2005 Nevada Revised Statutes - Chapter 624 — Contractors

CHAPTER 624 - CONTRACTORS

GENERAL PROVISIONS

NRS 624.005 Legislativedeclaration.

NRS 624.006 Definitions.

NRS 624.010 Boarddefined.

NRS 624.015 Constructioncontrol defined.

NRS 624.020 Contractorsynonymous with builder; contractor defined.

NRS 624.024 Knowinglydefined.

NRS 624.027 Plannedunit development defined.

NRS 624.029 Workof improvement defined.

NRS 624.031 Applicabilityof chapter: Exemptions.

NRS 624.033 Applicabilityof chapter: Contract pertaining to federal aid.

NRS 624.035 Countyor municipality may impose additional requirements for contractors license.

STATE CONTRACTORS BOARD

NRS 624.040 Creation;number and appointment of members.

NRS 624.050 Qualificationsof members.

NRS 624.070 Certificateof appointment; oath of office.

NRS 624.080 Regularand special meetings; notice.

NRS 624.090 Quorum.

NRS 624.100 Appointmentof committees; adoption of bylaws, rules of procedure and regulations; advisorycommittees.

NRS 624.105 Designationof Ombudsman for Residential Pools and Spas; duties.

NRS 624.110 Offices;maintenance, inspection and confidentiality of records and reports.

NRS 624.112 InvestigationsOffice: Establishment; Units; qualifications of investigators.

NRS 624.115 Employmentof necessary personnel; authority of Board to require criminal investigatorsemployed by Board to perform certain duties and exercise certain powers.

NRS 624.120 Seal.

NRS 624.135 Fiscalyear.

NRS 624.140 Useof money received by Board; delegation of authority concerning disciplinaryaction; deposit of certain money into Construction Education Account.

NRS 624.150 Electionand duties of Treasurer; disposition of money.

NRS 624.160 Administrationof chapter; provision of information to public concerning contractors andcontracting; advisory opinions.

NRS 624.165 Investigationof constructional fraud.

NRS 624.170 Administrationof oaths; taking of testimony and proofs; issuance of subpoenas.

NRS 624.180 Serviceof process.

NRS 624.190 Actionby district court to compel attendance of witness or production of records,books or papers.

NRS 624.200 Depositionof witness.

NRS 624.210 Rightof party to compel attendance of witness or taking of deposition.

NRS 624.212 Violationof chapter: Cease and desist order; injunction; fine.

CLASSIFICATIONS

NRS 624.215 Contractingbusiness.

NRS 624.218 Classificationfor persons who construct or improve community antenna television systems.

NRS 624.220 Contractors.

LICENSES

NRS 624.240 Issuanceof licenses; use of examinations to investigate, classify and qualifyapplicants; additional qualifications for masters license; transitoryprovision.

NRS 624.241 Programfor issuance of license in expedited manner.

NRS 624.245 Prohibitionof certain violators from examination.

NRS 624.250 Applicationfor license: Contents; fee; contributions to Construction Education Account.

NRS 624.253 Applicationfor one or more classifications; additional application and fee for license maybe required.

NRS 624.254 Issuanceor renewal of license under name likely to result in confusion or mistakeprohibited.

NRS 624.2545 Denialof application for issuance or renewal of license: Notice; request for hearing;hearing.

NRS 624.256 Proofof industrial insurance; notification of Fraud Control Unit for IndustrialInsurance of failure to obtain industrial insurance.

NRS 624.260 Applicantor licensee to demonstrate experience, knowledge and financial responsibility;qualifications concerning experience and knowledge; limitations onqualifications of natural person.

NRS 624.262 Financialresponsibility of applicant or licensee: Demonstration required.

NRS 624.263 Financialresponsibility of applicant or licensee: Standards and criteria fordetermination.

NRS 624.264 Financialresponsibility of applicant or licensee: Additional requirements for certainapplicants and licensees engaged in residential construction.

NRS 624.265 Goodcharacter of applicant or licensed contractor and certain associates; groundsfor establishment of lack of good character; background investigation;confidentiality of results of background investigation; fee for processingfingerprints; Board may obtain criminal history.

NRS 624.268 Paymentof child support: Submission of certain information by applicant; grounds fordenial of license; duty of Board. [Effective until the date of the repeal ofthe federal law requiring each state to establish procedures for withholding,suspending and restricting the professional, occupational and recreationallicenses for child support arrearages and for noncompliance with certainprocesses relating to paternity or child support proceedings.]

NRS 624.268 Paymentof child support: Submission of certain information by applicant; grounds fordenial of license; duty of Board. [Effective on the date of the repeal of thefederal law requiring each state to establish procedures for withholding,suspending and restricting the professional, occupational and recreationallicenses for child support arrearages and for noncompliance with certainprocesses relating to paternity or child support proceedings and expires bylimitation 2 years after that date.]

NRS 624.270 Bondand deposit: Requirements; amount; conditions.

NRS 624.273 Bondand deposit: Person benefited; actions; payment by surety without action bycourt; interpleader by surety or Board; preferred claims; prohibited claims.

NRS 624.275 Bondand deposit: Notice of claim paid against contractors bond by surety;cancellation of contractors bond by surety; notification to contractor ofclaim against or cancellation of bond; duties of Board and contractor;revocation or suspension of license.

NRS 624.276 Bondand deposit: Additional requirements for contractors performing work concerningresidential pools or spas.

NRS 624.280 Regulationsconcerning fees; limitation on amount.

NRS 624.281 Feefor license issued in expedited manner; reimbursement to Board for costs andexpenses; regulations concerning application for license issued in expeditedmanner.

NRS 624.282 Inactivestatus of license: Application; effect; duration; regulations.

NRS 624.283 License:Expiration; renewal; financial statement; reinstatement; cancellation.

NRS 624.284 License:Limitation of scope.

NRS 624.285 Terminationof association of natural person qualifying by examination on behalf of anothernatural person or firm: Notice; replacement with qualified natural person.

NRS 624.288 Displayof name and license on motor vehicle.

HEARINGS

NRS 624.291 Hearingrequired if Board suspends or revokes license, has probable cause to believethat person has engaged in unlawful advertising or imposes administrative finefor unlicensed actions; exception.

DISCIPLINARY ACTION

General Provisions

NRS 624.295 Memberof Board authorized to inform Executive Officer of allegation of ground fordisciplinary action; action by Executive Officer.

NRS 624.300 Disciplinaryactions against licensee; private reprimands prohibited; orders imposingdiscipline deemed public records; deposit of fines in Construction EducationAccount.

 

Grounds for Disciplinary Action

NRS 624.301 Abandonmentor failure to complete or prosecute diligently project for construction;willful failure to comply with terms of contract or written warranty.

NRS 624.3011 Disregardof plans, specifications, laws or regulations.

NRS 624.3012 Diversionof money; failure to pay for materials or services; failure to release lienagainst property to be improved.

NRS 624.3013 Failureto keep records or maintain bond; misrepresentation; failure to establishfinancial responsibility or comply with law or regulations of Board.

NRS 624.3014 Misuseof license; evasion of law.

NRS 624.3015 Actingbeyond scope of license; contract with unlicensed contractor; constructing orrepairing mobile home, manufactured home or commercial coach; engaging in workthat requires license while license is inactive.

NRS 624.3016 Fraudulentor deceitful acts; criminal conviction; improper acts involving liens; improperacts involving residential pools and spas; failure to make required disclosure;failure to pay assessment; improper acts involving contract for public work.

NRS 624.30165 Unfairbusiness practices: Misrepresentations involving need for service, replacementparts, equipment or repairs; false or misleading statements.

NRS 624.3017 Substandardworkmanship; incomplete advertising; advertising projects beyond scope oflicense.

NRS 624.30175 Suspensionof license for failure to pay child support or comply with certain subpoenas orwarrants; reinstatement of license. [Expires by limitation 2 years after thedate of the repeal of the federal law requiring each state to establishprocedures for withholding, suspending and restricting the professional,occupational and recreational licenses for child support arrearages and fornoncompliance with certain processes relating to paternity or child supportproceedings.]

NRS 624.3018 Certainpersons prohibited from serving as officer, director, associate or partner oflicensee.

NRS 624.302 Contracting,offering to contract or submitting bid if license is suspended, revoked orinactive; failure to comply with written citation or pay administrative fine;suspension or revocation of license in other state or disciplinary action inother state; failure or refusal to respond to or comply with written requestsof Board.

NRS 624.305 Unlawfuluse, assignment or transfer of license; revocation of license.

 

Proceedings

NRS 624.320 Allegationand proof of license in action on contract.

NRS 624.323 Licenseesubject to disciplinary proceeding must submit financial statement and otherinformation to Board; authority of Board to take certain actions to protectpublic.

NRS 624.327 Certainrecords relating to investigation deemed confidential; certain records relatingto disciplinary action deemed public records.

NRS 624.331 Complaintagainst licensee must be written and filed within certain period.

NRS 624.335 Investigationof complaint by Investigations Office; notification of actions taken;resolution of complaint by Investigations Office; forwarding of complaint toappropriate agency for resolution.

NRS 624.341 Administrativecitation; order to take corrective action.

NRS 624.345 Contestof administrative citation by licensee or applicant: Time limit; effect offailure to contest citation within time limit; extension of time to contestcitation; service of citation.

NRS 624.351 Contestof administrative citation by licensee or applicant: Hearing.

NRS 624.355 Annualreview of complaints by Board; report to Governor and Legislature; duty toinform public.

NRS 624.361 Regulations.

RECOVERY FUND

NRS 624.400 Definitions.

NRS 624.410 Accountdefined.

NRS 624.420 Injuredperson defined.

NRS 624.430 Ownerdefined.

NRS 624.440 Qualifiedservices defined.

NRS 624.450 Residentialcontractor defined.

NRS 624.460 Subsequentowner defined.

NRS 624.470 Establishmentof account; reference to account as Recovery Fund; collection of annualassessment; reduction in amount of assessment under certain circumstances; useof money in account.

NRS 624.480 Limitationon time to file complaint seeking recovery.

NRS 624.490 Applicationto Board for satisfaction of judgment from account.

NRS 624.500 Hearingon complaint; limitation on time for acting on complaint.

NRS 624.510 Eligibilityfor recovery from account; maximum amount of individual recovery from account;Board subrogated to rights of injured person; maximum amount of recovery fromaccount for claims against individual contractor.

NRS 624.520 Contractorto notify owner of rights related to account; written statement; administrativefine for noncompliance.

NRS 624.530 Boardretains authority to pursue disciplinary action against residential contractor.

NRS 624.540 Annualstatement of condition of account to Legislature; employment of necessarypersons; procurement of necessary equipment, supplies and services; interestcredited to account; limit on expenditures.

NRS 624.550 Minimumbalance in account.

NRS 624.560 Regulations.

COMMISSION ON CONSTRUCTION EDUCATION

NRS 624.570 Creation;members; expenses; duties; powers; regulations.

NRS 624.580 ConstructionEducation Account; administration.

DISCLOSURES

NRS 624.600 Requireddisclosures by general building contractor.

NRS 624.605 Availabilityto contractor of names and addresses of subcontractors delinquent in payment ofcontributions for unemployment or industrial insurance.

RIGHTS, DUTIES AND LIABILITIES UNDER CERTAIN AGREEMENTS FORWORKS OF IMPROVEMENT

General Provisions

NRS 624.606 Definitions.

NRS 624.607 Higher-tieredcontractor defined.

NRS 624.608 Lower-tieredsubcontractor defined.

NRS 624.6084 Ownerdefined.

NRS 624.6086 Primecontractor defined.

 

Agreements Between Owner and Prime Contractor

NRS 624.609 Paymentof prime contractor during performance of agreement; grounds and procedure forwithholding amounts from payment; rights and duties after notice ofwithholding, notice of objection or notice of correction.

NRS 624.610 Groundsand procedure for stopping work or terminating agreement; change orders;damages and other remedies; rights of lower-tiered subcontractors; limitationson liability.

NRS 624.620 Paymentof prime contractor after work of improvement is available for use oroccupancy; grounds and procedure for withholding amounts from payment; rightsand duties after notice of withholding or notice of correction; partialpayments.

NRS 624.622 Requirementsconcerning notices; prohibited provisions; exemptions; requests forinformation.

 

Agreements Between Higher-Tiered Contractor and Lower-TieredSubcontractor

NRS 624.624 Paymentof lower-tiered subcontractor; grounds and procedure for withholding amountsfrom payment; rights and duties after notice of withholding, notice ofobjection or notice of correction.

NRS 624.626 Groundsand procedure for stopping work or terminating agreement; change orders;damages and other remedies; rights of lower-tiered subcontractors after workstoppage or termination of agreement; limitations on liability.

NRS 624.628 Requirementsconcerning notices; prohibited provisions; requests for information.

 

Payment Of Interest

NRS 624.630 Accrualof interest on money due; rate of interest.

UNLAWFUL ACTS; PENALTIES

NRS 624.700 Engagingin business or submitting bid without license unlawful; prosecution; damages;bid submitted in violation of section void.

NRS 624.710 Administrativefine for engaging in business or submitting bid without license; finecumulative; action for fine; deposit of fine in Construction Education Account.

NRS 624.720 Unlawfuladvertising; disconnection of telephone number or beeper listed in unlawfuladvertisement.

NRS 624.730 Unlawfulto sit for examination on behalf of another; unlawful to provide any portion ofexamination to another.

NRS 624.740 Unlawfulto act in joint venture or combination without additional license.

NRS 624.750 Otherunlawful acts or omissions; penalties for unlawful acts and omissions.

PROSECUTION OF VIOLATIONS

NRS 624.800 Statuteof limitations for certain violations.

RESIDENTIAL SWIMMING POOLS AND SPAS

NRS 624.900 Definitions.

NRS 624.905 Contractdefined.

NRS 624.910 Contractordefined.

NRS 624.915 Workconcerning a residential pool or spa defined.

NRS 624.920 Licenseor other authorization required to perform work concerning residential pool orspa.

NRS 624.925 Classificationsof licensing.

NRS 624.930 Contractorand subcontractor required to obtain permits and meet certain requirements;certain owner-builders required to submit information regarding bonds andinsurance; supervision and control of work; license or other authorizationrequired to perform certain acts for owner-builder.

NRS 624.935 Dutiesof contractor regarding commencement, performance and completion of work;contract to explain rights of customer; conditions for final payment.

NRS 624.940 Mandatoryelements and required information in contracts; contractor to furnish copy ofsigned documents and receipt for money paid; certain contracts void; contractorto apply for and obtain necessary permits.

NRS 624.945 Standardsfor advertisements; prohibited advertising practices.

NRS 624.950 Limitationson contractors involvement with entities engaged in certain lending andfinancial services.

NRS 624.955 Limitationson certain lending and financial practices.

NRS 624.960 Contractorwho commits certain violations may be required to obtain services ofconstruction control.

NRS 624.965 Groundsfor disciplinary action; unlawful acts; penalties.

_________

GENERAL PROVISIONS

NRS 624.005 Legislativedeclaration. The Legislature declares that theprovisions of this chapter relating to the discipline of licensees are intendedto promote public confidence and trust in the competence and integrity oflicensees and to protect the health, safety and welfare of the public.

(Added to NRS by 1989, 526)

NRS 624.006 Definitions. As used in this chapter, unless the context otherwiserequires, the words and terms defined in NRS624.010 to 624.029, inclusive, havethe meanings ascribed to them in those sections.

(Added to NRS by 2003, 1896, 2139; A 2005, 1223)

NRS 624.010 Boarddefined. Board means the State ContractorsBoard.

(Added to NRS by 2003, 1899, 2140)

NRS 624.015 Constructioncontrol defined. Construction control hasthe meaning ascribed to it in NRS 627.050.

(Added to NRS by 2003, 1897)

NRS 624.020 Contractorsynonymous with builder; contractor defined.

1. Contractor is synonymous with builder.

2. A contractor is any person, except a registeredarchitect or a licensed professional engineer, acting solely in hisprofessional capacity, who in any capacity other than as the employee ofanother with wages as the sole compensation, undertakes to, offers to undertaketo, purports to have the capacity to undertake to, or submits a bid to, or doeshimself or by or through others, construct, alter, repair, add to, subtractfrom, improve, move, wreck or demolish any building, highway, road, railroad, excavationor other structure, project, development or improvement, or to do any partthereof, including the erection of scaffolding or other structures or works inconnection therewith. Evidence of the securing of any permit from agovernmental agency or the employment of any person on a construction projectmust be accepted by the Board or any court of this State as prima facieevidence that the person securing that permit or employing any person on aconstruction project is acting in the capacity of a contractor pursuant to theprovisions of this chapter.

3. A contractor includes a subcontractor or specialtycontractor, but does not include anyone who merely furnishes materials orsupplies without fabricating them into, or consuming them in the performanceof, the work of a contractor.

4. A contractor includes a construction manager whoperforms management and counseling services on a construction project for aprofessional fee.

5. A contractor does not include an owner of a plannedunit development who enters into one or more oral or written agreements withone or more general building contractors or general engineering contractors toconstruct a work of improvement in the planned unit development if the generalbuilding contractors or general engineering contractors are licensed pursuantto this chapter and contract with the owner of the planned unit development toconstruct the entire work of improvement.

[2:Art. II:186:1941; A 1955, 378] + [3:Art.II:186:1941; 1931 NCL 1474.11](NRS A 1975, 831; 1977, 319; 1997, 1037; 2001, 1621; 2003, 1899, 2140; 2005, 1223)

NRS 624.024 Knowinglydefined. Knowingly imports a knowledge thatthe facts exist which constitute the act or omission, and does not require knowledgeof the prohibition against the act or omission. Knowledge of any particularfact may be inferred from the knowledge of such other facts as should put anordinarily prudent person upon inquiry.

(Added to NRS by 2003, 2139)

NRS 624.027 Plannedunit development defined. Planned unit developmenthas the meaning ascribed to it in NRS278A.065.

(Added to NRS by 2005, 1223)

NRS 624.029 Workof improvement defined. Work of improvementhas the meaning ascribed to it in NRS108.22188.

(Added to NRS by 2005, 1223, 1721)

NRS 624.031 Applicabilityof chapter: Exemptions. The provisions of thischapter do not apply to:

1. Work performed exclusively by an authorizedrepresentative of the United States Government, the State of Nevada, or anincorporated city, county, irrigation district, reclamation district, or othermunicipal or political corporation or subdivision of this State.

2. An officer of a court when acting within the scopeof his office.

3. Work performed exclusively by a public utilityoperating pursuant to the regulations of the Public Utilities Commission ofNevada on construction, maintenance and development work incidental to itsbusiness.

4. An owner of property who is building or improving aresidential structure on the property for his own occupancy and not intendedfor sale or lease. The sale or lease, or the offering for sale or lease, of thenewly built structure within 1 year after its completion creates a rebuttablepresumption for the purposes of this section that the building of the structurewas performed with the intent to sell or lease that structure. An owner ofproperty who requests an exemption pursuant to this subsection must apply tothe Board for the exemption. The Board shall adopt regulations setting forththe requirements for granting the exemption.

5. An owner of a complex containing not more than fourcondominiums, townhouses, apartments or cooperative units, the managing officerof the owner or an employee of the managing officer, who performs work torepair or maintain that property the value of which is less than $500,including labor and materials, unless:

(a) A building permit is required to perform the work;

(b) The work is of a type performed by a plumbing,electrical, refrigeration, heating or air-conditioning contractor;

(c) The work is of a type performed by a contractorlicensed in a classification prescribed by the Board that significantly affectsthe health, safety and welfare of members of the general public;

(d) The work is performed as a part of a largerproject:

(1) The value of which is $500 or more; or

(2) For which contracts of less than $500 havebeen awarded to evade the provisions of this chapter; or

(e) The work is performed by a person who is licensedpursuant to this chapter or by an employee of that person.

6. The sale or installation of any finished product,material or article of merchandise which is not fabricated into and does notbecome a permanent fixed part of the structure.

7. The construction, alteration, improvement or repairof personal property.

8. The construction, alteration, improvement or repairfinanced in whole or in part by the Federal Government and conducted within thelimits and boundaries of a site or reservation, the title of which rests in theFederal Government.

9. An owner of property, the primary use of which isas an agricultural or farming enterprise, building or improving a structure onthe property for his use or occupancy and not intended for sale or lease.

[1:Art. III:186:1941; A 1951, 47] + [2:Art.III:186:1941; 1943 NCL 1474.14] + [3:Art. III:186:1941; A 1951, 47] + [4:Art.III:186:1941; A 1947, 307; 1951, 47] + [5:Art. III:186:1941; 1931 NCL 1474.17] + [6:Art. III:186:1941; 1931 NCL 1474.18] + [7:Art. III:186:1941; A1951, 47] + [9:Art. III:186:1941; A 1947, 307; 1943 NCL 1474.21](NRS A 1975,1167; 1987, 1730; 1989, 1629; 1997, 2019, 3162; 2001, 2409)

NRS 624.033 Applicabilityof chapter: Contract pertaining to federal aid. Ifany provision or condition contained in this chapter conflicts with anyprovision of federal law, or a rule or regulation made under federal lawpertaining to federal aid contracts, such provision in conflict with thefederal law, rule or regulation does not apply on federal aid contracts to theextent such conflict exists, but all provisions of this chapter with whichthere is no such conflict do apply to federal aid contracts.

[1:Art. VIII:186:1941; 1931 NCL 1474.33](NRS A1969, 940)(Substituted in revision for NRS 624.340)

NRS 624.035 Countyor municipality may impose additional requirements for contractors license. The provisions of this chapter shall not be construed toprevent the governing body of any county or incorporated city requiring an additionalcontractors license within such political subdivision issued subject to the applicantmeeting such additional standards as are reasonable and necessary for theprotection of the public in the political subdivision.

[5:Art. VIII:186:1941; added 1955, 378](Substitutedin revision for NRS 624.350)

STATE CONTRACTORS BOARD

NRS 624.040 Creation;number and appointment of members. There ishereby created the State Contractors Board to consist of seven members to be appointedby the Governor.

[Part 1:Art. I:186:1941; 1931 NCL 1474.01]

NRS 624.050 Qualificationsof members.

1. Six members of the Board must each:

(a) At the time of appointment, hold an unexpiredlicense to operate as a contractor.

(b) Be a contractor actively engaged in the contractingbusiness and must have been so engaged for not less than 5 years preceding thedate of his appointment.

(c) Have been a citizen and resident of the State ofNevada for at least 5 years next preceding his appointment.

2. One member of the Board must be a representative ofthe general public. This member must not be:

(a) A licensed contractor; or

(b) The spouse or the parent or child, by blood,marriage or adoption, of a licensed contractor.

[2:Art. I:186:1941; 1931 NCL 1474.02](NRS A 1985,47; 2003, 1188)

NRS 624.070 Certificateof appointment; oath of office. Each member ofthe Board shall:

1. Receive a certificate of appointment from theGovernor.

2. Before entering upon the discharge of the duties ofhis office, take the constitutional oath of office.

[4:Art. I:186:1941; 1931 NCL 1474.04]

NRS 624.080 Regularand special meetings; notice.

1. The Board shall hold such meetings as may benecessary for the purpose of transacting its business.

2. Four members of the Board may call a specialmeeting at any time.

3. Due notice of each meeting and of the time andplace thereof shall be given each member in the manner provided by the bylaws.

[Part 5:Art. I:186:1941; 1931 NCL 1474.05]

NRS 624.090 Quorum. Four members of the Board shall constitute a quorum.

[Part 5:Art. I:186:1941; 1931 NCL 1474.05]

NRS 624.100 Appointmentof committees; adoption of bylaws, rules of procedure and regulations; advisorycommittees.

1. The Board may appoint such committees and make suchreasonable bylaws, rules of procedure and regulations as are necessary to carryout the provisions of this chapter.

2. The Board may establish advisory committeescomposed of its members or employees, homeowners, contractors or otherqualified persons to provide assistance with respect to fraud in construction,or in any other area that the Board considers necessary.

3. If the Board establishes an advisory committee, theBoard shall:

(a) Select five members for the committee from a listof volunteers approved by the Board; and

(b) Adopt rules of procedure for informal conferencesof the committee.

4. If the Board establishes an advisory committee, themembers:

(a) Serve at the pleasure of the Board.

(b) Serve without compensation, but must be reimbursedfor travel expenses necessarily incurred in the performance of their duties.The rate must not exceed the rate provided for state officers and employeesgenerally.

(c) Shall provide a written summary report to theBoard, within 15 days after the final informal conference of the committee,that includes recommendations with respect to actions that are necessary toreduce and prevent the occurrence of fraud in construction, or on such otherissues as requested by the Board.

5. The Board is not bound by any recommendation madeby an advisory committee.

[Part 5:Art. I:186:1941; 1931 NCL 1474.05](NRS A1997, 2687)

NRS 624.105 Designationof Ombudsman for Residential Pools and Spas; duties.

1. The Board shall designate an employee as Ombudsmanfor Residential Pools and Spas.

2. The Ombudsman for Residential Pools and Spas shall:

(a) Assist owners of single-family residences andcontractors to understand their rights and responsibilities as set forth in NRS 624.900 to 624.965, inclusive, and any regulationsadopted pursuant thereto.

(b) Notify the Board if it appears that any person hasengaged in any act or practice that constitutes a violation of any of theprovisions of this chapter or any regulations adopted pursuant thereto.

(Added to NRS by 2001, 2980)

NRS 624.110 Offices;maintenance, inspection and confidentiality of records and reports.

1. The Board may maintain offices in as manylocalities in the State as it finds necessary to carry out the provisions ofthis chapter, but it shall maintain one office in which there must be at alltimes open to public inspection a complete record of applications, licensesissued, licenses renewed and all revocations, cancellations and suspensions oflicenses.

2. Except as otherwise required in NRS 624.327, credit reports, references,financial information and data pertaining to a licensees net worth areconfidential and not open to public inspection.

[1:Art. V:186:1941; 1931 NCL 1474.27](NRS A 1963,145; 1967, 1592; 1987, 1138; 2003, 1899, 3422)

NRS 624.112 InvestigationsOffice: Establishment; Units; qualifications of investigators.

1. The Board shall:

(a) Establish an Investigations Office to enforce theprovisions of this chapter. The Investigations Office must include a SpecialInvestigations Unit consisting of criminal investigators and a ComplianceInvestigations Unit consisting of compliance investigators.

(b) Adopt regulations setting forth the qualificationsrequired for investigators employed to carry out this section.

2. As used in this section, criminal investigatormeans a person authorized to perform the duties set forth in subsection 2 of NRS 624.115.

(Added to NRS by 1999, 2950)

NRS 624.115 Employmentof necessary personnel; authority of Board to require criminal investigatorsemployed by Board to perform certain duties and exercise certain powers.

1. The Board may employ attorneys, investigators andother professional consultants and clerical personnel necessary to thedischarge of its duties.

2. The Board may require criminal investigators whoare employed by the Board pursuant to NRS624.112 to:

(a) Conduct a background investigation of:

(1) A licensee or an applicant for acontractors license; or

(2) An applicant for employment with the Board;

(b) Locate and identify persons who:

(1) Engage in the business or act in thecapacity of a contractor within this State in violation of the provisions ofthis chapter;

(2) Submit bids on jobs situated within thisState in violation of the provisions of this chapter; or

(3) Otherwise violate the provisions of thischapter or the regulations adopted pursuant to this chapter;

(c) Investigate any alleged occurrence ofconstructional fraud; and

(d) Issue a misdemeanor citation prepared manually orelectronically pursuant to NRS 171.1773to a person who violates a provision of this chapter that is punishable as amisdemeanor. A criminal investigator may request any constable, sheriff orother peace officer to assist him in the issuance of such a citation.

(Added to NRS by 1963, 145; A 1995, 926; 1999, 2954; 2001, 213; 2003, 1899)

NRS 624.120 Seal. The Board shall adopt a seal for its own use. The sealmust have imprinted thereon the words State Contractors Board, State ofNevada. The Executive Officer has the care and custody of the seal. A personshall not use, copy or reproduce the seal in any way not authorized by thischapter or the regulations of the Board.

[7:Art. I:186:1941; 1931 NCL 1474.07](NRS A 1985,1052; 1999, 2178)

NRS 624.135 Fiscalyear. The Board shall operate on the basis ofa fiscal year commencing on July 1 and terminating on June 30.

(Added to NRS by 1963, 145)

NRS 624.140 Useof money received by Board; delegation of authority concerning disciplinaryaction; deposit of certain money into Construction Education Account.

1. Except as otherwise provided in subsection 3, ifmoney becomes available from the operations of this chapter and payments madefor licenses, the Board may pay from that money:

(a) The expenses of the operations of this chapter,including the maintenance of offices.

(b) The salary of the Executive Officer who must benamed by the Board.

(c) A salary to each member of the Board of not morethan $80 per day, as fixed by the Board, while engaged in the business of theBoard.

(d) A per diem allowance and travel expenses for eachmember and employee of the Board, at a rate fixed by the Board, while engagedin the business of the Board. The rate must not exceed the rate provided forstate officers and employees generally.

2. The Board may delegate to a hearing officer orpanel its authority to take any disciplinary action pursuant to this chapter,impose and collect fines therefor and deposit the money therefrom in banks,credit unions or savings and loan associations in this State.

3. Except as otherwise provided in NRS 624.520, if a hearing officer or panelis not authorized to take disciplinary action pursuant to subsection 2, theBoard shall deposit any money collected from the imposition of fines with theState Treasurer for credit to the Construction Education Account createdpursuant to NRS 624.580.

[2:Art. V:186:1941; 1931 NCL 1474.28](NRS A 1963,146; 1975, 302; 1981, 1991; 1985, 1052; 1989, 1694; 1993, 883; 1999, 1528; 2001, 2411)

NRS 624.150 Electionand duties of Treasurer; disposition of money.

1. The Board shall elect one of its members asTreasurer.

2. All money received by the Board shall be turnedover to the Treasurer who shall keep books of account and who is authorized todeposit the money in banks, credit unions or savings and loan associations inthe State of Nevada, and to expend money necessary for the operation of theBoard under the terms of this chapter when the expenses have been approved bythe Board.

3. All balances at any time in the possession of theTreasurer shall be subject to legislative disposition.

[3:Art. V:186:1941; 1931 NCL 1474.29](NRS A 1963,146; 1999, 1529)

NRS 624.160 Administrationof chapter; provision of information to public concerning contractors andcontracting; advisory opinions.

1. The Board is vested with all of the functions andduties relating to the administration of this chapter.

2. The Board shall:

(a) Carry out a program of education for customers ofcontractors.

(b) Maintain and make known a telephone number for thepublic to obtain information about self-protection from fraud in constructionand other information concerning contractors and contracting.

3. The Board may provide advisory opinions and takeother actions that are necessary for the effective administration of thischapter and the regulations of the Board.

[Part 5:Art. I:186:1941; 1931 NCL 1474.05](NRS A1997, 2687)

NRS 624.165 Investigationof constructional fraud.

1. The Board shall:

(a) Designate one or more of its employees for theinvestigation of constructional fraud;

(b) Cooperate with other local, state or federalinvestigative and law enforcement agencies, and the Attorney General;

(c) Assist the Attorney General or any official of aninvestigative or a law enforcement agency of this State, any other state or theFederal Government who requests assistance in investigating any act ofconstructional fraud; and

(d) Furnish to those officials any informationconcerning its investigation or report on any act of constructional fraud.

2. The Board may obtain records of a law enforcementagency or any other agency that maintains records of criminal history,including, without limitation, records of:

(a) Arrests;

(b) Guilty pleas;

(c) Sentencing;

(d) Probation;

(e) Parole;

(f) Bail;

(g) Complaints; and

(h) Final dispositions,

for theinvestigation of constructional fraud.

3. For the purposes of this section, constructionalfraud occurs if a person engaged in construction knowingly:

(a) Misapplies money under the circumstances describedin NRS 205.310;

(b) Obtains money, property or labor by false pretenseas described in NRS 205.380;

(c) Receives payments and fails to state his own truename, or states a false name, contractors license number, address or telephonenumber of the person offering a service;

(d) Diverts money or commits any act of theft, forgery,fraud or embezzlement, in connection with a construction project, that violatesa criminal statute of this State;

(e) Acts as a contractor without:

(1) Possessing a contractors license issuedpursuant to this chapter; or

(2) Possessing any other license required bythis State or a political subdivision of this State;

(f) In any report relating to a contract for a publicwork, submits false information concerning a payroll to a public officer oragency; or

(g) Otherwise fails to disclose a material fact.

(Added to NRS by 1997, 2686; A 1999, 2954; 2003, 1900, 2140)

NRS 624.170 Administrationof oaths; taking of testimony and proofs; issuance of subpoenas.

1. Any member of the Board or the Executive Officermay take testimony and proofs concerning all matters within the jurisdiction ofthe Board.

2. The Board or any member thereof, or the ExecutiveOfficer, may:

(a) Administer oaths.

(b) Certify to all official acts.

(c) Issue subpoenas for the attendance of witnesses andthe production of records, books and papers in connection with any hearing,investigation or other proceeding of the Board.

[Part 6:Art. I:186:1941; A 1943, 83; 1955, 378](NRSA 1985, 1052; 1987, 1046; 1999, 2955)

NRS 624.180 Serviceof process.

1. Any process issued by the Board or the ExecutiveOfficer may extend to all parts of the State and may be served by aninvestigator for the Board or any person authorized to serve process of courtsof record.

2. The Board may compensate any person serving theprocess who is not an investigator for the Board, but not more than the feesprescribed by law for similar service. The fees must be paid in the same manneras other expenses of the Board are paid.

[Part 6:Art. I:186:1941; A 1943, 83; 1955, 378](NRSA 1985, 1055; 1987, 1046)

NRS 624.190 Actionby district court to compel attendance of witness or production of records,books or papers.

1. The district court in and for the county in whichany hearing, investigation or other proceeding is held by the Board may compelthe attendance of witnesses, the giving of testimony and the production ofrecords, books and papers as required by any subpoena issued by the Board orthe Executive Officer.

2. In case of the refusal of any witness to attend ortestify or produce any items required by the subpoena, the Board may report tothe district court in and for the county in which the hearing, investigation orother proceeding will be held by petition, setting forth that:

(a) Due notice has been given of the time and place ofattendance of the witness or the production of the records, books or papers;

(b) The witness has been subpoenaed in the mannerprescribed in this chapter; and

(c) The witness has failed and refused to attend orproduce the items required by subpoena before the Board in the cause orproceeding named in the subpoena, or has refused to answer questions propoundedto him in the course of the hearing, investigation or other proceeding,

and ask anorder of the court compelling the witness to attend and testify or produce therecords, books or papers before the Board.

3. The court, upon petition of the Board, shall enteran order directing the witness to appear before the court at a time and placeto be fixed by the court in the order, the time to be not more than 10 daysafter the date of the order, and then and there show cause why he has notattended or testified or produced the records, books or papers before theBoard. A certified copy of the order must be served upon the witness.

4. If it appears to the court that the subpoena wasregularly issued by the Board or the Executive Officer, the court shallthereupon enter an order that the witness appear before the Board at the timeand place fixed in the order and testify or produce the required records, booksor papers. Upon failure to obey the order, the witness must be dealt with asfor contempt of court.

[Part 6:Art. I:186:1941; A 1943, 83; 1955, 378](NRSA 1987, 1046; 1999,2955)

NRS 624.200 Depositionof witness. The Board may in any hearing, investigationor other proceeding before it cause the depositions of witnesses residingwithin or without the State to be taken in the manner prescribed by the NevadaRules of Civil Procedure for like depositions in civil actions in the districtcourts of this State, and to that end may compel the attendance of witnessesand the production of records, books and papers.

[Part 6:Art. I:186:1941; A 1943, 83; 1955, 378](NRSA 1987, 1047; 1999,2956)

NRS 624.210 Rightof party to compel attendance of witness or taking of deposition. Any party to any hearing, investigation or otherproceeding before the Board has the right to the attendance of witnesses in hisbehalf at the hearing, investigation or other proceeding or upon deposition asset forth in this chapter upon making a request therefor to the Board anddesignating the person sought to be subpoenaed.

[Part 6:Art. I:186:1941; A 1943, 83; 1955, 378](NRSA 1987, 1047; 1999,2956)

NRS 624.212 Violationof chapter: Cease and desist order; injunction; fine.

1. The Executive Officer, on behalf of the Board,shall issue an order to cease and desist to any person:

(a) Acting as a contractor, including, withoutlimitation, commencing work as a contractor; or

(b) Submitting a bid on a job situated in this State,

without anactive license of the proper classification issued pursuant to this chapter.The order must be served personally or by certified mail and is effective uponreceipt.

2. If it appears that any person has engaged in actsor practices which constitute a violation of this chapter or the violation ofan order issued pursuant to subsection 1, the Board may request the AttorneyGeneral, the district attorney of the county in which the alleged violationoccurred or the district attorney of any other county in which that personmaintains a place of business or resides to apply on behalf of the Board to thedistrict court for an injunction restraining him from acting in violation ofthis chapter. Upon a proper showing, a temporary restraining order, apreliminary injunction or a permanent injunction may be granted. The Board asplaintiff in the action is not required to prove any irreparable injury.

3. In seeking injunctive relief against any person foran alleged violation of NRS 624.700, itis sufficient to allege that the person did, upon a certain day and in acertain county of this State:

(a) Act as a contractor, including, without limitation,commence work as a contractor; or

(b) Submit a bid on a job situated in this State,

withouthaving an active license of the proper classification issued pursuant to thischapter, without alleging any further or more particular facts concerning thematter.

4. The issuance of a restraining order or aninjunction does not relieve the person against whom the restraining order orinjunction is issued from criminal prosecution for practicing without alicense.

5. If the court finds that a person willfully violatedan order issued pursuant to subsection 1, it shall impose a fine of not lessthan $250 nor more than $1,000 for each violation of the order.

(Added to NRS by 1975, 1160; A 1983, 311, 509; 1987,1047, 1138; 1995, 926; 2003,2141)

CLASSIFICATIONS

NRS 624.215 Contractingbusiness.

1. For the purpose of classification, the contractingbusiness includes the following branches:

(a) General engineering contracting.

(b) General building contracting.

(c) Specialty contracting.

Generalengineering contracting and general building contracting are mutually exclusivebranches.

2. A general engineering contractor is a contractorwhose principal contracting business is in connection with fixed works,including irrigation, drainage, water supply, water power, flood control,harbors, railroads, highways, tunnels, airports and airways, sewers and sewagedisposal systems, bridges, inland waterways, pipelines for transmission ofpetroleum and other liquid or gaseous substances, refineries, chemical plantsand industrial plants requiring a specialized engineering knowledge and skill,power plants, piers and foundations and structures or work incidental thereto.

3. A general building contractor is a contractor whoseprincipal contracting business is in connection with the construction orremodeling of buildings or structures for the support, shelter and enclosure ofpersons, animals, chattels or movable property of any kind, requiring in theirconstruction the use of more than two unrelated building trades or crafts, uponwhich he is a prime contractor and where the construction or remodeling of abuilding is the primary purpose. Unless he holds the appropriate specialtylicense, a general building contractor may only contract to perform specialtycontracting if he is a prime contractor on a project. A general buildingcontractor shall not perform specialty contracting in plumbing, electrical,refrigeration and air-conditioning or fire protection without a license for thespecialty. A person who exclusively constructs or repairs mobile homes,manufactured homes or commercial coaches is not a general building contractor.

4. A specialty contractor is a contractor whoseoperations as such are the performance of construction work requiring specialskill and whose principal contracting business involves the use of specializedbuilding trades or crafts.

5. This section does not prevent the Board fromestablishing, broadening, limiting or otherwise effectuating classifications ina manner consistent with established custom, usage and procedure found in thebuilding trades. The Board is specifically prohibited from establishing classificationsin such a manner as to determine or limit craft jurisdictions.

(Added to NRS by 1967, 1594; A 1971, 600; 1983, 311;1997, 212, 2687)

NRS 624.218 Classificationfor persons who construct or improve community antenna television systems.

1. The Board shall adopt by regulation aclassification of licensing for persons who construct or improve communityantenna television systems. Except as otherwise provided in subsection 2, aperson who engages in such construction, alteration or improvement must belicensed in this classification and may not be required to be licensed in anyother classification.

2. The licensing requirements adopted pursuant tosubsection 1 do not apply to a person who is engaged solely in the alterationor repair of antennae used by a community antenna television system.

(Added to NRS by 1989, 1997)

NRS 624.220 Contractors.

1. The Board shall adopt regulations necessary toeffect the classification and subclassification of contractors in a mannerconsistent with established usage and procedure as found in the constructionbusiness, and may limit the field and scope of the operations of a licensedcontractor to those in which he is classified and qualified to engage asdefined by NRS 624.215 and theregulations of the Board.

2. The Board shall limit the field and scope of theoperations of a licensed contractor by establishing a monetary limit on acontractors license, and the limit must be the maximum contract a licensedcontractor may undertake on one or more construction contracts on a singleconstruction site or subdivision site for a single client. The Board may takeany other action designed to limit the field and scope of the operations of acontractor as may be necessary to protect the health, safety and generalwelfare of the public. The limit must be determined after consideration of thefactors set forth in NRS 624.260 to 624.265, inclusive.

3. A licensed contractor may request that the Boardincrease the monetary limit on his license, either on a permanent basis or fora single construction project. A request submitted to the Board pursuant tothis subsection must be in writing on a form prescribed by the Board andaccompanied by such supporting documentation as the Board may require. If arequest submitted pursuant to this section is for a single constructionproject, the request must be submitted to the Board at least 2 working days beforethe date on which the licensed contractor intends to submit his bid for theproject.

4. Nothing contained in this section prohibits aspecialty contractor from taking and executing a contract involving the use oftwo or more crafts or trades, if the performance of the work in the crafts ortrades, other than in which he is licensed, is incidental and supplemental tothe performance of work in the craft for which the specialty contractor islicensed.

[1:Art. IIIA:186:1941; added 1945, 296; 1943 NCL 1474.21a](NRS A 1960, 353; 1963, 694; 1967, 1592; 1971, 180; 1979, 321; 1999, 2178, 2956)

LICENSES

NRS 624.240 Issuanceof licenses; use of examinations to investigate, classify and qualifyapplicants; additional qualifications for masters license; transitoryprovision.

1. Under reasonable regulations adopted by the Board,the Board may investigate, classify and qualify applicants for contractorslicenses by written or oral examinations, or both, and may issue contractorslicenses to qualified applicants. The examinations may, in the discretion ofthe Board, be given in specific classifications only.

2. If a natural person passes the technicalexamination given by the Board on or after July 1, 1985, to qualify him for aclassification established pursuant to this chapter, demonstrates to the Boardthe degree of experience and knowledge required in the regulations of theBoard, and is granted a license, he is qualified for a masters license, ifissued by any political subdivision, in the classification for which the examinationwas given, if the examination required him to demonstrate his knowledge and abilityto:

(a) Utilize and understand;

(b) Direct and supervise work in compliance with; and

(c) Perform and apply any calculations required toensure that work performed is in compliance with,

theapplicable codes, standards and regulations.

3. If a natural person qualified for a license beforeJuly 1, 1985, in accordance with NRS 624.260in a trade for which a masters license is required by any politicalsubdivision, and if the license is active on or after July 1, 1985, and if theperson so qualified wishes to obtain a masters license, he must pass eitherthe appropriate examination given by the Board on or after July 1, 1985, inaccordance with NRS 624.260 and theregulations of the Board, or the examination given by the political subdivisionin the trade for which a masters license is required.

[1:Art. IV:186:1941; A 1945, 296; 1953, 521; 1955,378](NRS A 1985, 1056)

NRS 624.241 Programfor issuance of license in expedited manner. TheBoard may establish a program for the issuance of a license in an expeditedmanner. The Board shall not allow the operation of the program for the issuanceof a license in an expedited manner to affect adversely the amount of time theBoard requires to issue any other contractors license.

(Added to NRS by 1999, 2177)

NRS 624.245 Prohibitionof certain violators from examination. TheBoard may prohibit a person who has been convicted of violating NRS 624.700 or 624.740 from taking a written or oralexamination for a contractors license for a period of not more than 6 monthsfrom the date of his conviction.

(Added to NRS by 1975, 1159; A 1995, 927)

NRS 624.250 Applicationfor license: Contents; fee; contributions to Construction Education Account.

1. To obtain or renew a license, an applicant mustsubmit to the Board an application in writing containing:

(a) The statement that the applicant desires theissuance of a license under the terms of this chapter.

(b) The street address or other physical location ofthe applicants place of business.

(c) The name of a person physically located in thisState for service of process on the applicant.

(d) The street address or other physical location inthis State and, if different, the mailing address, for service of process onthe applicant.

(e) The names and physical and mailing addresses of anyowners, partners, officers, directors, members and managerial personnel of theapplicant.

(f) Any information requested by the Board to ascertainthe background, financial responsibility, experience, knowledge andqualifications of the applicant.

(g) All information required to complete theapplication.

2. The application must be:

(a) Made on a form prescribed by the Board inaccordance with the rules and regulations adopted by the Board.

(b) Accompanied by the fee fixed by this chapter.

3. The Board shall include on an application form forthe issuance or renewal of a license, a method for allowing an applicant tomake a monetary contribution to the Construction Education Account createdpursuant to NRS 624.580. The applicationform must state in a clear and conspicuous manner that a contribution to theConstruction Education Account is voluntary and is in addition to any feesrequired for licensure. If the Board receives a contribution from an applicant,the Board shall deposit the contribution with the State Treasurer for credit tothe Construction Education Account.

[2:Art. IV:186:1941; 1931 NCL 1474.23](NRS A 1997,2113; 1999, 2957;2001, 2411; 2005, 2705, 2807)

NRS 624.253 Applicationfor one or more classifications; additional application and fee for license maybe required.

1. A licensee may make application for classificationand be classified in one or more classifications if the licensee meets thequalifications prescribed by the Board for such additional classification orclassifications.

2. An additional application and license fee may becharged for qualifying or classifying a licensee in additional classifications.

(Added to NRS by 1967, 1594)

NRS 624.254 Issuanceor renewal of license under name likely to result in confusion or mistakeprohibited. No license may be issued orrenewed by the Board under a name which:

1. Is the same as the name of another licensee;

2. So resembles the name of another licensee that theBoard determines that it is likely to result in confusion or mistake; or

3. The Board determines is likely to mislead thegeneral public.

(Added to NRS by 1987, 1138; A 1993, 926)

NRS 624.2545 Denialof application for issuance or renewal of license: Notice; request for hearing;hearing.

1. If the Board denies an application for issuance orrenewal of a license pursuant to this chapter, the Board shall send bycertified mail, return receipt requested, written notice of the denial to themost current address of the applicant set forth in the records of the Board.

2. A notice of denial must include, withoutlimitation, a statement which explains that the applicant has a right to ahearing before the Board if the applicant submits a written request for such ahearing to the Board within 60 days after the notice of denial is sent to theaddress of the applicant pursuant to this section.

3. If an applicant who receives a notice of denialpursuant to this section desires to have the denial reviewed at a hearingbefore the Board, he must submit a written request for a hearing before theBoard concerning the denial within 60 days after the notice of denial is sentto his address. If an applicant does not submit notice in accordance with thissubsection, the applicants right to a hearing shall be deemed to be waived.

4. Except as otherwise provided in this subsection, ifthe Board receives notice from an applicant pursuant to subsection 3, the Boardshall hold a hearing on the decision to deny the application of the applicantwithin 90 days after the date the Board receives notice pursuant to subsection3. If an applicant requests a continuance and the Board grants the continuance,the hearing required pursuant to this subsection may be held more than 90 daysafter the date the Board receives notice pursuant to subsection 3.

(Added to NRS by 2001, 2409)

NRS 624.256 Proofof industrial insurance; notification of Fraud Control Unit for IndustrialInsurance of failure to obtain industrial insurance.

1. Before granting an original or renewal of acontractors license to any applicant, the Board shall require that theapplicant submit to the Board:

(a) Proof of industrial insurance and insurance foroccupational diseases which covers his employees;

(b) A copy of his certificate of qualification as aself-insured employer which was issued by the Commissioner of Insurance;

(c) If the applicant is a member of an association ofself-insured public or private employers, a copy of the certificate issued tothe association by the Commissioner of Insurance; or

(d) An affidavit signed by the applicant affirming thathe is not subject to the provisions of chapters616A to 616D, inclusive, or chapter 617 of NRS because:

(1) He has no employees;

(2) He is not or does not intend to be asubcontractor for a principal contractor; and

(3) He has not or does not intend to submit abid on a job for a principal contractor or subcontractor.

2. The Board shall notify the Fraud Control Unit forIndustrial Insurance established pursuant to NRS228.420 whenever the Board learns that an applicant or holder of acontractors license has engaged in business as or acted in the capacity of acontractor within this State without having obtained industrial insurance orinsurance for occupational diseases in violation of the provisions of chapters 616A to 617,inclusive, of NRS.

(Added to NRS by 1983, 541; A 1987, 1138; 1993, 781;1995, 1879; 1999, 237)

NRS 624.260 Applicantor licensee to demonstrate experience, knowledge and financial responsibility;qualifications concerning experience and knowledge; limitations onqualifications of natural person.

1. The Boardshall require an applicant or licensee to show such a degree of experience,financial responsibility and such general knowledge of the building, safety,health and lien laws of the State of Nevada and the administrative principlesof the contracting business as the Board deems necessary for the safety andprotection of the public.

2. Anapplicant or licensee may qualify in regard to his experience and knowledge inthe following ways:

(a) If anatural person, he may qualify by personal appearance or by the appearance ofhis responsible managing employee.

(b) If acopartnership, a corporation or any other combination or organization, it mayqualify by the appearance of the responsible managing officer or member of thepersonnel of the applicant firm.

If an applicant or licensee intendsto qualify pursuant to this subsection by the appearance of another person, theapplicant or licensee shall submit to the Board such information as the Boarddetermines is necessary to demonstrate the duties and responsibilities of theother person so appearing with respect to the supervision and control of theoperations of the applicant or licensee relating to construction.

3. The naturalperson qualifying on behalf of another natural person or firm under paragraphs(a) and (b) of subsection 2 must prove that he is a bona fide member oremployee of that person or firm and when his principal or employer is activelyengaged as a contractor shall exercise authority in connection with hisprincipal or employers contracting business in the following manner:

(a) To maketechnical and administrative decisions;

(b) To hire,superintend, promote, transfer, lay off, discipline or discharge otheremployees and to direct them, either by himself or through others, oreffectively to recommend such action on behalf of his principal or employer;and

(c) To devotehimself solely to his principal or employers business and not to take anyother employment which would conflict with his duties under this subsection.

4. A naturalperson may not qualify on behalf of another for more than one active licenseunless:

(a) One personowns at least 25 percent of each licensee for which he qualifies; or

(b) Onelicensee owns at least 25 percent of the other licensee.

5. Except asotherwise provided in subsection 6, in addition to the other requirements setforth in this section, each applicant for licensure as a contractor must havehad, within the 10 years immediately preceding the filing of his applicationfor licensure, at least 4 years of experience as a journeyman, foreman,supervising employee or contractor in the specific classification in which heis applying for licensure. Training received in a program offered at anaccredited college or university or an equivalent program accepted by the Boardmay be used to satisfy not more than 3 years of experience required pursuant tothis subsection.

6. If theapplicant who is applying for licensure has previously qualified for acontractors license in the same classification in which he is applying forlicensure, the experience required pursuant to subsection 5 need not be accruedwithin the 10 years immediately preceding the application.

7. As used inthis section, journeyman means a person who:

(a) Is fullyqualified to perform, without supervision, work in the classification in whichhe is applying for licensure; or

(b) Hassuccessfully completed:

(1) Aprogram of apprenticeship for the classification in which he is applying forlicensure that has been approved by the State Apprenticeship Council; or

(2) An equivalent program accepted by the Board.

[3:Art. IV:186:1941; A 1951, 47](NRS A 1967, 1593;1985, 1056; 1999,2179)

NRS 624.262 Financialresponsibility of applicant or licensee: Demonstration required. A licensee or an applicant for a contractors license mustprove his financial responsibility by demonstrating that his past and currentfinancial solvency and expectations for financial solvency in the future aresuch as to provide the Board with a reasonable expectation that the licensee orapplicant can successfully do business as a contractor without jeopardy to thepublic health, safety and welfare.

(Added to NRS by 1999, 2953)

NRS 624.263 Financialresponsibility of applicant or licensee: Standards and criteria fordetermination.

1. The financial responsibility of a licensee or anapplicant for a contractors license must be established independently of andwithout reliance on any assets or guarantees of any owners or managing officersof the licensee or applicant, but the financial responsibility of any owners ormanaging officers of the licensee or applicant may be inquired into andconsidered as a criterion in determining the financial responsibility of thelicensee or applicant.

2. The financial responsibility of an applicant for acontractors license or of a licensed contractor must be determined by usingthe following standards and criteria in connection with each applicant orcontractor and each associate or partner thereof:

(a) Net worth.

(b) Amount of liquid assets.

(c) Prior payment and credit records.

(d) Previous business experience.

(e) Prior and pending lawsuits.

(f) Prior and pending liens.

(g) Adverse judgments.

(h) Conviction of a felony or crime involving moralturpitude.

(i) Prior suspension or revocation of a contractorslicense in Nevada or elsewhere.

(j) An adjudication of bankruptcy or any otherproceeding under the federal bankruptcy laws, including:

(1) A composition, arrangement or reorganizationproceeding;

(2) The appointment of a receiver of theproperty of the applicant or contractor or any officer, director, associate orpartner thereof under the laws of this State or the United States; or

(3) The making of an assignment for the benefitof creditors.

(k) Form of business organization, corporate orotherwise.

(l) Information obtained from confidential financialreferences and credit reports.

(m) Reputation for honesty and integrity of theapplicant or contractor or any officer, director, associate or partner thereof.

3. A licensed contractor shall, as soon as it isreasonably practicable, notify the Board in writing upon the filing of apetition or application relating to the contractor that initiates anyproceeding, appointment or assignment set forth in paragraph (j) of subsection2. The written notice must be accompanied by:

(a) A copy of the petition or application filed withthe court; and

(b) A copy of any order of the court which is relevantto the financial responsibility of the contractor, including any orderappointing a trustee, receiver or assignee.

4. Before issuing a license to an applicant who willengage in residential construction or renewing the license of a contractor whoengages in residential construction, the Board may require the applicant orlicensee to establish his financial responsibility by submitting to the Board:

(a) A financial statement that is:

(1) Prepared by a certified public accountant;or

(2) Submitted on a form or in a formatprescribed by the Board together with an affidavit which verifies the accuracyof the financial statement; and

(b) A statement setting forth the number of buildingpermits issued to and construction projects completed by the licensee duringthe immediately preceding year and any other information required by the Board.The statement submitted pursuant to this paragraph must be provided on a formapproved by the Board.

5. In addition to the requirements set forth insubsection 4, the Board may require a licensee to establish his financialresponsibility at any time.

6. An applicant for an initial contractors license ora licensee applying for the renewal of a contractors license has the burden ofdemonstrating his financial responsibility to the Board, if the Board requestshim to do so.

(Added to NRS by 1967, 1594; A 1969, 939; 1993, 926; 1999, 2958; 2001, 2412; 2005, 1200)

NRS 624.264 Financialresponsibility of applicant or licensee: Additional requirements for certainapplicants and licensees engaged in residential construction.

1. In addition to any other requirements set forth inthis chapter, if an applicant will engage in residential construction and theapplicant or the natural person qualifying on behalf of the applicant pursuantto NRS 624.260 has not held acontractors license issued pursuant to this chapter within the 2 yearsimmediately preceding the date that the application is submitted to the Board,the Board shall require the applicant to establish his financial responsibilityby submitting to the Board:

(a) A financial statement that is:

(1) Prepared by an independent certified publicaccountant; or

(2) Submitted on a form or in a formatprescribed by the Board together with an affidavit which verifies the accuracyof the financial statement; and

(b) Any other information required by the Board.

2. Before the Board may issue a contractors licenseto the applicant, the Board must determine whether, based on the financialinformation concerning the applicant, it would be in the public interest to doany or all of the following:

(a) Require the applicant to obtain the services of aconstruction control with respect to any money that the applicant requires apurchaser of a new residence to pay in advance to make upgrades to the newresidence. If the Board imposes such a requirement, the applicant may not:

(1) Be related to the construction control or toan employee or agent of the construction control; or

(2) Hold, directly or indirectly, a financialinterest in the business of the construction control.

(b) Establish an aggregate monetary limit on thecontractors license, which must be the maximum combined monetary limit on allcontracts that the applicant may undertake or perform as a licensed contractorat any one time, regardless of the number of contracts, construction sites,subdivision sites or clients. If the Board establishes such a limit, the Board:

(1) Shall determine the period that the limit isin effect; and

(2) During that period, may increase or decreasethe limit as the Board deems appropriate.

3. If the Board issues a contractors license to anapplicant described in subsection 1, for the first 2 years after the issuanceof the license, the licensee must submit to the Board, with each applicationfor renewal of the license:

(a) A financial statement that is:

(1) Prepared by an independent certified publicaccountant; or

(2) Submitted on a form or in a formatprescribed by the Board together with an affidavit which verifies the accuracyof the financial statement; and

(b) A statement setting forth the number of buildingpermits issued to and construction projects completed by the licensee duringthe immediately preceding year and any other information required by the Board.The statement submitted pursuant to this paragraph must be provided on a formapproved by the Board.

4. Before the Board may renew the contractors licenseof the licensee, the Board must determine whether, based on the financialinformation concerning the licensee, it would be in the public interest to doany or all of the following:

(a) Require the licensee to obtain the services of aconstruction control with respect to any money that the licensee requires apurchaser of a new residence to pay in advance to make upgrades to the newresidence. If the Board imposes such a requirement, the licensee may not:

(1) Be related to the construction control or toan employee or agent of the construction control; or

(2) Hold, directly or indirectly, a financialinterest in the business of the construction control.

(b) Establish an aggregate monetary limit on the contractorslicense, which must be the maximum combined monetary limit on all contractsthat the licensee may undertake or perform as a licensed contractor at any onetime, regardless of the number of contracts, construction sites, subdivisionsites or clients. If the Board establishes such a limit, the Board:

(1) Shall determine the period that the limit isin effect; and

(2) During that period, may increase or decreasethe limit as the Board deems appropriate.

(Added to NRS by 2003, 1897; A 2005, 1202)

NRS 624.265 Good character of applicant orlicensed contractor and certain associates; grounds for establishment of lackof good character; background investigation; confidentiality of results ofbackground investigation; fee for processing fingerprints; Board may obtaincriminal history.

1. An applicant for a contractors license or alicensed contractor and each officer, director, partner and associate thereofmust possess good character. Lack of character may be established by showingthat the applicant or licensed contractor, or any officer, director, partner orassociate thereof, has:

(a) Committed any act which would be grounds for thedenial, suspension or revocation of a contractors license;

(b) A bad reputation for honesty and integrity;

(c) Entered a plea of nolo contendere or guilty to,been found guilty of or been convicted, in this State or any otherjurisdiction, of a crime arising out of, in connection with or related to theactivities of such person in such a manner as to demonstrate his unfitness toact as a contractor, and the time for appeal has elapsed or the judgment ofconviction has been affirmed on appeal; or

(d) Had a license revoked or suspended for reasons thatwould preclude the granting or renewal of a license for which the applicationhas been made.

2. Upon the request of the Board, an applicant for acontractors license, and any officer, director, partner or associate of theapplicant, must submit to the Board completed fingerprint cards and a formauthorizing an investigation of the applicants background and the submissionof his fingerprints to the Central Repository for Nevada Records of CriminalHistory and the Federal Bureau of Investigation. The fingerprint cards andauthorization form submitted must be those that are provided to the applicantby the Board. The applicants fingerprints may be taken by an agent of theBoard or an agency of law enforcement.

3. The Board shall keep the results of theinvestigation confidential and not subject to inspection by the general public.

4. The Board shall establish by regulation the fee forprocessing the fingerprints to be paid by the applicant. The fee must not exceedthe sum of the amounts charged by the Central Repository for Nevada Records ofCriminal History and the Federal Bureau of Investigation for processing thefingerprints.

5. The Board may obtain records of a law enforcementagency or any other agency that maintains records of criminal history,including, without limitation, records of:

(a) Arrests;

(b) Guilty pleas;

(c) Sentencing;

(d) Probation;

(e) Parole;

(f) Bail;

(g) Complaints; and

(h) Final dispositions,

for theinvestigation of a licensee or an applicant for a contractors license.

(Added to NRS by 1967, 1595; A 1995, 2476; 1999, 2180, 2959; 2003, 1497; 2005, 1203)

NRS 624.268 Paymentof child support: Submission of certain information by applicant; grounds fordenial of license; duty of Board. [Effective until the date of the repeal ofthe federal law requiring each state to establish procedures for withholding,suspending and restricting the professional, occupational and recreationallicenses for child support arrearages and for noncompliance with certainprocesses relating to paternity or child support proceedings.]

1. Inaddition to any other requirements set forth in this chapter:

(a) Anatural person who applies for the issuance of a contractors license shallinclude the social security number of the applicant in the applicationsubmitted to the Board.

(b) A natural person who applies for the issuance orrenewal of a contractors license shall submit to the Board the statementprescribed by the Division of Welfare and Supportive Services of the Departmentof Health and Human Services pursuant to NRS425.520. The statement must be completed and signed by the applicant.

2. The Board shall include the statement requiredpursuant to subsection 1 in:

(a) The application or any other forms that must besubmitted for the issuance or renewal of the license; or

(b) A separate form prescribed by the Board.

3. A contractors license may not be issued or renewedby the Board if the applicant is a natural person who:

(a) Fails to submit the statement required pursuant tosubsection 1; or

(b) Indicates on the statement submitted pursuant tosubsection 1 that he is subject to a court order for the support of a child andis not in compliance with the order or a plan approved by the district attorneyor other public agency enforcing the order for the repayment of the amount owedpursuant to the order.

4. If an applicant indicates on the statementsubmitted pursuant to subsection 1 that he is subject to a court order for thesupport of a child and is not in compliance with the order or a plan approvedby the district attorney or other public agency enforcing the order for therepayment of the amount owed pursuant to the order, the Board shall advise theapplicant to contact the district attorney or other public agency enforcing theorder to determine the actions that the applicant may take to satisfy thearrearage.

(Added to NRS by 1997, 2112; A 2005, 2706, 2807)

NRS 624.268 Payment of child support: Submissionof certain information by applicant; grounds for denial of license; duty ofBoard. [Effective on the date of the repeal of the federal law requiring eachstate to establish procedures for withholding, suspending and restricting theprofessional, occupational and recreational licenses for child supportarrearages and for noncompliance with certain processes relating to paternityor child support proceedings and expires by limitation 2 years after thatdate.]

1. In addition toany other requirements set forth in this chapter, a natural person who appliesfor the issuance or renewal of a contractors license shall submit to the Boardthe statement prescribed by the Division of Welfare and Supportive Services ofthe Department of Health and Human Services pursuant to NRS 425.520. The statement must becompleted and signed by the applicant.

2. The Board shall include the statement requiredpursuant to subsection 1 in:

(a) The application or any other forms that must besubmitted for the issuance or renewal of the license; or

(b) A separate form prescribed by the Board.

3. A contractors license may not be issued or renewedby the Board if the applicant is a natural person who:

(a) Fails to submit the statement required pursuant tosubsection 1; or

(b) Indicates on the statement submitted pursuant tosubsection 1 that he is subject to a court order for the support of a child andis not in compliance with the order or a plan approved by the district attorneyor other public agency enforcing the order for the repayment of the amount owedpursuant to the order.

4. If an applicant indicates on the statementsubmitted pursuant to subsection 1 that he is subject to a court order for thesupport of a child and is not in compliance with the order or a plan approvedby the district attorney or other public agency enforcing the order for therepayment of the amount owed pursuant to the order, the Board shall advise theapplicant to contact the district attorney or other public agency enforcing theorder to determine the actions that the applicant may take to satisfy thearrearage.

(Added to NRS by 1997, 2112; A 2005, 2706, 2807, effective onthe date of the repeal of the federal law requiring each state to establishprocedures for withholding, suspending and restricting the professional,occupational and recreational licenses for child support arrearages and fornoncompliance with certain processes relating to paternity or child supportproceedings)

NRS 624.270 Bondand deposit: Requirements; amount; conditions.

1. Before issuing a contractors license to anyapplicant, the Board shall require that the applicant:

(a) File with the Board a surety bond in a formacceptable to the Board executed by the contractor as principal with acorporation authorized to transact surety business in the State of Nevada assurety; or

(b) In lieu of such a bond, establish with the Board acash deposit as provided in this section.

2. Before granting renewal of a contractors licenseto any applicant, the Board shall require that the applicant file with theBoard satisfactory evidence that his surety bond or cash deposit is in fullforce, unless the applicant has been relieved of the requirement as provided inthis section.

3. Failure of an applicant or licensee to file ormaintain in full force the required bond or to establish the required cashdeposit constitutes cause for the Board to deny, revoke, suspend or refuse torenew a license.

4. Except as otherwise provided in subsection 6, theamount of each bond or cash deposit required by this section must be fixed bythe Board with reference to the contractors financial and professionalresponsibility and the magnitude of his operations, but must be not less than$1,000 or more than $500,000. The bond must be continuous in form and must beconditioned that the total aggregate liability of the surety for all claims islimited to the face amount of the bond irrespective of the number of years thebond is in force. A bond required by this section must be provided by a personwhose long-term debt obligations are rated A or better by a nationallyrecognized rating agency. The Board may increase or reduce the amount of anybond or cash deposit if evidence supporting such a change in the amount is presentedto the Board at the time application is made for renewal of a license or at anyhearing conducted pursuant to NRS 624.2545or 624.291. Unless released earlierpursuant to subsection 5, any cash deposit may be withdrawn 2 years aftertermination of the license in connection with which it was established, or 2years after completion of all work authorized by the Board after termination ofthe license, whichever occurs later, if there is no outstanding claim againstit.

5. After a licensee has acted in the capacity of alicensed contractor in the State of Nevada for not less than 5 consecutiveyears, the Board may relieve the licensee of the requirement of filing a bondor establishing a cash deposit if evidence supporting such relief is presentedto the Board. The Board may at any time thereafter require the licensee to filea new bond or establish a new cash deposit as provided in subsection 4:

(a) If evidence is presented to the Board supportingthis requirement;

(b) Pursuant to subsection 6, after notification of afinal written decision by the Labor Commissioner; or

(c) Pursuant to subsection 7.

If alicensee is relieved of the requirement of establishing a cash deposit, the depositmay be withdrawn 2 years after such relief is granted, if there is nooutstanding claim against it.

6. If the Board is notified by the Labor Commissionerpursuant to NRS 607.165 or otherwisereceives notification that three substantiated claims for wages have been filedagainst a contractor within a 2-year period, the Board shall require the contractorto file a bond or establish a cash deposit in an amount fixed by the Board. Thecontractor shall maintain the bond or cash deposit for the period required bythe Board.

7. If a contractor who performs work concerning aresidential pool or spa:

(a) Is determined by the Board to have violated one ormore of the provisions of NRS 624.301 to624.305, inclusive;

(b) Enters into a contract on or after July 1, 2001,that is later found to be void and unenforceable against the owner pursuant tosubsection 5 of NRS 624.940 or pursuantto any regulation adopted by the Board with respect to contracts for workconcerning a residential pool or spa; or

(c) Has five valid complaints filed against him withthe Board within any 15-day period,

the Boardmay require the contractor to comply with the provisions of subsection 8.

8. If the Board requires a contractor described insubsection 7 to comply with the provisions of this subsection, the contractorshall, before commencing work concerning a residential pool or spa, obtain:

(a) Except as otherwise provided in this subsection, aperformance bond in an amount equal to not less than 50 percent of the amountof the contract, conditioned upon the faithful performance of the contract inaccordance with the plans, specifications and conditions set forth in thecontract. The performance bond must be solely for the protection of the ownerof the property to be improved.

(b) Except as otherwise provided in this subsection, apayment bond in an amount equal to not less than 50 percent of the amount ofthe contract. The payment bond must be solely for the protection of personssupplying labor or materials to the contractor, or to any of hissubcontractors, in carrying out the provisions of the contract.

A bondrequired pursuant to this subsection must be provided by a person whoselong-term debt obligations are rated A or better by a nationally recognizedrating agency. The contractor shall maintain the bond for the period requiredby the Board. The contractor shall furnish to the building department of thecity or county, as applicable, in which the work will be carried out, a copy ofany bond. In lieu of a performance or payment bond, the contractor may obtainan equivalent form of security approved by the Board.

9. As used in this section, substantiated claim forwages has the meaning ascribed to it in NRS607.165.

[6:Art. IV:186:1941; added 1951, 365](NRS A 1959,868; 1963, 695; 1965, 349; 1971, 180; 1975, 1160; 1983, 318; 1985, 1057; 1987,1139; 1997, 1513, 2688; 1999,596; 2001, 2413,2981; 2003, 2142; 2005, 2383)

NRS 624.273 Bondand deposit: Person benefited; actions; payment by surety without action bycourt; interpleader by surety or Board; preferred claims; prohibited claims.

1. Each bond or deposit required by NRS 624.270 must be in favor of the Stateof Nevada for the benefit of any person who:

(a) As owner of the property to be improved enteredinto a construction contract with the contractor and is damaged by failure ofthe contractor to perform the contract or to remove liens filed against theproperty;

(b) As an employee of the contractor performed labor onor about the site of the construction covered by the contract;

(c) As a supplier or materialman furnished materials orequipment for the construction covered by the contract; or

(d) Is injured by any unlawful act or omission of thecontractor in the performance of a contract.

2. Any person claiming against the bond or deposit maybring an action in a court of competent jurisdiction on the bond or against theBoard on the deposit for the amount of damage he has suffered to the extentcovered by the bond or deposit. No action may be commenced on the bond ordeposit 2 years after the commission of the act on which the action is based.If an action is commenced on the bond, the surety that executed the bond shallnotify the Board of the action within 30 days after the date that:

(a) The surety is served with a complaint and summons;or

(b) The action is commenced,

whicheveroccurs first.

3. Upon receiving a request from a person for whosebenefit a bond or deposit is required, the Board shall notify him that:

(a) A bond is in effect or that a deposit has beenmade, and the amount of either;

(b) There is an action against a bond, if that is thecase, and the court, the title and number of the action and the amount soughtby the plaintiff; and

(c) There is an action against the Board, if that isthe case, and the amount sought by the plaintiff.

4. If a surety, or in the case of a deposit, theBoard, desires to make payment without awaiting court action, the amount of thebond or deposit must be reduced to the extent of any payment made by the suretyor the Board in good faith under the bond or deposit. Any payment must be basedon written claims received by the surety or Board before the court action.

5. The surety or the Board may bring an action forinterpleader against all claimants upon the bond or deposit. If an action forinterpleader is commenced, the surety or the Board must serve each knownclaimant and publish notice of the action at least once each week for 2 weeksin a newspaper of general circulation in the county where the contractor hashis principal place of business. The surety is entitled to deduct its costs ofthe action, including publication, from its liability under the bond. The Boardis entitled to deduct its costs of the action, including attorneys fees andpublication, from the deposit.

6. A claim of any employee of the contractor for laboris a preferred claim against a bond or deposit. If any bond or deposit isinsufficient to pay all claims for labor in full, the sum recovered must bedistributed among all claimants for labor in proportion to the amounts of theirrespective claims. Partial payment of claims is not full payment, and theclaimants may bring actions against the contractor for the unpaid balances.

7. Claims, other than claims for labor, against a bondor deposit have equal priority, except where otherwise provided by law, and ifthe bond or deposit is insufficient to pay all of those claims in full, theymust be paid pro rata. Partial payment of claims is not full payment, and theclaimants may bring actions against the contractor for the unpaid balances.

8. The Board may not claim against the bond or depositrequired pursuant to NRS 624.270 for thepayment of an administrative fine imposed for a violation of the provisions ofthis chapter.

(Added to NRS by 1965, 351; A 1971, 181, 383; 1981,1746; 1985, 761; 1999,2181, 2960)

NRS 624.275 Bond and deposit: Notice of claim paid against contractors bond by surety;cancellation of contractors bond by surety; notification to contractor ofclaim against or cancellation of bond; duties of Board and contractor;revocation or suspension of license.

1. Withrespect to a surety bond that a licensed contractor maintains in accordancewith NRS 624.270 or 624.276:

(a) The suretyshall give prompt notice to the Board of any claims paid against the bond ofthe licensed contractor.

(b) The suretymay cancel the bond upon giving 60 days notice to the Board and to thecontractor by certified mail.

2. Uponreceipt by the Board of the notice described in paragraph (a) of subsection 1,the Board shall immediately notify the contractor who is the principal on thebond that his license will be suspended or revoked unless he furnishes anequivalent bond or establishes an equivalent cash deposit before a date set bythe Board.

3. Uponreceipt by the Board of the notice described in paragraph (b) of subsection 1,the Board shall immediately notify the contractor who is the principal on thebond that his license will be suspended or revoked unless he furnishes anequivalent bond or establishes an equivalent cash deposit before the effectivedate of the cancellation.

4. The noticemailed to the contractor by the Board pursuant to subsection 2 or 3 must beaddressed to his latest address of record in the office of the Board.

5. If thecontractor does not comply with the requirements of the notice from the Board,his license must be suspended or revoked on the date:

(a) Set by theBoard, if the notice was provided to the contractor pursuant to subsection 2;or

(b) The bond is cancelled, if the notice was providedto the contractor pursuant to subsection 3.

(Added to NRS by 1965, 351; A 1987, 1140; 1989, 852; 1999, 2182; 2005, 2384)

NRS 624.276 Bond and deposit: Additional requirements for contractors performing workconcerning residential pools or spas.

1. Before granting an original contractorslicense to, or renewing the contractors license of, an applicant who performsor will perform work concerning residential pools or spas, the Board shall, inaddition to any other conditions for the issuance or renewal of a license,require the applicant to:

(a) File with the Board a bond solely for theprotection of consumers in an amount fixed by the Board; or

(b) In lieu of filing a bond, establish with the Boarda cash deposit as provided in this section.

2. A bond required pursuant to subsection 1 is inaddition to, may not be combined with and does not replace any other bond requiredpursuant to the provisions of this chapter. A contractor required to file abond pursuant to subsection 1 shall maintain the bond for 5 years or for suchlonger period as the Board may require.

3. After a contractor who performs work concerning aresidential pool or spa has acted in the capacity of a licensed contractor inthe State of Nevada for not less than 5 consecutive years, the Board mayrelieve the contractor of the requirements of subsection 1 if evidencesupporting such relief is presented to the Board. The Board may at any timethereafter require the contractor to comply with subsection 1 if evidence ispresented to the Board supporting this requirement.

4. If a licensee is relieved of the requirement ofestablishing a cash deposit pursuant to this section, the deposit may bewithdrawn 2 years after such relief is granted, if there is no outstandingclaim against it.

5. Failure of an applicant or licensee to file ormaintain in full force the required bond or to establish the required cashdeposit constitutes cause for the Board to deny, revoke, suspend or refuse torenew a license.

6. The amount of each bond or cash deposit required bythis section must be fixed by the Board with reference to the contractorsfinancial and professional responsibility and the magnitude of his operations,but must be not less than $10,000 or more than $400,000. The bond must becontinuous in form and must be conditioned that the total aggregate liabilityof the surety for all claims is limited to the face amount of the bondirrespective of the number of years the bond is in force.

7. A bond required pursuant to subsection 1 must beprovided by a person whose long-term debt obligations are rated A or betterby a nationally recognized rating agency. The Board may increase or reduce theamount of any bond or cash deposit if evidence supporting such a change in theamount is presented to the Board at the time application is made for renewal ofa license or at any hearing conducted pursuant to NRS 624.2545 or 624.291.

8. Unless released earlier pursuant to subsection 3,any cash deposit may be withdrawn 2 years after termination of the license inconnection with which it was established or 2 years after completion of allwork authorized by the Board after termination of the license, whichever occurslater, if there is no outstanding claim against it.

9. Each bond or deposit required pursuant to thissection must be in favor of the State of Nevada solely for the benefit of anyconsumer who entered into a contract with the contractor to perform workconcerning a residential pool or spa and:

(a) Is damaged by failure of the contractor to performthe contract or to remove liens filed against the property; or

(b) Is injured by any unlawful act or omission of thecontractor in the performance of a contract.

10. Any consumer claiming against the bond or depositmay bring an action in a court of competent jurisdiction on the bond or againstthe Board on the deposit for the amount of damage he has suffered to the extentcovered by the bond or deposit.

11. If an action is commenced on the bond, the suretythat executed the bond shall notify the Board of the action within 30 daysafter the date that:

(a) The surety is served with a complaint and summons;or

(b) The action is commenced,

whicheveroccurs first.

12. A claim or action pursuant to this section mustproceed and be administered in the manner provided pursuant to NRS 624.273 for a claim or action.

13. The Board shall adopt regulations necessary tocarry out the provisions of this section, including, without limitation,regulations concerning:

(a) The determination of the amount of a bond pursuantto this section;

(b) The form of bond required pursuant to this section;

(c) The time within which an applicant or licensee mustcomply with the provisions of this section; and

(d) Procedures to contest the amount of a bond requiredpursuant to this section.

14. The Board shall immediately suspend the license ofa contractor who fails to post the bond or provide the deposit requiredpursuant to this section. Failure by a licensee for 6 months to post the bondor provide the deposit required pursuant to this section constitutes groundsfor disciplinary action.

15. As used in this section:

(a) Consumer means a natural person who:

(1) Owns a single-family residence; and

(2) Enters into a contract with a licensee toperform work concerning a residential pool or spa.

(b) Work concerning a residential pool or spa has themeaning ascribed to it in NRS 624.915.

(Added to NRS by 2001, 2981; A 2005, 2385)

NRS 624.280 Regulations concerning fees;limitation on amount. The Board may adoptregulations fixing the fee for an application, the fee for an examination andthe annual fee for a license to be paid by applicants and licensees. Except asotherwise provided in NRS 624.281, thefee for:

1. Anapplication must not exceed $550.

2. A licensemust not exceed $450 annually.

3. An examination must not exceed $300.

[1:Art. VI:186:1941; A 1951, 47; 1953, 521](NRS A1959, 869; 1967, 1593; 1981, 634; 1987, 1140; 1997, 506; 1999, 2182)

NRS 624.281 Feefor license issued in expedited manner; reimbursement to Board for costs andexpenses; regulations concerning application for license issued in expeditedmanner.

1. If an applicant wishes to have his license issuedin an expedited manner, he must pay a fee for an application equal to two timesthe amount of the fee regularly paid for an application pursuant to subsection1 of NRS 624.280.

2. The applicant must pay one-half of the fee requiredpursuant to subsection 1 when he submits the application and the other one-halfof the fee when the Board issues the license.

3. In addition to the fee required pursuant tosubsection 1, the applicant shall reimburse the Board for the actual costs andexpenses incurred by the Board in processing the application.

4. The Board shall adopt regulations prescribing theprocedures for making an application pursuant to this section.

(Added to NRS by 1999, 2177)

NRS 624.282 Inactivestatus of license: Application; effect; duration; regulations.

1. A contractor may apply to the Board to have hislicense placed on inactive status. The Board may grant the application if thelicense is in good standing and the licensee has met all requirements for theissuance or renewal of a contractors license as of the date of theapplication.

2. If the application is granted, the licensee shallnot engage in any work or activities that require a contractors license inthis State unless he is returned to active status.

3. A person whose license has been placed on inactivestatus pursuant to this section is exempt from:

(a) The requirement to execute and maintain a bondpursuant to NRS 624.270; and

(b) The requirement to qualify in regard to hisexperience and knowledge pursuant to NRS624.260.

4. The inactive status of a license is valid for 5years after the date that the inactive status is granted.

5. The Board shall not refund any portion of therenewal fee of a contractors license that was paid before the license wasplaced on inactive status.

6. The Board shall adopt regulations prescribing the:

(a) Procedures for making an application pursuant tothis section;

(b) Procedures and terms upon which a person whoselicense has been placed on inactive status may resume work or activities thatrequire a contractors license; and

(c) Fees for the renewal of the inactive status of alicense.

(Added to NRS by 1999, 2177)

NRS 624.283 License:Expiration; renewal; financial statement; reinstatement; cancellation.

1. Each license issued under the provisions of thischapter expires 1 year after the date on which it is issued, except that theBoard may by regulation prescribe shorter or longer periods and prorated feesto establish a system of staggered renewals. Any license which is not renewedon or before the date for renewal is automatically suspended.

2. A license may be renewed by submitting to theBoard:

(a) An application for renewal;

(b) The fee for renewal fixed by the Board;

(c) Any assessment required pursuant to NRS 624.470 if the holder of the license isa residential contractor as defined in NRS624.450; and

(d) All information required to complete the renewal.

3. The Board may require a licensee to demonstrate hisfinancial responsibility at any time through the submission of:

(a) A financial statement that is:

(1) Prepared by an independent certified publicaccountant; or

(2) Submitted on a form or in a formatprescribed by the Board together with an affidavit which verifies the accuracyof the financial statement; and

(b) If the licensee performs residential construction,such additional documentation as the Board deems appropriate.

4. If a license is automatically suspended pursuant tosubsection 1, the licensee may have his license reinstated upon filing anapplication for renewal within 6 months after the date of suspension andpaying, in addition to the fee for renewal, a fee for reinstatement fixed bythe Board, if he is otherwise in good standing and there are no complaintspending against him. If he is otherwise not in good standing or there is acomplaint pending, the Board shall require him to provide a current financialstatement prepared by an independent certified public accountant or establishother conditions for reinstatement. An application for renewal must beaccompanied by all information required to complete the renewal. A licensewhich is not reinstated within 6 months after it is automatically suspended maybe cancelled by the Board, and a new license may be issued only uponapplication for an original contractors license.

(Added to NRS by 1969, 943; A 1977, 87; 1987, 1140;1997, 2113, 2689; 1999,520, 1970, 2961, 2967; 2001, 141; 2005, 1204, 1205, 2707, 2807)

NRS 624.284 License:Limitation of scope. A contractors licenseissued pursuant to this chapter does not authorize a contractor to construct orrepair a mobile home, manufactured home or commercial coach.

(Added to NRS by 1997, 212)

NRS 624.285 Terminationof association of natural person qualifying by examination on behalf of anothernatural person or firm: Notice; replacement with qualified natural person.

1. If the natural person qualifying by examination onbehalf of another natural person or a firm pursuant to subsection 2 of NRS 624.260 ceases for any reason to beconnected with the licensee to whom the license is issued, the licensee shallnotify the Board in writing within 10 days after the cessation of associationor employment. If a notice is given, the license remains in force for areasonable length of time to be set by the Board, but not exceeding 30 daysafter the date of the cessation of association or employment.

2. The licensee shall replace the person originallyqualified with another natural person similarly qualified and approved by theBoard within the time limited by subsection 1, unless extended by the Board forgood cause.

3. If the licensee fails to notify the Board withinthe 10-day period his license must be automatically suspended. The license mustbe reinstated upon the replacement of the person originally qualified byanother natural person similarly qualified and approved by the Board.

4. If the licensee fails to replace the personoriginally qualified within the 30-day period, his license may be suspended orrevoked.

(Added to NRS by 1967, 1595; A 1987, 613)

NRS 624.288 Displayof name and license on motor vehicle. Alicensee shall display on each commercial motor vehicle registered under hisname, his name and the number of his license, in letters and numbersapproximately 1 1/2 inches high.

(Added to NRS by 1987, 1101)(Substituted in revisionfor NRS 624.306)

HEARINGS

NRS 624.291 Hearingrequired if Board suspends or revokes license, has probable cause to believethat person has engaged in unlawful advertising or imposes administrative finefor unlicensed actions; exception.

1. Except as otherwise provided in subsection 4, ifthe Board suspends or revokes a license, has probable cause to believe that aperson has violated NRS 624.720 orimposes an administrative fine pursuant to NRS624.710, the Board shall hold a hearing. The time and place for the hearingmust be fixed by the Board, and notice of the time and place of the hearingmust be personally served on the applicant or accused or mailed to the lastknown address of the applicant or accused at least 21 days before the datefixed for the hearing.

2. The testimony taken pursuant to NRS 624.170 to 624.210, inclusive, must be considered apart of the record of the hearing before the Board.

3. Except as otherwise provided in NRS 622.320, the hearing must be public ifa request is made therefor.

4. The Board may suspend the license of a contractorwithout a hearing if the Board finds, based upon evidence in its possession,that the public health, safety or welfare imperatively requires summarysuspension of the license of the contractor and incorporates that finding inits order. If the Board summarily suspends the license of the contractor, theBoard must notify the contractor by certified mail. A hearing must be heldwithin 60 days after the suspension if the contractor submits a written requestfor a hearing to the Board within 20 days after the Board summarily suspendshis license.

[5:Art. IV:186:1941; A 1955, 378](NRS A 1977, 87;1995, 928; 1997, 2691; 1999,2183, 2858; 2001, 2414; 2003, 3422)

DISCIPLINARY ACTION

General Provisions

NRS 624.295 Memberof Board authorized to inform Executive Officer of allegation of ground fordisciplinary action; action by Executive Officer. Ifa member of the Board becomes aware that any one or a combination of thegrounds for initiating disciplinary action may exist as to a contractor in thisState, the member of the Board may inform the Executive Officer of the Board ofthe allegations. The Executive Officer, upon receiving such information, shalltake such actions as he deems appropriate under the circumstances.

(Added to NRS by 1995, 926; A 1999, 2962)

NRS 624.300 Disciplinaryactions against licensee; private reprimands prohibited; orders imposingdiscipline deemed public records; deposit of fines in Construction EducationAccount.

1. Except as otherwise provided in subsections 3 and4, the Board may:

(a) Suspend or revoke licenses already issued;

(b) Refuse renewals of licenses;

(c) Impose limits on the field, scope and monetarylimit of the license;

(d) Impose an administrative fine of not more than$10,000;

(e) Order a licensee to repay to the accountestablished pursuant to NRS 624.470, anyamount paid out of the account pursuant to NRS624.510 as a result of an act or omission of that licensee;

(f) Order the licensee to take action to correct acondition resulting from an act which constitutes a cause for disciplinaryaction, at the licensees cost, that may consist of requiring the licensee to:

(1) Perform the corrective work himself;

(2) Hire and pay another licensee to perform thecorrective work; or

(3) Pay to the owner of the construction projecta specified sum to correct the condition; or

(g) Issue a public reprimand or take other less severedisciplinary action, including, without limitation, increasing the amount ofthe surety bond or cash deposit of the licensee,

if thelicensee commits any act which constitutes a cause for disciplinary action.

2. If the Board suspends or revokes the license of acontractor for failure to establish financial responsibility, the Board may, inaddition to any other conditions for reinstating or renewing the license,require that each contract undertaken by the licensee for a period to bedesignated by the Board, not to exceed 12 months, be separately covered by abond or bonds approved by the Board and conditioned upon the performance of andthe payment of labor and materials required by the contract.

3. If a licensee violates the provisions of NRS 624.3014, subsection 2 or 3 of NRS 624.3015, subsection 1 of NRS 624.302 or subsection 1 of NRS 624.305, the Board may impose for eachviolation an administrative fine in an amount that is not more than $50,000.The Board shall, by regulation, establish standards for use by the Board indetermining the amount of an administrative fine imposed pursuant to thissubsection. The standards must include, without limitation, provisionsrequiring the Board to consider:

(a) The gravity of the violation;

(b) The good faith of the licensee; and

(c) Any history of previous violations of theprovisions of this chapter committed by the licensee.

4. If a licensee is prohibited from being awarded acontract for a public work pursuant to NRS338.017, the Board may suspend the license of the licensee for the periodof the prohibition.

5. If a licensee commits a fraudulent act which is acause for disciplinary action under NRS624.3016, the correction of any condition resulting from the act does notpreclude the Board from taking disciplinary action.

6. If the Board finds that a licensee has engaged inrepeated acts that would be cause for disciplinary action, the correction ofany resulting conditions does not preclude the Board from taking disciplinaryaction pursuant to this section.

7. The expiration of a license by operation of law orby order or decision of the Board or a court, or the voluntary surrender of alicense by a licensee, does not deprive the Board of jurisdiction to proceedwith any investigation of, or action or disciplinary proceeding against, thelicensee or to render a decision suspending or revoking the license.

8. The Board shall not issue a private reprimand to alicensee.

9. An order that imposes discipline and the findingsof fact and conclusions of law supporting that order are public records.

10. An administrative fine imposed pursuant to thissection, NRS 624.341 or 624.710 plus interest at a rate that isequal to the prime rate at the largest bank in this State, as determined by theCommissioner of Financial Institutions on January 1 or July 1, as appropriate,immediately preceding the date of the order imposing the administrative fine,plus 4 percent, must be paid to the Board before the issuance or renewal of alicense to engage in the business of contracting in this State. The interestmust be collected from the date of the order until the date the administrativefine is paid.

11. All fines and interest collected pursuant to thissection must be deposited with the State Treasurer for credit to theConstruction Education Account created pursuant to NRS 624.580.

[4:Art. IV:186:1941; A 1955, 378](NRS A 1963, 696;1967, 1043, 1594; 1969, 939; 1979, 320; 1993, 884; 1995, 234, 2544, 2545; 1997,2690; 1999, 1447,1971, 2962, 2967; 2001, 2414; 2003, 173, 1901, 2143, 3422; 2005, 1205)

Grounds for Disciplinary Action

NRS 624.301 Abandonmentor failure to complete or prosecute diligently project for construction;willful failure to comply with terms of contract or written warranty. The following acts, among others, constitute cause fordisciplinary action under NRS 624.300:

1. Abandonment without legal excuse of anyconstruction project or operation engaged in or undertaken by the licensee as acontractor.

2. Abandonment of a construction project when thepercentage of the project completed is less than the percentage of the totalprice of the contract paid to the contractor at the time of abandonment, unlessthe contractor is entitled to retain the amount paid pursuant to the terms ofthe contract or the contractor refunds the excessive amount paid within 30 daysafter the abandonment of the project.

3. Failure in a material respect on the part of alicensee to complete any construction project or operation for the price statedin the contract for the project or operation or any modification of thecontract.

4. Willful failure or refusal without legal excuse onthe part of a licensee as a contractor to prosecute a construction project oroperation with reasonable diligence, thereby causing material injury toanother.

5. Willful failure or refusal without legal excuse onthe part of a licensee to comply with the terms of a construction contract orwritten warranty, thereby causing material injury to another.

(Added to NRS by 1969, 940; A 1979, 320; 1999, 2963)

NRS 624.3011 Disregardof plans, specifications, laws or regulations.

1. The following acts, among others, constitute causefor disciplinary action under NRS 624.300:

(a) Willful and prejudicial departure from or disregardof plans or specifications in any material respect without the consent of theowner or his authorized representative and the person entitled to have theparticular construction project or operation completed in accordance with theplans and specifications.

(b) Willful or deliberate disregard and violation of:

(1) The building laws of the State or of anypolitical subdivision thereof.

(2) The safety laws or labor laws of the State.

(3) Any provision of the Nevada health andsafety laws or the regulations adopted thereunder relating to the digging,boring or drilling of water wells.

(4) The laws of this State regarding industrialinsurance.

2. If a contractor performs construction withoutobtaining any necessary building permit, there is a rebuttable presumption thatthe contractor willfully and deliberately violated the building laws of thisState or of its political subdivisions.

(Added to NRS by 1969, 941; A 1983, 541; 1987, 1101;1995, 2545; 1999,2964)

NRS 624.3012 Diversionof money; failure to pay for materials or services; failure to release lienagainst property to be improved. The followingacts, among others, constitute cause for disciplinary action under NRS 624.300:

1. Diversion of money or property received for thecompletion of a specific construction project or operation or for a specifiedpurpose in the completion of any construction project or operation to any otherconstruction project or operation, obligation or purpose.

2. Willful or deliberate failure by any licensee oragent or officer thereof to pay any money when due for any materials orservices rendered in connection with his operations as a contractor, when hehas the capacity to pay or when he has received sufficient money therefor aspayment for the particular construction work, project or operation for whichthe services or materials were rendered or purchased, or the false denial ofany such amount due or the validity of the claim thereof with intent to securea discount upon such indebtedness or with intent to injure, delay or defraudthe person to whom such indebtedness is due.

3. Failure to obtain the discharge or release of anylien recorded against the property to be improved by a construction project forthe price of any materials or services rendered to the project by order of thecontractor, when the contractor has received sufficient money therefor aspayment for the project, within 75 days after the recording of the lien.

(Added to NRS by 1969, 941; A 1999, 2964)

NRS 624.3013 Failureto keep records or maintain bond; misrepresentation; failure to establishfinancial responsibility or comply with law or regulations of Board. The following acts, among others, constitute cause fordisciplinary action pursuant to NRS 624.300:

1. Failure to keep records showing all contracts,documents, receipts and disbursements by a licensee of all of his transactionsas a contractor and to keep them open for inspection by the Board or ExecutiveOfficer for a period of not less than 3 years after the completion of anyconstruction project or operation to which the records refer.

2. Misrepresentation of a material fact by anapplicant or licensee in connection with any information or evidence furnishedthe Board in connection with official matters of the Board.

3. Failure to establish financial responsibilitypursuant to NRS 624.220 and 624.260 to 624.265, inclusive, at the time of renewalof the license or at any other time when required by the Board.

4. Failure to keep in force the bond or cash depositpursuant to NRS 624.270 for the fullperiod required by the Board.

5. Failure in any material respect to comply with theprovisions of this chapter or the regulations of the Board.

(Added to NRS by 1969, 941; A 1971, 182; 1985, 1053;1987, 217; 1999, 2965)

NRS 624.3014 Misuseof license; evasion of law. The followingacts, among others, constitute cause for disciplinary action under NRS 624.300:

1. Acting in the capacity of a contractor under anylicense issued hereunder except:

(a) In the name of the licensee as set forth upon the license.

(b) As an employee of the licensee as set forth in theapplication for such license or as later changed pursuant to this chapter andthe rules and regulations of the Board.

2. With the intent to evade the provisions of thischapter:

(a) Aiding or abetting an unlicensed person to evadethe provisions of this chapter.

(b) Combining or conspiring with an unlicensed personto perform an unauthorized act.

(c) Allowing a license to be used by an unlicensedperson.

(d) Acting as agent, partner or associate of anunlicensed person.

(e) Furnishing estimates or bids to an unlicensedperson.

3. Any attempt by a licensee to assign, transfer orotherwise dispose of a license or permit the unauthorized use thereof.

(Added to NRS by 1969, 941)

NRS 624.3015 Actingbeyond scope of license; contract with unlicensed contractor; constructing orrepairing mobile home, manufactured home or commercial coach; engaging in workthat requires license while license is inactive. Thefollowing acts, among others, constitute cause for disciplinary action under NRS 624.300:

1. Acting in the capacity of a contractor beyond thescope of the license.

2. Bidding to contract or contracting for a sum for oneconstruction contract or project in excess of the limit placed on the licenseby the Board.

3. Knowingly entering into a contract with acontractor while that contractor is not licensed, or bidding to contract orentering into a contract with a contractor for work in excess of his limit orbeyond the scope of his license.

4. Constructing or repairing a mobile home,manufactured home or commercial coach, unless the contractor:

(a) Is licensed pursuant to NRS 489.311; or

(b) Owns, leases or rents the mobile home, manufacturedhome or commercial coach.

5. Engaging in any work or activities that require acontractors license while the license is placed on inactive status pursuant toNRS 624.282.

(Added to NRS by 1969, 942; A 1979, 319; 1981, 634;1997, 213; 1999, 2182)

NRS 624.3016 Fraudulentor deceitful acts; criminal conviction; improper acts involving liens; improperacts involving residential pools and spas; failure to make required disclosure;failure to pay assessment; improper acts involving contract for public work. The following acts or omissions, among others, constitutecause for disciplinary action under NRS624.300:

1. Any fraudulent or deceitful act committed in thecapacity of a contractor, including, without limitation, misrepresentation orthe omission of a material fact.

2. A conviction of a violation of NRS 624.730, or a conviction in this Stateor any other jurisdiction of a felony relating to the practice of a contractoror a crime involving moral turpitude.

3. Knowingly making a false statement in or relatingto the recording of a notice of lien pursuant to the provisions of NRS 108.226.

4. Failure to give a notice required by NRS 108.227, 108.245 or 108.246.

5. Failure to comply with NRS 624.920, 624.930, 624.935or 624.940 or any regulations of theBoard governing contracts for work concerning residential pools and spas.

6. Failure to comply with NRS 624.600.

7. Misrepresentation or the omission of a materialfact, or the commission of any other fraudulent or deceitful act, to obtain alicense.

8. Failure to pay an assessment required pursuant to NRS 624.470.

9. Failure to file a certified payroll report that isrequired for a contract for a public work.

10. Knowingly submitting false information in anapplication for qualification or a certified payroll report that is requiredfor a contract for a public work.

(Added to NRS by 1969, 942; A 1983, 510; 1997, 2690; 1999, 1972, 2965, 2967; 2001, 141; 2003, 2144, 2618, 2704; 2005, 1207, 2387)

NRS 624.30165 Unfairbusiness practices: Misrepresentations involving need for service, replacementparts, equipment or repairs; false or misleading statements. The following acts, among others, are unfair businesspractices and constitute cause for disciplinary action under NRS 624.300:

1. When a contractor states that service, replacementparts, equipment or repairs are needed when such service, replacement parts,equipment or repairs actually are not needed.

2. When a contractor makes any false or misleadingstatement or representation of material fact that is intended, directly orindirectly, to induce another person to use the services of the contractor orto enter into any contract with the contractor or any obligation relating tosuch a contract.

3. When a contractor makes any false or misleadingstatement or representation of material fact that is intended, directly orindirectly, to disparage the goods, services or business of another person.

(Added to NRS by 2005, 1200)

NRS 624.3017 Substandardworkmanship; incomplete advertising; advertising projects beyond scope oflicense. The following acts, among others,constitute cause for disciplinary action under NRS 624.300:

1. Workmanship which is not commensurate withstandards of the trade in general or which is below the standards in thebuilding or construction codes adopted by the city or county in which the workis performed. If no applicable building or construction code has been adoptedlocally, then workmanship must meet the standards prescribed in the UniformBuilding Code, Uniform Plumbing Code or National Electrical Code in the form ofthe code most recently approved by the Board. The Board shall review eachedition of the Uniform Building Code, Uniform Plumbing Code or NationalElectrical Code that is published after the 1996 edition to ensure its suitability.Each new edition of the code shall be deemed approved by the Board unless theedition is disapproved by the Board within 60 days of the publication of thecode.

2. Advertising projects of construction without includingin the advertisements the name and license number of the licensed contractorwho is responsible for the construction.

3. Advertising projects of construction beyond thescope of the license.

(Added to NRS by 1969, 942; A 1985, 375, 1053; 1987,217; 1997, 2691; 1999,2856)

NRS 624.30175 Suspensionof license for failure to pay child support or comply with certain subpoenas orwarrants; reinstatement of license. [Expires by limitation 2 years after thedate of the repeal of the federal law requiring each state to establishprocedures for withholding, suspending and restricting the professional,occupational and recreational licenses for child support arrearages and for noncompliancewith certain processes relating to paternity or child support proceedings.]

1. If the Board receives a copy of a court orderissued pursuant to NRS 425.540 thatprovides for the suspension of all professional, occupational and recreationallicenses, certificates and permits issued to a person who is the holder of acontractors license, the Board shall deem the license issued to that person tobe suspended at the end of the 30th day after the date on which the court orderwas issued unless the Board receives a letter issued to the holder of thelicense by the district attorney or other public agency pursuant to NRS 425.550 stating that the holder of thelicense has complied with the subpoena or warrant or has satisfied thearrearage pursuant to NRS 425.560.

2. The Board shall reinstate a contractors licensethat has been suspended by a district court pursuant to NRS 425.540 if the Board receives a letterissued by the district attorney or other public agency pursuant to NRS 425.550 to the person whose license wassuspended stating that the person whose license was suspended has complied withthe subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

(Added to NRS by 1997, 2112; A 2005, 2807)

NRS 624.3018 Certainpersons prohibited from serving as officer, director, associate or partner oflicensee.

1. Any person who:

(a) Has been denied a license or who has had hislicense revoked or suspended or who has been denied a renewal of a license; or

(b) Has been a member, officer, director or associateof any partnership, corporation, firm or association whose application for alicense has been denied, or whose license has been revoked or suspended orwhich has been denied a renewal of a license, and while acting as such member,officer, director or associate had knowledge of or participated in any of theprohibited acts for which the license or the renewal thereof was denied,suspended or revoked,

may beprohibited from serving as an officer, director, associate or partner of alicensee.

2. The performance by any partnership, corporation,firm or association of any act or omission constituting a cause fordisciplinary action likewise constitutes a cause for disciplinary actionagainst any licensee who is a member, officer, director or associate of suchpartnership, corporation, firm or association, and who participated in suchprohibited act or omission.

(Added to NRS by 1969, 942; A 1975, 1161)

NRS 624.302 Contracting,offering to contract or submitting bid if license is suspended, revoked orinactive; failure to comply with written citation or pay administrative fine;suspension or revocation of license in other state or disciplinary action inother state; failure or refusal to respond to or comply with written requestsof Board. The following acts or omissions,among others, constitute cause for disciplinary action pursuant to NRS 624.300:

1. Contracting, offering to contract or submitting abid as a contractor if the contractors license:

(a) Has been suspended or revoked pursuant to NRS 624.300; or

(b) Is inactive.

2. Failure to comply with a written citation issuedpursuant to NRS 624.341 within the timepermitted for compliance set forth in the citation, or, if a hearing is heldpursuant to NRS 624.291, within 15business days after the hearing.

3. Except as otherwise provided in subsection 2,failure to pay an administrative fine imposed pursuant to this chapter within30 days after:

(a) Receiving notice of the imposition of the fine; or

(b) The final administrative or judicial decisionaffirming the imposition of the fine,

whicheveroccurs later.

4. The suspension, revocation or other disciplinaryaction taken by another state against a contractor based on a license issued bythat state if the contractor is licensed in this State or applies for a licensein this State. A certified copy of the suspension, revocation or otherdisciplinary action taken by another state against a contractor based on alicense issued by that state is conclusive evidence of that action.

5. Failure or refusal to respond to a written requestfrom the Board or its designee to cooperate in the investigation of acomplaint.

6. Failure or refusal to comply with a written requestby the Board or its designee for information or records, or obstructing ordelaying the providing of such information or records.

(Added to NRS by 1999, 2953; A 2001, 213)

NRS 624.305 Unlawfuluse, assignment or transfer of license; revocation of license.

1. No license may be used for any purpose by anyperson other than the person to whom such license is issued, and no license maybe assigned, transferred or otherwise disposed of to permit the unauthorizeduse thereof.

2. The license of any person who violates anyprovision of this section shall be automatically cancelled and revoked.

(Added to NRS by 1959, 868)

Proceedings

NRS 624.320 Allegationand proof of license in action on contract. Noperson, firm, copartnership, corporation, association or other organization, orany combination of any thereof, engaged in the business or acting in thecapacity of a contractor shall bring or maintain any action in the courts ofthis State for the collection of compensation for the performance of any act orcontract for which a license is required by this chapter without alleging andproving that such person, firm, copartnership, corporation, association orother organization, or any combination of any thereof, was a duly licensedcontractor at all times during the performance of such act or contract and whenthe job was bid.

[3:Art. VII:186:1941; Added 1943, 83; A 1953, 521]

NRS 624.323 Licenseesubject to disciplinary proceeding must submit financial statement and otherinformation to Board; authority of Board to take certain actions to protectpublic.

1. In addition to any other requirements set forth inthis chapter, if an investigation is conducted against a licensee and the Boarddetermines that there is cause to proceed with a formal disciplinary proceedingagainst the licensee, the Board shall require the licensee to submit to theBoard:

(a) A financial statement that is:

(1) Prepared by an independent certified publicaccountant; or

(2) Submitted on a form or in a formatprescribed by the Board together with an affidavit which verifies the accuracyof the financial statement; and

(b) A statement setting forth the number of buildingpermits issued to and construction projects completed by the licensee duringthe immediately preceding year and any other information required by the Board.The statement submitted pursuant to this paragraph must be provided on a formapproved by the Board.

2. After providing the licensee with notice and anopportunity to be heard, the Board must determine whether, based on thefinancial information concerning the licensee, it would be in the publicinterest to do any or all of the following:

(a) Require the licensee to obtain the services of aconstruction control with respect to any money that the licensee requires apurchaser of a new residence to pay in advance to make upgrades to the newresidence. If the Board imposes such a requirement, the licensee may not:

(1) Be related to the construction control or toan employee or agent of the construction control; or

(2) Hold, directly or indirectly, a financialinterest in the business of the construction control.

(b) Establish an aggregate monetary limit on the contractorslicense, which must be the maximum combined monetary limit on all contractsthat the licensee may undertake or perform as a licensed contractor at any onetime, regardless of the number of contracts, construction sites, subdivisionsites or clients. If the Board establishes such a limit, the Board:

(1) Shall determine the period that the limit isin effect; and

(2) During that period, may increase or decreasethe limit as the Board deems appropriate.

3. The provisions of this section do not limit theauthority of the Board to take disciplinary action against the licensee.

(Added to NRS by 2003, 1898; A 2005, 1207)

NRS 624.327 Certainrecords relating to investigation deemed confidential; certain records relatingto disciplinary action deemed public records.

1. Except as otherwise provided in this section, acomplaint filed with the Board, all documents and other information filed with thecomplaint and all documents and other information compiled as a result of theinvestigation conducted to determine whether to initiate disciplinary actionare confidential.

2. The complaint or other document filed by the Boardto initiate disciplinary action and all documents and information considered bythe Board when determining whether to impose discipline are public records.

(Added to NRS by 2003, 1898, 3422)

NRS 624.331 Complaintagainst licensee must be written and filed within certain period. A complaint against a licensee for the commission of anyact or omission that constitutes cause for disciplinary action pursuant to NRS 624.300 must be filed in writing withthe Board within 4 years after the act or omission.

(Added to NRS by 1999, 2954)

NRS 624.335 Investigationof complaint by Investigations Office; notification of actions taken;resolution of complaint by Investigations Office; forwarding of complaint toappropriate agency for resolution.

1. The Investigations Office of the Board shall:

(a) Upon the receipt of a complaint against a licensee,initiate an investigation of the complaint.

(b) Within 10 days after receiving such a complaint,notify the licensee and, if known, the person making the complaint of theinitiation of the investigation, and provide a copy of the complaint to thelicensee.

(c) Upon the completion of its investigation of acomplaint, provide the licensee and, if known, the person making the complaintwith written notification of any action taken on the complaint and the reasonsfor taking that action.

2. The Investigations Office of the Board may attemptto resolve the complaint by:

(a) Meeting and conferring with the licensee and theperson making the complaint; and

(b) Requesting the licensee to provide appropriaterelief.

3. If the subject matter of the complaint is notwithin the jurisdiction of the Board, the Board or its designee may:

(a) Forward the complaint, together with any evidenceor other information in the possession of the Board concerning the complaint,to any public or private agency which, in the opinion of the Board, would beeffective in resolving the complaint; and

(b) Notify the person making the complaint of itsaction pursuant to paragraph (a) and of any other procedures which may beavailable to resolve the complaint.

(Added to NRS by 1999, 2951; A 2003, 1902)

NRS 624.341 Administrativecitation; order to take corrective action.

1. If the Board or its designee, based upon apreponderance of the evidence, has reason to believe that a licensee orapplicant for a contractors license has committed an act which constitutes acause for disciplinary action pursuant to NRS624.300, the Board or its designee, as appropriate, may issue or authorizethe issuance of a written administrative citation to the licensee or applicant.A citation issued pursuant to this section may include, without limitation:

(a) An order to take action to correct a conditionresulting from an act that constitutes a cause for disciplinary action, at thelicensees or applicants cost;

(b) An order to pay an administrative fine; and

(c) An order to reimburse the Board for the amount ofthe expenses incurred to investigate the complaint.

2. If a written citation issued pursuant to subsection1 includes an order to take action to correct a condition resulting from an actthat constitutes a cause for disciplinary action, the citation must state thetime permitted for compliance, which must be not less than 15 business daysafter the date the licensee or applicant receives the citation, andspecifically describe the action required to be taken.

(Added to NRS by 1999, 2951)

NRS 624.345 Contestof administrative citation by licensee or applicant: Time limit; effect offailure to contest citation within time limit; extension of time to contestcitation; service of citation.

1. A licensee or applicant for a contractors license whois issued a written citation pursuant to NRS624.341 may contest the citation within 15 business days after the date onwhich the citation is served on the licensee or applicant.

2. A licensee or applicant for a contractors licensemay contest, without limitation:

(a) The facts forming the basis for the determinationthat the licensee or applicant has committed an act which constitutes a causefor disciplinary action;

(b) The time allowed to take any corrective actionordered;

(c) The amount of any administrative fine ordered;

(d) The amount of any order to reimburse the Board forthe expenses incurred to investigate the licensee or applicant; and

(e) Whether any corrective action described in thecitation is reasonable.

3. If a licensee or applicant for a contractorslicense does not contest a citation issued pursuant to NRS 624.341 within 15 business days after thedate on which the citation is served on the licensee or applicant, or on orbefore such later date as specified by the Board pursuant to subsection 4, thecitation shall be deemed a final order of the Board and not subject to reviewby any court or agency.

4. The Board may, for good cause shown, extend thetime to contest a citation issued pursuant to NRS624.341.

5. For the purposes of this section, a citation shallbe deemed to have been served on a licensee or an applicant on:

(a) The date on which the citation is personallydelivered to the licensee or applicant; or

(b) If the citation is mailed, the date on which thecitation is mailed by certified mail to the last known business or residentialaddress of the licensee or applicant.

(Added to NRS by 1999, 2952)

NRS 624.351 Contestof administrative citation by licensee or applicant: Hearing. If a licensee or applicant for a contractors licensecontests a citation issued pursuant to NRS624.341 or order to correct a violation of the provisions of this chapterwithin 15 business days after he receives the citation or order, or on orbefore such later date as specified by the Board pursuant to subsection 4 of NRS 624.345, the Board shall hold a hearingpursuant to NRS 624.291.

(Added to NRS by 1999, 2952)

NRS 624.355 Annualreview of complaints by Board; report to Governor and Legislature; duty toinform public.

1. On or before September 1 of each even-numberedyear, the Board or its designee shall:

(a) Review the complaints received by the Board toascertain whether there are any similarities or common trends among any ofthose complaints;

(b) Prepare a written summary that identifies potentialdifficulties in the regulation of contractors and the protection of the publicpursuant to this chapter; and

(c) Report any findings and recommendations forlegislation to:

(1) The Governor; and

(2) The Director of the Legislative CounselBureau for transmittal to the next regular session of the Legislature.

2. The Board shall take such action as is necessary tokeep the public informed of its activities pursuant to this section.

(Added to NRS by 1999, 2953)

NRS 624.361 Regulations. The Board shall adopt regulations concerning the:

1. Form of a written citation issued pursuant to NRS 624.341;

2. Time required for a licensee or applicant for alicense to correct a condition resulting from an act that constitutes a causefor disciplinary action if he is so ordered pursuant to NRS 624.341; and

3. Imposition of an administrative fine pursuant tothe provisions of this chapter. The Board must consider:

(a) The gravity of the violation;

(b) The good faith of the licensee; and

(c) Any history of previous violations of theprovisions of this chapter by the licensee.

(Added to NRS by 1999, 2952)

RECOVERY FUND

NRS 624.400 Definitions. As used in NRS 624.400to 624.560, inclusive, unless thecontext otherwise requires, the words and terms defined in NRS 624.410 to 624.460, inclusive, have the meaningsascribed to them in those sections.

(Added to NRS by 1999, 1967; A 2001, 141)

NRS 624.410 Accountdefined. Account means the accountestablished pursuant to NRS 624.470.

(Added to NRS by 1999, 1967; A 2001, 141)

NRS 624.420 Injuredperson defined. Injured person means anowner who is damaged by the failure of a residential contractor to performqualified services adequately.

(Added to NRS by 1999, 1967; A 2001, 141)

NRS 624.430 Ownerdefined. Owner means a natural person whoowns a single-family residence and who contracts with a residential contractorfor the performance of qualified services with respect to the residence. Theterm includes a subsequent owner.

(Added to NRS by 1999, 1967; A 2001, 141)

NRS 624.440 Qualifiedservices defined. Qualified services meansany construction, remodeling, repair or improvement performed by a residentialcontractor on a single-family residence occupied by the owner of the residence.

(Added to NRS by 1999, 1967; A 2001, 141)

NRS 624.450 Residentialcontractor defined. Residential contractormeans a contractor who is licensed pursuant to this chapter and who contractswith the owner of a single-family residence to perform qualified services.

(Added to NRS by 1999, 1967; A 2001, 141)

NRS 624.460 Subsequentowner defined. Subsequent owner means anatural person who purchases a single-family residence from the owner of theresidence.

(Added to NRS by 1999, 1967; A 2001, 141)

NRS 624.470 Establishmentof account; reference to account as Recovery Fund; collection of annualassessment; reduction in amount of assessment under certain circumstances; useof money in account.

1. Except as otherwise provided in subsection 3, inaddition to the annual fee for a license required pursuant to NRS 624.280, a residential contractor shallpay to the Board an annual assessment not to exceed the following amount, ifthe monetary limit on his license is:

 

Not more than $1,000,000...................................................................................... $100

More than $1,000,000 but limited........................................................................... 250

Unlimited................................................................................................................... 500

 

2. The Board shall administer and account separatelyfor the money received from the annual assessments collected pursuant tosubsection 1. The Board may refer to the money in the account as the RecoveryFund.

3. The Board shall reduce the amount of theassessments collected pursuant to subsection 1 when the balance in the accountreaches 150 percent of the largest balance in the account during the previousfiscal year.

4. Except as otherwise provided in NRS 624.540, the money in the account mustbe used to pay claims made by owners who are damaged by the failure of aresidential contractor to perform qualified services adequately, as provided inNRS 624.400 to 624.560, inclusive.

(Added to NRS by 1999, 1967; A 2003, 1902)

NRS 624.480 Limitationon time to file complaint seeking recovery. Exceptas otherwise provided in NRS 624.490, aninjured person who wishes to recover from the account must file a complaintwith the Board or its designee within 4 years after the completion of qualifiedservices.

(Added to NRS by 1999, 1968)

NRS 624.490 Applicationto Board for satisfaction of judgment from account. Within2 years after an injured person has obtained a judgment in any court ofcompetent jurisdiction for recovery of damages against a residential contractorfor an act or omission of the residential contractor that is in violation ofthis chapter or the regulations adopted pursuant thereto, the injured personmay apply to the Board for satisfaction of the judgment from the account if:

1. The proceedings in connection with the judgmenthave terminated, including appeals;

2. He submits an application on a form established forthis purpose by the Board;

3. He submits proof satisfactory to the Board of thejudgment; and

4. Upon obtaining payment from the account, he assignshis rights to enforce the judgment to the Board.

(Added to NRS by 1999, 1968)

NRS 624.500 Hearingon complaint; limitation on time for acting on complaint.

1. The Boardor its designee shall hold a hearing if the Board receives a complaint pursuantto NRS 624.480. The time and place forthe hearing must be fixed by the Board or its designee, and the Board or itsdesignee shall notify the injured person in writing of the time and place ofthe hearing at least 30 days before the date fixed for the hearing.

2. Anytestimony taken pursuant to NRS 624.170to 624.210, inclusive, must beconsidered a part of the record of the hearing before the Board or itsdesignee.

3. The hearingmust be public if a request is made for a public hearing.

4. The Board or its designee shall act upon thecomplaint within 6 months after the complaint is filed with the Board.

(Added to NRS by 1999, 1968)

NRS 624.510 Eligibilityfor recovery from account; maximum amount of individual recovery from account;Board subrogated to rights of injured person; maximum amount of recovery fromaccount for claims against individual contractor.

1. Except as otherwise provided in NRS 624.490 and subsection 2, an injuredperson is eligible for recovery from the account if the Board or its designeefinds that the injured person suffered actual damages as a result of an act oromission of a residential contractor that is in violation of this chapter orthe regulations adopted pursuant thereto.

2. An injured person is not eligible for recovery fromthe account if:

(a) The injured person is the spouse of the licensee,or a personal representative of the spouse of the licensee;

(b) The injured person was associated in a businessrelationship with the licensee other than the contract at issue; or

(c) At the time of contracting with the residentialcontractor, the license of the residential contractor was suspended or revokedpursuant to NRS 624.300.

3. If the Board or its designee determines that aninjured person is eligible for recovery from the account pursuant to thissection or NRS 624.490, the Board or itsdesignee may pay out of the account:

(a) The amount of actual damages suffered, but not toexceed $35,000; or

(b) If a judgment was obtained as set forth in NRS 624.490, the amount of actual damagesincluded in the judgment and remaining unpaid, but not to exceed $35,000.

4. The decision of the Board or its designee regardingeligibility for recovery and all related issues is final and not subject tojudicial review.

5. If the injured person has recovered a portion ofhis loss from sources other than the account, the Board shall deduct the amountrecovered from the other sources from the amount payable upon the claim anddirect the difference to be paid from the account.

6. To the extent of payments made from the account,the Board is subrogated to the rights of the injured person, including, withoutlimitation, the right to collect from a surety bond or a cash bond. The Boardand the Attorney General shall promptly enforce all subrogation claims.

7. The amount of recovery from the account based uponclaims made against any single contractor must not exceed $400,000.

8. As used in this section, actual damages includesattorneys fees or costs in contested cases appealed to the Supreme Court ofthis State. The term does not include any other attorneys fees or costs.

(Added to NRS by 1999, 1968; A 2005, 20)

NRS 624.520 Contractorto notify owner of rights related to account; written statement; administrativefine for noncompliance.

1. A residential contractor shall notify an owner withwhom he contracts of the rights of the owner pursuant to NRS 624.400 to 624.560, inclusive, including, withoutlimitation, providing a written statement explaining those rights in anyagreement or contract for qualified services. The written statement must be insubstantially the following form:

 

RESIDENTIALCONSTRUCTION RECOVERY FUND

 

Payment may be available from the Recovery Fund if you aredamaged financially by a project performed on your residence pursuant to acontract, including construction, remodeling, repair or other improvements, andthe damage resulted from certain specified violations of Nevada law by acontractor licensed in this State. To obtain information relating to theRecovery Fund and filing a claim for recovery from the Recovery Fund, you maycontact the State Contractors Board at the following locations:

 

StateContractors Board State Contractors Board

9670Gateway Drive, Suite 100 2310 Corporate Circle, Suite 200

Reno,Nevada 89521 Henderson, Nevada 89074

Telephonenumber: (775) 688-1141 Telephone number: (702) 486-1100

 

2. The Board may impose upon a contractor anadministrative fine:

(a) Of not more than $100 for the first violation ofsubsection 1; and

(b) Of not more than $250 for a second or subsequentviolation of subsection 1.

3. The Board shall deposit any money received pursuantto this section in the account established pursuant to NRS 624.470.

(Added to NRS by 1999, 1970)

NRS 624.530 Boardretains authority to pursue disciplinary action against residential contractor. The provisions of NRS624.400 to 624.560, inclusive, donot limit the authority of the Board to take disciplinary action against aresidential contractor.

(Added to NRS by 1999, 1970)

NRS 624.540 Annualstatement of condition of account to Legislature; employment of necessarypersons; procurement of necessary equipment, supplies and services; interestcredited to account; limit on expenditures.

1. The Board shall:

(a) On or before February 1 of each year, prepare andsubmit to the Director of the Legislative Counsel Bureau for transmittal to theappropriate legislative committee if the Legislature is in session, or to theInterim Finance Committee if the Legislature is not in session, a statement ofthe condition of the account that is prepared in accordance with generallyaccepted accounting principles.

(b) Employ accountants as necessary for the performanceof the duties set forth in this section and pay any related expenses from themoney in the account. Except as otherwise provided in subsection 3, theexpenditures made by the Board pursuant to this paragraph must not exceed$10,000 in any fiscal year.

(c) Employ or contract with persons and procurenecessary equipment, supplies and services to be paid from or purchased withthe money in the account as may be necessary to monitor or process claims filedby injured persons that may result in a recovery from the account.

2. Any interest earned on the money in the accountmust be credited to the account. The Board may expend the interest earned onthe money in the account to increase public awareness of the account. Except asotherwise provided in subsection 3, the expenditures made by the Board for thispurpose must not exceed $50,000 in any fiscal year.

3. The total expenditures made by the Board pursuantto this section must not exceed 10 percent of the account in any fiscal year.

(Added to NRS by 1999, 1969)

NRS 624.550 Minimumbalance in account. Once an initial balance of$200,000 exists in the account, the Board shall maintain a minimum balance of$200,000 in the account.

(Added to NRS by 1999, 1970)

NRS 624.560 Regulations. The Board shall adopt such regulations as are necessary tocarry out the provisions of NRS 624.400to 624.560, inclusive, including,without limitation, regulations governing:

1. The disbursement of money from the account; and

2. The manner in which a complaint is filed with theBoard or its designee pursuant to NRS624.480.

(Added to NRS by 1999, 1970)

COMMISSION ON CONSTRUCTION EDUCATION

NRS 624.570 Creation;members; expenses; duties; powers; regulations.

1. The Commission on Construction Education is herebycreated.

2. The Commission consists of one member who is amember of the Board and six members appointed by the Governor as follows:

(a) Four members who are representatives of theconstruction industry; and

(b) Two members who have knowledge of constructioneducation programs.

3. Each member of the Commission serves a term of 3years.

4. The members of the Commission who are appointed bythe Governor serve without compensation, per diem allowance or reimbursementfor travel expenses. While engaged in the business of the Commission, themember who is a member of the Board shall receive from the Board the samesalary, per diem allowance and reimbursement for travel expenses he receiveswhile engaged in the business of the Board.

5. The Commission shall review programs of educationwhich relate to building construction and distribute grants from theConstruction Education Account created pursuant to NRS 624.580 for programs that theCommission determines qualify for such a grant.

6. The Board may adopt regulations which establish therules of procedure for meetings of the Commission.

7. The Commission shall adopt regulations providing:

(a) Procedures for applying for a grant of money fromthe Construction Education Account;

(b) Procedures for reviewing an application for a grantfrom the Construction Education Account; and

(c) Qualifications for receiving a grant from theConstruction Education Account.

(Added to NRS by 2001, 2408)

NRS 624.580 ConstructionEducation Account; administration.

1. There is hereby created a Construction EducationAccount as a separate account within the State General Fund.

2. Money deposited in the Account must be used:

(a) Solely for the purposes of construction educationand to pay the costs of the Commission on Construction Education as describedin accordance with subsection 3; and

(b) In addition to any other money provided forconstruction education from any other source.

3. The Commission on Construction Education shalladminister the Construction Education Account and shall disburse the money inthe Account as follows:

(a) At least 95 percent of the money deposited in theAccount must be used to fund programs of education which relate to buildingconstruction and which the Commission on Construction Education determinesqualify for grants; and

(b) Not more than 5 percent of the money deposited inthe Account may be reserved for operating expenses incurred by the Commissionon Construction Education pursuant to this section.

4. The unexpended and unencumbered balance, if any,remaining in the Construction Education Account at the end of each fiscal year,must remain in the Account.

(Added to NRS by 2001, 2409; A 2003, 173)

DISCLOSURES

NRS 624.600 Requireddisclosures by general building contractor. Ageneral building contractor shall provide in writing to the owner of asingle-family residence with whom he has contracted:

1. The name, license number, business address andtelephone number of:

(a) All subcontractors with whom he has contracted onthe project; and

(b) All persons who furnish material of the value of$500 or more to be used in the project.

2. A notice that a person described in subsection 1may record a notice of lien upon the residence of the owner and any building,structure and improvement thereon pursuant to the provisions of NRS 108.226.

3. An informational form, whose contents must beprescribed by the Board, regarding:

(a) Contractors pursuant to chapter624 of NRS; and

(b) Mechanics and materialmens liens pursuant to chapter 108 of NRS.

(Added to NRS by 1997, 2686)(Substituted in revisionfor NRS 624.321)

NRS 624.605 Availability to contractor of namesand addresses of subcontractors delinquent in payment of contributions forunemployment or industrial insurance. TheEmployment Security Division of the Department of Employment, Training andRehabilitation and the Administrator of the Division of Industrial Relations ofthe Department of Business and Industry shall make available, upon request, toany licensed contractor the names and addresses of subcontractors who are delinquentin paying the amounts owed by the subcontractor to:

1. TheDivision for benefits for unemployment pursuant to chapter612 of NRS; and

2. A private carrier that provides industrialinsurance in this State for premiums for industrial insurance.

(Added to NRS by 1983, 1350; A 1993, 1890; 1995, 634,2048; 1999, 1828)(Substitutedin revision for NRS 624.640)

RIGHTS, DUTIES AND LIABILITIES UNDER CERTAIN AGREEMENTS FORWORKS OF IMPROVEMENT

General Provisions

NRS 624.606 Definitions. As used in NRS 624.606to 624.630, inclusive, the words andterms defined in NRS 624.607 to 624.6086, inclusive, have the meaningsascribed to them in those sections.

(Added to NRS by 2001, 1615; A 2005, 1224, 1721)

NRS 624.607 Higher-tieredcontractor defined. Higher-tiered contractormeans a prime contractor or subcontractor who has entered into an oral or writtenagreement with a lower-tiered subcontractor pursuant to which the lower-tieredsubcontractor has agreed to provide work, materials or equipment for a work ofimprovement.

(Added to NRS by 2001, 1615; A 2005, 1721)

NRS 624.608 Lower-tieredsubcontractor defined. Lower-tiered subcontractormeans a subcontractor who has agreed in an oral or written agreement with ahigher-tiered contractor to provide work, materials or equipment for a work ofimprovement.

(Added to NRS by 2001, 1615; A 2005, 1722)

NRS 624.6084 Ownerdefined.

1. Owner means an owner or lessee of real propertyor any improvement who enters into an oral or written agreement with a primecontractor pursuant to which the prime contractor agrees to provide work,materials or equipment for a work of improvement.

2. The term includes, without limitation, an owner ofa planned unit development who enters into one or more oral or writtenagreements to construct a work of improvement in the planned unit developmentin the manner described in subsection 5 of NRS624.020.

(Added to NRS by 2005, 1223, 1721)

NRS 624.6086 Primecontractor defined. Prime contractor meansa contractor who enters into an oral or written agreement with an ownerpursuant to which the prime contractor agrees to provide work, materials orequipment for a work of improvement.

(Added to NRS by 2005, 1223, 1721)

Agreements Between Owner and Prime Contractor

NRS 624.609 Paymentof prime contractor during performance of agreement; grounds and procedure forwithholding amounts from payment; rights and duties after notice ofwithholding, notice of objection or notice of correction.

1. Except as otherwise provided in subsections 2 and 4and subsection 4 of NRS 624.622, if anowner of real property enters into a written or oral agreement with a primecontractor for the performance of work or the provision of materials orequipment by the prime contractor, the owner must:

(a) Pay the prime contractor on or before the date apayment is due pursuant to a schedule for payments established in a writtenagreement; or

(b) If no such schedule is established or if theagreement is oral, pay the prime contractor within 21 days after the date theprime contractor submits a request for payment.

2. If an owner has complied with subsection 3, theowner may:

(a) Withhold from any payment to be made to the primecontractor:

(1) A retention amount that, if the owner isauthorized to withhold a retention amount pursuant to the agreement, must notexceed 10 percent of the amount of the payment to be made;

(2) An amount equal to the sum of the value of:

(I) Any work or labor that has not beenperformed or materials or equipment that has not been furnished for whichpayment is being sought, unless the agreement otherwise allows or requires sucha payment to be made; and

(II) Costs and expenses reasonablynecessary to correct or repair any work which is the subject of the request forpayment and which is not materially in compliance with the agreement to theextent that such costs and expenses exceed 50 percent of the retention amountwithheld pursuant to subparagraph (1); and

(3) The amount the owner has paid or is requiredto pay pursuant to an official notice from a state agency or employee benefittrust fund, for which the owner is or may reasonably be liable for the primecontractor or his lower-tiered subcontractors in accordance with chapter 608, 612,616A to 616D,inclusive, or 617 of NRS; and

(b) Require as a condition precedent to the payment ofany amount due, lien releases furnished by the prime contractor and hislower-tiered subcontractors and suppliers in accordance with the provisions ofparagraphs (a) and (c) of subsection 4 of NRS108.2457.

3. If, pursuant to subparagraph (2) or (3) ofparagraph (a) of subsection 2 or paragraph (b) of subsection 2, an ownerintends to withhold any amount from a payment to be made to a prime contractor,the owner must give, on or before the date the payment is due, a written noticeto the prime contractor of any amount that will be withheld. The written noticeof withholding must:

(a) Identify the amount of the request for payment thatwill be withheld from the prime contractor;

(b) Give a reasonably detailed explanation of thecondition or the reason the owner will withhold that amount, including, withoutlimitation, a specific reference to the provision or section of the agreement,and any documents relating thereto, and the applicable building code, law orregulation with which the prime contractor has failed to comply; and

(c) Be signed by an authorized agent of the owner.

4. A prime contractor who receives a notice ofwithholding pursuant to subsection 3 or a notice of objection pursuant tosubparagraph (2) of paragraph (b) may:

(a) Give the owner a written notice and thereby disputein good faith and for reasonable cause the amount withheld, or the condition orreason for the withholding; or

(b) Correct any condition or reason for the withholdingdescribed in the notice of withholding and thereafter provide written notice tothe owner of the correction of the condition or reason for the withholding. Thenotice of correction must be sufficient to identify the scope and manner of thecorrection of the condition or reason for the withholding and be signed by anauthorized representative of the prime contractor. If an owner receives awritten notice from the prime contractor of the correction of a condition orreason for the withholding pursuant to this paragraph, the owner shall:

(1) Pay the amount withheld by the owner forthat condition or reason for the withholding on or before the date the nextpayment is due the prime contractor; or

(2) Object to the scope and manner of thecorrection of the condition or reason for the withholding, on or before thedate the next payment is due to the prime contractor, in a written statementwhich sets forth the condition or reason for the objection and which complieswith subsection 3. If the owner objects to the scope and manner of thecorrection of a condition or reason for the withholding, he shall nevertheless payto the prime contractor, along with the payment to be made pursuant to theprime contractors next payment request, the amount withheld for the correctionof the condition or reason for the withholding to which the owner no longerobjects.

5. Except as otherwise allowed in subsections 2, 3 and4, an owner shall not withhold from a payment to be made to a prime contractormore than the retention amount.

(Added to NRS by 2001, 1619; A 2005, 1722)

NRS 624.610 Groundsand procedure for stopping work or terminating agreement; change orders;damages and other remedies; rights of lower-tiered subcontractors; limitationson liability.

1. If :

(a) An owner fails to pay the prime contractor in thetime and manner required by subsection 1 or 4 of NRS 624.609;

(b) An owner fails to give the prime contractor writtennotice of any withholding in the time and manner required by subsection 3 or 4of NRS 624.609;

(c) After receipt of a notice of withholding givenpursuant to subsection 3 or 4 of NRS 624.609,the prime contractor gives the owner written notice pursuant to subsection 4 ofNRS 624.609 and thereby disputes in goodfaith and for reasonable cause the amount withheld or the condition or reasonfor the withholding; or

(d) Within 30 days after the date that a writtenrequest for a change order is submitted by the prime contractor to the owner,the owner fails to:

(1) Issue the change order; or

(2) If the request for a change order isunreasonable or does not contain sufficient information to make adetermination, give written notice to the prime contractor of the reasons whythe change order is unreasonable or explain that additional information andtime are necessary to make a determination,

the primecontractor may stop work after giving written notice to the owner at least 10days before stopping work.

2. If a prime contractor stops work pursuant toparagraph (a), (b) or (c) of subsection 1, the prime contractor may terminatethe agreement by giving written notice of termination to the owner afterstopping work but at least 15 days before terminating the agreement. If theprime contractor is paid the amount due before the date for termination of theagreement set forth in the written notice, the prime contractor shall notterminate the agreement and shall resume his work.

3. If an owner fails to issue a change order or givewritten notice to the prime contractor pursuant to the provisions of paragraph(d) of subsection 1:

(a) The agreement price must be increased by the amountsought in the request for a change order;

(b) The time for performance must be extended by theamount sought in the request for a change order;

(c) The prime contractor may submit to the owner a billor invoice for the labor, materials, equipment or services that are the subjectof the request for a change order; and

(d) The owner shall pay the prime contractor for suchlabor, materials, equipment or services with the next payment made to the primecontractor.

4. If the owner through his own act or neglect, orthrough an act or neglect of his agent, excluding acts of God, floods, fires,labor disputes, strikes or reasonable adjustments to work schedules, causes thework to be stopped for a period of 15 days or more, the prime contractor mayterminate the agreement if:

(a) The prime contractor gives written notice of hisintent to terminate to the owner at least 10 days before terminating theagreement; and

(b) The owner fails to allow work to resume within thetime set forth in the written notice given pursuant to paragraph (a).

5. If a prime contractor stops work pursuant tosubsection 1, the owner may terminate the agreement by giving the primecontractor written notice of his intent to terminate at least 15 days beforeterminating the agreement.

6. If the agreement is terminated pursuant tosubsection 4, or if the prime contractor stops work in accordance with thissection and the agreement is terminated pursuant to subsection 1 or 5, theprime contractor is entitled to recover from the owner payment in an amountfound by a trier of fact to be due the prime contractor, including, withoutlimitation:

(a) The cost of all work, labor, materials, equipmentand services furnished by and through the prime contractor, including anyoverhead the prime contractor and his lower-tiered subcontractors and suppliersincurred and profit the prime contractor and his lower-tiered subcontractorsand suppliers earned through the date of termination;

(b) The balance of the profit that the prime contractorand his lower-tiered subcontractors and suppliers would have received if theagreement had been performed in full;

(c) Interest determined pursuant to NRS 624.630; and

(d) The reasonable costs, including court andarbitration costs, incurred by the prime contractor and his lower-tieredsubcontractors in collecting the amount due.

In anyaction brought to enforce the rights or obligations set forth in this subsection,the trier of fact may award reasonable attorneys fees to the prime contractorand his lower-tiered subcontractors and suppliers or, if the trier of factdetermines that the prime contractor stopped work or terminated the agreementwithout a reasonable basis in law or fact, the trier of fact may awardreasonable attorneys fees and costs, including court and arbitration costs, tothe owner.

7. If a prime contractor stops work pursuant tosubsection 1, each lower-tiered subcontractor with whom the prime contractorhas entered into an agreement and who has not fully performed under thatagreement may also stop work on the work of improvement. If a prime contractorterminates an agreement pursuant to this section, all such lower-tieredsubcontractors may terminate their agreements with the prime contractor.

8. The right of a prime contractor to stop work orterminate an agreement pursuant to this section is in addition to all otherrights that the prime contractor may have at law or in equity and does notimpair or affect the right of a prime contractor to maintain a civil action orto submit any controversy arising under the agreement with the owner toarbitration.

9. No prime contractor or his lower-tieredsubcontractors or suppliers, or their respective sureties, may be held liablefor any delays or damages that an owner may suffer as a result of the primecontractor or lower-tiered subcontractors or suppliers stopping their work orthe provision of materials or equipment or terminating an agreement for areasonable basis in law or fact and in accordance with this section orreasonable cause and in accordance with this section or NRS 624.626.

(Added to NRS by 1975, 1382; A 1987, 533; 1989, 1535;1991, 146; 1999, 238;2001, 1622; 2005, 1723)

NRS 624.620 Paymentof prime contractor after work of improvement is available for use or occupancy;grounds and procedure for withholding amounts from payment; rights and dutiesafter notice of withholding or notice of correction; partial payments.

1. Except as otherwise provided in this section, anymoney remaining unpaid for the construction of a work of improvement is payableto the prime contractor within 30 days after:

(a) Occupancy or use of the work of improvement by theowner or by a person acting with the authority of the owner; or

(b) The availability of a work of improvement for itsintended use. The prime contractor must have provided to the owner:

(1)A written notice of availability on or before the day on which he claims thatthe work of improvement became available for use or occupancy; or

(2) A certificate of occupancy issued by theappropriate building inspector or other authority.

2. If the owner has complied with subsection 3, theowner may:

(a) Withhold payment for the amount of:

(1) Any work or labor that has not beenperformed or materials or equipment that has not been furnished for whichpayment is sought;

(2) The costs and expenses reasonably necessaryto correct or repair any work that is not materially in compliance with theagreement to the extent that such costs and expenses exceed 50 percent of theamount of retention being withheld pursuant to the terms of the agreement; and

(3) Money the owner has paid or is required topay pursuant to an official notice from a state agency, or employee benefittrust fund, for which the owner is liable for the prime contractor or hislower-tiered subcontractors in accordance with chapter608, 612, 616Ato 616D, inclusive, or 617 of NRS.

(b) Require, as a condition precedent to the payment ofany unpaid amount under the agreement, that lien releases be furnished by theprime contractor and his lower-tiered subcontractors and suppliers inaccordance with the provisions of paragraphs (a) and (c) of subsection 4 of NRS 108.2457.

3. If, pursuant to paragraph (a) of subsection 2, anowner intends to withhold any amount from a payment to be made to a primecontractor, the owner must, on or before the date the payment is due, givewritten notice to the prime contractor of any amount that will be withheld. Thewritten notice of withholding must:

(a) Identify the amount that will be withheld from theprime contractor;

(b) Give a reasonably detailed explanation of thecondition for which or the reason the owner will withhold that amount,including, without limitation, a specific reference to the provision or sectionof the agreement with the prime contractor, and any documents relating thereto,and the applicable building code, law or regulation with which the primecontractor has failed to comply; and

(c) Be signed by an authorized agent of the owner.

4. A prime contractor who receives a notice ofwithholding pursuant to subsection 3 may correct any condition or reason forthe withholding described in the notice of withholding and thereafter providewritten notice to the owner of the correction of the condition or reason forthe withholding. The notice of correction must be sufficient to identify thescope and manner of the correction of the condition or reason for thewithholding and be signed by an authorized representative of the primecontractor. If an owner receives a written notice from the prime contractor ofthe correction of a condition or reason for the withholding described in anowners notice of withholding pursuant to subsection 3, the owner must, within10 days after receipt of such notice:

(a) Pay the amount withheld by the owner for thatcondition or reason for the withholding; or

(b) Object to the scope and manner of the correction ofthe condition or reason for the withholding in a written statement that setsforth the reason for the objection and complies with subsection 3. If the ownerobjects to the scope and manner of the correction of a condition or reason forthe withholding, he shall nevertheless pay to the prime contractor, along withthe payment to be made pursuant to the prime contractors next payment request,the amount withheld for the correction of the condition or reason for thewithholding to which the owner no longer objects.

5. The partial occupancy or availability of a buildingrequires payment in direct proportion to the value of the part of the buildingwhich is partially occupied or partially available. For works of improvementwhich involve more than one building, each building must be consideredseparately in determining the amount of money which is payable to the primecontractor.

(Added to NRS by 1983, 425; A 1987, 557; 2001, 1624; 2003, 2619; 2005, 1224, 1726)

NRS 624.622 Requirementsconcerning notices; prohibited provisions; exemptions; requests forinformation.

1. A prime contractor shall provide a copy of anynotice given to an owner pursuant to subsection 1 or 2 of NRS 624.610 to each lower-tieredsubcontractor with whom the prime contractor has entered into an agreement.Upon receipt of payment pursuant to NRS 624.609,the prime contractor shall notify all such lower-tiered subcontractors inwriting of his receipt of payment.

2. A condition, stipulation or provision in anagreement which:

(a) Requires a prime contractor to waive any rightsprovided in this section, NRS 624.609, 624.610, 624.620or 624.630, or which limits thoserights;

(b) Relieves an owner of any obligation or liabilityimposed pursuant to NRS 624.606 to 624.630, inclusive; or

(c) Requires a prime contractor to waive, release orextinguish a claim or right for damages or an extension of time that the primecontractor may otherwise possess or acquire as a result of delay, acceleration,disruption or an impact event that is unreasonable under the circumstances,that was not within the contemplation of the parties at the time the agreementwas entered into, or for which the prime contractor is not responsible,

is againstpublic policy and is void and unenforceable.

3. All notices required pursuant to this section, NRS 624.609, 624.610 and 624.620 must be:

(a) Delivered personally, in which case the primecontractor shall obtain a notarized statement from the person who delivered thenotice as proof of delivery;

(b) Sent by facsimile and delivered by regular mail, inwhich case the prime contractor shall retain proof of a successful transmissionof the facsimile;

(c) Delivered by certified mail; or

(d) Delivered in the manner provided for in theagreement.

4. This section, NRS624.609, 624.610 and 624.620 do not apply to an agreementbetween:

(a) A prime contractor and a natural person who owns asingle-family residence for the performance of qualified services with respectto the residence; or

(b) A public body and a prime contractor for theperformance of work and labor on a public work.

5. Within 5 days after an owner receives a writtenrequest for the information set forth in paragraphs (a), (b) and (c) from alower-tiered subcontractor, the owner shall notify the lower-tieredsubcontractor in writing of the following:

(a) The date the owner made a specified payment to hisprime contractor;

(b) Whether the owner has paid the entire amount of aspecified payment to his prime contractor; and

(c) The amount withheld by the owner from a specifiedpayment to the prime contractor and the condition or reason for thewithholding.

(Added to NRS by 2001, 1620; A 2005, 1727)

Agreements Between Higher-Tiered Contractor andLower-Tiered Subcontractor

NRS 624.624 Paymentof lower-tiered subcontractor; grounds and procedure for withholding amountsfrom payment; rights and duties after notice of withholding, notice ofobjection or notice of correction.

1. Except as otherwise provided in this section, if ahigher-tiered contractor enters into:

(a) A written agreement with a lower-tieredsubcontractor that includes a schedule for payments, the higher-tiered contractorshall pay the lower-tiered subcontractor:

(1) On or before the date payment is due; or

(2) Within 10 days after the date thehigher-tiered contractor receives payment for all or a portion of the work,materials or equipment described in a request for payment submitted by thelower-tiered subcontractor,

whichever isearlier.

(b) A written agreement with a lower-tieredsubcontractor that does not contain a schedule for payments, or an agreementthat is oral, the higher-tiered contractor shall pay the lower-tieredsubcontractor:

(1) Within 30 days after the date thelower-tiered subcontractor submits a request for payment; or

(2) Within 10 days after the date thehigher-tiered contractor receives payment for all or a portion of the work,labor, materials, equipment or services described in a request for paymentsubmitted by the lower-tiered subcontractor,

whichever isearlier.

2. If a higher-tiered contractor has complied withsubsection 3, the higher-tiered contractor may:

(a) Withhold from any payment owed to the lower-tieredsubcontractor:

(1) A retention amount that the higher-tieredcontractor is authorized to withhold pursuant to the agreement, but theretention amount withheld must not exceed 10 percent of the payment that isrequired pursuant to subsection 1;

(2) An amount equal to the sum of the value of:

(I) Any work or labor that has not beenperformed or materials or equipment that has not been furnished for whichpayment is being sought, unless the agreement otherwise allows or requires sucha payment to be made; and

(II) Costs and expenses reasonablynecessary to correct or repair any work which is the subject of the request forpayment and which is not materially in compliance with the agreement to theextent that such costs and expenses exceed 50 percent of the retention amountwithheld pursuant to subparagraph (1); and

(3) The amount the owner or higher-tieredcontractor has paid or is required to pay pursuant to an official notice from astate agency or employee benefit trust fund, for which the owner orhigher-tiered contractor is or may reasonably be liable for the lower-tieredsubcontractor or his lower-tiered subcontractors in accordance with chapter 608, 612,616A to 616D,inclusive, or 617 of NRS; and

(b) Require as a condition precedent to the payment ofany amount due, lien releases furnished by the lower-tiered subcontractor andhis lower-tiered subcontractors and suppliers in accordance with the provisionsof paragraphs (a) and (c) of subsection 4 of NRS108.2457.

3. If, pursuant to subparagraph (2) or (3) ofparagraph (a) of subsection 2 or paragraph (b) of subsection 2, a higher-tieredcontractor intends to withhold any amount from a payment to be made to alower-tiered subcontractor, the higher-tiered contractor must give, on orbefore the date the payment is due, a written notice to the lower-tieredsubcontractor of any amount that will be withheld and give a copy of suchnotice to all reputed higher-tiered contractors and the owner. The writtennotice of withholding must:

(a) Identify the amount of the request for payment thatwill be withheld from the lower-tiered subcontractor;

(b) Give a reasonably detailed explanation of thecondition or the reason the higher-tiered contractor will withhold that amount,including, without limitation, a specific reference to the provision or sectionof the agreement with the lower-tiered subcontractor, and any documentsrelating thereto, and the applicable building code, law or regulation withwhich the lower-tiered subcontractor has failed to comply; and

(c) Be signed by an authorized agent of thehigher-tiered contractor.

4. A lower-tiered subcontractor who receives a noticeof withholding pursuant to subsection 3 or a notice of objection pursuant tosubparagraph (2) of paragraph (b) may:

(a) Give the higher-tiered contractor a written noticeand thereby dispute in good faith and for reasonable cause the amount withheldor the conditions or reasons for the withholding; or

(b) Correct any condition or reason for the withholdingdescribed in the notice of withholding and thereafter provide written notice tothe higher-tiered contractor of the correction of the condition or reason forthe withholding. The notice of correction must be sufficient to identify thescope and manner of the correction of the condition or reason for thewithholding and be signed by an authorized representative of the lower-tieredsubcontractor. If a higher-tiered contractor receives a written notice from thelower-tiered subcontractor of the correction of a condition or reason for thewithholding pursuant to this paragraph, the higher-tiered contractor shall:

(1) Pay the amount withheld by the higher-tieredcontractor for that condition or reason for the withholding on or before thedate the next payment is due the lower-tiered subcontractor; or

(2) Object to the scope and manner of thecorrection of the condition or reason for the withholding, on or before thedate the next payment is due to the lower-tiered subcontractor, in a writtenstatement which sets forth the condition or reason for the objection and whichcomplies with subsection 3. If the higher-tiered contractor objects to thescope and manner of the correction of a condition or reason for thewithholding, he shall nevertheless pay to the lower-tiered subcontractor, alongwith payment to be made pursuant to the lower-tiered subcontractors nextpayment request, the amount withheld for the correction of the conditions orreasons for the withholding to which the higher-tiered contractor no longerobjects.

5. Except as otherwise allowed in subsections 2, 3 and4, a higher-tiered contractor shall not withhold from a payment to be made to alower-tiered subcontractor more than the retention amount.

(Added to NRS by 2001, 1615; A 2005, 1728)

NRS 624.626 Groundsand procedure for stopping work or terminating agreement; change orders;damages and other remedies; rights of lower-tiered subcontractors after workstoppage or termination of agreement; limitations on liability.

1. If:

(a) A higher-tiered contractor fails to pay thelower-tiered subcontractor within the time provided in subsection 1 or 4 of NRS 624.624;

(b) A higher-tiered contractor fails to pay thelower-tiered subcontractor within 45 days after the 25th day of the month inwhich the lower-tiered subcontractor submits a request for payment, even if thehigher-tiered contractor has not been paid and the agreement contains a provisionwhich requires the higher-tiered contractor to pay the lower-tieredsubcontractor only if or when the higher-tiered contractor is paid;

(c) A higher-tiered contractor fails to give thelower-tiered subcontractor written notice of any withholding in the time andmanner required by subsection 3 or 4 of NRS624.624;

(d) After receipt of a notice of withholding pursuantto subsection 3 or 4 of NRS 624.624, thelower-tiered subcontractor gives the higher-tiered contractor written noticepursuant to subsection 4 of NRS 624.624and thereby disputes in good faith and for reasonable cause the amount withheldor the condition or reason for the withholding; or

(e) Within 30 days after the date that a writtenrequest for a change order is submitted by the lower-tiered subcontractor tothe higher-tiered contractor, the higher-tiered contractor fails to:

(1) Issue the change order; or

(2) If the request for a change order isunreasonable, give written notice to the lower-tiered subcontractor of thereasons why the change order is unreasonable,

thelower-tiered subcontractor may stop work under the agreement until payment isreceived if the lower-tiered subcontractor gives written notice to thehigher-tiered contractor at least 10 days before stopping work.

2. If a lower-tiered subcontractor stops work pursuantto paragraph (a), (c) or (d) of subsection 1, the lower-tiered subcontractormay terminate the agreement with the higher-tiered contractor by giving writtennotice of the termination to the higher-tiered contractor after stopping workbut at least 15 days before the termination of the agreement. If thelower-tiered subcontractor is paid the amount due before the date fortermination set forth in the written notice, the lower-tiered subcontractorshall not terminate the agreement and shall resume his work.

3. If a higher-tiered contractor fails to issue achange order or fails to give written notice pursuant to paragraph (e) ofsubsection 1:

(a) The agreement price must be increased by the amountsought in the request for a change order;

(b) The time for performance must be extended by theamount sought in the request for a change order;

(c) The lower-tiered subcontractor may submit to thehigher-tiered contractor a bill or invoice for the labor, materials, equipmentor services that are the subject of the request for a change order; and

(d) The higher-tiered contractor shall pay thelower-tiered subcontractor for such labor, materials, equipment or serviceswith the next payment made to the lower-tiered subcontractor.

4. If an owner or higher-tiered contractor through hisown act or neglect, or through an act or neglect of his agent, excluding actsof God, floods, fires, labor disputes, strikes or reasonable adjustments inwork schedules, causes the work to be stopped for a period of 15 days or more,the lower-tiered subcontractor may terminate the agreement if:

(a) The lower-tiered subcontractor gives written noticeof his intent to terminate to the higher-tiered contractor at least 10 daysbefore terminating the agreement; and

(b) The higher-tiered contractor fails to allow thelower-tiered subcontractor to resume the work within the time set forth in thewritten notice given pursuant to paragraph (a).

5. If a lower-tiered subcontractor stops work pursuantto paragraph (a), (c) or (d) of subsection 1, the higher-tiered contractor mayterminate the agreement by giving the lower-tiered subcontractor written noticeof his intent to terminate at least 15 days before terminating the agreement.

6. If the agreement is terminated pursuant tosubsection 4, or if the lower-tiered subcontractor stops work in accordancewith this section and the agreement is terminated pursuant to subsection 2 or5, the lower-tiered subcontractor is entitled to recover from the higher-tieredcontractor with whom he has entered into an agreement the amount found by atrier of fact to be due the lower-tiered subcontractor, including, withoutlimitation:

(a) The cost of all work, labor, materials, equipmentand services furnished by and through the lower-tiered subcontractor, includingany overhead the lower-tiered subcontractor and his lower-tiered subcontractorsand suppliers incurred and profit the lower-tiered subcontractor and hislower-tiered subcontractors and suppliers earned through the date oftermination;

(b) The balance of the profit that the lower-tieredsubcontractor and his lower-tiered subcontractors and suppliers would havereceived if the agreement had been performed in full;

(c) Interest determined pursuant to NRS 624.630; and

(d) The reasonable costs, including court costs andarbitration costs, incurred by the lower-tiered subcontractor and hislower-tiered subcontractors in collecting the amount due.

In anyaction brought to enforce the rights or obligations set forth in this subsection,the trier of fact may award reasonable attorneys fees to the lower-tiered subcontractorand his lower-tiered subcontractors and suppliers or, if the trier of factdetermines that the lower-tiered subcontractor stopped work or terminated theagreement without a reasonable basis in law or fact, the trier of fact mayaward reasonable attorneys fees and costs, including court costs andarbitration costs, to the higher-tiered contractor.

7. If a lower-tiered subcontractor stops work pursuantto this section, each lower-tiered subcontractor with whom the lower-tieredsubcontractor has entered into an agreement and who has not fully performedunder the agreement may also stop work on the work of improvement. If a lower-tieredsubcontractor terminates an agreement pursuant to this section, all of hislower-tiered subcontractors may terminate their agreements with thelower-tiered subcontractor.

8. The right of a lower-tiered subcontractor to stopwork or terminate an agreement pursuant to this section is in addition to allother rights that the lower-tiered subcontractor may have at law or in equityand does not impair or affect the right of a lower-tiered subcontractor tomaintain a civil action or to submit any controversy arising under theagreement to arbitration.

9. No lower-tiered subcontractor or his lower-tieredsubcontractors or suppliers, or their respective sureties, may be held liablefor any delays or damages that an owner or higher-tiered contractor may sufferas a result of the lower-tiered subcontractor and his lower-tieredsubcontractors and suppliers stopping their work or the provision of materialsor equipment or terminating an agreement for a reasonable basis in law or factand in accordance with this section.

(Added to NRS by 2001, 1617; A 2005, 1731)

NRS 624.628 Requirementsconcerning notices; prohibited provisions; requests for information.

1. A lower-tiered subcontractor shall provide a copyof any notice given to a higher-tiered contractor pursuant to this section or NRS 624.624 or 624.626 to each lower-tiered subcontractorwith whom the lower-tiered subcontractor has entered into an agreement and whohas not fully performed under the agreement. Upon receipt of payment pursuantto NRS 624.624, the lower-tieredsubcontractor shall notify all of his lower-tiered subcontractors in writing ofhis receipt of payment.

2. A lower-tiered subcontractor shall provide a copyof any notice given to a higher-tiered contractor pursuant to this section or NRS 624.624 or 624.626 to all other higher-tieredcontractors and the owner, if known. The failure of a lower-tieredsubcontractor to comply with this subsection does not invalidate any noticeotherwise properly given.

3. A condition, stipulation or provision in an agreementwhich:

(a) Requires a lower-tiered subcontractor to waive anyrights provided in this section or NRS624.624, 624.626 or 624.630 or which limits those rights;

(b) Relieves a higher-tiered contractor of anyobligation or liability imposed pursuant to this section, NRS 624.624, 624.626 or 624.630; or

(c) Requires a lower-tiered subcontractor to waive,release or extinguish a claim or right for damages or an extension of time thatthe lower-tiered subcontractor may otherwise possess or acquire as a result ofdelay, acceleration, disruption or an impact event that is unreasonable underthe circumstances, that was not within the contemplation of the parties at thetime the agreement was entered into, or for which the lower-tieredsubcontractor is not responsible,

is againstpublic policy and is void and unenforceable.

4. All notices required pursuant to this section or NRS 624.624 or 624.626 must be:

(a) Delivered personally, in which case thelower-tiered subcontractor shall obtain a notarized statement from the personwho delivered the notice as proof of delivery;

(b) Sent by facsimile and delivered by regular mail, inwhich case the lower-tiered subcontractor shall retain proof of a successfultransmission of the facsimile;

(c) Delivered by certified mail; or

(d) Delivered in the manner provided in the agreementbetween the higher-tiered contractor and the lower-tiered subcontractor.

5. Within 5 days after the owner or any higher-tieredcontractor receives a written request for the information set forth inparagraphs (a), (b) and (c) from a lower-tiered subcontractor with respect toan agreement that has not been fully performed, the owner or higher-tieredcontractor shall notify the lower-tiered subcontractor in writing of the following:

(a) The date the owner or higher-tiered contractor madea specified payment to the prime contractor or lower-tiered subcontractor;

(b) Whether the owner or higher-tiered contractor haspaid the prime contractor or lower-tiered subcontractor the entire amount of aspecified payment; and

(c) The amount withheld by the owner or higher-tieredcontractor of a specified payment to his prime contractor or lower-tieredsubcontractor and the condition or reason for the withholding.

(Added to NRS by 2001, 1618; A 2005, 1733)

Payment of Interest

NRS 624.630 Accrualof interest on money due; rate of interest. Any money which is payableto a prime contractor, higher-tiered contractor or lower-tiered subcontractorpursuant to NRS 624.609, 624.610, 624.620,624.624, 624.626 or 624.628 accrues interest from the time itbecomes due at a rate equal to the higher of:

1. The rate agreed upon in the agreement between theparties; or

2. The rate equal to the prime rate at the largestbank in this State, as determined by the Commissioner of Financial Institutionson January 1 or July 1, as the case may be, immediately preceding:

(a) The time at which the agreement was signed; or

(b) If the agreement was oral, the time at which theterms of the agreement were agreed to by the parties,

plus 4percent until the date of payment.

(Added to NRS by 1987, 557; A 2005, 1734)

UNLAWFUL ACTS; PENALTIES

NRS 624.700 Engagingin business or submitting bid without license unlawful; prosecution; damages;bid submitted in violation of section void.

1. It is unlawful for any person or combination ofpersons to:

(a) Engage in the business or act in the capacity of acontractor within this State; or

(b) Submit a bid on a job situated within this State,

withouthaving an active license therefor as provided in this chapter, unless thatperson or combination of persons is exempted from licensure pursuant to NRS 624.031.

2. The district attorneys in this State shallprosecute all violations of this section which occur in their respectivecounties, unless the violations are prosecuted by the Attorney General. Uponthe request of the Board, the Attorney General shall prosecute any violation ofthis section in lieu of prosecution by the district attorney.

3. In addition to any other penalty imposed pursuantto this chapter, a person who is convicted of violating subsection 1 may berequired to pay:

(a) Court costs and the costs of prosecution;

(b) Reasonable costs of the investigation of theviolation to the Board;

(c) Damages he caused as a result of the violation upto the amount of his pecuniary gain from the violation; or

(d) Any combination of paragraphs (a), (b) and (c).

4. If a person submits a bid or enters into a contractin violation of subsection 1, the bid or contract shall be deemed void abinitio.

[1:Art. VII:186:1941; A 1953, 521](NRS A 1967, 1042;1969, 939; 1987, 771; 1995, 927; 1999, 2957)

NRS 624.710 Administrativefine for engaging in business or submitting bid without license; finecumulative; action for fine; deposit of fine in Construction Education Account.

1. If any person violates the provisions of subsection1 of NRS 624.700, the Board may imposefor each violation an administrative fine in an amount that is not less than$1,000 and not more than $50,000.

2. The Board shall, by regulation, establish standardsfor use by the Board in determining the amount of an administrative fineimposed pursuant to this section. The standards must include, withoutlimitation, provisions requiring the Board to consider:

(a) The gravity of the violation;

(b) The good faith of the person; and

(c) Any history of previous violations of theprovisions of this chapter committed by the person.

3. An administrative fine imposed pursuant to thissection is in addition to any other penalty imposed pursuant to this chapter.

4. If the administrative fine and any interest imposedpursuant to NRS 624.300 is not paid whendue, the fine and interest, if any, must be recovered in a civil action broughtby the Attorney General on behalf of the Board.

5. All administrative fines and interest collectedpursuant to this section must be deposited with the State Treasurer for creditto the Construction Education Account created pursuant to NRS 624.580.

(Added to NRS by 1995, 926; A 2001, 2415; 2005, 1208)

NRS 624.720 Unlawfuladvertising; disconnection of telephone number or beeper listed in unlawfuladvertisement.

1. It is unlawful for any person, including a personexempt under the provisions of NRS 624.031,to advertise as a contractor unless he has a license in the appropriate classificationestablished by the provisions of NRS 624.215and 624.220.

2. It is unlawful for a licensed contractor to disseminate,as part of any advertising by the contractor, any false or misleading statementor representation of material fact that is intended, directly or indirectly, toinduce another person to use the services of the contractor or to enter intoany contract with the contractor or any obligation relating to such a contract.

3. All advertising by a licensed contractor mustinclude the name of his company and the number of his license.

4. If, after giving notice and holding a hearingpursuant to NRS 624.291, the Boarddetermines that a person has engaged in advertising in a manner that violatesthe provisions of this section, the Board may, in addition to any penalty,punishment or disciplinary action authorized by the provisions of this chapter,issue an order to the person to cease and desist the unlawful advertising andto:

(a) Cause any telephone number included in theadvertising, other than a telephone number to a provider of paging services, tobe disconnected.

(b) Request the provider of paging services to changethe number of any beeper which is included in the advertising or disconnect thepaging services to such a beeper, and to inform the provider of paging servicesthat the request is made pursuant to this section.

5. If a person fails to comply with paragraph (a) ofsubsection 4 within 5 days after the date that he receives an order pursuant tosubsection 4, the Board may request the Public Utilities Commission of Nevadato order the appropriate provider of telephone service to disconnect anytelephone number included in the advertisement, except for a telephone numberto a provider of paging services. If a person fails to comply with paragraph(b) of subsection 4 within 5 days after the date he receives an order pursuantto subsection 4, the Board may request the provider of paging services toswitch the beeper number or disconnect the paging services provided to theperson, whichever the provider deems appropriate.

6. If the provider of paging services receives arequest from a person pursuant to subsection 4 or a request from the Boardpursuant to subsection 5, it shall:

(a) Disconnect the paging service to the person; or

(b) Switch the beeper number of the paging serviceprovided to the person.

If theprovider of paging services elects to switch the number pursuant to paragraph(b), it shall not forward or offer to forward the paging calls from theprevious number, or provide or offer to provide a recorded message thatincludes the new beeper number.

7. As used in this section:

(a) Advertising includes, but is not limited to, theissuance of any sign, card or device, or the permitting or allowing of any signor marking on a motor vehicle, in any building, structure, newspaper, magazineor airway transmission, on the Internet or in any directory under the listingof contractor with or without any limiting qualifications.

(b) Beeper means a portable electronic device whichis used to page the person carrying it by emitting an audible or a vibratingsignal when the device receives a special radio signal.

(c) Provider of paging services means an entity,other than a public utility, that provides paging service to a beeper.

(d) Provider of telephone service has the meaningascribed to it in NRS 707.355.

(Added to NRS by 1975, 1159; A 1987, 1101; 1999, 2857, 2965; 2001, 213; 2005, 1208)

NRS 624.730 Unlawfulto sit for examination on behalf of another; unlawful to provide any portion ofexamination to another.

1. Except as otherwise provided in this chapter, anyperson other than an applicant for a contractors license who takes anexamination of the Board on behalf of the applicant, is guilty of amisdemeanor.

2. Any person who, without the authorization of theBoard, provides any portion of an examination of the Board to another person,is guilty of a misdemeanor.

(Added to NRS by 1999, 2954)

NRS 624.740 Unlawfulto act in joint venture or combination without additional license.

1. It is unlawful for any two or more licensees, whoselicenses have been limited by the Board to contracts not exceeding certainmonetary sums and each of whom has been issued a license to engage separatelyin the business or to act separately in the capacity of a contractor withinthis State, jointly to submit a bid or otherwise act in the capacity of acontractor within this State without first having secured an additional licensefor acting in the capacity of such a joint venture or combination in accordancewith the provisions of this chapter as provided for an individual,copartnership or corporation.

2. A licensee whose license is limited to contractsnot exceeding certain monetary sums cannot be a party to a joint venture unlesssuch licensee has secured an additional license for such joint venture.

[4:Art. II:186:1941; A 1951, 47](NRS A 1963,695)(Substituted in revision for NRS 624.290)

NRS 624.750 Otherunlawful acts or omissions; penalties for unlawful acts and omissions.

1. It is unlawful for a person to commit any act oromission described in subsection 1 of NRS624.3012, subsection 2 of NRS 624.3013,NRS 624.3014 or subsection 1, 3 or 7 ofNRS 624.3016.

2. Unless a greater penalty is otherwise provided by aspecific statute, any person who violates subsection 1, NRS 624.305, subsection 1 of NRS 624.700 or NRS 624.720 or 624.740:

(a) For a first offense, is guilty of a misdemeanor andshall be punished by a fine of not more than $1,000, and may be furtherpunished by imprisonment in the county jail for not more than 6 months.

(b) For the second offense, is guilty of a grossmisdemeanor and shall be punished by a fine of not less than $2,000 nor morethan $4,000, and may be further punished by imprisonment in the county jail fornot more than 1 year.

(c) For the third or subsequent offense, is guilty of acategory E felony and shall be punished by a fine of not less than $5,000 normore than $10,000 and may be further punished by imprisonment in the stateprison for not less than 1 year and not more than 4 years.

3. It is unlawful for a person to receive money forthe purpose of obtaining or paying for services, labor, materials or equipmentif the person:

(a) Willfully fails to use that money for that purposeby failing to complete the improvements for which the person received the moneyor by failing to pay for any services, labor, materials or equipment providedfor that construction; and

(b) Wrongfully diverts that money to a use other thanthat for which it was received.

4. Unless a greater penalty is otherwise provided by aspecific statute, any person who violates subsection 3:

(a) If the amount of money wrongfully diverted is$1,000 or less, is guilty of a gross misdemeanor and shall be punished by afine of not less than $2,000 nor more than $4,000, and may be further punishedby imprisonment in the county jail for not more than 1 year.

(b) If the amount of money wrongfully diverted is morethan $1,000, is guilty of a category E felony and shall be punished by a fineof not less than $5,000 nor more than $10,000, and may be further punished byimprisonment in the state prison for not less than 1 year and not more than 4years.

5. Imposition of a penalty provided for in thissection is not precluded by any disciplinary action taken by the Board againsta contractor pursuant to the provisions of NRS624.300 to 624.305, inclusive.

[2:Art. VII:186:1941; A 1955, 378](NRS A 1967, 639;1971, 182; 1975, 1161; 1981, 634; 1991, 146; 1999, 2966; 2001, 2983; 2003, 1903)

PROSECUTION OF VIOLATIONS

NRS 624.800 Statuteof limitations for certain violations. For anyviolation of the provisions of NRS 624.005to 624.750, inclusive, that ispunishable as a misdemeanor, an indictment must be found, or an information orcomplaint filed, within 2 years after the commission of the offense.

(Added to NRS by 2005, 1200)

RESIDENTIAL SWIMMING POOLS AND SPAS

NRS 624.900 Definitions. As used in NRS 624.900to 624.965, inclusive, unless thecontext otherwise requires, the words and terms defined in NRS 624.905, 624.910 and 624.915 have the meanings ascribed to themin those sections.

(Supplied in revision)

NRS 624.905 Contractdefined. Contract means any contract oragreement in which a contractor agrees to perform work concerning a residentialpool or spa.

(Added to NRS by 1997, 2698; A 2001, 2977; 2005, 2377)(Substitutedin revision for part of NRS 597.713)

NRS 624.910 Contractordefined. Contractor means a person licensedpursuant to the provisions of this chapter who performs work concerning aresidential pool or spa.

(Added to NRS by 1997, 2698; A 2001, 2977; 2005, 2377)(Substitutedin revision for part of NRS 597.713)

NRS 624.915 Work concerning a residential poolor spa defined.

1. Work concerning aresidential pool or spa means any of the following acts, if performed for afee:

(a) The design,construction, repair, maintenance, restoration, alteration or improvement ofany residential swimming pool or spa, regardless of use, including the repairor replacement of existing equipment or the installation of new equipment, asnecessary; or

(b) Any consultation orsupervision concerning such work.

2. The scope of such work includes layout, excavation,operation of construction pumps for removal of water, steelwork, constructionof floors, installation of gunite, fiberglass, tile and coping, installation ofall perimeter and filter piping, installation of all filter equipment andchemical feeders of any type, plastering of the interior, construction ofdecks, installation of housing for pool equipment and installation of packagedpool heaters.

3. The scope of such work also includes theinstallation of plumbing, including, without limitation, connections to potablewater, and the installation of gas lines if the contractor holdsclassifications for such work pursuant to NRS624.925.

(Added to NRS by 1997, 2698; A 2001, 2977; 2005, 2377)(Substitutedin revision for part of NRS 597.713)

NRS 624.920 Licenseor other authorization required to perform work concerning residential pool orspa. A person shall not, directly orindirectly, perform or offer to perform, for a fee, any work concerning aresidential pool or spa or any consultation or supervision concerning such workor otherwise hold himself out as being able to perform such acts for a fee,unless the person holds:

1. A license as a contractor or subcontractor understate law which authorizes the person to perform such acts for a fee; or

2. Any other license, certificate, registration orpermit under state law which authorizes the person to perform such acts for afee.

(Added to NRS by 2005, 2376)

NRS 624.925 Classificationsof licensing.

1. The Board shall adopt regulations to provide forclassifications of licensing that authorize a contractor who performs workconcerning a residential pool or spa to perform, in connection with such work,the installation of:

(a) Plumbing, including, without limitation,connections to potable water; and

(b) Gas lines.

2. The regulations adopted by the Board must include,without limitation, regulations establishing the qualifications, training andexaminations that are required for such classifications.

(Added to NRS by 2005, 2376)

NRS 624.930 Contractorand subcontractor required to obtain permits and meet certain requirements;certain owner-builders required to submit information regarding bonds andinsurance; supervision and control of work; license or other authorizationrequired to perform certain acts for owner-builder.

1. Any contractor or subcontractor who performs workconcerning a residential pool or spa shall, regardless of whether the work isperformed under the direction of a builder who is also the owner of theproperty being improved:

(a) Apply for and obtain all applicable permits for theproject; and

(b) Meet all applicable requirements imposed pursuantto this chapter and any regulations adopted by the Board with respect tocontracts for work concerning a residential pool or spa.

2. If a contractor or subcontractor performs workconcerning a residential pool or spa and the work is performed under thedirection of a builder who is also the owner of the property being improved,the owner shall comply with all state and local laws and ordinances for thesubmission of names, licenses and information concerning any required bonds andinsurance with respect to the contractors and subcontractors working on theproject.

3. With respect to a contract for work concerning aresidential pool or spa, the work performed pursuant to such a contract must besupervised and controlled directly by the qualified employee or qualifiedofficer of the contractor.

4. If work concerning a residential pool or spa isperformed under the direction of a builder who is exempt from having to obtaina license as a contractor because the builder is also the owner of the propertybeing improved, a person shall not, directly or indirectly, perform or offer toperform, for a fee, any act as a consultant, adviser, assistant or aide to thebuilder for the purposes of the project, including, without limitation, any actassociated with obtaining permits for the project, or otherwise hold himselfout as being able to perform such acts for a fee, unless the person holds:

(a) A license as a contractor or subcontractor understate law which authorizes the person to perform such acts for a fee; or

(b) Any other license, certificate, registration orpermit under state law which authorizes the person to perform such acts for afee.

(Added to NRS by 2001, 2976; A 2003, 1233; 2005, 2377)(Substitutedin revision for NRS 597.715)

NRS 624.935 Dutiesof contractor regarding commencement, performance and completion of work;contract to explain rights of customer; conditions for final payment.

1. A contractor who receives an initial down paymentor deposit of $1,000 or 10 percent of the aggregate contract price, whicheveris less, for work concerning a residential pool or spa shall start the workwithin 30 days after the date all necessary permits for the work, if any, areissued, unless the person who made the payment agrees in writing to a longerperiod to apply for the necessary permits or start the work or to longerperiods for both.

2. A contractor who receives money for work concerninga residential pool or spa shall complete the work diligently and shall notrefuse to perform any work for any 30-day period.

3. If satisfactory payment is made for any portion ofthe work performed, the contractor shall, before any further payment is made,furnish the owner a full and unconditional release from any claim of mechanicslien for that portion of the work for which payment has been made.

4. The requirements of subsection 3 do not apply ifthe contract provides for the contractor to furnish a bond for payment andperformance or joint control covering full performance and completion of thecontract and the bond or joint control is furnished by the contractor.

5. A contract for work concerning a residential poolor spa must contain a written statement explaining the rights of the customerunder NRS 624.900 to 624.965, inclusive, and other relevantstatutes.

6. A contractor may require final payment for thefinal stage or phase of the construction of a residential pool or spa after thecompletion of the plastering and the final inspection by the local buildingdepartment, unless any installation of equipment, decking or fencing that isrequired in the contract is not completed.

(Added to NRS by 1997, 2698; A 2001, 2978; 2005, 2378)(Substitutedin revision for NRS 597.716)

NRS 624.940 Mandatoryelements and required information in contracts; contractor to furnish copy ofsigned documents and receipt for money paid; certain contracts void; contractorto apply for and obtain necessary permits.

1. The Board shall adopt by regulation mandatoryelements to be included in all contracts to be used by contractors for workconcerning a residential pool or spa. Such mandatory elements must not bewaived or limited by contract or in any other manner. On and after October 1,2001, any contract entered into between a contractor and the owner of asingle-family residence for work concerning a residential pool or spa mustcomply with the standard elements adopted by the Board. A contract that doesnot comply with the standard elements adopted by the Board is void and unenforceableagainst the owner.

2. Any such contract in an amount of more than $1,000must contain in writing at least the following information:

(a) The name of the contractor and his business addressand license number.

(b) The name and mailing address of the owner and theaddress or legal description of the property.

(c) The date of execution of the contract.

(d) The estimated date of completion of all work to beperformed under the contract.

(e) A description of the work to be performed under thecontract.

(f) The total amount to be paid to the contractor bythe owner for all work to be performed under the contract, including allapplicable taxes.

(g) The amount, not to exceed $1,000 or 10 percent ofthe aggregate contract price, whichever is less, of any initial down payment ordeposit paid or promised to be paid to the contractor by the owner before thestart of construction.

(h) A statement that the contractor has provided theowner with the notice and informational form required by NRS 624.600.

(i) A statement that any additional work to beperformed under the contract, whether or not pursuant to a change order, whichwill require the owner to pay additional money and any other change in theterms in the original contract must be agreed to in writing by the parties andincorporated into the original contract as a change order. A change order isnot enforceable against the owner contracting for work concerning a residentialpool or spa unless the change order clearly sets forth the scope of work to becompleted and the price to be charged for the changes and is signed by theowner.

(j) A plan and scale drawing showing the shape, size,dimensions and the specifications for the construction and equipment for theresidential pool or spa and for other home improvements, and a description ofthe work to be done, the materials to be used and the equipment to beinstalled, and the agreed consideration for the work.

(k) Except as otherwise provided in this subsection,the dollar amount of any progress payment and the stage of construction atwhich the contractor will be entitled to collect progress payments during thecourse of construction under the contract. The schedule of payments must showthe amount of each payment as a sum in dollars and cents. The schedule ofpayments must not provide for the contractor to receive, nor may the contractoractually receive, payments in excess of 100 percent of the value of the workperformed on the project at any time, excluding finance charges, except for aninitial down payment or deposit as authorized by subsection 1 of NRS 624.935 or the regulations adopted bythe Board. With respect to a contract executed before October 1, 2001, if anyschedule of payments set forth in the contract does not comply with theprovisions of this chapter or any regulations adopted pursuant thereto:

(1) The obligation of the owner to make paymentsin accordance with the payment schedule shall be deemed void and unenforceable;and

(2) The lender, if any, may not initiateproceedings to enforce the payment of any applicable loan unless and until thecontract is reformed or otherwise amended to comply with those provisions oflaw.

Theprovisions of this paragraph do not apply if the contractor has furnished abond for payment and performance covering full performance and completion ofthe contract and the cost of the bond is included in the price of the projector if the contractor builds a residential pool or spa as part of the originalbuilding plan pursuant to which the contractor builds a single-family residenceon the premises.

(l) If the contract provides for payment of acommission to a salesperson out of the contract price, a statement that thepayment must be made on a pro rata basis in proportion to the schedule ofpayments made to the contractor by the disbursing party in accordance with theprovisions of paragraph (k).

Except asotherwise provided in subsection 5, the contract may contain such otherconditions, stipulations or provisions as to which the parties may agree.

3. The contract must contain:

(a) A method whereby the owner may initial provisionsof the contract, thereby indicating that those provisions have been read andare understood.

(b) In close proximity to the signatures of the ownerand the contractor, a notice stating that the owner:

(1) May contact the Board if assistance isneeded to clarify any of the provisions of the contract that the owner does notfully understand; and

(2) Has the right to request a bond for paymentand performance if such a bond is not otherwise required pursuant to NRS 624.270.

4. At the time the owner signs the contract, thecontractor shall furnish him a legible copy of all documents signed and awritten and signed receipt for any money paid to the contractor by the owner.All written information provided in the contract must be printed in at least10-point bold type.

5. A condition, stipulation or provision in a contractthat requires a person to waive any right provided by NRS 624.900 to 624.965, inclusive, or relieves a person ofan obligation or liability imposed by those sections is void. Failure to complywith the requirements of NRS 624.900 to 624.965, inclusive, renders a contract voidand unenforceable against the owner.

6. The contractor shall apply for and obtain allnecessary permits.

(Added to NRS by 1997, 2699; A 2001, 2978; 2005, 2378)(Substitutedin revision for NRS 597.719)

NRS 624.945 Standardsfor advertisements; prohibited advertising practices.

1. The Board shall adopt by regulation standards foradvertisements used by contractors in connection with the solicitation or saleof contracts for work concerning residential pools or spas.

2. The regulations adopted pursuant to subsection 1must prohibit a contractor from employing bait and switch advertising orotherwise intentionally publishing, displaying or circulating any advertisementwhich is misleading or inaccurate in any material particular or whichmisrepresents any of the goods or services sold or furnished by the contractorto members of the public.

3. The Board shall, in adopting the standards requiredby subsection 1, give consideration to the provisions of chapter 598 of NRS relating to advertisementsthat constitute deceptive trade practices and, to the extent practicable, adoptstandards that are at least as stringent as those provisions.

4. A contractor shall not cause to be published ordisplay or circulate any advertisement that does not comply with the standardsadopted by the Board pursuant to subsection 1.

5. As used in this section, bait and switchadvertising has the meaning ascribed to it in NRS482.351.

(Added to NRS by 2001, 2975; A 2005, 2380)(Substitutedin revision for NRS 597.7191)

NRS 624.950 Limitationson contractors involvement with entities engaged in certain lending andfinancial services.

1. Except as otherwise provided in this section and NRS 624.955, a contractor who performs workconcerning a residential pool or spa shall not act as, or carry out the dutiesof, an officer, director, employee or owner of a bonding company, financecompany, or any other corporation or business entity who cosigns, underwrites,obtains a deed of trust for, issues, sells, purchases or acquires a loan tofinance work concerning a residential pool or spa.

2. The provisions of this section do not prohibit acontractor from owning, holding or possessing, either directly or indirectlythrough a mutual fund or any other financial arrangement or investment plan,any stocks or other securities issued by a company, corporation or businessentity described in subsection 1 if:

(a) The stocks or other securities are offered openlyto the public through a securities exchange; and

(b) The contractor does not own, hold or possess acontrolling interest in the company, corporation or business entity.

(Added to NRS by 2001, 2976; A 2003, 1234; 2005, 2381)(Substitutedin revision for NRS 597.7192)

NRS 624.955 Limitationson certain lending and financial practices.

1. A contract for work concerning a residential poolor spa is not enforceable against the owner if the obtaining of a loan for allor a portion of the contract price is a condition precedent to the contractunless all of the following requirements are satisfied:

(a) A third party agrees to make the loan or give thefinancing.

(b) The owner agrees to accept the loan or financing.

(c) The owner does not rescind the loan or financingtransaction within the period prescribed for rescission pursuant to the Truth inLending Act, 15 U.S.C. 1601 et seq., or chapter598 of NRS, if applicable.

2. Unless and until all applicable requirements ofsubsection 1 are satisfied, a contractor shall not:

(a) Perform or deliver any work, labor, material orservices; or

(b) Represent in any manner that the contract isenforceable or that the owner has any obligation under the contract.

3. A contract for work concerning a residential poolor spa is not enforceable against the owner if the contractor provides a loanor gives financing for all or a portion of the contract price unless all of thefollowing requirements are satisfied:

(a) The owner agrees to accept the loan or financing.

(b) The owner does not rescind the loan or financingtransaction within the period prescribed for rescission pursuant to the Truthin Lending Act, 15 U.S.C. 1601 et seq., or chapter598 of NRS, if applicable.

4. Unless and until all applicable requirements ofsubsection 3 are satisfied, a contractor shall not:

(a) Perform or deliver any work, labor, material orservices; or

(b) Represent in any manner that the contract isenforceable or that the owner has any obligation under the contract.

5. A contract for work concerning a residential poolor spa is not enforceable against the owner if the contractor receives from athird party, either directly or indirectly, remuneration or any other thing ofvalue for a loan to finance the work and that fact is not disclosed in writingin the contract.

6. As used in this section, third party means abonding company, finance company, or any other corporation or business entitywho cosigns, underwrites, obtains a deed of trust for, issues, sells, purchasesor acquires a loan to finance work concerning a residential pool or spa.

(Added to NRS by 2001, 2976; A 2005, 2381)(Substitutedin revision for NRS 597.7194)

NRS 624.960 Contractorwho commits certain violations may be required to obtain services ofconstruction control.

1. If a contractor who performs work concerning aresidential pool or spa is determined by the Board to have violated:

(a) One or more of the provisions of NRS 624.301 to 624.305, inclusive, or 624.920, 624.935or 624.940; or

(b) Any regulation adopted by the Board with respect tocontracts for work concerning a residential pool or spa,

the Boardmay require that the contractor obtain the services of a construction controlfor each contract that the contractor enters into for work concerning a residentialpool or spa.

2. The contractor may not:

(a) Be related to the construction control or to anemployee or agent of the construction control; or

(b) Hold, directly or indirectly, a financial interestin the business of the construction control.

3. As used in this section, construction control hasthe meaning ascribed to it in NRS 627.050.

(Added to NRS by 2001, 2975; A 2005, 2382)(Substitutedin revision for NRS 597.7196)

NRS 624.965 Groundsfor disciplinary action; unlawful acts; penalties.

1. A violation of any provision of NRS 624.900 to 624.965, inclusive, or any regulationadopted by the Board with respect to contracts for work concerning a residentialpool or spa by a contractor constitutes cause for disciplinary action pursuantto NRS 624.300.

2. It is unlawful for a person to violate any provisionof NRS 624.900 to 624.965, inclusive.

3. Any person who violates any provision of NRS 624.900 to 624.965, inclusive:

(a) For a first offense, is guilty of a misdemeanor andshall be punished by a fine of not more than $1,000, and may be furtherpunished by imprisonment in the county jail for not more than 6 months.

(b) For the second offense, is guilty of a grossmisdemeanor and shall be punished by a fine of not less than $2,000 nor morethan $4,000, and may be further punished by imprisonment in the county jail fornot more than 1 year.

(c) For the third or subsequent offense, is guilty of aclass E felony and shall be punished by a fine of not less than $5,000 nor morethan $10,000 and may be further punished by imprisonment in the state prisonfor not less than 1 year and not more than 4 years.

4. The imposition of a penalty provided for in thissection is not precluded by any disciplinary action taken by the Board againsta contractor pursuant to the provisions of NRS624.300 to 624.305, inclusive.

(Added to NRS by 2001, 2977; A 2005, 2382)(Substitutedin revision for NRS 597.7198)

 

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