SB 327 — Revises provisions relating to contractors. (BDR 54-1025)

S.B.Senate Bill No.

327327–Senator SENATECruz-Crawford BCHAPTER.......... ILLN O.

327–SENATOR C RUZ -CRAWFORD M ARCH 11, 2025 ____________ Referred to Committee on Commerce and Labor SUMMARY—Revises provisions relating to contractors.

(BDR 54-1025) 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: an applicant for a contractor’s license and a licensed contractor are required to obtain certain bonds in certain circumstances.

contractor are required to obtain certain bonds in certain circumstances.

(NRS 624.270, 624.276) Sections 1 and 2 of this bill revise this requirement to require publicationsthat issuedsuch bonds must be provided by a person who is identified in certain certain certificates.y the United States Department of the Treasury as holding certainEXPLANATION certificates.– Matter in bolded italics is new;

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

- *SB327* – 2 – 2.

Except as otherwise provided in subsection 6, the amount of each bond or cash deposit required by this section must be fixed by the Board with reference to the contractor’s financial and professional responsibility and the magnitude of the contractor’s operations, but must be not less than $1,000 or more than $500,000.

The- bond83rd mustSession be(2025) continuous– in2 form– and must be conditioned that the total aggregate liability of the surety for all claims is limited to the face amount of the bond irrespective of the number of years the bond is in force.

Unless released earlier pursuant to subsection 5, any cash deposit may be withdrawn 2 years after termination of the license in connection with which it was established, or 2 years after completion of all work authorized by the Board after termination of theagainst license,it., whichever occurs later, if there is no outstanding claim against5. it.

5.

- *SB327* – 3 –  If a licensee is relieved of the requirement of establishing a cash deposit, the deposit may be withdrawn 2 years after such relief is granted,gra6.ed,If ifthe thereBoard is nonotified outstandingby claimthe Labor Commissioner pursuant to NRS 607.165 or otherwise receives notification that three substantiated claims for wages have been filed against it.a contractor within a 2-year period, the Board shall require the contractor to file a bond or establish a cash deposit in an amount fixed by the Board.

6.

If the Board is notified by the Labor Commissioner pursuant to NRS 607.165 or otherwise receives notification that three substantiated claims for wages have been filed against a contractor within a 2-year period, the Board shall require the contractor to file a bond or establish a cash deposit in an amount fixed by the Board.

7.- 83rd Session (2025) – 3 – pool or spa or work concerning a residential photovoltaic systemal used to produce electricity:

If a contractor who performs work concerning a residential pool or spa or work concerning a residential photovoltaic system used to produce electricity:

or (d) Has five valid complaints filed against him or her with the Board within any 15-day period,  the Board may require the contractor to comply with the pro8.sioIf the Board requires a contractor described in subsection 7 to comply with the provisions of subsectionthis 8.subsection, the contractor shall, before commencing work concerning a residential pool or spa or work concerning a residential photovoltaic system used to produce electricity, obtain:

8.

If the Board requires a contractor described in subsection 7 to comply with the provisions of this subsection, the contractor shall, before commencing work concerning a residential pool or spa or work concerning a residential photovoltaic system used to produce electricity, obtain:

The payment bond must be solely for the protection of persons supplying labor or materials to the contractor, or to any - *SB327* – 4 – of his or her subcontractors, in carrying out the provisions of thethey contract.

The - 83rd Session (2025) – 4 – contractor shall furnish to the building department of the city or county, as applicable, in which the work will be carried out, a copy of any bond.

In lieu of a performance or payment bond, the contractor may obtain an equivalent form of security approved by the9.oarAs used in this section, “substantiated claim for wages” has the Board.meaning ascribed to it in NRS 607.165.

9.

As used in this section, “substantiated claim for wages” has the meaning ascribed to it in NRS 607.165.

After a contractor who performs work concerning a residential pool or spa has acted in the capacity of a licensed contractor in the State of Nevada for not less than 5 consecutive years, the Board may relieve the contractor of the requirements of subsection 1 if evidence supporting such relief is presented to the Board.to comply with subsection 1 if evidence is presented to the Boardr supporting this requirement.

The Board may at any time thereafter require the contractor to comply with subsection 1 if evidence is presented to the Board supporting this requirement.

If a licensee is relieved of the requirement of establishing a cash deposit pursuant to this section, the deposit may be withdrawn 2 years after such relief is granted, if there is no outstanding claim against it.

Failure of an applicant or licensee to file or maintain in full force the required bond or to establish the required cash deposit - *SB327* – 5 – constitutes cause for the Board to deny, revoke, suspend or refuse to renew a license.

The bond must be continuous in form and must be conditioned- that83rd theSession total(2025) aggregate– liability5 of– the surety for all claims is limited to the face amount of the bond irrespective of the number of years the bond is in force.

Unless released earlier pursuant to subsection 3, any cash deposit may be withdrawn 2 years after termination of the license in connection with which it was established or 2 years after completion of all work authorized by the Board after termination of the license, whichever occurs later, if there is no outstanding claim against it.it., 9.

9.

If an action is commenced on the bond, the surety that executed the bond shall notify the Board of the action within 30 daysday(a) afterThe thesurety dateis that:served with a complaint and summons;