Assembly Bill No. 634–Committee on Commerce and Labor

(On Behalf of Contractors’ Board)

March 22, 1999

____________

Referred to Committee on Commerce and Labor

 

SUMMARY—Makes various changes to provisions governing contractors. (BDR 54-762)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: Yes.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to contractors; providing for the establishment of an investigations office by the state contractors’ board and prescribing its duties; making various changes regarding the procedures and grounds for taking and the scope of disciplinary action against a contractor; requiring annual reports by the state contractors’ board; making various changes concerning constructional fraud, proceedings of the board, the prerequisites to obtaining and maintaining a license, the enforcement of licensing requirements and the imposition of administrative and criminal penalties for violations; providing additional administrative and criminal penalties; and providing other matters properly relating thereto.

 

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 thereto

1-2 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 this

1-5 chapter. The investigations office must include a special investigations

1-6 unit consisting of criminal investigators and a compliance investigations

1-7 unit consisting of compliance investigators.

1-8 (b) Adopt regulations setting forth the qualifications required for

1-9 investigators employed to carry out this section.

1-10 2. As used in this section, "criminal investigator" means a person

1-11 authorized to perform the duties set forth in subsection 2 of NRS

1-12 624.115.

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 an

2-3 investigation of the complaint.

2-4 (b) Within 10 days after receiving such a complaint, notify the

2-5 licensee and, if known, the person making the complaint of the initiation

2-6 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, provide

2-8 the licensee and, if known, the person making the complaint with written

2-9 notification of any action taken on the complaint and the reasons for

2-10 taking that action.

2-11 2. The investigations office of the board may attempt to resolve the

2-12 complaint by:

2-13 (a) Meeting and conferring with the licensee and the person making

2-14 the complaint; and

2-15 (b) Requesting the licensee to provide appropriate relief.

2-16 3. If the subject matter of the complaint is not within the jurisdiction

2-17 of the board, or if the board or the investigations office is unable to

2-18 resolve the complaint after exhausting all reasonable remedies and

2-19 methods of resolution, the board or its designee shall:

2-20 (a) Forward the complaint, together with any evidence or other

2-21 information in the possession of the board concerning the complaint, to

2-22 any public or private agency which, in the opinion of the board, would be

2-23 effective in resolving the complaint; and

2-24 (b) Notify the person making the complaint of its action pursuant to

2-25 paragraph (a) and of any other procedures which may be available to

2-26 resolve the complaint.

2-27 Sec. 4. 1. If the board or its designee, based upon a preponderance

2-28 of the evidence, has reason to believe that a licensee or applicant for a

2-29 contractor’s license has committed an act which constitutes a cause for

2-30 disciplinary action pursuant to NRS 624.300, the board or its designee,

2-31 as appropriate, may issue or authorize the issuance of a written

2-32 administrative citation to the licensee or applicant. A citation issued

2-33 pursuant to this section may include, without limitation:

2-34 (a) An order to take action to correct a condition resulting from an act

2-35 that constitutes a cause for disciplinary action, at the licensee’s or

2-36 applicant’s cost;

2-37 (b) An order to pay an administrative fine; and

2-38 (c) An order to reimburse the board for the amount of the expenses

2-39 incurred to investigate the complaint.

2-40 2. If a written citation issued pursuant to subsection 1 includes an

2-41 order to take action to correct a condition resulting from an act that

2-42 constitutes a cause for disciplinary action, the citation must state the time

2-43 permitted for compliance, which must be not less than 15 business days

3-1 after the date the licensee or applicant receives the citation, and

3-2 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 a

3-6 condition resulting from an act that constitutes a cause for disciplinary

3-7 action if he is so ordered pursuant to section 4 of this act; and

3-8 3. Imposition of an administrative fine pursuant to the provisions of

3-9 this chapter. The board must consider:

3-10 (a) The gravity of the violation;

3-11 (b) The good faith of the licensee; and

3-12 (c) Any history of previous violations of the provisions of this chapter

3-13 by the licensee.

3-14 Sec. 6. 1. A licensee or applicant for a contractor’s license who is

3-15 issued a written citation pursuant to section 4 of this act may contest the

3-16 citation within 15 business days after the date on which the citation is

3-17 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 licensee

3-21 or applicant has committed an act which constitutes a cause for

3-22 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 expenses

3-26 incurred to investigate the licensee or applicant; and

3-27 (e) Whether any corrective action described in the citation is

3-28 reasonable.

3-29 3. If a licensee or applicant for a contractor’s license does not

3-30 contest a citation issued pursuant to section 4 of this act within 15

3-31 business days after the date on which the citation is served on the

3-32 licensee or applicant, or on or before such later date as specified by the

3-33 board pursuant to subsection 4, the citation shall be deemed a final order

3-34 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 a

3-36 citation issued pursuant to section 4 of this act.

3-37 5. For the purposes of this section, a citation shall be deemed to have

3-38 been served on a licensee or an applicant on:

3-39 (a) The date on which the citation is personally delivered to the

3-40 licensee or applicant; or

3-41 (b) If the citation is mailed, the date on which the citation is mailed by

3-42 certified mail to the last known business or residential address of the

3-43 licensee or applicant.

4-1 Sec. 7. If a licensee or applicant for a contractor’s license contests a

4-2 citation issued pursuant to section 4 of this act or order to correct a

4-3 violation of the provisions of this chapter within 15 business days after he

4-4 receives the citation or order, or on or before such later date as specified

4-5 by the board pursuant to subsection 4 of section 6 of this act, the board

4-6 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 whether

4-10 there are any similarities or common trends among any of those

4-11 complaints;

4-12 (b) Prepare a written summary that identifies potential difficulties in

4-13 the regulation of contractors and the protection of the public pursuant to

4-14 this chapter; and

4-15 (c) Report any findings and recommendations for legislation to:

4-16 (1) The governor; and

4-17 (2) The director of the legislative counsel bureau for transmittal to

4-18 the next regular session of the legislature.

4-19 2. The board shall take such action as is necessary to keep the public

4-20 informed of its activities pursuant to this section.

4-21 Sec. 9. A licensee or an applicant for a contractor’s license must

4-22 prove his financial responsibility by demonstrating that his past and

4-23 current financial solvency and expectations for financial solvency in the

4-24 future are such as to provide the board with a reasonable expectation

4-25 that the licensee or applicant can successfully do business as a contractor

4-26 without jeopardy to the public health, safety and welfare.

4-27 Sec. 10. The following acts or omissions, among others, constitute

4-28 cause for disciplinary action pursuant to NRS 624.300:

4-29 1. Contracting, offering to contract or submitting a bid as a

4-30 contractor if the contractor’s license has been suspended or revoked

4-31 pursuant to NRS 624.300.

4-32 2. Failure to comply with a written citation issued pursuant to section

4-33 4 of this act within the time permitted for compliance set forth in the

4-34 citation, or, if a hearing is held pursuant to NRS 624.310, within 15

4-35 business days after the hearing.

4-36 3. Except as otherwise provided in subsection 2, failure to pay an

4-37 administrative fine imposed pursuant to this chapter within 30 days after:

4-38 (a) Receiving notice of the imposition of the fine; or

4-39 (b) The final administrative or judicial decision affirming the

4-40 imposition of the fine,

4-41 whichever occurs later.

4-42 4. The suspension, revocation or other disciplinary action taken by

4-43 another state against a contractor based on a license issued by that state

5-1 if the contractor is licensed in this state or applies for a license in this

5-2 state. A certified copy of the suspension, revocation or other disciplinary

5-3 action taken by another state against a contractor based on a license

5-4 issued by that state is conclusive evidence of that action.

5-5 5. Failure or refusal to respond to a written request from the board

5-6 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 or

5-8 its designee for information or records, or obstructing or delaying the

5-9 providing of such information or records.

5-10 Sec. 11. A complaint against a licensee for the commission of any

5-11 act or omission that constitutes cause for disciplinary action pursuant to

5-12 NRS 624.300 must be filed in writing with the board within 4 years after

5-13 the act or omission.

5-14 Sec. 12. 1. Except as otherwise provided in this chapter, any

5-15 person other than an applicant for a contractor’s license who takes an

5-16 examination of the board on behalf of the applicant, is guilty of a

5-17 misdemeanor.

5-18 2. Any person who, without the authorization of the board, provides

5-19 any portion of an examination of the board to another person, is guilty of

5-20 a misdemeanor.

5-21 Sec. 13. NRS 624.115 is hereby amended to read as follows:

5-22 624.115 1. The board may employ attorneys, investigators and other

5-23 professional consultants and clerical personnel necessary to the discharge

5-24 of its duties.

5-25 2. The board may require criminal investigators who are employed by

5-26 the board pursuant to section 2 of this act to [locate persons who:

5-27 (a)] :

5-28 (a) Conduct a background investigation of a licensee or an applicant

5-29 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 within

5-32 this state [; or

5-33 (b)] in violation of the provisions of this chapter;

5-34 (2) Submit bids on jobs situated within this state [,] in violation of

5-35 [NRS 624.230.] the provisions of this chapter; or

5-36 (3) Otherwise violate the provisions of this chapter or the

5-37 regulations adopted pursuant to this chapter; and

5-38 (c) Issue a written misdemeanor citation pursuant to NRS 171.1773 to

5-39 a person who violates a provision of this chapter that is punishable as a

5-40 misdemeanor. A criminal investigator may request any constable, sheriff

5-41 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:

6-2 624.165 1. The board [may:] shall:

6-3 (a) Designate one or more of its employees for the investigation of

6-4 constructional fraud;

6-5 (b) Cooperate with other local, state or federal investigative and law

6-6 enforcement agencies, and the attorney general;

6-7 (c) Assist the attorney general or any official of an investigative or a law

6-8 enforcement agency of this state, any other state or the Federal Government

6-9 who requests assistance in investigating any act of constructional fraud; and

6-10 (d) Furnish to those officials any information [, not otherwise

6-11 confidential,] concerning its investigation or report on any act of

6-12 constructional fraud.

6-13 2. The board may obtain records of a law enforcement agency or any

6-14 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; and

6-23 (h) Final dispositions,

6-24 for the investigation of constructional fraud.

6-25 3. For the purposes of this section, constructional fraud occurs if a

6-26 person engaged in construction knowingly:

6-27 (a) Misapplies money under the circumstances described in NRS

6-28 205.310;

6-29 (b) Obtains money, property or labor by false pretense as described in

6-30 NRS 205.380;

6-31 (c) Receives payments and fails to state his own true name, or states a

6-32 false name, contractor’s license number, address or telephone number of

6-33 the person offering a service; [or]

6-34 (d) Commits any act of theft, forgery, fraud or embezzlement, in

6-35 connection with a construction project, that violates a criminal statute of

6-36 this state;

6-37 (e) Acts as a contractor without:

6-38 (1) Possessing a contractor’s license issued pursuant to this

6-39 chapter; or

6-40 (2) Possessing any other license required by this state or a political

6-41 subdivision of this state; or

6-42 (f) Otherwise fails to disclose a material fact.

7-1 Sec. 15. NRS 624.170 is hereby amended to read as follows:

7-2 624.170 1. Any member of the board or the executive officer may

7-3 take testimony and proofs concerning all matters within the jurisdiction of

7-4 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 production

7-9 of records, books and papers in connection with any hearing [before the

7-10 board or any investigation by the board of an unlicensed contractor.] ,

7-11 investigation or other proceeding of the board.

7-12 Sec. 16. NRS 624.190 is hereby amended to read as follows:

7-13 624.190 1. The district court in and for the county in which any

7-14 hearing , [or] investigation or other proceeding is held by the board may

7-15 compel the attendance of witnesses, the giving of testimony and the

7-16 production of records, books and papers as required by any subpoena

7-17 issued by the board or the executive officer.

7-18 2. In case of the refusal of any witness to attend or testify or produce

7-19 any [papers] items required by the subpoena , the board may report to the

7-20 district court in and for the county in which the hearing , [or] investigation

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 the

7-23 witness or the production of the records, books or papers;

7-24 (b) The witness has been subpoenaed in the manner prescribed in this

7-25 chapter; and

7-26 (c) The witness has failed and refused to attend or produce the [papers]

7-27 items required by subpoena before the board in the cause or proceeding

7-28 named in the subpoena, or has refused to answer questions propounded to

7-29 him in the course of the hearing [or investigation,] , investigation or other

7-30 proceeding,

7-31 and ask an order of the court compelling the witness to attend and testify or

7-32 produce the records, books or papers before the board.

7-33 3. The court, upon petition of the board, shall enter an order directing

7-34 the witness to appear before the court at a time and place to be fixed by the

7-35 court in the order, the time to be not more than 10 days after the date of the

7-36 order, and then and there show cause why he has not attended or testified or

7-37 produced the records, books or papers before the board. A certified copy of

7-38 the order must be served upon the witness.

7-39 4. If it appears to the court that the subpoena was regularly issued by

7-40 the board or the executive officer, the court shall thereupon enter an order

7-41 that the witness appear before the board at the time and place fixed in the

7-42 order and testify or produce the required records, books or papers. Upon

8-1 failure to obey the order , the witness must be dealt with as for contempt of

8-2 court.

8-3 Sec. 17. NRS 624.200 is hereby amended to read as follows:

8-4 624.200 The board may in any hearing , [or] investigation or other

8-5 proceeding before it cause the depositions of witnesses residing within or

8-6 without the state to be taken in the manner prescribed by the Nevada Rules

8-7 of Civil Procedure for like depositions in civil actions in the district courts

8-8 of this state, and to that end may compel the attendance of witnesses and

8-9 the production of records, books and papers.

8-10 Sec. 18. NRS 624.210 is hereby amended to read as follows:

8-11 624.210 Any party to any hearing , [or] investigation or other

8-12 proceeding before the board has the right to the attendance of witnesses in

8-13 his behalf at the hearing , [or] investigation or other proceeding or upon

8-14 deposition as set forth in this chapter upon making a request therefor to the

8-15 board and designating the person sought to be subpoenaed.

8-16 Sec. 19. NRS 624.220 is hereby amended to read as follows:

8-17 624.220 1. The board shall adopt regulations necessary to effect the

8-18 classification and subclassification of contractors in a manner consistent

8-19 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 contractor

8-21 to those in which he is classified and qualified to engage as defined by NRS

8-22 624.215 and the regulations of the board.

8-23 2. The board shall limit the field and scope of the operations of a

8-24 licensed contractor by establishing a monetary limit on a contractor’s

8-25 license, and the limit must be the maximum contract a licensed contractor

8-26 may undertake on one or more construction contracts on a single

8-27 construction site or subdivision site for a single client. The board may take

8-28 any other action designed to limit the field and scope of the operations of a

8-29 contractor as may be necessary to protect the health, safety and general

8-30 welfare of the public. The limit must be determined after consideration of

8-31 the factors set forth in NRS 624.260, 624.263 and 624.265 [and any other

8-32 factors that the board determines are necessary to assess or project the

8-33 future solvency of the contractor.] and section 9 of this act.

8-34 3. A licensed contractor may request that the board increase the

8-35 monetary limit on his license, either on a permanent basis or for a single

8-36 construction project. A request submitted to the board pursuant to this

8-37 subsection must be in writing on a form prescribed by the board and

8-38 accompanied by such supporting documentation as the board may require.

8-39 If a request submitted pursuant to this section is for a single construction

8-40 project, the request must be submitted to the board at least 2 working days

8-41 before the date on which the licensed contractor intends to submit his bid

8-42 for the project.

9-1 4. Nothing contained in this section prohibits a specialty contractor

9-2 from taking and executing a contract involving the use of two or more

9-3 crafts or trades, if the performance of the work in the crafts or trades, other

9-4 than in which he is licensed, is incidental and supplemental to the

9-5 performance of work in the craft for which the specialty contractor is

9-6 licensed.

9-7 Sec. 20. NRS 624.230 is hereby amended to read as follows:

9-8 624.230 1. It is unlawful for any person or combination of persons

9-9 to:

9-10 (a) Engage in the business or act in the capacity of a contractor within

9-11 this state; or

9-12 (b) Submit a bid on a job situated within this state,

9-13 without having [a] an active license therefor as provided in this chapter,

9-14 unless that person or combination of persons is exempted from licensure [as

9-15 provided in this chapter.] pursuant to NRS 624.330.

9-16 2. The district attorneys in this state shall prosecute all violations of

9-17 this section which occur in their respective counties, unless the violations

9-18 are prosecuted by the attorney general. Upon the request of the board, the

9-19 attorney general shall prosecute any violation of this section in lieu of

9-20 prosecution by the district attorney.

9-21 3. In addition to any other penalty imposed pursuant to this chapter, a

9-22 person who is convicted of violating subsection 1 may be required to pay:

9-23 (a) Court costs and the costs of prosecution;

9-24 (b) Reasonable costs of the investigation of the violation to the board;

9-25 (c) Damages he caused as a result of the violation up to the amount of

9-26 his pecuniary gain from the violation; or

9-27 (d) Any combination of paragraphs (a), (b) and (c).

9-28 4. [Any bid submitted by a person who is neither licensed nor

9-29 exempted from licensure as provided in this chapter at the time the bid is

9-30 submitted is void.] If a person submits a bid or enters into a contract in

9-31 violation of subsection 1, the bid or contract shall be deemed void ab

9-32 initio.

9-33 Sec. 21. NRS 624.250 is hereby amended to read as follows:

9-34 624.250 1. To obtain or renew a license, an applicant must submit to

9-35 the board an application in writing containing [the] :

9-36 (a) The statement that the applicant desires the issuance of a license

9-37 under the terms of this chapter.

9-38 (b) The street address or other physical location of the applicant’s

9-39 place of business.

9-40 (c) The name of a person physically located in this state for service of

9-41 process on the applicant.

9-42 (d) The street address or other physical location in this state and, if

9-43 different, the mailing address, for service of process on the applicant.

10-1 (e) The names and physical and mailing addresses of any owners,

10-2 partners, officers, directors, members and managerial personnel of the

10-3 applicant.

10-4 (f) Any information requested by the board to ascertain the

10-5 background, financial responsibility, experience, knowledge and

10-6 qualifications of the applicant.

10-7 2. The application must be:

10-8 (a) Made on a form prescribed by the board in accordance with the rules

10-9 and regulations adopted by the board.

10-10 (b) Accompanied by the fee fixed by this chapter.

10-11 3. If the applicant is a natural person, the application must include the

10-12 social security number of the applicant.

10-13 Sec. 22. (Deleted by amendment.)

10-14 Sec. 23. NRS 624.263 is hereby amended to read as follows:

10-15 624.263 1. [For the purposes of this chapter, financial responsibility

10-16 means a past and present business record of solvency. If the applicant or

10-17 contractor is a corporation, its] The financial responsibility of a licensee or

10-18 an applicant for a contractor’s license must be established independently

10-19 of and without reliance on [the assets of its officers, directors or

10-20 stockholders,] any assets or guarantees of any owners or managing

10-21 officers of the licensee or applicant, but the financial responsibility of [its

10-22 officers and directors] any owners or managing officers of the licensee or

10-23 applicant may be inquired into and considered as a criterion in determining

10-24 the [corporation’s financial responsibility.] financial responsibility of the

10-25 licensee or applicant.

10-26 2. The financial responsibility of an applicant for a contractor’s license

10-27 or of a licensed contractor must be determined by using the following

10-28 standards and criteria in connection with each applicant or contractor and

10-29 each associate or partner thereof:

10-30 (a) Net worth.

10-31 (b) Amount of liquid assets.

10-32 (c) Prior payment and credit records.

10-33 (d) Previous business experience.

10-34 (e) Prior and pending lawsuits.

10-35 (f) Prior and pending liens.

10-36 (g) Adverse judgments.

10-37 (h) Conviction of a felony or crime involving moral turpitude.

10-38 (i) Prior suspension or revocation of a contractor’s license in Nevada or

10-39 elsewhere.

10-40 (j) An adjudication of bankruptcy or any other proceeding under the

10-41 federal bankruptcy laws, including:

10-42 (1) A composition, arrangement or reorganization proceeding;

11-1 (2) The appointment of a receiver of the property of the applicant or

11-2 contractor or any officer, director, associate or partner thereof under the

11-3 laws of this state or the United States; or

11-4 (3) The making of an assignment for the benefit of creditors.

11-5 (k) Form of business organization (corporate or otherwise).

11-6 (l) Information obtained from confidential financial references and

11-7 credit reports.

11-8 (m) Reputation for honesty and integrity of the applicant or contractor

11-9 or any officer, director, associate or partner thereof.

11-10 3. A licensed contractor shall, as soon as it is reasonably practicable,

11-11 notify the board in writing upon the filing of a petition or application

11-12 relating to the contractor that initiates any proceeding, appointment or

11-13 assignment set forth in paragraph (j) of subsection 2. The written notice

11-14 must be accompanied by:

11-15 (a) A copy of the petition or application filed with the court; and

11-16 (b) A copy of any order of the court which is relevant to the financial

11-17 responsibility of the contractor, including any order appointing a trustee,

11-18 receiver or assignee.

11-19 4. Before issuing a license to an applicant who will engage in

11-20 residential construction or renewing the license of a contractor who

11-21 engages in residential construction, the board shall require the applicant

11-22 or licensee to establish his financial responsibility by submitting to the

11-23 board:

11-24 (a) A financial statement prepared by a certified public accountant

11-25 who is licensed pursuant to the provisions of chapter 628 of NRS; and

11-26 (b) A statement setting forth the number of building permits issued to

11-27 and construction projects completed by the licensee during the

11-28 immediately preceding year and any other information required by the

11-29 board. The statement submitted pursuant to this paragraph must be

11-30 provided on a form approved by the board.

11-31 5. In addition to the requirements set forth in subsection 4, the board

11-32 may require a licensee to establish his financial responsibility at any

11-33 time.

11-34 6. An applicant for an initial contractor’s license or a licensee

11-35 applying for the renewal of a contractor’s license has the burden of

11-36 demonstrating his financial responsibility to the board.

11-37 Sec. 24. NRS 624.265 is hereby amended to read as follows:

11-38 624.265 1. An applicant for a contractor’s license or a licensed

11-39 contractor and each officer, director, partner and associate thereof must

11-40 possess good character. Lack of character may be established by showing

11-41 that the applicant or licensed contractor, or any officer, director, partner or

11-42 associate thereof, has:

12-1 [1.] (a) Committed any act which would be grounds for the denial,

12-2 suspension or revocation of a contractor’s license;

12-3 [2.] (b) A bad reputation for honesty and integrity;

12-4 [3.] (c) Entered a plea of nolo contendere, guilty or guilty but mentally

12-5 ill to, been found guilty of or been convicted of a [misdemeanor, felony or

12-6 crime involving moral turpitude] crime arising out of, in connection with or

12-7 related to the activities of such person in such a manner as to demonstrate

12-8 his unfitness to act as a contractor, and the time for appeal has elapsed or

12-9 the judgment of conviction has been affirmed on appeal; or

12-10 [4.] (d) Had a license revoked or suspended for reasons that would

12-11 preclude the granting or renewal of a license for which the application has

12-12 been made.

12-13 2. Upon the request of the board, an applicant for a contractor’s

12-14 license, and any officer, director, partner or associate of the applicant,

12-15 must submit to the board completed fingerprint cards and a form

12-16 authorizing an investigation of the applicant’s background and the

12-17 submission of his fingerprints to the central repository for Nevada

12-18 records of criminal history and the Federal Bureau of Investigation. The

12-19 fingerprint cards and authorization form submitted must be those that

12-20 are provided to the applicant by the board. The applicant’s fingerprints

12-21 may be taken by an agent of the board or an agency of law enforcement.

12-22 3. The board shall keep the results of the investigation confidential

12-23 and not subject to inspection by the general public.

12-24 4. The board shall establish by regulation the fee for processing the

12-25 fingerprints to be paid by the applicant. The fee must not exceed the sum

12-26 of the amounts charged by the central repository for Nevada records of

12-27 criminal history and the Federal Bureau of Investigation for processing

12-28 the fingerprints.

12-29 5. The board may obtain records of a law enforcement agency or any

12-30 other agency that maintains records of criminal history, including,

12-31 without limitation, records of:

12-32 (a) Arrests;

12-33 (b) Guilty pleas;

12-34 (c) Sentencing;

12-35 (d) Probation;

12-36 (e) Parole;

12-37 (f) Bail;

12-38 (g) Complaints; and

12-39 (h) Final dispositions,

12-40 for the investigation of a licensee or an applicant for a contractor’s

12-41 license.

13-1 Sec. 25. NRS 624.273 is hereby amended to read as follows:

13-2 624.273 1. Each bond or deposit required by NRS 624.270 must be

13-3 in favor of the State of Nevada for the benefit of any person who:

13-4 (a) As owner of the property to be improved entered into a construction

13-5 contract with the contractor and is damaged by failure of the contractor to

13-6 perform the contract or to remove liens filed against the property;

13-7 (b) As an employee of the contractor performed labor on or about the

13-8 site of the construction covered by the contract;

13-9 (c) As a supplier or materialman furnished materials or equipment for

13-10 the construction covered by the contract; or

13-11 (d) Is injured by any unlawful act or omission of the contractor in the

13-12 performance of a contract.

13-13 2. Any person claiming against the bond or deposit may bring an action

13-14 in a court of competent jurisdiction on the bond or against the board on the

13-15 deposit for the amount of damage he has suffered to the extent covered by

13-16 the bond or deposit. No action may be commenced on the bond or deposit 2

13-17 years after the commission of the act on which the action is based. If an

13-18 action is commenced on the bond, the surety that executed the bond shall

13-19 notify the board of the action within 30 days after the date that:

13-20 (a) The surety is served with a complaint and summons; or

13-21 (b) The action is commenced,

13-22 whichever occurs first.

13-23 3. Upon receiving a request from a person for whose benefit a bond or

13-24 deposit is required, the board shall notify him that:

13-25 (a) A bond is in effect or that a deposit has been made, and the amount

13-26 of either;

13-27 (b) There is an action against a bond, if that is the case, and the court,

13-28 the title and number of the action and the amount sought by the plaintiff;

13-29 and

13-30 (c) There is an action against the board, if that is the case, and the

13-31 amount sought by the plaintiff.

13-32 4. If a surety, or in the case of a deposit, the board, desires to make

13-33 payment without awaiting court action, the amount of the bond or deposit

13-34 must be reduced to the extent of any payment made by the surety or the

13-35 board in good faith under the bond or deposit. Any payment must be based

13-36 on written claims received by the surety or board before the court action.

13-37 5. The surety or the board may bring an action for interpleader against

13-38 all claimants upon the bond or deposit. If an action for interpleader is

13-39 commenced, the surety or the board must serve each known claimant and

13-40 publish notice of the action at least once each week for 2 weeks in a

13-41 newspaper of general circulation in the county where the contractor has his

13-42 principal place of business. The surety is entitled to deduct its costs of the

13-43 action, including publication, from its liability under the bond. The board is

14-1 entitled to deduct its costs of the action, including attorney’s fees and

14-2 publication, from the deposit.

14-3 6. A claim of any employee of the contractor for labor is a preferred

14-4 claim against a bond or deposit. If any bond or deposit is insufficient to pay

14-5 all claims for labor in full, the sum recovered must be distributed among all

14-6 claimants for labor in proportion to the amounts of their respective claims.

14-7 Partial payment of claims is not full payment, and the claimants may bring

14-8 actions against the contractor for the unpaid balances.

14-9 7. Claims, other than claims for labor, against a bond or deposit have

14-10 equal priority, except where otherwise provided by law, and if the bond or

14-11 deposit is insufficient to pay all of those claims in full, they must be paid

14-12 pro rata. Partial payment of claims is not full payment, and the claimants

14-13 may bring actions against the contractor for the unpaid balances.

14-14 8. The board may not claim against the bond or deposit required

14-15 pursuant to NRS 624.270 for the payment of an administrative fine

14-16 imposed for a violation of the provisions of this chapter.

14-17 Sec. 25.5. (Deleted by amendment.)

14-18 Sec. 26. NRS 624.283 is hereby amended to read as follows:

14-19 624.283 1. Each license issued under the provisions of this chapter

14-20 expires 1 year after the date on which it is issued, except that the board may

14-21 by regulation prescribe shorter or longer periods and prorated fees to

14-22 establish a system of staggered renewals. Any license which is not renewed

14-23 on or before the date for renewal is automatically suspended.

14-24 2. A license may be renewed by submitting to the board:

14-25 (a) An application for renewal;

14-26 (b) The statement required pursuant to NRS 624.268 if the holder of the

14-27 license is a natural person; and

14-28 (c) The fee for renewal fixed by the board.

14-29 3. The board may require [the] a licensee to [submit] demonstrate his

14-30 financial responsibility at any time [a] through the submission of:

14-31 (a) A financial statement that is prepared by [a] an independent

14-32 certified public accountant [, if the board believes that:

14-33 (a) The licensee did not pay an undisputed debt;

14-34 (b) The licensee has violated or may be violating a provision of chapter

14-35 624 of NRS or a regulation adopted pursuant thereto; or

14-36 (c) The licensee’s financial responsibility may be impaired.] ; and

14-37 (b) If the licensee performs residential construction, such additional

14-38 documentation as the board deems appropriate.

14-39 4. If a license is automatically suspended pursuant to subsection 1, the

14-40 licensee may have his license reinstated upon filing an application for

14-41 renewal within 6 months after the date of suspension and paying, in

14-42 addition to the fee for renewal, a fee for reinstatement fixed by the board, if

14-43 he is otherwise in good standing and there are no complaints pending

15-1 against him. If he is otherwise not in good standing or there is a complaint

15-2 pending, the board shall require him to provide a current financial

15-3 statement prepared by [a] an independent certified public accountant or

15-4 establish other conditions for reinstatement. If the licensee is a natural

15-5 person, his application for renewal must be accompanied by the statement

15-6 required pursuant to NRS 624.268. A license which is not reinstated within

15-7 6 months after it is automatically suspended may be canceled by the board,

15-8 and a new license may be issued only upon application for an original

15-9 contractor’s license.

15-10 Sec. 27. NRS 624.295 is hereby amended to read as follows:

15-11 624.295 If a member of the board becomes aware that any one or a

15-12 combination of the grounds for initiating disciplinary action may exist as to

15-13 a contractor in this state, the member of the board may inform the executive

15-14 [director] officer of the board of the allegations. The executive [director,]

15-15 officer, upon receiving such information shall take such actions as he

15-16 deems appropriate under the circumstances.

15-17 Sec. 28. NRS 624.300 is hereby amended to read as follows:

15-18 624.300 1. Except as otherwise provided in subsection [6,] 3, the

15-19 board may:

15-20 (a) Suspend or revoke licenses already issued;

15-21 (b) Refuse renewals of licenses;

15-22 (c) Impose limits on the field, scope and monetary limit of the license;

15-23 (d) Impose an administrative fine of not more than $10,000;

15-24 (e) Order the licensee to take action to correct a condition resulting from

15-25 an act which constitutes a cause for disciplinary action, at the licensee’s

15-26 cost [;] , that may consist of requiring the licensee to:

15-27 (1) Perform the corrective work himself;

15-28 (2) Hire and pay another licensee to perform the corrective work;

15-29 or

15-30 (3) Pay to the owner of the construction project a specified sum to

15-31 correct the condition; or

15-32 (f) Reprimand or take other less severe disciplinary action, including,

15-33 without limitation, increasing the amount of the surety bond or cash deposit

15-34 of the licensee,

15-35 if the licensee commits any act which constitutes a cause for disciplinary

15-36 action.

15-37 2. If the board suspends or revokes the license of a contractor for

15-38 failure to establish financial responsibility, the board may, in addition to

15-39 any other conditions for reinstating or renewing the license, require that

15-40 each contract undertaken by the licensee for a period to be designated by

15-41 the board, not to exceed 12 months, be separately covered by a bond or

15-42 bonds approved by the board and conditioned upon the performance of and

15-43 the payment of labor and materials required by the contract.

16-1 3. If a licensee violates the provisions of NRS 624.3014 or subsection

16-2 3 of NRS 624.3015, the board may impose an administrative fine of not

16-3 more than $20,000.

16-4 4. If a licensee commits a fraudulent act which is a cause for

16-5 disciplinary action under NRS 624.3016, the correction of any condition

16-6 resulting from the act does not preclude the board from taking disciplinary

16-7 action.

16-8 [4.] 5. If the board finds that a licensee has engaged in repeated acts

16-9 that would be cause for disciplinary action, the correction of any resulting

16-10 conditions does not preclude the board from taking disciplinary action

16-11 pursuant to this section.

16-12 [5.] 6. The expiration of a license by operation of law or by order or

16-13 decision of the board or a court, or the voluntary surrender of a license by a

16-14 licensee, does not deprive the board of jurisdiction to proceed with any

16-15 investigation of, or action or disciplinary proceeding against, the licensee

16-16 or to render a decision suspending or revoking the license.

16-17 [6. Except as otherwise provided in section 3 of Senate Bill No. 32 of

16-18 this session, the board shall not take any disciplinary action pursuant to this

16-19 section regarding a constructional defect, as that term is defined in NRS

16-20 40.615, during the period in which any claim arising out of that defect is

16-21 being settled, mediated or otherwise resolved pursuant to NRS 40.600 to

16-22 40.695, inclusive, and sections 2 to 6, inclusive, of this act, unless the

16-23 disciplinary action is necessary to protect the public health or safety.]

16-24 7. If discipline is imposed pursuant to this section, including any

16-25 discipline imposed pursuant to a stipulated settlement, the costs of the

16-26 proceeding, including investigative costs and attorney’s fees, may be

16-27 recovered by the board.

16-28 Sec. 29. NRS 624.301 is hereby amended to read as follows:

16-29 624.301 The following acts, among others, constitute cause for

16-30 disciplinary action under NRS 624.300:

16-31 1. Abandonment without legal excuse of any construction project or

16-32 operation engaged in or undertaken by the licensee as a contractor.

16-33 2. Abandonment of a construction project when the percentage of

16-34 the project completed is less than the percentage of the total price of the

16-35 contract paid to the contractor at the time of abandonment, unless the

16-36 contractor is entitled to retain the amount paid pursuant to the terms of

16-37 the contract or the contractor refunds the excessive amount paid within

16-38 30 days after the abandonment of the project.

16-39 3. Failure in a material respect on the part of a licensee to complete any

16-40 construction project or operation for the price stated in the contract for the

16-41 project or operation or any modification of the contract.

17-1 [3.] 4. Willful failure or refusal without legal excuse on the part of a

17-2 licensee as a contractor to prosecute a construction project or operation

17-3 with reasonable diligence, thereby causing material injury to another.

17-4 [4.] 5. Willful failure or refusal without legal excuse on the part of a

17-5 licensee to comply with the terms of a construction contract or written

17-6 warranty, thereby causing material injury to another.

17-7 Sec. 30. NRS 624.3011 is hereby amended to read as follows:

17-8 624.3011 1. The following acts, among others, constitute cause for

17-9 disciplinary action under NRS 624.300:

17-10 (a) Willful and prejudicial departure from or disregard of plans or

17-11 specifications in any material respect without the consent of the owner or

17-12 his authorized representative and the person entitled to have the particular

17-13 construction project or operation completed in accordance with the plans

17-14 and specifications.

17-15 (b) [Failure to respond to a claim arising out of a constructional defect,

17-16 as that term is defined in NRS 40.615.

17-17 (c)] Willful or deliberate disregard and violation of:

17-18 (1) The building laws of the state or of any political subdivision

17-19 thereof.

17-20 (2) The safety laws or labor laws of the state.

17-21 (3) Any provision of the Nevada health and safety laws or the

17-22 regulations adopted thereunder relating to the digging, boring or drilling of

17-23 water wells.

17-24 (4) The laws of this state regarding industrial insurance.

17-25 2. If a contractor performs construction without obtaining any

17-26 necessary building permit, there is a rebuttable presumption that the

17-27 contractor willfully and deliberately violated the building laws of this state

17-28 or of its political subdivisions. [The board shall not require the contractor

17-29 to obtain that permit more than 90 days after the construction is

17-30 completed.]

17-31 Sec. 31. NRS 624.3012 is hereby amended to read as follows:

17-32 624.3012 The following acts, among others, constitute cause for

17-33 disciplinary action under NRS 624.300:

17-34 1. Diversion of [funds] money or property received for the completion

17-35 of a specific construction project or operation or for a specified purpose in

17-36 the completion of any construction project or operation to any other

17-37 construction project or operation, obligation or purpose.

17-38 2. Willful or deliberate failure by any licensee or agent or officer

17-39 thereof to pay any [moneys] money when due for any materials or services

17-40 rendered in connection with his operations as a contractor, when he has the

17-41 capacity to pay or when he has received sufficient [funds] money therefor

17-42 as payment for the particular construction work, project or operation for

17-43 which the services or materials were rendered or purchased, or the false

18-1 denial of any such amount due or the validity of the claim thereof with

18-2 intent to secure a discount upon such indebtedness or with intent to injure,

18-3 delay or defraud the person to whom such indebtedness is due.

18-4 3. Failure to obtain the discharge or release of any lien recorded

18-5 against the property to be improved by a construction project for the

18-6 price of any materials or services rendered to the project by order of the

18-7 contractor, when the contractor has received sufficient money therefor as

18-8 payment for the project, within 75 days after the recording of the lien.

18-9 Sec. 32. NRS 624.3013 is hereby amended to read as follows:

18-10 624.3013 The following acts, among others, constitute cause for

18-11 disciplinary action pursuant to NRS 624.300:

18-12 1. Failure to keep records showing all contracts, documents, receipts

18-13 and disbursements by a licensee of all of his transactions as a contractor

18-14 and to keep them open for inspection by the board or executive officer for a

18-15 period of not less than 3 years after the completion of any construction

18-16 project or operation to which the records refer.

18-17 2. Misrepresentation of a material fact by an applicant or licensee [in

18-18 obtaining a license, or] in connection with any information or evidence

18-19 furnished the board in connection with official matters of the board.

18-20 3. Failure to establish financial responsibility pursuant to NRS

18-21 624.220, 624.260, 624.263 and 624.265 and section 9 of this act at the

18-22 time of renewal of the license or at any other time when required by the

18-23 board.

18-24 4. Failure to keep in force the bond or cash deposit pursuant to NRS

18-25 624.270 for the full period required by the board.

18-26 5. Failure in any material respect to comply with the provisions of this

18-27 chapter or the regulations of the board.

18-28 Sec. 33. NRS 624.3016 is hereby amended to read as follows:

18-29 624.3016 The following acts or omissions, among others, constitute

18-30 cause for disciplinary action under NRS 624.300:

18-31 1. Any fraudulent or deceitful act committed in the capacity of a

18-32 contractor . [whereby substantial injury is sustained by another.]

18-33 2. A conviction of a violation of section 12 of this act or a felony or a

18-34 crime involving moral turpitude.

18-35 3. Knowingly making a false statement in or relating to the recording

18-36 of a notice of lien pursuant to the provisions of NRS 108.226.

18-37 4. Failure to give a notice required by NRS 108.245 or 108.246.

18-38 5. Failure to comply with NRS 597.713, 597.716 or 597.719 [.] or any

18-39 regulations of the board governing contracts for the construction of

18-40 residential pools and spas.

18-41 6. Failure to comply with NRS 624.321.

18-42 7. Misrepresentation or the omission of a material fact, or the

18-43 commission of any other fraudulent or deceitful act, to obtain a license.

19-1 Sec. 34. NRS 624.307 is hereby amended to read as follows:

19-2 624.307 1. It is unlawful for any person, including a person exempt

19-3 under NRS 624.330, to advertise as a contractor unless he has a valid

19-4 license in the appropriate classification established by NRS 624.215 and

19-5 624.220.

19-6 2. As used in this section, "advertising" includes , but is not limited to ,

19-7 the issuance of any sign, card or device or by the permitting or allowing of

19-8 any sign or marking on a motor vehicle, in any building, structure,

19-9 newspaper, magazine or airway transmission , on the Internet or in any

19-10 directory under the listing of contractor with or without any limiting

19-11 qualifications.

19-12 3. All advertising by a licensed contractor must include the name of

19-13 his company and the number of his license.

19-14 Sec. 35. NRS 624.360 is hereby amended to read as follows:

19-15 624.360 1. [Any person violating any of the provisions of this

19-16 chapter:] It is unlawful for a person to commit any act or omission

19-17 described in subsection 2 of NRS 624.3013, NRS 624.3014 or subsection

19-18 1, 3 or 7 of NRS 624.3016.

19-19 2. Any person who violates subsection 1, subsection 1 of NRS

19-20 624.230 or NRS 624.290, 624.305 or 624.307:

19-21 (a) For a first offense, is guilty of a misdemeanor and shall be punished

19-22 by a fine of not [less than $500 nor] more than $1,000, and may be further

19-23 punished by imprisonment in the county jail for not more than 6 months .
19-24 [; or]

19-25 (b) For the second [or subsequent] offense, is guilty of a gross

19-26 misdemeanor and shall be punished by a fine of not less than [$1,000]

19-27 $2,000 nor more than [$2,000,] $4,000, and may be further punished by

19-28 imprisonment in the county jail for not more than 1 year.

19-29 (c) For the third or subsequent offense, is guilty of a class E felony

19-30 and shall be punished by a fine of not less than $5,000 nor more than

19-31 $10,000 and may be further punished by imprisonment in the state prison

19-32 for not less than 1 year and not more than 4 years.

19-33 [2.] 3. Imposition of [the] a penalty provided for in this section is not

19-34 precluded by any disciplinary action taken by the board against a contractor

19-35 pursuant to the provisions of NRS 624.300 to 624.305, inclusive [.] , and

19-36 section 10 of this act..

19-37 Sec. 36. NRS 171.17751 is hereby amended to read as follows:

19-38 171.17751 1. Any board of county commissioners or governing body

19-39 of a city may designate the chief officer of the organized fire department or

19-40 any employees designated by him, and certain of its inspectors of solid

19-41 waste management, building, housing and licensing inspectors, zoning

19-42 enforcement officers, parking enforcement officers, animal control officers,

19-43 traffic engineers, and marshals and park rangers of units of specialized law

20-1 enforcement established pursuant to NRS 280.125, to prepare, sign and

20-2 serve written citations on persons accused of violating a county or city

20-3 ordinance.

20-4 2. The state health officer and the health officer of each county, district

20-5 and city may designate certain of his employees to prepare, sign and serve

20-6 written citations on persons accused of violating any law, ordinance or

20-7 regulation of a board of health that relates to public health.

20-8 3. The chief of the manufactured housing division of the department of

20-9 business and industry may designate certain of his employees to prepare,

20-10 sign and serve written citations on persons accused of violating any law or

20-11 regulation of the division relating to the provisions of chapters 118B, 461,

20-12 461A and 489 of NRS.

20-13 4. The state contractors’ board may designate certain of its employees

20-14 to prepare, sign and serve written citations on persons [accused of violating

20-15 NRS 624.230.] pursuant to subsection 2 of NRS 624.115.

20-16 5. An employee designated pursuant to this section:

20-17 (a) May exercise the authority to prepare, sign and serve citations only

20-18 within the field of enforcement in which he works;

20-19 (b) May, if he is employed by a city or county, prepare, sign and serve a

20-20 citation only to enforce an ordinance of the city or county by which he is

20-21 employed; and

20-22 (c) Shall comply with the provisions of NRS 171.1773.

20-23 Sec. 37. NRS 278.610 is hereby amended to read as follows:

20-24 278.610 1. Except as otherwise provided in subsection 3, after the

20-25 establishment of the position of building inspector and the filling of the

20-26 position as provided in NRS 278.570, it is unlawful to erect, construct,

20-27 reconstruct, alter or change the use of any building or other structure within

20-28 the territory covered by the building code or zoning regulations without

20-29 obtaining a building permit from the building inspector.

20-30 2. The building inspector shall not issue any permit unless the plans of

20-31 and for the proposed erection, construction, reconstruction, alteration or

20-32 use fully conform to all building code and zoning regulations then in effect.

20-33 3. The provisions of subsection 1 do not apply to a school district to

20-34 which the state public works board has delegated its powers and duties

20-35 under NRS 393.110.

20-36 4. A building inspector shall not issue a building permit to a person

20-37 acting for another unless the applicant proves to the satisfaction of the

20-38 building inspector that he is licensed as a contractor for that work pursuant

20-39 to the provisions of [NRS 624.230 to 624.320, inclusive.] chapter 624 of

20-40 NRS.

21-1 Sec. 38. NRS 289.300 is hereby amended to read as follows:

21-2 289.300 1. A person employed as an investigator by the private

21-3 investigator’s licensing board pursuant to NRS 648.025 has the powers of a

21-4 peace officer.

21-5 2. A person employed as a criminal investigator by the state

21-6 contractors’ board pursuant to section 2 of this act has the powers of a

21-7 peace officer to carry out his duties pursuant to subsection 2 of NRS

21-8 624.115, for the limited purpose of obtaining and exchanging

21-9 information on persons who hold a contractor’s license or are applying

21-10 for a contractor’s license.

21-11 Sec. 39. Sections 18, 19 and 20 of Assembly Bill No. 636 of this

21-12 session are hereby amended to read as follows:

21-13 Sec. 18. NRS 624.283 is hereby amended to read as follows:

21-14 624.283 1. Each license issued under the provisions of this

21-15 chapter expires 1 year after the date on which it is issued, except

21-16 that the board may by regulation prescribe shorter or longer periods

21-17 and prorated fees to establish a system of staggered renewals. Any

21-18 license which is not renewed on or before the date for renewal is

21-19 automatically suspended.

21-20 2. A license may be renewed by submitting to the board:

21-21 (a) An application for renewal;

21-22 (b) The statement required pursuant to NRS 624.268 if the

21-23 holder of the license is a natural person; [and]

21-24 (c) The fee for renewal fixed by the board [.] ; and

21-25 (d) Any assessment required pursuant to section 9 of this act if

21-26 the holder of the license is a residential contractor as defined in

21-27 section 7 of this act.

21-28 3. The board may require a licensee to demonstrate his

21-29 financial responsibility at any time through the submission of:

21-30 (a) A financial statement that is prepared by an independent

21-31 certified public accountant; and

21-32 (b) If the licensee performs residential construction, such

21-33 additional documentation as the board deems appropriate.

21-34 4. If a license is automatically suspended pursuant to subsection

21-35 1, the licensee may have his license reinstated upon filing an

21-36 application for renewal within 6 months after the date of suspension

21-37 and paying, in addition to the fee for renewal, a fee for

21-38 reinstatement fixed by the board, if he is otherwise in good standing

21-39 and there are no complaints pending against him. If he is otherwise

21-40 not in good standing or there is a complaint pending, the board shall

21-41 require him to provide a current financial statement prepared by an

21-42 independent certified public accountant or establish other

21-43 conditions for reinstatement. If the licensee is a natural person, his

22-1 application for renewal must be accompanied by the statement

22-2 required pursuant to NRS 624.268. A license which is not reinstated

22-3 within 6 months after it is automatically suspended may be canceled

22-4 by the board, and a new license may be issued only upon

22-5 application for an original contractor’s license.

22-6 Sec. 19. NRS 624.300 is hereby amended to read as follows:

22-7 624.300 1. Except as otherwise provided in subsection 3, the

22-8 board may:

22-9 (a) Suspend or revoke licenses already issued;

22-10 (b) Refuse renewals of licenses;

22-11 (c) Impose limits on the field, scope and monetary limit of the

22-12 license;

22-13 (d) Impose an administrative fine of not more than $10,000;

22-14 (e) Order a licensee to repay to the account established

22-15 pursuant to section 9 of this act, any amount paid out of the

22-16 account pursuant to section 13 of this act as a result of an act or

22-17 omission of that licensee;

22-18 (f) Order the licensee to take action to correct a condition

22-19 resulting from an act which constitutes a cause for disciplinary

22-20 action, at the licensee’s cost, that may consist of requiring the

22-21 licensee to:

22-22 (1) Perform the corrective work himself;

22-23 (2) Hire and pay another licensee to perform the corrective

22-24 work; or

22-25 (3) Pay to the owner of the construction project a specified

22-26 sum to correct the condition; or

22-27 [(f)] (g) Reprimand or take other less severe disciplinary action,

22-28 including, without limitation, increasing the amount of the surety

22-29 bond or cash deposit of the licensee,

22-30 if the licensee commits any act which constitutes a cause for

22-31 disciplinary action.

22-32 2. If the board suspends or revokes the license of a contractor

22-33 for failure to establish financial responsibility, the board may, in

22-34 addition to any other conditions for reinstating or renewing the

22-35 license, require that each contract undertaken by the licensee for a

22-36 period to be designated by the board, not to exceed 12 months, be

22-37 separately covered by a bond or bonds approved by the board and

22-38 conditioned upon the performance of and the payment of labor and

22-39 materials required by the contract.

22-40 3. If a licensee violates the provisions of NRS 624.3014 or

22-41 subsection 3 of NRS 624.3015, the board may impose an

22-42 administrative fine of not more than $20,000.

23-1 4. If a licensee commits a fraudulent act which is a cause for

23-2 disciplinary action under NRS 624.3016, the correction of any

23-3 condition resulting from the act does not preclude the board from

23-4 taking disciplinary action.

23-5 5. If the board finds that a licensee has engaged in repeated acts

23-6 that would be cause for disciplinary action, the correction of any

23-7 resulting conditions does not preclude the board from taking

23-8 disciplinary action pursuant to this section.

23-9 6. The expiration of a license by operation of law or by order or

23-10 decision of the board or a court, or the voluntary surrender of a

23-11 license by a licensee, does not deprive the board of jurisdiction to

23-12 proceed with any investigation of, or action or disciplinary

23-13 proceeding against, the licensee or to render a decision suspending

23-14 or revoking the license.

23-15 7. If discipline is imposed pursuant to this section, including

23-16 any discipline imposed pursuant to a stipulated settlement, the costs

23-17 of the proceeding, including investigative costs and attorney’s fees,

23-18 may be recovered by the board.

23-19 Sec. 20. NRS 624.3016 is hereby amended to read as follows:

23-20 624.3016 The following acts or omissions, among others,

23-21 constitute cause for disciplinary action under NRS 624.300:

23-22 1. Any fraudulent or deceitful act committed in the capacity of

23-23 a contractor.

23-24 2. A conviction of a violation of section 12 of Assembly Bill

23-25 No. 634 of this [act] session or a felony or a crime involving moral

23-26 turpitude.

23-27 3. Knowingly making a false statement in or relating to the

23-28 recording of a notice of lien pursuant to the provisions of NRS

23-29 108.226.

23-30 4. Failure to give a notice required by NRS 108.245 or

23-31 108.246.

23-32 5. Failure to comply with NRS 597.713, 597.716 or 597.719 or

23-33 any regulations of the board governing contracts for the

23-34 construction of residential pools and spas.

23-35 6. Failure to comply with NRS 624.321.

23-36 7. Misrepresentation or the omission of a material fact, or the

23-37 commission of any other fraudulent or deceitful act, to obtain a

23-38 license.

23-39 8. Failure to pay an assessment required pursuant to section

23-40 9 of this act.

24-1 Sec. 40. The amendatory provisions of this act do not apply to

24-2 offenses that were committed before October 1, 1999.

24-3 Sec. 41. This act becomes effective at 12:01 a.m. on October 1, 1999.

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