Menu
Button: Make a Payment Button: Newsletter Mailing List

Icon: Healthcare LawHands-On Experience

Providing legal advice

and services since 1977

NRS 624.240 - Issuance of licenses; use of examinations to investigate, classify and qualify applicants; additional qualifications for master’s license; transitory provision, etc....

NEVADA

NRS 624.240 Issuance of licenses; use of examinations to investigate, classify and qualify applicants; additional qualifications for master’s license; transitory provision.


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

2. If a natural person passes the technical examination given by the Board on or after July 1, 1985, to qualify him for a classification established pursuant to this chapter, demonstrates to the Board the degree of experience and knowledge required in the regulations of the Board, and is granted a license, he is qualified for a master’s license, if issued by any political subdivision, in the classification for which the examination was given, if the examination required him to demonstrate his knowledge and ability to:
(a) Utilize and understand;
(b) Direct and supervise work in compliance with; and
(c) Perform and apply any calculations required to ensure that work performed is in compliance with,
the applicable codes, standards and regulations.


3. If a natural person qualified for a license before July 1, 1985, in accordance with NRS 624.260 in a trade for which a master’s license is required by any political subdivision, and if the license is active on or after July 1, 1985, and if the person so qualified wishes to obtain a master’s license, he must pass either the appropriate examination given by the Board on or after July 1, 1985, in accordance with NRS 624.260 and the regulations of the Board, or the examination given by the political subdivision in the trade for which a master’s license is required.
[1:Art. IV:186:1941; A 1945, 296; 1953, 521; 1955, 378]—(NRS A 1985, 1056)
NRS 624.241 Program for issuance of license in expedited manner. The Board may establish a program for the issuance of a license in an expedited manner. The Board shall not allow the operation of the program for the issuance of a license in an expedited manner to affect adversely the amount of time the Board requires to issue any other contractor’s license.
(Added to NRS by 1999, 2177)
NRS 624.245 Prohibition of certain violators from examination. The Board may prohibit a person who has been convicted of violating NRS 624.700 or 624.740 from taking a written or oral examination for a contractor’s license for a period of not more than 6 months from the date of his conviction.
(Added to NRS by 1975, 1159; A 1995, 927)
NRS 624.250 Application for license: Contents; fee; contributions to Construction Education Account. [Effective on the date of the repeal of the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]

1. To obtain or renew a license, an applicant must submit to the Board an application in writing containing:
(a) The statement that the applicant desires the issuance of a license under the terms of this chapter.
(b) The street address or other physical location of the applicant’s place of business.
(c) The name of a person physically located in this State for service of process on the applicant.
(d) The street address or other physical location in this State and, if different, the mailing address, for service of process on the applicant.
(e) The names and physical and mailing addresses of any owners, partners, officers, directors, members and managerial personnel of the applicant.
(f) Any information requested by the Board to ascertain the background, financial responsibility, experience, knowledge and qualifications of the applicant
(g) All information required to complete the application.

2. The application must be:
(a) Made on a form prescribed by the Board in accordance 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 for the issuance or renewal of a license, a method for allowing an applicant to make a monetary contribution to the Construction Education Account created pursuant to NRS 624.580. The application form must state in a clear and conspicuous manner that a contribution to the Construction Education Account is voluntary and is in addition to any fees required for licensure. If the Board receives a contribution from an applicant, the Board shall deposit the contribution with the State Treasurer for credit to the Construction Education Account.

[2:Art. IV:186:1941; 1931 NCL § 1474.23]—(NRS A 1997, 2113; 1999, 2957; 2001, 2411, effective on the date of the repeal of the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings)NRS 624.253 Application for one or more classifications; additional application and fee for license may be required.


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


2. An additional application and license fee may be charged for qualifying or classifying a licensee in additional classifications. (Added to NRS by 1967, 1594)

NRS 624.254 Issuance or renewal of license under name likely to result in confusion or mistake prohibited. No license may be issued or renewed 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 the Board determines that it is likely to result in confusion or mistake; or
3. The Board determines is likely to mislead the general public.


(Added to NRS by 1987, 1138; A 1993, 926)
NRS 624.2545 Denial of application for issuance or renewal of license: Notice; request for hearing; hearing.


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


2. A notice of denial must include, without limitation, a statement which explains that the applicant has a right to a hearing before the Board if the applicant submits a written request for such a hearing to the Board within 60 days after the notice of denial is sent to the address of the applicant pursuant to this section.


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


4. Except as otherwise provided in this subsection, if the Board receives notice from an applicant pursuant to subsection 3, the Board shall hold a hearing on the decision to deny the application of the applicant within 90 days after the date the Board receives notice pursuant to subsection 3. 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 days after the date the Board receives notice pursuant to subsection 3.
(Added to NRS by 2001, 2409)


NRS 624.256 Proof of industrial insurance; notification of Fraud Control Unit for Industrial Insurance of failure to obtain industrial insurance.

1. Before granting an original or renewal of a contractor’s license to any applicant, the Board shall require that the applicant submit to the Board:
(a) Proof of industrial insurance and insurance for occupational diseases which covers his employees;
(b) A copy of his certificate of qualification as a self-insured employer which was issued by the Commissioner of Insurance;
(c) If the applicant is a member of an association of self-insured public or private employers, a copy of the certificate issued to the association by the Commissioner of Insurance; or
(d) An affidavit signed by the applicant affirming that he is not subject to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS because:
(1) He has no employees;
(2) He is not or does not intend to be a subcontractor for a principal contractor; and
(3) He has not or does not intend to submit a bid on a job for a principal contractor or subcontractor.


2. The Board shall notify the Fraud Control Unit for Industrial Insurance established pursuant to NRS 228.420 whenever the Board learns that an applicant or holder of a contractor’s license has engaged in business as or acted in the capacity of a contractor within this State without having obtained industrial insurance or insurance 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 Applicant or licensee to demonstrate experience, knowledge and financial responsibility; qualifications concerning experience and knowledge; limitations on qualifications of natural person.


1. The Board shall 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 principles of the contracting business as the Board deems necessary for the safety and protection of the public.

2. An applicant or licensee may qualify in regard to his experience and knowledge in the following ways:
(a) If a natural person, he may qualify by personal appearance or by the appearance of his responsible managing employee.
(b) If a copartnership, a corporation or any other combination or organization, it may qualify by the appearance of the responsible managing officer or member of the personnel of the applicant firm.
K If an applicant or licensee intends to qualify pursuant to this subsection by the appearance of another person, the applicant or licensee shall submit to the Board such information as the Board determines is necessary to demonstrate the duties and responsibilities of the other person so appearing with respect to the supervision and control of the operations of the applicant or licensee relating to construction.

3. The natural person 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 or employee of that person or firm and when his principal or employer is actively engaged as a contractor shall exercise authority in connection with his principal or employer’s contracting business in the following manner:
(a) To make technical and administrative decisions;
(b) To hire, superintend, promote, transfer, lay off, discipline or discharge other employees and to direct them, either by himself or through others, or effectively to recommend such action on behalf of his principal or employer; and
(c) To devote himself solely to his principal or employer’s business and not to take any other employment which would conflict with his duties under this subsection.


4. A natural person may not qualify on behalf of another for more than one active license unless:
(a) One person owns at least 25 percent of each licensee for which he qualifies; or
(b) One licensee owns at least 25 percent of the other licensee.


5. Except as otherwise provided in subsection 6, in addition to the other requirements set forth in this section, each applicant for licensure as a contractor must have had, within the 10 years immediately preceding the filing of his application for licensure, at least 4 years of experience as a journeyman, foreman, supervising employee or contractor in the specific classification in which he is applying for licensure. Training received in a program offered at an accredited college or university or an equivalent program accepted by the Board may be used to satisfy not more than 3 years of experience required pursuant to this subsection.


6. If the applicant who is applying for licensure has previously qualified for a contractor’s license in the same classification in which he is applying for licensure, the experience required pursuant to subsection 5 need not be accrued within the 10 years immediately preceding the application.

7. As used in this section, “journeyman” means a person who:
(a) Is fully qualified to perform, without supervision, work in the classification in which he is applying for licensure; or
(b) Has successfully completed:
(1) A program of apprenticeship for the classification in which he is applying for licensure 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 Financial responsibility of applicant or licensee: Demonstration required. A licensee or an applicant for a contractor’s license must prove his financial responsibility by demonstrating that his past and current financial solvency and expectations for financial solvency in the future are such as to provide the Board with a reasonable expectation that the licensee or applicant can successfully do business as a contractor without jeopardy to the public health, safety and welfare.
(Added to NRS by 1999, 2953)

NRS 624.263 Financial responsibility of applicant or licensee: Standards and criteria for determination.


1. The financial responsibility of a licensee or an applicant for a contractor’s license must be established independently of and without reliance on any assets or guarantees of any owners or managing officers of the licensee or applicant, but the financial responsibility of any owners or managing officers of the licensee or applicant may be inquired into and considered as a criterion in determining the financial responsibility of the licensee or applicant.

2. The financial responsibility of an applicant for a contractor’s license or of a licensed contractor must be determined by using the following standards and criteria in connection with each applicant or contractor 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 moral turpitude.
(i) Prior suspension or revocation of a contractor’s license in Nevada or elsewhere.
(j) An adjudication of bankruptcy or any other proceeding under the federal bankruptcy laws, including:
(1) A composition, arrangement or reorganization proceeding;
(2) The appointment of a receiver of the property of the applicant or contractor or any officer, director, associate or partner thereof under the laws of this State or the United States; or
(3) The making of an assignment for the benefit of creditors.
(k) Form of business organization, corporate or otherwise.
(l) Information obtained from confidential financial references and credit reports.
(m) Reputation for honesty and integrity of the applicant or contractor or any officer, director, associate or partner thereof.

3. A licensed contractor shall, as soon as it is reasonably practicable, notify the Board in writing upon the filing of a petition or application relating to the contractor that initiates any proceeding, appointment or assignment set forth in paragraph (j) of subsection 2. The written notice must be accompanied by:
(a) A copy of the petition or application filed with the court; and
(b) A copy of any order of the court which is relevant to the financial responsibility of the contractor, including any order appointing a trustee, receiver or assignee.

4. Before issuing a license to an applicant who will engage in residential construction or renewing the license of a contractor who engages in residential construction, the Board may require the applicant or licensee to establish his financial responsibility by submitting to the Board:
(a) A financial statement prepared by a certified public accountant; and
      (1) Prepared by a certified public accountant; or
      (2) Submitted on a form or in a format prescribed by the Board together with an affidavit which verifies the accuracy of the financial statement
(b) A statement setting forth the number of building permits issued to and construction projects completed by the licensee during the immediately preceding year and any other information required by the Board. The statement submitted pursuant to this paragraph must be provided on a form approved by the Board.

5. In addition to the requirements set forth in subsection 4, the Board may require a licensee to establish his financial responsibility at any time.

6. An applicant for an initial contractor’s license or a licensee applying for the renewal of a contractor’s license has the burden of demonstrating his financial responsibility to the Board, if the Board requests him to do so.
(Added to NRS by 1967, 1594; A 1969, 939; 1993, 926; 1999, 2958; 2001, 2412)

NRS 624.264 Financial responsibility of applicant or licensee: Additional requirements for certain applicants and licensees engaged in residential construction.

1. In addition to any other requirements set forth in this chapter, if an applicant will engage in residential construction and the applicant or the natural person qualifying on behalf of the applicant pursuant to NRS 624.260 has not held a contractor’s license issued pursuant to this chapter within the 2 years immediately preceding the date that the application is submitted to the Board, the Board shall require the applicant to establish his financial responsibility by submitting to the Board:

(a) A financial statement that is prepared by an independent certified public accountant; and
  1) as or     
  (2) Submitted on a form or in a format prescribed by the Board together with an affidavit which verifies the accuracy of the financial statement
(b) Any other information required by the Board.

2. Before the Board may issue a contractor’s license to the applicant, the Board must determine whether, based on the financial information concerning the applicant, it would be in the public interest to do any or all of the following:
(a) Require the applicant to obtain the services of a construction control with respect to any money that the applicant requires a purchaser of a new residence to pay in advance to make upgrades to the new residence. If the Board imposes such a requirement, the applicant may not:
(1) Be related to the construction control or to an employee or agent of the construction control; or
(2) Hold, directly or indirectly, a financial interest in the business of the construction control.
(b) Establish an aggregate monetary limit on the contractor’s license, which must be the maximum combined monetary limit on all contracts that the applicant may undertake or perform as a licensed contractor at 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 is in effect; and
(2) During that period, may increase or decrease the limit as the Board deems appropriate.

3. If the Board issues a contractor’s license to an applicant described in subsection 1, for the first 2 years after the issuance of the license, the licensee must submit to the Board, with each application for renewal of the license:
(a) A financial statement that is prepared by an independent certified public accountant; and
as or (1) Prepared by an independent certified public accountant; or
      (2) Submitted on a form or in a format prescribed by the Board together with an affidavit which verifies the accuracy of the financial statement; and
(b) A statement setting forth the number of building permits issued to and construction projects completed by the licensee during the immediately preceding year and any other information required by the Board. The statement submitted pursuant to this paragraph must be provided on a form approved by the Board.

4. Before the Board may renew the contractor’s license of the licensee, the Board must determine whether, based on the financial information concerning the licensee, it would be in the public interest to do any or all of the following:
(a) Require the licensee to obtain the services of a construction control with respect to any money that the licensee requires a purchaser of a new residence to pay in advance to make upgrades to the new residence. If the Board imposes such a requirement, the licensee may not:
(1) Be related to the construction control or to an employee or agent of the construction control; or
(2) Hold, directly or indirectly, a financial interest in the business of the construction control.
(b) Establish an aggregate monetary limit on the contractor’s license, which must be the maximum combined monetary limit on all contracts that the licensee may undertake or perform as a licensed contractor at 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 is in effect; and
(2) During that period, may increase or decrease the limit as the Board deems appropriate.
(Added to NRS by 2003, 1897)
NRS 624.265 Good character of applicant or licensed contractor and certain associates; grounds for establishment of lack of good character; background investigation; confidentiality of results of background investigation; fee for processing fingerprints; Board may obtain criminal history.

1. An applicant for a contractor’s license or a licensed contractor and each officer, director, partner and associate thereof must possess good character. Lack of character may be established by showing that the applicant or licensed contractor, or any officer, director, partner or associate thereof, has:
(a) Committed any act which would be grounds for the denial, suspension or revocation of a contractor’s 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 of a crime arising out of, in connection with or related to the activities of such person in such a manner as to demonstrate his unfitness to act as a contractor, and the time for appeal has elapsed or the judgment of conviction has been affirmed on appeal; or
(d) Had a license revoked or suspended for reasons that would preclude the granting or renewal of a license for which the application has been made.

2. Upon the request of the Board, an applicant for a contractor’s license, and any officer, director, partner or associate of the applicant, must submit to the Board completed fingerprint cards and a form authorizing an investigation of the applicant’s background and the submission of his fingerprints to the Central Repository for Nevada Records of Criminal History and the Federal Bureau of Investigation. The fingerprint cards and authorization form submitted must be those that are provided to the applicant by the Board. The applicant’s fingerprints may be taken by an agent of the Board or an agency of law enforcement.

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

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

5. The Board may obtain records of a law enforcement agency 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,
K for the investigation of a licensee or an applicant for a contractor’s license.
(Added to NRS by 1967, 1595; A 1995, 2476; 1999, 2180, 2959; 2003, 1497)
NRS 624.268 Payment of child support: Statement by applicant for license; grounds for denial of license; duty of Board. [Expires by limitation on the date of the repeal of the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]

1. (a) A natural person who applies for the issuance of a contractor's license shall include the social security number of the applicant in the application submitted to the Board.
(b)A natural person who applies for the issuance or renewal of a contractor’s license shall submit to the Board the statement prescribed by the Welfare Division of the Department of Human Resources pursuant to NRS 425.520. The statement must be completed and signed by the applicant.

2. The Board shall include the statement required pursuant to subsection 1 in:
(a) The application or any other forms that must be submitted for the issuance or renewal of the license; or
(b) A separate form prescribed by the Board.

3. A contractor’s license may not be issued or renewed by the Board if the applicant is a natural person who:
(a) Fails to submit the statement required pursuant to subsection 1; or
(b) Indicates on the statement submitted pursuant to subsection 1 that he is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order.

4. If an applicant indicates on the statement submitted pursuant to subsection 1 that he is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order, the Board shall advise the applicant to contact the district attorney or other public agency enforcing the order to determine the actions that the applicant may take to satisfy the arrearage.
(Added to NRS by 1997, 2112)
NRS 624.270 Bond and deposit: Requirements; amount; conditions.

1. Before issuing a contractor’s license to any applicant, the Board shall require that the applicant:
(a) File with the Board a surety bond in a form acceptable to the Board executed by the contractor as principal with a corporation authorized to transact surety business in the State of Nevada as surety; or
(b) In lieu of such a bond, establish with the Board a cash deposit as provided in this section.

2. Before granting renewal of a contractor’s license to any applicant, the Board shall require that the applicant file with the Board satisfactory evidence that his surety bond or cash deposit is in full force, unless the applicant has been relieved of the requirement as provided in this section.

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

4. Except as otherwise provided in subsection 6, the amount of each bond or cash deposit required by this section must be fixed by the Board with reference to the contractor’s financial and professional responsibility 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 be conditioned that the total aggregate liability of the surety for all claims is limited to the face amount of the bond irrespective of the number of years the bond is in force. A bond required by this section must be provided by a person whose long-term debt obligations are rated “A” or better by a nationally recognized rating agency. The Board may increase or reduce the amount of any bond or cash deposit if evidence supporting such a change in the amount is presented to the Board at the time application is made for renewal of a license or at any hearing conducted pursuant to NRS 624.2545 or 624.291. Unless released earlier pursuant to subsection 5, any cash deposit may be withdrawn 2 years after termination of the license in connection with which it was established, or 2 years after completion of all work authorized by the Board after termination of the license, whichever occurs later, if there is no outstanding claim against it.

5. After a licensee has acted in the capacity of a licensed contractor in the State of Nevada for not less than 5 consecutive years, the Board may relieve the licensee of the requirement of filing a bond or establishing a cash deposit if evidence supporting such relief is presented to the Board. The Board may at any time thereafter require the licensee to file a new bond or establish a new cash deposit as provided in subsection 4:
(a) If evidence is presented to the Board supporting this requirement;
(b) Pursuant to subsection 6, after notification of a final written decision by the Labor Commissioner; or
(c) Pursuant to subsection 7.
K If a licensee is relieved of the requirement of establishing a cash deposit, the deposit may be withdrawn 2 years after such relief is granted, if there is no outstanding claim against it.

6. If the Board is notified by the Labor Commissioner pursuant to NRS 607.165 or otherwise receives notification that three substantiated claims for wages have been filed against a contractor within a 2-year period, the Board shall require the contractor to file a bond or establish a cash deposit in an amount fixed by the Board. The contractor shall maintain the bond or cash deposit for the period required by the Board.

7. If a contractor who engages in the repair, restoration, improvement or construction of a residential pool or spa:
(a) Becomes licensed pursuant to this chapter on or after July 1, 2001;
(b) Is determined by the Board to have violated one or more of the provisions of NRS 624.301 to 624.305, inclusive;
(c) Enters into a contract on or after July 1, 2001, that is later found to be void and unenforceable against the owner pursuant to subsection 5 of NRS 597.719 or pursuant to any regulation adopted by the Board with respect to contracts for the repair, restoration, improvement or construction of a residential pool or spa; or
(d) Becomes licensed pursuant to this chapter on or after July 1, 2001
 
K the contractor shall comply with the provisions of subsection 8.

8. A contractor described in subsection 7 shall, before commencing work for the repair, restoration, improvement or construction of a residential pool or spa, obtain:
(a) A performance bond in an amount equal to not less than 50 percent of the amount of the contract, conditioned upon the faithful performance of the contract in accordance with the plans, specifications and conditions set forth in the contract. The performance bond must be solely for the protection of the owner of the property to be improved.
(b) A payment bond in an amount equal to not less than 50 percent of the amount of the contract. The payment bond must be solely for the protection of persons supplying labor or materials to the contractor, or to any of his subcontractors, in carrying out the provisions of the contract.
K A bond required pursuant to this subsection must be provided by a person whose long-term debt obligations are rated “A” or better by a nationally recognized rating agency. The contractor shall maintain the bond for the period required by the Board. The contractor shall furnish to the building department of the city or county, as applicable, in which the work will be carried out, a copy of any bond.

9. As used in this section, “substantiated claim for wages” has the meaning ascribed to it in NRS 607.165. [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)

NRS 624.273 Bond and deposit: Person benefited; actions; payment by surety without action by court; 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 State of Nevada for the benefit of any person who:
(a) As owner of the property to be improved entered into a construction contract with the contractor and is damaged by failure of the contractor to perform the contract or to remove liens filed against the property;
(b) As an employee of the contractor performed labor on or about the site of the construction covered by the contract;
(c) As a supplier or materialman furnished materials or equipment for the construction covered by the contract; or
(d) Is injured by any unlawful act or omission of the contractor in the performance of a contract.

2. Any person claiming against the bond or deposit may bring an action in a court of competent jurisdiction on the bond or against the Board on the deposit for the amount of damage he has suffered to the extent covered by the bond or deposit. No action may be commenced on the bond or deposit 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 shall notify 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, K whichever occurs first.

3. Upon receiving a request from a person for whose benefit a bond or deposit is required, the Board shall notify him that:
(a) A bond is in effect or that a deposit has been made, and the amount of either;
(b) There is an action against a bond, if that is the case, and the court, the title and number of the action and the amount sought by the plaintiff; and
(c) There is an action against the Board, if that is the case, and the amount sought by the plaintiff.

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

5. The surety or the Board may bring an action for interpleader against all claimants upon the bond or deposit. If an action for interpleader is commenced, the surety or the Board must serve each known claimant and publish notice of the action at least once each week for 2 weeks in a newspaper of general circulation in the county where the contractor has his principal place of business. The surety is entitled to deduct its costs of the action, including publication, from its liability under the bond. The Board is entitled to deduct its costs of the action, including attorney’s fees and publication, from the deposit.

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

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

8. The Board may not claim against the bond or deposit required pursuant to NRS 624.270 for the payment of an administrative fine imposed for a violation of the provisions of this chapter.
(Added to NRS by 1965, 351; A 1971, 181, 383; 1981, 1746; 1985, 761; 1999, 2181, 2960)

NRS 624.275 Notice of claim paid against contractor’s bond by surety; cancellation of contractor’s bond by surety; notification to contractor of claim against or cancellation of bond; duties of Board and contractor; revocation or suspension of license.

1. With respect to a surety bond that a licensed contractor maintains in accordance with NRS 624.270, or  in lieu of filing a bond, establish with the Board a cash deposit as provided in this section.
(a) The surety shall give prompt notice to the Board of any claims paid against the bond of the licensed contractor.
(b) The surety may cancel the bond upon giving 60 days’ notice to the Board and to the contractor by certified mail.

2. Upon receipt 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 the bond that his license will be suspended or revoked unless he furnishes an equivalent bond or establishes an equivalent cash deposit before a date set by the Board.

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

4. The notice mailed to the contractor by the Board pursuant to subsection 2 or 3 must be addressed to his latest address of record in the office of the Board.

5. If the contractor 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 the Board, if the notice was provided to the contractor pursuant to subsection 2; or
(b) The bond is cancelled, if the notice was provided to the contractor pursuant to subsection 3.
(Added to NRS by 1965, 351; A 1987, 1140; 1989, 852; 1999, 2182)

4. If a licensee is relieved of the requirement of establishing a cash deposit pursuant to this section, the deposit may be withdrawn 2 years after such relief is granted, if there is no outstanding claim against it.

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

6. The amount of each bond or cash deposit required by this section must be fixed by the Board with reference to the contractor's financial 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 be continuous in form and must be conditioned that the total aggregate liability of the surety for all claims is limited to the face amount of the bond irrespective of the number of years the bond is in force.

7. A bond required pursuant to subsection 1 must be provided by a person whose long-term debt obligations are rated "A" or better by a nationally recognized rating agency. The Board may increase or reduce the amount of any bond or cash deposit if evidence supporting such a change in the amount is presented to the Board at the time application is made for renewal of a 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 in connection with which it was established or 2 years after completion of all work authorized by the Board after termination of the license, whichever occurs later, if there is no outstanding claim against it.

9. Each bond or deposit required pursuant to this section must be in favor of the State of Nevada solely for the benefit of any consumer who entered into a contract with the contractor to perform work concerning a residential pool or spa and:
   (a) Is damaged by failure of the contractor to perform the contract or to remove liens filed against the property; or
   (b) Is injured by any unlawful act or omission of the contractor in the performance of a contract.

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

11. If an action is commenced on the bond, the surety that executed the bond shall notify 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, whichever occurs first.

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

13. The Board shall adopt regulations necessary to carry out the provisions of this section, including, without limitation, regulations concerning:
   (a) The determination of the amount of a bond pursuant to this section;
   (b) The form of bond required pursuant to this section;
   (c) The time within which an applicant or licensee must comply with the provisions of this section; and
   (d) Procedures to contest the amount of a bond required pursuant to this section.

14. The Board shall immediately suspend the license of a contractor who fails to post the bond or provide the deposit required pursuant to this section. Failure by a licensee for 6 months to post the bond or provide the deposit required pursuant to this section constitutes grounds for 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 to perform work concerning a residential pool or spa.
   (b) "Work concerning a residential pool or spa" has the meaning ascribed to it in NRS 624.915.http://fish.blogs.nytimes.com/

 
NRS 624.276 Applicants for issuance or renewal of license who engage in repair, restoration, improvement or construction of residential pools or spas may be required to file bond for protection of consumers.


1. Before granting an original contractor’s license to, or renewing the contractor’s license of, an applicant who engages or will engage in the repair, restoration, improvement or construction of residential pools or spas, the Board may, in addition to any other conditions for the issuance or renewal of a license, require the applicant to file with the Board a bond for the protection of consumers in an amount fixed by the Board.

2. A bond required pursuant to subsection 1 is in addition to, may not be combined with and does not replace any other bond required pursuant to the provisions of this chapter. A contractor required to file a bond pursuant to subsection 1 shall maintain the bond for 2 years or for such longer period as the Board may require.

3. A bond required pursuant to subsection 1 must be provided by a person whose long-term debt obligations are rated “A” or better by a nationally recognized rating agency.
(Added to NRS by 2001, 2981)

NRS 624.280 Regulations concerning fees; limitation on amount. The Board may adopt regulations fixing the fee for an application, the fee for an examination and the annual fee for a license to be paid by applicants and licensees. Except as otherwise provided in NRS 624.281, the fee for:
1. An application must not exceed $550.
2. A license must not exceed $450 annually.
3. An examination must not exceed $300.

[1:Art. VI:186:1941; A 1951, 47; 1953, 521]—(NRS A 1959, 869; 1967, 1593; 1981, 634; 1987, 1140; 1997, 506; 1999, 2182)

NRS 624.281 Fee for license issued in expedited manner; reimbursement to Board for costs and expenses; regulations concerning application for license issued in expedited manner.

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

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

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

4. The Board shall adopt regulations prescribing the procedures for making an application pursuant to this section. (Added to NRS by 1999, 2177)

NRS 624.282 Inactive status of license: Application; effect; duration; regulations.

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

2. If the application is granted, the licensee shall not engage in any work or activities that require a contractor’s license in this State unless he is returned to active status.

3. A person whose license has been placed on inactive status pursuant to this section is exempt from:
(a) The requirement to execute and maintain a bond pursuant to NRS 624.270; and
(b) The requirement to qualify in regard to his experience and knowledge pursuant to NRS 624.260.

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

5. The Board shall not refund any portion of the renewal fee of a contractor’s license that was paid before the license was placed on inactive status.

6. The Board shall adopt regulations prescribing the:
(a) Procedures for making an application pursuant to this section;
(b) Procedures and terms upon which a person whose license has been placed on inactive status may resume work or activities that require a contractor’s license; and
(c) Fees for the renewal of the inactive status of a license.
(Added to NRS by 1999, 2177)

NRS 624.283 License: Expiration; renewal; financial statement; reinstatement; cancellation. [Effective until the date of the repeal of the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]

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

2. A license may be renewed by submitting to the Board:
(a) An application for renewal;
(b) The statement required pursuant to NRS 624.268 if the holder of the license is a natural person;
(c) The fee for renewal fixed by the Board; and
(d) Any assessment required pursuant to NRS 624.470 if the holder of the license is a residential contractor as defined in NRS 624.450.

3. The Board may require a licensee to demonstrate his financial responsibility at any time through the submission of:
(a) A financial statement that is prepared by an independent certified public accountant; and or  submitted on a form or in a format prescribed by the Board together with an affidavit which verifies the accuracy of 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 to subsection 1, the licensee may have his license reinstated upon filing an application for renewal within 6 months after the date of suspension and paying, in addition to the fee for renewal, a fee for reinstatement fixed by the Board, if he is otherwise in good standing and there are no complaints pending against him. If he is otherwise not in good standing or there is a complaint pending, the Board shall require him to provide a current financial statement prepared by an independent certified public accountant or establish other conditions for reinstatement. If the licensee is a natural person, his application for renewal must be accompanied by the statement required pursuant to NRS 624.268. A license which is not reinstated within 6 months after it is automatically suspended may be cancelled by the Board, and a new license may be issued only upon application for an original contractor’s license.
(Added to NRS by 1969, 943; A 1977, 87; 1987, 1140; 1997, 2113, 2689; 1999, 520, 1970, 2961, 2967; 2001, 141)

NRS 624.283 License: Expiration; renewal; financial statement; reinstatement; cancellation. [Effective on the date of the repeal of the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings.]

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

2. A license may be renewed by submitting to the Board:
(a) An application for renewal;
(b) The fee for renewal fixed by the Board; and
(c) Any assessment required pursuant to NRS 624.470 if the holder of the license is a residential contractor as defined in NRS 624.450.

3. The Board may require a licensee to demonstrate his financial responsibility at any time through the submission of:
(a) A financial statement that is prepared by an independent certified public accountant; and
(b) If the licensee performs residential construction, such additional documentation as the Board deems appropriate.

4. If a license is automatically suspended pursuant to subsection 1, the licensee may have his license reinstated upon filing an application for renewal within 6 months after the date of suspension and paying, in addition to the fee for renewal, a fee for reinstatement fixed by the Board, if he is otherwise in good standing and there are no complaints pending against him. If he is otherwise not in good standing or there is a complaint pending, the Board shall require him to provide a current financial statement prepared by an independent certified public accountant or establish other conditions for reinstatement. A license which is not reinstated within 6 months after it is automatically suspended may be cancelled by the Board, and a new license may be issued only upon application for an original contractor’s license.
(Added to NRS by 1969, 943; A 1977, 87; 1987, 1140; 1997, 2113, 2689; 1999, 520, 1970, 2961, 2967; 2001, 141, effective on the date of the repeal of the federal law requiring each state to establish procedures for withholding, suspending and restricting the professional, occupational and recreational licenses for child support arrearages and for noncompliance with certain processes relating to paternity or child support proceedings)

NRS 624.284 License: Limitation of scope. A contractor’s license issued pursuant to this chapter does not authorize a contractor to construct or repair a mobile home, manufactured home or commercial coach.
(Added to NRS by 1997, 212)

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

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

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

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

4. If the licensee fails to replace the person originally qualified within the 30-day period, his license may be suspended or revoked.
(Added to NRS by 1967, 1595; A 1987, 613)

NRS 624.288 Display of name and license on motor vehicle. A licensee shall display on each commercial motor vehicle registered under his name, his name and the number of his license, in letters and numbers approximately 1 1/2 inches high.
(Added to NRS by 1987, 1101)—(Substituted in revision for NRS 624.306)