(REPRINTED WITH ADOPTED AMENDMENTS)
SECOND REPRINT A.B. 461
Assembly Bill No. 461–Assemblyman Parks
March 19, 2001
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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.
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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).
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, and section 1 of Assembly Bill No. 86 of this [act.]session.
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.
2-1 2. [The governing body of each local government that sponsors or
2-2 finances a public work may adopt criteria for the qualification of bidders
2-3 on contracts for public works of the local government. If a governing body
2-4 adopts criteria pursuant to this subsection, the governing body shall use the
2-5 criteria to determine the qualification of bidders on contracts for public
2-6 works of the local government.
2-7 3.] The state public works board shall by regulation adopt criteria for
2-8 the qualification of bidders on contracts for public works of this state. The
2-9 criteria adopted by the state public works board pursuant to this
2-10 [subsection] section must be used by the state public works board to
2-11 determine the qualification of bidders on contracts for public works of this
2-12 state.
2-13 3. The criteria adopted by the state public works board pursuant to
2-14 this section:
2-15 (a) Must be adopted in such a form that the determination of whether
2-16 an applicant is qualified to bid on a contract for a public work does not
2-17 require or allow the exercise of discretion by any one person.
2-18 (b) May include only:
2-19 (1) The financial ability of the applicant to perform a contract;
2-20 (2) The principal personnel of the applicant;
2-21 (3) Whether the applicant has breached any contracts with a public
2-22 agency or person in this state or any other state;
2-23 (4) Whether the applicant has been disqualified from being
2-24 awarded a contract pursuant to NRS 338.017 or 338.1387; and
2-25 (5) The performance history of the applicant concerning other
2-26 recent, similar contracts, if any, completed by the applicant.
2-27 [4. Before adopting criteria pursuant to this section, the state public
2-28 works board or a governing body shall hold at least one public hearing to
2-29 solicit and evaluate public opinion regarding the criteria to be adopted.
2-30 Notice of such a hearing must be provided by mail at least 10 days before
2-31 the hearing to:
2-32 (a) Construction trade associations; and
2-33 (b) Labor unions representing trades in the building industry.]
2-34 Sec. 3. NRS 338.1377 is hereby amended to read as follows:
2-35 338.1377 1. Except as otherwise provided in NRS 338.1383, the
2-36 governing body of each local government that sponsors or finances a
2-37 public work shall adopt criteria for the qualification of bidders on
2-38 contracts for public works of the local government. The governing body
2-39 shall use the criteria to determine the qualification of bidders on
2-40 contracts for public works of the local government.
2-41 2. Before adopting criteria pursuant to this section, the governing
2-42 body of a local government shall hold at least one public hearing to
2-43 solicit and evaluate public opinion regarding the criteria to be adopted.
2-44 Notice of such a hearing must be provided by mail at least 10 days before
2-45 the hearing to:
2-46 (a) Construction trade associations in this state; and
2-47 (b) Labor unions representing trades in the building industry in this
2-48 state.
3-1 3. Thecriteria adopted by [the state public works board or] a
3-2 governing body pursuant to [NRS 338.1375] this section to determine
3-3 whether an applicant is qualified to bid on a contract for a public work:
3-4 [1.] (a) Must be adopted in such a form that the determination of
3-5 whether an applicant is qualified to bid on a contract for a public work does
3-6 not require or allow the exercise of discretion by any one person.
3-7 [2.] (b) May include only:
3-8 [(a)] (1) The financial ability of the applicant to perform [the] a
3-9 contract;
3-10 [(b)] (2) The principal personnel of the applicant;
3-11 [(c)] (3) Whether the applicant has breached any contracts with a public
3-12 agency or person in this state or any other state; and
3-13 [(d)] (4) Whether the applicant has been disqualified from being
3-14 awarded [the] a contract pursuant to NRS 338.017 or 338.1387.
3-15 Sec. 4. NRS 338.1379 is hereby amended to read as follows:
3-16 338.1379 1. Except as otherwise provided in NRS 338.1383, a
3-17 person who wishes to qualify as a bidder on a contract for a public work
3-18 must submit an application to the state public works board or the governing
3-19 body.
3-20 2. Upon receipt of an application pursuant to subsection 1, the state
3-21 public works board or the governing body shall:
3-22 (a) Investigate the applicant to determine whether he is qualified to bid
3-23 on [the] a contract; and
3-24 (b) After conducting the investigation, determine whether the applicant
3-25 is qualified to bid on [the] a contract. The determination must be made
3-26 within 30 days after receipt of the application.
3-27 3. The state public works board or the governing body shall notify
3-28 each applicant in writing of its determination. If an application is denied,
3-29 the notice must set forth the reasons for the denial and inform the applicant
3-30 of his right to a hearing pursuant to NRS 338.1381.
3-31 4. The state public works board or the governing body of a local
3-32 government may determine an applicant is qualified to bid:
3-33 (a) On a specific project;
3-34 (b) On more than one project over a period of 12 months; or
3-35 (c) On more than one project over a period of 24 months.
3-36 5. The state public works board shall not use any criteria other than
3-37 criteria adopted by regulation pursuant to NRS 338.1375 in determining
3-38 whether to approve or deny an application.
3-39 6. The [state public works board or the] governing body of a local
3-40 government shall not use any criteria other than the criteria described in
3-41 NRS 338.1377 in determining whether to approve or deny an application.
3-42 [5.] 7. Financial information and other data pertaining to the net worth
3-43 of an applicant which is gathered by or provided to the state public works
3-44 board or a governing body to determine the financial ability of an applicant
3-45 to perform a contract is confidential and not open to public inspection.
3-46 Sec. 5. NRS 338.1383 is hereby amended to read as follows:
3-47 338.1383 [A public body may] If a local government does not adopt
3-48 criteria for the qualification of bidders on a public work pursuant to NRS
3-49 338.1377, the governing body may only accept a bid on a contract for a
4-1 public work from a person who [does not qualify pursuant to NRS
4-2 338.1379 if the person] holds:
4-3 1. An unlimited contractor’s license issued by the state contractors’
4-4 board in the branch of general engineering contracting or general building
4-5 contracting, or in both branches, and:
4-6 (a) At the time he submits his bid, he provides a bid bond equal to 10
4-7 percent of the amount of the bid; and
4-8 (b) At the time the contract is awarded, he provides a performance
4-9 bond, a labor and material bond, and a guaranty bond, each equal to 100
4-10 percent of the amount of the contract; or
4-11 2. A contractor’s license issued by the state contractors’ board that is
4-12 designated in any classification if he:
4-13 (a) Has, in the 5 years immediately preceding the submission of the bid,
4-14 been found to be a responsible contractor in the classification in which his
4-15 contractor’s license is designated;
4-16 (b) Provides a bid bond, a performance bond, a guaranty bond, and a
4-17 labor and material bond in such amounts as the [state public works board
4-18 or] governing body may require; and
4-19 (c) Employs a person determined by the state contractors’ board to be
4-20 qualified to supervise each classification of construction upon which the
4-21 person submitting the bid is bidding.
4-22 Sec. 6. This bill becomes effective on July 1, 2001.
4-23 H