Assembly Bill No. 633–Committee on Commerce and Labor
(On Behalf of Contractors’ Board)
March 22, 1999
____________
Referred to Committee on Commerce and Labor
SUMMARY—Makes various changes to provisions concerning contractors. (BDR 54-761)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: No.
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EXPLANATION – Matter in
bolded italics is new; matter between brackets
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
1-1
Section 1. Chapter 624 of NRS is hereby amended by adding thereto1-2
the provisions set forth as sections 2 to 4.5, inclusive, of this act.1-3
Sec. 2. The board may establish a program for the issuance of a1-4
license in an expedited manner. The board shall not allow the operation1-5
of the program for the issuance of a license in an expedited manner to1-6
affect adversely the amount of time the board requires to issue any other1-7
contractor’s license.2-1
Sec. 3. 1. If an applicant wishes to have his license issued in an2-2
expedited manner, he must pay a fee for an application equal to two2-3
times the amount of the fee regularly paid for an application pursuant to2-4
subsection 1 of NRS 624.280.2-5
2. The applicant must pay one-half of the fee required pursuant to2-6
subsection 1 when he submits the application and the other one-half of2-7
the fee when the board issues the license.2-8
3. In addition to the fee required pursuant to subsection 1, the2-9
applicant shall reimburse the board for the actual costs and expenses2-10
incurred by the board in processing the application.2-11
4. The board shall adopt regulations prescribing the procedures for2-12
making an application pursuant to this section.2-13
Sec. 4. 1. A contractor may apply to the board to have his license2-14
placed on inactive status. The board may grant the application if the2-15
license is in good standing and the licensee has met all requirements for2-16
the issuance or renewal of a contractor’s license as of the date of the2-17
application.2-18
2. If the application is granted, the licensee shall not engage in any2-19
work or activities that require a contractor’s license in this state unless he2-20
is returned to active status.2-21
3. A person whose license has been placed on inactive status2-22
pursuant to this section is exempt from:2-23
(a) The requirement to execute and maintain a bond pursuant to NRS2-24
624. 270; and2-25
(b) The requirement to qualify in regard to his experience and2-26
knowledge pursuant to NRS 624.260.2-27
4. The inactive status of a license is valid for 5 years after the date2-28
that the inactive status is granted.2-29
5. The board shall not refund any portion of the renewal fee of a2-30
contractor’s license that was paid before the license was placed on2-31
inactive status.2-32
6. The board shall adopt regulations prescribing the:2-33
(a) Procedures for making an application pursuant to this section;2-34
(b) Procedures and terms upon which a person whose license has2-35
been placed on inactive status may resume work or activities that require2-36
a contractor’s license; and2-37
(c) Fees for the renewal of the inactive status of a license.2-38
Sec. 4.5. The following acts or omissions, among others, constitute2-39
cause for disciplinary action pursuant to NRS 624.300:2-40
1. Contracting, offering to contract or submitting a bid as a2-41
contractor if the contractor’s license:2-42
(a) Has been suspended or revoked pursuant to NRS 624.300; or2-43
(b) Is inactive.3-1
2. The suspension, revocation or other disciplinary action taken by3-2
another state against a contractor based on a license issued by that state3-3
if the contractor is licensed in this state or applies for a license in this3-4
state. A certified copy of the suspension, revocation or other disciplinary3-5
action taken by another state against a contractor based on a license3-6
issued by that state is conclusive evidence of that action.3-7
Sec. 5. NRS 624.120 is hereby amended to read as follows: 624.120 The board shall adopt a seal for its own use. The seal must3-9
have imprinted thereon the words "State Contractors’ Board, State of3-10
Nevada." The executive officer has the care and custody of the seal. A3-11
person shall not use, copy or reproduce the seal in any way not3-12
authorized by this chapter or the regulations of the board.3-13
Sec. 6. NRS 624.220 is hereby amended to read as follows: 624.220 1. The board3-15
effect the classification and subclassification of contractors in a manner3-16
consistent with established usage and procedure as found in the3-17
construction business, and may limit the field and scope of the operations3-18
of a licensed contractor to those in which he is classified and qualified to3-19
engage as defined by NRS 624.215 and the regulations of the board.3-20
2. The board3-21
a licensed contractor by establishing a monetary limit on a contractor’s3-22
license, and the limit must be the maximum contract a licensed contractor3-23
may undertake on one or more construction contracts on a single3-24
construction site or subdivision site for a single client. The board may take3-25
any other action designed to limit the field and scope of the operations of a3-26
contractor as may be necessary to protect the health, safety and general3-27
welfare of the public. The limit3-28
consideration of the factors set forth in NRS 624.260, 624.263 and 624.2653-29
3-30
assess or project the future financial solvency of the contractor.3-31
3. A licensed contractor may request that the board increase the3-32
monetary limit on his license, either on a permanent basis or for a single3-33
construction project. A request submitted to the board pursuant to this3-34
subsection must be in writing on a form prescribed by the board and3-35
accompanied by such supporting documentation as the board may3-36
require. If a request submitted pursuant to this section is for a single3-37
construction project, the request must be submitted to the board at least 23-38
working days before the date on which the licensed contractor intends to3-39
submit his bid for the project.3-40
4. Nothing contained in this section prohibits a specialty contractor3-41
from taking and executing a contract involving the use of two or more3-42
crafts or trades, if the performance of the work in the crafts or trades, other3-43
than in which he is licensed, is incidental and supplemental to the4-1
performance of work in the craft for which the specialty contractor is4-2
licensed.4-3
Sec. 7. NRS 624.260 is hereby amended to read as follows: 624.260 1. The board shall require an applicant or licensee to show4-5
such a degree of experience, financial responsibility and such general4-6
knowledge of the building, safety, health and lien laws of the State of4-7
Nevada and the4-8
business as the board deems necessary for the safety and protection of the4-9
public.4-10
2. An applicant or licensee may qualify in regard to his experience and4-11
knowledge in the following ways:4-12
(a) If a natural person, he may qualify by personal appearance or by the4-13
appearance of his responsible managing employee.4-14
(b) If a copartnership, a corporation or any other combination or4-15
organization, it may qualify by the appearance of the responsible managing4-16
officer or member of the personnel of the applicant firm.4-17
If an applicant or licensee intends to qualify pursuant to this subsection4-18
by the appearance of another person, the applicant or licensee shall4-19
submit to the board such information as the board determines is4-20
necessary to demonstrate the duties and responsibilities of the other4-21
person so appearing with respect to the supervision and control of the4-22
operations of the applicant or licensee relating to construction.4-23
3. The natural person qualifying on behalf of another natural person or4-24
firm under paragraphs (a) and (b) of subsection 2 must prove that he is a4-25
bona fide member or employee of that person or firm and when his4-26
principal or employer is actively engaged as a contractor shall exercise4-27
authority in connection with his principal or employer’s contracting4-28
business in the following manner:4-29
(a) To make technical and administrative decisions;4-30
(b) To hire, superintend, promote, transfer, lay off, discipline or4-31
discharge other employees and to direct them, either by himself or through4-32
others, or effectively to recommend such action on behalf of his principal4-33
or employer; and4-34
(c) To devote himself solely to his principal or employer’s business and4-35
not to take any other employment which would conflict with his duties4-36
under this subsection.4-37
4. A natural person may not qualify on behalf of another for more than4-38
one active license unless:4-39
(a) One person owns at least 25 percent of each licensee for which he4-40
qualifies; or4-41
(b) One licensee owns at least 25 percent of the other licensee.4-42
5. Except as otherwise provided in subsection 6, in addition to the4-43
other requirements set forth in this section, each applicant for licensure5-1
as a contractor must have had, within the 10 years immediately5-2
preceding the filing of his application for licensure, at least 4 years of5-3
experience as a journeyman, foreman, supervising employee or5-4
contractor in the specific classification in which he is applying for5-5
licensure. Training received in a program offered at an accredited5-6
college or university or an equivalent program accepted by the board5-7
may be used to satisfy not more than 3 years of experience required5-8
pursuant to this subsection.5-9
6. If the applicant who is applying for licensure has previously5-10
qualified for a contractor’s license in the same classification in which he5-11
is applying for licensure, the experience required pursuant to subsection5-12
5 need not be accrued within the 10 years immediately preceding the5-13
application.5-14
7. As used in this section, "journeyman" means a person who:5-15
(a) Is fully qualified to perform, without supervision, work in the5-16
classification in which he is applying for licensure; or5-17
(b) Has successfully completed:5-18
(1) A program of apprenticeship for the classification in which he is5-19
applying for licensure that has been approved by the state apprenticeship5-20
council; or5-21
(2) An equivalent program accepted by the board.5-22
Sec. 8. NRS 624.265 is hereby amended to read as follows: 624.265 An applicant for a contractor’s license or a licensed5-24
contractor and each officer, director, partner and associate thereof5-25
must possess good character. Lack of character may be established by5-26
showing that the applicant or licensed contractor, or any officer, director,5-27
partner or associate thereof , has:5-28
1. Committed any act which5-29
5-30
contractor’s license;5-31
2. A bad reputation for honesty and integrity;5-32
3. Entered a plea of nolo contendere, guilty or guilty but mentally ill5-33
to, been found guilty of or been convicted of a misdemeanor, felony or5-34
crime involving moral turpitude arising out of, in connection with or related5-35
to the activities of such person in such a manner as to demonstrate his5-36
unfitness to act as a contractor, and the time for appeal has elapsed or the5-37
judgment of conviction has been affirmed on appeal; or5-38
4. Had a license revoked or suspended for reasons that would preclude5-39
the granting or renewal of a license for which the application has been5-40
made.6-1
Sec. 9. NRS 624.273 is hereby amended to read as follows: 624.273 1. Each bond or deposit required by NRS 624.270 must be6-3
in favor of the State of Nevada for the benefit of any person who:6-4
(a) As owner of the property to be improved entered into a construction6-5
contract with the contractor and is damaged by failure of the contractor to6-6
perform the contract or to remove liens filed against the property;6-7
(b) As an employee of the contractor performed labor on or about the6-8
site of the construction covered by the contract;6-9
(c) As a supplier or materialman furnished materials or equipment for6-10
the construction covered by the contract; or6-11
(d) Is injured by any unlawful act or omission of the contractor in the6-12
performance of a contract.6-13
2. Any person claiming against the bond or deposit may bring an action6-14
in a court of competent jurisdiction on the bond or against the board on the6-15
deposit for the amount of damage he has suffered to the extent covered by6-16
the bond or deposit.6-17
6-18
the bond or deposit 2 years after the commission of the act on which the6-19
action is based. If an action is commenced on the bond, the surety that6-20
executed the bond shall notify the board of the action within 30 days6-21
after the date that:6-22
(a) The surety is served with a complaint and summons; or6-23
(b) The action is commenced,6-24
whichever occurs first.6-25
3. Upon receiving a request from a person for whose benefit a bond or6-26
deposit is required, the board shall notify him that:6-27
(a) A bond is in effect or that a deposit has been made, and the amount6-28
of either;6-29
(b) There is an action against a bond, if that is the case, and the court,6-30
the title and number of the action and the amount sought by the plaintiff;6-31
and6-32
(c) There is an action against the board, if that is the case, and the6-33
amount sought by the plaintiff.6-34
4. If a surety, or in the case of a deposit, the board, desires to make6-35
payment without awaiting court action, the amount of the bond or deposit6-36
must be reduced to the extent of any payment made by the surety or the6-37
board in good faith under the bond or deposit. Any payment must be based6-38
on written claims received by the surety or board before the court action.6-39
5. The surety or the board may bring an action for interpleader against6-40
all claimants upon the bond or deposit. If6-41
interpleader is commenced, the surety or the board must serve each6-42
known claimant and publish notice of the action at least once each week6-43
for 2 weeks in a newspaper of general circulation in the county where the7-1
contractor has his principal place of business. The surety7-2
entitled to deduct its costs of the action, including7-3
publication, from its liability under the bond .7-4
deduct its costs of the action, including attorney’s fees and publication,7-5
from the deposit.7-6
6. A claim of any employee of the contractor for labor is a preferred7-7
claim against a bond or deposit. If any bond or deposit is insufficient to pay7-8
all claims for labor in full, the sum recovered must be distributed among all7-9
claimants for labor in proportion to the amounts of their respective claims.7-10
Partial payment of claims is not full payment, and the claimants may bring7-11
actions against the contractor for the unpaid balances.7-12
7. Claims, other than claims for labor, against a bond or deposit have7-13
equal priority, except where otherwise provided by law, and if the bond or7-14
deposit is insufficient to pay all of those claims in full, they must be paid7-15
pro rata. Partial payment of claims is not full payment, and the claimants7-16
may bring actions against the contractor for the unpaid balances.7-17
Sec. 10. NRS 624.275 is hereby amended to read as follows: 624.275 1.7-19
contractor maintains in accordance with NRS 624.270:7-20
(a) The surety shall give prompt notice to the board of any claims paid7-21
against the bond of the licensed contractor.7-22
(b) The surety may cancel the bond upon giving 60 days’ notice to the7-23
board and to the contractor by certified mail.7-24
2. Upon receipt by the board of the notice described in paragraph (a)7-25
of subsection 1, the board shall immediately notify the contractor who is7-26
the principal on the bond that his license will be suspended or revoked7-27
unless he furnishes an equivalent bond or establishes an equivalent cash7-28
deposit before a date set by the board.7-29
3. Upon receipt by the board of the notice7-30
(b) of subsection 1, the board shall immediately notify the contractor who7-31
is the principal on the bond that his license will be suspended or revoked7-32
unless he furnishes an equivalent bond or establishes an equivalent cash7-33
deposit before the effective date of the cancellation.7-34
4. The notice mailed to the contractor by the board pursuant to7-35
subsection 2 or 3 must be7-36
of record in the office of the board.7-37
7-38
notice from the board, his license must be suspended or revoked on the date7-39
7-40
(a) Set by the board, if the notice was provided to the contractor7-41
pursuant to subsection 2; or7-42
(b) The bond is canceled7-43
contractor pursuant to subsection 3.8-1
Sec. 11. NRS 624.280 is hereby amended to read as follows: 624.280 The board may adopt regulations fixing the fee for an8-3
application, the fee for an examination and the annual fee for a license to be8-4
paid by applicants and licensees .8-5
otherwise provided in section 3 of this act, the fee for:8-6
1. An application must not exceed $550.8-7
2. A license must not exceed $450 annually.8-8
3. An examination must not exceed $300.8-9
Sec. 12. NRS 624.3015 is hereby amended to read as follows: 624.3015 The following acts, among others, constitute cause for8-11
disciplinary action under NRS 624.300:8-12
1. Acting in the capacity of a contractor beyond the scope of the8-13
license.8-14
2. Bidding to contract or contracting for a sum for one construction8-15
contract or project in excess of the limit placed on the license by the board.8-16
3. Knowingly entering into a contract with a contractor while that8-17
contractor is not licensed, or bidding to contract or entering into a contract8-18
with a contractor for work in excess of his limit or beyond the scope of his8-19
license.8-20
4. Constructing or repairing a mobile home, manufactured home or8-21
commercial coach, unless the contractor:8-22
(a) Is licensed pursuant to NRS 489.311; or8-23
(b) Owns, leases or rents the mobile home, manufactured home or8-24
commercial coach.8-25
5. Engaging in any work or activities that require a contractor’s8-26
license while the license is placed on inactive status pursuant to section 48-27
of this act.8-28
Sec. 13. NRS 624.310 is hereby amended to read as follows: 624.310 1. Except as otherwise provided in subsection 4, if the board8-30
refuses to issue or renew a license, suspends or revokes a license or8-31
imposes an administrative fine pursuant to NRS 624.235, the board shall8-32
hold a hearing. The time and place for the hearing must be fixed by the8-33
board, and notice of the time and place of the hearing must be personally8-34
served on the applicant or accused or mailed to the last known address of8-35
the applicant or accused at least 30 days before the date fixed for the8-36
hearing.8-37
2. The testimony taken pursuant to NRS 624.170 to 624.210, inclusive,8-38
must be considered a part of the record of the hearing before the board.8-39
3. The hearing must be public if a request is made therefor.8-40
4. The board may suspend the license of a contractor without a hearing8-41
if the board finds, based upon evidence in its possession, that the public8-42
health, safety or welfare imperatively requires summary suspension of the8-43
license of the contractor and incorporates that finding in its order. If the9-1
board summarily suspends the license of the contractor,9-2
notify the contractor by certified mail. A hearing must be held within 309-3
days after the suspension9-4
a hearing to the board within 20 days after the board summarily9-5
suspends his license.~