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 an investigations office to enforce the provisions of this1-5
chapter. The investigations office must include a special investigations1-6
unit consisting of criminal investigators and a compliance investigations1-7
unit consisting of compliance investigators.1-8
(b) Adopt regulations setting forth the qualifications required for1-9
investigators employed to carry out this section.1-10
2. As used in this section, "criminal investigator" means a person1-11
authorized to perform the duties set forth in subsection 2 of NRS1-12
624.115.2-1
Sec. 3. 1. The investigations office of the board shall:2-2
(a) Upon the receipt of a complaint against a licensee, initiate an2-3
investigation of the complaint.2-4
(b) Within 10 days after receiving such a complaint, notify the2-5
licensee and, if known, the person making the complaint of the initiation2-6
of the investigation, and provide a copy of the complaint to the licensee.2-7
(c) Upon the completion of its investigation of a complaint, provide2-8
the licensee and, if known, the person making the complaint with written2-9
notification of any action taken on the complaint and the reasons for2-10
taking that action.2-11
2. The investigations office of the board may attempt to resolve the2-12
complaint by:2-13
(a) Meeting and conferring with the licensee and the person making2-14
the complaint; and2-15
(b) Requesting the licensee to provide appropriate relief.2-16
3. If the subject matter of the complaint is not within the jurisdiction2-17
of the board, or if the board or the investigations office is unable to2-18
resolve the complaint after exhausting all reasonable remedies and2-19
methods of resolution, the board or its designee shall:2-20
(a) Forward the complaint, together with any evidence or other2-21
information in the possession of the board concerning the complaint, to2-22
any public or private agency which, in the opinion of the board, would be2-23
effective in resolving the complaint; and2-24
(b) Notify the person making the complaint of its action pursuant to2-25
paragraph (a) and of any other procedures which may be available to2-26
resolve the complaint.2-27
Sec. 4. 1. If the board or its designee, based upon a preponderance2-28
of the evidence, has reason to believe that a licensee or applicant for a2-29
contractor’s license has committed an act which constitutes a cause for2-30
disciplinary action pursuant to NRS 624.300, the board or its designee,2-31
as appropriate, may issue or authorize the issuance of a written2-32
administrative citation to the licensee or applicant. A citation issued2-33
pursuant to this section may include, without limitation:2-34
(a) An order to take action to correct a condition resulting from an act2-35
that constitutes a cause for disciplinary action, at the licensee’s or2-36
applicant’s cost;2-37
(b) An order to pay an administrative fine; and2-38
(c) An order to reimburse the board for the amount of the expenses2-39
incurred to investigate the complaint.2-40
2. If a written citation issued pursuant to subsection 1 includes an2-41
order to take action to correct a condition resulting from an act that2-42
constitutes a cause for disciplinary action, the citation must state the time2-43
permitted for compliance, which must be not less than 15 business days3-1
after the date the licensee or applicant receives the citation, and3-2
specifically 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 business days after the date on which the citation is3-17
served on the licensee or applicant.3-18
2. A licensee or applicant for a contractor’s license may contest,3-19
without limitation:3-20
(a) The facts forming the basis for the determination that the licensee3-21
or applicant has committed an act which constitutes a cause for3-22
disciplinary action;3-23
(b) The time allowed to take any corrective action ordered;3-24
(c) The amount of any administrative fine ordered;3-25
(d) The amount of any order to reimburse the board for the expenses3-26
incurred to investigate the licensee or applicant; and3-27
(e) Whether any corrective action described in the citation is3-28
reasonable.3-29
3. If a licensee or applicant for a contractor’s license does not3-30
contest a citation issued pursuant to section 4 of this act within 153-31
business days after the date on which the citation is served on the3-32
licensee or applicant, or on or before such later date as specified by the3-33
board pursuant to subsection 4, the citation shall be deemed a final order3-34
of the board and not subject to review by any court or agency.3-35
4. The board may, for good cause shown, extend the time to contest a3-36
citation issued pursuant to section 4 of this act.3-37
5. For the purposes of this section, a citation shall be deemed to have3-38
been served on a licensee or an applicant on:3-39
(a) The date on which the citation is personally delivered to the3-40
licensee or applicant; or3-41
(b) If the citation is mailed, the date on which the citation is mailed by3-42
certified mail to the last known business or residential address of the3-43
licensee or applicant.4-1
Sec. 7. If a licensee or applicant for a contractor’s license contests a4-2
citation issued pursuant to section 4 of this act or order to correct a4-3
violation of the provisions of this chapter within 15 business days after he4-4
receives the citation or order, or on or before such later date as specified4-5
by the board pursuant to subsection 4 of section 6 of this act, the board4-6
shall hold a hearing pursuant to NRS 624.310.4-7
Sec. 8. 1. On or before September 1 of each even-numbered year,4-8
the board or its designee shall:4-9
(a) Review the complaints received by the board to ascertain whether4-10
there are any similarities or common trends among any of those4-11
complaints;4-12
(b) Prepare a written summary that identifies potential difficulties in4-13
the regulation of contractors and the protection of the public pursuant to4-14
this chapter; and4-15
(c) Report any findings and recommendations for legislation to:4-16
(1) The governor; and4-17
(2) The director of the legislative counsel bureau for transmittal to4-18
the next regular session of the legislature.4-19
2. The board shall take such action as is necessary to keep the public4-20
informed of its activities pursuant to this section.4-21
Sec. 9. A licensee or an applicant for a contractor’s license must4-22
prove his financial responsibility by demonstrating that his past and4-23
current financial solvency and expectations for financial solvency in the4-24
future are such as to provide the board with a reasonable expectation4-25
that the licensee or applicant can successfully do business as a contractor4-26
without jeopardy to the public health, safety and welfare.4-27
Sec. 10. The following acts or omissions, among others, constitute4-28
cause for disciplinary action pursuant to NRS 624.300:4-29
1. Contracting, offering to contract or submitting a bid as a4-30
contractor if the contractor’s license has been suspended or revoked4-31
pursuant to NRS 624.300.4-32
2. Failure to comply with a written citation issued pursuant to section4-33
4 of this act within the time permitted for compliance set forth in the4-34
citation, or, if a hearing is held pursuant to NRS 624.310, within 154-35
business days after the hearing.4-36
3. Except as otherwise provided in subsection 2, failure to pay an4-37
administrative fine imposed pursuant to this chapter within 30 days after:4-38
(a) Receiving notice of the imposition of the fine; or4-39
(b) The final administrative or judicial decision affirming the4-40
imposition of the fine,4-41
whichever occurs later.4-42
4. The suspension, revocation or other disciplinary action taken by4-43
another state against a contractor based on a license issued by that state5-1
if the contractor is licensed in this state or applies for a license in this5-2
state. A certified copy of the suspension, revocation or other disciplinary5-3
action taken by another state against a contractor based on a license5-4
issued by that state is conclusive evidence of that action.5-5
5. Failure or refusal to respond to a written request from the board5-6
or its designee to cooperate in the investigation of a complaint.5-7
6. Failure or refusal to comply with a written request by the board or5-8
its designee for information or records, or obstructing or delaying the5-9
providing of such information or records.5-10
Sec. 11. A complaint against a licensee for the commission of any5-11
act or omission that constitutes cause for disciplinary action pursuant to5-12
NRS 624.300 must be filed in writing with the board within 4 years after5-13
the act or omission.5-14
Sec. 12. 1. Except as otherwise provided in this chapter, any5-15
person other than an applicant for a contractor’s license who takes an5-16
examination of the board on behalf of the applicant, is guilty of a5-17
misdemeanor.5-18
2. Any person who, without the authorization of the board, provides5-19
any portion of an examination of the board to another person, is guilty of5-20
a misdemeanor.5-21
Sec. 13. NRS 624.115 is hereby amended to read as follows: 624.115 1. The board may employ attorneys, investigators and other5-23
professional consultants and clerical personnel necessary to the discharge5-24
of its duties.5-25
2. The board may require criminal investigators who are employed by5-26
the board pursuant to section 2 of this act to5-27
5-28
(a) Conduct a background investigation of a licensee or an applicant5-29
for a contractor’s license;5-30
(b) Locate and identify persons who:5-31
(1) Engage in the business or act in the capacity of a contractor within5-32
this state5-33
5-34
(2) Submit bids on jobs situated within this state5-35
5-36
(3) Otherwise violate the provisions of this chapter or the5-37
regulations adopted pursuant to this chapter; and5-38
(c) Issue a written misdemeanor citation pursuant to NRS 171.1773 to5-39
a person who violates a provision of this chapter that is punishable as a5-40
misdemeanor. A criminal investigator may request any constable, sheriff5-41
or other peace officer to assist him in the issuance of such a citation.6-1
Sec. 14. NRS 624.165 is hereby amended to read as follows: 624.165 1. The board6-3
(a) Designate one or more of its employees for the investigation of6-4
constructional fraud;6-5
(b) Cooperate with other local, state or federal investigative and law6-6
enforcement agencies, and the attorney general;6-7
(c) Assist the attorney general or any official of an investigative or a law6-8
enforcement agency of this state, any other state or the Federal Government6-9
who requests assistance in investigating any act of constructional fraud; and6-10
(d) Furnish to those officials any information6-11
6-12
constructional fraud.6-13
2. The board may obtain records of a law enforcement agency or any6-14
other agency that maintains records of criminal history, including,6-15
without limitation, records of:6-16
(a) Arrests;6-17
(b) Guilty pleas;6-18
(c) Sentencing;6-19
(d) Probation;6-20
(e) Parole;6-21
(f) Bail;6-22
(g) Complaints; and6-23
(h) Final dispositions,6-24
for the investigation of constructional fraud.6-25
3. For the purposes of this section, constructional fraud occurs if a6-26
person engaged in construction knowingly:6-27
(a) Misapplies money under the circumstances described in NRS6-28
205.310;6-29
(b) Obtains money, property or labor by false pretense as described in6-30
NRS 205.380;6-31
(c) Receives payments and fails to state his own true name, or states a6-32
false name, contractor’s license number, address or telephone number of6-33
the person offering a service;6-34
(d) Commits any act of theft, forgery, fraud or embezzlement, in6-35
connection with a construction project, that violates a criminal statute of6-36
this state;6-37
(e) Acts as a contractor without:6-38
(1) Possessing a contractor’s license issued pursuant to this6-39
chapter; or6-40
(2) Possessing any other license required by this state or a political6-41
subdivision of this state; or6-42
(f) Otherwise fails to disclose a material fact.7-1
Sec. 15. NRS 624.170 is hereby amended to read as follows: 624.170 1. Any member of the board or the executive officer may7-3
take testimony and proofs concerning all matters within the jurisdiction of7-4
the board.7-5
2. The board or any member thereof, or the executive officer, may:7-6
(a) Administer oaths.7-7
(b) Certify to all official acts.7-8
(c) Issue subpoenas for the attendance of witnesses and the production7-9
of records, books and papers in connection with any hearing7-10
7-11
investigation or other proceeding of the board.7-12
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 any7-14
hearing ,7-15
compel the attendance of witnesses, the giving of testimony and the7-16
production of records, books and papers as required by any subpoena7-17
issued by the board or the executive officer.7-18
2. In case of the refusal of any witness to attend or testify or produce7-19
any7-20
district court in and for the county in which the hearing ,7-21
or other proceeding will be held by petition, setting forth that:7-22
(a) Due notice has been given of the time and place of attendance of the7-23
witness or the production of the records, books or papers;7-24
(b) The witness has been subpoenaed in the manner prescribed in this7-25
chapter; and7-26
(c) The witness has failed and refused to attend or produce the7-27
items required by subpoena before the board in the cause or proceeding7-28
named in the subpoena, or has refused to answer questions propounded to7-29
him in the course of the hearing7-30
proceeding,7-31
and ask an order of the court compelling the witness to attend and testify or7-32
produce the records, books or papers before the board.7-33
3. The court, upon petition of the board, shall enter an order directing7-34
the witness to appear before the court at a time and place to be fixed by the7-35
court in the order, the time to be not more than 10 days after the date of the7-36
order, and then and there show cause why he has not attended or testified or7-37
produced the records, books or papers before the board. A certified copy of7-38
the order must be served upon the witness.7-39
4. If it appears to the court that the subpoena was regularly issued by7-40
the board or the executive officer, the court shall thereupon enter an order7-41
that the witness appear before the board at the time and place fixed in the7-42
order and testify or produce the required records, books or papers. Upon8-1
failure to obey the order , the witness must be dealt with as for contempt of8-2
court.8-3
Sec. 17. NRS 624.200 is hereby amended to read as follows: 624.200 The board may in any hearing ,8-5
proceeding before it cause the depositions of witnesses residing within or8-6
without the state to be taken in the manner prescribed by the Nevada Rules8-7
of Civil Procedure for like depositions in civil actions in the district courts8-8
of this state, and to that end may compel the attendance of witnesses and8-9
the production of records, books and papers.8-10
Sec. 18. NRS 624.210 is hereby amended to read as follows: 624.210 Any party to any hearing ,8-12
proceeding before the board has the right to the attendance of witnesses in8-13
his behalf at the hearing ,8-14
deposition as set forth in this chapter upon making a request therefor to the8-15
board and designating the person sought to be subpoenaed.8-16
Sec. 19. NRS 624.220 is hereby amended to read as follows: 624.220 1. The board may adopt regulations necessary to effect the8-18
classification and subclassification of contractors in a manner consistent8-19
with established usage and procedure as found in the construction business,8-20
and may limit the field and scope of the operations of a licensed contractor8-21
to those in which he is classified and qualified to engage as defined by NRS8-22
624.215 and the regulations of the board.8-23
2. The board may limit the field and scope of the operations of a8-24
licensed contractor by establishing a monetary limit on a contractor’s8-25
license, and the limit must be the maximum contract a licensed contractor8-26
may undertake on one or more construction contracts on a single8-27
construction site or subdivision site for a single client. The board may take8-28
any other action designed to limit the field and scope of the operations of a8-29
contractor as may be necessary to protect the health, safety and general8-30
welfare of the public. The limit, if any, must be determined after8-31
consideration of the factors set forth in NRS 624.260, 624.263 and 624.2658-32
8-33
3. Nothing contained in this section prohibits a specialty contractor8-34
from taking and executing a contract involving the use of two or more8-35
crafts or trades, if the performance of the work in the crafts or trades, other8-36
than in which he is licensed, is incidental and supplemental to the8-37
performance of work in the craft for which the specialty contractor is8-38
licensed.8-39
Sec. 20. NRS 624.230 is hereby amended to read as follows: 624.230 1. It is unlawful for any person or combination of persons8-41
to:8-42
(a) Engage in the business or act in the capacity of a contractor within8-43
this state; or9-1
(b) Submit a bid on a job situated within this state,9-2
without having9-3
unless that person or combination of persons is exempted from licensure9-4
9-5
2. The district attorneys in this state shall prosecute all violations of9-6
this section which occur in their respective counties, unless the violations9-7
are prosecuted by the attorney general. Upon the request of the board, the9-8
attorney general shall prosecute any violation of this section in lieu of9-9
prosecution by the district attorney.9-10
3. In addition to any other penalty imposed pursuant to this chapter, a9-11
person who is convicted of violating subsection 1 may be required to pay:9-12
(a) Court costs and the costs of prosecution;9-13
(b) Reasonable costs of the investigation of the violation to the board;9-14
(c) Damages he caused as a result of the violation up to the amount of9-15
his pecuniary gain from the violation; or9-16
(d) Any combination of paragraphs (a), (b) and (c).9-17
4.9-18
9-19
9-20
violation of subsection 1, the bid or contract shall be deemed void ab9-21
initio.9-22
Sec. 21. NRS 624.250 is hereby amended to read as follows: 624.250 1. To obtain or renew a license, an applicant must submit to9-24
the board an application in writing containing9-25
(a) The statement that the applicant desires the issuance of a license9-26
under the terms of this chapter.9-27
(b) The street address or other physical location of the applicant’s9-28
place of business.9-29
(c) The name of a person physically located in this state for service of9-30
process on the applicant.9-31
(d) The street address or other physical location in this state and, if9-32
different, the mailing address, for service of process on the applicant.9-33
(e) The names and physical and mailing addresses of any owners,9-34
partners, officers, directors, members and managerial personnel of the9-35
applicant.9-36
(f) Any information requested by the board to ascertain the9-37
background, financial responsibility, experience, knowledge and9-38
qualifications of the applicant.9-39
2. The application must be:9-40
(a) Made on a form prescribed by the board in accordance with the rules9-41
and regulations adopted by the board.9-42
(b) Accompanied by the fee fixed by this chapter.10-1
3. If the applicant is a natural person, the application must include the10-2
social security number of the applicant.10-3
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 a10-5
contractor’s license to show such a degree of experience, financial10-6
responsibility and such general knowledge of the building, safety, health10-7
and lien laws of the State of Nevada and the10-8
principles of the contracting business as the board deems necessary for the10-9
safety and protection of the public.10-10
2. An applicant may qualify in regard to his experience and knowledge10-11
in the following ways:10-12
(a) If a natural person, he may qualify by personal appearance or by the10-13
appearance of his responsible managing employee.10-14
(b) If a copartnership, a corporation or any other combination or10-15
organization, it may qualify by the appearance of the responsible managing10-16
officer or member of the personnel of the applicant firm.10-17
3. The natural person qualifying on behalf of another natural person or10-18
firm under paragraphs (a) and (b) of subsection 2 must prove that he is a10-19
bona fide member or employee of that person or firm and when his10-20
principal or employer is actively engaged as a contractor shall exercise10-21
authority in connection with his principal or employer’s contracting10-22
business in the following manner:10-23
(a) To make technical and administrative decisions;10-24
(b) To hire, superintend, promote, transfer, lay off, discipline or10-25
discharge other employees and to direct them, either by himself or through10-26
others, or effectively to recommend such action on behalf of his principal10-27
or employer; and10-28
(c) To devote himself solely to his principal or employer’s business and10-29
not to take any other employment which would conflict with his duties10-30
under this subsection.10-31
4. A natural person may not qualify on behalf of another for more than10-32
one active license unless:10-33
(a) One person owns at least 25 percent of each licensee for which he10-34
qualifies; or10-35
(b) One licensee owns at least 25 percent of the other licensee.10-36
Sec. 23. NRS 624.263 is hereby amended to read as follows: 624.263 1.10-38
10-39
10-40
an applicant for a contractor’s license must be established independently10-41
of and without reliance on10-42
10-43
officers of the licensee or applicant, but the financial responsibility of11-1
11-2
applicant may be inquired into and considered as a criterion in determining11-3
the11-4
licensee or applicant.11-5
2. The financial responsibility of an applicant for a contractor’s license11-6
or of a licensed contractor must be determined by using the following11-7
standards and criteria in connection with each applicant or contractor and11-8
each associate or partner thereof:11-9
(a) Net worth.11-10
(b) Amount of liquid assets.11-11
(c) Prior payment and credit records.11-12
(d) Previous business experience.11-13
(e) Prior and pending lawsuits.11-14
(f) Prior and pending liens.11-15
(g) Adverse judgments.11-16
(h) Conviction of a felony or crime involving moral turpitude.11-17
(i) Prior suspension or revocation of a contractor’s license in Nevada or11-18
elsewhere.11-19
(j) An adjudication of bankruptcy or any other proceeding under the11-20
federal bankruptcy laws, including:11-21
(1) A composition, arrangement or reorganization proceeding;11-22
(2) The appointment of a receiver of the property of the applicant or11-23
contractor or any officer, director, associate or partner thereof under the11-24
laws of this state or the United States; or11-25
(3) The making of an assignment for the benefit of creditors.11-26
(k) Form of business organization (corporate or otherwise).11-27
(l) Information obtained from confidential financial references and11-28
credit reports.11-29
(m) Reputation for honesty and integrity of the applicant or contractor11-30
or any officer, director, associate or partner thereof.11-31
3. A licensed contractor shall, as soon as it is reasonably practicable,11-32
notify the board in writing upon the filing of a petition or application11-33
relating to the contractor that initiates any proceeding, appointment or11-34
assignment set forth in paragraph (j) of subsection 2. The written notice11-35
must be accompanied by:11-36
(a) A copy of the petition or application filed with the court; and11-37
(b) A copy of any order of the court which is relevant to the financial11-38
responsibility of the contractor, including any order appointing a trustee,11-39
receiver or assignee.11-40
4. Before issuing a license to an applicant who will engage in11-41
residential construction or renewing the license of a contractor who11-42
engages in residential construction, the board shall require the applicant12-1
or licensee to establish his financial responsibility by submitting to the12-2
board:12-3
(a) A financial statement prepared by a certified public accountant12-4
who is licensed pursuant to the provisions of chapter 628 of NRS; and12-5
(b) A statement setting forth the number of building permits issued to12-6
and construction projects completed by the licensee during the12-7
immediately preceding year and any other information required by the12-8
board. The statement submitted pursuant to this paragraph must be12-9
provided on a form approved by the board.12-10
5. In addition to the requirements set forth in subsection 4, the board12-11
may require a licensee to establish his financial responsibility at any12-12
time.12-13
6. An applicant for an initial contractor’s license or a licensee12-14
applying for the renewal of a contractor’s license has the burden of12-15
demonstrating his financial responsibility to the board.12-16
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,12-18
director, partner and associate thereof12-19
Lack of character may be established by showing that the applicant or any12-20
officer, director, partner or associate thereof has:12-21
12-22
contractor, would be grounds for the suspension or revocation of a12-23
contractor’s license;12-24
12-25
12-26
ill to, been found guilty of or been convicted of a12-27
12-28
related to the activities of such person in such a manner as to demonstrate12-29
his unfitness to act as a contractor, and the time for appeal has elapsed or12-30
the judgment of conviction has been affirmed on appeal; or12-31
12-32
granting of a license for which the application has been made.12-33
2. Upon the request of the board, an applicant for a contractor’s12-34
license, and any officer, director, partner or associate of the applicant,12-35
must submit to the board completed fingerprint cards and a form12-36
authorizing an investigation of the applicant’s background and the12-37
submission of his fingerprints to the central repository for Nevada12-38
records of criminal history and the Federal Bureau of Investigation. The12-39
fingerprint cards and authorization form submitted must be those that12-40
are provided to the applicant by the board. The applicant’s fingerprints12-41
may be taken by an agent of the board or an agency of law enforcement.12-42
3. The board shall keep the results of the investigation confidential12-43
and not subject to inspection by the general public.13-1
4. The board shall establish by regulation the fee for processing the13-2
fingerprints to be paid by the applicant. The fee must not exceed the sum13-3
of the amounts charged by the central repository for Nevada records of13-4
criminal history and the Federal Bureau of Investigation for processing13-5
the fingerprints.13-6
5. The board may obtain records of a law enforcement agency or any13-7
other agency that maintains records of criminal history, including,13-8
without limitation, records of:13-9
(a) Arrests;13-10
(b) Guilty pleas;13-11
(c) Sentencing;13-12
(d) Probation;13-13
(e) Parole;13-14
(f) Bail;13-15
(g) Complaints; and13-16
(h) Final dispositions,13-17
for the investigation of a licensee or an applicant for a contractor’s13-18
license.13-19
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 be13-21
in favor of the State of Nevada for the benefit of any person who:13-22
(a) As owner of the property to be improved entered into a construction13-23
contract with the contractor and is damaged by failure of the contractor to13-24
perform the contract or to remove liens filed against the property;13-25
(b) As an employee of the contractor performed labor on or about the13-26
site of the construction covered by the contract;13-27
(c) As a supplier or materialman furnished materials or equipment for13-28
the construction covered by the contract; or13-29
(d) Is injured by any unlawful act or omission of the contractor in the13-30
performance of a contract.13-31
2. Any person claiming against the bond or deposit may bring an action13-32
in a court of competent jurisdiction on the bond or against the board on the13-33
deposit for the amount of damage he has suffered to the extent covered by13-34
the bond or deposit.13-35
13-36
the bond or deposit 2 years after the commission of the act on which the13-37
action is based. If an action is commenced on the bond, the surety that13-38
executed the bond shall notify the board of the action within 30 days13-39
after the date that:13-40
(a) The surety is served with a complaint and summons; or13-41
(b) The action is commenced,13-42
whichever occurs first.14-1
3. Upon receiving a request from a person for whose benefit a bond or14-2
deposit is required, the board shall notify him that:14-3
(a) A bond is in effect or that a deposit has been made, and the amount14-4
of either;14-5
(b) There is an action against a bond, if that is the case, and the court,14-6
the title and number of the action and the amount sought by the plaintiff;14-7
and14-8
(c) There is an action against the board, if that is the case, and the14-9
amount sought by the plaintiff.14-10
4. If a surety, or in the case of a deposit, the board, desires to make14-11
payment without awaiting court action, the amount of the bond or deposit14-12
must be reduced to the extent of any payment made by the surety or the14-13
board in good faith under the bond or deposit. Any payment must be based14-14
on written claims received by the surety or board before the court action.14-15
5. The surety or the board may bring an action for interpleader against14-16
all claimants upon the bond or deposit. If it does so, it must publish notice14-17
of the action at least once each week for 2 weeks in a newspaper of general14-18
circulation in the county where the contractor has his principal place of14-19
business. The surety14-20
action, including14-21
the bond .14-22
including attorney’s fees and publication, from the deposit.14-23
6. A claim of any employee of the contractor for labor is a preferred14-24
claim against a bond or deposit. If any bond or deposit is insufficient to pay14-25
all claims for labor in full, the sum recovered must be distributed among all14-26
claimants for labor in proportion to the amounts of their respective claims.14-27
Partial payment of claims is not full payment, and the claimants may bring14-28
actions against the contractor for the unpaid balances.14-29
7. Claims, other than claims for labor, against a bond or deposit have14-30
equal priority, except where otherwise provided by law, and if the bond or14-31
deposit is insufficient to pay all of those claims in full, they must be paid14-32
pro rata. Partial payment of claims is not full payment, and the claimants14-33
may bring actions against the contractor for the unpaid balances.14-34
8. The board may not claim against the bond or deposit required14-35
pursuant to NRS 624.270 for the payment of an administrative fine14-36
imposed for a violation of the provisions of this chapter.14-37
Sec. 25.5. NRS 624.275 is hereby amended to read as follows: 624.275 1.14-39
contractor maintains in accordance with NRS 624.270:14-40
(a) The surety shall give prompt notice to the board of any claims paid14-41
against the bond of the licensed contractor.14-42
(b) The surety may cancel the bond upon giving 60 days’ notice to the14-43
board and to the contractor by certified mail.15-1
2. Upon receipt by the board of the notice described in paragraph (a)15-2
of subsection 1, the board shall immediately notify the contractor who is15-3
the principal on the bond that his license will be suspended or revoked15-4
unless he furnishes an equivalent bond or establishes an equivalent cash15-5
deposit before a date set by the board.15-6
3. Upon receipt by the board of the notice15-7
(b) of subsection 1, the board shall immediately notify the contractor who15-8
is the principal on the bond that his license will be suspended or revoked15-9
unless he furnishes an equivalent bond or establishes an equivalent cash15-10
deposit before the effective date of the cancellation.15-11
4. The notice mailed to the contractor by the board pursuant to15-12
subsection 2 or 3 must be15-13
of record in the office of the board.15-14
15-15
notice from the board, his license must be suspended or revoked on the date15-16
15-17
(a) Set by the board, if the notice was provided to the contractor15-18
pursuant to subsection 2; or15-19
(b) The bond is canceled15-20
contractor pursuant to subsection 3.15-21
Sec. 26. NRS 624.283 is hereby amended to read as follows: 624.283 1. Each license issued under the provisions of this chapter15-23
expires 1 year after the date on which it is issued, except that the board may15-24
by regulation prescribe shorter or longer periods and prorated fees to15-25
establish a system of staggered renewals. Any license which is not renewed15-26
on or before the date for renewal is automatically suspended.15-27
2. A license may be renewed by submitting to the board:15-28
(a) An application for renewal;15-29
(b) The statement required pursuant to NRS 624.268 if the holder of the15-30
license is a natural person; and15-31
(c) The fee for renewal fixed by the board.15-32
3. The board may require15-33
financial responsibility at any time15-34
(a) A financial statement that is prepared by15-35
certified public accountant15-36
15-37
15-38
15-39
15-40
(b) If the licensee performs residential construction, such additional15-41
documentation as the board deems appropriate.15-42
4. If a license is automatically suspended pursuant to subsection 1, the15-43
licensee may have his license reinstated upon filing an application for16-1
renewal within 6 months after the date of suspension and paying, in16-2
addition to the fee for renewal, a fee for reinstatement fixed by the board, if16-3
he is otherwise in good standing and there are no complaints pending16-4
against him. If he is otherwise not in good standing or there is a complaint16-5
pending, the board shall require him to provide a current financial16-6
statement prepared by16-7
establish other conditions for reinstatement. If the licensee is a natural16-8
person, his application for renewal must be accompanied by the statement16-9
required pursuant to NRS 624.268. A license which is not reinstated within16-10
6 months after it is automatically suspended may be canceled by the board,16-11
and a new license may be issued only upon application for an original16-12
contractor’s license.16-13
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 a16-15
combination of the grounds for initiating disciplinary action may exist as to16-16
a contractor in this state, the member of the board may inform the executive16-17
16-18
officer, upon receiving such information shall take such actions as he16-19
deems appropriate under the circumstances.16-20
Sec. 28. NRS 624.300 is hereby amended to read as follows: 624.300 1. Except as otherwise provided in subsection16-22
board may:16-23
(a) Suspend or revoke licenses already issued;16-24
(b) Refuse renewals of licenses;16-25
(c) Impose limits on the field, scope and monetary limit of the license;16-26
(d) Impose an administrative fine of not more than $10,000;16-27
(e) Order the licensee to take action to correct a condition resulting from16-28
an act which constitutes a cause for disciplinary action, at the licensee’s16-29
cost16-30
(1) Perform the corrective work himself;16-31
(2) Hire and pay another licensee to perform the corrective work;16-32
or16-33
(3) Pay to the owner of the construction project a specified sum to16-34
correct the condition; or16-35
(f) Reprimand or take other less severe disciplinary action, including,16-36
without limitation, increasing the amount of the surety bond or cash deposit16-37
of the licensee,16-38
if the licensee commits any act which constitutes a cause for disciplinary16-39
action.16-40
2. If the board suspends or revokes the license of a contractor for16-41
failure to establish financial responsibility, the board may, in addition to16-42
any other conditions for reinstating or renewing the license, require that16-43
each contract undertaken by the licensee for a period to be designated by17-1
the board, not to exceed 12 months, be separately covered by a bond or17-2
bonds approved by the board and conditioned upon the performance of and17-3
the payment of labor and materials required by the contract.17-4
3. If a licensee violates the provisions of NRS 624.3014 or subsection17-5
3 of NRS 624.3015, the board may impose an administrative fine of not17-6
more than $20,000.17-7
4. If a licensee commits a fraudulent act which is a cause for17-8
disciplinary action under NRS 624.3016, the correction of any condition17-9
resulting from the act does not preclude the board from taking disciplinary17-10
action.17-11
17-12
that would be cause for disciplinary action, the correction of any resulting17-13
conditions does not preclude the board from taking disciplinary action17-14
pursuant to this section.17-15
17-16
decision of the board or a court, or the voluntary surrender of a license by a17-17
licensee, does not deprive the board of jurisdiction to proceed with any17-18
investigation of, or action or disciplinary proceeding against, the licensee17-19
or to render a decision suspending or revoking the license.17-20
17-21
17-22
17-23
17-24
17-25
17-26
7. If discipline is imposed pursuant to this section, including any17-27
discipline imposed pursuant to a stipulated settlement, the costs of the17-28
proceeding, including investigative costs and attorney’s fees, may be17-29
recovered by the board.17-30
Sec. 29. NRS 624.301 is hereby amended to read as follows: 624.301 The following acts, among others, constitute cause for17-32
disciplinary action under NRS 624.300:17-33
1. Abandonment without legal excuse of any construction project or17-34
operation engaged in or undertaken by the licensee as a contractor.17-35
2. Abandonment of a construction project when the percentage of17-36
the project completed is less than the percentage of the total price of the17-37
contract paid to the contractor at the time of abandonment, unless the17-38
contractor is entitled to retain the amount paid pursuant to the terms of17-39
the contract or the contractor refunds the excessive amount paid within17-40
30 days after the abandonment of the project.17-41
3. Failure in a material respect on the part of a licensee to complete any17-42
construction project or operation for the price stated in the contract for the17-43
project or operation or any modification of the contract.18-1
18-2
licensee as a contractor to prosecute a construction project or operation18-3
with reasonable diligence, thereby causing material injury to another.18-4
18-5
licensee to comply with the terms of a construction contract or written18-6
warranty, thereby causing material injury to another.18-7
Sec. 30. NRS 624.3011 is hereby amended to read as follows: 624.3011 1. The following acts, among others, constitute cause for18-9
disciplinary action under NRS 624.300:18-10
(a) Willful and prejudicial departure from or disregard of plans or18-11
specifications in any material respect without the consent of the owner or18-12
his authorized representative and the person entitled to have the particular18-13
construction project or operation completed in accordance with the plans18-14
and specifications.18-15
(b)18-16
18-17
18-18
(1) The building laws of the state or of any political subdivision18-19
thereof.18-20
(2) The safety laws or labor laws of the state.18-21
(3) Any provision of the Nevada health and safety laws or the18-22
regulations adopted thereunder relating to the digging, boring or drilling of18-23
water wells.18-24
(4) The laws of this state regarding industrial insurance.18-25
2. If a contractor performs construction without obtaining any18-26
necessary building permit, there is a rebuttable presumption that the18-27
contractor willfully and deliberately violated the building laws of this state18-28
or of its political subdivisions.18-29
18-30
18-31
Sec. 31. NRS 624.3012 is hereby amended to read as follows: 624.3012 The following acts, among others, constitute cause for18-33
disciplinary action under NRS 624.300:18-34
1. Diversion of18-35
of a specific construction project or operation or for a specified purpose in18-36
the completion of any construction project or operation to any other18-37
construction project or operation, obligation or purpose.18-38
2. Willful or deliberate failure by any licensee or agent or officer18-39
thereof to pay any18-40
rendered in connection with his operations as a contractor, when he has the18-41
capacity to pay or when he has received sufficient18-42
as payment for the particular construction work, project or operation for18-43
which the services or materials were rendered or purchased, or the false19-1
denial of any such amount due or the validity of the claim thereof with19-2
intent to secure a discount upon such indebtedness or with intent to injure,19-3
delay or defraud the person to whom such indebtedness is due.19-4
3. Failure to obtain the discharge or release of any lien recorded19-5
against the property to be improved by a construction project for the19-6
price of any materials or services rendered to the project by order of the19-7
contractor, when the contractor has received sufficient money therefor as19-8
payment for the project, within 75 days after the recording of the lien.19-9
Sec. 32. NRS 624.3013 is hereby amended to read as follows: 624.3013 The following acts, among others, constitute cause for19-11
disciplinary action pursuant to NRS 624.300:19-12
1. Failure to keep records showing all contracts, documents, receipts19-13
and disbursements by a licensee of all of his transactions as a contractor19-14
and to keep them open for inspection by the board or executive officer for a19-15
period of not less than 3 years after the completion of any construction19-16
project or operation to which the records refer.19-17
2. Misrepresentation of a material fact by an applicant or licensee19-18
19-19
furnished the board in connection with official matters of the board.19-20
3. Failure to establish financial responsibility pursuant to NRS19-21
624.220, 624.260, 624.263 and 624.265 and section 9 of this act at the19-22
time of renewal of the license or at any other time when required by the19-23
board.19-24
4. Failure to keep in force the bond or cash deposit pursuant to NRS19-25
624.270 for the full period required by the board.19-26
5. Failure in any material respect to comply with the provisions of this19-27
chapter or the regulations of the board.19-28
Sec. 33. NRS 624.3016 is hereby amended to read as follows: 624.3016 The following acts or omissions, among others, constitute19-30
cause for disciplinary action under NRS 624.300:19-31
1. Any fraudulent or deceitful act committed in the capacity of a19-32
contractor .19-33
2. A conviction of a violation of section 12 of this act or a felony or a19-34
crime involving moral turpitude.19-35
3. Knowingly making a false statement in or relating to the recording19-36
of a notice of lien pursuant to the provisions of NRS 108.226.19-37
4. Failure to give a notice required by NRS 108.245 or 108.246.19-38
5. Failure to comply with NRS 597.713, 597.716 or 597.71919-39
regulations of the board governing contracts for the construction of19-40
residential pools and spas.19-41
6. Failure to comply with NRS 624.321.19-42
7. Misrepresentation or the omission of a material fact, or the19-43
commission of any other fraudulent or deceitful act, to obtain a license.20-1
Sec. 34. NRS 624.307 is hereby amended to read as follows: 624.307 1. It is unlawful for any person, including a person exempt20-3
under NRS 624.330, to advertise as a contractor unless he has a valid20-4
license in the appropriate classification established by NRS 624.215 and20-5
624.220.20-6
2. As used in this section, "advertising" includes , but is not limited to ,20-7
the issuance of any sign, card or device or by the permitting or allowing of20-8
any sign or marking on a motor vehicle, in any building, structure,20-9
newspaper, magazine or airway transmission , on the Internet or in any20-10
directory under the listing of contractor with or without any limiting20-11
qualifications.20-12
3. All advertising by a licensed contractor must include the name of20-13
his company and the number of his license.20-14
Sec. 35. NRS 624.360 is hereby amended to read as follows: 624.360 1.20-16
20-17
described in subsection 2 of NRS 624.3013, NRS 624.3014 or subsection20-18
1, 3 or 7 of NRS 624.3016.20-19
2. Any person who violates subsection 1, subsection 1 of NRS20-20
624.230 or NRS 624.290, 624.305 or 624.307:20-21
(a) For a first offense, is guilty of a misdemeanor and shall be punished20-22
by a fine of not20-23
punished by imprisonment in the county jail for not more than 6 months .20-25
(b) For the second20-26
misdemeanor and shall be punished by a fine of not less than20-27
$2,000 nor more than20-28
imprisonment in the county jail for not more than 1 year.20-29
(c) For the third or subsequent offense, is guilty of a class E felony20-30
and shall be punished by a fine of not less than $5,000 nor more than20-31
$10,000 and may be further punished by imprisonment in the state prison20-32
for not less than 1 year and not more than 4 years.20-33
20-34
precluded by any disciplinary action taken by the board against a contractor20-35
pursuant to the provisions of NRS 624.300 to 624.305, inclusive20-36
section 10 of this act..20-37
Sec. 36. NRS 171.17751 is hereby amended to read as follows: 171.17751 1. Any board of county commissioners or governing body20-39
of a city may designate the chief officer of the organized fire department or20-40
any employees designated by him, and certain of its inspectors of solid20-41
waste management, building, housing and licensing inspectors, zoning20-42
enforcement officers, parking enforcement officers, animal control officers,20-43
traffic engineers, and marshals and park rangers of units of specialized law21-1
enforcement established pursuant to NRS 280.125, to prepare, sign and21-2
serve written citations on persons accused of violating a county or city21-3
ordinance.21-4
2. The state health officer and the health officer of each county, district21-5
and city may designate certain of his employees to prepare, sign and serve21-6
written citations on persons accused of violating any law, ordinance or21-7
regulation of a board of health that relates to public health.21-8
3. The chief of the manufactured housing division of the department of21-9
business and industry may designate certain of his employees to prepare,21-10
sign and serve written citations on persons accused of violating any law or21-11
regulation of the division relating to the provisions of chapters 118B, 461,21-12
461A and 489 of NRS.21-13
4. The state contractors’ board may designate certain of its employees21-14
to prepare, sign and serve written citations on persons21-15
21-16
5. An employee designated pursuant to this section:21-17
(a) May exercise the authority to prepare, sign and serve citations only21-18
within the field of enforcement in which he works;21-19
(b) May, if he is employed by a city or county, prepare, sign and serve a21-20
citation only to enforce an ordinance of the city or county by which he is21-21
employed; and21-22
(c) Shall comply with the provisions of NRS 171.1773.21-23
Sec. 37. NRS 278.610 is hereby amended to read as follows: 278.610 1. Except as otherwise provided in subsection 3, after the21-25
establishment of the position of building inspector and the filling of the21-26
position as provided in NRS 278.570, it is unlawful to erect, construct,21-27
reconstruct, alter or change the use of any building or other structure within21-28
the territory covered by the building code or zoning regulations without21-29
obtaining a building permit from the building inspector.21-30
2. The building inspector shall not issue any permit unless the plans of21-31
and for the proposed erection, construction, reconstruction, alteration or21-32
use fully conform to all building code and zoning regulations then in effect.21-33
3. The provisions of subsection 1 do not apply to a school district to21-34
which the state public works board has delegated its powers and duties21-35
under NRS 393.110.21-36
4. A building inspector shall not issue a building permit to a person21-37
acting for another unless the applicant proves to the satisfaction of the21-38
building inspector that he is licensed as a contractor for that work pursuant21-39
to the provisions of21-40
NRS.22-1
Sec. 38. NRS 289.300 is hereby amended to read as follows:22-2
289.300 1. A person employed as an investigator by the private22-3
investigator’s licensing board pursuant to NRS 648.025 has the powers of a22-4
peace officer.22-5
2. A person employed as a criminal investigator by the state22-6
contractors’ board pursuant to section 2 of this act has the powers of a22-7
peace officer to carry out his duties pursuant to subsection 2 of NRS22-8
624.115, for the limited purpose of obtaining and exchanging22-9
information on persons who hold a contractor’s license or are applying22-10
for a contractor’s license.22-11
Sec. 39. The amendatory provisions of this act do not apply to22-12
offenses that were committed before October 1, 1999.~