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 shall 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 shall 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 must be determined after consideration of8-31
the factors set forth in NRS 624.260, 624.263 and 624.2658-32
8-33
8-34
3. A licensed contractor may request that the board increase the8-35
monetary limit on his license, either on a permanent basis or for a single8-36
construction project. A request submitted to the board pursuant to this8-37
subsection must be in writing on a form prescribed by the board and8-38
accompanied by such supporting documentation as the board may require.8-39
If a request submitted pursuant to this section is for a single construction8-40
project, the request must be submitted to the board at least 2 working days8-41
before the date on which the licensed contractor intends to submit his bid8-42
for the project.9-1
4. Nothing contained in this section prohibits a specialty contractor9-2
from taking and executing a contract involving the use of two or more9-3
crafts or trades, if the performance of the work in the crafts or trades, other9-4
than in which he is licensed, is incidental and supplemental to the9-5
performance of work in the craft for which the specialty contractor is9-6
licensed.9-7
Sec. 20. NRS 624.230 is hereby amended to read as follows: 624.230 1. It is unlawful for any person or combination of persons9-9
to:9-10
(a) Engage in the business or act in the capacity of a contractor within9-11
this state; or9-12
(b) Submit a bid on a job situated within this state,9-13
without having9-14
unless that person or combination of persons is exempted from licensure9-15
9-16
2. The district attorneys in this state shall prosecute all violations of9-17
this section which occur in their respective counties, unless the violations9-18
are prosecuted by the attorney general. Upon the request of the board, the9-19
attorney general shall prosecute any violation of this section in lieu of9-20
prosecution by the district attorney.9-21
3. In addition to any other penalty imposed pursuant to this chapter, a9-22
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 of9-26
his pecuniary gain from the violation; or9-27
(d) Any combination of paragraphs (a), (b) and (c).9-28
4.9-29
9-30
9-31
violation of subsection 1, the bid or contract shall be deemed void ab9-32
initio.9-33
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 to9-35
the board an application in writing containing9-36
(a) The statement that the applicant desires the issuance of a license9-37
under the terms of this chapter.9-38
(b) The street address or other physical location of the applicant’s9-39
place of business.9-40
(c) The name of a person physically located in this state for service of9-41
process on the applicant.9-42
(d) The street address or other physical location in this state and, if9-43
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 the10-3
applicant.10-4
(f) Any information requested by the board to ascertain the10-5
background, financial responsibility, experience, knowledge and10-6
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 rules10-9
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 the10-12
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: 624.263 1.10-16
10-17
10-18
an applicant for a contractor’s license must be established independently10-19
of and without reliance on10-20
10-21
officers of the licensee or applicant, but the financial responsibility of10-22
10-23
applicant may be inquired into and considered as a criterion in determining10-24
the10-25
licensee or applicant.10-26
2. The financial responsibility of an applicant for a contractor’s license10-27
or of a licensed contractor must be determined by using the following10-28
standards and criteria in connection with each applicant or contractor and10-29
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 or10-39
elsewhere.10-40
(j) An adjudication of bankruptcy or any other proceeding under the10-41
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 or11-2
contractor or any officer, director, associate or partner thereof under the11-3
laws of this state or the United States; or11-4
(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 and11-7
credit reports.11-8
(m) Reputation for honesty and integrity of the applicant or contractor11-9
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 application11-12
relating to the contractor that initiates any proceeding, appointment or11-13
assignment set forth in paragraph (j) of subsection 2. The written notice11-14
must be accompanied by:11-15
(a) A copy of the petition or application filed with the court; and11-16
(b) A copy of any order of the court which is relevant to the financial11-17
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 in11-20
residential construction or renewing the license of a contractor who11-21
engages in residential construction, the board shall require the applicant11-22
or licensee to establish his financial responsibility by submitting to the11-23
board:11-24
(a) A financial statement prepared by a certified public accountant11-25
who is licensed pursuant to the provisions of chapter 628 of NRS; and11-26
(b) A statement setting forth the number of building permits issued to11-27
and construction projects completed by the licensee during the11-28
immediately preceding year and any other information required by the11-29
board. The statement submitted pursuant to this paragraph must be11-30
provided on a form approved by the board.11-31
5. In addition to the requirements set forth in subsection 4, the board11-32
may require a licensee to establish his financial responsibility at any11-33
time.11-34
6. An applicant for an initial contractor’s license or a licensee11-35
applying for the renewal of a contractor’s license has the burden of11-36
demonstrating his financial responsibility to the board.11-37
Sec. 24. NRS 624.265 is hereby amended to read as follows: 624.265 1. An applicant for a contractor’s license or a licensed11-39
contractor and each officer, director, partner and associate thereof must11-40
possess good character. Lack of character may be established by showing11-41
that the applicant or licensed contractor, or any officer, director, partner or11-42
associate thereof, has:12-1
12-2
suspension or revocation of a contractor’s license;12-3
12-4
12-5
ill to, been found guilty of or been convicted of a12-6
12-7
related to the activities of such person in such a manner as to demonstrate12-8
his unfitness to act as a contractor, and the time for appeal has elapsed or12-9
the judgment of conviction has been affirmed on appeal; or12-10
12-11
preclude the granting or renewal of a license for which the application has12-12
been made.12-13
2. Upon the request of the board, an applicant for a contractor’s12-14
license, and any officer, director, partner or associate of the applicant,12-15
must submit to the board completed fingerprint cards and a form12-16
authorizing an investigation of the applicant’s background and the12-17
submission of his fingerprints to the central repository for Nevada12-18
records of criminal history and the Federal Bureau of Investigation. The12-19
fingerprint cards and authorization form submitted must be those that12-20
are provided to the applicant by the board. The applicant’s fingerprints12-21
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 confidential12-23
and not subject to inspection by the general public.12-24
4. The board shall establish by regulation the fee for processing the12-25
fingerprints to be paid by the applicant. The fee must not exceed the sum12-26
of the amounts charged by the central repository for Nevada records of12-27
criminal history and the Federal Bureau of Investigation for processing12-28
the fingerprints.12-29
5. The board may obtain records of a law enforcement agency or any12-30
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; and12-39
(h) Final dispositions,12-40
for the investigation of a licensee or an applicant for a contractor’s12-41
license.13-1
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 be13-3
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 construction13-5
contract with the contractor and is damaged by failure of the contractor to13-6
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 the13-8
site of the construction covered by the contract;13-9
(c) As a supplier or materialman furnished materials or equipment for13-10
the construction covered by the contract; or13-11
(d) Is injured by any unlawful act or omission of the contractor in the13-12
performance of a contract.13-13
2. Any person claiming against the bond or deposit may bring an action13-14
in a court of competent jurisdiction on the bond or against the board on the13-15
deposit for the amount of damage he has suffered to the extent covered by13-16
the bond or deposit. No action may be commenced on the bond or deposit 213-17
years after the commission of the act on which the action is based. If an13-18
action is commenced on the bond, the surety that executed the bond shall13-19
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; or13-21
(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 or13-24
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 amount13-26
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
and13-30
(c) There is an action against the board, if that is the case, and the13-31
amount sought by the plaintiff.13-32
4. If a surety, or in the case of a deposit, the board, desires to make13-33
payment without awaiting court action, the amount of the bond or deposit13-34
must be reduced to the extent of any payment made by the surety or the13-35
board in good faith under the bond or deposit. Any payment must be based13-36
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 against13-38
all claimants upon the bond or deposit. If an action for interpleader is13-39
commenced, the surety or the board must serve each known claimant and13-40
publish notice of the action at least once each week for 2 weeks in a13-41
newspaper of general circulation in the county where the contractor has his13-42
principal place of business. The surety is entitled to deduct its costs of the13-43
action, including publication, from its liability under the bond. The board is14-1
entitled to deduct its costs of the action, including attorney’s fees and14-2
publication, from the deposit.14-3
6. A claim of any employee of the contractor for labor is a preferred14-4
claim against a bond or deposit. If any bond or deposit is insufficient to pay14-5
all claims for labor in full, the sum recovered must be distributed among all14-6
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 bring14-8
actions against the contractor for the unpaid balances.14-9
7. Claims, other than claims for labor, against a bond or deposit have14-10
equal priority, except where otherwise provided by law, and if the bond or14-11
deposit is insufficient to pay all of those claims in full, they must be paid14-12
pro rata. Partial payment of claims is not full payment, and the claimants14-13
may bring actions against the contractor for the unpaid balances.14-14
8. The board may not claim against the bond or deposit required14-15
pursuant to NRS 624.270 for the payment of an administrative fine14-16
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: 624.283 1. Each license issued under the provisions of this chapter14-20
expires 1 year after the date on which it is issued, except that the board may14-21
by regulation prescribe shorter or longer periods and prorated fees to14-22
establish a system of staggered renewals. Any license which is not renewed14-23
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 the14-27
license is a natural person; and14-28
(c) The fee for renewal fixed by the board.14-29
3. The board may require14-30
financial responsibility at any time14-31
(a) A financial statement that is prepared by14-32
certified public accountant14-33
14-34
14-35
14-36
14-37
(b) If the licensee performs residential construction, such additional14-38
documentation as the board deems appropriate.14-39
4. If a license is automatically suspended pursuant to subsection 1, the14-40
licensee may have his license reinstated upon filing an application for14-41
renewal within 6 months after the date of suspension and paying, in14-42
addition to the fee for renewal, a fee for reinstatement fixed by the board, if14-43
he is otherwise in good standing and there are no complaints pending15-1
against him. If he is otherwise not in good standing or there is a complaint15-2
pending, the board shall require him to provide a current financial15-3
statement prepared by15-4
establish other conditions for reinstatement. If the licensee is a natural15-5
person, his application for renewal must be accompanied by the statement15-6
required pursuant to NRS 624.268. A license which is not reinstated within15-7
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 original15-9
contractor’s license.15-10
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 a15-12
combination of the grounds for initiating disciplinary action may exist as to15-13
a contractor in this state, the member of the board may inform the executive15-14
15-15
officer, upon receiving such information shall take such actions as he15-16
deems appropriate under the circumstances.15-17
Sec. 28. NRS 624.300 is hereby amended to read as follows: 624.300 1. Except as otherwise provided in subsection15-19
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 from15-25
an act which constitutes a cause for disciplinary action, at the licensee’s15-26
cost15-27
(1) Perform the corrective work himself;15-28
(2) Hire and pay another licensee to perform the corrective work;15-29
or15-30
(3) Pay to the owner of the construction project a specified sum to15-31
correct the condition; or15-32
(f) Reprimand or take other less severe disciplinary action, including,15-33
without limitation, increasing the amount of the surety bond or cash deposit15-34
of the licensee,15-35
if the licensee commits any act which constitutes a cause for disciplinary15-36
action.15-37
2. If the board suspends or revokes the license of a contractor for15-38
failure to establish financial responsibility, the board may, in addition to15-39
any other conditions for reinstating or renewing the license, require that15-40
each contract undertaken by the licensee for a period to be designated by15-41
the board, not to exceed 12 months, be separately covered by a bond or15-42
bonds approved by the board and conditioned upon the performance of and15-43
the payment of labor and materials required by the contract.16-1
3. If a licensee violates the provisions of NRS 624.3014 or subsection16-2
3 of NRS 624.3015, the board may impose an administrative fine of not16-3
more than $20,000.16-4
4. If a licensee commits a fraudulent act which is a cause for16-5
disciplinary action under NRS 624.3016, the correction of any condition16-6
resulting from the act does not preclude the board from taking disciplinary16-7
action.16-8
16-9
that would be cause for disciplinary action, the correction of any resulting16-10
conditions does not preclude the board from taking disciplinary action16-11
pursuant to this section.16-12
16-13
decision of the board or a court, or the voluntary surrender of a license by a16-14
licensee, does not deprive the board of jurisdiction to proceed with any16-15
investigation of, or action or disciplinary proceeding against, the licensee16-16
or to render a decision suspending or revoking the license.16-17
16-18
16-19
16-20
16-21
16-22
16-23
16-24
7. If discipline is imposed pursuant to this section, including any16-25
discipline imposed pursuant to a stipulated settlement, the costs of the16-26
proceeding, including investigative costs and attorney’s fees, may be16-27
recovered by the board.16-28
Sec. 29. NRS 624.301 is hereby amended to read as follows: 624.301 The following acts, among others, constitute cause for16-30
disciplinary action under NRS 624.300:16-31
1. Abandonment without legal excuse of any construction project or16-32
operation engaged in or undertaken by the licensee as a contractor.16-33
2. Abandonment of a construction project when the percentage of16-34
the project completed is less than the percentage of the total price of the16-35
contract paid to the contractor at the time of abandonment, unless the16-36
contractor is entitled to retain the amount paid pursuant to the terms of16-37
the contract or the contractor refunds the excessive amount paid within16-38
30 days after the abandonment of the project.16-39
3. Failure in a material respect on the part of a licensee to complete any16-40
construction project or operation for the price stated in the contract for the16-41
project or operation or any modification of the contract.17-1
17-2
licensee as a contractor to prosecute a construction project or operation17-3
with reasonable diligence, thereby causing material injury to another.17-4
17-5
licensee to comply with the terms of a construction contract or written17-6
warranty, thereby causing material injury to another.17-7
Sec. 30. NRS 624.3011 is hereby amended to read as follows: 624.3011 1. The following acts, among others, constitute cause for17-9
disciplinary action under NRS 624.300:17-10
(a) Willful and prejudicial departure from or disregard of plans or17-11
specifications in any material respect without the consent of the owner or17-12
his authorized representative and the person entitled to have the particular17-13
construction project or operation completed in accordance with the plans17-14
and specifications.17-15
(b)17-16
17-17
17-18
(1) The building laws of the state or of any political subdivision17-19
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 the17-22
regulations adopted thereunder relating to the digging, boring or drilling of17-23
water wells.17-24
(4) The laws of this state regarding industrial insurance.17-25
2. If a contractor performs construction without obtaining any17-26
necessary building permit, there is a rebuttable presumption that the17-27
contractor willfully and deliberately violated the building laws of this state17-28
or of its political subdivisions.17-29
17-30
17-31
Sec. 31. NRS 624.3012 is hereby amended to read as follows: 624.3012 The following acts, among others, constitute cause for17-33
disciplinary action under NRS 624.300:17-34
1. Diversion of17-35
of a specific construction project or operation or for a specified purpose in17-36
the completion of any construction project or operation to any other17-37
construction project or operation, obligation or purpose.17-38
2. Willful or deliberate failure by any licensee or agent or officer17-39
thereof to pay any17-40
rendered in connection with his operations as a contractor, when he has the17-41
capacity to pay or when he has received sufficient17-42
as payment for the particular construction work, project or operation for17-43
which the services or materials were rendered or purchased, or the false18-1
denial of any such amount due or the validity of the claim thereof with18-2
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 recorded18-5
against the property to be improved by a construction project for the18-6
price of any materials or services rendered to the project by order of the18-7
contractor, when the contractor has received sufficient money therefor as18-8
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: 624.3013 The following acts, among others, constitute cause for18-11
disciplinary action pursuant to NRS 624.300:18-12
1. Failure to keep records showing all contracts, documents, receipts18-13
and disbursements by a licensee of all of his transactions as a contractor18-14
and to keep them open for inspection by the board or executive officer for a18-15
period of not less than 3 years after the completion of any construction18-16
project or operation to which the records refer.18-17
2. Misrepresentation of a material fact by an applicant or licensee18-18
18-19
furnished the board in connection with official matters of the board.18-20
3. Failure to establish financial responsibility pursuant to NRS18-21
624.220, 624.260, 624.263 and 624.265 and section 9 of this act at the18-22
time of renewal of the license or at any other time when required by the18-23
board.18-24
4. Failure to keep in force the bond or cash deposit pursuant to NRS18-25
624.270 for the full period required by the board.18-26
5. Failure in any material respect to comply with the provisions of this18-27
chapter or the regulations of the board.18-28
Sec. 33. NRS 624.3016 is hereby amended to read as follows: 624.3016 The following acts or omissions, among others, constitute18-30
cause for disciplinary action under NRS 624.300:18-31
1. Any fraudulent or deceitful act committed in the capacity of a18-32
contractor .18-33
2. A conviction of a violation of section 12 of this act or a felony or a18-34
crime involving moral turpitude.18-35
3. Knowingly making a false statement in or relating to the recording18-36
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 597.71918-39
regulations of the board governing contracts for the construction of18-40
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 the18-43
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: 624.307 1. It is unlawful for any person, including a person exempt19-3
under NRS 624.330, to advertise as a contractor unless he has a valid19-4
license in the appropriate classification established by NRS 624.215 and19-5
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 of19-8
any sign or marking on a motor vehicle, in any building, structure,19-9
newspaper, magazine or airway transmission , on the Internet or in any19-10
directory under the listing of contractor with or without any limiting19-11
qualifications.19-12
3. All advertising by a licensed contractor must include the name of19-13
his company and the number of his license.19-14
Sec. 35. NRS 624.360 is hereby amended to read as follows: 624.360 1.19-16
19-17
described in subsection 2 of NRS 624.3013, NRS 624.3014 or subsection19-18
1, 3 or 7 of NRS 624.3016.19-19
2. Any person who violates subsection 1, subsection 1 of NRS19-20
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 punished19-22
by a fine of not19-23
punished by imprisonment in the county jail for not more than 6 months .19-25
(b) For the second19-26
misdemeanor and shall be punished by a fine of not less than19-27
$2,000 nor more than19-28
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 felony19-30
and shall be punished by a fine of not less than $5,000 nor more than19-31
$10,000 and may be further punished by imprisonment in the state prison19-32
for not less than 1 year and not more than 4 years.19-33
19-34
precluded by any disciplinary action taken by the board against a contractor19-35
pursuant to the provisions of NRS 624.300 to 624.305, inclusive19-36
section 10 of this act..19-37
Sec. 36. NRS 171.17751 is hereby amended to read as follows: 171.17751 1. Any board of county commissioners or governing body19-39
of a city may designate the chief officer of the organized fire department or19-40
any employees designated by him, and certain of its inspectors of solid19-41
waste management, building, housing and licensing inspectors, zoning19-42
enforcement officers, parking enforcement officers, animal control officers,19-43
traffic engineers, and marshals and park rangers of units of specialized law20-1
enforcement established pursuant to NRS 280.125, to prepare, sign and20-2
serve written citations on persons accused of violating a county or city20-3
ordinance.20-4
2. The state health officer and the health officer of each county, district20-5
and city may designate certain of his employees to prepare, sign and serve20-6
written citations on persons accused of violating any law, ordinance or20-7
regulation of a board of health that relates to public health.20-8
3. The chief of the manufactured housing division of the department of20-9
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 or20-11
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 employees20-14
to prepare, sign and serve written citations on persons20-15
20-16
5. An employee designated pursuant to this section:20-17
(a) May exercise the authority to prepare, sign and serve citations only20-18
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 a20-20
citation only to enforce an ordinance of the city or county by which he is20-21
employed; and20-22
(c) Shall comply with the provisions of NRS 171.1773.20-23
Sec. 37. NRS 278.610 is hereby amended to read as follows: 278.610 1. Except as otherwise provided in subsection 3, after the20-25
establishment of the position of building inspector and the filling of the20-26
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 within20-28
the territory covered by the building code or zoning regulations without20-29
obtaining a building permit from the building inspector.20-30
2. The building inspector shall not issue any permit unless the plans of20-31
and for the proposed erection, construction, reconstruction, alteration or20-32
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 to20-34
which the state public works board has delegated its powers and duties20-35
under NRS 393.110.20-36
4. A building inspector shall not issue a building permit to a person20-37
acting for another unless the applicant proves to the satisfaction of the20-38
building inspector that he is licensed as a contractor for that work pursuant20-39
to the provisions of20-40
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 private21-3
investigator’s licensing board pursuant to NRS 648.025 has the powers of a21-4
peace officer.21-5
2. A person employed as a criminal investigator by the state21-6
contractors’ board pursuant to section 2 of this act has the powers of a21-7
peace officer to carry out his duties pursuant to subsection 2 of NRS21-8
624.115, for the limited purpose of obtaining and exchanging21-9
information on persons who hold a contractor’s license or are applying21-10
for a contractor’s license.21-11
Sec. 39. Sections 18, 19 and 20 of Assembly Bill No. 636 of this21-12
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 this21-15
chapter expires 1 year after the date on which it is issued, except21-16
that the board may by regulation prescribe shorter or longer periods21-17
and prorated fees to establish a system of staggered renewals. Any21-18
license which is not renewed on or before the date for renewal is21-19
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 the21-23
holder of the license is a natural person;21-24
(c) The fee for renewal fixed by the board21-25
(d) Any assessment required pursuant to section 9 of this act if21-26
the holder of the license is a residential contractor as defined in21-27
section 7 of this act.21-28
3. The board may require a licensee to demonstrate his21-29
financial responsibility at any time through the submission of:21-30
(a) A financial statement that is prepared by an independent21-31
certified public accountant; and21-32
(b) If the licensee performs residential construction, such21-33
additional documentation as the board deems appropriate.21-34
4. If a license is automatically suspended pursuant to subsection21-35
1, the licensee may have his license reinstated upon filing an21-36
application for renewal within 6 months after the date of suspension21-37
and paying, in addition to the fee for renewal, a fee for21-38
reinstatement fixed by the board, if he is otherwise in good standing21-39
and there are no complaints pending against him. If he is otherwise21-40
not in good standing or there is a complaint pending, the board shall21-41
require him to provide a current financial statement prepared by an21-42
independent certified public accountant or establish other21-43
conditions for reinstatement. If the licensee is a natural person, his22-1
application for renewal must be accompanied by the statement22-2
required pursuant to NRS 624.268. A license which is not reinstated22-3
within 6 months after it is automatically suspended may be canceled22-4
by the board, and a new license may be issued only upon22-5
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, the22-8
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 the22-12
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 established22-15
pursuant to section 9 of this act, any amount paid out of the22-16
account pursuant to section 13 of this act as a result of an act or22-17
omission of that licensee;22-18
(f) Order the licensee to take action to correct a condition22-19
resulting from an act which constitutes a cause for disciplinary22-20
action, at the licensee’s cost, that may consist of requiring the22-21
licensee to:22-22
(1) Perform the corrective work himself;22-23
(2) Hire and pay another licensee to perform the corrective22-24
work; or22-25
(3) Pay to the owner of the construction project a specified22-26
sum to correct the condition; or22-27
22-28
including, without limitation, increasing the amount of the surety22-29
bond or cash deposit of the licensee,22-30
if the licensee commits any act which constitutes a cause for22-31
disciplinary action.22-32
2. If the board suspends or revokes the license of a contractor22-33
for failure to establish financial responsibility, the board may, in22-34
addition to any other conditions for reinstating or renewing the22-35
license, require that each contract undertaken by the licensee for a22-36
period to be designated by the board, not to exceed 12 months, be22-37
separately covered by a bond or bonds approved by the board and22-38
conditioned upon the performance of and the payment of labor and22-39
materials required by the contract.22-40
3. If a licensee violates the provisions of NRS 624.3014 or22-41
subsection 3 of NRS 624.3015, the board may impose an22-42
administrative fine of not more than $20,000.23-1
4. If a licensee commits a fraudulent act which is a cause for23-2
disciplinary action under NRS 624.3016, the correction of any23-3
condition resulting from the act does not preclude the board from23-4
taking disciplinary action.23-5
5. If the board finds that a licensee has engaged in repeated acts23-6
that would be cause for disciplinary action, the correction of any23-7
resulting conditions does not preclude the board from taking23-8
disciplinary action pursuant to this section.23-9
6. The expiration of a license by operation of law or by order or23-10
decision of the board or a court, or the voluntary surrender of a23-11
license by a licensee, does not deprive the board of jurisdiction to23-12
proceed with any investigation of, or action or disciplinary23-13
proceeding against, the licensee or to render a decision suspending23-14
or revoking the license.23-15
7. If discipline is imposed pursuant to this section, including23-16
any discipline imposed pursuant to a stipulated settlement, the costs23-17
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 of23-23
a contractor.23-24
2. A conviction of a violation of section 12 of Assembly Bill23-25
No. 634 of this23-26
turpitude.23-27
3. Knowingly making a false statement in or relating to the23-28
recording of a notice of lien pursuant to the provisions of NRS23-29
108.226.23-30
4. Failure to give a notice required by NRS 108.245 or23-31
108.246.23-32
5. Failure to comply with NRS 597.713, 597.716 or 597.719 or23-33
any regulations of the board governing contracts for the23-34
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 the23-37
commission of any other fraudulent or deceitful act, to obtain a23-38
license.23-39
8. Failure to pay an assessment required pursuant to section23-40
9 of this act.24-1
Sec. 40. The amendatory provisions of this act do not apply to24-2
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.~