(REPRINTED WITH ADOPTED AMENDMENTS)

 

Senate Bill No. 380–Senator Schneider

 

March 19, 2001

____________

 

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 contributions for benefits for unemployment owed by such a subcontractor; 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.  NRS 624.640 is hereby amended to read as follows:

1-15    624.640  The [employment security division of the department of

1-16  employment, training and rehabilitation and the] administrator of the

1-17  division of industrial relations of the department of business and industry

1-18  shall make available, upon request, to any licensed contractor the names

1-19  and addresses of subcontractors who are delinquent in paying the amounts

1-20  owed by the subcontractor to [:

1-21    1.  The division for benefits for unemployment pursuant to chapter 612

1-22  of NRS; and

2-1    2.  A] a private carrier that provides industrial insurance in this state for

2-2  premiums for industrial insurance.

2-3    Sec. 3. NRS 612.687 is hereby repealed.

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

 

2-5  TEXT OF REPEALED SECTION

 

2-6    612.687  Liability of contractor to assure payment of amounts due

2-7  from subcontractors.

2-8    1.  Every contractor, as defined in NRS 624.020, who contracts with a

2-9  subcontractor who is an employer under the provisions of this chapter or

2-10  becomes such an employer before the completion of the contract shall, in

2-11  connection with each such contract:

2-12    (a) Withhold sufficient money on the contract; or

2-13    (b) Require of such subcontractor a good and sufficient surety

2-14  bond,

2-15  to guarantee the payment of all contributions, penalties and interest which

2-16  are due or become due pursuant to the provisions of this chapter with

2-17  respect to wages paid for employment on the contract.

2-18    2.  Any contractor who fails to comply with the provisions of

2-19  subsection 1 is directly liable for all contributions, penalties and interest

2-20  due from the subcontractor pursuant to the provisions of this chapter with

2-21  respect to wages paid for employment on the contract, as if the services in

2-22  question had been performed directly for the contractor, and the remedies

2-23  of collection which are available to the administrator under the provisions

2-24  of this chapter against the subcontractor as employer are equally available

2-25  against the contractor.

 

2-26  H