Senate Bill No. 380–Senator Schneider

 

March 19, 2001

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Referred to Committee on Commerce and Labor

 

SUMMARY—Revises provisions relating to contractors. (BDR 32‑944)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: No.

 

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

 

AN ACT relating to contractors; eliminating the duty of a contractor to require proof of payment of the business tax from a subcontractor with whom he has a contract; eliminating the liability of a contractor for payments for industrial insurance and contributions for benefits for unemployment owed by such a subcontractor; requiring a person who wishes to obtain or renew a contractor’s license to submit to the state contractors’ board proof that he has obtained a business license and made certain payments; 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 364A.340 is hereby amended to read as follows:

1-2    364A.340  A person who:

1-3    1.  Is required to be licensed pursuant to chapter 624 of NRS; and

1-4    2.  Contracts with a subcontractor who is required to be licensed

1-5  pursuant to that chapter and to have a business license and pay the tax

1-6  imposed by this chapter,

1-7  shall require proof that the subcontractor has a business license [and has

1-8  paid the tax imposed by this chapter] before commencing payments to the

1-9  subcontractor. For the purposes of this section, a subcontractor proves that

1-10  he has a business license [and has paid the tax imposed by this chapter by

1-11  presenting a receipt for or other evidence that he made the last quarterly

1-12  payment required pursuant to this chapter.] by submitting a copy of the

1-13  business license to the contractor.

1-14    Sec. 2.  Chapter 624 of NRS is hereby amended by adding thereto a

1-15  new section to read as follows:

1-16    1.  In addition to the requirements set forth in NRS 624.250 and

1-17  624.256, to obtain or renew a contractor’s license, an applicant must

1-18  submit to the board proof that he has:

1-19    (a) Obtained a business license and paid the tax required by chapter

1-20  364A of NRS; and

2-1    (b) Paid to the employment security division of the department of

2-2  employment, training and rehabilitation the contributions for benefits for

2-3  unemployment required by chapter 612 of NRS.

2-4    2.  For the purposes of this section, an applicant proves that he has a

2-5  business license and has paid the tax imposed by chapter 364A of NRS by

2-6  presenting a receipt for or other evidence that he made the last quarterly

2-7  payment required by chapter 364A of NRS.

2-8    Sec. 3. NRS 612.687 and 624.640 are hereby repealed.

2-9    Sec. 4.  This act becomes effective on July 1, 2001.

 

2-10  TEXT OF REPEALED SECTIONS

 

2-11    612.687  Liability of contractor to assure payment of amounts due

2-12   from subcontractors.

2-13    1.  Every contractor, as defined in NRS 624.020, who contracts with a

2-14   subcontractor who is an employer under the provisions of this chapter or

2-15   becomes such an employer before the completion of the contract shall, in

2-16   connection with each such contract:

2-17    (a) Withhold sufficient money on the contract; or

2-18    (b) Require of such subcontractor a good and sufficient surety
bond,

2-19  to guarantee the payment of all contributions, penalties and interest which

2-20   are due or become due pursuant to the provisions of this chapter with

2-21   respect to wages paid for employment on the contract.

2-22    2.  Any contractor who fails to comply with the provisions of

2-23   subsection 1 is directly liable for all contributions, penalties and interest

2-24   due from the subcontractor pursuant to the provisions of this chapter with

2-25   respect to wages paid for employment on the contract, as if the services in

2-26   question had been performed directly for the contractor, and the remedies

2-27   of collection which are available to the administrator under the provisions

2-28   of this chapter against the subcontractor as employer are equally available

2-29   against the contractor.

2-30    624.640  Availability to contractor of names and addresses of

2-31   subcontractors delinquent in payment of contributions for

2-32   unemployment or industrial insurance. The employment security

2-33   division of the department of employment, training and rehabilitation and

2-34   the administrator of the division of industrial relations of the department of

2-35   business and industry shall make available, upon request, to any licensed

2-36   contractor the names and addresses of subcontractors who are delinquent

2-37   in paying the amounts owed by the subcontractor to:

2-38    1.  The division for benefits for unemployment pursuant to chapter 612

2-39   of NRS; and

2-40    2.  A private carrier that provides industrial insurance in this state for

2-41   premiums for industrial insurance.

 

2-42  H