Celebrating 75 Years of Serving Nevada’s Legal, Business, Government, and Civic Communities

Nevada Legislative Update: Construction Industry

The September 2023 edition of Communique’ magazine features brief summaries of select highlights of legislation passed during the 82nd Session of the Nevada State Legislature 2023. Phil Mannelly published write-ups of seven important laws relating to contractor licensing and citation resolution, highway construction, and public works construction. Phil’s summaries are linked and provided below.

Contractor Licensing and Citation Resolution 

  • AB 22: Revises provisions related to unlicensed contractor activity. As revised, if the first offense of unlicensed contractor activity does not involve theft or fraud, the Board is no longer required to report the same to the applicable district attorney for potential prosecution in addition to the penalties imposed by the Board. Now, the Board is only required to report second or subsequent violations, or a first violation involving theft or fraud. Effective upon passage and approval (now). 
  • AB 23: A contractor subject to potential citation from the Contractors Board may request an informal conference with the Contractors Board to attempt to achieve a settlement resolution before proceeding to a formal hearing. A contractor must request an informal conference with 15 days of service of the citation at issue. The Contractors Board must hold a hearing within 90 days of receipt of written notice of contest in certain instances. This process applies to citations issued after October 1, 2023.
  • AB 27: Previously, the licensing laws merely required that a general building contractor could contract to provide management and counseling services on a construction project for a professional fee, regardless of the licensure classification(s) required by the prime contractor on that project. Now, a general building contractor that will provide management and counseling services must hold the applicable contractor’s license(s) that would be required by the prime contractor on the project. Effective upon passage and approval (now).
  • AB 29: Each application for a contractor’s license requires certain references to verify the applicant’s experience. This law establishes that it would be a violation of licensing laws for a licensee (licensed contractor) to make any false or misleading statement, or omit a material fact, on the reference source for another’s licensure application. Effective upon passage and approval (now).

Public Works Construction

  • SB 82: Revises provisions related to the Apprentice Utilization Act. Currently, each contractor or subcontractor must ensure that a certain percentage of hours worked within each apprenticed craft are performed by an apprentice(s) on each public work — 3% on horizontal projects and 10% on vertical projects. Now, the required percentages must be achieved across all public works performed by each contractor throughout a calendar year, rather than on each public work. Also creates various penalties for non-compliance and what constitutes a “good faith effort” that may otherwise a penalty for non-compliance. Effective January 1, 2024.

Highway Construction

  • SB 85: Revises provisions related to the retention that may lawfully be withheld by the Nevada Department of Transportation. Previously, the Department may withhold payment of 2.5% of the entire contract amount until the entire contract is completed and satisfactorily accepted by the Director of the Department. Now, the Department may withhold 5% of the entire contract but not more than $50,000. Effective upon passage and approval (now).
  • SB 107: Establishes the requirement for NDOT to establish a program whereby a contractor may request the use of an unmanned highway patrol vehicle with operable flashing lights as part of the contractor’s safety operations and traffic control. Effective upon passage and approval (now).

About McDonald Carano

In 2024, McDonald Carano celebrates 75 years of serving Nevada’s legal, business, government, and civic communities. More than 60 lawyers and government relations professionals serve Nevada, national, and international clients from our offices in Reno, Las Vegas, and Carson City. McDonald Carano provides legal services and government affairs and advocacy advice to startups, corporations, private companies, trade associations, nonprofits, public entities, high-net-worth individuals, and family offices throughout Nevada. We are proud to be your Nevada law firm since 1949.

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