Amendment No. 628

Assembly Amendment to Assembly Bill No. 633 (BDR 54-761)

Proposed by: Committee on Commerce and Labor

Amendment Box:

Resolves Conflicts with: N/A

Amends: Summary: Title: Preamble: Joint Sponsorship:

ASSEMBLY ACTION Initial and Date | SENATE ACTION Initial and Date

Adopted Lost | Adopted Lost

Concurred In Not | Concurred In Not

Receded Not | Receded Not

Amend the bill as a whole by renumbering sec. 5 as sec. 9 and adding new sections designated sections 5 through 8, following sec. 4, to read as follows:

"Sec. 5. NRS 624.120 is hereby amended to read as follows:

624.120 The board shall adopt a seal for its own use. The seal must have imprinted thereon the words "State Contractors’ Board, State of Nevada." The executive officer has the care and custody of the seal. A person shall not use, copy or reproduce the seal in any way not authorized by this chapter or the regulations of the board.

Sec. 6. NRS 624.220 is hereby amended to read as follows:

624.220 1. The board may adopt regulations necessary to effect the classification and subclassification of contractors in a manner consistent with established usage and procedure as found in the construction business, and may limit the field and scope of the operations of a licensed contractor to those in which he is classified and qualified to engage as defined by NRS 624.215 and the regulations of the board.

2. The board [may] shall limit the field and scope of the operations of a licensed contractor by establishing a monetary limit on a contractor’s license, and the limit must be the maximum contract a licensed contractor may undertake on one or more construction contracts on a single construction site or subdivision site for a single client. The board may take any other action designed to limit the field and scope of the operations of a contractor as may be necessary to protect the health, safety and general welfare of the public. The limit [, if any,] must be determined after consideration of the factors set forth in NRS 624.260, 624.263 and 624.265 [.] and any other factors that the board determines are necessary to assess or project the future financial solvency of the contractor.

3. A licensed contractor may request that the board increase the monetary limit on his license, either on a permanent basis or for a single construction project. A request submitted to the board pursuant to this subsection must be in writing on a form prescribed by the board and accompanied by such supporting documentation as the board may require. If a request submitted pursuant to this section is for a single construction project, the request must be submitted to the board at least 2 working days before the date on which the contractor intends to submit his bid for the project.

4. Nothing contained in this section prohibits a specialty contractor from taking and executing a contract involving the use of two or more crafts or trades, if the performance of the work in the crafts or trades, other than in which he is licensed, is incidental and supplemental to the performance of work in the craft for which the specialty contractor is licensed.

Sec. 7. NRS 624.260 is hereby amended to read as follows:

624.260 1. The board shall require an applicant or licensed contractor to show such a degree of experience, financial responsibility and such general knowledge of the building, safety, health and lien laws of the State of Nevada and the [rudimentary] administrative principles of the contracting business as the board deems necessary for the safety and protection of the public.

2. An applicant or licensed contractor may qualify in regard to his experience and knowledge in the following ways:

(a) If a natural person, he may qualify by personal appearance or by the appearance of his responsible managing employee.

(b) If a copartnership, a corporation or any other combination or organization, it may qualify by the appearance of the responsible managing officer or member of the personnel of the applicant firm.

If an applicant or licensed contractor intends to qualify pursuant to this subsection by the appearance of another person, the applicant or licensed contractor shall submit to the board such information as the board determines is necessary to demonstrate the duties and responsibilities of the other person so appearing with respect to the supervision and control of the operations of the applicant relating to construction.

3. The natural person qualifying on behalf of another natural person or firm under paragraphs (a) and (b) of subsection 2 must prove that he is a bona fide member or employee of that person or firm and when his principal or employer is actively engaged as a contractor shall exercise authority in connection with his principal or employer’s contracting business in the following manner:

(a) To make technical and administrative decisions;

(b) To hire, superintend, promote, transfer, lay off, discipline or discharge other employees and to direct them, either by himself or through others, or effectively to recommend such action on behalf of his principal or employer; and

(c) To devote himself solely to his principal or employer’s business and not to take any other employment which would conflict with his duties under this subsection.

4. A natural person may not qualify on behalf of another for more than one active license unless:

(a) One person owns at least 25 percent of each licensee for which he qualifies; or

(b) One licensee owns at least 25 percent of the other licensee.

5. Except as otherwise provided in subsection 6, in addition to the other requirements set forth in this section, each applicant for licensure as a contractor must have had, within the 10 years immediately preceding the filing of his application for licensure, at least 4 years of experience as a journeyman, foreman, supervising employee or contractor in the specific classification in which he is applying for licensure. Training received in a program offered at an accredited college or university or an equivalent program approved by the board may be used to satisfy not more than 3 years of experience required pursuant to this subsection.

6. If the applicant who is applying for licensure has previously qualified for a contractor’s license in the same classification in which he is applying for licensure, the experience required pursuant to subsection 5 need not be accrued within the 10 years immediately preceding the application.

7. As used in this section, "journeyman" means a person who:

(a) Is fully qualified to perform, without supervision, work in the classification in which he is applying for licensure; or

(b) Has successfully completed:

(1) A program of apprenticeship for the classification in which he is applying for licensure that has been approved by the state apprenticeship council; or

(2) An equivalent program approved by the board.

Sec. 8. NRS 624.265 is hereby amended to read as follows:

624.265 An applicant for a contractor’s license or a licensed contractor and each officer, director, partner and associate thereof [shall] must possess good character. Lack of character may be established by showing that the applicant or licensed contractor, or any officer, director, partner or associate thereof , has:

1. Committed any act which [, if committed by any licensed contractor,] would be grounds for the denial, suspension or revocation of a contractor’s license;

2. A bad reputation for honesty and integrity;

3. Entered a plea of nolo contendere, guilty or guilty but mentally ill to, been found guilty of or been convicted of a misdemeanor, felony or crime involving moral turpitude arising out of, in connection with or related to the activities of such person in such a manner as to demonstrate his unfitness to act as a contractor, and the time for appeal has elapsed or the judgment of conviction has been affirmed on appeal; or

4. Had a license revoked or suspended for reasons that would preclude the granting or renewal of a license for which the application has been made.".

Amend the bill as a whole by renumbering sections 6 through 9 as sections 11 through 14 and adding a new section designated sec. 10, following sec. 5, to read as follows:

"Sec. 10. NRS 624.275 is hereby amended to read as follows:

624.275 1. [The] With respect to a surety bond that a licensed contractor maintains in accordance with NRS 624.270:

(a) The surety shall give prompt notice to the board of any claims paid against the bond of the licensed contractor.

(b) The surety may cancel the bond upon giving 60 days’ notice to the board and to the contractor by certified mail.

2. Upon receipt by the board of the notice described in paragraph (a) of subsection 1, the board shall immediately notify the contractor who is the principal on the bond that his license will be suspended or revoked unless he furnishes an equivalent bond or establishes an equivalent cash deposit before a date set by the board.

3. Upon receipt by the board of the notice [,] described in paragraph (b) of subsection 1, the board shall immediately notify the contractor who is the principal on the bond that his license will be suspended or revoked unless he furnishes an equivalent bond or establishes an equivalent cash deposit before the effective date of the cancellation.

4. The notice mailed to the contractor by the board pursuant to subsection 2 or 3 must be [by certified mail] addressed to his latest address of record in the office of the board.

[2.] 5. If the contractor does not comply with the requirements of the notice from the board, his license must be suspended or revoked on the date [the] :

(a) Set by the board, if the notice was provided to the contractor pursuant to subsection 2; or

(b) The bond is canceled [.] , if the notice was provided to the contractor pursuant to subsection 3.".

Amend sec. 6, page 4, line 5, by deleting "$700." and inserting "$550.".

Amend sec. 6, page 4, line 6, by deleting "$500" and inserting "$450".

Amend the title of the bill by deleting the fourth through ninth lines and inserting:

"prohibiting the unauthorized use, copying or reproduction of the seal of the state contractors’ board; making various changes with respect to a monetary limit on a contractor’s license; expanding certain requirements concerning experience, knowledge, financial responsibility and good character with respect to applicants and licensed contractors; providing for notification to the board by a surety within a certain time after an action is commenced by or against the surety; establishing provisions relating to the suspension or revocation of the license of a contractor if a surety pays a claim against the bond of the licensed contractor; increasing the amount of certain fees that the board may charge; amending certain requirements for a hearing if the board summarily suspends the license of a contractor; and providing other matters properly relating thereto.".