AB 27 — Revises provisions governing cease and desist orders issued by the State Contractors' Board. (BDR 54-240)

(ReprintedAssembly withBill amendmentsNo. adopted on April 22, 2019) FIRST REPRINT A.B.

2727–Committee ASSEMBLYon BILLCommerce NOand .Labor CHAPTER..........

27–COMMITTEE ON C OMMERCE AND LABOR (ON BEHALF OF THE STATE CONTRACTORS ’ BOARD ) PREFILED N OVEMBER 16, 2018 ____________ Referred to Committee on Commerce and Labor SUMMARY—Revises provisions governing cease and desist orders issued by the State Contractors’ Board.

(BDR 54-240) 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.

LegUnderLegislative existingCounsel’s law,Digest: if the State Contractors’ Board has reason to believe that a person has committed certain violations, the Board is required to issue, or authorize the issuance of, a written administrative citation to the person.

IfUnder existing law, if the citationState includesContractors’ anyBoard correctivehas actionreason thatto mustbelieve bethat taken,a the citationissuance mustof, specificallya describewritten thatadministrative action.citation to the person.

AIf person to whom the Boardcitationrize issuesincludes aany citationcorrective mayaction contest the person does not contest a citation within that period,must orbe iftaken, the Boardcitation doesmust notspecifically extenddescribe that period,action. the citation shall be deemed a final order of the Board and not subject to review by any court or agency.

(NRSA 624.341,person 624.345)to Existingwhom law also - *AB27_R1* – 2 – requires the Board toissues issue a ceasecitation andmay desistcontest orderthe tocitation awithin person15 forbusiness actingdays asafter athe contractorcitation oris submittingserved aupon bidthe onperson. a job in this State without a license as a contractor.

If a person does not contest a citation within that period, or if the Board does not extend that period, the citation shall be deemed a final order of the Board and not subject requires the Board to issue a cease and desist order to a person for acting as a contractor or submitting a bid on a job in this State without a license as a contractor.

Such actions may include, without occurred;limitation:

(2)(1) imposingconfirming writtenthat administrativea citationsviolation of the cease and administrativedesist fines;order has requiring the person against whom a cease and desist order is issued to take certain) actions to remedy the violation;

(3) requiring the person against whom a cease and desist order is issued to take certain actions to remedy the violation;

EXPLANATION – Matter in bolded italics is new;

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

- 80th Session (2019) – 2 – (a) Acting as a contractor, including, without limitation, commencing work as a contractor;

[If it appears that any person has engaged in acts or practices which constitute a violation of this chapter or the violation of an order issued pursuant to subsection 1, the Board may request the Attorney General, the district attorney of the county in which the alleged violation occurred or the district attorney of any otherotherhe county in which that person maintains a place of business or resides to apply on behalf of the Board to the district court for an injunction restraining the person from acting in violation of this chapter.

- *AB27_R1* – 3 – 4.

5.] After confirming that the cease and desist order has been received by the person to whom it was issued, the Board shallshalleen return to the job site or take any other action required to confirm that the terms of the cease and desist order have been complied with.

(a) The person to whom the cease and desist order was issued shall be deemed noncompliant with the cease and desist order and - 80th Session (2019) – 3 – the person may not complete the project, except for taking any necessary action to protect the public, the project, any other contractors, laborers and equipment and to limit the loss of any perishable goods.

(b) Except as otherwise provided in paragraph (c), for a first violation, the Board shall issue a written administrative citation pursuant to NRS 624.341, which may include any reasonable investigatory fees and costs, conditioned upon the submission by the person of a bona fide application for the issuance of a license the Board.o this chapter within a reasonable period established by (c) For a second or subsequent violation, or for any first violation for which the reasonable value of the unlicensed work exceeds $50,000, the Board shall:

- *AB27_R1* – 4 – 4.

If the Board determines that the person to whom the cease andBoard:sist desist order was issued has complied with the order, the Board:(a) Shall issue an administrative citation pursuant to NRS 624.341 and impose an administrative fine against the person in accordance with NRS 624.710, in addition to any reasonable investigatory fees and costs;

(a) Shall issue an administrative citation pursuant to NRS 624.341 and impose an administrative fine against the person in accordance with NRS 624.710, in addition to any reasonable investigatory fees and costs;

(a) Require the person to whom the cease and desist order was issued to remedy any loss or damage caused by the unlicensed activity for which the order was issued, including, without - 80th Session (2019) – 4 – limitation, the disgorgement of any amount of money collected from the owner of the project that was not for material delivered to the job site and that has not been damaged or altered by the person;

or (c) Reduce or stay any administrative fine imposed pursuant to tosubsection this4 chapter.theif the person obtains a valid license issued pursuant 6.to 6.is When imposing an administrative fine pursuant to this section, the Board shall impose the maximum administrative fine established pursuant to this chapter for the unlicensed activity if more than one of the following circumstances exist:

When imposing an administrative fine pursuant to this established pursuant to this chapter for the unlicensed activity if more than one of the following circumstances exist:

(a)(a)(1) AsLicensure anof absolutethe defense:person pursuant to chapter 624 of NRS;

- *AB27_R1* – 5 – (1) Licensure of the person pursuant to chapter 624 of NRS;

or - 80th Session (2019) – 5 – (4) Any other defect in the terms of the cease and desist order.

(b) Paragraph (b) of subsection 7, the Board shall, if facts are establisheddefense toasserted in the satisfactionpetition, ofreasonably theclarify Boardany toterms supportof the partial cease and desist order requested by the petitioner.ypetitioner. any terms of the 9.

When9. considering an application for the issuance of a lic(a) Any cease and desist order issued against the applicant;

When considering an application for the issuance of a license pursuant to this chapter, the Board may consider:

(a) Any cease and desist order issued against the applicant;

A person who is issued a written citation pursuant to NRS 624.341 or an order to cease and desist pursuant to NRS 624.212 may contest the citation or order within 15 business days after the date on which the citation or order is served on the person.