AB 22 — Revises provisions governing the issuance of cease and desist orders for unlicensed activity by the State Contractors' Board. (BDR 54-267)

(ReprintedAssembly withBill amendmentsNo. adopted on April 6, 2023) FIRST REPRINT A.B.

2222–Committee ASSEMBLYon BILLCommerce NOand .Labor CHAPTER..........

22–COMMITTEE ON C OMMERCE AND LABOR (ON B EHALF OF THE STATE CONTRACTORS ’ BOARD ) PREFILED N OVEMBER 16, 2022 ____________ Referred to Committee on Commerce and Labor SUMMARY—Revises provisions governing the issuance of cease and desist orders for unlicensed activity by the State Contractors’ Board.

(BDR 54-267) 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.

If the Board determines that the person to whom the cease and desist order was issued has not compliedfor withwhich the order,value existingof lawthe requiresunlicensed work is $50,000 or less, issue a writteniolation administrative citation, conditioned upon the Boardsubmission to:by the person of an application for a license as a contractor;

(1) for a first violation administrative citation, conditioned upon the submission by the person of anen application for a license as a contractor;

and (2) authorizes the Board to require the person to submit an appThisapplThis bill replaces the separate procedures in existing law that the Board is required to follow after the issuance of a cease and desist order, depending upon whether the person to whom the order was issued complied with the order.

Under the procedures set forth in this bill, the Board, regardless of the person’s - *AB22_R1* – 2 – compliance with the order, is required to issue an administrative citation and impose an administrative fine for a first violation which does not involve theft or orfraud. fraud, this bill requires the Board to either:

(1)For issuea ansecond administrativeor citationtsubsequent andviolation, imposeor anfor administrativeany fine;first violation involving theft or fraud, this bill requires the Board to:

or(1) (2)issue reportan theadministrative violationcitation forand possibleprosecution; criminal prosecution.

or (3) take both of those actions.

EXPLANATION – Matter in bolded italics is new;

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

(a)- Acting82nd asSession a(2023) contractor,– including,2 without– limitation, commencing work as a contractor;

ororuding, without limitation, (b) Submitting a bid on a job situated in this State,  without a valid license issued pursuant to this chapter.

For the purposes of this section, a person shall be deemed to have a valid license if the person has an active license and is performing work in conformity with the requirements of subsection 4 of NRS 624.220.

The person to whom the cease and desist order was issued may, while in the course of stopping work on the job, take any necessary action within 48 hours after receiving the cease and desist order to protect the public, the project, any other contractors, laborers and equipmentequ3.men[If on the siteBoard determines that any term of a cease and todesist limitorder thehas lossnot ofbeen anycomplied perishablewith goods.and no exception applies:

3.

[If the Board determines that any term of a cease and desist order has not been complied with and no exception applies:

(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 - *AB22_R1* – 3 – pursuant to this chapter within a reasonable period established by the Board.

(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:

(d) The Board may apply for injunctive relief pursuant to the Nevada Rules of Civil Procedure to enjoin the person to whom the cease and desist order was issued from continuing to violate the cease- and82nd desistSession order(2023) in– any3 county– in which the person may be found.

and] (b) [May require] For a second or subsequent violation, or for any first violation involving theft or fraud, either:take any or all of the followi(1) 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.

(1)(2) IssueReport anthe administrativeviolation citationof pursuantthe toprovisions NRSof 624.341this andchapter imposefor anpossible administrativecriminal fineprosecution againstpursuant theto person in accordance with NRS 624.710,624.700. in addition to any reasonable investigatory fees and costs;

or (2) Report the violation of the provisions of this chapter for possible criminal prosecution pursuant to NRS 624.700.

(b) If the Board determines that any term of the cease and desist order has not been complied with and no exception applies, apply for injunctive relief pursuant to the Nevada Rules of Civil - *AB22_R1* – 4 – Procedure to enjoin the person to whom the cease and desist order was issued from continuing to violate the cease and desist order in any county in which the person may be found.

5.- 82nd Session (2023) – 4 – section, the Board may:an administrative fine pursuant to this (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 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;

When assessing an administrative fine pursuant to this section, the Board may:

(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 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;

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 moremor(a) thanThe oneperson ofhas previously committed the followingsame circumstancesor exist:a similar violation as the violation for which the administrative fine is imposed;

(a) The person has previously committed the same or a similar violation as the violation for which the administrative fine is imposed;

(a) As(1) anLicensure absoluteof defense:the person pursuant to this chapter;

(1) Licensure of the person pursuant to this chapter;

or - *AB22_R1* – 5 – (3) Misidentification of the person.