Senate Amendment to Senate Bill No. 475 (BDR 28-517)
Proposed by: Committee on Government Affairs
Amendment Box: Replaces Amendments Nos. 337 and 437.
Amends: Summary: Title: Preamble: Joint Sponsorship:
ASSEMBLY ACTION
Initial and Date | SENATE ACTION Initial and DateAdopted Lost | Adopted Lost
Concurred In Not | Concurred In Not
Receded Not | Receded Not
Amend sec. 2, page 2, by deleting lines 16 through 26 and inserting:
"
3. In a county whose population is 400,000 or more, a public body that is responsible for financing public works may, for its own public works and those financed by a different public body, including, without limitation, an airport if the airport is owned and operated as a department of the public body, contract with a design-build team once in each fiscal year for the design and construction of a public work if the public body determines that:(a) The estimated cost of the public work is at least $5,000,000 but less than $30,000,000; and
(b) Contracting with a design-build team will enable the public body to:
(1) Design and construct the public work at a cost that is significantly lower than the cost that the public body would incur to design and construct the public work using a different method;
(2) Design and construct the public work in a shorter time than would be required to design and construct the public work using a different method, if exigent circumstances require that the public work be designed and constructed within a short time; or
(3) Ensure that the design and construction of the public work is properly coordinated, if the public work is unique, highly technical and complex in nature.
4. Notwithstanding the provisions of subsections 1, 2 and 3, a public body may contract with:
(a) A nonprofit organization for the design and construction of a project to restore, enhance or develop wetlands.
(b) A prime contractor, specialty contractor or design-build team with respect to a public work if the public body determines that the public work is:
(1) Not part of a larger public work; and
(2) Limited in scope to:
(I) Removal of asbestos;
(II) Replacement of equipment or systems for heating, ventilation and air-conditioning;
(III) Replacement of a roof;
(IV) Landscaping; or
(V) Restoration, enhancement or development of wetlands.
".Amend sec. 3, page 2, line 30, by deleting:
"
2 or 3" and inserting:"
2, 3 or 4".Amend sec. 4, page 2, line 41, by deleting "
3" and inserting "4".Amend sec. 5, page 3, by deleting lines 22 and 23 and inserting:
"
build team desiring to submit a proposal for the public work may obtain the information necessary to submit a proposal, including, without limitation, the extent to which designs must be completed for both preliminary and final proposals and any other requirements for the design and construction of the public work that the public body determines to be necessary;".Amend sec. 5, page 3, line 26, by deleting "
bid on" and inserting:"
submit a proposal for".Amend sec. 5, page 3, by deleting lines 31 through 41 and inserting:
"
(g) Notice that a design-build team desiring to submit a proposal for the public work must include with its proposal the information used by the public body to determine finalists among the design-build teams submitting proposals pursuant to subsection 2 of section 7 of this act and a description of that information;(h) A statement that a design-build team whose prime contractor holds a certificate of eligibility to receive a preference in bidding on public works issued pursuant to NRS 338.147 should submit a copy of the certificate of eligibility with its proposal;".
Amend sec. 5, page 3, line 42, by deleting "
bidding".Amend sec. 7, page 4, line 21, by deleting "
Within" and inserting "At least".Amend sec. 8, page 5, line 16, after "
338.144." by inserting:"
If the cost of construction is a factor in the selection of a design-build team, a design-build team whose prime contractor has submitted with its proposal a certificate of eligibility to receive a preference in bidding on public works issued pursuant to NRS 338.147 shall be deemed to have submitted a better proposal than a competing design-build team whose prime contractor has not submitted such a certificate of eligibility if the amount proposed by the design-build team is not more than 5 percent higher than the amount proposed by the competing design-build team.".Amend sec. 8, page 5, line 17, by deleting "
Within" and inserting "At least".Amend sec. 8, page 5, lines 35 and 36, by deleting:
"
team, the relative weight assigned to each factor" and inserting "team".Amend sec. 10, page 6, by deleting lines 26 through 28 and inserting:
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(b) For a public work that consists of:(1) A building and its site, at least one person who holds a certificate of registration to practice architecture pursuant to chapter 623 of NRS.
(2) Anything other than a building and its site, at least one person who holds a certificate of registration to practice architecture pursuant to chapter 623 of NRS or is licensed as a professional engineer pursuant to chapter 625 of NRS.".
Amend sec. 13, page 11, by deleting lines 24 through 26 and inserting:
"and 377 of NRS on materials used for construction
in this state, including, without limitation, construction that is undertaken or carried out on land within the boundaries of this state that is managed by the Federal Government or is on an Indian reservation or Indian colony, of not less than $5,000 for each consecutive 12-month period for 60 months immediately preceding the submission ofAmend sec. 13, page 11, by deleting lines 28 through 30 and inserting:
"of NRS on the vehicles used in the operation of his business
in this state of not less than $5,000 for each consecutive 12-month period for 60 months immediately preceding the submission ofAmend sec. 13, page 12, by deleting lines 41 through 43 and inserting:
"
Amend sec. 13, page 13, by deleting lines 32 through 39 and inserting:
"
work. A written objection authorized pursuant to this subsection must:(a) Set forth proof or substantiating evidence to support the belief of the person or entity that the contractor wrongfully holds a certificate of eligibility to receive a preference in bidding on public works; and
(b) Be filed with the public body at or after the time at which the contractor submitted the bid or proposal to the public body and before the time at which the public body awards the contract for which the bid or proposal was submitted.
12. If a public body receives a written objection pursuant to subsection 11, the public body shall determine whether the objection is accompanied by the proof or substantiating evidence required pursuant to paragraph (a) of that subsection. If the public body determines that the objection is not accompanied by the required proof or substantiating evidence, the public body shall dismiss the objection and may proceed immediately to award the contract. If the public body determines that the objection is accompanied by the required proof or substantiating evidence, the public body shall determine whether the contractor qualifies for the certificate pursuant to the provisions of this section and may proceed to award the contract accordingly.
".Amend the bill as a whole by adding a new section designated sec. 13.5, following sec. 13, to read as follows:
"Sec. 13.5. NRS 338.147 is hereby amended to read as follows:
2. Except as otherwise provided in subsection
(a) Has been found to be a responsible
and responsive contractor by the public body; and(b) At the time he submits his bid, provides to the public body
shall be deemed to have submitted a better bid than a competing contractor who has not provided a copy of such a valid certificate of eligibility if the amount of his bid is not more than 5 percent higher than the amount bid by the competing contractor.
3. The state contractors’ board shall issue a certificate of eligibility to receive a preference in bidding on public works to a general contractor who is licensed pursuant to the provisions of chapter 624 of NRS and submits to the board an affidavit from a certified public accountant setting forth that the general contractor has:
(a) Paid:
(1) The sales and use taxes imposed pursuant to chapters 372, 374 and 377 of NRS on materials used for construction in this state, including, without limitation, construction that is undertaken or carried out on land within the boundaries of this state that is managed by the Federal Government or is on an Indian reservation or Indian colony, of not less than $5,000 for each consecutive 12-month period for 60 months immediately preceding the submission of
(2) The motor vehicle privilege tax imposed pursuant to chapter 371 of NRS on the vehicles used in the operation of his business
in this state of not less than $5,000 for each consecutive 12-month period for 60 months immediately preceding the submission of(3) Any combination of such sales and use taxes and motor vehicle privilege tax
3. A contractor who has previously provided the public body awarding a contract with the proof of payment required pursuant to subsection 2 may update such proof on or before April 1, July 1, September 1 and December 1 rather than with each bid.
4.]
; or(b) Acquired, by inheritance, gift or transfer through a stock option plan for employees, all the assets and liabilities of a viable, operating construction firm that possesses a:
(1) License as a general contractor pursuant to the provisions of chapter 624 of NRS; and
(2) Certificate of eligibility to receive a preference in bidding on public works.
4. For the purposes of complying with the requirements set forth in paragraph (a) of subsection 3, a general contractor shall be deemed to have paid:
(a) Sales and use taxes and motor vehicle privilege taxes paid in this state by an affiliate or parent company of the contractor, if the affiliate or parent company is also a general contractor; and
(b) Sales and use taxes paid in this state by a joint venture in which the contractor is a participant, in proportion to the amount of interest the contractor has in the joint venture.
5. A contractor who has received a certificate of eligibility to receive a preference in bidding on public works from the state contractors’ board pursuant to subsection 3 shall, at the time for the annual renewal of his contractors’ license pursuant to NRS 624.283, submit to the board an affidavit from a certified public accountant setting forth that the contractor has, during the immediately preceding 12 months, paid the taxes required pursuant to paragraph (a) of subsection 3 to maintain his eligibility to hold such a certificate.
6. A contractor who fails to submit an affidavit to the board pursuant to subsection 5 ceases to be eligible to receive a preference in bidding on public works unless he reapplies for and receives a certificate of eligibility pursuant to subsection 3.
7. If a contractor who applies to the state contractors’ board for a certificate of eligibility to receive a preference in bidding on public works submits false information to the board regarding the required payment of taxes, the contractor is not eligible to receive a preference in bidding on public works for a period of 5 years after the date on which the board becomes aware of the submission of the false information.
8.
If any federal statute or regulation precludes the granting of federal assistance or reduces the amount of that assistance for a particular public work because of the provisions of subsection 2, those provisions do not apply insofar as their application would preclude or reduce federal assistance for that work. The provisions of subsection 2 do not apply to any contract for a public work which is expected to cost less than $250,000.
9. If
a bid is submitted by two or more contractors as a joint venture or by one of them as a joint venturer, the provisions of subsection 2 apply only if both or all of the joint venturers separately meet the requirements of that subsection.[6. Except as otherwise provided in subsection 8, if a bid is submitted by a joint venture and one or more of the joint venturers has responsibility for the performance of the contract as described in subsection 7, the provisions of subsection 2 apply only to those joint venturers who have such responsibility.
7. For the purposes of subsection 6, a joint venturer has responsibility for the performance of a contract if he has at least one of the following duties or obligations delegated to him in writing in the contract creating the joint venture:
(a) Supplying the labor necessary to perform the contract and paying the labor and any related taxes and benefits;
(b) Supplying the equipment necessary to perform the contract and paying any charges related to the equipment;
(c) Contracting with and making payments to any subcontractors; or
(d) Performing the recordkeeping for the joint venture and making any payments to persons who provide goods or services related to the performance of the contract.
8. The provisions of subsection 6 do not apply to a joint venture which is formed for the sole purpose of circumventing any of the requirements of this section.]
10. The state contractors’ board shall adopt regulations and may assess reasonable fees relating to the certification of contractors for a preference in bidding on public works.
11. A person or entity who believes that a contractor wrongfully holds a certificate of eligibility to receive a preference in bidding on public works may challenge the validity of the certificate by filing a written objection with the public body to which the contractor has submitted a bid or proposal on a contract for the construction of a public work. A written objection authorized pursuant to this subsection must:
(a) Set forth proof or substantiating evidence to support the belief of the person or entity that the contractor wrongfully holds a certificate of eligibility to receive a preference in bidding on public works; and
(b) Be filed with the public body at or after the time at which the contractor submitted the bid or proposal to the public body and before the time at which the public body awards the contract for which the bid or proposal was submitted.
12. If a public body receives a written objection pursuant to subsection 11, the public body shall determine whether the objection is accompanied by the proof or substantiating evidence required pursuant to paragraph (a) of that subsection. If the public body determines that the objection is not accompanied by the required proof or substantiating evidence, the public body shall dismiss the objection and may proceed immediately to award the contract. If the public body determines that the objection is accompanied by the required proof or substantiating evidence, the public body shall determine whether the contractor qualifies for the certificate pursuant to the provisions of this section and may proceed to award the contract accordingly.".
Amend the bill as a whole by adding a new section designated sec. 14.5, following sec. 14, to read as follows:
"Sec. 14.5. NRS 341.161 is hereby amended to read as follows:
2. The board shall adopt regulations establishing procedures for:
(a) The determination of the qualifications of contractors to bid for contracts for services described in subsection 1.
(b) The bidding and awarding of such contracts, subject to the provisions of subsection 3.
(c) The awarding of construction contracts
(d) The scheduling and controlling of projects.
3. Bids on contracts for services which assist the architect in the design of a project of capital improvement must state separately the contractor’s cost for:
(a) Assisting the architect in the design of the project.
(b) Obtaining all bids for subcontracts.
(c) Administering the construction contract.
4.
(a) Qualified under the regulations of the board to bid for a contract for services described in subsection 1; and
(b) Awarded that contract,
5.]
Amend sec. 21, page 15, by deleting lines 3 through 18 and inserting:
"Sec. 21.
1. The department may contract with a design-build team for the design and construction of a project if the department determines that:(a) Except as otherwise provided in subsection 2, the estimated cost of the project exceeds $30,000,000; and
(b) Contracting with a design-build team will enable the department to:
(1) Design and construct the project at a cost that is significantly lower than the cost that the department would incur to design and construct the project using a different method;
(2) Design and construct the project in a shorter time than would be required to complete the project using a different method, if exigent circumstances require that the project be designed and constructed within a short time; or
(3) Ensure that the design and construction of the project is properly coordinated, if the project is unique, highly technical and complex in nature.
2. Notwithstanding the provisions of subsection 1, the department may, once in each fiscal year, contract with a design-build team for the design and construction of a project the estimated cost of which is at least $5,000,000 but less than $30,000,000 if the department makes the determinations otherwise required pursuant to paragraph (b) of subsection 1.".
Amend sec. 22, page 15, line 21, by deleting "
hearing," and inserting "meeting,".Amend sec. 22, page 15, line 22, by deleting "
hearing" and inserting "meeting".Amend sec. 22, page 15, line 23, by deleting "
hearing" and inserting "meeting".Amend sec. 24, page 16, by deleting lines 7 and 8 and inserting:
"
build team desiring to submit a proposal for the project may obtain the information necessary to submit a proposal, including, without limitation, the extent to which designs must be completed for both preliminary and final proposals and any other requirements for the design and construction of the project that the department determines to be necessary;".Amend sec. 24, page 16, line 11, by deleting "
bid on" and inserting:"
submit a proposal for".Amend sec. 24, page 16, by deleting lines 16 through 26 and inserting:
"
(g) Notice that a design-build team desiring to submit a proposal for the project must include with its proposal the information used by the department to determine finalists among the design-build teams submitting proposals pursuant to subsection 2 of section 26 of this act and a description of that information;(h) A statement that a design-build team whose prime contractor holds a certificate of eligibility to receive a preference in bidding on public works issued pursuant to NRS 338.147 should submit a copy of the certificate of eligibility with its proposal;
".Amend sec. 26, page 17, line 6, by deleting "
Within" and inserting "At least".Amend sec. 27, page 18, line 2, after "
338.144." by inserting:"
If the cost of construction is a factor in the selection of a design-build team, a design-build team whose prime contractor has submitted with its proposal a certificate of eligibility to receive a preference in bidding on public works issued pursuant to NRS 338.147 shall be deemed to have submitted a better proposal than a competing design-build team whose prime contractor has not submitted such a certificate of eligibility if the amount proposed by the design-build team is not more than 5 percent higher than the amount proposed by the competing design-build team.".Amend sec. 27, page 18, line 3, by deleting "
Within" and inserting "At least".Amend sec. 27, page 18, lines 20 and 21, by deleting:
"
team, the relative weight assigned to each factor" and inserting "team".Amend sec. 36, page 22, line 24, by deleting:
"341.161 and 341.171 are" and inserting "341.171 is".
Amend the bill as a whole by adding new sections designated sections 37 and 38, following sec. 36, to read as follows:
"Sec. 37. 1. The interim advisory committee to study the use of design-build contracting within this state is hereby created. The interim advisory committee consists of 12 members who are appointed as follows:
(a) One member appointed by the Northern Nevada Chapter of the Associated General Contractors.
(b) One member appointed by the Southern Nevada Chapter of the Associated General Contractors.
(c) One member appointed by the Northern Nevada Chapter of the Associated Builders and Contractors.
(d) One member appointed by the Southern Nevada Chapter of the Associated Builders and Contractors.
(e) One member appointed by the Nevada chapter of the American Institute of Architecture.
(f) One member appointed by the American Consulting Engineers Council of Nevada.
(g) One member appointed by the Department of Transportation of the State of Nevada.
(h) One member appointed by the Southern Nevada Water Authority.
(i) One member appointed by the Board of County Commissioners of Clark County.
(j) One member appointed by the governing body of the City of Las Vegas.
(k) One member appointed by the governing body of the City of Henderson.
(l) One member appointed by the governing body of the City of North Las Vegas.
2. Members of the interim advisory committee shall serve without compensation, travel expenses or subsistence allowances, except as they may be provided by the members’ respective agencies and organizations.
3. The interim advisory committee created pursuant to subsection 1 shall:
(a) Examine the methods of design-build contracting that are authorized to be used pursuant to the provisions of this act; and
(b) Submit a report regarding its findings to the 72nd session of the Nevada Legislature, accompanied by any suggestions for legislation that the interim advisory committee determines to be advisable.
Sec. 38. 1. This section becomes effective on October 1, 1999.
2. Sections 1 to 10, inclusive, 13 and 14 to 37, inclusive, of this act become effective on October 1, 1999, and expire by limitation on October 1, 2003.
3. Section 11 of this act becomes effective on October 1, 1999, and expires by limitation on May 1, 2013.
4. Section 13.5 of this act becomes effective at 12:01 a.m. on October 1, 2003.
5. Section 12 of this act becomes effective at 12:01 a.m. on May 1, 2013.".
Amend the text of repealed sections by deleting the text of NRS 341.161.
Amend the title of the bill to read as follows:
"AN ACT relating to public works; authorizing a public body to contract with a design-build team or specialty contractor for the design and construction of a public work in certain circumstances; authorizing a public body to contract with a nonprofit organization for the design and construction of a project to restore, enhance or develop wetlands; authorizing the department of transportation to contract with a design-build team with respect to a project for the design and construction, reconstruction or improvement of highways in certain circumstances; setting forth the method in which proposals for a design-build contract must be solicited; setting forth the method in which a design-build team must be selected; authorizing a public body or the department of transportation to employ an architect or engineer to oversee the construction of a public work or project; creating an interim advisory committee to study the use of design-build contracting; and providing other matters properly relating thereto.".