Assembly Bill No. 634–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 governing contractors. (BDR 54-762)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: Yes.
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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 8, inclusive, of this act.1-3
Sec. 2. 1. The board shall establish a special investigations unit to1-4
enforce the provisions of this chapter.1-5
2. The board shall establish by regulation the qualifications required1-6
for a special investigator employed in the special investigations unit.1-7
3. A special investigator has the powers of a peace officer to issue a1-8
written citation pursuant to section 3 of this act.1-9
4. A special investigator may request any constable, sheriff or other1-10
peace officer to assist him in the issuance of a written citation.1-11
Sec. 3. 1. If the executive director has probable cause to believe1-12
that a licensee or applicant for a license has committed an act which1-13
constitutes a cause for disciplinary action, he may issue, or authorize a2-1
special investigator to issue, a written citation to the licensee or applicant2-2
for a contractor’s license. The written citation may include, without2-3
limitation, an order to take action to correct a condition resulting from2-4
an act which constitutes a cause for disciplinary action, at the licensee’s2-5
or applicant’s cost, and an order to pay an administrative fine. If a2-6
special investigator makes such a request, the constable, sheriff or other2-7
peace officer shall provide such assistance as requested.2-8
2. If a written citation issued pursuant to subsection 1 includes an2-9
order to take action to correct a condition resulting from an act which2-10
constitutes a cause for disciplinary action, the citation must state the time2-11
permitted for compliance that must be not less than 15 days after the date2-12
of issuance of the written citation and specifically describe the action2-13
required to be taken.2-14
Sec. 4. The board shall adopt regulations concerning the:2-15
1. Form of a written citation issued pursuant to NRS 624.115 or2-16
section 3 of this act;2-17
2. Time required for a licensee or applicant for a license to correct a2-18
condition resulting from an act that constitutes a cause for disciplinary2-19
action if he is so ordered pursuant to section 3 of this act; and2-20
3. Imposition of an administrative fine pursuant to the provisions of2-21
this chapter. The board must consider:2-22
(a) The gravity of the violation;2-23
(b) The good faith of the licensee; and2-24
(c) Any history of previous violations of the provisions of this chapter2-25
by the licensee.2-26
Sec. 5. 1. A licensee or applicant for a contractor’s license who is2-27
issued a written citation pursuant to section 3 of this act may contest the2-28
citation within 15 days after the date that he receives the citation.2-29
2. A licensee or applicant for a contractor’s license may contest,2-30
without limitation:2-31
(a) The facts forming the basis for the determination of the violation2-32
of the provisions of this chapter;2-33
(b) The time allowed to correct a violation of the provisions of this2-34
chapter;2-35
(c) The amount of any administrative fine imposed; or2-36
(d) Whether the action required that is described in the written2-37
citation to correct the condition is reasonable.2-38
3. If the licensee or applicant for a contractor’s license does not2-39
contest the written citation within 15 days after the date that he receives2-40
the citation, the citation shall be deemed a final order of the board and2-41
not subject to review by any court or agency.2-42
4. The board may, for good cause shown, extend the time to contest a2-43
written citation.3-1
Sec. 6. If a licensee or applicant for a contractor’s license contests a3-2
citation or order to correct a violation of the provisions of this chapter3-3
within 15 days after he receives the citation or order, the board shall hold3-4
a hearing pursuant to NRS 624.310.3-5
Sec. 7. The following acts or omissions, among others, constitute3-6
cause for disciplinary action pursuant to NRS 624.300:3-7
1. Contracting, offering to contract or submitting a bid as a3-8
contractor if the license has been suspended or revoked pursuant to NRS3-9
624.300.3-10
2. Failure to comply with a written citation issued pursuant to3-11
section 3 of this act within 15 days after the issuance of the citation, or, if3-12
a hearing is held pursuant to NRS 624.310, within 15 days after the3-13
hearing.3-14
3. The suspension, revocation or other disciplinary action taken by3-15
another state against a contractor based on a license issued by that state3-16
if the contractor is licensed in this state or applies for a license in this3-17
state. A certified copy of the suspension, revocation or other disciplinary3-18
action taken by another state against a contractor based on a license3-19
issued by that state is conclusive evidence of that action.3-20
Sec. 8. A complaint against a licensee for the commission of any act3-21
or omission that constitutes cause for disciplinary action pursuant to3-22
NRS 624.300 must be filed in writing with the board within 4 years after3-23
the act or omission.3-24
Sec. 9. NRS 624.115 is hereby amended to read as follows: 624.115 1. The board may employ attorneys, investigators and other3-26
professional consultants and clerical personnel necessary to the discharge3-27
of its duties.3-28
2. The board may require investigators who are employed by the board3-29
to3-30
3-31
(a) Conduct a background investigation of an applicant for a3-32
contractor’s license;3-33
(b) Locate and identify persons who:3-34
(1) Engage in the business or act in the capacity of a contractor3-35
within this state3-36
3-37
(2) Submit bids on jobs situated within this state3-38
3-39
(3) Violate the provisions of this chapter or the regulations adopted3-40
pursuant to this chapter; and3-41
(c) Issue a written citation in the manner set forth in section 3 of this3-42
act to a person who violates the provisions of this chapter.4-1
Sec. 10. NRS 624.165 is hereby amended to read as follows: 624.165 1. The board4-3
(a) Designate one or more of its employees for the investigation of4-4
constructional fraud;4-5
(b) Cooperate with other local, state or federal investigative and law4-6
enforcement agencies, and the attorney general;4-7
(c) Assist the attorney general or any official of an investigative or a4-8
law enforcement agency of this state, any other state or the Federal4-9
Government who requests assistance in investigating any act of4-10
constructional fraud; and4-11
(d) Furnish to those officials any information4-12
4-13
constructional fraud.4-14
2. The board may obtain records of a law enforcement agency or any4-15
other agency that maintains records of criminal history, including,4-16
without limitation, records of:4-17
(a) Investigations;4-18
(b) Arrests;4-19
(c) Guilty pleas;4-20
(d) Sentencing;4-21
(e) Probation;4-22
(f) Parole;4-23
(g) Bail;4-24
(h) Complaints;4-25
(i) Final dispositions; and4-26
(j) Data base searches,4-27
for the investigation of constructional fraud.4-28
3. For the purposes of this section, constructional fraud occurs if a4-29
person engaged in construction :4-30
(a) Misapplies money under the circumstances described in NRS4-31
205.310;4-32
(b) Obtains money, property or labor by false pretense as described in4-33
NRS 205.380;4-34
(c) Receives payments and fails to state his own true name, or states a4-35
false name, address or telephone number of the person offering a service;4-36
4-37
(d) Commits theft, fraud or embezzlement in connection with a4-38
construction project;4-39
(e) Acts as a contractor without:4-40
(1) Obtaining a contractor’s license pursuant to this chapter; or4-41
(2) Obtaining any other license required by this state or a political4-42
subdivision of this state; or4-43
(f) Otherwise fails to disclose a material fact.5-1
Sec. 11. NRS 624.265 is hereby amended to read as follows: 624.265 1. An applicant for a contractor’s license and each officer,5-3
director, partner and associate thereof shall possess good character. Lack5-4
of character may be established by showing that the applicant or any5-5
officer, director, partner or associate thereof has:5-6
5-7
contractor, would be grounds for the suspension or revocation of a5-8
contractor’s license;5-9
5-10
5-11
guilty of or been convicted of a felony or crime involving moral turpitude5-12
arising out of, in connection with or related to the activities of such person5-13
in such a manner as to demonstrate his unfitness to act as a contractor, and5-14
the time for appeal has elapsed or the judgment of conviction has been5-15
affirmed on appeal; or5-16
5-17
granting of a license for which the application has been made.5-18
2. An applicant for a contractor’s license, and any officer, director,5-19
partner or associate of the applicant, must submit to the board completed5-20
fingerprint cards and a form authorizing an investigation of the5-21
applicant’s background and the submission of his fingerprints to the5-22
central repository for Nevada records of criminal history and the Federal5-23
Bureau of Investigation. The fingerprint cards and authorization form5-24
submitted must be those that are provided to the applicant by the board.5-25
The applicant’s fingerprints must be taken by an agency of law5-26
enforcement.5-27
3. The board shall keep the results of the investigation confidential5-28
and not subject to inspection by the general public.5-29
4. The board shall establish by regulation the fee for processing the5-30
fingerprints to be paid by the applicant. The fee must not exceed the sum5-31
of the amounts charged by the central repository for Nevada records of5-32
criminal history and the Federal Bureau of Investigation for processing5-33
the fingerprints.5-34
5. The board may obtain records of a law enforcement agency or any5-35
other agency that maintains records of criminal history, including,5-36
without limitation, records of:5-37
(a) Investigations;5-38
(b) Arrests;5-39
(c) Guilty pleas;5-40
(d) Sentencing;5-41
(e) Probation;5-42
(f) Parole;5-43
(g) Bail;6-1
(h) Complaints;6-2
(i) Final dispositions; and6-3
(j) Data base searches,6-4
for the investigation of an applicant for a contractor’s license.6-5
Sec. 12. NRS 624.273 is hereby amended to read as follows: 624.273 1. Each bond or deposit required by NRS 624.270 must be6-7
in favor of the State of Nevada for the benefit of any person who:6-8
(a) As owner of the property to be improved entered into a construction6-9
contract with the contractor and is damaged by failure of the contractor to6-10
perform the contract or to remove liens filed against the property;6-11
(b) As an employee of the contractor performed labor on or about the6-12
site of the construction covered by the contract;6-13
(c) As a supplier or materialman furnished materials or equipment for6-14
the construction covered by the contract; or6-15
(d) Is injured by any unlawful act or omission of the contractor in the6-16
performance of a contract.6-17
2. Any person claiming against the bond or deposit may bring an6-18
action in a court of competent jurisdiction on the bond or against the board6-19
on the deposit for the amount of damage he has suffered to the extent6-20
covered by the bond or deposit. A person who brings action on a bond6-21
shall notify the board in writing upon filing the action. No action may be6-22
commenced on the bond or deposit 2 years after the commission of the act6-23
on which the action is based.6-24
3. Upon receiving a request from a person for whose benefit a bond or6-25
deposit is required, the board shall notify him that:6-26
(a) A bond is in effect or that a deposit has been made, and the amount6-27
of either;6-28
(b) There is an action against a bond, if that is the case, and the court,6-29
the title and number of the action and the amount sought by the plaintiff;6-30
and6-31
(c) There is an action against the board, if that is the case, and the6-32
amount sought by the plaintiff.6-33
4. If a surety, or in the case of a deposit, the board, desires to make6-34
payment without awaiting court action, the amount of the bond or deposit6-35
must be reduced to the extent of any payment made by the surety or the6-36
board in good faith under the bond or deposit. Any payment must be based6-37
on written claims received by the surety or board before the court action.6-38
5. The surety or the board may bring an action for interpleader against6-39
all claimants upon the bond or deposit. If it does so, it must publish notice6-40
of the action at least once each week for 2 weeks in a newspaper of general6-41
circulation in the county where the contractor has his principal place of7-1
business. The surety or the board is entitled to deduct its costs of the7-2
action, including attorney’s fees and publication, from its liability under7-3
the bond or from the deposit.7-4
6. A claim of any employee of the contractor for labor is a preferred7-5
claim against a bond or deposit. If any bond or deposit is insufficient to7-6
pay all claims for labor in full, the sum recovered must be distributed7-7
among all claimants for labor in proportion to the amounts of their7-8
respective claims. Partial payment of claims is not full payment, and the7-9
claimants may bring actions against the contractor for the unpaid balances.7-10
7. Claims, other than claims for labor, against a bond or deposit have7-11
equal priority, except where otherwise provided by law, and if the bond or7-12
deposit is insufficient to pay all of those claims in full, they must be paid7-13
pro rata. Partial payment of claims is not full payment, and the claimants7-14
may bring actions against the contractor for the unpaid balances.7-15
8. The board may not claim against the bond or deposit required7-16
pursuant to NRS 624.270 for the payment of an administrative fine7-17
imposed for a violation of the provisions of this chapter.7-18
Sec. 13. NRS 624.300 is hereby amended to read as follows: 624.300 1. Except as otherwise provided in7-20
subsections 3 and 7, the board may:7-21
(a) Suspend or revoke licenses already issued;7-22
(b) Refuse renewals of licenses;7-23
(c) Impose limits on the field, scope and monetary limit of the license;7-24
(d) Impose an administrative fine of not more than $10,000;7-25
(e) Order the licensee to take action to correct a condition resulting7-26
from an act which constitutes a cause for disciplinary action, at the7-27
licensee’s cost; or7-28
(f) Reprimand or take other less severe disciplinary action, including,7-29
without limitation, increasing the amount of the surety bond or cash7-30
deposit of the licensee,7-31
if the licensee commits any act which constitutes a cause for disciplinary7-32
action.7-33
2. If the board suspends or revokes the license of a contractor for7-34
failure to establish financial responsibility, the board may, in addition to7-35
any other conditions for reinstating or renewing the license, require that7-36
each contract undertaken by the licensee for a period to be designated by7-37
the board, not to exceed 12 months, be separately covered by a bond or7-38
bonds approved by the board and conditioned upon the performance of and7-39
the payment of labor and materials required by the contract.7-40
3. If a licensee violates the provisions of NRS 624.3014 or subsection7-41
3 of NRS 624.3015, the board may impose an administrative fine of not7-42
more than $20,000.8-1
4. If a licensee commits a fraudulent act which is a cause for8-2
disciplinary action under NRS 624.3016, the correction of any condition8-3
resulting from the act does not preclude the board from taking disciplinary8-4
action.8-5
8-6
that would be cause for disciplinary action, the correction of any resulting8-7
conditions does not preclude the board from taking disciplinary action8-8
pursuant to this section.8-9
8-10
decision of the board or a court, or the voluntary surrender of a license by8-11
a licensee, does not deprive the board of jurisdiction to proceed with any8-12
investigation of, or action or disciplinary proceeding against, the licensee8-13
or to render a decision suspending or revoking the license.8-14
8-15
section regarding a constructional defect, as that term is defined in NRS8-16
40.615, during the period in which any claim arising out of that defect is8-17
being settled, mediated or otherwise resolved pursuant to NRS 40.600 to8-18
40.695, inclusive, unless the disciplinary action is necessary to protect the8-19
public health or safety.8-20
8-21
proceeding, including investigative costs and attorney’s fees, may be8-22
recovered by the board.8-23
Sec. 14. NRS 624.307 is hereby amended to read as follows: 624.307 1. It is unlawful for any person, including a person exempt8-25
under NRS 624.330, to advertise as a contractor unless he has a valid8-26
license in the appropriate classification established by NRS 624.215 and8-27
624.220.8-28
2. As used in this section, "advertising" includes , but is not limited to8-29
, the issuance of any sign, card or device or by the permitting or allowing8-30
of any sign or marking on a motor vehicle, in any building, structure,8-31
newspaper, magazine or airway transmission or in any directory under the8-32
listing of contractor with or without any limiting qualifications.8-33
3. All advertising by a licensed contractor must include the name of8-34
his company and the number of his license.8-35
Sec. 15. NRS 624.360 is hereby amended to read as follows: 624.360 1. Any person violating any of the provisions of this8-37
chapter:8-38
(a) For the first offense, is guilty of a misdemeanor and shall be8-39
punished by a fine of not less than8-40
$2,000, and may be further punished by imprisonment in the county jail8-41
for not more than 6 months .8-42
(b) For the second8-43
misdemeanor and shall be punished by a fine of not less than9-1
$2,000 nor more than9-2
imprisonment in the county jail for not more than 1 year.9-3
(c) For the third or subsequent offense, is guilty of a class E felony9-4
and shall be punished by a fine of not less than $5,000 nor more than9-5
$10,000 and may be further punished by imprisonment in the state prison9-6
for not less than 1 year and not more than 4 years.9-7
2. Imposition of the penalty provided for in this section is not9-8
precluded by any disciplinary action taken by the board against a9-9
contractor pursuant to the provisions of NRS 624.300 to 624.305,9-10
inclusive.9-11
Sec. 16. The amendatory provisions of this act do not apply to9-12
offenses that were committed before the effective date of this act.9-13
Sec. 17. This act becomes effective upon passage and approval.~