AB 406 — Revises provisions relating to certain construction. (BDR 28-781)

If a public body is found to be in violation of NRS 338.169 or 338.1692 or subsection 4 of NRS 338.1696, the public body shall not enter into a contract with a construction manager at risk pursuant to this section and NRS 338.1685 to 338.16995, inclusive, for the construction of a public work for 2 years after being found in violation.

If such a violation is found:

TheAny contractpublic thatbody, craft affiliated with the publicState bodyFederation enteredof intoLabor withor theother constructionrecognized managernational atlabor riskorganizations, iscontractor void.or any representative thereof who becomes aware of a violation of subsection 2 of NRS 338.169, NRS 338.1692, subsection 3 of NRS 338.1696 or subsection 10 of NRS 338.16995 by a public body may file a complaint with the Labor Commissioner.

Upon receipt of such a complaint, the Labor Commissioner shall provide to the public body named in the complaint a copy of the complaint and written notification that the public body may file an answer to the complaint with the Labor Commissioner not later than 15 days after receipt of the notification.

If the public body files an answer, the public body shall serve a copy of the answer on the complainant and every other party to the proceeding.

The publicLabor bodyCommissioner shall transmitinvestigate aeach copycomplaint ofreceived thepursuant decision regarding the violation to thesubsection building1. official having jurisdiction over the project and the building official shall issue a stop work order on the project.

After such an investigation, the Labor Commissioner shall issue, in writing, a determination regarding whether a violation occurred and serve a copy on every party to the proceeding.

The determination must contain notice that a party aggrieved by the determination may file a written objection with the Labor Commissioner within 15 days after the date of service of the determination and that an objection must be accompanied by a short statement of the grounds for the objection and evidence substantiating the objection.

3.

If a party who has been served a copy of the determination issued by the Labor Commissioner pursuant to subsection 2 files a written objection with the Labor Commissioner within 15 days after the date of service of the determination, the Labor Commissioner shall hold a hearing on the matter.

Any such hearing must be conducted pursuant to NRS 607.207 and any regulations adopted pursuant thereto.

A decision issued by the Labor Commissioner after such a hearing is deemed to be the final order of the Labor Commissioner on the matter.

4.

If a public body is found to be in violation of subsection 2 of NRS 338.169, NRS 338.1692, subsection 3 of NRS 338.1696 or subsection 10 of NRS 338.16995, the public body shall not enter - *AB406_R1* – 5 – into a contract with a construction manager at risk pursuant to this section and NRS 338.1685 to 338.16995, inclusive, for the construction of a public work for 2 years after a final determination regarding the violation has been made.

If such a violation is found:

(a) Any contract that a public body enters into with a construction manager at risk during the 2-year period shall be deemed terminated by the public body without cause, effective on the date of the issuance of a stop work order pursuant to paragraph (b).

(b) The public body shall transmit a copy of the decision regarding the violation to the building official having jurisdiction over any project for which the public body enters into a contract with a construction manager at risk during the 2-year period and the building official shall issue a stop work order on the project.

“Day labor” means all cases where public bodies, their officers, agents or employees, hire, supervise and pay the wages - *AB406* – 5 – thereof directly to a worker or workers employed by them on public works by the day and not under a contract in writing.

(2) Anything other than a building and its site, at least one person who holds a certificate of registration to practice architecture - *AB406_R1* – 6 – pursuant to chapter 623 of NRS or landscape architecture pursuant to chapter 623A of NRS or who is licensed as a professional engineer pursuant to chapter 625 of NRS.

(a) Found to be a responsible and[and responsiveresponsive] contractor by a local government or its authorized representative which requests bids for a public work in accordance with paragraph (b) of subsection 1 of NRS 338.1373;

- *AB406* – 6 – (a) General engineering contracting, as described in subsection 2 of NRS 624.215.

“Local government” means every political subdivision or other entity which has the right to levy or receive money from ad valorem or other taxes or any mandatory assessments, and includes, without limitation, counties, cities, towns, boards, school districts and other districts organized pursuant to chapters 244A, 309, 318, 379, 474, 538, 541, 543 and 555 of NRS, NRS 450.550 to 450.750, inclusive, and any agency or department of a county or city which prepares a budget separate from that of the parent political - *AB406_R1* – 7 – subdivision.

- *AB406* – 7 – (d) Public highways;

“Responsible“Responsive,” andas responsive”used in the context of a bid or bidder, means that:the bid received from the bidder:

(a) AMeets determination regarding a contractor has been made by a public body based on the recordrequirements of the contractorapplicable onprovisions publicof workslaw; for:

(1)and Completing(b) publicComplies workswith inthe amandatory timelyprovisions manner;of the advertisement or solicitation for bids.

(2)- Improperly*AB406_R1* requesting– change8 orders;– 18.

and (3) Supplying a safe, qualified and skilled workforce;

and (b) The contractor submitted a bid that is in compliance with the requirements of the applicable provisions of law.

18.

- *AB406* – 8 – [22.] 23.

The public body awarding any contract for public work, or otherwise undertaking any public work, shall ascertain from the Labor Commissioner the prevailing wage in the county in - *AB406_R1* – 9 – which the public work is to be performed for each craft or type of work.

The prevailing wage in each county, including Carson City, must be established[established as follows:

(a) TheThe] Labordetermined Commissionerby shall,the annually,Labor surveyCommissioner contractors. who have performed work in the county.

(b)To Baseddetermine on the surveyprevailing conductedwage pursuantin toeach paragraphcounty, (a), where the rateLabor ofCommissioner wagesshall, isannually, thesurvey samecontractors forwho morehave thanperformed [50] 30 percent of the total hours worked by each craft or type of work in that county on construction similar to the proposedcounty. construction, that rate will be determined as the prevailing wage.

[(b) Based on the survey conducted pursuant to paragraph (a), where the rate of wages is the same for more than 50 percent of the total hours worked by each craft or type of work in that county on construction similar to the proposed construction, that rate will be determined as the prevailing wage.

[(d)(d) The Labor Commissioner shall determine the prevailing wage to be 90 percent of the rate determined pursuant to paragraphs (a), (b) and (c) for:

- *AB406* – 9 – (a) A public body or person entitled under subsection 6 to be heard may submit an objection to the Labor Commissioner with evidence to substantiate that a different wage prevails;

- *AB406_R1* – 10 – 5.

Any contract for a public work whose cost is less than [$250,000.] $25,000.$100,000.

- *AB406* – 10 – 4.

A public work of, or constructed by, a charter school, or any other construction, alteration, repair, remodeling or reconstruction of an improvement or property of or constructed by a charter school, notwithstanding any other provision of law.] $25,000.$100,000.

NRS(Deleted 338.1381by isamendment.) herebySec. amended to read as follows:

338.1381 1.

If, within 10 days after receipt of the notice denying an application pursuant to NRS 338.1379 or 338.16991 or disqualifying a subcontractor pursuant to NRS 338.1376, the applicant or subcontractor, as applicable, files a written request for a hearing with the Division or the local government, the State Public Works Board or governing body shall set the matter for a hearing within 20 days after receipt of the request.

The hearing must be held not later than 45 days after the receipt of the request for a hearing unless the parties, by written stipulation, agree to extend the time.

2.

The hearing must be held at a time and place prescribed by the Board or local government.

At least 10 days before the date set for the hearing, the Board or local government shall serve the applicant or subcontractor with written notice of the hearing.

The notice may be served by personal delivery to the applicant or subcontractor or by certified mail to the last known business or residential address of the applicant or subcontractor.

3.

The applicant or subcontractor has the burden at the hearing of proving by substantial evidence that :

(a) If the application was denied pursuant to NRS 338.1379, the applicant is entitled to be qualified to bid on a contract for a public work [, or that] pursuant to NRS 338.1379.

(b) If the subcontractor was disqualified pursuant to NRS 338.1376, the subcontractor is qualified to be a subcontractor on a contract for a public work [.] pursuant to NRS 338.1376.

(c) If the application was denied pursuant to NRS 338.16991, the applicant is eligible to provide labor, materials or equipment on a public work pursuant to NRS 338.16991.

4.

In conducting a hearing pursuant to this section, the Board or governing body may:

(a) Administer oaths;

(b) Take testimony;

(c) Issue subpoenas to compel the attendance of witnesses to testify before the Board or governing body;

(d) Require the production of related books, papers and documents;

and (e) Issue commissions to take testimony.

- *AB406* – 11 – 5.

If a witness refuses to attend or testify or produce books, papers or documents as required by the subpoena issued pursuant to subsection 4, the Board or governing body may petition the district court to order the witness to appear or testify or produce the requested books, papers or documents.

The Board or governing body shall issue a decision on the matter during the hearing.

The decision of the Board or governing body is a final decision for purposes of judicial review.

Sec.

6.

- *AB406_R1* – 11 – (a) Commence a public work for which the estimated cost exceeds $100,000 unless it advertises in a newspaper qualified pursuant to chapter 238 of NRS that is published in the county where the public work will be performed for bids for the public work.

- *AB406* – 12 – (a) The bidder is not a qualified bidder pursuant to NRS 338.1379 or 338.1382;

- *AB406_R1* – 12 – (c) The public body lets the contract not less than 7 days after publishing a notice pursuant to paragraph (a);

- *AB406* – 13 – (d) The Las Vegas Valley Water District created pursuant to chapter 167, Statutes of Nevada 1947, the Moapa Valley Water District created pursuant to chapter 477, Statutes of Nevada 1983 or the Virgin Valley Water District created pursuant to chapter 100, Statutes of Nevada 1993;

or (g) The preconstruction or construction of a public work for which a public body enters into a contract with a construction - *AB406_R1* – 13 – manager at risk pursuant to NRS 338.1685 to 338.16995, inclusive [.] , and section 1 of this act.

(2) If any one of the contractors who submitted one of the three lowest bids will employ a first tier subcontractor who will provide labor or a portion of the work on the public work to the prime contractor for which the first tier subcontractor will not be - *AB406* – 14 – paid an amount exceeding $250,000, the name of each first tier subcontractor who will provide labor or a portion of the work on the public work to the prime contractor for which the first tier subcontractor will be paid 1 percent of the prime contractor’s total bid or $50,000, whichever is greater.

If the prime - *AB406_R1* – 14 – contractor will perform any work which is more than 1 percent of the prime contractor’s total bid and which is not being performed by a subcontractor listed pursuant to paragraph (a) or (b) of subsection 1, the prime contractor shall also include on the list:

- *AB406* – 15 – (1) The named subcontractor, after having a reasonable opportunity, fails or refuses to execute a written contract with the contractor which was offered to the named subcontractor with the same general terms that all other subcontractors on the project were offered;

- *AB406_R1* – 15 – (c) If the public body awarding the contract is a governing body, the public body or its authorized representative, in awarding the contract pursuant to NRS 338.1375 to 338.139, inclusive:

[, but does] - *AB406* – 16 – (2) Includes, without limitation, a provision relating to the contracting or subcontracting of work for an employer in the construction industry that is not prohibited by 29 U.S.C.

- *AB406_R1* – 16 – (a) Commence a public work for which the estimated cost exceeds $100,000 unless it advertises in a newspaper qualified pursuant to chapter 238 of NRS that is published in the county where the public work will be performed for bids for the public work.

or - *AB406* – 17 – (c) The public interest would be served by such a rejection.

- *AB406_R1* – 17 – 7.

(d) The Las Vegas Valley Water District created pursuant to chapter 167, Statutes of Nevada 1947, the Moapa Valley Water District created pursuant to chapter 477, Statutes of Nevada 1983 or - *AB406* – 18 – the Virgin Valley Water District created pursuant to chapter 100, Statutes of Nevada 1993;

- *AB406_R1* – 18 – Sec.

- *AB406* – 19 – (f) If the project is a public work of the State, a statement setting forth that the construction manager at risk must be qualified to bid on a public work of the State pursuant to NRS 338.1379 before submitting a proposal;

(i) A list of the selection criteria and relative weight of the selection criteria that will be used to rank applicants pursuant to subsection 7[7] 8 of NRS 338.1693;

and - *AB406_R1* – 19 – (j) A notice that the proposed form of the contract to assist in the preconstruction of the public work or to construct the public work, including, without limitation, the terms and general conditions of the contract, is available from the public body.

(a) An explanation of the experience that the applicant has with projects of similar size and scope in both the public and private sectors by any delivery method, [whether or not that method was the use of a construction manager at risk, and] including, without limitation, design-bid-build, design-build, design-assist, negotiated work , construction manager at risk or value-engineered work, and an explanation of the experience that the applicant has in such projects in Nevada;Nevada .

[;] (b) The contact information for references who have knowledge of the background, character and technical competence of the applicant;applicant .

[;] (c) Evidence of the ability of the applicant to obtain the necessary bonding for the work to be required by the public body;body .

[;] (d) Evidence that the applicant has obtained or has the ability to obtain such insurance as may be required by law;law .

[;] (e) A statement of whether the applicant has been:

and (2) Disqualified from being awarded a contract pursuant to NRS 338.017, 338.13895, 338.1475 or 408.333;408.333 .

[;] (f) The professional qualifications and experience of the applicant, including, without limitation, the resume of any employee of the applicant who will be managing the preconstruction and construction of the public work;work .

-[;] *AB406* – 20 – (g) The safety programs established and the safety records accumulated by the applicant;applicant .

[;] (h) Evidence that the applicant is licensed as a contractor pursuant to chapter 624 of NRS;NRS .

[;] (i) The proposed plan of the applicant to manage the preconstruction and construction of the public work which sets forth in detail the ability of the applicant to provide preconstruction services and to construct the public work and which includes, if the public work involves predominantly horizontal construction, a statement that , except as otherwise provided in this paragraph, the applicant will perform construction work equal in value to at least [25] 50 percent of the estimated cost of construction;construction .

and[; (j) If the project is for the design of a public work of the State, evidence that the applicant is qualified to bid on a public work of the State pursuant to NRS 338.1379.

and] The public body may allow an applicant to perform at least 25 percent - *AB406_R1* – 20 – but less than 50 percent of the estimated cost of construction if the applicant agrees to comply with standard specifications or procedures for construction of public works adopted by the public body.

(j) If the project is for the design of a public work of the State, evidence that the applicant is qualified to bid on a public work of the State pursuant to NRS 338.1379.

An applicant shall not substitute a different employee for any employee whose resume was submitted pursuant to paragraph (f) of subsection 3 unlessunless: the employee is no longer employed by the applicant or is unavailable because of medical reasons.

(a) The employee whose resume was submitted is no longer employed by the applicant or is unavailable because of medical reasons;

or (b) The public body requests or agrees to the substitution.

The public body or its authorized representative shall appoint a panel consisting of at least three but not more than seven members, a majority of whom must have experience in the construction industryindustry, [,] and, except if the public body is the State Public Works Board, are not employed by the public body to rank the proposals submitted to the public body by evaluating the proposals as required pursuant to subsections 2 and 3.

If any federal statute or regulation precludes the granting of federal assistance or reduces the amount of that assistance for a - *AB406* – 21 – particular public work because of the provisions of this subsection, those provisions of this subsection do not apply insofar as their application would preclude or reduce federal assistance for that work.

After the panel appointed pursuant to subsection 1 ranks the proposals, the public body or its authorized representative shall, - *AB406_R1* – 21 – except as otherwise provided in subsection 8,[8,] 9, select at least the two but not more than the five applicants whose proposals received the highest scores for interviews.

If a separate panel is appointed pursuant to this subsection, the panel must consist of at least three but not more than seven members, a majority of whom must have experience in the construction industryindustry. [.] and, except if the public body is the State Public Works Board, are not employed by the public body.

During the interview process, the panel conducting the interview may[may] shall require the applicants to submit a[a] preliminary: proposed amount of compensation for managing the preconstruction and construction of the public work, but in no event shall the proposed amount of compensation exceed 20 percent of the scoring for the selection of the most qualified applicant.

All(a) presentationsA madepreliminary atproposed anyamount interviewof conductedcompensation pursuantfor tomanaging thisthe subsectionpreconstruction orand subsectionconstruction 5of maythe bepublic madework, onlybut byin keyno personnelevent employedshall by the applicant,proposed asamount determinedof bycompensation theexceed applicant,20 andpercent the employees of the applicantscoring who will be directly responsible for managing the preconstructionselection and construction of the publicmost work.qualified applicant.

The preliminary proposed amount of compensation must include, without limitation:

(1) The proposed fee for the preconstruction services on the public work;

(2) The proposed fee for managing the construction services on the public work;

(3) The cost of travel and per diem for persons on the list submitted pursuant to paragraph (b);

and (4) The additional costs for bonding and insurance related to the preconstruction and construction services, including, without limitation, costs for general liability and course of construction insurance.

(b) A list of the name, title and total cost of compensation of and the anticipated number of hours of work to be performed by each person who will be employed or retained by the applicant to provide the preconstruction services or manage the construction services, or both, on the public work.

As used in this paragraph, “total cost of compensation” means wages, benefits and any other costs associated with employment or retention, including, without limitation, the cost of workers’ compensation, unemployment insurance and applicable taxes.

AfterAll conductingpresentations suchmade interviews,at theany panelinterview that conducted thepursuant interviewsto shall[this ranksubsection theor] applicantssubsection 5 or 6 may be made only by usingkey apersonnel rankingemployed processby thatthe isapplicant, separateas fromdetermined by the processapplicant, usedand tothe rankemployees of the applicantsapplicant pursuantwho towill subsectionbe 2directly andresponsible isfor basedmanaging onlythe onpreconstruction informationand submittedconstruction duringof the interviewpublic process.work.

[7.] 8.

After conducting such interviews, the panel that conducted the interviews shall rank the applicants by using a ranking process that is separate from the process used to rank the - *AB406_R1* – 22 – applicants pursuant to subsection 2 and is based only on information submitted during the interview process.

If any federal statute or regulation precludes the granting of federal assistance or reduces the amount of that assistance for a particular public work because of the provisions of this subsection, those provisions of this - *AB406* – 22 – subsection do not apply insofar as their application would preclude or reduce federal assistance for that work.

8.[8.] 9.

9.[9.] 10.

10.[10.] 11.

The public body or its authorized representative shallshall: [:

(a) Make]Make make available to all applicants and the public the following information, as determined by the panel appointed pursuant to subsection 1 and the panel that conducted the interviews, as applicable:

[(1)]- (a)*AB406_R1* – 23 – (1) The final rankings of the applicants;

[(2)](2) (b) The score assigned to each proposal received by the public body;

and [(3)](3) (c) For each proposal received by the public body, the score assigned to each factor that the public body specified in the request for proposals .;

[;and (b) Provide, upon request, an explanation to any unsuccessful applicant of the reasons why the applicant was unsuccessful.

and (b) Provide, upon request, an explanation to any unsuccessful applicant of the reasons why the applicant was unsuccessful.] Sec.

If a public body enters into a contract with a construction manager at risk for preconstruction services pursuant to NRS 338.1693, after the public body has finalized the design for the public work, or any portion thereof sufficient to determine the provable cost of that portion, the public body shall enter into negotiations with the construction manager at risk for a contract to - *AB406* – 23 – construct the public work or the portion thereof for the public body for [:

(a) The]The the cost of the work, plus a fee, withwith] a guaranteed maximum price .[;

[;

or (c) A fixed price plus reimbursement for overhead and other costs and expenses related to the construction of the public work or portion thereof.] Before, commencementwhich ofmust theinclude, negotiations,without thelimitation: construction manager at risk shall submit to the public body on the form prescribed pursuant to subsection 3:

(a) The costfee ofand theother work,related including,costs withoutsubmitted limitation,for managing the costconstruction ofservices labor,pursuant materialsto andsubsection the6 general conditions of theNRS contract;338.1693;

and (b) The fee,cost of the work, including, without limitation, generalthe overheadcost of labor, materials and profit;equipment.

andThe (c)construction Amanager at risk shall submit a list of each subcontractor selected to provide labor, materials or equipment on the public work pursuant to NRS 338.16991 and 338.16995 the cost of which is estimated by the construction manager at risk to exceed 1 percent of the estimated cost of the public work.

and - *AB406_R1* – 24 – (b) Shall accept a bid to construct the public work from the construction manager at risk with whom the public body entered into a contract for preconstruction services.

4.] TheExcept Stateas Publicotherwise Worksprovided Boardin shallsubsection prescribe13 theof formNRS to338.16995, bea submittedpublic bybody ashall not interfere with the right of the construction manager at risk to aselect publicthe bodysubcontractor -whom *AB406*the –construction 24manager –at risk determines to have submitted the best proposal pursuant to subsectionNRS 1.338.16995.

The form must provide for the identification and itemization of the cost of the work and the fee.

4.

Except as otherwise provided in subsection 13 of NRS 338.16995, a public body shall not interfere with the right of the construction manager at risk to select the subcontractor whom the construction manager at risk determines to have submitted the best proposal pursuant to NRS 338.16995.

NRS(Deleted 338.16991by isamendment.) herebySec. amended to read as follows:

338.16991 1.

To be eligible to provide labor, materials or equipment on a public work [, the contract] for which a public body has entered into a contract with a construction manager at risk pursuant to NRS 338.1696, a subcontractor must [be:] :

(a) [Licensed] Be licensed pursuant to chapter 624 of NRS;

[and] (b) [Qualified] After reasonable opportunity to review the general terms of the contract, agree in advance to comply with any provision in the general terms relating to the contracting or subcontracting of work for an employer in the construction industry that is not prohibited by 29 U.S.C.

§ 158(e);

and (c) Be qualified pursuant to the provisions of this section to submit a proposal for the provision of labor, materials or equipment on a public work.

2.

Subject to the provisions of subsections 3, 4 and 5, the construction manager at risk shall determine whether an applicant is qualified to submit a proposal for the provision of labor, materials or equipment on the public work for the purposes of paragraph [(b)] (c) of subsection 1.

3.

Not earlier than 30 days after a construction manager at risk has been selected pursuant to NRS 338.1693 and not later than 10 working days before the date by which an application must be submitted, the construction manager at risk shall advertise for applications from subcontractors in a newspaper qualified pursuant to chapter 238 of NRS that is published in the county where the public work will be performed.

If no qualified newspaper is published in the county where the public work will be performed, the advertisement must be published in some qualified newspaper that is printed in the State of Nevada and has a general circulation in the county.

The construction manager at risk may accept an application from a subcontractor before advertising for applications pursuant to this subsection.

4.

The criteria to be used by the construction manager at risk when determining whether an applicant is qualified to submit a proposal for the provision of labor, materials or equipment must include, and must be limited to:

- *AB406* – 25 – (a) The monetary limit placed on the license of the applicant by the State Contractors’ Board pursuant to NRS 624.220;

(b) The financial ability of the applicant to provide the labor, materials or equipment required on the public work;

(c) Whether the applicant has the ability to obtain the necessary bonding for the work required by the public body;

(d) The safety programs established and the safety records accumulated by the applicant;

(e) Whether the applicant has breached any contracts with a public body or person in this State or any other state during the 5 years immediately preceding the application;

(f) Whether the applicant has been disciplined or fined by the State Contractors’ Board or another state or federal agency for conduct that relates to the ability of the applicant to perform the public work;

(g) The performance history of the applicant concerning other recent, similar public or private contracts, if any, completed by the applicant in Nevada;

(h) The principal personnel of the applicant;

(i) Whether the applicant has been disqualified from the award of any contract pursuant to NRS 338.017 or 338.13895;

and (j) The truthfulness and completeness of the application.

5.

The public body or its authorized representative shall ensure that each determination made pursuant to subsection 2 is made subject to the provisions of subsection 4.

6.

The construction manager at risk shall notify each applicant and the public body in writing of [a determination made pursuant to subsection 2.] whether an applicant is eligible to provide labor, materials or equipment on the public work.

7.

A determination [made pursuant to subsection 2 that an applicant is not qualified] of whether an applicant is eligible to provide labor, materials or equipment on the public work may be appealed pursuant to NRS 338.1381 to the public body with whom the construction manager at risk has entered into a contract for the construction of the public work.

Sec.

- *AB406* – 26 – 2.

- *AB406_R1* – 25 – (a) A description of the design for the public work and a statement indicating where a copy of the documents relating to that design may be obtained;

- *AB406* – 27 – 5.

- *AB406_R1* – 26 – 8.

- *AB406* – 28 – 11.

- *AB406_R1* – 27 – (1) Files for bankruptcy or becomes insolvent;

or - *AB406* – 29 – (b) An amount equal to 35 percent of the estimate by the engineer of the cost of the work the construction manager at risk selected himself or herself to perform on the public work.

- *AB406_R1* – 28 – Sec.

The provisions of chapters 332, 338 and 339 of NRS do not apply to a contract entered into by a county and a private developer pursuant to which the private developer constructs a minor league baseball stadium project, except that the contract must include a provision stating that the requirements of NRS [338.010] 338.013 - *AB406* – 30 – to 338.090, inclusive, apply to any construction work to be performed under the contract.

No other act or law with regard to the authorization or issuance of bonds that provides for an election, requires an approval, - *AB406_R1* – 29 – or in any way impedes or restricts the carrying out of the acts authorized in NRS 244A.669 to 244A.763, inclusive, to be done, applies to any proceedings taken or acts done pursuant to those sections, except for laws to which reference is expressly made in those sections or by necessary implication of those sections.

A project is not subject to any requirements relating to public buildings, structures, ground works or improvements imposed by the statutes of this State or any other similar requirements which may be lawfully waived by this section, and any requirement of competitive bidding or other restriction imposed on the procedure for award of contracts for such purpose or the lease, sale or other disposition of property of the counties is not applicable to any action taken pursuant to NRS 244A.669 to 244A.763, - *AB406* – 31 – inclusive, except that the provisions of NRS [338.010] 338.013 to 338.090, inclusive, apply to any contract for new construction, repair or reconstruction for which tentative approval for financing is granted on or after January 1, 1992, by the county for work to be done in a project.

- *AB406_R1* – 30 – 6.

The provisions of no other law, either general or local, except as provided in NRS 268.512 to 268.568, inclusive, apply to the doing of the things authorized in NRS 268.512 to 268.568, inclusive, to be done, and no board, agency, bureau, commission or official not designated in those sections has any authority or - *AB406* – 32 – jurisdiction over the doing of any of the acts authorized in those sections to be done, except as otherwise provided in those sections.

A project is not subject to any requirements relating to public buildings, structures, ground works or improvements imposed by the statutes of this state or any other similar requirements which may be lawfully waived by this section, and any requirement of competitive bidding or other restriction imposed on the procedure for award of contracts for such purpose or the lease, - *AB406_R1* – 31 – sale or other disposition of property of the cities is not applicable to any action taken pursuant to NRS 268.512 to 268.568, inclusive, except that the provisions of NRS [338.010] 338.013 to 338.090, inclusive, apply to any contract for new construction, repair or reconstruction for which tentative approval for financing is granted on or after January 1, 1992, by the city for work to be done in a project.

A governing body may adopt an ordinance pursuant to NRS 271.325 creating a district and ordering a project to - *AB406* – 33 – be acquired or improved and may contract with a person to construct or improve a project, issue bonds or otherwise finance the cost of the project and levy assessments, without complying with the provisions of NRS 271.305 to 271.320, inclusive, 271.330 to 271.345, inclusive, 271.380 and 271.385 and, except as otherwise provided in this section, the provisions of any law requiring public bidding or otherwise imposing requirements on any public contract, project, works or improvements, including, without limitation, chapters 332, 338 and 339 of NRS, if the governing body has entered into a written agreement with the owners of all of the assessable property within the district which states that:

- *AB406_R1* – 32 – (a) The governing body agrees to enter into a contract for the acquisition, construction or improvement of the project or projects in the district which includes:

- *AB406* – 34 – (b) The governing body may amend the ordinance creating the district, change the assessment roll and redistribute the assessments required by NRS 271.390 in the same manner in which these actions were originally taken to remove assessable property from the district.

and - *AB406_R1* – 33 – (2) The redistribution of the assessments is not prohibited by any covenants made for the benefit of the owners of any bonds or interim warrants issued for the district.

- *AB406* – 35 – 4.

- *AB406_R1* – 34 – Sec.

The provisions of any law requiring public bidding or otherwise imposing requirements on any public contract, project, works or improvements, including, without limitation, the provisions of chapters 332, 338 and 339 of NRS, do not apply to a contract entered into by a municipality and a service provider pursuant to this section, except that the contract must include a provision stating that the requirements of NRS [338.010] 338.013 - *AB406* – 36 – to 338.090, inclusive, apply to any construction work to be performed under the contract.

The governing body, the service provider, any contractor who is awarded a contract or enters into an agreement to perform the construction work on an underground conversion project, and any subcontractor who performs any portion of the construction work on an underground conversion project shall comply with the provisions of NRS 338.013 to 338.090, inclusive, in the same manner as if the - *AB406_R1* – 35 – governing body had undertaken the underground conversion project or had awarded the contract.

or - *AB406* – 37 – (c) Provides financial incentives to a developer with a value of more than [$100,000,]$100,000, $25,000, ¬ regardless of whether the project is publicly or privately owned, the agency must provide in the loan agreement with the small business or the agreement with the developer, as applicable, that the development project is subject to the provisions of NRS [338.010] 338.013 to 338.090, inclusive, to the same extent as if the agency had awarded the contract for the project.

The agency, the small business or the developer, as applicable, any contractor who is - *AB406_R1* – 36 – awarded the contract or enters into the agreement to perform the project, and any subcontractor who performs any portion of the project shall comply with the provisions of NRS 338.013 to 338.090, inclusive, in the same manner as if the agency had undertaken the project or had awarded the contract.

This subsection does not apply to future development of the property unless an additional loan, or additional financial incentives with a value of more than [$100,000,]$100,000, $25,000, are provided to the small business or developer, as applicable.

If - *AB406* – 38 – the developer does not pay all of the initial construction costs of the extension, the provisions of NRS 338.013 to 338.090, inclusive, apply to the contract.

The board, the developer, any contractor who is awarded a contract or enters into an agreement to perform the extension or installation of appurtenances to the extension, and any subcontractor who performs any portion of the extension or installation of appurtenances to the extension shall comply with the provisions of NRS 338.013 to 338.090, inclusive, in the same - *AB406_R1* – 37 – manner as if the board had undertaken the extension or had awarded the contract.

Before a qualified service company enters into a performance contract pursuant to NRS 332.300 to 332.440, inclusive, that exceeds $100,000, the qualified service company - *AB406* – 39 – must furnish to the contracting body any bonds required pursuant to NRS 339.025.

333A.120 If a performance contract entered into pursuant to this chapter requires the employment of skilled mechanics, skilled workers, semiskilled mechanics, semiskilled workers or unskilled labor to perform the performance contract, the performance contract - *AB406_R1* – 38 – must include a provision relating to the prevailing wage as required pursuant to NRS [338.020] 338.013 to 338.090, inclusive.

A project is not subject to any requirements relating to public buildings, structures, ground works or improvements imposed by the statutes of this state or any other similar requirements which may be lawfully waived by this section, and any requirement of competitive bidding or other restriction imposed on the procedure for award of contracts for such purpose or the lease, sale or other disposition of property is not applicable to any action taken pursuant to NRS 349.400 to 349.670, inclusive, except that the provisions of NRS [338.010] 338.013 to 338.090, inclusive, - *AB406* – 40 – apply to any contract for new construction, repair or reconstruction for which tentative approval for financing is granted on or after January 1, 1992, by the Director for work to be done in a project.

The Director, the lessee, purchaser, obligor or other enterprise, any contractor who is awarded a contract or enters into an agreement to perform the construction, repair or reconstruction for a project, and any subcontractor who performs any portion of such construction, repair or reconstruction shall comply with the - *AB406_R1* – 39 – provisions of NRS 338.013 to 338.090, inclusive, in the same manner as if a public body had undertaken the project or had awarded the contract.

The Director or municipality, - *AB406* – 41 – the lessee, purchaser or other obligor, any contractor who is awarded a contract or enters into an agreement to perform the construction, repair or reconstruction for a water project, and any subcontractor who performs any portion of such construction, repair or reconstruction shall comply with the provisions of NRS 338.013 to 338.090, inclusive, in the same manner as if a public body had undertaken the water project or had awarded the contract.

- *AB406_R1* – 40 – Sec.

The Director, the lessee, purchaser or other obligor, any contractor who is awarded a contract or enters into an agreement to perform the construction, repair or reconstruction for the project, and any subcontractor who performs any portion of such construction, repair or reconstruction shall comply with the provisions of NRS 338.013 to 338.090, inclusive, in the same - *AB406* – 42 – manner as if a public body had undertaken the project or had awarded the contract.

- *AB406_R1* – 41 – 6.

Except as otherwise provided in this subsection, in assigning the relative weight to each factor for selecting a design-build team pursuant to subsection 1, the Department shall assign, without limitation, a relative weight of 5 percent to the design-build team’s possession of both a certificate of eligibility to receive a preference in bidding on public works by the prime contractor on the design- build team, if the design-build team submits a signed affidavit that meets the requirements of subsection 1 of NRS 338.0117, and a certificate of eligibility to receive a preference when competing for public works by all persons who hold a certificate of registration to practice architecture or a license as a professional engineer on the - *AB406* – 43 – design-build team, and a relative weight of at least 30 percent for the proposed cost of design and construction of the project.

If any federal statute or regulation precludes the granting of federal assistance or reduces the amount of that assistance for a particular project because of the provisions of this subsection relating to a preference in bidding on public works or a preference when competing for public works, those provisions of this subsection do - *AB406_R1* – 42 – not apply insofar as their application would preclude or reduce federal assistance for that project.

- *AB406* – 44 – (b) Partially reimburse the unsuccessful finalists if partial reimbursement was provided for in the request for preliminary proposals pursuant to paragraph (f) of subsection 3 of NRS 408.3883.

(c) Make available to the public a summary setting forth the factors used by the Department to select the successful design-build - *AB406_R1* – 43 – team and the ranking of the design-build teams who submitted final proposals and, if applicable, best and final offers.

Except as otherwise provided in [subsection 3,] this section, the provisions of any law requiring public bidding or otherwise imposing requirements on any public contract, project, works or improvements, including, without limitation, the provisions of chapters 332, 338 and 339 of NRS, do not apply to - *AB406* – 45 – any contract entered into by a flood control district for the construction of a flood control facility pursuant to the master plan, if a majority of the construction costs are paid by a private developer and the written agreement:

and - *AB406_R1* – 44 – [3.] (c) Contains a provision stating that the requirements of NRS [338.010] 338.013 to 338.090, inclusive, apply to any construction work performed pursuant to the contract.

The installation of a wind energy system on property owned or occupied by a public body pursuant to NRS 701B.400 to 701B.650, inclusive, shall be deemed to be a public work for the purposes of chapters 338 and 341 of NRS, regardless of whether the installation of the wind energy system is financed in - *AB406* – 46 – whole or in part by public money.

- *AB406_R1* – 45 – 2.

and (b) If the contract is with a design professional who is not a member of a design-build team, comply with the provisions - *AB406* – 47 – of NRS 338.155.

- *AB406_R1* – 46 – (a) One or more competitive procurement processes for letting such a contract;

- *AB406* – 48 – (b) May adopt, if it has adopted a temporary regulation after notice and the opportunity for a hearing as provided in this subsection, after providing a second notice and the opportunity for a hearing, a permanent regulation.

(c) Shall, in addition to distributing the notice to each recipient of the Board’s regulations, solicit comment - *AB406_R1* – 47 – generally from the public and from businesses to be affected by the proposed regulation.

(5) If the proposed regulation provides a new fee or increases an existing fee, the total annual amount the Board - *AB406* – 49 – expects to collect and the manner in which the money will be used.

(g) Shall, before holding a public hearing pursuant to paragraph (h), conduct at least one workshop to solicit - *AB406_R1* – 48 – comments from interested persons on the proposed regulation.

or - *AB406* – 50 – (2) The small business impact statement prepared by the Board did not consider or significantly underestimated the economic effect of the regulation on small businesses.

- *AB406_R1* – 49 – [5.] 6.

33.5.

Section 14.5 of chapter 487, Statutes of Nevada 2013, at page 2985, is hereby amended to read as follows:

Sec.

14.5.

1.

On or before January 1 of each year, each public body that enters into a contract during the immediately preceding year with a construction manager at risk pursuant to NRS 338.169 to 338.16995, inclusive, for preconstruction services for or to construct a public work shall submit a report to the Director of the Legislative Counsel Bureau for transmittal to the Legislature, or to the Legislative Commission if the report is submitted during an odd-numbered year.

2.

The report required by subsection 1 must include, for each public work for which the public body enters into a contract with a construction manager at risk:

(a) A description of the public work;

(b) The name of the applicants who submitted proposals for the public work that were selected for interviews pursuant to subsection 4 of NRS 338.1693;

(c) The name of the applicant who was selected as the construction manager at risk [;

(c)] for the public work;

(d) Whether the construction manager at risk substituted a different employee of the construction manager at risk for any employee whose resume was submitted pursuant to paragraph (f) of subsection 3 of NRS 338.1692, and, if so, the reason for the substitution;

(e) If the public work has not been completed at the time the report is submitted, a report on the progress of the public work;

and [(d)] (f) If the public work has been completed at the time the report is submitted [, an] :

(1) An explanation of whether [the public body is satisfied with] the public work [and with] was completed in accordance with the contractual arrangement with the construction manager at risk [.] , including, without limitation, if the public work was completed on time;

and (2) A statement of the guaranteed maximum price for the public work and the actual price at which the public work was completed.

3.

As used in this section:

- *AB406_R1* – 50 – (a) “Public body” has the meaning ascribed to it in subsection 16 of NRS 338.010, as amended by section 2 of this act.

(b) “Public work” has the meaning ascribed to it in subsection 17 of NRS 338.010, as amended by section 2 of this act.

Sec.

35.5.

The provisions of subsection 1 of NRS 218D.380 do not apply to any provision of this act which adds or revises a requirement to submit a report to the Legislature.

Sec.

NRS 338.018, 338.075 and 338.1405 are hereby repeSec.repealed.

Sec.

This section and sections 3433.5, and34, 35 and 35.5 of thi2.acSections 1 to 33, inclusive, and 36 of this act become effective uponon passageJuly and1, approval.2017.

2.

Sections 1 to 33, inclusive, and 36 of this act become effective on July 1, 2017.

The provisions of NRS 338.013 to 338.018, inclusive, apply to any contract for - *AB406* – 51 – construction work of the Nevada System of Higher Education for which the estimated cost exceeds $250,000 even if the construction - *AB406_R1* – 51 – work does not qualify as a public work, as defined in subsection 17 of NRS 338.010.

The Legislature hereby finds and declares that the provisions enteredof intothis bysection aprohibiting publicrequirements body for acertain publicterms workin orcontracts entered into byractsby the awardee of a grant,public taxbody abatement,for taxa creditpublic work or taxentered exemptioninto by from a public body are:

tax abatement, tax credit or tax exemption (a) Intended to provide:

(a) Require or prohibit an eligible bidder, contractor or subcontractor from entering into or adhering to an agreement with construction project integrated into the public work.ic work or any (b) Discriminate against an eligible bidder, contractor or subcontractor for becoming or remaining or refusing to become or remain a signatory to, or for adhering or refusing to adhere to, an agreement with one or more labor organizations in regard to the public work or any construction project integrated into the public work.

(b) Discriminate against an eligible bidder, contractor or subcontractor for becoming or remaining or refusing to become or remain a signatory to, or for adhering or refusing to adhere to, an agreement with one or more labor organizations in regard to the public work or any construction project integrated into the public work.

Except as otherwise provided in subsection 5 or 6, a public body shall not award a grant, tax abatement, tax credit or tax exemption that is conditioned upon a requirement that the awardee include a term described in paragraph (a) or (b) of subsection 2 in a contract for any construction, improvement, maintenance or renovation to real property that is the subject of the grant, tax abatement, tax credit or tax exemption.

subject of the grant, tax - *AB406* – 52 – 4.

- *AB406_R1* – 52 – (a) Prohibit a public body from awarding a contract for a public work or a grant, tax abatement, tax credit or tax exemption to an owner who is not a public body, an eligible bidder, a contractor or a subcontractor who enters into, who is a party to or who adheres to an agreement with a labor organization if:

and (2) The public body does not discriminate against an owner who is not a public body, an eligible bidder, a contractor or a subcontractor in the awarding of the contract, grant, tax abatement, tax credit or tax exemption based upon the status of entering into, being or becoming a party to or adhering to an agreement with a lab(b) Prohibit an eligible bidder, contractor or subcontractor from voluntarily entering into or complying with an agreement entered into with one or more labor organization;organizations in regard to a contract:

party to or adhering to an agreement with a (b) Prohibit an eligible bidder, contractor or subcontractor from voluntarily entering into or complying with an agreement entered into with one or more labor organizations in regard to a contract:

or 5.)(e) AAAffect publicany bodyprovision mayof exemptNRS a338.020 particularto public338.090, workinclusive. or ave.

A public body may exempt a particular public work or a grant, tax abatement, tax credit or tax exemption from the provisions hearing,of thatsubsection 2 if the public workbody ormakes construction, improvement,otice and a -finding, *AB406*after –notice 53and –a maintenance or renovation to real property that is the subject of the part- of*AB406_R1* critical– infrastructure53 for:tax– grant, tax abatement, tax credit or tax exemption, as applicable, is a (a)par(a) An airport, including, without limitation, a runway, taxiway, air traffic control tower or project to improve airport security;

H - *AB406**AB406_R1*