AB 7 — Revises provisions governing contracts with independent contractors executed by the Department of Transportation. (BDR 27-364)

A.B.Assembly Bill No.

77–Committee Aon SSEMBLYGovernment BAffairs ILLNCHAPTER.......... O.

7–COMMITTEE ON GOVERNMENT A FFAIRS (O N BEHALF OF THE DEPARTMENT OF T RANSPORTATION ) PREFILED N OVEMBER 15, 2018 ____________ Referred to Committee on Government Affairs SUMMARY—Revises provisions governing contracts with independent contractors executed by the Department of Transportation.

(BDR 27-364) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

No.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

Existing law exempts from this requirement contracts entered into by the Department of Transportation for any work of construction or that a contract executed by the Department be for any work of construction ort reconstruction of highways.highways for the contract to be exempt from the requirement to obtain approval of the State Board of Examiners.

(NRSInstead, 333.700)this This bill eliminatesexempts all contracts for the requirementservices thatof a contractperson executedas byan theindependent Departmentcontractor beexecuted forby anythe workDepartment, offrom constructionthe orrequirement to obtain approval of the State Board of Examiners.of the Examiners before becoming effective.

Instead,EXPLANATION this– billMatter exemptsin allobolded contractsitalics foris thenew; services of a person as an independent contractor executed by the Department, except for certain contracts with current or former employees of the Department, from the requirement to obtain approval of the State Board of Examiners before becoming effective.

*AB7*matter –between 2brackets –[omitted THEmaterial] PEOPLEis OFmaterial THEto STATEbe OFomitted. NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

- 80th Session (2019) – 2 – (1) Withholding of income taxes by the State;

or (6) Coverage for unemployment compensation provided by the State if the requirements of NRS 612.085 for independent contractorscon4.actAn areindependent met.contractor is not in the classified or unclassified service of the State and has none of the rights or privileges available to officers or employees of the State of Nevada.

4.

An independent contractor is not in the classified or unclassified service of the State and has none of the rights or privileges available to officers or employees of the State of Nevada.

The State Board of Examiners may *AB7* – 3 – waive the requirements of this subsection in the case of contracts which are for amounts less than $2,000.

Except as otherwise provided in subsection 8, and except for contracts entered into by the Nevada System of Higher Education, each proposed contract with an independent contractor must be submittedbecome toeffective without the prior approval of the State Board of Examiners.Examiners, except that the State Board of Examiners may authorize its Clerk or a designee to approve contracts which are:

The contracts do not become effective without the prior approval of the State Board of Examiners, except that the State Board of Examiners may authorize its Clerk or a designee to approve contracts which are:

- 80th Session (2019) – 3 – (b) Contracts executed by the State Public Works Division of the Department of Administration or any other state department or agency for any work of construction or major repairs of state buildings, if the contracting process was controlled by the rules of open competitive bidding.

 If the contract submitted for approval continues an existing contractual relationship, the State Board of Examiners shall ask each agency to ensure that the State is receiving the services that the contractcon10. purports to provide.

10.

*AB7* – 4 – 11.

A contract for the services of an independent contract must not be split into separate contracts for the purpose of avo12.avoiding any requirements for competitive bidding.

12.

*AB7*~~~~~ 19 - 80th Session (2019)