Senate Bill No. 94–Senator O’Donnell

 

February 9, 2001

____________

 

Referred to Committee on Government Affairs

 

SUMMARY—Prohibits state contractors’ board from issuing certificate of preference in bidding on public works to persons not licensed as general contractor. (BDR 28‑955)

 

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.

Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to public works; prohibiting the state contractors’ board from issuing a certificate of preference in bidding on public works to persons not licensed as a general contractor; 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 338.010 is hereby amended to read as follows:

1-2    338.010  As used in this chapter:

1-3    1.  “Day labor” means all cases where public bodies, their officers,

1-4  agents or employees, hire, supervise and pay the wages thereof directly to a

1-5  workman or workmen employed by them on public works by the day and

1-6  not under a contract in writing.

1-7    2.  “Design-build contract” means a contract between a public body

1-8  and a design-build team in which the design-build team agrees to design

1-9  and construct a public work.

1-10    3.  “Design-build team” means an entity that consists of:

1-11    (a) At least one person who is licensed as a general engineering

1-12  contractor or a general building contractor pursuant to chapter 624 of NRS;

1-13  and

1-14    (b) For a public work that consists of:

1-15      (1) A building and its site, at least one person who holds a certificate

1-16  of registration to practice architecture pursuant to chapter 623 of NRS.

1-17      (2) Anything other than a building and its site, at least one person

1-18  who holds a certificate of registration to practice architecture pursuant to

1-19  chapter 623 of NRS or is licensed as a professional engineer pursuant to

1-20  chapter 625 of NRS.

1-21    4.  “Design professional” means a person with a professional license or

1-22  certificate issued pursuant to chapter 623, 623A or 625 of NRS.


2-1    5.  “Eligible bidder” means a person who is:

2-2    (a) Found to be a responsible and responsive contractor by a local

2-3  government which requests bids for a public work in accordance with

2-4  paragraph (b) of subsection 1 of NRS 338.1373; or

2-5    (b) Determined by a public body which awarded a contract for a public

2-6  work pursuant to NRS 338.1375 to 338.1389, inclusive, to be qualified to

2-7  bid on that contract pursuant to NRS 338.1379 or was exempt from

2-8  meeting such qualifications pursuant to NRS 338.1383.

2-9    6.  “General contractor” means a person who is licensed to conduct

2-10  business in one or both of the following branches of the contracting

2-11  business:

2-12    (a) General engineering contracting, as described in subsection 2 of

2-13  NRS 624.215.

2-14    (b) General building contracting, as described in subsection 3 of NRS

2-15  624.215.

2-16    7.  “Local government” means every political subdivision or other

2-17  entity which has the right to levy or receive money from ad valorem or

2-18  other taxes or any mandatory assessments, and includes, without limitation,

2-19  counties, cities, towns, boards, school districts and other districts organized

2-20  pursuant to chapters 244A, 309, 318, 379, 474, 541, 543 and 555 of NRS,

2-21  NRS 450.550 to 450.750, inclusive, and any agency or department of a

2-22  county or city which prepares a budget separate from that of the parent

2-23  political subdivision.

2-24    [7.] 8.  “Offense” means failing to:

2-25    (a) Pay the prevailing wage required pursuant to this chapter;

2-26    (b) Pay the contributions for unemployment compensation required

2-27  pursuant to chapter 612 of NRS; or

2-28    (c) Provide and secure compensation for employees required pursuant

2-29  to chapters 616A to 617, inclusive, of NRS.

2-30    [8.] 9.  “Prime contractor” means a person who:

2-31    (a) Contracts to construct an entire project;

2-32    (b) Coordinates all work performed on the entire project;

2-33    (c) Uses his own work force to perform all or a part of the construction,

2-34  repair or reconstruction of the project; and

2-35    (d) Contracts for the services of any subcontractor or independent

2-36  contractor or is responsible for payment to any contracted subcontractors or

2-37  independent contractors.

2-38    [9.] 10.  “Public body” means the state, county, city, town, school

2-39  district or any public agency of this state or its political subdivisions

2-40  sponsoring or financing a public work.

2-41    [10.] 11.  “Public work” means any project for the new construction,

2-42  repair or reconstruction of:

2-43    (a) A project financed in whole or in part from public money for:

2-44      (1) Public buildings;

2-45      (2) Jails and prisons;

2-46      (3) Public roads;

2-47      (4) Public highways;

2-48      (5) Public streets and alleys;


3-1       (6) Public utilities which are financed in whole or in part by public

3-2  money;

3-3       (7) Publicly owned water mains and sewers;

3-4       (8) Public parks and playgrounds;

3-5       (9) Public convention facilities which are financed at least in part

3-6  with public funds; and

3-7       (10) All other publicly owned works and property whose cost as a

3-8  whole exceeds $20,000. Each separate unit that is a part of a project is

3-9  included in the cost of the project to determine whether a project meets that

3-10  threshold.

3-11    (b) A building for the University and Community College System of

3-12  Nevada of which 25 percent or more of the costs of the building as a whole

3-13  are paid from money appropriated by this state or from federal money.

3-14    [11.] 12.  “Specialty contractor” means a contractor whose operations

3-15  as such are the performance of construction work requiring special skill

3-16  and whose principal contracting business involves the use of specialized

3-17  building trades or crafts.

3-18    [12.] 13.  “Stand-alone underground utility project” means an

3-19  underground utility project that is not integrated into a larger project,

3-20  including, without limitation:

3-21    (a) An underground sewer line or an underground pipeline for the

3-22  conveyance of water, including facilities appurtenant thereto; and

3-23    (b) A project for the construction or installation of a storm drain,

3-24  including facilities appurtenant thereto,

3-25  that is not located at the site of a public work for the design and

3-26  construction of which a public body is authorized to contract with a design-

3-27  build team pursuant to subsection 2 of NRS 338.1711.

3-28    [13.] 14.  “Wages” means:

3-29    (a) The basic hourly rate of pay; and

3-30    (b) The amount of pension, health and welfare, vacation and holiday

3-31  pay, the cost of apprenticeship training or other similar programs or other

3-32  bona fide fringe benefits which are a benefit to the workman.

3-33    [14.] 15.  “Workman” means a skilled mechanic, skilled workman,

3-34  semiskilled mechanic, semiskilled workman or unskilled workman. The

3-35  term does not include a design professional.

3-36    Sec. 2.  NRS 338.010 is hereby amended to read as follows:

3-37    338.010  As used in this chapter:

3-38    1.  “Day labor” means all cases where public bodies, their officers,

3-39  agents or employees, hire, supervise and pay the wages thereof directly to a

3-40  workman or workmen employed by them on public works by the day and

3-41  not under a contract in writing.

3-42    2.  “Eligible bidder” means a person who is:

3-43    (a) Found to be a responsible and responsive contractor by a local

3-44  government which requests bids for a public work in accordance with

3-45  paragraph (b) of subsection 1 of NRS 338.1373; or

3-46    (b) Determined by a public body which awarded a contract for a public

3-47  work pursuant to NRS 338.1375 to 338.1389, inclusive, to be qualified to

3-48  bid on that contract pursuant to NRS 338.1379 or was exempt from

3-49  meeting such qualifications pursuant to NRS 338.1383.


4-1    3.  “General contractor” means a person who is licensed to conduct

4-2  business in one or both of the following branches of the contracting

4-3  business:

4-4    (a) General engineering contracting, as described in subsection 2 of

4-5  NRS 624.215.

4-6    (b) General building contracting, as described in subsection 3 of NRS

4-7  624.215.

4-8    4.  “Local government” means every political subdivision or other

4-9  entity which has the right to levy or receive money from ad valorem or

4-10  other taxes or any mandatory assessments, and includes, without limitation,

4-11  counties, cities, towns, boards, school districts and other districts organized

4-12  pursuant to chapters 244A, 309, 318, 379, 474, 541, 543 and 555 of NRS,

4-13  NRS 450.550 to 450.750, inclusive, and any agency or department of a

4-14  county or city which prepares a budget separate from that of the parent

4-15  political subdivision.

4-16    [4.] 5.  “Offense” means failing to:

4-17    (a) Pay the prevailing wage required pursuant to this chapter;

4-18    (b) Pay the contributions for unemployment compensation required

4-19  pursuant to chapter 612 of NRS; or

4-20    (c) Provide and secure compensation for employees required pursuant

4-21  to chapters 616A to 617, inclusive, of NRS.

4-22    [5.] 6.  “Prime contractor” means a person who:

4-23    (a) Contracts to complete an entire project;

4-24    (b) Coordinates all work performed on the entire project;

4-25    (c) Uses his own work force to perform all or a part of the construction,

4-26  repair or reconstruction of the project; and

4-27    (d) Contracts for the services of any subcontractor or independent

4-28  contractor or is responsible for payment to any contracted subcontractors or

4-29  independent contractors.

4-30    [6.] 7.  “Public body” means the state, county, city, town, school

4-31  district or any public agency of this state or its political subdivisions

4-32  sponsoring or financing a public work.

4-33    [7.] 8.  “Public work” means any project for the new construction,

4-34  repair or reconstruction of:

4-35    (a) A project financed in whole or in part from public money for:

4-36      (1) Public buildings;

4-37      (2) Jails and prisons;

4-38      (3) Public roads;

4-39      (4) Public highways;

4-40      (5) Public streets and alleys;

4-41      (6) Public utilities which are financed in whole or in part by public

4-42  money;

4-43      (7) Publicly owned water mains and sewers;

4-44      (8) Public parks and playgrounds;

4-45      (9) Public convention facilities which are financed at least in part

4-46  with public funds; and

4-47      (10) Any other publicly owned works and property whose cost as a

4-48  whole exceeds $20,000. Each separate unit that is a part of a project is


5-1  included in the cost of the project to determine whether a project meets that

5-2  threshold.

5-3    (b) A building for the University and Community College System of

5-4  Nevada of which 25 percent or more of the costs of the building as a whole

5-5  are paid from money appropriated by this state or from federal money.

5-6    [8.] 9.  “Wages” means:

5-7    (a) The basic hourly rate of pay; and

5-8    (b) The amount of pension, health and welfare, vacation and holiday

5-9  pay, the cost of apprenticeship training or other similar programs or other

5-10  bona fide fringe benefits which are a benefit to the workman.

5-11    [9.] 10.  “Workman” means a skilled mechanic, skilled workman,

5-12  semiskilled mechanic, semiskilled workman or unskilled workman. The

5-13  term does not include a “design professional” as that term is defined in

5-14  NRS 338.155.

5-15    Sec. 3.  NRS 338.1389 is hereby amended to read as follows:

5-16    338.1389  1.  Except as otherwise provided in NRS 338.1385 and

5-17  338.1711 to 338.1727, inclusive, a public body shall award a contract for a

5-18  public work to the contractor who submits the best bid.

5-19    2.  Except as otherwise provided in subsection 8 or limited by

5-20  subsection 9, for the purposes of this section, a general contractor who:

5-21    (a) Has been determined by the public body to be a qualified bidder

5-22  pursuant to NRS 338.1379 or is exempt from meeting such requirements

5-23  pursuant to NRS 338.1373 or 338.1383; and

5-24    (b) At the time he submits his bid, provides to the public body a copy of

5-25  a certificate of eligibility to receive a preference in bidding on public works

5-26  issued to him by the state contractors’ board pursuant to subsection 3,

5-27  shall be deemed to have submitted a better bid than a competing contractor

5-28  who has not provided a copy of such a valid certificate of eligibility if the

5-29  amount of his bid is not more than 5 percent higher than the amount bid by

5-30  the competing contractor.

5-31    3.  The state contractors’ board shall issue a certificate of eligibility to

5-32  receive a preference in bidding on public works to a general contractor who

5-33  is licensed pursuant to the provisions of chapter 624 of NRS and submits to

5-34  the board an affidavit from a certified public accountant setting forth that

5-35  the general contractor has:

5-36    (a) Paid:

5-37      (1) The sales and use taxes imposed pursuant to chapters 372, 374

5-38  and 377 of NRS on materials used for construction in this state, including,

5-39  without limitation, construction that is undertaken or carried out on land

5-40  within the boundaries of this state that is managed by the Federal

5-41  Government or is on an Indian reservation or Indian colony, of not less

5-42  than $5,000 for each consecutive 12-month period for 60 months

5-43  immediately preceding the submission of the affidavit from the certified

5-44  public accountant;

5-45      (2) The motor vehicle privilege tax imposed pursuant to chapter 371

5-46  of NRS on the vehicles used in the operation of his business in this state of

5-47  not less than $5,000 for each consecutive 12-month period for 60 months

5-48  immediately preceding the submission of the affidavit from the certified

5-49  public accountant; or


6-1       (3) Any combination of such sales and use taxes and motor vehicle

6-2  privilege tax; or

6-3    (b) Acquired, by inheritance, gift or transfer through a stock option plan

6-4  for employees, all the assets and liabilities of a viable, operating

6-5  construction firm that possesses a:

6-6       (1) License as a general contractor pursuant to the provisions of

6-7  chapter 624 of NRS; and

6-8       (2) Certificate of eligibility to receive a preference in bidding on

6-9  public works.

6-10    4.  For the purposes of complying with the requirements set forth in

6-11  paragraph (a) of subsection 3, a general contractor shall be deemed to have

6-12  paid:

6-13    (a) Sales and use taxes and motor vehicle privilege taxes paid in this

6-14  state by an affiliate or parent company of the contractor, if the affiliate or

6-15  parent company is also a general contractor; and

6-16    (b) Sales and use taxes paid in this state by a joint venture in which the

6-17  contractor is a participant, in proportion to the amount of interest the

6-18  contractor has in the joint venture.

6-19    5.  A general contractor who has received a certificate of eligibility to

6-20  receive a preference in bidding on public works from the state contractors’

6-21  board pursuant to subsection 3 shall, at the time for the annual renewal of

6-22  his contractor’s license pursuant to NRS 624.283, submit to the board an

6-23  affidavit from a certified public accountant setting forth that the contractor

6-24  has, during the immediately preceding 12 months, paid the taxes required

6-25  pursuant to paragraph (a) of subsection 3 to maintain his eligibility to hold

6-26  such a certificate.

6-27    6.  A general contractor who fails to submit an affidavit to the board

6-28  pursuant to subsection 5 ceases to be eligible to receive a preference in

6-29  bidding on public works unless he reapplies for and receives a certificate of

6-30  eligibility pursuant to subsection 3.

6-31    7.  If a general contractor who applies to the state contractors’ board

6-32  for a certificate of eligibility to receive a preference in bidding on public

6-33  works submits false information to the board regarding the required

6-34  payment of taxes, the contractor is not eligible to receive a preference in

6-35  bidding on public works for a period of 5 years after the date on which the

6-36  board becomes aware of the submission of the false information.

6-37    8.  If any federal statute or regulation precludes the granting of federal

6-38  assistance or reduces the amount of that assistance for a particular public

6-39  work because of the provisions of subsection 2, those provisions do not

6-40  apply insofar as their application would preclude or reduce federal

6-41  assistance for that work. The provisions of subsection 2 do not apply to any

6-42  contract for a public work which is expected to cost less than $250,000.

6-43    9.  Except as otherwise provided in subsection 2 of NRS 338.1727, if a

6-44  bid is submitted by two or more contractors as a joint venture or by one of

6-45  them as a joint venturer, the provisions of subsection 2 apply only if both

6-46  or all of the joint venturers separately meet the requirements of that

6-47  subsection.


7-1    10.  The state contractors’ board shall adopt regulations and may assess

7-2  reasonable fees relating to the certification of general contractors for a

7-3  preference in bidding on public works.

7-4    11.  The state contractors’ board shall not issue a certificate of

7-5  eligibility to receive a preference in bidding on public works to a person

7-6  who is not licensed in this state as a general contractor.

7-7    12.  A person or entity who believes that a contractor wrongfully holds

7-8  a certificate of eligibility to receive a preference in bidding on public works

7-9  may challenge the validity of the certificate by filing a written objection

7-10  with the public body to which the contractor has submitted a bid or

7-11  proposal on a contract for the construction of a public work. A written

7-12  objection authorized pursuant to this subsection must:

7-13    (a) Set forth proof or substantiating evidence to support the belief of the

7-14  person or entity that the contractor wrongfully holds a certificate of

7-15  eligibility to receive a preference in bidding on public works; and

7-16    (b) Be filed with the public body at or after the time at which the

7-17  contractor submitted the bid or proposal to the public body and before the

7-18  time at which the public body awards the contract for which the bid or

7-19  proposal was submitted.

7-20    [12.] 13.  If a public body receives a written objection pursuant to

7-21  subsection [11,] 12, the public body shall determine whether the objection

7-22  is accompanied by the proof or substantiating evidence required pursuant

7-23  to paragraph (a) of that subsection. If the public body determines that the

7-24  objection is not accompanied by the required proof or substantiating

7-25  evidence, the public body shall dismiss the objection and may proceed

7-26  immediately to award the contract. If the public body determines that the

7-27  objection is accompanied by the required proof or substantiating evidence,

7-28  the public body shall determine whether the contractor qualifies for the

7-29  certificate pursuant to the provisions of this section and may proceed to

7-30  award the contract accordingly.

7-31    Sec. 4.  NRS 338.141 is hereby amended to read as follows:

7-32    338.141  1.  Except as otherwise provided in subsection 2, each bid

7-33  submitted to any officer, department, board or commission for the

7-34  construction of any public work or improvement must include:

7-35    (a) The name of each subcontractor who will provide labor or a portion

7-36  of the work or improvement to the contractor for which he will be paid an

7-37  amount exceeding 5 percent of the prime contractor’s total bid. Within 2

7-38  hours after the completion of the opening of the bids, the [general]

7-39  contractors who submitted the three lowest bids must submit a list of the

7-40  name of each subcontractor who will provide labor or a portion of the work

7-41  or improvement to the contractor for which he will be paid an amount

7-42  exceeding 1 percent of the prime contractor’s total bid or $50,000,

7-43  whichever is greater, and the number of the license issued to the

7-44  subcontractor pursuant to chapter 624 of NRS. If a [general] contractor

7-45  fails to submit such a list within the required time, his bid shall be deemed

7-46  not responsive.

7-47    (b) A description of the portion of the work or improvement which each

7-48  subcontractor named in the bid will complete.


8-1    2.  The contractor shall list in his bid pursuant to subsection 1 the name

8-2  of a subcontractor for each portion of the project that will be completed by

8-3  a subcontractor.

8-4    3.  A contractor whose bid is accepted shall not substitute any person

8-5  for a subcontractor who is named in the bid, unless:

8-6    (a) The awarding authority objects to the subcontractor, requests in

8-7  writing a change in the subcontractor and pays any increase in costs

8-8  resulting from the change; or

8-9    (b) The substitution is approved by the awarding authority and:

8-10      (1) The subcontractor, after having a reasonable opportunity, fails or

8-11  refuses to execute a written contract with the contractor which was offered

8-12  to the subcontractor with the same terms that all other subcontractors on

8-13  the project were offered;

8-14      (2) The named subcontractor files for bankruptcy or becomes

8-15  insolvent; or

8-16      (3) The named subcontractor fails or refuses to perform his

8-17  subcontract within a reasonable time or is unable to furnish a performance

8-18  bond and payment bond pursuant to NRS 339.025.

8-19    Sec. 5.  NRS 338.147 is hereby amended to read as follows:

8-20    338.147  1.  Except as otherwise provided in NRS 338.143 and

8-21  338.1711 to 338.1727, inclusive, a local government shall award a contract

8-22  for a public work to the contractor who submits the best bid.

8-23    2.  Except as otherwise provided in subsection 8 or limited by

8-24  subsection 9, for the purposes of this section, a general contractor who:

8-25    (a) Has been found to be a responsible and responsive contractor by the

8-26  local government; and

8-27    (b) At the time he submits his bid, provides to the local government a

8-28  copy of a certificate of eligibility to receive a preference in bidding on

8-29  public works issued to him by the state contractors’ board pursuant to

8-30  subsection 3,

8-31  shall be deemed to have submitted a better bid than a competing contractor

8-32  who has not provided a copy of such a valid certificate of eligibility if the

8-33  amount of his bid is not more than 5 percent higher than the amount bid by

8-34  the competing contractor.

8-35    3.  The state contractors’ board shall issue a certificate of eligibility to

8-36  receive a preference in bidding on public works to a general contractor who

8-37  is licensed pursuant to the provisions of chapter 624 of NRS and submits to

8-38  the board an affidavit from a certified public accountant setting forth that

8-39  the general contractor has:

8-40    (a) Paid:

8-41      (1) The sales and use taxes imposed pursuant to chapters 372, 374

8-42  and 377 of NRS on materials used for construction in this state, including,

8-43  without limitation, construction that is undertaken or carried out on land

8-44  within the boundaries of this state that is managed by the Federal

8-45  Government or is on an Indian reservation or Indian colony, of not less

8-46  than $5,000 for each consecutive 12-month period for 60 months

8-47  immediately preceding the submission of the affidavit from the certified

8-48  public accountant;


9-1       (2) The motor vehicle privilege tax imposed pursuant to chapter 371

9-2  of NRS on the vehicles used in the operation of his business in this state of

9-3  not less than $5,000 for each consecutive 12-month period for 60 months

9-4  immediately preceding the submission of the affidavit from the certified

9-5  public accountant; or

9-6       (3) Any combination of such sales and use taxes and motor vehicle

9-7  privilege tax; or

9-8    (b) Acquired, by inheritance, gift or transfer through a stock option plan

9-9  for employees, all the assets and liabilities of a viable, operating

9-10  construction firm that possesses a:

9-11      (1) License as a general contractor pursuant to the provisions of

9-12  chapter 624 of NRS; and

9-13      (2) Certificate of eligibility to receive a preference in bidding on

9-14  public works.

9-15    4.  For the purposes of complying with the requirements set forth in

9-16  paragraph (a) of subsection 3, a general contractor shall be deemed to have

9-17  paid:

9-18    (a) Sales and use taxes and motor vehicle privilege taxes paid in this

9-19  state by an affiliate or parent company of the contractor, if the affiliate or

9-20  parent company is also a general contractor; and

9-21    (b) Sales and use taxes paid in this state by a joint venture in which the

9-22  contractor is a participant, in proportion to the amount of interest the

9-23  contractor has in the joint venture.

9-24    5.  A general contractor who has received a certificate of eligibility to

9-25  receive a preference in bidding on public works from the state contractors’

9-26  board pursuant to subsection 3 shall, at the time for the annual renewal of

9-27  his contractor’s license pursuant to NRS 624.283, submit to the board an

9-28  affidavit from a certified public accountant setting forth that the contractor

9-29  has, during the immediately preceding 12 months, paid the taxes required

9-30  pursuant to paragraph (a) of subsection 3 to maintain his eligibility to hold

9-31  such a certificate.

9-32    6.  A general contractor who fails to submit an affidavit to the board

9-33  pursuant to subsection 5 ceases to be eligible to receive a preference in

9-34  bidding on public works unless he reapplies for and receives a certificate of

9-35  eligibility pursuant to subsection 3.

9-36    7.  If a general contractor who applies to the state contractors’ board

9-37  for a certificate of eligibility to receive a preference in bidding on public

9-38  works submits false information to the board regarding the required

9-39  payment of taxes, the contractor is not eligible to receive a preference in

9-40  bidding on public works for a period of 5 years after the date on which the

9-41  board becomes aware of the submission of the false information.

9-42    8.  If any federal statute or regulation precludes the granting of federal

9-43  assistance or reduces the amount of that assistance for a particular public

9-44  work because of the provisions of subsection 2, those provisions do not

9-45  apply insofar as their application would preclude or reduce federal

9-46  assistance for that work. The provisions of subsection 2 do not apply to any

9-47  contract for a public work which is expected to cost less than $250,000.

9-48    9.  Except as otherwise provided in subsection 2 of NRS 338.1727 and

9-49  subsection 2 of NRS 408.3886 if a bid is submitted by two or more


10-1  contractors as a joint venture or by one of them as a joint venturer, the

10-2  provisions of subsection 2 apply only if both or all of the joint venturers

10-3  separately meet the requirements of that subsection.

10-4    10.  The state contractors’ board shall adopt regulations and may assess

10-5  reasonable fees relating to the certification of general contractors for a

10-6  preference in bidding on public works.

10-7    11.  The state contractors’ board shall not issue a certificate of

10-8  eligibility to receive a preference in bidding on public works to a person

10-9  who is not licensed in this state as a general contractor.

10-10  12.  A person or entity who believes that a contractor wrongfully holds

10-11  a certificate of eligibility to receive a preference in bidding on public works

10-12  may challenge the validity of the certificate by filing a written objection

10-13  with the public body to which the contractor has submitted a bid or

10-14  proposal on a contract for the completion of a public work. A written

10-15  objection authorized pursuant to this subsection must:

10-16  (a) Set forth proof or substantiating evidence to support the belief of the

10-17  person or entity that the contractor wrongfully holds a certificate of

10-18  eligibility to receive a preference in bidding on public works; and

10-19  (b) Be filed with the public body at or after the time at which the

10-20  contractor submitted the bid or proposal to the public body and before the

10-21  time at which the public body awards the contract for which the bid or

10-22  proposal was submitted.

10-23  [12.] 13.  If a public body receives a written objection pursuant to

10-24  subsection [11,] 12, the public body shall determine whether the objection

10-25  is accompanied by the proof or substantiating evidence required pursuant

10-26  to paragraph (a) of that subsection. If the public body determines that the

10-27  objection is not accompanied by the required proof or substantiating

10-28  evidence, the public body shall dismiss the objection and may proceed

10-29  immediately to award the contract. If the public body determines that the

10-30  objection is accompanied by the required proof or substantiating evidence,

10-31  the public body shall determine whether the contractor qualifies for the

10-32  certificate pursuant to the provisions of this section and may proceed to

10-33  award the contract accordingly.

10-34  Sec. 6.  Section 13.5 of chapter 627, Statutes of Nevada 1999, at page

10-35  3479, is hereby amended to read as follows:

10-36  Sec. 13.5.  NRS 338.147 is hereby amended to read as follows:

10-37  338.147  1.  Except as otherwise provided in NRS 338.143 , [and

10-38  sections 2 to 9, inclusive, of this act,] a local government shall award

10-39  a contract for a public work to the contractor who submits the best

10-40  bid.

10-41  2.  Except as otherwise provided in subsection 8 or limited by

10-42  subsection 9, for the purposes of this section, a general contractor

10-43  who:

10-44  (a) Has been found to be a responsible and responsive contractor

10-45  by the local government; and

10-46  (b) At the time he submits his bid, provides to the local

10-47  government a copy of a certificate of eligibility to receive a preference

10-48  in bidding on public works issued to him by the state contractors’

10-49  board pursuant to subsection 3,


11-1  shall be deemed to have submitted a better bid than a competing

11-2  contractor who has not provided a copy of such a valid certificate of

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

11-4  than the amount bid by the competing contractor.

11-5    3.  The state contractors’ board shall issue a certificate of

11-6  eligibility to receive a preference in bidding on public works to a

11-7  general contractor who is licensed pursuant to the provisions of

11-8  chapter 624 of NRS and submits to the board an affidavit from a

11-9  certified public accountant setting forth that the general contractor

11-10  has:

11-11  (a) Paid:

11-12           (1) The sales and use taxes imposed pursuant to chapters 372,

11-13  374 and 377 of NRS on materials used for construction in this state,

11-14  including, without limitation, construction that is undertaken or

11-15  carried out on land within the boundaries of this state that is managed

11-16  by the Federal Government or is on an Indian reservation or Indian

11-17  colony, of not less than $5,000 for each consecutive 12-month period

11-18  for 60 months immediately preceding the submission of the affidavit

11-19  from the certified public accountant;

11-20           (2) The motor vehicle privilege tax imposed pursuant to chapter

11-21  371 of NRS on the vehicles used in the operation of his business in

11-22  this state of not less than $5,000 for each consecutive 12-month

11-23  period for 60 months immediately preceding the submission of the

11-24  affidavit from the certified public accountant; or

11-25           (3) Any combination of such sales and use taxes and motor

11-26  vehicle privilege tax; or

11-27  (b) Acquired, by inheritance, gift or transfer through a stock option

11-28  plan for employees, all the assets and liabilities of a viable, operating

11-29  construction firm that possesses a:

11-30           (1) License as a general contractor pursuant to the provisions of

11-31  chapter 624 of NRS; and

11-32           (2) Certificate of eligibility to receive a preference in bidding on

11-33  public works.

11-34  4.  For the purposes of complying with the requirements set forth

11-35  in paragraph (a) of subsection 3, a general contractor shall be deemed

11-36  to have paid:

11-37  (a) Sales and use taxes and motor vehicle privilege taxes paid in

11-38  this state by an affiliate or parent company of the contractor, if the

11-39  affiliate or parent company is also a general contractor; and

11-40  (b) Sales and use taxes paid in this state by a joint venture in which

11-41  the contractor is a participant, in proportion to the amount of interest

11-42  the contractor has in the joint venture.

11-43  5.  A general contractor who has received a certificate of

11-44  eligibility to receive a preference in bidding on public works from the

11-45  state contractors’ board pursuant to subsection 3 shall, at the time for

11-46  the annual renewal of his contractor’s license pursuant to NRS

11-47  624.283, submit to the board an affidavit from a certified public

11-48  accountant setting forth that the contractor has, during the

11-49  immediately preceding 12 months, paid the taxes required pursuant to


12-1  paragraph (a) of subsection 3 to maintain his eligibility to hold such a

12-2  certificate.

12-3    6.  A general contractor who fails to submit an affidavit to the

12-4  board pursuant to subsection 5 ceases to be eligible to receive a

12-5  preference in bidding on public works unless he reapplies for and

12-6  receives a certificate of eligibility pursuant to subsection 3.

12-7    7.  If a general contractor who applies to the state contractors’

12-8  board for a certificate of eligibility to receive a preference in bidding

12-9  on public works submits false information to the board regarding the

12-10  required payment of taxes, the contractor is not eligible to receive a

12-11  preference in bidding on public works for a period of 5 years after the

12-12  date on which the board becomes aware of the submission of the false

12-13  information.

12-14  8.  If any federal statute or regulation precludes the granting of

12-15  federal assistance or reduces the amount of that assistance for a

12-16  particular public work because of the provisions of subsection 2, those

12-17  provisions do not apply insofar as their application would preclude or

12-18  reduce federal assistance for that work. The provisions of subsection 2

12-19  do not apply to any contract for a public work which is expected to

12-20  cost less than $250,000.

12-21  9.  [Except as otherwise provided in subsection 2 of section 8 of

12-22  this act and subsection 2 of section 27 of this act, if] If a bid is

12-23  submitted by two or more contractors as a joint venture or by one of

12-24  them as a joint venturer, the provisions of subsection 2 apply only if

12-25  both or all of the joint venturers separately meet the requirements of

12-26  that subsection.

12-27  10.  The state contractors’ board shall adopt regulations and may

12-28  assess reasonable fees relating to the certification of general

12-29  contractors for a preference in bidding on public works.

12-30  11.  The state contractors’ board shall not issue a certificate of

12-31  eligibility to receive a preference in bidding on public works to a

12-32  person who is not licensed in this state as a general contractor.

12-33  12.  A person or entity who believes that a contractor wrongfully

12-34  holds a certificate of eligibility to receive a preference in bidding on

12-35  public works may challenge the validity of the certificate by filing a

12-36  written objection with the public body to which the contractor has

12-37  submitted a bid or proposal on a contract for the completion of a

12-38  public work. A written objection authorized pursuant to this

12-39  subsection must:

12-40  (a) Set forth proof or substantiating evidence to support the belief

12-41  of the person or entity that the contractor wrongfully holds a

12-42  certificate of eligibility to receive a preference in bidding on public

12-43  works; and

12-44  (b) Be filed with the public body at or after the time at which the

12-45  contractor submitted the bid or proposal to the public body and before

12-46  the time at which the public body awards the contract for which the

12-47  bid or proposal was submitted.

12-48   13.  If a public body receives a written objection pursuant to

12-49  subsection 12, the public body shall determine whether the objection


13-1  is accompanied by the proof or substantiating evidence required

13-2  pursuant to paragraph (a) of that subsection. If the public body

13-3  determines that the objection is not accompanied by the required

13-4  proof or substantiating evidence, the public body shall dismiss the

13-5  objection and may proceed immediately to award the contract. If the

13-6  public body determines that the objection is accompanied by the

13-7  required proof or substantiating evidence, the public body shall

13-8  determine whether the contractor qualifies for the certificate pursuant

13-9  to the provisions of this section and may proceed to award the

13-10  contract accordingly.

13-11  Sec. 7.  Section 35.4 of chapter 627, Statutes of Nevada 1999, at page

13-12  3491, is hereby amended to read as follows:

13-13           Sec. 35.4.  Assembly Bill No. 298 of this session is hereby

13-14  amended by adding thereto new sections designated sections 19.2

13-15  through 19.6, following sec. 19, to read as follows:

13-16         Sec. 19.2.  Section 8 of this act is hereby amended to read as

13-17  follows:

13-18  Sec. 8.  1.  Except as otherwise provided in subsection 7

13-19  and NRS 338.1906 and 338.1907, this state, or a local

13-20  government that awards a contract for the construction, alteration

13-21  or repair of a public work in accordance with paragraph (a) of

13-22  subsection 1 of section 2 of this act, or a public officer, public

13-23  employee or other person responsible for awarding a contract for

13-24  the construction, alteration or repair of a public work who

13-25  represents the state or the local government, shall not:

13-26  (a) Commence such a project for which the estimated cost

13-27  exceeds $100,000 unless it advertises in a newspaper of general

13-28  circulation in this state for bids for the project; or

13-29  (b) Divide such a project into separate portions to avoid the

13-30  requirements of paragraph (a).

13-31  2.  Except as otherwise provided in subsection 7, a public

13-32  body that maintains a list of properly licensed contractors who

13-33  are interested in receiving offers to bid on public works projects

13-34  for which the estimated cost is more than $25,000 but less than

13-35  $100,000 shall solicit bids from not more than three of the

13-36  contractors on the list for a contract of that value for the

13-37  construction, alteration or repair of a public work. The public

13-38  body shall select contractors from the list in such a manner as to

13-39  afford each contractor an equal opportunity to bid on a public

13-40  works project. A properly licensed contractor must submit a

13-41  written request annually to the public body to remain on the list.

13-42  Offers for bids which are made pursuant to this subsection must

13-43  be sent by certified mail.

13-44  3.  Each advertisement for bids must include a provision that

13-45  sets forth:

13-46  (a) The requirement that a contractor must be qualified

13-47  pursuant to section 5 of this act to bid on the contract or must be

13-48  exempt from meeting such qualifications pursuant to section 6 of

13-49  this act; and


14-1    (b) The period during which an application to qualify as a

14-2  bidder on the contract must be submitted.

14-3    4.  Approved plans and specifications for the bids must be on

14-4  file at a place and time stated in the advertisement for the

14-5  inspection of all persons desiring to bid thereon and for other

14-6  interested persons. Contracts for the project must be awarded on

14-7  the basis of bids received.

14-8    5.  Any bids received in response to an advertisement for bids

14-9  may be rejected if the person responsible for awarding the

14-10  contract determines that:

14-11  (a) The bidder is not a qualified bidder pursuant to section 5

14-12  of this act, unless the bidder is exempt from meeting such

14-13  qualifications pursuant to section 6 of this act;

14-14  (b) The bidder is not responsive;

14-15  (c) The quality of the services, materials, equipment or labor

14-16  offered does not conform to the approved plan or specifications;

14-17  or

14-18  (d) The public interest would be served by such a rejection.

14-19  6.  Before the state or a local government may commence a

14-20  project subject to the provisions of this section, based upon a

14-21  determination that the public interest would be served by

14-22  rejecting any bids received in response to an advertisement for

14-23  bids, it shall prepare and make available for public inspection a

14-24  written statement containing:

14-25  (a) A list of all persons, including supervisors, whom the state

14-26  or the local government intends to assign to the project, together

14-27  with their classifications and an estimate of the direct and

14-28  indirect costs of their labor;

14-29  (b) A list of all equipment that the state or the local

14-30  government intends to use on the project, together with an

14-31  estimate of the number of hours each item of equipment will be

14-32  used and the hourly cost to use each item of equipment;

14-33  (c) An estimate of the cost of administrative support for the

14-34  persons assigned to the project;

14-35  (d) An estimate of the total cost of the project; and

14-36  (e) An estimate of the amount of money the state or the local

14-37  government expects to save by rejecting the bids and performing

14-38  the project itself.

14-39  7.  This section does not apply to:

14-40  (a) Any utility subject to the provisions of chapter 318 or 710

14-41  of NRS;

14-42  (b) Any work of construction, reconstruction, improvement

14-43  and maintenance of highways subject to NRS 408.323 or

14-44  408.327;

14-45  (c) Normal maintenance of the property of a school district;

14-46  or

14-47  (d) The Las Vegas Valley water district created pursuant to

14-48  chapter 167, Statutes of Nevada 1947, the Moapa Valley water

14-49  district created pursuant to chapter 477, Statutes of Nevada 1983


15-1  or the Virgin Valley water district created pursuant to chapter

15-2  100, Statutes of Nevada 1993 . [; or

15-3    (e) The design and construction of a public work for which a

15-4  public body contracts with a design-build team pursuant to

15-5  sections 2 to 9, inclusive, of Senate Bill No. 475 of this session.]

15-6         Sec. 19.4.  Section 8 of this act is hereby amended to read as

15-7  follows:

15-8    Sec. 8.  1.  Except as otherwise provided in subsection 7 ,

15-9  [and NRS 338.1906 and 338.1907,] this state, or a local

15-10  government that awards a contract for the construction, alteration

15-11  or repair of a public work in accordance with paragraph (a) of

15-12  subsection 1 of section 2 of this act, or a public officer, public

15-13  employee or other person responsible for awarding a contract for

15-14  the construction, alteration or repair of a public work who

15-15  represents the state or the local government, shall not:

15-16  (a) Commence such a project for which the estimated cost

15-17  exceeds $100,000 unless it advertises in a newspaper of general

15-18  circulation in this state for bids for the project; or

15-19  (b) Divide such a project into separate portions to avoid the

15-20  requirements of paragraph (a).

15-21  2.  Except as otherwise provided in subsection 7, a public

15-22  body that maintains a list of properly licensed contractors who

15-23  are interested in receiving offers to bid on public works projects

15-24  for which the estimated cost is more than $25,000 but less than

15-25  $100,000 shall solicit bids from not more than three of the

15-26  contractors on the list for a contract of that value for the

15-27  construction, alteration or repair of a public work. The public

15-28  body shall select contractors from the list in such a manner as to

15-29  afford each contractor an equal opportunity to bid on a public

15-30  works project. A properly licensed contractor must submit a

15-31  written request annually to the public body to remain on the list.

15-32  Offers for bids which are made pursuant to this subsection must

15-33  be sent by certified mail.

15-34  3.  Each advertisement for bids must include a provision that

15-35  sets forth:

15-36  (a) The requirement that a contractor must be qualified

15-37  pursuant to section 5 of this act to bid on the contract or must be

15-38  exempt from meeting such qualifications pursuant to section 6 of

15-39  this act; and

15-40  (b) The period during which an application to qualify as a

15-41  bidder on the contract must be submitted.

15-42  4.  Approved plans and specifications for the bids must be on

15-43  file at a place and time stated in the advertisement for the

15-44  inspection of all persons desiring to bid thereon and for other

15-45  interested persons. Contracts for the project must be awarded on

15-46  the basis of bids received.

15-47  5.  Any bids received in response to an advertisement for bids

15-48  may be rejected if the person responsible for awarding the

15-49  contract determines that:


16-1    (a) The bidder is not a qualified bidder pursuant to section 5

16-2  of this act, unless the bidder is exempt from meeting such

16-3  qualifications pursuant to section 6 of this act;

16-4    (b) The bidder is not responsive;

16-5    (c) The quality of the services, materials, equipment or labor

16-6  offered does not conform to the approved plan or specifications;

16-7  or

16-8    (d) The public interest would be served by such a rejection.

16-9    6.  Before the state or a local government may commence a

16-10  project subject to the provisions of this section, based upon a

16-11  determination that the public interest would be served by

16-12  rejecting any bids received in response to an advertisement for

16-13  bids, it shall prepare and make available for public inspection a

16-14  written statement containing:

16-15  (a) A list of all persons, including supervisors, whom the state

16-16  or the local government intends to assign to the project, together

16-17  with their classifications and an estimate of the direct and

16-18  indirect costs of their labor;

16-19  (b) A list of all equipment that the state or the local

16-20  government intends to use on the project, together with an

16-21  estimate of the number of hours each item of equipment will be

16-22  used and the hourly cost to use each item of equipment;

16-23  (c) An estimate of the cost of administrative support for the

16-24  persons assigned to the project;

16-25  (d) An estimate of the total cost of the project; and

16-26  (e) An estimate of the amount of money the state or the local

16-27  government expects to save by rejecting the bids and performing

16-28  the project itself.

16-29  7.  This section does not apply to:

16-30  (a) Any utility subject to the provisions of chapter 318 or 710

16-31  of NRS;

16-32  (b) Any work of construction, reconstruction, improvement

16-33  and maintenance of highways subject to NRS 408.323 or

16-34  408.327;

16-35  (c) Normal maintenance of the property of a school district; or

16-36  (d) The Las Vegas Valley water district created pursuant to

16-37  chapter 167, Statutes of Nevada 1947, the Moapa Valley water

16-38  district created pursuant to chapter 477, Statutes of Nevada 1983

16-39  or the Virgin Valley water district created pursuant to chapter

16-40  100, Statutes of Nevada 1993.

16-41         Sec. 19.6.  Section 11 of this act is hereby amended to read as

16-42  follows:

16-43  Sec. 11.  1.  Except as otherwise provided in section 8 of

16-44  this act , [and sections 2 to 9, inclusive, of Senate Bill No. 475 of

16-45  this session,] a public body shall award a contract for a public

16-46  work to the contractor who submits the best bid.

16-47  2.  Except as otherwise provided in subsection 8 or limited by

16-48  subsection 9, for the purposes of this section, a general contractor

16-49  who:


17-1    (a) Has been determined by the public body to be a qualified

17-2  bidder pursuant to section 5 of this act or is exempt from meeting

17-3  such requirements pursuant to section 6 of this act; and

17-4    (b) At the time he submits his bid, provides to the public body

17-5  a copy of a certificate of eligibility to receive a preference in

17-6  bidding on public works issued to him by the state contractors’

17-7  board pursuant to subsection 3,

17-8  shall be deemed to have submitted a better bid than a competing

17-9  contractor who has not provided a copy of such a valid certificate

17-10  of eligibility if the amount of his bid is not more than 5 percent

17-11  higher than the amount bid by the competing contractor.

17-12  3.  The state contractors’ board shall issue a certificate of

17-13  eligibility to receive a preference in bidding on public works to a

17-14  general contractor who is licensed pursuant to the provisions of

17-15  chapter 624 of NRS and submits to the board an affidavit from a

17-16  certified public accountant setting forth that the general

17-17  contractor has:

17-18  (a) Paid:

17-19     (1) The sales and use taxes imposed pursuant to chapters

17-20  372, 374 and 377 of NRS on materials used for construction in

17-21  this state, including, without limitation, construction that is

17-22  undertaken or carried out on land within the boundaries of this

17-23  state that is managed by the Federal Government or is on an

17-24  Indian reservation or Indian colony, of not less than $5,000 for

17-25  each consecutive 12-month period for 60 months immediately

17-26  preceding the submission of the affidavit from the certified

17-27  public accountant;

17-28     (2) The motor vehicle privilege tax imposed pursuant to

17-29  chapter 371 of NRS on the vehicles used in the operation of his

17-30  business in this state of not less than $5,000 for each consecutive

17-31  12-month period for 60 months immediately preceding the

17-32  submission of the affidavit from the certified public accountant;

17-33  or

17-34     (3) Any combination of such sales and use taxes and motor

17-35  vehicle privilege tax; or

17-36  (b) Acquired, by inheritance, gift or transfer through a stock

17-37  option plan for employees, all the assets and liabilities of a

17-38  viable, operating construction firm that possesses a:

17-39     (1) License as a general contractor pursuant to the

17-40  provisions of chapter 624 of NRS; and

17-41     (2) Certificate of eligibility to receive a preference in

17-42  bidding on public works.

17-43  4.  For the purposes of complying with the requirements set

17-44  forth in paragraph (a) of subsection 3, a general contractor shall

17-45  be deemed to have paid:

17-46  (a) Sales and use taxes and motor vehicle privilege taxes paid

17-47  in this state by an affiliate or parent company of the contractor, if

17-48  the affiliate or parent company is also a general contractor; and


18-1    (b) Sales and use taxes paid in this state by a joint venture in

18-2  which the contractor is a participant, in proportion to the amount

18-3  of interest the contractor has in the joint venture.

18-4    5.  A general contractor who has received a certificate of

18-5  eligibility to receive a preference in bidding on public works

18-6  from the state contractors’ board pursuant to subsection 3 shall,

18-7  at the time for the annual renewal of his contractor’s license

18-8  pursuant to NRS 624.283, submit to the board an affidavit from a

18-9  certified public accountant setting forth that the contractor has,

18-10  during the immediately preceding 12 months, paid the taxes

18-11  required pursuant to paragraph (a) of subsection 3 to maintain his

18-12  eligibility to hold such a certificate.

18-13  6.  A general contractor who fails to submit an affidavit to

18-14  the board pursuant to subsection 5 ceases to be eligible to receive

18-15  a preference in bidding on public works unless he reapplies for

18-16  and receives a certificate of eligibility pursuant to subsection 3.

18-17  7.  If a general contractor who applies to the state

18-18  contractors’ board for a certificate of eligibility to receive a

18-19  preference in bidding on public works submits false information

18-20  to the board regarding the required payment of taxes, the

18-21  contractor is not eligible to receive a preference in bidding on

18-22  public works for a period of 5 years after the date on which the

18-23  board becomes aware of the submission of the false information.

18-24  8.  If any federal statute or regulation precludes the granting

18-25  of federal assistance or reduces the amount of that assistance for

18-26  a particular public work because of the provisions of subsection

18-27  2, those provisions do not apply insofar as their application

18-28  would preclude or reduce federal assistance for that work. The

18-29  provisions of subsection 2 do not apply to any contract for a

18-30  public work which is expected to cost less than $250,000.

18-31  9.  [Except as otherwise provided in subsection 2 of section 8

18-32  of Senate Bill No. 475 of this session, if] If a bid is submitted by

18-33  two or more contractors as a joint venture or by one of them as a

18-34  joint venturer, the provisions of subsection 2 apply only if both

18-35  or all of the joint venturers separately meet the requirements of

18-36  that subsection.

18-37  10.  The state contractors’ board shall adopt regulations and

18-38  may assess reasonable fees relating to the certification of general

18-39  contractors for a preference in bidding on public works.

18-40  11.  The state contractors’ board shall not issue a certificate

18-41  of eligibility to receive a preference in bidding on public works

18-42  to a person who is not licensed in this state as a general

18-43  contractor.

18-44  12.  A person or entity who believes that a contractor

18-45  wrongfully holds a certificate of eligibility to receive a

18-46  preference in bidding on public works may challenge the validity

18-47  of the certificate by filing a written objection with the public

18-48  body to which the contractor has submitted a bid or proposal on a


19-1  contract for the construction of a public work. A written

19-2  objection authorized pursuant to this subsection must:

19-3    (a) Set forth proof or substantiating evidence to support the

19-4  belief of the person or entity that the contractor wrongfully holds

19-5  a certificate of eligibility to receive a preference in bidding on

19-6  public works; and

19-7    (b) Be filed with the public body at or after the time at which

19-8  the contractor submitted the bid or proposal to the public body

19-9  and before the time at which the public body awards the contract

19-10  for which the bid or proposal was submitted.

19-11  13.  If a public body receives a written objection pursuant to

19-12  subsection 12, the public body shall determine whether the

19-13  objection is accompanied by the proof or substantiating evidence

19-14  required pursuant to paragraph (a) of that subsection. If the

19-15  public body determines that the objection is not accompanied by

19-16  the required proof or substantiating evidence, the public body

19-17  shall dismiss the objection and may proceed immediately to

19-18  award the contract. If the public body determines that the

19-19  objection is accompanied by the required proof or substantiating

19-20  evidence, the public body shall determine whether the contractor

19-21  qualifies for the certificate pursuant to the provisions of this

19-22  section and may proceed to award the contract accordingly.

19-23  Sec. 8.  1.  This section and sections 1 and 3 to 7, inclusive, of this act

19-24  become effective on October 1, 2001.

19-25  2.  The amendatory provisions of section 1 of this act expire by

19-26  limitation on October 1, 2003.

19-27  3.  Section 2 of this act becomes effective at 12:01 a.m. on October 1,

19-28  2003.

 

19-29  H