(REPRINTED WITH ADOPTED AMENDMENTS)

 

Assembly Bill No. 461–Assemblyman Parks

 

March 19, 2001

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Revises provisions relating to qualification of bidders on certain contracts for public works in this state. (BDR 28‑591)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: No.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to public works; authorizing the state public works board to adopt by regulation criteria for the qualification of bidders on a contract for a public work; eliminating the provision providing an exemption from qualifying to bid for a public work of this state; requiring the governing body of a local government to accept a bid on a contract for a public work from certain persons who do not otherwise qualify to bid for public works; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1    Section 1.  NRS 338.1373 is hereby amended to read as follows:

1-2    338.1373  1.  A local government shall award a contract for the

1-3  construction, alteration or repair of a public work pursuant to the

1-4  provisions of:

1-5    (a) NRS [338.1375] 338.1377 to 338.1389, inclusive; or

1-6    (b) NRS 338.143, 338.145 and 338.147.

1-7    2.  The provisions of NRS 338.1375 to 338.1383,inclusive, do not

1-8  apply with respect to contracts for the construction, reconstruction,

1-9  improvement and maintenance of highways that are awarded by the

1-10  department of transportation pursuant to NRS 408.313 to 408.433,

1-11  inclusive.

1-12    Sec. 2.  NRS 338.1375 is hereby amended to read as follows:

1-13  338.1375  1.  [Except as otherwise provided in NRS 338.1383, a public

1-14  body] The state public works board shall not accept a bid on a contract for

1-15  a public work unless the person who submits the bid has qualified pursuant

1-16  to NRS 338.1379 to bid on that contract.

1-17    2.  [The governing body of each local government that sponsors or

1-18  finances a public work may adopt criteria for the qualification of bidders

1-19  on contracts for public works of the local government. If a governing body

2-1  adopts criteria pursuant to this subsection, the governing body shall use the

2-2  criteria to determine the qualification of bidders on contracts for public

2-3  works of the local government.

2-4    3.] The state public works board shall by regulation adopt criteria for

2-5  the qualification of bidders on contracts for public works of this state. The

2-6  criteria adopted by the state public works board pursuant to this

2-7  [subsection] section must be used by the state public works board to

2-8  determine the qualification of bidders on contracts for public works of this

2-9  state.

2-10    3.  The criteria adopted by the state public works board pursuant to

2-11  this section must:

2-12    (a) Be adopted in such a form that the determination of whether an

2-13  applicant is qualified to bid on a contract for a public work does not

2-14  require or allow the exercise of discretion by any one person.

2-15    (b) Include:

2-16      (1) The financial ability of the applicant to perform a contract;

2-17      (2) The principal personnel of the applicant;

2-18      (3) Whether the applicant has breached any contracts with a public

2-19  agency or person in this state or any other state; and

2-20      (4) Whether the applicant has been disqualified from being

2-21  awarded a contract pursuant to NRS 338.017 or 338.1387.

2-22    [4.  Before adopting criteria pursuant to this section, the state public

2-23  works board or a governing body shall hold at least one public hearing to

2-24  solicit and evaluate public opinion regarding the criteria to be adopted.

2-25  Notice of such a hearing must be provided by mail at least 10 days before

2-26  the hearing to:

2-27    (a) Construction trade associations; and

2-28    (b) Labor unions representing trades in the building industry.]

2-29    Sec. 3.  NRS 338.1377 is hereby amended to read as follows:

2-30    338.1377  1.  Except as otherwise provided in NRS 338.1383, the

2-31  governing body of each local government that sponsors or finances a

2-32  public work shall adopt criteria for the qualification of bidders on

2-33  contracts for public works of the local government. The governing body

2-34  shall use the criteria to determine the qualification of bidders on

2-35  contracts for public works of the local government.

2-36    2.  Before adopting criteria pursuant to this section, the governing

2-37  body of a local government shall hold at least one public hearing to

2-38  solicit and evaluate public opinion regarding the criteria to be adopted.

2-39  Notice of such a hearing must be provided by mail at least 10 days before

2-40  the hearing to:

2-41    (a) Construction trade associations in this state; and

2-42    (b) Labor unions representing trades in the building industry in this

2-43  state.

2-44    3.  Thecriteria adopted by [the state public works board or] a

2-45  governing body pursuant to [NRS 338.1375] this section to determine

2-46  whether an applicant is qualified to bid on a contract for a public work:

2-47    [1.] (a) Must be adopted in such a form that the determination of

2-48  whether an applicant is qualified to bid on a contract for a public work does

2-49  not require or allow the exercise of discretion by any one person.

3-1    [2.] (b) May include only:

3-2    [(a)] (1) The financial ability of the applicant to perform [the] a

3-3  contract;

3-4    [(b)] (2) The principal personnel of the applicant;

3-5    [(c)] (3) Whether the applicant has breached any contracts with a public

3-6  agency or person in this state or any other state; and

3-7    [(d)] (4) Whether the applicant has been disqualified from being

3-8  awarded [the] a contract pursuant to NRS 338.017 or 338.1387.

3-9    Sec. 4.  NRS 338.1379 is hereby amended to read as follows:

3-10    338.1379  1.  Except as otherwise provided in NRS 338.1383, a

3-11  person who wishes to qualify as a bidder on a contract for a public work

3-12  must submit an application to the state public works board or the governing

3-13  body.

3-14    2.  Upon receipt of an application pursuant to subsection 1, the state

3-15  public works board or the governing body shall:

3-16    (a) Investigate the applicant to determine whether he is qualified to bid

3-17  on [the] a contract; and

3-18    (b) After conducting the investigation, determine whether the applicant

3-19  is qualified to bid on [the] a contract. The determination must be made

3-20  within 30 days after receipt of the application.

3-21    3.  The state public works board or the governing body shall notify

3-22  each applicant in writing of its determination. If an application is denied,

3-23  the notice must set forth the reasons for the denial and inform the applicant

3-24  of his right to a hearing pursuant to NRS 338.1381.

3-25    4.  The state public works board or the governing body of a local

3-26  government may determine an applicant is qualified to bid:

3-27    (a) On a specific project;

3-28    (b) On more than one project over a period of 12 months; or

3-29    (c) On more than one project over a period of 24 months.

3-30    5.  The state public works board shall not use any criteria other than

3-31  criteria adopted by regulation pursuant to NRS 338.1375 in determining

3-32  whether to approve or deny an application.

3-33    6.  The [state public works board or the] governing body of a local

3-34  government shall not use any criteria other than the criteria described in

3-35  NRS 338.1377 in determining whether to approve or deny an application.

3-36    [5.] 7.  Financial information and other data pertaining to the net worth

3-37  of an applicant which is gathered by or provided to the state public works

3-38  board or a governing body to determine the financial ability of an applicant

3-39  to perform a contract is confidential and not open to public inspection.

3-40    Sec. 5.  NRS 338.1383 is hereby amended to read as follows:

3-41    338.1383  [A public body may] If a local government does not adopt

3-42  criteria for the qualification of bidders on a public work pursuant to NRS

3-43  338.1377, the governing body shall accept a bid on a contract for a public

3-44  work from a person who [does not qualify pursuant to NRS 338.1379 if the

3-45  person] holds:

3-46    1.  An unlimited contractor’s license issued by the state contractors’

3-47  board in the branch of general engineering contracting or general building

3-48  contracting, or in both branches, and:

4-1    (a) At the time he submits his bid, he provides a bid bond equal to 10

4-2  percent of the amount of the bid; and

4-3    (b) At the time the contract is awarded, he provides a performance

4-4  bond, a labor and material bond, and a guaranty bond, each equal to 100

4-5  percent of the amount of the contract; or

4-6    2.  A contractor’s license issued by the state contractors’ board that is

4-7  designated in any classification if he:

4-8    (a) Has, in the 5 years immediately preceding the submission of the bid,

4-9  been found to be a responsible contractor in the classification in which his

4-10  contractor’s license is designated;

4-11    (b) Provides a bid bond, a performance bond, a guaranty bond, and a

4-12  labor and material bond in such amounts as the [state public works board

4-13  or] governing body may require; and

4-14    (c) Employs a person determined by the state contractors’ board to be

4-15  qualified to supervise each classification of construction upon which the

4-16  person submitting the bid is bidding.

4-17    Sec. 6.  This bill becomes effective on July 1, 2001.

 

4-18  H