AB 502 — Revises provisions relating to public works. (BDR 28-401)

Notwithstanding any other provision of this chapter and except as otherwise provided in this section, a contractor or subcontractor engaged in horizontal construction who employs workers on one or more public works during a calendar year pursuant to NRS 338.040 shall use one or more apprentices for at least 3 percent, or any increased percentage established pursuant to subsection 3, of the total hours of labor worked for each apprenticed craft or type of work to be performed on those public works.

On or after January 1, 2021, the Labor Commissioner, in collaboration with the State Apprenticeship Council, may adopt regulations to increase the percentage of total hours of labor - *AB502_R1* – 4 – required to be performed by an apprentice pursuant to subsection 1 or 2 by not more than 2 percentage points.

If a contractor or subcontractor who is a signatory to a collective bargaining agreement with a union that sponsors an apprenticeship program for an apprenticed craft or type of work for which the term of apprenticeship is not more than 3 years requestsrequestsr an apprentice from that apprenticeship program and an apprentice in the appropriate craft or type of work is not available, the contractor or- subcontractor83rd maySession utilize(2025) a– person4 who– graduated from the apprenticeship program in that craft or type of work within the 3 years immediately preceding the request from the contractor or subcontractor.

A contractor or subcontractor engaged on a public work shall maintain and provide to the Labor Commissioner any supporting documentation to show that the contractor or subcontractor made a good faith effort to comply with subsection 1 orpurposes 2,of asthis applicable,subsection, asa determinedcontractor byor thesubcontractor:r. Labor Commissioner.

For purposes(a) ofMakes thisa subsection,good afaith effort to comply with subsection 1 or 2, as applicable, if the contractor or subcontractor:

(a)(1) MakesSubmits to the apprenticeship program, on the form prescribed by the Labor Commissioner, a goodrequest faithfor effortan toapprentice complynot withearlier subsectionthan 1[10] 30 days before the contractor or 2,subcontractor asis applicable,scheduled ifto begin work on the public work and not later than 5 days after the contractor or subcontractor:subcontractor actually begins work on the public work.

(1)(2) SubmitsIf the apprenticeship program does not provide an apprentice for the appropriate apprenticed craft or type of work upon a request pursuant to subparagraph (1), submits additional requests to the apprenticeship program, on the form prescribed by the Labor Commissioner, aat requestleast foronce every 30 days during the period that the contractor or subcontractor is working on the public on the public work, the contractor or subcontractor shall submit an apprenticeadditional [notrequest each time that the contractor or subcontractor resumes work on the public work not earlier than 10[10] days]30 days before the contractor or subcontractor is scheduled to beginresume work on the public work and not later than 5 days after the contractor or subcontractor actually beginsresumes work on the public work.

(2)The Ifrequirement the apprenticeship program does not provide an apprentice for the appropriatesubmission apprenticed craft or type of workan -additional *AB502_R1* – 5 – upon a request pursuantin tothis subparagraph (1),does submitsnot additionalapply requestswhenever toa thecontractor apprenticeshipor program,subcontractor on- the83rd formSession prescribed(2025) by– the5 Labor– Commissioner,has atone leastor oncemore everyapprentices 30employed daysfor during the period that theapprenticed contractorcraft or subcontractortype isof working on the public work.

If(b) aDoes contractor or subcontractor does not workmake continuouslya ongood thefaith publiceffort work,to thecomply contractorwith orsubsection subcontractor shall submit an additional request each time that the contractor or subcontractor2, resumesas workapplicable, onas thedetermined publicby work [not earlier than 10 days] before the contractorLabor orCommissioner, subcontractorif isapprenticeship scheduledagreement pursuant to resumesubsection work16 on the public work and notrefuses laterto thando 5so. days after the contractor or subcontractor actually resumes work on the public work.

The requirement for the submission of an additional request in this subparagraph does not apply whenever a contractor or subcontractor has one or more apprentices employed for that apprenticed craft or type of work.

(b) Does not make a good faith effort to comply with subsection 1 or 2, as applicable, as determined by the Labor Commissioner, if the contractor or subcontractor is required to enter into an apprenticeship agreement pursuant to subsection 16 and refuses to do so.

(b)of hours worked on horizontal construction.f work, the total number (c) For each apprenticed craft or type of work, the total number of hours worked by apprentices on horizontalvertical construction.

(c)(d) For each apprenticed craft or type of work, the total number of hours worked by apprentices on verticalhorizontal construction.

- *AB502_R1* – 6 – (d) For each apprenticed craft or type of work, the total number of hours worked by apprentices on horizontal construction.

12.- 83rd Session (2025) – 6 – based on a complaint, makes a determination based on theiative or information submitted pursuant to subsection 10 that a contractor or subcontractor did not make a good faith effort to comply with the provisions of subsection 1 or 2, as applicable, the Labor Commissioner shall notify the contractor or subcontractor in writing of the determination and:

If the Labor Commissioner, on his or her own initiative or based on a complaint, makes a determination based on the information submitted pursuant to subsection 10 that a contractor or subcontractor did not make a good faith effort to comply with the provisions of subsection 1 or 2, as applicable, the Labor Commissioner shall notify the contractor or subcontractor in writing of the determination and:

(II) More than 4 percent but less than 7.5 percent of the total hours of labor worked for an apprenticed craft or type of work, required, whichever is higher.each hour below the percentage (III) Four percent or less of the total hours of labor worked for an apprenticed craft or type of work, a penalty of $3,000$5,000 or $4$6 for each hour below the percentage required, whichever is higher.

(III) Four percent or less of the total hours of labor worked for an apprenticed craft or type of work, a penalty of $5,000 or $6 for each hour below the percentage required, whichever is higher.

- *AB502_R1* – 7 – (III) One percent or less of the total hours of labor worked for an apprenticed craft or type of work, a penalty of $5,000 or $6$6ked for each hour below the percentage required, whichever is higher.

- 83rd Session (2025) – 7 – 13.

Except for good cause, the Labor Commissioner may not initiate his or her own investigation or accept a complaint based on the information submitted by a contractor or subcontractor pursuant to subsection 10 after May 1 immediately following the date on whichwhi14. the report was received by the Labor Commissioner.

14.

A contractor or subcontractor who is not a signatory to a collective bargaining agreement with the union sponsoring the apprenticeship program for an apprenticed craft or type of work engaged on a public work shall enter into an apprenticeshipapprenticeshipwork agreement for each apprentice required to be used in the construction of a public work.

- *AB502_R1* – 8 – (b) “Apprenticed craft or type of work” means a craft or type of work for which there is an existing apprenticeship program recognized by the State Apprenticeship Council.

- 83rd Session (2025) – 8 – Sec.

A public body that undertakes a public work shall request from the Labor Commissioner [, and include in any advertisement or other type of solicitation,] an identifying number with a designation of the work [.] not less than 3 business days before any advertisement or other type of solicitation is published or made for the public work.

If a public body fails to comply with subsection 2 or 4, the Labor Commissioner may impose against the public body a penaltypublic ofbody $50is fornot eachin calendarcompliance.day day or portion thereof that the publicSec. body is not in compliance.

Sec.

If any administrative penalty is imposed pursuant to this chapter against a [person] contractor or subcontractor for the commission of an offense, [that person,] the Labor Commissioner may takedisqualify the following actions against the contractor or subcontractor and the corporate officers, if any, of - *AB502_R1* – 9 – [that person, may not be awarded a contract for a public work:] the contractor or subcontractor:subcontractor from being awarded a contract for a public work or entering into a contract to perform work on a public work:

(a) [For]For Issuethe afirst warningoffense, for a period of up to 180 days after the firstdate offenseof .the imposition of the administrative penalty;

[,]- (b)83rd DisqualifySession the(2025) contractor– or9 subcontractor– and(b) anyFor corporatethe officerssecond thereofoffense, fromfor beinga awardedperiod aof contractup forto a3 publicyears workbut ornot enteringless intothan a180 contractdays toafter performthe workdate onof athe publicimposition work,of asthe applicable:administrative penalty;

(1)[and (b)] (c) For the secondthird offense, for a period of [3up years]to 1805 daysyears afterbut the date of the imposition of the administrative penalty;

[andand (b)]the (2)date of the imposition of the (d) For the third[second] fourth or subsequent offense, for a period of 1not yearless than 5 years after the date of the imposition of the administrative penalty;penalty.

and (3) For the [second] fourth or subsequent offense, for a period of [5] 3 years after the date of the imposition of the administrative penalty.

A person, and the corporate officers, if any, of that person, who is identified in the System for Award Management Exclusions operated by the General Services Administration as being excluded from receiving contracts from the Federal Government pursuant to 48 C.F.R.

338.070within 1.90 days after substantial completion of the contract:[:] , (a) Investigate possible violations of the provisions of NRS 338.010 to 338.090, inclusive, committed in the course of the execution of the contract, and determine whether a violation has been committed and inform the Labor Commissioner of any such violations;

Any public body awarding a contract shall [:] , within 90 days after substantial completion of the contract:

(a) Investigate possible violations of the provisions of NRS 338.010 to 338.090, inclusive, committed in the course of the execution of the contract, and determine whether a violation has been committed and inform the Labor Commissioner of any such violations;

- *AB502_R1* – 10 – 2.

[2.]- No83rd sumSession may(2025) be– withheld,10 retained– or forfeited, except from the final payment, without a full investigation being made by the awarding public body [.] or the Public Works Compliance Division pursuant to section 7 of this act.

(1) Whether the worker wishes to specify voluntarily his or her gender;

andandher the worker wishes to specify voluntarily his or (2) Whether the worker wishes to specify voluntarily his or her ethnicity;

Before inquiring as to whether a worker wishes to specify voluntarily his or her gender or ethnicity, the applicable contractor or subcontractor must inform the worker that such information, if provided, will be open to public inspection as set forth in subsection 6.

- *AB502_R1* – 11 – (a) An accurate record showing, for each worker employed by the contractor or subcontractor in connection with the public work:

(3)- The83rd genderSession of(2025) the– worker,11 if– the worker voluntarily agreed to specify that information pursuant to subsection 4, or an entry indicating that the worker declined to specify such information;

(2) The driver’s license number or identification card number of the worker;

andandver’s license number or identification card number (3) The state or other jurisdiction that issued the license or card.

The records in the possession of the public body awarding the contract may be discarded by the public body 2 years afterThe finalLabor paymentCommissioner isshall madeadopt byregulations theauthorizing publicandwork. body for the public work.

The Labor Commissioner shall adopt regulations authorizing and prescribing the procedures for the electronic filing of the copies of the records required to be provided monthly by a contractor or subcontractor to a public body pursuant to this subsection.

A contractor engaged on a public work shall not withhold from a subcontractor engaged on the public work the sums necessary to cover any penalties provided pursuant to subsection 3 - *AB502_R1* – 12 – of NRS 338.060 that may be withheld from the contractor by the public body awarding the contract because the public body did not - 83rd Session (2025) – 12 – receive a copy of the record maintained by the subcontractor pursuant to subsection 5 for a calendar month by the time specified in subsection 6 if:

(a) The subcontractor provided to the contractor, for submission to the public body by the contractor, a copy of the record not later than the later of:

by the contractor, a copy of the record not later (1) Ten days after the end of the month;

A public body shall not withhold from a contractor or subcontractor engaged on a public work any amount due to the contractor or subcontractor in order to recover any fee or penalty assessed by the Labor Commissioner pursuant to subsection 9.

and - *AB502_R1*83rd Session (2025) – 13 – (b) Submit to the Labor Commissioner a written report concerning an investigation conducted pursuant to paragraph (a).

The Office consists of the Labor Commissioner and the Public WorksWorSec. Compliance Division.

Sec.9.liaNRS 607.060 is hereby amended to read as follows:

9.

NRS 607.060 is hereby amended to read as follows:

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