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 board may establish a program for the issuance of a

1-4 license in an expedited manner. The board shall not allow the operation

1-5 of the program for the issuance of a license in an expedited manner to

1-6 affect adversely the amount of time the board requires to issue any other

1-7 contractor’s license.

2-1 Sec. 3. 1. If an applicant wishes to have his license issued in an

2-2 expedited manner, he must pay a fee for an application equal to four

2-3 times the amount of the fee regularly paid for an application pursuant to

2-4 subsection 1 of NRS 624.280.

2-5 2. The applicant who wishes to have his license issued in an

2-6 expedited manner must pay one-half of the fee required pursuant to

2-7 subsection 1 when he submits the application and the other one-half of

2-8 the fee when the board issues the license.

2-9 Sec. 4. 1. A contractor may apply to the board to have his license

2-10 be placed on inactive status on a form provided by the board. The board

2-11 may grant the application if the applicant is in good standing and has

2-12 met all requirements for the issuance or renewal of a contractor’s license

2-13 as of the date of the application.

2-14 2. If the application is granted, the applicant shall not engage in any

2-15 work or activities that require a contractor’s license in this state unless he

2-16 is returned to active status.

2-17 3. A person whose license has been placed on inactive status

2-18 pursuant to this section is exempt from:

2-19 (a) The requirement to execute a bond pursuant to NRS 624. 270; and

2-20 (b) The requirement to qualify in regard to his experience and

2-21 knowledge pursuant to NRS 624.260.

2-22 4. The inactive status of a license is valid for 5 years after the date

2-23 that the inactive status is granted.

2-24 5. The board shall not refund any portion of the renewal fee of a

2-25 contractor’s license that was paid before the license was placed on

2-26 inactive status.

2-27 6. The board shall adopt regulations prescribing the:

2-28 (a) Procedures for making an application pursuant to this section;

2-29 (b) Procedures and terms upon which a person whose license has

2-30 been placed on inactive status may resume work or activities that require

2-31 a contractor’s license; and

2-32 (c) Fees for the renewal of the inactive status of a license.

2-33 Sec. 5. NRS 624.120 is hereby amended to read as follows:

2-34 624.120 The board shall adopt a seal for its own use. The seal must

2-36 Nevada." The executive officer has the care and custody of the seal. A

2-37 person shall not use, copy or reproduce the seal in any way not

2-38 authorized by this chapter or the regulations of the board.

2-39 Sec. 6. NRS 624.220 is hereby amended to read as follows:

2-40 624.220 1. The board may adopt regulations necessary to effect the

2-42 with established usage and procedure as found in the construction business,

3-1 and may limit the field and scope of the operations of a licensed contractor

3-2 to those in which he is classified and qualified to engage as defined by NRS

3-3 624.215 and the regulations of the board.

3-4 2. The board [may] shall limit the field and scope of the operations of

3-5 a licensed contractor by establishing a monetary limit on a contractor’s

3-6 license, and the limit must be the maximum contract a licensed contractor

3-7 may undertake on one or more construction contracts on a single

3-8 construction site or subdivision site for a single client. The board may take

3-9 any other action designed to limit the field and scope of the operations of a

3-10 contractor as may be necessary to protect the health, safety and general

3-11 welfare of the public. The limit [, if any,] must be determined after

3-12 consideration of the factors set forth in NRS 624.260, 624.263 and 624.265

3-13 [.] and any other factors that the board determines are necessary to

3-14 assess or project the future financial solvency of the contractor.

3-15 3. A licensed contractor may request that the board increase the

3-16 monetary limit on his license, either on a permanent basis or for a single

3-17 construction project. A request submitted to the board pursuant to this

3-18 subsection must be in writing on a form prescribed by the board and

3-19 accompanied by such supporting documentation as the board may

3-20 require. If a request submitted pursuant to this section is for a single

3-21 construction project, the request must be submitted to the board at least 2

3-22 working days before the date on which the contractor intends to submit

3-23 his bid for the project.

3-24 4. Nothing contained in this section prohibits a specialty contractor

3-25 from taking and executing a contract involving the use of two or more

3-26 crafts or trades, if the performance of the work in the crafts or trades, other

3-27 than in which he is licensed, is incidental and supplemental to the

3-28 performance of work in the craft for which the specialty contractor is

3-29 licensed.

3-30 Sec. 7. NRS 624.260 is hereby amended to read as follows:

3-31 624.260 1. The board shall require an applicant or licensed

3-43 officer or member of the personnel of the applicant firm.

4-1 If an applicant or licensed contractor intends to qualify pursuant to this

4-2 subsection by the appearance of another person, the applicant or licensed

4-3 contractor shall submit to the board such information as the board

4-4 determines is necessary to demonstrate the duties and responsibilities of

4-5 the other person so appearing with respect to the supervision and control

4-6 of the operations of the applicant relating to construction.

4-7 3. The natural person qualifying on behalf of another natural person or

4-8 firm under paragraphs (a) and (b) of subsection 2 must prove that he is a

4-9 bona fide member or employee of that person or firm and when his

4-10 principal or employer is actively engaged as a contractor shall exercise

4-11 authority in connection with his principal or employer’s contracting

4-12 business in the following manner:

4-13 (a) To make technical and administrative decisions;

4-14 (b) To hire, superintend, promote, transfer, lay off, discipline or

4-15 discharge other employees and to direct them, either by himself or through

4-16 others, or effectively to recommend such action on behalf of his principal

4-17 or employer; and

4-18 (c) To devote himself solely to his principal or employer’s business and

4-19 not to take any other employment which would conflict with his duties

4-20 under this subsection.

4-21 4. A natural person may not qualify on behalf of another for more than

4-22 one active license unless:

4-23 (a) One person owns at least 25 percent of each licensee for which he

4-24 qualifies; or

4-25 (b) One licensee owns at least 25 percent of the other licensee.

4-26 5. Except as otherwise provided in subsection 6, in addition to the

4-27 other requirements set forth in this section, each applicant for licensure

4-28 as a contractor must have had, within the 10 years immediately

4-29 preceding the filing of his application for licensure, at least 4 years of

4-30 experience as a journeyman, foreman, supervising employee or

4-31 contractor in the specific classification in which he is applying for

4-32 licensure. Training received in a program offered at an accredited

4-33 college or university or an equivalent program approved by the board

4-34 may be used to satisfy not more than 3 years of experience required

4-35 pursuant to this subsection.

4-36 6. If the applicant who is applying for licensure has previously

4-37 qualified for a contractor’s license in the same classification in which he

4-38 is applying for licensure, the experience required pursuant to subsection

4-39 5 need not be accrued within the 10 years immediately preceding the

4-40 application.

4-41 7. As used in this section, "journeyman" means a person who:

4-42 (a) Is fully qualified to perform, without supervision, work in the

4-43 classification in which he is applying for licensure; or

5-1 (b) Has successfully completed:

5-2 (1) A program of apprenticeship for the classification in which he is

5-3 applying for licensure that has been approved by the state apprenticeship

5-4 council; or

5-5 (2) An equivalent program approved by the board.

5-6 Sec. 8. NRS 624.265 is hereby amended to read as follows:

5-7 624.265 An applicant for a contractor’s license or a licensed

5-24 made.

5-25 Sec. 9. NRS 624.273 is hereby amended to read as follows:

5-26 624.273 1. Each bond or deposit required by NRS 624.270 must be

5-42 the bond or deposit 2 years after the commission of the act on which the

6-1 action is based. If an action is commenced on the bond, the surety that

6-2 executed the bond shall notify the board of the action within 30 days

6-3 after the date that:

6-4 (a) The surety is served with a complaint and summons; or

6-5 (b) The action is commenced,

6-6 whichever occurs first.

6-7 3. Upon receiving a request from a person for whose benefit a bond or

6-8 deposit is required, the board shall notify him that:

6-9 (a) A bond is in effect or that a deposit has been made, and the amount

6-10 of either;

6-11 (b) There is an action against a bond, if that is the case, and the court,

6-12 the title and number of the action and the amount sought by the plaintiff;

6-13 and

6-14 (c) There is an action against the board, if that is the case, and the

6-15 amount sought by the plaintiff.

6-16 4. If a surety, or in the case of a deposit, the board, desires to make

6-17 payment without awaiting court action, the amount of the bond or deposit

6-18 must be reduced to the extent of any payment made by the surety or the

6-19 board in good faith under the bond or deposit. Any payment must be based

6-20 on written claims received by the surety or board before the court action.

6-21 5. The surety or the board may bring an action for interpleader against

6-22 all claimants upon the bond or deposit. If [it does so, it must] an action for

6-23 interpleader is commenced, the surety or the board must serve each

6-24 known claimant and publish notice of the action at least once each week

6-25 for 2 weeks in a newspaper of general circulation in the county where the

6-26 contractor has his principal place of business. The surety [or the board] is

6-27 entitled to deduct its costs of the action, including [attorney’s fees and]

6-28 publication, from its liability under the bond . [or] The board is entitled to

6-29 deduct its costs of the action, including attorney’s fees and publication,

6-30 from the deposit.

6-31 6. A claim of any employee of the contractor for labor is a preferred

6-32 claim against a bond or deposit. If any bond or deposit is insufficient to pay

6-33 all claims for labor in full, the sum recovered must be distributed among all

6-34 claimants for labor in proportion to the amounts of their respective claims.

6-35 Partial payment of claims is not full payment, and the claimants may bring

6-36 actions against the contractor for the unpaid balances.

6-37 7. Claims, other than claims for labor, against a bond or deposit have

6-38 equal priority, except where otherwise provided by law, and if the bond or

6-39 deposit is insufficient to pay all of those claims in full, they must be paid

6-40 pro rata. Partial payment of claims is not full payment, and the claimants

6-41 may bring actions against the contractor for the unpaid balances.

7-1 Sec. 10. NRS 624.275 is hereby amended to read as follows:

7-2 624.275 1. [The] With respect to a surety bond that a licensed

7-26 (b) The bond is canceled [.] , if the notice was provided to the

7-27 contractor pursuant to subsection 3.

7-28 Sec. 11. NRS 624.280 is hereby amended to read as follows:

7-29 624.280 The board may adopt regulations fixing the fee for an

7-34 3. An examination must not exceed $300.

7-35 Sec. 12. NRS 624.3015 is hereby amended to read as follows:

7-36 624.3015 The following acts, among others, constitute cause for

8-1 3. Knowingly entering into a contract with a contractor while that

8-2 contractor is not licensed, or bidding to contract or entering into a contract

8-3 with a contractor for work in excess of his limit or beyond the scope of his

8-4 license.

8-5 4. Constructing or repairing a mobile home, manufactured home or

8-6 commercial coach, unless the contractor:

8-7 (a) Is licensed pursuant to NRS 489.311; or

8-8 (b) Owns, leases or rents the mobile home, manufactured home or

8-9 commercial coach.

8-10 5. Engaging in any work or activities that require a contractor’s

8-11 license while the license is placed on inactive status pursuant to section 4

8-12 of this act.

8-13 Sec. 13. NRS 624.310 is hereby amended to read as follows:

8-14 624.310 1. Except as otherwise provided in subsection 4, if the board

8-33 suspends his license.

8-34 Sec. 14. This act becomes effective upon passage and approval.