Amendment No. 629

Assembly Amendment to Assembly Bill No. 634 (BDR 54-762)

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 section 1, page 1, line 2, by deleting "8," and inserting "12,".

Amend the bill as a whole by deleting sections 2 and 3, renumbering sections 4 through 6 as sections 5 through 7 and adding new sections designated sections 2 through 4, following section 1, to read as follows:

"Sec. 2. 1. The board shall:

(a) Establish a special investigations unit to enforce the provisions of this chapter, consisting of criminal investigators and such other investigators as the board deems appropriate.

(b) Adopt regulations setting forth the qualifications required for investigators employed to carry out this section.

2. As used in this section, "criminal investigator" means a person employed to perform the duties set forth in subsection 2 of NRS 624.115.

Sec. 3. 1. The special investigations unit of the board shall:

(a) Upon the receipt of a complaint against a licensee, initiate an investigation of the complaint.

(b) Within 10 days after receiving such a complaint, notify the licensee and, if known, the person making the complaint of the initiation of the investigation, and provide a copy of the complaint to the licensee.

(c) Upon the completion of its investigation of a complaint, provide the licensee and, if known, the person making the complaint with written notification of any action taken on the complaint and the reasons for taking that action.

2. The special investigations unit of the board may attempt to resolve the complaint by:

(a) Meeting and conferring with the licensee and the person making the complaint; and

(b) Requesting the licensee to provide appropriate relief.

3. If the subject matter of the complaint is not within the jurisdiction of the board, or if the board or the special investigations unit is unable to resolve the complaint to the satisfaction of the person making the complaint, after exhausting all reasonable remedies and methods of resolution, the board or its designee shall:

(a) Forward the complaint, together with any evidence or other information in the possession of the board concerning the complaint, to any public or private agency which, in the opinion of the board, would be effective in resolving the complaint to the satisfaction of the person making the complaint; and

(b) Notify the person making the complaint of its action pursuant to paragraph (a) and of any other procedures which may be available to resolve the complaint to the satisfaction of that person.

Sec. 4. 1. If the executive officer of the board, based upon a preponderance of the evidence in his possession, has reason to believe that a licensee or applicant for a contractor’s license has committed an act which constitutes a cause for disciplinary action pursuant to NRS 624.300, he may issue or authorize the issuance of a written administrative citation to the licensee or applicant. A citation issued pursuant to this section may include, without limitation:

(a) An order to take action to correct a condition resulting from an act that constitutes a cause for disciplinary action, at the licensee’s or applicant’s cost;

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

(c) An order to reimburse the board for the amount of the expenses incurred to investigate the licensee or applicant.

2. If a written citation issued pursuant to subsection 1 includes an order to take action to correct a condition resulting from an act that constitutes a cause for disciplinary action, the citation must state the time permitted for compliance, which must be not less than 15 days after the date the licensee or applicant receives the citation, and specifically describe the action required to be taken.".

Amend sec. 4, page 2, by deleting lines 15 and 16 and inserting:

"1. Form of a written citation issued pursuant to section 4 of this act;".

Amend sec. 4, page 2, line 19, by deleting "3" and inserting "4".

Amend sec. 5, page 2, line 27, by deleting "3" and inserting "4".

Amend sec. 5, page 2, by deleting lines 31 through 39 and inserting:

"(a) The facts forming the basis for the determination that the licensee or applicant has committed an act which constitutes a cause for disciplinary action;

(b) The time allowed to take any corrective action ordered;

(c) The amount of any administrative fine ordered;

(d) The amount of any order to reimburse the board for the expenses incurred to investigate the licensee or applicant; and

(e) Whether any corrective action described in the citation is reasonable.

3. If a licensee or applicant for a contractor’s license does not contest a citation issued pursuant to section 4 of this act within 15 days after the date that he receives".

Amend sec. 5, page 2, by deleting line 43 and inserting:

"citation issued pursuant to section 4 of this act.".

Amend sec. 6, page 3, line 2, after "citation" by inserting:

"issued pursuant to section 4 of this act".

Amend the bill as a whole by renumbering sections 7 and 8 as section 10 and 11 and adding new sections designated sections 8 and 9, following sec. 6, to read as follows:

"Sec. 8. 1. The board or its designee shall, not less than annually:

(a) Review the complaints received by the board to ascertain whether there are any similarities or common trends among any of those complaints;

(b) Evaluate any of those complaints for which it is determined that the board does not have jurisdiction or that there is no violation of the provisions of this chapter or the regulations adopted pursuant thereto;

(c) Identify potential difficulties in the regulation of contractors and the protection of the public pursuant to this chapter; and

(d) Report any findings and recommendations for legislation to:

(1) The governor; and

(2) The legislature or, if the legislature is not in session, the legislative commission.

2. The board shall take such action as is necessary to keep the public informed of its activities pursuant to this section.

Sec. 9. 1. A licensee or an applicant for a contractor’s license must prove his financial responsibility by demonstrating that his past and current financial solvency and expectations for financial solvency in the future are such as to provide the board with a reasonable expectation that the licensee or applicant can successfully do business as a contractor without jeopardy to the public health, safety and welfare.

2. An applicant for the issuance or renewal of a contractor’s license must provide the board with a financial statement prepared by an independent certified public accountant and such other documentation as the board requires to determine his past and current financial solvency and expectations for financial solvency in the future.".

Amend sec. 7, page 3, by deleting line 11 and inserting:

"4 of this act within 15 days after the receipt of the citation, or, if a".

Amend sec. 7, page 3, line 14, after "3." by inserting:

"Except as otherwise provided in subsection 2, failure to pay an administrative fine imposed pursuant to this chapter within 30 days after:

(a) Receiving notice of the imposition of the fine; or

(b) The final administrative or judicial decision affirming the imposition of the fine,

whichever occurs later.

4.".

Amend the bill as a whole by renumbering sections 9 and 10 as sections 13 and 14 and adding a new section designated sec. 12, following sec. 8, to read as follows:

"Sec. 12. 1. Except as otherwise provided in this chapter, any person other than an applicant for a contractor’s license who takes an examination of the board on behalf of the applicant, is guilty of a misdemeanor.

2. Any person who, without the authorization of the board, provides any portion of an examination of the board to another person, is guilty of a misdemeanor.".

Amend sec. 9, page 3, by deleting line 28 and inserting:

"2. The board may require criminal investigators who are employed by the board pursuant to section 2 of this act".

Amend sec. 9, page 3, line 31, after "of" by inserting:

"a licensee or".

Amend sec. 9, page 3, line 36, by deleting "NRS 624.230;" and inserting:

"the provisions of this chapter;".

Amend sec. 9, page 3, line 39, by deleting "Violate" and inserting "Otherwise violate".

Amend sec. 9, page 3, by deleting lines 41 and 42 and inserting:

"(c) Issue a written misdemeanor citation pursuant to NRS 171.1773 to a person who violates a provision of this chapter that is punishable as a misdemeanor. A criminal investigator may request any constable, sheriff or other peace officer to assist him in the issuance of such a citation.".

Amend sec. 10, page 4, by deleting lines 16 through 25 and inserting:

"(a) Arrests;

(b) Guilty pleas;

(c) Sentencing;

(d) Probation;

(e) Parole;

(f) Bail;

(g) Complaints; and

(h) Final dispositions,".

Amend sec. 10, page 4, by deleting line 28 and inserting:

"person engaged in construction knowingly:".

Amend sec. 10, page 4, line 34, after "name," by inserting:

"contractor’s license number".

Amend sec. 10, page 4, by deleting lines 36 and 37 and inserting:

"(d) Commits any act of theft, forgery, fraud or embezzlement, in connection with a construction project, that violates a criminal statute of this state;".

Amend the bill as a whole by renumbering sections 11 and 12 as sections 24 and 25 and adding new sections designated sections 15 through 23, following sec. 10, to read as follows:

"Sec. 15. NRS 624.170 is hereby amended to read as follows:

624.170 1. Any member of the board or the executive officer may take testimony and proofs concerning all matters within the jurisdiction of the board.

2. The board or any member thereof, or the executive officer, may:

(a) Administer oaths.

(b) Certify to all official acts.

(c) Issue subpoenas for the attendance of witnesses and the production of records, books and papers in connection with any hearing [before the board or any investigation by the board of an unlicensed contractor.] , investigation or other proceeding of the board.

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 any hearing , [or] investigation or other proceeding is held by the board may compel the attendance of witnesses, the giving of testimony and the production of records, books and papers as required by any subpoena issued by the board or the executive officer.

2. In case of the refusal of any witness to attend or testify or produce any [papers] items required by the subpoena , the board may report to the district court in and for the county in which the hearing , [or] investigation or other proceeding will be held by petition, setting forth that:

(a) Due notice has been given of the time and place of attendance of the witness or the production of the records, books or papers;

(b) The witness has been subpoenaed in the manner prescribed in this chapter; and

(c) The witness has failed and refused to attend or produce the [papers] items required by subpoena before the board in the cause or proceeding named in the subpoena, or has refused to answer questions propounded to him in the course of the hearing [or investigation,] , investigation or other proceeding,

and ask an order of the court compelling the witness to attend and testify or produce the records, books or papers before the board.

3. The court, upon petition of the board, shall enter an order directing the witness to appear before the court at a time and place to be fixed by the court in the order, the time to be not more than 10 days after the date of the order, and then and there show cause why he has not attended or testified or produced the records, books or papers before the board. A certified copy of the order must be served upon the witness.

4. If it appears to the court that the subpoena was regularly issued by the board or the executive officer, the court shall thereupon enter an order that the witness appear before the board at the time and place fixed in the order and testify or produce the required records, books or papers. Upon failure to obey the order , the witness must be dealt with as for contempt of court.

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

624.200 The board may in any hearing , [or] investigation or other proceeding before it cause the depositions of witnesses residing within or without the state to be taken in the manner prescribed by the Nevada Rules of Civil Procedure for like depositions in civil actions in the district courts of this state, and to that end may compel the attendance of witnesses and the production of records, books and papers.

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

624.210 Any party to any hearing , [or] investigation or other proceeding before the board has the right to the attendance of witnesses in his behalf at the hearing , [or] investigation or other proceeding or upon deposition as set forth in this chapter upon making a request therefor to the board and designating the person sought to be subpoenaed.

Sec. 19. 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 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 [.

3. Nothing contained in this section prohibits] and section 9 of this act.

3. This section does not prohibit 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. 20. NRS 624.230 is hereby amended to read as follows:

624.230 1. It is unlawful for any person or combination of persons to:

(a) Engage in the business or act in the capacity of a contractor within this state; or

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

without having [a] an active license therefor as provided in this chapter, unless that person or combination of persons is exempted from licensure [as provided in this chapter.] pursuant to NRS 624.330.

2. The district attorneys in this state shall prosecute all violations of this section which occur in their respective counties, unless the violations are prosecuted by the attorney general. Upon the request of the board, the attorney general shall prosecute any violation of this section in lieu of prosecution by the district attorney.

3. In addition to any other penalty imposed pursuant to this chapter, a person who is convicted of violating subsection 1 may be required to pay:

(a) Court costs and the costs of prosecution;

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

(c) Damages he caused as a result of the violation up to the amount of his pecuniary gain from the violation; or

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

4. [Any bid submitted by a person who is neither licensed nor exempted from licensure as provided in this chapter at the time the bid is submitted is void.] If a person submits a bid or enters into a contract in violation of subsection 1, the bid or contract shall be deemed void ab initio.

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

624.250 1. To obtain a license, an applicant must submit to the board an application in writing containing [the] :

(a) The statement that the applicant desires the issuance of a license under the terms of this chapter.

(b) The street address or other physical location of the applicant’s place of business.

(c) The name of a person physically located in this state for service of process on the applicant.

(d) The street address or other physical location in this state and, if different, the mailing address, for service of process on the applicant.

(e) The names and residential and mailing addresses of any owners, partners, officers, directors, members and managerial personnel of the applicant.

(f) Any information requested by the board to ascertain the background, financial responsibility, experience, knowledge and qualifications of the applicant.

2. The application must be:

(a) Made on a form prescribed by the board in accordance with the rules and regulations adopted by the board.

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

3. If the applicant is a natural person, the application must include the social security number of the applicant.

Sec. 22. NRS 624.260 is hereby amended to read as follows:

624.260 1. The board shall require a licensee or an applicant for a contractor’s license 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 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.

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.

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

624.263 1. [For the purposes of this chapter, financial responsibility means a past and present business record of solvency. If the applicant or contractor is a corporation, its] The financial responsibility of a licensee or an applicant for a contractor’s license must be established independently of and without reliance on [the assets of its officers, directors or stockholders,] any assets or guarantees of any owners or managing officers of the licensee or applicant, but the financial responsibility of [its officers and directors] any owners or managing officers of the licensee or applicant may be inquired into and considered as a criterion in determining the [corporation’s financial responsibility.] financial responsibility of the licensee or applicant.

2. The financial responsibility of an applicant for a contractor’s license or of a licensed contractor must be determined by using the following standards and criteria in connection with each applicant or contractor and each associate or partner thereof:

(a) Net worth.

(b) Amount of liquid assets.

(c) Prior payment and credit records.

(d) Previous business experience.

(e) Prior and pending lawsuits.

(f) Prior and pending liens.

(g) Adverse judgments.

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

(i) Prior suspension or revocation of a contractor’s license in Nevada or elsewhere.

(j) An adjudication of bankruptcy or any other proceeding under the federal bankruptcy laws, including:

(1) A composition, arrangement or reorganization proceeding;

(2) The appointment of a receiver of the property of the applicant or contractor or any officer, director, associate or partner thereof under the laws of this state or the United States; or

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

(k) Form of business organization (corporate or otherwise).

(l) Information obtained from confidential financial references and credit reports.

(m) Reputation for honesty and integrity of the applicant or contractor or any officer, director, associate or partner thereof.

3. A licensed contractor shall, as soon as it is reasonably practicable, notify the board in writing upon the filing of a petition or application relating to the contractor that initiates any proceeding, appointment or assignment set forth in paragraph (j) of subsection 2. The written notice must be accompanied by:

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

(b) A copy of any order of the court which is relevant to the financial responsibility of the contractor, including any order appointing a trustee, receiver or assignee.".

Amend sec. 11, page 5, by deleting lines 10 and 11 and inserting:

"[3.] (c) Entered a plea of nolo contendere, guilty or guilty but mentally ill to, been found guilty of or been convicted of a [felony or crime involving moral turpitude] crime".

Amend sec. 11, page 5, line 18, by deleting "An" and inserting:

"Upon the request of the board, an".

Amend sec. 11, page 5, by deleting line 25 and inserting:

"The applicant’s fingerprints may be taken by an agent of the board or an agency of law".

Amend sec. 11, pages 5 and 6, by deleting lines 37 through 43 on page 5 and lines 1 through 4 on page 6, and inserting:

"(a) Arrests;

(b) Guilty pleas;

(c) Sentencing;

(d) Probation;

(e) Parole;

(f) Bail;

(g) Complaints; and

(h) Final dispositions,

for the investigation of a licensee or an applicant for a contractor’s license.".

Amend the bill as a whole by renumbering sec. 13 as sec. 28 and adding new sections designated sections 26 and 27, following sec. 12, to read as follows:

"Sec. 26. NRS 624.283 is hereby amended to read as follows:

624.283 1. Each license issued under the provisions of this chapter expires 1 year after the date on which it is issued, except that the board may by regulation prescribe shorter or longer periods and prorated fees to establish a system of staggered renewals. Any license which is not renewed on or before the date for renewal is automatically suspended.

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

(a) An application for renewal;

(b) The statement required pursuant to NRS 624.268 if the holder of the license is a natural person; and

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

3. The board may require [the] a licensee to [submit] demonstrate his financial responsibility at any time [a] through the submission of:

(a) A financial statement that is prepared by [a] an independent certified public accountant [, if the board believes that:

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

(b) The licensee has violated or may be violating a provision of chapter 624 of NRS or a regulation adopted pursuant thereto; or

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

(b) If the licensee performs residential construction, such additional documentation as the board deems appropriate.

4. If a license is automatically suspended pursuant to subsection 1, the licensee may have his license reinstated upon filing an application for renewal within 6 months after the date of suspension and paying, in addition to the fee for renewal, a fee for reinstatement fixed by the board, if he is otherwise in good standing and there are no complaints pending against him. If he is otherwise not in good standing or there is a complaint pending, the board shall require him to provide a current financial statement prepared by [a] an independent certified public accountant or establish other conditions for reinstatement. If the licensee is a natural person, his application for renewal must be accompanied by the statement required pursuant to NRS 624.268. A license which is not reinstated within 6 months after it is automatically suspended may be canceled by the board, and a new license may be issued only upon application for an original contractor’s license.

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 a combination of the grounds for initiating disciplinary action may exist as to a contractor in this state, the member of the board may inform the executive [director] officer of the board of the allegations. The executive [director,] officer, upon receiving such information shall take such actions as he deems appropriate under the circumstances.".

Amend sec. 13, page 7, by deleting lines 19 and 20 and inserting:

"624.300 1. Except as otherwise provided in subsection [6,] 3, the board may:".

Amend sec. 13, page 7, by deleting line 27 and inserting:

"cost [;] , that may consist of requiring the licensee to:

(1) Perform the corrective work himself;

(2) Hire and pay another licensee to perform the corrective work; or

(3) Pay to the owner of the construction project a specified sum to correct the condition; or".

Amend sec. 13, page 8, by deleting lines 14 through 20 and inserting:

"[6. The board shall not take any disciplinary action pursuant to this section regarding a constructional defect, as that term is defined in NRS 40.615, during the period in which any claim arising out of that defect is being settled, mediated or otherwise resolved pursuant to NRS 40.600 to 40.695, inclusive, unless the disciplinary action is necessary to protect the public health or safety.]

7. If discipline is imposed pursuant to this section, including any discipline imposed pursuant to a stipulated settlement, the costs of the".

Amend the bill as a whole by renumbering sections 14 and 15 as sections 34 and 35 and adding new sections designated sections 29 through 33, following sec. 13, to read as follows:

"Sec. 29. NRS 624.301 is hereby amended to read as follows:

624.301 The following acts, among others, constitute cause for disciplinary action under NRS 624.300:

1. Abandonment without legal excuse of any construction project or operation engaged in or undertaken by the licensee as a contractor.

2. Abandonment of a construction project when the percentage of the project completed is less than the percentage of the total price of the contract paid to the contractor at the time of abandonment, unless the contractor is entitled to retain the amount paid pursuant to the terms of the contract or the contractor refunds the excessive amount paid within 30 days after the abandonment of the project.

3. Failure in a material respect on the part of a licensee to complete any construction project or operation for the price stated in the contract for the project or operation or any modification of the contract.

[3.] 4. Willful failure or refusal without legal excuse on the part of a licensee as a contractor to prosecute a construction project or operation with reasonable diligence, thereby causing material injury to another.

[4.] 5. Willful failure or refusal without legal excuse on the part of a licensee to comply with the terms of a construction contract or written warranty, thereby causing material injury to another.

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

624.3011 1. The following acts, among others, constitute cause for disciplinary action under NRS 624.300:

(a) Willful and prejudicial departure from or disregard of plans or specifications in any material respect without the consent of the owner or his authorized representative and the person entitled to have the particular construction project or operation completed in accordance with the plans and specifications.

(b) [Failure to respond to a claim arising out of a constructional defect, as that term is defined in NRS 40.615.

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

(1) The building laws of the state or of any political subdivision thereof.

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

(3) Any provision of the Nevada health and safety laws or the regulations adopted thereunder relating to the digging, boring or drilling of water wells.

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

2. If a contractor performs construction without obtaining any necessary building permit, there is a rebuttable presumption that the contractor willfully and deliberately violated the building laws of this state or of its political subdivisions. [The board shall not require the contractor to obtain that permit more than 90 days after the construction is completed.]

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

624.3012 The following acts, among others, constitute cause for disciplinary action under NRS 624.300:

1. Diversion of [funds] money or property received for the completion of a specific construction project or operation or for a specified purpose in the completion of any construction project or operation to any other construction project or operation, obligation or purpose.

2. Willful or deliberate failure by any licensee or agent or officer thereof to pay any [moneys] money when due for any materials or services rendered in connection with his operations as a contractor, when he has the capacity to pay or when he has received sufficient [funds] money therefor as payment for the particular construction work, project or operation for which the services or materials were rendered or purchased, or the false denial of any such amount due or the validity of the claim thereof with intent to secure a discount upon such indebtedness or with intent to injure, delay or defraud the person to whom such indebtedness is due.

3. Failure to obtain the discharge or release of any lien recorded against the property to be improved by a construction project for the price of any materials or services rendered to the project by order of the contractor, when the contractor has received sufficient money therefor as payment for the project, within 75 days after the recording of the lien.

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

624.3013 The following acts, among others, constitute cause for disciplinary action pursuant to NRS 624.300:

1. Failure to keep records showing all contracts, documents, receipts and disbursements by a licensee of all of his transactions as a contractor and to keep them open for inspection by the board or executive officer for a period of not less than 3 years after the completion of any construction project or operation to which the records refer.

2. Misrepresentation of a material fact by an applicant or licensee [in obtaining a license, or] in connection with any information or evidence furnished the board in connection with official matters of the board.

3. Failure to establish financial responsibility pursuant to NRS 624.220, 624.260, 624.263 and 624.265 and section 9 of this act at the time of renewal of the license or at any other time when required by the board.

4. Failure to keep in force the bond or cash deposit pursuant to NRS 624.270 for the full period required by the board.

5. Failure in any material respect to comply with the provisions of this chapter or the regulations of the board.

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

624.3016 The following acts or omissions, among others, constitute cause for disciplinary action under NRS 624.300:

1. Any fraudulent or deceitful act committed in the capacity of a contractor . [whereby substantial injury is sustained by another.]

2. A conviction of a violation of section 12 of this act or a felony or a crime involving moral turpitude.

3. Knowingly making a false statement in or relating to the recording of a notice of lien pursuant to the provisions of NRS 108.226.

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

5. Failure to comply with NRS 597.713, 597.716 or 597.719 [.] or any regulations of the board governing contracts for the construction of residential pools and spas.

6. Failure to comply with NRS 624.321.

7. Misrepresentation or the omission of a material fact, or the commission of any other fraudulent or deceitful act, to obtain a license.".

Amend sec. 14, page 8, line 31, after "transmission" by inserting:

", on the Internet".

Amend sec. 15, page 8, by deleting lines 36 through 39 and inserting:

"624.360 1. [Any person violating any of the provisions of this chapter:] It is unlawful for a person to commit any act or omission described in subsection 2 of NRS 624.3013, NRS 624.3014 or subsection 1, 3 or 7 of NRS 624.3016.

2. Any person who violates subsection 1, subsection 1 of NRS 624.230 or NRS 624.290, 624.305 or 624.307:

(a) For a first offense, is guilty of a misdemeanor and shall be punished by a fine of not [less than $500 nor] more than $1,000, and may be further punished by imprisonment in the county jail for".

Amend sec. 15, page 9, by deleting line 7 and inserting:

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

Amend sec. 15, page 9, line 9, by deleting "inclusive." and inserting:

"inclusive [.] , and section 10 of this act.".

Amend the bill as a whole by renumbering sections 16 and 17 as sections 39 and 40 and adding new sections designated sections 36 through 38, following sec. 15, to read as follows:

"Sec. 36. NRS 171.17751 is hereby amended to read as follows:

171.17751 1. Any board of county commissioners or governing body of a city may designate the chief officer of the organized fire department or any employees designated by him, and certain of its inspectors of solid waste management, building, housing and licensing inspectors, zoning enforcement officers, parking enforcement officers, animal control officers, traffic engineers, and marshals and park rangers of units of specialized law enforcement established pursuant to NRS 280.125, to prepare, sign and serve written citations on persons accused of violating a county or city ordinance.

2. The state health officer and the health officer of each county, district and city may designate certain of his employees to prepare, sign and serve written citations on persons accused of violating any law, ordinance or regulation of a board of health that relates to public health.

3. The chief of the manufactured housing division of the department of business and industry may designate certain of his employees to prepare, sign and serve written citations on persons accused of violating any law or regulation of the division relating to the provisions of chapters 118B, 461, 461A and 489 of NRS.

4. The state contractors’ board may designate certain of its employees to prepare, sign and serve written citations on persons [accused of violating NRS 624.230.] pursuant to subsection 2 of NRS 624.115.

5. An employee designated pursuant to this section:

(a) May exercise the authority to prepare, sign and serve citations only within the field of enforcement in which he works;

(b) May, if he is employed by a city or county, prepare, sign and serve a citation only to enforce an ordinance of the city or county by which he is employed; and

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

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

278.610 1. Except as otherwise provided in subsection 3, after the establishment of the position of building inspector and the filling of the position as provided in NRS 278.570, it is unlawful to erect, construct, reconstruct, alter or change the use of any building or other structure within the territory covered by the building code or zoning regulations without obtaining a building permit from the building inspector.

2. The building inspector shall not issue any permit unless the plans of and for the proposed erection, construction, reconstruction, alteration or use fully conform to all building code and zoning regulations then in effect.

3. The provisions of subsection 1 do not apply to a school district to which the state public works board has delegated its powers and duties under NRS 393.110.

4. A building inspector shall not issue a building permit to a person acting for another unless the applicant proves to the satisfaction of the building inspector that he is licensed as a contractor for that work pursuant to the provisions of [NRS 624.230 to 624.320, inclusive.] chapter 624 of NRS.

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

289.300 1. A person employed as an investigator by the private investigator’s licensing board pursuant to NRS 648.025 has the powers of a peace officer.

2. A person employed as a criminal investigator by the state contractors’ board pursuant to section 2 of this act has the powers of a peace officer to carry out his duties pursuant to subsection 2 of NRS 624.115.".

Amend the title of the bill to read as follows:

"AN ACT relating to contractors; providing for the establishment and duties of a special investigations unit; 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.".