2-28 applicant is qualified to bid on the contract. The determination must be

2-29 made within 30 days after receipt of the application.

2-30 3. The state public works board or the governing body shall notify

2-31 each applicant in writing of its determination. If an application is denied,

2-32 the notice must set forth the reasons for the denial and inform the

2-33 applicant of his right to a hearing pursuant to section 5 of this act.

2-34 4. The state public works board or the governing body shall not use

2-35 any criteria other than the criteria adopted pursuant to section 2 of this

2-36 act in determining whether to approve or deny an application.

2-37 Sec. 5. 1. If, within 10 days after receipt of the notice denying his

2-38 application, the applicant files a written request for a hearing with the

2-39 state public works board or the governing body of the local government,

2-40 the board or governing body shall set the matter for a hearing within 10

2-41 days after receipt of the request. The hearing must be held not later than

2-42 20 days after the receipt of the request for a hearing.

3-1 2. The hearing must be held at a time and place prescribed by the

3-2 board or governing body. At least 10 days before the date set for the

3-3 hearing, the board or governing body shall serve the applicant with

3-4 written notice of the hearing. The notice may be served by personal

3-5 delivery to the applicant or by certified mail to the last known business or

3-6 residential address of the applicant.

3-7 3. The board or governing body shall issue a decision on the matter

3-8 within 5 days after the hearing and notify the applicant, in writing, of its

3-9 decision within 5 days after it is issued. The decision of the board or

3-10 governing body is a final decision for purposes of judicial review.

3-11 Sec. 6. NRS 338.010 is hereby amended to read as follows:

3-12 338.010 As used in this chapter:

3-43 with public funds; and

4-1 (10) [All] Any other publicly owned works and property whose cost

4-2 as a whole exceeds $20,000. Each separate unit which is a part of a project

4-3 is included in the cost of the project for the purpose of determining

4-4 whether a project meets this threshold.

4-5 (b) A building for the University and Community College System of

4-6 Nevada of which 25 percent or more of the costs of the building as a whole

4-7 are paid from money appropriated by [the] this state or from federal

4-8 money.

4-9 6. "Wages" means:

4-10 (a) The basic hourly rate of pay; and

4-11 (b) The amount of pension, health and welfare, vacation and holiday

4-12 pay, the cost of apprenticeship training or other similar programs or other

4-13 bona fide fringe benefits which are a benefit to the workman.

4-14 7. "Workman" means a skilled mechanic, skilled workman,

4-15 semiskilled mechanic, semiskilled workman or unskilled workman.

4-16 Sec. 7. NRS 338.143 is hereby amended to read as follows:

4-17 338.143 1. Except as otherwise provided in subsection [6] 7 and

4-43 the contract must be submitted.

5-1 4. Approved plans and specifications for the bids must be on file at a

5-2 place and time stated in the advertisement for the inspection of all persons

5-3 desiring to bid thereon and for other interested persons. Contracts for the

5-4 project must be awarded on the basis of bids received.

5-5 [4. Any or all]

5-6 5. Any bids received in response to an advertisement for bids may be

5-7 rejected if the person responsible for awarding the contract determines

5-8 that:

5-9 (a) The bidder is not a qualified bidder pursuant to section 4 of this

5-10 act;

5-11 (b) The bidder is not responsive [or responsible;

5-12 (b)] ;

5-13 (c) The quality of the services, materials, equipment or labor offered

5-14 does not conform to the approved plan or specifications; or

5-15 [(c)] (d) The public interest would be served by such a rejection.

5-16 [5.] 6. Before an agency or political subdivision of the state may

5-17 commence a project subject to the provisions of this section, based upon a

5-18 determination that the public interest would be served by rejecting any bids

5-19 received in response to an advertisement for bids, it shall prepare and make

5-20 available for public inspection a written statement containing:

5-21 (a) A list of all persons, including supervisors, [who] whom the agency

5-22 or political subdivision intends to assign to the project, together with their

5-23 classifications and an estimate of the direct and indirect costs of their labor;

5-24 (b) A list of all equipment that the agency or political subdivision

5-25 intends to use on the project, together with an estimate of the number of

5-26 hours each item of equipment will be used and the hourly cost to use each

5-27 item of equipment;

5-28 (c) An estimate of the cost of administrative support for the persons

5-29 assigned to the project;

5-30 (d) An estimate of the total cost of the project; and

5-31 (e) An estimate of the amount of money the agency or political

5-32 subdivision expects to save by rejecting the bids and performing the

5-33 project itself.

5-34 [6.] 7. This section does not apply to:

5-35 (a) Any utility subject to the provisions of chapter 318 or 710 of NRS;

5-36 (b) Any work of construction, reconstruction, improvement and

5-37 maintenance of highways subject to NRS 408.323 or 408.327;

5-38 (c) Normal maintenance of the property of a school district; or

5-39 (d) The Las Vegas Valley water district created pursuant to chapter 167,

5-40 Statutes of Nevada 1947.

5-41 Sec. 8. NRS 338.143 is hereby amended to read as follows:

5-42 338.143 1. Except as otherwise provided in subsection [6,] 7, an

5-43 agency or political subdivision of [the] this state, or a public officer, public

6-1 employee or other person responsible for awarding a contract for the

6-2 construction, alteration or repair of a public work, shall not:

6-3 (a) Commence such a project, for which the estimated cost exceeds

6-4 $100,000, unless it advertises in a newspaper of general circulation in [the]

6-5 this state for bids for the project; or

6-6 (b) Divide such a project into separate portions to avoid the

6-7 requirements of paragraph (a).

6-8 2. Except as otherwise provided in subsection [6,] 7, a public body that

6-9 maintains a list of properly licensed contractors who are interested in

6-10 receiving offers to bid on public works projects for which the estimated

6-11 cost is more than $25,000 but less than $100,000 shall solicit bids from not

6-12 more than three of the contractors on the list for a contract of that value for

6-13 the construction, alteration or repair of a public work. The public body

6-14 shall select contractors from the list in such a manner as to afford each

6-15 contractor an equal opportunity to bid on a public works project. A

6-16 properly licensed contractor must submit a written request annually to the

6-17 public body to remain on the list. Offers for bids which are made pursuant

6-18 to this subsection must be sent by certified mail.

6-19 3. Each advertisement for bids must include a provision that sets

6-20 forth:

6-21 (a) The requirement that a contractor must be qualified pursuant to

6-22 section 4 of this act to bid on the contract; and

6-23 (b) The period during which an application to qualify as a bidder on

6-24 the contract must be submitted.

6-25 4. Approved plans and specifications for the bids must be on file at a

6-26 place and time stated in the advertisement for the inspection of all persons

6-27 desiring to bid thereon and for other interested persons. Contracts for the

6-28 project must be awarded on the basis of bids received.

6-29 [4. Any or all]

6-30 5. Any bids received in response to an advertisement for bids may be

6-31 rejected if the person responsible for awarding the contract determines

6-32 that:

6-33 (a) The bidder is not a qualified bidder pursuant to section 4 of this

6-34 act;

6-35 (b) The bidder is not responsive [or responsible;

6-36 (b)] ;

6-37 (c) The quality of the services, materials, equipment or labor offered

6-38 does not conform to the approved plan or specifications; or

6-39 [(c)] (d) The public interest would be served by such a rejection.

6-40 [5.] 6. Before an agency or political subdivision of the state may

6-41 commence a project subject to the provisions of this section, based upon a

6-42 determination that the public interest would be served by rejecting any bids

7-1 received in response to an advertisement for bids, it shall prepare and make

7-2 available for public inspection a written statement containing:

7-3 (a) A list of all persons, including supervisors, [who] whom the agency

7-4 or political subdivision intends to assign to the project, together with their

7-5 classifications and an estimate of the direct and indirect costs of their labor;

7-6 (b) A list of all equipment that the agency or political subdivision

7-7 intends to use on the project, together with an estimate of the number of

7-8 hours each item of equipment will be used and the hourly cost to use each

7-9 item of equipment;

7-10 (c) An estimate of the cost of administrative support for the persons

7-11 assigned to the project;

7-12 (d) An estimate of the total cost of the project; and

7-13 (e) An estimate of the amount of money the agency or political

7-14 subdivision expects to save by rejecting the bids and performing the

7-15 project itself.

7-16 [6.] 7. This section does not apply to:

7-17 (a) Any utility subject to the provisions of chapter 318 or 710 of NRS;

7-18 (b) Any work of construction, reconstruction, improvement and

7-19 maintenance of highways subject to NRS 408.323 or 408.327;

7-20 (c) Normal maintenance of the property of a school district; or

7-21 (d) The Las Vegas Valley water district created pursuant to chapter 167,

7-22 Statutes of Nevada 1947.

7-23 Sec. 9. NRS 338.145 is hereby amended to read as follows:

7-24 338.145 1. A public body awarding a contract for a public work

7-38 new bids be submitted.

7-39 Sec. 10. NRS 338.147 is hereby amended to read as follows:

7-40 338.147 1. A public body shall award a contract for a public work to

7-43 subsection 5, for the purposes of this section, a contractor who:

8-1 (a) Has been [found] determined by the public body to be a [responsible

8-2 contractor by the public body;] qualified bidder pursuant to section 4 of

8-3 this act; and

8-4 (b) At the time he submits his bid, provides to the public body proof of

8-5 the payment of:

8-6 (1) The sales and use taxes imposed pursuant to chapters 372, 374

8-7 and 377 of NRS on materials used for construction of not less than $5,000

8-8 for each consecutive 12-month period for 60 months immediately

8-9 preceding the submission of his bid;

8-10 (2) The motor vehicle privilege tax imposed pursuant to chapter 371

8-11 of NRS on the vehicles used in the operation of his business of not less

8-12 than $5,000 for each consecutive 12-month period for 60 months

8-13 immediately preceding the submission of his bid; or

8-14 (3) Any combination of [such] those sales and use taxes and motor

8-15 vehicle privilege tax,

8-16 shall be deemed to have submitted a better bid than a competing contractor

8-17 who has not provided proof of the payment of those taxes if the amount of

8-18 his bid is not more than 5 percent higher than the amount bid by the

8-19 competing contractor.

8-20 3. A contractor who has previously provided the public body awarding

8-21 a contract with the proof of payment required pursuant to subsection 2 may

8-22 update [such] that proof on or before April 1, July 1, September 1 and

8-23 December 1 rather than with each bid.

8-24 4. If any federal statute or regulation precludes the granting of federal

8-25 assistance or reduces the amount of that assistance for a particular public

8-26 work because of the provisions of subsection 2, those provisions do not

8-27 apply [insofar as their] if the application of those provisions would

8-28 preclude or reduce federal assistance for that work. The provisions of

8-29 subsection 2 do not apply to any contract for a public work which is

8-30 expected to cost less than $250,000.

8-31 5. Except as otherwise provided in subsection 6, if a bid is submitted

8-32 by two or more contractors as a joint venture or by one of them as a joint

8-33 venturer, the provisions of subsection 2 apply only if both or all of the joint

8-34 venturers separately meet the requirements of that subsection.

8-35 6. Except as otherwise provided in subsection 8, if a bid is submitted

8-36 by a joint venture and one or more of the joint venturers has responsibility

8-37 for the performance of the contract as described in subsection 7, the

8-38 provisions of subsection 2 apply only to those joint venturers who have

8-39 [such] that responsibility.

8-40 7. For the purposes of subsection 6, a joint venturer has responsibility

8-41 for the performance of a contract if he has at least one of the following

8-42 duties or obligations delegated to him in writing in the contract creating the

8-43 joint venture:

9-1 (a) Supplying the labor necessary to perform the contract and paying

9-2 the labor and any related taxes and benefits;

9-3 (b) Supplying the equipment necessary to perform the contract and

9-4 paying any charges related to the equipment;

9-5 (c) Contracting with and making payments to any subcontractors; or

9-6 (d) Performing the recordkeeping for the joint venture and making any

9-7 payments to persons who provide goods or services related to the

9-8 performance of the contract.

9-9 8. The provisions of subsection 6 do not apply to a joint venture which

9-10 is formed for the sole purpose of circumventing any of the requirements of

9-11 this section.

9-12 Sec. 11. NRS 341.147 is hereby repealed.

9-13 Sec. 12. 1. This section and sections 1 to 7, inclusive, 9, 10 and 11

9-14 of this act become effective on October 1, 1999.

9-15 2. Section 8 of this act becomes effective at 12:01 a.m. on May 1,

9-16 2013.

9-17 3. Section 7 of this act expires by limitation on May 1, 2013.

9-18 TEXT OF REPEALED SECTION

9-19 341.147 Qualification of bidders on contracts for public works:

9-38 (f) The safety program and safety record of the applicant.

10-1 3. The regulations adopted pursuant to this section must include,

10-2 without limitation, a procedure and deadlines for:

10-3 (a) Investigating an applicant and determining whether he is qualified to

10-4 bid on a contract for a public works project of this state based on the

10-5 criteria established pursuant to this section;

10-6 (b) Notifying an applicant of the determination of the board regarding

10-7 his application; and

10-8 (c) A hearing and appeal by an applicant whose application for

10-9 qualification has been denied by the board.

10-10 4. The board shall, not less than 45 days before advertising for bids

10-11 concerning a public works project, notify by advertisement in a newspaper

10-12 of general circulation in this state that the contract for the public works

10-13 project requires a determination that the applicant is qualified to bid on the

10-14 contract pursuant to this section.

10-15 5. An applicant determined to be qualified by the board pursuant to

10-16 this section must apply each year to renew his qualification in the manner

10-17 provided in the regulations adopted pursuant to this section.

10-18 6. Any information and data pertaining to the net worth of an applicant

10-19 which are gathered by or provided to the board for a determination of

10-20 qualification pursuant to this section are confidential and not open to

10-21 public inspection.