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

1-1 Section 1. NRS 338.010 is hereby amended to read as follows:

1-2 338.010 As used in this chapter:

1-18 (b) Coordinates all work performed on the entire project;

2-1 (c) Uses his own work force to perform all or a part of the

2-2 construction, repair or reconstruction of the project; and

2-3 (d) Contracts for the services of any subcontractor or independent

2-4 contractor or is responsible for payment to any contracted subcontractors

2-5 or independent contractors.

2-6 5. "Public body" means the state, county, city, town, school district or

2-7 any public agency of this state or its political subdivisions sponsoring or

2-8 financing a public work.

2-9 [5.] 6. "Public work" means any project for the new construction,

2-10 repair or reconstruction of:

2-11 (a) A project financed in whole or in part from public money for:

2-12 (1) Public buildings;

2-13 (2) Jails and prisons;

2-14 (3) Public roads;

2-15 (4) Public highways;

2-16 (5) Public streets and alleys;

2-17 (6) Public utilities which are financed in whole or in part by public

2-18 money;

2-19 (7) Publicly owned water mains and sewers;

2-20 (8) Public parks and playgrounds;

2-21 (9) Public convention facilities which are financed at least in part with

2-22 public funds; and

2-23 (10) All other publicly owned works and property whose cost as a

2-24 whole exceeds $20,000. Each separate unit which is a part of a project is

2-25 included in the cost of the project for the purpose of determining whether a

2-26 project meets this threshold.

2-27 (b) A building for the University and Community College System of

2-28 Nevada of which 25 percent or more of the costs of the building as a whole

2-29 are paid from money appropriated by the state or federal money.

2-30 [6.] 7. "Wages" means:

2-31 (a) The basic hourly rate of pay; and

2-32 (b) The amount of pension, health and welfare, vacation and holiday

2-33 pay, the cost of apprenticeship training or other similar programs or other

2-34 bona fide fringe benefits which are a benefit to the workman.

2-35 [7.] 8. "Workman" means a skilled mechanic, skilled workman,

2-36 semiskilled mechanic, semiskilled workman or unskilled workman. The

2-37 term does not include a "design professional" as that term is defined in

2-38 NRS 338.155.

2-39 Sec. 2. NRS 338.147 is hereby amended to read as follows:

2-40 338.147 1. [A] Except as otherwise provided in NRS 338.143, a

2-42 submits the best bid.

3-1 2. Except as otherwise provided in subsection [4] 8 or limited by

3-2 subsection [5,] 9, for the purposes of this section, a contractor who:

3-3 (a) Has been found to be a responsible and responsive contractor by the

3-4 public body; and

3-5 (b) At the time he submits his bid, provides to the public body [proof of

3-6 the payment of:] a copy of a certificate of eligibility to receive a

3-7 preference in bidding on public works issued to him by the state

3-8 contractors’ board pursuant to subsection 3,

3-9 shall be deemed to have submitted a better bid than a competing

3-10 contractor who has not provided a copy of such a valid certificate of

3-11 eligibility if the amount of his bid is not more than 5 percent higher than

3-12 the amount bid by the competing contractor.

3-13 3. The state contractors’ board shall issue a certificate of eligibility to

3-14 receive a preference in bidding on public works to a general contractor

3-15 who is licensed pursuant to the provisions of chapter 624 of NRS and

3-16 submits to the board an affidavit from a certified public accountant

3-17 setting forth that the general contractor has:

3-18 (a) Paid:

3-19 (1) The sales and use taxes imposed pursuant to chapters 372, 374

3-20 and 377 of NRS on materials used for construction in this state, including,

3-21 without limitation, construction that is undertaken or carried out on land

3-22 within the boundaries of this state that is managed by the Federal

3-23 Government or is on an Indian reservation or Indian colony, of not less

3-24 than $5,000 for each consecutive 12-month period for 60 months

3-25 immediately preceding the submission of [his bid;] the affidavit from the

3-26 certified public accountant;

3-27 (2) The motor vehicle privilege tax imposed pursuant to chapter 371

3-28 of NRS on the vehicles used in the operation of his business in this state of

3-29 not less than $5,000 for each consecutive 12-month period for 60 months

3-30 immediately preceding the submission of [his bid;] the affidavit from the

3-31 certified public accountant; or

3-32 (3) Any combination of such sales and use taxes and motor vehicle

3-33 privilege tax [,

3-34 shall be deemed to have submitted a better bid than a competing contractor

3-35 who has not provided proof of the payment of those taxes if the amount of

3-36 his bid is not more than 5 percent higher than the amount bid by the

3-37 competing contractor.

3-38 3. A contractor who has previously provided the public body awarding

3-39 a contract with the proof of payment required pursuant to subsection 2 may

3-40 update such proof on or before April 1, July 1, September 1 and December

3-41 1 rather than with each bid.

3-42 4.] ; or

4-1 (b) Acquired, by inheritance, gift or transfer through a stock option

4-2 plan for employees, all the assets and liabilities of a viable, operating

4-3 construction firm that possesses a:

4-4 (1) License as a general contractor pursuant to the provisions of

4-5 chapter 624 of NRS; and

4-6 (2) Certificate of eligibility to receive a preference in bidding on

4-7 public works.

4-8 4. For the purposes of complying with the requirements set forth in

4-9 paragraph (a) of subsection 3, a general contractor shall be deemed to

4-10 have paid:

4-11 (a) Sales and use taxes and motor vehicle privilege taxes paid in this

4-12 state by an affiliate or parent company of the contractor, if the affiliate

4-13 or parent company is also a general contractor; and

4-14 (b) Sales and use taxes paid in this state by a joint venture in which

4-15 the contractor is a participant, in proportion to the amount of interest the

4-16 contractor has in the joint venture.

4-17 5. A contractor who has received a certificate of eligibility to receive

4-18 a preference in bidding on public works from the state contractors’ board

4-19 pursuant to subsection 3 shall, at the time for the annual renewal of his

4-20 contractors’ license pursuant to NRS 624.283, submit to the board an

4-21 affidavit from a certified public accountant setting forth that the

4-22 contractor has, during the immediately preceding 12 months, paid the

4-23 taxes required pursuant to paragraph (a) of subsection 3 to maintain his

4-24 eligibility to hold such a certificate.

4-25 6. A contractor who fails to submit an affidavit to the board pursuant

4-26 to subsection 5 ceases to be eligible to receive a preference in bidding on

4-27 public works unless he reapplies for and receives a certificate of

4-28 eligibility pursuant to subsection 3.

4-29 7. If a contractor who applies to the state contractors’ board for a

4-30 certificate of eligibility to receive a preference in bidding on public works

4-31 submits false information to the board regarding the required payment of

4-32 taxes, the contractor is not eligible to receive a preference in bidding on

4-33 public works for a period of 5 years after the date on which the board

4-34 becomes aware of the submission of the false information.

4-35 8. If any federal statute or regulation precludes the granting of federal

4-36 assistance or reduces the amount of that assistance for a particular public

4-37 work because of the provisions of subsection 2, those provisions do not

4-38 apply insofar as their application would preclude or reduce federal

4-39 assistance for that work. The provisions of subsection 2 do not apply to any

4-40 contract for a public work which is expected to cost less than $250,000.

4-41 [5. Except as otherwise provided in subsection 6, if]

4-42 9. If a bid is submitted by two or more contractors as a joint venture or

4-43 by one of them as a joint venturer, the provisions of subsection 2 apply only

5-1 if both or all of the joint venturers separately meet the requirements of that

5-2 subsection.

5-3 [6. Except as otherwise provided in subsection 8, if a bid is submitted

5-4 by a joint venture and one or more of the joint venturers has responsibility

5-5 for the performance of the contract as described in subsection 7, the

5-6 provisions of subsection 2 apply only to those joint venturers who have

5-7 such responsibility.

5-8 7. For the purposes of subsection 6, a joint venturer has responsibility

5-9 for the performance of a contract if he has at least one of the following

5-10 duties or obligations delegated to him in writing in the contract creating the

5-11 joint venture:

5-12 (a) Supplying the labor necessary to perform the contract and paying the

5-13 labor and any related taxes and benefits;

5-14 (b) Supplying the equipment necessary to perform the contract and

5-15 paying any charges related to the equipment;

5-16 (c) Contracting with and making payments to any subcontractors; or

5-17 (d) Performing the recordkeeping for the joint venture and making any

5-18 payments to persons who provide goods or services related to the

5-19 performance of the contract.

5-20 8. The provisions of subsection 6 do not apply to a joint venture which

5-21 is formed for the sole purpose of circumventing any of the requirements of

5-22 this section.]

5-23 10. The state contractors’ board shall adopt regulations and may

5-24 assess reasonable fees relating to the certification of contractors for a

5-25 preference in bidding on public works.

5-26 11. A person or entity who believes that a contractor wrongfully

5-27 holds a certificate of eligibility to receive a preference in bidding on

5-28 public works may challenge the validity of the certificate by filing a

5-29 written objection with the public body to which the contractor has

5-30 submitted a bid or proposal on a contract for the completion of a public

5-31 work. A written objection authorized pursuant to this subsection must:

5-32 (a) Set forth proof or substantiating evidence to support the belief of

5-33 the person or entity that the contractor wrongfully holds a certificate of

5-34 eligibility to receive a preference in bidding on public works; and

5-35 (b) Be filed with the public body at or after the time at which the

5-36 contractor submitted the bid or proposal to the public body and before

5-37 the time at which the public body awards the contract for which the bid

5-38 or proposal was submitted.

5-39 12. If a public body receives a written objection pursuant to

5-40 subsection 11, the public body shall determine whether the objection is

5-41 accompanied by the proof or substantiating evidence required pursuant

5-42 to paragraph (a) of that subsection. If the public body determines that the

5-43 objection is not accompanied by the required proof or substantiating

6-1 evidence, the public body shall dismiss the objection and may proceed

6-2 immediately to award the contract. If the public body determines that the

6-3 objection is accompanied by the required proof or substantiating

6-4 evidence, the public body shall determine whether the contractor

6-5 qualifies for the certificate pursuant to the provisions of this section and

6-6 may proceed to award the contract accordingly.