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.
~
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 12, inclusive, of this act.1-3
Sec. 2. 1. The board shall:1-4
(a) Establish a special investigations unit to enforce the provisions of1-5
this chapter, consisting of criminal investigators and such other1-6
investigators as the board deems appropriate.1-7
(b) Adopt regulations setting forth the qualifications required for1-8
investigators employed to carry out this section.1-9
2. As used in this section, "criminal investigator" means a person1-10
employed to perform the duties set forth in subsection 2 of NRS 624.115.1-11
Sec. 3. 1. The special investigations unit of the board shall:1-12
(a) Upon the receipt of a complaint against a licensee, initiate an1-13
investigation of the complaint.2-1
(b) Within 10 days after receiving such a complaint, notify the2-2
licensee and, if known, the person making the complaint of the initiation2-3
of the investigation, and provide a copy of the complaint to the licensee.2-4
(c) Upon the completion of its investigation of a complaint, provide2-5
the licensee and, if known, the person making the complaint with written2-6
notification of any action taken on the complaint and the reasons for2-7
taking that action.2-8
2. The special investigations unit of the board may attempt to resolve2-9
the complaint by:2-10
(a) Meeting and conferring with the licensee and the person making2-11
the complaint; and2-12
(b) Requesting the licensee to provide appropriate relief.2-13
3. If the subject matter of the complaint is not within the jurisdiction2-14
of the board, or if the board or the special investigations unit is unable to2-15
resolve the complaint to the satisfaction of the person making the2-16
complaint, after exhausting all reasonable remedies and methods of2-17
resolution, the board or its designee shall:2-18
(a) Forward the complaint, together with any evidence or other2-19
information in the possession of the board concerning the complaint, to2-20
any public or private agency which, in the opinion of the board, would be2-21
effective in resolving the complaint to the satisfaction of the person2-22
making the complaint; and2-23
(b) Notify the person making the complaint of its action pursuant to2-24
paragraph (a) and of any other procedures which may be available to2-25
resolve the complaint to the satisfaction of that person.2-26
Sec. 4. 1. If the executive officer of the board, based upon a2-27
preponderance of the evidence in his possession, has reason to believe2-28
that a licensee or applicant for a contractor’s license has committed an2-29
act which constitutes a cause for disciplinary action pursuant to NRS2-30
624.300, he may issue or authorize the issuance of a written2-31
administrative citation to the licensee or applicant. A citation issued2-32
pursuant to this section may include, without limitation:2-33
(a) An order to take action to correct a condition resulting from an act2-34
that constitutes a cause for disciplinary action, at the licensee’s or2-35
applicant’s cost;2-36
(b) An order to pay an administrative fine; and2-37
(c) An order to reimburse the board for the amount of the expenses2-38
incurred to investigate the licensee or applicant.2-39
2. If a written citation issued pursuant to subsection 1 includes an2-40
order to take action to correct a condition resulting from an act that2-41
constitutes a cause for disciplinary action, the citation must state the time2-42
permitted for compliance, which must be not less than 15 days after the3-1
date the licensee or applicant receives the citation, and specifically3-2
describe the action required to be taken.3-3
Sec. 5. The board shall adopt regulations concerning the:3-4
1. Form of a written citation issued pursuant to section 4 of this act;3-5
2. Time required for a licensee or applicant for a license to correct a3-6
condition resulting from an act that constitutes a cause for disciplinary3-7
action if he is so ordered pursuant to section 4 of this act; and3-8
3. Imposition of an administrative fine pursuant to the provisions of3-9
this chapter. The board must consider:3-10
(a) The gravity of the violation;3-11
(b) The good faith of the licensee; and3-12
(c) Any history of previous violations of the provisions of this chapter3-13
by the licensee.3-14
Sec. 6. 1. A licensee or applicant for a contractor’s license who is3-15
issued a written citation pursuant to section 4 of this act may contest the3-16
citation within 15 days after the date that he receives the citation.3-17
2. A licensee or applicant for a contractor’s license may contest,3-18
without limitation:3-19
(a) The facts forming the basis for the determination that the licensee3-20
or applicant has committed an act which constitutes a cause for3-21
disciplinary action;3-22
(b) The time allowed to take any corrective action ordered;3-23
(c) The amount of any administrative fine ordered;3-24
(d) The amount of any order to reimburse the board for the expenses3-25
incurred to investigate the licensee or applicant; and3-26
(e) Whether any corrective action described in the citation is3-27
reasonable.3-28
3. If a licensee or applicant for a contractor’s license does not3-29
contest a citation issued pursuant to section 4 of this act within 15 days3-30
after the date that he receives the citation, the citation shall be deemed a3-31
final order of the board and not subject to review by any court or agency.3-32
4. The board may, for good cause shown, extend the time to contest a3-33
citation issued pursuant to section 4 of this act.3-34
Sec. 7. If a licensee or applicant for a contractor’s license contests a3-35
citation issued pursuant to section 4 of this act or order to correct a3-36
violation of the provisions of this chapter within 15 days after he receives3-37
the citation or order, the board shall hold a hearing pursuant to NRS3-38
624.310.3-39
Sec. 8. 1. The board or its designee shall, not less than annually:3-40
(a) Review the complaints received by the board to ascertain whether3-41
there are any similarities or common trends among any of those3-42
complaints;4-1
(b) Evaluate any of those complaints for which it is determined that4-2
the board does not have jurisdiction or that there is no violation of the4-3
provisions of this chapter or the regulations adopted pursuant thereto;4-4
(c) Identify potential difficulties in the regulation of contractors and4-5
the protection of the public pursuant to this chapter; and4-6
(d) Report any findings and recommendations for legislation to:4-7
(1) The governor; and4-8
(2) The legislature or, if the legislature is not in session, the4-9
legislative commission.4-10
2. The board shall take such action as is necessary to keep the public4-11
informed of its activities pursuant to this section.4-12
Sec. 9. 1. A licensee or an applicant for a contractor’s license must4-13
prove his financial responsibility by demonstrating that his past and4-14
current financial solvency and expectations for financial solvency in the4-15
future are such as to provide the board with a reasonable expectation4-16
that the licensee or applicant can successfully do business as a contractor4-17
without jeopardy to the public health, safety and welfare.4-18
2. An applicant for the issuance or renewal of a contractor’s license4-19
must provide the board with a financial statement prepared by an4-20
independent certified public accountant and such other documentation4-21
as the board requires to determine his past and current financial4-22
solvency and expectations for financial solvency in the future.4-23
Sec. 10. The following acts or omissions, among others, constitute4-24
cause for disciplinary action pursuant to NRS 624.300:4-25
1. Contracting, offering to contract or submitting a bid as a4-26
contractor if the license has been suspended or revoked pursuant to NRS4-27
624.300.4-28
2. Failure to comply with a written citation issued pursuant to section4-29
4 of this act within 15 days after the receipt of the citation, or, if a4-30
hearing is held pursuant to NRS 624.310, within 15 days after the4-31
hearing.4-32
3. Except as otherwise provided in subsection 2, failure to pay an4-33
administrative fine imposed pursuant to this chapter within 30 days after:4-34
(a) Receiving notice of the imposition of the fine; or4-35
(b) The final administrative or judicial decision affirming the4-36
imposition of the fine,4-37
whichever occurs later.4-38
4. The suspension, revocation or other disciplinary action taken by4-39
another state against a contractor based on a license issued by that state4-40
if the contractor is licensed in this state or applies for a license in this4-41
state. A certified copy of the suspension, revocation or other disciplinary4-42
action taken by another state against a contractor based on a license4-43
issued by that state is conclusive evidence of that action.5-1
Sec. 11. A complaint against a licensee for the commission of any5-2
act or omission that constitutes cause for disciplinary action pursuant to5-3
NRS 624.300 must be filed in writing with the board within 4 years after5-4
the act or omission.5-5
Sec. 12. 1. Except as otherwise provided in this chapter, any5-6
person other than an applicant for a contractor’s license who takes an5-7
examination of the board on behalf of the applicant, is guilty of a5-8
misdemeanor.5-9
2. Any person who, without the authorization of the board, provides5-10
any portion of an examination of the board to another person, is guilty of5-11
a misdemeanor.5-12
Sec. 13. NRS 624.115 is hereby amended to read as follows: 624.115 1. The board may employ attorneys, investigators and other5-14
professional consultants and clerical personnel necessary to the discharge5-15
of its duties.5-16
2. The board may require criminal investigators who are employed by5-17
the board pursuant to section 2 of this act to5-18
5-19
(a) Conduct a background investigation of a licensee or an applicant5-20
for a contractor’s license;5-21
(b) Locate and identify persons who:5-22
(1) Engage in the business or act in the capacity of a contractor within5-23
this state5-24
5-25
(2) Submit bids on jobs situated within this state5-26
5-27
(3) Otherwise violate the provisions of this chapter or the5-28
regulations adopted pursuant to this chapter; and5-29
(c) Issue a written misdemeanor citation pursuant to NRS 171.1773 to5-30
a person who violates a provision of this chapter that is punishable as a5-31
misdemeanor. A criminal investigator may request any constable, sheriff5-32
or other peace officer to assist him in the issuance of such a citation.5-33
Sec. 14. NRS 624.165 is hereby amended to read as follows: 624.165 1. The board5-35
(a) Designate one or more of its employees for the investigation of5-36
constructional fraud;5-37
(b) Cooperate with other local, state or federal investigative and law5-38
enforcement agencies, and the attorney general;5-39
(c) Assist the attorney general or any official of an investigative or a law5-40
enforcement agency of this state, any other state or the Federal Government5-41
who requests assistance in investigating any act of constructional fraud; and6-1
(d) Furnish to those officials any information6-2
6-3
constructional fraud.6-4
2. The board may obtain records of a law enforcement agency or any6-5
other agency that maintains records of criminal history, including,6-6
without limitation, records of:6-7
(a) Arrests;6-8
(b) Guilty pleas;6-9
(c) Sentencing;6-10
(d) Probation;6-11
(e) Parole;6-12
(f) Bail;6-13
(g) Complaints; and6-14
(h) Final dispositions,6-15
for the investigation of constructional fraud.6-16
3. For the purposes of this section, constructional fraud occurs if a6-17
person engaged in construction knowingly:6-18
(a) Misapplies money under the circumstances described in NRS6-19
205.310;6-20
(b) Obtains money, property or labor by false pretense as described in6-21
NRS 205.380;6-22
(c) Receives payments and fails to state his own true name, or states a6-23
false name, contractor’s license number address or telephone number of6-24
the person offering a service;6-25
(d) Commits any act of theft, forgery, fraud or embezzlement, in6-26
connection with a construction project, that violates a criminal statute of6-27
this state;6-28
(e) Acts as a contractor without:6-29
(1) Obtaining a contractor’s license pursuant to this chapter; or6-30
(2) Obtaining any other license required by this state or a political6-31
subdivision of this state; or6-32
(f) Otherwise fails to disclose a material fact.6-33
Sec. 15. NRS 624.170 is hereby amended to read as follows: 624.170 1. Any member of the board or the executive officer may6-35
take testimony and proofs concerning all matters within the jurisdiction of6-36
the board.6-37
2. The board or any member thereof, or the executive officer, may:6-38
(a) Administer oaths.6-39
(b) Certify to all official acts.6-40
(c) Issue subpoenas for the attendance of witnesses and the production6-41
of records, books and papers in connection with any hearing6-42
6-43
investigation or other proceeding of the board.7-1
Sec. 16. NRS 624.190 is hereby amended to read as follows: 624.190 1. The district court in and for the county in which any7-3
hearing ,7-4
compel the attendance of witnesses, the giving of testimony and the7-5
production of records, books and papers as required by any subpoena7-6
issued by the board or the executive officer.7-7
2. In case of the refusal of any witness to attend or testify or produce7-8
any7-9
district court in and for the county in which the hearing ,7-10
or other proceeding will be held by petition, setting forth that:7-11
(a) Due notice has been given of the time and place of attendance of the7-12
witness or the production of the records, books or papers;7-13
(b) The witness has been subpoenaed in the manner prescribed in this7-14
chapter; and7-15
(c) The witness has failed and refused to attend or produce the7-16
items required by subpoena before the board in the cause or proceeding7-17
named in the subpoena, or has refused to answer questions propounded to7-18
him in the course of the hearing7-19
proceeding,7-20
and ask an order of the court compelling the witness to attend and testify or7-21
produce the records, books or papers before the board.7-22
3. The court, upon petition of the board, shall enter an order directing7-23
the witness to appear before the court at a time and place to be fixed by the7-24
court in the order, the time to be not more than 10 days after the date of the7-25
order, and then and there show cause why he has not attended or testified or7-26
produced the records, books or papers before the board. A certified copy of7-27
the order must be served upon the witness.7-28
4. If it appears to the court that the subpoena was regularly issued by7-29
the board or the executive officer, the court shall thereupon enter an order7-30
that the witness appear before the board at the time and place fixed in the7-31
order and testify or produce the required records, books or papers. Upon7-32
failure to obey the order , the witness must be dealt with as for contempt of7-33
court.7-34
Sec. 17. NRS 624.200 is hereby amended to read as follows: 624.200 The board may in any hearing ,7-36
proceeding before it cause the depositions of witnesses residing within or7-37
without the state to be taken in the manner prescribed by the Nevada Rules7-38
of Civil Procedure for like depositions in civil actions in the district courts7-39
of this state, and to that end may compel the attendance of witnesses and7-40
the production of records, books and papers.7-41
Sec. 18. NRS 624.210 is hereby amended to read as follows: 624.210 Any party to any hearing ,7-43
proceeding before the board has the right to the attendance of witnesses in8-1
his behalf at the hearing ,8-2
deposition as set forth in this chapter upon making a request therefor to the8-3
board and designating the person sought to be subpoenaed.8-4
Sec. 19. NRS 624.220 is hereby amended to read as follows: 624.220 1. The board may adopt regulations necessary to effect the8-6
classification and subclassification of contractors in a manner consistent8-7
with established usage and procedure as found in the construction business,8-8
and may limit the field and scope of the operations of a licensed contractor8-9
to those in which he is classified and qualified to engage as defined by NRS8-10
624.215 and the regulations of the board.8-11
2. The board may limit the field and scope of the operations of a8-12
licensed contractor by establishing a monetary limit on a contractor’s8-13
license, and the limit must be the maximum contract a licensed contractor8-14
may undertake on one or more construction contracts on a single8-15
construction site or subdivision site for a single client. The board may take8-16
any other action designed to limit the field and scope of the operations of a8-17
contractor as may be necessary to protect the health, safety and general8-18
welfare of the public. The limit, if any, must be determined after8-19
consideration of the factors set forth in NRS 624.260, 624.263 and 624.2658-20
8-21
8-22
act.8-23
3. This section does not prohibit a specialty contractor from taking8-24
and executing a contract involving the use of two or more crafts or trades, if8-25
the performance of the work in the crafts or trades, other than in which he is8-26
licensed, is incidental and supplemental to the performance of work in the8-27
craft for which the specialty contractor is licensed.8-28
Sec. 20. NRS 624.230 is hereby amended to read as follows: 624.230 1. It is unlawful for any person or combination of persons8-30
to:8-31
(a) Engage in the business or act in the capacity of a contractor within8-32
this state; or8-33
(b) Submit a bid on a job situated within this state,8-34
without having8-35
unless that person or combination of persons is exempted from licensure8-36
8-37
2. The district attorneys in this state shall prosecute all violations of8-38
this section which occur in their respective counties, unless the violations8-39
are prosecuted by the attorney general. Upon the request of the board, the8-40
attorney general shall prosecute any violation of this section in lieu of8-41
prosecution by the district attorney.8-42
3. In addition to any other penalty imposed pursuant to this chapter, a8-43
person who is convicted of violating subsection 1 may be required to pay:9-1
(a) Court costs and the costs of prosecution;9-2
(b) Reasonable costs of the investigation of the violation to the board;9-3
(c) Damages he caused as a result of the violation up to the amount of9-4
his pecuniary gain from the violation; or9-5
(d) Any combination of paragraphs (a), (b) and (c).9-6
4.9-7
9-8
9-9
violation of subsection 1, the bid or contract shall be deemed void ab9-10
initio.9-11
Sec. 21. NRS 624.250 is hereby amended to read as follows: 624.250 1. To obtain a license, an applicant must submit to the board9-13
an application in writing containing9-14
(a) The statement that the applicant desires the issuance of a license9-15
under the terms of this chapter.9-16
(b) The street address or other physical location of the applicant’s9-17
place of business.9-18
(c) The name of a person physically located in this state for service of9-19
process on the applicant.9-20
(d) The street address or other physical location in this state and, if9-21
different, the mailing address, for service of process on the applicant.9-22
(e) The names and residential and mailing addresses of any owners,9-23
partners, officers, directors, members and managerial personnel of the9-24
applicant.9-25
(f) Any information requested by the board to ascertain the9-26
background, financial responsibility, experience, knowledge and9-27
qualifications of the applicant.9-28
2. The application must be:9-29
(a) Made on a form prescribed by the board in accordance with the rules9-30
and regulations adopted by the board.9-31
(b) Accompanied by the fee fixed by this chapter.9-32
3. If the applicant is a natural person, the application must include the9-33
social security number of the applicant.9-34
Sec. 22. NRS 624.260 is hereby amended to read as follows: 624.260 1. The board shall require a licensee or an applicant for a9-36
contractor’s license to show such a degree of experience, financial9-37
responsibility and such general knowledge of the building, safety, health9-38
and lien laws of the State of Nevada and the9-39
principles of the contracting business as the board deems necessary for the9-40
safety and protection of the public.9-41
2. An applicant may qualify in regard to his experience and knowledge9-42
in the following ways:10-1
(a) If a natural person, he may qualify by personal appearance or by the10-2
appearance of his responsible managing employee.10-3
(b) If a copartnership, a corporation or any other combination or10-4
organization, it may qualify by the appearance of the responsible managing10-5
officer or member of the personnel of the applicant firm.10-6
3. The natural person qualifying on behalf of another natural person or10-7
firm under paragraphs (a) and (b) of subsection 2 must prove that he is a10-8
bona fide member or employee of that person or firm and when his10-9
principal or employer is actively engaged as a contractor shall exercise10-10
authority in connection with his principal or employer’s contracting10-11
business in the following manner:10-12
(a) To make technical and administrative decisions;10-13
(b) To hire, superintend, promote, transfer, lay off, discipline or10-14
discharge other employees and to direct them, either by himself or through10-15
others, or effectively to recommend such action on behalf of his principal10-16
or employer; and10-17
(c) To devote himself solely to his principal or employer’s business and10-18
not to take any other employment which would conflict with his duties10-19
under this subsection.10-20
4. A natural person may not qualify on behalf of another for more than10-21
one active license unless:10-22
(a) One person owns at least 25 percent of each licensee for which he10-23
qualifies; or10-24
(b) One licensee owns at least 25 percent of the other licensee.10-25
Sec. 23. NRS 624.263 is hereby amended to read as follows: 624.263 1.10-27
10-28
10-29
an applicant for a contractor’s license must be established independently10-30
of and without reliance on10-31
10-32
officers of the licensee or applicant, but the financial responsibility of10-33
10-34
applicant may be inquired into and considered as a criterion in determining10-35
the10-36
licensee or applicant.10-37
2. The financial responsibility of an applicant for a contractor’s license10-38
or of a licensed contractor must be determined by using the following10-39
standards and criteria in connection with each applicant or contractor and10-40
each associate or partner thereof:10-41
(a) Net worth.10-42
(b) Amount of liquid assets.10-43
(c) Prior payment and credit records.11-1
(d) Previous business experience.11-2
(e) Prior and pending lawsuits.11-3
(f) Prior and pending liens.11-4
(g) Adverse judgments.11-5
(h) Conviction of a felony or crime involving moral turpitude.11-6
(i) Prior suspension or revocation of a contractor’s license in Nevada or11-7
elsewhere.11-8
(j) An adjudication of bankruptcy or any other proceeding under the11-9
federal bankruptcy laws, including:11-10
(1) A composition, arrangement or reorganization proceeding;11-11
(2) The appointment of a receiver of the property of the applicant or11-12
contractor or any officer, director, associate or partner thereof under the11-13
laws of this state or the United States; or11-14
(3) The making of an assignment for the benefit of creditors.11-15
(k) Form of business organization (corporate or otherwise).11-16
(l) Information obtained from confidential financial references and11-17
credit reports.11-18
(m) Reputation for honesty and integrity of the applicant or contractor11-19
or any officer, director, associate or partner thereof.11-20
3. A licensed contractor shall, as soon as it is reasonably practicable,11-21
notify the board in writing upon the filing of a petition or application11-22
relating to the contractor that initiates any proceeding, appointment or11-23
assignment set forth in paragraph (j) of subsection 2. The written notice11-24
must be accompanied by:11-25
(a) A copy of the petition or application filed with the court; and11-26
(b) A copy of any order of the court which is relevant to the financial11-27
responsibility of the contractor, including any order appointing a trustee,11-28
receiver or assignee.11-29
Sec. 24. NRS 624.265 is hereby amended to read as follows: 624.265 1. An applicant for a contractor’s license and each officer,11-31
director, partner and associate thereof shall possess good character. Lack of11-32
character may be established by showing that the applicant or any officer,11-33
director, partner or associate thereof has:11-34
11-35
contractor, would be grounds for the suspension or revocation of a11-36
contractor’s license;11-37
11-38
11-39
ill to, been found guilty of or been convicted of a11-40
11-41
related to the activities of such person in such a manner as to demonstrate11-42
his unfitness to act as a contractor, and the time for appeal has elapsed or11-43
the judgment of conviction has been affirmed on appeal; or12-1
12-2
granting of a license for which the application has been made.12-3
2. Upon the request of the board, an applicant for a contractor’s12-4
license, and any officer, director, partner or associate of the applicant,12-5
must submit to the board completed fingerprint cards and a form12-6
authorizing an investigation of the applicant’s background and the12-7
submission of his fingerprints to the central repository for Nevada12-8
records of criminal history and the Federal Bureau of Investigation. The12-9
fingerprint cards and authorization form submitted must be those that12-10
are provided to the applicant by the board. The applicant’s fingerprints12-11
may be taken by an agent of the board or an agency of law enforcement.12-12
3. The board shall keep the results of the investigation confidential12-13
and not subject to inspection by the general public.12-14
4. The board shall establish by regulation the fee for processing the12-15
fingerprints to be paid by the applicant. The fee must not exceed the sum12-16
of the amounts charged by the central repository for Nevada records of12-17
criminal history and the Federal Bureau of Investigation for processing12-18
the fingerprints.12-19
5. The board may obtain records of a law enforcement agency or any12-20
other agency that maintains records of criminal history, including,12-21
without limitation, records of:12-22
(a) Arrests;12-23
(b) Guilty pleas;12-24
(c) Sentencing;12-25
(d) Probation;12-26
(e) Parole;12-27
(f) Bail;12-28
(g) Complaints; and12-29
(h) Final dispositions,12-30
for the investigation of a licensee or an applicant for a contractor’s12-31
license.12-32
Sec. 25. NRS 624.273 is hereby amended to read as follows: 624.273 1. Each bond or deposit required by NRS 624.270 must be12-34
in favor of the State of Nevada for the benefit of any person who:12-35
(a) As owner of the property to be improved entered into a construction12-36
contract with the contractor and is damaged by failure of the contractor to12-37
perform the contract or to remove liens filed against the property;12-38
(b) As an employee of the contractor performed labor on or about the12-39
site of the construction covered by the contract;12-40
(c) As a supplier or materialman furnished materials or equipment for12-41
the construction covered by the contract; or12-42
(d) Is injured by any unlawful act or omission of the contractor in the12-43
performance of a contract.13-1
2. Any person claiming against the bond or deposit may bring an action13-2
in a court of competent jurisdiction on the bond or against the board on the13-3
deposit for the amount of damage he has suffered to the extent covered by13-4
the bond or deposit. A person who brings action on a bond shall notify the13-5
board in writing upon filing the action. No action may be commenced on13-6
the bond or deposit 2 years after the commission of the act on which the13-7
action is based.13-8
3. Upon receiving a request from a person for whose benefit a bond or13-9
deposit is required, the board shall notify him that:13-10
(a) A bond is in effect or that a deposit has been made, and the amount13-11
of either;13-12
(b) There is an action against a bond, if that is the case, and the court,13-13
the title and number of the action and the amount sought by the plaintiff;13-14
and13-15
(c) There is an action against the board, if that is the case, and the13-16
amount sought by the plaintiff.13-17
4. If a surety, or in the case of a deposit, the board, desires to make13-18
payment without awaiting court action, the amount of the bond or deposit13-19
must be reduced to the extent of any payment made by the surety or the13-20
board in good faith under the bond or deposit. Any payment must be based13-21
on written claims received by the surety or board before the court action.13-22
5. The surety or the board may bring an action for interpleader against13-23
all claimants upon the bond or deposit. If it does so, it must publish notice13-24
of the action at least once each week for 2 weeks in a newspaper of general13-25
circulation in the county where the contractor has his principal place of13-26
business. The surety or the board is entitled to deduct its costs of the action,13-27
including attorney’s fees and publication, from its liability under the bond13-28
or from the deposit.13-29
6. A claim of any employee of the contractor for labor is a preferred13-30
claim against a bond or deposit. If any bond or deposit is insufficient to pay13-31
all claims for labor in full, the sum recovered must be distributed among all13-32
claimants for labor in proportion to the amounts of their respective claims.13-33
Partial payment of claims is not full payment, and the claimants may bring13-34
actions against the contractor for the unpaid balances.13-35
7. Claims, other than claims for labor, against a bond or deposit have13-36
equal priority, except where otherwise provided by law, and if the bond or13-37
deposit is insufficient to pay all of those claims in full, they must be paid13-38
pro rata. Partial payment of claims is not full payment, and the claimants13-39
may bring actions against the contractor for the unpaid balances.13-40
8. The board may not claim against the bond or deposit required13-41
pursuant to NRS 624.270 for the payment of an administrative fine13-42
imposed for a violation of the provisions of this chapter.14-1
Sec. 26. NRS 624.283 is hereby amended to read as follows: 624.283 1. Each license issued under the provisions of this chapter14-3
expires 1 year after the date on which it is issued, except that the board may14-4
by regulation prescribe shorter or longer periods and prorated fees to14-5
establish a system of staggered renewals. Any license which is not renewed14-6
on or before the date for renewal is automatically suspended.14-7
2. A license may be renewed by submitting to the board:14-8
(a) An application for renewal;14-9
(b) The statement required pursuant to NRS 624.268 if the holder of the14-10
license is a natural person; and14-11
(c) The fee for renewal fixed by the board.14-12
3. The board may require14-13
financial responsibility at any time14-14
(a) A financial statement that is prepared by14-15
certified public accountant14-16
14-17
14-18
14-19
14-20
(b) If the licensee performs residential construction, such additional14-21
documentation as the board deems appropriate.14-22
4. If a license is automatically suspended pursuant to subsection 1, the14-23
licensee may have his license reinstated upon filing an application for14-24
renewal within 6 months after the date of suspension and paying, in14-25
addition to the fee for renewal, a fee for reinstatement fixed by the board, if14-26
he is otherwise in good standing and there are no complaints pending14-27
against him. If he is otherwise not in good standing or there is a complaint14-28
pending, the board shall require him to provide a current financial14-29
statement prepared by14-30
establish other conditions for reinstatement. If the licensee is a natural14-31
person, his application for renewal must be accompanied by the statement14-32
required pursuant to NRS 624.268. A license which is not reinstated within14-33
6 months after it is automatically suspended may be canceled by the board,14-34
and a new license may be issued only upon application for an original14-35
contractor’s license.14-36
Sec. 27. NRS 624.295 is hereby amended to read as follows: 624.295 If a member of the board becomes aware that any one or a14-38
combination of the grounds for initiating disciplinary action may exist as to14-39
a contractor in this state, the member of the board may inform the executive14-40
14-41
officer, upon receiving such information shall take such actions as he14-42
deems appropriate under the circumstances.15-1
Sec. 28. NRS 624.300 is hereby amended to read as follows: 624.300 1. Except as otherwise provided in subsection15-3
board may:15-4
(a) Suspend or revoke licenses already issued;15-5
(b) Refuse renewals of licenses;15-6
(c) Impose limits on the field, scope and monetary limit of the license;15-7
(d) Impose an administrative fine of not more than $10,000;15-8
(e) Order the licensee to take action to correct a condition resulting from15-9
an act which constitutes a cause for disciplinary action, at the licensee’s15-10
cost15-11
(1) Perform the corrective work himself;15-12
(2) Hire and pay another licensee to perform the corrective work;15-13
or15-14
(3) Pay to the owner of the construction project a specified sum to15-15
correct the condition; or15-16
(f) Reprimand or take other less severe disciplinary action, including,15-17
without limitation, increasing the amount of the surety bond or cash deposit15-18
of the licensee,15-19
if the licensee commits any act which constitutes a cause for disciplinary15-20
action.15-21
2. If the board suspends or revokes the license of a contractor for15-22
failure to establish financial responsibility, the board may, in addition to15-23
any other conditions for reinstating or renewing the license, require that15-24
each contract undertaken by the licensee for a period to be designated by15-25
the board, not to exceed 12 months, be separately covered by a bond or15-26
bonds approved by the board and conditioned upon the performance of and15-27
the payment of labor and materials required by the contract.15-28
3. If a licensee violates the provisions of NRS 624.3014 or subsection15-29
3 of NRS 624.3015, the board may impose an administrative fine of not15-30
more than $20,000.15-31
4. If a licensee commits a fraudulent act which is a cause for15-32
disciplinary action under NRS 624.3016, the correction of any condition15-33
resulting from the act does not preclude the board from taking disciplinary15-34
action.15-35
15-36
that would be cause for disciplinary action, the correction of any resulting15-37
conditions does not preclude the board from taking disciplinary action15-38
pursuant to this section.15-39
15-40
decision of the board or a court, or the voluntary surrender of a license by a15-41
licensee, does not deprive the board of jurisdiction to proceed with any15-42
investigation of, or action or disciplinary proceeding against, the licensee15-43
or to render a decision suspending or revoking the license.16-1
16-2
16-3
16-4
16-5
16-6
16-7
7. If discipline is imposed pursuant to this section, including any16-8
discipline imposed pursuant to a stipulated settlement, the costs of the16-9
proceeding, including investigative costs and attorney’s fees, may be16-10
recovered by the board.16-11
Sec. 29. NRS 624.301 is hereby amended to read as follows: 624.301 The following acts, among others, constitute cause for16-13
disciplinary action under NRS 624.300:16-14
1. Abandonment without legal excuse of any construction project or16-15
operation engaged in or undertaken by the licensee as a contractor.16-16
2. Abandonment of a construction project when the percentage of16-17
the project completed is less than the percentage of the total price of the16-18
contract paid to the contractor at the time of abandonment, unless the16-19
contractor is entitled to retain the amount paid pursuant to the terms of16-20
the contract or the contractor refunds the excessive amount paid within16-21
30 days after the abandonment of the project.16-22
3. Failure in a material respect on the part of a licensee to complete any16-23
construction project or operation for the price stated in the contract for the16-24
project or operation or any modification of the contract.16-25
16-26
licensee as a contractor to prosecute a construction project or operation16-27
with reasonable diligence, thereby causing material injury to another.16-28
16-29
licensee to comply with the terms of a construction contract or written16-30
warranty, thereby causing material injury to another.16-31
Sec. 30. NRS 624.3011 is hereby amended to read as follows: 624.3011 1. The following acts, among others, constitute cause for16-33
disciplinary action under NRS 624.300:16-34
(a) Willful and prejudicial departure from or disregard of plans or16-35
specifications in any material respect without the consent of the owner or16-36
his authorized representative and the person entitled to have the particular16-37
construction project or operation completed in accordance with the plans16-38
and specifications.16-39
(b)16-40
16-41
16-42
(1) The building laws of the state or of any political subdivision16-43
thereof.17-1
(2) The safety laws or labor laws of the state.17-2
(3) Any provision of the Nevada health and safety laws or the17-3
regulations adopted thereunder relating to the digging, boring or drilling of17-4
water wells.17-5
(4) The laws of this state regarding industrial insurance.17-6
2. If a contractor performs construction without obtaining any17-7
necessary building permit, there is a rebuttable presumption that the17-8
contractor willfully and deliberately violated the building laws of this state17-9
or of its political subdivisions.17-10
17-11
17-12
Sec. 31. NRS 624.3012 is hereby amended to read as follows: 624.3012 The following acts, among others, constitute cause for17-14
disciplinary action under NRS 624.300:17-15
1. Diversion of17-16
of a specific construction project or operation or for a specified purpose in17-17
the completion of any construction project or operation to any other17-18
construction project or operation, obligation or purpose.17-19
2. Willful or deliberate failure by any licensee or agent or officer17-20
thereof to pay any17-21
rendered in connection with his operations as a contractor, when he has the17-22
capacity to pay or when he has received sufficient17-23
as payment for the particular construction work, project or operation for17-24
which the services or materials were rendered or purchased, or the false17-25
denial of any such amount due or the validity of the claim thereof with17-26
intent to secure a discount upon such indebtedness or with intent to injure,17-27
delay or defraud the person to whom such indebtedness is due.17-28
3. Failure to obtain the discharge or release of any lien recorded17-29
against the property to be improved by a construction project for the17-30
price of any materials or services rendered to the project by order of the17-31
contractor, when the contractor has received sufficient money therefor as17-32
payment for the project, within 75 days after the recording of the lien.17-33
Sec. 32. NRS 624.3013 is hereby amended to read as follows: 624.3013 The following acts, among others, constitute cause for17-35
disciplinary action pursuant to NRS 624.300:17-36
1. Failure to keep records showing all contracts, documents, receipts17-37
and disbursements by a licensee of all of his transactions as a contractor17-38
and to keep them open for inspection by the board or executive officer for a17-39
period of not less than 3 years after the completion of any construction17-40
project or operation to which the records refer.17-41
2. Misrepresentation of a material fact by an applicant or licensee17-42
17-43
furnished the board in connection with official matters of the board.18-1
3. Failure to establish financial responsibility pursuant to NRS18-2
624.220, 624.260, 624.263 and 624.265 and section 9 of this act at the18-3
time of renewal of the license or at any other time when required by the18-4
board.18-5
4. Failure to keep in force the bond or cash deposit pursuant to NRS18-6
624.270 for the full period required by the board.18-7
5. Failure in any material respect to comply with the provisions of this18-8
chapter or the regulations of the board.18-9
Sec. 33. NRS 624.3016 is hereby amended to read as follows: 624.3016 The following acts or omissions, among others, constitute18-11
cause for disciplinary action under NRS 624.300:18-12
1. Any fraudulent or deceitful act committed in the capacity of a18-13
contractor .18-14
2. A conviction of a violation of section 12 of this act or a felony or a18-15
crime involving moral turpitude.18-16
3. Knowingly making a false statement in or relating to the recording18-17
of a notice of lien pursuant to the provisions of NRS 108.226.18-18
4. Failure to give a notice required by NRS 108.245 or 108.246.18-19
5. Failure to comply with NRS 597.713, 597.716 or 597.71918-20
regulations of the board governing contracts for the construction of18-21
residential pools and spas.18-22
6. Failure to comply with NRS 624.321.18-23
7. Misrepresentation or the omission of a material fact, or the18-24
commission of any other fraudulent or deceitful act, to obtain a license.18-25
Sec. 34. NRS 624.307 is hereby amended to read as follows: 624.307 1. It is unlawful for any person, including a person exempt18-27
under NRS 624.330, to advertise as a contractor unless he has a valid18-28
license in the appropriate classification established by NRS 624.215 and18-29
624.220.18-30
2. As used in this section, "advertising" includes , but is not limited to ,18-31
the issuance of any sign, card or device or by the permitting or allowing of18-32
any sign or marking on a motor vehicle, in any building, structure,18-33
newspaper, magazine or airway transmission , on the Internet or in any18-34
directory under the listing of contractor with or without any limiting18-35
qualifications.18-36
3. All advertising by a licensed contractor must include the name of18-37
his company and the number of his license.18-38
Sec. 35. NRS 624.360 is hereby amended to read as follows: 624.360 1.18-40
18-41
described in subsection 2 of NRS 624.3013, NRS 624.3014 or subsection18-42
1, 3 or 7 of NRS 624.3016.19-1
2. Any person who violates subsection 1, subsection 1 of NRS19-2
624.230 or NRS 624.290, 624.305 or 624.307:19-3
(a) For a first offense, is guilty of a misdemeanor and shall be punished19-4
by a fine of not19-5
punished by imprisonment in the county jail for not more than 6 months .19-7
(b) For the second19-8
misdemeanor and shall be punished by a fine of not less than19-9
$2,000 nor more than19-10
imprisonment in the county jail for not more than 1 year.19-11
(c) For the third or subsequent offense, is guilty of a class E felony19-12
and shall be punished by a fine of not less than $5,000 nor more than19-13
$10,000 and may be further punished by imprisonment in the state prison19-14
for not less than 1 year and not more than 4 years.19-15
19-16
precluded by any disciplinary action taken by the board against a contractor19-17
pursuant to the provisions of NRS 624.300 to 624.305, inclusive19-18
section 10 of this act..19-19
Sec. 36. NRS 171.17751 is hereby amended to read as follows: 171.17751 1. Any board of county commissioners or governing body19-21
of a city may designate the chief officer of the organized fire department or19-22
any employees designated by him, and certain of its inspectors of solid19-23
waste management, building, housing and licensing inspectors, zoning19-24
enforcement officers, parking enforcement officers, animal control officers,19-25
traffic engineers, and marshals and park rangers of units of specialized law19-26
enforcement established pursuant to NRS 280.125, to prepare, sign and19-27
serve written citations on persons accused of violating a county or city19-28
ordinance.19-29
2. The state health officer and the health officer of each county, district19-30
and city may designate certain of his employees to prepare, sign and serve19-31
written citations on persons accused of violating any law, ordinance or19-32
regulation of a board of health that relates to public health.19-33
3. The chief of the manufactured housing division of the department of19-34
business and industry may designate certain of his employees to prepare,19-35
sign and serve written citations on persons accused of violating any law or19-36
regulation of the division relating to the provisions of chapters 118B, 461,19-37
461A and 489 of NRS.19-38
4. The state contractors’ board may designate certain of its employees19-39
to prepare, sign and serve written citations on persons19-40
19-41
5. An employee designated pursuant to this section:19-42
(a) May exercise the authority to prepare, sign and serve citations only19-43
within the field of enforcement in which he works;20-1
(b) May, if he is employed by a city or county, prepare, sign and serve a20-2
citation only to enforce an ordinance of the city or county by which he is20-3
employed; and20-4
(c) Shall comply with the provisions of NRS 171.1773.20-5
Sec. 37. NRS 278.610 is hereby amended to read as follows: 278.610 1. Except as otherwise provided in subsection 3, after the20-7
establishment of the position of building inspector and the filling of the20-8
position as provided in NRS 278.570, it is unlawful to erect, construct,20-9
reconstruct, alter or change the use of any building or other structure within20-10
the territory covered by the building code or zoning regulations without20-11
obtaining a building permit from the building inspector.20-12
2. The building inspector shall not issue any permit unless the plans of20-13
and for the proposed erection, construction, reconstruction, alteration or20-14
use fully conform to all building code and zoning regulations then in effect.20-15
3. The provisions of subsection 1 do not apply to a school district to20-16
which the state public works board has delegated its powers and duties20-17
under NRS 393.110.20-18
4. A building inspector shall not issue a building permit to a person20-19
acting for another unless the applicant proves to the satisfaction of the20-20
building inspector that he is licensed as a contractor for that work pursuant20-21
to the provisions of20-22
NRS.20-23
Sec. 38. NRS 289.300 is hereby amended to read as follows:20-24
289.300 1. A person employed as an investigator by the private20-25
investigator’s licensing board pursuant to NRS 648.025 has the powers of a20-26
peace officer.20-27
2. A person employed as a criminal investigator by the state20-28
contractors’ board pursuant to section 2 of this act has the powers of a20-29
peace officer to carry out his duties pursuant to subsection 2 of NRS20-30
624.115.20-31
Sec. 39. The amendatory provisions of this act do not apply to20-32
offenses that were committed before the effective date of this act.20-33
Sec. 40. This act becomes effective upon passage and approval.~